Will my ADU fall under Los Angeles rent stabilization ordinance when built?

Note: This information pertains to properties in the City of Los Angeles.  For more information, please contact the RSO Determination Department, https://hcidla2.lacity.org/RSO-Overview.

 

 

Last week I was asked a very interesting question, "Is an ADU on a single-family residence subject to the Los Angeles Rent Stabilization Ordinance?"  The short answer to this is YES because the property moving from Single-Family Residence to Duplex or Triplex, the property is subject to rent stabilization ordinances.  Any future new development on that parcel will be rent-controlled units unless you do not develop on that property for 5 years after rent-controlled units are taken off the market.

We have created a flow chart, ADU RSO Flow Chart, to see if your property will fall under rent stabilization ordinances.

Will my ADU fall under rent stabilization ordinance when built

Disclaimer: I am not an attorney, please seek advice from a real estate attorney before moving forward.

Rental information found on LA County website, https://dcba.lacounty.gov/noevictions/, about eviction moratorium during the Covid-19 pandemic.

May 12, 2020 - Exempting multi-national and publicly traded companies from County's emergency tenant protection policies, more information can be found here, https://hahn.lacounty.gov/mnc_moratorium.

 

How does the temporary moratorium work?

Tenants must notify their landlord within 7 days after their rent is due, unless extenuating circumstances exist, that they are unable to pay due to a loss of income related to COVID-19. Tenants will have twelve (12) months following the end of the moratorium period to pay back any amount due.

How long will the temporary moratorium last?

The temporary moratorium is effective from March 4, 2020 through June 30, 2020, and may be extended by the Board of Supervisors on a month-to-month basis.

How do I know if I am in an unincorporated area of Los Angeles County?

To find out if a property is in an unincorporated area of Los Angeles County, visit the Los Angeles County Registrar-Recorder/County Clerk website https://lavote.net/apps/precinctsmaps and select “District Map Look Up By Address”.

Timeline of temporary eviction moratorium

On March 19, 2020, the Chair of the Los Angeles County Board of Supervisors enacted a temporary moratorium on residential and commercial evictions in the unincorporated areas of Los Angeles County in response to the Coronavirus (“COVID-19″) pandemic.

On April 14, 2020, the Board expanded the temporary moratorium to include all jurisdictions countywide unless they have already adopted their own moratoria and included Mobilehome parks who rent space to mobilehome owners. Tenants will have protection from evictions for the following reasons:

    • Nonpayment of rent, late charges, or any other fees. Landlords will not be able to evict a Tenant if the Tenant can show an inability to pay rent and/or related charges due to financial losses related to:
      • A presumed or confirmed diagnosis of COVID-19 or caring for a household or family member who is presumed or diagnosed with COVID-19;
      • Layoff, loss of hours, or other income reduction resulting from business closure or other economic or employer losses due to COVID-19;
      • Compliance with a recommendation from the County’s Health Officer to stay home, self-quarantine, or avoid congregation with others during the state of emergency;
      • Extraordinary out-of-pocket medical expenses related to diagnosis and testing for and/or treatment of COVID-19; or,
      • Child care needs arising from school closures related to COVID-19.
      • The state of emergency regarding COVID-19; or
      • Following government-recommended COVID-19 precautions.
    • No Fault eviction reason, unless necessary for health or safety reasons
    • COVID-19 related violations for temporarily housing unauthorized occupants or pets or causing a nuisance.

The temporary moratorium imposes a ban on evictions for all residential and commercial tenants in unincorporated Los Angeles County impacted by the COVID-19 crisis beginning March 4, 2020 through June 30, 2020. The Board will review and may extend the moratorium period on a month-to-month basis.

Timeline of Temporary Rent Freeze

On March 312020 the Los Angeles County Board of Supervisors issued an executive order placing a temporary rent freeze on rent stabilized units in the unincorporated areas of Los Angeles County in response to the COVID-19 pandemic.

The temporary rent freeze means that owners of rent-stabilized units in unincorporated Los Angeles County may not increase rent during the moratorium period.

Jonathan J. Lo - Esq

Jonathan J. Lo is a junior partner at the LO&LO LLP.  He joined the firm in 2009 and focuses on the areas of individual and corporate bankruptcy law and estate planning matters. He also has extensive experience in the areas of contract review, litigation, civil matters, and criminal defense.

