Condo Conversions
[ Excerpt from: "Are Condo Conversions Putting the Squeeze on Renters?" By Rob Kuznia, Noozhawk, 6/24/2008 ]
... Santa Barbara has long been a nearly impossible place for middle-class families to enter the housing market, but some evidence suggests it’s becoming increasingly difficult for renters as well.
For one thing, the median rate for a two-bedroom rental unit rose disproportionately last year: an 8 percent increase, to $1,950 — the highest jump since at least 2002, according to a city study.
Also, some Santa Barbara City Council members are sounding the alarm on the number of landlords who are converting their rental units into condominiums. In two years, the city has approved roughly 100 conversions. There are 71 more conversions pending.
“This is an alarming number,” said Councilman Das Williams. “One of the most important things we need to do as a city is protect our rental housing and middle-class housing. To do that we need to have less condo conversions.”
Meanwhile, the vacancy rate in Santa Barbara has long been low — just below 3 percent — and few, if any, market-rate rental units are being built, because there is no financial incentive for property owners to do so...
Council members like Williams, Helene Schneider and Mayor Marty Blum have expressed interest in tightening existing restrictions on condo conversions... [including] a disincentive to condo-ize rental units [by] extending the so-called inclusionary housing ordinance to developments under 10 units in size.
... other council members don’t think the answer is to impose more restrictions on property owners. Councilwoman Iya Falcone prefers the idea of providing incentives for landowners to keep rental housing. Councilman Dale Francisco outright opposes any measures that would try to limit condo conversions...
... Williams said he would like to lower the cap on the allowable number of condo conversions every year.
As it is, the city allows no more than 50 units of condo conversions that require no construction. (Conversions that do involve construction for some reason are not subject to any cap.)
Blum, meanwhile, said she’d consider revisiting a modified version of an ordinance that once existed in Santa Barbara until it was overturned about 15 years ago: Putting a moratorium on conversions when the vacancy rate dips to a certain level...
“Less than 5 percent of the people who live in Santa Barbara can afford to buy here,” she said. “That’s a very, very low number. I know that I probably couldn’t afford to buy here if I were starting over.”
...
... Santa Barbara has long been a nearly impossible place for middle-class families to enter the housing market, but some evidence suggests it’s becoming increasingly difficult for renters as well.
For one thing, the median rate for a two-bedroom rental unit rose disproportionately last year: an 8 percent increase, to $1,950 — the highest jump since at least 2002, according to a city study.
Also, some Santa Barbara City Council members are sounding the alarm on the number of landlords who are converting their rental units into condominiums. In two years, the city has approved roughly 100 conversions. There are 71 more conversions pending.
“This is an alarming number,” said Councilman Das Williams. “One of the most important things we need to do as a city is protect our rental housing and middle-class housing. To do that we need to have less condo conversions.”
Meanwhile, the vacancy rate in Santa Barbara has long been low — just below 3 percent — and few, if any, market-rate rental units are being built, because there is no financial incentive for property owners to do so...
Council members like Williams, Helene Schneider and Mayor Marty Blum have expressed interest in tightening existing restrictions on condo conversions... [including] a disincentive to condo-ize rental units [by] extending the so-called inclusionary housing ordinance to developments under 10 units in size.
... other council members don’t think the answer is to impose more restrictions on property owners. Councilwoman Iya Falcone prefers the idea of providing incentives for landowners to keep rental housing. Councilman Dale Francisco outright opposes any measures that would try to limit condo conversions...
... Williams said he would like to lower the cap on the allowable number of condo conversions every year.
As it is, the city allows no more than 50 units of condo conversions that require no construction. (Conversions that do involve construction for some reason are not subject to any cap.)
Blum, meanwhile, said she’d consider revisiting a modified version of an ordinance that once existed in Santa Barbara until it was overturned about 15 years ago: Putting a moratorium on conversions when the vacancy rate dips to a certain level...
“Less than 5 percent of the people who live in Santa Barbara can afford to buy here,” she said. “That’s a very, very low number. I know that I probably couldn’t afford to buy here if I were starting over.”
...
Labels: condo conversions, condominiums, ordinance
Posted by Malcolm on
6/25/2008
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