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Friday, September 22, 2006

Condo Converts

Posted by on September 22 at 15:28 PM

The hot topic in Seattle affordable housing these days is the condo conversion boom — though a forum of Seattle’s “brain trust of housing geeks” demonstrated some disagreement over whether condo conversions are actually a threat to low-income renters. Anecdotal evidence seems to indicate that developers are buying up affordable apartment buildings and redeveloping them into much more expensive units, thus giving low-income renters the boot and forcing them to scrounge for new homes in a more and more expensive housing market.

Preliminary results from a city-funded study, though, seem to indicate differently. Seattle Department of Housing director Adrienne Quinn thinks that condo conversions are not the primary threat to affordable housing in city and that the study shows the number of affordable units in Seattle has actually increased since 2004.

I posted about the study last week — it has yet to be released, and some affordable housing advocates are saying it’s flawed.

One thing there’s no denying is that a lot of apartment buildings are being converted into condos. Look, I even made a red-hot graph, via info from Low Income Housing Institute Director Sharon Lee, of the number of applications to the Department of Planning and Development for rental apartment to condo conversions:
condoconvertGRAPH1.jpg

The city study, though, shows that only a small percentage of the units being converted were affordable to begin with. All in all, 32 units affordable to households with incomes less than or equal to 50% of the area median were converted to condos in 2004 (out of the 430 converted total). For 2005, the number converted was 118 units (out of 1551 conversions) and for 2006, 320 units (out of 1423 conversions so far).

Condo conversions are not the only way affordable housing is lost, of course, there’s also demolitions. AND condo conversion could endanger affordable housing by driving up property values all over. But if the study is correct, then it means the majority of condos aren’t bulldozing previously affordable apartments.


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What is the area median income?

I moved here bought a car and a condo. That's the least expected of a functioning member of society. Renters simply want to throw their money down the drain. It's fine if people want to waste their money, but the government shouldn't be forced to create apartments just so people can waste money that should be going to their mortgage.

I can certainly attest to the difficulty of finding affordable housing-- I make a decent (non-profit, but ok) salary and developers are tearing down my very affordable house. The first 20 or so apts I called had waiting lists two hours after the ad was posted and were holding showings in 15 minute increments back to back. I found a place, for $300 more than I used to pay, good thing I make an ok living and don't have kids, dogs, etc. If it isn't the condos, I'd love to know what's happening.

Condo,

Fuck off, you elitist piece of shit.

No, really, on behalf of all of the working folks who can barely afford to remain in this city - FUCK OFF.

A bar chart at 3:30 on a Friday afternoon? Yuck. I'm going back to that Benny Hill post.

Yeah, I know in previous posts about this issue there's been mention of whether the definition of affordable is actually sensible, or if it's too skewed by the number of very-well-off. I'd be curious to see income distribution statistics, too.

Chris and Noink,

The median income is confusing to calculate for affordable housing issues, since the entire income of the household is included and it's not just Seattle but the "Seattle area"... I haven't heard back yet from those housing geeks on what "area" means, any ideas?

In the meantime, you can check out a vast spread sheet detailing what the city has determined to be affordable here:
http://www.seattle.gov/housing/12-IncomesandRents/2006_Incomes_and_Rents.xls

Based on that, a one-person household that qualifies for the affordable housing in this study (50% of the median) would make $27,250 a year. So the median income for a one-person household in the area is $54,500.

All I know is I've got three friends who were forced to move suddenly due to condo conversions. You call it what you want, but they sure weren't rich.

Renter, have you ever heard of the term "troll" before?

I've heard that Seattle was provincial and anti-change. This thread proves it. Just because someone can afford a car and a condo they get called names. Cities change and grow, it's called progress. If you can't afford to buy something, maybe it's time to have the guts to ask your boss for a raise or get a better job. Having money is not elitist, it's a reward for working hard. Anti-change types are just holding this city back.

The number of affordable units could be increasing at the same time as they become harder to find (large increase in demand outstrips small increase in supply due to population increases). Doesn't mean the study is biased or the result of a conspiracy.

I didn't call Condo names because they have a car and money (which I do as well, to a point), I called Condo names because they posted an insensitive elitist asshole comment that showed no regard for the real world plight of longtime working class residents who are being forced to move farther and farther out of Seattle - in no small part due to the deliberate policies of local govt.

Move back to Cleveland, dickhead.

