LA looking to prevent demolition of buildings where Ellis Act violations are alleged

The apartments at 1332 and 1334 N. Formosa in Hollywood were demolished in January even though they were the subject of an open HCID investigation.
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The Los Angeles City Council voted unanimously last week to look into creating policy that could prevent demolition of buildings while they are under investigation for alleged violations of the Ellis Act, the Beverly Press reports.

The original motion, proposed back in February, cited an instance where a Hollywood apartment building vacated through Ellis Act evictions was given a demolition permit by the LA Department of Building and Safety, even though there was an open Housing and Community Investment Department investigation into whether or not the building’s vacant apartments had been illegally rented out as short-term Airbnb units.

The motion notes that “there is currently no clear-cut procedure within the Ellis Act, L.A.M.C or departmental regulations” to prevent these kinds of bureaucratic mix-ups, and the lack of a procedure worked in favor of the developer: By the time the interdepartmental disconnect was discovered, the building had already been partially demolished.

The Hollywood apartments were one of several reports that landlords and developers have been quickly renting out Ellis-emptied units as short-term rentals—“a violation of both the Ellis Act and current zoning codes,” the motion notes. (Units emptied by the Ellis Act are supposed to be vacant for five years before being rented again.)

Comments

Uh, once it is demolished, it quite obviously can’t be rented out as an AirBnB, so…problem solved! I don’t really see the problem here? How is the building still existing or not relevant to an investigation of past rental use?

Yeah, it would seem that a demolition would literally clear the slate.

Remember the Ellis Act is a state law and LA City is full of people who dont like it. Thus the council is voting to try ti make it more difficult use the Ellis Act. If they can stop a demolition by making a murmur of a re-rent violation, they can cost the developer millions of dollars.

And rightfully so, if the developer violates the law.

The violation of the law isn’t the initial eviction, nor is it the demolition, or the renovation. The (alleged) violation of the law is AirBnB-ing the units prior to the five-year prohibitive period on re-renting this property. That doesn’t have anything to do with the demolition, and is actually rendered moot going forward once the demolition happens. Levy a fine, as hefty as you want, for the re-rental violation, but the point is that it is unconnected with the demolition aspect, and shouldn’t have any relevance to the timing or approval of the demolition.

LA desperately needs infill development. If someone violates Ellis, fine them however you want. Don’t punish the rental market which is dying for more units!

Can we get an economist on the LA City Council please? Or anyone with common sense?

LA City Council votes unanimously to continue wasting our time.

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