1708 Martin Luther King Jr. Way

Transcription

1 November 19, 2008 Planning and Development Department Land Use Planning Division 1708 Martin Luther King Jr. Way Tentative Map #7915 to create five (5) residential condominium units and two (2) commercial condominium units in an existing 3-story mixed-use building. I. Application Basics A. Chronology of subdivision application: 04/10/05: Request for Selection submitted 06/03/05: Project selected for condominium conversion process 01/06/06: Request for Local Law Compliance submitted 11/27/07: Notice of Local Law Compliance obtained 12/21/07: Map Application submitted 11/03/08: Map Application considered complete 11/19/08: Planning Commission hearing 12/23/08: Subdivision Map Act deadline B. CEQA Determination: Categorically exempt pursuant to Section of the California Environmental Quality Act Guidelines: Minor Land Divisions. C. Parties Involved: Applicant John E. Gutierrez 2550 Ninth Street, Suite 202 Berkeley CA Property Owner Guillame Canivet, John Bindloss, Gary Carson, and Lorraine Trombino 1708 Martin Luther King Jr. Way, Berkeley CA Milvia Street, Berkeley, CA Tel: TDD: Fax:

2 1708 MARTIN LUTHER KING JR. WAY Item 11 Page 2 of 7 November 19, 2008 Figure 1: Tentative Map #7915

3 1708 MARTIN LUTHER KING JR. WAY November 19, 2008 Page 3 of 7 II. Project Description The applicant proposes to convert five (5) dwelling units and two (2) commercial tenant spaces within an existing 3-story building into a seven-unit, mixed-use condominium project. There are no off-street parking spaces. Project statistics (see Attachment 3) prepared for the project are attached to this report. III. Analysis A. Tentative Map Ordinance (Berkeley Municipal Code Chapter 21.16) Consistency: The Planning Commission may approve, conditionally approve, or deny the tentative map in accordance with Berkeley Municipal Code (BMC) Section According to this section of the Code, the Planning Commission shall deny approval of the tentative map if it can make any of the following findings from BMC Section A through G. For each of the findings, staff provides analysis on whether the finding could be made. A: That the proposed map is not consistent with the applicable general and specific plans. B: That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans. Staff Analysis: General Plan Housing Element Policies H-1, H-2 and H-4 are applicable to this project. Section III.C of this report contains an analysis of the proposed maps consistency with the General Plan. C. The site is not physically suitable for the proposed density of development. Staff Analysis: The subject property was reviewed and inspected for compliance with the Zoning Ordinance and local laws that govern the structural or fire safety of the buildings; it was also inspected for the safety of their major systems such as plumbing, electrical and mechanical systems. The property received Notice of Local Law Compliance on November 27, The site currently contains five (5) residential units and two (2) commercial tenant spaces. The proposed subdivision will not alter the density or development approved for the site. D. That the design of the subdivision or the type of the improvements is likely to cause environmental damage or substantially and avoidably injure fish or wildlife or their habitat. E. That the design of the subdivision or the type improvements is likely to cause serious public health problems.

4 1708 MARTIN LUTHER KING JR. WAY Item 11 Page 4 of 7 November 19, 2008 Staff Analysis: The project proposes the conversion of a seven-unit, mixed-use property held under one title into seven (7) individually titled condominiums. This subdivision involves changing the title to reflect the individual ownership of the 7 units, and does not propose any developments or improvements that would cause environmental damage or public health problems. F. That conflicts with existing public access easements, in accordance with Section 6674(g) of the Subdivision Map Act, which states: That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision. Staff Analysis: The City of Berkeley Public Works department has verified that the proposed subdivision will not conflict with any easements of record, or with any easements established by judgment of court. G. That the design of the subdivision does not provide, to the extent feasible, for future passive or natural heating or cooling opportunities in the subdivision. Staff Analysis: The project will not alter passive or natural heating or cooling opportunities since it is limited to the subdivision of existing mixed-use residence. B. Condominium Conversion Ordinance (Berkeley Municipal Code Chapter 21.28) Consistency: The Land Use Planning Division issued a Notice of Local Law Compliance for the project on 11/27/2007 in accordance with BMC Section The notice indicates that the site was inspected and found to include seven (7) units in compliance with the City of Berkeley Zoning, visible violations of local laws that govern the structural and fire safety of buildings, and the safety of their major systems such as plumbing, electrical and mechanical systems. In order to comply with the applicable local laws, the applicant obtained electrical, building and plumbing permits to correct exposed knob and tube wiring in the basement, repair dry rot, permit window replacements, remove an illegal porch enclosure, permit previous kitchen upgrades and install code compliant handrails. The applicant also installed smoke detectors and removed bars that covered several bedroom windows. The Rent Stabilization Board has reviewed the tenant history of the subject property to verify that the applicant has not violated any tenant rights. The Rent Stabilization

