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HomeMy WebLinkAbout06/06/2006, PH3 - CONSIDERATION OF A CONDOMINIUM CONVERSION FOR 16 APARTMENTS AT 1043 ELLA STREET (CON 21-06). COU11CllIMceiingDxm (Q U acenba Repol2t �mN�� CITY O F SAN LUIS O B I S P O FROM: John Mandeville, Community Development Director Prepared By: Brian Leveille, Planning Technician SUBJECT: CONSIDERATION OF A CONDOMINIUM CONVERSION FOR 16 APARTMENTS AT 1043 ELLA STREET (CON 21-06). CAO RECOMMENDATION Adopt the attached resolution approving a condominium conversion for 16 units at 1043 Ella Street (Vista Del Ciudad Apartments, CON 21-06) DISCUSSION Situation The City's process to consider the conversion of rental apartment properties to "for sale" condominiums is regulated by Chapter 16.17 of the Municipal Code (Attachment 2). This year the City has received one such request. With only one application for conversion, and no necessary project ranking from the Planning Commission, the application has been forwarded directly to the City Council for consideration. Chapter 16.17 establishes numerical limits for condominiums that may be converted annually. The limits are defined as `-`half the number of multi-family rental dwelling units added to the City's housing stock in the previous year minus the number of such units demolished", and are intended to protect the City's supply of rental housing. In 2005, a net of 58 multi-family rental apartments were added to the City's housing stock; therefore, 29 condominiums may be converted in 2006. The applicant's request to convert 16 units is less than the maximum allowable condominium conversions for 2006. The conversion approval process is only the first step. If the applicant's request is approved, the project will need to return to the Planning Commission and City Council to process a condominium tract map. With the review of the tract map, specific code requirements and conditions will be applied to the project. The project would also require subsequent review by the Architectural Review Commission to review building and site improvements. At this time, the Council's review is to consider whether or not the apartment project should be allowed to begin the conversion process. Data Summary Address: 1043 Ella Street Applicant/Property Owner Brian Rolph Zoning: R-2 General Plan: Medium-Density Residential Environmental Status: Condominium conversions are exempt from CEQA in accordance with Section 15301 k, "Existing Council Agenda Report—CON 21-06 Page 2 Facilities", of CEQA. Site Description The property is approximately one acre in area and is located on the south side of Ella Street at the base of Terrace Hill. The existing development consists of a sixteen unit apartment complex known as "Vista De La Ciudad" apartments. The units were originally constructed in approximately 1970 and consist of four separate buildings each containing 4 units. An asphalt parking area and a small common area deck is located on the site. Proiect Description The applicant is proposing to convert 16 rental apartments to "for sale" condominiums. This includes retrofitting each unit with separate utilities and performing upgrades to the parking area and site to comply with current zoning standards. The project will also require significant site work including common open space improvements and incorporation of site amenities that are typically required for condominium projects. Additionally, the applicant is proposing a Neo-Colonial face lift, new windows and doors, new plumbing and electrical fixtures, new roof, cabinets and millwork, and new flooring. The architectural changes to the building will result in the removal of the existing mansard roof and constructing a complete new roof with gable ends. As discussed in additional detail below, two affordable units are proposed. Evaluation The following paragraphs evaluate the conversion for consistency with General Plan Policies and the City's Condominium Regulations established within the City's Subdivision Regulations. 1. General Plan Consistencv While Housing Element policies do not favor rental over ownership housing, (or vice versa) there are however, General Plan Policies that promote the preservation of affordable housing. The following General Plan Policies need to be taken into consideration when reviewing the proposed conversions. H 2.2.4: Creation of Various Housing Types Encourage housing production for all financial strata of the City's population, in the proportions shown in the Regional Housing Needs Allocation for the 2001 — 2009 planning period. These proportions are: very low income, 34%; low income, 19%; moderate income, 20%; above moderate income, 27%. Evaluation: Maintaining a variety of housing types is important to providing housing for all financial strata of the City's population. This includes rental and ownership housing, as well as apartments, duplexes, and single family detached housing. It is generally thought that attached rental housing (especially apartments) is the most affordable housing type because of lower land cost per unit, relatively smaller size, and no down payment costs