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HomeMy WebLinkAbout08/20/2002, PH 3 - AMENDMENT TO THE DOWNTOWN HOUSING CONVERSION PERMIT ORDINANCE TO IMPLEMENT GENERAL PLAN HOUSING ELE councils zo oZ j agenda RepoRt �N H CITY OF SAN LUIS OBISPO FROM: John Mandeville,Community lopment Direct Prepared By: Jeff Hook, Associate Planne SUBJECT: AMENDMENT TO THE DOWNTOWN HOUSING CONVERSION PERMIT ORDINANCE TO IMPLEMENT GENERAL PLAN HOUSING ELEMENT POLICIES. (ER AND GPI 197-00) CAO RECOMMENDATION: Introduce an ordinance to print approving a negative declaration on environmental impact and amending Chapter 17.86 of the Municipal Code to revise Downtown Housing Conversion Permit requirements. DISCUSSION Situation On June 0' Council directed staff to bring back an ordinance for consideration that would close a loophole in the current Downtown Housing Conversion Permit ordinance. That loophole allows converting three or fewer dwelling units or boarding house rooms to non-residential uses without a discretionary permit. Council decided to postpone consideration of the broader changes recommended by the Planning Commission to coincide with the Housing Element Update. Planning Commission Recommendation At its February 28, 2001 meeting the Commission considered public testimony and on a 5:0 vote (Commissioner Peterson absent and one vacant seat) recommended amending Chapter 17.86 of the Municipal Code regarding Downtown Housing Conversion Permits. The Commission's recommended changes would strengthen housing preservation requirements by 1) eliminating the exemption of conversions for three or fewer dwellings or boarding rooms, 2) enlarging the area covered by the ordinance to include the entire Downtown Planning Area, 3) requiring one-for- one replacement of housing removed by new development, and 4) including specific conditions of approval to address General Plan affordable housing policies, including tenant relocation and design of replacement units. Renewed Focus on Housing The proposed amendment is only one of several actions the Housing Element calls for to address housing needs. The City has embarked on a two-year effort to update the Housing Element. Part of that effort will focus on ways to help meet our estimated Regional Housing Needs Allocation (RHNA). Although the RHNA number has not been finally decided, the City's tentative allocation of almost 5,800 dwellings is higher than our assigned housing need in the 1990s. Due to the scarcity of affordable workforce housing, there is a renewed community focus on local housing needs. To help meet these needs, the City's housing strategy will be two-tiered: 1) to increase housing production for all income levels, and 2) to preserve the sound housing it already has — particularly affordable housing. By its nature, downtown housing is often "affordable" housing. The proposed amendment would help achieve the latter objective. Other 3-/ Council Agenda Report_Downtown Housing Conservation Page 2 existing Housing Element policies address housing production and these may be revised or expanded as part of the update. Purpose of the Amendment Walk-up apartments were once common in many downtown commercial buildings. In the 1960s and 1970s, building permit records show conversion of upstairs apartments and hotels to commercial space occurred with increasing frequency. By the early 1980s, Council had identified the loss of downtown housing as a significant concern. The Downtown Housing Conversion Ordinance was adopted in 1981 to limit the conversion of housing to commercial uses. It required Council approval for conversions subject to four findings: 1) conversion is consistent with the General Plan and the Downtown Goals Statement, 2) there is vacant replacement housing available within the City at similar cost to the dwellings occupied by the displaced tenants, 3) cost of building rehabilitation for residential use or its operational costs cannot be supported by future property income, and 4) there are no local, state or federal funding programs available to help rehabilitate or purchase the property for publicly assisted housing. Unfortunately, the ordinance did not stop the conversion of downtown housing. This was because the ordinance applied only to conversions of four or more dwellings. As long as dwellings were removed in groups of three or fewer, no conversion permit was required. Consequently, the loss of downtown housing continued. Since the ordinance's adoption, two downtown housing conversion permits were issued, allowing a total of 35 apartments to be removed. This 21-year old ordinance is still in effect but due to its built-in "loophole," it is no longer consistent with General Plan policies. General Plan Policies In 1994, the City's updated its Land Use and Housing Elements. The updated elements included new policies to preserve and expand downtown housing. These policies reflect the community's desire to maintain a vital, diverse downtown with a mix of commercial and residential uses, and to preserve the affordable housing stock in the downtown