Chapter 17.24 — EXEMPT PROPERTY

• a. Types of Property Exempted. The following shall be exempt from application of this title:

  1. Institutional Facilities. Housing accommodations in any hospital, convent, monastery, extended medical facility, asylum, nonprofit home for the aged, fraternity, or sorority house, or housing accommodations owned, operated, or managed by a bona fide educational institution for occupancy by its students.

Dwelling units which as of June 27, 1985, were of a type that would have been subject to this title and not exempt under this section may not qualify for an exemption pursuant to this subsection unless the conversion is approved by the city. The purpose of the foregoing qualification is to prevent the conversion of apartment rental units to uses that would be exempt from this title.

2. Government Assisted or Owned Housing. Housing accommodations which a government agency or authority owns, operates, finances, or manages or which are specifically exempted from municipal rent regulation by state or federal law or administrative regulation, except that such units shall not be exempt from the provisions of Chapters 17.30 and 17.52. Tenancies governed by the Housing Choice Voucher Program ("Section 8 units"), that are located in a structure not owned by a government agency or non-profit housing provider that was first occupied on or before July 1, 1979 are not encompassed within this exemption and are not exempt from the provisions of this title.

3. Rooms Rented to Boarders. A rental unit in a single-family residence, condominium or stock cooperative where the landlord owns the residence and shares kitchen or bath facilities with the tenants and where the landlord also occupies a unit in the residence as his or her principal residence.

4. New Construction. Dwelling units located in a structure that was first occupied after July 1, 1979 and for which a certificate of occupancy was first issued after July 1, 1979; except that such units shall not be exempt from the provisions of Chapters 17.30 and 17.52 and Sections 17.28.050, 17.28.060, 17.56.010(h) and, if a tenancy commenced in such units on or after March 24, 2022, 17.32.020.

   • i. If the new accommodations are located on a property where the accommodations were demolished after having been withdrawn from the rental market under Section 17.52.010(15) and are offered for rent or lease within five years of the date of withdrawal, the new accommodations shall not be exempt from this title. This title shall apply to all rental units constructed on a formerly withdrawn property, regardless of the number of rental units withdrawn, except under the following circumstances:

     • (A) Inclusionary housing units, nonprofit housing accommodations,

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City of West Hollywood, CA § 17.24.010

WEST HOLLYWOOD CODE

§ 17.24.010

institutional facilities, government assisted or owned housing, and any other unit otherwise exempt under this title shall be exempt.

  - (B) New accommodations for which a planning permit application was deemed complete prior to July 20, 2016 shall be exempt.

• ii. Units converted legally from a non-housing to a housing use shall qualify for this exemption; except that units created as a result of the conversion of existing residential rental units shall not be exempt from this title.

5. Rental Units in Hotels, Motels, or Rooming Houses Rented to Transient Guests. Housing units in hotels, motels, inns, tourist homes and boarding and rooming houses, in which on June 27, 1985, the majority of units in the building were vacant or were occupied by one or more of the same tenants for not more than thirty days or by transient guests who did not make the unit or the property or building their principal residence; except that any unit in such an exempt building which was occupied by the same tenant for thirty or more days on June 27, 1985 shall not be exempt until and unless that tenant vacates the unit. Units located in exempt buildings, other than those units described immediately above, are exempt from this title, even if they are occupied by the same tenant for thirty days or longer, unless at any time the majority of the units in the building are rented to tenants for thirty or more days, which shall cause the building to lose its exemption.

Dwelling units which as of June 27, 1985 were of a type that would have been subject to this title and not exempt under this section may not qualify for an exemption pursuant to this subsection unless the conversion is approved by the city or unless the building has been exempted by virtue of this subsection. The purpose of the foregoing qualification is to prevent the conversion of apartment rental units to hotels, motels, and rooming houses that would be exempt from this title.

6. Nonprofit Housing Accommodations. Housing accommodations operated by an organization exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code, provided that the gross income derived therefrom does not constitute unrelated business income as defined in Section 512 of the Internal Revenue Code; however, such units shall not be exempt from the provisions of Chapter 17.30.

• Repealed. [4 ]

8. Inclusionary Housing Units. Rental units subject to inclusionary housing agreements with the City of West Hollywood are exempt from the application of the provisions of this title; however, such units shall not be exempt from the provisions of Section 17.56.010 and Chapters 17.30 and 17.52.

9. Units Occupied by Owners and Specified Relatives. A rental unit which is occupied by the landlord, or his or her spouse, parent, grandparent, brother, sister, or child (by blood or adoption) as their principal residence is exempt from the provisions of this title during the period when the unit is occupied by the landlord or above-specified relative. The term "landlord" shall be defined as any real person who possesses legal title to at least a fifty percent interest in the property or is a beneficiary with an interest

4. Editor's Note: This subsection was repealed by § 53 of Ord. 99-548.

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City of West Hollywood, CA § 17.24.010

RENT STABILIZATION

§ 17.24.010

of at least fifty percent in a trust that owns the property.

10. Units Used For Nonrental Purposes. Rental units which were previously offered for rent, but are withdrawn from the rental market for nonrental uses, such as storage areas, laundry rooms, or community rooms, are exempt from the provisions of this title during the period when the unit is not used for rental purposes. This subsection is not applicable to units which are withdrawn from the rental market pursuant to the provisions of subsection (7) of this section or subsection (15) of Section 17.52.010.

