HomeMy WebLinkAboutReso 181-04 ConvertAptsToCondo
RESOLUTION NO. 181 - 04
RESOLUTION OF mE CITY COUNCIL
OF mE CITY OF DUBLIN
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INITIATING PROCEEDINGS TO ADOPT AN ORDINANCE
REGULATING mE CONVERSION OF EXISTING APARTMENTS TO CONDOMINIUMS
WHEREAS, State law provides that cities have the responsibility to use the powers vested in them
to facilitate the improvement and development of housing to make adequate provision for the housing
needs of all economic segments of the community; and
WHEREAS. at the local level, cities implement state housing law policies through the adoption of
the Housing Elements of their General Plans. which elements are reviewed and approved by the state's
Department of Housing and Community Development ("HCD"); and
WHEREAS, among other things, Housing Elements must contain a statement of the community's
goals, objectives and policies related to the maintenance, preservation, improvement, and development of
housing along with an action program to implement these goals, objectives and policies; and
WHEREAS, the City's 1990 Housing Element included several policies that encouraged and
suggested actions to ensure the availability of rental housing. .including a policy that required the
monitoring of the availability of rental housing and, if monitoring disclosed that it was necessary, the
enactment of a condominium~conversion ordinance; and
WHEREAS, in accordance with state housing law, the City adopted its 1999-2006 Housing
Element ("the Current Housing Element") in June 2003. and it was certified by HCD on July 11, 2003; and
WHEREAS, the Current Housing Element eliminated the program that required the monitoring of
the availability of rental housing and potential enactment of condominium~conversion ordinance, reasoning
that there was little likelihood that existing rental housing property owners would convert their properties
to condominiums due to the strong demand for rental housing in Dublin and the development of
condominiums (including 1396 condominium units currently under construction) to satisfY the demand for
condominiums; and
WHEREAS, the Current Housing Element further indicated that the City would assess the need
for a condominium-conversion ordinance each time it updates the Housing Element, if the need arises; and
WHEREAS. since the adoption of the Current Housing Element, conditions in the housing market
have changed markedly, and the Community Development Department has noted that the incidence of
condominium~conversion projects in other communities is increasing; and
WHEREAS, the City of Dublin believes that the following market conditions have led to the
increase in proposals to convert existing multi~family rental projects to condominiums:
a. The higher vacancy rates for apartmepts as more and more people are able to qualifY for
loans for homes due to historically low interest rates;
b. The increased market for condominiums in the area; and
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c. The ability of the property owner to maximize profit by selling units rather than renting
them.
WHEREAS, in the past ten years, the City has developed over 1500 residential apartment units for
an overall total of approximately 2,800 units throughout the City. These units and the other rental units in
the provide a type of housing that is one of the keys to providing for the housing needs of all economic
segments of the community; and
WHEREAS, rental units provide housing for persons in all income levels, and they are a valuable
tool for providing workforce housing; and
WHEREAS, the conversion of one or two of the City's apartment communities could have a
major impact on the City's housing market, in that it would remove ftom the market a significant
percentage of the existing rental units; and
WHEREAS, if units are sold rather than rented, the units would no longer be available to a
segment of the community that is not in a position to purchase such units; and
WHEREAS, the loss of these units would likely decrease the vacancy rate and accordingly tend to
increase rents. and this would tend to further exacerbate the City's shortage ofatfordable rental units; and
WHEREAS, due to these changes in the marketplace and their potential consequences on the
City's ability to provide for the housing needs ofall economic segments of the community, the Community
Development Department has begun the development of a condominium-conversion ordinance; and
WHEREAS, the approval of the conversion of existing residential apartment units to
condominiums or other forms of ownership that permit the units to be sold individually, during the period
in which the City is considering the adoption of a condominium~conversion ordinance, could ftustrate the
City's efforts at providing for the housing needs of all economic segments of the community, because it
would result in the removal of units ftom the City's inventory of rental units available to those at lower
income levels and because it would tend to increase the rents of those rental units that remain; and
WHEREAS, to prevent these goals from being frustrated, the City desires initiate proceedings to
adopt a condominium-conversion ordinance and desires to place potential subdividers on notice pursuant
to Government Code section 66474.2 of the City's intent to adopt a condominium-conversion ordinance,
the effect of which will be to permit the City to apply the condominium-conversion ordinance if it is in
effect on the date the City approves or disapproves the tentative map.
NOW mEREFORE, THE CITY COUNCIL RESOLVES AS FOLLOWS:
A. Initiation of Study of Potential Adoption of Condominium-Conversion Ordinance.
Staff is hereby directed to study the potential adoption of a condominium-conversion ordinance and, if
deemed necessary due to existing conditions in the City and the marketplace, present such an ordinance to
the Planning Commission and City Council for potential adoption in the manner required by law. This
resolution shall constitute, under subdivision (b) of section 66474.2 of the Government Code, the initiation
of proceedings to adopt an ordinance that regulates. restricts, or prohibits the conversion of existing
residential apartment units held in a single ownership, in whatever form, to condominiums or other forms
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of ownership that permit the units to be sold individually.
B. Notification to Snbdividers of Intent to Apply Condominium-Conversion Ordinance.
Notwithstanding subdivision (a) of section 66474.2 of the Government Code, the City intends to apply the
condominium~conversion ordinance adopted as a result of the proceedings initiated by this Resolution to all
applications for approval of tentative maps and vesting tentative maps that have not been deemed complete
as of the date of this Resolution.
C. Compliance with California Environmental Quality Ad. This ordinance is not a
"project" within the meaning of Section 15378 of the State CEQA Guidelines, because it has no potential
for resulting in physical change in the environment, directly or ultimately.
D. SeverabUity. If any provision of this ordinance or the application thereof to any person or
circumstance is held invalid, the remainder of the ordinance. including the application of such part or
provision to other persons or circumstances shall not be affected thereby and shall continue in full force
and effect. To this end, provisions of this ordinance are severable. The City Council hereby declares that it
would have passed each section, subsection, subdivision, paragraph. sentence, clause, or phrase hereof
irrespective of the fact that anyone or more sections, subsections, subdivisions, paragraphs, sentences,
clauses, or phrases be held unconstitutional, invalid, or unenforceable.
PASSED, APPROVED and ADOPTED this 7th day of September 2004.
AYES: Councilmembers Oravetz, McCormick, Sbranti, Zika and Mayor Lockhart
NOES: None
ABSENT: None
ATTEST:
ABSTAIN: None
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