SANTA ANA : City May Act to Slow SRO Projects

The City Council, which in April became the first Orange County city to approve regulations for single-room-occupancy hotels, is considering a policy that would block all but two proposed SROs for at least two years.

Unlike traditional rentals, SROs require only a low security deposit to move in, making them desirable for low-income workers who often are unable to come up with the first and last month’s rent and deposits for utilities.

Under Santa Ana’s proposed policy, the only projects that could be considered for approval are an expansion of a facility run by the YWCA of South Orange County and a proposal to convert the old downtown YMCA building into an SRO.

The council voted 6 to 1 Monday night to delay a vote on the policy because the city’s plans to purchase the YMCA building are not yet final.

City officials said the policy is needed because a dozen developers have expressed interest in opening SROs in Santa Ana. “It was not the intent of the city to become the SRO capital of Orange County,” said Kenneth Adams, the city’s planning manager.

So far, the only developer to apply for an SRO is Civic Inn Partnership, which wants to convert the Civic Center Inn at 811 N. Broadway into an SRO. Company officials have expressed anger about the proposed policy.

“They want to stop our project and feel like this policy is the easiest way to kill it,” said Daniel G. Dulac, a partner in the company that plans to build an SRO with 150- and 180-square-foot apartments, a laundry room and other amenities.

Stephen Quartararo, another partner, estimates that the company has spent at least $500,000 so far on the project, $15,000 of which he said has gone toward preliminary planning fees charged by the city.