Customer Service Hotline 1-866-557-RENT
  Search
REAP/UMP Information for Owners
 Information for Owners

Back to REAP/UMP

Rent Escrow Account Program (REAP) Information for Landlords/Property Owners

 
 

A:

Properties are placed into REAP for the following:

  1. The building or unit(s) was subject to one or more Notices To Comply, or Notice Of Substandard Conditions.
  2. The period allowed by the Notice for compliance, including any extensions, expired without compliance.
  3. The cited violations affect the health and safety of the occupants.

Back to top

 

A:

  1. Tenants are given a rent reduction as a result of the cited code violations at the property.
  2. An Escrow Account is opened and the tenants in the affected units are given the option to pay their reduced monthly rent into the escrow account, or to the landlord.
  3. A Notice of REAP is recorded and filed against the property's title with the County Recorder’s Office. This recording may restrict the refinancing or sale of the property.
  4. The assessment of a $50 administrative fee per unit in REAP, per month is charged during the time the property is subject to REAP.
  5. To clear the title of the REAP Notice, the property must be removed from the program and all fees due HCIDLA must be paid. Once both these elements are satisfied, REAP prepares a termination document that is filed on the property’s title with the County Recorder’s Office.

Back to top

 

A:

The Department mails a tenant payment history document to the last known Registered Address. If you are properly registered, you will receive a monthly summary report only if your tenants are paying their rents to HCIDLA. If you are not correctly registered, you will not receive the report. If you believe you should be receiving this report and are currently not, please contact the REAP Section at (213) 808-8500.

Back to top

 

A:

  • When the property is formally removed from the program the Department may release the funds held in escrow. However, please note the Ordinance requires that HCIDLA determine if any fees are owed the Department and collect the fees prior to releasing the remaining funds to the owner of record. Furthermore, the owner must submit a W9 form in order for the funds to be released. HCIDLA mails a W9 to the owner of record when the case formally closes.
  • The owner of record may apply to have funds released from the escrow account for repairs or to pay for utilities. If the owner of record has already submitted an application, you can check on the status of your application by contacting the REAP Section at (213) 808-8500

Back to top

 

A:

Satisfy the following requirements:

  1. Obtain a Advisory Report from your assigned Outreach Contractor.
  2. Attain a Sign Off on all outstanding orders from your HCIDLA inspector (Case Manager). Once the first two elements are satisfied, REAP will determine if there are no pending orders with:
    • Los Angeles Department Building & Safety
    • Los Angeles County Department of Health Services
    • Los Angeles Fire Department.
    • Lastly, there may not exist a delinquent balance with Department of Water & Power.

    If there is an open issue with one or more of the above agencies, REAP will notify the owner of record of which agency needs to be contacted to resolve the matter.

Once the above criteria is satisfied, REAP will recommend to the LA City Council to remove the property from the REAP program. Upon removal, HCIDLA will issue a 30 day notice closing the escrow account and restoring the rents.

Back to top

 

A:

Your property may remain in REAP for one of the following reasons:

  • The property has other outstanding orders from additional city and county agencies. HCIDLA will notify the owner in writing if there are outstanding orders on your property.
  • You may have a delinquent balance with the Department of Water & Power (DWP). HCIDLA will notify the owner in writing if there is an outstanding DWP balance.

Back to top

 

A:

The owner of record and tenants will be notified by mail that the property has be removed from the program. The notice specifies the escrow account close date, and that the rents will be restored 30 days from the date of the notice.

Back to top

 

A:

Termination of the REAP recording, filed with the County Recorder’s Office, is contingent on the following requirements:

  1. The case must be removed from the REAP program and the escrow account is closed.
  2. Satisfactory payment of all outstanding fees, penalties and costs to HCIDLA.

Once the fees are paid, REAP will prepare a termination document and deliver the notice to the County Recorder’s Office.

Back to top

 

Back to REAP/UMP

last changed 1/15/2014
 Print   

 

 

 

 
Copyright 2013 Housing And Community Investment Department