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Planning Commission approves settlement-driven conversion of 38 residential hotel units at 447 Bush Street
Summary
The commission recommended approval of an ordinance that would make a tourist-hotel use principally permitted at Hotel de Arts (447 Bush St.) and waive certain fees as part of a settlement; the approval includes trading residential units at two other properties to remain subject to residential protections.
The San Francisco Planning Commission on March 6, 2025 adopted a recommendation to approve a planning-code amendment to allow Hotel de Arts, at 447 Bush Street, to operate as a tourist hotel for all 51 units, in exchange for commitments that make residential units at 412 Hayes Street and 319 Ivy Street subject to the city's hotel-conversion ordinance and related protections.
Why it matters: The action implements terms of a settlement resolving federal litigation over a 2023 Board of Supervisors amendment to the city’s hotel-conversion rules. The proposal would waive conditional-use requirements and certain impact and application fees for the conversion of 38 residential-hotel units at 447 Bush, while adding 34 residential units (and associated amenities) at two traded properties that would remain subject to minimum-stay and other tenant protections.
What the staff said: Aaron Star, manager of legislative affairs for the Planning Department, told the commission the ordinance would make tourist-hotel a principally permitted use for all 51 units at 447 Bush, waive fees for conversion of 38 residential units to tourist-hotel use, and, in return, require that the entirety of buildings at 412 Hayes and 319 Ivy be subject to the hotel conversion ordinance — creating 34 residential units with amenities and recording a notice of special restriction to enforce operating terms.
Public comment: Multiple members of the public voiced concern that allowing the conversion would reduce affordable temporary housing and might encourage similar trades elsewhere. A speaker said the conversion "eliminates affordable temporary units" and urged the commission to make clear that the action is narrowly targeted.
Commission discussion and vote: Commissioners debated the unique legal context of the settlement but repeatedly described the proposal as narrowly tailored to this specific situation. Commissioner Imperial moved to adopt the department recommendation; the motion passed unanimously, 7–0.
Outcome and next steps: The commission’s recommendation will be transmitted to the Board of Supervisors and other parties as part of the ordinance process. The settlement requires recording of restrictions and operating terms for the traded units; the department recommended approval and staff will assist with the implementation steps.
