When Jason Wahler and his fiancée, 19-year-old USC sophomore Katja Decker-Sadowski, announced their engagement at an August 25 housewarming for their L.A. pad, one reveler wasn’t too psyched: his ex Lauren Conrad, whom he dated on and off for a year.

Despite her congratulations, “it seemed like she wasn’t happy for me,” Wahler tells Us, adding that LC showed up unannounced with Audrina Patridge and the Hills cameras.

“I wanted her to go…There was a weird tension,” says Wahler, 20. “I have to give up a friend until it mellows out.”

For her part, Conrad, 21, tells Us, “I am really happy for Jason and wish them all the happiness.”

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The Hills star Jason Wahler is in rehab, a family member tells PEOPLE exclusively.

“Jason’s in rehab, and he’s getting help,” said the relative, who declined to give her name.

“He’s doing well, and he’s going to be a new man,” she added. “There was a deal made [with prosecutors].”

Wahler, 20, was due to surrender at Los Angeles County jail last week to serve a 60-day sentence for a September 2006 assault case, but a judge delayed that in lieu of rehab.

“His jail sentence has been suspended for now,” says L.A. City Attorney spokesman Frank Mateljan. “But we’ll be informing the court of Wahler’s latest arrest in Seattle at his next progress report hearing on June 8.”

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Jason Wahler spewed a barrage of racist and offensive slurs during his arrest in Washington state this weekend, allegedly calling a police officer a “nig**r, fag**t, and poor f**k,” this according to the police report.

According to the document, obtained by TMZ, police were called to the Waterfront Marriot to respond to a fight involving Wahler. Hotel security found Wahler wrestling on the lobby floor with an unidentified man. The police report says Wahler used his right fist to punch the unidentified man in the mouth. According to the document, Whaler then ran from the hotel, only to return a short time later.

Officer DePina, who wrote the report, says when Seattle PD arrived they found a “very intoxicated” Wahler passed out on the floor in a hallway on the third floor. When DePina tried to take Wahler into custody, the former reality star allegedly lashed out, calling the arresting officer “a nig**r, a fag**t, and a poor f**k.” According to DePina, Wahler also stated, “that he was rich and would have my ass.”

Wahler, who was described as “belligerent and hostile,” allegedy threated DePina a second time, saying, “Come down to L.A. county and get your ass kicked!” Wahler was booked on charges of criminal tresspassing and assualt. It is Whaler’s fourth arrest in nine months.