CITY OF LOS ANGELES HOUSING + COMMUNITY INVESTMENT DEPARTMENT RENT STABILIZATION DIVISION RENT ADJUSTMENT COMMISSION (RAC) AGENDA

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1 CITY OF LOS ANGELES HOUSING + COMMUNITY INVESTMENT DEPARTMENT RENT STABILIZATION DIVISION RENT ADJUSTMENT COMMISSION (RAC) AGENDA Thursday, August 3, :00 P.M. Garland Office Hearing Room 1200 West 7th Street 1st Floor Los Angeles, CA Note: Please see security desk upon entering the building. COMMISSIONERS Sam E. Lucas, Chairperson Carole Brogdon, Vice Chairperson Leonora Gershman Pitts Paula Leftwich Jane Paul Dash Stolarz Ernesto G. Hidalgo Rushmore D. Cervantes, General Manager Anna Ortega, Director Rent Stabilization Susan Gosden, Senior Management Analyst II I. COMMISSION BUSINESS A. Call to Order, Roll Call, Establish Quorum B. HCIDLA Report C. RAC Chairperson s Report D. Internal Review Committee (IRC) Chairperson s Report E. Informational Material II. III. HEARINGS REPORT Review of the Hearings Section appeals workload RAC QUARTERLY REPORT A. Review of the RAC Quarterly Report for the 4 th Quarter (October to December) 2016 B. Approval of the RAC Quarterly Report for the 4 th Quarter (October to December) 2016

2 IV. RAC DISCUSSION OF NEW BUSINESS AND REQUESTS TO SCHEDULE ITEMS Opportunity for Commissioners to identify topics of interest within the subject matter of the Commission and to request the scheduling of that item on future agendas of the Commission. Maximum discussion is five minutes per topic. V. PUBLIC COMMENT PERIOD ON NON-AGENDA ITEMS WITHIN THE JURISDICTION OF THE RAC Opportunity for the public to address the Commissioners to identify topics of interest. VI. FUTURE MEETINGS (tentative) RAC: August 17, 2017 September 7, 2017 September 21, 2017 October 5, 2017 IRC: August 24, 2017 September 14, 2017 APPEALS BOARD I. APPEALS OF GENERAL MANAGER S HEARING DECISION The Rent Adjustment Commission (RAC) will convene as the Appeals Board to consider and make determinations regarding appeals of the General Manager s decisions for the following cases: A. Property Address: 3950 W. 6 th St., Los Angeles, CA Type of Case: Combo Case Number: CCRIS De Young Kim General Manager s Hearing Date: May 2, 2017 General Manager s Hearing Decision Date: May 23, 2017 The appellant filed an appeal of the General Manager s Hearing Officer s decision to accept the building or unit into the Rent Escrow Account Program (REAP) and B. Property Address: 2701 Peck Ave., Los Angeles, CA Type of Case: Combo Case Number: CCRIS Babbitt Enterprises General Manager s Hearing Date: April 18, 2017 General Manager s Hearing Decision Date: June 2, 2017 The appellant filed an appeal of the General Manager s Hearing Officer s decision to accept the building or unit into the Rent Escrow Account Program (REAP) and

