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<br />e <br /> <br />e <br /> <br />e <br /> <br />Mr. Van Landingham said the purposes of the Condominium Conversion Ordinance <br />are to help displaced people and to protect the city's supply of rental <br />housing. He said the city's rental housing vacancy rate was between one and <br />three percent in 1980, it increased to about 20 percent in the early 1980.s, <br />and it is now under three percent again. He said rents are increasing now. <br />Describing a cycle, he said condominiums sell well when the rental market is <br />tight. Conversion of apartments to condominiums makes the rental market <br />tighter by decreasing the number of rental apartments in the city. A tight <br />rental market makes converting apartments to condominiums profitable and <br />selling the condominiums continues to decrease the supply of rental <br />apartments. <br /> <br />Mr. Van Landingham said the State condominium conversion law does not protect <br />tenants. He said State laws are often written for Portland and the Portland <br />vacancy rate is much higher than the Eugene vacancy rate, the percentage of <br />renters in Portland is lower than in Eugene, and Portland has a larger supply <br />of low-cost housing than Eugene has. <br /> <br />Mr. Van Landingham said condominium conversions are different from <br />forclosures because more people are displaced. He said Housing and Urban <br />Development (HUD) officials estimate that about 60 percent of the tenants are <br />displaced when apartments are converted to condominiums. He said Lane Tower <br />has 120 apartments and a about 80 people would be looking for other apartments <br />if Lane Tower were converted to condominiums. <br /> <br />Mr. Van Landingham said tenants are not usually evicted if they pay the rent <br />and follow the rules but condominium conversions change that expectation. He <br />said a State law prohibits the eviction of tenants in mobil home parks except <br />for good cause unless the owner of the park goes out of business. <br />Consequently, mobile home park tenants have lifetime leases if they pay the <br />rent and follow the rules. He said the State law was enacted because many <br />mobile home park tenants are elderly and have limited incomes, because the <br />expense of relocating from mobile home parks is high, and because the supply <br />of mobile home parks is limited. <br /> <br />Mr. Van Landingham said he supports most of the Planning Commission.s <br />recommendations because they simplify the administration of the Condominium <br />Convers ion Ordi nance and because they address the problem of provi di ng <br />benefits to people who do not need them. He said the Planning Commission <br />recommended that the notice requirements in the existing ordinance be <br />retained. The Planning Commission also recommended that moving expenses be <br />paid and assistance in finding comparable hOUSing be given if tenants are <br />classified as special category tenants. He reviewed the eligibility <br />requirements recommended by the Planning Commission and said they will provide <br />benefits to people who need them. <br /> <br />Mr. Van Landingham said the recommendations of the Planning Commission are a <br />compromi se that wi 11 make it easier to convert apartments in Eugene to <br />condominiums. He said the recommendations go too far in substituting the <br />services of a relocation specialist for the requirement that tenants be <br />offered comparable housing and in not deciding who should pay for the tenant <br />benefits. He said the Planning Commission recommendation indicates that a <br /> <br />MINUTES--Eugene City Council <br /> <br />February 9, 1987 <br /> <br />Page 4 <br />