On November 17, 2022, members of the Hillside Villa Tenants Association and the 920 Everett Tenants Association traveled to the home of the Los Angeles Housing Departmentās general manager on the cityās West Side. The tenants, who live in Chinatown and organize with Chinatown Community for Equitable Development (CCED), have long been frustrated with the inertia of the cityās housing department (LAHD), so they staged a protest in front of the managerās home, demanding action. One of the Hillside Villa tenants spoke forcefully: āIf I donāt do my job, I will be removed from my workplace. I think we need the same for you. If you canāt do your job, just get the fuck out of there.ā
The 920 Everett building is one among dozens owned and operated by Victoria Vu and Jerome Fink. Vu and Finkās business model is typical for corporate landlords in Californiaās increasingly financialized housing markets: they purchase primarily rent-stabilized units through various LLCs in gentrifying areas; displace long-term tenants through cash-for-keys and/or harassment tactics; undertake shoddy, unpermitted, and often hazardous construction work; and rent out the renovated units at market rate, utilizing the legislative loophole provided by Californiaās Costa-Hawkins Rental Housing Act, which permits rent increases when tenants vacate their unit.
CCED documented these practices in the reportĀ Harassment for Keys, which tenants from 920 Everett and other Vu and Finkāowned buildings delivered to LAHD alongside countless complaints in July 2022. They insisted the city start holding predatory landlords accountable and protect tenants from harassment, retaliation, and uninhabitable living conditions ā demands tenants reiterated at the November protest in front of the managerās house.
The Hillside Villa Tenants Association, meanwhile, has been fightingĀ for yearsĀ to force the city to expropriate their building from their exploitative landlord, Tom Botz, who doubled and tripled rents after the buildingās affordability covenant expired in 2019. In May 2022, the tenants secured aĀ historic victoryĀ when the Los Angeles City Council voted unanimously to approve the funds to purchase their building.
Six months later, however, LAHD hasnāt even carried out an appraisal, the first step toward expropriation. Only after repeated actions and calls from tenants did LAHD finally file a petition with the city attorney to secure the appraiser access to the building. A hearing has been set for January 30, 2023 ā one day before the cityās pandemic-era eviction moratorium is set to expire, leaving tenants whoāve incurred significant rent debt as a result of Botzās predatory rent increases, and who must begin paying full rent starting February 1, vulnerable to eviction.
This six-month waiting period was entirely unnecessary, especially since Botz repeatedly indicated, including in May when his lawyer spoke before city council, that he was an unwilling seller, meaning the city would need to take legal action to secure access to the building. Alfredo Espinosa, who has lived at Hillside Villa since 1995, toldĀ Jacobin: āItās very frustrating, and itās very stressful. The owner raised our rent almost 300 percent. Thanks to the pandemic we have these eviction protections at the moment, but theyāre supposed to expire by the end of January. So we donāt know whatās going to happen after that. Things are not being done by the authorities and people are getting sick over here.ā
These examples demonstrate a pattern of willful neglect within the LAHD. The departmentās failure to enforce preexisting codes and procedures, as well as victories secured through collective action, jeopardizes the well-being and safety of tenants. It also legitimizes landlord mistreatment and exploitation, further skewing the power dynamics of a for-profit housing system that is already stacked against tenants.
In recent years, after persistent pressure from tenant associations and tenant advocacy groups, the municipal government has passed legislation meant to correct this power imbalance, for instance by giving tenants legal recourse against landlords and restricting short-term rentals such as Airbnb and Vrbo that contribute to rent increases and limit rental housing stock. But these legislative frameworks, such as Los Angelesās Tenant Anti-Harassment Ordinance (TAHO), which was passed in August 2021, are drastically underfunded or lack effective enforcement mechanisms, rendering them inconsequential. The impasse is illustrative of a liberal urbanism that prioritizes a veneer of progressivism over substantive structural change.
Municipal Priorities
Tenants from buildings across the city have toldĀ JacobinĀ about code violations, health and safety complaints, and rent stabilization ordinance (RSO) infractions that have gone unanswered by LAHD, even when tenants coordinate complaints to demonstrate patterns with specific landlords. Tenants who are being harassed by landlords ā often these are the same tenants ā are also met with inaction from the city, in spite of Los Angelesās TAHO. The TAHO is meant to prohibit landlords from harassing or retaliating against tenants, and makes violations of the ordinance a criminal misdemeanor or a civil violation punishable by fines or prison time.
So far, however, despite receiving nearly four thousand harassment complaints, LAHD has referred only ten cases to the city attorney, and few, if any, private lawsuits have been filed by tenants themselves. In part, asĀ Capital and MainĀ reported in September, this is because LAHD has lacked funding for the enforcement of TAHO (although LAHD toldĀ JacobinĀ their staffing capacity has recently expanded). But it also results from the way the ordinance was written: attorneys are not guaranteed payment if they win tenant harassment cases, making it nearly impossible for tenants who cannot afford to pay legal fees to find attorneys to take on their cases.
