Placentia : City Rejects Condo Conversion Plan

A plan to convert 22 apartments into condominiums was rejected this week by the City Council, the second time it has been denied.

The owner of the Gables Apartments on Van Buren Street was turned down on an appeal of a council decision last December. At that time, council members were concerned that renters would be displaced and the city’s stock of affordable housing would be reduced if the units were converted into condos.

Despite several concessions by GHMM, owner of the apartments, the council remained unconvinced.

GHMM offered to “buy down” renters’ mortgages if they bought condos so that their mortgage payment would be about the same as current rents. In addition, current renters would receive a credit equal to six months’ rent toward their down payment.

The plan also included relocation assistance for renters who chose not to buy, including a guarantee of their present rate of rent for one year, with GHMM paying any difference.

Conversion plans had been approved by the Planning Commission. The city’s redevelopment staff also recommended approving the project, pointing out that the Gables’ 22 units represent less than 1% of the city’s rental housing.