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HomeMy WebLinkAbout05/15/2007, PH 3 - CONDOMINIUM CONVERSION FOR 10 APARTMENT UNITS (1302 & 1314 PALM STREET, CON 11-07). council ° j Ac,Enc)a Repoat CITY OF SAN LUI S O B I S P O FROM: John Mandeville, Community Development Direc r Prepared By: Tyler Corey, Associate Planner SUBJECT: CONDOMINIUM CONVERSION FOR 10 APARTMENT UNITS (1302 & 1314 PALM STREET, CON 11-07). CAO RECOMMENDATION Adopt a Resolution approving a condominium conversion for 10 units at 1302 & 1314 Palm Street.. DISCUSSION Background 1302 & 1314 Palm Street is a moderately sloping, rectangular shaped site consisting of approximately 15,410 square feet located on the northeast corner of Palm Street and.Johnson Avenue. The site is within the Mill Street Historic District and includes the Righetti House, which is on the Master List of Historic Resources due to its architectural and historical J significance. Built in 1877, the Righetti House is one of the largest and best examples of the Queen Anne style of home building, and one of the oldest surviving wood frame residences of this genre in the City. In 2005, the City Council approved a Mills Act contract for the building to ensure its long-term preservation and maintenance in return for property tax savings. A new detached 2-bedroom dwelling unit with covered parking is currently under construction. The surrounding area is residential in character and developed with single-family residences and apartments. Zoning surrounding the site is shown in the attached vicinity map (Attachment 1). The applicants, Fonte, Rossi and McAdams, are proposing to convert 10 rental apartments to "for sale' condominiums. Nine of the units are located within the historic Righetti House and one detached unit is under construction. As part of the restoration project to the Righetti House, the structure was updated to current building code standards, which included the installation of separate utilities, fire sprinklers and smoke detectors to each unit. The proposed conversion project will require some additional site work including common area improvements and incorporation of amenities that are typically required for condominium projects. As discussed in additional detail below, one affordable unit is proposed. City Process for Condominium Conversion 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. This year the City has received only one such request. With only one application for conversion, and no necessary project ranking from the Planning Commission, this request is being forwarded directly to the 1 Council Agenda Report-CON 11-07 May 15,2007 Page 2 City Council for consideration. Chapter 16.17 establishes numerical limits for condominiums that may be converted annually. Intended to protect the City's supply of rental housing, 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". In 2006, a net of 27 multi-family rental apartments were added to the City's housing stock; therefore, 13 apartment units may be converted to condominiums this year. The applicant's request to convert 10 units is less than the maximum allowable for 2006. The conversion approval process is only the first step. If the applicants' request is approved, the project will need to return to the Planning Commission and City Council to process a condominium tract map. The project may also require subsequent Architectural Review to evaluate 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. General Plan Consistency While the City's 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 conversion. Listed below in bold print are applicable General Plan policies, followed by staffs analysis. 1. General Plan Housing Element Policy 2.2.4 (Creation of Various Housing Types) states: "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%. Staff Anal 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. The proposed conversion from apartments to condominiums may change the affordability characteristics of the 10 units, but results in a project that continues to provide housing for various income groups. In addition, based on their size and configuration, the units will remain relatively affordable and could be rented. 2. General Plan Housing Element Policy 3.2.2 (Housing Conservation) states: "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". r 1 Council Agenda Report—CON 11-07 May 15,2007 Page 3' Staffs Analysis: The proposed project will not demolish, remove or replace units on the property. The project will allow for separate ownerships of the individual units with comparable affordability and better site amenities (improved common and open space areas) (item 2 above). Though the units are proposed for conversion to "for sale" units, the units are still affordable by design with an average unit size of 560 square feet, which is significantly less than what would qualify (1,100 square feet) per Table 2A of the Housing Element. "Affordable by design" means that where typically cost per square foot is a common denominator among housing units, smaller dwellings typically cost less than larger dwellings. One unit will be deed restricted at the "moderate" income level for 45 years(Unit #4). This is a substantial increase in long-term affordability since there are no units within the project that are currently deed restricted. Also, adding a moderate income unit to our housing stock, based on the units' size (studio), is noteworthy as at this time that unit will be available to persons with a maximum annual income of $53,600. Moderate income studio units rent for a maximum of $1,118 per month and sell for a maximum of$187,600. 