Single Room Occupancy ("SRO") hotels provide an important source of naturally occurring affordable housing in South San Francisco. This chapter may be referred to as the "Single Room Occupancy Ordinance." The purpose of the Single Room Occupancy Ordinance is to provide residents with adequate notice and relocation assistance prior to the conversion of an SRO hotel.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
This chapter applies to all applications for all proposed changes of use of SRO hotel or SRO units, as defined herein, including closure to end the business and closure to convert to another land use, except for as applied in hotels for transient visitors, as defined and outlined in Section 20.350.024.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
For the purpose of this chapter, certain words and phrases are defined in this part and shall be construed as herein set forth unless it shall be apparent from their context that a different meaning is intended.
"Comparable housing"
means housing that meets the minimum standards of the California Building Code, and that is similar housing units in terms of size, number of bedrooms and bathrooms, and other relevant factors such as location and proximity to the resident's place of employment, amenities, schools, and public transportation.
"Comparable housing unit"
means any other housing unit similar to the SRO housing unit in terms of amenities, rent, and other relevant factors such as proximity to the resident's place of employment, amenities, schools, and public transportation.
"Conversion"
is the change or attempted change of the use of an SRO unit to a tourist or transient use, or the elimination of an SRO unit, or the voluntary demolition of an SRO hotel. However, a change in the use of an SRO hotel unit into a non-commercial use which serves only the needs of the permanent residents, such as a resident's lounge, community kitchen, or common area, shall not constitute a conversion within the meaning of this chapter, provided that the SRO hotel owner establishes that eliminating or re-designating an existing tourist unit instead of an SRO unit would be infeasible.
"Department"
means the city of South San Francisco Economic and Community Development Department.
"Economic and community development director" or "director"
means the director of the economic and community development department of the city of South San Francisco.
"Long-term resident"
means an SRO resident legally residing in an SRO hotel whose housing unit was located in an SRO hotel for a period equal to or longer than thirty consecutive days during the one hundred eighty day time period prior to the date of issuance of a notice of intent to apply for an SRO conversion permit. This does not include short-term hotel guests who are individuals staying for a period of less than thirty consecutive days. Long-term residents include the spouse, parents, children, and grandchildren of the legal resident when those people legally resided in the unit on the date of the application for an SRO conversion permit.
"Reasonable distance,"
unless otherwise defined more specifically herein, means that area within a thirty mile radius from the subject SRO hotel. At the discretion of the director, "reasonable distance" may be increased to that area within a one hundred mile radius, as necessary under the circumstances.
"Relocation counselor"
means the department-approved individual or firm retained by the SRO hotel owner, as required by this chapter, to assist in the preparation of the relocation impact report and to provide the support described herein to long-term residents. The relocation counselor shall be familiar with the region's housing market and qualified to assist residents; to evaluate, select, and secure placement in replacement housing; to arrange the moving of all the household's personal property; and to render financial advice on qualifying for various housing types.
"Relocation impact report"
means a written report meeting the requirements of Section 8.90.050 and that describes: (i) the impacts of the conversion of an SRO hotel on affected SRO hotel owners and residents; and (ii) the measures that will be taken to mitigate adverse impacts of such conversion on affected SRO hotel owners and residents.
"Single room occupancy" or "SRO"
is a housing unit that is restricted to occupancy by no more than two persons and may include a kitchen and/or a bathroom, in addition to a bed. These units are typically comprised of one or two rooms.
"SRO conversion permit"
is the permit required to allow a conversion of an SRO hotel, as defined in this chapter.
"SRO hotel"
is a building, or portion thereof, which contains six or more SROs, and where common facilities such as shared bathroom and/or kitchen may be provided for occupant use.
"SRO hotel closure"
includes any closure, cessation, or conversion of an SRO hotel, part of an SRO hotel, or SRO hotel unit. A closure includes ceasing to rent SRO units for human habitation and displacement of long-term SRO hotel residents, or when twenty-five percent or more of the SRO units within the SRO hotel become vacant.
