HomeMy WebLinkAbout08/20/2002, PH 3 - AMENDMENT TO THE DOWNTOWN HOUSING CONVERSION PERMIT ORDINANCE TO IMPLEMENT GENERAL PLAN HOUSING ELE councils zo oZ
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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
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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
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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.
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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
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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.
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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:
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Ordinance No. (2002 Series)
Attachment 1
Page 3
AYES:
NOES:
ABSENT:
Mayor Allen Settle
ATTEST:
City Clerk
APPROVED:
f rge en ity torney
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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
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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)
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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
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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
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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.
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