I suggest that you go to the website for the Los Angeles Housing Department and look at all the information regarding REAP on the web site.
WHAT CAN AN OWNER EXPECT FROM BEING PLACED INTO REAP?
Loss of Monthly Income
Tenants may pay their rents to LAHD
Rental income reduced up to 50%
No annual rent increases for 12 months after the property is removed from REAP
$50 Charge per unit per month while in REAP.
$201.50 charge for each LAHD inspection.
Landlords are required to pre-pay for two Annual SCEP Inspections ($338.00) when the property is removed from REAP.
Tenants may apply for their deposited rental funds for relocation or repairs.
Notice of REAP recorded against your property’s title.
The recording may restrict a refinance or sale of the property.
ONCE IN REAP, HOW DO I HAVE MY PROPERTY REMOVED FROM THE PROGRAM?
Repair ALL cited violations, plus other deficiencies at the property.
Contact the REAP Section 213 808-8500.
REAP will ask questions to determine if the owner is ready to be removed from the program. REAP will make a request the contractor to schedule a site visit with the property owner.
During the Outreach contractor site visit the contractor, will issue either a positive or negative report.
A negative report means that the tenant issues have not been addressed and further work will be required.
A positive report means that LAHD will request the owner to contact their case manager for a final. The owner must make the request because inspection will charge for the site visit.
Inspection may “Sign Off”, meaning the owner has attained compliance from LAHD Case Management.
Once the positive report and compliance is attained, the REAP section will confirm if additional orders exist with Building & Safety, Department of Health Services, and the Fire Department. In addition, your, current DWP bill must be paid. These additional steps are required by the City Ordinance.
When each of the above items are achieved, REAP will recommend to the LA City Council to remove your property from the REAP program.
After City Council adopts to remove the property from the program, REAP will issue a 30 day notice formally closing the escrow account and restore the rents to their original levels.
HOW LONG WILL THE REMOVAL PROCESS TAKE?
Once REAP determines that a positive report is issued and compliance has been attained, REAP can have the case before City Council in 2 to 3 weeks. PLEASE NOTE: After City Council removes the property from REAP, the REAP program is required to mail a 30 day notice, formally closing the escrow account and restoring the rents to their original level. Therefore, the total time to remove a case is 6 to 7 weeks.
HOW DO I CLEAR MY TITLE OF REAP?
After your property is removed by the Los Angeles City Council, the owner is responsible for paying all REAP Administration Fees, Inspection Fees, SCEP fees, Legal preparation Fees, the 2 pre-paid annual inspection fees. Once these fees are paid, REAP will prepare a termination document and send the paper work to the County Recorders Office. Cases where tenants made deposits into the escrow account will be used to cover the costs of these fees. If there are not enough funds to cover the costs, the owner is required to pay the balance.
HOW DO I AVOID BEING PLACED INTO REAP?
If your property is inspected and cited for violations, repair them as soon as possible.
If you get behind on making repairs and the time allowed by the order has expired, you now run the risk of being placed into REAP. Take action immediately to achieve compliance.
Once a notice accepting the property into REAP has been mailed to the landlord, the owner has 15 calendar days to appeal the REAP acceptance.
If the owner does not appeal, the property will be placed into REAP automatically.
The first appeal will grant the owner the time to attain compliance by the date of their General Manager Hearing. PLEASE NOTE: You must have a sign off by LAHD before the General Manager’s Hearing date to prevent the property from being accepted into REAP.
After the Hearing, the General Manager will issue a decision to accept the property into REAP or not. The decision by the General Manager may be appealed.
If the General Manager accepts the property into REAP, the landlord, within 10 calendar days, may file an appeal. The cost of the appeal is $150.00.
IMPORTANT NOTE! The appeal of the General Manager’s Decision does not grant the owner more time to comply!
If the owner appeals the acceptance into REAP and attains compliance after the General Manager’s Hearing’s date, then the compliance date is considered late. The property will be placed into REAP.
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