Prosecutors say the couple falsely claimed to live in a home in Panorama City so Alarcon could represent the 7th District, where that home is located.
Alarcon contends that he was renovating the older house and occasionally lived in the newer Sun Valley home owned by his wife.
A judge had dismissed the case in May, saying the district attorney's office failed to provide evidence favorable to the Alarcons, but prosecutors immediately re-filed the case.
The city councilman, who is facing 17 felony counts, says he's confident he'll be acquitted. His wife, Flora Montes De Oca Alarcon, faces six counts.
Alarcon is now running for a state assembly seat. He has served as the representative for Council District 7 since 2007.