5 1708 MARTIN LUTHER KING JR. WAY November 19, 2008 Page 5 of 7 Board has confirmed that within the immediately preceding 10 years no owner has filed a statement of intent to go out of the rental business or initiated proceedings to recover any unit at the property. Furthermore, the Rent Stabilization Board has confirmed that within the immediately preceding 5 years no owner has created a vacancy by termination of tenancy using any method listed in BMC Section B.3. The Condominium Ordinance requires payment of an affordable housing fee at the time of sale of each unit (BMC Section ). BMC Section establishes an Affordable Housing Fee to be levied on existing residential units that are converted to condominiums. However, a number of exemptions from the affordable housing fee are listed in BMC Section The exemption provided for in BMC Section C is relevant in this case: The affordable housing fee shall be reduced as set forth in this subdivision if the owner converting the property has agreed as part of the application to limit future rent increases for the life of the building for any occupants at the time of conversion to no more than 65% of the increase in the Consumer Price Index for all Bay Area Consumers after conversion. The owners of the property has agreed to limit future rent increases for all tenants, therefore qualifying for a maximum affordable housing fee of 12.5% of the sales price for each unit. Furthermore, the owners qualify for further reductions for three of the units due to their status as owner occupants. There are currently three (3) tenants occupying two (2) of the five (5) units. Based on a preliminary fee estimation conducted by the Housing Department using the applicant s estimated sale prices, the total fee revenues would be approximately $90,725. The applicant is not held to these sale prices. The City will issue escrow instruction to the applicant s title company that will accompany the final subdivision map, along with three documents that implement the City s mitigation fee: a promissory note, a deed of trust, and a conversion agreement. When the applicant sells a unit, the applicant will contact the City of Berkeley to arrange final calculation of the affordable housing mitigation fee based on the final sale price for that unit. The fee will be paid to the City of Berkeley Housing Department as part of any and all disbursements from escrow. C. General Plan Consistency: General Plan Policy Analysis: The 2002 General Plan contains several policies applicable to the project, including the following: 1. Policy H-1 Low and Moderate Income Housing: Increase the number of housing units affordable to low- and moderate-income Berkeley residents. Staff Analysis: Condominium conversion units provide more affordable ownership opportunities for Berkeley residents. During the first half of 2008 the median sale price of condominiums in Berkeley was $455,000, while the median price of a

6 1708 MARTIN LUTHER KING JR. WAY Item 11 Page 6 of 7 November 19, 2008 single family home was $769,500. The median condominium sale price was approximately 40% less than the median price of single-family homes. (Source: City of Berkeley Program Year 2007 Consolidated Annual Performance and Evaluation Report for Housing and Community Development. 2. Policy H-2 Funding Sources: Aggressively develop additional sources of funds for low-income housing, assistance to low-income residents, and implementation of the Berkeley Homelessness Continuum of Care Plan. Staff Analysis: The required affordable housing mitigation fee goes into the Housing Trust Fund, which supports construction of permanently affordable housing for low-income residents. 3. Policy H-4 Rent Control: Take actions to protect tenants from large rent increases, arbitrary evictions, hardship from relocation, and the loss of their homes. Staff Analysis: The conditions of approval require that the applicant offer all existing tenants a lease that shall remain in effect so long as these existing tenants remain in their dwelling unit and it remains their principal place of residence. In addition, the owner of the unit shall not be entitled to recover possession from the tenant for the use and occupancy of the owner or the owner s relatives, as required by Berkeley Municipal Code Section B.3. The applicant has provided each tenant with a Notice of Tenant s Rights, informing them of these laws. D. Inclusionary Housing (BMC Chapter 23C.12) Consistency: The project is not subject to the Inclusionary Housing requirements of BMC Chapter 23C.12 because it does not involve new construction (BMC Section 23C ). The building at 1708 Martin Luther King Jr. Way was built in 1900, and the last dwelling unit was added as part of an addition to the building in The building does not contain affordable units regulated by the City of Berkeley Housing Department. E. Subdivision Map Act Consistency: The Public Works Department has reviewed the Tentative Tract Map and has verified that it contains the content required by the Subdivision Map Act including the subdivision number, the legal address of the legal owner or subdivider, sufficient legal description to define the boundary of the proposed subdivision, the location, pavement and right of way width, grade and name of existing streets or highways, the widths, location, and identity of all existing easements. The Public Works Department has determined that the Tentative Tract Map is suitable for review by the Planning Commission.

7 1708 MARTIN LUTHER KING JR. WAY November 19, 2008 Page 7 of 7 IV. Public Notice A public hearing notice: appeared in the Berkeley Voice on Friday, November 7, 2008; was posted at the subject property on Friday, November 7, 2008; was mailed to the applicant and owner of the subject property on Wednesday, November 5, 2008; and was mailed to owners and occupants of real property within 300 feet of the property on Wednesday, November 5, At the time of the writing of this report, there have been no responses. V. Recommendation Because of the project s consistency with Berkeley s Tentative Map Ordinance, its Condominium Conversion Ordinance and General Plan, and because it presents minimal impact on surrounding properties, Staff recommends that the Planning Commission: APPROVE Tentative Map #7915 pursuant to BMC Section and subject to the attached Findings and Conditions (see Attachment 1). Attachments: 1. Findings and Conditions 2. Condominium Plans for Tentative Map # Project Statistics 4. Notice of Public Hearing Staff Planner: Lief Bursell, lbursell@ci.berkeley.ca.us, (510)