SR 06:263 - Laserfiche WebLink

DISCUSSION As indicated, the Housing Commission has approved comprehensive changes to the existing Condominium Conversion Ordinance. The ordinance establishes regulations and requirements covering the conversion of an apartment project with rental units to a project that is comprised of ownership units. It is intended to provide a means of minimizing or avoiding the hardship caused by the displacement of households unable to purchase their rental units, to maintain diversity of housing at all income levels, to assure that conversions comply with applicable building codes and to establish a public review process. While the existing ordinance addressed the needs of the elderly and handicapped, it did not specifically address the potential impact on low income households which is addressed in the revised ordinance. A summary of the major provisions of the revised ordinance is as follows: Covers projects with and without a final subdivision map, CC&R's and a condominium plan unless the project has continuously maintained a final subdivision public report from the State Department of Real Estate. The ordinance assumes that if a project were approved and constructed as a condominium and if it maintained a State Department of Real Estate public report from the time of initial approval to the current time, then the project is not subject to the ordinance and individual units within the project can be sold at any time without the requirements included in the ordinance. This provision is consistent to a generally held legal position based on current case law. (See- Section 17.04.020 (B)) (Note, staff has included a listing of condo and apartment developments as Attachment F) Requires the development to conform to then existing building code condominium construction standards in place at the time of conversion, unless the development was approved and constructed as a condominium project at the time of initial approval. (17.04.040) Requires noticing to assure tenants are informed of conversion plans and schedules. (17.04.050 (A)) Limits rent increases for existing tenants to the CPI with a maximum of 5% during the conversion period. (17.04.050 (C)) . Provides special leasehold rights allowing retention of residency for seniors (9 years), handicapped (9 years), and very low income (3 years) and low income (lyear) families who have occupied a unit for at least 24 months. These leasehold rights commence from the time the developer submits to the City its intent to convert. Both the Housing Commission and staff recommended that low income families be provided with one year of residency. The Planning Commission recommended a period of two years for this category. Due to the availability of rental housing for low income households, the one year timeframe seems adequate, however, staffs recommendation includes the two year timeframe as recommended by the Planning Commission. (17.04.050 (D)) SR 06:263 Page 3