At least 10 rent-stabilized apartments are again available for housing following legal settlements with property owners who allegedly violated city regulations by using them as short-term rental units, Los Angeles City Attorney Hydee Feldstein Soto announced Tuesday.
On Tuesday, Feldstein Soto gave an update on her ongoing crackdown on illegal short-term rentals and party houses in the city.
According to the City Attorney’s Office, city lawyers reached a pre-litigation settlement with MC Pico Properties LLC and Monem Corp. — the owner and manager, respectively, of the Franklin Apartments.
Since late 2020, MC Pico and Monem allegedly used the rent-stabilized building for illegal short-term rentals for more than 3,000 nights, city prosecutors said. At least 10 of the building’s 30 units had been removed from the long-term rental market and turned into an underground hotel, resulting in increased nuisance activity and complaints from neighbors, according to the City Attorney’s Office.
The short-term rentals were in violation of the city’s regulations under the Rent Stabilization Ordinance, which prohibits RSO units from being used as short-term rentals, prosecutors said. The rentals also failed to use registrations mandated by city officials, and the units were taken off the market for extended periods of time.
“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,” Feldstein Soto said in a statement. “These actions send a clear message that we will hold those who violate our laws accountable for their violations.”
As part of the settlement, MC Pico and Monem will be prohibited from violating the city’s Home-Sharing Ordinance at the Franklin Apartments and any other properties they manage and own in Los Angeles. They are also expected to pay $150,000 in civil penalties.
Last month, the city attorney announced settlements against Ultimate Host LLC stemming from a 2023 lawsuit. The company conducted business under The Nightfall Group, billed as a “high-end home hosting platform.”
The group leased properties advertised as “villas” from their homeowners as long-term rentals and subleased them as short-term rentals, which were often used as party houses, according to the city attorney.
The Nightfall Group has been alleged to be a large contributor to the city’s party house problem.
Feldstein Soto’s office said settlements were reached with Kirill “Kirk” Ayzenberg, individually and as Trustee of the Gabriel Mark Trust; 5554 Green Oak LLC, a California limited liability company; and Jungle Kerry Inc., a California corporation.
They are prohibited from short-term rental business at any residential property in the city in a manner that does not comply with the city’s regulations. Each is subject to civil penalties in the amount of $215,000, $45,000 and $20,000, respectively, according to Feldstein Soto’s office.