I am buying an RSO-controlled property in Los Feliz and will be performing a no-fault eviction so I can move in as my primary residence.
The property is currently a duplex, with a 2 bed 1 bath on the top and a 5 bed 3 bath on the bottom. I will be moving into the 5 bed 3 bath because the tenant has been there half as long as the upstairs tenant (therefore that is the unit I am legally directed to move into vs the more tenured upstairs tenant).
I do not need the space of a 5 bed 3 bath apartment so am planning on renovating the entire space and turning it into x2 2 bed 2 bath apartments while I am living there. I plan to live in one of the new units long term but will rent out the second new 2 bed 2 bath unit at the market rental rate. The upstairs tenant is amazing so I would like to leave them upstairs for as long as they want. Effectively turning a duplex into a triplex.
Does anyone know if there is any issue with doing this? I haven't been able to get a straight answer from LA's RSO.
Generally, if a new unit is created through substantial rehabilitation or conversion, it may be considered a "new construction" unit and therefore exempt from RSO rent control. However, this exemption often depends on specific criteria being met like building permits, zoning compliance, and certificate of occupancy for the newly created units and you would get this from the LADBS. Sometimes approval or confirmation from the LAHD (Los Angeles Housing Department) which would be a document you submit confirming the exemption status of the new units. This might include your permits, proof of substantial rehabilitation and other relevant documents. Hope this all helps you out it can be a tedious process but you have a great plan that can definitely be done!