FOR IMMEDIATE RELEASE: LA City Council Moves Forward on Historic Ordinance to Prioritize Housing Over Luxury Hotel Development

Los Angeles – LA City Council moved forward this morning on a revised version of the Responsible Hotel Initiative. Previously proposed by President Paul Krekorian on November 1, this ordinance will codify the core goals of the original initiative put forward by Unite Here: protecting the housing stock in Los Angeles.

The ordinance would:

  • Ensure that developers fully replace any housing lost to hotel development.
  • Codify components of Inside Safe, a program to provide temporary housing to unhoused individuals and families.
  • Give residents a say in hotel development in their communities, ensuring that the city considers a proposed development’s impact on issues like jobs and housing.
  • Address problems like short-term rental “party houses” and trafficking at hotels through permitting requirements and enforcement.

“We have said all along that our contract campaign has been about two things: housing for our members where they work and a living wage,” said Co-President Kurt Petersen of UNITE HERE Local 11. “With this ordinance, we have done more to protect housing than any single contract demand would have done. The fight for a living wage continues.”

Los Angeles is experiencing a dramatic increase in hotel development, ranking second in the nation in the number of new hotel rooms in its pipeline, with more than 100 hotels under construction or in planning stages. Among other pro-housing provisions, the law would require developers of new hotels that displace housing to replace that housing on a one-for-one basis.

“The only way I could afford a home was to move two hours away from Los Angeles,” said Miguel Aragon, who works as a room attendant at Hotel Indigo. “This ordinance would enable workers like myself to spend time with our families, instead of spending hours of our day spent driving to and from work. I’m proud of the City Council for moving forward with this proposal.”

UNITE HERE Local 11 has until December 1 to withdraw the original language of the ordinance. The new ordinance would come before Council for a vote in early December.

LA City Council President Krekorian Directs City Staff to Draft Historic Ordinance to Prioritize Housing Over Luxury Hotel Development

Would replace Responsible Hotel Ordinance set to be on March 2024 ballot

Los Angeles – Council President Paul Krekorian this morning proposed a revised version of the Responsible Hotel Initiative that would codify the core goals of the original initiative: protecting the housing stock in Los Angeles.

“The shortage of affordable housing in Los Angeles doesn’t just drive the crisis of homelessness in our streets,” said Council President Krekorian. “It hurts everyone who’s looking for a home in Los Angeles. The hospitality industry is a vital and necessary component of our local economy, and we need hotels to welcome the thousands of visitors we receive, but new hotel construction cannot come at the cost of our current housing stock. Irresponsible hotel and short-term rental operators cannot be allowed to endanger the public safety or impair the quality of life in our neighborhoods.”

“I’m happy to see both the hotel industry and their employees’ union putting the interests of the entire city first in supporting this ordinance,” said Council President Krekorian. “I hope to see this spirit of cooperation continue in the current negotiations among all the players in this essential industry.”

The ordinance would:

  • Ensure that developers cannot destroy housing to build hotels, requiring that any housing lost be fully replaced.
  • Codify components of Inside Safe, a program to provide temporary housing to unhoused individuals and families.
  • Give residents a say in hotel development in their communities, ensuring the city considers a proposed development’s impact on issues like jobs and housing.
  • Address problems like short-term rental “party houses” and trafficking at hotels through permitting requirements and enforcement.

“We have said all along that our contract campaign has been about two things: housing for our members where they work and a living wage,” said Co-President Kurt Petersen of UNITE HERE Local 11. “With this ordinance, we have done more to protect housing than any single contract demand would have done. The fight for a living wage continues.”

Los Angeles is experiencing a dramatic increase in hotel development, ranking second in the nation in the number of new hotel rooms in its pipeline, with more than 100 hotels under construction or in planning stages. The ordinance will ensure developers cannot destroy housing to build hotels. Over the last several years, UNITE HERE Local 11 has worked with local housing groups and identified multiple hotel projects that would result in the loss of housing, such as one downtown development that would turn 57 apartments into 172 hotel rooms and another project that converted 97 apartments into hotel rooms. Among other pro-housing provisions, the new law would require new hotels that displace housing to replace that housing on a one-for-one basis.

