1. ZONING CODE AMENDMENT: HOTEL CONVERSIONS FOR AFFORDABLE HOUSING City Council October 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. Marv’s Place (Pasadena)
Hotel Conversions
Marv’s Place (Pasadena)

6. Euclid Villa (Pasadena)
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
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

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
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.

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