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

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

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

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

Marv’s Place (Pasadena) Hotel Conversions Marv’s Place (Pasadena)

Euclid Villa (Pasadena) Hotel Conversions Euclid Villa (Pasadena)

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

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

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

Hotel Conversions Review Process Planning Commission Recommendation Review Type Project Characteristics Ministerial All of the following: No increase in floor area, room/unit count, or height 100% affordable permanent supportive or transitional housing Provides on-site services Meets all development standards for ministerial approval Meets all performance standards for conversions Discretionary Any of the following: Any increase in floor area, room/unit count, or height (up to 10% of total existing) Includes affordable SRO or traditional affordable housing Off-site services or no services provided Does not meet all development standards for ministerial approval Does not meet all performance standards for conversions

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

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

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

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

Hotel Conversions Development Standards Applicable to Ministerial and Discretionary Conversions Development Standard Discretionary Conversion Minimum Lot Size Waive requirement Maximum Density May increase from existing by up to 10% of existing Setbacks Waive code requirement; allow deviations from minimums Maximum Site Coverage Minimum Floor Area per Unit Waive requirement, except no units may be smaller than requirements for SRO Height Limit Comply with current code Floor Area Ratio May increase by up to 10% of existing Landscaping Parking Reduce to 0.5 spaces per unit Signs Lighting Commercial Frontage and Façade Standards Modify existing structure Walls and Fences Comply with code. Allow excess of 6’ in height. Allow modifications to setback and open to view requirements.

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

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

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

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

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

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

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