3 C. Property Address: 4422 S. Wesley Ave., Los Angeles, CA Type of Case: Combo Case Number: CCRIS William Lew General Manager s Hearing Date: May 15, 2017 General Manager s Hearing Decision Date: June 6, 2017 The appellant filed an appeal of the General Manager s Hearing Officer s decision to accept the building or unit into the Rent Escrow Account Program (REAP) and D. Property Address: 9040 N. Ledge Ave., Sun Valley, CA Type of Case: Combo Case Number: CCRIS Rahmi Turkmen General Manager s Hearing Date: May 9, 2017 General Manager s Hearing Decision Date: June 6, 2017 The appellant filed an appeal of the General Manager s Hearing Officer s decision to accept the building or unit into the Rent Escrow Account Program (REAP) and II. AB ADJOURNMENT Person(s) wishing to speak during consideration of a specific item must complete a Speaker Card form and submit it to a Department staff person. In accordance with the RAC s Working Rules, for any item listed on the agenda, any individual or representative of any group may address the RAC prior to any action being taken by the RAC on that specific agenda item. Comments will be limited to three minutes per speaker, and there shall be a cumulative total of up to twelve minutes allowed per agenda item unless a time extension is allowed by the RAC. As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and upon request, will provide reasonable accommodation to ensure access to its programs, services and activities. Sign language interpreters, assisted listening devices, language translators or other auxiliary aids and/or services may be provided upon request. To ensure availability, requests need to be called in to the Hearing Section or RAC Support Section at least three working days before the meeting. Please contact the Hearing Section at (213) or RAC Support at (213) The TDD telephone number for public information is (213) Mail all RAC correspondence to: Rent Adjustment Commission, 1200 W. 7th St, Suite 100, Los Angeles, CA For other questions or comments regarding specific appeals, hearings, or case scheduling please contact Hearing Section at (213) For general questions regarding Rent Stabilization, Code Enforcement, or SCEP please call (866) 557-RENT (7368) or (213) If you challenge these agenda items in court, you may be limited to raising only those issues you or someone else raised at the public hearing in this agenda, or in written correspondence on these matters delivered to this agency at or prior to the public hearing. The time in which a party may seek judicial review of this determination is governed by California Code of Civil Procedure Section Under that provision, a petitioner may seek judicial review of any decision of the City pursuant to California Code of Civil Procedure Section , only if the petition for writ of mandate pursuant to that section is filed no later than the 90th day following the date on which the City's decision became final.

4 August 3, 2017 Rent Adjustment Commission 1200 West 7 th Street, 1 st Floor Los Angeles, CA APPEAL OF GENERAL MANAGER S DECISION Type of Case: REAP De Young Kim, Owner Property Address: 3950 W 6 th St., Los Angeles, CA Subject to RSO: Yes CCRIS Case Number: Number of Units in CCRIS System: 26 Notice of Acceptance into REAP: April 10, 2017 General Manager s Hearing: May 2, 2017 General Manager s Decision: May 23, 2017 INTRODUCTION This case is an appeal of a General Manager s Decision to affirm the Department s Decision to accept the subject property into the Rent Escrow Account Program (REAP). The appellant states that the owners are 85 years old and have bad medical conditions. ISSUE BEFORE THE APPEALS BOARD The issue before the Appeals Board is whether the General Manager s Hearing Officer erred in affirming the Department s decision to accept the building into the Rent Escrow Account Program (REAP). BACKGROUND On August 17, 2016, a SCEP inspection was conducted at the subject property. Violations were observed and a Notice and Order to Comply was issued on October 3, 2016 listing approximately 184 violations. On December 1, 2016, a re-inspection was conducted. Some violations were corrected, but new violations were also observed. An updated Notice and Order to Comply listing 200 violations was issued on December 22, On January 31, 2017, a second re-inspection was conducted revealing 95 remaining violations. On March 15, 2017, a third re-inspection was conducted revealing 4 remaining violations. On April 10, 2017, the Department issued a Notice of General Manager s Hearing and Notice of Acceptance into REAP. On May 2, 2017, the General Manager s hearing was held. 3

