Settlement would limit number of condo conversions

Accord requires survey of tenants
By Lori Weisberg
UNION-TRIBUNE STAFF WRITER

March 29, 2007

SAN DIEGO – Condo conversions in San Diego would be limited to no more than 1,000 units a year under a tentative settlement approved by the City Council on Tuesday.

The settlement, considered in closed session, is intended to end litigation against the city over how it reviews proposals to transform rental units into for-sale condos.

A coalition of environmental and affordable-housing advocates represented by attorney Cory Briggs argued that the city had failed to formally review each conversion project to assess what potential effects projects might have on the environment.

Before the lawsuit can be dismissed, the City Council must put into law a yearly limit on condo conversions. In addition, an ordinance must be adopted that would not allow approval of conversions until after landlords have surveyed their tenants to learn what effects the conversions might have on renters. The city would then issue an annual report on the survey results.

Under the agreement, the city will reimburse those bringing the suit $75,000 in legal fees and related costs.

“Full implementation of the settlement will end the need for litigation over future condo-conversion waves by preventing future waves from ever rising in the first place,” said Briggs, who represents the Affordable Housing Coalition of San Diego County and Citizens for Responsible Equitable Environmental Development.

Unaffected by the settlement are three other lawsuits filed by Briggs against condo converters dealing with the same issue of environmental analysis.

The lawsuit naming the city was one of two suits tossed out by a Superior Court judge last year, although Briggs appealed the ruling.

While San Diego and other cities in the county have been a magnet in recent years for developers seeking to convert rentals into for-sale housing, the overall real estate market slowdown has dampened interest in condo conversions.

“In the heyday, we were getting 20 or 30 applications a month, and since July or August, it's in single digits,” said Mike Westlake of the city's Development Services Department. “So there's definitely been a slowdown. Instead of four or five or six a week, we maybe get one a week, and that number will probably go down even more.”

Last year, applications for condo conversions accounted for about 1,800 units. So far this year, there have been six projects proposed, although two of those call for the conversion of more than 1,200 units in Mission Valley, according to city records.

Jim Waring, who oversees land-use issues for Mayor Jerry Sanders, said he expects that the ordinances required under the settlement will come back to the council within 60 days.

“This has been a great distraction and not a very productive use of our time,” Waring said. “We're settling the case so we can eliminate the distraction and focus on other things we think are more important.”