Understanding REAP

Having your property placed into the REAP Program is a very serious matter and cannot be treated lightly. It takes a professional team with a systematic approach to problem solving to get your property back into your control and out of the hands of the tenants and the bureaucrats! 

Many tenants have "figured out the system" and purposefully create problems with your property just so they can have their rent cut in half!

Does it seem like everyone is against you? The city is serious about cleaning up what they call slum buildings and they actively contract with multiple tenants' rights groups that provide outreach programs to tenants that are highly motivated to keep you in REAP.

We'll do what others can't when it comes to finding your REAP solution.

 The city of Los Angeles Housing Department is very serious about getting rid of slum lords: sadly a lot of well meaning landlords find themselves caught up in the web of laws and tenant protection agencies not knowing what to do.

The Rent Escrow Account Program (REAP) can be just the beginning of your troubles. If your situation is not handled properly and promptly, things can escalate fast. There are growing numbers of State and community organizations poised to take control of your property.

In 1998, five tenant "outreach" groups lead by the Coalition for Economic Survival (CES) succeeded in pressuring the city into creating the Systematic Code Enforcement Program (SCEP). These outreach groups work with the city to inspect over 700,000 rental units for all housing code violations including electrical, plumbing and structural. Tenant rights groups gain more power every year.

• Loss of monthly income
• Tenants may pay their rents to LAHD, not you
• Rental income reduced up to 50% and paid to LAHD, not you
• 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

get a rent reduction of typically 50% and are urged to pay their rent to the city until the city and the tenants' rights groups decide that the demanded repairs have been completed. Once out of REAP, rents are "frozen" for 12 months. Tenants can request a refund on their entire deposit. Eviction restrictions are enforced that greatly help the tenants. Internet bloggers give step-by-step instructions to tenants on how to place a property in REAP and get their rent cut in half!

lose money and precious time for every day their property is in REAP. A notice of REAP is recorded against your property and will stop you from refinancing or selling your property. The city can dictate which contractors do repairs on your property. Even out of REAP, the effects of the program can be felt for years to come.