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Singular references also include plural and derivative uses of defined terms where capitalized.
A. Affordable Housing Project. Affordable Housing Project is a housing development project with a government-imposed regulatory agreement that has been recorded with the Los Angeles County Recorder, or which shall be recorded within six months of the Claim of Exemption filed pursuant to Section 47.77, guaranteeing that all of the residential units will be affordable to either lower income or very low income households for a period of at least 55 years, with at least ten percent of the units affordable to households with income no greater than 30 percent of Area Median Income, and no more than 25 percent of the units affordable only to households with income at 60 percent of Area Median Income. None of the units shall be affordable only to households with income greater than 60 percent of Area Median Income, as these terms are defined by the United States Department of Housing. “Lower income or very low income households” is defined in accordance with California Health and Safety Code Sections 50079.5 and 50105.
B. Affordable Housing Trust Fund. Affordable Housing Trust Fund is a fund established by Los Angeles Administrative Code Section 5.522.
C. CRA/LA. CRA/LA is the Community Redevelopment Agency of the City of Los Angeles.
D. Comparable Unit. Comparable Unit is a unit which is similar in size, services, rental amount and facilities to the Residential Unit proposed to be converted or demolished.
E. Conversion. Conversion is any action that converts any Residential Unit in a Residential Hotel through either: (1) a change of use to a commercial, industrial, or other non-residential use; (2) a change to a different residential use; (3) a change from a residential use to a transient or tourist guest use or occupancy; or (4) a conversion to a condominium, cooperative, or similar form of ownership.
F. Demolition. Demolition is any action that reduces the number of existing guest rooms, light housekeeping rooms, or efficiency units in a Residential Hotel, either by a complete tearing down of a building or structure so that it no longer exists or by combining two or more units into a single unit.
I. Efficiency Dwelling Unit. Efficiency Dwelling Unit is defined in Section 12.03 of the Los Angeles Municipal Code.
J. GSD. GSD is the Department of General Services.
L. Interested Party. An Interested Party is a resident or Tenant of a Residential Hotel, or their authorized representative. Interested Party shall also mean any nonprofit organization exempted from federal taxation pursuant to Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, and organized for the purpose of maintaining or creating affordable housing.
M. LADBS. LADBS is the Los Angeles Department of Building and Safety.
N. LAHD. LAHD is the Los Angeles Housing Department. (Amended by Ord. No. 187,122, Eff. 8/8/21.)
O. Light Housekeeping Rooms. Light Housekeeping Rooms are those designed and used as a bedroom and for the cooking and preparing of food, in conformance with the provisions of Los Angeles Municipal Code Section 91.8116.
P. Member of Appraisal Institute. Member of Appraisal Institute is a trade organization that certifies appraisers who meet the requirements for the MAI designation.
Q. Owner. Owner includes any person or legal entity holding any ownership interest in a Residential Hotel or a building under consideration for Residential Hotel status.
S. Residential Hotel. A Residential Hotel, as defined in accordance with California Health and Safety Code Section 50519, is any building containing six or more guest rooms or efficiency units, intended or designed to be used, or which are used, rented, or hired out, to be occupied, or which are occupied, for sleeping purposes by guests, and which is also the primary residence of those guests. The term Residential Hotel excludes any building containing six or more guest rooms or efficiency units, which is primarily used by transient guests who do not occupy units in that building as their primary residence.
T. Residential Unit. A Residential Unit is any guest room, light housekeeping room, efficiency unit, or dwelling unit in a Residential Hotel that was occupied as a primary residence on October 11, 2005. If a unit was vacant on October 11, 2005, a Residential Unit shall mean any guest room, light housekeeping room, efficiency unit, or dwelling unit in a Residential Hotel that, on the first day that the unit was subsequently occupied, was occupied as a primary residence.
U. Tenant. A Tenant is a Person who is entitled to occupy and occupies a Residential Unit for at least 31 consecutive days.
V. Tourist Unit. A Tourist Unit is a unit in a Residential Hotel that does not meet the criteria of a Residential Unit.
A. This article shall not apply to any Residential Hotel that is an Affordable Housing Project. An Affordable Housing Project that is exempt from the provisions of this article shall lose its exempt status and become subject to the provisions of this article when it ceases to be an Affordable Housing Project.
B. This article shall also not apply to any Residential Hotel that:
1. was completely and continuously unoccupied by any Person from October 11, 2005, through and including the date that the Owner applies for a building permit for a Residential Hotel that constitutes a proposed Conversion or Demolition of the Residential Hotel, or is a new development on the site of a Destroyed or Demolished Residential Hotel; or
2. pursuant to California Government Code Section 7060, et seq., was first approved for residential occupancy on or after January 1, 1990, as evidenced by a certificate of occupancy issued by LADBS on or after that date; or
3. pursuant to California Government Code Section 7060, et seq., sent or delivered to LAHD before October 11, 2005, a notice of intent to withdraw all of the building’s accommodations from rent or lease; or (Amended by Ord. No. 187,122, Eff. 8/8/21.)
