Article VIII — SINGLE ROOM OCCUPANCY (SRO) PROGRAM

The purpose of this article is to address the shortage of decent, safe, sanitary and affordable rental housing options for low-income persons in the city. Hotels have historically provided affordable rental options of last resort for low-income persons. This article enables hotels to rehabilitate units that do not meet minimum building, housing and property maintenance code standards so as to provide safe, habitable rental units for low-income persons. This article establishes development, design and maintenance standards so as to preserve and enhance the quality of life for residents of the city living within such units.

(Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A))

• [1] Code reviser's note: Ordinance 1088 adds the provisions of this section as Section 6.15.670 . The section has been editorially renumbered to prevent duplication of numbering.

"Habitable floor area"

includes living rooms, bedrooms, entryways and other common areas, but does not include bathrooms, kitchens, storage spaces or mechanical/electrical areas.

"Lodging property"

includes hotels, motels, bed and breakfasts, lodging houses, lodging facilities, or similar properties.

"Single room occupancy property" or "SRO property"

means any building with one or more rooms which are (1) 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 tenants, which is or may be the primary residence of such tenants, or (2) intended or designed to be used, or which are used, rented, or hired out, to be occupied, or which are occupied, for periods greater than 29 days.

"SRO unit"

means any room, rooms, or units of a lodging property used for SRO property purposes.

"Transient lodging"

is the use of a lodging property by guests of such lodging property who stay, sleep and/or occupy any rooms within said lodging property for 29 days or less.

(Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A))

This article applies to lodging properties with at least one SRO unit and does not apply to lodging properties used entirely for transient lodging purposes. Pursuant to this article, all lodging properties are either required to obtain a South Lake Tahoe SRO permit or pay the South Lake Tahoe transient occupancy tax ("TOT") based upon all gross receipts and monies collected for the letting of rooms within said lodging property.

(Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A))

SRO units shall be exempt from TOT except that SRO units subject to this article but in use as transient lodging are subject to South Lake Tahoe TOT and shall comply with all TOT reporting requirements as set forth in the South Lake Tahoe City Code. (Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A))

• A. All lodging properties with SRO units shall obtain from the city of South Lake Tahoe development services department a South Lake Tahoe SRO permit (SRO permit). All lodging properties with a permit to operate as employee housing under the California Employee Housing Act, Health and Safety Code Section 17000 et seq., as may be amended, shall obtain an SRO permit.

• B. SRO permits shall be obtained prior to use of any room, rooms or units of lodging properties for SRO purposes.

• C. Lodging properties with SRO units existing upon the effective date of the ordinance codified in this article shall have until 30 days after the effective date of the ordinance codified in this article to submit a completed SRO permit application. Lodging properties without existing SRO units upon the effective date of the ordinance codified in this article may apply for an SRO permit at any time, but no less than 30 days prior to letting SRO units.

• D. Permit applications shall include the following properly completed forms and materials:

  1. South Lake Tahoe SRO permit application which shall include a development design and maintenance plan.

  2. Proof that lodging property is in compliance with its business and professions tax and TOT obligations.

• E. SRO permits shall provide a 12-month period within which permittees may complete all development, design and maintenance standards required by this article. The building official or his or her designee (referred to herein as the building official) may grant extensions to this 12month period where he/she deems such extensions appropriate.

• (Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A); Ord. 1191 § 1)

• A. SRO Permit Fee. A one-time fee in an amount set forth by separate resolution of the city council shall be required for the submission of all SRO permit applications.

• B. SRO Annual Service Fee. An annual fee in an amount set forth by separate resolution of the city council shall be assessed for all SRO rooms. This annual service fee shall cover the operational costs of the periodic SRO health and safety inspections as set forth more fully in SLTCC § 6.15.750 . The annual service fee shall be collected at the same time as payment of the lodging property's business and professions tax. Should the lodging property fail to timely pay its annual service fee, the city shall be permitted to recover it, plus accrued interest and penalties, utilizing any and all remedies provided by law including but not limited to nuisance abatement and municipal tax lien. Failure to pay the annual service fee shall be deemed a violation of this article.

