CITY OF LOS ANGELES HOUSING + COMMUNITY INVESTMENT DEPARTMENT RENT STABILIZATION DIVISION RENT ADJUSTMENT COMMISSION (RAC) AGENDA

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1 CITY OF LOS ANGELES HOUSING + COMMUNITY INVESTMENT DEPARTMENT RENT STABILIZATION DIVISION RENT ADJUSTMENT COMMISSION (RAC) AGENDA Thursday, January 21, :00 P.M. Garland Office Hearing Room 1200 West 7 th Street # 100 Los Angeles, CA Note: Please see security desk upon entering the building. COMMISSIONERS Tai Glenn, Chairperson Carole Brogdon, Vice Chairperson Leonora Gershman Pitts Paula Leftwich Jane Paul Dash Stolarz Sam E. Lucas Rushmore D. Cervantes, General Manager Anna Ortega, Director - Rent Stabilization Susan Gosden, Senior Management Analyst II I. COMMISSION BUSINESS A. Call to Order, Roll Call, Establish Quorum B. HCIDLA Report C. RAC Chairperson s Report D. Internal Review Committee (IRC) Chairperson s Report E. Informational Material II. RAC DISCUSSION OF NEW BUSINESS AND REQUESTS TO SCHEDULE ITEMS Opportunity for Commissioners to identify topics of interest within the subject matter of the Commission and to request the scheduling of that item on future agendas of the Commission. Maximum discussion length is five minutes per topic. III. PUBLIC COMMENT PERIOD ON NON-AGENDA ITEMS WITHIN THE JURISDICTION OF THE RAC Opportunity for the public to address the Commissioners to identify topics of interest.

2 IV. FUTURE MEETINGS (tentative) RAC: February 4, 2016 February 11, 2016 (Special) February 18, 2016 March 10, 2016 IRC: January 28, 2016 March 17, 2016 March 31, 2016 APPEALS BOARD I. CONSENT CALENDAR: LAHD RECOMMENDATION TO DENY SPECIFIC NOTICE OF APPEAL FOR PROCEDURAL DEFICIENCIES The Rent Adjustment Commission will review and determine whether the following appeals should be denied based on the HCIDLA s recommendation that these appeals have procedural deficiencies: A. CITY ATTORNEY REFERRAL The General Manager s decision was referral to the City Attorney; therefore, denial of the application for appeal is recommended as the Rent Adjustment Commission (RAC) Appeals Board (AB) does not have the jurisdictional authority to hear or act upon the subject of the appeal for case numbers: B. CLOSED N New Hampshire Ave., Los Angeles, CA The General Manager s decision was to close the case; therefore, the application for appeal is moot for case number: C. CONTINUED N Mariposa Ave., Los Angeles, CA The General Manager s decision was to continue the hearing; therefore, denial of the application for appeal is recommended as the subject General Manager s decision was not the final decision for case number: E 55 th St., Los Angeles, CA 90011

3 li. APPEALS OF GENERAL MANAGER S HEARING DECISION The Rent Adjustment Commission (RAC) will convene as the Appeals Board to consider and make determinations regarding appeals of the General Manager s decisions for the following cases: A. Property Address: 3000 W Bellevue Ave., Los Angeles, CA Type of Case: Code and REAP (Combo) Case Number: CCRIS Appellant: Lazaro Aguero General Manager s Hearing Date: September 28, 2015 General Manager s Hearing Decision Date: December 4, The appellant filed an appeal of the General Manager s Hearing Officer s Decision to accept the building or unit into the Rent Escrow Account Program (REAP) and the corresponding rent reduction. B. Property Address: 1320 N Miller Dr., Hollywood, CA Type of Case: Code and REAP (Combo) Case Number: CCRIS Appellant Phillip Carter General Manager s Hearing Date: October 8, 2015 General Manager s Hearing Decision Date: December 21, 2015 The appellant filed an appeal of the General Manager s Hearing Officer s decision to accept the building or unit into the Rent Escrow Account Program (REAP) and the corresponding rent reduction.

4 I. MEETING ADJOURNMENT Person(s) wishing to speak during consideration of a specific item must complete a Speaker Card form and submit it to a Department staff person. In accordance with the RAC s Working Rules, for any item listed on the agenda, any individual or representative of any group may address the RAC prior to any action being taken by the RAC on that specific agenda item. Comments will be limited to three minutes per speaker, and there shall be a cumulative total of up to twelve minutes allowed per agenda item unless a time extension is allowed by the RAC. As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and upon request, will provide reasonable accommodation to ensure access to its programs, services and activities. Sign language interpreters, assisted listening devices, language translators or other auxiliary aids and/or services may be provided upon request. To ensure availability, requests need to be called in to the Hearing Section or RAC Support Section at least three working days before the meeting. Please contact the Hearing Section at (213) or RAC Support at (213) The TTY telephone number for public information is (213) Mail all RAC correspondence to: Rent Adjustment Commission, 1200 W. 7 th St, Suite 100, Los Angeles, CA For other questions or comments regarding specific appeals, hearings, or case scheduling please contact Hearing Section at (213) For general questions regarding Rent Stabilization, Code Enforcement, or SCEP please call (866) 557-RENT (7368) or (213) If you challenge these agenda items in court, you may be limited to raising only those issues you or someone else raised at the public hearing in this agenda, or in written correspondence on these matters delivered to this agency at or prior to the public hearing. The time in which a party may seek judicial review of this determination is governed by California Code of Civil Procedure Section Under that provision, a petitioner may seek judicial review of any decision of the City pursuant to California Code of Civil Procedure Section , only if the petition for writ of mandate pursuant to that section is filed no later than the 90th day following the date on which the City's decision became final.