area. Typically, Downtown residents have been senior citizens, students and low-income persons that have difficulty finding affordable housing elsewhere in the community. Consequently, the loss of Downtown housing often displaces those who can least afford it. Specific policies are listed in Attachment 4.. The policies already adopted are the basis for the proposed amendments. The policies are clear. They say preserve mixed-use residential/commercial atmosphere downtown and discourage the removal of residential structures and uses. These policies are not being achieved, as evidenced by building permit records showing a net loss of housing in the Commercial Core since 1980. Requiring discretionary review for all downtown housing conversions will allow the City to conserve important housing resources and help maintain Downtown's vitality. Downtown Housing Is Being Converted Changes to the C-C zone and Downtown Planning Area are shown in Table 1. The data shows a net loss of housing in the C-C zone of 49 dwellings since 1980. This is mainly due to conversions of downtown apartments to second story office space. In the Downtown Planning 3-z Council Agenda Report—Downtown Housing Conservation Page 3 area (Attachment 3), there has been a net increase of 202 dwellings, primarily due to the development of a few large, apartment projects located in residential zones around the outer edge of the Downtown Planning Area. TABLE 1. Dwellings in C-C Zone and Downtown Planning Area, 1980-2000 ZONE DWELLINGS, 1980 DWELLINGS,2000 NET CHANGE C-C 249 200 -49 Downtown Planning Area 2,598 2800 +202 What the Proposed Amendment Would Do The amendment would: • Require Council approval to convert one or more dwellings in the Downtown Core Area shown on Exhibit A. This is the area within the Downtown Planning Area which is zoned C-C. • Include a provision addressing Residential Care Facilities to clarify that a loss of one room in a care facility is treated the same as the loss of an apartment. However Council would have wide latitude to approve any size or design of replacement unit. • Add a definitions section to clarify key terms. What the Proposed Amendment Would Not Do The proposed amendment would apply only to the C-C zone. Other zones within the Downtown Planning Area (the area bounded by Highway 101, High Street, and the railroad tracks) are not affected. These include the O (Office) and C-R (Retail-Commercial) zones-- neighborhoods where we've cumulatively lost the most units. Council's immediate concern was to close the loophole in the existing ordinance. The larger issues of housing conversions in other zones in the Downtown Planning Area would be considered -- along with affordable housing incentives — as part of the Housing Element Update. How the Ordinance Amendment Would Work The ordinance would apply to all development projects within the C-C zone that would remove a legal dwelling or convert at least 51 percent of a dwelling's floor area to a non-residential use. A developer would apply for a Downtown Housing Conversion Permit, concurrent with any other required planning approvals, before applying for a construction permit. Conditions of the permit, such as replacement housing, parking or tenant relocation requirements, would be met prior to occupancy of the new use. ?_3 Council Agenda Report_Downtown Housing Conservation Page 4 ALTERNATIVES/STAFF COMMENTS 1. Modify provisions of the proposed amendment. Changes to the amendment could include streamlining the conversion permit process by allowing the Planning Commission or Community Development Director to hear such requests, or by allowing a higher percentage of replacement dwellings to be located offsite. Staff could support allowing Planning Commission or Director to act on conversion requests as use permits, subject to appropriate findings and conditions of approval to ensure consistency with General Plan policies. 2. Initiate other incentives or changes. Provide other direction to staff on appropriate changes to the draft ordinance, or other measures to implement General Plan policies regarding"no net housing loss." 3. Defer action on the amendments and consider Downtown Housing Conversions in the context of the upcoming Housing Element Update. As part of the pending Housing Element update, state law requires cities to consider ways to remove "obstacles to the production of housing" and to consider incentives to encourage housing. A discussion of housing conversion and possible incentives to encourage both housing preservation and production could return to the Planning Commission and Council as part of the update process. ATTACHMENTS: 1. Draft Ordinance and Exhibit A 2. Vicinity Map (Figure 1) —Downtown Housing Conservation Area 3. Legislative Draft of Ordinance Amendment 4. Downtown Housing Conservation Policies Council Reading File: 1. February 19, 2002 staff report 2. Initial Study ER 197-00 3. Ch. 17.86, San Luis Obispo Municipal Code 4. Downtown Dwellings, 1980 5. Downtown Dwellings, 2000 6. Downtown Housing Changes, 1980-2000 7. Newspaper