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HomeMy WebLinkAboutPC Reso05-02 Rec CC Regulate Condo Conversions Ordinance RESOLUTION NO. 05-02 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF DUBLIN RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE REGULATING THE CONVERSION OF EXISTING APARTMENTS IN THE CITY TO CONDOMINIUMS (PA 04-044 CONDOMINIUM CONVERSION ORDINANCE) 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 10ca11eve1, cities implement state housing law policies through the adoption of the Housing Elements oftheir 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 ofthe 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 apartments 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 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 3,172 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 from 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 ofthese units would likely decrease the vacancy rate and accordingly tend to increase rents, and this would tend to further exacerbate the City's shortage of affordable rental units; and WHEREAS, conversion of apartments to condominiums could result in displacing existing tenants; and WHEREAS, tenant relocations that result from conversion of apartments to condominiums could place a financial burden on displaced tenants; and WHEREAS, there is a limited amount of housing that meets the needs of senior, disabled and low-income tenants; and WHEREAS, the Subdivision Map Act does not provide a mechanism to evaluate the physical appearance of a property; and WHEREAS, the City could receive an application to convert an existing apartment complex with deferred maintenance that creates an eyesore within the community; and WHERE AS, a Site Development Review permit would allow the City to evaluate the physical appearance of the property and require work to refurbish and restore the project as necessary to achieve a high degree of appearance, quality and safety; and WHEREAS, due to these changes in the marketplace and their potential consequences on the City's ability to provide for the housing needs of all economic segments ofthe community, the Community Development Department has been considering 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 2 in which the City has been developing a condominium-conversion ordinance, could frustrate 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 from the City's inventory of rental units available to those at lower income levels and because it would tend to increase the rents ofthose rental units that remain; and WHEREAS, to prevent these goals from being frustrated, the City Council adopted Resolution 181-04 to initiate proceedings to adopt a condominium-conversion ordinance and to place potential subdividers on notice pursuant to Government Code section 66474.2 ofthe 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. WHEREAS, the Community Development Department has developed a condominium- conversion ordinance to regulate the conversion of apartments to for sale condominiums and mitigate the impacts to residents that are displaced by conversion; and WHEREAS, the Planning Commission held a public hearing on said Condominium Conversion Ordinance on January 11,2005, for which proper notice was given in accordance with California State Law; and WHEREAS, the ordinance is intended to comply with the requirements of the Subdivision Map Act, regarding the provision and regulation of converting apartments to for sale condominiums and the Housing Element (1999-2006) of the Dublin General Plan, related to maintaining a diversity of housing stock in the City of Dublin; and WHEREAS, the Planning Commission did hold a properly noticed public hearing on this project on January 11,2005, and did recommend Ordinance XX-05 to the City Council to regulate condominium conversions as stated in the Ordinance; and WHEREAS, the Planning Commission at its January 11, 2005, meeting did hear and use its independent judgment and consider all said reports, recommendations, and testimony hereinabove set forth. NOW, THEREFORE, BE IT RESOLVED THAT, the Dublin Planning Commission does hereby find that, the ordinance is consistent with the Subdivision Map Act, General Plan Housing Element and all applicable Specific Plans; and, this ordinance is not a "project" within the meaning of Section 15378 ofthe State CEQA Guidelines, because it has no potential for resulting in physical change in the environment, directly or ultimately; and, recommends that the City Council adopt the ordinance to regulate the conversion of apartments to condominiums in accordance with the Ordinance in Attachments 4 and 5 of the Staff Report for PA 04-044. PASSED, APPROVED AND ADOPTED this 11 th day of January 2005. AYES: Cm. Schaub, Biddle, Wehrenberg, and King NOES: ABSENT: ABSTAIN: 3 ~ø/~ Planning Commission Chairperson ATTEST: Plannmg :¥ 4