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HomeMy WebLinkAbout05-21-1996 PC Agenda • • PLANNING COMMISSION Regular Meeting-Dublin Civic Center Tuesday-7:30 p.m. 100 Civic Plaza, Council Chambers May 21, 1996 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE TO THE FLAG 4. ADDITIONS OR REVISIONS TO THE AGENDA 5. MINUTES OF PREVIOUS MEETINGS -May 7, 1996 6. ORAL COMMUNICATION-At this time,members of the audience are permitted to address the Planning Commission on any item(s)of interest to the public;however,no ACTION or DISCUSSION shall take place on any item which is NOT on the Planning Commission Agenda. The Commission may respond briefly to statements made or questions posed, or may request Staff to report back at a future meeting concerning the matter. Furthermore,a member of the Planning Commission may direct Staff to place a matter of business on a future agenda. Any person may arrange with the Community Development Director (no later than 11:00 a.m.,on the Tuesday preceding a regular meeting)to have an item of concern placed on the agenda for the next regular meeting. 7. WRITTEN COMMUNICATIONS 8. PUBLIC HEARINGS 8.1 PA# 96-019 City of Dublin General Plan Amendment and Zoning Ordinance Amendment (Rental Availability Ordinance Repeal). The City's Rental Availability Ordinance was adopted in 1991 to require that a minimum of 10%of the units in large multi-family projects be maintained as rental units for a period of five years. The City Council has determined that the City's objective regarding rental housing availability is being met by the housing market, and that the Rental Availability Ordinance is no longer necessary. The Ordinance is proposed to be repealed. The Housing Element of the Dublin General Plan will need to be amended to remove the reference to this Ordinance. 9. NEW OR UNFINISHED BUSINESS 10. OTHER BUSINESS (Commission/Staff Informational Only Reports) 10.1 Code Enforcement Report-A report given by Staff updating the Planning Commission on various code enforcement concerns and issues throughout the City. 11. ADJOURNMENT (OVER FOR PROCEDURE SUMMARY) CITY OF DUBLIN PLANNING COMMISSION AGENDA STATEMENT/STAFF REPORT REGULAR MEETING DATE: MAY 21, 1996 SUBJECT: PA 96-019 City of Dublin Rental Availability Ordinance - General Plan Amendment and Zoning Ordinance Repeal (Report Prepared by: Tasha Huston, Associate Planner) 9 EXHIBITS: 1. Resolution No. 96-_recommending City Council adoption of the Negative Declaration, approval of the General Plan Housing Element amendment, and repeal of the Rental Availability Ordinance. BACKGROUND A. Chapter 6.3, Strategy III.E. of the Dublin Housing Element ATTACHMENTS: B. Chapter 8.04 of the Municipal Code, Rental Availability Ordinance C. Letter from Kaufman and Broad dated February 12, 1996 D. April 4 and April 9, 1996 memorandums from Dennis Carrington containing results of rental surveys. RECOMMENDATION: 1. Open Public Hearing and hear staff presentation 2. Receive public testimony 3. Question Staff 4. Close public hearing and deliberate. 5. Adopt the Draft Resolution recommending approval of the Negative Declaration, and repeal of the Rental Availability Ordinance to City Council, or give Staff direction and continue the matter. APPLICABLE REGULATIONS Chapter 6.3, Housing Program Section, Strategy III.E., of the Housing Element of the Dublin General Plan, dictates that the City shall require a percentage of units in large multi-family projects be rented for a specified period of time. The related policy objective is to "Insure availability of rental units in Dublin". A copy of this section of the Housing Element is included as Attachment A. Chapter 8.04 of the Dublin Municipal Code, known as the Rental Availability Ordinance, implements the above-cited General Plan Policy and Housing Program. A copy of this Ordinance is included as Attachment B. COPIES TO: Community Development Director Project Planner Project File II Planning Secretary �_ os.,1. _,. ITEM NO. A ENVIRONMENTAL REVIEW: The project has been reviewed in accordance with the California Environmental Quality Act (CEQA) and the State CEQA Guidelines. An Initial Study was completed on April 30, 1996, and a Negative Declaration has been prepared since the project will not have a significant impact on the environment. DESCRIPTION: The purpose of the Rental Availability Ordinance is to provide rental housing in the City of Dublin by requiring that 10% of the total number of units in all new multifamily projects of more than ten units be maintained as rental units for a period of five years. The developer's obligation to comply with this requirement may be satisfied by paying fees in-lieu of providing rental units. Matt Koart, Vice President of Land Acquisitions for Kaufman and Broad has submitted a request (Attachment C) to