Renter:
Condo's the troll and you took the bait.

Cleveland is right. I moved here from Champagne Urbana and have found the provincial anti-change attitude that people warned me about. Anything new or different comes up and people say no without even understanding what they're talking about.


Condo's here are cheap compared to New York so there's nothing to complain about. Working class people have to be willing to move around just like everyone else in America. No place does it state that everyone has a right to a cheap home in a location of their choice.


People from Manhattan move here for the cheap real estate. People from Seattle can move to Idaho for even cheaper real estate. It's a dialectic that the market will sort out. No need for name calling.

Moving on...

I think the city council did the right thing when they eliminated the building heights cap in downtown. Unless we build a moat around Seattle and doom it to permanent bedroom community status we need to add supply. Build tall, slim condo towers. Great! Even if the units are expensive they will sop up demand generated by urban DINKs, retiring suburban boomers, and the wealthy. As someone with a modest nonprofit salary, I'm all for it. More affordable housing for me.

Fuck the market, and fuck you - Mr/Ms Champagne Urbana (we've had three of these assholes now, so we're well past the lone troll theory).

Something else to consider in the numbers: where are the people that are buying these converted condos coming from? Typically, they are moving out of apartments, thus increasing the supply (and ultimately the affordability) of the remaining apartment units.

What is it about some condo owners, anyway? The moment they close the escrow on their overpriced, cheaply built apartment, they suddenly turn into assholes?


I mean, it's not like they actually own "real" property, like land or anything. After all, it's just a little box inside a bigger box crammed full of similarly-sized small boxes. But just the same, you gotta pay the mortgage, which, while cheaper than a house on real real-estate, is still exhorbitant, plus there are the added "association fees" to maintain common areas. And what about all the rules you have to follow, the covenants and ordinances you have to adhere to, and if you don't, a bunch of strangers can basically kick you out if they don't like you, or you cause too much "trouble"?


And for this, they get all uppity, like they've suddenly become part of the landed gentry, looking down their noses at the serfs living in rental units.


The irony is, a lot of these jokers don't even really "own" their little crackerbox beehive homes anyway; many don't have absolute ownership, but only life estate or right of possession agreements, so if they die, ownership reverts back to the property manager!


Me, I have a nice (albeit small) apartment in the basement of a house, with a nice yard, fruit trees, nice neighbors, on a clean, quiet street, half a block from a post office, liquor store and a bus stop that whisks me to downtown in 15 minutes. I pay a fraction in rent of what the typical condo-drone pays for mortage, interest, and fees, and even though I'll never be able to "roll it" over for a tidy profit (at least until the now-imminent bursting of the real estate bubble), I also don't have to worry about losing my shirt, pants and underwear when the Ponzi-scheme of my negative interest mortgage comes due, either.


These sort of Condo-owners seem to be of the type that believes, "he who dies with the most toys wins" variety. Me, I'm more of the, "he who dies with the most toys - is still dead" variety.


So, while I may not be sitting in my paper-thin skybox looking through the window of the other human habitrail dwellers across the alleyway, dreaming of the day I sell my little box and upgrade to some equally cheaply constructed McMansion in the Issaquah Highlands 30 miles away, I at least have the satisfaction of sitting in "my" yard, munching on apples, pears and plums picked ripe off the tree, listening to the twittering birds, and the laughing children across the street, watching the clouds roll across the sky above me, all the while thinking to myself, "yeah, this is definitely worth $500 a month."


Suckahs!

Wow, Proud Renter, you're so much better than those condo owners! How did you get so be so much cooler than everyone else?

I guess an asshole is an asshole, whether he/she is rich or poor.

re: #7... I'm JUST below that number. I struggle as much as anyone to find affordable rental housing (I set my cap at $700 monthly, deposits exempt, water/sewer covered), but I've been able to find it in Seattle. Having few needs, along with no vehicle or pets, also helps.

Meanwhile, a coworker is planning to move from West Seattle to Kent in November because of the lack of affordable rental housing available.

Gomez,
Is your co-worker moving to Kent because they can't ANYTHING affordable in Seattle, or because they can get a whole lot more for their money in Kent?

The former, Sr. Curioso. He thinks Kent is a dump and is being selective to minimize the dumpiness of his eventual new abode. Specific reason for singling out Kent unknown, but there probably is a personal connection there (family).

