Planning and Community Development Department ZONING CODE AMENDMENT

Planning and Community Development Department ZONING CODE AMENDMENT: HOTEL CONVERSIONS FOR AFFORDABLE HOUSING City Council October 1, 2018

Hotel Conversions Planning and Community Development Department • 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 2

Hotel Conversions Planning and Community Development Department • 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 3

Hotel Conversions Planning and Community Development Department • 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 4

Hotel Conversions Planning and Community Development Department Marv’s Place (Pasadena) 5

Hotel Conversions Planning and Community Development Department Euclid Villa (Pasadena) 6

Hotel Conversions Planning and Community Development Department The Orchard (Santa Ana) Source: mercyhouse. net 7

Hotel Conversions Planning and Community Development Department • 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 8

Hotel Conversions Planning and Community Development Department • 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 9

Hotel Conversions Planning and Community Development Department • 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 10

Hotel Conversions Planning and Community Development Department • 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 11

Hotel Conversions Planning and Community Development Department • 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 12

Hotel Conversions Planning and Community Development Department • Existing Hotels > > 25 total 17 hotels have less than 80 guest rooms 13

Hotel Conversions Planning and Community Development Department • 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 14

Hotel Conversions Planning and Community Development Department 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 Waive requirement 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 Waive requirement Parking Reduce to 0. 5 spaces per unit Signs Comply with current code Lighting Comply with current code 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. 15

Hotel Conversions Planning and Community Development Department • 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 16

Hotel Conversions Planning and Community Development Department • 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 8 am-5 pm, minimum one case worker or support staff per 20 residents § Private offices for case workers and property management staff when required 17

Hotel Conversions Planning and Community Development Department • 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 18

Hotel Conversions Planning and Community Development Department 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 19

Hotel Conversions Planning and Community Development Department 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 20

Hotel Conversions Planning and Community Development Department • 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 21

Planning and Community Development Department ZONING CODE AMENDMENT: HOTEL CONVERSIONS FOR AFFORDABLE HOUSING City Council October 1, 2018