Arnel Administration Co. has agreed to settle allegations it illegally withheld safety deposits, the California legal professional normal introduced Friday.
The transfer got here practically eight years after a Occasions story detailed stories from tenants who alleged that the key Orange County landlord deducted a whole bunch of {dollars} for unneeded cleansing and repairs even when residents left their models spotless.
“For a lot of renters, particularly these from lower-income backgrounds, affording a safety deposit entails quite a lot of sacrifice,” Atty. Gen. Rob Bonta mentioned in a press release. “We’re holding Arnel accountable.”
Arnel has 19 condo complexes in Southern California, with all however one in Orange County. The opposite is in Los Angeles County.
In 2016, the corporate — then owned by billionaire political energy dealer George Argyros — was the fifth-largest landlord in Orange County.
It’s unclear what Argyros’ present position is with Arnel. The corporate and its legal professional didn’t return messages in search of remark.
Below California regulation, landlords can not withhold a deposit to wash an condo left in the identical situation as when a tenant moved in, or to pay for fixing abnormal put on and tear.
In accordance with the legal professional normal, Arnel charged for unneeded cleansing and repairs and handled a part of its tenant’s safety deposit as nonrefundable irrespective of the situation of the condo.
The announcement Friday wasn’t the primary time Arnel has confronted related allegations. Along with tenants The Occasions spoke with in 2016, Arnel settled allegations it illegally withheld safety deposits in 2001.
The state workplace took over that case after Orange County Dist. Atty. Tony Rackauckas — who had accepted marketing campaign money from Arnel — was broadly criticized for taking a private position in his workplace’s investigation.
That settlement paved the way in which for Argyros to grow to be ambassador to Spain, an appointment that had stalled amid the controversy.
As a part of the brand new settlement, Arnel should pay $1.15 million, with $650,000 going to authorized assist organizations in Orange and Los Angeles counties. The legal professional normal’s workplace additionally mentioned Arnel can be “topic to extra stringent injunctive phrases to discourage future misconduct.”
