L.A. Mun. Code ch. XV art. 1; ch. XVI art. 5 § 151.05.1
PASSTHROUGH OF SURCHARGE FOR THE SYSTEMATIC CODE ENFORCEMENT FEE (Los Angeles Rent Stabilization Ordinance and Just Cause for Eviction Ordinance)
Operative Text
(Amended by Ord. No. 175,940, Eff. 6/7/04.) For a rental unit for which the Systematic Code Enforcement Fee has been paid pursuant to Section 161.352 of the Los Angeles Municipal Code, the landlord may demand and collect a rental surcharge from the tenant of the rental unit as follows: A. For the period from January 1, 2004 until May 31, 2004, a landlord may collect one dollar per month from the tenant of the rental unit. B. For the period from June 1, 2004 until June 30, 2004, a landlord may collect $3.16 per month from the tenant of the rental unit. C. For the period from July 1, 2004 until December 31, 2004, a landlord may collect $3.18 per month from the tenant of the rental unit. D. For the period from January 1, 2005, until December 31, 2021, a landlord may collect 1/12 of the annual Systematic Code Enforcement Fee from the tenant of the rental unit per month. (Amended by Ord. No. 187,108, Eff. 8/6/21.) E. Effective January 1, 2022, a landlord may collect 1/12 of 50% of the annual Systematic Code Enforcement Fee from the tenant of the rental unit per month. (Added by Ord. No. 187,108, Eff. 8/6/21.) This Section shall only apply to landlords who have paid all outstanding Systematic Code Enforcement Fees and charges imposed pursuant to Section 161.903.2 of this Code. (Amended by Ord. No. 181,744, Eff. 7/21/11.) The Rent Adjustment Commission shall have the authority to adopt any regulations necessary to implement this section.
Under L.A. Mun. Code ch. XVI art. 5 § 151.05.1, landlords who have paid the Systematic Code Enforcement (SCEP) fee may pass a portion of that cost through to tenants as a monthly rental surcharge. The allowable surcharge amount has changed over time, and as of January 1, 2022, the maximum monthly passthrough is one-twelfth of 50% of the annual SCEP fee. This passthrough right is only available to landlords who are current on all outstanding SCEP fees and related charges; landlords with unpaid balances are not permitted to collect the surcharge.
Plain English — not legal advice.
Under § 151.05.1, a compliant operator generally ensures that all SCEP fees and any charges under Section 161.903.2 are fully paid before attempting to collect a surcharge from tenants. Since January 1, 2022, the collectible monthly amount is capped at one-twelfth of 50% of the annual SCEP fee, so operators typically verify the current annual fee amount and calculate the surcharge accordingly. Operators also stay attentive to any regulations adopted by the Rent Adjustment Commission, which holds authority to issue implementing rules for this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 151.05.1 limits the monthly SCEP surcharge a landlord may collect, and since January 1, 2022, that cap is one-twelfth of 50% of the annual SCEP fee. Importantly, a landlord who has not paid all outstanding SCEP fees and related charges has no right under this provision to collect any surcharge at all. Tenants who believe a surcharge is being collected improperly may look into filing a complaint with the Los Angeles Housing Department, raising the issue as a defense in a rent-related proceeding, or reaching out to a local tenant-rights organization for general guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 11, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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