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HomeMy WebLinkAboutItem 6.3 RentalAvailOrdRepeal (2) , CITY CLERK File # D~~[QJ-[g][Q] . AGENDA STATEMENT CITY COUNCIL MEETING DATE: July 9,1996 PUBLIC HEARING PA 96-019 Rental Availability Ordinance ~~ k (ReportPrepared by: Tasha Huston, Associate Planner) jf;/f' SUBJECT: EXHlBITS ATTACHED: A B. C. D. E. RECOMMENDATION: y( 1.) ,n ) 2) . l/ 3) ~ 4) 5) ~ 6) 7) FINANCIAL STATE:MENT: None DESCRIPTION: Resolution Approving Negative Declaration, and adopting General Plan Amendment 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 Waive reacfmg and Introduce Ordinance repealing-the 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. The purpose 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 for a period of five years. At the March 12, 1996 City Council meeting, information was presented regarding the City's current rental housing situation. After considering the information presented, the City Council determined 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 necessary. The Council directed staff to begin proceedings to repeal the Ordinance. The rep~ of this Ordinance will also require an amendment to the Housing Element of the Dublin General Plan, to maintain consistency. . ------------------------------------------------------------------- COPIES TO: In-House Distribution ITEM NO. M 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. 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. Following 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),.'}Janded 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. e.. .- 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 longer necessary, appears to be valid. Staff recommends that the City Council conduct a public hearing, deliberate, and: 1) adopt the Resolution Approving a Negative Declaration and Adopting a General Plan Housing Element Amendment (Exhibit A); 2) waive reading and introduce the Ordinance Repealing Chapter 8.04 of the Dublin Municipal Code, the Rental Availability Ordinance (Exhibit B), and schedule the second reading for the July 23, 1996 meeting. e.:: g:\pa#\1996\96019\srcc7-9. 2 :. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************* ADOPTING A NEGATIVE DECLARATION AND APPROVING A GENERAL PLAN TEXT AMENDMENT REGARDING THE REPEAL OF THE RENTAL AVAILABILITY ORDINANCE WHEREAS, the City of Dublin Houslng~Element Section lII.E., dictates that the City shall require a percentage of units in large multi-family projects be rented for a specified period of time; and WHEREAS, the related City of Dublin Housing Element Policy objective is to "Insure availability of rental units in Dublin"; and WHEREAS, 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 WHEREAS, the City Council has considered survey information, attached to the staff report 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 WHEREAS, the repeal of the Rental Availability Ordinance and amendment ofthe Housing Element has been reviewed in accordance with the provisions of the California Environmental Quality Act; and . WHEREAS, the proposed Ordinance repeal and Housing Element amendment would not result in any - ._ 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 Environmental Guidelines and the California Environmental Quality Act (CEQA); and WHEREAS, the Planning Commission held a public hearing on the Negative Declaration and the repeal 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 III.E., and repeal of the Rental Availability Ordinance; and WHEREAS, after considering all staff reports, recommendations, and written and oral testimony submitted at the Public Hearing hereinabove set forth, the Planning Commission adopted a Resolution recommending City Council approval of the Negative Declaration, amendment to the General Plan, and