Officials Criticize Law That Allows Landlord to Evict 400 Tenants

In response to a threat by the owner of a 178-unit beachfront apartment building to evict nearly 400 tenants under the Ellis Act, the Santa Monica City Council and the city’s rent control board reignited criticism of the state law.

The evictions would make the apartment building the largest property removed from rental status under the 1986 Ellis Act, which allows landlords to get out of the rental business and makes the evictions legal.

Some tenants and rent board officials question whether the intent of the action is real or an attempt by the building’s owner to gain leverage in lawsuits they have filed against him.

If the evictions are successful, “it will be the death knell for Santa Monica,” rent board Chairwoman Susan Packer Davis said in an interview. “Every elected official in this city should form a united front to go to the state Legislature to say this Ellis Act is a monstrosity. It has created a horrible crisis.”

Mayor Dennis Zane reacted to the eviction plan by recommending that the city lobbyist be directed to seek changes in the law from the state Legislature. The City Council approved the request at Tuesday’s meeting.

“This egregious example of the abuse of the legislation ought to prompt a reaction from the council,” Zane said.

The council also directed the city staff to return as quickly as possible with a recommendation to increase the city relocation fees landlords must pay evicted tenants. Under a city relocation law, landlords are required to pay evicted tenants between $2,000 and $3,000, depending on the size of the unit.

Since the Ellis Act went into effect, 919 units in Santa Monica have been or will be removed from the city’s housing stock. Prior to the 178-unit Sea Castle Apartments, the largest rental property removed under Ellis was a 28-unit building, according to rent board Administrator Mary Ann Yurkonis.

The rent board will hold a special meeting Feb. 26 to discuss the effect of the Ellis Act on the city’s housing stock and on tenants.

Some tenants and city officials say the owner of the Sea Castle may be using the Ellis Act as leverage to settle disputes over rent.

The rent board is suing the owner over allegedly excessive rent levels. Meanwhile, the owner of the building is suing tenants to collect what he says is past-due rent, and the tenants are counter-suing over the rent level.