Soviet Monica Files Lawsuit Against Property Owner Alleging Rent-Controlled Units Were Illegally Con
The City of Santa Monica is at “it” again with the latest attack against a rental property owner. In a lawsuit filed in September, Santa Monica alleges that NMS Properties violated the Ellis Act and local rent control ordinances by unlawfully converting a rent-controlled apartment building into a building that is being used for vacation rentals. The alleged “scene of the crime” is believed to be occurring on the 1200 block of 10th Street in Santa Monica.
In its complaint, Santa Monica alleges that the property owners began extensive renovations and upgrades following their 2015 purchase causing many of the tenants to move out due to excessive noise and claimed “dangerous conditions” caused by the construction. However, when three “holdout” tenants would not leave at any price, the lawsuit claims that the owners used the Ellis Act to evict the tenants, but then never removed the property from the rental market. The Ellis Act is a state law that allows rental property owners to “exit” a money losing rental business. In other words, the Ellis Act allows owners who intend to get out of the rental business to evict tenants who would otherwise have a right to remain in their homes. In this case, the City alleges the owners used the Ellis Act to avoid rent control regulations and create market rate units. The matter is pending.