amend the Housing Element of the General Plan to delete the Rental Availability Ordinance. At the February 6, 1996 joint Planning Commission/City Council study session on affordable housing, the City Council requested staff to report on the status of rental housing availability in the City and whether the City's Rental Availability Ordinance is still needed to regulate this condition. Senior Planner Dennis Carrington provided information on this topic at the March 12, 1996 City Council meeting, including surveys of Dublin condominium developments which indicate a 20-30% rental occupancy rate for these developments (see Attachment D). After considering the information presented, the City Council determined that the City's objective regarding rental housing availability is being met by the housing market, and that the Rental Availability Ordinance is no longer necessary. The Council directed staff to begin proceedings to repeal the Ordinance. If the Rental Availability Ordinance is repealed, the Housing Element of the Dublin General Plan must also be amended, to maintain consistency with the Ordinance repeal. This is because the Housing Element includes a description of City housing programs and related policies, which refers to the Rental Availability Ordinance. Housing Program Strategy III.E. requires 10% of the units in new multi-family projects to be rented for a period of five years. This Strategy would need to be eliminated. A copy of the Housing Element section which would be removed is shown in Attachment A. RECOMMENDATION Staff recommends that the Planning Commission consider the information presented, and, after public testimony, adopt the Resolution# 96- recommending City Council adoption of the Negative Declaration, approval of the General Plan Housing Element amendment, and repeal of the Rental Availability Ordinance. g:\pa#\1996\pa96019\srpc5 96. 2 RESOLUTION NO.96- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF DUBLIN RECOMMENDING CITY COUNCIL ADOPTION OF A NEGATIVE DECLARATION,APPROVAL OF A GENERAL PLAN TEXT AMENDMENT AND REPEAL OF THE RENTAL AVAILABILITY ORDINANCE WHEREAS,the City of Dublin Housing Element Section III.E.,dictates that the City shall require a percentage of units in large multi-family projects be rented for a specified period of time;and WHEREAS,the related City of Dublin Housing Element Policy objective is to"Insure availability of rental units in Dublin";and WHEREAS,Chapter 8.04 of the Dublin Municipal Code,known as the Rental Availability Ordinance, implements the above-cited General Plan Policy and Housing Strategy;and WHEREAS,the City Council has considered survey information which indicates that the housing market is achieving the intent of the above policy and Ordinance;and WHEREAS,the repeal of the Rental Availability Ordinance and amendment of the Housing Element has been reviewed in accordance with the provisions of the California Environmental Quality Act;and WHEREAS,the proposed Ordinance repeal and Housing Element amendment would not result in any significant environmental impacts,and therefore a Negative Declaration was prepared for this project;and WHEREAS,notice of preparation of the Negative Declaration was published in the local newspaper and posted in public buildings to provide for a 21 day public review period in accordance with the City of Dublin Environmental Guidelines and the California Environmental Quality Act(CEQA);and WHEREAS,the Planning Commission held a public hearing on the repeal of said Ordinance and Housing Element amendment on May 21, 1996,for which proper notice was given in accordance with California State Law; and WHEREAS,the Planning Commission,at its May 21, 1996 meeting considered all written and oral testimony submitted at the public hearing. NOW,THEREFORE,BE IT RESOLVED THAT THE Dublin Planning Commission does hereby recommend that the City Council adopt a Negative Declaration,amend the General Plan to delete Housing Element Section III.E., and repeal the Rental Availability Ordinance. PASSED, APPROVED AND ADOPTED THIS 21st day of May, 1996. AYES: NOES: ABSENT: Planning Commission Chairperson ATTEST: Community Development Director EXHIBIT 1 DUBLIN HOUSING ELEMENT CHAPTER 6.3 GOALS, QUANTIFIED OBJECTIVES, POLICIES AND HOUSING PROGRAM STRATEGY (III).(E). DESCRIPTION 6.3.(III).