Hollywoodians Encouraging Rental Opportunities v. City of L.A.

CourtCalifornia Court of Appeal
DecidedJuly 22, 2019
DocketB285553
StatusPublished

This text of Hollywoodians Encouraging Rental Opportunities v. City of L.A. (Hollywoodians Encouraging Rental Opportunities v. City of L.A.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hollywoodians Encouraging Rental Opportunities v. City of L.A., (Cal. Ct. App. 2019).

Opinion

Filed 6/28/19; Certified for Partial Publication 7/22/19 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION THREE

HOLLYWOODIANS ENCOURAGING B285553 RENTAL OPPORTUNITIES (HERO) et al., (Los Angeles County Plaintiffs and Appellants, Super. Ct. No. BS163828) v.

CITY OF LOS ANGELES et al., Defendants and Respondents;

MILLENNIUM SETTLEMENT CONSULTING / 1850 NORTH CHEROKEE, LLC et al., Real Parties in Interest and Respondents.

APPEAL from a judgment of the Superior Court of Los Angeles County, John A. Torribio, Judge. Affirmed. Angel Law, Frank P. Angel and Ellis Raskin for Plaintiffs and Appellants. Advocates for the Environment, Dean Wallraff and Kathleen R. Unger for Affordable Housing Preservation Advocates, as Amicus Curiae on behalf of Plaintiffs and Appellants. Eviction Defense Network, Elena I. Popp and Sean Chandra for Los Angeles Tenants Union, Public Counsel, National Lawyers Guild, Western Center on Law and Poverty, Strategic Actions for a Just Economy, and Anti-Eviction Mapping Project, as Amici Curiae on behalf of Plaintiffs and Appellants. Remy Moose Manley, Sabrina V. Teller and Christina L. Berglund; Michael N. Feuer, City Attorney, and Oscar Medellin, Deputy City Attorney, for Defendants and Respondents. Jeffer Mangels Butler & Mitchell, and Matthew D. Hinks, for Real Parties in Interest and Respondents. _________________________

Plaintiffs and appellants Hollywoodians Encouraging Rental Opportunities (HERO), Sylvie Shain (Shain), and Max Blonde (Blonde) (sometimes collectively referred to as HERO) appeal a judgment denying their petition for writ of mandate. HERO’s petition sought to set aside actions taken by defendants and respondents City of Los Angeles, City Council of the City of Los Angeles (City Council), and Central Los Angeles Area Planning Commission (Commission) (collectively, the City) in approving a proposal by real parties in interest and respondents Millennium Settlement Consulting/1850 North Cherokee, LLC, Lesser Investment Company, L.P., and David Lesser (collectively, the owner) to convert a vacant 18-unit apartment building into a boutique hotel.

2 In this case involving the California Environmental Quality Act (CEQA) (Pub. Resources Code, § 21000 et seq.), 1 the essential issue presented is whether the City erred in failing to prepare an environmental impact report (EIR) to assess the loss of affordable housing and displacement of tenants that would result from the conversion of the former apartment building into a hotel. Because the building at issue had been withdrawn from the rental market years before the City commenced environmental review for the hotel project, we conclude there were no housing- related impacts or displacement of tenants for the City to address in an EIR. We also reject HERO’s other contentions and affirm the judgment denying the petition for writ of mandate. OVERVIEW OF CEQA “ ‘In CEQA, the Legislature sought to protect the environment by the establishment of administrative procedures drafted to “[e]nsure that the long-term protection of the environment shall be the guiding criterion in public decisions.” ’ [Citation.] At the ‘heart of CEQA’ (CEQA Guidelines, § 15003, subd. (a))[ 2] is the requirement that public agencies prepare an EIR for any ‘project’ that ‘may have a significant effect on the environment.’ [Citations.] The purpose of the EIR is ‘to provide public agencies and the public in general with detailed information about the effect which a proposed project is likely to have on the environment; to list ways in which the significant effects of such a project might be minimized; and to indicate

1 All unspecified statutory references are to the Public Resources Code. 2 The CEQA Guidelines are found at California Code of Regulations, title 14, section 15000 et seq.

3 alternatives to such a project.’ [Citation.] The EIR thus works to ‘inform the public and its responsible officials of the environmental consequences of their decisions before they are made,’ thereby protecting ‘ “not only the environment but also informed self-government.” ’ [Citations.]” (Friends of College of San Mateo Gardens v. San Mateo County Community College Dist. (2016) 1 Cal.5th 937, 944―945 (San Mateo).) Under “CEQA and its implementing guidelines, an agency generally conducts an initial study to determine ‘if the project may have a significant effect on the environment.’[ 3] [Citation.] If there is substantial evidence that the project may have a significant effect on the environment, then the agency must prepare and certify an EIR before approving the project. [Citations.] On the other hand, no EIR is required if the initial study reveals that ‘there is no substantial evidence that the project or any of its aspects may cause a significant effect on the environment.’ [Citation.] The agency instead prepares a negative declaration ‘briefly describing the reasons that a proposed project . . . will not have a significant effect on the environment and therefore does not require the preparation of an EIR.’ [Citations.] Even when an initial study shows a project may have significant environmental effects, an EIR is not always required. The public agency may instead prepare a mitigated negative declaration (MND) if ‘(1) revisions in the project

3 As relevant here, the environmental factors to be considered in an initial study include a project’s potential impact on population and housing, and specifically, whether the project would “[d]isplace substantial numbers of existing people or housing.” (Cal. Code Regs., tit. 14, § 15000 et seq., appen. G, § XIV.)

4 plans . . . before the proposed negative declaration and initial study are released for public review would avoid the effects or mitigate the effects to a point where clearly no significant effect on the environment would occur, and (2) there is no substantial evidence in light of the whole record before the public agency that the project, as revised, may have a significant effect on the environment.’ [Citation.]” (San Mateo, supra, 1 Cal.5th at p. 945.) Here, the City’s decision to adopt an MND rather than to prepare an EIR is the focus of this controversy. FACTUAL AND PROCEDURAL BACKGROUND 1. Events leading up to the City’s approval of the conversion of the subject property to use as a 24-room boutique hotel. The subject real property, located at 1850 North Cherokee Avenue in the Hollywood area of Los Angeles, is a now-vacant 18- unit apartment building built in 1939, which was subject to the City’s Rent Stabilization Ordinance (RSO) (Los Angeles Mun. Code (LAMC) § 151.00 et seq.). In 2009, the owner filed a land use application with the City to demolish the building and replace it with a 39-unit residential condominium project. In July 2009, the City Council adopted an MND pursuant to CEQA, finding that the condominium project would not have a significant effect on the environment. In May 2013, the owner filed a notice of intent to withdraw all 18 units from rental housing use pursuant to the Ellis Act. (Gov. Code, § 7060 et seq.) 4 By October 2013, all the rental units

4 The Ellis Act “prohibits local governments from ‘compel[ling] the owner of any residential real property to offer, or to continue to offer, accommodations in the property for rent or lease . . . .’ (Gov. Code, § 7060, subd. (a).)” (Small Property

5 had been vacated. The City then approved the building for demolition. In early 2014, however, the developer backed out due to a lack of financing, putting an end to the condominium project. In July 2015, the owner submitted to the City an application for the hotel project at issue in this appeal (the Project), seeking to convert the property into a boutique hotel with 24 guest rooms.

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