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This section shall not apply to any of the following:
1. A Project that is not Hotel Development Project as defined in Section 51.36 of this Code.
2. A Hotel Development Project that is developed in accordance with the terms of a development agreement adopted by ordinance pursuant to the authority and provisions of California Government Code Section 65864 et seq. and that is executed prior to the operative date of this section, provided that such Hotel Development Project shall comply with any affordable housing requirements included in the development agreement or any predecessor ordinance in effect on the date the development agreement was executed.
3. A Hotel Development Project subject to the Residential Hotel Unit Conversion and Demolition Ordinance (Article 7.1 of Chapter IV of this Code).
4. A Hotel Development Project subject to replacement-unit obligations under the Settlement Agreement in Wiggins, et al. v. Community Redevelopment Agency of the City of Los Angeles, City of Los Angeles et al, LASC Case No. BC276472 (Related with Case No. BC277539) or the Development Guidelines and Controls for Single-Room Occupancy Hotels in the City Center and Central Industrial Areas.
5. A Hotel Development Project for which application of the requirements of this article would unlawfully interfere with vested rights created under this Code, State law, or common law, as long as those vested rights are maintained.
1. A proposed Hotel Development Project shall be required to include the replacement, on a one-for-one basis, in the form of new construction of Residential Dwelling Units or acquisition and rehabilitation of existing vacant market-rate Residential Dwelling Units, of each Residential Dwelling Unit on the Hotel Development Project parcel or parcels that is or will be Converted or Demolished as a result of the Hotel Development Project and each such Residential Dwelling Unit that was Converted or Demolished during the five-year period immediately preceding the Applicant’s application for First Approval, as follows:
a. For Residential Dwelling Units on the parcel or parcels that are occupied on the date of the application for First Approval, the proposed Hotel Development Project shall include Replacement Units of Equivalent Size to be made available at Affordable Housing Cost to, and occupied by, individuals and households in the same or lower Income Category as those households in occupancy, or if the Income Category of the individuals or households occupying the Residential Dwelling Unit exceeds that of a Moderate Income Household, at an Affordable Housing Cost to a Moderate Income Household. If the incomes of the individuals and households in occupancy are not known, it shall be rebuttably presumed that Lower Income Households, Very Low Income Households, Extremely Low Income, Moderate Income and Above Moderate Income Households occupy these Dwelling Units in the same proportion as their share of all renter households within the City of Los Angeles, as determined by the General Manager of the Los Angeles Housing Department utilizing the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database.
b. For Residential Dwelling Units on the parcel or parcels that are in existence but are unoccupied at the time of an Applicant’s application for First Approval, the proposed Hotel Development Project shall include Replacement Units of Equivalent Size to be made available at an Affordable Flooring Cost to, and occupied by, individuals and households in the same or lower Income Category as the last individual or household in occupancy, or if the Income Category of the individuals or households last occupying the Residential Dwelling Unit exceeded that of a Moderate Income Household, at an Affordable Housing Cost to a Moderate Income Household. If the incomes of the individuals and households formerly in occupancy are not known, it shall be rebuttably presumed that Lower Income Households, Very Low Income Households, Extremely Low Income, Moderate Income and Above Moderate Income Households occupied these Dwelling Units in the same proportion as their share of all renter households within the City of Los Angeles, as determined by the General Manager of the Los Angeles Housing Department utilizing the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database.
c. For Residential Dwelling Units on the parcel or parcels that have been Converted or Demolished within the five-year period preceding the Applicant’s application for First Approval, the proposed Hotel Development shall include Replacement Units of Equivalent Size equal to the total number of Residential Dwelling Units on the parcel or parcels at the highpoint during the five-year period preceding the application for First Approval, minus the number of Residential Dwelling Units on the parcel or parcels in existence at the time of the application for First Approval. Such Replacement Units shall be at an Affordable Housing Cost to, and occupied by, individuals and households in the same or lower Income Category as those individuals and households in occupancy at such highpoint, or if the Income Category of the individuals or households occupying the Residential Dwelling Units at such highpoint exceeded that of a Moderate Income Household, at an Affordable Housing Cost to a Moderate Income Household. If the Income Categories of the individuals and households in occupancy at such high point are not known, it shall be rebuttably presumed that Lower Income Households, Very Low Income Households, Extremely Low Income, Moderate Income and same Above Moderate Income Households occupied these Residential Dwelling Units in the proportion as their share of all renter households within the City of Los Angeles, as determined by the General Manager of the Los Angeles Housing Department utilizing the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database.
2. An Applicant may provide the Replacement Units required under Subsection 1. of Section 51.38 of this Code at the site of the Hotel Development Project or at a location other than the site of the Hotel Development Project, provided that any off-site Replacement Units for the Hotel Development Project shall be located within the same Community Plan area or within three miles of the Hotel Development Project, unless, at the time of submission of the application for First Approval, the Applicant petitions for and provides credible documentation in writing to the City Planning Department that there is insufficient available land to construct the off-site Replacement Units in such proximity, in which event such Replacement Units shall be constructed upon a site approved by the City Planning Department.
3. An Applicant may provide the Replacement Units required under Subsection 1. of Section 51.38 of this Code as For-Sale Replacement Units or as Rental Replacement Units, provided that the proportion of For-Sale Replacement Units may not exceed the proportion of For-Sale Residential Dwelling Units on the parcel or parcels that are or were Converted or Demolished.
4. In computing the total number of Replacement Units required in a Hotel Development Project, fractions shall be rounded up to the next highest whole number.
5. This section shall apply to individual Hotel Development Projects for which Planning Permits are sought and also to the cumulative sum of related or successive Planning Permits which are part of a larger Hotel Development Project, such as piecemeal additions to a building, or multiple buildings on a lot, or the development of multiple parcels, as determined by the Director of the Department of City Planning.
6. Nothing in this article shall deem or be used to deem the compliance options set forth in this section as an ad hoc exaction, as a mandated fee required as a condition to developing property, or as a fee subject to the analysis in Building Industry Association of Central California v. City of Patterson, 171 Cal. App. 4th 886 (5th Dist. 2009).
Replacement Units required pursuant to this article shall be made available through a right of first refusal to eligible individuals or households in the following order of priority:
1. to individuals or households who have been or will be displaced by the Conversion or Demolition of Residential Dwelling Units on the parcel or parcels, as described in Subsection 1. of Section 51.38 of this Code and who meet the qualifying income thresholds, with greater priority given to individuals most recently displaced by such Conversion or Demolition;
2. to individuals employed at the Hotel or Hotels developed through the Hotel Development Project who meet the qualifying income thresholds;
3. to others who qualify for the Replacement Units.
No Certificate of Occupancy for a Hotel Development Project which is subject to the requirements of this section shall be issued prior to the issuance of the Certificate(s) of Occupancy for the Replacement Units required pursuant to this section; provided, however, that a Temporary Certificate of Occupancy for a Hotel Development Project may be issued if the delay in obtaining a Certificate of Occupancy for replacement Units was not the result of actions or failures to act by the Applicant.
Replacement Units shall be evidenced by a deed restriction that reserves and maintains the affordability of the Replacements Units, consistent with the requirements of this section, for the life of the Replacement Unit or for 99 years, whichever is greater. The deed restriction shall also state that rent levels cannot exceed those specified in this section.
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