Providing Input on the Draft Mello Act Ordinance

As per our mission to protect affordable housing, CPV has provided input to City Planning in order to try to influence the new Mello Act ordinance. The City Council Motion requesting the new Mello Act Ordinance states:  

"Los Angeles…is suffering from a housing crisis, and the affordable housing crisis has reached extreme and epic levels. The Los Angeles rental market is one of the least affordable in the country. Existing affordable housing is under assault. Families are being displaced from their long-time homes and neighborhoods, contributing to homelessness. The problem is particularly acute in coastal areas…” and “The City must do everything it can to ensure that it is protecting affordable housing opportunities.” 

With this in mind, CPV has made the following comments on the draft Mello Act Ordinance:

1. The "owner-occupancy" exemption must be discontinued. The Mello Act does not require an owner-occupancy exemption. This exemption has been subjected to a significant amount of abuse in the past and the City has not enforced against these abuses when brought to their attention. Owners eagerly sign affidavits declaring they are owner occupants when they are not. If we are going to do everything we can to protect affordable housing, all projects should be subject to a 5-year look back for affordable housing, similar to other current and proposed regulations.

2. We strongly recommend against any provisions in the Mello Ordinance that would allow for the demolition of 100% residential structures for purposes of a nonresidential/commercial mixed-use project. As per Government Code 65590, the Mello Act: “The conversion or demolition of any residential structure for purposes of a non-residential use which is not coastal dependent…shall not be authorized unless the local government has first determined that a residential use is no longer feasible in that location…” 

With the draft Mello Ordinance, the City is attempting to change the Mello Act state law to say: “The conversion or demolition of any residential unit or use for purposes of a non-residential use which is not coastal dependent…shall not be authorized unless the local government has first determined that a residential use is no longer feasible in that location…”

The City would exceed its jurisdiction by changing the wording and meaning of the Mello Act in this way and ignore or change the requirement that 100% residential structures cannot be demolished for purposes of a nonresidential use. We must protect all housing in the Coastal Zone and cannot dilute such protection by allowing demolitions of 100% residential structures for purposes of building a nonresidential/commercial mixed-use project, which is a hybrid commercial/residential use and is commercial in nature. Even if the number of units remains the same, this would erode the character of the property and surrounding area. Allowing this would result in extending commercial corridors that now include 100% residential structures and will serve to chip away at the existing housing.  In addition, once rental units become part of a commercial mixed use project, it is difficult if not impossible to protect them from abuse such as use for storage, offices or other retail uses.

3.   Under the Mello Act, proposed Zone changes from residential to any other zone require a Mello Act Compliance Review in order to assure the change will not result in the conversion of any residential structures to non-commercial uses, which includes mixed use.