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HomeMy WebLinkAboutItem 6.2 RentalAvailOrdRepeal ~ ';0,. CITY CLERK FUel D~~IQ]-~ ~' ...", ~~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: July 23, 1996 SUBJECT: PUBLIC HEARING P A 96-019 Rental Availability Ordinance Repeal '_ JAlj/- (Report Prepared by: Tuba Huston, Associate Planner) (1"- i: ~:. . EXHIBITS ATTACHED: A. Ordinance Repealing Chapter 8.04 of the Dublin Municipal Code (Rental Availability Ordinance) B. Staff Report :from July 9, 1996 City Council meeting. RECOMMENDATION: 1.) , I1.U 2) · ~v ~ 3) 4) 5) Open continued Public Hearing and hear' Staff presentation. Take public testimony. Question Staff and the public. Close public hearing and deliberate. Waive second reading and adopt Ordinance repealing the Rental Availability Ordinance FINANCIAL STATEMENT: None . DESCRIPTION: . ~ This is 1he second reading of an Ordinance proposed to repeal Chapter 8.04 of the Dublin Municipal Code, known as the Rental Availability Ordinance. The Rental Availability Ordinance was established to require that 100.10 of the total number ofunits in all new multifiJmily projects .ofmore than ten units be maintained as rental units for a period of five years. In ~,infoIII18tion was presented to the City Council indicating that the City's objective regarding rental housing availability is being met by the housing market, 'without application' of the Rental . Availability Ordinance, and that the Ordinance is no longer necessary. Recently, supplemental studies were conducted indicating that the majority of apartment complexes within the City are maintaining their units as rentals, rather than converting them to condominiums. Therefore, the conclusion that the City's goal regarding rental housing availability is being met by the housing market, appears to be valid. The Planning Commission held a public hearing on the repeal of the Rental Availability Ordinance and related General Plan Housing Element Amendment at its May 21, 1996 meeting. The Commission recommended the City Council approve a Negative Declaration of environmental impact, adopt a General Plan Housing Element Amendment, and repeal the Rental Availability Ordinance. :". ---------_...---------------------------_........,-------:-----""""*'-'-....-....----------- COPIES TO: In..House Distribution lTEMNO: -"4 .. The City Council considered the repeal of the Rental Availability Ordinance at its May 28, June 11, and July 9, 1996 meetings. Following a public hearing and discussion at the last meeting, the Council majority voted in favor of proceeding with the repeal of the Ordinance. A Resolution was adopted approving ,a Negative Declaration of environmental impact, and adopting a General Plan Housing Element Amendment..~.\ The repealing Ordinance was introduced, and continued to the July 23, 1996 City Council meeting for the '.:",:.: second reading. Staff recommends that the City Council conduct a public hearing, deliberate, and: 1) waive the second reading and adopt the Ordinance Repealing Chapter 8.04 of the Dublin Municipal Code, the Rental Availability Ordinance (Exhibit A). e:'" .... g:\pa#\1996\960 19\srcc7 -23. .:, ..:....;. 2 ORDINANCE NO. . AN ORDINANCE OF THE CITY OF DUBLIN ---------------------------------------------~-------------------------~--------------~-------_.