“Cracking Down on Illegal Vacation Rentals in Los Angeles: How City Officials Are Taking Action to Preserve Affordable Housing”

Los Angeles is gearing up to host the 2028 Summer Olympics, but city officials are facing a major challenge as they crack down on property owners illegally listing their homes as vacation rentals, depleting the city’s already limited housing supply.

The City Council’s housing and homelessness committee is exploring measures to address this issue, including adding inspectors, imposing stricter penalties, and requiring booking websites like Airbnb and Booking.com to use an electronic system similar to one in New York City that automatically rejects bookings at unapproved properties.

A recent investigation by Capital & Main and ProPublica uncovered over 60 rent-controlled buildings with units listed on booking sites, despite LA’s Home Sharing Ordinance prohibiting such stays in rent-controlled apartments. This misuse of rent-controlled units, which make up nearly 75% of the city’s rental market, undermines efforts to preserve affordable housing for residents.

The number of buildings with illegal listings is estimated to be much higher than reported, with the LA Housing Department suggesting that around 60% of the city’s short-term rentals in multiunit buildings are illegal. Despite this, enforcement has been lacking, with few violators receiving citations and fines due to a broken process.

Councilmember Nithya Raman, who chairs the housing and homelessness committee, emphasized the need for stronger enforcement to address the issue effectively. However, property owners, like freelance TV producer Joni Day, have pushed back against stricter rules, citing reliance on platforms like Airbnb to make ends meet.

Representatives from Airbnb and Booking.com did not respond to requests for comment on the city’s enforcement proposals. The dysfunction in LA’s home-sharing enforcement system has been attributed to priorities, staffing, and communication breakdowns between departments.

Efforts to streamline enforcement include establishing a single home-sharing task force, as suggested by Raman. Housing Department Director of Code Enforcement Robert Galardi highlighted the need for more resources to investigate the underground network of illegal vacation rentals.

Proposed penalties for violators range from $1,000 for first violations on small properties to $64,000 for third violations on larger properties. Additionally, a proposal from City Councilmember Bob Blumenfield would allow LA residents to sue property owners offering illegal short-term rentals and seek damages.

Activists monitoring home-sharing welcomed the city’s efforts to strengthen the Home Sharing Ordinance but emphasized the need for actual enforcement. As the housing and homelessness committee continues to develop proposals, city departments are expected to report back on implementation strategies.

In parallel, the committee has directed the Housing Department to provide annual reports on enforcement of the Residential Hotel Ordinance, aimed at preserving low-cost housing in residential hotels. The department received additional positions this year to enforce the ordinance following a previous investigation revealing the loss of housing units to tourist accommodations.

As Los Angeles navigates the complexities of regulating short-term rentals and preserving affordable housing, the city faces a critical juncture in balancing the needs of residents, visitors, and the housing market.