Los
Angeles City Council President Eric Garcetti called out, “Open the
roll.” The City Clerk followed with, “13 Ayes, Zero Nos.” And, with
that the LA City Council unanimously voted to uphold the recommendation
to deny a condominium conversion application of the 104-unit rent
controlled Grand Villas Apartments (formerly Magnolia Park Apartments)
in Sherman Oaks. The ecstatic tenants who were present filed out of the
City Council Chambers to celebrate.
The
October 13, 2009 City Council vote marked the end of another chapter in
an over decade-old fight with four different landlords to stop tenants
from being displaced, and to prevent this affordable housing from being
lost.
Tenants Win Tough Battles
During
this time, the tenants fought and won other landlords’ attempts to
evict them and/or raise their rents. The battles have been over a
previous condo conversion attempt, major rehabilitation evictions,
capital improvement rent pass-throughs, reduction of services and
environmental health hazards.
The
tenants’ commitment and determination has outlasted three other owners
who ended up selling the property in frustration, as a result of not
being able to displace tenants and increase rents.
During
the years, tenants have received tireless and important legal
representation from the Neighborhood Legal Services of LA County, as
well as the full support of the Coalition for Economic Survival.
New Owner, Same Intent
The
current owner, Brian Dror, is a notorious developer/speculator: He buys
numerous apartments in L.A., which he then converts, displaces tenants
and pockets large profits. He began his quest to convert the building
to condos about two years ago.
In
December 2007, Dror’s original condo conversion application before the
LA Planning Department’s Area Advisory Agency was denied due to
problems with the required tenant notices. As he left that hearing, he
made a call on his cell phone and in a voice loud enough for tenants
attending the hearing to hear, he spitefully told the person he called
to prepare the eviction notices. Luckily, he never followed through
with it. But he did re-file the condo conversion application.
Another Flawed Condo Conversion Application
The
new application he filed had even more problems. The City’s findings
included that the vacancy rate of the Planning Area was less than 5%
and the proposed conversion would have a significant cumulative effect
on the rental housing market. This alone provides the City the ability
to deny a condo conversion. There were also problems with tenant
notices required under the Subdivision Map Act. The developer failed to
survey how many people were willing and able to purchase the converted
units. Also, 63% of 104 unit households signed statements that they
were unwilling and unable to afford the new condo units. Further, the
conversion would increase the loss of rent controlled units in that zip
code by over 66%.
In
addition, shortly before one of the prior Planning Department hearings,
the building on-site manager distributed a notice to tenants,
suggesting that, in fact, no action was underfoot to convert the
apartments to condos. The effect of the notice invalidated the required
60-day Intent to Convert Notices and was seen as a blatant attempt to
chill public participation in the process.
Tenants Will Stay Vigilant
While
this is a significant victory, the tenants have come to realize that
the developer will probably not give up. And, if he does, there will
probably be another owner who will attempt to displace them. But, as
has been the case in the past, the tenants are ready and willing to
continue to fight to save their homes.