Bills Aimed at Slum Upkeep Unveiled

A package of bills that would require owners of substandard buildings to set aside repair money in an escrow account was unveiled Monday by state Assemblyman Mike Roos (D-Los Angeles) and Los Angeles City Atty. James K. Hahn.

In a statement, Hahn said the bills are aimed at real estate deals involving lenders who make it possible for owners to transfer slum properties “like hot potatoes” as they attempted to evade prosecution.

One bill would require that a sufficient portion of any loan held on the building, above 80% of the value of the property, be set aside in an escrow account for the purpose of making repairs. Another bill would prevent the transfer of substandard property unless the repair funds had been set aside. And a third would give California judges specific authority to appoint receivers to oversee repairs in cases where owners refused to comply.