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VICTORY FOR AFFORDABLE HOUSING IN SAN
FRANCISCO
On March 4, 2002, in San Remo Hotel v. City
and County of San Francisco, the California Supreme Court
rejected a takings challenge to efforts by San Francisco to
address its low-income housing crisis through reasonable restrictions
on the conversion of residential hotels to tourist use.
San Francisco enacted its affordable housing
ordinance based on findings that the City
suffers a severe shortage of affordable
rental housing; many elderly, disabled,
and low-income persons reside in residential
hotels; and available residential hotel
units decreased dramatically in recent
years due to conversion to tourist use.
Indeed, every time a moderately priced
residential hotel room is converted to
tourist use, the city's low-income housing
stock decreases. The affordable housing
ordinance requires no changes to existing
property use, but instead simply requires
owners who seek greater profits by converting
their properties to tourist use to build
affordable replacement units, or pay a
fee based on a portion of the replacement
costs.
In upholding the ordinance, the Court ruled
that it bears a reasonable relationship
to the legitimate public interest in providing
affordable housing. The ruling is good
news not only for cities and counties
that have affordable housing shortages,
but also for any municipality that seeks
to protect community rights through the
imposition of impact fees on a general
class of regulated landowners.
CRC filed an amicus brief in the case in
support of San Francisco on behalf of
67 California Cities, the California State
Association of Counties, and the International
Municipal Lawyers Association. For a copy
of the opinion, click
here.
This case has recently garnered
some media coverage:
1. Los Angeles Times, March
5, 2002
"High Court Upholds County, City
Fees on Hotel Conversions"
2. San Francisco Chronicle,
March 5, 2002
"State high court upholds S.F. hotel
conversion law"
CRC's
Amicus Brief in support of San Francisco (PDF format)
CRC's
Amicus Letter Requesting Review
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