• C. Reinspection Fee. Upon any inspection of a lodging property subject to this article, the building official may instruct the owner of the lodging property to perform work, take action, or refrain from action to meet the development, design, and maintenance standards set forth in this article and by other applicable laws. If the building official determines that such work, action, or inaction has not been accomplished, the lodging property shall be assessed a reinspection fee in an amount set forth by separate resolution of the city council. Should the lodging property fail to timely pay said re-inspection fee, the city shall be permitted to recover it, plus accrued interest and penalties, utilizing any and all remedies provided by law including but not limited to nuisance abatement and municipal tax lien. Failure to pay the reinspection fee shall be deemed a violation of this article.

• (Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A))

SRO properties shall meet the following design standards:

• A. SRO Units.

  1. Designation. SRO property owner shall designate specific rooms as SRO units. Said designation cannot change without an amendment to SRO property's SRO permit.

  2. Bathroom. Shall contain a bathroom facility, with a door for privacy, a lavatory (sink), toilet and bathtub or shower.

  3. Efficiency Kitchen. Efficiency kitchen facilities shall exist in each SRO unit that does not have access to a common kitchen (as set forth in subsection (B)(1) of this section). Kitchens shall contain:

     • a) A refrigerator with freezer.

     • b) A two burner stove and/or cook top and/or microwave.

     • c) A kitchen or bar sink.

     • d) Countertop space of at least 30 inches.

     • e) Sufficient electrical capacity to accommodate such facilities.

  4. Habitable Floor Area.

     • a) For a single occupant a minimum habitable floor area of 120 square feet.

     • b) For two occupants a minimum habitable floor area of 170 square feet.

     • c) For three occupants a minimum habitable floor area of 220 square feet.

     • d) For four occupants a minimum habitable floor area of 270 square feet.

     • e) The permissible number of room occupants shall be capped at no more than four persons.

  5. Exterior Doors. Exterior doors of SRO units shall meet standards for exterior door rating.

• B. SRO Properties.

  1. Common Kitchen Facilities. Shared kitchen space shall exist to serve all SRO units that do not possess a kitchen. Common kitchens shall contain:

     • a) A full size range with four stove burners and an oven.

     • b) A full size refrigerator with freezer for every six SRO units.

     • c) A full size microwave oven.

     • d) A full size kitchen sink with garbage disposal.

     • e) At least 10 feet of countertop space for food preparation.

     • f) Lockable storage cabinets a minimum of two by two by two feet for each SRO unit that does not possess independent kitchen facilities.

  2. Trash Enclosure. An SRO property shall provide a three-sided trash enclosure or solid screening of the dumpster from public view.

  3. Sewage. All sewer units shall be verified and/or permitted by South Tahoe public utility district or the appropriate provider.

  4. Electrical. All SRO properties shall meet electrical service requirements that comply with all applicable laws and are subject to approval of the building official.

  5. ADA Compliance. All SRO properties that make alterations or additions shall comply with the California Building Code, Section 11 B-202, Existing Building and Facilities, and Section 11 B-224, Transient Lodging and Guestrooms.

• C. Signage.

1. Proof of SRO permit shall be placed in a conspicuous place in the lobby or other common area of the lodging property such as a laundry room. For lodging properties with a permit to operate as employee housing under the California Employee Housing Act, Health and Safety Code Section 17000 et seq., as may be amended, additional signage in this conspicuous location shall be posted in English and Spanish that states: "Substandard housing conditions may be reported to the City of South Lake Tahoe Housing Hotline at 530-542-7417, or to the Development Services Department, 1052 Tata Lane, South Lake Tahoe, California 96150."

   2. All SRO units must have an exterior placard containing the following information: a) Statement that room or unit has been designated as an SRO unit.

   • b) Name of hotel/motel.

   • c) Address of hotel/motel.

