LA’s old residential hotels keep people off the streets — but they’re in financial peril

Often described as housing of last resort for some of the city’s poorest renters, single-room occupancy buildings in Los Angeles are operating at a financial loss — and losing more money every year.

That’s according to a November report from Enterprise Community Partners, an affordable housing nonprofit. The report surveyed 39 buildings across California. It found that only two — both located in San Francisco — have positive cash flow.

All of the L.A.-area properties are run by organizations that keep buildings financially afloat by digging into their own budgets, making up for rental income that isn’t enough to cover operating costs.

“Owners that are carrying these properties are really trying to make them work,” said Marc Tousignant, who oversees vulnerable populations for Enterpr