CA SB21

Allows cities and counties to reduce the number of replacement units required when rehabilitating or replacing single-room occupancy (SRO) buildings, provided the reduction accommodates conversion to larger units with private bathrooms and kitchens, accessibility improvements, or code compliance

Limits net loss of SRO units to 25% of total units in a development, with offsite replacement allowed for additional reductions if units meet affordability requirements and remain restricted for at least 55 years

Requires displaced SRO occupants to have right of first refusal for replacement units, with initial rent capped at no more than 5% above their prior rent (or no increase if they were paying 40%+ of income)

Deems individuals homeless for housing program eligibility purposes if they were homeless upon initial occupancy, receive continuum of care services, are transferring from an SRO undergoing rehabilitation, or are subject to an emergency transfer plan

Exempts eligible displaced or returning SRO residents from requirements to obtain housing through coordinated entry system referrals