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RTC # 02-328

August 27, 2002

SUBJECT:

INFORMATIONAL REPORT – VACANCY RATE SURVEY

REPORT IN BRIEF

The purpose of this report is to transmit to the City Council the results of a Vacancy Rate Survey completed during the month of June 2002. Information collected by this survey indicates a vacancy rate of 5.67% for apartment complexes in Sunnyvale. The two prior semi-annual surveys indicated a vacancy rate 3.32% in June 2001 and 7% in January 2002. This is the third consecutive Vacancy Survey indicating a vacancy rate of 3% or more. In accordance with the Municipal Code, this increased vacancy rate will allow apartment owners to submit an application to convert their complexes to condominiums.

BACKGROUND

At various times apartment owners have applied to the City for conversion of apartment complexes to condominium status. The Sunnyvale Municipal Code restricts apartment conversions to condominium status until there is a vacancy rate surplus for one full year prior to a conversion application.

In order to determine if an apartment vacancy surplus exists, Section 19.70.030 of the Municipal Code requires the Director of Community Development to determine twice each year, on the basis of a representative sampling of apartment buildings, the vacancy rate for apartments within the City. A vacancy surplus is defined as any number of apartments offered for rent or lease in excess of a three percent apartment vacancy rate. The intent of this ordinance is to prevent the conversion of apartment complexes to condominiums at times of low vacancy when affordable rental housing is in short supply.

If the appropriate vacancy rate allowing conversion is attained, the City would require a project to receive approval of a Use Permit or Special Development Permit, as well as a Tentative Map. The zoning code allows applications for conversions to be submitted semi-annually in the months of May and November. If the number of applications received exceeds the number of units allowed by the vacancy rate, then projects are evaluated based on criteria in Section 19.70.060 of the Municipal Code.

EXISTING POLICY

Housing and Community Revitalization Sub-Element (1992):

Goal A: Foster the expansion of the housing supply to provide greater opportunities for current and future residents given environmental, social, fiscal, and land use constraints.

Goal C: Promote and maintain a diversity in tenure, type, size, location and cost-of-housing to permit a range of individual choice for all current residents and those expected to become city residents as a result of normal growth processes and employment opportunities.

Draft Housing and Community Revitalization Sub-Element (2001)

Policy E.2 Continue to use local, state, and federal financing programs to reduce the costs of construction, or costs to the resident, in order to make housing affordable to low and middle-income families, seniors, and the disabled.

Goal A: Foster the expansion of the housing supply to provide greater opportunities for current and future residents given environmental, social, fiscal, and land use constraints.

Goal C: Promote and maintain a diversity in tenure, type, size, location and cost-of-housing to permit a range of individual choice for all current residents and those expected to become city residents as a result of normal growth processes and employment opportunities.

Draft Housing and Community Revitalization Sub-Element (2001)

Policy E.2 Continue to use local, state, and federal financing programs to reduce the costs of construction, or costs to the resident, in order to make housing affordable to low and middle-income families, seniors, and the disabled.

DISCUSSION

The 100 apartment complexes selected for the survey represent the various geographical areas in the City and contain a total of 14,562 units.

The survey results show that out of a total of 100 complexes with 14,562 units, 825 units were vacant at the time of contact. This equals a vacancy rate of 5.67%. A 5.67% vacancy rate represents a decrease from the January 2002 rate which was at 7%.

Apartment rental rate information was collected during the survey period. The information reflects the actual range of rents, including the average rents for apartments in the complexes surveyed.  

Actual Rent Range

Low High Average Rent Median Rent

Studio

$ 695 $ 1,150 $ 929 $ 914

1 Bdrm

$ 795 $ 2,125 $ 1,188 $ 1,160

2 Bdrm

$ 1,000 $ 2,515 $ 1,533 $ 1,510

3 Bdrm

$ 1,500 $ 3,025 $ 2,005 $ 1,875

 

FISCAL IMPACT

No fiscal impact will result from the information provided.

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City web page, and the availability of the report in the Library and the City Clerk’s Office.

RECOMMENDATION

No Action Required

Prepared by:

Barbara Rigney
Administrative Aide

Reviewed by:

Annabel Yurutucu
Housing Officer

Reviewed by:

Robert Paternoster
Director, Community Development

 

Approved by:

Robert S. LaSala
City Manager

Attachments

  1. Vacancy Graph

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