Jonathan received his Bachelor of Arts in Economics from the University of California, San Diego and obtained his Juris Doctorate at Southwestern School of Law in Los Angeles. During law school, he served as a judicial extern for a federal bankruptcy judge in the United States Bankruptcy Court in Los Angeles, where he drafted memoranda analyzing legal issues and recommending outcomes in Chapter 11 and 7 bankruptcy matters. Jonathan was admitted to the California Bar in 2015 and was selected to the Top Attorney’s list by Pasadena Magazine in 2018 and 2019.

 

 

Real Estate Attorney Lo & Lo. LP

Continue Reading

Learn More About Jonathan Lo

1. Where did you grow up?  What do you recall about the city growing up? 

I grew up in San Marino and attended the San Marino school system, graduating in 2004.  Great area to grow up in with good education, deep traditions, friendly people, and a safe neighborhood.  Basically, no worries as a kid!

2. Why did you pick to have your office in Alhambra?

My father started the practice in 1981 as a solo practitioner.  His first office was in Monterey Park, then he moved the office to Alhambra location in the early 90’s.  I believe he chose to move his office to Alhambra mainly because it its convenient proximity to San Marino, where we lived.

3. What are some of your favorite restaurants in the SGV?

I have a few favorite restaurants from Pharos, Pepe’s, The Hat, B-Mans, Golden Deli, and Savoy Kitchen (Hainan Chicken).  All these restaurants are just delicious, nom nom!

4. What drew you into become a lawyer?

It kind of just grew on me.  When I was middle in school my dream was to be a pro golfer.  Later on in college, I became interested in doing international business in Asia.  While studying Economics at University of California San Diego, and I went to study abroad in Shanghai for half a year.  During my time abroad I realized that conducting business requires a certain lifestyle to be successful, which I just didn’t see for myself.  So, I came back to work under my father to pass the time.  The more I did, the more people I helped, the more fulfilled I was. I decided to sign up for law school and the rest is history. The exciting part of being a lawyer is that I get to represent and learn from the very businessmen that I was aspired to be.

IMG_6408 2

 

Tel: 626-289-8838
Email: jlo@lolollp.com
Website: www.lolollp.com.com

Address: 506 N. Garfield Ave, Suite 280
Alhambra, Ca 91801

5. Who can benefit the most from your services?

Individuals and business owners who need guidance during a business or real estate transactions and legal representation if a dispute has already arisen. We also help families and individuals who need estate planning services such as a living trust, durable power of attorneys, and advanced healthcare directives. And finally, bankruptcy services to help Individuals and businesses that are overwhelmed with debt and struggling to make ends meet.

6. What can we do to protect ourselves when purchasing real estate?

Be diligent and informed of the buying and selling process to avoid misunderstandings and disputes.  Retain the services of a real estate agent or an attorney to help you every step of the way.  Get every offer, counter offer, agreement, modification, and addendum in writing because the Statutes of Frauds theory requires real estate contracts to be written and signed by all parties in order to be considered binding and enforceable.  Reason being these are types of contracts that are most susceptible to fraud.

7. How can people avoid or prevent lawsuits during a real estate transaction? 

The standard CAR (California Association of Realtor) forms include a mediation and arbitration clause whereby it states that if any disputes arise the parties can agree to mediate the matter with a neutral third party.  If that process is unsuccessful, the parties then can take it to an arbitration proceeding. Arbitration is a private process where disputing parties agree that the arbiter, usually a retired judge, can make a decision about the dispute after receiving evidence and hearing arguments.  If you want to avoid costly litigation, in case a dispute arises, in a transaction it would be wise to agree to the Alternative Dispute Resolution (ADR) processes.

8. Do you have any horror stories that you can share with us?   

Two people got together to purchase a house, a foreigner cash buyer and a local real estate broker.  They verbally agreed they would split the property 50/50. As time went on disputes arose as to the amount each contributed and ownership of the property.  Essentially, the partner that provided cash believed she owned a lot more than just 50%.  The problem here was, they did not enter into a partnership agreement spelling out the terms of the arrangement.  Everything was verbal and based on trust.  Lawsuit ensued, and after 2 years of litigation the case was settled.  Fees and time were wasted, when they could have avoided all this with a partnership agreement.

9. Any new laws in the area of real estate we should know about?

SB 330: This law that makes it more difficult for

local authorities to disapprove housing development. Not only by forcing local authority to provide specific and substantial evidence that the development would be inconsistent with pre-existing zoning, but also requiring local authorities to approve or disapprove the development with stricter timeline.

AB 881: Makes it easier for people to create ADUs (Assessor Dwelling Units).  ADUs can be a new or converted garage, storage area, or structure. The law prohibits local agencies from requiring parking that is offsets from the loss of the garage.

