San Diego Refuses Cap on Condo Conversions
[SAN DIEGO, CA]
By: David Mandich
On Sept. 25 the San Diego City Council voted against a 1,000 unit per year cap on condo conversions. Condo conversions have been running rampant in recent years spawning lawsuits by tenants rights and environmental groups who see an increasing erosion in affordable housing as older buildings become converted to condominium ownership.
The council was considering a 1,000-a-year limit on apartments that could be transformed into for-sale condominiums.
The issue is multi-faceted with local investigative reporters claiming that conversions are often shoddy with bad plumbing, ancient electrical wiring, cracked foundations and slab floors being patched, covered or glossed over. They claim military families are often the developers target market.
Older rentals that were renting for $400-500 per month are often spruced up and sold for as much as $200,000. Even with mortgage interest rates at all time lows - a renter would have to pay over double his former monthly rent in mortgage payments to purchase his unit.
The whole issue may become moot as the real estate market continues to soften and the developers run out of inventory of older buildings to convert. In 2005 over 10,000 units were converted while only have 400 have so far in 2007 according to the citys Development Services Department.
Condo conversions have been a problem for renters in many California cities over the decades starting in Santa Monica several decades ago when uncontrolled development turned the sleepy upscale residential community from primarily single family homes to apartment buildings. The renters voted in a block and took over city hall and passed a series of laws favoring the renter community. In recent years condo conversions have reversed the trend as apartment units became condos and many renters became home owners. Some say - let the market take its course.
San Diego Condos
By: David Mandich
On Sept. 25 the San Diego City Council voted against a 1,000 unit per year cap on condo conversions. Condo conversions have been running rampant in recent years spawning lawsuits by tenants rights and environmental groups who see an increasing erosion in affordable housing as older buildings become converted to condominium ownership.
The council was considering a 1,000-a-year limit on apartments that could be transformed into for-sale condominiums.
The issue is multi-faceted with local investigative reporters claiming that conversions are often shoddy with bad plumbing, ancient electrical wiring, cracked foundations and slab floors being patched, covered or glossed over. They claim military families are often the developers target market.
Older rentals that were renting for $400-500 per month are often spruced up and sold for as much as $200,000. Even with mortgage interest rates at all time lows - a renter would have to pay over double his former monthly rent in mortgage payments to purchase his unit.
The whole issue may become moot as the real estate market continues to soften and the developers run out of inventory of older buildings to convert. In 2005 over 10,000 units were converted while only have 400 have so far in 2007 according to the citys Development Services Department.
Condo conversions have been a problem for renters in many California cities over the decades starting in Santa Monica several decades ago when uncontrolled development turned the sleepy upscale residential community from primarily single family homes to apartment buildings. The renters voted in a block and took over city hall and passed a series of laws favoring the renter community. In recent years condo conversions have reversed the trend as apartment units became condos and many renters became home owners. Some say - let the market take its course.
San Diego Condos
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