Authorities are facing intense scrutiny as it has been revealed that a low-income apartment building has been illegally converted into a hotel, now charging the city an astonishing $4,000 per month for rooms.
This alarming situation raises critical concerns regarding transparency and accountability within the LA City Council, particularly amidst proposed changes allowing direct gifts from lobbyists.
️ What’s the Story?
Investigative reporting from ProPublica and Capital & Main has uncovered a widespread pattern in Los Angeles: dozens of buildings legally designated as residential hotels—intended for low-income, elderly, or disabled Angelenos—have quietly been marketed and operated as short-term tourist hotels, in violation of city law.
According to investigators, 21 such buildings—totaling over 800 rooms—were identified advertising nightly rates on travel sites like Booking.com, without undergoing required legal conversion procedures Reddit+2ProPublica+2Reddit+2.
At The American, a historic Arts District residential hotel, tenants were displaced often via buyouts, and the owner converted the space into a boutique lodging option—charging up to $209/night—without legal clearance or paying required housing replacement fees planetizen.com.
Enforcement Failures
Despite a 2008 ordinance designed to prevent the conversion of affordable housing, enforcement has been minimal:
Enforcement Failures
Despite a 2008 ordinance designed to prevent the conversion of affordable housing, enforcement has been minimal:
Over a 15-year period, LA issued citations for just 17 residential hotel violations, and only 4 of the 21 illegal hotels received any warnings Los Angeles Times+10ProPublica+10Reddit+10.
In many cases, building owners denied inspectors access—forcing the Housing Department to seek administrative warrants. These required warrants were rarely obtained, and inspectors often didn’t follow up after issuing citations.
Costs & Impact
The failure to enforce protections has contributed to displacement: tenants who once paid $500–650/month found themselves homeless or living in unstable housing scheerpost.com.
The City missed out on replacement housing fees, which could exceed $10 million per conversion planetizen.com.
The crisis comes amid Los Angeles’ homelessness emergency, where every lost affordable unit delays relief efforts planetizen.
Who’s Involved
Private owners of residential hotels turned them into tourist accommodations (e.g., The American, H‑Hotel, Studio Lodge, Central Inn, Top Hat Motel) Los Angeles Times+9ProPublica+9Reddit+9.
Tenant activists and unions (like Union de Vecinos and LA Tenants Union) have protested conversions, evictions under the Ellis Act, and subdividing apartments into overcrowded shared rooms in places like Boyle Heights abc7.com+1CBS News+1.
City officials and advocates have publicly recognized enforcement staffing issues and begun new investigations, including fines and warning letters to 17 of the buildings previously identified Reddit+1ProPublica+1.
What’s Next
Mayor Karen Bass and city Housing Department leadership have called for stronger enforcement and pledged to investigate all 21 properties identified in the reports Reddit+1planetizen.com+1.
Tenant groups and housing advocates are pushing for stronger penalties to deter landlords from violating the residential hotel ordinance, including repeated enforcement and legal action Reddit+2ProPublica+2Reddit+2.
Why It Matters
This scandal highlights a disturbing failure: illegal conversions of low-cost housing to tourist hotels without legal clearance, combined with spotty enforcement. It reflects a crisis of both displacement and regulatory inaction at a time when affordable housing in Los Angeles is desperately needed.
