Upon inspection, persons identified as the owner or managing agent are notified that compliance is required within 30 day of issuance. A re-inspection is scheduled and another 30 days can be granted upon request. If the violations are not properly addressed, the department may determine that further action be taken to enforce its policy, and the property will be subject to placement into the Rent Escrow Account Program (REAP). There is an additional fee assessed to the owner each time the property is re-inspected.

REAP is a rent reduction program, which is an extension of the Systematic Code Enforcement Program under the (RSO) Rent Stabilization Ordinance. The owner or property manager has the right to a hearing conducted by the Los Angeles Housing Department General Manager. At that hearing testimony is heard as to the particulars and circumstances relating to why the violation were not corrected. An appeal can be filed on an unfavorable decision; however, if no appeal is file or it is the General Manager’s recommendation that the property be placed into REAP, the Housing Department will issue notification to each tenant that they will have the option of paying their rent to the owner or to the City. While the property is in R.E.A.P, it is customary for the tenant to only pay 50% of their rent. During this period he owner is also assessed a monthly administrative fee by the City.

Subsequent to the completion of all related repairs, the Los Angeles Housing Department will inspect the property and clear the deficiencies Upon satisfactory compliance, LAHD will recommend that the property be removed from REAP. The City Council receives that recommendation and meets in regular session to vote on the issue of removing the property from REAP and reinstating the rents to their normal level, which occurs 30 days after the LAHD forwards a notice of restoration to the tenants.

Things to remember about REAP and eviction

An owner or landlord cannot evict a tenant for non-payment of rent if that tenant decides to pay the reduced amount into the escrow account. Owners and/or their managing agent(s) may evict a tenant for non-payment of rent if there is verifiable information that the tenant has not paid their reduced amount to the City or the owner. The owner receives documentation each month itemizing the payments of each tenant. This statement can be used to verify if the tenant has made any payment for the month. The owner cannot proceed with evicting a tenant unless written verification is received from LAHD. The owner may evict a tenant for any of the twelve legal reasons for evictions other than non-payment of rent under the law. The owner must not evict a tenant for the purpose of retaliation and if the tenant raises the defense that the eviction is in retaliation, the owner must prove that the basis of the case is for reasons other than retaliation.