City Attorney’s Office Settles Affordable Housing Enforcement Matters

September 30, 2026 6:15 PM

SANTA MONICA, Calif. (Sept. 30, 2026) - The Santa Monica City Attorney's Office has resolved two matters stemming from the Housing Division's audit of compliance with affordable housing agreements.

Under the settlement agreements, affordability protections for five rental units will be extended for a combined total of six years and one of the property owners will pay the City $20,000 to be used to support affordable housing.

As set forth in the settlement agreements, the City's allegations against the owners of the residential apartment buildings located at 1047 4th Street and 1537 15th Street included: failure to demonstrate affordable units were occupied by income-qualified tenant households of the required size, unjustified long-term vacancies in affordable units, failure to adequately verify tenant income eligibility, and failure to submit complete and accurate annual reports to the City.

Quest Properties, LP, the owner of the 1047 4th Street property, has agreed to the following:

• Payment of $20,000 to be used by the City to support affordable housing
• A five-year extension of the duration of the affordable housing requirements, including rent limits
• Mandatory notice to tenants regarding affordable housing requirements
• A management probationary period during which the City can require the owner to hire a City-approved third-party property manager if the owner violates affordable housing requirements

LA Urban Townhomes II, LLC, the owner of the 1537 15th Street property, has agreed to a one-year extension of the duration of the affordable housing requirements, including rent limits. The property owners did not admit liability in reaching final settlements with the City.

The Housing Division and City Attorney's Office actively audit and enforce the affordability requirements of the City's Below Market Housing Program, one of the primary sources of affordable housing in the City, especially for newer apartments which state law exempts from rent control.

"The City appreciates property owners' contribution to our efforts to fight homelessness and provide housing for all," City Attorney Heidi von Tongeln said. "But where bargained-for affordable housing benefits are not provided, our office will take enforcement action."

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