What It Costs
REAP is a program designed to encourage property owners to bring their properties into compliance. So it makes sense that the longer you stay in REAP, the more it is going to cost you!
Penalties can be 100% of the fees, so make sure you pay these fees in a timely manner.
Contact the REAP Final Accounting Staff at (213) 808-8900 to take care of these fees now!
- Reduced Rents up to 50%
- Rents are reduced 10-50% dependent on the number and severity of violations
- Rents held in an escrow account established by HCIDLA
- No rent increases for one year following closure of REAP
- Costly inspections, including two pre-paid inspections for REAP monitoring
- Property Management Training
Penalties can be 100% of the fees, so make sure you pay these fees in a timely manner.
Contact the REAP Final Accounting Staff at (213) 808-8900 to take care of these fees now!
REAP Escrow Account
Once a property is accepted into the REAP program, an escrow account is established for the property by the Housing and Community Investment Department of Los Angeles.
During the period of time the property is in REAP, tenants rents are reduced, and tenants are given the option of paying their reduced rents to the escrow account. Tenants are not required to pay into the escrow account, and may continue to pay the reduced rent directly to the owner.
The Housing and Community Investment Department of Los Angeles will provide property owners in REAP a monthly accounting of all rents paid into the escrow account, as well as any deductions. Once a property has been removed from the REAP program, the property owner will receive a full accounting of rents paid into and deductions taken from the escrow account. In addition, upon removal from the REAP program, HCIDLA will deduct administrative fees owed from the rent submitted to the escrow account. In order to ensure receipt of the monthly statements, please contact the REAP billing department to ensure they have correct contact information. (213) 808-8900
During the period of time the property is in REAP, tenants rents are reduced, and tenants are given the option of paying their reduced rents to the escrow account. Tenants are not required to pay into the escrow account, and may continue to pay the reduced rent directly to the owner.
The Housing and Community Investment Department of Los Angeles will provide property owners in REAP a monthly accounting of all rents paid into the escrow account, as well as any deductions. Once a property has been removed from the REAP program, the property owner will receive a full accounting of rents paid into and deductions taken from the escrow account. In addition, upon removal from the REAP program, HCIDLA will deduct administrative fees owed from the rent submitted to the escrow account. In order to ensure receipt of the monthly statements, please contact the REAP billing department to ensure they have correct contact information. (213) 808-8900
Loss of Rents
Once a property is accepted into the REAP program, tenant rents are reduced 10-50% based on the number of and severity of the violations.
This rent reduction is considered credit to the tenants for living in a residence that is not fully compliant with the Los Angeles Housing Codes. At no time may the owner “go back” to tenants for payment of the reduced portion…even after the property has been removed from REAP. This income is lost to the owner.
Tenants have the option of paying the reduced rent directly to the owner, or into the REAP escrow account. The owner may not demand tenants pay their rent directly to owner. HCIDLA also may not demand tenants pay their rent into the escrow account.
Once a property is removed from REAP, owners may restore rents to their original levels. However, owner can not issue any rent increases for one year.
This rent reduction is considered credit to the tenants for living in a residence that is not fully compliant with the Los Angeles Housing Codes. At no time may the owner “go back” to tenants for payment of the reduced portion…even after the property has been removed from REAP. This income is lost to the owner.
Tenants have the option of paying the reduced rent directly to the owner, or into the REAP escrow account. The owner may not demand tenants pay their rent directly to owner. HCIDLA also may not demand tenants pay their rent into the escrow account.
Once a property is removed from REAP, owners may restore rents to their original levels. However, owner can not issue any rent increases for one year.
LAHD Fees
In addition to the loss of partial rental income, once a property is placed in the REAP program, the owner is responsible the program administrative fees. You may be subject to the following fees:
If you are facing financial difficulties and are not able to pay these fees, you may contact HCIDLA REAP Billing Department to see if you qualify for a payment plan for payment of fees.
- $50.00 per unit per month administrative fee
- $201.50 for each HCIDLA inspection
- $338.00 pre-paid upon closure of the REAP case for two annual Systematic Code Enforcement inspections for REAP monitoring, to ensure that your property remains in compliance
- If your case has also been referred to the City Attorney, you may be responsible for legal fees
- Any outstanding fees owed to the Housing and Community Investment Department of Los Angeles
- Property Management Training if applicable
If you are facing financial difficulties and are not able to pay these fees, you may contact HCIDLA REAP Billing Department to see if you qualify for a payment plan for payment of fees.
Requesting Funds
REQUESTING FUNDS
Your tenants are paying into the escrow account, but you are expected to pay for all of these repairs you are making to your property. So how do you get the money? Good news! You as the owner are entitled to request money from the escrow account. In fact, several parties are able to request a withdrawal of funds from the escrow account. Here’s the who, why, and how of it.
Who?
The property owner, a tenant, a creditor, or the Housing and Community Investment Department of Los Angeles
Why?
Property Owner: The property owner may request funds for three reasons.
Tenant: A tenant of the property may request funds from the escrow account either as relocation monies, or to make repairs to their unit. A tenant may request funds from the escrow account in order to move out and relocate. A tenant may also request the funds in order to make the necessary repairs because an owner refuses.
Creditor: A creditor of the property may request funds from the escrow account in order to satisfy a judgment or court order.
HCIDLA: HCIDLA may deduct monies from the escrow account to pay the administrative fees incurred during the property’s duration in the REAP program or to pay utility bills for the property in order to avoid shutoff.
How?
