Chapter Five: Serial Killers
Maybe I shouldn't have been so surprised when the phone rang and Chief Inspector Frank Bush of Building and Safety was on the line telling me he had bad news. The house that became a tenement was sold again.
"You're kidding," I said.
"No," he said, "It was sold last month to something called Fidelity Investments LLC. A gift deed. We're starting all over again."
For the third time in six months, the house at 19953 Haynes St. in my tract of modest bungalows was flipped again. Nady Mahdavi to Claudia Perez to Fidelity Investments, what was the connection? Why did the stated value jump from $500,000 to $700,000 in the Mahdavi-Perez sale? Why was the Perez-Fidelity sale a gift deed? Who was going to do something about this?
It turns out my champion was the same person who last week denied anything was wrong, none other than my old pal Councilman Dennis Ziine.
Zine had gotten off his high horse and demanded action. He wanted Building and Safety to find out how a single-family house had become two three-bedroom apartments and a studio apartment with three kitchens and four bathrooms.
And he wanted the department and the City Attorney to come up with "recommendations to strengthen the City's enforcement power of citations and liens on properties that are in violation of applicable codes, including specific proposals to prevent the transfer of title of a property before any such violations are fully corrected."
Suddenly, there was action. "We issued a substandard order today," Bush said, which he explained means it's been cited as an illegal conversion. It's no longer just about construction without a permit. This is serious and will be dealt with, he assured me.
But it will take time.The former owners were off the hook, the hearing was canceled, the process that had already dragged on for four months while two tenants moved in and people who lived in the neighborhood for 50 years were talking about moving out would have to start again with a notice and a hearing.
By the time Bush called I had learned the residents of Tract 17111 were not alone. Illegal conversions were going on all over the city and little or nothing was being done about it.
How dumb could I be asking questions about who's killing my neighborhood when there's killers of neighborhoods operating all over L.A., serial killers.
Maybe I shouldn't have been so surprised when the phone rang and Chief Inspector Frank Bush of Building and Safety was on the line telling me he had bad news. The house that became a tenement was sold again.
"You're kidding," I said.
"No," he said, "It was sold last month to something called Fidelity Investments LLC. A gift deed. We're starting all over again."
For the third time in six months, the house at 19953 Haynes St. in my tract of modest bungalows was flipped again. Nady Mahdavi to Claudia Perez to Fidelity Investments, what was the connection? Why did the stated value jump from $500,000 to $700,000 in the Mahdavi-Perez sale? Why was the Perez-Fidelity sale a gift deed? Who was going to do something about this?
It turns out my champion was the same person who last week denied anything was wrong, none other than my old pal Councilman Dennis Ziine.
Zine had gotten off his high horse and demanded action. He wanted Building and Safety to find out how a single-family house had become two three-bedroom apartments and a studio apartment with three kitchens and four bathrooms.
And he wanted the department and the City Attorney to come up with "recommendations to strengthen the City's enforcement power of citations and liens on properties that are in violation of applicable codes, including specific proposals to prevent the transfer of title of a property before any such violations are fully corrected."
Suddenly, there was action. "We issued a substandard order today," Bush said, which he explained means it's been cited as an illegal conversion. It's no longer just about construction without a permit. This is serious and will be dealt with, he assured me.
But it will take time.The former owners were off the hook, the hearing was canceled, the process that had already dragged on for four months while two tenants moved in and people who lived in the neighborhood for 50 years were talking about moving out would have to start again with a notice and a hearing.
By the time Bush called I had learned the residents of Tract 17111 were not alone. Illegal conversions were going on all over the city and little or nothing was being done about it.
How dumb could I be asking questions about who's killing my neighborhood when there's killers of neighborhoods operating all over L.A., serial killers.
I was disturbed by what Bush told me: The City Attorney's Office won't
take action against anyone who no longer owns the property. It didn't
make sense.
So I emailed City Attorney.Rocky Delgadillo's chief flack about it and two days later his deputy answered back, saying he had "forwarded all of your narratives on the suspected conversion...to our chief deputy who has in turn forwarded them on to our Housing Enforcement Unit within our Criminal and Special Litigation Branch for review."