(E). Require a percentage of units in large multi-family projects(i.e.,projects with more than 10 units)be rented for a specified period of time. The difficulties of first-time home buying make rental units the only affordable housing for many moderate income households that do not have the assets to make a down-payment on a home. Other households may chose to rent for other reasons. Policy Objective: Insure availability of rental units of Dublin. Action Needed: Require that a minimum of 10%of the units in large multi-family projects be maintained as rental units for a period of five years. Financing: No cost to City Implementation Responsibility: Planning Department,Planning Commission and City Council Time Frame: Ongoing implementation ATTACHMENT A • 8.04.010 Chapter 8.04 housing is an important source of affordable housing since downpayment requirements RENTAL AVAILABILITY and the high cost of new housing limit new ownership housing as an affordable housing Sections: source. Also, some households choose to 8.04.010 Title. rent for reasons other than affordability.The 8.04.020 Findings. City Council fords that it is a public pur- 8.04.030 Purpose. pose of the city and a public policy of the 8.04.040 Definitions. state of California as mandated by the re- 8.04.050 General rental unit quirements for a housing element of the requirements for new city's general plan, to make available an multifamily residential adequate supply of rental housing for per- developments of more sons of all economic segments of the corn- than ten(10)units. munity.(Ord. 14-91 § 1(part)) 8.04.060 Relation of rental availability ordinance to 8.04.030 Purpose. inclusionary housing The purpose of this chapter is to enhance ordinance. the public welfare and assure that housing 8.04.070 In-lieu rental fees. development contributes to the attainment 8.04.080 Conflict of interest. of the above-described goals by providing 8.04.090 Violation—Penalty. . rental housing in the city of Dublin directly 8.04.100 Enforcement. or through land acquisition,land or rental 8.04.110 Appeals. writedowns,construction of rental housing, rental assistance, direct contributions to a 8.04.010 Title. non-profit association or corporation for The ordinance codified in this chapter construction of rental housing,landbanldng shall be called the "Rental Availability (including property exchanges) and any Ordinance of the City of Dublin." (Ord. other mechanism available to the city to 14-91 § I (part)) provide rental housing.A limited and finite amount of land remains for development of 8.04.020 Findings. housing in the city and extended planning A goal of the city's adopted housing area.In order to assure that the remaining element is to achieve a balanced community developable land is utilized in a manner with housing available for households over consistent with the city's housing policies a range of income levels.The city of Dub- and needs,the city declares that ten percent lin finds the city is experiencing a shortage (10%)of the total number of units in all of rental housing.The city's Housing Ele- new multifamily_projects of more than ten ment identifies a five-percent(5%)vacancy (10)units shall be maintained as rental units rate as necessary to permit rental mobility for a period of five(5)years.The regula- whereas the city's 3.9 percent rental vacan- lions sef"fortlirn this chapter shall apply cy rate falls far below that goal. (Housing citywide,including the extended planning Element, pp. 16-17.) In addition, rental areas.(Ord.14-91 § 1(part)) 444a (Dublin$.92) 5 ATTACHMENT B 8.04.040 8.04.040 Definitions. "In-lieu rental fee"means a fee paid to For the purposes of this chapter,certain the city by an applicant for residential de- words and phrases shall be interpreted as set velopment in the city,in lieu of providing forth in this section unless it is apparent the rental units required by this chapter. from the context that a different meaning is "Multifamily residential development" intended. means a project which includes any multi- "Applicant" means any person, firm, family dwellings. partnership,association,joint venture,cor- "Project"means a housing development potation, or any entity or combination of at one(1)location including all dwelling entities which seeks city permits and ap- units for which permits have been applied provals for a project for or approved within a twelve(12)month "Approval"means adoption of a resolu- period. tion by the Planning Commission and/or "Project owner"means any person,firm, City Council approving a discretionary partnership,association,joint venture,cor- permit, such as a tentative map, planned potation, or any entity or combination of development or use permit,for a project. entities which holds fee tide to the land on "City" means the city of Dublin or its which the project is located. designee or any entity with which the city "Rental unit" means a rental dwelling contacts to administer this chapter. unit as required by this chapter. "Dublin employee" means any single "Re-rental controls"means legal restric- person,head of household or,in the case of [ions by which the availability of rental married couples, either spouse, who has units will be monitored and controlled to worked within the city limits of Dublin insure that the unit remains