Major Landlords Sue L.A. for $100 Million over Eviction Moratorium
GHP Management Corp. and several other companies owned by developer Geoffrey Palmer are suing the City of Los Angeles for $100 million over its eviction moratorium, saying the policy has resulted in massive losses to the firm.
The suit further alleges that the plaintiffs cannot find help from banks, who will not refinance mortgages on properties that fall under the city’s eviction moratorium.
The Biden administration and Democrats in state and local governments have cast such moratoria as measures to protect the poor, but they could hurt the poor in the long run by making it less likely that developers will build housing in Democrat-run cities, or that they will invest in low-income housing at all.
Los Angeles Times — which took care to note that Palmer is a Republican donor and Trump supporter — reports:
Palmer’s companies also contend that they will have little success in recouping losses from their tenants after the one-year grace period that follows the end of the city’s COVID-19 emergency.
“The city orchestrated a regulatory regime designed to provide a compulsory and de facto rent forgiveness to be foisted on landlords throughout the city,” the lawsuit states.
Palmer has tangled with the city before, persuading a three-judge panel in 2009 to strike down rules requiring developers near downtown to provide a specific percentage of affordable housing in their residential projects.