I guess that's why they call it a bureaucracy. The gears turn slowly but at least they were turning now. I felt like we were getting somewhere. I'm used to working in a world where the deadline for action is now. Get the facts, tell the story, let the world know. That's how you get action.
And that was the case here, when the world knows what's going on, you get action. Zine's office sent me a timeline they had constructed and a message from the councilman, saying he sympathized with the neighborhood that this "has been a nuisance and is in violation of the law."
His office and Building and Safety were "diligent" in dealing with this problem within the law that protects property owners, he said.
"Since this case has been brought to my attention, I realize that these circumstances point out that there is a loophole in current Building and Safety regulations. The property has changed ownership multiple times, alerting me to the fact that property owners can evade citations and subsequent fines."
So he's drafted a motion for the council to take steps "to preserve and enhance the safety, appearance, and economic stability of our neighborhoods" by closing the loopholes, specifically by preventing the transfer of property unless all code violations are corrected.
That's a step in the right direction. But motions are a dime a dozen and regulations don't mean anything unless they are enforced with prompt action and tough penalties. And I'm still no closer to solving the mystery of who's killing my neighborhood.
So I emailed City Attorney.Rocky Delgadillo's chief flack about it and two days later his deputy answered back, saying he had "forwarded all of your narratives on the suspected conversion...to our chief deputy who has in turn forwarded them on to our Housing Enforcement Unit within our Criminal and Special Litigation Branch for review."
I guess that's why they call it a bureaucracy. The gears turn slowly but at least they were turning now. I felt like we were getting somewhere. I'm used to working in a world where the deadline for action is now. Get the facts, tell the story, let the world know. That's how you get action.
And that was the case here, when the world knows what's going on, you get action. Zine's office sent me a timeline they had constructed and a message from the councilman, saying he sympathized with the neighborhood that this "has been a nuisance and is in violation of the law."
His office and Building and Safety were "diligent" in dealing with this problem within the law that protects property owners, he said.
"Since this case has been brought to my attention, I realize that these circumstances point out that there is a loophole in current Building and Safety regulations. The property has changed ownership multiple times, alerting me to the fact that property owners can evade citations and subsequent fines."
So he's drafted a motion for the council to take steps "to preserve and enhance the safety, appearance, and economic stability of our neighborhoods" by closing the loopholes, specifically by preventing the transfer of property unless all code violations are corrected.
That's a step in the right direction. But motions are a dime a dozen and regulations don't mean anything unless they are enforced with prompt action and tough penalties. And I'm still no closer to solving the mystery of who's killing my neighborhood.
Ron Kaye is the former editor of the Los Angeles Daily News where he spent 23 years helping to make the newspaper the voice of the San Fernando Valley and fighting for a city government that serves the people and not special interests.
Twice in recent years, Los Angeles Magazine listed Kaye among the city’s most influential people, specifically in the area of politics. Kaye has been variously described in the media as the “accidental anarchist,” “the Patrick Henry of the San Fernando Valley” and a “passionate populist.” He is now committed to
carrying on his crusade for a greater Los Angeles as an ordinary citizen. Previously, Ron worked at the Los Angeles Herald Examiner,
Associated Press, Cleveland Plain Dealer and The Australian as well as papers
in Fairbanks, Alaska and Yakima, Wash. He also wrote for Newsweek magazine, The Guardian in London and the National Enquirer.
You need to study the Govt code that dictates that the old property owners are not liable for things happening after they no longer own the property. Otherwise, you are spot on.
From all the commotion that goes on in this city, I wonder just how such types of problems are handled by other cities? Do they have the same problems that take on a life of their own, like we do? Or, is it that they have the very same thing, but people are less vocal in complaining?
L.A. is often considered a "leader" in some trends, but other cities might have a better way to handle some of the same problems we have. Has the council, etc., considered this, or is "ego" an issue?
I think Greig Smith is involved in this up to his eyeballs. That next-door facility to me has been there at least five years. At first the city blamed the state. The State, no, they are not the ones who license LA properties, it is the city. About April I talked with Greig Smith about it and he assured me that licensing that "facility" is in order and that they are legal.
Ron,as I read your series on what is going on and Zine's reaction to it all - and, pardon me, for saying "Greig, I told you so" but the whole thing is a "deal" and illegal as it can be.
The whole west end of the San Fernando
Valley is also being victimized.