5 January 21, 2016 Rent Adjustment Commission 1200 West 7 th Street, 1 st Floor Los Angeles, CA APPEAL OF GENERAL MANAGER S DECISION Type of Case: Combo Appellant: Lazaro Aguero Property Address: 3000 W Bellevue Ave., Los Angeles, CA Subject to RSO: Yes CCRIS Case Number: Number of Units in CCRIS System: 5 Notice of Acceptance into REAP: August 13, 2015 REAP Appeal Due Date: August 28, 2015 REAP Appeal Received: August 28, 2015 General Manager s Hearing: September 28, 2015 General Manager s Decision: December 4, 2015 INTRODUCTION This case is an appeal of the General Manager s Hearing decision to affirm the Department s decision to accept the building into the Rent Escrow Account Program (REAP) by the Property Owner s representative, Lazaro Aguero. The appellant states that the Decision should be reversed because the unit in question is not occupied and outside the jurisdiction of HCIDLA. ISSUE BEFORE THE APPEALS BOARD The issue before the Appeals Board is whether the General Manager s Hearing Officer erred in affirming the Department s decision to accept the building into the Rent Escrow Account Program (REAP). BACKGROUND On September 16, 2014, a SCEP inspection was conducted at the property. Violations were observed and a Notice and Order to Comply was issued on November 4, 2014 listing 9 violations. On December 29, 2014, a re-inspection was attempted. No owner or representative appeared and no corrections of violations were observed. The tenant in Unit 515 appeared and stated that he did not get notice of an inspection. On January 29, 2015, a second re-inspection was attempted. No owner or representative appeared and no corrections of violations were observed. On March 17, 2015, a third re-inspection was conducted revealing 8 remaining violations.

6 CCRIS January 21, 2016 Page 2 On August 13, 2015, the Department issued a Notice of General Manager s Hearing, Notice of Acceptance into REAP, a Landlord s Right to Appeal, and Unresolved Violation Report. The General Manager s Hearing was conducted on September 28, On December 4, 2015, a General Manager s Decision affirming the placement into REAP was issued. Summary of General Manager s Hearings The General Manager s Hearing was conducted on October 8, HCIDLA Inspector Bennie Perez appeared at the hearing and provided testimony regarding the outstanding violations. Inspector Perez testified that there were 8 outstanding violations at the time of the hearing. Inspector Perez stated that the outstanding violations included but were not limited to unapproved units, unapproved use, illegal construction, and smoke detectors. The owner s brother, Lazaro Aguero, appeared at the hearing and provided testimony. The representative stated that the inspectors did not tell him what was needed to be done. The representative stated that a company has been hired to obtain permits in order to correct the violations. A letter from EBE Associates was submitted into evidence to show steps taken towards compliance. The owner said it would take 30 days to complete the work. No tenant or tenant representative appeared at the hearing. On December 4, 2015, HCIDLA issued a General Manager s Hearing Decision affirming the placement into REAP and the corresponding rent reduction. ORDINANCE AND REGULATION SECTIONS LAMC SEC Decision Where it is determined that the violation has not been corrected, the General Manager may make any of the following orders, as appropriate: (1) Order that the violation be referred to the City Attorney for prosecution. (2) Order a rent reduction (3) Order that the building or dwelling units be accepted into REAP. LAMC SEC Appeals D.3 If the landlord was already in compliance with the Order before the rent reduction effective date, the decision shall be reversed. If the landlord complies with the Order after the appeal is filed but before the hearing on the appeal, the rent reduction may be imposed retroactively for any rental payments that were due between the date set forth in the original decision and the date that the violations were corrected. If the decision is upheld on appeal the rent reduction shall be effective retroactive to the date set forth in the original decision. REAP REG SEVERITY LEVELS 1. Level 1 - Nuisance When the citing agency determines that the violation(s) creates a minimal untenantable situation, but is not unsafe, there shall be a ten percent (10%) reduction in rent. 2. Level 2 Incipient Hazard When the citing agency determines that the violation(s) creates untenantability which borders on being a hazard, there shall be a fifteen percent (15%) reduction in rent. 3. Level 3 Hazardous

7 CCRIS January 21, 2016 Page 3 When the citing agency determines that the violation(s) creates untenantability which is hazardous, there shall be a twenty percent (20%) reduction in rent. REAP REG Appeals of General Manager s Decision to Appeals Board Section C. Hearing At the hearing, the Appeals Board review of the General Manager s decision will be limited to those alleged errors of law and/or abuse of discretion that occurred during the General Manager s hearing. The Board will not consider any evidence not presented at the General Manager s hearing unless it is newly discovered evidence which could not, with due diligence, have been discovered and produced at the General Manager s hearing. Matthew Holen, Management Analyst Los Angeles Housing and Community Investment Department, Compliance

