Los Angeles is set to collect significant fines from the owners of illegal short-term rentals and disruptive party houses in the Hollywood area, following the resolution of multiple lawsuits.
City Attorney Hydee Feldstein Soto announced the developments in a news release on Tuesday, highlighting the negative impact these properties have had on local neighborhoods.
“With excessive noise, disruptive behavior, obstruction of the public right of way, litter and vandalism, party houses are well-known to impact neighborhood quality and threaten public safety,” Soto stated.
Among the properties implicated in the settlement is the Franklin Apartments, a rent-stabilized building housing 30 units at 6871 Franklin Avenue.
The city attorney’s office accused the owners and managers of this building of converting 10 long-term rental units into illegal short-term rentals.
In 2020, these units were transformed into an underground hotel, leading to a marked increase in nuisance activities and complaints from neighboring residents.
Under the Home-Sharing Ordinance (HSO), short-term rental properties are required to register with the city, a regulation that is especially stringent for rent-stabilized units.
These rent-stabilized apartments are explicitly prohibited from being used for short-term rentals.
According to the city attorney’s office, the property owners failed to adhere to these regulations, leading to the prolonged removal of these units from the rental market.
As a result of these infractions, MC Pico Properties LLC and Monem Corporation, the owners and managers of the Franklin Apartments, have been ordered to pay civil penalties amounting to $150,000.
As part of the settlement agreement, management must also erect signs indicating that short-term rentals are forbidden at this location and must reintegrate the 10 units into the long-term rental market.
Soto emphasized that the city is taking a firm stance against party houses that disrupt neighborhoods and violate laws.
“We will not tolerate party houses that disrupt our neighborhoods and threaten public safety, or sit back while our laws are violated and rent-stabilized housing is ripped off the market,” she stated.
In addition to the Franklin Apartments case, Soto announced the conclusion of a 2023 lawsuit against Ultimate Host LLC, a high-end home hosting venture known as the Nightfall Group.
According to this lawsuit, police were summoned 250 times over the course of two years to address disturbances at various Hollywood properties being operated illegally as party houses by Ultimate Host.
Soto has accused the Nightfall Group of causing significant issues related to party houses in the city.
Owner Mokhtar Jabli has allegedly been renting out his main residence in direct contravention of the city’s short-term rental regulations.
Furthermore, other property owners partnering with the Nightfall Group are reported to be leasing their long-term rentals as short-term rentals for use as party houses, according to the allegations.
Three defendants in this case—Kirill “Kirk” Ayzenberg, 5554 Green Oak LLC, and Jungle Kerry—have already settled, incurring civil penalties of $215,000, $45,000, and $20,000 respectively.
As a condition of their settlements, these defendants are mandated to inform all guests that loud and unruly gatherings are prohibited.
The city attorney’s office noted that litigation with other defendants remains ongoing.
Several of the companies and property managers involved in these lawsuits did not respond to requests for comments as of Tuesday.
image source from：latimes
