Proposed Urgency and Permanent
Ordinances for SRO Conversion Permits
City Council
January 8, 2025
Government Code Section 54957.5 SB
343 Item Agenda: 01/08/2025 REG CC
Item 14
Background
• Single Room Occupancy (SRO) Hotels are residential properties that rent out small, single rooms with shared communal facilities such as bathrooms and kitchens
• SROs are naturally affordable to low-income households, typically renting for $700-$1200 monthly
• Market Rate Comparison: $1,795 for studios and $2500 for one-bedroom apartments in South San Francisco
• SRO building age and changing market conditions displacement risk for low-income tenants
Background (continued)
• Prior staff studied displacement risk of SRO residents • Parallels the Anti-Displacement Roadmap; urgency to
adopt ahead of two-year roadmap completion
• Housing Standing Committee shared feedback in August
• Peer jurisdictions have legislation to intervene in
redevelopment to minimize resident displacement
• Almost identical recommendations for mobile homes
proposed —presentation highlighting differences to follow Existing SRO Hotel Inventory
Property Name Property Address Number
Units
Status
Metropolitan Hotel 220 Linden Ave 68 Active; deed restricted affordable housing with City loan; listed for sale
Industrial Hotel 505 Cypress Ave 29 Active; operator unknown S & L Hotel 400 Miller Ave 29 Active; listed for sale.
146 Gardiner Ave 146-150 Gardiner Ave 21 Sold in 2022; code enforcement actions in 2023/2024
The Grand Hotel 731 Airport Blvd Approx 57 Active
Alphonse Hotel 108 Grand Ave 19 Active, but all units are currently vacant
Atlas Hotel 322 Grand Ave Unknown Converted to tourist hotel, but still allow long term stays
SRO Examples
Staff Recommendation
Staff recommends City Council consider adopting today an urgency ordinance and introducing a permanent ordinance that would:
Establish a permit process for single room occupancy (SRO) hotels proposed to be converted, demolished, and/or
redeveloped
Policy Goals
• Establish administrative procedure to enforce noticing and relocation benefit requirements for residents displaced if/when a triggering redevelopment is proposed
• Provide tenant protections for low-income individuals vulnerable to displacement
Housing Element
Alignment
• Policy EQ-3: Support residents who are atrisk of being displaced • Policy EQ-8: Protect existing residents
from displacement in areas of lower or
moderate opportunity and concentrated
poverty and preserve housing choices and
affordability
• PRSV-5.2 Assist tenants at risk of
displacement
Policy Structure
Triggering Events
Conversion to short term rental
Conversion to different uses
Closure
Conversion through vacancy
Research Conducted
• SRO Regulation Ordinance passed in 1997
• Sets up regulation process for SRO, includes conversion permit as a part of it • Requires one-for-one replacement or payment to in-lieu fee; emphasizes preservation
• Staff members report success in issuing relocation benefits in 2022, but had trouble getting ahold of everyone who qualified
San Diego Housing Commission
• SRO Ordinance passed in 1986
• Emphasizes replacement of units in event of a demolition or payment to build new units
• Less relocation benefits, but greater opportunity for housing mobility (more SRO units)
City and County of San Francisco
Eligible residents
Includes:
• Long-term Residents: who lived in the SRO Hotel for at least 30 consecutive days within a 180-day period prior to the Notice of Intent
Does not include:
• Short term hotel guests
Noticing Requirements
Notice of
Intent (NOI)
Relocation
Impact Report
Application
Review*
Notice of
Application
Approval
Notice of
Termination
City has up to 12-months from Notice of Intent to Approve Minimum of
12 months
from NOI
*Key timeline determinant but not a noticing requirement Conversion Permit Application Process
The application package includes:
• Conversion Permit application form and fee
• Relocation Impact Report
• A list of all tenants who qualify for relocation benefits • Acknowledgement of Owner's obligations to provide written notices and informational meeting
• Any other information that ECD determines is necessary to ensure compliance with this Ordinance and State law
Relocation Benefits
Core relocation benefits include:
• Noticing
• Mandating a relocation impact report to identify comparable housing
• Access to a relocation counselor to help find subsidized housing • Cash payment of moving costs, rent for six months, and a security deposit for a new housing unit
• Right of first refusal to rent/own if new units are built Relocation Benefits Costs
AMOUNT
6 months rent cash benefit1 $16,908.00
Security deposit $2,500.00
First and last month rent $5,636.00
Moving costs 2 $1,850.00
Subscription to relocation counselor3 $500.00
TOTAL $27,394.00
1 1 month rent for 1-bedroom unit in San Mateo County published by HUD in 2024 = $2,818 2 Moving costs calculated from local moving businesses. 3 Calculated based on salary for two full-time housing navigator roles working for 6 months Example of Relocation Costs for Households Seeking to Be Relocated to a 1-Bedroom
Council Action
Staff recommends Council consider adopting today an urgency ordinance and introducing a permanent ordinance for SRO hotels proposed to be converted, demolished, and/or redeveloped.
Objective: establish streamlined administrative processes for the City to enforce noticing and relocation benefit requirements for residents displaced from SRO Hotels.
Urgency ordinance: if adopted today, effectively immediately Permanent ordinance: introduced today. If adopted on 1/22, effective 30 days after