Los Angeles Multifamily Landlords Win Partial Court Victory

LA multifamily landlords win partial ruling as relocation assistance rule is overturned, shifting tenant protection policies.
LA multifamily landlords win partial ruling as relocation assistance rule is overturned, shifting tenant protection policies.
  • Los Angeles multifamily landlords won a court ruling overturning a relocation assistance requirement.
  • The decision found the rule conflicted with the Costa-Hawkins Rental Housing Act.
  • A separate eviction threshold ordinance was upheld, leaving some protections in place.
  • AAGLA may continue legal action on the eviction threshold issue.
Key Takeaways

Partial Win for Landlords

The Apartment Association of Greater Los Angeles secured a partial legal victory against tenant protection laws. The case affects the Los Angeles multifamily sector, according to Bisnow. The 2nd District California Court of Appeal struck down a key city requirement. Landlords no longer must provide relocation assistance after legal rent increases. This rule applied to tenants in non-rent-stabilized units. The court ruled the mandate conflicted with state law. Specifically, it violated the Costa-Hawkins Rental Housing Act. That law allows market-rate rent increases on non-stabilized properties.

Eviction Threshold Remains

AAGLA also challenged an ordinance setting a minimum rent threshold before eviction proceedings could begin. The threshold equals one month’s fair market rent. On this issue, the appellate court sided with the city. It upheld the lower court’s earlier ruling and kept the protection in place. This outcome reflects broader legal pushback across California, where courts continue to balance landlord rights with voter-driven tenant protections. AAGLA officials are now considering further appeals and legal action.

Why It Matters

The split decision highlights ongoing friction between Los Angeles multifamily landlords and city policymakers over tenant protection measures. While the court reaffirmed landlords’ ability to implement market-rate rent increases for properties not under rent stabilization, it also preserved certain eviction restrictions. Property owners and industry groups are expected to remain active in shaping the local regulatory environment in the coming months.

RECENT NEWSLETTERS

View All
CRE Daily - No Cap

podcast

No CAP by CRE Daily

No Cap by CRE Daily is a weekly podcast offering an unfiltered look into commercial real estate’s biggest trends and influential figures.

CRE Daily Newsletters

Join 65k+
  • operators
  • developers
  • brokers
  • owners
  • landlords
  • investors
  • lenders

who start their day with CRE Daily.

The latest news and trends in commercial real estate delivered to your inbox. Get smarter about what matters in just 5-minutes or less.