Landlords Have Until Oct. 31 To Apply for the Program
The city of Los Angeles is offering some funding to small multifamily landlords that are struggling with tenants not paying rent. (Getty Images)
By Jack Witthaus CoStar News October 24, 2023 | 12:47 P.M.
The city of Los Angeles is offering money generated from a new property transfer tax — largely aimed at combating homelessness — to struggling apartment owners. Los Angeles landlords that own 12 units or less with low-income tenants at risk of homelessness are eligible, the city said in a statement.
The Emergency Renters Assistance Program can cover six months of unpaid rent at maximum. Landlords are required to submit certain documents in order to apply, including proof of property ownership, a completed W-9 tax form, and proof of tenants’ current monthly and past due rent. “We must continue to do all that we can to prevent Angelenos from falling into homelessness and that includes supporting small landlords and housing providers,” Mayor Karen Bass said in the statement. “We will continue to do all we can to ensure that a wave of evictions does not hit our city.” Landlords must apply by 6 p.m. Oct. 31. More details can be found at a Los Angeles Housing Department website.
The program is funded through Measure ULA, often called the "mansion tax." Since April, this 4% tax has been levied on nearly all commercial and residential property sales or ownership transfers above $5 million in Los Angeles, while a 5.5% levy is charged on properties selling or transferring above $10 million. Before April, each of those taxes was 0.45%.
The new transfer tax collected $82 million through 144 transactions as of August, Public Information Officer Sharon Sandow said in an email to CoStar News.
Other cities are interested in pursuing a transfer tax. In Chicago, the new mayor said in August he supported a revised proposal that aims to combat homelessness.