Not all Seattleites are "provincial" in the sense described by those Midwestern folk who posted above. These changes were inevitable. I am sorry for the people who are driven out, but there are others who hold on, no matter, and they may have to work harder than they ever did to do so, but not every working class person will disappear, but many have and will. Working class is becoming an antiquated term itself. America's economy is changing and places like Cleveland and other burgs are not fairing as well. Even living standards are changing. I find it worth it to live in Seattle than say, move to Portland or Denver. I don't have many financial responsibilites outside of my rent ($400), telephone, utilities, multiple credit cards and one monthly loan payment. I manage my finances and I could afford an apartment between $800-$1000, but I lucked out and even if I did have to pay twice as much, would still stay. I'm thankful for my circumstances.

Seattle people are just as uppity as people told me they would be. I'm glad we have "The Stranger" for us strangers to this town. I heard the paper was started by Midwestern transplants - must be why I like it so much.


Seattle people just need to clue into market capitalism like the rest of the America. Whiners who feel entitled to cheap rent are living in a dream world.

Righ CUT, because, as John Maynard Keynes has reminded us: no human being DESERVES a decent roof over their heads. I mean, there's no "right" to affordable shelter anywhere in the Constitution, so clearly the founders never intended that whole "life, liberty, pursuit of happiness" thing in the preamble to include protection from the elements.

So, let's just make EVERYONE pay 50% of their salaries for housing - I mean, that's only FAIR, right? Let's put them in debt for the next 30 years of their lives, just so they can stay dry and warm - because, it's the American Way, right?

Oh, and EP, FYI I got to be "cooler than everyone else" because that title was granted to me by the Ghostly Triumvirate of Cool: Humphrey Bogart, James Coburn, and Lee Marvin. Seriously, they came to me in a dream, put a Lucky Strike unfiltered in my mouth, poured me a shot of Jim Beam whiskey, let me punch Robert Mitchum in the face - twice! - and then TOLD ME I was the fuckin' "Coolest Man Alive". So there.

There is a difference between simple market capitalist and blatant gentrification and price inflation in the name of profiteering.

capitalism, not capitalist

Let's not shit on elitism. There needs to be a leading edge in culture for dullards to aspire to, but not the kind that Condo and the like portray. They're the dullards I speak of who should aspire to such elitist notions as recognizing that homownership does not seperate the humans from the subhumans.

This is not the booming postwar America of the 1950s that afforded many a fortunate grandchild a shot at autonomy and self actualization if they simply stayed the course, made no trouble and jumped through the hoops as instructed. Things are not as simple to many of us as "I moved here, bought a condo and a car". Some of us are aspiring to that very notion while some of us are simply aspiring to a 30 hour work week, some of us are aspiring to afford our prescriptions, some of us are aspiring to overcome great loss, some of us are young up and comers who haven't yet rocketed through the finishline of condo and car ownership but eventually will.

Your "I won the big game, fuck you losers" attitude is morbidly unamerican and inspite of the growing number of those unabashedly coming out of their closets with similar sentiments, it will not graft. Regardless of politics, philosophy or social status, the overwhelming majority of us today are still in on some level in touch with that 4th grade wonderment and love of the ideas of fairness, justice and equality. Nobody, save the cynical and fearful like yourself will suffer your kind for long. Inspite of the occasional bump in the road of human history that gives your kind the courage to speak out publicly (anonymous though it may be), your kind will not be suffered. That shit stopped a long time ago. This world's current social climate may feel like a renaissance to you but make no mistake, it is not. You should take a page out of The Origin Of Species and realize that such specialized creatures as yourself are top priority in nature's extinction agenda.

Many things do indeed come to pass and your illusions of security can be dashed in the blink of an eye. I have seen fate make a plaything of the lives of the secure. Stasis is in direct contrast to the universe's capitol intent. You could easily find yourself subhuman (a working renter, living check to check)regardless of talents, capabilities, intelligence, charm, competence or determiniation. I encourage you to imagine that vividly and act accordingly. You'd be surprised how quicly things can change for a person.

It reminds me of this old saying. It goes, "Don't be an asshole." Another comes to mind, "What do you give the man who has everything? Cancer."

Whether you like it or not, you're still just one of us.

Nah, I'm just kiddin'.

I'm mostly with #28, except for one notion.

Homeownership and owning a car should be a choice, not a goal to be forced on adults and lorded over them should they lack the resources or choose not to partake.

