Owners who wish to convert their buildings may do so only if they meet a strict set of guidelines requiring them to replace the residential units within two miles of their building or pay a fee that would provide for acquisition of a new site plus 80% of the cost of constructing new units.
Councilwoman Jan Perry, who introduced the ordinance, said it would protect the city's residential housing stock while providing incentives to improve living conditions in the aging properties. Landlords who agreed to place all their units under a 55-year covenant for low-income tenants would qualify for city and state affordable housing funds.
Activists who support the new law said it provides strong protections for the city's poorest.
"We feel like it's a strong victory for tenants, one of the first victories in quite a while," said Becky Dennison of the Los Angeles Community Action Network, one of several dozen groups supporting the measure.
Veronica Perez Becker, vice president of legislative affairs for the Central City Assn., a business advocacy group, called the ordinance a "flexible policy that takes into account the needs of the business community."
Perez Becker said the ordinance "allows revitalization to continue," in part because there are provisions allowing owners to convert their buildings if they follow certain rules.
The owner of the downtown Cecil Hotel took issue with his building's designation as a residential hotel. In recent months, the Cecil has been the target of activists who allege that the owners have conducted prejudiced and illegal housing practices.
But Michael Ross told the council that most of his hotel's guests are tourists.
"We haven't been given due process," he said, adding that the ordinance would "give L.A. control over our property without recourse."
A lawyer for the Cecil filed a lawsuit against the city late Monday, seeking relief from the ordinance as well as $40 million in damages and fees.
Jane Usher, head of the city's Planning Commission, said the ordinances were important to Los Angeles' future.
"Both represent an understanding of the needs of our residents," she said. "The city needs to be home to people of every income."
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jessica.garrison@latimes.com
cara.dimassa@latimes.com
