Understanding the City's Draft Resident Protections Ordinance

In response to the ongoing affordable housing crisis, the City of Los Angeles has introduced a new legislative proposal, the "Resident Protections Ordinance," drafted on March 12, 2024. This ordinance aims to enhance the protection of residents and ensure compliance with state housing laws. Below, we provide a detailed overview of the key components and implications of this ordinance for the affordable housing industry.

1. Purpose and Scope of the Ordinance

The primary purpose of the Resident Protections Ordinance is to codify housing replacement requirements, offer protections related to the demolition of housing units, and establish new regulations regarding affordable housing development. This ordinance is a comprehensive amendment to Chapter 1 of the Los Angeles Municipal Code (LAMC), including new sections and modifications to existing ones.

2. Demolition of Housing Units

Development Projects Impacting Housing Units:

  • The ordinance stipulates that any development project resulting in the demolition of housing units must comply with state law and extend requirements past January 1, 2030.

  • Protected units include those subject to affordability covenants, rent stabilization ordinances, or occupied by lower-income households within the past five years.

Replacement Requirements:

  • Units occupied at the time of application must be replaced according to size and cost.

  • If the incomes of occupants are unknown, replacements must reflect the proportional share of lower-income households within Los Angeles.

3. Approval of Housing Development Projects

No Net Loss of Dwelling Units:

  • The city will not approve housing development projects that result in a net loss of residential dwelling units unless replacements meet specific criteria.

Off-Site Replacement Housing:

  • Off-site replacement units must be equivalent or larger, maintain the same affordability levels, and be within a three-mile radius of the original site.

4. Existing Occupant Protections

Right to Remain:

  • Occupants have the right to remain in their units until six months before construction begins, provided proper notice is given.

Right to Return:

  • Displaced occupants must be offered the right to return at the same rental rate if demolition does not proceed.

Right to Relocation:

  • Relocation benefits are provided for occupants of affordable rental units, ensuring they are supported during transitions.

5. Length of Affordability for New Units

Covenant Requirements:

  • New housing developments must include covenants ensuring affordability for at least 55 years, or longer if required by specific funding programs.

  • This applies to projects qualifying for density bonuses or other incentives.

6. Allocation of Restricted Affordable Units

Affirmative Marketing and Fair Housing Outreach:

  • Sales or leases of restricted affordable units must follow affirmative marketing guidelines set by the LAHD.

Affordable and Accessible Housing Registry:

  • All restricted units must be registered on an accessible housing registry managed by the LAHD.

Priority Populations:

  • The ordinance prioritizes housing for those displaced by government actions, such as through the Ellis Act or rent increases due to the termination of public funding.

7. Unit Design and Quality Standards

Mixed-Income Housing Developments:

  • The LAHD is empowered to establish requirements for unit design, size, quality, and distribution within mixed-income housing projects to ensure compliance with fair housing laws.

Conclusion

The Draft Resident Protections Ordinance represents a significant step towards addressing the affordable housing crisis in Los Angeles. By mandating the replacement of demolished units, protecting existing tenants, and ensuring long-term affordability, the city aims to create a more stable and equitable housing environment. For those involved in housing development, it is crucial to understand these new regulations and their implications fully. This ordinance not only sets a precedent for protecting vulnerable populations but also provides a framework for future housing developments to contribute positively to the community's fabric.


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Key Updates on Executive Directive 1 (ED 1) for Affordable Housing Development (March 2024)