or mortgage financing costs. a-a Council Agenda Report—CON 21-06 Page 3 Close examination reveals that there are many factors that can result in apartment rents that are not affordable. Even so, the City regulates the conversion of apartments to condominiums so as to insure there is no net decrease in the number of apartments in the City. In addition, older dwellings may not comply with current housing codes, providing the City with a reason to support new investment into aging housing stock. The City's Condo Conversion Regulations require that the number of apartments converted to condominiums cannot exceed the number of new apartments built in the previous year. Last year, 58 new apartments were constructed. The request to convert 16 apartments is less than the number of new apartments constructed last year. H 3.2.2: Discourage the removal or replacement of housing affordable to very-low, low, and moderate income households by higher cost housing.......unless such actions are necessary to achieve General Plan objectives and: (1) it can be demonstrated that rehabilitation of lower-cost units at risk of replacement is financially or physically infeasible, or (2) an equivalent number of new units comparable or better in affordability and amenities to those being replaced is provided, or (3) the project will correct substandard, blighted or unsafe housing; and(4) replacement will not adversely affect a designated historic resource. Evaluation: The proposed project would provide an equivalent number of units with comparable affordability and better amenities (item 2 above). Though the units are proposed for conversion to "for sale" units, the units are still affordable by design at less than 1,100 square feet. "Affordable by design" means that where typically cost per square foot is a common denominator among housing units, with smaller dwellings typically costing less than larger dwellings. Two units will be deed restricted at the "very low" income level for 30 years. This is a substantial increase in long-term affordability since there are no units within the project that are currently deed restricted. Also, adding very-low income units to our housing stock, particularly in a private development, is noteworthy as at this time those units will be available only to families with a maximum annual income of$28,700. Very low income units rent for a maximum of$718 per month and sell for a maximum of$86,100. For amenities, the project will offer improved common and private open space area, and improved access to the Terrace Hill open space area. The conversion project would also improve the condition of the ageing structures with significant site work that would include new roofing, a Neo-Colonial facelift, new windows and doors, new plumbing and electrical fixtures, cabinets and millwork, all of which will improve the appearance and safety of the existing structures constructed in 1970. L U 2.S:Affordable Housing The City will help conserve and increase residential opportunities for residents with very low, low, or moderate incomes. As explained more fully in the Housing Element, each development project should contribute in some way to the conservation or production of affordable housing, considering the opportunities and limitations for the project. The major residential expansion areas, in particular, should include a wide range of housing types and costs to meet the needs of various income levels and housing preferences. 3-3 i Council Agenda Report—CON 21-06 Page 4 H 4.2.2:Apartments and Condominium Projects Include both market-rate and affordable units in apartment and residential condominium projects and intermix the types of units. Affordable units should be comparable in appearance and basic quality to market-rate units. Evaluation: The Condo Conversion Regulations are designed to mitigate the displacement of low and moderate income persons by requiring affordable housing provisions to be incorporated into the conversion. At a minimum, condominium conversions are subject to the City's Inclusionary Housing Requirements which require a percentage of the units to be deed restricted to affordable housing standards for a minimum of 30 years. The applicant's project already contains 16 units where 12 is the standard maximum density for a 1.02 acre project in the R-2 zone. The applicant is providing two "very low" deed restricted units to achieve a density bonus to be in substantial conformance with the Zoning Regulations requirements and all of the units are anticipated to be affordable by design based on their size.. 2. Propertv Development Standards Condominium Conversion property improvement standards state that conversion projects shall substantially conform to the City's building, housing codes, and Zoning Regulations in effect on the date the conversion project is approved. Three significant changes to this property will need to occur in order for it to substantially conform with the applicable standards. These include common open space, parking and driveway improvements, and density. Each of these changes is discussed in the following. a. Density The