Requesting Funds from REAP
When properties are accepted into the Rent Escrow Account Program (REAP), an escrow account is opened, and tenants are given the option to pay their reduced rent into the escrow account. This money can be used to make repairs, pay for utilities or pay for relocation expenses, primarily through a General Manager hearing process.
If your property is in REAP, and there are funds available in escrow, we highly recommend that you use the funds to address the violations cited on your property so that it may be restored to safe and habitable condition.
To request funds from the escrow account, please submit an application as described below.
WHAT CAN RELEASE OF ESCROW FUNDS BE USED FOR?
Funds may be released from the escrow account for the following reasons:
- Repairs (Future or completed)
- Essential Services (Utilities- electrical, water, gas; trash collection; management services; pest control; security)
- Tenant Relocation (voluntary relocation only; does not include RSO, no-fault evictions)
- Expenses sustained by tenants due to uninhabitable conditions
- Other (including but not limited to satisfaction of court judgments)
Examples of requests NOT eligible for funds:
- Property taxes
- Mortgage payments
- Purchase or repairs of other properties
HOW DO I APPLY FOR A RELEASE OF ESCROW?
Complete and submit a Release of Escrow Application, and include your contact information, the amount and reason for the request, the REAP property address, and supporting documentation.
All applications should include supporting documentation justifying your request (i.e. receipts for material, utility bills, Contractor Proposals, proof of payment, new/old lease agreement, moving invoice, or pictures documenting Housing Code violations). Insufficient documentation may result in the denial of your request.
I’VE SUBMITTED AN APPLICATION, NOW WHAT?
Your application will be scheduled for a hearing. A Notice will be sent to the address you provided as part of the application notifying you of the date and time of your hearing. The Hearing Officer will accept evidence from the owner and any other interested parties in order to reach a decision.
While it is not required that you attend the hearing, we highly recommend that you do. Attending the hearing will allow you to address any questions or concerns that are raised.
I’VE HAD MY HEARING. WHEN CAN I EXPECT FUNDS TO BE RELEASED?
A decision will be rendered granting or denying the request within 10 business days of the hearing. After a decision is issued, it may be appealed within 10 calendar days. If the decision to release funds is appealed, funds will not be released until after the appeal is complete. If the request is granted, payment will be mailed to the relevant party via First Class mail. Applicants for tenant relocation must pick up their check in person at the HCIDLA Main Office (1200 W. 7th St., Los Angeles, CA 90017).