Introduction

The Los Angeles City Council has unanimously approved a new enforcement program that will significantly impact multifamily property owners across the city. If you own rental properties not covered by the Rent Stabilization Ordinance (RSO), you need to act now. A new annual fee of $31.05 per unit is effective immediately, with an initial payment deadline of February 28, 2025. Miss this deadline, and you could face penalties up to 150% of the original fee.

This is not something you can ignore. Here's what every multifamily property owner in Los Angeles needs to know.

A New Enforcement Program Targets Non-RSO Multifamily Properties

The LA City Council has established an enforcement program with a new annual fee of $31.05 per unit for all rental properties not covered by the Rent Stabilization Ordinance. This applies broadly: multifamily properties built after October 1, 1978, single-family homes, condominiums, ADUs, and junior ADUs all fall under this umbrella.

The program's stated purpose is to regulate non-RSO properties and ensure owners comply with several city ordinances. To staff this effort, LAHD is hiring 63 new staff members, including housing investigators and support personnel. They'll be overseeing 381,173 rental units across the city. This is a significant expansion of enforcement capacity.

The Timeline: February 28, 2025 Is Your Deadline

Here's what you need to know about timing. The initial payment deadline for this new fee is February 28, 2025. Hard copy bills are currently being mailed out by LAHD.

Miss this deadline, and the consequences are steep. Property owners who fail to pay face penalties of up to 150% of the original fee. That means a $31.05 per unit charge could balloon significantly.

There's one exception: owners of single-family homes, condos, and ADUs will receive invoices in March 2025. LAHD has stated that no late fees will be assessed if they fail to send invoices before the deadline. But multifamily property owners should expect their bills to arrive soon and plan accordingly.

For specific payment instructions, the Apartment Association of Greater Los Angeles has resources available.

Compliance Goes Beyond Just Paying the Fee

Simply writing a check isn't enough. The ordinance includes strict compliance mechanisms that property owners must follow. Specifically, owners cannot demand or accept rent until they've met two critical requirements:

First, the enforcement fee must be paid in full, along with any late payment penalties if applicable.

Second, property owners must obtain an annual registration statement from LAHD and post a copy of it at the property. This isn't optional. Non-compliance could result in tenants withholding rent or filing complaints with the city.

Five Ordinances You Need to Understand

This enforcement program doesn't exist in a vacuum. It's designed to enforce five significant LA ordinances that multifamily property owners must comply with. Understanding each one is critical.

Economic Displacement Ordinance

This ordinance requires relocation fees of up to $12,205 for renters displaced by an annual rental increase exceeding 5% plus the Consumer Price Index (currently 8.9%). If you're planning rent increases, this is a major consideration.

Just Cause Ordinance

Evictions are restricted to "Just Cause" reasons only. Violate this, and you're looking at relocation fees up to $27,500 for no-fault evictions. This significantly limits your ability to remove tenants.

1. Economic Displacement Ordinance - This ordinance requires relocation fees of up to $12,205 for renters displaced by an annual rental increase exceeding 5% plus the Consumer Price Index (currently 8.9%). If you're planning rent increases, this is a major consideration.

   Just Cause Ordinance - Evictions are restricted to "Just Cause" reasons only. Violate this, and you're looking at relocation fees up to $27,500 for no-fault evictions. This significantly limits your ability to remove tenants.

2. Eviction Threshold Ordinance - Evictions are limited to cases where renters have fallen behind by at least one month's fair market rent. You can't evict for minor payment issues.

3. Tenant Anti-Harassment Ordinance - This ordinance protects renters from harassment, including actions that disturb their peace or interfere with their use of the unit. Violators face mandatory financial judgments. The definition of harassment is broad and enforced strictly.

4. COVID Pet "Amnesty" Ordinance - Landlords must allow renters to keep pets acquired during the pandemic, even without prior approval. This applies regardless of your lease terms.

What You Should Do Right Now

The February 28, 2025 deadline is approaching. Here's your action plan:

Start by verifying that you've received your enforcement fee bill from LAHD. If you haven't, contact them directly to confirm they have your current information. Next, calculate your total fee by multiplying $31.05 by your number of rental units. This will tell you exactly what you owe.

Once you know the amount, prepare for payment and submit before the deadline. There's no reason to risk 150% penalties. Simultaneously, begin the process of obtaining your annual registration statement from LAHD. Once received, post a copy at your property as required.

Finally, take time to review all five ordinances listed above. Familiarize yourself with your compliance obligations. If you're uncertain about any aspect of these regulations, now is the time to seek guidance.

The Bottom Line

Los Angeles continues to expand regulations on multifamily property owners. This new enforcement program and fee structure is just the latest example. With a February 28, 2025 deadline and potential penalties of up to 150%, acting quickly is essential. Beyond the fee itself, understanding and complying with the five ordinances this program enforces is critical to protecting your investment.

The Kenny Stevens Team stays current on LA's evolving rental regulations and how they impact multifamily investors. Contact us to discuss how this new enforcement program affects your portfolio and what steps you should take to ensure full compliance.