Code enforcement is the governmental process of investigating and remediating building code violations. In LA, LAHD and LADBS both enforce different aspects of housing-related code.
Code enforcement actions typically begin with an inspection (often triggered by tenant complaint), followed by notices to the landlord to cure specific violations within a defined timeframe. Unresolved violations can lead to fines, escalating enforcement actions, REAP placement, or in extreme cases condemnation.
Active code enforcement actions are sale-suppression items. Buyers' counsel will pull LAHD and LADBS records during diligence. Sellers with open code violations should address them before listing — or disclose transparently and price accordingly.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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