Residential Hotel Ordinance Input Notes
The residential hotel ordinance released on March 20, 2008 is strong in many ways.
However, after review by community supporters, there are five core changes needed.
(Ordinance language changes bolded)
1. “Affordable Housing” definition Section 47.73 (page 2)
(a) Affordable Housing Project. A housing development project with a governmentimposed regulatory agreement that has been recorded with the Los Angeles
County Recorder, or which shall be recorded within 6 months of the Claim of
Exemption filed pursuant to Section 47.76 of this Code, guaranteeing that all of
the residential hotel units will be affordable to very low income households,
with a minimum of 50% of those affordable to extremely low-income
households. “Very low and extremely low income households” is defined in
accordance with California health and Safety Code Sections XXXX and
XXXX.
Alternatively, affordable housing should not be exempt from the ordinance and
should be required to be Comparable Units, as currently defined in the draft
ordinance.
Reasoning: The majority of residential hotel tenants have incomes at 25 - 35% of
median, so a residential hotel that was aimed at 60% median income (lower income,
exempted in the draft ordinance) would displace the existing tenants permanently. We
must have equally strong protections in affordable housing developments as the draft
ordinance provides for private market conversions/demolitions.
2. Residential Hotel Unit Status Determination Section 47.75 (page 5)
(c)(3): The owner has the burden of proving by a preponderance of the evidence that
the claimed unit have been tourist units since October 11, 2005.
Reasoning: We believe this is just an oversight. Residential Unit is already defined as
that which was occupied as a primary residence on October 11, 2005. Otherwise a
residential hotel could have unlawfully converted while the ICO was in effect, and be
rewarded with an exemption.
3. Reduction in Units Section 47.78 (page 9)
(a)(1)(i) c): Reduction of units is limited to 25% of original units, with any
additional loss requiring replacement as defined in Section 47.78 (a)(1).
Reasoning: As written it is not clear to developers what the requirements are. Residential
Hotel developers, such as Skid Row Housing Trust, SRO Housing and Little Tokyo
Service Center have found that a 25% reduction is sufficient to upgrade hotels.
4. Affordable Housing Trust Fund Section 47.78 (page 10)
(b): The funds deposited in the Affordable Housing Trust Fund pursuant to the
provisions of this Article shall be used to create replacement of comparable units.
Reasoning: There is no definition of “replacement units” but there is a definition of
“comparable units,” therefore the first sentence should be changed. Otherwise, the
sentence has no legal meaning.
5. Right of First Refusal Section 47.79 (page 10)
(b): Right of First Refusal. Within 60 days of the issuance of a certificate of
occupancy for units constructed pursuant to section 47.78(a)(1), the owner shall first
offer to rent a comparable unit to tenants how are evicted from residential hotels
pursuant to……..
Reasoning: This ensures the unit offered is affordable to the tenant and not just offered.