This article was posted on Monday, Jul 30, 2012

Failure of Leadership in the Rent Stabilization Revision
By Michael Millman, Esq.
Below is an open letter sent to Mayor Villaraigosa.

Dear Mayor Villaraigosa:

Approximately six years ago, the L.A. City Council arranged for the Economic Round
Table Group to investigate the feasibility of continuing with rent control within the City.
The Council allocated $1,000,000 for the report. The report was issued and
apparently, Mercedes Marquez failed to deliver the report to others. Ultimately, it
was revealed that the Round Table recommended many substantial and fundamental
changes in the RSO.
To date, there have been no changes. LAHD is run by a small group of former tenant
activists. There is no leadership inclusion from apartment owners or apartment owner
suppliers or vendors.

For example, the Round Table Report recommended that the annual rental adjust be
calculated on a pure CPI analysis and that the arcane formula of averaging two previous
years be immediately eliminated. LAHD agreed to this protocol in September of 2010
and to date, it has never been implemented. LAHD inspectors have been found to be
guilty of extortion, fraud and other misconduct. LAHD, in a recent Superior Court
judgment, was instructed that they have no jurisdiction or authority over citing owners for
building code violations. There have been no real explanations as to the mechanism
associated with REAP.
There has been a failure to adequately adjust the annual rental formula to take into
consideration the alarming rise in costs of utilities (water by 18%, sewage by 28%
and solid trash by 44%).
Finally, the Mayor himself now suggests that he would like to abolish the safety
protection of Proposition 13. ‘s suggested that a meeting be convened with apartment
owners and the Mayor’s office.


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Michael Millman, Esq.

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