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Home / News / Politics / LA law to require hotel developers to replace lost housing

LA law to require hotel developers to replace lost housing

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The City Council Friday approved an ordinance that would require developers of new hotel properties to replace any permanent housing lost in the building process.

Council members voted 13-0 in favor of the Responsible Hotel Ordinance, co-authored by Council President Paul Krekorian, the Unite Here Local 11 hospitality workers union and representatives of the hotel industry. It’s intended to replace a ballot initiative sponsored by the labor union, which was set to appear on the March 2024 ballot.

The ordinance still needs Mayor Karen Bass’ signature, according to Krekorian’s office. The ballot proposition is expected to be withdrawn before a Dec. 8 deadline to rescind ballot measures, officials said.

Council members Nithya Raman and Heather Hutt were absent during the vote.

The ordinance includes provisions to bolster public oversight over short-term rentals, hotels and other properties, and increase the supply of interim housing available to the city.

Hotel developments will be required to obtain a permit from the Department of City Planning. The process will also involve public review of a proposed development’s impact on the existing housing supply and require developers to replace any housing that would be demolished or otherwise lost in a neighborhood.

Under the ordinance, the city will create a voluntary registry in which participating hotels would notify the city of vacant rooms that can be made available for interim housing.

In addition, hotels, short-term rentals and motel owners would be required to obtain a police permit for operation. Additionally, owners and operators will be screened for prior criminal activity or any history of creating a public nuisance, such as so-called “party houses.”

Some opponents expressed concern with the permit process, which they say will create a burden on operators.

The ordinance is backed by Unite Here Local 11, members of the hotel industry and city leaders.

Nayeli Gomez, a worker for Courtyard Residence Inn for over nine years and a member of Unite Here Local 11, previously said she helped the union collect more than 120,000 signature for the ballot initiative.

“We understand firsthand that our city is experiencing an unprecedented housing crisis, and working downtown has become a challenge more and more,” Gomez told committee members during public comment.

According to Gomez, the new ordinance “meets the moment” and it will protect the housing that she and her fellow union members “desperately need.”

The ballot initiative, called the “Hotel Land Use, Replacement Housing, and Police Permit Requirements; Program Placing Unhoused Individuals in Vacant Hotel Rooms,” had similar measures as the ordinance the council approved, but it would have required hotels to use vacant rooms for interim housing for unhoused people.

The council ordinance faces some growing opposition motel owners, and from homeowners who use their homes for short-term rentals. Many have expressed concern with the police permit process.

Vanessa Johnson, an AirBnB host, said earlier that short-term rentals should not be included in the ordinance.

“We are not hotels. We don’t open to the public. I mean this is unfair to us,” Johnson said. “Most of us, as senior citizens, as an extra burden and costs of getting another permit just puts us out of business altogether. We are doing this to hold on to our homes and to keep our house over our head.”

Krekorian has acknowledged that he’s heard the concerns related to short-term rentals and emphasized his commitment to working on those issues.

Additionally, in an effort to address those concerns, the council approved Councilman Marqueece Harris-Dawson’s amendment to request a report back with the intent of creating an alternative process for short-term rentals or homeowners who do business with AirBnB.

Some council members are seeking a report back on whether the Los Angeles Police Department should be the department tasked with the responsibility of issuing permits.

Councilwoman Eunisses Hernandez had suggested the Housing Department take the initiative for the permitting process.

According to a Los Angeles Police Department representative, the process involves collecting general descriptions of the property and biographical information.

There are fees for three categories of small, medium and large establishments, and the department is expected to process more than 9,000 permits under the proposed ordinance.

LAPD representatives said they would need additional funding to staff clerks to process the paperwork and officers to conduct inspections of these establishments.

Krekorian previously said the city will have plenty of time to modify the ordinance as it will take effect July 1.

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