“I would like to commend Council President Paul Krekorian for his leadership on this issue,” said Petersen.

“Even though there are five of us in my household, and almost all of us work, I can’t afford to live closer than Apple Valley,” said Brenda Mendoza, a 15-year uniform attendant at the JW Marriott at LA Live. “I can barely sleep more than two to three hours a night. That’s why I’m excited to see the City step in and help us get this responsible hotel ordinance passed into law.”

After today’s council meeting, the city staff will work to finalize revised language that the city council would vote on November 8. UNITE HERE Local 11 has until December 1 to withdraw the original language of the ordinance. The new ordinance would come before Council for a vote in early December.

LA City Councilmembers Unveil Plan to Protect Housing by Enforcing Home-Sharing Ordinance

Six councilmembers commit to vote NO on vacation rental loophole

 

Los Angeles, CA:  In a show of unity and commitment, five Los Angeles city councilmembers Bob Blumenfield, Mike Bonin, Paul Koretz, Nithya Raman, and Monica Rodriguez held a press conference to unveil steps to protect housing for thousands of Angelenos by stronger enforcement of the city’s Home-sharing ordinance.

In an effort to further enforce the city’s strong home-sharing ordinance, Councilmembers Blumenfield,  Koretz, and Raman, all filed separate motions with City Planning and Land Use Management recently.

“The City’s home sharing program has pulled thousands of much-needed housing units off the market, adding to our already disastrous homeless problem and has been beset by non-compliance, criminal activity and the destruction of once quiet single-family neighborhoods” said Los Angeles Councilmember Paul Koretz of the Fifth District.  “If we’re going to take home sharing and its many challenges seriously, we need to provide the Planning Department with the resources necessary to effectively enforce the ordinance, and this needs to be done before we start digging a deeper hole with a vacation rentals program. We currently require primary residency for a reason. What possible excuse is there for this change?”

Elected officials pledged to vote “NO” on a Vacation Rental Loophole currently being considered, warning that the passage of it would take 14,000 homes off the market and convert them into short-term rental units and profoundly complicate the enforcement of short-term rental regulations in place. It would also create dire consequences for LA’s housing market with poor communities of color being the most affected. The loophole is expected to come to a vote in the coming weeks.

“If the City is struggling to enforce the home-sharing ordinance we already have on the books, what makes us think we’re ready to put in place a new vacation rental ordinance that, even when properly enforced, would allow almost 15,000 additional units to be taken off the rental market and turned into Airbnbs,” said Councilmember Raman. “I pledge to vote NO on the Vacation Rental Loophole currently being considered.”

“The adopted short term rental ordinance was explicitly written to limit participation to primary residences in order to protect our critical housing stock. We cannot reopen that loophole in the midst of a housing crisis. Housing needs to be protected for those who live and work in Los Angeles,” said Councilwoman Rodriguez

The City estimated from 2017 that between 6,000 and 10,000 housing units had been removed from the traditional rental market and converted by their owners to short-term rentals.

“We need to protect our housing stock and ensure that we’re maximizing the amount of units available for Angelenos; it’s imperative that we don’t allow ‘vacation rentals’ to become a loophole that decimates the protections in the short term rental legalization policy we adopted a few short years ago.” said Councilmember Bob Blumenfield. “Right now, there are thousands of illegal short-term rentals available on various platforms throughout the city. We must strengthen enforcement and reject adding loopholes that will lead to more expensive housing.”

Councilmember Bonin was one of the main sponsors of the original home-sharing ordinance passed in 2018 to address an extreme shortage of affordable housing and the negative effects of short-term rentals on long-term housing markets. The Ordinance strictly limits home sharing to primary residences and requires “hosts” of short-term rentals to register for a permit. It also prohibits “host platforms” from processing bookings for listings without a valid City Home-Sharing registration number.

