LOS ANGELES, CA – The Board of Supervisors today approved a motion authored by Los Angeles County Supervisor Hilda L. Solis, and co-authored by Supervisor Sheila Kuehl, that seeks to hold corporate landlords accountable by requiring the disclosure of beneficial ownership and providing the public transparent data on ownership schemes when properties are sold, transferred or purchased.
“Previous economic downturns, including the Great Recession, have contributed to the current housing crisis and control of residential property in Los Angeles County,” said Supervisor Solis. “During the last recession, we witnessed the transfer of wealth out of low-income communities of color to the ownership of corporate investors which contributed to increased evictions, gentrification, and loss of affordable housing. Now, with the added economic pressures caused by the COVID-19 pandemic, the situation is becoming even more dire for rent-burdened households. To that end, it is critical that we act to put in place the strongest protections moving forward to help our most vulnerable, low-income tenants.”
“We know there has been a significant increase in institutional investing in residential real estate in recent years,” said Supervisor Kuehl. “This motion will provide us with better data so that we can distinguish between corporate investors and mom and pop landlords as we develop safeguards for renters at risk of losing their homes and address our affordable housing crisis.”
The motion directs the Acting County Counsel in consultation and collaboration with the Acting Chief Executive Officer, Registrar-Recorder/County Clerk, the Treasurer and Tax Collector, the Department of Consumer and Business Affairs, and other relevant County Departments to report back with an analysis of current laws and regulations, legislative recommendations, funding, and legal options regarding the following: requiring the disclosure of beneficial ownership of Limited Liability Companies, Corporations, and Limited Partnerships purchasing residential real estate within the unincorporated areas of the County; potential regulation for “flippers” or speculators who sell a non-owner-occupied residential property shortly after purchase within the unincorporated areas of the County; and enhancements of the County’s ordinances, policies, and procedures to provide additional protections to tenants who are subjected to such predatory practices by corporate landlords.
The motion also requests for the Assessor, in consultation and collaboration with other relevant County Departments, to report back with a breakdown of the residential units currently owned by Limited Liability Companies, Corporations, and Limited Partnerships within the unincorporated areas of the County.
CONTACT: Kimberly Ortega, Acting Communications Director, (213) 361-6435 or KOrtega@bos.lacounty.gov