L
eo Pustilnikov, a Beverly Hills investor who bought 17 Skid Row properties for $10 million, has been accused by tenants of letting his holdings deteriorate. The sale was meant to improve conditions after the nonprofit owner, Skid Row Housing Trust, faced collapse. However, tenants claim that Pustilnikov's cost-cutting measures have led to worsening conditions, including filthy bathrooms, broken appliances, and trash-filled hallways.

    Tenants at multiple buildings report problems such as dirty shared spaces, unusable kitchens, and an increase in trespassers and potential violence. Mayor Karen Bass expressed concern about the service cuts, stating that she wants to ensure residents are safe and receive necessary services. The City of Los Angeles had allocated $40 million to maintain the portfolio while it was under receivership.

    Pustilnikov claims he inherited high security and janitorial costs from the previous owner, which were unsustainable. He has reduced security coverage to night shifts during the week and weekends, but plans to install cameras and expand trash rooms to improve conditions. Mark Loranger, CEO of Chrysalis, a nonprofit janitorial contractor, said that properties with shared spaces require constant servicing, which is costly but necessary.

    Pustilnikov argues that the previous security and janitorial costs were too high and that he is investing in sustainable solutions. City housing officials inspect the properties weekly and are aware of resident concerns. Regulatory agreements between the city and Pustilnikov require him to provide weekday janitorial services at certain properties, but a city spokesperson declined to comment on whether officials believe Pustilnikov is violating the contract.