available for continually for one (1) year immediately rent prior to the date of application for a rental "Unit type" means dwelling units with unit similar floor area and number of bedrooms. "Dublin resident"means any person who (Ord.14-91 § 1 (part)) has lived within the city limits of Dublin continually for one (1) year immediately 8.04.050 General rental unit prior to the date of application for a rental requirements for new unit. "Continually" shall be construed to multifamily residential include lapses of residency of no longer developments of more than six(6)months. than ten(10)units. "Dwelling unit" means a dwelling de- A. 1. Any new multifamily residential signed for occupancy by one(1)household. development involving more than ten(10) "Household"means one(1)person living dwelling units, which is approved on or alone,or two(2)or more persons sharing after the effective date of the ordinance residency whose income resources are avail- codified in this chapter,shall be conditioned able to meet the family's needs and who are to include an agreement to provide ten related by blood,marriage or operation of percent(10%)of the total number of dwell- law. ing units within the development as rental units for a period of five(5)years from the (Dublin 8-92) 444b Ul OF I • 8.04.050 date of final occupancy of each unit.The C. Dublin residents will be given first obligation to provide rental units may be preference for rental units;Dublin employ- satisfied by the applicant's payment of in- ees will have second preference for rental lieu rental fees, as provided i ection units;third preference will be given to those 8.12.07 o us c apter subject to approval who need to move to Dublin to be near by the approving body. Dublin residents or services; and fourth 2. In applying the ten percent (10%) preference will be given to those who live requirement,any resulting fraction of units outside of Dublin. less than 0.50 may be disregarded and any D. All rental units in a project and phas- fraction greater than or equal to 0.50 shall es of a project shall be constructed concur- be construed as requiring one (1) rental rentiy with or prior to the construction of unit. The rental requirement shall be im- nonrental units. posed only once on a given development, E. All rental units: regardless of changes in the character or I. Shall be reasonably dispersed ownership of the development throughout the entire development; B. 1.Any development permit for new 2. Shall include all unit types represent- multifamily residential development projects ed in the project(unless the number of unit of more than ten(10)units,if granted,shall types exceeds the number of rental units) be subject to conditions ensuring compli- and said unit types shall be provided in the ance with the provisions of this chapter. same proportion as in the project as a Such conditions shall specify the timing of whole;and construction of rental units and/or payment 3. Shall be compatible with the design of in-lieu rental fees. and use of the nonrental units in terms of 2. Evidence of compliance with the exterior appearance, materials and finish rental housing conditions shall be in the quality. form of a written agreement between the F. The City Council shall establish the applicant and the City Manager completed in-lieu rental fee by resolution,which shall prior to fin radon of the first dwelling be adopted at least every two(2)years. unit in the project. The agreement shall G. The City Manager shall monitor the indicate the number and construction sched- continuing availability of rental units and uling of all rental units and any other infor- shall take such actions as necessary to noti- mation required by the City Manager to fy the public of their availability.(Ord.14- determine the applicant's compliance with 91 § 1 (part)) the conditions. The agreement shall be recorded as a deed restriction prior to final_ 8.04.060 Relation of rental inspection of— a irt}i stag unit in the availability ordinance to project and shall run with the land en - inclusionary housing passed by the project for each phase until ordinance. the rental units have been occupied for a The rental availability provisions of this period of five (5) years from the date of chapter are separate from the provisions of final occupancy of the Tast unit in each the Inclusionary Housing Ordinance of the phase. city of Dublin. However, rental units re- 411c (Dublin&92) 7 8.04.060 quired under the rental availability ordi- rental..writedowns, construction of rental nance codified in this chapter may also be !housing, rental assistance,direct contribu- counted to determine compliance with tions to a nonprofit association or corpora- inclusionary housing requirements so long ,lion for construction of rental housing, as the rental units meet all applicable re- landbanking(including property exchanges), quirements of the inclusionary housing ':and any other mechanism available to the ordinance, including the time period and city to provide rental housing. rent levels required.