THE LOS ANGELES LANDLORD TENANT COURT, WHICH BEGAN OPERATION IN JUNE 1977, CONVENES IN A DOWNTOWN MUNICIPAL COURT BUILDING AND HANDLES PRIMARILY CASES FROM THE SURROUNDING INNER-CITY COMMUNITY. FACTORS THAT INFLUENCED THE COUNTY'S DECISION TO ESTABLISH A SEPARATE HOUSING COURT ARE REVIEWED, AND THE POLITICAL DEVELOPMENT OF THE COURT IS TRACED. THE DESIGN AND IMPLEMENTATION OF THE COURT--ESTABLISHING ITS JURISDICTION, DECIDING HOW TO ALLOCATE AVAILABLE PHYSICAL RESOURCES, DETERMINING THE SCOPE OF THE JUDGE'S RESPONSIBILITIES, CHOOSING A JUDGE--ARE DESCRIBED. STEPS TAKEN TO DEAL WITH THE INITIALLY NEGATIVE RESPONSE TO THE NEW COURT, FROM BOTH LANDLORDS AND TENANTS, ARE NOTED. THE LOGISTICS OF COURT OPERATIONS ARE DISCUSSED, WITH EMPHASIS ON SPECIAL EFFORTS TO ASSIST LAY PERSONS WHO HANDLE THEIR OWN CASES. THE COURT'S INTRODUCTION OF NIGHT SESSIONS AND SETTLEMENT OFFICERS (VOLUNTEER ATTORNEYS WHO HELP LITIGANTS ARRIVE AT PRETRIAL SETTLEMENTS) IS NOTED, AS ARE PLANS TO DEVELOP A BENCH BOOK OF POLICIES AND PROCEDURES AND TO COOPERATE WITH A LOCAL LAW SCHOOL IN THE PROVISION OF FREE LEGAL ASSISTANCE TO INDIGENT LITIGANTS. A COPY OF THE STATEMENT PRESENTED BY THE LANDLORD TENANT COURT JUDGE BEFORE THE OPENING OF EACH SESSION IS INCLUDED. (LKM)