L.A. Won't Require Hotels to Offer Vacant Rooms to Homeless

The Los Angeles City Council has removed a ballot measure that would have required hotels in the city to offer vacant rooms to the homeless, a question that was due to come up for a city-wide vote in March 2024.

In a deal that was worked out with trade groups and unions, the City Council is enacting a set of new regulations governing the approval process for new hotels, including the replacement of housing units that are demolished to make way for any hotel development.

The Hotel Association of Los Angeles hailed the agreement and specifically the removal of the ballot measure, which it said would have thrust hotel workers into the forefront of the city’s homelessness crisis, which Mayor Karen Bass has declared a state of emergency.

“This solution ensures that our hotel community is thriving and able to continue to provide excellent careers and economic benefits to our iconic neighborhoods throughout Los Angeles,” said Heather Rozman, Hotel Association of Los Angeles president and CEO, in a statement.

The new regulations make housing the homeless in vacant hotel rooms voluntary for hotel owners.

However, one of the tradeoffs that made the compromise possible will be going into effect: Los Angeles is requiring hotel developers and hosts on short-term rental platforms including Airbnb to obtain police permits to operate.

Council President Paul Krekorian, who supports the permits, told the Los Angeles Times the permitting process will help the city get rid of party houses and similar arrangements that are magnets for crime.

The City Council and neighborhood groups are empowered under the new law to challenge the issuance of the police permits, which may effectively give neighborhoods a veto over short-term rentals.

Police permits, which often are required for services including car valet operators and bowling alleys, can require criminal background checks and hefty fees.

While the LAPD has recommended fees of $260 for short-term rental permits, Krekorian told the Times that he wants the permitting process to be routine and “nearly automatic,” without the need to fingerprint anyone. According to the Los Angeles Planning Department, there currently are 6,725 short-term rental units listed in the city.

The Hotel Association of Los Angeles has expressed concern that its 600 members now will be required to have police permits.

Airbnb has seen its lucrative NYC rental market nearly wiped out after the enactment of tough new short-term rental requirements. In August, an NY State Supreme Court judge tossed out Airbnb’s lawsuit seeking an injunction to block New York City’s registration rules for short-term rentals. Enforcement of the new rules began in September.

Local Law 18, passed in January 2022, requires Airbnb hosts to register with a database overseen by the Mayor’s Office of Special Enforcement, submit diagrams of their homes and a list of who resides there, and prove they are abiding by zoning and safety regulations.

City officials said the law is aimed at landlords the city claims have been illegally collecting Airbnb booking fees for their properties. Officials estimated that nearly 10,000 short-term rentals in NYC were listed illegally.