------------------ REPEALING CHAPTER 8.04 OF THE DUBLIN MUNICIPAL CODE KNOWN AS THE RENTAL AVAILABILITY ORDINANCE THE CITY COUNCIL OF THE CITY OF DUBLIN DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Chapter 8.04 of the Dublin Municipal Code, known as the Rental Availability Ordinance, requiring that a minimum of 10% of the total number of units in all new multifamily projects of more than ten units be maintained as rental units for a period offive years, is hereby repealed. Section 2. This ordinance shall take effect and be in force thirty (30) days from and after the date of its final adoption. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 39633 of the Government Code of California. PASSED, APPROVED, AND ADOPTED BY THE CITY COUNClL OF THE CITY OF DUBLIN on this 23rd day of July, 1996, by the following votes: .' Ayes: Noes: Absent: Abstain:" .. Mayor Attest: City Clerk . g:\pa#\1996\pa960 19\ord\1996ord.doc EXHIBIT A 1 , CITY CLERK File # D~!a][Q]-[g][Q] AGENDA STATEMENT CITY COUNCIL MEETING DATE: July 9,1996 .:: PUBLIC HEARlNG P A 96-019 Rental Availability Ordinance Repeal . " (Report'Prepared by: TashaHuston, Associate Planner) jj)t SUBJECT: EXHIBITS ATTACHED: B. C. D. E. RECOMMENDATION: ~ 1.) /1V 1':- 2) . '-i 3) "'! 4 ) 5) 6) 7) FINANCIAL STATEMENT: None DESCRlPTION: . A Resolution .t;,pproving Negative Declaration, and adopting General Plan lunendment Ordinance Repealing Chapter 8.04 of the Dublin Municipal. Code (Rental Availability Ordinance) Anthony Hurt Survey Original Staff Survey Updated Staff Survey Open continued Public Hearing and hear Staff presentation. Take public testimony. Question Staff and the public. Close public hearing and deliberate. Adopt Resolution (Exhibit A) Approving Negative Declaration and adopting General Plan Amendment \J..7aive readIDg and Introduce Ordinance repea.ling.ihe Rental Availability Ordinance (Exhibit B) Schedule second reading for July 23. 1996 meeting .-\ '.. - -. ; - ~. Chapter 8.04 of the Dublin Municipal Code, known as the Rental Availability Ordinance. was established to implement one of the City's General Plan Policies regarding the provision of rental housing in the City. Tne pmpose of the Rental Availability Ordinance is to require that 10% of the total number of units in all new multifamily projects of more than ten units be maintained as rental units ror a period of five years. At the March 12. 1996 City Council meeting, information was presented regarding the City's current rental housing situation. luter considering the information presented. the City Council detennined that the City's objective regarding rental housing availability is being met by the housing market. and that the Rental Availability Ordinance is no longer necessai")'. The Council directed staff to begin proceedings to repeal the Ordinance. The repeal of this Ordinance v,rill also require an amendment to the Rousing Element of the Dublin General Plan, to maintain consistency. .:.' '" '.. ------------------------------------------------------------------- .'. .....- . COPIES TO: In-House Distribution . . '. ITEMNO.M B , T,he Pl2l11ling Commission held a public hearing on the repeal of the Rental Availability Ordinance and related General Plan Housing Element Amendment at its May 21, 1996 meeting. After deliberation, the Commission voted to recommend that the City Council approve a Negative Declaration of environmental impact, adopt a General Plan Housing Element Amendment, and repeal the Rental Availability Ordinance. . The City Council considered the Rental Availability Ordinance repeal at its May 28, 1996 meeting. FolIov.':ing a public hearing and discussion, the Council voted in favor of proceeding with the repeal of the Ordinance. The repealing Ordinance was introduced, and continued to the June 11, 1996 City Council meeting. .....