**PRESS RELEASE**
COUNCILMEMBER BLUMENFIELD LEADS EFFORT TO HELP STRUGGLING 'MOM AND POP' HOUSING PROVIDERS WITH NEW RELIEF PACKAGE
Measure seeks funding to provide direct aid to small property owners.
LOS ANGELES, CA – As the COVID-19 Declared Local Emergency sunsets, Councilmember Bob Blumenfield introduced legislation today to create the Small Housing Provider Assistance Program, offering at least $10 million in financial relief for ‘mom and pop’ housing providers in Los Angeles. Small property owners have faced years of financial uncertainty, often with tremendous debt, and personal hardship balancing the need to keep vulnerable tenants housed throughout the COVID-19 pandemic, and paying the bills to maintain their property.
“Practically every day my staff and I hear from local property owners who have struggled over the past few years. Almost all shared stories of trying to help tenants while not knowing how to cover the costs of their building– they need our help,” said Councilmember Bob Blumenfield.
Co-presented by Councilmembers Monica Rodriguez, Traci Park, Tim McOsker, and seconded by John Lee, this program is needed to help keep these properties in the hands of Angelenos, rather than be sold off to large property management companies. There is much importance in preserving housing held by small “mom and pop” property owners, meaning someone who owns four or less units. First-generation Angelenos and immigrant families often see property ownership as a pathway to grow inter-generational wealth and as an aid in closing the racial wealth gap by disrupting intergenerational cycles of poverty.
“Non-corporate landlords should not bear the weight and financial burden of our housing crisis as we seek to stave off a spike of evictions derived from the economic recovery from COVID-19,” said Councilwoman Monica Rodriguez. “We must protect our mom and pop landlords, who are critical housing providers and can't risk greater transfers of generational wealth to corporate interests.”
“Today, I joined my colleagues to introduce a motion to assist mom and pop housing providers,” said Councilwoman Traci Park. “We have a responsibility to support our small landlords and their tenants. My actions today underscores my commitment to these housing providers, recognizing the vital contribution they make in housing our communities.”
“As we transition out of our pandemic-era housing policies, we must take a balanced approach and do right by both mom-and-pop housing providers and renters,” said Councilmember Tim McOsker. “We need to support all pathways for residents in this city to secure housing and grow intergenerational wealth. We can do so by protecting financial security and building up our housing inventory.”
“The eviction moratorium placed an inordinate burden on small mom and pop landlords forcing many of them into precarious financial situations and personal hardships over the course of the last three years,” said Councilmember John Lee. “I have been a proud advocate for small mom and pop landlords who provide critical housing stock for the City. I am in full support of establishing a Small Housing Provider Assistance Program to help alleviate some of the hardships these landlords currently face.“
This legislation follows sweeping new laws aimed at protecting tenants but few have offered direct help for small property owners. The City Council recently passed Just Cause eviction protection, providing tenants living in the over 1 million rental units in the City with significant expansions to renter protections. Over $1.6 billion in rental assistance were provided to City of Los Angeles renters through the City’s Emergency Rental Assistance Program and the California Housing is Key program.
Coupled with rental assistance, the City has allocated $27.6 million to Eviction Defense Programs providing funding to legal service providers and community outreach nonprofits to provide a combination of full representation and services for tenants threatened with eviction. Through this program, in partnership with the Stay Housed LA, approximately 340,000 City renters have been kept informed, 300 community education events have been hosted, over 3,000 tenants received assistance in navigating rental assistance, and 3,500 City tenants received representation in eviction cases, resulting in 70% of tenants remaining in their homes.
The City must do more to assist "mom and pop" housing providers who have faced years of financial uncertainty, tremendous debt, and personal hardship with keeping vulnerable tenants housed throughout the COVID-19 pandemic. While CF 21-0042-S3 instructs the Los Angeles Housing Department (LAHD), with the assistance of the City Administrative Officer (CAO), the Economic and Workforce Development Department and others to report back within 30 days with recommendations for the establishment of a new relief assistance program for “mom and pop” landlords, the City must act with urgency and commit to establishing a rental debt assistance fund to providers in this City who otherwise may never recover lost rental income, could resort to selling property to corporations, or may lose property to foreclosures for their own unpaid mortgages.
This motion specifically instructs the LAHD, with the assistance of the CAO and the City Legislative Analyst (CLA), to establish a Small Landlord Assistance Program of at least $10 million to provide payment directly to landlords who incurred debt due to rental arrears during the course of the pandemic, as well as report back on recommendations on the program parameters. It asks that the program factor in the preservation of housing stock and the prevention of desperation sales of housing to corporations. It also calls on City departments to identify funding within SB 2, Linkage Fee and other federal and state sources of funds for the preservation and/or acquisition of housing at-risk of sale or foreclosure, and for rental debt relief.
###