Tenants Criticize $70,000 Settlement From Landlord

While city officials Tuesday hailed a $70,000 settlement against a Santa Ana landlord, leaders of a tenants’ rent strike expressed disappointment and said the action could “send a message” to other apartment owners that they won’t face jail time for substandard housing.

The settlement involved the city’s first major case against an Orange County landlord with substantial property in slum neighborhoods. Carmine Esposito was charged with 70 misdemeanor counts relating to conditions at his West Brook Street apartments but pleaded guilty to only one as part of the agreement.

Many tenant leaders had said they wanted Esposito to be prosecuted to the letter of the law. But Santa Ana City Atty. Ed Cooper viewed the agreement as “a victory in the sense that he (Esposito) pleaded guilty to at least one count and the city received a fair reimbursement for its time spent enforcing housing laws.”

But attorney Richard Spix, who recently filed 105 lawsuits against Esposito on behalf of the striking tenants, said a jail term “is what they basically promised the community.” Still, he said, “I applaud the city for getting some money out of him. I hope they turn some of it back to the code enforcement program.”

Esposito’s attorney, Raymond Utin of Santa Ana, said $70,000 was an “excessive” compromise for his client, who was targeted by the city’s code enforcement program as an example to other landlords.

“A deputy city attorney stated that he was going to make an example of (Esposito) in the city’s first big case,” Utin said.

In addition to the $70,000, Esposito must pay $5,000 in court costs. He agreed to a $500 fine for the single misdemeanor count of violating the city’s uniform housing code and will pay a penalty assessment of $350.

Sees Deterrent

Spix said he thinks the settlement might help to prevent a recurrence of the conditions, which included rat and cockroach infestations, deteriorated stairways and exposed electrical wiring.

“Absolutely. But it’s a minimal deterrent because many landlords can treat that as just another cost of business,” he said. “I’m really concerned that it’s sending a message that, as long as they gather up enough of a reserve, they don’t have to worry about being charged.”

Esposito was placed on one year’s informal probation. Under terms of the probation, he cannot violate any city housing laws during the 12 months.

Utin noted that because the city’s code enforcement program is under way, it has become “fashionable” to prosecute landlords. He agreed that slum housing is a problem and said that, at times, uncooperative landlords should be prosecuted.

“But it’s a big socio-political problem. Of course, fixing up a few apartments for Hispanics or minorities needs to be done but doesn’t even approach the tip of the iceberg of the solution. It doesn’t have anything to do with improving salaries, jobs and limiting discrimination.”

Renovates Buildings

Utin said Esposito spent hundreds of thousands of dollars to renovate six apartment buildings on Brook Street, where a citywide renter’s rebellion began almost a year ago. He has been granted certificates of occupancy on three of the buildings, and work is continuing on the others.

“We even had a (Santa Ana) building inspector testify that it was a magnificent job done because Carmine went way beyond what repairs had called for,” Utin said.

Santa Ana originally had filed a 95-count complaint against Esposito and several partners in March. When the criminal counts were filed, they were hailed as part of the city’s 18-month-old crackdown on slum housing and served as a signal to other property owners that Santa Ana wouldn’t tolerate owners who neglect their property.

Also named as defendants were Esposito’s wife, Marian K. Esposito, and Dalfranco Lucidi, Walter J. Lucidi and Enrice Lucidi, all of Villa Park. They were all accused of violating Santa Ana’s uniform housing code.

Thomason ordered the Lucidis to pay $2,000 to the city.

“Our investigation indicates that the major partner was Mr. Esposito and not the others,” Cooper said, explaining the lower figure.

Times staff writer Andy Rose contributed to this story.