Single-room occupancy units: demolition and replacement: housing assistance programs: eligibility for homeless individuals and families.

Senator Durazo's housing legislation modifies regulations for single-room occupancy (SRO) buildings, allowing local governments to reduce replacement unit requirements when converting SRO units to studio apartments or adding facilities like private bathrooms and kitchens. The bill permits unit reductions when necessary for accessibility improvements or health and safety code compliance, provided the converted units maintain affordability for low-income residents.

Under the new provisions, converted units must be completed within four years and remain affordable for at least 55 years through recorded covenants. Displaced residents receive relocation benefits and first right of refusal for replacement units, with initial rents capped at no more than 5% above previous levels. The total reduction in SRO units cannot exceed 25% unless additional units are replaced one-for-one at another location within the same community plan area or high-opportunity neighborhood.

The legislation also revises eligibility criteria for state-funded housing designated for homeless individuals. Applicants qualify as homeless if they were homeless upon initial occupancy of a prior unit, receive homeless support services, transfer from an SRO building undergoing rehabilitation, or require emergency transfer through a continuum of care program. These individuals may access units without referral through coordinated entry systems, contingent upon legislative funding.

Local jurisdictions must review detailed replacement housing plans before approving any SRO demolition or conversion permits. The plans must document current occupancy, rents, and vacancy patterns while outlining the timeline and location for replacement units. The bill maintains existing local laws and settlement agreements that provide stronger tenant protections or replacement requirements.