A TAHO complaint is usually resolved either through reclassification, for instance as code or RSO complaints, or by LAHD sending an advisory letter to the landlord reminding them of the regulations stipulated under TAHO before closing the case. This extremely limited enforcement is particularly egregious considering harassment is a fundamental part of corporate landlord practices, a primary strategy used to displace long-term tenants of rent-stabilized units who are then replaced with tenants who can afford market rate ā those affordable units permanently lost to the market.
The types of harassment used by corporate landlords and their employees (although certainly also by many so-called āmom-and-pop landlordsā) take various forms ranging from threatening tenants based on their immigration status, pursuing illegal evictions and rent increases; withholding services; threatening physical violence; calling the police on tenants; delaying or neglecting maintenance and repairs; and carrying out loud, invasive, often harmful construction work with the express purpose of antagonizing existing tenants. As such, systematically reclassifying complaints risks obfuscating patterns of what are in fact deliberate harassment tactics.
Sam Trinh, a tenant of notoriously abusive landlordĀ K3 HoldingsĀ (which recently changed its public name to Alpine LA Properties) and an organizer with the K3 Tenant Council, explained:
There is such a wide array of possibilities of what harassment is, but itās important to understand that corporate landlords like K3 will do whatever it takes to get tenants out. The tactics are so subtle sometimes ā and sometimes they mess up and itās very explicit. But, for instance, using renovations to get people out looks good enough on paper, and they can get away with it. Speaking from my own personal experience, Iāve lived with it for several months; the constant loud noises, the banging, knowing that they have caused pipes to burst, flooding, broken into walls. That makes me very anxious.
In Trinhās case, construction workers in the unit below cut a hole through the ceiling and into his bathtub frame. Trinh has filed multiple harassment complaints with the city, and each time LAHD sent a letter to K3/Alpine reminding them of the TAHO stipulations. When Trinh filed another harassment complaint this year, LAHD told him they had already sent advisory letters to K3/Alpine last year; case closed.
In the meantime, K3/Alpine has sent police officers to Trinhās building on multiple occasions to confront tenants, as well as threatened to do so via text. The landlord is currently seeking to evict Trinh and his neighbor (andĀ JacobinĀ contributor) Andrew Elrod, another tenant organizer with the K3 Tenant Council, for ānuisanceā after they led an action in July to block construction work in their building. Three months later, the LAPD arrested Elrod in his home after the district attorney filed criminal burglary charges for the same action.
These examples point to a clear escalation of harassment and retaliation tactics from landlords, emboldened by a housing department that does little more than send letters, and police and sheriff departments that act on landlordsā behalf, from carrying out evictions ā including a recentĀ militarized evictionĀ that tragically resulted in the tenant committing suicide ā to confronting or arresting tenants in their homes.
The casualties are tenants who are displaced or stuck in uninhabitable conditions that severely compromise their mental and/or physical health. For instance, K3/Alpine is denying one tenant, who suffers from severe asthma, access to an inspection report about black mold in their apartment that they need for their health insurance to cover further tests and treatment. Another K3/Alpine tenantās property manager left a dead rat in a bag with the tenantās name written on it outside their building after they complained about conditions in their unit. That tenant, terrified, ultimately moved out.
Elrod toldĀ Jacobin:
Tenants need the city attorney to bring criminal charges, to prosecute this criminal company. And until that happens, the business practices that companies like K3 rely on will continue. Thereās many more companies like K3 that see that you can in fact manage residential real estate by retaliating against tenants who try to enforce the building code and the rent stabilization ordinance and protect the habitability and affordability of their homes. Right now, landlords can enter tenantsā units unilaterally, without permission and without scheduling. They can order their staff to turn off tenantsā water. They can cancel all sorts of service contracts. They can make your home uninhabitable, and thereās no penalty.
As a result of inaction from both LAHD and their landlord, tenants at one K3/Alpine building, 1057 S Western Ave, have been withholding rent since May. Their demands include the reversal of coerced contracts, an end to systematic harassment, and addressing of habitability issues.
Enabling Abusive Landlords
The TAHO is currently one of the only tools available to regulate corporate landlords, and the fact that the city utilizes it to such a limited extent implicitly legitimizes landlordsā abusive business tactics, facilitating further consolidation of rental housing.
The LAHD stated in an email toĀ JacobinĀ that the housing department is āfully committed to preventing and enforcing against tenant harassment,ā but the fact remains that while corporate landlords have been increasing their market share of housing in Los Angeles, the city as a whole has reduced its investigative capacities.
