Why Do I Have To Pay Relocation Assistance In Los Angeles Under LARSO?

Updated 01/03/25

If you’re a landlord in Los Angeles, you may find yourself asking: Why am I required to pay relocation assistance under the Los Angeles Rent Stabilization Ordinance (LARSO)? The simple answer lies in the legal framework designed to protect tenants from sudden and no-fault evictions, ensuring they have the financial means to secure alternative housing. This mandate serves both a practical and ethical purpose, reflecting the city’s response to rising housing instability and affordability issues. In this article, we’ll dive into the reasons behind this requirement and explore how it applies to landlords operating in Los Angeles.

Table of Contents

• What Is LARSO and Its Relocation Assistance Requirement?
• Legal Basis for Relocation Assistance Payments
• Types of No-Fault Evictions Requiring Relocation Assistance
• How Relocation Assistance Amounts Are Determined
• Broader Implications for Landlords in California
• Frequently Asked Questions

What Is LARSO and Its Relocation Assistance Requirement?

The Los Angeles Rent Stabilization Ordinance (LARSO) governs rental properties built on or before October 1, 1978. It is designed to provide stability for tenants while balancing the rights of landlords. Under LARSO, relocation assistance payments are mandatory for tenants subject to no-fault evictions. These are situations where the tenant has done nothing wrong but must vacate due to circumstances initiated by the landlord, such as property renovations or owner move-ins.

The purpose of these payments is twofold: to aid tenants in finding new housing and to hold landlords accountable for the disruption caused by no-fault evictions. This requirement has also influenced other California jurisdictions, with relocation assistance policies spreading throughout the state.

Legal Basis for Relocation Assistance Payments

Relocation assistance requirements stem from both local ordinances and broader state laws. The City of Los Angeles enforces these payments under LARSO, and they align with California’s larger trend of tenant protections. The legal foundation includes specific sections of the Los Angeles Municipal Code (LAMC), such as:

• LAMC 151.09.A.8: Evictions for owner or relative move-ins.
• LAMC 151.09.A.10: Ellis Act evictions for property removal from the rental market.
• LAMC 151.09.A.11: Compliance with governmental orders to vacate.

These laws aim to reduce the economic burden on tenants who may already face challenges in Los Angeles’ competitive housing market.

Types of No-Fault Evictions Requiring Relocation Assistance

Not all evictions fall under the relocation assistance mandate. Only no-fault evictions, as defined by LARSO, require landlords to provide these payments. Common scenarios include:

• Owner Move-Ins: When the landlord or a qualifying relative needs to occupy the rental unit. Restrictions under LAMC Section 151.30 apply, ensuring landlords act in good faith.
• Ellis Act Evictions: When landlords permanently remove rental units from the market, as outlined in LAMC 151.22-151.28.
• Primary Renovations: If significant work requires tenants to vacate for safety reasons, landlords must follow an approved Tenant Habitability Plan.
• Government Orders to Vacate: Compliance with safety or code enforcement mandates.

These categories highlight the city’s focus on preventing unjust displacement while accommodating legitimate landlord needs.

How Relocation Assistance Amounts Are Determined

The amount of relocation assistance depends on various factors, including tenant eligibility, income levels, and the duration of tenancy. Under LARSO, tenants fall into three categories:

1. Qualified Tenants: Seniors (65+), disabled individuals, or households with dependent children.
2. Eligible Tenants: All other tenants not falling into the “qualified” category.
3. Low-Income Tenants: Households earning 80% or less of the area’s median income.

The city adjusts the relocation amounts annually to account for inflation and other economic factors. Generally, qualified and low-income tenants receive higher payments due to their increased vulnerability during housing transitions.

Broader Implications for Landlords in California

The relocation assistance requirements under LARSO have far-reaching implications. With Los Angeles County and other municipalities adopting similar policies, landlords throughout California must prepare for stricter tenant protections. The trend reflects growing concerns over housing affordability and displacement across the state.

Landlords should consider the financial and logistical impact of these regulations when planning property upgrades, ownership changes, or market exits. Proactively understanding these laws can help mitigate disputes and ensure compliance, ultimately protecting your investment and reputation.

Frequently Asked Questions

Who qualifies as a “low-income tenant” under LARSO relocation assistance?
A low-income tenant is defined as someone earning 80% or less of the median income for the Los Angeles area, adjusted for household size.

Are relocation assistance payments made per tenant or per unit?
Relocation assistance is paid per unit, not per individual tenant. The amount is determined based on the highest eligibility level among the unit’s occupants.

How can I ensure compliance with LARSO’s relocation assistance requirements?
Start by reviewing the applicable sections of the Los Angeles Municipal Code and consulting with a qualified attorney or property management expert. Proper documentation and adherence to notice requirements are also crucial.

Understanding why relocation assistance is required under LARSO is essential for landlords operating in Los Angeles. While the payments may seem burdensome, they serve a critical role in balancing tenant protections with landlord rights. By staying informed and compliant, landlords can navigate these regulations effectively, fostering better relationships with tenants and maintaining their investments.