Videos of the party spread through social media, with dozens of young people gathering indoors and outdoors without wearing masks or maintaining social distancing.
Mayor Alicia Weintraub told ABC News on Thursday she heard about the party through complaints from residents, who said they were seeing "tons of people walking on the street unmasked and then gathering."
"I was very upset that somebody would hold such an outrageous gathering in our community," Weintraub said. "We're trying to do everything we can to get our numbers down and keep our community safe, and something like this just does the opposite."
A representative for Paul did not immediately respond to a request for comment from ABC News. Paul also has not responded to the backlash on social media, except for retweeting a post from another internet personality, which read "f--- you, [Jake Paul]."
In one of the videos of the party, people could be seen crowded together in what appeared to be a living room, drinking while music played. Another video showed dozens of people standing closely on a staircase.
Weintraub said the city is looking into "all of our options" regarding penalties for Paul, but added she couldn't yet provide details on those.
She noted that as of Wednesday night, the city of Calabasas adopted a $100 fine for not wearing a mask.
Paul is no stranger to controversy. In early June he was charged with criminal trespassing and unlawful assembly after he allegedly took part in looting and riots, which occurred during widespread peaceful protests against police brutality and systemic racism. Paul allegedly entered the Scottsdale Fashion Square mall when it was closed.
He was identified to police through tips and videos sent to officials.
Paul denied looting and said he wanted to "share our experience and bring more attention to the anger felt in every neighborhood we traveled through."
Weintraub has not spoken directly to Paul about the party, but had a message for all young people: "We are never going to get out of this mess if we don't all act responsibly. We all have to do our part and that means keeping social distance and wearing masks when around other people."