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Ellis Act Information

SUMMARY OF ELLIS PROVISIONS OF THE RENT STABILIZATION ORDINANCE

California Government Code Section 7060 et seq., commonly known as the Ellis Act, establishes the right of landlords to withdraw existing housing accommodations, other than guestrooms or efficiency units within a residential hotel, from rent or lease. The Ellis Act does, however, allow local jurisdictions to adopt certain regulations controlling the withdrawal process, the return of withdrawn units to the rental market including penalties for return within two years, and the transfer of these constraints to successors in interest. The City of Beverly Hills (the City) has adopted regulations implanting certain Ellis Act provisions into the Rent Stabilization Ordinance (RSO) which are codified in Sections 4-5-513 and 4-6-6L of the Beverly Hills Municipal Code. The key provisions of these regulations are summarized below.


A. Withdrawal Process

• Call (310) 285-1031 to schedule an appointment for application submission.


• Landlords must file a Notice of Intent to Withdraw Units from Rental Housing Use (Notice of
Intent) with the Rent Stabilization Division. Appointments are encouraged for submission.


• Landlords must record a memorandum with the County Recorder summarizing the
non-confidential provisions of the Notice of Intent and provide the City's Rent
Stabilization Division with a copy of the recorded memorandum at the time the Notice of
Intent is filed.


• Landlords must serve each tenant with a Notice to Tenant of Pending Withdrawal (Form E3) and
the Notice to Landlord of Interest in Renewing Tenancy (Form E4) within five days of filing the
Notice of Intent. The notice to tenants must include an advisement on specific tenant
rights.


• All tenants being evicted under an Ellis Act withdrawal are entitled to a
minimum of 120 days notice from the date the Notice of Intent was filed with the City.
• Senior (62+) and disabled tenants are entitled to an extension of their tenancies up to 1
year, provided they notify their landlord within 60 days of the filing date of the
Notice of Intent.


• Landlords may elect to extend the tenancies of other tenants up to 1 year.


• Extended tenancies must continue under the same terms and conditions as existed on the
filing date of the Notice of Intent.


• Tenants are entitled to relocation assistance payment from their landlord.


B. Relocation Assistance Fees


• The landlord shall pay the relocation fees to the tenants at the time he or
she vacates the unit in compliance with BHMC §§4-5-602 & 4-6-9.


• The landlord may elect to pay the relocation fees directly to the tenant or through an escrow
account.


C. Return of Withdrawn Units to the Rental Market (Re-Rental)


• If the landlord intends to re-rent the withdrawn units, a Notice of Intention to
Re-Rent Withdrawn Accommodations must be filed with the Rent Stabilization Division. The landlord
may not rent or lease any such unit, except to a tenant displaced from that unit, for a period of
30 days following the filing of that notice.


• Displaced tenants have a right of first refusal on the unit from which they were displaced
for a period of 10 years after the withdrawal of that unit from the market.


• If the units are offered for rent the accommodations shall be offered and rented or leased at
the lawful rent in effect at the time any Notice of Intent to Withdraw was filed, plus annual                                  adjustments available under BHMC §§4-5-303 & 4-6-3.


• Additionally, landlords who return accommodations for rent or lease within two years of the
date of the withdrawal from the market must first offer the unit, via
registered or certified mail, to the tenant or tenants displaced by the withdrawal,
provided that the tenant or tenants advised the landlord, within 30 days of their displacement,
of their desire to consider an offer to renew their tenancy.


• If a withdrawn rental unit is returned to the market within two years of the
date of withdrawal, the landlord is liable through a civil action for both actual and
exemplary damages to any tenant displaced from that unit. In addition, the City may also instate
civil proceedings for exemplary damages.


CI. Successors in Interest


• The constraints pertaining to the return of withdrawn units to the rental market apply to any
successor in interest, provided that the Notice is recorded with the County Recorder.


CII. Rental of Replacement Units (New Construction)


• If a building containing a rental unit was the subject of a Notice of Intent
to Withdraw is demolished and rental units are constructed on the same property and
offered for rent or lease within five years of the date the rental unit that was the subject of
the Notice of Intent to Withdraw was withdrawn from rent or lease, the owner may establish the
initial rental rate for the newly constructed rental units. The provisions of the RSO shall apply
to the newly constructed rental units.

 

For further information regarding the Ellis Act, please click here:  Ellis Act Information

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