Los Angeles County Rent Relief Program: Essential Information for Residential Landlords Owning Four or Fewer Rental Units
May 23, 2024 – Client AlertIn an effort to alleviate the financial burdens faced by small residential landlords during the ongoing economic recovery from the COVID-19 pandemic, Los Angeles County has introduced the Los Angeles County Rent Relief Program (LARR). Administered by the Department of Consumer and Business Affairs (DCBA), this program aims to provide direct financial support to landlords who have struggled with tenants unable to pay rent.
Program Overview:
The LARR Program is a robust initiative, offering $68,666,000 in grants to eligible landlords with properties located in Los Angeles County, excluding the City of Los Angeles. This financial assistance is intended to cover unpaid rental debts and other related expenses (such as utilities) from April 1, 2022, to the present. By addressing these financial shortfalls, the program seeks to stabilize housing and support landlords in maintaining their properties.
Eligibility Criteria:
To qualify for the grants, landlords must meet specific criteria:
- Property Location: The rental property must be within Los Angeles County, but not within the City of Los Angeles.
- Ownership Verification: Landlords must provide proof of ownership, which will be independently verified through third-party resources.
- W9 Validation: The landlord’s W9 information must be validated against IRS records.
- Rental Relationship: Evidence of a rental relationship and current tenant occupancy must be provided.
- Rental Arrears: Rental arrears must have occurred from April 2022 onwards, with no overlap with the following mortgage relief programs:
- Stay Housed LA
- DCBA Rental Housing Supports and Services
- L.A. County Mortgage Relief Program
- Expense Documentation: All eligible expenses must be supported by verifiable documentation.
Prioritization:
The program employs a prioritization methodology to ensure that those in greatest need receive assistance first. Priority is given based on:
- Income Levels: Landlords or their tenants with household incomes not exceeding 80% of the Area Median Income (AMI) for the Los Angeles Metropolitan Area.
- High-Need Areas: Properties located in “highest” or “high” need census tracts as identified by the County’s COVID-19 Vulnerability and Recovery Index.
- Debt Forgiveness: Landlords who can satisfy all back rent owed through the grant, with a maximum of $30,000 per unit.
- Small Property Owners: Landlords owning no more than one rental property with four or fewer rentable units.
Required Documentation:
Applicants need to submit comprehensive documentation to substantiate their claims, including:
- Proof of Identity: Government-issued photo ID, Social Security card, or other forms of identification.
- Proof of Income: Federal tax returns, pay stubs, or other proof of income.
- Proof of Ownership: Deed, property tax statement, or other proof of ownership.
- Proof of Tenancy: Current lease agreement or other evidence of tenancy.
- Proof of Rent Owed: Rent ledger, eviction notices, or other documentation of rent owed.
- Proof of Expenses: Utility bills, maintenance costs, and other eligible expenses.
Application Process:
The application process is designed to be straightforward:
- Visit www.lacountyrentrelief.com and click on "APPLY NOW."
- Register an account by entering your email and verifying it.
- Complete the application by providing the necessary details and uploading required documents.
- Submit the application for review.
Important Notes:
- Each rental unit can only have one application submitted.
- A “rental unit” must be a residential property with its own unique address (i.e. an apartment, condo, single-family house, or mobile home).
- Landlords and tenants must not be the same person.
- The review process is prioritized, and funding is limited, so applying early is crucial.
- Immigration status does not affect eligibility.
Urgent Deadline – June 4, 2024:
Landlords should be aware of the limited window of opportunity to apply for this financial assistance. The program has a set deadline of June 4, 2024, and due to high demand and limited funds, it is important to submit applications as soon as possible to ensure consideration.
Review and Appeals:
Applications will be reviewed by case managers to verify eligibility. In cases where applications are deemed ineligible, applicants have the right to appeal the decision within 30 days of notification. This appeals process provides a final opportunity for landlords to present additional information or correct any discrepancies.
For more detailed information, please refer to the Program and Application Guide.
Contact Information:
For assistance, please contact the Customer Call Center at (877) 849-0770, Monday to Friday, 8:00 a.m. - 6:00 p.m. PT (May 20 – May 31) and 8:00 a.m. - 5:00 p.m. PT (after June 1).
Visit www.lacountyrentrelief.com for updates and to start your application.
Greenberg Glusker remains committed to supporting our clients in navigating these challenging times. If you have any questions or need further assistance, please do not hesitate to reach out to a member of our Real Estate Group.