Yes, there was a backpackers hostel on Miller Drive in the Hollywood Hills area. It was called The Magic Castle Hostel, located at:
7067 Miller Dr, Los Angeles, CA 90046
It sat near the intersection where La Cienega Boulevard meets Sunset Boulevard, heading north. The hostel was popular in the 1990s but is now permanently closed.
If you stayed there around 1992, you were part of its heyday as a budget-friendly base for travelers exploring LA.