SR 05:197 - Laserfiche WebLink

exp~rienced by other cities in the region, raises potential concerns regarding various City po'licies as well as the City's existing Condominium Conversion Ordinance. The Planning Department is currently reviewing a preliminary application for a proposed condominium conversion of 51 rental apartments at Pleasanton Manor (4408-4478 Mohr Avenue) into 43 for-sale condominiums. As noted above, this application is one of several that have been submitted to the Planning Department within the past year. The robustness of the Bay Area for-sale housing market combined with a relatively flat rental market has created a financially conducive environment for property owners to convert rental stock into for-sale units. Staff expects an increase in the number of inquiries into condominium conversions, a trend that is mirrored in other cities in the region. The purpose of this report is to provide information for discussion and to request direction from the Council so that requests for residential condominium conversions can be addressed in a manner that controls adverse impacts while maximizing the benefits of such projects. DISCUSSION The general issues raised by this new trend toward condominium conversions include: . General Plan and Housing Element (implications for existing policies and programs) . Inclusionary Zoning Ordinance (applicability for condo conversions; potential need for modifications to address affordability) . Condominium Conversion Ordinance (potential need for modifications / updates) . Regional housing needs (potential for new ownership affordable housing and potential loss of existing affordable rental housing) General Issues Rental units (especially apartments) provide a type of housing that is key to a healthy diversity of housing stock in any community. Apartments provide housing at a wide range of affordability and are the primary type of housing addressing the needs of low and very low income households. Further, rental units are a key element in providing work force housing. It is difficult to determine the number of rental units that may be impacted from this trend, and while it has been minimal in the past, staff believes that any significant conversion of rental units could have a negative impact on the diversity of the City's housing stock. If sold rather than rented, units would no longer be available to households that are not financially able or ready to purchase homes or households whose need for housing is more transitional in nature (e.g., young people, recent college graduates, elderly, etc.). In addition, the loss of rental units would likely decrease the vacancy rate for the City's remaining rental units, potentially leading to higher rents that could further exacerbate the shortage of affordable rental units leading to a long-term imbalance in the diversity of Pleasanton's housing stock. It is also recognized, SR:05:197 Page 2