The property on North Sierra Bonita Avenue burned down on Thanksgiving.
People who live nearby say homeless individuals camp out on the property and use it as a drug den - before the fire and even after.
During a City Council meeting days after the fire, angry residents demanded answers about the property, with some saying they've seen trespassers and have heard screaming, yelling and fighting from the property.
Residents share concerns with charred home in West Hollywood; say homeless using it as 'drug den'
"We are affectionately calling it the hell house now. It has its own nickname," said West Hollywood resident Stefanie Lahart, who lives on the same street as the troubled home.
On Monday, the city told Eyewitness News that it issued a "Notice and Order to Demolish Unsafe Structures" to the property owner. The city says the owner has already hired private 24/7 on-site security.
The owner has until Jan. 5 to obtain a demolition permit and complete said demolition.
"Additionally, if the owner does not comply with the issued Notice and Order, the City of West Hollywood will pursue a nuisance abatement on the property. This is a legal process that allows the City of West Hollywood to access private property and perform the work needed to bring the property into compliance," a city representative said in a statement to ABC7.