As CCED point out in theirĀ report, Los Angeles previously had an interagency Slum Housing Task Force, founded in 1980. Although it was far from perfect, it successfully prosecuted landlords who committed repeated health and safety violations, several of whom went to prison. The task force, however, appears to have been defunded, then dissolved with no clear replacement. Meanwhile the cityās Home-Sharing Ordinance, which regulates short-term rentals and was passed in 2019 to help alleviate some of the pressure on the rental market, has been enforced so rarely that the city lost up to $302 million dollars in unassessed fines in the last year alone, according to aĀ recent study. (Airbnb, itās worth noting, is aĀ major sponsorĀ of the Olympic Games, which Los Angeles is slated to host in 2028.)
The cityās inaction, underfunding, and lack of enforcement reflects a seeming indifference to the consequences for the tenants of a hypercommodified and financialized housing sector, as well as an overriding desire to preserve the status quo at the municipal level. More pointedly, it reads as a concerted effort to limit tenant power.
This shouldnāt be surprising, considering the contents of the racist, homophobicĀ recordingĀ of three Los Angeles city councilmembers and the countyās Federation of Labor president that leaked in October, which drew national attention and led to the resignation of two of the politicians caught on tape. On the leaked recording, as members discuss redistricting of somewhat progressive Councilmember Nithya Ramanās district, which encompasses part of Koreatown, the centrality of real estate to urban politics is laid bare ā as is the threat of the emerging tenant movement.
Then council president Nury Martinez said, āIt serves us not to give her all of K-Town because that solidifies her rentersā district, and that is not a good thing for any of us.ā In other words, a councilmember beholden to tenantsā interests is a threat to the way the council operates. AsĀ Tracy RosenthalĀ writes of the scandal for theĀ New Republic: ā[It] forces a reckoning with the central fault line of power in the city, with which race intersects and from which it also distracts: real estate versus tenants.ā
JacobinĀ contributor Samuel Stein has described this mode of urban governance as āthe real estate state,ā capturing how governments, particularly municipal governments, align their actions with the interests of real estate capital and design policy to stimulate ever-increasing profits for developers, landlords, and speculators. The paradigm took root during deindustrialization, when manufacturing shifted away from urban centers while real estate and finance became the primary bases of capital accumulation. In 1970,Ā Henri LefebvreĀ characterized this transition in the following terms:
Real estate becomes the principal source for the formation of capital, that is, the realization of surplus value. As the percentage of overall surplus value formed and realized by industry begins to decline, the percentage created and realized by real estate speculation and construction increases.
Municipal policies strategically promote real estate speculation and profit maximization, and a stronger, more organized tenant movement threatens that objective ā especially in cases like Hillside Villaās push for expropriation, where tenants challenge the logic of for-profit housing itself. Although Hillside Villa tenants were able to force the city council to vote to purchase their building, every step of the process, even after the vote, has been littered with obstacles, dodges, delays, and unresponsiveness that have only been overcome by a persistent, organized tenant body.
This dynamic, of course, is not limited to Los Angeles or the United States. In Berlin, for instance, the Social Democrat-led government has persistentlyĀ attempted to avoidĀ implementing the landmark 2021 expropriation referendum, where nearly 60 percent of Berliners voted to expropriate corporate landlords that own more than three thousand units. However, a just-released preliminary report from the expert committee tasked with evaluating the feasibility of expropriation determined that the move is indeed legal and that the city is not obliged to pay market rate to landlords ā putting more pressure on the municipal government to enact this precedent-setting victory for tenants in Berlin.
Municipal governments should take drastic measures toward regulating landlords and holding them accountable ā including limiting corporate landlord market share, restricting vacancies, creating more transparency around property ownership, enforcing short-term rental housing ordinances, expanding and making permanent pandemic-era protections, and prosecuting landlords who harass tenants out of their homes or retaliate against tenants resisting their practices and organizing with neighbors. And tenants should continue to compel them to do so.
But recent history demonstrates that the liberal regulatory frameworks wonāt provide an alternative to the commodified, financialized housing system. Rather, their proponents will agree that the current system is broken, but do little to alter it in any meaningful way. The necessary change needs to come from organized tenants asserting their power, a phenomenon thatās growing in frequency ā with examples such as Hillside Villaās expropriation fight, K3 tenantsā ongoing rent strike, as well as the Veritas Tenants Associationās (VTA) recentĀ successful debt strikeĀ and just-launchedĀ contract campaignĀ to force their corporate landlord to rescind city-wide rent increases.
Brad Hirn, lead organizer with the Housing Rights Committee of San Francisco who works closely with the VTA, spoke toĀ JacobinĀ about the potential of securing transformative victories through collective action rather than at the legislative level:
In many ways, weāve cast tenants as this passive population that cannot understand their own power with regard to the wealth they create for the real estate industry. Instead, we think we need to get politicians and lawyers to protect this huge population of people in California and in the country ā that lawyers are the center of power. And theyāre not; tenants are the center of power because tenants pay rent. And if you become strike ready, and you figure out how to unite with your neighbors, and put a strategy together that hits the landlordās income ā hits the revenue for that company ā who knows what kind of leverage you will create? Because weāre so out of practice with strikes, we have no sense of how much leverage we could have.
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