Tougher regulations for converting apartments into condominiums were passed Tuesday, June 13 by the City Council, with an 8-0 vote to require developers to provide relocation assistance for all renters regardless of income and to be equivalent to three months rent.
The council also voted 6-2 to require 20 units to be aside for moderate income buyers in large condominium conversions projects as part of a motion by Councilwoman Toni Atkins. Councilmen Jim Madaffer and Brian Maienschein voted against the controversial inclusionary housing requirement, but they voted with the majority on the overall package of regulations.
The City Council voted 8-0 to use the standard rent amount as determined by the federal Housing & Urban Development Department (HUD) in relocation assistance rather than the actual rent the displaced tenants were paying. The HUD standard rent estimates a one bedroom apartment rent as averaging $870 a month and a two bedroom apartment averaging $1,065 a month. HUD estimates a three bedroom apartment rents for $1,514 a month, although the average rental in San Diego of a 3-bedroom apartment is $1,788.
Included in the regulations are requirements that developers provide more off-street parking for buyers and to improve the notice requirements to displaced tenants. Renters should also be given the first right to purchase the unit in which they are living.
“You’re essentially putting condo conversions out of business with the proposed amendments,” said industry consultant Chris Christensen to the council.
The council also voted to apply the tougher regulations to projects that have not yet finished the project approval. John Leppert, a civil engineer, criticized the council for “changing the rules (in) mid-project.”
Julaine Anton, 80, told the council she lost her home to a condo conversion and asked that regulations be made tougher. Teresa Quiroz said she has talked to many people who have lost their home to conversion and said “condo conversions have got to stop.”