   • d) Room number.

   • e) Approved number of occupants.

   • f) Contact information of city building department to which complaints may be directed.

• D. SROs shall meet all other building requirements for residential building units as set forth in the South Lake Tahoe City Code and all other applicable laws.

• (Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A); Ord. 1191 § 2)

In order to avoid a substantial risk to health and safety, affected residential rental dwellings shall meet the following interior/exterior and site maintenance standards:

• A. All parking areas shall be well maintained, including striping and landscaping.

• B. All landscaped and nonlandscaped areas shall be in compliance with standards set forth in this code or other applicable laws.

• C. Common kitchen areas shall be kept clean and well maintained. (Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A))

• A. Inspections. The building official may inspect all permitted SRO properties and SRO units to determine whether such facilities and units comply with conditions of approval and all other applicable laws. Inspections may be performed annually, or more frequently where the building official determines that the SRO property or SRO unit poses a substantial risk to health and safety or violations of this article exist.

• B. Inspection Standards. When inspections are made, SRO properties and SRO units shall be required to be in conformance with the standards in effect at the time the facility or unit was permitted, as well as any additional standards mandated by law.

• C. Notification and Access.

  1. A letter of intent to inspect an SRO property shall be mailed and emailed, when possible, to the owner of the SRO property stating the date and time of inspection and shall provide 14 days' notice of said inspection. An inspection checklist will be mailed with the letter.

  2. It shall be the responsibility of the SRO property owner to notify the tenants, residents and inhabitants of the inspection. The city shall be ensured access to all SRO units and shared facilities throughout the inspection.

  3. In the event an owner or tenant in possession of the property to be inspected refuses access to said property, the city attorney or district attorney is authorized to obtain from a court of competent jurisdiction any warrant necessary to cause the inspection to take place.

• D. Voluntary Inspections. Nothing herein shall prevent an owner of a lodging property or a tenant, resident or inhabitant from requesting an inspection at any time for the purpose of determining whether any and all parts of the lodging property comply with this article. Voluntary inspections shall not be subject to the inspection fees set forth by SLTCC § 6.15.720 . Where violations of

this article are discovered during a voluntary inspection, fines shall not be assessed if said violations are corrected within three months of the date of inspection.

• E. Reduced Inspections. Lodging properties with SRO unit(s) that have been permitted under this article for a minimum of three successive years and which have complied with all elements of this article shall be eligible for reduced inspections and reduced SRO fees provided the lodging property meets the following standards and requirements set forth by the SLTCC or other agency standards:

  1. Defensible space standards.

  2. Dumpster enclosures.

  3. Landscaping and drainage standards.

(Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A))

• A. Any and all violations of this article shall be subject to the city's administrative citation procedures as set forth in SLTCC Title 2 .

• B. Any/all practices intended to evade compliance with this article shall be deemed a violation thereof.

• C. Residents and inhabitants of SRO units shall not be moved to another unit so as to deprive such residents, tenants and inhabitants of the rights conferred by this article.

• D. Relocation of Tenants. If any SRO unit is found to be unsafe to occupy, due to imminent danger to health and safety of the resident(s), the costs and expenses of relocation of any tenant from that unit shall be the responsibility of the owner, pursuant to the provisions of Health and Safety Code Section 17975 et seq.

• E. The following constitute violations of this article:

  1. Verifiable complaints of noncompliance with the standards set forth in this article.

  2. Failure to obtain an SRO permit where a permit is required.

  3. Failure to pay SRO fees, TOT, and/or business and professions tax upon such fees and taxes becoming due.

  4. Permissible use of rooms and/or units in a lodging property for a period greater than 29 days without having obtained an SRO permit and without meeting the design, development and maintenance standards set forth by this article.