-.. .. The City Council held a public hearing and second reading of the Ordinance repeal at its June 11, 1996 meeting. Questions were raised regarding the survey methodology used to determine the percentage of multi-family rentals within the City. By majority vote, the Council directed staff to re-check the counts from the previous staff survey and validate its conclusions. A summary of the previous survey results and the updated survey is discussed below. The first information regarding the number of rented units in the City was obtained from a survey conducted by Anthony Hurt & Associates which indicates that attached housing units in the City of Dublin tend to provide nearly 30% of the units as rentals (see Exhibit C). The original staff survey provided supplemental information on the rental rates of condominium projects in the City, which indicates a 20-30% rental occupancy rate for these developments (see Exhibit D). Staff performed an e"--panded and updated survey of multi-family projects within the City following the . June 11, 1996 Council Meeting (see Exhibit E). This study included apartment complexes as well as : condominium and townhome developments, and concluded that approximately 10% of existing , condominium and townhome proiects are being rented, and the overall rental rate for all multi-family projects in the City is approximately 68%, including apartments, townhomes, and condominiums. Based upon this information, it appears that the majority of apartment complexes within the City are maintaining their units as rentals, rather-than converting them to condominiums. Therefore, the conclusion that the City's goal regarding rental housing availability is being met by the housing market, and that the Rental Availability Ordinance is no lODger necessary, appears to be valid. ., Staffrecommends that the City Council conduct a public hearing, deliberate, and: I) adopt the Resolution _il..pproving a Negative Declaration and Adopting a General Plan Housing Element Amendment (Exhibit A); 2) waive reading and introduce the Ordinance Repealing Chapter 8.04 oftbeDublin Municipal Code, the Rental Availability Ordinance (Exhibit B), and schedule the second reading for the July 23, 1996 meeting. . f::,?a#\1996\96019\srcc7-9. 3 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN '" '" '" '" ""'"'' '" "'''''''' ""'" .': ADOPTING A I\~GATIVE DECLARATION A!\"1) ..l\.PPROVING A GENERAL PlAN TEXT AMENDMENT REGARDING THE REPEAL OF THE RENT.AL A VAJLAJULITY ORDINANCE 'WHEREAS, the City of Dublin Housm~(Element Section IIIE., dictates that the City shall require a percentage of units in large multi-family projects be rented for a specified period ohime; and 'WHEREAS, the related City of Dublin Housing Element Policy objective is to "Insure availability of rental units in Dublin"; and \\'HERE...t\..5, Chapter 8.04 of the Dublin Municipal Code, known as the Rental Availability Ordinance, implements the above-cited General Plan Policy and Housing Strategy; and "7JlEREAS, the City Council has considered survey information, attached to the staifreport from the May 28, 1996 City Council meeting, which indicates that the housing market is achieving the intent of the above policy and Ordinance; and \\THEREAS, the repeal of the Rental Availability Ordinance and amendment of the Housing Element has been reviewed in accordance with the provisions of the California Environmental Quality Act; and _.;.:.:',_ \\1HEREAS, the proposed Ordinance repeal and Housing Element amendment would not result in an. <>;.: significant environmental impacts, and therefore a Negative Declaration was prepared for this project; and '.. :.. .,. 