articles on Downtown housing in SLO 8. Ten Steps to a Living Downtown jh/UDowntownhousing/Caeport8-20-02revised 3y Attachment 1 ORDINANCE NO. (2002 SERIES) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING CHAPTER 17.86 OF THE MUNICIPAL CODE REGARDING DOWNTOWN HOUSING CONVERSION PERMITS TO ESTABLISH A DOWNTOWN HOUSING CONSERVATION PROGRAM WHEREAS, the City's Downtown Area meets a critical community housing need by providing a variety of housing types that help meet the housing needs of very-low, low, and moderate-income households; and WHEREAS, Downtown housing meets a variety of special needs housing due to its proximity to shopping, schools, public transportation, government, social and health services; and WHEREAS, housing is necessary to maintain the economic vitality of Downtown, improve public safety, and to reduce dependence on the automobile; and WHEREAS, Downtown housing has historically included apartments, hotels and single- room occupancy units above the ground floor in multi-story buildings; and WHEREAS, the supply of Downtown housing has declined due to demolition and conversion of dwellings to non-residential uses; and WHEREAS, the General Plan Housing Element calls for the preservation of existing downtown housing and discourages the removal of sound or rehabitable existing housing; and WHEREAS, the Downtown Housing Conversion Permit Ordinance has allowed downtown housing conversions to continue due to an exemption for land uses involving three or fewer dwellings; and THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION I. Findings. The City Council finds and determines that: A. The proposed amendment is necessary to achieve General Plan goals to preserve housing in the Downtown Planning Area. ,3 S� Attachment 1 Ordinance No. (2002 Series) Page 2 B. The proposed amendment will promote public health, safety and welfare by preserving housing close to jobs, social and health services, and by reducing the jobs/housing imbalance resulting from the displacement of housing by new commercial development.. C. The potential environmental impacts of the proposed regulations have been adequately evaluated in the Initial Study ER 197-00 pursuant to the California Environmental Quality Act (CEQA) and that the project will have no adverse impacts and does not require environmental mitigation. D. This determination reflects the independent judgment of the City Council. SECTION 2. Environmental Determination (ER 197-00). The Council hereby approves a negative declaration of environmental impact for the proposed regulations amendment. SECTION 3. Ordinance Amendments. Chapter 17.86 of the Municipal Code, Downtown Housing Conversion Permit Regulations, is hereby amended as fully set forth in Exhibit A. SECTION 4. Notice and Publication. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in the Tribune, a newspaper published and circulated in this city. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at its meeting held on the day of 2002, on motion of seconded by and on the following roll call vote: 3-( Ordinance No. (2002 Series) Attachment 1 Page 3 AYES: NOES: ABSENT: Mayor Allen Settle ATTEST: City Clerk APPROVED: f rge en ity torney 1-7 Ordinance No. (2002 Series) Attachment 1 Page 4 EXHIBIT A SAN LUIS OBISPO MUNICIPAL CODE, CHAPTER 17.86 DOWNTOWN HOUSING CONSERVATION REGULATIONS DOWNTOWN HOUSING CONVERSION PERMITS Sections: 17.86.010 Purpose and intent. 17.86.020 Area of application. 17.86.030 Land uses affected. 17.86.040 Permit required. 17.86.050 Public hearing- Notification. 17.86.060 Findings required. 17.86.070 Conditions of approval. 17.86.080 Definitions 17.86.010 Purpose and intent. It is the desire of the city to retain housing in the central business district. It is also the intent of the city that this housing should provide shelter for low- and moderate-income people and senior citizens. The provisions of this chapter are intended to achieve these goals by regulating the conversion of downtown housing to nonresidential uses. (Prior code § 9900) 17.86.020 Area of application. Provisions of this chapter shall apply to certain types of residential land uses within the Commercial Core, as shown on Figure 1. 17.86.030 Land uses affected. Provisions of this chapter shall apply to all land uses that contain one or more dwelling units and to all group housing, including hotels, motels or boardinghouses, dormitories or residential care facilities which have one or more individual rooms for rent. (Prior code § 9902) 17.86.040 Permit required. Before any residential land uses regulated by this chapter are converted to nonresidential use, a conversion permit must be approved by the council. (Prior code § 9903) 17.86.050 Public hearing-Notification. Prior to acting on applications, the council shall hold a public hearing, notice of which shall be given to the residents of the proposed conversion and posted on the property at least ten days beforehand. (Prior code § 9904) 17.86.060 Findings required. In order to grant a conversion permit, the council must find that approval