Tenants from two affordable-housing buildings in an apartment complex in Beverly Grove are being evicted at the end of the week, despite protests and rallies.

Steve Luftman, a Flores Street resident, has been vocal about the pending evictions. (photo by Luis Rivas)

The nine-unit apartment buildings, located in the 100 block of North Flores Street, are owned by Matthew Jacobs, co-managing partner of Bulldog Partners, LLC. Jacobs is also the chairman of the California Housing Finance Agency (CalHFA), a state agency that helps provide affordable housing.

Additionally, tenants from an eight-unit apartment building in the 700 block of North Edinburgh Avenue in the Fairfax District, also owned by Jacobs, are also being evicted and have until next month to vacate their units.

Steve Luftman has been a Flores Street resident for 17 years.

“When I saw that he was also the chair of the board of directors [for CalHFA], I saw the hypocrisy of that,” Luftman said.

Luftman and the rest of the residents at the Flores Street apartment buildings were first served with an eviction notice on Feb. 8 under the Ellis Act, which was enacted in the 1980s enabling landlords to sell their property if they are “going out of business.”

According to Larry Gross, executive director of the Coalition for Economic Survival (CES), Jacobs and others are abusing the law.

“Really, the intent of [the Ellis Act] was to provide an out for small landlords … who wanted to go out of the rental business. The law has been totally corrupted by speculators,” Gross said.

Additionally, Gross has suggested residents to contact Gov. Brown and ask him to remove Jacobs from his position, Gross said.

Jacobs is within his legal rights to evict all his tenants and demolish the property to replace it with new housing.

“But we feel morally, he’s out of step by using [the Ellis Act],” Gross said. “These evictions are causing tremendous hardships to many of those tenants living in those buildings, such as seniors and long-time tenants. Lives are being disrupted and…longtime tenants are not finding affordable housing in the neighborhoods.”

According to Luftman, a Mid-City West Community Council member who advocated against “mansionization”, Jacobs plans to build multi-unit housing with units significantly above the current rental cost. Luftman pays $1,800 per month for a two-bedroom apartment.

“People are destroying affordable housing in the city. It’s wrong. They’re using the guise of the Ellis Act to do it,” Luftman said.

Although several residents at the Flores property have already left, Luftman is not sure whether or not he will disregard the eviction notice and stay.

“I haven’t decided yet if I’m going to do that. We love this neighborhood. We love this building. It would be horrible to destroy it,” he said.

According to Mike Schuster, a resident of the Edinburgh Avenue apartment building, he and other tenants have until July 15 to move out. They were first served an eviction notice in March.

“I’m feverishly looking for a place that’s affordable,” Schuster said.

As part of the eviction, all residents are being given funds to assist in their moving expenses.

Tenants who have been there less than three years will receive $7,700. Tenants who have been at either of Jacobs’ properties longer will receive $10,200. Disabled and senior tenants will receive anywhere from $16,350 to $19,300 depending on the number of years at the building and income.

Jacobs is obligated to compensate the tenants, according to the Los Angeles Housing and Community Investment Department.

But for Schuster, it’s still difficult to find affordable housing.

“I’m hoping new places pop up. That’s all I can do, look for a place. It’s helpful that we get some funds for this … For me, it’s more about frustration than fairness. [Jacobs] make[s] millions where we just get an extra [$7,700],” Schuster said.

Neither Jacobs, nor representatives from his company, Bulldog Partners, LLC, responded to requests for comment.

However, Melissa Flores, spokesperson for CalHFA, said the agency has no involvement in Jacobs’ private development business. He is an appointed member of a public board.

“The California Housing Finance Agency has a long history of supporting affordable housing for low-to-moderate income homebuyers and renters. As the chairman of the board, Jacobs has fully supported the mission of the agency by providing oversight to increase access to affordable housing for Californians. CalHFA provides financing for the development of affordable housing. We also provide programs to assist homebuyers with the purchase of a home,” Flores said.