PC 022509 - Laserfiche WebLink

Mr. Roush replied that the first sale would trigger the four-year phasing-in of market rates for those who do not qualify as lower income households. He added that the applicant has agreed to not sell any lots for at least ten years. Commissioner Fox noted that the current zoning of the property is CF (Commercial Freeway) and that she is not aware of any residential project in a CF zoning district. She inquired why the property would not need to be rezoned from commercial freeway to a residential zoning district. Mr. Roush replied that the issue is the amount of discretion the Commission has with respect to denying the application because of perceived inconsistencies with the zoning ordinance. The applicants will contend, based on existing case law, that the limit of the Commission’s or the Council’s discretion is with respect to complying with Section 66427.5 which is limited in nature. Commissioner O’Connor inquired who determines what the market rent is for the non-low-income households who choose not to purchase a condominium. Mr. Roush replied that under current State law, the park owner makes that determination and that there is no guidance on how this is to be done. He noted that the argument would be that if the price were set so high or over the market rate, the City or residents would be able to go into court to show this is unfair. He noted, however, that it was his understanding that when other owners have converted following this process, they have done it through an appraisal or market survey so there is some basis for the sales price. With respect to the ten-year waiting period and if a condominium conversion is so desirable, Commissioner O’Connor inquired why the sale would not be done immediately or within a shorter period of time after the Department of Real Estate (DRE) report is received. Mr. Dolan replied that staff did not intend to describe it as desirable but is explaining what State law indicates. Mr. Roush stated that the owner felt that, rather than placing the existing residents into a situation in 2009 where the condominium plan would be recorded and lots would begin to be sold and the residents would need to make the decision sooner than later, it was more equitable to existing residents to move that decision out ten years. He noted that there is no requirement that the owner start selling the units in ten years, and he could wait a longer period of time. Commissioner O’Connor inquired if there was any provision in State law regarding mobile home conversions that required a minimum of half the units be sold, as there was in a straight condominium project. PLANNING COMMISSION MINUTES, February 25, 2009 Page 11 of 29