Wake up, everyone, show up at the Rally on Monday. Not only must we take back our city, but we must get different people to take charge
because there is a gang working in city hall and it needs cleaning up. Once I have been lied to, I do not say "oh, well", I fight back and so do all of us.
Let's take back our city. Let's SLAP some sensability into the system. Further more, I think jail time is in order for some of these leaders for their flagrant disregard of the City Charter. I think we need a recall election in 2009 if these operatives don't repair the damage they have needlessly caused us all.
Theodora Howell, West Hills
It's too bad everyone can't have a Ron Kaye in their neighborhood. But it is possible for every community in this city to unite behind his leadership. Hopefully, the rally will be a catalyst for an organization that can have a real impact on how this city operates. Given the political dynamic that protects incumbents and anoints their allies, it's almost impossible to change the players overnight, but it is possible to change the agenda. Ron proved that his week without ever leaving the block.
NO RECALLS are NEEDED FOR:
1ST E D R E Y E S
3RD D E N N I S Z I N E
5TH J A C K W E I S S
7TH R I C H A R D A L A R C O N
9TH J A N P E R R Y
11TH B I L L R O S E N D A H L
13TH E R I C G A R C E T T I
15TH J A N I C E H A H N
ALL ARE UP FOR RE-ELECTION NEXT YEAR.
We NEED PEOPLE to RUN AGAINST them !
And we need a theme. Something like PACC, People Against City Corruption, but catchier.
Here's another story idea for you Ron. I've been pondering this for a while.
Find out if some people who are selling their homes as short sales are investors who refinanced these homes recently---say less than 6-12 months ago---and by refinancing they pulled all the cash out, then put it on the market for less than they owe on it.
Why would they do this?
1. To use the home as an ATM.
2. Because if they get the bank to agree to write off $30,000 to $100,000 of debt they only have to pay taxes on that amount. That may be OK with many investors, especially if they can write it off as a business loss.
3. Because they don't care if selling the home as a short sale is bad for the neighborhood.
4. Because they don't care if the bank loses money and bank employees lose their jobs as a result of all these losses. It is "every man for himself" among many of these home investors. They view this as a "victimless crime", much the way those who rip off auto insurance companies see that as a victimless crime.
5. Because there is no law against it, to the best of my knowledge.
You might want to inform your contacts in city hall about this issue too. Perhaps they'd like to write a law against such practices?
So much for the great King George experiment of "free markets".
He probably means a quit claim deed. The person probably still owns the house, only indirectly taxwise. Very sneaky. Get the names of the corporations principals, the Fidelity Investments LLC corporate officers. You'll probably find the same person, Claudia Perez, "owns" Fidelity Investments LLC.
The Secretary of State Business Programs Division, in Sacramento, can get you that information when you submit their "Business Entities Records Order Form". Call them (916)657-5448 to get them to fax/mail you the form. They'll answer your request, by mail, in about 10 days. There is a fee of a few bucks for the State's effort.
The house is still being used as three units? I don't understand what is meant by they are "starting all over again". Your original complaint, as stated on the blog, was that the house was being used as a three-unit lot in a R1 zone. The lot's current owners are violating zoning restrictions. The Dept. of Building and Safety are responsible to enforce zoning codes.
You may want to add the words "zoning violation" to your complaint. It can be done online,
http://permitla.org/csr/
View the current complaints on this property,
http://www.permitla.org/ipar/list_csr.cfm?STRNO=19953&DIR=W&STRNA=HAYNES&SUFF=ST
This is a citywide problem. Zoning enforcement has collapsed for two primary reasons.
a) It is seen as politically incorrect and unfriendly to illegal immigrants.
b) At the street level there are too many folks working for the city who are receiving favors to landlords like this.
Effective enforcement should is pretty simple. Record the notice of zoning violation which puts any purchaser on notice, order the property vacated if compliance is not achieved. Of course this again is seen as politically incorrect.
Unfortunately Mayor Tony and the gang have too many influential friends. If the owner/developer does not have a relationship with city hall through the back door there are plenty of attorneys with the private numbers of those high enough up the food chain to make things happen.
The cancerous effects of these illegal conversions and of the conversions of space within single family dwellings ( garages to bedrooms) is destroying neighborhoods all over the city.
Good luck in your efforts.