The City Attorney for Los Angeles has responded to a lawsuit from a property management company over the city's eviction moratorium.
"My office wrote a sound and lawful ordinance protecting vulnerable tenants from becoming homeless during the pandemic. We defeated a previous attack on these crucial protections and will vigorously defend the ordinance again," city attorney Mike Feuer said in a statement to the Southern California Record.
Thirteen companies owned Geoffrey Palmer, a real estate developer, and GHP Management Corp. have sued the City of Los Angeles for $100 million, claiming the city is directly liable for the loss of compensation they have suffered, according to the lawsuit.
The claimants said that they are legally entitled to compensation from the city and that the city is liable because the moratorium was imposed by the city government.
The lawsuit states that the eviction moratorium contains provisions that "indefinitely prohibit" landlords and property owners from initiating or to continue existing residential eviction proceedings premised upon the non-payment of rent.
The property owners and landlords cannot commence eviction proceedings for a tenant’s failure to pay contractual rent.
Additionally, they cannot charge any late fees or interest.
The lawsuit also states that tenants can continue to occupy their premises at no charge and utilize the water, power, trash, sewage and other services that the landlords must continue to pay without reimbursement.
"By stripping all remedies away from owners — and without requiring tenants to demonstrate an inability to pay rent — the Eviction Moratorium discouraged (and continues to discourage) tenants who can pay all or some of what they owe from doing so," the lawsuit claims.