Slum Building Put Into Escrow Program
A slum building in the Westlake district of Los Angeles became the first to be placed under a punitive city program that takes rent money away from landlords and places it in a special bank account controlled by the city.
The Los Angeles City Council voted Tuesday to put a 36-unit property at 521 S. Union Drive, owned by Peter Berrocal of Mano Industries Inc., in the “rent escrow account program.” The program was authorized by the council last November.
“We have to send out a very stern warning to all property owners,” said Councilwoman Gloria Molina, who co-authored the ordinance with Councilman Zev Yaroslavsky, “that we intend to do business.”
The owner can retrieve the money, minus city administrative costs, once repairs are made.
The council gave a week’s reprieve to a second building at 1041 S. Westlake Ave., which was also considered for the program, to give owner Luis Guerrero time to complete repairs.
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