Spurred in part by the potential conversion the Lock Vista Apartments to condominiums, Ballard residents expressed anger and frustration last week over the depleting pool of affordable housing here.

Seattle's director of housing joined City Council members Sally Clark and Tom Rasmussen at last week's Ballard District Council meeting to discuss Mayor Greg Nickels proposal to expand a tax break for developers, which aims to encourage the construction of more units affordable to moderate wage workers. But the topic quickly turned to the impact of condo conversions.

Tenants of the Lock Vista, many of whom are fighting the conversion of the 191-unit complex, wore white T-shirts that read, "Save the Lock Vista" and "Save Ballard."

Rasmussen, who recently toured the apartment building, said he met many elderly residents who wouldn't be able to shoulder the expense of relocating if forced to move. He also met tenants that have lived at the Lock Vista for a decade or more.

"It's not just an apartment complex, it's a community," said Rasmussen, chair of the council's housing committee.

Rasmussen said he and other city and state officials plan to lobby for better laws regarding condo conversions during the next legislative session, "to balance the rights of the property owner and tenants."

The state governs conversion laws. Tenants are currently allowed 90 days to relocate and receive only $500 as a moving allowance.

Though conversions are not new to Seattle, Rasmussen said he's become especially concerned after learning that about 4,500 rentals have been converted here in the last three-and-a-half years. There have been about 250 in the Ballard area.

Adrienne Quinn, director of the city's office of housing, said when her department first heard of the Lock Vista conversion they immediately looked into purchasing the four-building complex. But they found it was being sold for close to $40 million.

"That is an incredible amount of money," Quinn said. "That knocked the wind out of us."

The office of housing's entire budget for preservation is only $8 million per budget cycle, she said. Quinn has approached the Seattle Housing Authority, which has agreed to look at purchasing the units.

"A broader community effort is needed to come to a solution on this," Quinn said.

Beth Miller, executive director of the Ballard Chamber of Commerce, said she's concerned that people are increasingly not able to live and work here. Many people that work here are commuting from outside of Seattle, she said.

"In order to keep a thriving business community we need to house workers in our community," Miller said.

Quinn said the mayor's proposal is one of the few tools the city has to create additional affordable housing for a segment of the population who are not eligible for other subsidies, such as teachers, librarians and fire fighters.

The plan would expand an existing multi-family tax exemption program to more neighborhoods, including Ballard, and target a higher income bracket.

The current program is aimed at those making 60 to 70 percent of Seattle's median income, but because of growing land prices, construction costs and rental rates, the program has been a negative incentive for developers. Only 11 projects have been developed under it since 2004 and very few developers use it now.

About 762 income-restricted units have been developed using it, and the city plans to build at least 1,500 more under the expanded program.

The revised tax exemption program targets those making about 80 percent of median, or individuals earning up to $42,000 and families earning about $63,000. It would provide a 12-year tax exemption on the residential portion of any new apartment building in which 20-25 percent of the units are set aside for those income levels.

The monthly rent for an individual under the plan would be no more than about $1,170, between $50 and $250 below market rate, according to the city.

Taxes not paid by developers shift to Seattle homeowners. Currently, that amounts to an annual impact of about $2.85 on a home worth $440,000, according to the office of housing. It would increase to about $5 a year under the new plan.

One man at the meeting asked the room how many make at least $42,000 a year. One person raised her hand.

"You're not talking to us," he said.

Another woman asked that the city do something more "direct" to fix the housing crisis in Seattle, such as enforcing an income tax.

"This seems extremely timid," she said. "Unless you address it in a huge way, you won't see a change in affordable housing here."

Rasmussen said most city programs help those earning far less than $42,000 a year and that the new program isn't expected to address everyone's needs. However, he agreed that the program was limited.

Council members are visiting Seattle neighborhoods this month to gather public opinion on the mayor's proposal. The goal is to elevate the discussion to a more "sophisticated" level, said council member Clark.

"It's (the mayor's plan) not a permanent solution," Clark said. "It's going to take everyone thinking about this."