Tenant Rights and Healthy Homes

Under the RSO

RENT STABILIZATION ORDINANCE

There is a shortage of decent, safe and sanitary housing in the City of

Los Angeles resulting in a critically low vacancy factor.

Tenants displaced as a result of their inability to pay increased rents

must relocate but as a result of such housing shortage are unable to

find decent, safe and sanitary housing at affordable rent levels.

Aware of the difficulty in finding decent housing, some tenants attempt

to pay requested rent increases, but as a consequence must expend

less on other necessities of life.

This situation has had a detrimental effect on substantial numbers of

renters in the City, especially creating hardships on senior citizens,

persons on fixed incomes and low and moderate income households….

Ord. No. 152,120, Eff. 4/21/79, Oper. 5/1/79

Strengths/Limitations of RSO

Economic Roundtable

Affordable Housing Commission and Rent Adjustment Commission

September 3, 2009

4

• Covers a large segment of

households in LA

- 2/3 of all renter households

- 40% of total households in the City

RSO Strengths

0% 20% 40% 60% 80%

North Valley

East LA

South LA

Harbor Area

West LA

CITY OF LA

South Valley

Central LA

• Protects tenants

against arbitrary

evictions

• Protects long-term

tenants against rapid

rent increases during

periods of housing

inflation

Renter-Occupied Housing Units Built Before 1980 as a % of all Renter-Occupied Housing Units (2006)

• RSO cannot address the acute

scarcity of affordable housing

• Half of RSO renters remain in

units <5 years and may receive

little rent savings from the

ordinance

• Many small owners have limited

ability to deal with

administrative burdens

• Indications that the program

may create financial

disincentives for owners to

invest in maintenance and

capital improvements

RSO Limitations

Did you make a profit last year?Calculated Using Unit Weights (p<.001)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1-4 units

5-10 units

11-39 units

40+ units

ALLOWNERS

Don’t know

No,had a loss

No,broke even

Yes

Number of Years that RSO Units have been Occupied

by the Same Tenant

Calculated Using Unit Weight

Less than 2 Years 26%

20+ Years 4%

15 to 19 Years4%

10 to 14 Year 16%

5 to 9 Years22%

2 to 4 Years 28%

Rent Burden and

Overcrowding

Economic Roundtable

Less Income,

Harder to Pay Rent

• 60% of LA households live in rental housing…

• In 2007, the median LA renter paid 34 percent of their income for rent

Income and Rent of Renter HouseholdsCity of Los Angeles, 1970-2007, 2007 Dollars

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

15%

20%

25%

30%

35%

40%

45%

Inco

me a

nd

Ren

t in

2007 $

Ren

t as %

of

Inco

me

Median Gross Monthly Rent

The median monthly rent in LA has increased since 2000

Median Rent as a % of Median Income

The median LA renter is paying over 30% of income for rent

Median Monthly Income of

Renter Households

Income in constant dollars has declined since 1989

Rent Burdened Households in the City of LA

• Rent burden increased from

2000 to 2007

• By 2007…

- 29% severely rent burdened

- 29% rent burdened

• Renter survey captured more

rent burden than Census

• Vulnerable populations:

- seniors

- persons w/ disabilities

- low-income households

Rent Burden

Source: U.S. Census

25% 24%29%

26%24%

29%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1990 2000 2007

Less than 30%

of income for

housing

Rent Burden(30%-49%)

Severe Rent Burden(50% or More)

Severe Overcrowding Decreased from 2000 to 2007

– 24% in 2000

– 9% in 2007

In 2007, there were…

- Less rental units per person in the City

However, there were…

- More bedrooms per person in the City(Decrease in ratio of renter population to

bedrooms)

Source: U.S. Census

Overcrowded Rental UnitsOvercrowding

Low-income renters & a majority

larger households (5+ persons)

are still overcrowded.

