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Council President Krekorian Presents Ordinance To Protect Housing Supply, Crack Down on Nuisance Hotels and “Party Houses”

Posted on 11/01/2023

(LOS ANGELES) November 1, 2023 - Los Angeles City Council President Paul Krekorian introduced a motion in Council today to adopt a draft ordinance that would require developers of new hotel properties to replace any permanent housing lost in the process. The ordinance will also provide the City with new tools to address nuisance hotels and prevent the use of short-term rentals as “party houses.” 

“The shortage of affordable housing in Los Angeles doesn't just drive the crisis of homelessness in our streets,” said Council President Krekorian.  “It hurts everyone who’s looking for a home in Los Angeles. The hospitality industry is a vital and necessary component of our local economy, and we need hotels to welcome the thousands of visitors we receive, but new hotel construction cannot come at the cost of our current housing stock.  Irresponsible hotel and short-term rental operators cannot be allowed to endanger the public safety or impair the quality of life in our neighborhoods.”

The ordinance would replace a ballot measure, similar in intent,  sponsored by UNITE HERE! Local 11, which was to appear on the March 2024 ballot. That ballot proposition will be withdrawn when the ordinance is enacted.

“This motion can be a win for everyone by setting citywide standards for hotel operations while recognizing the urgent need in our city for affordable housing,” said Councilmember Hugo Soto-Martinez. “Thank you to UNITE HERE Local 11, Council President Krekorian, and my council colleagues for your partnership in this effort to deliver for Angelenos while avoiding a costly ballot initiative.”

  • The proposed ordinance would: 
  • Require developers to replace any housing lost to hotel construction
  • Empower community input in consideration of new hotel development and expansion
  • Strengthen public oversight over short-term rentals, hotels and other properties that create a  public nuisance by allowing loud and unruly gatherings (i.e. “party houses”) or tolerating trafficking or other criminal activity on their premises.
  • Increase the supply of interim housing available to the City 

Specifically, the ordinance requires all new hotel developments to obtain a Conditional Use Permit (CUP).  The process for obtaining this permit involves a public review process that would consider the proposed development’s impact on the existing housing supply and require developers to replace any housing that would be demolished or otherwise lost in the neighborhood.

It further requires all hotels, proposed or existing, and all short-term rentals, to obtain a police permit, through a process that would screen owners and operators of such properties for prior criminal activity or any history of creating a public nuisance.

The ordinance also creates a voluntary registry where participating hotels will notify the City of vacant rooms that can be made available for interim housing.

“I’m happy to see both the hotel industry and their employees’ union putting the interests of the entire city first in supporting this ordinance,” said Council President Krekorian. “I hope to see this spirit of cooperation continue in the current negotiations among all the players in this essential industry.”