By JOSE HERRERA
LOS ANGELES — The Los Angeles City Council approved a draft ordinance Tuesday that would require developers of new hotel properties to replace any permanent housing lost in the process.
The council voted 14-0 to move forward with the Responsible Hotel Ordinance, which was 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.
Councilman Kevin de Leon was absent during the vote.
Officials previously said the ballot proposition would be withdrawn if the ordinance is enacted. The city attorney is now expected to prepare and present a finalized ordinance for form and legality to the council.
Councilman John Lee asked to bifurcate a section of the draft ordinance outlining the police permit review process, saying it had not been “adequately fleshed out.”
Lee said he wanted to “make sure that we’re not hurting the small businesses to make sure that we’re not hurting the short-term rental market.”
While the proposed ordinance is backed by Unite Here Local 11, members of the hotel industry and city leaders, there’s growing opposition from motel owners — and from homeowners who use their homes for short-term rentals.
The proposed ordinance would also introduce 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 would be required to obtain a permit from the Department of City Planning. In addition, hotels, short-term rentals and motel owners would be required to obtain a police permit for operation.
Many have expressed concern with the permit process, which they say will create a burden on them.
Krekorian acknowledged that he’s heard the concerns related to short-term rentals and emphasized his commitment to working on those issues. The councilman did not believe the police permit process needed to be bifurcated, as it could be modified prior to when the ordinance would be enacted July 1.
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.
Ultimately, the draft ordinance was moved forward with even more support in part due to 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.
The process would 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.
Additionally, owners and operators would be screened for prior criminal activity or any history of creating a public nuisance, such as so-called “party houses.”
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.
The city’s Planning Commission approved the proposed law on Nov. 16 with some modifications.
The council’s Rules, Elections and Intergovernmental Relations Committee convened in a special meeting on Nov. 21 to discuss the item as well. The three-member committee voted 2-0, with Harris-Dawson absent during the vote.
Nayeli Gomez, a worker for Courtyard Residence Inn for over nine years and a member of Unite Here Local 11, 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 proposed ordinance “meets the moment” and it will protect the housing that she and her fellow union members “desperately need.”
Vanessa Johnson, an Airbnb host, said 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.”