(Ord.14-91§I(part)) F. The moneys in the Fund shall be used or committed to use for the purposes 8.04.070 In-lieu rental fees. set forth in subsection E of this section A. Subject to approval by the approving within seven j7)years of the date of pay- authority,an applicant may contribute a fee ment into the Fund.Any moneys remaining in lieu of providing a rentalynit Such fee unexpended or uncommitted at the end of shall be known as the"in-lieu rental fee." the seven(7)year period shall be refunded B. The amount of the in-lieu rental fee to the then-current owner or may be con- for a project shall be determined by resolu- tributed to a nonprofit association or the lion by the City Council at least evegt_Lvo corporation for the purpose of providing (2)years The methodology for the determi- rental housing in Dublin, at the option of nation of the flat in-lieu rental fee is shown the City Council. in Attachment 1 to the ordinance codified G. No later than June 30th of each year, in this chapter. During the years that the the City Manager shall prepare a report for City Council does not determine the fee by the City Council identifying the balance of resolution,the amount of the in-lieu rental moneys in the Fund and the rental housing fee shall be increased annually by an provided, and any moneys committed to amount equal to the rental rate increase providing rental housing.The annual report used by the City Council in determining the shall also include a review of administrative current in-lieu rental fee. charges.The City Council shall receive and C. The entire in-lieu rental fee shall be consider the report.(Ord.14-91 § I (part)) paid no later than at the time of the final inspection_of the first dwelling umtin the 8.04.080 Conflict of interest. project. Following are those individuals who,by D. The in-lieu rental fee shall be depos- virtue of their position or relationship,are ited into a fund to be known as the"Rental found to be ineligible to rent a unit under Availability Housing In-Lieu Rental Fees this chapter as their residence: Fund"("Fund")and shall be used only for A. All employees and officials of the the purposes set forth herein. city of Dublin who have,by the authority E. All moneys in the Fund, together of their position,policymaking authority or with any interest earning on such moneys influence affecting city housing programs; less reasonable administrative charges,shall B. The applicant or project owner.(Ord. be used by the City Manager for the pur- 14-91 § 1 (part)) pose of providing rental housing in the city of Dublin through land acquisition,land or (Dublin S-92) 444d 8.04.090 8.04.090 Violation—Penalty. apply to all agents, successors and assigns A. It shall be unlawful for any person, of an applicant.No building permit or occu- firm,corporation,partnership or other entity pancy permit shall be issued,nor any devel- to violate any provision or to fail to comply opment approval be granted which does not with any of the requirements of this chapter. meet the requirements of this chapter. A violation of any of the provisions or B. The City Manager is designated as failing to comply with any of the require- the enforcing authority. ments of this chapter shall constitute a C. The city may institute any appropri- misdemeanor; except that, notwithstanding ate legal actions or proceedings necessary any other provisions of this code, any such to ensure compliance herewith, including violation constituting a misdemeanor under but not limited to actions to revoke, deny or this chapter may, in the discretion of the suspend any permit or development approv- enforcing authority, be charged and prose- al. (Ord. 14-91 § 1 (part)) cuted as an infraction. B. Any person convicted of an infraction 8.04.110 Appeals. under the provisions of this code, unless Any person aggrieved by any action provision is otherwise herein made,shall be involving denial, suspension or revocation punishable as provided by the Government of an occupancy or other permit, or denial, Code of the state of California. (Ord. 14-91 suspension or revocation of any develop- § 1 (part)) ment approval, may appeal such action or determination in the manner provided in 8.04.100 Enforcement. Section 1.04.050 of the Municipal Code. A. The provisions of this chapter shall (Ord. 14-91 § 1 (part)) • 444e (Dublin 8-92) Fr - ATTACHMENT 1 The methodology for determining the in-lieu rental fees shall be as follows: The amount of the in-llieurrenrental al9fees fofor oa projectu shall bbethe amount necessary calculated b multiplying tg necessary to subsidize the