The Ellis Act Took 120 Rent-Stabilized Units From West Hollywood. Commissioners Are Asking Questions

West Hollywood lost 120 rent-stabilized units in roughly two and a half years. The properties were demolished, the lots are still empty, and there’s no deadline requiring anyone to build anything to replace them.

That was the takeaway from what Leona Rollins told the Rent Stabilization Commission on April 23.

Rollins is the City’s Rent Stabilization Manager. She said 36 rent-stabilized properties were withdrawn from the market under the Ellis Act between 2020 and 2025. But most of that didn’t happen over five years. The City froze Ellis Act applications at the start of the COVID-19 pandemic in spring 2020 and didn’t resume accepting them until fall 2023. All 36 properties, all 120 units — gone in about two and a half years.

As of April 18, she said, no new Ellis Act applications had come in for 2026. She’s starting to see a downward trend.

The Ellis Act is a California state law. It lets property owners exit the rental market entirely. It overrides local rent stabilization protections. Once a unit’s pulled under the Ellis Act, it’s gone from the rent-stabilized housing stock permanently. The City can’t stop it.

Nothing Was Built

Image | WeHoTV

Commissioner Agassi Topchian asked how many of those 36 demolished properties had been rebuilt.

None.

“Several of these properties remain as empty lots,” Rollins said. “As of today, those properties were demolished. There was nothing that was actually replaced there.”

California law doesn’t require a property owner who exits under the Ellis Act to rebuild on any timeline. Density bonuses and other state incentives exist. But when they use them is entirely up to them.

That’s separate from the 10-year right of first refusal that displaced tenants receive. If a property is ever redeveloped, former tenants have a decade to claim first right to return. The owner, though, has no corresponding deadline to build anything at all.

Topchian said that was troubling. Tenants are gone. The units are gone. The lots sit empty. The City can’t make anyone build.

736 New Units — Not a Replacement

Image | City of West Hollywood Staff report

During the same period, West Hollywood added 736 inclusionary housing units through new development. On paper, that’s more than six times the 120 units lost.

It’s not a substitute.

Inclusionary units are priced on Area Median Income levels. Those fluctuate. They’re available to very low, low, and moderate income households only. And they’re dependent on new development happening at all — which requires land, financing, and someone willing to build.

Rent-stabilized units serve a different population. Long-term tenants, many elderly and on fixed incomes, pay well below current market rates. Studios in West Hollywood now average between $2,200 and $2,300 a month. One-bedrooms run $3,200 to $3,300. Two-bedrooms average around $4,000. Tenants who’ve been in stabilized units for years pay significantly less than any of those numbers.

“Inclusionary housing units are not one-to-one replacements for rent-stabilized units,” Rollins said.

The Count May Be Higher

Commissioner Kimberly Copeland said the 120-unit figure probably undercounts the real loss.

Properties where tenants were already evicted under Ellis Act provisions — but where nothing’s been demolished or built yet — aren’t included in the tally. Rollins confirmed that.

Copeland also raised buyouts. When a new owner buys a rent-stabilized building and pays tenants to leave, the unit resets to market rate. No Ellis Act filing required. Rollins said the City tracks buyout agreements — owners have to submit them, the City reviews and approves them, and tenants have 30 days to back out. She didn’t have the buyout numbers on hand. She said she’d bring them to a future meeting.

Copeland pointed to one recent West Hollywood project: eight rent-stabilized units demolished, one inclusionary unit built in their place. Net loss of seven. The project was approved before a state law took effect requiring one-for-one replacement of demolished rent-stabilized units. Projects approved before that law aren’t subject to it. And there’s no deadline requiring them to break ground.

“Unfortunately,” Copeland said.

This is the second straight meeting at which the commission has pressed for data on what West Hollywood has lost. At the March 26 meeting, commissioners directed Rollins to pull five years of demolition and replacement numbers, including before-and-after rent comparisons. The April 23 Ellis Act report was the direct response.

Displaced tenants are entitled to relocation packages. Those classified as low income, senior, or disabled receive higher amounts. Ellis Act displaces also get a 10-year right of first refusal if the property is eventually redeveloped and go to the top of the waitlist for inclusionary housing units as they come available.

“The whole purpose of that,” Rollins said, “is that people that want to live, work, and go to school in the City of West Hollywood should have the opportunity to continue to live, work, and go to school in the City of West Hollywood.”

3 2 votes
Article Rating
About Brian Holt
Managing Editor, WEHOonline. Brian is a 25-year West Hollywood resident. He served as Executive Producer at KFI, KYSR and ABC News Radio and is the founder of the national radio and podcast network CHANNEL Q. He lives with his husband on WeHo’s Eastside. Email confidential tips, story ideas, and op-ed submissions to brian.holt@wehoonline.com.​​​​​​​​​​​​​​​​

View All Articles

Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

5 Comments
Newest
Oldest
Inline Feedbacks
View all comments
CHLOE ROSS
CHLOE ROSS
23 days ago

Fascinating! How exactly does something this important slip out of view??

Common Sense
Common Sense
23 days ago
Reply to  CHLOE ROSS

Accidentally on purpose.

Alan Strasburg
Alan Strasburg
22 days ago
Reply to  Common Sense

Follow the campaign contributions! They have been used to fund a pattern of lies in support of developers.

Common Sense
Common Sense
21 days ago
Reply to  Alan Strasburg

A very distinct trackable pattern began shortly after WeHo became incorporated.

david
david
23 days ago

How many times does city staff not come with the answers that should be easy to know? A city founded on protecting residents they sure have dropped the ball and allowed affordable housing to diminish. The Ellis Act did so much damage. I believe the El Mirador, at Fountain and Sweetzer, used that to remove everyone only to renovate with no units being affordable. All high end