"Uninhabited"
means no rent is being paid for the use of the SRO unit and it is unoccupied by a long-term resident.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
The conversion of an existing SRO hotel, a part of an SRO hotel or SRO hotel unit requires an SRO conversion permit granted by department. The SRO hotel owner, or authorized representative, requesting the conversion shall submit an application for an SRO conversion permit to the department in the form determined by the director. This application shall include, but not be limited to, the following information:
(a) 
An SRO conversion permit application form and fee which is outlined in the planning division fee schedule;
(b) 
A completed relocation impact report;
(c) 
A list of names, mailing addresses, and contact information of all SRO residents occupying the SRO hotel as of the date of application;
(d) 
Acknowledgement of the SRO hotel owner's obligations to provide notice pursuant to Section 8.90.060 in this chapter below; and
(e) 
Any other information that the director or designee determines is necessary to ensure compliance with this chapter and state law.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
An application for an SRO conversion permit shall include a written relocation impact report containing the following information:
(a) 
A general description of the proposed conversion;
(b) 
A legal description for the SRO hotel;
(c) 
An inventory of units in the SRO hotel, including:
(1) 
Total number of units in the SRO hotel and defining which ones are used for long-term housing;
(2) 
Length of occupancy by the current occupant of each unit and the current rental rate for each unit; and
(3) 
For each vacant unit, the date that the unit was vacated by the last resident of the unit.
(d) 
A proposed schedule for the change of the SRO hotel, including outreach to long-term residents regarding the conversion and a description of the outreach to be provided and a projected timeline for relocation assistance;
(e) 
The name and mailing address of each long-term resident;
(f) 
The median rental price, including any requirement for payment of first and last month's rent and security deposits, of other housing of similar size (number of bedrooms and square footage) that is comparable to the displaced SRO resident units within a thirty mile radius or a one hundred mile radius with director approval;
(g) 
The estimated moving cost for each long-term resident, including fees charged by moving companies, child care, temporary housing, and other similar expenses, of moving to other housing within a thirty mile radius or a one hundred mile radius with director approval;
(h) 
A description of proposed measures to minimize any impacts related to missed school days for school-age children of residents, if applicable;
(i) 
Identification of and contact information for the contracted and department approved relocation counselor retained by the SRO hotel owner to assist residents in finding relocation spaces and alternate housing;
(j) 
A proposed relocation plan including the information specified in this section;
(k) 
A copy of any agreement reached with any long-term resident relating to the relocation of the resident or the provision of relocation assistance. The director may waive the requirement to include any or all of the information required by this section where a long-term resident and the applicant have reached a final, mutually acceptable agreement as to the relocation assistance to be provided. To be valid, however, such an agreement shall be in writing, shall include a provision stating that the long-term resident is aware of the provisions of this chapter, shall include a copy of this chapter as an attachment, shall include a provision in at least ten-point font which clearly informs the long-term resident of their right to seek the advice of an attorney prior to signing the agreement; and
(l) 
Any other information the department determines is necessary to address the specific issues raised by the application to implement this chapter.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
The notice requirements listed below pertain specifically to the required notice to the city and long-term residents. The director, or designee, may require the applicant to translate required notices to additional languages. All required notices shall be posted at common areas within the SRO hotel.
(a) 
Notice of Intent. No later than thirty days after filing a completed application, either the SRO hotel owner or the owner's authorized representative shall notify each long-term resident household residing on the subject real property that the owner has filed an application with the city. The notice shall be sent by regular and certified mail and posted on the door of each rental unit. The owner must submit evidence of compliance with this section to the city for the application to be deemed complete. For each such notice, the owner shall use a notice of intent form provided by the city that shall contain the following information:
(1) 
The name and address of the current owner and any applicable property managers and/or developers;
(2) 
A description of the application(s) being filed and a general time frame to complete the work described in the application;
(3) 
An explanation of the relocation assistance available to long-term resident households, information on long-term resident household incomes and the procedure for submitting claims for relocation assistance;
(4) 
Contact information for the third-party agency that will be assisting with the relocation assistance process. This contact information and a brief explanation of the purpose of the notice shall be translated into non-English languages as provided by the city;
(5) 
The long-term resident household's right to receive written notice for each hearing and right to appear and be heard at a land use hearing, if applicable; and
(6) 
Other information deemed necessary or desirable by the department.
