NEWPORT BEACH : Rental Vacancies Up; Could Affect Condos

For the first time in 10 years, the city’s rental vacancy rate is above 5%, a factor that could influence condominium conversions during the next year.

Based on a rental vacancy survey, the City Council this week voted to establish the vacancy rate at 6.03%, abnormally high for Newport Beach. The difference this year is that two large, multifamily residences in the city--Oakwood Apartments and Park Newport--are both undergoing renovations or changes in their rental policies and have more vacant apartments than in past years, Planning Department Director James Hewicker said.

The council considered excluding these two complexes from the survey, which would have lowered the vacancy rate to 3.72%. However, acting on a motion by Councilman Clarence J. Turner, the council opted for the higher figure. Turner argued that the council should be consistent in the way it counts vacancies over the years.

The higher vacancy rate would allow more apartments to be converted to condominiums. If the vacancy rate is lower than 5%, apartment owners seeking to convert their dwellings must obtain a “vacancy override” from the city in addition to meeting five other requirements. Those considerations include the size of the lot, provisions for fixed-income and low-income tenants, and current building code requirements.