Get Out of REAP
A property is placed in REAP (Rent Escrow Account Program) when the violations on an Order To Comply notice from the Los Angeles Housing Department are not being corrected fast enough to appease the city's warrant. Landlords placed in the program are faced with hardships that could have been avoided had the right steps been taken.
*What Can An Owner Expect From Being Placed Into REAP?
- Loss of Monthly Income.
- Tenants may pay their rent to LAHD.
- Rental income reduced up 50%.
- No annual rent increases for 12 months after the property is removed from REAP.
- Eviction Restrictions.
- $50 Charge per unit per month while in REAP.
- $201.50 charge for each LAHD inspection.
- Landlords are required to pre-pay for two annual SCEP Inspections ($338.00) when the property is removed from REAP.
- Tenants may apply for their deposited rental funds for relocation or repairs.
- Notice of REAP recorded against your property's title.
- The recording may restrict a refinance or sale of the property.
*How Do I Avoid Being Placed in REAP?
- If your property is inspected and cited for violations, repair them as soon as possible.
- If you get behind on making repairs and the time allowed on the order has expired, you now run the risk of being placed in REAP. Take action immediately to achieve compliance.
- Once a notice accepting the property into REAP has been mailed to the landlord, the owner has 15 calendar days to appeal the REAP acceptance.
- If the owner does not appeal, the property will be placed in REAP automatically.
- The first appeal will grant the owner the time to attain compliance by the date of their General Manager's Hearing. PLEASE NOTE: You must have a sign off by LAHD before the General Manager's Hearing date to prevent the property from being accepted into REAP.
- After the Hearing, the General Manager will issue a decision to accept the property into REAP or not. The decision by the General Manager may be appealed.
- If the General Manager accepts the property into REAP, the landlord, within 10 Calendar days, may file an appeal. The cost of the appeal is $150.00.
- IMPORTANT NOTE! The appeal of the General Manager's Decision does not grant the owner more time to comply.
- If the owner appeals the acceptance into REAP and attains compliance after the General Manager's Hearing date, then the compliance is considered late. The property will be placed in REAP.
IF YOUR PROPERTY IS CURRENTLY IN REAP, WINDRICH WILL GET YOU OUT!
The longer you stay in REAP, the larger the financial drain. It is ten times more difficult to get out of REAP as opposed to a typical Order To Comply. The Case Manager now not only looks for the cited violations, but ALL deficiencies on the property. No one typically passes on the first of second rounds. Additional sign-offs will most likely be required from Building & Safety, Department of Health Services, Community Outreach and/or The Fire Department.
You need competent professional direction in a time-sensitive capacity. No matter how large the building, Windrich has the experience to remove any property from REAP returning your rents back to their original values. We understand what each Official is looking for. Windrich will get you SIGNED OFF!
*Taken from the Los Angeles Housing Department Website