Primary renovation is a specific LA RSO pathway that allows landlords to undertake major work on rent-controlled buildings with tenant-notice and rent-increase provisions tied to the scope of improvements.
Under the RSO's Primary Renovation Program, landlords who complete qualifying capital improvements can pass through a portion of the cost via time-limited rent surcharges. The improvements must meet LAHD standards — routine maintenance doesn't qualify. Tenants receive specific notices and protections during the work.
For LA RSO owners considering significant capital work, the primary renovation pathway is one of the few ways to recover improvement costs through rent increases beyond the standard cap. Complex to execute cleanly; requires LAHD coordination from the planning stage.
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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