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<br />-however, that the conversion of rental units to ownership may provide certain benefits, such as <br />pro~iding more diversity in ownership housing and affordable entry level for-sale housing. <br /> <br />The following table summarizes some of the pros and cons of rental unit conversions: <br /> <br />PROS <br /> <br />. Creation of new ownership housing that is <br />of smaller size and "affordable by design" <br /> <br />. May provide opportunities (e.g., through <br />amendments to the Inclusionary Zoning <br />Ordinance) to secure more income- <br />restricted ownership housing to meet <br />regional housing needs <br /> <br />. Will potentially result in upgrades to some <br />existing older rental complexes <br /> <br />· May result in the creation of larger family <br />units (i.e., more bedrooms) to meet market <br />demand <br /> <br />· Would yield increased tax revenue to the <br />City through increased tax basis and <br />property tax revenue. <br /> <br />General Plan / Housing Element Goals and Policies <br /> <br />CONS <br /> <br />. Permanent loss of rental units that are <br />traditionally the most affordable housing <br />and provide the bulk of workforce housing <br /> <br />. Inclusionary Zoning Ordinance is <br />currently unclear regarding the <br />requirement to provide affordable units in <br />condo conversions <br /> <br />· Affordability of "affordable by design" <br />housing cannot be controlled <br /> <br />· Potential overall reduction in the total <br />number of housing units in the city <br /> <br />· Will likely result in the displacement of <br />existing rental housing tenants <br /> <br />· May increase rents in remaining rental <br />stock thereby exacerbating the City's <br />dearth of affordable housing <br /> <br />The Housing Element of the City's General Plan includes various policies related to type, <br />tenure, and affordability of the City's housing stock. The following references from the <br />Housing Element relate to the issue of condominium conversions: <br /> <br />Goal 1: Attain a variety of housing sizes, types, densities, designs and prices that meet <br />the existing and projected needs of all economic segments of the community. <br /> <br />An increase in condo conversions has the potential to affect the above goal both positively and <br />negatively. On the positive side, it could increase the availability of ownership housing units <br />that are smaller in size and hence at the lower end of the price range. This will meet the needs <br /> <br />SR:05: 197 <br />Page 3 <br />