Oh yeah, I lived in the Midwest as well. Forgot to include that, so, I saw a lot of cities up close in that part of the country and am looking forward to my visit there very soon.

Hegel proved that the renter-condo discouse is just the great Being resolving itself in revolution. Cities contain both renters and condo owners, both are part of the whole. The Torah and Hegel teach us that change and growth are revolution. I can't wait to see the Cha-Cha be taken down so new and better can rise up. It's all good, and everything works itself out.

The Stranger exists to make money for Dan Savage et al. If you don't believe in making money why are you living in the town Microsoft built? Move to a socialist country. If you put money into a condo you can make a return on your investment. Rent doesn't do that. It's a fact deal with it.

Um, sorry to disabuse you of your fantasies Cap101, but Seattle has been around a lot long than MS. Remember a little airplane company called Boeing? Or perhaps you've heard of something called "the timber industry"? Mayhaps you are aware of something called the "Pacific fishing industry"? And if you go waaaaay back, you might recall a little event called "the Yukon Gold Rush"?

Saying that Seattle is "the town Microsoft built" is like saying Donald Trump is solely responsible for the existence of New York City.

Um, unless Dan & the staff have some sort of profit-sharing arrangement with Index Publishing, the owners of "The Stranger", they're the ones making money for their employer, not the other way around.

Oh, and just because someone buys a condo, it does not follow they have a RIGHT to make a profit. If the market tanks, or they got suckered into one of those crazy "reverse interest mortages" banks have been handing out like Halloween candy for the past few years, they could just as easily lose their shirts. Rent doesn't do THAT, either, BTW.

Sounds like somebody needs to go back and re-audit that Econ 101 class.

"the town Microsoft built"

Dude, everybody know the answer to this is: Redmond.

A Tenant’s Guide to Renting

The first challenge every tenant faces is finding an apartment for rent that suits their individual needs. For today’s tenant, the most effective apartment search can be done using an online apartment finder. Tenants should decide what they require in an apartment or house rental before beginning their search. For example: the number of bedrooms, location or distance from public transportation and how much the tenant can afford to pay in rent, furnished or unfurnished apartment, etc. By making these important decisions first, tenants can avoid renting an apartment or house only to regret it later. Many tenants today are taking advantage of the convenience of the internet to locate apartments for rent as opposed to the traditional print publications.

Once a possible apartment or home has been found, it is the tenant's duty to thoroughly inspect the premises making a commitment in the form of a security deposit. A tenant should not rely on the landlord or the landlord's agent to tell the tenant if anything is wrong with the property. The tenant must inspect the property carefully and ask questions about it.
Inspecting the condition and functionality of the following areas/features of the apartment before committing yourself as a tenant is highly recommended.
1. Kitchen appliances in working order.
2. Water pressure strong, plumbing without leaks.
3. Electrical outlets and wiring working.
4. Walls and ceiling painted or papered without cracks
5. Ventilation or air conditioning accessible.
6. Floors, railings and bathrooms in good repair.
7. Fire escape easy to use.
8. Stairs safe and well-lighted.
9. No rodents or insects.
10. Heating system in working order.
11. If furnished, check and write down condition of all furniture.
12. Windows and doors operable and weather-tight; screens provided.
The tenant should also check the security of the building to find out if there is a dead-bolt lock, security chain, or through-the-door viewer.
BEWARE OF EXISTING DAMAGES: In order to avoid being blamed for damages that already exist in the rental unit, the cautious tenant should take every step for self-protection. Before moving in (or as soon as possible thereafter), the tenant should make a list of all existing damages and repairs that need to be made. A copy of the list should he presented to the landlord and attached to the lease This way the landlord cannot blame the tenant for damages caused by others and the tenant will know what the landlord intends to repair. If the tenant keeps good records the landlord will not be able to keep the tenant’s security deposit for damages that were actually caused by others. Taking pictures before moving in is also strongly recommended.

ABOUT THE AUTHOR: Paul Rossano, associated with www.AllSpaces.com who “Conveniently Connects All People with All Spaces in All Places” has been dedicated to the Real Estate rental market for over 8 years. He has assisted over 25,000 tenants with their renting needs. Any questions about renting apartments, houses or other rentals, feel free to visit www.AllSpaces.com or email him at Paul@AllSpaces.com.

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