The L.A. Times recently had an interesting article on gentrification in the neighborhood of Lincoln Heights. The article highlights tenant buy out programs, which are allowable under the Los Angeles Rent Stabilization Ordinance.
Landlords are increasingly using buy out programs to “buy” tenants and have them voluntarily move from their units. Often these are long term tenants, but sometimes newer tenants also may be offered a “cash for keys” agreement. There are certain procedures that landlords must follow in order to offer cash for keys or a buy out. Further, it is important to note that tenants are under no legal obligation to accept a buyout agreement and there is no set fee schedule for a buy out. Often times, the relocation amounts set forth in the Los Angeles Rent Stabilization Ordinance are used; however, these are not the amounts that must be offered or agreed to.
The L.A. Times article is “As gentrification closes in, immigrants in Lincoln Heights find their American dream slipping away.”