SEC. 153.05. REFERRAL OF PROPERTY.

(Added by Ord. No. 171,074, Eff. 6/23/96.)

A. General Manager Determination. (Amended by Ord. No. 173,810, Eff. 4/16/ 01.) The burden is on the tenant to prove that a habitability violation exists, except that where an Order has been issued to correct the violation, the burden is on the landlord to show that the violation never existed, is the fault of the tenant, or has been corrected. If after consideration of the facts presented at the hearing, the General Manager determines that a habitability violation exists, the General Manager will be authorized to issue a rent reduction and a temporary diversion of rents into REAP. The amount of the rent reduction will be based on a schedule approved by the Rent Adjustment Commission.

B. Hearing Procedures. (Amended by Ord. No. 173,810, Eff. 4/16/01.) To the extent feasible, the Department shall follow procedures and make findings in conformance with Article 1 of Chapter XVI of the Los Angeles Municipal Code.

C. Appeals. (Amended by Ord. No. 173,810, Eff. 4/16/01.) The landlord may appeal a decision to reduce the rent or accept the property into REAP to the Appeals Board following the procedures set forth in Division 10 of Article 1 of Chapter XVI of this Code.

D. Additional Procedures. (Amended by Ord. No. 173,810, Eff. 4/16/01.) Should the General Manager order the property accepted into REAP, a rent escrow account will be established. The affected tenants will be notified of their right to pay their monthly rent, minus the approved rent reduction, into the REAP account. Additionally, they will be advised that payment into REAP provides an affirmative defense against eviction by the landlord for non- payment of rent.

Upon placement of the property into REAP, the Department may make a determination of the estimated cost to repair the habitability violation. At any time prior to the accumulation of funds in the escrow account, which equals the estimated repair cost, the landlord may submit evidence that the repair has been made and request reimbursement from the escrow account. These funds shall be released to the landlord, minus fees associated with the administration of the escrow account. However, if the landlord does not effect the repairs prior to the accumulation of the repair amount, the tenant may make the repairs with the funds held in the escrow account. Once the repairs have been made and all administrative costs have been collected, the rent escrow account will be closed.

Additional payments may be made from the escrow account following the procedures set forth in Section 162.07 B.

E. Exceptions. (Added by Ord. No. 173,810, Eff. 4/16/01.)

1. No rent reduction or action to include the property into REAP will be imposed or initiated for a temporary reduction or elimination of the services, listed under the Habitability Violation definition above, if the landlord can demonstrate that the reduction or elimination was necessary for the repair, replacement or upgrade of the elevator, security gate or air conditioning unit and the repair, upgrade or replacement was completed within a reasonable period of time taking into account all relevant factors.

2. No rent reduction or action to include the property into REAP will be imposed or initiated if the service reduction or elimination was not within the reasonable control of the landlord to remedy within 20 days of the landlord’s receipt of written notice from a tenant of the problem. No rent reduction or REAP action shall be ordered until such time as the service reduction that was the subject of the complaint was within the reasonable control of the landlord to make repairs, or, with respect to underground parking gates only, within 60 days of the landlord’s receipt from the tenant of written notice of the problem.