A city commission Thursday approved an ordinance that would require developers of new hotel properties to replace any permanent housing lost in the process.
The Planning Commission voted unanimously, 6-0, in support of the proposed law, which would also establish a uniform conditional-use permit requirement for new hotels and form a voluntary housing program to place unhoused individuals in vacant hotel rooms.
Commissioners Samantha Millman, Karen Mack and Elizabeth Zamora were absent during the vote.
Commissioner Helen Leung said the ordinance has the support of many community members including labor unions and the hotel industry. She noted it’s really rare for an ordinance to come before the commission and there’s “no opposition” to it.
Commissioner Ilissa Gold said previously the city had to “get in and fight” to save housing or other community benefits regarding hotel construction because there were no provisions to rectify that.
“I am thrilled to see that this will be citywide, and I’m actually kind of optimistic about making uniform requirements to help allow for more hotels,” Gold said.
Juan Muñoz, a representative of Unite Here Local 11 hospitality workers union, said during Thursday’s City Planning Commission meeting that they believe this compromise — the ordinance — proposed by L.A. City Council meets “the moment and reflects the intent of our initiative that we worked so hard for.”
Several hotel workers urged the commissioners to approve the ordinance because they need more affordable housing.
Many workers shared stories of having to commute long hours just to work at hotels across the city. They added that it would be easier for them and their families if they could live closer to work.
The proposed ordinance would introduce provisions intended to bolster public oversight over short-term rentals, hotels and other properties that create a public nuisance when used as “party houses” or for criminal activities, and increase the supply of interim housing available to the city.
Hotels, short-term rentals and motel owners would be required to obtain a police permit. This process would involve public review to consider 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 the neighborhood.
Additionally, the process would screen owners and operators for prior criminal activity or any history of creating a public nuisance.
As part of the ordinance, the city would create a voluntary registry in which participating hotels would notify the city of vacant rooms that can be made available for interim housing.
With the commission’s approval, the proposed ordinance will head to the council’s Planning and Land Use Management Committee at a future date.
The council voted unanimously to adopt a motion on Nov. 7, instructing the city attorney to review the proposed draft law and work with city departments to finalize and present it to the council for final approval.
Co-authored by the office of Council President Paul Krekorian, Unite Here Local 11 and representatives of the hotel industry, the proposed ordinance is intended to replace a ballot initiative sponsored by the labor union, which was set to appear on the March 2024 ballot.
The ballot proposition will be withdrawn if the ordinance is enacted, officials previously said.
According to a report from city planners, the proposed ordinance contains “similar, but more expansive regulations related to hotel uses.”
Some homeowners, who rent out rooms or their homes short term, and mom-and-pop motel and hotel owners, have expressed opposition to the proposed law. Many were concerned about the permit process, which may involve public hearings, mandatory fingerprinting, background checks and require additional fees.
Rahul Patel, secretary of the Asian American Hotel Owners Association’s board of directors, claimed the language in the proposed law is “anti-small business and adverse to our owners’ communities.”
“We’re asking for a seat at the table,” Ray Patel, president of the Northeast Los Angeles Hotel Owners Association, told council members during the Nov. 7 council meeting. “I don’t know if we were ignored, but the fact is 75% of the hotels in Los Angeles are family owned and jointly owned by people of color. You need to hear about our operations and take our input in crafting this piece of ballot measure that now turned into an ordinance.”
Krekorian had previously said the ordinance would provide an “automatic acceptance of an application for the police permit.”
He added, “All you have to do is apply and unless there is opposition presented by someone, that application will automatically be approved.”