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Mr. Conway stated that a great deal of time has been spent working on this project and he felt it is a way to provide additional affordable housing in Pleasanton. He stated the leasing and purchase program goes beyond the require- ments of the ordinance; he felt it is a good concept which should be approved. - There being no further testimony, Mayor Butler declared the public hearing closed on this item. Councilmember Wood asked about the vacancy rate factor. Mr. Conway advised there are twelve units vacant at the present time and that there is a complete turnover about every two years. Councilmember Mercer asked about the improvements for upgrading to meet current code levels. Mr. Conway stated these are cosmetic changes to bring the project up to code standards and that residents will be given the option of whether or not they want to upgrade or to apply the credit of $5,000 to their down payment for purchase. Councilmember Mercer asked how long the conversion process will take to accom- plish. Mr. Conway stated it would be sometime in the near future or as soon as economically feasible. He stated that no work will be done prior to selling the units. Councilmember Mercer questioned the request to waive the ordinance and allow a provision for future rent increases. Mr. Conway stated they are not sure when they will be able to sell the units; and that if the units are on the market for a longer period of time than anticipated then the developer feels he should be able to have rent raises, otherwise it would create a hardship on the developer. Mr. Conway stated he felt the waiver to allow the rent increases is in order because there will have to be a favorable economic climate in order to sell the condominiums, and this can be done in phases. Councilmember Brandes stated that nowhere in the staff report is there any con- sideration of this being a phased project. He asked if it will be a phased project and whether Council can determine if it can or cannot be a phased project. The City Attorney advised that Council can control phasing. The City Attorney asked Mr. Conway whether he planned to phase the subdivision or just the physical improvements. Mr. Conway stated that by phasing he meant that the construction process would be done in an orderly fashion and in a continuous manner. He stated that in the proper economic climate the less time it takes to sell the units the more advantageous it will be and that he did not want to drag out the project. Mr. Ken Ambrose, partner Del Prado Homes, stated that his concern regarding rent control is the fact that if the units cannot be sold in six months to three years, it would create a severe hardship on the owner if rents were not allowed to be increased during this time. He stated that .a number of the units are committed to senior citi- zens and handicapped for a number of years and that units will be offered to existing residents. He stated that improvements will be accomplished as units are sold and that depends on the economic market. Councilmember Mercer stated that Council spent considerable time weighing the merits of the condominium conversion ordinance when it was passed and were more con- cerned with protecting the tenants than with conversions. He stated this particular application does not have adequate on-site parking, there is no space for campers, boats, etc., and now the applicant is asking to convert without a time schedule and also asking to waive the protection of renters regarding rent increase. 5. 1/25/83