The Apartment Association of Greater LosAngeles has filed a lawsuit against the City of LosAngeles in Federal Court to challenge the indefinite evictionmoratorium and rent freeze moratorium in Los Angeles. According tothe organization, these regulations force landlords to "absorb theresidents' claimed economic losses attendant to the crisis.

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"Clearly, the actions taken by the City of Los Angeles under itsmoratoria represent an improper and uncompensated taking of thefundamental property rights from the city's rental housingproviders.  The city's actions are a clear violations ofthe contract clauses and the takings clauses under the Californiaand U.S. Constitutions, and a violation of the Fourteenth Amendmentdenying the due process rights of property owners under both theCalifornia and U.S. Constitutions," Daniel M.Yukelson, executive director of the Apartment Associationof Greater Los Angeles, tells GlobeSt.com.

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These restrictions have been in place for three months, sincethe onset of the pandemic. The end date for the ban is linked tothe citywide emergency order, which appears to be in effectindefinitely. "The eviction ban is being challenged now becausethere's no apparent end in sight on if or when the city, Mayor orthe city council will lift the local emergency declaration," saysYukelson. "The moratorium allows residents to not pay rent for anentire year after the emergency ban is lifted and waives interestand late fees without any documentation requirements evidencingneed for these interest-free loans."

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Los Angeles—like most cities—has a nigh concentration ofindependent small landlords, who cannot sustain apartmentoperations without income. According to AAGLA, that is aninfringement on private contractual negotiations but also has thepotential to cause hundreds of millions of dollars in liability."Without an end in sight or any sort of financial relief whatsoeverbeing offered to the City's housing providers, many will be forcedinto foreclosure," says Yukelson. "The City's housing providers arepredominantly smaller "mom and pop" owners who, like renters,already struggled financially and lived month-to-month before theonset of the pandemic.  Many of the City's housingproviders have also lost full-time jobs or been inflicted with theCoronavirus and have very little in financial reserves to weather along-term emergency.  Many of these owners are not onlystruggling to meet the financial obligations of maintaining andmanaging their rental property, they have been struggling toprovide housing, food and clothing for their families."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.