ref`fivefearning three 80°dofom themarket Alamedarate Countyapartment for vi years, for a fommly the followingh median income, where no more than 30% of income is spent on rent. The amount of the in-lieu rental fee will be determined using table. (The numbers in the table are illustrative, the market rent, County Median Income and rental oiincrease eorate)in the table will be :those in effect at the time of approval Family of Five. Alameda County Median Income of $46,850. Percent Market ent of Affordablethe Difference 12 Mos. Syrs The value of Rent first year's Median rent plus Income 4 years at 5% yearly adjust- ment for rent increases 80% $1,100 $937 $163 $1,956 $9,780 $10,808 The value of the first year of rent plus four years at 5% yearly adjustingthe base of $1,956 for a period of four years at a compounded annual adjustment for rent increase is calculated byThe of% in thisf examplead annually ear's rent. is rate of 5% and adding that amount to the first y based on a survey of rental oincrr eases in Dublin in July 1991. Typical rental increases will vary Market rent will be determined by the City Manager. The apartment units used for determinatiooneof(com arative San Ramon, rental co cost tnmust be d located in the Tbe-Valley and amenities to the units that wouldPoulaothe) and be comparable in size, age the market rent comparisons, f'= paid to rental projects in Dublin, then to those in otherwise be sold. In preparing consideration will be San Ramon, Livermore and PlEasanto:i. /hsngordd -7- g The in-lieu rental fee will beincreased annually duringethe yeaanrmount l i that thh e City Council does not deterine an in ieu r n • q ual to the rental rate increase used by the City Council in determining :le current in-lieu rental fee . For example : - In-lieu rental fee : S10 , 808 - Rental rate increase : 5l - Increased in-lieu rental fee : $10 , 808 x 1 . 05 = $11 , 348 • • • • /hsngordd -8- 02%12,96 15:19 125108667192 KAUFMAN & BROAD WA001 KAUFMAN BROAD February 12,1996 Ms.Jeri Ram Senior Planner City of Dublin 100 Civic Plaza Dublin,CA 94568 VIA TELECOPY($10)833-6628 AND U.S.MAIL Re: Rental Availability Ordinance(Chapter 8.04) Dear Jeri: As you may know,the City's Rental Housing Ordinance was discussed at a recent study session with the Dublin City Council and Planning Commission. I provided the Council and Commission with a study prepared by Anthony Hurt&Associates which provided evidence that attached housing tends to provide approximately 30%rentals,and that this Ordinance is unnecessary is meet the City's stated goal of providing 10%rentals in multi- family projects. Therefore,please consider this letter an application to amend the City's General Plan Housing Element and the Conditions of Approval for Tract 5926(aka CA Highlands). Please let me know if any other City applications are required,and the amount of the application fee. I would like this matter set for the Planning Commission agenda as soon as possible. Finally,attached is a letter from our attorney which provides legal authority for amending conditions even though the subdivision map has already been approved and recorded. Thank you for your assistance. Sincerely, KAUFMAN AND BROAD Of NORTHERN CALIFORNIA,INC. MartKoart RECEIVEv Vice President-Land Acquisitions cc: Rich Ambrose(w/o encl.) FEB 2 VA Dave Lanferman(w/o encl.) DUBUN PUU4NiNQ Larry Tong(w/o encl.) , .1 1? ATTACHMENT C f:\for4\worddocs\donlan\ram4 KAUFMAN AND BROAD OF NORTHERN CALIFORNIA. INC. CITY OF DUBLIN MEMORANDUM TO: City Council Members FROM: Dennis Carrington, Senior Planner DATE: April 4, 1996 RE: Rental Occupancy in Condominium Projects The City Council requested at its March 26, 1996, Public Hearing on the reduction of Rental Availability In-Lieu Rental Fee amount, that information be provided on rental occupancies in condominium projects at the April 9, public hearing. Attached is a letter to Mr. Matt Koart of Kaufman and Broad from Anthony Hurt dated January 31, 1996, which addresses this concern. Mr. Hurt concluded that rental occupancy in condominium projects generally ranges from twenty-five to thirty-five percent with the overall average at thirty percent. He expects rental occupancy to be about thirty percent in the Kaufman and Broad condominiums in Dublin. This level of rental occupancy is expected to occur within about five years after sell-out of the project. 