HomeMy WebLinkAboutSR - ZOA 06-02 Residential Condo CnvrsnREQUEST:
MEETING DATE (/� 2 R'
❑ CONTINUED TO
PASSED TO 2ND READING „
CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
STAFF REPORT
Request approval of amendments to Title 25 (Zoning) and Title 26
(Subdivisions) of the municipal code relating to residential condominium
conversion approvals.
SUBMITTED BY: Lauri Aylaian
Director of Community Development
APPLICANT: City of Palm Desert
DATE: June 28, 2007
CONTENTS: Ordinance 1140
Planning Commission Resolution No. 2445
Negative Declaration
Planning Commission Minutes 19 December 2006
Planning Commision Draft Minutes 15 May 2007
Recommendation:
By minute motion, that the City Council waive further reading and pass to second
reading an amendment to Title 25 (Zoning) of the Palm Desert Municipal Code
adding Chapter 25.112, Residential Condominium Conversions, and an amendment
to Title 26 (Subdivisions) relating to the approval of the conversion of existing multi-
family residential development to condominium ownership.
Executive Summary:
Approval of the staff recommendation will move to second reading a new ordinance
governing the conversion of existing multi -family residential units to condominium
type ownership. The ordinance proposes to: limit the conversion of rental units to
periods when there is a surplus of rental stock; provide relocation assistance and
compensation to qualifying renters who cannot afford to purchase their unit; and to
safeguard buyers by imposing standards and disclosing conditions of construction,
maintenance and energy conservation.
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Staff Report
June 28, 2007
Page 2of3
Background:
The City of Palm Desert currently has no ordinance or guidelines regulating the
conversion of properties from rental to condominium type ownership. On
September 26, 2006 the Planning Commission directed staff to prepare a report and
set a public hearing to consider the matter of industrial/commercial and residential
condominium conversion. At the December 19, 2006 Planning Commission
meeting, the draft ordinance governing the conversion of rental residential units to
condominium ownership was introduced for consideration. Commission members
had a number of comments and questions regarding the proposed ordinance, and
its consideration was continued to allow staff sufficient time to address the specific
issues that were raised. Over the next five months, Staff worked with legal counsel,
owners of large multi -family rental housing units, and the Planning Commission to
shape the ordinance that is hereby brought forth to the Council for consideration.
Discussion:
The conversion of property to condominium type ownership generally occurs in
waves that reflect market conditions of home rental and ownership. Twelve to
eighteen months ago when conditions were favorable, there was a great deal of
interest in converting rental apartments to condominiums. This was due to the
limited stock of single-family homes and the high cost of acquisition of entry-level
housing. However, with the change in market conditions there are currently no
applications being processed for such conversion. Staff believes that the timing is
now right to prepare for the next time when market conditions will favor condo
conversion by developing guidelines and standards to govern the process. The
intent is, in part, to assure that owners of multi -family rental units do not reap
windfall profits at the expense of renters who are unable to purchase their units and
who can no longer find housing due to a shortage of rental units available in the
community. Staff also believes that it is important to maintain a balance of rental
and ownership units within the City at any given time. This assures that students,
young professionals, seniors on a fixed income, and people at transition points in
their life are able to live in the City.
In preparing the ordinance presented with this report, staff reviewed the ordinances
of several other communities in California that place restrictions and minimum
standards on conversion of rental properties. Staff also asked owner
representatives of several of the largest apartment complexes in the City of Palm
Desert to review and comment upon it, understanding that a balance is necessary.
The result is the proposed ordinance, which will safeguard the interest of renters
and prospective buyers of condominium units, yet will not be so onerous as to
effectively prohibit all conversion projects. These standards will also upgrade any
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Staff Report
June 28, 2007
Page 3 of 3
units converted to meet the standards for energy efficiency recently adopted by the
City of Palm Desert.
On 15 May 2007 the Planning Commission reviewed the draft ordinance and
recommended it for approval subject to several minor revisions that have been
subsequently incorporated into the ordinance.
The companion piece to the new section for the zoning ordinance is a minor revision
to Title 26 that will add necessary language regarding conversion to condominiums
into the subdivision ordinance.
Staff recommends approval of the amendment to the subdivision ordinance (Title
26) and the addition to the zoning ordinance (Title 25).
Submitted By:
LAURI AY
Director
AIAN
f Comm
ity Development
HOMER C
ACM, Com
nity Development
/AV*
CARLOS ORTkGA
City Manager
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