The Rent Stabilization Ordinance (RSO) allows a landlord seeking in good faith to recover possession of a rental unit and remove units from rental housing use (also known as the Ellis Act) if the landlord plans on demolishing or permanently withdrawing the units from the rental housing market. The Los Angeles Housing Department (LAHD) will record constraints against the property. These constraints apply to any successor in interest and will be recorded with the Los Angeles County Recorder’s Office.
Who Can Apply
Per LAMC Sections 151.09.A.10 and 151.
22-151.28, a landlord may recover possession of a rental unit under either one of the following circumstances:
To demolish the rental unit; or
To remove the rental unit permanently from rental housing use.
What You Must Do
Read the Notice of Intent to Withdraw Units From Rental Housing Use application.
Utilize the checklist included in the application packet as a guide to the documents that are required as part of the application.
Complete and gather all necessary documents prior to your appointment. Please note that the documents provided to the Department will not be returned. Make any copies necessary for your records. Go to the LAHD Online Appointment System to schedule an appointment with an LAHD Analyst to review your forms to withdraw properties from the rental market via the Ellis Act. There you will be able to select Ellis as a service and a date and time for an appointment. You will be required to upload the Ellis forms prior to scheduling the appointment. Once it is confirmed you uploaded the required documents you will receive an email with the hyperlink to your virtual appointment. Be sure to check your email including your spam folder for notices about your appointment. The electronic upload is not considered the filing date. You must first meet with your Analyst for final instructions.
Complete and record the Memorandum Summarizing Non-Confidential Provisions of a Notice of Intent to Withdraw Units from Rental Housing Use (Form E1) with the County Recorder and obtain a copy showing the recordation stamp. Make sure the legal description is accurate or your filing cannot be accepted by LAHD. This is the only document that needs to be recorded as part of the application.
The following documentation is required at the time of application submission:
Recorded Non-Confidential Memorandum Summarizing Non-Confidential Provisions of a Notice of Intent to Withdraw Units from Rental housing Use (Form E1)
Notice of Intent to Withdraw Units from Rental Housing Use (Form E2)
Copy of the Notice to Tenant of Pending Withdrawal (Form E3) for each occupied unit.
Copy of notice terminating tenancy to be served to tenants, as required by California State Law.
Copy of Grant Deed.
Copy of Articles of Incorporation, Articles of Organization, Partnership Agreement if not owned by a natural person.
For Demolition/Conversion applications, include a copy of the LADBS Clearance Summary Worksheet (aka demolition permit).
Corresponding administrative fees payable to the “City of Los Angeles – LAHD.”
Serve your tenant(s) with a 120-day notice terminating their tenancy in accordance with the applicable requirements of California State law.
Notify your tenants of the withdrawal of their rental units and their rights under State and City laws by serving each household to be displaced with the completed Notice to Tenant of Pending Withdrawal (Form E3) and a blank Notice of Interest in Renewing Tenancy (Form E4). This step must take place within 5 days of your filing of the Notice of Intent with LAHD. However, concurrent notice is recommended. This notification is to comply with the requirements under the Rent Stabilization Ordinance and Ellis Act.
Pay relocation assistance within 15 days after service of the notice of eviction to tenants who will be displaced. This payment can be made either directly to the tenant or through an escrow account.
Inform LAHD of any tenant claims for entitlement to extended tenancy by completing a Notice to City of Claims for Extended Tenancy (Form E5).
Notify tenants in situations where you elect to extend the date of withdrawal up to a year for households not otherwise entitled to such an extension. In these situations you must provide LAHD the Notice to City of Extended Dates of Withdrawal (Form E6).
After withdrawing your property
The following documentation may be required after filing the Notice of Intent to Withdraw:
Notice of Interest in Renewing Tenancy (Form E4) – Copy of Form E4 must be provided to Tenant. If a tenant provides the landlord with Form E4, the landlord owner shall provide LAHD with a copy.
