Condo conversions: Relief for renters likely on way

OLYMPIA — Renters forced from their apartments to make way for condominiums would get more time to find a new home and extra money to pay for it under a new law expected to pass the Legislature.

House and Senate bills being considered could require developers to pay many tenants up to three months rent in relocation assistance, provide at least 120 days' notice for a condo conversion, and ban construction work during the notice period.

Presently, renters get 90 days' notice and, in some cases, $500 in relocation assistance from developers.

Randi Hansen of Seattle wishes the law had been in place when she lost her Ballard apartment last year.

"It was awful. I had no place to live," said the 66-year-old retiree, who has epilepsy and lives off Social Security and disability payments. "There were times I thought 'maybe I'll become a street person.' "

Hansen said she had to sell furniture and borrow money from friends to raise enough cash to move to a new, more expensive apartment, also in Ballard. The owners of her old apartment "didn't do anything to help me move," she said, and even started construction around her.

The measures in the Legislature are aimed at helping people in similar situations.

The House already has passed a measure, House Bill 2014. The Senate is considering a more expansive version, Senate Bill 6411, that would give renters 180 days' notice and also give local governments the ability to cap the number of apartments being converted to condominiums.

Hearings on both bills will be held today in the Senate Consumer Protection and Housing Committee. The city of Seattle supports the legislation.

Democratic leaders say they're confident one version will pass the Legislature. Democrats control the Legislature and the governor's office.

The most controversial issue is the provision in the Senate bill that would allow local governments to regulate the number of condo conversions.

Developers and apartment owners strongly oppose that idea.

"It just doesn't make sense," said Julie Johnson, president of the Rental Housing Association of Puget Sound. "We need affordable housing. If people want to purchase housing, condominiums are what people can afford to buy, especially in the city of Seattle. So you're going to tell the local government that they can cap that?"

Rep. Maralyn Chase, D-Shoreline, supports giving local governments the option to adopt caps.

"It's usually the most vulnerable among us whose buildings get partitioned and converted to condos," said Chase, prime sponsor of the House bill. "I believe the market failed and when the market fails that's why we have government. I think government must step in."

In the past three years, more than 12,400 apartments have been converted into condos in King, Pierce and Snohomish counties, according to Mike Scott, with Dupre + Scott Apartment Advisors. By comparison, from 2000 to 2002, about 1,100 apartments were converted.

However, the number of conversions has dropped sharply since a peak in 2006 because of changes in the housing market, including demand for rentals and the return on investment for developers. Scott expects that trend to continue.

Advocates for the legislation say a lull in the condo market is no reason to put off passing legislation.

"Anything would help," said Kappy Trigg, a Seattle artist who worries about losing her apartment because the owner has pursued a condo conversion in the past. "Ninety days is not enough and $500 is not enough."

Trigg, 61, pays $660 a month for her Ballard studio apartment and has resisted moving because it's convenient to work, plus she's not sure about finding another place in the same price range. She expects the housing market's downturn to buy her some time, but it's not clear how much.

Both bills in the Legislature would give local governments the option of adopting laws banning construction during the notice period, and requiring developers to pay displaced tenants up to three times the monthly rent.

The money would help people moving into a new apartment pay the first and last month's rent, as well as a deposit.

Families and individuals earning up to 80 percent of the area's median income would be eligible for the assistance. For a family of four in Seattle, the income cutoff would be around $59,500 a year.

The provision to give additional notice to tenants would be a requirement under state law.

Lawmakers are confident of passing something this year, in part because rental-housing owners support the House bill, which does not allow local governments to adopt caps.

"Contrary to everyone's belief, we do want everything to be fair and just," Johnson said. "As long as it is reasonable and fair, we will support it."

Andrew Garber: 360-943-9882 or agarber@seattletimes.com