AB 1482: Just passed a state wide rent control that imposes a maximum of 5% rent increase per year, not necessarily only rent control areas.  Alhambra for example was not under rent control, but now landlords can only increase rent by 5% per year with some exceptions of course for buildings 15 years or newer.  Evictions now require a 90 day notice with “just cause” to evict.

10. Message to the people?

When making a major decision whether it is starting a business or buying real property do your research, ask experienced individuals, get everything in writing. If you have any doubts, consultant an attorney. Contact us, if you have any law related questions. Don't forgot to mention "SGV HOUSING" for a free consultation.

James Chu - CPA

James Chu earned his BA at University of California, San Diego and furthered his education earning his Master of Accounting at University of Southern California. He then started his accounting career at McGladrey & Pullen as an auditor. Throughout his career, James has worked at SEC companies such as Corinthian Colleges and Toyota Motor Sales.

Today, James helps business owners and personal clients exceed their business objectives by utilizing corporate tax havens and improving the accounting process.

 

 

Continue Reading

Learn More About James and Walnut

1. Where did you grow up?  What do you recall about the city growing up? 

I grew up In Temple City and San Marino. Both cities were more simple back then. Now both cities are more developed with a lot more retail shops and restaurants. Before you had to drive all the way down to Alhambra area to eat at restaurants but now all you just need to drive about a mile a way and there are a bunch of selections for food.

2. Why did you pick to have your office in Walnut?

After college, my parents moved to Rowland Heights district. After following them around the area, I realized that I really like the City of Walnut. So, I decided to open my business there.

3. What are some of your favorite restaurants in the SGV?

I don't want to sound cliché but you can't beat Ding Tai Fung. I know that SGV has tons of options in terms of food. However, there is a reason why Ding Tai Fung is so popular, right? To tell you the truth eating there reminds of Taiwan, which is why i like it so much.

4. What drew you into become a CPA?

At UCSD, I took the only accounting course they offered and it fully captured my attention. I found out that I really enjoyed learning financial statements which can portray the health of a company.  Before I couldn't make sense on what I was reading (balance sheet + Profit and Loss Statements) but after taking the course it got me more interested. it sparked my interest to learn more.

San Gabriel Valley Small Business Owner CPA

Free Consultation Mention Sgv Housing

626.986.8863
Jchu@jameskchucpa.com
www.jameskchucpa.com

20264 Carrey Rd.
Walnut Ca, 91789

6. Who can benefit the most from your services?

All my customers liked the fact that I respond very quickly to their questions. Most of the complaints they had from their previous CPA was the fact that they never get to talk to the person. Instead they always talk with their assistants. The people can that benefit the most from my services are people that would rather have that one on one experience with the expert, rather a machine or an assistant.

7. What kind of taxes do you specialize in?  Are you familiar will real estate taxes?

To be honest, taxes doesn't require much specialization as when it comes down to details, financial statements bear the same information at the end of the day.  Real estate taxes are pretty common so I am familiar with it.

8. What are the taxes benefits of owning real estate? 

The main benefits of owning real estate is that you can save taxes thru itemized deduction of your taxes. However in 2018 after Trump's Tax Act , he did limit state and local taxes to a cap of $10,000 which hurt many homeowners who pay high state taxes from their wages and property taxes.If you want to know more , please get in contact with me.

9. Any new laws that you think are note worthy?   

The newest tax law that promote incorporation is the new Section 199A which provides a 20% deduction from pass thru entities.  I think thats a good law to help many businesses lower their tax burden.

10. Message to the people? 

Don't forget to pay your taxes on 4/15.Don't forget to mention SGV Housing to a free consultation!.

Property Details

1728 Bonnie Cove Ave

Glendora, CA 91740

Bonnie Cove Ave & Claraday St

Apartment Development

Information

Steve Eide Design Group

Private

Property Details

4,032 SF

25 FT

4 Units

2 Car Garage, 2 Guest Parking

Description

The corner of Bonnie Cove Ave and Claraday St will be the location of a new 4 unit townhome development.  Architect Steve Eide Design Group has designed 3 and 4 bedroom townhomes ranging from 1454 to 1657 SF.  Each unit will come with a private 2 car garage, backyard, and deck.

This is a very interesting project because of the zoning of the lot and location.  The zoning allows for higher density, however, the owners have decided to reduce the amount to 4 units.  As for the location, the lot is conveniently to retail stores such as CVS, subway, In-N-Out, and more.