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HomeMy WebLinkAbout2006-08-21 Housing PACKET Ashland Housing Commission Regular Meeting Agenda: August 21, 2006 6:30 - 8:30pm Community Development & Engineering Services Building 51 Winburn Way, Ashland OR. 1. (6:30) Approval of Minutes (5 min) 2. (6:35) Public Forum (10 min) items not on the agenda 3. (6:45) Other Business from Housing Commission Members (5 min) items not on the agenda 4. (6:50) Project Updates Regional Problem Solving Project (20 min) Kate Jackson Presenting 5. (7:10) New Business Condominium Conversion Ordinance Amendments (45 min) Review and recommendation Election of Vice Chair (5 min) 6. (8:00) Old Business RETF (10 min) Housing Commission discussion of position 7. (8:10) Reports and Updates (15 min total) Subcommittee/Liaison Updates Land Use (4 min) Rental Needs Assessment RFP Finance (4 min) Housing Trust Fund Development Education (4 min) Liaison reports (4 min) 8. (8:25) Meeting Agenda Items Study Session discussion (5 min) Discuss regular meeting time (quarterly, bi-annual, annual?) Subjects September 18, 2006 Regular Meeting Homeless 10 year Plan Presentation CDBG Consolidated Annual Performance Evaluation Report 9. (8:30) Adjournment Memo TO: Housing Commission Title: Condominium Conversion Ordinance Review Date: August 21, 2006 Submitted By: Brandon Goldman, Housing Program Specialist The City of Ashland Housing Commission Land Use Subcommittee began a review of the Conditional Use Permit process for conversion of existing apartments in examining broader land use regulations relating to affordable housing. The issue was more formally discussed by the Housing Commission Land Use subcommittee in April of 2006 in relation to a tenant displacement issue brought before the commission due to a recent condominium conversion. In May of 2006 the formation of an ad-hoc committee with membership between the Planning Commission and the Housing Commission was initiated in an effort to begin drafting language to address impacts related to such conversions. On June 27 2006 the Housing Commission and Planning Commission held a joint study session to share information regarding the housing market, the impacts of condominium conversions, and at this time directed the formation of the ad-hoc Condominium Conversion Committee to further research the issue and bring th recommendations back to the full commissions. The ad-hoc committee met on July 20, 2006 and discussed draft language presented by staff that addressed both the criteria for conditional use approval for a conversion, as well as language regarding tenant rights, which could be forwarded as a separate resolution from the land use amendments proposed. The Planning Commission received the draft language and ad-hoc committee coments on th July 25 at a regular study session. The Housing Commission Land Use subcommittee met on August 17, 2006 to further discuss draft language for inclusion in an Ordinance addressing the conversion of rental units into for purchase housing. The attached Draft ordinance revisions and Tenants Rights Resolutions incorporate comments received at the above mentioned meetings. The Housing Commission is to review the language provided and may accept public comments for further consideration. The Housing Commission recommendations will be forwarded to the Planning Commission for consideration along with the draft language following legal review. The Planning Commission review shall be a public hearing allowing all testimony related to the proposed ordinance amendments. DRAFT Condo Conversion Ordinance Revisions The proposed changes would repeal and replace 18.24.030J and 18.28.030J relating to the Conditional Use Permit issuance for Condominium Conversions. The existing ordinance reads as follows under both the R-2 and R-3 zoning codes. Condominium conversion of existing rental units subject to a Type I procedure and demonstration that at least 25% of the residential units are affordable for moderate income persons in accord with the standards established by resolution of the Ashland City Council through procedures contained in said resolution. Current residents of rental units proposed for conversion to condominiums shall have first right of refusal to purchase the unit. (Ord. 2624 S2, 1991) Purpose of Ordinance Changes The purpose of the proposed sections of the R-2 and R-3 zoning ordinance pertaining the Conditional Use Permit for the condominium conversion of existing rental units is to ensure an adequate supply of rental units remains within Ashland and to protect tenants by referencing a separate resolution to protect tenant rights. The provisions aim to insure a reasonable balance of availability of rental and