5 CCRIS August 3, 2017 Page 2 On May 23, 2017, a General Manager s decision was issued affirming placement into REAP. Summary of General Manager s Hearing The General Manager s hearing was convened on May 2, Inspector Steven Harrison appeared at the hearing and provided testimony. He stated that there are 4 remaining violations as of the last inspection. The remaining violations included illegal construction, exposed wiring, and unapproved electrical work in the common area and an inoperative smoke detector in unit 414. The agent for the owner, Song Jackson, appeared at the hearing and provided testimony. She said the smoke detector in unit 414 has already been replaced. She said that some of the work that is being cited is work that is being done by the Department of Water and Power. She said some of the cited electrical wires are not dangerous. Inspector Harrison said he did not understand her claim that the Department of Water and Power was doing the work and that Building and Safety records show multiple permits applied for but not finalized related to the electrical work. Tenants from units 301, 302, 303, 304, 307, 312, 406, 407, 411, 412, and 414 appeared at the hearing. The tenants disputed the owner s representative s claims. They said she did not understand what the violations were. They said the problems with the building have existed for many years and are not caused by the Department of Water and Power. On May 23, 2017, a Decision was issued affirming the Department s decision to accept the building into REAP and ORDINANCE AND REGULATION SECTIONS LAMC SEC Decision Where it is determined that the violation has not been corrected, the General Manager may make any of the following orders, as appropriate: (1) Order that the violation be referred to the City Attorney for prosecution. (2) Order a rent reduction (3) Order that the building or dwelling units be accepted into REAP. LAMC SEC C. Appeal of the General Manager Hearing Officer Decision. The property owner/landlord, any tenant or the Enforcement Agency may appeal to the RAC Appeals Board within ten calendar days after service of the General Manager Hearing Officer Decision, following the procedures set forth in Division 10 of Article 1 of Chapter XVI. If a General Manager Hearing Officer Decision to place a property into REAP is appealed, enforcement of REAP will be stayed until the appeal is final. An application fee required pursuant to Section may be waived by the Department in accordance with the standards and procedures set forth in Section C. REAP REG Appeals of General Manager s Decision to Appeals Board Section C. Hearing At the hearing, the Appeals Board review of the General Manager s decision will be limited to those alleged errors of law and/or abuse of discretion that occurred during the General Manager s hearing. The Board will not consider any evidence not presented at the General Manager s hearing unless it is newly discovered evidence which could not, with due diligence, have been discovered and produced at the General Manager s hearing. Matthew Holen, Senior Management Analyst Los Angeles Housing and Community Investment Department, Compliance 4

6 August 3, 2017 Rent Adjustment Commission 1200 West 7 th Street, 1 st Floor Los Angeles, CA APPEAL OF GENERAL MANAGER S DECISION Type of Case: REAP Babbit Enterprises, Property Manager Property Address: 2701 S Peck Ave., Los Angeles, CA Subject to RSO: Yes CCRIS Case Number: Number of Units in CCRIS System: 9 Notice of Acceptance into REAP: March 17, 2017 General Manager s Hearing: April 18, 2017 General Manager s Decision: June 2, 2017 INTRODUCTION This case is an appeal of a General Manager s Decision to affirm the Department s Decision to accept the subject property into the Rent Escrow Account Program (REAP). The appellant states that the heating system had been changed twice due to new city regulations, they are waiting on a building inspection, and the heater has been removed by tenants. ISSUE BEFORE THE APPEALS BOARD The issue before the Appeals Board is whether the General Manager s Hearing Officer erred in affirming the Department s decision to accept the building into the Rent Escrow Account Program (REAP). BACKGROUND On August 9, 2016, a SCEP inspection was conducted at the subject property. Violations were observed and a Notice and Order to Comply was issued on September 13, 2016 listing approximately 9 violations. On October 25, 2016, a re-inspection was conducted revealing 2 remaining violations. On March 17, 2017, the Department issued a Notice of General Manager s Hearing and Notice of Acceptance into REAP. On March 20, 2017, a second re-inspection was conducted revealing one remaining violation. On April 18, 2017, the General Manager s hearing was held. On June 2, 2017, a General Manager s decision was issued affirming placement into REAP. 3

7 CCRIS August 3, 2017 Page 2 Summary of General Manager s Hearing The General Manager s hearing was convened on April 18, Inspector Barry Craddolph appeared at the hearing and provided testimony. He stated that there is one remaining violation as of the last inspection for a missing heating appliance in unit 9. Representatives for the management company, Hector and Thomasina Medina, appeared at the heraing and provided testimony. They said they installed an electric heater previously, but did not know they needed a permit because the property originally had a gas heater. They said the tenant removed the heater and they do not know where it is now. They said they have installed a gas heater and have a Building and Safety inspection scheduled for today to finalize the permit. The Hearing Officer said he will review the record before issuing a decision in ten days to see the status of any pending inspections. On June 2, 2017, a Decision was issued affirming the Department s decision to accept the building into REAP and The Hearing Officer noted that there was no record of an inspection after the General Manager s hearing. ORDINANCE AND REGULATION SECTIONS LAMC SEC Decision Where it is determined that the violation has not been corrected, the General Manager may make any of the following orders, as appropriate: (1) Order that the violation be referred to the City Attorney for prosecution. (2) Order a rent reduction (3) Order that the building or dwelling units be accepted into REAP. LAMC SEC C. Appeal of the General Manager Hearing Officer Decision. The property owner/landlord, any tenant or the Enforcement Agency may appeal to the RAC Appeals Board within ten calendar days after service of the General Manager Hearing Officer Decision, following the procedures set forth in Division 10 of Article 1 of Chapter XVI. If a General Manager Hearing Officer Decision to place a property into REAP is appealed, enforcement of REAP will be stayed until the appeal is final. An application fee required pursuant to Section may be waived by the Department in accordance with the standards and procedures set forth in Section C. REAP REG Appeals of General Manager s Decision to Appeals Board Section C. Hearing At the hearing, the Appeals Board review of the General Manager s decision will be limited to those alleged errors of law and/or abuse of discretion that occurred during the General Manager s hearing. The Board will not consider any evidence not presented at the General Manager s hearing unless it is newly discovered evidence which could not, with due diligence, have been discovered and produced at the General Manager s hearing. Matthew Holen, Senior Management Analyst Los Angeles Housing and Community Investment Department, Compliance 4

