San Diego Municipal Code Div. 5 SRO Hotel Regulations

(Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000.)

The purpose of these regulations is to ensure the retention of the existing number of SRO hotel rooms and to provide assistance to tenants of SRO hotel rooms that will be displaced by the demolition, conversion, or rehabilitation of existing SRO hotel rooms. These regulations are intended to benefit the general public by minimizing the adverse impact on the housing supply and on displaced persons, particularly those who are very low income, elderly, or disabled, resulting from the permanent or temporary loss of SRO hotel rooms through their demolition, conversion, or rehabilitation. (Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000.)

This division applies to any development that proposes the demolition or rehabilitation of all or part of an SRO hotel or SRO hotel rooms or the conversion of all or part of an SRO hotel or SRO hotel rooms to another use, except as provided in Section 143.0520. (Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000.)

(a) The regulations in sections 143.0540 and 143.0550 do not apply to the following demolitions or conversions:

(1) Conversion of all or part of an SRO hotel or SRO hotel room to a very
low income housing project.

(2) Demolition of all or part of an SRO hotel or SRO hotel room to allow
for the new construction of a very low income housing project on the
same site within 2 years pursuant to an agreement with the San Diego
Housing Commission.

(3) Demolitions or conversions that result in the development of a project
for housing low income senior citizens that is operated by a nonprofit
corporation.

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(b) The City Council may exempt demolition or conversion of all or part of an
SRO hotel or SRO hotel room that is necessary to implement a redevelopment
project. An exemption under this section shall not be granted by the City
Council unless it finds that the proposed project will contribute to the public
health, safety, and welfare and that the contribution exceeds the negative
impact on the supply of SRO hotels and SRO hotel rooms that will result from
the demolition or conversion. An exemption under this section shall not
exempt a redevelopment agency from requirements for replacement and other
applicable requirements under California Community Redevelopment Law or
other state or federal laws.
(Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000.)

The San Diego Housing Commission or successor agency, as the agency responsible for administering the SRO hotel regulations, shall do the following:

(a) Review each application for a permit to demolish or convert a hotel to identify
any SRO hotel or SRO hotel room that is not exempt from these regulations
under Section 143.0520.

(b) Advise the applicant of the requirements of these regulations.

(c) Review each replacement plan prepared by an applicant and advise the
applicant as to whether or not the plan satisfies the requirements of these
regulations. A replacement plan is a plan to replace SRO hotel rooms that is
prepared by the applicant, approved by the San Diego Housing Commission,
and incorporated into a Housing Replacement Agreement.

(d) For each replacement plan that meets the requirements of these regulations,
draft and execute with the applicant, a Housing Replacement Agreement that
incorporates the terms of the replacement plan. A Housing Replacement
Agreement is a written agreement between the San Diego Housing
Commission and the applicant specifying the manner in which the housing
replacement requirements in Section 143.0550 will be met.

(e) Prepare and implement a system to monitor compliance of the Housing
Replacement Agreements with the regulations in this division.

(f) Manage the City of San Diego Single Room Occupancy Hotel Replacement
Fund and cause replacement units to be acquired, constructed, or rehabilitated.
(Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000.)

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Before a permit to convert or demolish all or part of an SRO hotel or SRO hotel room is issued, the applicant shall execute a Housing Replacement Agreement with the San Diego Housing Commission in accordance with Section 143.0550. A Housing Replacement Agreement is not required unless the SRO hotel had an occupancy permit issued prior to January 1, 1990, and the owner or operator did not deliver a notice of intent to withdraw accommodations from rent to the City before January 1, 2004. (Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000) (Amended 9-7-2004 by O-19313N.S.;effective 10-7-2004)

(a) Replacement SRO hotel rooms shall be provided within the community plan area in which the SRO hotel rooms were demolished or converted unless the San Diego Housing Commission approves alternate sites on public transportation corridors outside the community plan area. The replacement rooms shall be completed and ready for occupancy before occupancy of the redeveloped site upon which the former SRO hotel rooms were located.

(b) Replacement SRO hotel rooms shall be made available to and occupied by
very low income households at rents affordable to a very low income, single-
person household as most recently established by the U.S. Department of
Housing and Urban Development or successor agency for the San Diego
Standard Metropolitan Statistical Area.

(c) Occupancy and affordability restrictions shall be recorded for at least 30
years.

(d) SRO hotel rooms shall be provided at a ratio of one replacement room for
each existing SRO hotel room proposed to be demolished or converted. The
replacement rooms shall be provided by one of the following methods:

(1) Construction of new SRO hotel rooms;

(2) Rehabilitation or conversion of hotel rooms that have been
continuously vacant for more than one year before the permit
application for use as SRO hotel rooms. Rehabilitation means
reconstruction, renovation, repair, or other improvement to all or part
of an SRO hotel or an SRO hotel room;

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(3) Conversion of nonresidential structures to SRO hotel rooms;

(4) In lieu of providing SRO hotel rooms, an applicant may contribute to the Single Room Occupancy Hotel Replacement Fund. The amount of the contribution shall be equal to 50 percent of the replacement cost of the SRO hotel rooms to be demolished or converted. That cost shall be calculated by multiplying one-half of the hotel area demolished or converted, by the current development cost per square foot of comparable SRO hotels in the City, including land development costs. Monies deposited in the fund shall be used solely for the production or rehabilitation of SRO hotel rooms or the conversion of nonresidential structures to SRO hotel rooms. (Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000.)