'WHEREAS, notice of preparation of the Negative Declaration was published in the local newspaper and posted in public buildings to provide for a 21 day public review period in accordance with the City of Dublin ~vironmenta1 Guidelines and the California Environmental Quality Act (CEQA); and "WHEREAS, the Planning Commission held a public .hearing on the Negative Declaration and the ropeal of said Ordinance and Housing Element amendment on May 21, 1996, for which proper notice was given in accordance with California State LaW; and "WHEREAS, a staff report was submitted for P A 96-019, the Rental Availability Ordinance repeal, recommending that the Planning Commission recommend City Council adoption of a Negative Declaration, amendment to the General Plan to delete Housing Element Section ill.E., and repeal of the Rental Availability Ordinance; and "'HEREAS, after considering all staff reports, recommendations, and written and oral testimony submitted at the Public Hearing hereinabove set forth, the Planning CommissioD adopted a Resolution recommending City Council approvaJ of the Negative Declaration, amendment to the General Plan, and repeal of the Rental Availability Ordinance; and "WHEREAS, the City Council ~eld a public hearing on the repeal of said Ordinance and deletion of Housing Element Section ID.E. on May 28, June 11, and July 9, 1996, for which proper notice was giveD in . ',::. accordance with California Government Code; and ., . EXHIBIT A \\'HEREAS~ a staff report was submitted for the May 28, June 11, and July 9, 1996 City Council meetings, for P A 96-019, the Rental Availability Ordinance repeal, recommending the City Council's adoption of a Negative Declaration, amendment to the General Plan to delete Housing Element Section ill.E., and repeal of the Rental Availability Ordinance; and . "'7HEREAS, the City Council did hear and consider all said reports, recommendations and testimony hereinabove set forth. NOW, THEREFORE, BE IT RESOLVED TH..L\.T THE Dublin City Council does hereby find that the repeal of the Rental Availability Ordinance-is consistent with the stated purpose and objectives of the City's Zoning Ordinance, Municipal Code, and General Plan. BE IT FURTHER RESOLVED THAT THE Dublin City Council does hereby approve a Negative Declaration and amends the General Plan to delete Housing Element Section ill.E. BE IT FURTHER RESOLVED THAT THE amendment of the General Plan shall be effective 30 days from the date ofadoptioD of this Resolution. PASSED, APPROVED AND ADOPTED this 9th day ofIuly, 1996. AY'ES: NOES: e. /iliSENT: "'. .... . "w"o. . ',." Mayor ATTEST: City Clerk f:\pa#\19%\960 19'IXTe5o.do: e, 5 ORDINA.NCE NO. AN ORDIKANCE OF THE Crn' OF DUBLIN .... , . REPEALING CHAPTER 8.04 OF THE DUBLIN l\mJ\"1CIPAL CODE KNOWN AS THE RENTAL A V All.LABILITY ORDINANCE THE CITY COUNCIL OF 'IRE CITY OF DUBLIN DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Chapter 8.04 of the Dublin Municipal Code, known as the Rental Availability Ordinance, requiring that a minimum of 10% of the total number of units in all new multifamily projects of more than ten units be maintained as rental units for a period of five years, is hereby repealed. Section 2. This ordinance shall take effect and be in force thirty (30) days from and after the date of its final adoption. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 39633 ofthe Government Code of California. PASSED, APPROVED, .A1\"1> A.DOPTED BY THE CITY COUNCIL OF THE CITY OF DUBLIN on this 23rd day of July, 1996, by the following votes: .'