Panel passes law on fees to renters

After a flurry of last-minute negotiations, the Los Angeles City Council on Wednesday approved the doubling and tripling of relocation fees that developers must pay to tenants who are evicted when their units are converted to condominiums.

If the ordinance is signed by Mayor Antonio Villaraigosa, as expected, tenants who are notified that they are being evicted on or after April 11 would be eligible to receive the fees.

The move comes as part of a much broader concern in City Hall over the city’s housing policy, or lack thereof. Even those on the council who supported the new fees said they do little to address the larger issue: the city’s dearth of affordable housing.

The council was one vote shy of final approval of the new fees last week. The vote Wednesday, however, received unanimous support after several provisions were added or changed.

Most notably, tenants who have lived in their units for at least three years are eligible to receive over $2,200 more than they would have under the plan tentatively approved by the council last week, when the occupancy requirement was five years.

The new relocation fees apply to all apartment dwellers, regardless of whether their units are rent-controlled. It is the first significant increase in the fees since 2004.

Currently, a landlord must pay $3,450 to most tenants and $8,550 to those who are 62 or over, disabled or have minor children.

The new fee structure is:

* $6,810 to tenants who have lived in their apartments less than three years (or $14,850 for those older, disabled or with minor children).

* $9,040 to tenants who have lived in their apartments more than three years (or $17,080 for those older, disabled or with minor children).

* $9,040 to tenants whose income is 80% or below the area’s median income, which is $55,450 for a family of four. ($17,080 if the tenants are also older, disabled or with minor children).

Councilman Herb Wesson, chairman of the council’s housing committee, has been pushing for the new fees for several months. In particular, he supported linking the fees to length of tenancy and to income, also known as means testing.

Several council members expressed doubts about the means-testing aspect of the plan. They say it will lead to landlord-tenant disputes that will be difficult for the city to resolve and could lead to landlords discriminating against prospective renters to avoid paying higher relocation fees.

“We want a simple system that works,” Councilwoman Wendy Greuel said.

Wesson deftly put pressure on his colleagues, citing urgency.

“If we do not vote yes, individuals that receive notice from today to next week will not be able to take advantage of the increased benefits,” Wesson said.

One key part of the ordinance approved Wednesday is that the means-testing component will expire July 1, 2008, unless the council reauthorizes it. If not, the fees will become $9,040 for all tenants who are evicted and $17,080 to qualified tenants who are 62, disabled or have minor children.

That, in essence, would duplicate the recommendations of the city Planning Commission.

Housing activists welcomed the new fees, citing the difficulty that many rent-control tenants have in finding new affordable units. The activists hope the council adopts another ordinance that would allow the city to deny demolition permits to building owners.

Developers and owners don’t like the up to $2,300 in other fees they must pay per unit to help boost the city’s affordable housing trust fund and provide oversight for the program.

steve.hymon@latimes.com