8 August 3, 2017 Rent Adjustment Commission 1200 West 7 th Street, 1 st Floor Los Angeles, CA APPEAL OF GENERAL MANAGER S DECISION Type of Case: REAP William Lew, Property Manager Property Address: 4422 S Wesley Ave., Los Angeles, CA Subject to RSO: Yes CCRIS Case Number: Number of Units in CCRIS System: 4 Notice of Acceptance into REAP: April 21, 2017 General Manager s Hearing: May 15, 2017 General Manager s Decision: June 6, 2017 INTRODUCTION This case is an appeal of a General Manager s Decision to affirm the Department s Decision to accept the subject property into the Rent Escrow Account Program (REAP). The appellant states that the contractor that was hired quit without finishing the work. ISSUE BEFORE THE APPEALS BOARD The issue before the Appeals Board is whether the General Manager s Hearing Officer erred in affirming the Department s decision to accept the building into the Rent Escrow Account Program (REAP). BACKGROUND On December 21, 2016, a SCEP inspection was conducted at the subject property. Violations were observed and a Notice and Order to Comply was issued on the same day listing approximately 37 violations. On February 1, 2017, a re-inspection was conducted revealing 29 violations remained outstanding. On April 21, 2017, the Department issued a Notice of General Manager s Hearing and Notice of Acceptance into REAP. On May 15, 2017, the General Manager s hearing was held. On June 6, 2017, a General Manager s decision was issued affirming placement into REAP. 3

9 CCRIS August 3, 2017 Page 2 Summary of General Manager s Hearing The General Manager s hearing was convened on May 9, Inspector Barry Craddolph appeared at the hearing and provided testimony. He stated that there are 29 remaining violations as of the last inspection. He said the remaining violations included emergency egress blockages, window and door maintenance, plumbing fixture maintenance, improper ventilation, double keyed locks, carbon monoxide detectors, and open storage. Agents for the owner, Maria and William Lew, appeared at the hearing and provided testimony. Mr. Lew said some of the tenants have been storing personal items improperly and changed locks so he cannot access their units. He submitted an invoice from his contractor showing the work that was done. He said he believes the contractor has addressed the violations, but the contractor has stopped being responsive so he does not know the current status. On June 6, 2017, a Decision was issued affirming the Department s decision to accept the building into REAP and ORDINANCE AND REGULATION SECTIONS LAMC SEC Decision Where it is determined that the violation has not been corrected, the General Manager may make any of the following orders, as appropriate: (1) Order that the violation be referred to the City Attorney for prosecution. (2) Order a rent reduction (3) Order that the building or dwelling units be accepted into REAP. LAMC SEC C. Appeal of the General Manager Hearing Officer Decision. The property owner/landlord, any tenant or the Enforcement Agency may appeal to the RAC Appeals Board within ten calendar days after service of the General Manager Hearing Officer Decision, following the procedures set forth in Division 10 of Article 1 of Chapter XVI. If a General Manager Hearing Officer Decision to place a property into REAP is appealed, enforcement of REAP will be stayed until the appeal is final. An application fee required pursuant to Section may be waived by the Department in accordance with the standards and procedures set forth in Section C. REAP REG Appeals of General Manager s Decision to Appeals Board Section C. Hearing At the hearing, the Appeals Board review of the General Manager s decision will be limited to those alleged errors of law and/or abuse of discretion that occurred during the General Manager s hearing. The Board will not consider any evidence not presented at the General Manager s hearing unless it is newly discovered evidence which could not, with due diligence, have been discovered and produced at the General Manager s hearing. Matthew Holen, Senior Management Analyst Los Angeles Housing and Community Investment Department, Compliance 4

