What It Takes To Turn An Underused Hotel Into A Haven For LA's Unhoused

The city of Los Angeles is preparing to consider three prospective developments that would add 213 units of interim homeless housing as the city's homelessness crisis persists. 

Two of the three projects would be completed by a group called Hope the Mission and partner Community Development Resource Group. The projects would be funded through the third round of a statewide project called Homekey. 

Homekey began in 2020 and has since created more than 12,700 permanent and interim homes spanning 210 projects across California. The state has invested $3.4B in the program so far, it said in a release.

A veteran of the Homekey process, Hope the Mission has already completed four projects through the pandemic-era program that offers state funds to buy and renovate existing structures for homeless housing. 

One of the sites the city is considering is a Motel 6 in North Hills that, if selected, would become an interim housing development with 110 units of supportive housing and offer services. It is estimated to take eight months to complete. The other project is a hotel called the Oak Tree Inn on Ventura Boulevard in Encino, which would be turned into 26 units of interim housing for transition-age youths, or 18- to 24-year-olds who have aged out of the foster care system. It is also estimated to take about eight months to complete. 

The whole process starts with finding a willing seller, Hope the Mission CEO Ken Craft said. 

"Not everyone wants to sell their hotels and motels, so our broker has to find people that are willing to sell and sell at a reasonable price," Craft said. 

Because of the complex nature of these projects, with so many government organizations and approvals involved, the escrow period could last 60 days or last a year, Craft said. That means the seller also has to be comfortable with "a prolonged escrow period with no guarantees."

"That's the deal, because this process takes time," he said.

BRC Advisors Senior Vice President Ramtin Rafiee, the broker who helps Hope the Mission and other nonprofits find and buy Homekey sites, said that to find ideal sites, he looks for troubled properties — hotels and motels that are nuisance properties, the ones that generate the most police reports. Often, Rafiee said, these are places where drugs are sold and used or where sex work is common. 

"No one wants to sell at the beginning," Rafiee said.

But then, he presents all that negative information — the police reports, the documentation of trouble at the property.

"The way we describe it sounds like [selling] might be the best way for you to do good and [give] back to the community by closing down your business, this nonprofit organization takes over and helps people," Rafiee said.

He and his firm have worked on about 30 properties in the city and county for Homekey.

Location is also critical, Craft said. Sometimes a motel with a willing seller just isn't in an area that is connected to the services such as grocery stores or public transportation that residents of these projects would need access to.

"We have to make sure this is a location that the county or city will agree to," Craft said, adding that local support plays a critical role in securing state approvals. 

As is the case with most projects attempting to house homeless Angelenos, Homekey projects have received community pushback.

Because these are public projects that cities and counties sponsor, support from the community and local elected officials is critical as well. Hope the Mission's projects are headed to a city council committee but must be approved by the full council before they can be submitted to the state for funding.

"It takes a lot of work, a lot of due diligence for the owner and for the city to feel comfortable," Rafiee said. 

Although the process has its challenges, Craft said the idea of using existing structures for these purposes is faster than ground-up building and means that more people can be housed quickly. 

"Innovations such as this, and working with the public and private sector, is something that needs to become the norm as we move forward," Craft said.