What is the Rent Escrow Account Program (REAP)?

The Rent Escrow Account Program, also called REAP, is a Los Angeles-based program that exists to mitigate and address health, safety, and habitability violations that occur in Los Angeles rental properties. 

If you are a tenant located in Los Angeles and you live in a multi-residential rental property with 2+ dwellings, you may qualify for a significantly reduced rent (10-50% less) by submitting your property into REAP. 

How do you place your property into REAP?

Here are the steps towards placing your property in REAP:

1.  In accordance with LAMC Section 162.03 entitled “Referral to Reap,” any tenant, City,  or County agency can refer a building or residential unit to REAP providing it meets the following conditions: 

1. The building has one or more Orders to comply, correct, or abate a condition or violation issued by an Enforcement Agency. 

2. The building has Orders for compliance that have expired without compliance. 

3. And, most relevant to tenants: “the violation affects the health or safety of the occupants” or if the violation results in a habitability violation, as defined in Section 153.02.

2. If the condition of your apartment is threatening your health or safety, is inhabitable, or your landlord has failed to rectify a previous violation within the time provided for them to do so, you have grounds to refer your property for inclusion into REAP. 

You filed a complaint — now what?

After you file a complaint on the condition of your unit and request inclusion into REAP, the Los Angeles Housing Department (LAHD) will inspect the property and assess the violations that you highlighted. 

1. If the LAHD’s inspection allows them to conclude that there are health and safety or Housing Code violations, as outlined in the section above, the property owner (your landlord) will be tasked with rectifying these violations within a reasonable time frame. 

2. If your landlord does not comply and alter the substandard living conditions of your apartment, they will receive a Notice of Noncompliance from LAHD. 

1.  Warning: If your landlord submits an appeal to this notice within the 15 days following its issuance, they will have more time (until the date of their General Manager’s hearing) to comply and rectify their violations. At the hearing, your landlord can fight the decision to place the property into REAP. 

How do you know if your apartment is accepted into REAP?

You will know that your apartment has been accepted into REAP if you receive a Notice of Acceptance into the Rent Escrow Account Program (REAP) from the LAHD, typically by mail. 

If you believe your property should have been accepted into REAP, but you haven’t heard back, consider reaching out to a Tenants Rights lawyer, or emailing LAHD, lahd.reap@lacity.org. 

What happens when you’re in REAP?

Once your property has been accepted into REAP, you can expect the follow to occur: 

1. You will receive a rent reduction indicated on the REAP notice that you receive. Tenants of affected units are given between a 10-50% rent reduction, depending on the severity and nature of the violations cited. 

2. The LAHD will open an escrow account. You can choose to either pay your reduced rent into this escrow account, or directly to your landlord. Some tenants feel more comfortable paying into an escrow account instead of paying to a noncompliant landlord. 

3. A REAP notice is recorded on the title of the rental property, so if your landlord tries to sell the property, prospective buyers will see that it has been placed in REAP because it is unhabitable or promotes substandard living conditions. 

What is the escrow account used for?

If a landlord is eligible, they may request funds from the escrow account to make necessary repairs or pay for utilities. The money in the account will go towards them creating a more habitable apartment, but it will be controlled and protected by the LAHD. 

How does a property get released from REAP?

A property that has been accepted into REAP will remain in the program until all violations that were cited by the LAHD have been cleared, and all requirements for the removal of violations have been met. This process usually involves another inspection of the unit by LAHD, then a review by the LA City Council. 

If your property has been removed from REAP, you will be notified by the LAHD that your rent will be restored to its original amount. The escrow account will also close 30 days from the date of the notice. 

If the apartment has been cleared by LAHD and the City Council but violations still persist, you are within your rights to file a complaint again and the LAHD will investigate the property again. 

If you believe you have grounds for reduced rent based on the qualifications of the REAP program, and need legal assistance, Tenants Law Firm can advocate for you during this process, from working with you to file a complaint, to aiding you if the landlord decides to appeal the motion to place the property in REAP, and takes it to the General Manager’s Hearing. Contact us by calling (310) 432-3200 or by using this form, and we’ll get back to you as soon as possible.