(a) An applicant for a permit for or related to the demolition, conversion, or rehabilitation of all or part of an SRO hotel or SRO hotel room shall, concurrent with the filing of the permit application, submit a list of all tenants who resided in the hotel within the 180-calendar-day period preceding the application filing date. The applicant shall provide or make available the relocation benefits and notices specified in Sections 143.0570 and 143.0580. The permit to demolish, convert, or rehabilitate shall not be issued until the San Diego Housing Commission verifies full compliance with this Section and Sections 143.0570 and 143.0580.

(b) The relocation provisions in this division shall not apply to proposed
developments for which greater relocation benefits and payments are required
under state or federal law.
(Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000.)

(a) Each tenant of an SRO hotel to be demolished, converted, or rehabilitated who has resided in the SRO hotel for at least 90 consecutive calendar days preceding the permit application date shall be considered a long-term tenant for purposes of this division and is entitled to the benefits and rights described in Section 143.0570(b) through (e). Each tenant of an SRO hotel to be demolished, converted, or rehabilitated who has resided in the SRO hotel for at least 30 consecutive calendar days preceding the permit application date is entitled to the benefits and rights described in Section 143.0570(c) through (e).

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(b) Financial Assistance

(1) Except as provided in Section 143.0570(b)(3), each long-term tenant is
entitled to one lump sum payment in an amount equal to two times the
tenant’s average monthly rent for the preceding 12 months if the SRO
hotel is being demolished or converted or an amount equal to the
tenant’s average monthly rent for the preceding 12 months if the SRO
hotel is being rehabilitated. In addition, each long-term tenant is
entitled to a rent rebate of $10.00 per month for each month’s
residency in excess of 90 calendar days, not to exceed $210.00.
Length of residency shall be calculated from the date of initial
occupancy to the date of application for a building or other permit.

(2) The financial benefits shall be paid by the SRO hotel owner to the
long-term tenant within 5 business days of written notice by the tenant
that he or she will vacate the premises on a date specified by him or
her, but no more than 30 calendar days in advance of the move-out
date. Written notice forms approved by the San Diego Housing
Commission shall be provided to the long-term tenants by the owner.

(3) If the SRO hotel is being rehabilitated, the financial assistance benefits
required by this section need not be provided if comparable
accommodations, as defined by the California Code of Regulations,
are provided on or off the premises to the long-term tenants during the
period of rehabilitation. The owner shall give a right of first refusal to
relocate to a rehabilitated unit to each long-term tenant who qualifies
as very low income. When comparable living space is provided, the
applicant shall pay each affected long-term tenant all reasonable
moving and related expenses.

(c) Technical Assistance

The San Diego Housing Commission shall provide assistance in locating
decent, safe, and affordable housing opportunities to tenants who have resided
in the SRO hotel for at least 30 consecutive calendar days.

(d) Notice of Termination of Tenancy

To terminate a tenancy or the purpose of demolition, conversion, or
rehabilitation of an SRO hotel or SRO hotel room regulated under the SRO
hotel regulations, the owner must fully comply with Sections 143.0560,
143.0570, and 143.0580. The notice of termination of tenancy may not be
given before the date of the notice required by Section 143.0580.

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(e) Evictions

(1) This subsection 143.0570(e) applies to any SRO hotel that received a
certificate of occupancy prior to January 1, 1990, and for which the
owner or operator did not deliver to the City on or before January 1,
2004, a notice of intent to withdraw accommodations from rent.

(2) In addition to the tenant list required by Section 143.0560(a), the applicant shall submit a list of the names of any tenants who have moved, been removed, or evicted during the preceding 180 calendar days and the reasons for the move, removal, or eviction. (Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000.) (Amended 9-7-2004 by O-19313N.S.; effective 10-7-2004)

(a) Before submittal of an application for a permit for or related to the demolition, conversion, or rehabilitation of all or part of an SRO hotel or SRO hotel room, the owner must deliver a Relocation Assistance Notice to each tenant. The notice shall clearly state the benefits established by Section 143.0570 for all tenants.

(b) The San Diego Housing Commission shall have available a sample notice
format that the owner must use.

(c) The notice required by this section shall be delivered to each tenant personally
or by mail, and written acknowledgment of service on and receipt by the
tenant shall be secured.
(Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000.)

A long-term tenant of an SRO hotel, as described in Section 143.0570(a), who is injured by any violation of these regulations, shall be entitled to declaratory relief, injunctive relief, and damages in a civil action. Counsel for the aggrieved party shall notify the Office of the City Attorney of the City of San Diego of any action filed pursuant to this section. (Added 12-9-1997 by O-18451 N.S.; effective 1-1-2000.)

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Article 3: Supplemental Development Regulations