. ". . ~. -. . ..' '-. . . . . ~ -.-.'.' Ayes: e. Noes: Absent: Abstain: Mayor Attest: City Clerk t g:\pa#\1996\pa960 19\ord\1996ord. doc EXHIBIT B 1 ~-\nthon\i Hurt , & J..5 5 OClA 'ES . )74 V;lldi\'i~ Crr::le ' S<ln R<lffion, CaJiiom:z 9.:583 (5) 0) 830-5070 ]anuuy 31. 1996 Mr. Matt Koart DirectDr Dr Forv.'ard PlrmT"llng T...aufru.an. & :B.!'oad 3130 Crow Cmyon Place, Suite 300 San R.amoD.., c..4.. 94583 Subject: Rental OCCUp2Dcy In Conoom1n1um ProjecTs Dear Y..J. Koart, As requested. we have Tesearcb.ed the question of what proportion of condominium units are occupied by:renters. Tne objective is to forecasT :rental occupancy.in the condomiD.ium project being planned fOI development jn Dublin.. .~ Our resca:rcn has included ldentL.':ying condo:minim projects in The Dub 1;'j"l-:Pleas~ton-San .'Ramon mea, contacting sevcral condomiIri:um. :management companies and ti3X :record :rese;rrch. by FirST funCJ.-ican Title Comp2JlY. Tnis lener summnrlz.cs OUI findings. n".i- Property Management Companies '. l~e contacted fom "property management companies who are :a ctive in cennil Contra Costa CounTy and tb:t:, TrFValley .Area. They supplied lnfonD.E:tiDn on TWenty-five projects .in. the area from Martinez to .Plcasanto1l. \Jt7f: sb auld poin'! oni: maT propeny managers gent::rally do not '\\--ant Details 2.DOUr Their ftuances Dr occupancy made public. At our ~QUe.~ they agreed 'to supply IDfo:rmation about 'ib.e percent of units occupied by :renters on me condition mal1:beiI spc:cific pTojCCl nOi: be identified.. Accordingly, the datE presented in 'the nb1e V\Tbkh follows js summari-zed by area 10 avoid revealing inDiviDuaJ. :pr.oject information. .. ~ all, 'fne 1Vtl~ly-five p:rojeCTs bve a tor.al of 3.040 1.Ulits. T.nirry-one "PerCeD.l of 1h.ese units are: occupieD.. by r""...1lters. InduoeD. Btt ien projeCTS in San.l'...amD~ DUblin End Ple.asanton.. Tnese ten projects have 1,174 to'tal uniLS Dfw.b.ic.h 3&8 (33~j a..-e occupied by=enters. e" EXHIBIT C '1 ~ Rental Ocn:pancy In CondoTM1n;'l""'" ?rojecs /u-e 2. Concord.jPle~. HilijMa:n:inez I~;alnut Creek/Danvjllc S. Ram.on/DublinlPlea~a!non Total No. of Total Y:r01ects Units 8 1,108 / /~18 10 1.174 2:; 3,040 Occupied By: O""IleI Renter 723 3 B':; 596 162 786 388 2,105 . !J3:; PerceDi RenTCD 35% .::.. 21% 33% 31% Public Information (Assessor's Records) "VI'e identified e1gb.l projects in Dublin and San Ramon. The map locations of these projects were transmined to First American TiTh: Company. FirsT A..:merican resc.a:rched me tax Ie-cords and 1o.cntified lLDlts Vt':b.ere the address for the OW1ler is d1fferent from the adch-ess of me uniT. Thcsc units aJ'e USll?Jly occupied by Tenters and me tax bill is sent to the DVi'llcr 2.1 a different address. J Using this data, we .have estimated Ten tal DCCUp211CY in the eight projects. As shoVr-"Jl below, rental Dccupancy ranges from rn7enty~TI'"t'o to thirty-wee percent with an overall average of twenty- tight ?..l'cent. Dublin/San Ramon Condominiums Total Occupied Ey: .Percent .0 P.ro.i ect CiTY Un1TS OVi'Il er Renter Rented . ~ .' Silvergate Dublin 126 .90 ..,... 29% ' . -. .:.0 ." .'- T.ne Vintners San Ramon 165 112 :';3 32% Mansions San Ramon lOB -..., 3] '29% II The GaJ:"dens San R.a1non 123 87 35 29% Rentage San .Ramon 104 81 23 22% .FounTIrinhead San Ramon 79 53 _ 26 33% Cobbl$to.lle San :Ramon 1.69 127 42 25% Twin. Creeb San Ramon 9'6 57 29 .30% Total 970 694 276 28% CondusioD. . ':Rental DJ:.':CUpancy in condom:inimn projects gen~y :ranges from Th'e.n:ry-:five 10 Thirty-me pcrcenT ;.yjt:b. the ovcxall average at thiny pe!'Ce.Ilt. Accordingly, We would cxp2ct renTal occupancy 10 be about ihiny pcrc~T in the Kaufml3.Il. & :Broad condominiums in Dublin. This level of .rental 1 T.n.