ownership housing in the City and to maintain opportunities for individual choice in the tenure, type , cost and location of housing. Further language is provided to address the potential that a unit in disrepair could be sold without being improved to standards outlined in the building code for existing buildings. For the purposes of fire, life, and safety the developer would be required to complete needed repairs prior to the sale of a converted unit thereby ensuring the purchaser receives a unit in compliance with the building codes for existing buildings. Conversion of existing rental units into for-purchase housing shall listed as Permitted Use when 50% of the total units are retained as rentals and not condominiumized into individual units of ownership. Should the applicant exercise the option to convert all units to for-purchase condominiums the action shall be considered a Conditional Use and be considered a Type II planning action requiring a public hearing. The following code language is offered as amendments to address this purpose. Permitted Uses (18.24.020 and 18.28.020) \[Adds item ÒKÓ in both sections\] K. Conversion of existing rental units into for-purchase housing, subject to the following: 1) Conversions existing rental units into for-purchase housing shall be in accord with all density and site review requirements of this code 2) In conversions of four or more rental units into for purchase housing, at least 50% of the total units be shall retained as rental units and shall not be separated into individual units of ownership. Rental units shall be deed restricted through a Resale Restriction Covenant to ensure that any future conversion to for-purchase housing of these units shall be subject to the requirements of 18.24.030(J). (3) That prior to offering any units for sale the developer must have the entire premises subject to conversion inspected by a City of Ashland building codes inspector. The inspection will cover major systems and components of the building, including structural, mechanical, electrical systems and fire safety. A report of items to be brought into compliance, if any, will be provided to the developer. All violations revealed by the inspection must be corrected at least 10 days prior to the closing of sale of a unit. (4) That the current residents of rental units to be converted into for purchase housing are provided with the rights established by resolution of the Ashland City Council (2006- separate resolution to be forwarded independent of land use ordinance changes) Conditional Uses (18.24.030 and 18.28.030) \[ Amends item J in both sections\] J) Conversions existing rental units into for-purchase housing not meeting the requirements of 18.24.020(K)(2) shall be a Type II procedure and subject to the following: (1) That the development shall be in accord with all density and site review requirements of this code (2) In conversions of four or more rental units at least 25% of the total number of units shall be affordable for purchase by households earning 80% of the area median income, or affordable for rent by households earning at or below 60% of the area median income in accordance with the standards established by resolution of the Ashland City Council (2006-13) for a period of not less than 30 years. (3) That prior to offering any units for sale the developer must have the entire premises subject to conversion inspected by a City of Ashland building codes inspector. The inspection will cover major systems and components of the building, including structural, mechanical, electrical systems and fire safety. A report of items to be brought into compliance, if any, will be provided to the developer. All violations revealed by the inspection must be corrected at least 10 days prior to the closing of sale of a unit. (4) That the current residents of rental units to be converted into for purchase housing are provided with the rights established by resolution of the Ashland City Council (2006- separate resolution to be forwarded independent of land use ordinance changes) A Resolution Establishing Tenant Rights The Tenants Rights established by this resolution address tenant displacement and relocation difficulties experienced by households directly impacted by the conversion of existing rental units into for- purchase housing. 1) Right to Notice: Each Tenant shall be entitled to Notice of the LandlordÓs Conversion or intent to Convert. The Notice shall include a summary of the TenantÓs rights set forth below. 