Let New Choice Contractors Get Your Property 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 Rental Income.
• Tenants pay their rent to LAHD.
• Rental income reduced 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 REAL 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.

Call New Choice Contractors at (310) 888-4014 for help in avoiding REAP by addressing code compliance issues NOW!