Notice to City of Claims for Extended Tenancy (Form E5) – If a tenant is entitled to an extended stay of one (1) year (applies if tenant is at least 62 years of age or is disabled and has lived in the unit for at least one year), the landlord shall complete Form E5 and submit it to LAHD.
Notice to City of Extended Dates of Withdrawal (Form E6) – The landlord may provide the one (1) year extension to other tenants. Landlords shall submit Form E6 if tenancy extensions are provided.
Notice of Intention to Re-Rent Withdrawn Accommodations (Form E7) – If the landlord intends to re-rent withdrawn units, the landlord must submit Form E7 to LAHD.
Annual Property Status Report (Form E 8) – The landlord must file this form annually for 7 years following the date of delivery to the Department of the Notice of Intent to Withdraw or until the Department advises that all reporting requirements are met.
Registration Instructions for Landlords
After the landlords file the Ellis forms, they must continue to pay the RSO and SCEP registration fees for occupied units and once they become vacant they must file two forms: 1) Conditional Exemption Application and 2) Temporary Exemption Application. Payments and Temporary Exemptions may be completed online at https://housingbill.lacity.
Occupied Units
If the units are occupied even for one day out of the billing year the landlord will still be responsible for paying the registration fees for that entire year regardless of whether the Ellis Notice of Intent to Withdraw for previously filed. Exemptions cannot be filed for occupied units.
- Vacant Units
After the property is completely vacant and the property removed from the rental market the landlord must complete the Conditional Exemption Application to claim an exemption #”P4A” from the registration fees based on the withdrawal of the units. LAHD will verify that the withdrawal process was completed. This form is only filed one time to obtain the long term exemption from the registration fees.
Until the Conditional Exemption Application is approved, the landlord will continue to receive a yearly registration bill and if the units are vacant they should also file the Temporary Exemption for “no rent collected” to avoid penalties. This form is located enclosed with the annual registration bill. It is possible that a landlord may receive the bill for a couple of years after they file the Ellis forms and after they file the Conditional Exemption form, therefore owners must be sure to file the Temporary Exemption for vacant units until they stop receiving the yearly bill. If a landlord does not file the Conditional Exemption Application they will continue to receive yearly registration bills.
- Vacant Units
Re-Rental of Withdrawn Units
If the landlord intends to re-rent the withdrawn units, a Notice of Intention to Re-Rent Withdrawn Accommodations form (E-7) must be filed with LAHD. The landlord may not rent or lease any such unit, except to a tenant displaced from that unit, for a period of 30 days following the filing of the notice.
Displaced tenants have a right of first refusal on the unit from which they were displaced for a period of 10 years after the withdrawal of that unit from the market.
Additionally, landlords who return accommodations for rent or lease within two years of the date of the withdrawal from the market must first offer the unit, via registered or certified mail, to the tenant or tenants displaced by the withdrawal, provided that the tenant or tenants advised the landlord, within 30 days of their displacement, of their desire to consider an offer to renew their tenancy.
The accommodations must be offered and rented or leased at the lawful rent in effect at the time any Notice of Intent to Withdraw the accommodations was filed with LAHD, plus annual adjustments available under LAMC 151.06.
If a withdrawn rental unit is returned to the market within two years of the date of withdrawal, the landlord is liable through a civil action for both actual and exemplary damages to any tenant displaced from that unit. In addition, the City may also initiate civil proceedings for exemplary damages.
Appeal Process
All parties have a right to appeal the Tenant Relocation Determination within 15 calendar days from the date of their determination. Appeals must be received by LAHD with the completed Appeal form and the filing fee made payable to “City of Los Angeles”. There is a low income exemption waiver included in the Appeal form for the appeal fee. To qualify for an exemption from the appeal filing fee, the applicant’s annual household earnings must be no more than 50 percent of the median income in the Los Angeles area. If you do not qualify for an exemption, you must submit the filing fee before an appeal can be scheduled.
