State Sues SoCal Real Estate Tycoon, Alleging Widespread Tenant Exploitation
Introduction to the Lawsuit
Alleging widespread and egregious violations of housing and tenant laws, Atty. Gen. Rob Bonta sued Southern California real estate tycoon Mike Nijjar in Los Angeles County Superior Court on Thursday. In the lawsuit, Bonta accused Nijjar, family members and their companies of subjecting tenants to vermin infestations and overflowing sewage, overcharging them and violating anti-discrimination laws.
Background on Nijjar’s Holdings
The suit says that Nijjar is one of California’s largest landlords, operating multibillion dollars in holdings. Nijjar family companies, commonly known as PAMA Management, own 22,000 rental units, primarily in low-income neighborhoods in Southern California. The suit follows a more than two-year California Department of Justice investigation into Nijjar’s holdings, Bonta said.
Conditions at PAMA Properties
“PAMA and the companies owned by Mike Nijjar and his family are notorious for their rampant, slum-like conditions — some so bad that residents have suffered tragic results,” Bonta said in a statement. “Our investigation into Nijjar’s properties revealed PAMA exploited vulnerable families, refusing to invest the resources needed to eradicate pest infestations, fix outdated roofs and install functioning plumbing systems, all while deceiving tenants about their rights to sue their landlord and demand repairs.”
Demands for Relief
Bonta is seeking penalties against Nijjar and his family business entities, restitution for tenants, disgorgement of ill-gotten gains and injunctive relief barring Nijjar and PAMA from continuing unlawful business practices. A representative for Nijjar said he forcefully rejects the claims in the lawsuit. “The allegations in the complaint are false and misleading, and its claims are legally erroneous,” Nijjar attorney Stephen Larson said in a statement.
History of Nijjar’s Real Estate Empire
Nijjar’s real estate empire has long been on authorities’ radar. In 2020, LAist detailed wide-ranging dangerous conditions at Nijjar’s properties dating back years, including a fire at a PAMA-owned mobile home in Kern County that resulted in the death of an infant. The mobile home was not permitted for human occupancy, according to the report and Bonta’s lawsuit. Two years later, The Times wrote a series of stories about Chesapeake Apartments, a sprawling 425-unit apartment complex in South L.A., where Nijjar’s tenants complained of sewage discharges, regular mold and vermin infestations and shoddy repairs.
Prior Attempts at Accountability
Prior attempts at accountability for Nijjar and his companies have been spotty and ineffective. After the 2016 mobile home fire that killed the infant in Kern County, the California Department of Real Estate revoked the licenses associated with Nijjar’s company at the time. In response, Nijjar and family members reorganized their business structure, the suit said. The L.A. city attorney’s office resolved a nuisance abatement complaint against PAMA at Chesapeake in 2018, only for the widespread habitability problems to emerge.
Allegations of Exploitation
The lawsuit alleges that the habitability problems at PAMA properties are “ongoing business practices” — the result of decisions to make cheap repairs rather than necessary investments in maintenance, the use of unskilled handymen, lack of staff training and failure to track tenant requests. “Nijjar and his associates have treated lawsuit after lawsuit and code violation after code violation as the cost of doing business and have been allowed to operate and collect hundreds of millions of dollars each year from families who sleep, shower, and feed their children in unhealthy and deplorable conditions,” Bonta said.
Specific Violations
Besides tenants’ living conditions, the suit alleges Nijjar and PAMA have induced residents into deceptive leases, discriminated against tenants on public assistance programs and issued unlawful rent increases. The suit contends PAMA’s leases attempt to invalidate rights guaranteed under law, including the opportunity to sue and make repairs the landlord neglected and deduct these costs from the rent.
Conclusion
The lawsuit against Mike Nijjar and PAMA Management marks a significant step towards addressing the widespread exploitation of tenants in Southern California. The allegations of slum-like conditions, deceptive practices, and discrimination highlight the need for stringent enforcement of housing and tenant laws. As the case progresses, it will be crucial to ensure that justice is served and that tenants receive the protections they deserve.
FAQs
Q: Who is Mike Nijjar and what is PAMA Management?
A: Mike Nijjar is a Southern California real estate tycoon, and PAMA Management is his family’s company, which owns 22,000 rental units primarily in low-income neighborhoods.
Q: What are the allegations against Nijjar and PAMA Management?
A: The allegations include subjecting tenants to vermin infestations and overflowing sewage, overcharging them, violating anti-discrimination laws, and inducing residents into deceptive leases.
Q: What is the California Department of Justice seeking in the lawsuit?
A: The Department of Justice is seeking penalties, restitution for tenants, disgorgement of ill-gotten gains, and injunctive relief to stop Nijjar and PAMA from continuing unlawful business practices.
Q: Have there been prior attempts to address the issues with Nijjar’s properties?
A: Yes, there have been prior attempts, including a nuisance abatement complaint resolved by the L.A. city attorney’s office in 2018, but the problems persisted.
Q: What is the significance of this lawsuit?
A: The lawsuit marks a significant step towards addressing the widespread exploitation of tenants in Southern California and highlights the need for stringent enforcement of housing and tenant laws.