5. Failure to accommodate inspections authorized by this article. (Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A))

All SRO units shall remain tourist accommodation units (TAUs) as set forth by TRPA's Code of Ordinances, unless converted from a TAU by regulations or means other than this article. (Ord. 1088 § 1 (Exh. B); Ord. 1168 § 1 (Exh. A))

Chapter 6.20. COMMUNITY INVESTMENT AND REVITALIZATION

• A. The city of South Lake Tahoe has adopted, or will adopt, community plans for the Stateline/Ski Run, Bijou/Al Tahoe, and South Y areas of the city.

• B. The purpose of these plans is to provide a common vision for the community plan areas which include strategies and incentives for rehabilitation, restoration, and upgrading of public and private infrastructure in the community plan areas which is beneficial to both the environment and the economy.

• C. In order to encourage and facilitate community plan implementation the city council desires to establish a commercial investment zone program within the city. The purpose of the program is to provide a clear focus and specific resources for implementation of the adopted community plans. It is intended to benefit the community as a whole through enhanced economic activity and increased levels of environmental restoration and enhancement within the community plan areas which would not occur without the commercial investment zone program.

• D. This chapter is intended to establish the authority and guidelines for a commercial investment zone program. The project specific measures will be taken by contract, memorandum of understanding, or resolution as may be appropriate. Such measures shall be directed to specific target areas as more fully outlined below.

• (Ord. 877, 1996; Code 1997 § 8A-1)

The following incentives shall be made available by contract to property owners and/or tenants desiring to upgrade, rehabilitate, redevelop, or enhance real property within a target area in a manner consistent with the adopted community plan:

• A. Permit prioritization, tracking, and one-stop service;

• B. Fee deferrals and/or reductions;

• C. Assignment of a city staff member as project advocate/coordinator who will have responsibility for timely project review and completion;

• D. Allocation of commercial floor area and land coverage allowances;

• E. Community development block grants and/or revolving loan funds;

• F. Community reinvestment act assistance from local financial institutions;

• G. Locally generated revolving loan funds; and

• H. Such other measures as the city council may, by contract or otherwise, approve. (Ord. 877, 1996; Code 1997 § 8A-2)

The following standards are hereby established for the creation of designated target areas and the provision of incentives to projects within those target areas:

• A. The project must be consistent with the adopted community plan;

• B. The project must improve the exterior appearance of real property visible from Highway 50 in a manner consistent with city codes and policies;

• C. All funding sources to complete the project must be in place at time of commencement and/or granting of incentives;

• D. The project must start construction within the construction season during which the incentives are awarded and be completed within the time specified in the contract;

• E. If the project is to receive community block grant funds it must result in the creation or retention of permanent jobs; and

• F. All contracts, memorandums of understanding, or resolutions involving financing shall be recorded and shall constitute a lien on the real property until all loans have been repaid and the project completed.

• (Ord. 877, 1996; Code 1997 § 8A-3)

• A. For purposes of commencing the economic incentive zone program the city council does hereby designate the Harrison Avenue area of the Bijou/Al Tahoe community plan as the initial target area.

• B. Subsequent target areas may be approved by minute order upon a duly adopted motion of the city council.

• (Ord. 877, 1996; Code 1997 § 8A-4)

• A. The city manager or his/her designee is hereby authorized to establish administrative procedures and actions for the processing of applications for the creation of commercial incentive zones, designated target areas. These shall include, but are not necessarily limited to, criteria to be applied for review and the number and type of projects to be undertaken. Allowances of incentives and specific project approvals, however, shall be made by the city council based upon a competitive process and a finding that the selected proposal will most effectively implement the purpose and legislative intent of this chapter.

• B. Other governmental agencies having jurisdiction within the city, including but not limited to the Tahoe Regional Planning Agency, the Lahontan Regional Water Quality Board, the Lake Tahoe Unified School District, and the South Tahoe Public Utility District are hereby requested and encouraged to assist in the creation of commercial investment zones and designated target areas by offering incentives similar to or greater than those contained in this chapter for purposes of recognizing their involvement in the creation of the adopted community plans.

• (Ord. 877, 1996; Code 1997 § 8A-5)