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This ordinance established the status of residential hotel units by regulating the demolition and conversion of residential hotel units to other uses. Its purpose is to minimize the adverse impact on the housing supply and on displaces low income, elderly, and disabled persons resulting from the loss of residential hotel units through their conversion and demolition.
This ordinance gives tenants, tenants associations, the city, and nonprofit groups the right of first refusal when an owner proposes to sell or transfer any HUD-subsidized housing. A proposed prepayment or Section 8 contract termination triggers other procedures and protections, whereas a Section 8 contract expiration or opt-out at its original expiration date triggers no purchase rights. The ordinance requires 18-months\' notice of prepayments or mid-term Section 8 terminations, and 12-months\' notice of Section 8 contract expiration at the end of their term. Information about tenants\' rights must be made available to any interested parties at least 14 days prior to a required public hearing, which is held no later than 45 days after the owner gives notice of intent to prepay or terminate prematurely. The ordinance also uses a complex formula to reach a \'fair return price\' that may not exceed the appraised value based on the highest and best use, creates civil remedies for violations and provides that owners pay relocation fees of up to $5,250 to very low-, low- or moderate-income tenants who are displaced by a conversion, according to a set formula. The purpose of this ordinance is to assist public and private efforts to ensure that affordable house is not permanently removed from the housing stock, to preserve and promote a supply of affordable housing and to protect and diversity of the community by preventing displacements of low and moderate income households and to prevent homelessness.