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<br />Honorable Mayor and Members of the City Council: <br /> <br />BACKGROUND <br />In August 2005, the City Council directed staffto review the existing Residential Condominium <br />Conversions Ordinance (Condominium Ordinance) that has been in place since the late 1980's, <br />to reflect changes in State law and to address the potential community and regional impact of <br />losing affordable rental units. The Council encouraged involvement with apartment owners <br />considering conversion and directed revisions be reviewed by the Housing and Planning <br />Commissions. <br /> <br />In establishing the process for reviewing revisions, staff assembled a committee from the Law <br />and Planning departments, the Housing Division and the City Manager's Office, and decided to <br />have the Housing Commission provide much of the work related to reviewing the existing and <br />amended ordinances and conducting public meetings. To that end, the Housing Commission <br />established a review process that included a public workshop to receive comment on the <br />proposed changes. Based on comments from the workshop and its deliberations on the matter, <br />the Commission approved the draft ordinance at its meeting of August 17, 2006. <br /> <br />Following the August 17 meeting, the draft ordinance was reviewed by the Planning <br />Commission at its meeting of October 18, 2006. The Planning Commission recommended a <br />number of changes to the ordinances as recommended by the Housing Commission, including <br />removal of the option for moderate income units to qualify as affordable units. The Planning <br />Commission's changes are redlined in the Condominium Ordinance. <br /> <br />At this time, the Condominium Ordinance is in final draft form, meaning it incorporates <br />comments received to date from the public, staff, (including the City Attorney and Planning <br />staff), and the Housing and Planning Commissions. Because of the many changes made to this <br />Ordinance, staff did not provide a redlined version showing staff and Housing Commission <br />changes. Rather, for reference, the existing Condominium Ordinance is included as Attachment <br />C. Notwithstanding the above, the redline markings on the final draft of the Ordinance <br />(Attachment A) represents changes recommended by the Planning Commission. <br /> <br />As part of the review of the Condominium Ordinance, it became apparent that the City's <br />Inclusionary Zoning Ordinance (IZO) would also need to be revised to incorporate the <br />affordable housing requirements included in the revised Condominium Ordinance. As a result, <br />in addition to a review of the revised Condominium Ordinance, staff is requesting review of the <br />changes to the Inclusionary Zoning Ordinance. The only amendments recommended to the <br />Inclusionary Zoning Ordinance are those that are redlined on Attachment B. The Housing and <br />Planning Commissions have recommended all changes reflected in red. The Planning <br />Commission also recommended removal of the option to meet affordable housing requirements <br />with moderate income housing and this change is reflected with blue markings. These changes <br />are reflected in Exhibit B. <br /> <br />SR 06:263 <br />Page 2 <br />