Chapter 16.12
COMMON INTEREST DEVELOPMENT CONVERSIONS
Sections:
16.12.020 Development review required.
16.12.030 Physical standards for condominium conversions.
16.12.050 Notice to new tenants.
16.12.010 Applicability.
This chapter shall apply to all conversions of existing residential real property to condominium, community apartments, or stock cooperative projects or any other form of ownership except conversion projects for which a final or parcel map has been approved prior to the effective date of this chapter, or where the conversion involved a limited equity housing cooperative as defined in California Health and Safety Code Section 33007.5. All provisions, conditions, and further definitions of condominium development as approved included in the California Civil Code shall apply to the divisions of real property as permitted herein. (Ord. 05-1915 § 1, 2005.)
16.12.020 Development review required.
In addition to the limitations and restrictions contained within this chapter, the California Subdivision Map Act and applicable building and fire regulations, no residential apartment unit shall be converted for sale, transfer, or conveyance as a community apartment project, stock cooperative project or condominium, without concurrently obtaining approval of a conditional use permit. The following information is required:
A. Physical Elements Report. A report prepared by a registered engineer or architect or licensed qualified contractor describing the physical elements of all structures and facilities, sound transmission levels between units, mechanical equipment, parking facilities and appliances.
Regarding each such element, the report shall state, to the best knowledge or estimate of the applicant, when such element was built; the condition of each element; the cost of replacing said element; and any variation or noncompliance of said element from the zoning code or this chapter in effect at the time the application is filed with the city and from the city building code in effect on the date the last building permit was issued for the subject structure. The report shall identify any defective or unsafe elements and set forth the proposed corrective measures to be employed.
B. A report from a licensed structural pest control operator, approved by the city, on each structure and each unit within the structure.
C. A report on soil and geological conditions regarding soil deposits, rock formations, faults, ground water, and landslides in the vicinity of the project and a statement regarding any known evidence of soil problems relating to the structures. Reference shall be made to any previous soils reports for the site and a copy submitted with said report.
D. A statement of repairs and improvements to be made by the subdivider necessary to refurbish and restore the project to achieve a level of appearance and safety consistent with applicable codes and ordinances, as specified in subsection (A) of this section.
E. A declaration of covenants, conditions and restrictions in draft or outline form which would be applied to any and all owners of condominium units within the project. The declaration shall include, but not be limited to: the conveyance of units; the assignment of parking; an agreement for common area maintenance, including facilities and landscaping, together with an estimate of any initial assessment fees anticipated for such maintenance; description of a provision for maintenance of all utility lines and services for each unit; and a plan for equitable sharing of communal water metering.
F. Specific information concerning the demographic characteristics of the project, including but not limited to the following:
1. Square footage and number of rooms in each unit;
2. Rental rate history for each unit for previous five years;
3. Monthly vacancy rate for each month during preceding two years;
4. Makeup of existing tenants’ households, including family size, length of residence, age of tenants, and whether receiving federal or state rent subsidies;
5. Proposed sale price of each unit;
6. Proposed homeowners’ association fee;
7. Financing available; and
8. Names and addresses of all tenants.
When the subdivider can demonstrate that such information is not available, this requirement may be modified by the development director.
G. Signed copies from each tenant of a notice of intent to convert, as specified in CMC 16.12.050. The subdivider shall submit evidence that a letter of notification was sent to each tenant for whom a signed copy of said notice is not submitted. This requirement shall be deemed satisfied if such notices comply with legal requirements for service by mail.
H. Any other information which, in the opinion of the chief planning official or city engineer, will assist in determining whether the proposed project will be consistent with the purposes of this chapter.
I. Submittal of Budget. The subdivider shall provide the city with a copy of the proposed budget for maintenance and operation of common facilities, including needed reserves, with the tentative map application. The budget shall show estimated monthly costs to the owner of each unit, projected over a five-year period, or such time as is required by the California Department of Real Estate. Such budget shall be prepared or reviewed and approved by a professional management firm experienced with management of condominium complexes. The management firm shall submit a statement of professional qualifications.