11. Effective January 1, 1999, single-family residences, condominiums, cooperatives, and other residential rental units which are separately alienable, if the existing or prior tenancy was created after January 1, 1996, except that such units shall not be exempt from the provisions of Chapter 17.52, Sections 17.28.050 and, for a tenancy that commenced in such units on or after March 24, 2022, 17.32.020.

12. Effective January 1, 1996, single-family residences and condominiums for which proof is provided that the rental unit has been continuously occupied by the owner for a period of two years or more as the principal place of residence. An owner may have only one exemption pursuant to this provision at any one time. Once established, this exemption shall be permanent, except that such units shall not be exempt from the provisions of Chapter 17.52, Sections 17.28.050 and, for a tenancy that commenced in such units on or after March 24, 2022, 17.32.020.

13. Withdrawn Units. Upon the withdrawal of all units from the rental market pursuant to Section 17.52.010(15) of this title, the residential rental building or structure(s) is exempt until such time as any unit within the building or structure(s) is returned to the rental market.

14. Units Deemed Uninhabitable by an Authorized Agency. Units that have undergone structural or fire damage in which Building and Safety, Fire Department, Health Department, Code Compliance or other authorized governmental agency has determined in writing that the rental unit(s) may not be inhabited in its present condition or while work is performed. A copy of the government agency's written documentation must be submitted to the Department. The exemption status shall only be valid for a maximum of twelve months on the next year's registration fees.

15. Interim or Transitional Housing for People Experiencing Homelessness. Housing accommodations offered at no cost to people experiencing homelessness which a government or nonprofit agency owns, operates, finances, or manages.

• b. Qualifications for Exemptions. In order to qualify for an exemption pursuant to subsections (a)(2), (a)(6), (a)(8), (a)(9), (a)(13) and (a)(14) of this section, an owner of exempt units shall obtain a certificate of exemption pursuant to Commission regulations; except a certificate shall not be required in order to exempt rooms rented to boarders. An application for an exemption shall be filed upon a form prescribed by the city and shall be accompanied by payment of a fee as determined after December 2, 1987, by resolution of the City Council. The Commission shall adopt regulations pursuant to Section 2.64.090 governing the monitoring and terminations of exemption certificates for units which undergo a change of use or status.

• c. Termination of Exemption. At any time a property which has been exempted under the provisions of Section 17.24.010 loses its exempt status due to termination of the conditions

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City of West Hollywood, CA § 17.24.010

WEST HOLLYWOOD CODE

§ 17.24.010

qualifying it for exemption, the owner of such property is required to notify the Department within thirty days and pay the registration fee required by this title and the regulations promulgated thereunder.

• d. If a rental unit is exempt from the rent limitations imposed by this title under subsection (a)(4), (a)(11), or (a)(12) of this section, the unit's owner shall disclose that fact to any prospective tenant.

  1. The disclosure required by this subsection shall:

     • i. Specifically identify the exempt rental unit by its street address and unit number or letter, if any; and

     • ii. Include the phone number for the Department of Rent Stabilization and the following statement in English, Spanish, and Russian: "This rental unit is exempt from the rent limitations imposed by the City of West Hollywood Rent Stabilization Ordinance. This means that, upon the expiration of any lease, the property owner may increase the unit's rent by an amount greater than the Rent Stabilization Ordinance would otherwise allow. This property is also subject to Chapter 17.52 of the City of West Hollywood Rent Stabilization Ordinance, which includes, but is not limited to, the protections related to eviction and the prohibition against tenant harassment."

  2. The disclosure required by this subsection shall be in writing, and in at least 12-point type. The disclosure may be provided either as a separate document or within the body of a written lease. If the disclosure is included within the body of a written lease, the landlord shall require the tenant to initial the disclosure before he or she signs the lease.

  3. The owner shall provide the disclosure required by this subsection to a prospective tenant before the prospective tenant enters into a rental agreement with the owner. The disclosure, including the required translations, shall be provided by the Department, and shall be given to landlords upon request.

4. A property owner's failure to comply with the provisions of this subsection is subject to the administrative penalty provisions set forth in Sections 1.08.030 through 1.08.070 of this code.

(Prior code § 6406; Ord. 85-59 § 1, 1985; Ord. 85-59U § 1, 1985; Ord. 85-79 § 1, §§ 4, 6, 1985; Ord. 85-79U § 1, §§ 4, 6, 1985; Ord. 85-84U § 1, 1985; Ord. 87-133U § 2, 1987; Ord. 87-135 § 5, 1987; Ord. 87-135U § 5, 1987; Ord. 87-168 § 1, 1987; Ord. 88-199 § 1, 1988; Ord. 88-205 § 1, 1988; Ord. 88-205U § 1, 1988; Ord. 91-282 § 1, 1991; Ord. 91-311 § 1, 1991; Ord. 95-449U §§ 3, 4, 1995; Ord. 99-548 §§ 20, 42, 52, 53, 71, 72, 1999; Ord. 00-566 § 1, 2000; Ord. 03-650U §§ 3, 4, 2003; Ord. 07-777U § 1, 2007; Ord. 14-939 §§ 7—9, 2014; Ord. 14-942U §§ 1, 2, 2014; Ord. 16-982 § 1, 2016; Ord. 18-1030 § 1, 2018; Ord. 18-1047 §§ 6—9, 2018; Ord. 21-1155 §§ 1, 2, 2021; Ord. 22-1177 §§ 7, 8, 2022; Ord. 22-1194 § 5, 2022; Ord. 23-13 § 2, 2023)

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City of West Hollywood, CA

RENT STABILIZATION

§ 17.28.010

§ 17.28.020