Tenants Kicked Out as Landlords Cash In

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Ellis Act evictions are so common in LA these days that I’ve gotten used to hearing reports of landlords kicking their tenants out. It happens all the time. As speculative development continues to push property values higher, property owners are eager to cash in. Over 20,000 units have been removed from the rental market through the Ellis Act since 2000. And in addition to the thousands of tenants who’ve been kicked out under Ellis, it’s likely that thousands more have lost their apartments because they were bamboozled by unscrupulous landlords using cash-for-keys scams.

In the course of writing this blog I’ve met a number of people who’ve either already been evicted or are facing eviction. So when I went to meet a group of tenants who live in a small building on Las Palmas it seemed like a familiar scenario. The owner plans to demolish the existing structure in order to build a 7-story mixed-use project, and so the people currently living there have got to go. The breadwinners in these families are working hard to make ends meet, and odds are they’re getting by on paychecks that add up to well below LA’s median income. While I’m sure they’re worried about getting evicted, one thing that encouraged me is that they seemed much more angry than scared. They’re not going to take this lying down.

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Some of the tenants facing eviction.

The tenants are paying much less than the area’s median rent, but they’re also getting next to nothing in terms of repairs and maintenance. I could see walking into the building that the owner wasn’t taking care of it properly. The tenants told me a number of stories about problems with their units that the landlord was either slow to fix or didn’t fix at all. My guess is that he’s been sitting on the property, waiting for the right deal to come along, and didn’t see any point in spending money on upkeep. I should mention that he has laid out some cash to fix up a few of the units, just not the ones that are occupied by the current tenants. You may be asking, why would he do that? The answer is simple. He’s posting the refurbished units on the net as short-term rentals. This is a pretty common practice. Landlords are doing it all over the city, and it’s more or less legal unless the tenants were evicted under the Ellis Act. So when we talk about a shortage of apartments in LA, we have to remember that there are probably thousands of units that are actually being used as unofficial hotel rooms.

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Council District 13 Candidate Sylvie Shain.

My friend Sylvie Shain came by to talk with the tenants. Sylvie is running for the CD 13 council seat, in large part because of her concern over LA’s affordable housing crisis. She knows first-hand what it’s like to be evicted, having been forced out of her apartment by owners who planned to turn the building into a boutique hotel. Sylvie spent over an hour with the tenants, giving them info on what protections they had under the law and helping them figure out their next steps.

Several days later I went to a neighborhood council meeting on the proposed project. The purpose of the meeting was to talk about the impacts of the new structure, not the eviction of the current tenants, but it’s hard to separate the two. The owner has said that he will reserve seven units in the new building to replace the seven units that are currently occupied in the old building, and that he will offer them to the current tenants at the price they’re now paying. This may sound like a good deal, but there are a few problems with it. First, the owner hasn’t actually signed an agreement, which means he’s under no obligation to honor these terms. Second, while the owner is offering to replace seven units, there are actually fifteen units in the existing building that are covered by the rent stabilization ordinance (RSO). His deal would mean the loss of eight more RSO units. This may not sound like a lot by itself, but thousands of RSO units have been taken off the market in recent years, which is one of the reasons affordable housing is so scarce these days. Third, the owner knows that the new structure will probably take a couple of years to complete. If the current tenants get forced out, there’s a good chance they won’t find anything they can afford in LA. It’s entirely possible that by the time the proposed project is completed, none of them will still be living in the area, and he won’t have to offer them anything.

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Neighborhood Council meeting on the proposed project.

Then there’s the way the Department of City Planning (DCP) is trying to push this project through. They’re trying to approve it with a categorical exemption, which means they’re arguing that because it’s in-fill development and conforms to the current zoning, the California Environmental Quality Act (CEQA) doesn’t require an environmental assessment. And to make that argument, they cite CEQA Guidelines, Section 15332. But CEQA requires that the project meet a number of conditions in order to grant the exemption, including the following….

Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.

Traffic is already getting to be a problem on Las Palmas. Formerly a quiet residential street with one lane going each direction, in recent years it’s become a short cut for drivers looking to avoid congestion on Highland during rush hour. And traffic on Las Palmas is going to get a lot worse, because in addition to this project there are two others about the same size that are currently under construction, one just to the north and one just to the south of the existing building. But wait, there’s more. At the corner of Las Palmas and Franklin work recently began on a complex that wil contain over 100 units. In other words, if this project is approved, the neighborhood will gain about 300 units, which will definitely have a significant impact on traffic.*

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Traffic northbound on Las Palmas at rush hour.

What’s more, the proposed project is about 500 feet away from the facility that houses both the Canyon Pre-School and the Las Palmas Sr. Center. Children and seniors are known to be sensitive receptors, and to say that there will be no significant impacts to air quality or noise levels during construction is ridiculous. The kids and seniors at this small facility already suffered an onslaught of construction dust and noise when work on the project at Las Palmas and Franklin began last year. But the DCP apparently just doesn’t give a damn, and so they’re trying to rush this project through with no environmental review whatsoever.

After the neighborhood council meeting, I contacted the DCP hearing officer to find out what the timetable was for the project’s approval. It’s tentatively scheduled to go before the City Planning Commission on April 13, though it could get pushed back. Meanwhile, the tenants wait and wonder whether they’ll have to find a new place to live, in a city where rents are spiralling higher every year.

*
Some housing advocates may be cheered by this news, but don’t get too excited. The vast majority of these units will be well beyond the reach of those making the area’s median income, $34,807 a year. [Source: LA Times, Measuring income along L.A.’s Metro stations by Kyle Kim and Sandra Poindexter, March 4, 2016]

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View of construction site from Highland.

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