To recognize the effect of condominium conversions on displaced renters, the city council unanimously passed an ordinance last week that penalizes developers and property owners who fail to notify eligible renters of tenant relocation assistance.

Tenants who earn at least 80 percent of median income are supposed to receive notice they are due $500 in assistance and the new ordinance just "puts teeth into that requirement," said Tom Rasmussen, chair of the council's housing committee and sponsor of the bill.

Though it is state law that developers converting rental units to condos must provide a written notice to tenants about their potential rights, there was no enforcement mechanism in place before the passage of this bill.

The notice is delivered to tenants along with a copy of the city's building inspection report. It also lets tenants know the building is being considered for conversion.

Developers and landowners who do not comply will earn a civil_ penalty of up to $100 a day from _the date the violation. It's a small step toward better protection for tenants faced with conversion, but the city's hands are tied as the state legislature controls conversion laws.

"We know $500 barely buys boxes to move in today's market," Rasmussen said.

He said the city should look into creating a fund that could match the relocation assistance, but he hopes in the meantime the new law will at least ensure that displaced renters are always aware of their rights.

Brian Hawksford, Rasmussen's legislative aide, said most people who call the council member's office about conversions complain about poor communication between the tenants and property owners. They receive the initial conversion notice but don't hear much more after that.

"People don't know where to turn," said Hawksford. "This will be one more tool hopefully the city has at its disposal to ensure the developer or landlord pays the assistance required by state law."

Several elected officials, including Rasmussen and Ballard's state representative Mary Lou Dickerson, have pledged they will lobby for better conversion laws in the next legislative session.

Conversions are continuing to escalate across the city. Last year, more than 2,350 apartments were converted to condos and at least 1,000 this year from January to the end of July, said Rasmussen.

It's been a large contributor to Seattle's vacancy rate, which has plummeted to below 3 percent. Renters who have to move are finding it even more difficult to find housing within the 90 days allotted, said Rasmussen.

Rasmussen said he's worried about the elderly tenants at the Lock Vista Apartments who are currently facing possible conversion in the 191-unit complex. Many might not be able to find affordable homes, he said.

Karen White, with the city's department of planning and development, told council members at a previous meeting that seniors are primarily referred to the city's Office for Senior Citizens.

John Fox, director of the Seattle Displacement Coalition and a strong critic of the city's policies on affordable housing, said the bill is positive but thinks the city can do more to help "soften the blow" on renters.

The council should create a temporary fund in the upcoming budget to match the relocation assistance renters receive from owners until laws can be changed, he said.

Another issue is renovation to buildings while tenants still occupy the units. Conversion laws do not prohibit construction or renovation while a building is still lived in.

It's possible that some tenants could be eligible for the city's tenant relocation assistance program, which pays renters up to $2,400 in assistance. The funds kicks in typically when tenants are required to vacate because renovations are substantial enough to deem a building "unlivable," said White.

The city and developer pay an equal share.

However, said White, the help excludes condo conversions and would require action from state lawmakers to change it. Fox said the tenants should be eligible for this money because even though it is being converted, the building is still undergoing substantial renovation.

"There are things we can do now to stem the continuing loss of rentals and low income housing in our community," he said. "Unless we act, we will see more homeless and gentrification of unprecedented proportions."