In a continued effort to enforce local housing laws, LA City Attorney Hydee Feldstein Soto imposes penalties on entities behind unlawful short-term rentals and notorious party houses. In a reported crackdown, Feldstein Soto’s office has recently settled with operators who have been flouting the City’s Short-Term Rental Ordinance and Party House Ordinance, a confirmation that Los Angeles will firmly combat these infractions.
The settlements target MC Pico Properties, LLC, and Monem Corporation, owner and manager of Franklin Apartments, which, according to the Office of the City Attorney, enabled more than 3,000 nights of illegal short-term rentals. “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,” Soto said. The companies face a $150,000 civil penalty, must end their violations of home-sharing laws, and are required to return at least 10 rent-stabilized units to the long-term rental pool.
Additionally, following an August 2023 lawsuit, settlements were reached with parties connected to The Nightfall Group, a luxury home hosting platform. This group's practice of leasing properties for long-term and subleasing them as short-term party rentals not only contravenes housing ordinances but also has been a consistent source of community disruption. Compelled to pay civil penalties ranging from $20,000 to $215,000, the offenders are now prohibited from further short-term rental activities that do not comply with the City’s Home-Sharing Ordinance, as per the Office of the City Attorney.
Amid Los Angeles’s ongoing affordable housing crisis, Feldstein Soto’s crackdown on illegal home-sharing carries added weight. Her office’s actions not only impose financial penalties on violators but also aim to restore much-needed rent-stabilized units to the market. Litigation continues against other defendants tied to The Nightfall Group, signaling the case is far from over.
