Planning Commission approves conversion of Harbor Boulevard motel into 47-unit SRO housing

The Costa Mesa Planning Commission on April 28 approved a conditional use permit to convert the existing motel at 2205 Harbor Boulevard into a 47‑unit single‑room occupancy development with one manager’s unit and 46 units restricted to very low‑income households.

The commission approved Conditional Use Permit PCUP‑23‑0003 on a 5‑1 vote, with Vice Chair Zick voting no and Commissioner Andrade recused. The resolution finds the project exempt from CEQA under Guidelines §15301 (existing facilities) and approves the project subject to conditions of approval, including updated operational requirements requested by the commission.

The project, proposed by owner Dr. Nikan Khatibi of AHER Investments, would convert the motel building with a minor remodel that includes interior work to meet current building codes, landscape and parking‑lot improvements and removal of the swimming pool. The applicant proposes to rent units on an annual basis at rents targeted to very low‑income households; the project includes four double‑occupancy units (no more than 10% of the total) and the remainder single‑occupancy units. The staff report and applicant materials state the SRO units will be rented at no more than 50% of Orange County median income and that the development will provide annual occupant income verification to the city.

"This is a philanthropic arm for me," Dr. Nikan Khatibi said during the hearing, describing his intent to operate the property as long‑term housing rather than short‑term lodging. He said utilities such as water and electricity would be paid by the owner for tenants, and that the units…