L.A. cracks down on Hollywood party houses and illegal short-term rentals. Violators to pay hefty fines

"The city of Los Angeles is expected to collect hundreds of thousands of dollars in fines after settling multiple lawsuits against the owners of illegal short-term rentals and party houses in the Hollywood area who were accused of wreaking havoc for neighboring residents. "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," L.A. City Atty. Hydee Feldstein Soto said in a news release Tuesday."

"Among the buildings mentioned in the settlement were the Franklin Apartments, a rent-stabilized building with 30 units located at 6871 Franklin Avenue. The city attorney's office accused the building's owner and manager of removing 10 long-term rental units for use as illegal short-term rentals. In 2020, the 10 units were turned into an underground hotel, which "resulted in increased nuisance activity and complaints from other neighbors," Soto said."

"The law requires short-term rental properties to register with the city under the Home-Sharing Ordinance, or HSO. Rent-stabilized units, which limit a landlord on rent increases each year, are prohibited from being used for short-term rentals. According to the city attorney, the property owners failed to register the units under HSO, and were taken off the market for extended periods of time."

Los Angeles secured settlements and fines from owners of illegal short-term rentals and party houses in Hollywood after widespread neighborhood complaints. Party houses produced excessive noise, disruptive behavior, obstruction of public ways, litter and vandalism that threatened neighborhood quality and public safety. The Franklin Apartments at 6871 Franklin Avenue had 10 rent-stabilized units converted into an underground hotel in 2020, prompting increased nuisance activity and neighbor complaints. The Home-Sharing Ordinance requires registration of short-term rentals and bars use of rent-stabilized units for short-term rentals. MC Pico Properties LLC and Monem Corporation were ordered to pay $150,000 and post prohibition signage.

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