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Council moves to pursue HUD MOU, seek rent-stabilization amendments after tenant evictions raised

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Summary

Following testimony from tenant advocates, the City Council approved a motion to meet with HUD to develop interim procedures (an MOU) and directed the City Attorney to draft amendments to the Rent Stabilization Ordinance to protect tenants affected by HUD-owned property sales or foreclosures.

The Los Angeles City Council on Feb. 29 approved a motion directing city staff to seek a memorandum of understanding with the U.S. Department of Housing and Urban Development (HUD) and to have the City Attorney draft amendments to the Rent Stabilization Ordinance to protect tenants in HUD-owned properties.

Councilmember Gloria Goldberg said the motion grew from constituent cases in which long-term, rent-stabilized tenants learned HUD owned their buildings only after receiving 30-day notices of eviction. Attorneys from Legal Aid Foundation of Los Angeles and Bet Tzedek Legal Services described clients who received 30-day "no cause" notices with no relocation offers. Christian Abasto of Legal Aid told the council, "Most of these tenants have received, a 30 day notice, no cause, with no offer of relocation," and introduced several clients who had lived in rent-controlled units for decades; ages and low rents were cited in testimony (examples: rent of $318 and $325 among long-term tenants).

Mark Bender of Bet Tzedek described the pattern as "a loophole in the law" affecting tenants who lost rent-control protection after HUD became owner following foreclosure. Goldberg's motion asked that the council authorize meetings among city legal, housing department representatives, tenant advocates and HUD to develop interim procedures and that the City Attorney propose necessary amendments to the Rent Stabilization Ordinance.

Councilmembers expressed unanimous support during debate and the council approved the findings and the motion on a roll-call vote recorded as 12 ayes. The council instructed staff to pursue an MOU expeditiously and to prepare proposed ordinance changes for council consideration.