FOR IMMEDIATE RELEASE: November 3, 2023

LOS ANGELES, CA –  The Southern California Housing Rights Center (“HRC”) announced today the settlement of a federal lawsuit on behalf of the organization and 16 households who claimed that their landlord, K3 Holdings, LLC (“K3”), forced out longtime Latinx families from their rent-controlled apartments in the Koreatown and Highland Park neighborhoods of Los Angeles, CA in violation of fair housing and landlord-tenant laws.

Filed in the Los Angeles Federal District Court in February 2022, the complaint in Southern California Housing Rights Center v. K3 Holdings LLC, Case 2:22-cv-00697, alleged that K3 acquired older apartment buildings predominantly occupied by Latinx families for gentrification by misusing the cash-for-keys process, violating the Los Angeles tenant anti-harassment ordinance, and discriminating against tenants based on national origin and familial status. Plaintiffs claimed that after K3 acquired rent-controlled apartment buildings, the landlord immediately started unpermitted construction and withheld repairs. Plaintiffs allege K3 demanded that longtime tenants, mostly Latinx families, accept “cash for keys” agreements or face eviction and misrepresented to tenants that their building was slated for demolition. Plaintiffs also allege that once K3 displaced a family from a building, the landlord renovated the vacated unit, rebranded the buildings, and advertised the apartment at a higher rental rate, exclusively online, and only in English.

K3 maintains that it agreed to settle the case to avoid costly and protracted litigation and that it is a responsible real estate owner, operating with integrity, and ensuring that all residents are treated fairly. K3 states that it is dedicated to addressing resident concerns promptly and in a manner that fosters a positive and inclusive living environment for all residents and to provide affordable housing options to tenants of all backgrounds.

Under the terms of settlement, K3 will pay a global amount of $2,200,000, inclusive of Plaintiffs’ damages and attorneys’ fees and costs, and has agreed to take several remedial steps to address the discriminatory claims including:

• Providing all current and future tenants literature in English and Spanish that explains their rights under federal, state, and local fair housing and landlord/tenant laws, including the Los Angeles Tenant Anti-Harassment Ordinance.

• Attending annual trainings on anti-discrimination laws and the Los Angeles Rent Stabilization Ordinance (“RSO”).

• Offering at least 10% of their units at a rental rate priced for Section 8 tenants.

• Advertising all of their apartments for rent in Spanish on www.elclasificado.com and including the phrase “families with children welcome” in all future rental advertisements.

• Restricting construction within apartment buildings to 8am-6pm, Monday through Friday, absent special circumstances.

• Providing literature to tenants in Spanish and English—at least seven days before making a cashfor-keys offer—that explains the tenant's fair housing and RSO rights, that accepting a cash-forkeys agreement is completely voluntary, that their building is not being demolished, and that the tenant’s rights will not be affected if they refuse a cash-for-keys offer to move out.

• Paying for a neutral building inspector to survey each Plaintiff’s apartment and generate a list of repairs that K3 will complete.

• Barring a K3 employee who Plaintiffs complained about from soliciting cash-for-keys agreements from tenants.

The Housing Rights Center and the 16 households were represented by: Rodney Leggett and Zack Frederick of the Housing Rights Center in Los Angeles; Claudia Medina of the Medina Law Firm, a Los Angeles law firm that specializes in tenant rights litigation; and Christopher Brancart, assisted by Haley Parsley, of Brancart & Brancart, a Pescadero, California law firm that specializes in fair housing litigation on behalf of Plaintiffs.

K3 was represented by Charles Harris and Lauren Becker of Lewis Brisbois Bisgaard & Smith, LLP.

The Housing Rights Center is a non-profit organization established in 1968 to actively support and promote equal opportunity and freedom of residence to all persons without regard to their race, color, religion, gender, sexual orientation, national origin, familial status, disability, marital status, ancestry, age, source of income, or other characteristics protected by law. The Center engages in activities— including outreach/education, investigation/testing and legal advocacy—to identify barriers to fair housing in Los Angeles and Ventura Counties and to help counteract and eliminate discriminatory housing practices.
 

If you believe you have experienced discrimination in housing based on your disability, or any other protected characteristic (such as race, nationality, religion, familial status, and more), contact the Housing Rights Center for free counseling at 1(800)-477-5977. To request a workshop for your organization, please email outreach@housingrightscenter.org. For more resources, visit HRC’s website and follow HRC on Facebook, Twitter, and Instagram.

Download a copy of the full press release in English and Spanish here.