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Report claims Ellis Act threatens small rent-controlled buildings

Report claims Ellis Act threatens small rent-controlled buildings

11/17/2017 9:49 AM | Margaret Fulton (Administrator)

Speculators are seizing on Santa Monica’s booming real estate market and cashing in by evicting long term tenants to rake in profits, according to a new report on Ellis Act evictions from rent-controlled apartments commissioned by the City Council.

The report said multi-family buildings are often replaced by single-family homes or condos with fewer units, hurting the city’s overall housing stock.
“It is clear that speculation is playing a role in the Ellis Act withdrawals occurring in Santa Monica,” reads the Nov. 2 report from Keyser Marston Associates.

“Nearly 30% of Ellis Act withdrawals are filed by applicants that have owned the property for less than six months. Other major rent control cities in California have experienced the same phenomenon.”
There were 23 Ellis Act withdrawal notices filed in 2016, affecting 90 units, according to the RCB’s annual report. Nearly half of those units were either already vacant or owner occupied by the time the notice was filed.