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EUGENE1S CONDOMINIUM CONVERSION ORDINANCE Septel'1oer 11, i985 .! Page 2 ~ Ordi.nance Summary Eugene's ordinance regulates the conversion of rental dwelling units to condo- minium units in three major areas: 1. Offers protection to all tenants in a oroposed conversion with the right to stay for 180 days from the time of notice, including rent control and requiring cause to be shown for eviction; 2. Provides additional benefits for Special Category Tenants that are either low income, elderiy, or handicapped. These tenants, in addition to the protections above, receive moving expenses and the services of a housing counse1or to identify comparable housing; and ., Gives protection to prospective purchasers by offering a warranty on "'. the common elements of the building for two years, a replacement reserve account for the unit owners' association at the end of the warranty period, and certain other disclosure provisions. To be eligible to convert a rental project to-a condominium, a develooerjowner must apply to the City for both a preliminary and final perl'1it. Under the .~ ordinance, no developer is allowed to negotiate for the sale of condcminium units or cooperative shares to prospective purchasers until i ssua nce of J preliminary permit to convert. No developer is allowed to transfer ownership of any condominium unit or co-op share until a final permit for conversion has been granted. Before a developer can begin the process of obtaining the necessary permits, it must be proved that the proposed conversion will not exceed the level allowed under the conversion rate formula orescribed in the ordinance. (A copy of the formula, including an explanatlon and data since ordinance adop- tion is provided under separate cover, along with a more complete description of the ordinance and administrative procedures.) Ana 1 ys is Since the adoption of the ordinance in June 1980, 440 units in four separate projects have received final approval as condominium conversions in Eugene. Also, a 22-unit. lower-income, limited-equity cooperative project, sponsored by NEDCO. received an exemption from the ordinance. An additional 230 units located in two projects were the $ubject of an application \'/hich \'Ias dropped midway in the orocess. . . None of the owners of the projects that have received final approval has attemoted to actually convert the properties. and it does not appear :hat they e intend :0 convert the ~rojects in the near future. All have yet to submit the iJrcjects to the State of Oreaon Real Estate Division -:0 beain t.he Stat.e's iequired conversicn process. - Jevelooers ~hat have fulfilled re~uireMents of