10/24/1979 Meeting - Laserfiche WebLink

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that the State, at the present time, will not enter into a mortgage agreement on homes exceeding $47,000 in sales value. It is being proposed that the State be allowed to enter into mortgage agr'eements where the e mortgage amount does not exceed the maximum regardless of what the sale price of a home is. This would allow someone who had a more significant down payment to purchase a domicile for a greater value and still have the benefit of the State Mortgage Program. Mary Briggs, Planning Department, summarized the staff report's pertinent points on the subject of condominium conversions in the community as prepared by the Planning and HCC departments. Those points were: 1. State regulations control the process of condominium conversion. There are tenant protections built into the process, including 90-day notice, first right of refusal to purchase, and Public Report. 2. Market forces affect the supply and demand of condominium units (including conversion of existing rental units) and affect the cost and timing associated with conversion. 3. There are State and local goals and policies supporting choice in housing, home ownership, housing affordability, and high- density housing near the city's core. 4. Problems of displacement are not unique to occupants of multiple- family housing and displacement can and does occur in the absence of conversion. e 5. Displacement is a problem for low-income households, particularly elderly and handicapped. 6. To date, in Eugene, condominium units are a very small percentage of the total housing stock. 7. Condominiums are likely to become an increasingly important compo- nent of the city's housing stock. 8. Increases in condominiums can be an important part of Eugene's efforts to achieve some of its goals and policies, e.g., choices in housing, compact urban growth, housing mixes, etc. She indicated that the Joint Housing Committee's 4:1 vote against imposing a moratorium at this time is supported by staff. She added that staff does not support a moratorium at this time based on the following factors: 1) there is not sufficient evidence to warrant the use of this selective mechanism; 2) it conflicts with other City housing policies; 3) it could result in increased purchase costs of condominiums when the moratorium is lifted; 4) it won't solve the problems of displacement; 5) there appear to be legal risks in so doing; and 6) the consequences of such actions are not well enough known at this time. There is no evidence to suggest that a moratorium would be the best action. e 10/24/79--6 5g~