SEC. 164.06. INSPECTION REQUIREMENTS.

(Amended by Ord. No. 187,627, Eff. 10/24/22.)

A. Inspection by Beneficiary or Trustee.

1. Any beneficiary and/or trustee who holds a deed of trust on a property in foreclosure shall perform an inspection of the property that is the security for the deed of trust, upon default by the trustor, prior to recording a notice of default with the Los Angeles County Recorder’s Office.

2. A property with a recorded notice of default shall be inspected by the beneficiary and/or trustee monthly until the trustor or other party remedies the default, or until the foreclosure process is complete. The beneficiary and/ or trustee shall provide monthly reports to LAHD that record the date of the monthly inspection and the condition of the property as observed during that inspection, and shall do so in writing upon the form(s) provided by LAHD that have been approved by the General Manager.

3. Once the foreclosure process is complete, if the beneficiary or trustee takes title to the property, the beneficiary or trustee shall continue to inspect the property monthly and provide monthly reports to LAHD that record the date of the monthly inspection and the condition of the property as observed during that inspection, and shall do so in writing upon the form(s) provided by LAHD that have been approved by the General Manager.

4. Failure to satisfy the inspection and reporting requirements of this section shall result in the imposition of penalties under Section 164.09 of this article.

B. Inspection by the Los Angeles Department of Building and Safety.

1. The Department of Building and Safety shall inspect the exterior of all foreclosed single-family residential properties and vacant multi-family properties that are registered pursuant to this article. For purposes of this subsection and only as applicable to the Los Angeles Department of Building and Safety, “inspection” means a physical investigation to verify that the property is free from graffiti, debris, rubbish, garbage, trash, overgrown vegetation or other similar material, and is being maintained in a clean and sanitary condition.

2. When a registered single-family residential or vacant multi-family property’s status changes to foreclosed, the beneficiary or trustee who acquired the property shall pay a proactive inspection fee in the amount of $356. Failure to pay the inspection fee at the time the property’s status is changed to reflect foreclosed on the registry, or at the time a foreclosed property is registered if it was not registered upon default, will result in penalties pursuant to Section 164.09 of this article.

oreclosed, the beneficiary or trustee who acquired the property shall pay a proactive inspection fee in the amount of $356. Failure to pay the inspection fee at the time the property’s status is changed to reflect foreclosed on the registry, or at the time a foreclosed property is registered if it was not registered upon default, will result in penalties pursuant to Section 164.09 of this article.

C. Inspection by the Los Angeles Housing Department. The Los Angeles Housing Department shall inspect all foreclosed occupied multi-family residential properties that are registered pursuant to this article and may inspect any other foreclosed occupied multi-family residential property that is required to be registered pursuant to this article. The Department’s inspection shall be conducted consistent with and pursuant to the standards and procedures provided in Article 1 of Chapter XVI of this Code.