HOTEL CONVERSION ORDINANCE WORKSHOP

Transcription

1 HOTEL CONVERSION ORDINANCE WORKSHOP SAN FRANCISCO ADMINISTRATIVE CODE CHAPTER 41 RESIDENTIAL HOTEL UNIT CONVERSION & DEMOLITION ORDINANCE PRESENTED BY HOUSING INSPECTOR MATT LUTON May 23 & May 25, 2017

2 ORDINANCE On February 7, 2017, the San Francisco Board of Supervisors unanimously passed Ordinance 38-17, amending Chapter 41 of the San Francisco Administrative Code (otherwise known as the Hotel Conversion or HCO), which clarifies the requirements of residential hotel owners and operators. The revised HCO became effective March 20,

3 ORIGIN & PURPOSE The continuing and primary purpose of the HCO is to preserve residential guest rooms that provide crucial housing for the elderly, disabled, and low income persons. Prior to the HCO adoption the Planning Department estimated that over 6,000 residential guest rooms were lost from In 1981 the City declared a housing emergency due to the loss of residential guest room units from the rental market, which caused the displacement of elderly, disabled, and low income tenants. 3

4 LEGISLATIVE HISTORY Adoption: The original HCO was signed by the Mayor on June 26, Designation of Residential Guest Rooms: Beginning in 1981 the HCO required all hotel owners/operators to file an initial unit usage report. Guest rooms occupied by a permanent resident for thirty-two (32) consecutive days as of September 23,1979 were designated residential units and became subject to the protections of this chapter. 4

5 CURRENT JURISDICTION The HCO regulates the preservation of approximately 20,000 residential guest rooms in 500 hotels throughout the city. The Department of Building Inspection is responsible for implementation and enforcement of the HCO. 5

6 SUMMARY OF ORDINANCE UPDATES Key elements of the update do the following: Clarify pertinent definitions Update recordkeeping provisions and related penalties Revise annual reporting requirements and related penalties 6

7 UNLAWFUL CONVERSIONS Definitions: Permanent Resident: a person who occupies a guest room for at least 32 consecutive days. o Not changed by Ordinance Residential Unit: a guest room occupied by a permanent resident on September 23, 1979 (See Section 41.4 for full definition). o Not changed by Ordinance Tourist Unit: a guest room not occupied by a permanent resident on September 23, 1979 (See Section 41.4 for full definition). o Not changed by Ordinance Tourist or Transient Use: any use of a guest room for less than a 32-day term of tenancy by a party other than a Permanent Resident. o This definition was added by Ordinance

8 Unlawful Actions (Section 41.20): HCO WORKSHOP UNLAWFUL CONVERSIONS Changing the use of, eliminating, or demolishing a residential hotel unit without a proper permit (paraphrased see Section 41.20(a)(1) for full provision). Renting any residential unit for Tourist or Transient Use absent an exception (paraphrased see Section 41.20(a)(2) for full provision). Offering for rent for Tourist or Transient Use a residential unit absent an exception (paraphrased see Section 41.20(a)(3) for full provision). 8

9 UNLAWFUL CONVERSIONS The changes made by Ordinance 38-17, taken together with the existing definitions and provisions, clarify that it is unlawful to rent a residential unit to anyone other than a Permanent Resident for less than 32 days. 9

10 RECORDKEEPING Hotel operators must maintain the requisite records that demonstrate the residential guest rooms are being rented properly. Required Records: Daily Logs Weekly Reports Rent Receipts These documents must be maintained for twenty-four (24) months and made available for on-site inspection. New Requirements by Ordinance 38-17: Beginning November 1, 2017 graphic floorplan must be available for inspection on-site. 10

11 RECORDKEEPING Daily Log 11

12 RECORDKEEPING Weekly Report 12

13 RECORDKEEPING Rent receipts must be given to tenants as proof of payment. Copies of receipts must be maintained on site. 13

14 RECORDKEEPING Graphic Floorplan 14

15 RECORDKEEPING Required Postings Weekly Report for the prior week posted every Monday Certificate of Use Must be posted in a conspicuous location at the front desk in the lobby or if there is no lobby, in the public entranceway. 15

16 RECORDKEEPING 16

17 RECORDKEEPING 17

18 RECORDKEEPING PENALTIES The penalty for failure to maintain daily logs, provide receipts to occupants, or post requisite materials, has increased from $250 to $500; AND ineligibility for the temporary tourist conversions as provided in Section for twelve months. 18

19 ANNUAL UNIT USAGE REPORT 19

20 ANNUAL UNIT USAGE REPORT The hotel operator must submit the Annual Unit Usage Report on the first day of November every calendar year. Previous Requirements: Completion of 3-page DBI form Daily Logs for the first day of October, February, May and August Starting with the AUUR this fall, the following will be required: Completion of DBI form for 2017 Daily logs the first Friday of each month, November of the previous year through October of the filing year. Graphic floorplan reflecting room designations for each floor. 20

21 ANNUAL UNIT USAGE REPORT PENALTIES The penalty for insufficient filing of the AUUR has increased to $500 per day after the 15-day period for which the owner or operator fails to furnish the requested information or written explanation; AND ineligibility for the temporary tourist conversions as provided in Section for twelve months. Failure to file the AUUR has a penalty increase from $300 to $1000 per month; AND ineligibility for the temporary tourist conversions as provided in Section for twelve months. 21

22 OTHER UPDATES Permit to Convert Requirements Administrative Subpoenas Online Reporting 22

23 ANY QUESTIONS? Department of Building Inspection 1660 Mission Street (415) dbi.hishco@sfgov.org Follow DBI on 23