SR 06:263 - Laserfiche WebLink

generally represents the most affordable option for households with limited income. As a result, as this housing is removed from the market in favor of ownership housing, the City loses available affordable housing stock. This not only impacts long and short term residents who may be forced to seek housing in other communities, but is contrary to the City Housing Element that seeks to assure a balance of various housing types. Nevertheless, as with other portions of the ordinance, this level of affordability is not required and the Council may determine that a different amount is more appropriate. Staff has included information in Attachment G outlining State and regional housing issues that are potentially impacted by condo conversions. Regarding the conversion review/approval process, the applicant is required to submit information to the Planning department, which will forward a recommendation to the City Council. The affordable housing proposal will be reviewed by the Housing Commission consistent with the provisions currently in place in the Inclusionary Zoning Ordinance. The Planning Commission will review any structural modifications or building expansion that would typically require Commission review. Because many condo conversions typically involve only interior improvements and exterior upgrades without building expansion or new construction, the Planning Commission's role will not be extensive. The City Council has final approval on the application to convert. Potential Removal of Moderate Income Option As indicated, the Planning Commission recommended elimination of moderate income housing as an option for meeting IZO affordability requirements. The Commission determined that because of the loss of rental housing typically meets the largest share of low and very low income housing, a project's affordable housing plan should only include these two income categories. Currently, the IZO is worded to include all three income categories including moderate income. Approving the Planning Commission's recommendation on this matter, which is highlighted with blue markings, would apply only to condominium conversion not other types of housing projects. While staff supports the intent of the Planning Commission, it anticipates that providing only very or low income ownership units could result in developer requests for City financial contributions to meet this target. As a result, approval of this alternative will most likely result in the City providing low and/or deferred interest loans to prospective owners and potentially loans or financial contributions to the developers. As a result, a full mixture of units may be SR 06:263 Page 5