21%24%

9%

8%8%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1990 2000 2007

Not Crowded

Overcrowded

(1.01 to 1.50

persons/room)

Severely

Overcrowded

(1.51+ persons/room)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

40%

+ L

ess

30-3

9%

Less

20-2

9%

Less

10-1

9%

Less

5-9

% L

ess

0-4

.99%

Less

1-4

.99%

More

5-9

% M

ore

10-1

9%

More

20-2

9%

More

30-3

9%

More

40%

+ M

ore

Difference between Current Rent and Projected Rent

Rent Increase: Unauthorized?

Below Allowable

IncreaseAbove Allowable Increase

Within Allowable Increase

Excessive or

unauthorized?

% by which Current Rents differ from Projected Rents for RSO Units - City of Los Angeles

30% 27%

44%

Who’s potentially receiving excessive or unauthorized rent increases?

• Low-income renters

• Renters with low starting rents

Property Maintenance

Economic Roundtable

How would you

describe the

condition of your

apartment building?

• Non-RSO renters rate their

apartments as being in

better condition than RSO

renters

– 31% of RSO renters rate

their units as very poor,

fairly poor or fair, vs. 19%

for non-RSO renters

– 69% of RSO renters rate

their units as fairly good,

good or excellent vs. 81%

for non-RSO renters

0% 5% 10% 15% 20% 25% 30% 35%

Excellent

Good

Fairly good

Fair

Fairly poor

Very poor RSO

Non-RSO

Source: Economic Roundtable renter survey, responses from 2,640 renters in the City of Los

Angeles, Household weights Calculated Using Household Weights (p<.001)

What level of maintenance are you able to provide with RSO

income?

Unit weighting Source: City of Los Angeles Rental Property Owners and Managers Survey

• 43% of landlords say

limited income from

RSO units impacts

ability to provide

maintenance.

YET…

• 57% say that they are

able to handle all

maintenance.

All maintenance

postponed

3%

Major problems

postponed, minor

problems handled

ASAP

20%

Most maintenance

postponed,

major problems

handled ASAP

20%All maintenance

handled

immediately &

preventive

maintenance

practiced

57%

Evictions

Economic Roundtable

Eviction Cases – LA County & LA City

Unlawful Detainer Cases Filed in the Los Angeles Superior Court,

Landlord Declarations of Intent to Evict Filed with the City, 1998-2007

• Decline in number of cases in more recent years

• Landlord Declarations of Intent to Evict (LAHD) increased and peaked in 2005.

• Largest number of cases filed in LA City and rest of County was in the 1990s

0

10,000

20,000

30,000

40,000

50,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Unlawful Detainer Cases Filed, rest of LA County

Unlawful Detainer Cases Filed, City of LA

LAHD Declarations of Intent to Evict (Units Affected)

Healthy Homes

Healthy Homes?

Healthy Homes?

Healthy Homes?

Healthy Homes?

Healthy Homes?

CES and Healthy Homes

Organizing for Healthy Homes

Building-wide problems can only be addressed by tenants organizing together and asserting their rights through collective action through:

• Outreach

• Education

• Empowerment

• Mobilization

• Tenant Association

Lead Hazard Remediation Program

(LHRP)

We identify possible candidates for this city of Los Angeles program that provides FREE Lead Grant monies to landlords for the complete removal of lead-based paint hazards and to provide tenants a safe, healthy and habitable home.

Healthy HomesIntegrated Pest Management (IPM):

An approach to eliminating pests in the most

safe and effective way. Rather then using

conventional chemicals like pesticides, IPM

tries to eliminate the root causes of pest

infestation by removing potential food, water,

and living space for pests and sealing up their

entry routes into buildings.

Green Cleaning:

Using safer and more natural

products to clean your home while

reducing your exposure to toxic

chemicals

Products Include:

Baking soda, vinegar, borax,

essential oils, & soap

Organizing for Healthy Homes

Contact CES:

Carlos Aguilar

• 213-252-4411

• www.cesinaction.org