Los Angeles City Seeks To Purchase Demolition Prone Rent-Controlled Buildings

LA City Seal
LA City Seal

The Los Angeles City Council’s housing committee (LACCHC) wants to have the ability on the table to have “first right of refusal” to purchase a rent-controlled building that has been scheduled for demolition.

The motion, first proposed by Councilmember Gil Cedillo, would be initiated whenever a property owner filed an Ellis Act application. The Ellis act, first created in 1985, is a California state law that gives landlords the legal ability to evict tenants of a property if they plan to “go out of the rental business.”

Under the new proposed new rules, either the city, the tenants or “mission-driven” affordable housing developers would have “first right of refusal” and be given the ability to purchase the a building before anyone else.

The motion comes on the heels of a report from the Coalition for Economic Survival, which states that landlords and rental property owners have submitted applications to remove 1,348 rental units from under a “rent control” status this year alone.

Beyond that, it’s unclear how exactly the proposal would work. The LACCHC is currently appealing the motion to the Los Angeles City Attorney and the Los Angeles Housing and Community Investment Department to create a city ordinance that would detail more information about the expected plan.

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