LA City Council Approves Proposal to Purchase Hotel For Homeless

LOS ANGELES -- After two days of deliberations and reports, a conflicted Los Angeles City Council today approved a proposal from Mayor Karen Bass to negotiate and purchase the Mayfair Hotel for approximately $83 million for use as interim housing.

The Council voted 14-2 to move forward with the proposal to purchase the Westlake District hotel as interim housing under Bass' Inside Safe initiative, which aims to bring unhoused Angelenos inside to motels and address encampments across the city.

Council members Tim McOsker and Monica Rodriguez voted against the proposal, while Councilwoman Nithya Raman was absent from Friday's meeting.

Amy Benson, director of the Real Estate Services Division of the Department of General Services, said the city is estimated to spend $60 million in the acquisition of the hotel in its ``as-is condition.'' Bass' proposal outlined an annual operating cost of about $5.5 million, which includes
utilities, landscaping, facility maintenance and interim security until the operator contract is in place.

The city's Bureau of Engineering would conduct renovations estimated at about $22 million. In addition, an estimated $772,000 will be used to convert an existing pool into a pet area and for the installation of laundry facilities, as well as other improvements.

Funding for the Mayfair acquisition and renovation comes from Community Development Block Grants, federal funding for projects aimed at improving the quality of life for people with low or moderate incomes; Proposition HHH, a bond measure approved by Los Angeles voters in 2016 to fund housing and facilities to address the homelessness crisis; Municipal Housing Finance funds; city's general fund; Homeless Emergency Account, or Inside Safe funding; and closing credits from the deal.

The Mayfair would be used to relocate and house unhoused Angelenos specifically from Skid Row for two years before taking in unhoused people from other parts of the city.

This was a commitment by Bass' office in order to receive a $60 million encampment resolution grant to contract with a service provider.

Tanja Boykin, chief operating officer for the Weingart Center, previously said her agency would provide assurances that the operation would be different from Project Roomkey.

``This is interim housing with a goal of permanent housing in the future," Boykin said. "So while we're removing barriers through all of our clinical and medical resources, our case managers are ensuring that our clients are document-ready and are matched in the appropriate setting.''

With the Council's approval, the mayor's team will look to finalize the deal. The city will be slated to operate and maintain the hotel no later than Aug. 31 once the deal is closed.

The hotel will be reopened by January 2024 to transition occupants from the L.A. Grand Hotel and Skid Row.

-- City News Service