3. General Plan Land Use Element Policy 2.5 (Affordable Housing) states:"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". 4. General Plan Housing Element Policy 4.2.2 (Apartment and Condominium Projects) states: "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". Staff Analysis: The Condominium 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, the Regulations require at least one affordable housing unit to be offered at rents or sale prices affordable to low or moderate income persons for a minimum of 45 years. The applicant is providing one "moderate" income deed restricted unit (Unit #4). In addition, based on their size, all of the units are considered affordable by design. Propertv Improvement Standards for Condominium Conversions The Property Improvement Standards for Condominium Conversions 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. Overall, the project complies with all property development standards with the exception of private open space, parking and storage. These issue areas are discussed in further detail below. Council Agenda Report—CON 11-07 May 15,2007 Page 4 I. Private Open Svace City standards require that each unit be provided with a minimum of 100 square feet of private open space. The minimum private open space requirement for this project is 1,000 square feet (10 X 100 = 1,000). The project proposes 695 square feet of private open space in the form of yards for units 3 & 4 and elevated decks for units 1,2,5 & 8-10. Units 6 & 7 are not provided with any private open space area. The private open space areas for units 1,2,5,8 & 9 do not meet the minimum 100 square foot requirement. Units 3,4 & 10 are the only units that fully comply with the private open space requirements. Given the date of construction for the Righetti House (1887) and its architectural and historical significance, requiring modifications to the Master List building for compliance with private open space requirements could be detrimental to its historic character. In addition, given the size of the units (560 square foot average) and expected number of occupants coupled with the extensive common open space and passive recreation areas (which far exceed standards) it is anticipated that residents of the site will have adequate access to outdoor use areas. 2. Parking The project site is non-conforming with regard to parking. Based on the number of bedrooms within the project, 14 vehicle parking spaces would normally be required. The project site accommodates five standard spaces (3 covered). Previously, the site contained 15 units and 4 parking spaces. Currently, the site contains 10 units and 5 parking spaces, which is a significant improvement to the overall pre-existing parking situation. In addition, the new detached building includes five substandard electric vehicle spaces. As a gesture of goodwill, the applicants are proposing to include electric vehicles as part of the sale of five of the units. A condition has been added to project approval that restates this requirement. The specification sheet for the proposed electric vehicles is attached for reference (Attachment 3).. It should be noted that if in the future the electric spaces are no longer viable, the five substandard garage spaces could be used as additional storage space for the units. The project's parking requirement can be found to be in substantial compliance with Chapter 17.14 of the Zoning Regulations (Non-Conforming Structures). Apartment and condominium parking requirements are the same. Therefore, the proposed conversion will not exacerbate impacts to parking. It is not recommended that the site be redesigned to accommodate additional parking because the property has historically had less parking with more units, is situated on a corner lot with over 200 linear feet of street parking (though this cannot be technically counted) and contains a Master List historic resource. 3.. Storage City standards require that each unit be provided with a minimum of 200 cubic feet of private storage space. The project proposes storage areas within individual garages, under the o.� �7 r'1 Council Agenda Report—CON 11-07 May 15,2007 Page 5 stairwell of the detached unit and within the common laundry room. Each unit will be provided with lockable private storage space exclusive of cabinets and closets within the units. However, storage provided for seven out of the 10 units do not meet the minimum 200 cubic-foot requirement. In order for the project to fully comply, additional storage space would need to be constructed. This is not recommended due to the size of the units, expected number of occupants and potential reduction in area devoted to common open space and passive recreation. Conclusion While the project does not fully meet all property development standards, it can be found to be in substantial compliance as well as accomplishing several City policy goals. The guarantee of one affordable unit accomplishes applicable Land Use and Housing Element goals and provides for long-term affordability. The affordability component coupled with improved common open space and recreation areas is a trade-off for the potential loss of rental housing. Due to the size and configuration of the units, the proposed conversion is anticipated to result in ownership properties that are affordable by design. 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. Accordingly, since the proposed project is consistent with the General Plan, it has a neutral fiscal impact. ALTERNATIVES 1. The Council may approve the project with modified findings and/or conditions.. 