The single room occupancy hotel housed at 500 West Broadway, in the YMCA building, will vacate the premises. This week, the city council approved a city agreement with the 500 West owner to sell the property and use the sales money to repay the city for a building rehabilitation loan the former redevelopment agency gave the owner.
Filling the building with single occupancy hotel rooms housed by a new owner is not necessary. The city council ruled out a need to replace the SRO Hotel rooms. The 500 West building houses 260 single occupancy rooms, and a restaurant and fitness center on the first floor.
Fifty two of the rooms have been used for low income rooms offered to seniors and the mentally ill and homeless. The 90 to 100 square foot affordable rooms do not meet minimum standards for some housing subsidy programs.
The downtown affordable housing market is shifting to larger room buildings.
The owner had agreed to offer the affordable rooms until 2032.
The historic site stands in a Broadway corridor in the Columbia neighborhood the city is revitalizing. Commercial businesses surround the location.
In addition to the rehabilitation loan repayment money the city will put in a low and moderate income housing fund, the city expects an increase in property taxes at 500 West Broadway, and increases in sales and TOT taxes.
This is a Center Line Policy Alert.