repeal of the Rental Availability Ordinance; and WHEREAS, the City Council held a public hearing on the repeal of said Ordinance and deletion of Housing Element Section III.E. on May 28, June 11, and July 9, 1996, for which proper notice was given in .accordance with California Government Code; and EXHIBIT A "lHEREAS, a staff report was submitted for the May 28, June 11, and July 9, 1996 City Council meetings, ~or P A 96-0 ~ 9, the Rental Availability Ordinance repeal, recornI?ending the City .Council' s adoptio. of a NegatIve DeclaratIOn, amendment to the General Plan to delete Housmg Element SectIon liLE., and ..- repeal of the Rental Availability Ordinance; and - ;-- - -. WHEREAS, the City Council did hear and consider all said reports, recommendations and testimony hereinabove set forth. NOW, THEREFORE, BE IT RESOLVED THAT 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 liLE. BE IT FURTHER RESOLVED THAT THE amendment ofthe General Plan shall be effective 30 days from the date of adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 9th day of July, 1996. AYES: NOES: ABSENT: e.' ~'. -. .... Mayor ATTEST: City Clerk g:\pa#\l996\960 19\ccreso.doc . :. "-. . 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 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 of the Government Code of California. PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL 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 B 1 .L.\.nthony Hurt & ASSOCIATES J74 Valdi,.ja eir::l.. San Ramon, Califomi.2 94583 -.- - (5J 0) 030-5070 January 31, 1996 .---. .... Mr. Matt Koart Director of Forward Planning T"..aufman & Eroad 3130 Crow Canyon Place, Suite 300 San Ramon., CA.. 94583 Subject: Rental Occupancy In ConDominium ProjecTs Dear .Mr. Koart, As requested, we have :rese,lrched Lhe question of what proportion of condomlnium unIts are occupied by renTers. The objective is to forecast :rental occupancy in the condominJum project being planned for development jn Dublin. Our research has .1ncluded IdentL.~7jng condominium projects in the Dublin-Pleasanton-$an Ramon area, contacting several condominium .'. management companies and tax record research by FiiS! iuncrican Title Company. This letter sun:u:narlzcs OUI findings. Property Management Companies \.ye contacted four property management companies who are active in central Contra Costa County and the Trl-Valley Area. They supp1ied 1nfonnaTion on twenty-five projects in the area from Martinez to Pkas.anton. We should point out that property managers generally do not want details .about Tbetr fimmc-es or occupancy made public. At our :reqlle..~t. they agreed to supply infonnation about the percent of units occupied by renters on the condition that their spc:dfic projecT not be identified. Acco:rdingly, the data presented in the t.ab1e whJch follows 1s summarized by area to avoid revea1ing individual project 1nformation.. .. ~ all, the twenty-five projects have a total of 3,040 units. Tnirty-one percent of these units arc occupied by :renters. Tncluded are 'ten projects in San Ramon, Dublin and PleasantoTL These ten projects have 1,174 tOTal units ofwbich 388 (33%) are occupied by renters. .. EXHIBIT C :-nn rm "......:nuo ~ I..~'""'t":':"_'!f"'i,","-"'"'\" -c--:- 1 (}()('(l"""'~ , f"l. 11 nc:."~ / Rental Occupancy In Condominium Projects .' No. of Total Occupied :By: Percent A..re a Yro1ects Dni ts Owner Renter Rented Concord/Pleas. Hill/Martinez 8 1,108 723 385 3:5% ,Valnut Cree.k/DanvHle / 758 596 162 21% S. RamonlDublin/pleasanton 10 1,174 786 388 33% Total 25 3,040 2,105 . 