site exceeds allowable density by four units. In the R-2 zone, the 1.02 acre site should have a maximum of 12 units. To bring the site into compliance with Zoning Regulations density standards, the applicant would have to qualify for a 25% density bonus. To qualify for this density bonus, the applicant could either deed restrict three units at the "moderate" income level, or two units at the "very low" level. The applicant has opted to provide two units at the "very low" income level to qualify for the density bonus, bringing the 16 unit project into compliance with the Zoning Regulations' density standards. b. Parking and Driveway Standards The existing parking lot is non-conforming since there are no landscape planters and the configuration of the parking needs to be adjusted to meet minimum bay and stall dimensions. To bring the parking into substantial compliance, planting areas will have to be added and pavement will have to be re-striped to meet parking space width and depth requirements. C. Common and Private Open Space To meet the intent of the condominium requirements, open space areas are required to be improved with usable amenities. The applicant proposes an increased common area deck including new landscaping. Additionally, private yards and decks are proposed for each unit. In order to meet the common open space requirements, the applicant agreed to increase the width of an existing 10-foot pedestrian access easement that currently leads from the end of Rachel Council Agenda Report—CON 21-06 Page 5 Street to the Terrace Hill open space area. The applicant has also agreed to construct a pathway within this easement to allow public access from Rachel Street up to Terrace Hill. This would provide for a significant amenity for the project with useable common open space area and improved linkage to the nearby open space areas that would also benefit neighborhood residents. Conclusion The proposed conversion accomplishes several City policy goals. The proposed remodel of the site and buildings will bring the property in compliance with the City's current Community Design Guidelines, the City's Subdivision Regulations, and the City's Parking and Driveway Standards. Furthermore, the guarantee of two affordable units accomplishes City Housing Element goals and provides for long-term affordability. The affordability component, building and site area. improvements, and enhanced open space access for area residents, offset concerns that there will be a loss of affordable rental housing stock. Even with significant upgrades, the proposed conversion will result in ownership properties that will likely be affordable by design due to the size and configuration of the units. CONCURRENCES The conversion requests have been reviewed by other City departments including Public Works, Utilities, Building and Fire. Project conditions require Building Code upgrades and other upgrades associated with the general condition of each property to comply with City Standards. FISCAL IMPACT When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which found that overall the General Plan was fiscally balanced.. Allowing conversions of multi family rental properties to individual "for sale" properties is not likely to create significant fiscal impacts. ALTERNATIVES 1. Continue this action and request additional information from staff or the applicants. 2. Deny the request for conversion. ATTACHMENTS: 1. Vicinity Map 2. Reduced scale project plans 3. Draft Council Resolution approving a conversion for 1W Ella Street G:/Bleveille/CondoConversions/CON 21-06 Attafhment 1 -S-H 2-S t s � titi _ - - R-1 -PD w R2 G. S-H VICINITY MAP CON 21 -06 N 1043 ELLA 3�L Attachment 2 o m = c \ O m m z m co . . \N'\.IA .' 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ZOBEL W FLOOR C27191- MELAIDA PROPERTIES 1043 Elio Street w TMMI 1=1 S- Luis Obispo. CA IMAM.=rMu T .:.ueiin Attachment 2 Lj A s® e � e m §m m _x ax x 8 N N N Z Z O &O O m 5 N +f m — z D O O z m Z m m rr, m < I�< m ul 0El z z 8 Fl Z A�. B P.� 6 R� '9. Wrinlr fwwitlw i«: �a• Nm 'fs - IRO ELEVATIONS mTo :RITMA; nsrw• - _- ERIK R. 20. BKL ADELAIDA PROPERTIES SOLL IA' OUR czvlel 1043 Elio Sweet Son LuisObispo . CA �•• Q ARC}lIT@CTp p�i 11 Attachment 2 rT L4 0 rl T Z ,717 Li rn 0 A ii I LL i. t >-11Nma n•r as ! t I ME--------------------------------------L----- A�1.1.�0.F.: LOMM FLOOR PLM MIN R. ZOBEL ➢ ALMAElOA PROPERTIES I I1"Zt roe t Son LU19opoCA A CIIITZCT Attachment 2 III C� Ln r"I m m C�E 0 0 :17 xsssW.Cwwmr.f.F.: UPPER FLOOR PLAN Imaa ore ERIE R ZJOBEL -7 ADELAIDA PROPERTIES M. 4 1 2 10 3 Ell. St, 0. Son Luis Obis; , CA Attachment !II � � I ez ° FOS I A 8 y11 Ln �i gm II —O A IT! r rn 6 < O ISI o lEft l IEEii o pa { �I o Ij, ill ,IiI, z I M IIII i rri III IIIiI s iFMt �lil III I, 7 II �I la ® I v �I �I1 1 I II li ' I L_ A Iliill l �� it NO dii Illi I III N II o lid I, o i�iil II tA t1 I I I I III i I c TIT k z IL III, I, I: I Ir '� Illi IIII ,i �� 'Y n ' Ahrmpis O.mm�lm iw: PROPOSED ELEVATIONS SFA: urs ERSE R. 20BEL •s ABEDI DA PROPERTIES RZIE0 11r nun .c2Tlvl SElio Strout © v rad Sanon G Luis BDiap0. O r I< m�.� �`'. 