The Los Angeles City Council has passed a permanent ordinance that’s intended to ensure that low-rent residence hotels will either remain in place and available to poor residents of Downtown and other parts of the city or be replaced by similar housing in nearby locations.
The 15-member body voted unanimously on May 6 to approve the ordinance. 9th District Los Angeles City Councilmember Jan Perry sponsored the ordinance, which includes many of the same requirements as a stop-gap measure passed two years ago.
The new ordinance allows owners of residence hotels to demolish the establishments or convert them to higher-end developments only if they:
• Replace all of the building's affordable units in locations within a two-mile radius of the hotel.
• Pay a fee equal to 80% of the construction costs for new units.
• Convert hotels with more than 250 units to residences where 80% of units are set aside as “affordable” for 55 years.
Affordable housing units are typically set aside for tenants who make 60% or less of the median annual income in the region, currently $69,000 for a family of four and $49,500 for individuals. That means that families with annual household income of approximately $41,000 or less—and individuals who make $30,000 or less a year—might qualify for the affordable units.
The hotel owners would not have to satisfy the “one-for-one” requirements if replacement units include bathrooms and kitchens, are larger than the original units, and would not significantly decrease the city's housing stock.
Many of the residence hotels governed by the ordinance have common bathrooms for tenants and no kitchen facilities.
The Los Angeles Housing Department estimates there are 336 low-rent residential hotels in the city, combining for a total of 18,739 units. An estimated 75% of the units are located in the Downtown area, the Westlake district just west of the city’s center, and various neighborhoods on the Eastside.
“This ordinance is a positive step in the right direction and will help us preserve and rehab this important affordable housing stock,” said Perry, who represents a territory that includes most of Downtown and sections of South Los Angeles (see related story on Housing for Vets, Inside Stories).
