10/29/1979 Meeting - Laserfiche WebLink

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. that they do not know the assets of the elderly polled earlier. Addres- sino the auestion of choice, staff noted that 97 percent of the housinq e stock in the West University neiqhborhood is renter-occupied and 80 percent in the central area is renter occupied. As to financial feasibility of the down-payment purchase proqram, at this time there appears to be $RO,OOO in the deferred assessment account. Not knowinq the sales prices of condominium units, it is difficult to antici- pate how far the money would 00. It appears unlikely it would spread much farther than to subsidize eiqht units. Ed Whitelaw, economic consultant to the City, responded to the Mustoe and Lauber memos. He said that he aorees with most points of the Mustoe memorandum, but disaorees on the likely lono-ranqe effect of condominium conversion. He believes the effect will likely decrease rents. He said that Mustoe thinks it is unclear what the effects will be, but that the disaoreement diverts attention from what he reqards as the much more important issue, the human riqhts issue. Mr. Whitelaw notes conflictino conclusions in the Daniel Lauber memo and the Leoal Aid memos incorporatina Lauber's ideas. The Lauber memo des- cribes a "reluctant purchaser" as one who would prefer to rent but is forced into purchasinq. However, the table in that memo shows that the percentaqe of former tenants who end up buyina ranqes from 20 to 25 percent, 60 percent of which they claim are reluctant. They did not comment on the 75 percent purchasinq from the outside, and Mr. Whitelaw does not believe that qroup could be called "reluctant purchasers." He e added that Lauber emphas ized the not ion of "contrived demand. II Aoa in, 75 percent of those purchasers are cominq in from outside. He said his analysis suaaests that the bulk of the purchasers are people who rented in the past and who, because the relative price of home ownership has skyrocketed, had become reluctant renters. The human riohts issue is not clear-cut, Mr. Whitelaw said. In the pre- sent case, a condominium conversion will increase the equity or improve the welfare of those reluctant renters priced out of home ownership. A moratorium will preserve the welfare of renters who prefer not to buy. So, it is a comparison of qroups, Mr. Whitelaw said. He said the more important issue is that, if the Council feels stronoly about helping those who will be dislocated, he recommends they adopt a refined and selective instrument other than the blunt instrument of a moratorium. Ms. Smith wondered what Mr. Whitelaw would recommend for those people not wantino to, or beino able to, purchase. Mr. Wh ite 1 aw responded that, if feelinos are strano about protectinq those who cannot or do not wish to purchase, the technique would be to prolonq the period of time they would be allowed to continue to rent and to seek substitute units. He emphasized that this type of person can be found in all areas, not just housinq. Stan Lonq, City Attorney, pointed out that the Attorney's office has historically not recommended moratoriums as a oeneral practice. It must be clear there is a oood-faith intention in adoptinq such an ordinance. e 10/29/79--6 5~5