4. consisted entirely of Residential Units that were rented or offered for rent for periods of no less than 30 days from October 11, 1995, to the effective date of this article. This exemption applies only to Residential Hotels containing 55 or fewer units.
(Amended by Ord. No. 187,122, Eff. 8/8/21.)
A. LAHD will determine whether a building is a Residential Hotel.
B. LAHD shall notify the Owner of any building that it classifies as a Residential Hotel that such building is subject to the provisions of this article. LAHD shall include in the notification a copy of this article, the appeal form referenced in Subsection C. of this section, and an Application for Exemption. LAHD shall mail the notice to the Owner at the address that appears in the last equalized assessment roll or at the address provided to LAHD through any registration in accordance with Section 151.05. The Owner shall immediately post the notice until the time for appealing such designation expires.
C. An Owner of a Residential Hotel or Interested Party who alleges that the building is not a Residential Hotel may file an appeal with LAHD within 60 days of the date that LAHD deposited its notification in the mail pursuant to Subsection B. of this section.
1. An appellant who files an appeal shall do so on a form prescribed by LAHD and shall pay an administrative fee in the amount of $605. The fee shall pay for the cost of investigating and processing the appeal.
2. The appellant shall submit evidence with the appeal to support the appeal.
3. The appellant has the burden of proving by a preponderance of the evidence that the property is not a Residential Hotel. Tenants, other Interested Parties and the Owner if the Owner is not the appellant, may submit evidence to LAHD.
4. Within 15 days of the filing of the appeal, LAHD shall provide the appellant and any Interested Party requesting such information all information LAHD relied upon in the determination from which the appeal is made, except that the Owner’s confidential financial or proprietary information shall not be disclosed to any Person other than the Owner. Within 20 days from receipt of such information, the appellant may submit additional information to LAHD.
5. On the date that the Owner files the appeal, or as soon as LAHD notifies an Owner that an Interested Party has filed an appeal, the Owner shall post a notice on a form prescribed by LAHD. The notice shall state that the appellant has appealed the City’s Residential Hotel Status Determination. The notice shall identify the grounds for the appeal. The notice shall provide the name and contact number of LAHD staff an Owner or Interested Party can contact to provide additional evidence and information regarding the appeal. LAHD shall also mail a copy of the notice to the occupants of the building subject to the appeal. The notice shall remain posted until after LAHD issues a written determination regarding the appeal.
6. LAHD shall issue a determination of the appeal based on the evidence submitted within 90 days of the filing of the appeal. The basis for the determination shall be described therein. LAHD shall mail a copy of the determination to the Owner, and any Interested Party who filed an appeal or submitted evidence pursuant to this section.
D. An Owner or any Interested Party who presented evidence pursuant to this section may appeal LAHD’s determination to a General Manager’s Hearing Officer pursuant to the provisions of Section 47.84. The Owner shall post LAHD’s determination until the time for filing any appeal expires. The appeal shall be filed at LAHD within 15 calendar days after LAHD mails its determination. LAHD’s determination shall be final if a timely appeal is not filed.
E. Any appeal of a Notice regarding a Residential Hotel determination that was sent to an Owner of a building prior to the effective date of this Ordinance shall be governed by the procedures set forth in Section 47.75 of this Ordinance unless the appellant elects to utilize the appeal procedures set forth in Section 47.75 as they existed prior to the effective date of this Ordinance.
(Amended by Ord. No. 187,122, Eff. 8/8/21.)
A. After, or concurrently with, LAHD’s determination of whether a building is a Residential Hotel, LAHD shall determine whether the Residential Hotel contains only Residential Units or some Tourist Units.
B. LAHD shall notify the Owner of any building that it classifies as a Residential Hotel whether any units in the Residential Hotel have been determined to be Tourist Units. LAHD shall include in the notification a copy of this article and the appeal form referenced in Subsection C. of this section. LAHD shall mail the notice to the Owner at the address that appears in the last equalized assessment roll or at the address provided to LAHD through any registration in accordance with Section 151.05. The Owner shall immediately post the notice until the time for appealing such determination expires.
C. An Owner of a Residential Hotel or Interested Party who alleges that a Tourist Unit or Residential Unit determination is incorrect may file an appeal with LAHD within 60 days of the date that LAHD deposited its notification in the mail pursuant to Subsection B. of this section. Any such appeal shall be limited to the issue of the alleged improper determination of units as Residential or Tourist.
