SERVICE
Residential hotel ("SRO") owners: Ordinance 36-23
Residential Hotel Conversion Ordinance 36-23
What to know
Deadlines
The Ordinance 36-23 Amortization Extension Application is due no later than Oct. 24, 2024.
What to do
Changes Made by Ordinance 36-23
On March 14, 2023, the San Francisco Board of Supervisors unanimously passed Ordinance 36-23, amending Chapter 41 of the San Francisco Administrative Code (otherwise known as the Hotel Conversion Ordinance or HCO), which makes some important changes that go into effect on April 24, 2025.
Ordinance 36-23 adds a new definition for “Tourist or Transient Use” to the HCO, which will make it unlawful to rent any Residential guest room for a term of tenancy that is less than 30 consecutive days, beginning April 25, 2025. Currently, the HCO requires Residential guest rooms be rented for terms of tenancy that are at least 7 consecutive days and any rental of a Residential guest room that is less than 7 days is unlawful. Under this new definition of “Tourist or Transient Use” the 7-day minimum term of tenancy for Residential guest rooms will end on April 24, 2025.
Although the new definition is titled “Tourist or Transient Use,” Ordinance 36-23 does not affect units that are currently designated as Tourist Units.
Additionally, the new ordinance has changed the definition of “Permanent Resident” to mean a person who occupies a guest room for 30 consecutive days. Accordingly, occupants of Residential guest rooms will be deemed Permanent Residents once they have stayed an initial term of tenancy. Previously, a permanent resident was someone who occupied a room for 32 days.
Requests for Extension
Ordinance 36-23 includes a 2-year amortization period, which ends on April 24, 2025. Additionally, residential hotel owners/operators may apply to extend the 2-year period if they can demonstrate that additional time is necessary to recover reasonable investments made in the hotel. Hotel owners/operators who believe they are entitled to extend the 2-year amortization period, must submit an application, no later than October 24, 2024, to the Department of Building Inspection (DBI).
What to do
- Download and fill out the Residential Hotel Amortization Extension Application form:
Residential Hotel Amortization Extension Application
- Pay the Required Filing Fee.
Submit payment in the amount of $800.00 made payable to CCSF-DBI and write the hotel address on the memo line.
Please note the $800.00 covers the first 4 hours spent processing your application. Any additional time spent processing your application will be billed at $200.00 per hour for each additional hour spent.
- Return the Residential Hotel Amortization Extension Application
Mail in the completed application form along with all necessary back-up documentation and the required $800.00 filing fee to:
Amortization Extension Application
Attn: Timothy Wu (HIS)
49 South Van Ness Avenue, 4th Floor
San Francisco, CA 94103
Applicants may also submit their completed applications and back-up documentation via email to dbi.hishco@sfgov.org.
Applicants who email their forms are still required to pay the $800.00 filing fee.
Please note that incomplete applications will not be processed.
Partner agencies
What to know
Deadlines
The Ordinance 36-23 Amortization Extension Application is due no later than Oct. 24, 2024.
What to do
Changes Made by Ordinance 36-23
On March 14, 2023, the San Francisco Board of Supervisors unanimously passed Ordinance 36-23, amending Chapter 41 of the San Francisco Administrative Code (otherwise known as the Hotel Conversion Ordinance or HCO), which makes some important changes that go into effect on April 24, 2025.
Ordinance 36-23 adds a new definition for “Tourist or Transient Use” to the HCO, which will make it unlawful to rent any Residential guest room for a term of tenancy that is less than 30 consecutive days, beginning April 25, 2025. Currently, the HCO requires Residential guest rooms be rented for terms of tenancy that are at least 7 consecutive days and any rental of a Residential guest room that is less than 7 days is unlawful. Under this new definition of “Tourist or Transient Use” the 7-day minimum term of tenancy for Residential guest rooms will end on April 24, 2025.
Although the new definition is titled “Tourist or Transient Use,” Ordinance 36-23 does not affect units that are currently designated as Tourist Units.
Additionally, the new ordinance has changed the definition of “Permanent Resident” to mean a person who occupies a guest room for 30 consecutive days. Accordingly, occupants of Residential guest rooms will be deemed Permanent Residents once they have stayed an initial term of tenancy. Previously, a permanent resident was someone who occupied a room for 32 days.
Requests for Extension
Ordinance 36-23 includes a 2-year amortization period, which ends on April 24, 2025. Additionally, residential hotel owners/operators may apply to extend the 2-year period if they can demonstrate that additional time is necessary to recover reasonable investments made in the hotel. Hotel owners/operators who believe they are entitled to extend the 2-year amortization period, must submit an application, no later than October 24, 2024, to the Department of Building Inspection (DBI).
What to do
- Download and fill out the Residential Hotel Amortization Extension Application form:
Residential Hotel Amortization Extension Application
- Pay the Required Filing Fee.
Submit payment in the amount of $800.00 made payable to CCSF-DBI and write the hotel address on the memo line.
Please note the $800.00 covers the first 4 hours spent processing your application. Any additional time spent processing your application will be billed at $200.00 per hour for each additional hour spent.
- Return the Residential Hotel Amortization Extension Application
Mail in the completed application form along with all necessary back-up documentation and the required $800.00 filing fee to:
Amortization Extension Application
Attn: Timothy Wu (HIS)
49 South Van Ness Avenue, 4th Floor
San Francisco, CA 94103
Applicants may also submit their completed applications and back-up documentation via email to dbi.hishco@sfgov.org.
Applicants who email their forms are still required to pay the $800.00 filing fee.
Please note that incomplete applications will not be processed.