Item 4: PH on Ordinance Concerning Condominium Conversion

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Low-income persons (current household income is equal to or less than 80% of the median ? income on an annual basis determined for Eugene-Springfield by the federal Department of Housing and Urban Development (HUD); Elderly, (70 years or older); or ? Persons with disabilities. ? Under the current code provisions, the applicant must pay moving expenses to special category tenants, in an amount representing the actual costs for moving a tenant’s possessions to another location within the city, up to a maximum amount of $350 for moving costs and $150 for packing and unpacking costs. Low-income tenants receive only reimbursements for moving expenses, exclusive of expenses attributable to packing and unpacking. Elderly and disabled tenants receive reimbursement that includes packing and unpacking costs. The Housing Counselor is responsible for presenting moving costs to the applicant on behalf of the tenant. 3.Protections to purchasers of converted units by requiring mandatory disclosure of the condition of the building. Purchasers of condominium units are protected by the Eugene Code the following ways: The building(s) being converted must be in compliance with applicable City Building and Safety ? Codes. The applicant must establish an adequately funded replacement reserve account for the unit ? owners’ association. The purchaser must be informed of the condition of the building(s) prior to sale. ? Proposed Code Amendments: Recently, staff received numerous inquiries about the City’s requirements relating to condominium conversions. One conversion is in process and another is preparing to initiate the process. In working with these owners, staff became aware that one requirement is no longer attainable on the open market. In order to address this situation, the intent to amend the code was initiated. This proposed amendment and three other updates were discussed by the intergovernmental Housing Policy Board (HPB) on May 1. The other proposed updates are in response to basic issues that surface during the administration of the ordinance. The HPB recommends the following proposed code amendments be approved. 1. Amend the code to replace the requirement for an architect/engineer’s certified report with a common elements report prepared by a reserve specialist, a professional who provides an analysis of the condition and life remaining in the common areas. Because an architect/engineer certified report can no longer be obtained in today’s market, this requirement needs to be changed. A report by the reserve specialist is the best replacement at this time but the language also allows for a report prepared by another professional acceptable in the City. 2. Amend the code to require that the moving cost benefits that must be paid are those amounts established (and periodically updated) under the Federal Uniform Relocation Act. These residential moving costs are based on the number of rooms of furniture to be moved. In 2005 for Oregon, the allowance was $400/one-room, $550/two-rooms, $750/three-rooms, and $950/four-rooms. The amendment would provide a fixed sum of money based on the number of rooms of furniture to be moved. The level of assistance for moving costs currently allowed under the code was established in 1986, these dollar amounts need to be updated to reflect higher moving costs. L:\CMO\2006 Council Agendas\M060626\S0606264.doc