Los Angeles is sending a message to landlords who evict tenants from rent-controlled units in order to list them on Airbnb for some quick cash.
City Attorney Mike Feuer announced Monday that he is filing criminal charges against the owners of one formerly rent-controlled building in the Fairfax District. Prosecutors allege the property owner, Carol Jean Alsman, booted tenants, without giving them, "the opportunity to re-rent the units before they were put back on the market," which would be a violation of city law, according to the Los Angeles Daily News.
It's the first time city prosecutors have brought such a case, and the move is "meant to send a signal to other landlords breaking city laws at a time when L.A. is facing an affordable-housing crisis," the Los Angeles Times reports.
"In a city with a profound shortage of affordable housing, unlawfully converting rental units to operate hotels has got to stop," Feuer said in a statement. "My office will continue to intervene to keep rent-stabilized units on the market and hold owners accountable for not complying with the law."
Rent-controlled apartments are being taken off the market at an accelerated pace. Just last year, 1,137 units were removed.
The tenants of the four-unit apartment building in Fairfax made news last year, when, after they were evicted from their apartments, they said they found their former residences listed on short-term rental sites Airbnb and HomeAway. The Airbnb listing advertised one of the apartments for $550 a night. The tenants are suing Alsman and LSJB Investments LLC under the Ellis Act.
The Ellis Act is supposed to protect tenants when landlords want to get out of the rental business. It mandates that landlords pay relocation expenses, which Alsman and LSJB did, the city attorney says, but he said, they didn't alert the tenants that units would be rented out again in five years or less, as the law requires.
Feuer also filed civil charges against three other LA landlords, two in Venice and one in Hollywood, for, he said, running their apartment buildings as de facto hotels.
- L.A. apartment owners charged with evicting tenants, then renting their units via Airbnb [LAT]
- Rent-Controlled Tenants Were Evicted, Then Found Their Apartments on Airbnb [Curbed LA]
- LA Rent-Control Evictions Have Doubled Since 2013 [Curbed LA]
Comments
Incredible, only in commiefornia. Not only do you have to subsidize these scumbags, pay their relocation, etc. but you face criminal charges to boot. This is absolute insanity.
These broads were paying $2k for a two bedroom unit. PLENTY of apartments for that price all over the place.
I hope Alsman is triumphant. I hope she inspires others to do the same. Screw these parasites, enough is enough.
By Penguin Puncher on 06.20.16 9:04pm
F landlords.
By TheDudeSpeaks on 06.21.16 9:54am
Good to see that you don’t think that laws apply to certain people. Keep up that winning mindset.
By ivantrotsky on 06.21.16 4:49pm
But if we’re discussing Rosa Parks or MLK, you’d be tripping over yourself to laud them as "heroes". Same goes for those dope smoking BLM/OWS/etc. turds.
Got it.
By Penguin Puncher on 06.21.16 8:24pm
What he should have said was "In a city with a profound shortage of affordable housing, we continue to do nothing to fix the actual problem – the massive artificial constraint on housing that we call zoning – and instead we make empty statements about band-aid attempts to force the private sector to subsidize affordable housing for residents, regardless even of whether they need subsidies or not."
By goingup on 06.20.16 9:23pm
Housing shortage or high rent is not failure of private property owners. Change zoning and building requirements for higher density. Putting a private owner to prison does not solve any real problems. How can it?
By High Rent on 06.20.16 11:38pm
It is a deterrent to those looking to do the same.
By ivantrotsky on 06.21.16 4:50pm
There’s an affordable housing crisis precisely because of leaches like these, enabled and abetted by air bnb et all.
They’re bottom feeders. And these parasite scum are caught, bang to rights.
By LAguameister on 06.21.16 7:48am
So the leeches are the property owners trying to maximize their profits, rather than the people demanding their housing be subsidized at the owners’ expense? Got it.
By pdan on 06.21.16 9:39am
Oh, I’m sorry! Did Carol Jean Alsman not know how the rules of rental properties worked before getting into the business? The poor dear! All those greedy renters taking advantage of her kindness! Screw her. She’s getting exactly what she deserves.
By enter ranting on 06.21.16 9:44am
Which should be a slap on the wrist, hopefully more people follow her lead.
In fact, I should put together an e-book on constructive eviction and publish it free of charge. A step-by-step, how-to guide chock-full of tricks of the trade. Maybe it’ll encourage landlords to fight back against extortion.
"Sick and tired of deadbeat tenants living the high life on your dime? Fed up with depressed property values due to archaic laws? Want to boost your NOI by 35%+ in the next 12 months, without investing a ton of time or capital?"
p.s., rent control was created by owners of skyscrapers in DT trying to save money on property tax. It was NEVER about grandma Millie, that was the bullshit lie fed to the public to get it to pass.
