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SEC. 47.77. CLAIM OF EXEMPTION.
   (Amended by Ord. No. 187,122, Eff. 8/8/21.)
 
   A.   Applications for Exemption based on Subsection A. of Section 47.74, Affordable Housing Projects. Applications for exemption based on Subsection A. of Section 47.74 shall be subject to the provisions below of this subsection:
 
   1.   Filing of Application for Exemption. An application for exemption based on Subsection A. of Section 47.74 may be filed at any time by the Owner. The Owner shall pay an administrative fee in the amount of $205 when filing the application. The fee shall pay for the cost of investigating and processing the application.
 
   2.   Owner’s Submission of Evidence. The Owner shall submit evidence with the application to support the claim of exemption. The Owner has the burden of proving by a preponderance of the evidence that the Residential Hotel is exempt from the provisions of this article.
 
   3.   Determination of Exempt Status. LAHD shall issue a determination of the claim for exemption based on the evidence submitted, and shall mail a copy of the determination to the Owner within 90 days of filing the application.
 
   4.   Appeal of Denial of Application for Exemption. An Owner may appeal the denial of an application for exemption pursuant to the provisions of Subsection C. of this section.
 
   B.   Applications for Exemption based on Subsection B. of Section 47.74. Applications for exemptions based on Subsection B. of Section 47.74 shall be subject to the provisions below of this subsection:
 
   1.   Timing of filing of Application for Exemption. An application for exemption based on Subsection B. of Section 47.74 must be filed within 60 days after LAHD mails notification pursuant to Subsection B. of Section 47.75. Failure to timely file an application for exemption will result in denial of the application, unless LAHD finds that good cause exists for the untimely filing. The Owner shall also pay an administrative fee in the amount of $205 when filing the application. The fee shall pay for the cost of investigating and processing the application.
 
   2.   Posting Notice of Application for Exemption. On the date that the Owner files the application for exemption with LAHD, the Owner shall post a notice. The notice shall be on a form prescribed by LAHD. The notice shall provide the name and contact number of LAHD staff whom Tenants and an Interested Party can contact to provide additional evidence and information. LAHD shall also mail a copy of the Owner’s application for exemption to each of the units of the Residential Hotel. The notice shall remain posted until after LAHD issues a written determination regarding the application for exemption.
 
   3.   Submission of Evidence. The Owner shall submit evidence with the application to support the claim of exemption. The Owner has the burden of proving by a preponderance of the evidence that the Residential Hotel is exempt from the provisions of this article. Any Interested Party may submit evidence to LAHD.
 
   4.   Determination of Exempt Status. LAHD shall review the application for exemption and evidence submitted. LAHD shall issue a determination of the application for exemption within 90 days of the filing of the application. LAHD shall mail a copy of the determination to the Owner and to any Interested Party who submitted evidence pursuant to the provisions of Subdivision 3. of this subsection. The Owner shall post LAHD’s determination until the time for filing any appeal expires.
 
   5.   Appeal from Determination of Exempt Status. An Owner or any Interested Party who submitted evidence pursuant to Subdivision 3. of this subsection may appeal LAHD’s determination of an application for exemption pursuant to the provisions of Subsection C, of this section.
 
   C.   Appeal of Determination of Application for Exemption. An appeal pursuant to the provisions of Subdivision 4. of Subsection A. of this section or Subdivision 5. of Subsection B. of this section may be made to the General Manager’s Hearing Officer pursuant to the provisions of Section 47.84 of this article. The appeal shall be filed at LAHD within 15 calendar days after LAHD mails the determination of the application for exemption. LAHD’s determination of an application for exemption shall be final if a timely appeal is not filed. The appellant shall have the burden of proving by a preponderance of the evidence that the decision on exemption was erroneous.