TITLE
Recommendation to receive and file information provided in this report and at the public hearing;
Direct staff to implement the administrative procedural changes to the tenant notification and relocation benefit processes;
Request Planning and Building Department and City Attorney to prepare an ordinance that codifies administrative procedures, protects tenants rights, and provides relocation benefits to qualifying tenants earlier in the condominium conversion process; and
Consider whether to implement policy options for lifetime leases for existing tenants in lieu of relocation benefits, and provide direction to the Planning Commission. (Citywide)
DISCUSSION
On July 24, 2007, the City Council requested that the Planning Commission be directed to conduct a review of the current procedures used during the condominium conversion process related to tenant noticing and payment of relocation benefits (see attachment 1). Additionally, the Planning Commission was asked to review the impacts of condominium conversion on the City's vacancy rate and the impact of conversion upon displaced tenants. The Planning Commission was directed to conduct a public meeting to receive input, and then forward their findings and recommendations to the City Council for consideration.
In anticipation of the Planning Commission hearing, Planning Bureau and Housing Services Bureau staff met on several occasions, including two meetings with representatives of Housing Long Beach, represented by Legal Aid Foundation of Los Angles (Legal Aid), and the Apartment Owners Association, to discuss possible revisions to the administrative procedures and municipal code sections regulating condominium conversions and the payment of relocation benefits.
On October 18,2007, the Planning Commission held a public hearing on this subject. Based on the concerns heard about the existing process, staff reported (see attachment 2) the following:
· A series of administrative procedures could be implemented to improve tenant noticing including providing additional notices during the process, providing information in Spanish and Khmer and revisions to the notice content to provide more information about relocation benefits.
· That conditions of approval can be added to conversion requests to provide for the more timely payment of relocation benefits.
· That the Housing Services Bureau will take an active role in reviewing applications for conversion to determine whether tenants qualify for benefits, that qualifying tenants would be sent application information and be provided with information about currently available affordable housing and housing assistance.
· That amendments could be made to the municipal code to clarify the timing of the payment of relocation benefits as well as clarify and strengthen a number of sections, similar to the changes that the City Council approved to the Code Enforcement Relocations Ordinance.
Regarding the vacancy rate and tenant impact issue, staff reported the following:
· Long Beach has experienced a relatively low rental vacancy rate of between 4%-5% of the rental housing stock of approximately 91,000 rental units. This vacancy rate has remained relatively constant despite the increase in conversion activity that occurred in the years 2004-2006.
· The number of housing units given Tentative Map approval for conversion since 2000 equates to about 2.4% of the City's rental housing stock, and the number of units that have actually gone completely through the process and have received City Council approval of a Final Map equates to approximately % of one percent of the City's rental housing stock.
· The pace of condominium conversion has decreased significantly this year, likely due to the state of the housing market, changes to loan practices, and the availability of properties that meet the minimum conversion standards (particularly the parking requirement).
· Finally, staff reported that because condominium conversions are typically more affordable, they provide an opportunity for first-time buyers and home ownership, consistent with the goals of the Housing Element of the General Plan.
Several of the changes discussed would require revision to the Municipal Code. The Planning Commission recommended that these changes be completed as soon as possible, and not tied to other housing initiatives, such as the future consideration of the Housing Trust Fund.
Testimony provided by the public to the Planning Commission dealt with issues such as the lack of suitable and similarly affordable units to relocate into within the City, problems with notification, tenants not understanding or waiving their rights to relocation benefits, the need for relocation benefits to apply to more than just low income tenants, the need for tenants to receive the relocation benefits in a more timely manner, and other related issues.
The impact on prevailing vacancy rates for rental units was discussed. There is currently no provision in the Long Beach Municipal Code related to vacancy rates. It was suggested during the public testimony that a limitation on condominium conversions be imposed when vacancy rates for rental units fall below a certain level, such as five percent (5%). Other cities use this type of provision to limit or prohibit condominium conversion projects because of reduced availability of affordable units, or rental units within the community. Rental vacancy rates in Long Beach fluctuate overtime, but generally have been in the range of 3.5 to 4.7 percent since 1990. If such a provision were imposed at 5%, as suggested by Legal Aid, no condominium conversions would currently be allowed in the City, and it is uncertain when conversion activity could recommence.
The Planning Commission did not recommend an amendment to the Municipal Code to relate condominium conversions to vacancy rates.
The Planning Commission discussed a recommendation from Legal Aid to include a provision for lifetime leases to existing senior, disabled, or low-income tenants in lieu of relocation benefits. Under such a program, qualifying existing tenants would be allowed to live in their units at current rents, with limited reasonable rent increases in the future. Rather than take a specific action on this issue, the Planning Commission asked the City Council to consider this matter, and ideally to provide additional direction. .
The Planning Commission recommended that the City Council direct the Planning and Building Department and the City Attorney's office work with Legal Aid to craft an ordinance that codifies the administrative changes and provides more timely payment of relocation benefits to qualifying tenants.
This Council letter was reviewed by Assistant City Attorney Michael J. Mais and by Budget Management Officer Victoria Bell on December 3, 2007.
TIMING CONSIDERATIONS
No specific timeframes for consideration of changes to the relocation benefits is mandated. City Council direction on the approach and timing for implementing the various suggested changes is requested.
FISCAL IMPACT
There are no direct fiscal impacts to consideration of policy changes. Any revisions to policy will be reflected in relocation benefits paid by condominium conversion applicants and given to qualifying tenants as required in the existing or revised future ordinance, as applicable.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
SUZANNE M. FRICK
DIRECTOR OF PLANNING AND BUILDING
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |