'Condo Conversion' Bill May Be Revived

03/27/2007

According to the City of Seattle, over 4,000 apartments have been converted to condominiums since 2004. Meanwhile the number of rental apartments has decreased. Housing advocates say poor and disabled renters are often left in the lurch. A bill to increase protections for tenants failed to advance in the state legislature this year. But now advocates say there's hope the bill may yet survive. KUOW's Amy Radil reports.

SUZIE, WHO ASKED THAT HER LAST NAME NOT BE USED, SAYS LIFE IN HER QUIET, ONE–BEDROOM BALLARD APARTMENT WAS PRETTY MUCH IDEAL. THE LANDLORD ACCEPTED HER SECTION 8 HOUSING VOUCHER. AND SHE WAS ON THE FIRST FLOOR, WHICH MADE IT EASIER TO COPE WITH HER ARTHRITIS AND OTHER HEALTH PROBLEMS. BUT A FEW MONTHS AGO SUZIE'S LANDLORD INFORMED HER THAT THE BUILDING WOULD BE MADE INTO CONDOMINIUMS. HERS WOULD SELL FOR $500,000. WORKERS STARTED COMING BY TO TAKE MEASUREMENTS, WHILE SHE TRIED TO DOWNSIZE FOR THE MOVE.

SUZIE: "I'm a bibliophile, so I had to do away with bookcases which means I'm still having to do away with books which I hate to part with... I'm a reader."

SHE ENTERED SEVERAL MONTHS OF LIMBO, NOT KNOWING WHERE SHE'D END UP. THE ORGANIZATION SOLID GROUND HELPED SUZIE LOCATE A NEW SECTION 8 APARTMENT FIVE MILES AWAY. THEY ALSO PAID HER FIRST MONTH'S RENT, WHILE SHE TOOK ON DEBT PAYING FOR THE MOVE. SHE STILL GOES BACK TO BALLARD TO DO HER ERRANDS, WHERE SHE PASSES HER OLD BUILDING.

SUZIE: "My unit is going to undergo complete reconstruction. I've only seen it from the outside and... I miss it very much."

SOLID GROUND TENANT COUNSELOR JOHN GRANT SAYS MOVING IS EXPENSIVE, AND SEATTLE NEEDS TO DO MORE FOR LOW–INCOME AND DISABLED PEOPLE DISPLACED BY CONDO CONVERSIONS. CURRENTLY TENANTS GET 90 DAYS' NOTICE AND $500 IN RELOCATION ASSISTANCE FROM THE LANDLORD. BUT HE SAYS IF THE CITY DISPLACES A LOW–INCOME PERSON BY CONDEMNING A BUILDING, THEY CAN RECEIVE UP TO $2500 TO HELP THEM MOVE.

GRANT: So I ask, what's the difference, if the city's saying you have to move out or a developer's saying you have to move out, and the disparity is between $500 and $2500?

STATE REPRESENTATIVE MARILYN CHASE OF SHORELINE SPONSORED A BILL IN THE LEGISLATURE THIS YEAR. IT WOULD GIVE TENANTS MORE NOTICE OF THE CONVERSION, BOOST THE AMOUNT OF MOVING ASSISTANCE FOR POOR TENANTS, AND PROHIBIT CONSTRUCTION FROM STARTING UNTIL EVERYONE IS OUT OF THE BUILDING. CHASE WANTED THE BILL TO GO EVEN FURTHER, TO ALLOW CITIES TO CAP CONVERSIONS OF LOW–INCOME APARTMENTS. BUT SHE SAYS THAT ATTEMPT WAS MISUNDERSTOOD.

CHASE: "This is absolutely not a moratorium. It does empower local governments like the city of Seattle as an example to put limitations on the ability of developers to convert low–income buildings."

WHILE THE BILL FAILED TO GET ANYWHERE, CHASE SAYS THERE'S SOME INDICATION THAT IT COULD BE REVIVED.

BRYON ZIEGLER IS A DEVELOPER REP WITH WILLIAMS MARKETING, WHICH WORKS WITH DEVELOPERS TO BUILD AND SELL CONDOS. HE SAYS DEVELOPERS COULD ACCEPT GIVING TENANTS LONGER NOTICE AND MORE MOVING ASSISTANCE. BUT HE SAYS BANNING CONSTRUCTION UNTIL THE LAST TENANT LEAVES — EVEN IN A BUILDING WITH DOZENS OF UNITS — WOULD BE TOO COSTLY.

ZIEGLER: "It would just stop the project. That would be kind of a deal killer."

ZIEGLER SAYS DEVELOPERS CARE ABOUT AFFORDABLE HOUSING, AND HE KNOWS THAT CONDOS STARTING AT $250,000 ARE OUT OF REACH FOR MANY PEOPLE. HE SAYS DEVELOPERS WOULD LOVE TO ADDRESS THE PROBLEM, BUT IN A FREE MARKET WAY.

ZIEGLER: "Nature abhors a vacuum and it's the same in the development world. Developers are very aware that there's an underserved population and it's a growing underserved population of people who can’t afford housing in Seattle."

ZIEGLER SAYS RELATIVELY FEW LOW-INCOME APARTMENTS ARE CONVERTED INTO CONDOS. IF THE CAP APPLIED ONLY TO THOSE BUILDINGS, HE SAYS DEVELOPERS MIGHT NOT OPPOSE THAT. BUT ZIEGLER SAYS REGULATING CONVERSIONS IS A BAND–AID APPROACH. INSTEAD, HE SAYS CITIES NEED TO LIFT THE ZONING REGULATIONS AND SURCHARGES THAT GIVE INCENTIVES TO BUILD ONLY BIGGER, MORE EXPENSIVE HOMES.

AMY RADIL, KUOW NEWS.

℗ Copyright 2007, KUOW News