1. An appellant who files an appeal shall do so on a form prescribed by LAHD and shall pay an administrative fee in the amount of $988. (First Sentence Amended by Ord. No. 180,867, Eff. 10/18/09.) The fee shall pay for the cost of investigating and processing the appeal.
2. The appellant shall submit evidence with the appeal. An appellant who claims that the designation of the number of units as Residential or Tourist Units was incorrect shall identify the specific units it claims are incorrectly designated.
3. The Appellant has the burden of proving by a preponderance of the evidence that the units were misdesignated. Tenants, Interested Parties and the Owner if the Owner is not the appellant, may submit evidence to LAHD.
4. Within 15 days of the filing of the appeal, LAHD shall provide the appellant, and any Interested Party requesting such information, all information LAHD relied upon in the determination from which the appeal is made, except that the Owner’s confidential financial or proprietary information shall not be disclosed to any Person other than the Owner. Within 20 days from receipt of such information, additional information may be submitted to LAHD.
5. On the date that the Owner files the appeal, or as soon as LAHD notifies an Owner that an Interested Party has filed an appeal, the Owner shall post a notice on a form prescribed by LAHD. The notice shall state that the appellant has appealed the City’s Residential Unit Status Determination. The notice shall identify the grounds for the appeal and shall identify any rooms that the appellant contends were misdesignated and what the alleged correct designation should have been. The notice shall provide the name and contact number of LAHD staff an Owner or Interested Party can contact to provide additional evidence and information regarding the appeal. LAHD shall also mail a copy of the notice to the occupants of the building subject to the appeal. The notice shall remain posted until after LAHD issues a written determination regarding the appeal.
6. LAHD shall issue a determination of the appeal based on the evidence submitted within 90 days of the filing of the appeal. The basis for the determination shall be described therein. LAHD shall mail a copy of the determination to the Owner, the occupants of the units claimed as Tourist Units by the Owner, and any Interested Party who filed an appeal or submitted evidence pursuant to this section.
D. An Owner or any Interested Party who presented evidence pursuant to this section may appeal LAHD’s determination to a General Manager’s Hearing Officer pursuant to the provisions of Section 47.84. The Owner shall post LAHD’s determination until the time for filing any appeal expires. The appeal shall be filed at LAHD within 15 calendar days after LAHD mails its determination. LAHD’s determination shall be final if a timely appeal is not filed.
(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.
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.
(Amended by Ord. No. 187,122, Eff. 8/8/21.)
The City shall not approve a Conversion or Demolition of a Residential Hotel, or any new development on the site of a Destroyed or Demolished Residential Hotel, until LAHD has approved an Application for Clearance filed by the Owner pursuant to this section.
A. If an Owner applies for a building permit for a Residential Hotel that constitutes a proposed Conversion or Demolition of the Residential Hotel, or is a new development on the site of a Destroyed or Demolished Residential Hotel, then the following procedures shall apply:
1. LADBS shall inform LAHD of the application for a building permit.
2. The Owner shall file an Application for Clearance with LAHD. Within 90 days after LAHD has deemed the application complete, LAHD shall either deny the application or determine the conditions for approval of the application.
3. LAHD shall make one of the following determinations when an Owner files a complete Application for Clearance:
(a) Deny an Application for Clearance if the applicant has violated the provisions of Subsection A. of Section 47.82;
(b) Exempt the property from the provisions of this article if the Application for Clearance is for an Affordable Housing Project pursuant to the provisions of Section 47.74; or
(c) Determine the conditions for approval of an Application for Clearance pursuant to Section 47.79.
4. LAHD shall mail a copy of LAHD’s letter of determination of an Application for Clearance to the Owner, the occupants of the Residential Hotel’s units, and the applicable Council office.
5. The Owner and any Interested Party may appeal the conditions for approval of an Application for Clearance to the General Manager’s Hearing Officer pursuant to the provisions of Section 47.84.
6. LAHD shall only approve the Application for Clearance if the Owner complies with the conditions determined by LAHD pursuant to this section or, if the conditions for approval are appealed, as determined pursuant to Section 47.84.
B. An Owner who files an Application for Clearance with LAHD and wants the option to pay a fee pursuant to the provisions of Subdivision 2. of Subsection A. of Section 47.79 shall pay an application fee in the amount of $2000 for each application. An Owner who files an Application for Clearance with LAHD and does not want the option to pay a fee pursuant to the provisions of Subdivision 2. of Subsection A. of Section 47.79 shall pay an application fee in the amount of $1108 for each application. The application fee shall pay for the City’s cost of administering the application process.
