06/09/1980 Meeting - Laserfiche WebLink

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e upgraded before selling and one form of upgrading available is condo- minium conversion. If that option is lost in Eugene, construction of a sizable development will slow or stop. It would be foolish for him to invest in Eugene when he can go to another "forward thinking" community where those options are available. There has been less housing started in Eugene in the last three years and increased costs and decreased rents are the factors. Conversion is a national phenomenon. He feels the council cannot legislate how and where investors will invest their money as invest- ments are determined by the potential profit in the free enterprise system. New, large rental developments will not be built in this community by private funds with this type of law and, therefore, Eugene will have lost new housing. In condominium conversion, no housing will be lost and, in fact, the building of more units for later conversion will be encouraged. He feels this law implies that owners are a repugnant breed who throw handicapped or elderly citizens into the street. He knows many busi- ness people who put up with persons who take advantage of legislation favoring special categories. He believes the intent is good regarding the special category tenant but the implementation of this process will not be recognized. "0ne only has to look at Social Security, Welfare, unemployment, and other social programs to see what is now recognized as a special category and realize these groups now include many who were never intended to be included when the laws were originated." e He stated that nowhere in this ordinance is any mention of property owners' rights or protecti9n of those rights. H~ stated that on page 19, Section B, the developer must give a notice. He stated that it has taken 49 pages to set forth this law and additional administrative rules are yet to be written. He requests that the owners be given this information in plain and simple language as is required of the developers so that they might pass it on to the tenant. Before the moratorium took effect, he had sent a registered letter to the City, the County, and the State requesting that he be sent the necessary information to convert his property to condominiums. His only reply from the City was "see your lawyer." He said it is his understanding that City staff, after researching the ordinance, recommended that it was unnecessary and will probably have a detrimental impact on Eugene's housing. He also understands that HUD is opposed to this type of law because it discourages private investment and real estate development in the community. He understands that outside consultants have testified that this law was unnecessary. He asked who recommended the ordinance, wondering if it was undue concern over the two high-rise conversions from which, when challenged in court, the City backed down because of the potential expensive litigation. He asked whether they feel there will not be challenges to this law. He stated that he thinks the ultimate challenge may come in a few years by a potential e 6/9/80--13