13r I g:p96006mem1 ATTACHMENT D Anthony Hurt &ASSOCIATES 174 Valdivia Circle San Ramon,California 94583 (510)830-5070 January 31, 1996 Mr.Matt Koart Director of Forward Planning Kaufman&Broad 3130 Crow Canyon Place,Suite 300 San Ramon, CA 94583 Subject: Rental Occupancy In Condominium Projects Dear Mr.Koart, As requested,we have researched the question of what proportion of condominium units are occupied by renters. The objective is to forecast rental occupancy in the condominium project being planned for development in Dublin. Our research has included identifying condominium projects in the Dublin-Pleasanton-San Ramon area,contacting several condominium management companies and tax record research by First American Title Company. This letter summarizes our findings. Property Management Companies We contacted four property management companies who are active in central Contra Costa County and the Tri-Valley Area. They supplied information on twenty-five projects in the area from Martinez to Pleasanton. We should point out that property managers generally do not want details about their finances or occupancy made public. At our request,they agreed to supply information about the percent of units occupied by renters on the condition that their specific project not be identified. Accordingly,the data presented in the table which follows is summarized by area to avoid revealing individual project information. In all,the twenty-five projects have a total of 3,040 units. Thirty-one percent of these units are occupied by renters. included are ten projects in San Ramon,Dublin and Pleasanton. These ten projects have 1,174 total units of which 388(3396)are occupied by renters. It"' 17 on(pj avoxa s .K'T4ft'N Zst199sots$ tort 96/1-0;1-0 Rental Occupancy In Condominium Projects No.of Total Occupied By: Percent Area Projects Units Owner Renter Rented Concord/Pleas.Hill/Martinez 8 1,108 723 385 35% Walnut Creek/Danville 7 758 596 162 21% S.Ramon/Dublin/Pleasanton 10 1,174 786 3S8 33% Total 25 3,040 2,105 . 935 31% Public Information(Assessor's Records) We identified eight projects in Dublin and San Ramon. The map locations of these projects were transmitted to First American Title Company. First American researched the tax records and identified units where the address for the owner is different from the address of the unit. These units are usually occupied by renters and the tax bill is sent to the owner at a different address.' Using this data,we have estimated rental occupancy in the eight projects. As shown below,rental occupancy ranges from twenty-two to thirty-three percent with an overall average of twenty- eight percent. Dublin/San Ramon Condominiums Total Occupied By: Percent Project City Units Owner Renter Rented Silvergate Dublin 126 90 36 29% The Vintners San Ramon 165 112 53 32% Mansions San Ramon 108 77 31 29% The Gardens San Ramon 123 87 36 29% Heritage San Ramon 104 81 23 22% Fountainhead San Ramon 79 53 26 33% Cobblestone San Ramon 169 127 42 25% Twin Creeks San Ramon 96 67 29 30% Total 970 694 276 28% Conclusion Rental occupancy in condominium projects generally ranges from twenty-five to thirty-five percent with the overall average at thirty percent. Accordingly,we would expect rental occupancy to be about thirty percent in the Kaufman&Broad condominiums in Dublin. This level of rental 'There are some exceptions where the tax bill is sent to a different address even though the owner occupies the unit However,these exceptions arc probably offset by instances where the tax bill is sent to the unit even though it is occupied by a renter. It is not uncommon for renters to receive the hills and forward them to owners who live in other areas of the county}or overseas. 2 PAGL.L..Of 17 Anthony Hurt 6 ASSOCIATES -----C 0 0 GP OVOI,T 7 A'tTiiavx Z6TLAASOTgt SO:LT 96/t0.i-0 occupancy can be expected to occur within about five years after sell-out of the project. We appreciate the opportunity to work with you on this assignment and are prepared to respond to comments and questions as needed. Sin ely, c(.4.—/(7 Anthon Hurt • 3 PACE/OF 17 Anthony H S ASSOCIA t00fA aVOITEIt A'S7uAF'9 t6t199tOT2$ 60:1T 96/t0/t0 • CITY OF DUBLIN MEMORANDUM TO: Richard Ambrose, City Manager { FROM: tennis Carrington, Senior Planner DATE: April 9, 1996 RE: Vacancy Rates I have investigated three condominium developments in Dublin (Silvertree, Arbor Creek and Heritage Commons) and determined that an average of 21% of the units have their property tax bills mailed to locations other than the unit itself. This figure should correlate well to a 21% rental occupancy rate in these developments. The study prepared by Anthony Hurt and Associates dated January 31, 1996, determined by this method that the average rental occupancy rate for nine developments in Dublin and San Ramon was 28%. The Staff survey verifies that the Hurt study is accurate. The difference between 21% and 26% could easily be explained by the smaller sample of developments surveyed by Staff. A summary of rental occupancy rates for these developments surveyed by Staff follows: Development Units not occupied by Owner Total Units Percent Silvertree 12 42 28 Arbor Creek 21 84 25 Heritage Commons 9 73 12 Total 42 199 21 cc: Eddie Peabody g:pa96-006mem2 A '7