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Landlords of Rent-Controlled Buildings Could Get Tax Break

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Last year's proposal to pass a rent moratorium ultimately resulted in three arrests at City Hall, so should everyone expect another dogfight over this idea? Saying it's a hardship for business owners, City Councilman Bernard Parks, described by the Los Angeles Business Journal as an "ally of apartment owners," submitted a motion last month proposing a tax break for landlords of rent-controlled buildings, according to the LABJ. "Currently, landlords of rent-controlled units – any building with more than four units that was built before 1978 – pay an estimated $14 million a year in business taxes, according to a study produced for the L.A. chapter of the California Apartment Association."

Meanwhile, "advocates for tenants’ rights said the reduction in business taxes would lead to cuts in city services, including some that benefit low-income residents. In addition, they questioned whether landlords would use the tax savings to upgrade their properties.' "There’s no requirement written into this that landlords put the extra money into tenant improvements, so many will just pocket the savings,' said Larry Gross, executive director of the Coalition for Economic Survival."
· City Councilman Homes In on L.A.’s Landlords [LABJ]