0 w CHI TELT Z..on Attachment 3 RESOLUTION NO. XXXX-06 A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A CONDOMINIUM CONVERSION FOR SIXTEEN APARTMENTS AT 1043 ELLA STREET APPLICATION NO. CON 21-06 WHEREAS, the Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on June 6, 2006, to consider Application No. CON 21-06, a request to approve a Condominium Conversion for 16 apartments known as Vista Del Ciudad Apartments at 1043 Ella Street; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the conversion of existing residential apartments to ownership condominiums is exempt from environmental review (CEQA); and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff presented at said hearing. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the Council makes the following findings: 1. The proposed condominium conversion is consistent with the General Plan because changing the apartments to condominiums will not impact available affordable housing since the conversion will provide two deed restricted affordable units at the "very low" category consistent with the City's Inclusionary Housing Ordinance and the other units are affordable by design. 2. As conditioned, the conversion complies with all regulations and property improvement standards for condominium conversions. 3. As stated in the applicant's property condition report, the property is in satisfactory condition and a report of any known defects will be made available to future property owners and kept on file at the City. 4. Based on a staff review of the application materials, a visit to the site and a review of City records, the property is in substantial compliance with the Zoning Code in terms of allowed use, density, parking, yard areas, building height, and all other applicable property development standards. 5. In accordance with the Condominium conversion standards the applicant has appropriately delivered a notice of intent to convert to each tenant. 6. The existing apartments, due to location, design, condition, and general conformance 3-t�;, Attachment 3 Resolution No. [ ] Page 2 with property development standards are appropriate for conversion to individual ownership units and will result in a quality living environment for future property owners. 7. In light of the above findings, there exists adequate facts to support the findings required under sections 66473.5 and 66474 of the Government Code. 8. An equivalent number of new units comparable in affordability and amenities to those being converted are being created as part of the new project. 9. In accordance with the CEQA Guidelines Section 15301 (K) the conversion of multiple family residences into condominiums is categorically exempt from environmental review. SECTION 2. Action. The Council hereby approves Application No. CON 21-06, a request to convert sixteen apartment units at 1043 Ella Street to individual ownership condominiums in accordance with Municipal Code 16.17, subject to the following conditions: 1. The applicant shall apply for a tentative parcel map as defined by the Subdivision Map Act and in accordance with the City's Subdivision Regulations and Municipal Code Chapter 17.82 (Condominium Conversions). The tentative parcel map shall be subject to (but not limited to)the following conditions of approval: a. Each unit shall be supplied with individual meters for gas, water and electrical service. Location and type of metering shall be subject to review and approval of the City. b. Any building defects noted in the property condition report submitted to the City shall be repaired prior to approval of the final condominium map. c. Any improvements necessary to comply with the property improvement standards for condominium conversions (Chapter 17.82.110 A through O) shall be completed prior to approval of the final condominium map. Such improvements include (but may not be limited to): private open space yards, bicycle storage lockers, retrofitting units with additional energy compliance requirements such as increased insulation or insulated windows, restoration and refurbishing of landscape areas, installation of common area improvements, installation of smoke detectors and fire protection systems, or repair and upgrades of parking areas. d. Conditions, Covenants and Restrictions (C.C.&R.$) are required, to the approval of the Community Development Director and the Public Works Director. The C.C.&R.s shall include a description and regulations pertaining to the open space easement and all common areas. e. If pertinent, the tentative map shall reflect the location of all any overhead and underground utilities. f. The subdivider shall submit a final map to the city for review, approval, and recordation. The map shall be prepared by, or under the supervision of a registered civil engineer or licensed land surveyor. The final map shall be prepared in accordance with the Subdivision Map Act and the Subdivision Regulations. g. Pursuant to Government Code Section 66474.9(b)(1), the subdivider shall defend, indemnify and hold harmless the city or its agents, officers and employees from any claim, action, or proceeding against the city or it agents, officers or employees to attack, set aside, void or annul an approval of the city, advisory agency, appeal board or legislative body concerning this subdivision. The city 3 - [�P Attachment 8 Resolution No. [ ] Page 3 shall promptly notify the subdivider of any claim, action or proceeding and shall cooperate fully in the defense. 