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Update: L.A. City Council Passes Housing and Development Ordinances

Updated Nov. 29:

The Los Angeles City Council recently passed two housing and development-related ordinances, aimed at both short-term rentals and new hotel builds. The council voted unanimously in favor of a new city law that will require hosts of short-term rentals, including Airbnbs and hotels, to obtain a police permit. Councilmember Marqueece Harris-Dawson, despite voting in favor, asked the city to consider potential alternatives to the police permit for short-term rental hosts in the future.

New Requirements for Short-Term Rentals and Hotel Builds

As part of the permitting package, the council also approved a measure that will require new hotel builds to undergo a more extensive approval process. This includes requiring developers to replace any housing that is demolished to make way for their projects.

Two housing-related proposals were up for consideration at the L.A. City Council meeting, which could have significant ramifications for both short-term rental hosts and developers. First, Council President Paul Krekorian proposed a new law requiring short-term rental hosts to obtain a police permit.

Krekorian believes the permit requirement will help the city crack down on properties that attract illicit behavior and parties. However, critics argue that it will simply add another regulatory hurdle for short-term rental and hotel operators. If passed, the new law would require permit applicants to undergo a background check. Additionally, the L.A. Times notes that initial fees can be hundreds of dollars.

According to the city’s Planning Department, there are currently approximately 6,725 short-term rental units listed with the city. Airbnb has yet to comment on the proposal.

Responsible Hotel Ordinance

On the development side of housing, Krekorian also authored the so-called Responsible Hotel Ordinance. This ordinance would require developers of new hotel properties to replace any permanent housing lost during the development process. It also introduces provisions to increase public oversight over such development and increase the supply of interim housing available to the city.

As part of the ordinance, the city would create a registry of vacant rooms that can be made available for interim housing. Should the ordinance pass the council vote, it would go into effect on July 1, 2024.

For more information on housing and development regulations in Los Angeles, visit Jessica Fulk Real Estate for expert advice and guidance on navigating the city’s real estate market.

Orginal article: Link To Article – provided by Kansas City Realtors