SR 06:263 - Laserfiche WebLink

should be lower to better reflect market conditions. Mr. Bocian stated that staff based the recommended threshold on a review of other ordinances and that 5% seems to be standard in the industry. Mr. Bocian commented that if the Commission is interested in making changes based on some of Mr. Clark's comments, staff can either bring back a modified draft ordinance at the next meeting or make changes based on the Commission's direction tonight and move this ordinance forward. Mr. Bocian indicated there is another issue that was not included in the scope of this report concerning rental developments that are demolished and replaced with condos. These cases would not be covered by the proposed draft ordinance, although staff feels that they should be. Mr. Bocian noted that there is one developer in town who is considering completely removing an apartment complex and replacing it with an ownership condominium development. Staff's sense is that although the original buildings would be replace, a "conversion" is still taking place. Therefore, staff believes that language should be added to the ordinance to clarifY this issue. Charles Clark, Pleasanton Manor Apartments, Pleasanton, addressed the Commission. Mr. Clark supported a three-month period for tenants to make a decision to buy rather than six months, after which it would likely take another three months to obtain financing. Regarding the recommended one-year approval expiration, he noted he bought Pleasanton Manor two years ago and now is faced with a two-year construction loan that is about to expire. He felt that this exemplifies the length of the process. In response to a question from Commissioner Stark, Mr. Clark stated that there are 51 units in his apartment development. Mr. Stark asked Mr. Clark what was his experience in property management. Mr. Clark replied that he has been in apartments close to 30 years but that this is his first condo venture. He further stated that he has dealt with Section 8 for decades. Commissioner Hodgett stated that it is a great idea to offer choices for relocation assistance and that there are various definitions of "relocation." She feels it is really important to clearly define what is meant so that there is no confusion on either side. She supports leaving the timeline at six months since tenants need time to make the difficult transition. She also stated that the 5% vacancy rate is the industry standard depicting a healthy rental market. Commissioner Stark stated that he feels that flexibility regarding relocation is a good idea. He suggested that the Commission might consider splitting of the six-month tenant decision period into a three-month decision making period and a three-month financing period if the financing assistance would also include some homebuyer education. He feels that there are resources in this area, such as the Tri-Valley Housing Opportunity Center, that could be brought in immediately once an owner knows he/she is going to Page - 5 -