Condo Conversion Is Not A Dirty Word
Posted by AGI on October 12, 2006 09:09 PM | Permalink
The bane of housing development, wannabe home builders, profiteering fly-by-night opportunists, it's all been said about the infamous condo converter. Having done a few ourselves and been through the ringer, at the height and at the current state of the housing market, here's a few words in defense of the much maligned condo converter.
Under most city codes, a condo conversion can't be approved unless it is demonstrated that there is sufficient rental housing stock and that converting rental units to ownership, will not adversely affect the availability of rental inventory. So, there is no impact on the rental market. Additionally, most converted units are those that can't be rented because they sorely need additional capital improvements, but because of the high rental vacancy and depressed rental market, there is no money to make the necessary improvements, even for basic items, the result, in some cases is urban blight.
Thus dost arrive the Condo Converter. Yes an opportunist, but also someone who is willing to turn a depressed apartment project around by bringing the vision to raise the necessary capital to upgrade the building. Further, it creates out of the ashes of neglected apartment communities, opportunities for young families to purchase their new home, to create pride of ownership and build equity during a time of outrageous pricing and where new construction is generally unaffordable. And, believe it or not, it requires great imagination to make a tired run-down apartment community sing. . . . slack, cut it for the converter, see for yourself: our Hayward Communities, our San Jose Community, our El Sobrante Community and our Antioch Community.