California CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Lawsuit Challenges City of L.A.’s Eviction Ban, Rent Freeze Moratoria
The Apartment Association of Greater Los Angeles (AAGLA) filed a lawsuit against the City of Los Angeles on behalf of its members and housing providers in the city, and is seeking an order invalidating the City eviction ban and rent freeze moratoria. The lawsuit, filed in Federal Court on Thursday, is a constitutional challenge that essentially argues that the City’s prohibition imposed on residential and commercial landlords from undertaking eviction procedures for tenants financially or otherwise impacted by the pandemic, singles out landlords and property owners throughout the City to absorb the residents’ claimed economic losses stemming from the COVID-19 crisis.
Additionally, the lawsuit asserts that the City’s eviction ban illegally modifies existing contractual relationships by nullifying any late fees or interest while the emergency declaration is in place and throughout the one year period following the end of the emergency, and also imposes a moratorium on annual rent increases for any rent increase scheduled.
Lastly, the lawsuit asserts that the City’s imposition of the eviction ban provides benefits to renters well beyond what the State has provided through the Governor’s orders, and that the City has exposed itself to significant liability risk for all damages associated with the eviction ban, including the damages stemming from the lack of “end date” on the eviction ban, and the one year grace period following the, as yet, unknown date.
AAGLA’s President of the Board, Earle Vaughan, stated: “The City’s Eviction Ban was not well thought out and will very likely expose the City to hundreds of millions of dollars in liability (if not more) to landlords and property owners throughout the City.”
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Lease
