Condo Conversion Boom Slows With Housing Market

By Kurt Helin
Editor

From 2004 to 2006, just about every Planning Commission meeting seemed to involve the approval of converting an apartment building or two into condominiums.

It’s not something seen in many other parts of Southern California, in part because Long Beach has such a high percentage of rental units (56% of residents rent) and because the city’s ordinances are more lenient in allowing the conversion.

But in the wake of all the changes, there are questions. At the top of that list are questions about the renters forced to move — were they given enough notice and help in finding new homes?

Last week, the Planning Commission got an update on the trend, the market forces behind it, and the impacts.

“I think it’s clear we have a problem,” said Commissioner Matthew Jenkins. “But it’s not just one thing, but a comprehensive problem.”

One thing the Planning Commission learned — for now, the trend has stalled.

In 2006, 1,073 apartments were approved to be converted into condominiums in 78 different buildings, and since 2004 more than 2,000 condo conversions have been approved. This year, owners have sought conversions of just 350 units in 18 buildings, although half of the unit total comes from one building (110 W. Sixth St., near Pine Avenue).

The conversions have slowed as part of an overall slowdown in the real estate market in both the region and city, the Planning Commission was told. What’s more, many of the already-approved conversions have yet to be put on the market because of the slow market.

The reasons for the rash of conversions in the first place — and why city staff almost always recommended approval — also was a topic of discussion.

According to a 2005 census track, 56% of Long Beach’s 173,000 housing units are rentals. City Council policy long had been to try to increase home ownership in the city, so for the most part, conversion of apartments to condominiums was encouraged, staff said.

Those conversions did have to meet certain standards, city staff said.

The usual sticking point has been parking. City code requires one space for one-bedroom units and 1.25 spaces for every two-bedroom unit, and those standards were held almost across the board with few variances, staff said. That basically eliminated every apartment building in the city built before 1964 from being converted, officials said.

However, the biggest and most emotional topic of the day was the treatment of those in the apartments who were forced to move.

Several speakers from Long Beach Housing talked of cases where tenants forced to move to make way for condos either got little notice or were given no guidance regarding the benefits available to them to help them move.

While the city has a relocation process in place — one that allows up to $4,000 to help tenants move — that information has rarely gotten to the tenants. City staff said the details on how to move are posted on the city’s Web site.

“I’m sure all these tenants look at your site,” Commissioner Charles Greenberg said sarcastically.

Often what happens is that the building owner gives 30-day notice and less money in an effort to push tenants out before Long Beach officials get involved, said Elina Green of the Legal Aid Foundation.

“I think if the city had a heavier hand in this relocation process we wouldn’t see some of the problems that go on,” she said.

The commission agreed to take another look at the city’s housing relocation process at an upcoming meeting.

However, any changes of substance would need City Council approval.