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Home Affordability in the USC Area
In 2006, when USC began planning its new mixed-use “Village” development, the UNIDAD Coalition ––a group of community-based organizations in South Central–– arose to ensure
Variable Definitions:
Total Tenant Buyout Agreements: The total number of tenant buyout agreements filed with the Los Angeles Housing Department (LAHD) within a given area
Median Tenant Buyout Amount: The median dollar amount of tenant buyouts in a given area
Source:
Los Angeles City Controller
Years Available:
2019-2023
Methodology Note:
The original data comes at the point level. Our team geocoded the locations to generate X/Y coordinates, then spatial joined each point to 2020 Census Tracts.
Tenant Buyout Agreements, also known as a “Cash for Keys” deal, is an agreement in which a tenant living in a rental unit covered by the Rent Stabilization Ordinance (RSO) is offered cash for vacating their rental unit. Under the RSO, the rent of a recently vacated unit may be increased to market rate only in a limited number of situations, including Tenant Buyout Agreements. According to the LA City Controller’s Office, tenants received an average buyout of approximately $25,000 through this program between 2019 and 2024.
Cash for Keys has been criticized as problematic for targeting people who are in need of immediate funding and are ultimately left without stable long term housing as well as contributing to the loss of units covered under the RSO. Cash for Keys can be a mutually beneficial agreement for both the former tenant and the owner of the property, but it is imperative that both parties understand their protections and look closely at legal documents. According to the City Controller’s office:
“Tenants have a number of rights when presented with a “cash for keys” offer:
The Tenant Buyout Notification Program went into effect on January 25, 2017 and amended the City’s Rent Stabilization Ordinance (RSO) to regulate tenant buyout agreements (also known as “cash for keys”) for rent-stabilized units. These agreements occur when a landlord pays a tenant to vacate. Before this program, these buyout agreements, which amount to voluntary evictions, were not covered by the RSO. This program requires landlords to provide a disclosure of tenant rights for these agreements, which allows tenants to refuse or rescind the offer, and provides a baseline of compensation. Under this program, landlords are required to file tenant buyout agreements with the City.”
Written by Rediet Retta
Citations:
Cash for Keys (2019-2023). (n.d.). Controller.lacity.gov. https://controller.lacity.gov/landings/cash-for-keys
“CASH FOR KEYS” -INFORMATION FOR CONSUMERS AND DRE LICENSEES. (n.d.). Retrieved July 9, 2024, from https://www.dre.ca.gov/files/pdf/ca/2012/ConsumerAlert_Cash4Keys.pdf
RSO Overview – LAHD. (n.d.). https://housing2.lacity.org/residents/rso-overview
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