8 January 21, 2016 Rent Adjustment Commission 1200 West 7 th Street, 1 st Floor Los Angeles, CA APPEAL OF GENERAL MANAGER S DECISION Type of Case: Combo Appellant: Philip Carter Property Address: 1320 N Miller Dr., Hollywood, CA Subject to RSO: No CCRIS Case Number: Number of Units in CCRIS System: 17 Notice of Acceptance into REAP: August 25, 2015 REAP Appeal Due Date: September 9, 2015 REAP Appeal Received: September 8, 2015 General Manager s Hearing: October 8, 2015 General Manager s Decision: December 21, 2015 INTRODUCTION This case is an appeal of the General Manager s Hearing decision to affirm the Department s decision to accept the building into the Rent Escrow Account Program (REAP) by the Property s Owner, Phillip Carter. The appellant states that the Decision should be reversed because an obstructive tenant prevented him from making the repairs before the General Manager s Hearing. The appellant states that the tenant has been evicted and his unit is now vacant. ISSUE BEFORE THE APPEALS BOARD The issue before the Appeals Board is whether the General Manager s Hearing Officer erred in affirming the Department s decision to accept the building into the Rent Escrow Account Program (REAP). BACKGROUND On May 5, 2015, a complaint inspection was conducted at the property as a result of a complaint by the tenant in Unit 2. Violations were observed and a Notice and Order to Comply was issued on May 6, 2015 listing approximately 31 violations. On June 18, 2015, a re-inspection was conducted revealing 18 remaining violations. Due to the substantial compliance, a 30 day extension was granted to correct the remaining violations. Remaining violations at this time included a missing heater, maintenance for dry-rot and termite damage, unapproved plumbing, fire separation, and weather protection.

9 CCRIS January 21, 2016 Page 2 On August 25, 2015, the Department issued a Notice of General Manager s Hearing, Notice of Acceptance into REAP, a Landlord s Right to Appeal, and Unresolved Violation Report. The General Manager s Hearing was conducted on October 8, On December 21, 2015, a General Manager s Decision affirming the placement into REAP was issued. Summary of General Manager s Hearings The General Manager s Hearing was conducted on October 8, HCIDLA Inspector Javier Melendez appeared at the hearing and provided testimony regarding the outstanding violations. Inspector Melendez testified that there were 18 outstanding violations at the time of the hearing. The tenant from Unit 2 appeared at the hearing. The tenant stated that there are many problems with the property including termite damage in his unit and in the common hallway and problems with the plumbing at the building. The tenant submitted photographs to show the existing violations. The owner s contractor, Lorenzo Trujillo, appeared at the hearing and provided testimony. The agent stated he only oversees the plumbing and is not personally aware of the other violations. The agent said that he has not pulled a plumbing permit because he was unsure whether it was necessary to re-pipe the entire building or if he could get a permit for only a portion of the building. On December 21, 2015, HCIDLA issued a General Manager s Hearing Decision affirming the placement into REAP and the corresponding rent reduction. ORDINANCE AND REGULATION SECTIONS LAMC SEC Decision Where it is determined that the violation has not been corrected, the General Manager may make any of the following orders, as appropriate: (1) Order that the violation be referred to the City Attorney for prosecution. (2) Order a rent reduction (3) Order that the building or dwelling units be accepted into REAP. LAMC SEC Appeals D.3 If the landlord was already in compliance with the Order before the rent reduction effective date, the decision shall be reversed. If the landlord complies with the Order after the appeal is filed but before the hearing on the appeal, the rent reduction may be imposed retroactively for any rental payments that were due between the date set forth in the original decision and the date that the violations were corrected. If the decision is upheld on appeal the rent reduction shall be effective retroactive to the date set forth in the original decision. REAP REG SEVERITY LEVELS 1. Level 1 - Nuisance When the citing agency determines that the violation(s) creates a minimal untenantable situation, but is not unsafe, there shall be a ten percent (10%) reduction in rent. 2. Level 2 Incipient Hazard When the citing agency determines that the violation(s) creates untenantability which borders on being a hazard, there shall be a fifteen percent (15%) reduction in rent. 3. Level 3 Hazardous When the citing agency determines that the violation(s) creates untenantability which is hazardous, there shall be a twenty percent (20%) reduction in rent.

10 CCRIS January 21, 2016 Page 3 REAP REG Appeals of General Manager s Decision to Appeals Board Section C. Hearing At the hearing, the Appeals Board review of the General Manager s decision will be limited to those alleged errors of law and/or abuse of discretion that occurred during the General Manager s hearing. The Board will not consider any evidence not presented at the General Manager s hearing unless it is newly discovered evidence which could not, with due diligence, have been discovered and produced at the General Manager s hearing. Matthew Holen, Management Analyst Los Angeles Housing and Community Investment Department, Compliance

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