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

Senator Durazo's housing legislation modifies California's requirements for rehabilitating and replacing single-room occupancy (SRO) buildings while maintaining protections for low-income tenants. The bill permits local jurisdictions to reduce the number of required replacement units when converting SRO buildings to studio apartments or larger units, provided specific conditions are met.

Under the proposal, unit reductions must be necessary to accommodate private bathrooms, kitchens, community rooms, or accessibility improvements. Converted units must remain rental properties with rents at or below the previous SRO rates for at least 55 years. Displaced residents receive a right of first refusal for replacement units, with initial rents capped at 5% above their previous rates. The total reduction in SRO units cannot exceed 25% unless additional units are replaced one-for-one at another location within the same community.

The legislation also establishes new eligibility criteria for individuals displaced from rehabilitated SRO buildings. Residents who were homeless upon initial occupancy, receive homeless services, or transfer from an SRO building undergoing conversion qualify for replacement housing without requiring referrals through coordinated entry systems. Property owners must submit detailed replacement housing plans before receiving demolition or conversion permits, including documentation of current occupancy, rent levels, and timelines for making replacement units available.

Local jurisdictions retain authority to enforce stricter requirements for demolition restrictions, unit replacement, or relocation assistance. The bill's provisions regarding eligibility for replacement housing require separate legislative funding for implementation.