of the permit is consistent with the adopted San Luis Obispo general plan and the adopted downtown goals statement. (Prior code § 9905) Ordinance No. (2002 Series) Page 5 17.86.070 Conditions of approval. The council may establish conditions of approval which provide for the general health, safety and welfare of tenants displaced by the proposed development. Such conditions shall include,but are not limited to: A. Vacation of Unit. Each tenant shall have the right to remain not less than sixty days from the date of council approval of a conversion permit. The council may grant an extension to this right to remain for a period of time not to exceed an additional thirty days. B. No Increase in Rent. A tenant's rent shall not be increased during the period provided in subsection A of this section. (Prior code § 9906) 17.86.080 Definitions. A. Non-residential Use. Any land use other than "dwelling," "boarding or rooming houses" or "dormitories," "residential care facilities" or "caretakers' quarters" as defined by the Zoning Regulations and listed in Table 9, Chapter 17.22 of the Municipal Code. B. Development Project. Any public or private action for which a City construction permit or planning approval is required, including architectural review, use permit, variance, subdivision or other approval. C. Downtown Planning Area. The central part of the City, generally bounded by Highway 101, the railroad, and High Street, including the commercial core and historic residential neighborhoods. D. Commercial Core. That central downtown area of the City zoned "C-C" (Central Commercial) in the most recently adopted Zoning Map. E. Conversion. A change in the primary use of at least 51 percent of the floor area of a legally permitted dwelling or building from residential to non-residential use, or physical change in design of 51 percent of an individual dwelling's or building's floor area to accommodate non-residential uses. Attachment: Figure 1 jh/IJdowntownhousingthousingordamend8-20-02 3-9 • a 0 owe,,;;. \ ♦� o� -Pen=..- ..1111111111 �. ♦ �� ,1/ i♦00\\,, � �,` �i II�IIIR_-� 111. E/%' '♦�\ ij♦i�o-_e `_ _I♦Oe��r����,\ \\ ``,���� poop r� I •�rs •111\In � .�, y� \\� r = + ♦♦ ♦\\i, o \�� ♦ ��O '��•i��0� _111= -- , -SSI ..>'' �� O\" ;;:111= � � � ►� III 1 I! �%♦i\� i`� ���\gid♦�'. ♦ v� � � .� \\\ !♦ �,�''j '•` \\�/ QI 1•y `� k.+�`�i'a,4' syr q!J' �'' �I `\ .�� \\\\� � , ,,♦ I�..���j �` i.A\\�r• �R';*<:• ;`� `a�'���♦��♦���.`j`'\\\,� ���L�j�,♦-til,`, `� L ♦ ��A,�i-ice ,. �j\I� O I\ � I•I ?"A � / /�\\���\���+♦♦`�'J`,\� ♦, �y 't�.• iii-a \\'i, / ♦`♦\\\\ ;.�\, �i'�" -�, �� ,, .gyp\\ ♦'\O\' e\\�':.�\ \\t` .�3/ .:, =s;;. _� ,_ ����� ',ym 1_��,I;rnllll �aa_iIIID 111111�Iillle'®'�\�-"' ■_i5 �`s^ z7•1. +��;':I" � _�Il.i�h= =?i :11111 B1='a'11:._' ,�.G' `,��h,;.,h�1+,�♦bee Attachment 3 Au%!ust5, 2002 Legislative Draft of Amendments to Chapter 17.86 DOWNTOWN HOUSING CONVERSION PERMITS Sections: 17.86.010 Purpose and intent. 17.86.020 Area of application. 17.86.030 Land uses affected. 17.86.040 Permit required. 17.86.050 Public hearing - Notification. 17.86.060 Findings required. 17.86.070 Conditions of approval. 17.86.080 Definitions 17.86.010 Purpose and intent. It is the desire of the city to retain housing in the central business district. It is also the intent of the city that this housing should provide shelter for low- and moderate-income people and senior citizens. The provisions of this chapter are intended to achieve these goals by regulating the conversion of downtown housing to nonresidential uses. (Prior code § 9900) 17.86.020 Area of application. Provisions of this chapter shall apply to certain types of residential land uses within the Commercial Core . as shown on Figure 1. 17.86.030 Land uses affected. Provisions of this chapter shall apply to all land uses that contain one or four-of more dwelling units and to all group housing. including hotels, motels or boardinghouses, dormitories or residential care facilities which have one#eu+-or more individual rooms for rent. (Prior code § 9902) 17.86.040 Permit required. Before any residential land uses regulated by this chapter are converted to nonresidential use, a conversion permit must be approved by the council. (Prior code § 9903) 17.86.050 Public hearing-Notification. Prior to acting on applications, the council shall hold a public hearing, notice of which shall be given to the residents tenants of the proposed conversion and posted on the property at least ten days beforehand. (Prior code § 9904) 17.86.060 Findings required. In order to grant a conversion permit, the council must find that approval of the permit is consistent with the adopted San Luis Obispo general plan and the adopted downtown goals statement. (Prior code § 9905) 3-// Legislative Draft - Do,...town Housing Conservation Ordinanc. .mendments Page 2 17.86.070 Conditions of approval. The council may establish conditions of approval which provide for the general health, safety and welfare of tenants displaced by the proposed development. Such conditions shall include, but are not limited t