The loss of motels that served as low-income housing in Costa Mesa will be the community’s gain in new, affordable homes, under lawsuit settlements reached between the city, a motel property owner and former motel residents.
Over three years, the city was sued for its law limiting continuous hotel stays – meaning low-income residents who used the motels as housing had to move every 30 days – and for the approvals of a project to redevelop the former Costa Mesa Motor Inn property with a 224-apartment complex.
The settlement announced Tuesday concludes the three lawsuits against the city, requiring a payout and a long-term commitment to developing and maintaining affordable housing.
“It’s important because we have, obviously, a severe affordable housing shortage in Orange County and in Costa Mesa in particular,” said attorney Mark Erickson, who represented some of the former motel residents.
The city will pay $1.36 million of the $2.32 million settlement; the rest will be paid by Miracle Mile Properties, which owns the Motor Inn property.
Several former motel residents who were plaintiffs in the suits will receive a share of $250,000 in compensation, and a $600,000 fund will be created to help other displaced motel residents.
Under the settlements, Costa Mesa also will seek proposals to operate and potentially renovate or completely overhaul eight complexes totaling 30 apartments that are owned by the city’s housing authority. Those homes were required to remain affordable for another 25 years, but the settlement extends that term to 55 years, city spokesman Tony Dodero wrote in an email.
The city also agreed to pursue other affordable housing projects, specifically at the Fairview Developmental Center, a state-run facility set to close in a few years.
Costa Mesa Mayor Sandra Genis said Wednesday that although she didn’t vote for the redevelopment proposed at the Motor Inn because she was concerned about the density, she’s pleased by a settlement provision that requires nine of the new apartments to be reserved for very-low-income residents. The original plans promised 20 units for moderate-income families, but nothing for poorer residents. The complex has been reduced to a total of 200 units.
“It’s not a good thing to have a family living in a motel, but you know what, it’s even worse if they’re living in a car,” she said.
Finally, the settlement requires the city to revisit – but not necessarily change or repeal – the 30-day cap on motel stays.
Erickson said the plaintiffs would like to see the rule go away, and he hopes the City Council will “come to appreciate that putting more people out on the streets is not going to help the problem.”
Genis said she’d be open to changes that would relax some of the rule’s provisions and potentially let motel stays exceed 30 days if there were adequate security and monitoring to avoid creating “a problem for the community at large.”
