A ballot measure in Los Angeles that would have required hotels in the city to house the homeless along with paying guests has been officially withdrawn from consideration. However, the Los Angeles City Council also passed an ordinance to replace the ballot measure that some local hoteliers also protest its passage.

The new ordinance allows hotels to voluntarily offer vacant rooms for interim housing for the homeless. It also mandates developers to obtain a conditional use permit, subject to public review, ensuring they replace any housing lost due to new hotel development. Additionally, a police permit is required for hotel developers, existing hotel owners, and short-term rental property owners, screening for criminal history or public nuisance issues.

While AAHOA and other hospitality associations praised the withdrawal of the Unite Here ballot measure, some hoteliers, including Ray Patel, president of the Northeast Los Angeles Hotel Owners Association, expressed dissatisfaction with the new ordinance, particularly the police permit requirement. AAHOA acknowledged the voluntary housing component but recommended changes to the police permitting section, expressing concerns about potential negative impacts on hotel values, financing, and investments.

AAHOA is asking that the Los Angeles Planning and Land Use Management Committee consider the impact the police hotel permit will have on the local hotels, especially the limited-service hotels owned by minority and immigrant hoteliers.

“A diminution in the value of the hotels and/or an inability to obtain or maintain financing will be most detrimental to those who need the most protection,” AAHOA said.

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Read AAHOA’s response to the recently passed hotel ordinance