The Weekly Newspaper of El Segundo
Herald Publications - El Segundo, Hawthorne, Lawndale & Inglewood Community Newspapers Since 1911 - (310) 322-1830 - Vol. 108, No. 50 - December 12, 2019
Inside
This Issue
Calendar of Events.............3
Certified & Licensed
Professionals.....................10
Classifieds............................4
Community Briefs...............2
Crossword/Sudoku.............4
Holiday Mixer......................2
Legals.............................. 6,10
Real Estate..................7-9,12
Sports.................................5,6
Spotlight................................3
Weekend
Forecast
Another Magnificent Holiday
Parade Brings Joy to El Segundo
This year’s Holiday Parade, the 56th annual event, was another resounding success with fabulous floats and scintillating sights. Best friends Logan, Connor, Hunter, Remy, Rocket and Oliver waiting patiently
for the parade to start. See next week’s issue for more photos. Photo by Gregg McMullin.
Council Passes Urgency Ordinance
to Compensate Unjustly Evicted
By Brian Simon
The plight of local residents subjected to
last-minute tenant evictions without just cause
or massive rent increases in advance of new
state legislation going into effect on Jan. 1
prompted the El Segundo City Council to
hold a special meeting on Friday, Dec. 6 to
address the matter and consider adopting an
urgency ordinance to protect those citizens
through the end of 2019. Several dozen
other municipalities recently passed urgency
ordinances to help residents in the interim
period through the end of December.
The Council, by a 4-1 vote (with Don Brann
dissenting) ultimately did not take action to
prohibit such evictions – but instead adopted
an urgency ordinance for property owners to
provide one month’s rent as compensation
to those served with eviction notices without
just cause on or after Oct. 8, 2019. The ordinance
only applies to those currently still in
their residences who have yet to leave their
units. The October date was when Governor
Newsom signed AB1482, an Assembly bill
that kicks in on Jan. 1 and caps rent increases
statewide while also prohibiting evictions
without just cause. However the new law
resulted in unintended consequences, with
many property owners rushing to evict low-rent
tenants to beat the deadline. The Council’s
compromise ordinance looks to provide
some financial protections for tenants served
with undeserved eviction notices after that
date while also not hamstringing landlords
looking to get their rents up to market rates
before it’s too late.
El Segundo-based property manager Neil
Cadman told the Council that AB1482 puts
a cap on annual rent increases at 5 percent,
plus no more than a 3.3 percent cost of living
adjustment, or 8.3 percent max per year. He
noted that except for a couple of cases, he
has not raised any of his own tenants to that
degree -- as the amount is fairly substantial.
He went on to explain that the 8.3 percent
cap is also retroactive to March 15, 2019.
So if property owners have raised rents by
more than that amount since that date, they
will have to reduce the increase after Jan. 1
to comply with the 8.3 percent cap. Before
AB1482, landlords could hike rents as much
as they wished, Cadman pointed out. The new
law doesn’t apply to single-family homes,
but does to duplexes and larger residential
complexes. The legislation has a sunset
clause after 10 years. The eviction provision
covers tenants who have lived in their units
continuously for at least 12 months.
The state law prompted a late movement
to evict tenants paying below-market rates
so that landlords have a chance to reset and
recoup property value (through procuring
new, higher-dollar leases) before the rent
control kicks in. Cadman described himself
as an investor in for the long haul looking
to maintain cash flow. But another sort of
investor may come in to “turn” or “flip” a
building by buying a property and jacking
up the previously lower rents.
The no-cause eviction provision of AB1482
only allows a landlord to kick out tenants
in clear violation – e.g. they don’t pay their
rent, cause destruction to the property, or
are a nuisance. It’s unclear if major property
renovations are just cause to evict, City Attorney
Mark Hensley said. He added that a
landlord and tenant could strike a private deal
where the former offers a sum of money to
the latter to voluntarily leave. “If the tenant
doesn’t want the money, they are protected,”
Cadman said.
Councilmember Scot Nicol expressed concern
about larger rents changing the make-up
of the community with “institutional money
coming in.” Cadman admitted that a landlord
would usually prefer to rent to a wealthy
single professional with great credit than a
family that makes less money and uses more
utilities. He added that El Segundo currently
has a “lot of for-rent” signs in town since
many property owners have already raised
rents and driven people out.
Nicol spoke of a case of a local woman
who moved out of her place after getting
notice of a $500 rent increase. Though not
technically so, he described this as a “form
of eviction.” Despite wishing to protect
such residents, Nicol also emphasized that
he doesn’t wish to handcuff mom and pop
property owners who have a last chance to
get back to market rate before AB1482 takes
effect. He described himself as “conflicted”
– not wanting to see people forced out of
their homes during the holidays, but also
sympathizing with landlords who receive
rents 30 percent below market value and
won’t be able to raise the monthly amount
enough over time to catch up.
The Council’s first motion was to prohibit
evictions without just cause through Dec. 31
for residential properties built before Jan. 1,
2005 (in alignment with the state). There was
discussion to roll back the date the ordinance
See City Council, page 4
Friday
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