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Correspondence - Item 21
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Correspondence - Item 21
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Agenda Packet
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21
Date
4/2/2024
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People v. Venice Suites, LLC, 71 Cal.App.5th 715 (2021) <br />286 Cal.Rptr.3d 598, 21 Cal. Daily Op. Serv. 11,565, 2021 Daily Journal D.A.R. 11,835 <br />case were concluded, the City enacted the Home Sharing <br />Ordinance, which addresses short-term rentals in private <br />homes. There is no contention the Home Sharing Ordinance <br />applies to 417 OFW. <br />In 2014, Lambert approached the City's planning department <br />about entitlements to specifically permit short-term rentals <br />at 417 OFW. He was instructed to proceed with the <br />planning department and California Coastal Commission <br />for such entitlements. As a result, Lambert submitted a <br />Mello Act Determination of Affordable Units Application 2 <br />for 417 OFW, stating he sought "conversion to transient <br />occupancy residential." The planning department accepted <br />the application to change 417 OFW "from an (E) 32- <br />Unit Apartment Building to a 32-room transient occupancy <br />residential bldg. in the Venice specific plan area and dual <br />jurisdiction coastal zone." That application was ultimately <br />denied. <br />On January 26, 2015, the City issued a notice and order to <br />comply, which asserted Venice Suites effected an "[i]llegal <br />change of occupancy from `R-2 Occupancy' residential <br />occupancies primarily permanent in nature (apartments) to <br />`R-1 Occupancy' residential occupancies primarily transient <br />in nature (hotel/motel) ...." The notice ordered Venice Suites <br />to correct all violations by March 4, 2015. <br />On June 17, 2016, the Los Angeles City Attorney's Office <br />filed a civil law enforcement action on behalf of the People <br />against Venice Suites, seeking injunctive relief, equitable <br />relief, and civil penalties for the use of 417 OFW as an <br />illegal hotel or illegal TORS. The People alleged four causes <br />of action: 1) violation of the LAMC, 2) public nuisance, 3) <br />unfair competition under FABusiness and Professions Code <br />section 17200, et seq., and 4) false advertising practices under <br />Business and Professions Code section 17500, et seq. <br />*722 As to the first cause of action, the People alleged <br />a violation of LAMC section 11.00, which provides: "In <br />addition to any other remedy or penalty provided by this [Los <br />Angeles Municipal] Code, any violation of any provision of <br />this Code is declared to be a public nuisance and may be <br />abated by the City or by the City Attorney on behalf of the <br />people of the State of California as a nuisance by means of a <br />restraining order, injunction or any other order or judgment in <br />law or equity issued by a court of competent jurisdiction." <br />Specifically, the People alleged Venice Suites violated the <br />following LAMC sections by operating 417 OFW as an illegal <br />hotel or TORS: 12.10(A), which specifies the allowable <br />uses in a R3 zone; 12.21(A)(1), which only allows the <br />uses permitted in the applicable zone and after securing the <br />requisite permits; 12.26(E) and 91.109.1, which require a <br />certificate of occupancy to be issued before a building may <br />be occupied; 91.8105.1, which requires a building permit be <br />issued; and 91.8204, which prohibits changes to the use of a <br />**603 building unless it is made to comply with the LAMC. <br />The People further alleged Venice Suites failed to comply <br />with an order issued pursuant to LAMC section 91.103.3. The <br />second cause of action for public nuisance in violation of Civil <br />Code sections 3479 and 3480 was predicated on the same <br />violations of the LAMC as the first cause of action. <br />The parties filed cross -motions for summary judgment or <br />summary adjudication, disputing whether Venice Suites <br />violated the LAMC. The primary dispute involved whether <br />short-term occupancy of an Apartment House located in <br />an R3 zone is prohibited under the LAMC. The People <br />interpreted the LAMC to exclude short-term occupancy of <br />Apartment Houses, relying on provisions of the Zoning Code <br />(LAMC, § 11.00, et seq.), the RSO (LAMC, § 151.00, et seq.), <br />and the Transient Occupancy Tax Ordinance (TOT; LAMC, <br />§ 21.7.1, et seq.). <br />[1] Venice Suites argued the Zoning Code controlled and <br />did not regulate the length of occupancy in an Apartment <br />House. Short-term rentals were permitted because none of <br />the provisions relating to an Apartment House in the Zoning <br />Code specified a length of occupancy. Neither did the <br />relevant land use plans regulate length of occupancy for an <br />Apartment House. Venice Suites cited to testimony to that <br />effect from the persons designated by the People to be the <br />most knowledgeable on the subject. Venice Suites also relied <br />*723 on a report issued by the City that concluded short- <br />term rentals were not prohibited under the RSO.3 <br />The trial court granted Venice Suites's motion for summary <br />adjudication as to the first and second causes of action for <br />violation of the LAMC and public nuisance, and it denied both <br />motions as to the third and fourth causes of action for unfair <br />business practices and false advertising. <br />The People subsequently dismissed their third and fourth <br />causes of action without prejudice and appealed the resulting <br />judgment. <br />WESTLAW © 2023 Thomson Reuters. No claim to original U.S. Government Works. 5 <br />
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