~ a..""e som.e ~rentio!ls tifne!"f the t2.."'L bill is senT to .2 differenr a5tiJ-.>-ss ,=VQ mough in: O'W.n.e:r D::CJpie..::;!be mrit. HD\'\,el.lt:!", '!:b.cse exce'ptio~s;u-c p:-DhwJy oilset b;:' msram:es '\\frle:re fu ~ bill.is reD! to me 'U!lit ~rcrl fuoughit is o:=~iez:i by a re.D.te.r. Jt is :not uncommon for :Te:c.te....-.s to :TCce.ive ihe bills ;md i OTI'v'E""Q fu~ to o...'TIen; VY.D.O liv€:.in. ~ m-o...z.s oi i:b~ CDU""'r:"}' 0:: DVerS~::'5. 41 2 J1...nmon! Bzr: 't .i: .(.SSOC/~m Ott:w..;::c.::JCY can be eA.-peCi:ed "[0 occur v,.-1'ihin ::loom five ye2.!s afler sell-01.ll of tb.e p:-oject. "\\'e appif:claie The oppo:rmrJry TO ,,,'ork with )'OU on this assignmenT and 2Te. prep2Ted to respond to co:rn:men1S C'..!ld quesTions as needed. . . .' Cf 7'[1 fJ , o~ ~tlSuA/ .. 3 -:=n)lt:: ::r C7J7'::rJ.'r~ i: 61.!. fl s:l b'n!;.'2- 60:1"T . .. ~ ..... & Anthony :F .. ASSOC!.' !H; /70 /tO TO: ?R DY. : :):t ':-: . - - . -'-'"-' . ..l na.\ie {.sil y'e=~:.-=e I ." < ~. ........ . ", ,- CITY OF D1JBLL'\i l\1El\1 0 R.Ai~T) lJJ\1 Richard ~~~=~se, Ci~y ~~~a~er v<; ~~~~s Carri~2to~, SeniDr ?la~j~= .2:_pril -' , - -,...,. ...!.::~~ Vacancy Rat.es . . - ::"::-\7est::..ga~eD J;..=bor C::::-eek ~n=ee Co~5D~ini~m Qevelo~men~s i~ D~~li~ a~d ~e=i~age CommDns) a~~ de~e=mined ~na~ A Sll1nma...''Y o:f - rental OCC'l.lpancy -_...~- ..:.1:....-:::> for --:-;-.o-~ ----:::>- avera3'e c::;: 2:'~ of the llniL.s ::ave tb.eir :;:>ro:;:>e=-:y L.a>: ::'i12s mailed "L.D 2D=a~iD2s DL.b.er th~~ ~he ~i~ itself. This iiF~e should cor::::-ela~e -"..e12 :'0 a 22%- rent.al D::::::::u:;.a::li::y =-aL.e .::.:: tnese Qevelo::>men~5. The 5~U=Y :?re:;-aren by J:..::::bony 3urt. a..,jQ Jl..ssDciat.es QaT-eo January 3:1, :1995, ~e~e=rr~=ea by tbis method that. t.he average rental occupancy rat.e for ::.ine 6eV'elDpme.:.;'t.s in Dublin and San :Ra1llD:;':!' was 25%". The Staff Slln"ey verifies that. the Burt study is accurate. The 6ifierence between 2:1% ~~d 2B%" could easily be e~~lained by the smaller sample of ~;velo?ments s~~"eyed by Staff. 'surveyed by Staff iollDws: :::>evelD:?ment 5:.i2 '''t;e===-a= J;..=;;,:::::- C=eek ?-e=.:. ~=:::e C::;>rrw::::::s '7':::>-:.2.2 - - - . -'~-'-. ~ ...,1""",,,--- = ::;::.aE;- DD5mer..2 ID developments Uni l:.S DOl:. oC::';1-::;ied by D\I:,:::!er :rD~al Ur";-:.o5 Pe=ce:ni: J.2 2:1 ;:: .f2 ?ea.:,:>::v -' 42 54 --, i.:; "'i DD --'-' EXIDBIT D 28 25 ~2 -., L._ ~ a"" .'; . .. . . . RENTAL STATUS OF J\1ULTI-FAMILY RESIDEJ\'TL-\L PROJECTS IN DUBLIN June 25, 1996 cONnO~~S&TO~~OMES N ..6J\1E Total Units Units rented Percent j\rbor Creek 84 18 21.4 California Vistas 129 8 6.2% Coral Gate 26 8 30.8% Dublin Meadows Condominiums 86 13 15.1% Herita2e Commons 73 4 5.5% Kildara 174 18 10.3% Silvertree 42 13 31.0% Silvergate HigWands 83 2 2.4% Torrey Pines 135 .... 2.2% .J \JI.7oodlands 136 15 11.0% Sub Total 968 102 10.5% . . . ,u.' . A.J>ARTMENTS .... ,-, ,"' .. NAME Total Units Units rented Percent Amador Lakes Apartments 555 555 100% Amador Oaks Apartments 204 "204 - 100% Amador Valley Apartments 80 80 100% Cottonwood Apartments 248 248 100%- '. Cross Creek Apartments 56 56 100% Dublin Meadows Apartments 120 120 100% Evan Alan Apartments 20 20 100% Greenwood Apartments 60 60 100% Park 'Wood Apartments 224 224 100% The Springs Apartments 176 176 100% Sub Total 1,743 1,743 100 % TOTAL 2,nl 1,845 68.0% e: ". .' .-. .... '" .,' " EXH1BIT E ) )