Los Angeles City Planning Director Vince Bertoni approved the conversion of a 1920s bungalow court in East Hollywood from ten rental units to nine small lot houses, a decision that disregards opposition from Councilmember Hugo Soto-Martinez and concerns about the loss of affordable housing, according to a determination issued in February 2026.
The property, located at 4061-4069 1/2 West Melrose Avenue, consists of single-story structures between Madison and Virgil Avenues. Melrose Ten, LLC, owns the site and intends to subdivide the land under the city’s Small Lot Subdivision Ordinance, a process that does not require demolition or modern construction, according to filings with the Los Angeles Department of City Planning. The decision follows a public hearing in September 2025 where tenants and advocates voiced concerns about the potential for the units to be converted into higher-priced, non-rent-controlled housing or used as short-term rentals.
Advocates, including Esotouric, raised alarms about the potential for similar conversions to erode the city’s stock of multi-family bungalow courts, arguing that such buildings are particularly vulnerable to being transformed into lucrative, individually-owned homes or boutique hotels. During the September hearing, concerns were raised that the Small Lot Subdivision Ordinance could be exploited to remove affordable units from the market. Councilmember Soto-Martinez submitted a letter of opposition, but his concerns were ultimately ignored by Bertoni’s office.
This marks the second bungalow court in Council District 13 to face a similar proposed conversion. Tenants at 1463-1469 Scott Avenue in Echo Park previously voiced similar concerns. The decision regarding the Melrose Avenue property has prompted questions about the balance of power between the City Planning Department and the City Council, as well as the potential for unelected officials to override the wishes of local representatives and community members.
The bungalow court was built in 1923 on a third of an acre in Virgil Village and was listed in 2023 for $2.1 million, or $211,500 per unit, according to a Marcus & Millichap marketing brochure. Another small lot subdivision is proposed nearby at 627 North Juanita Avenue. Aaron Belliston, president of BMR Enterprises, leads Melrose Ten, LLC, the company behind the proposed conversion.
The decision regarding the Melrose bungalow court comes as the demolition of the landmarked Barry Building is scheduled for a final vote by the full City Council on March 4, 2026. Advocates are urging councilmembers to “call special” the matter for additional public comment and debate, and to support an appeal filed by Angelenos for Historic Preservation. The fate of the Barry Building remains unresolved.
