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ZONING CODE AMENDMENT: HOTEL CONVERSIONS FOR AFFORDABLE HOUSING City Council October 1, 2018

This zoning code amendment proposes the conversion of hotels into affordable housing units with amenities in order to address the homelessness issue and provide faster, cost-effective solutions. The amendment includes a review process and performance standards.

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ZONING CODE AMENDMENT: HOTEL CONVERSIONS FOR AFFORDABLE HOUSING City Council October 1, 2018

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  1. ZONINGCODE AMENDMENT:HOTEL CONVERSIONS FOR AFFORDABLE HOUSINGCity CouncilOctober 1, 2018

  2. Hotel Conversions • Background • Based on the 2018 homeless count, homeless population in Pasadena is 677, with 347 unsheltered • 87% of lower-income renters overpay for housing • Conversion of hotels/motels to create affordable housing units with associated amenities • Faster and less expensive than new construction • Permanent Supportive Housing is a tool to help address immediate need for housing and long-term need for services • City Manager initiated Zoning Code Text Amendment

  3. Hotel Conversions • Background • Permanent Supportive Housing (PSH) • 3 PSH projects in Pasadena totaling 177 units • Transitional Housing • 3 Transitional Housing projects in Pasadena totaling 51 beds • Single Room Occupancy (SRO) • Traditional Affordable Housing

  4. Hotel Conversions • Background • Four Planning Commission meetings (June-Sept 2018) • Research other jurisdictions • Discussion and visits with Permanent Supportive Housing Projects • Pasadena • Marv’s Place, Euclid Villa, Centennial Plaza • Huntington Park • Tiki Apartments • Santa Ana • The Orchard

  5. Hotel Conversions Marv’s Place (Pasadena)

  6. Hotel Conversions Euclid Villa (Pasadena)

  7. Hotel Conversions The Orchard (Santa Ana) Source: mercyhouse.net

  8. Hotel Conversions • Background • Public Comments (in favor) • Prioritize permanent supportive housing • Some support for a ministerial process • Be mindful of costs of entitlements and fees • Public Comments (concerns) • Make all conversions discretionary • Loss of TOT revenue • Potential secondary impacts on surrounding uses

  9. Hotel Conversions • Background • Planning Commission Comments • Emphasize ministerial review with threshold for discretionary • Not unanimous, some concerns • All projects should be discretionary • Limit size of eligible hotels/motels to 80 rooms or less • Address the issue as part of Specific Plan process

  10. Hotel Conversions • Review Process • Planning Commission Recommendation

  11. Hotel Conversions • Review Process • Staff Recommendation • All conversions require discretionary review through Hotel Conversion Permit • Public participation • Case-by-case review for adjusting development standards • Waive development review, permitting, and impact fees

  12. Hotel Conversions • Review Process • Hotel Conversion Permit • Similar to Conditional Use Permit • Findings • Hotel/motel was legally constructed • 100% affordable to low, very-low, and/or extremely-low income households • Not detrimental to health, safety, or general welfare of persons or property in the neighborhood • Compatibility of design, location, operation, and size with vicinity

  13. Hotel Conversions • Existing Hotels • 25 total • 17 hotels have less than 80 guest rooms

  14. Hotel Conversions • Zoning Compliance • Development Standards • Existing hotels/motels were constructed to commercial development standards • Conversion would not comply with residential development standards • Discretionary Review for all projects to address development standard compliance and site-specific issues

  15. Hotel Conversions

  16. Hotel Conversions • Performance Standards • Each conversion requires Housing Management Plan developed in consultation with Housing Department • Reviewed through Hotel Conversion Permit • Recordation prior to Certificate of Occupancy

  17. Hotel Conversions • Recommended Performance Standards • 24-hour on-site property manager if 15 or more units • 24-hour security monitoring, person or camera • On-site community gathering space • On-site laundry amenities • Applies only to Permanent Supportive and Transitional Housing • On-site support services 8am-5pm, minimum one case worker or support staff per 20 residents • Private offices for case workers and property management staff when required

  18. Hotel Conversions • Incentives • Waive all review and permit issuance fees for all conversions, including: • Plan check fee • Entitlement review fees • Residential Impact Fee • Traffic Reduction and Transportation Improvement Fee • Construction Tax • Sewer Facility Charge

  19. Hotel Conversions Comment Letter • Legal Challenges • City Attorney’s office review • General Plan Consistency • Consistent with Land Use Map • Consistent with goals/policies in ECSP related to affordable housing • Identify Appropriate Sites • Recommendation for discretionary review • Parking reduction related to demand of use, not proximity to rail

  20. Hotel Conversions Comment Letter • Revenue Concerns • TOT loss is limited and outweighed by cost savings of reducing homelessness • Address Homelessness Comprehensively • Part of overall strategy • Changes can be made in the future as needed • Inform and Involve the Public • 4 Planning Commission Meetings • Discretionary Review

  21. Hotel Conversions • Recommendation: • Find that the Zoning Code Text Amendment is exempt from CEQA • Adopt the findings for a Zoning Code Amendment (Attachment A) • Conduct first reading of the ordinance • Requiring all conversions to be discretionary

  22. ZONINGCODE AMENDMENT:HOTEL CONVERSIONS FOR AFFORDABLE HOUSINGCity CouncilOctober 1, 2018

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