On December 11, 2012, the Los Angeles City Council unanimously voted to extend the City's Foreclosure Eviction Ordinance to protect tenants living in rental properties not subject to the City's Rent Stabilization Ordinance (RSO) from eviction on the grounds of foreclosure for another year. This Ordinance prohibits lenders from evicting any tenants in the City merely because of foreclosure on their landlords. Tenants living in rent controlled units have had these protections.
Multi-family rental units built after 1978 and all single-family home rentals are not subject to the City's rent control law.
The Foreclosure Eviction Ordinance was originally passed in December 17, 2008 and extended every year since in response to a national crisis that has not subsided.
Testifying before the LA City Council in support of the extension, Coalition for Economic Survival Executive Director Larry Gross stated, "The foreclosure crisis and its impact on hardworking Americans is a national disgrace. It's especially unjust for the forgotten victims -- tenants.
They've done nothing wrong. Paid their rent on time. But, suddenly these heartless banks want to evict them simply because they're living in foreclosed rental property.
|Council Member Eric Garcetti, author of the Foreclosure Eviction Ordinance, states the case of why this crucial law needs to be extended another year.
City Council Member Eric Garcetti who has been the main supporter and author of the ordinance 4 years ago, at Gross’ suggestion, agreed to add a provision to the motion for the City to study the possibility of making the law permanent and, thus, avoid having to renew it each year.
Since 2007, approximately 53,000 properties have been subject to foreclosure. Census data establishes that renters occupy 25% of single-family homes in the City.
Data for 2012 indicates that the foreclosure crisis has not abated since the Council adopted the Foreclosure Eviction Ordinance. Approximately 7,400 properties have been subject to foreclosure in during the first nine months of 2012.
Foreclosures also continue to occur in primarily lower-income neighborhoods where evicted tenants of foreclosed properties cannot afford unnecessary relocation costs.