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Committee backs fix to stop speculative density-bonus valuations for hotels
Summary
AB 2,181 would require density-bonus potential to be counted in hotel and motel valuations only when residential redevelopment is actually pursued, approved and invested. Supporters said the change protects hotel ground-lease economics and hospitality jobs; the committee passed the item unanimously.
Assemblymember Ziburr presented AB 2,181 as a narrow technical fix that limits the use of theoretical density bonuses in appraisals for hotels and motels. "AB 2,181 provides a simple guardrail where density bonus can only be considered in valuation when it's pursued, approved, invested," the author said, describing the change as a protection for hospitality workers and existing businesses.
Union and industry supporters spoke in favor. Matt Broad, representing co-sponsor Unite Here International, told the committee the bill protects union jobs and prevents speculative appraisals that raise lease rents. Delilah Clay of the California Hotel and Lodging Association also spoke in support. No opposition witnesses were present for AB 2,181.
The committee took a roll-call vote and recorded the item out of committee by an affirmative margin (clerk announced a 10-to-0 result). The author said the bill does not change density-bonus eligibility or restrict housing production; it ties valuation benefits to concrete, approved development activity.
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