(b) 
Notice of Intent Verification. No later than fifteen days after issuing a notice of intent, the SRO hotel owner or authorized representative shall submit to the city a duplicate copy of the notice of intent form given to each long-term resident household and a declaration indicating that each notice was sent by regular and certified mail and posted on the door of the rental unit.
(c) 
Notice of Informational Meetings. The applicant shall conduct at least one informational meeting for SRO hotel residents, owners, and their representatives. The notices shall be sent by regular and certified mail and posted on the door of each SRO unit no later than fifteen days before the hearings. The informational meetings shall be scheduled to maximize resident and owner participation, and the scheduling shall be subject to the approval of the director or their designee. The informational meetings shall occur after the notice of intent has been issued and before any hearing on the SRO Conversion Permit shall be held.
(d) 
Notice of Relocation Impact Report. No later than fifteen days after filing a completed application, the SRO hotel owner or authorized representative shall issue a written notice of relocation impact report with a copy of the relocation impact report. The notice and relocation impact report shall be sent by regular and certified mail and posted on the door of each rental unit.
(e) 
Notice of Application Approval. No later than ten days after receiving final approval of a project application (concurrent with the fifteen day appeal period), the SRO hotel owner or the owner's authorized representative shall notify each long-term resident household residing on the subject real property that the application has been approved. The notice shall be sent by regular and certified mail and posted on the door of each SRO unit.
(f) 
Notice of Termination. No later than ten days after issuing the notice of application approval, the SRO hotel owner or authorized representative shall provide a written notice of termination to all long-term residents subject to displacement pursuant to Civil Code Sections 1946 and 1946.1. The date to vacate shall not be prior to the city's determination that the SRO hotel owner has complied with this chapter. From the date of the notice of intent, each long-term resident residing on the subject real property shall be entitled to a period of one year before the issuance of the notice of termination. This period ensures that residents have adequate time to prepare for relocation and make necessary arrangements. The owner or the owner's agent must adhere to this one year period, ensuring no notice of termination is issued prior to the completion of this timeframe.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
Approval of an SRO conversion permit by the department shall include conditions of approval to mitigate, to the full extent legally feasible, the adverse impact of the proposed conversion on the ability of displaced SRO residents to find adequate housing in a comparable SRO unit or, in the alternative, adequate replacement housing. The conditions of approval shall not exceed the reasonable costs of relocation of all long-term residents. Prior to approving the SRO conversion permit, the director, or their designee, shall make the following findings:
(a) 
The applicant has complied with the provisions of this chapter and state law regarding conversion of SRO hotels;
(b) 
Measures to address, to the full extent legally permissible, the adverse impacts of the conversion on the ability of displaced long-term residents to find adequate housing in a SRO hotel unit or, in the alternative, adequate replacement housing have been taken; and
(c) 
For SRO conversion permit applications accompanied by any additional request for discretionary approval, including, but not limited to, a request for subdivision, General Plan amendment, zoning amendment, or use permit, all required findings for the additional approval have been made.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
The SRO conversion permit shall include as conditions of approval relocation options for each displaced long-term resident in a relocation plan, as follows:
(a) 
Moving allowance for long-term residents: For all long-term residents, relocation assistance shall include a moving allowance sufficient to pay for a move to another SRO unit or other replacement housing, within a thirty mile radius or, with director approval, a one hundred mile radius of the SRO unit to be vacated. The resident is responsible for any additional costs to move to a location outside of the radius. Moving allowance includes:
(1) 
A full refund of a long-term resident's security deposit, if applicable;
(2) 
Payment of moving costs for personal belongings and first and last month's rent and security deposit at the identified alternative housing for all long-term residents;
(3) 
A sixty day subscription to a rental agency service to support long-term residents in obtaining a space in a comparable SRO hotel, within thirty miles or, with director approval, one hundred miles of the SRO hotel; and
(4) 
The cash equivalent of six months' rent shall be paid to the long-term resident household renting a unit. The amount to be paid shall be calculated at the time the relocation application is approved by the city based on the most recent U.S. Department of Housing and Urban Development's Fair Market Rent calculation for San Mateo County for a similar-sized unit with the same number of bedrooms.
