City of Los Angeles has approximately 14,000 apartments that were built prior to 1978 and are required to reinforce the structure. Building Owners have been sent out orders to comply since 2016. They must inform tenants and prospective tenants in writing that their building falls under the scope of the ordinance (Section 91.93071 of Ordinance 183893).
The building owner has up to 2 years from receipt of order to submit proof of previous retrofit or plans to retrofit or demolish. Within 3 ½ years of receipt or order, the building owner needs to obtain permit to start construction or demolition. Within 7 years of receipt of order, the work needs to be completed.
The building owner can pass 50% of retrofit costs, with City approval, to the tenants divided among all units. However, the maximum increase in rent is $38/month for 10 years. The term can be extended. To qualify, the application for the rent surcharge must be submitted within 12months of completing the retrofit.
The Building owner can also borrow money for the retrofit through a program called PACE (Property Assessed Clean Energy) Financing and the spread the cost over a certain period and pay through property tax assessment.
For additional questions, please call Peter Paik at 213-923-0227.