In order to request a withdrawl of funds from the escrow account, the person requesting the funds must file an Application and Declaration for Return of Escrowed Funds with the Housing and Community Investment Department of Los Angeles. You will be notified within 21 days of a scheduled General Manager’s hearing. You are required to attend this hearing to support your application. You must provide supporting documentation. Within 10 days of the hearing the hearing officer will make a decision regarding your request.
You can request and submit the Application and Declaration for Return of Escrowed Funds form and supporting documentation at any of the following HCIDLA offices:
*For Fastest Response
Housing and Community Investment Department of Los Angeles
PO Box 17460
Los Angeles, CA 90017
North Regional Office
6640 Van Nuys Boulevard
Van Nuys, CA 91405
(818) 756-1498 Rent
(818) 756-1473 Code
South Regional Office
690 Knox Street, # 125
Torrance, CA 90502
(310) 524-1210 Rent
(310) 524-1230 Code
East Regional Office
2215 North Broadway
Los Angeles, CA 90031
(323) 226-9800
West Regional Office
1645 Corinth Avenue, Ste 104
Los Angeles, CA 90025
(310) 572-2000
Central Regional Office
3550 Wilshire Boulevard, 15th Floor
Los Angeles, CA 90010
(213) 252-1400
Your tenants are paying into the escrow account, but you are expected to pay for all of these repairs you are making to your property. So how do you get the money? Good news! You as the owner are entitled to request money from the escrow account. In fact, several parties are able to request a withdrawal of funds from the escrow account. Here’s the who, why, and how of it.
Who?
The property owner, a tenant, a creditor, or the Housing and Community Investment Department of Los Angeles
Why?
Property Owner: The property owner may request funds for three reasons.
- In order to avoid shut off of essential services to the property (ie utilities, trash services, extermination, elevator service)
- In order to make repairs to the property, including, but not limited to, the violations that were present at the time the building was placed in REAP.
- Judgement or court order
Tenant: A tenant of the property may request funds from the escrow account either as relocation monies, or to make repairs to their unit. A tenant may request funds from the escrow account in order to move out and relocate. A tenant may also request the funds in order to make the necessary repairs because an owner refuses.
Creditor: A creditor of the property may request funds from the escrow account in order to satisfy a judgment or court order.
HCIDLA: HCIDLA may deduct monies from the escrow account to pay the administrative fees incurred during the property’s duration in the REAP program or to pay utility bills for the property in order to avoid shutoff.
How?
In order to request a withdrawl of funds from the escrow account, the person requesting the funds must file an Application and Declaration for Return of Escrowed Funds with the Housing and Community Investment Department of Los Angeles. You will be notified within 21 days of a scheduled General Manager’s hearing. You are required to attend this hearing to support your application. You must provide supporting documentation. Within 10 days of the hearing the hearing officer will make a decision regarding your request.
You can request and submit the Application and Declaration for Return of Escrowed Funds form and supporting documentation at any of the following HCIDLA offices:
*For Fastest Response
Housing and Community Investment Department of Los Angeles
PO Box 17460
Los Angeles, CA 90017
North Regional Office
6640 Van Nuys Boulevard
Van Nuys, CA 91405
(818) 756-1498 Rent
(818) 756-1473 Code
South Regional Office
690 Knox Street, # 125
Torrance, CA 90502
(310) 524-1210 Rent
(310) 524-1230 Code
East Regional Office
2215 North Broadway
Los Angeles, CA 90031
(323) 226-9800
West Regional Office
1645 Corinth Avenue, Ste 104
Los Angeles, CA 90025
(310) 572-2000
Central Regional Office
3550 Wilshire Boulevard, 15th Floor
Los Angeles, CA 90010
(213) 252-1400
Evictions
Being in REAP can affect the eviction process, specifically for eviction for non-payment of rent.
AN OWNER MAY NOT EVICT A TENANT OR RETALIATE AGAINST A TENANT FOR PARTICIPATING AND PAYING THEIR RENT INTO THE ESCROW ACCOUNT.
If you would like to know whether a tenant is paying the rent into the escrow account prior to receipt of your monthly statement, an owner may submit a request to the Housing and Community Investment Department of Los Angeles to verify that the tenant has not paid rent into the REAP escrow account. Requests should be submitted to any of the regional offices (noted in the Resources Section). Within 3 days, HCIDLA will respond to the owner in writing. The owner may not proceed with the eviction process of any tenant for nonpayment of rent without making this verification.
You will want to consult your attorney before filing any unlawful detainer.
What about issues other than nonpayment of rent?
In the case of eviction for issues other than nonpayment of rent, as well as in the case of eviction for non-payment of rent, an owner should always consult an attorney familiar with landlord-tenant law.
AN OWNER MAY NOT EVICT A TENANT OR RETALIATE AGAINST A TENANT FOR PARTICIPATING AND PAYING THEIR RENT INTO THE ESCROW ACCOUNT.
If you would like to know whether a tenant is paying the rent into the escrow account prior to receipt of your monthly statement, an owner may submit a request to the Housing and Community Investment Department of Los Angeles to verify that the tenant has not paid rent into the REAP escrow account. Requests should be submitted to any of the regional offices (noted in the Resources Section). Within 3 days, HCIDLA will respond to the owner in writing. The owner may not proceed with the eviction process of any tenant for nonpayment of rent without making this verification.
You will want to consult your attorney before filing any unlawful detainer.
What about issues other than nonpayment of rent?
In the case of eviction for issues other than nonpayment of rent, as well as in the case of eviction for non-payment of rent, an owner should always consult an attorney familiar with landlord-tenant law.