CA justice department threatens El Cajon over plan to fine hotels housing the homeless, city backs down

East County’s largest city will no longer have fine hotels housing large numbers of homeless people, although officials are looking to revise the rules governing who can rent rooms with county-issued vouchers.

The move came as California’s Department of Justice threatens to sue the city.

Out of eight El Cajon hotels that accept vouchers, seven were told earlier this month they faced fines if they didn’t reduce their homeless populations, part of a broader fight with the county.

Officials reversed themselves Friday, after City Manager Graham Mitchell sat down with owners.

“As a sign of good faith, the City informed the motel owners that the warning notices sent out earlier were being rescinded until further policy discussion could occur with the City Council,” according to a press release sent Friday by a spokesperson.

The statement did not mention that California officials recently told the city that the proposed fines “violate the State’s Fair Employment and Housing Act,” according to the upcoming El Cajon City Council agenda. As a result, the city faces “significant exposure to litigation.”

Council members plan to meet in closed session this coming Tuesday to discuss the situation.

Mitchell declined to comment Friday evening. A message left with the state’s justice department was not immediately returned.

‘Strengthen the ordinance’

The city’s current rules about what hotels can and can’t do are vague when it comes to vouchers.

Hotel vouchers have been a key part of the region’s response to the homelessness crisis, especially during the pandemic. While more than 1,300 were recently found to be homeless in El Cajon, the vast majority were in some form of shelter, according to the last tally by the Regional Task Force on Homelessness.

But city officials say police have repeatedly been called to hotels using high numbers of vouchers, straining resources.

Earlier this week, the El Cajon Planning Commission voted unanimously for a short resolution that said the scope of the voucher program led to “illegal drug use and disturbance of the peace.”

The commissioners ordered staff to quickly re-write the city’s zoning code, and a proposed amendment should be ready for consideration at the commission’s Oct. 4 meetings.

The update will clarify how hotel space can be used and “strengthen the ordinance so it’s more clear,” Noah Alvey, the city’s deputy director of community development, told commissioners.

The San Diego Union-Tribune reviewed warnings sent to four hotels on or near Main Street, which showed city officials justifying the fines by citing a range of local rules.

The warnings say hotel owners are in violation of municipal code “17.145.150,” which defines what’s allowed in commercial areas.

Hotels and motels only need conditional use permits, according to the code.

Yet city leaders contend that housing high numbers of homeless people effectively turned those facilities into “emergency shelters.”

The code bars shelters from downtown. Furthermore, the city’s plan just for downtown, known as Specific Plan 182, prohibits “welfare and charitable services.”

One hotel downtown that received a warning, the Travelodge on 425 West Main St., was told to “cease unauthorized operation of emergency shelter.” The warning did not say it could simply reduce how many vouchers it accepts.

At least three other hotels are in areas that would allow shelters if owners had additional permits, according to the city’s online zoning map. Spokesman David Richards said none had the required permissions.

Their three warnings also cited a section of the municipal code governing a business’ “accessory uses.”

An accessory use is a business’ side hustle, like a snack stand at a theater.

“Typically, an accessory use will not exceed 15 percent of the gross floor area,” the code says. As a result, the city ordered the hotels to reduce their voucher population to 15 percent. (Shelters also face a host of additional rules.)

The three hotels outside of downtown are the Relax Inn & Suites at 1220 West Main St., Rancho San Diego Inn at 1355 East Main St. and America’s Best Value Inn at 1274 Oakdale Ave.

While the notices said hotels would face fines starting at $100 a day if they did not comply by Sept. 16, Mitchell later said no penalties would be issued before he could sit down with owners and that people currently renting rooms could stay for the time being, as long as the hotels did not accept additional vouchers.

“The City and motel operators agreed to continue a dialogue and work towards solutions,” Friday’s press release said, and local leaders again asked the county to improve how they vet people receiving vouchers.

Staff writer Gary Warth contributed to this report.

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