(b) 
If the SRO hotel is being rehabilitated, the financial assistance benefits required by this section need not be provided if comparable accommodations, as defined by the California Code of Regulations, are provided on or off the premises to the long-term residents during the period of rehabilitation. The owner shall give a right of first refusal to relocate to a rehabilitated unit to each long-term resident who qualifies as very low income. When comparable living space is provided, the applicant shall pay each affected long-term resident all reasonable moving and related expenses.
(c) 
The financial benefits shall be paid by the SRO hotel owner to the long-term resident within five business days of written notice by the long-term resident that he or she will vacate the premises on a date specified by him or her, but no more than thirty calendar days in advance of the move-out date. Written notice forms approved by the department shall be provided to the long-term residents by the owner.
(d) 
Relocation Counselor. The applicant shall give the director reasonably satisfactory evidence of a contract between the applicant and the relocation counselor providing that no later than thirty days after approval of the SRO conversion permit, the relocation counselor shall make personal contact with each displaced long-term resident of the SRO hotel and initiate the relocation assistance process. The contract shall require the relocation counselor to give each long-term resident a written notice of their options for relocation assistance.
(e) 
Right of First Refusal For Residents. For all long-term residents, relocation assistance shall include the right of first refusal to purchase or rent new homes or apartments to be constructed on the SRO hotel site, if applicable. Income-eligible residents may have first priority to purchase or rent any below market units which may be constructed on the SRO hotel site if they meet all eligibility requirements for the program. To receive priority for below market rate units, interested residents shall file a request with the department before vacating the SRO hotel.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
An SRO conversion permit will be approved no sooner than three hundred sixty-five days after a notice of intent is issued, provided that all conditions and requirements of this chapter are met. The following provides a high-level summary of the approval process for an SRO conversion permit. This summary is for reference only; detailed provisions elsewhere in this chapter govern.
(a) 
Application Review.
(1) 
SRO hotel owner submits an application, including all required documentation. The department reviews the application for completion of the filing requirements outlined in Section 8.90.040.
(2) 
Staff reviews the application and issues a completeness determination within thirty days of submittal. An "incomplete" determination will include a list of items that are needed to be considered a complete application.
(b) 
Notice of Intent.
(1) 
SRO hotel owner issues the notice to residents and the city no later than thirty days after the application is deemed complete by the Department.
(c) 
Verification of Notice.
(1) 
SRO hotel owner submits evidence of compliance with notice requirements to the department within fifteen days of issuing the notice of intent.
(d) 
Informational Meetings.
(1) 
SRO hotel owner conducts at least one informational meeting with residents after the notice of intent is issued but before any hearings on the permit.
(2) 
Notices for these meetings must be sent at least fifteen days in advance.
(e) 
Review of Application.
(1) 
The director or their designee makes required findings as outlined in Section 8.90.070, including approval conditions to mitigate the adverse impact of the proposed conversion.
(f) 
Approval of Permit.
(1) 
The director or their designee must approve the permit no sooner than three hundred sixty-five days after the notice of intent is issued, provided all conditions and requirements of this chapter are met.
(g) 
Notices Following Approval.
(1) 
Notice of Application Approval: Issued to residents within ten days of final permit approval.