g: A. Vacation of Unit. Each tenant shall have the right to remain not less than sixty days from the date of council approval of a conversion permit. The council may grant an extension to this right to remain for a period of time not to exceed an additional thirty days. B. No Increase in Rent. A tenant's rent shall not be increased during the period provided in subsection A of this section. (Prior code § 9906) 17.86.080 Definitions. A. Non-residential Use. Anv land use other than "dwelling." "boarding or rooming houses" or "dormitories." "residential care facilities" or "caretakers' quarters" as defined by the Zoning Regulations and listed in Table 9, Chapter 17.22 of the Municipal Code. B. Development Project. Any public or private action for which a City construction permit or planning approval is required. including architectural review, use permit, variance, subdivision or other approval. C. Downtown Planning Area. The central part of the Citv. generally bounded by Highway 101, the railroad, and High Street. including the commercial core and historic residential neighborhoods. D. Commercial Core. That central downtown w-ea of the City zoned "C-C" (Central Commercial) in the most recently adopted Zoning Map. E. Conversion. A change in the primary use of at least 51 percent of the floor area of a legally pennitted dwelling or building from residential to non- residential use, or physical change in design of 51 percent of an individual dwelling's or building='s floor area to accommodate non-residential uses Jh/Udowntownhousin /�leoislative draft)of amendments 3 �z Attachment 4 city of san lues osispo GENERAL PLAN POLICIES-DOWNTOWN HOUSING CONSERVATION 1. LAND USE ELEMENT(L C9 4.2.1. Existing residential uses within and around the commercial core should be protected, and new ones should be developed. Dwellings should be interspersed with commercial uses and should provide for a variety of household types. All new, large commercial projects should include dwellings. 2. LU4.16.2. Existing residential uses shall be preserved and new ones encouraged above the street level. 3. HOUSING ELEMENT(Zo 3.3.4. The City will adopt a "no net housing loss" policy for existing housing units in the C-C zone by revising the Downtown housing conversion permit process. 4. H 2.2.2. The City will adopt measures to encourage creating housing that's affordable to all its citizens, and to prevent loss of existing affordable housing. S. H 2.2.3. The City will preserve and expand its supply of affordable rental housing. 6. H.2.2.7. The City shall discourage the replacement of lower cost housing by new higher cost housing, unless 1) the lower cost units at risk can either be conserved, or 2) an equivalent number of new units comparable in affordability and amenities to those being replaced are created as part of the new project. 7. H.2.2.9. The City shall avoid governmental actions which remove affordable housing units. 8. H.2.3.10. The City will develop affordable housing conservation standards for public and private actions that include assisting displaced residents with relocation costs and providing affordable housing. 9. H 3.1.1. The City shall conserve the existing housing supply and prevent displacement of current occupants. 10. H3.2.1. The City shall discourage the demolition of sound or rehabitable existing housing. 11. H 3.2.2. The City shall discourage the conversion or elimination of existing housing in office, commercial and industrial areas. 12. H3.2.3. Since older dwellings can often be relocated and refurbished for considerably less cost than for a comparable new dwelling, and since older 3 -13 a Attachment 4 dwellings may offer spatial and material amenities unavailable in new dwellings, the City will encourage rehabilitating such dwellings rather than demolition: 13. H3.2.5. The City shall encourage the preservation, rehabilitation and expansion of residential hotels and other types of single-room occupancy dwellings. 14. H 3.2.6. The City shall preserve landmark and historic residential buildings. 15. H 5.2.2. Where housing can be compatible with offices or other businesses, mixed-use residential/commercial projects should be encouraged. 16. H 5.2.3. To provide housing opportunities close to activity centers and to use its land efficiently, the City will encourage infill housing above ground level retail uses in neighborhood shopping districts and in the C-C zone. 17. H 6.ZZ To add to the City's residential land base, the City will encourage the production of infill housing above compatible street-level commercial uses in various commercial zones. 18. H 6.2.3. New large Downtown commercial projects should include housing. 19. H 6.3.3. The City will amend its regulations to require that some new housing be provided in new multi-story commercial buildings in the Downtown Core Area 20. H 11.2.1. Where property is equally suited for commercial or residential uses, the City will give preference to residential use. Changes in land use designation from residential to non-residential will be discouraged. 3 -/y