CALIFORNIA—
California attorney general Rob Bonta announced June 12, that he filed a lawsuit against property management companies owned by rental-housing tycoon Swaranjit “Mike” Nijjar, and his family.
The lawsuit, following a three-year investigation, accuses Nijjar’s companies, commonly known as PAMA Management, of violating numerous California laws by renting unsafe units with roach and rodent infestations, leaking roofs, overflowing sewage, and other problems.
The Nijjar family owns and manages over 22,000 rental units statewide, primarily in low-income neighborhoods in Los Angeles, Riverside, San Bernardino, and Kern Counties — but also spanning up to Sacramento and San Joaquin Counties.
“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,” said Bonta.
The complaint references a 2016 incident where an infant died in a fire at one of PAMA’s mobile homes in Kern County — which was not permitted for human occupancy.
Bonta goes on to say that enough is enough.
PAMA operates under numerous names
According to the news release, code enforcement officers routinely cite the Nijjar family’s properties for violating minimum habitability standards.
In recent years, the family’s companies have settled dozens of lawsuits alleging habitability defects and unsafe conditions.
Nijjar’s companies continue acquiring properties, ignoring repair requests, and operating under numerous names, leaving tenants confused about their landlord.
PAMA Management, also operates under the names I E Rental Homes, Bridge Management, Equity Management, Golden Management, Hightower Management, Legacy Management, Mobile Management, Pro Management, and Regency Management.
In late 2022, the California Department of Justice investigated PAMA, uncovering widespread habitability and tenant rights violations.
Endangers tenants through poor maintenance
The attorney general’s lawsuit claims PAMA endangered tenant safety through poor maintenance, with common issues including:
- water intrusion from leaking roofs and outdated plumbing;
- structural damage caused by water intrusion and deferred maintenance;
- malfunctioning plumbing, including surfacing sewage; and
- cockroach and rodent infestations.
PAMA opts for cheap fixes, hires unskilled staff with minimal training, and lacks a system to track or complete maintenance requests, according to Bonta.
He said PAMA is aware of these issues and knows their operations lead to uninhabitable conditions, yet these business practices have persisted for years.
Deceptive lease terms
The lawsuit claims Nijjar’s companies used leases with unlawful, deceptive terms that attempt to invalidate tenants’ rights guaranteed by law.
These rights include the right to sue the landlord, to deduct repair costs from rent, and to expect a duty of care to prevent injury or personal property damage.
Nijjar’s companies also broke California law by not providing Spanish translations of leases and documents, despite targeting Spanish-speaking tenants with bilingual ads and staff.
Discrimination against tenants with Section 8 Vouchers
The lawsuit further alleges that Nijjar’s companies discriminate against tenants or applicants with Section 8 vouchers.
In California, it is unlawful to discriminate against a tenant or applicant based on their source of income, including Section 8 rental assistance.
Management companies related to PAMA illegally misled voucher holders, falsely claiming that there is a waiting list for units or no units are available despite renting to non-voucher holders.
Unlawful rent increases
The attorney general’s lawsuit also alleges violations of California’s Tenant Protection Act (TPA) at over 2,000 units, where Nijjar’s companies shifted certain mandatory utilities costs — which used to be paid by the landlord — onto their tenants.
For tenants protected by the TPA, it is unlawful for landlords to ignore the rent cap when requiring tenants to pay new or increased fees or utility charges.
The complaint alleges these companies use a ratio utility billing system, known as “RUBS,” to charge tenants for shared utilities, forcing them to pay uncontrollable costs.
The combination of these new utility fees and annual rent increases resulted in total increases of up to 20% — more than double the TPA’s rent cap.
Furthermore, Nijjar’s companies violated the TPA by omitting required lease disclosures about rent increases and limitations on evictions.
The lawsuit alleges PAMA issued unlawful eviction notices to many tenants and has violated real estate licensing rules since 2020.
Learn more about tenant rights
Bonta’s complaint seeks penalties, full restitution for financial harm to tenants, disgorgement of ill-gotten gains, and injunctive relief barring Mr. Nijjar, PAMA, and related companies from continuing these unlawful business practices.
Anyone – including current or former tenants – who has information that might be relevant to this case are encouraged to share their stories with Bonta’s office by going to oag.ca.gov/report.
