(A) In order to reduce the effect of conversions on the city’s housing supply and to minimize the displacement of tenants, the number of conversions shall be limited to no more than 5% of the city’s potentially convertible rental stock in any one calendar year. Conversion applications will be processed in the order that completed applications are submitted. A proposed project that is larger than the permitted number of units in a given year, if approved, will be considered to have used the permitted number for as many future years as necessary.
(B) For the purpose of this chapter, the following definition shall apply unless the context clearly indicates or requires a different meaning.
POTENTIALLY CONVERTIBLE RENTAL STOCK. The number of rental units in buildings of four or more units, as determined by the most recent count of business licenses issued for the units, plus any new rental units constructed since, minus any units which have received tentative map approval to convert and demolitions.
(C) Once the yearly limit has been reached, a project may be approved for conversion only if the Planning Commission makes one or more of the following findings:
(1) The development will provide for the construction of new rental housing; and
(2) The need and demand for low cost home ownership to be provided for by this project will outweigh the detriment caused by further reduction of the rental stock, when it is proven by the developer that a rental shortage does not exist.
(`61 Code, § 10.5) (Ord. 709, passed 1-18-1983)