(LOS ANGELES) –Today, City Attorney Hydee Feldstein Soto announced that her office has settled lawsuits involving violations of the City’s Short-Term Rental Ordinance and Party House Ordinance. She also announced that at least 10 rent-stabilized units have been returned to the City’s housing stock.
“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,” said Hydee Feldstein Soto, Los Angeles City Attorney. “These actions send a clear message that we will hold those who violate our laws accountable for their violations.”
Feldstein Soto’s office reached a pre-litigation settlement with MC Pico Properties, LLC (“MC Pico”), and Monem Corporation (“Monem”), the owner and manager respectively of the Franklin Apartments, a rent-stabilized building located at 6871 Franklin Avenue. Since late 2020, MC Pico and Monem have allegedly facilitated illegal short term rentals for more than 3,000 nights at the building, with at least 10 of the 30 units having been removed from the long-term rental market and turned into an underground hotel by tenants. This has resulted in increased nuisance activity and complaints from other neighbors.
These short-term rentals violated the law because the buildings are subject to the Los Angeles Rent Stabilization Ordinance (RSO), which bars RSO units from the City’s Home-Sharing Ordinance. Additionally, the rentals failed to use Home-Sharing registrations and were taken off the housing market for more extended periods of time.
As part of the settlement, in addition to paying $150,000 in civil penalties, MC Pico and Monem are prohibited from violating the Home-Sharing Ordinance at the Franklin Apartments and at any other properties they manage and own in the City. Additionally, at least 10 RSO units that were removed from the long-term rental market have been returned to the long-term rental market. MC Pico and Monem are also required to place signs at their property stating that short-term rentals are prohibited.
City Attorney Feldstein Soto also announced settlements with three of the Defendants in her August 2023 lawsuit against Ultimate Host, LLC, which does business as The Nightfall Group, a high-end home hosting platform. The Nightfall Group leases properties, advertised as “villas,” from their homeowners as long-term rentals and subleases them as short-term rentals, which are often used as party houses.
This is a violation of the City’s Short-Term Rental Ordinance because a person may only operate one short-term rental property at a time, and only if the person resides at the property for more than 6 months. 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.
The Nightfall Group has been alleged to be a considerable driver of the City’s party house problem, with the LAPD responding to parties at their properties on many occasions.
The Defendants that have settled in this matter include:
- 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
All are prohibited from engaging in Short-Term Rental activity at any residential property in the City of Los Angeles in a manner that does not comply with the City’s Home-Sharing Ordinance. They are also required to tell guests at any residential property they own or operate as rentals that loud or unruly parties are prohibited.
In addition, each is subject to civil penalties in the amount of $215,000, $45,000 and $ 20,000, respectively.
Litigation with the other Defendants is pending.
These lawsuits were managed by attorneys within the City Attorney’s Public Rights Branch.
Feldstein Soto encourages Angelenos involved with or interested in home-sharing, as hosts or guests, to review:
- The Los Angeles Home-Sharing Program: https://planning.lacity.gov/project-review/home-sharing
- The Los Angeles Party House Ordinance: https://codelibrary.amlegal.com/codes/los_angeles/latest/lamc/0-0-0-314547
- The Los Angeles Rent Stabilization Ordinance: https://housing.lacity.gov/residents/rso-overview
LASC Case #25STCV22426
The People of the State of California vs. MC Pico Properties, LLC, a California limited liability company and Monem Corporation, a California corporation
Judgment entered:
LASC Case #23STCV19069
The People of the State of California vs. Ultimate Host, LLC DBA The Nightfall Group, a California limited liability company; Mokhtar Jabli, an individual; Jungle Kerry, Inc., a California corporation, 5554 Green Oak, LLC, A California limited liability company; Kirill “Kirk” Ayzenberg, individually and as Trustee of the Gabriel Mark Trust dated May 19, 2021
Judgments entered:
- Kirill “Kirk” Ayzenberg, individually and as Trustee of the Gabriel Mark Trust,
- 5554 Green Oak, LLC a California limited liability company, and
- Jungle Kerry, a California corporation
###
Hydee Feldstein Soto is the 43rd Los Angeles City Attorney, elected in November 2022 and sworn into office in December 2022. Her team of nearly 1,000 legal professionals, including 500+ attorneys, carries out legal work for the City of Los Angeles at her direction and under her supervision. She is the first female City Attorney in L.A. history.