2. The Council may deny the proposed condominium conversion, based on findings of inconsistency with the General Plan or other policy document as specified by the Council. 3. The Council may continue review of the project, if more information is needed. Direction should be given to staff and the applicants. ATTACHMENTS 1. Vicinity Map 2. Reduced scale project plans 3. Electric vehicle specifications 4. 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Its standard six 12-volt Flooded �; electrolyte batteries provide a range of up eNEV5 A'ND EVENTS * t� v � I to 35 miles on a charge and the many »1 GfAl SHOP l ` vehicle options offer you great versatility. GEM TOWN Visit the Standard Features,section for o7- r ;' more information on the features that make the GEM e2 a vehicle you will enjoy GSA;FLEET CUSTOMERS driving. 1 OFFERS & QUOTES BROCHURES AFFORDABILITY ABOUT GEM Build 7bur OwnRequest.a Br,„ebur. j CONTACT US HOME GEM e2 Specifications Curb Weight 1,120 lbs GVW 1,850 lbs Payload Capacity 730 lbs* Length 99” Height 70" Width 55" ......--....................-......_._....... _.........................-__............ ...._...... Wheelbase 72" Turning Circle 24 ft Tires 12-inch street-rated Range Up to 35 miles Top Speed 25 mph *Options + Passengers + Cargo Colors Metallic Black Metallic Blue Metallic Silver 3 -A45 tp://vvww.gemear.com/models/detaiHs.asp?MID=3 4/25/2007 n C` Attachment 4 Draft Resolution RESOLUTION NO. (2007 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A CONDOMINIUM CONVERSION FOR 10 APARTMENTS LOCATED AT 1302 & 1314 PALM STREET (CON 11-07) WHEREAS, the City 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 May 15, 2007, for the purpose of considering Application No. CON 11-07, a request to convert 10 apartments to condominiums; 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 Guidelines, Section 15301 (k), Existing Facilities); and WHEREAS, the Council has duly considered all evidence, including the testimony of applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing. BE IT RESOLVED,by the City Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings: 1. The proposed condominium conversion is consistent with the General Plan because the conversion of apartments to condominiums will not impact available affordable housing since the project will provide one deed restricted affordable unit consistent with the City's Inclusionary Housing Ordinance and Condominium Conversion Regulations, and the size and configuration of the units are considered affordable by design. 2. The proposed project is consistent with the annual limits for the conversion of apartments to condominiums since half the number of apartment units added to the City's housing stock in 2006 (13) is greater than the proposed number of conversions (10). 3. As conditioned, the project is in substantial compliance with the Property Improvement Standards for Condominium Conversions, building and housing codes, and Zoning Regulations. 4. In accordance with the Condominium Conversion Regulations, the applicant has appropriately delivered a notice of intent to convert to each tenant. 3 -/6 Attachment 4 Resolution No. (2007 Series) Page 2 5. The existing apartments, due to location, design, condition, and substantial conformance with property development standards are appropriate for conversion to individual ownership units and will result in a satisfactory living environment for future property owners. 6. An equivalent number of new units comparable in affordability and amenities to those being converted are being created as apart of the project. 7. In light of the above findings, there exist adequate facts to support the findings required under sections 66473.5 and 66474 of the Government Code. 8. 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 City Council does hereby approve Application No. CON 1I- 07 with incorporation of the following condition and code requirements into the project: Condition 1. Electric vehicles shall be included as part of the purchase of five of the units and shall be sized appropriately for their designated garage spaces. Specific units to be designated with the electric vehicles shall included in the project CC&R's and determined prior to recordation of the final map. Code Requirements 1. The applicant shall apply for a tentative tract map as defined by the Subdivision Map Act and in accordance with the City's Subdivision Regulations and Municipal Code Chapter 16.17 (Common Interest Subdivision and Condominium Conversions). 2. The applicant shall give any present tenant a nontransferable 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. 3. 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 180 days from the date of approval of the condominium conversion by the City Council. 4. A tenant's rent shall not be increased from the time an application for conversion is submitted to the City for processing to 180 days following City Council approval of the conversion. 5. After submittal of the condominium conversion application to the City, prospective tenants shall be given a written notice of intent to convert prior to leasing or renting any unit. 3 -17 Attachment 4 Resolution No. (2007 Series) Page 3 6. A minimum of one unit shall be deed restricted as affordable to low or moderate income persons for a minimum of 45 years, consistent with the City's Inclusionary Housing Ordinance and Condominium Conversion Regulations. On motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this 15`h day of May, 2007. Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: Jona an Lowell, City Attorney