Ordinance No. 18655 - Laserfiche WebLink

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18655 4. Condominium or cooperative conversions produce an in- crease in owner--occupied housing stock and a decrease in the renter-occupied housing stock. Tf demand for rental units does not decrease concomitantly with~the decrease in. the number of rental units, lower income, handicapped, or elderly households which typicall~r rent, will face a reduction in housing choice. 5. There will likely be a large ,umber of condominium and cooperative conversions in this area in the near future because of the diminishing size of the average household, the financial advantages of hone ownership, the relative expense of single fam- ily structures, and because the financial return to condominium developers, for properties in relatively new and adequate condi~- tion and with acceptable operating cost limits, is more attractive than the comparable return on rental property. 6. The national experience suggests that condominium con- version rates increase in areas, such as here, where the rental vacancy rate is extremely low. Since 1977, 240 Eugene residen- tial rentals in multiple family structures have been converted to condominium ownership. There have been additional conversions since the imposition of the moratorium on November 28, 1979, Since the institution of the moratorium, 91 rental units in the Willamette Towers have been allowed to convert and exemptions were granted for an additional 8~ units in other projects. 7. Although there are positive local effects for condo- minium conversions, the negative effects of such conversions a,re serious and partcu~,arly acute in.areas, such as here, with low rental vacancy rates. These negative effects include forced displacement of those renters unable or unwilling to purchase con- dominium units from the owner, a disproportionate burden on older, handicapped, or low income renters, an exacerbation of rental unit shortages, and a short term and possible long term .increase in housing cysts and rents. The impact of that displacement is more significant in large structures than in small ones.. H. ~ The impact of conversions of rental units to stock co- operatives has similar negative effects. Regulat~.on of stock co~ operative housng~conuersions is necessary for effective regulation of condominium conversions. Those housing cooperatives subject to federal or state regulation require less local regulation. 9. The City of Eugene has legal authority to take action to preserve available housing opportunities within the community and to prohibit community uses therein which are detrimental to the health, safety and welfare of the residents of the city. 1Q. The City Council finds it necessary to establish re- quirements and procedures for the control and approval of the con- version of existing multiple family rental housing structures to residential condominis or cooperatives. Ey their unique char- acter and requirements, conversion projects differ specifically ordinance - 2