(2) 
Notice of Termination: Issued within ten days after issuing the notice of application approval, with at least one year of notice prior to requiring residents to vacate their respective SRO unit.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
The SRO conversion permit shall expire one year from the date of its approval, unless the applicant requests an extension setting forth satisfactory reasons for not proceeding within the one year period. The director may grant no more than two such extensions of one year each, based upon a showing that good faith progress has been made toward fulfilling the conditions of approval, or some intervening event not the fault of the SRO hotel owner has prevented timely compliance with the conditions of approval. An application must be filed with the department no less than sixty days prior to the expiration of the SRO conversion permit or any extension. If relocation assistance has not been provided to all long-term residents in accordance with this chapter within three years of the original date of permit approval, a new relocation impact report and application shall be required in accordance with this chapter. Each year on the anniversary date of the permit approval, the relocation assistance shall be increased by an amount equivalent to the increase in the cost-of living index for the Oakland/San Francisco area published by the U.S. Department of Labor. The index shall be for the quarterly period closest to the anniversary date of the permit.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
The SRO conversion permit appeals process is as follows:
(a) 
Written Appeal.
(1) 
A long-term resident household or SRO hotel owner may contest a decision, order, or determination regarding relocation payments or a notice of penalty or fine assessed this chapter by submitting an appeal in writing together with the appeal fee listed in the city's fee schedule. The appeal shall set forth the factual basis for disputing the decision, order, or determination.
(2) 
Appeals must be addressed to the director, and must be received within fifteen days of the date appearing on the decision, order, or determination regarding relocation benefits or the notice of penalty or fine. A copy of the appeal must be provided by the appellant to any long-term resident household(s) or SRO hotel owner(s) directly affected by the appeal on or by the same date that the appeal is received by the director.
(b) 
Hearing Procedure:
(1) 
Upon receipt of a written appeal and appeal fee, the director shall schedule a hearing before the appeals panel, which shall be a three-member subcommittee of the planning commission. Any long-term resident household(s) or SRO hotel owner(s) directly affected by the appeal shall have the right to attend and participate in the hearing.
(2) 
The appeal hearing shall be set for a date within thirty days from the date that the appeal is filed, unless the director determines that good cause exists for an extension of time. The appellant and any long-term resident household(s) or SRO hotel owner(s) directly affected by the appeal shall receive notice of the time and place at least fifteen days prior to the hearing unless the director determined, in writing, that the matter is urgent, in which case the appellant and any long-term resident household(s) or SRO hotel owner(s) directly affected by the appeal shall receive at least five days' prior notice of the hearing.
(3) 
Documentary evidence and names of potential witnesses shall be provided by the enforcement officer and the appellant to the appeals panel and any long-term resident household(s) or SRO hotel owner(s) directly affected by the appeal at least five days prior to the appeal hearing or as soon as practicable prior to the hearing. At the hearing, the long-term resident household(s) or SRO hotel owner(s) directly affected by the appeal shall be given the opportunity to testify and to present evidence concerning the decision, order, or determination regarding relocation benefits or the notice of penalty or fine. The failure of appellant to appear at the appeal hearing shall constitute a forfeiture of the fine or penalty (if applicable).
(4) 
The decision, order, or determination regarding relocation benefits or the notice of penalty or fine and any additional report submitted by the enforcement officer shall constitute prima facie evidence of the respective facts contained in those documents.
(c) 
Decision on Appeal.
(1) 
After considering all of the testimony and evidence submitted at the hearing, the appeals panel shall issue a written decision to uphold or cancel all or part of the decision, order, or determination regarding relocation benefits or the notice of penalty or fine and shall state the reasons for that decision. The decision of the appeals panel shall include findings regarding the evidence in the record and submitted at the hearing, as well as the existence of any proper grounds for the order to pay relocation benefits or the notice of penalty or fine. A copy of the appeals panel written decision shall be provided to the long-term resident household(s) as well as any SRO hotel owner(s) directly affected by the appeal.
