The Seattle City Council's 2008 budget, which was passed last month, includes almost $350,000 to fund rental and relocation assistance to help displaced renters.

Residents pushed out of their homes due to high rent increases or who have been evicted as the result of an apartment-to-condominium conversion can be eligible for the assistance, said Councilmember Tom Rasmussen, chair of the council's housing, human services and health committee.

The funds are set aside as "emergency and transitional services" and will be dispensed by the city's Human Services Department.

Tenants who earn at least 80 percent of median income are supposed to receive $500 in assistance, which barely puts a dent in moving costs, said Rasmussen. In some cases, displaced renters could receive as much as $2,400 in assistance with the new funds.

In addition to the emergency assistance, the council also added to the budget $2 million for low-income housing production, more than what was initially budgeted, said Rasmussen.

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

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.

According to the housing advocacy group the Seattle Displacement Coalition, the city has lost more than 7,000 rentals to demolition and about 5,000 to condo conversions since June 2004. 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.

Conversions are a major contributor to Seattle's vacancy rate, which has plummeted to below 3 percent.