“We need to put a stake in the heart of this harmful vacation rental proposal, which would take thousands of units off the rental market in the middle of a housing and homelessness crisis,” said Councilmember Mike Bonin. “The proposed vacation rental ordinance would shred any hope of enforcing existing short-term rental rules and would do real harm.”

The event came as housing advocates, working Angelinos and UNITE HERE Local 11 increased their calls for stricter enforcement of the HSO and demand that council reject the proposed VRO.

“When COVID hit I lost my job and my way of life. As a single mother I could not afford to pay the rent of a one-bedroom apartment and was forced to move farther and farther away from my job. I currently live in a small garage where I am barely getting by and live-in fear of becoming homeless every day,” said Clara Meza, member of UNITE HERE Local 11 who has worked as a food prep cook at Sky Chef’s for 36 years.

Although unable to attend in person, Councilmember De Leon said in a statement, “The fact that an eviction moratorium is the only thing preventing many Angelenos from living on the street is a clarion call for all of us to focus on increasing the number of permanently available units at any given time. In a moment like this, anything that detracts from that, like the vacation rental ordinance, should be off the table,” said Councilmember De Leon.

The Vacation Rental Loophole

Top LA City Attorney candidates Teddy Kapur, Hydee Feldstein Soto, Kevin James and Faisal Gill denounce more vacation rentals, ask City of Los Angeles to enforce Home Sharing ordinance.
Join them and send a letter to Los Angeles City Council.

LA City Attorney Candidates Reject Proposed Vacation Rental Ordinance, Challenge City to Enforce Existing Home Sharing Ordinance 

Amid housing crisis, LA City Council expected to vote on a loophole that would take 14,000 homes off the market and convert them into short-term rental units 

Los Angeles,  CA:  In an extraordinary show of unity around the issue of short-term rental regulation, most of the Los Angeles City Attorney candidates joined UNITE HERE Local 11, Better Neighbors Los Angeles, and Strategic Action for a Just Economy to call on the city to reject a proposed loophole – the Vacation Rental Ordinance – that would convert as many as 14,000 homes into short term rentals amid a growing housing crisis and make enforcement of the current Home Sharing Ordinance much more difficult.

 

“The existing Home Sharing Ordinance is not being enforced consistently, and the Vacation Rental Ordinance would exacerbate the problem. Loosening the rules to allow people to turn their second homes into de-facto hotels hurts our city’s hard working hotel workers who have spent years winning union health benefits, pensions and wages they deserve,” said Teddy Kapur, City Attorney candidate.

The City Attorney candidates warned that if the Vacation Rental loophole were to pass, it would profoundly complicate the already slow enforcement of short-term rental regulations that the current LA City Attorney and Planning staff have struggled to implement.  The loophole would create dire consequences for LA’s housing market with poor communities of color being the most affected. In a letter, Better Neighbors says the City estimates that between 6,000 to 10,000 housing units have been removed from the traditional rental market and converted by their owners to short-term rentals.  The loophole would remove thousands more and make enforcement of the existing Ordinance nearly impossible.

“The illegal conversion of rent-stabilized and affordable housing units into short-term rentals must stop.  Increased enforcement of the City’s Home Sharing Ordinance is the fastest way, and the least expensive way, to protect our affordable housing stock, to protect our most vulnerable renters from being pushed into homelessness, and to prevent harm to neighborhoods by commercial operators.  This proposed Vacation Rental Ordinance, unfortunately, will harm our ability to enforce the restrictions written into the City’s Home Sharing Ordinance because it will interfere with the two best enforcement tools we have — the requirement that short-term rentals must be a primary residence, and the prohibition of rent-stabilized units being listed as short-term rentals.  The Vacation Rental Ordinance could end up having the unintended result of actually accelerating our low-income and affordable housing crisis,” said Kevin James, who is running for LA City Attorney.

