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SB 21 would allow limited unit reductions when modernizing SROs to studios, with tenant protections
Summary
SB 21 would permit up to a 25% unit reduction when converting deed‑restricted single‑room occupancy (SRO) buildings into larger studio units with private bathrooms and kitchens, coupled with tenant protections including right of first refusal, rent guardrails and replacement housing plans.
Sen. D—orazzo (presenting SB 21) told the committee the bill amends the Housing Crisis Act of 2019 to enable owners of deed‑restricted SRO buildings to modernize units—converting shared‑bathroom SRO rooms into studios with private kitchens and baths—while preserving long‑term affordability. The bill would allow a one‑time, limited reduction of up to 25% of unit count for the purpose of creating larger, more livable units and supportive service space.
Supporters framed SB 21 as a preservation tool. Tiffany Spring of the Southern California Association of Nonprofit Housing said many nonprofit‑owned SRO properties operate at a deficit and are at risk of closure; allowing careful modernization would preserve housing stock otherwise lost. Holly Benson of Abode Communities said her organization had secured $25 million from a state preservation program and 53 rental vouchers to convert and preserve 106 deeply affordable homes at the historic Mary Andrews Clark residence, but that financing and tax credit readiness depended on the statute change.
The measure includes tenant protections: right of first refusal to return, relocation assistance, rent guardrails and a required replacement housing plan. The author said tenant advocates participated in drafting. Supporters from Housing California and California Council for Affordable Housing also testified in support. No lead opposition was recorded in the hearing.
The committee moved SB 21 to appropriations (motion recorded and bill placed on call); members praised the collaboration between preservation developers and tenant advocates and said the approach could avert forced sales or demolition of deeply affordable SRO stock.