2. Each non-purchasing tenant not in default under the provisions of the rental agreement or lease shall have the right to remain not less than 330 days from the written notice of intent to convert. 3. After submittal of the tentative map, prospective tenants shall be given a written notice of intent to convert prior to leasing or renting any unit. 4. Applicant shall give any present tenant a non-transferable right of first refusal to purchase the unit occupied. This right of first refusal shall extend at least ninety days from the date of issuance of the subdivision public report or commencement of sales, whichever date is later. The tenant's security deposit and last months rent shall be credited towards the purchase of the property. 5. A barbeque facility including a picnic bench and landscape enhancements shall be incorporated into the common open space area. The design of the improvements shall be reviewed and approved by the Community Development Department. The improvements shall be constructed prior to recordation of the final condominium map. 6. Private open space yards, including new fencing and any other necessary landscape improvements, shall be completed prior to recordation of a final map. 7. Solar water heating shall be provided for each unit, and appropriate easements shall be provided for collector locations. The Community Development Director may waive the requirement for solar water heating in cases where the Chief Building Official has determined that equivalent energy saving will be obtained by other means. 8. A minimum of two units, of average size and quality, shall be deed restricted to "very low" affordable levels for a minimum of 30 years, consistent with the City's Inclusionary Housing Ordinance. The unit shall be deed restricted upon recordation of the final condominium map prior to sale of the property. 9. The condominium conversion presents an opportunity to repair any problems with the existing sewer lateral serving the site. The Utilities Department Sewer Lateral Repair Policy states that the sewer lateral must pass a video inspection, or be repaired or replaced as part of the overall project. Our local plumbers are equipped to perform this inspection, and the City Wastewater Collections Department will review the tape and either approve the use of the lateral for the proposed condominium conversion or make recommendations for repair or replacement, as appropriate. The inspection tape should be clearly labeled with the applicant's name, address, City application number, the name of the inspection company, the date of the inspection, and contact telephone numbers. 10. The proposed new parking lot layout and striping plan appears to create a conflict with the recycling container storage area. The recycling area should be an enclosure similar to the regular trash enclosure. The recycling container storage area shall be conveniently located for use by the residents, as well as for pick-up by the garbage company. The 3_) ") i Attachment 3 Resolution No. [ J Page 4 plans should be presented to San Luis Garbage Company for their review and approval. Parking space #13 may need to be eliminated to allow for pick-up of recyclable refuse. Code Requirements 1. Any improvements necessary to comply with the property improvement standards for condominium conversions shall be completed prior to approval of the final condominium map. Such transportation improvements include long and short-term bicycle parking as well as vehicle parking. 2. If any site improvements are made which necessitate any portion of the retaining wall fronting Ella Street to be reconstructed, that portion of the wall shall be set back an addition two feet and the sidewalk expanded to six feet in width. 3. As part of the tentative map process, the project will be conditioned to increase the width of the pedestrian access easement and make the necessary physical improvements to provide access to the easement from the property as well as from Rachel Street. 4. As part of the tentative map process, the project will be conditioned to complete the site's frontage improvements on Rachel Street. 5. Municipal Code Section 16.036.250.J.2 requires the developer to provide separate water services to each condominium unit. Each unit must be plumbed separately and independently from the others. The proposed condominiums can share a common sewer lateral, providing that the Condominium Owners' Association Agreement contains adequate provisions for the joint ownership and maintenance of the private sewer lateral. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this day of , 2006. Mayor David F. Romero 3 ^ � b Attachment 3 Resolution No. [ Page 5 ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: Jon an Lowell, City Attorney - t9