By Penguin Puncher on 06.21.16 8:31pm
Yikes!! This is great in some aspects. Hope this makes homeowners think of new ways or vote for owner friendly people into elected positions… Hope this dose not get out of hand!!
By LaOriginal45 on 06.21.16 8:36am
"The Ellis Act is supposed to protect tenants when landlords want to get out of the rental business. It mandates that landlords pay relocation expenses, which Alsman and LSJB did, the city attorney says, but he said, they didn’t alert the tenants that units would be rented out again in five years or less, as the law requires."
Were they renting out the apartment again? They didnt sign a new lease with someone else. They were ‘sharing it’ on Airbnb. Seems to me the law does not account for the rise of Airbnb and needs to be amended or changed. The Ellis act does allow you to evict tenants and convert the property to a hotel if you want. If Airbnb more like a hotel or more like a short term rental lease?
By RXBXUXNX on 06.21.16 8:42am
Look, that’s all just a bunch of legal mumbo jumbo. What’s really important is that we stick it to the property owners who are trying to make a buck rather than the NIMBYs who are blocking the prospect for the development of more affordable housing.
By pdan on 06.21.16 9:40am
I mean, you understand the contradiction in what you said? They took affordable units off the market and committed fraud in the process.
All while robbing you, the tax payer, and landing you with externalized costs through city legal fees, displaced renters competing for a dwindling share of affordable housing.
They tried to profit personally while ripping you off. These ‘property owners’ are thieving scum.
By LAguameister on 06.21.16 1:07pm
Tell us about the "housing crisis" in Chicago or Miami, two urban environs that completely blow LA out of the water. What’s the difference? No fucking rent control, shithead NIMBYs or leftist parasites.
Oh, what’s that you say? Affordable housing for the masses? Sure, lets go build a bunch of 600 unit towers with $100k condos. Problem solved.
Development progresses so incredibly fast, the fortune I amass in three years would take three decades in a place like LA
By Penguin Puncher on 06.21.16 8:16pm
You’re the Ghetto Urchin character. Miami, eh? My guess is you won’t be there for long. Enjoy trying to sell anything there as that particular cesspool is reclaimed by the ocean
By LAguameister on 06.22.16 6:53am
Awesome, I sincerely hope that’s a valid defense and she gets off scot-free.
By Penguin Puncher on 06.21.16 8:34pm
News flash, folks.
The "housing crisis" is caused by the very rent control laws that Curbed and Feuer advocate.
When you take the bulk of rentals off the market (600,000) by granting lifetime tenancies, then compound the aggravation with additional inteference (taxes, surtaxes, duplicitous inspection scams and fees) and bounties (relocation charges), it should come as no surprise that landlords are loathe to invest in properties, offer low rents or take a chance on marginal applicants when they do have rare vacancy.
There is plenty of room to do small-scale infill multifamily, but the city places new construction under rent control, and it can take years just to clear the lot after paying extortionist relocation fees.
No one in their right mind is going to build new rentals under these conditions.
By smartalex on 06.21.16 11:26am
I agree that rent control is contributing to the housing crisis rather than helping. It also makes traffic worse as people are moored in place rather than being able to move closer to their jobs.
New construction though is exempt from Rent Control in Los Angeles. Still low income housing is not something developers build anywhere without subsidy. They build high end units that filter down to low income units over time.
By RXBXUXNX on 06.21.16 12:21pm
New construction is not exempt from rent control.
By smartalex on 06.21.16 11:05pm
I agree with smartalex. It’s the city that is causing the crisis in low-cost housing. Criminally charging the owners? Wow, that is so out of line. Why are the owners of rental property required to offer rental units under market value?
By Hepburn II on 06.21.16 12:10pm
There’s a huge surplice of housing in Los Angeles. The problem is it’s all "market rate. This bubble of property has happened while the affordable, rent controlled stock has been decimated.
We all pay the price while homelessness grows and rising rents drive costs up for everyone – higher wages, higher grocery costs, more expensive dining out and retail, etc.
Privatized profits and socialized costs. All because of scum like these profiteers in the article.
By LAguameister on 06.21.16 1:14pm
Powerful arguments there. Compelling, and great for encouraging future discourse
By LAguameister on 06.21.16 3:38pm
Ad hominems are the least graceful way to lose an argument. pdan pointed out there’s no "surplice" of market rate housing, yet all we’re hearing is crickets from camp meister.
By Penguin Puncher on 06.21.16 8:39pm