2) Right to Continued Occupancy: A Tenant shall have the right to continued occupancy of such TenantÓs Housing Accommodation until the expiration of the TenantÓs Lease or Rental Agreement or one year after receipt of Notice, whichever is longer. The notice must provide certain information including the time period to vacate and a copy of the condominium documents. During this period, the rent in any one year may not be increased by more than the Consumer Price Index or 10%, whichever is less. In the event relocation benefits are provided per section 8 below, the right to continued occupancy is reduced to three (3) months after receipt of Notice or six (6) months after receipt of Notice for low income or handicapped tenants. In cases where terms are mutually agreed upon by developer and tenant, the tenant may exercise the right to terminate occupancy, but in no case shall the tenant be required to vacate in advance of these minimum periods. 3) Right to Extend Term of Rental Agreement or Lease. If the Notice period exceeds the term of the tenancy in the Rental Agreement or Lease, the term of the tenancy shall be extended to coincide with the expiration of the Notice period. There shall be no other change in the provisions of the Rental Agreement. 4) Right to Terminate: Following receipt of Notice, a Tenant shall have the right to terminate any Lease or Rental Agreement, without penalty or other termination charge, if such tenant notifies the applicant for conversion in writing thirty days in advance of such termination. 5) Right to Purchase: The Tenant shall have the first right to purchase the Housing Accommodation in which the Tenant resides on terms and conditions which are substantially the same as, or more favorable than, those which the Landlord extends to the public, provided the Tenant executes a mutually agreeable form of purchase and sale agreement within ninety (90) days after the TenantÓs receipt of such form of agreement from the Landlord. Right to Purchase shall extend for a minimum of 90 days following a notice of termination. 6) Method of Giving Notice: Notice given pursuant to this section shall be personally given to Tenants by one of the following methods: in hand, in the presence of a witness; by certified or registered mail, first class, postage prepaid; by service by a constable; or by FedEx or other recognized mail service with evidence of a signature indicating receipt by tenants or mailed to tenants by certified mail. 7)TenantÓs Right to Nondisturbance/LandlordÓs Right of Access: For so long as the Tenant has the right to occupy under 18.24.030J(4)(b) above, the Landlord shall not undertake rehabilitation, repair, or improvement of the Housing Accommodation occupied by the Tenant except for ordinary and necessary repairs, nor shall the Landlord interfere with the TenantÓs quiet use and enjoyment of common areas by creating unreasonable noise or disruption of such areas. The Tenant shall not unreasonably withhold consent to the Landlord or the LandlordÓs designees to enter the TenantÓs unit in order to inspect the premises or show the unit to prospective purchasers or their contractors, provided the Landlord gives the Tenant at least two days' advance notice and requests entry only at reasonable times. 8) Right to Relocation Benefits: Relocation benefits shall be paid to a Tenant who is not provided with a full year of continued occupancy from the date of Notice. Relocation benefits for a an Handicapped, or Low/Moderate Income Tenant shall be equal to three times the actual rent or the Fair Market Rent for the Medford-Ashland Metropolitan Service Area, whichever is greater. All other Tenants shall be entitled to a relocation benefit of up to one monthÓs rent or the Fair Market Rent, whichever is greater, for a unit of an equal number of bedrooms as occupied by the tenant. In the event a tenant is provided with a twelve month notice to vacate the tenant is not entitled to relocation benefits. Relocation payments shall be made as follows: (a) The entire fee shall be paid to a tenant who is the only tenant in a rental unit; (b) If a rental unit is occupied by two or more tenants then each tenant of the unit shall be paid a pro-rata share of the relocation benefit; (c) Landlord shall pay relocation benefits 30 days prior to the tenantÓs expiration of the right of continued occupancy as described in the Right to Continued Occupancy (d) If a tenant voluntarily exercises a Right to Termination of a Lease or Rental Agreement they shall forfeit the Right to Relocation Benefit. (e) Notwithstanding the foregoing, no Tenant shall be eligible for a relocation benefit unless all rent due and payable under the Rental Agreement or extension of such Rental Agreement, if any, has been paid by the Tenant prior to the date on which the Housing Accommodation is vacated. (f) Tenants that purchase any unit within the same Condominium project shall not be eligible for a relocation benefit