Council nears vote on compensation for ousted renters

With a flurry of last-minute lobbying underway this week, the Los Angeles City Council is moving toward a significant vote Wednesday on relocation fees paid to tenants whose apartments are being converted to higher-priced condominiums.

The fees, which are paid by building owners, have become one of the hot-button issues in Los Angeles over the last six months. The city has seen a wave of apartment-to-condominium conversions in the last five years, resulting in more than 11,000 rent-control units being lost.

That has been problematic in a hot real estate market, with many tenants often facing dramatic rent increases when trying to find new apartments.

On Monday, council President Eric Garcetti said he might not support the fees that are up for debate.

Most tenants currently receive relocation compensation of $3,450, or $8,550 for so-called qualified tenants who are 62 or older, disabled or have minor dependent children.

In December, the planning commission recommended increasing the payments to $9,040, or $17,040 for qualified tenants.

But instead the council has opted for what is called a means-based approach, in which the fees would be linked to both length of tenancy and tenants’ financial need. The fees that will be on the table Wednesday are:

* $6,810 to tenants who have lived in their apartments for less than five years ($14,850 for qualified tenants).

* $9,040 to tenants who have lived in their apartments for more than five years ($17,080 for qualified tenants).

* $9,040 to tenants whose income is 80% or below the area’s median income -- $55,450 for a family of four -- and $17,080 to any qualified tenant who is below the median income, regardless of length of tenancy.

Garcetti said that the so-called means-based approach could weigh on the city’s bureaucracy and possibly slow down the payment process, and that a similar system has faltered in San Diego. He said he supported the planning commission’s recommendation because “it seemed like a fair adjustment considering we neglected it for many years.”

Garcetti is the former chairman of the council’s housing committee, a post now held by Councilman Herb Wesson. Wesson has advocated the new payment structure as a compromise.

Jane Blumenfeld, a deputy city planner, said she believed the new approach would be an imposition on some tenants. “Proving your income seems very invasive,” she said.

Wesson said he believes the means-based approach will work.

“I’m optimistic and hopefully by tomorrow I’ll have a better feel for what other council members are going to do,” Wesson said Monday. “We’re going to monitor it every six months and if it appears it’s not working, I’ll be the first person to say it should be eliminated.”

The measure will need 10 votes to pass Wednesday. Six council members voted for it in committee, including Councilman Ed Reyes -- who did so with reservations.

Council President Pro Tem Wendy Greuel said Monday that the vote situation appeared “fluid” and she wanted to hear more from the city’s planning and housing agencies. Her San Fernando Valley-based district has been particularly hard hit by conversions.

Reaction among the public appeared to be mixed.

The Encino Neighborhood Council, for example, supports the planning commission’s higher fees. Planning chairwoman Diane Rosen said some people believe it would discourage building owners from converting apartments to condos.

On the other hand, developer Brian Dror, president of SMH Inc., said his preference was to give more money to those most in need and less to others.

steve.hymon@latimes.com