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Important Reminder: JCO Program Annual Fee Deadline Approaching

January 21, 2025 0 Comment Category: Estate Law

The City of Los Angeles Housing Department (LAHD) issued its 2025 Annual Bill for rental units earlier this month, and it includes the new Just Cause Ordinance (JCO) fee of $31.05 per unit. This fee applies to all non-RSO rental units in the City of Los Angeles and was due on January 1, 2025. Payments will be considered late if received after February 29, 2025.

What is the JCO Fee?

The JCO fee is tied to the Just Cause Ordinance (LAMC 165), which applies to nearly all housing stock in Los Angeles that is not already covered by the Rent Stabilization Ordinance (RSO). If your property falls under the JCO, this annual fee is mandatory.

Key Requirements for Landlords:

1. Fee Payment is Essential:
   • Failure to pay the JCO fee will legally prevent you from collecting rent from tenants.
2. Property Registration:
   • All non-RSO properties must now be registered annually with the LAHD.
   • Unlike the RSO registration, landlords need only serve tenants OR post the registration notice conspicuously on the property.
3. Out-of-Pocket Fee:
   • The JCO fee cannot be passed on to tenants, unlike the RSO fee. Landlords must cover the entire cost themselves.

Deadlines and Consequences

• Deadline: Payments were due January 1, 2025, and will be considered late after February 29, 2025.
• Non-Payment Penalties: Failure to pay will result in being legally barred from collecting rent until the fee is settled.

How to Stay Compliant:

• Review your 2025 Annual Bill and confirm whether your property is subject to the JCO.
• Pay the $31.05 fee for each unit promptly to avoid late penalties or rent-collection restrictions.
• Ensure your property is properly registered with the LAHD and that tenants are notified appropriately, either via direct service or posting.

Final Thoughts

The introduction of the JCO fee adds another layer of responsibility for landlords in Los Angeles. If you’re unsure about your compliance obligations or how the JCO affects your property, consulting with a real estate attorney can help you navigate these new requirements with confidence.

 

At Davidovich Stein Law Group, we’re here to help you stay informed and compliant. Reach out today to speak with one of our experts. Your bottom line is our top priority.