(2) 
If the appeals panel determines that the decision, order, or determination regarding relocation benefits or the notice of penalty or fine should be upheld, then the SRO hotel owner shall pay the appropriate sum(s) to the long-term resident household(s) and/or the city within ten days after the SRO hotel owner's receipt of the appeals panel's written decision.
(3) 
To the extent allowed by law, the decision, order, or determination regarding relocation benefits or notice of penalty or fine shall have the same force and effect as a resolution of the city council for the purpose of filing a lien, special assessment, or for pursuing any other method of collection.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
Whenever twenty-five percent or more of the total number of SRO hotel units within an SRO hotel are uninhabited for more than ninety consecutive days, and such condition was not caused by a natural or physical disaster beyond the control of the SRO hotel owner, then such condition shall be deemed a "SRO hotel closure" for the purposes of this chapter. The SRO hotel owner, or authorized representative, shall file an application for conversion within a reasonable amount of time as determined by the director, in compliance with this chapter. An SRO hotel site is considered to be "uninhabited" when no rent is being paid for the use of the site and it is unoccupied by a long-term resident. An SRO hotel long-term resident or other interested party who believes that twenty-five percent or more of the total number of SROs within an SRO hotel are uninhabited may file a written statement to that effect with the director. The director or their designee shall investigate and determine whether an unpermitted conversion through vacancy has occurred. Once the director makes such a determination, a written notice that describes such determination shall be sent by the city to the SRO hotel owner, the SRO property manager, and the person who filed the written statement.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)
Any person who files an application for an SRO conversion permit may, simultaneously, and as part of the filing of such application, request an exemption from some or all of the relocation assistance requirements described in Section 8.90.080. The request shall be processed in conjunction with the application for the permit, and shall be distributed to each long-term resident household at the time of application submittal. The applicant may request, in writing, an exemption if: (i) the relocation assistance required exceeds the reasonable costs of relocation for a displaced SRO hotel; or (ii) if, as part of bankruptcy proceeding, the bankruptcy court has taken action that would prohibit or preclude the payment of relocation assistance benefits, in whole or in part; or (iii) if the relocation assistance required would eliminate all or substantially all reasonable economic value of the property for alternate uses. Any request for exemption shall contain at a minimum, the following information:
(a) 
Statements of profit and loss from operations of the SRO hotel for the five year period immediately preceding the date of the application for exemption, certified by a certified public accountant. All such statements shall be maintained in confidence to the extent permitted by the California Public Records Act.
(b) 
An estimate of the total cost of relocation assistance which would be required in compliance with Section 8.90.080. This estimate shall be based on the costs related to providing the relocation assistance, as otherwise required under Section 8.90.080.
(c) 
If the applicant contends that continued use of the property as an SRO hotel necessitates repairs and/or improvements that are not the result of the SRO hotel owner or applicant's negligence or failure to properly maintain such property, and that the costs thereof make continuation of the SRO hotel economically infeasible, then the request shall include a report by a civil engineer or licensed general contractor outlining such costs.
(d) 
If the proposed closure is due to conversion of the land to another use, an estimate of the value of the SRO hotel, an estimate of the value as is, and estimate of value after the change shall be provided. These estimates shall be prepared by a certified real estate appraiser.
(e) 
Any request for exemption filed pursuant to a bankruptcy proceeding shall be accompanied by adequate documentation regarding the case name, case number, and court in which the bankruptcy proceeding is pending, and copies of all pertinent judgments, orders and decrees of the said court.
In determining whether to waive or modify a portion or all of any type of benefit that would otherwise be due under this chapter, the department may take into account the financial history of the SRO hotel, its condition and the condition of the amenities and improvements thereon, the cost of relocation, the fair market value of the property for any proposed alternative use, the fair market value of the property for continued use as an SRO hotel, and any other pertinent evidence requested or presented. The department shall expressly indicate in its decision any waiver and the extent thereof and the reason therefor. The department determination is subject to appeal by the parties and process indicated in Section 8.90.110.
(Ord. 1665, 1/8/2025; Ord. 1667, 1/22/2025)