REAP – How do I get out of it?

About LAHD REAP (Rent Escrow Account Program)

REAP is one of the LA Housing Department’s (LAHD) strongest enforcement tools.  If a rental property owner receives a Notice and Order to Comply and does not bring the cited code violations into compliance within 30 days (or by the Compliance Date on the Notice), the owner is summoned to a General Manager’s Hearing.  LAHD may recommend to the General Manager that the unit/property be put into the Rent Escrow Account Program with a corresponding rent reduction.  REAP is an expensive, complicated, lengthy process.

You must take immediate action. Call us for professional assistance! (310) 742-7031

Why is REAP so serious? What happens?

  • Your tenants are given a rent reduction of up to 50%.
  • Tenants may choose to pay their reduced monthly rent into an Escrow Account instead of to you, the property owner.
  • A Notice of REAP is recorded and filed against the property’s title; this may restrict refinancing or sale of the property.
  • A $50 administrative fee per unit, per month is assessed.
  • The property owner must still bring the property into code compliance, even without the rental income.  To obtain funds from the Escrow Account is a difficult process that must go through another General Manager’s Hearing.
  • Fees are assessed by LAHD throughout the process; each LAHD inspection costs over $200.
  • Tenants may apply for their deposited rental funds for relocation or repair .
  • Evictions are restricted.
  • In order to get out of REAP, you must jump through hoops with your “assigned Outreach Contractor”, your LAHD inspector (Case Manager), the LA Department of Building & Safety, the County Department of Health Services, the Department of Water & Power, and even the LA City Council.

How can Property Forensic help?

We are familiar with all city, county and state codes, which are constantly changing. We can determine what needs to be done to correct all property violations. We can attend General Manager's Hearings with you, and help you understand what needs to be done to remove you from REAP. We can work with your Outreach Contractor and LAHD Case Manager to help you pass their inspections. And finally, we can help move your case through the approval process, help you obtain funds owed to you from LAHD, and help remove liens from the public record.

View: REAP – Frequently Asked Questions

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