SRO Hotel Deadline Alert

SRO

In March 2023, San Francisco Board of Supervisors adopted Ordinance No. 36-23, that changed the definitions that apply to the use and minimum stays in residential hotels governed by the Hotel Conversion Ordinance under Administrative Code Chapter 41. The ordinance included a 2-year grace period, so that the new rules will not become effective until April 24, 2025. The ordinance also included an opportunity to request an extension of the grace period for up to 2 additional years if the residential hotel owner or operator can show that additional time is needed to recover reasonable investments in the hotel. The deadline for filing an extension is October 24, 2024.

As of today, residential hotel rooms (SROs) must be rented for 7 or more consecutive days. On April 24, 2025, this will change to a minimum of 30 or more consecutive days, and stays that are shorter than 30 days will be considered a Tourist Use, which is generally not permitted in residential hotels, except for few limited circumstances. The general rule during the Winter season, from October 1 through April 30, is that all residential hotel rooms must be rented for residential stay lengths, which currently is 7 or more days, but after April 24, 2025 will be 30 or more days. During the Summer season, from May 1 through September 30, up to 25% of the residential rooms can in certain circumstances be rented for tourist stay lengths, which currently is 1-6 day stays, but after April 24, 2025 will be 1-29 day stays.

If you have questions regarding an extension application or are interested in applying, please contact Tuija Catalano via email at tcatalano@reubenlaw.com. Please note the deadline is next week, on October 24, 2024.

 

Authored by Reuben, Junius & Rose, LLP Partner, Tuija Catalano.

The issues discussed in this update are not intended to be legal advice and no attorney-client relationship is established with the recipient. Readers should consult with legal counsel before relying on any of the information contained herein. Reuben, Junius & Rose, LLP is a full service real estate law firm. We specialize in land use, development and entitlement law. We also provide a wide range of transactional services, including leasing, acquisitions and sales, formation of limited liability companies and other entities, lending/workout assistance, subdivision and condominium work.