033 31% --- ...... . Public Information (Assessor's Records) "lVe identified e1ght projects in Dublin and San Ramon. The m~p locations of these projects WCTe transmined to First American Title Company. First A..merlcan rescarched the ta:>.: records and identified 'units where the address for the owner is d1fferent from the address of the unit. These units are llSUC'Jly occupied by renters and the tax bill is sent to the DVi'ller at a different address.1 Using tills data, we have estimated rental occupancy in the eight projects. As sho'W"'11 bc.l.ow, :rental uccupancy ranges from nventy-two to thirty-three percent with an overall average of TI'I'enty- eight percent. . Pro,i eet Silvergate The Vintners Mansions The Gardens Heritage Fountainhead Cobblestone Twin Creeks Total Conclusion Dublin/San Ramon Condominiums Ow Dublin San Ramon San Ramon San Ramon San Ramon San Ramon San Ramon San Ramon Total Units 126 165 lOB 123 104 79 1.G9 96 970 Occupied By: OVI'Il_er Renter 90 36 112 53 77 3] 87 36 81 23 53 _ 26 127 42 67 29 694 276 Percent Rented 29% 32% 29% 29% 22% 33% 25% .30% 28% . Rental occupancy in condominium projects generally ranges from TI\'CllTy-five to thirty-five pcrcent with the overall average at tbirty percent. Accordingly, we would expect :rental occupancy to be about thirty percent in the Kaufman & Broad condominiums in Dublin. This level of rental -'- Tnere are some exceptions where the t2..x bill is sent to a differ~ address even though the OWIler occupie.c; the unit. Ho'wever, these exceptions ~e probably offset by insram:es where the taX bill is sen.t to the unit even though it is occupied hy a r~tcr. It is not uncommon for renters to receive the bills and forward them to OV\'ne...-s who Jive m. other areas of the country Dr overseas. . ----.-ton f0 2 avo:!(' 'S i\:-..TG:1"':-'}I ;; Gl.!. 9~t:(J1S.:0 Anthony Bur: &. /.SSOClAT.ES SO:.!.1 96/tO:"tO occupancy can be eA.-pected to occur v"ithin about five years after sell-out of the project. "We app1'"cclate the oppormnity to work with )'OU on this ass1gnment and are prepared to respond to comments ,m.d questions as needed. .. , "" ;) ton it] <IYOHH ~ .~...Tl.3nY}l i::61.L9flb'on,Q, c:~ H illt 60:1.1 .::. ....... . . e. Anthony H IS. ASSOCi.'. fl6/tO/to . ::. ... CITY OF DlJBLIN l\1El\1 0 Rk~-n u~1 TO: ~ich~rd A~brose, City Ma~ager ?ROM: ~ ~~nis C~rrin9ton, Senior Planner D? TE : April c: .- , 1996 ~~ ... ~ . _........J .. Vac~ncy Rates I have i~vestis~ted three conDominium develoDments lD Dublin (Silye::-t::-ee, ];.rbo::- Creek and 3eritage Commons) ~:1d dete.rrnined Lh~t ~TI a-,7er~ge of 2:!.. %- of the UTIi ts ~ave their property t~x bills m~iled to ~oc~~ioTIS o~be::- th~n the uni~ itself. This figure should correl~L:.e well ~D ~ 2:!..%- rental occup~ncy raLe in these developments. The sLudy ?re?~red by ?~thony Hurt ~nd .~sociates dated January 31, 1996, dete::-m:..ned by this method thaL:. the average rental occupancy rate for nine developments in Dublin and San RamOD was 26%. The Staff survey verifies that the Hurt study is accurate. The difference between 21% ~nd 26% could easily be expl~ined by the smaller sample of developments surveyed by Staff. A sumffiar~7 of rental occupancy rates for these developments surveyed by St~ff follo\>.'s: Development Units not occuDied by D\>.~er Tot~l Units Percent 5il'\re:::-l::.-ee 42 28 12 J;~2:>c:.- C::--ee}: 84 23 21 =~~~~a~e CDmm~~s 73 :!..2 ?::> -:. E.2 199 21 42 :SdcS.i e Peabody'" = ::;>2..9:0- D05rnem2 EXHIBIT D RENTAL STATUS . OF MULTI-FAMILY RESIDENTIAL PROJECTS IN DUBLIN June 25, 1996 --- .... CONDOMnITUMS&TOWNHOMES NAME Total Units Units rented Percent Arbor Creek 84 18 21.4 California Vistas 129 8 6.2% Coral Gate 26 8 30.8% Dublin Meadows Condominiums 86 13 15.1% Heritage Commons 73 4 5.5% Kildara 174 18 10.3% Silvertree 42 13 31. 0% Silvergate Highlands 83 2 2.4% Torrey Pines 135 3 2.2% Woodlands 136 15 11.0% Sub Total 968 102 10.5% APARTMENTS .~: .- 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 Apartmems 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 2,711 1,845 68.0% ..- EXHIBIT E