C. The Application for Clearance shall contain the following information:
1. The legal and mailing address of the Residential Hotel;
2. The names and addresses of all Owners or operators of the Residential Hotel;
3. The names of all Tenants in the Residential Hotel;
4. The total number of units in the Residential Hotel and the current uses;
5. The current rental rates for the Residential Units; and
6. The length of each Tenant’s tenancy in Residential Units affected by the Application for Clearance.
(Amended by Ord. No. 187,122, Eff. 8/8/21.)
A. LAHD shall require an Owner to satisfy one of the following conditions for approval of an Application for Clearance:
1. Construct, for each Residential Unit to be Converted or Demolished, a Comparable Unit in the City of Los Angeles within a two-mile radius of the units to be Converted or Demolished.
(a) LAHD may authorize the construction of fewer units to replace the Residential Units to be Converted or Demolished if LAHD determines that the following three conditions are met:
(i) The replacement units provide amenities, such as bathrooms and kitchens, not present in the units to be withdrawn;
(ii) The needs of the current residents of the Residential Hotel would be served by the better amenities and larger units; and
(iii) The reduction in the number of units would not significantly decrease the number of available Residential Units in the City.
(b) Where the Owner chooses to comply with the conditions for approval of an Application for Clearance pursuant to this subdivision, LAHD shall not approve the Application for Clearance until LADBS issues a certificate of occupancy for units constructed pursuant to this subdivision, except where CRA/LA has approved replacement units within four years of the date of Demolition of the Residential Hotel units pursuant to CRA/LA Development Guidelines and Controls for Residential Hotels in the City Center and Central Industrial Redevelopment Project Areas, so long as the guidelines are in full force and effect.
2. Pay to the City of Los Angeles a fee in an amount equal to 80 percent of the cost of construction of an equal number of comparable Residential Units plus 100 percent of site acquisition costs. GSD shall determine the fee amount based on an independent MAI certified appraisal reviewed by GSD. The applicant shall pay for the appraisal. The fee payments shall be placed in the Affordable Housing Trust Fund and be used for the Permanent Supportive Housing Program pursuant to Subsection B. of this section. The funds deposited in the Affordable Housing Trust Fund for the Permanent Supportive Housing Program pursuant to the provisions of this subdivision may be used to create replacement units. If the units to be Converted or Demolished are in the City Center or Central Industrial Redevelopment Project Area, the fee will be paid into the Affordable Housing Trust Fund to be used for the Permanent Supportive Housing Program in accordance with the CRA/LA’s Guidelines and Controls for Residential Hotels in the City Center and Central Industrial Redevelopment Project Areas, for so long as the guidelines are in full force and effect.
3. Convert Residential Units to units that are either Light Housekeeping Rooms, Efficiency Dwelling Units or dwelling units, and which shall be subject to a regulatory agreement filed with the Los Angeles County Recorder guaranteeing for a period of at least 55 years that at least 10 percent of the units shall be affordable to households with income no greater than 30 percent of Area Median Income, at least an additional 40 percent of the units shall be affordable to households with income no greater than 40 percent of Area Median Income, and at least an additional 30 percent of the units shall be affordable to households with income no greater than 50 percent of Area Median Income, as these terms are defined by the United States Department of Housing. The initial rent for the remaining units may be set at any amount.
(a) The option provided by this subdivision applies only to Residential Hotels containing more than 250 units.
(b) LAHD may authorize the construction of fewer units to replace the Residential Units to be Converted pursuant to this subdivision if LAHD determines that the following three conditions are met:
(i) The replacement units provide amenities, such as bathrooms and kitchens, not present in the units to be withdrawn;
(ii) The needs of the current residents of the Residential Hotel would be served by the better amenities and larger units; and
(iii) The reduction in the number of units would not significantly decrease the number of available Residential Units in the City.
B. The funds deposited in the Affordable Housing Trust Fund pursuant to the provisions of this article shall be used to provide capital funding for the development of permanent supportive housing projects pursuant to the City’s Permanent Supportive Housing Program. At the end of the calendar year after the year in which funds are deposited in the Affordable Housing Trust Fund, any remaining funds that have not been committed through the Permanent Supportive Housing Program shall be available for the development of affordable housing projects funded through the Affordable Housing Trust Fund. Units developed with funds committed under the Affordable Housing Trust Fund pursuant to this subsection shall be restricted to households with incomes no greater than 35% of Area Median Income, as defined by the United States Department of Housing and Urban Development.
B. Right of First Refusal. Within 60 days of the issuance of a certificate of occupancy for units constructed pursuant to Section 47.79 A.1., the Owner shall first offer to rent the units to Tenants who were evicted, pursuant to Section 151.09 A.13. of this Code, from the Residential Units that were the subject of the Application for Clearance.
C. Tenancy. If a Tenant takes possession of a unit pursuant to the provisions of Subsection B. of this section, that unit shall be subject to the provisions of Chapter XV of this Code.
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