10 August 3, 2017 Rent Adjustment Commission 1200 West 7 th Street, 1 st Floor Los Angeles, CA APPEAL OF GENERAL MANAGER S DECISION Type of Case: REAP Rahmi Turkmen, Owner Property Address: 9040 N Ledge Ave., Sun Valley, CA Subject to RSO: Yes CCRIS Case Number: Number of Units in CCRIS System: 3 Notice of Acceptance into REAP: April 7, 2017 General Manager s Hearing: May 9, 2017 General Manager s Decision: June 6, 2017 INTRODUCTION This case is an appeal of a General Manager s Decision to affirm the Department s Decision to accept the subject property into the Rent Escrow Account Program (REAP). The appellant states that he requested his hearing be rescheduled to a different date because of a conflicting court date. He said he submitted evidence before the General Manager s hearing, but it was returned to him. ISSUE BEFORE THE APPEALS BOARD The issue before the Appeals Board is whether the General Manager s Hearing Officer erred in affirming the Department s decision to accept the building into the Rent Escrow Account Program (REAP). BACKGROUND On June 29, 2016, a SCEP inspection was conducted at the subject property. Violations were observed and a Notice and Order to Comply was issued on July 20, 2016 listing approximately 4 violations. On October 19, 2016, a re-inspection was conducted revealing the 4 violations remained outstanding. On April 7, 2017, the Department issued a Notice of General Manager s Hearing and Notice of Acceptance into REAP. On May 9, 2017, the General Manager s hearing was held. On June 6, 2017, a General Manager s decision was issued affirming placement into REAP. 3

11 CCRIS August 3, 2017 Page 2 Summary of General Manager s Hearing The General Manager s hearing was convened on May 9, Inspector Barry Craddolph appeared at the hearing and provided testimony. He stated that there are four remaining violations as of the last inspection for illegal construction, unapproved use, unapproved units, and ventilation. Inspector Craddolph stated that an accessory building has been converted to a dwelling unit and is currently occupied. No owner, owner representative, tenant, or tenant representative appeared at the hearing. At the hearing, the Hearing Officer noted that the owner had submitted a packet of documents before the hearing with a comment that he cannot attend the hearing because of a conflict with another case in court. The Hearing Officer stated that the documents were disorganized, unmarked, and absent a narrative that speaks to the relevance of the documents to this case. On June 6, 2017, a Decision was issued affirming the Department s decision to accept the building into REAP and ORDINANCE AND REGULATION SECTIONS LAMC SEC Decision Where it is determined that the violation has not been corrected, the General Manager may make any of the following orders, as appropriate: (1) Order that the violation be referred to the City Attorney for prosecution. (2) Order a rent reduction (3) Order that the building or dwelling units be accepted into REAP. LAMC SEC C. Appeal of the General Manager Hearing Officer Decision. The property owner/landlord, any tenant or the Enforcement Agency may appeal to the RAC Appeals Board within ten calendar days after service of the General Manager Hearing Officer Decision, following the procedures set forth in Division 10 of Article 1 of Chapter XVI. If a General Manager Hearing Officer Decision to place a property into REAP is appealed, enforcement of REAP will be stayed until the appeal is final. An application fee required pursuant to Section may be waived by the Department in accordance with the standards and procedures set forth in Section C. REAP REG Appeals of General Manager s Decision to Appeals Board Section C. Hearing At the hearing, the Appeals Board review of the General Manager s decision will be limited to those alleged errors of law and/or abuse of discretion that occurred during the General Manager s hearing. The Board will not consider any evidence not presented at the General Manager s hearing unless it is newly discovered evidence which could not, with due diligence, have been discovered and produced at the General Manager s hearing. Matthew Holen, Senior Management Analyst Los Angeles Housing and Community Investment Department, Compliance 4