In what they described as an effort to prevent more corporate landlords from displacing Los Angeles renters, the L.A. County Board of Supervisors decided Tuesday to move forward with plans to require a new step in the process of selling certain apartment buildings.
The board voted unanimously to develop a “Community Opportunity to Purchase Act.” If passed on a final vote, the law would compel apartment owners to notify affordable housing groups when they put certain buildings up for sale in unincorporated parts of L.A. County.
The goal, county leaders say, is to ensure that organizations committed to keeping rents low have a chance to buy buildings that would likely otherwise be scooped up by investors who might push out existing tenants through rent hikes.
“The county is facing rising displacement pressures as rents outpace incomes,” said Supervisor Hilda Solis, who introduced the idea.
She cited statistics showing that more than half of L.A. County renters are considered “rent burdened” by federal government standards, with even higher rates among Black and Latino households.
“We need to fight,” Solis said. “We need to have tools to keep people in their homes.”
What buildings would be covered?
The proposed rules would only apply to buildings with five housing units or more and only to properties located in unincorporated areas, such as East L.A., City Terrace and Altadena. Based on past property sales data, the rules would apply to anywhere from 30 to 130 listings annually.
Nothing will change right away. Tuesday’s vote gives county staff 180 days to develop the regulations and bring them back to the board for a final vote.
During that time, the county will also work on developing a list of qualified buyers — such as affordable housing developers, community land trusts and other mission-driven organizations — who would be the first to hear about buildings coming up for sale.
Depending on how the regulations are written, the law could give those groups a “right of first refusal,” meaning they would have first dibs on making an offer to buy the building. County officials noted that a similar program in San Francisco gives qualified groups five days to respond with a letter of interest, followed by 20 days to place an offer.
Landlords would not be required to sell to these groups if they can get a better offer on the open market, county officials say.
Would sellers end up in a ‘Hotel California’ situation?
Though the idea is still in early stages, landlords and real estate agents expressed strong opposition during Tuesday’s public comment period.
“This proposal moves in the wrong direction by adding another layer of regulation and taxpayer expense, without creating any new housing units,” said Elizabeth de Carteret, the government affairs director at the Southland Regional Association of Realtors.
Meg Sullivan, who described herself as a “mom and pop” rental housing owner, said if the county establishes these rules in unincorporated areas, investors will choose to buy properties elsewhere.
“No private party in their right mind is going to invest in a market that looks like the equivalent of the ‘Hotel California’ song, where investors can check in, but it’s not clear they can ever leave, or on what timeline,” Sullivan said.
Existing groups say they’re ready to pursue deals
Tenant advocates told the board the proposed law would help protect renters from the whims of the profit-driven housing market.
Brenda Tafoya, executive director of El Sereno Community Land Trust, said organizations like hers have the experience needed to make market-rate offers on available properties.
“We work with the real estate market because we understand it,” Tafoya said. “We can partner with willing sellers and tenants to acquire properties, ensuring smooth transactions, while preserving permanently affordable housing.”
In response to concerns that the rules could delay properties from being offered to other prospective buyers, Supervisor Holly Mitchell asked county staff to consider regulations allowing listings to hit the open market at the same time affordable housing groups are given the chance to make an offer.
“This motion is not about taking property, forcing a sale or preventing a sale — it’s about creating a fair and transparent process,” Mitchell said, arguing that many older landlords want to retire without having to sell to corporate buyers.
Where would the funding come from?
Mitchell said public funding to support building purchases could come from money raised by Measure A, the county sales tax increase voters approved in 2024 to support housing and homelessness efforts. The L.A. County Affordable Housing Solutions Agency, which is funded by the tax revenue, has programs to support affordable housing preservation.
L.A.’s idea is not new. Washington, D.C., has had a “Tenant Opportunity to Purchase Act” in place since 1980.
Supporters say D.C. tenants use the city’s program to form associations that negotiate with new buyers to ensure ongoing affordability in about half of buildings coming up for sale, according to a 2023 study by the Coalition for Nonprofit Housing and Economic Development.
But critics point out that D.C.’s program rarely results in tenants actually owning their buildings. That same 2023 study found that ownership by a tenant-sponsored cooperatives was the outcome in only about 2% of building sales.
Solis said she wants the county to take a phased approach, with the initial program eventually being expanded to include a way for tenants to purchase their buildings directly.