Los Angeles passed the Home Sharing Ordinance in 2018 to address an extreme shortage of affordable housing and the negative effects of short-term rentals on long-term housing markets. The Ordinance strictly limits home sharing to primary residences and requires “hosts” of short-term rentals to register for a permit. It also prohibits “host platforms” from processing bookings for listings without a valid City Home Sharing registration number.

“Accountability starts and ends with enforceability,” said Hydee Feldstein Soto, a candidate for Los Angeles City Attorney.  “The pending vacation and RSO ordinances make housing supply and especially rent stabilized units vulnerable to those who would skirt the law on short term rentals since enforcement becomes impractical if not impossible.”

The Vacation Rentals ordinance would blur the strongest enforcement line in the Home Sharing Ordinance – the primary residence requirement. If passed, it would allow commercial hosts to remove a second home from the housing market and convert it to a short-term rental.  The loophole would so complicate the investigation process as to make it nearly impossible for the City to determine if a short-term rental is listed illegally.  Because it is the responsibility of the Los Angeles City Attorney to enforce the City’s laws, these enforcement policy questions are an important element of the 2022 LA City Attorney election campaign.

“The Los Angeles City Attorney’s unwillingness to enforce the protections outlined in the Home Sharing Ordinance has left countless Angelenos vulnerable to displacement and homelessness. To make matters worse, the City’s proposed Vacation Rental Ordinance will only complicate regulating the short-term rental industry and further burden impacted communities. Affordable, accessible housing is a human right, and the City needs to focus on strengthening 一 not weakening 一 renter protection laws,” said Faisal Gill, LA City Attorney candidate.

Lawsuit Forces Short-Term Rental Platform Out of L.A. Market

Lawsuit Forces Short-Term Rental Platform Out of L.A. Market

Citing lax public enforcement, activists vow more action to uphold city’s Home Sharing Ordinance

Los Angeles, CA: A short-term rental host and platform announced last week that it will stop offering short-term rentals in the City of Los Angeles.  The announcement comes just days after residents filed the first lawsuit seeking to enforce the Los Angeles Home Sharing Ordinance.

“Synergy’s capitulation is a huge victory for laid-off hospitality workers, housing advocates, and neighborhood activists working to ensure Los Angeles enforces its existing regulations on short-term rentals,” said Randy Renick, partner at Hadsell Stormer Renick & Dai.   “It is the City Council’s responsibility to enforce the law, but we won’t let their failure keep us from taking action to protect our clients.”

Laid off hospitality workers filed their lawsuit against Synergy Global Housing LLC on December 1 alleging that the company is violating the city’s Home Sharing Ordinance that has been in effect since July 2019. Synergy is a member of CapitaLand, a real estate company headquartered and publicly traded in Singapore.

Los Angeles passed the Home-Sharing Ordinance to address an extreme shortage of affordable housing and the negative effects short-term rentals on the long-term housing market. The Ordinance strictly limits home sharing to primary residences and requires “hosts” of short-term rentals to register for a permit. It also prohibits “host platforms” from processing booking transactions for listings without a valid City Home Sharing registration number.

Better Neighbors LA released a review last week showing that the city’s poor enforcement of the Ordinance has left the city inundated with illegal short-term rentals. Despite the lack of enforcement, just last month the Los Angeles Planning Committee, led by Councilmember Marqueece Harris-Dawson, voted 3–1 to move to the full council a massive loophole in the existing Home Sharing Ordinance. The proposed Vacation Rental Ordinance would allow nearly 15,000 additional short-term, Airbnb-type rental units in the city.

Community groups like Better Neighbors LA and UNITE HERE Local 11, who expect the Vacation Rental Ordinance to reach the full council for a vote in January, have been urging against the Vacation Rental Ordinance as L.A. renters face a possible eviction crisis because of the economic impact of COVID-19.