Relocation Fees for Tenants Evicted under the Ellis Act in Los Angeles: A Landlord's Obligation

The Ellis Act is a California law that allows landlords to terminate rent-controlled leases to move out of the rental business. This article explores the obligation of a landlord under the Ellis Act to pay relocation fees to a tenant, specifically in the context of an eviction of a disabled tenant living in a rent-controlled duplex in Los Angeles.

Understanding the Ellis Act in Los Angeles

The Ellis Act, passed in 1985, was designed to help landlords convert their rental properties to non-residential use (such as commercial spaces) by providing them with the right to terminate certain tenants' leases. This right is crucial for landlords who wish to operate commercially in a building that was originally intended for residential occupancy.

Relocation Fees Obligation

When a landlord terminates a tenant's lease under the Ellis Act, they are typically required to pay relocation fees. These fees are intended to help displaced tenants find new housing. However, the specifics of these payments, including the amount, can vary significantly based on several factors, including the tenant's situation and the specific terms of the Los Angeles housing market.

Base Relocation Fee

The base relocation fee under California law, as provided by the Ellis Act, starts around $8,000. This figure is reviewed and adjusted annually to account for inflation, ensuring that it reflects the current cost of living and housing market conditions in Los Angeles.

Additional Payments for Special Circumstances

Additional factors can increase the relocation fee. For instance:

If the tenant is disabled, has a significant medical issue, or is a senior citizen, the relocation fee can be as high as $17,000. These special provisions recognize the unique challenges faced by elderly and disabled individuals who may struggle to find comparable housing.

If the tenant has at least one child living with them, the relocation fee can also reach $17,000. Similarly, this provision helps to accommodate families, ensuring that they are not disproportionately impacted by the eviction process.

If the tenant is considered low-income, or has been residing in the unit for more than three years, the relocation fee can be increased by an additional $3,000. This adjustment recognizes the financial burden these situations can place on tenants.

It is important to note that the actual amount payable can vary depending on the specific details of each case, and it is advisable for landlords to consult with legal experts to ensure compliance with local and state laws.

Special Considerations for Small-Time Landlords

Small-time landlords who are in the business of renting fewer than five units are subject to a reduced payment schedule. These landlords must pay between $7,000 and $16,000 for the relocation fee, depending on the tenant's specific circumstances such as disability, senior status, or children living in the unit. However, this discount does not take income and length of tenancy into account as heavily as the regular payout method.

Small-time landlords are also required to pay a nominal fee of $2,000 to the city for verification and to cover administrative costs. This upfront payment is non-refundable and is designed to ensure that landlords meet all legal requirements.

Conclusion

The obligations of landlords under the Ellis Act can be complex and are subject to numerous variables. Understanding these obligations is crucial for landlords, and tenants should also be aware of the rights and compensation they are entitled to under the law.

To ensure compliance and to protect your legal rights and interests, it is highly recommended that both parties consult with legal professionals experienced in the Ellis Act and California tenant laws.