J. Copy to Buyers. The subdivider shall provide each purchaser with a copy of all submittals (in their final acceptable form) required by subsections (A), (B), (C), (D), (E), (H) and (I) of this section, prior to said purchaser executing any purchase agreement or other contract to purchase a unit within the project, and the subdivider shall give the purchaser sufficient time to review said information. Copies of the submittals shall be made available at all times at the sales office and a notice indicating that such reports are available shall be posted at various locations, as approved by the city, at the project site. Copies shall be provided to the homeowners’ association upon its formation.
K. Final Information Submitted. Prior to entering into escrow on the first unit, the subdivider shall submit the following information to the planning department:
1. Name, address and phone number of homeowners’ association;
2. Actual sales price of units;
3. Actual homeowners’ association fee;
4. Number of prior tenants who intend to purchase units; and
5. Number of units purchased with intent to be used as rentals.
The final form of the physical elements report and other documents shall be as approved by the city. The reports in their acceptable form shall remain on file with the planning department for review by any interested persons until the conclusion of the conversion process. The reports shall be referenced in the subdivision report to the planning commission. (Ord. 05-1915 § 1, 2005.)
16.12.030 Physical standards for condominium conversions.
A. Adequate Physical Condition. To achieve the purpose of this chapter, the city shall require that all condominium conversions conform to the zoning code, in effect at the time of tentative map approval except as otherwise provided in this chapter. In making the determination that the project is in conformance with the zoning code, the following will be required:
1. Prior to scheduling the tentative map for a public hearing, an inspection shall be conducted by the city building department to determine project-wide conformance with zoning code and other applicable chapters of the Covina Municipal Code. A report of any violations shall be included in the staff reports to the planning commission and city council. The subdivider shall be responsible for the payment of any fees related to the inspection of the project.
2. Prior to the approval of the final map, a physical inspection of the project site, including each individual unit, shall be made by the city building department and planning department. Such inspection shall be made to ensure compliance with all applicable conditions of approval as specified in the tentative map. All such corrections shall be made prior to the approval of the final or parcel map. The subdivider shall be responsible for the payment of any fees related to the inspection of the project.
B. Specific Physical Standards. The city shall require conformance with the standards of this subsection in approving the map:
1. Building Regulations. The project shall conform to the applicable standards of the Uniform Building Code, Uniform Plumbing Code and Uniform Electrical Code in effect on the date that the last building permit was issued for the subject structure or structures except as provided herein.
2. Health and Safety. Each bathroom in each living unit shall be provided with ground fault circuit interrupters.
3. Fire Prevention.
a. Smoke Detectors. Each living unit shall be provided with approved detectors of products of combustion other than heat, conforming to the latest code standards as adopted by the city.
b. Maintenance of Fire Protection Systems. All fire hydrants, fire alarm systems, portable fire extinguishers, and other protective appliances shall be properly installed and maintained in an operable condition at all times.
4. Parking. Each unit shall be provided parking in accordance with Chapter 17.72 CMC.
5. Sound Transmission.
a. Shock Mounting Mechanical Equipment. All permanent mechanical equipment such as motors, compressors, pumps, and compactors which are determined by the city to be a source of structural vibration or structure-borne noise shall be shock mounted with inertial or bases and/or vibration isolators in a manner approved by the building department.
b. Noise Standards. The structure shall conform to all interior and exterior sound transmission standards of the Uniform Building Code (UBC). In such cases where present standards cannot reasonably be met, the city may require the applicant to notify potential buyers of the noise deficiency currently existing within these units.
6. Utility Metering. Each dwelling unit shall be separately metered for water, gas, and electricity, and each unit shall have a separate lateral connection to a trunk sanitary sewer. Alternatively, a plan for equitable sharing of these utilities shall be developed prior to final map approval and included in the covenants, conditions and restrictions.
7. Private Storage Space. Each unit shall have at least 175 cubic feet of enclosed weather-proofed and lockable private storage space in addition to guest linen, pantry and clothes closets customarily provided. Such space may be provided in any location approved by the city, but shall not be divided into two or more locations.
8. Laundry Facilities. A laundry area shall be provided in each unit; or if common laundry areas are provided, such facilities shall consist of not less than one automatic washer and one dryer equivalent capacity for every five units with two or more bedrooms; and every seven units with one bedroom.
9. Landscape Maintenance. All landscaping shall be restored as necessary and maintained in accordance with approved landscape plans. If a significant amount of new landscaping is required, revised/new landscape plans shall be submitted and approved by the planning department as part of the conditional use permit application. Such plans shall be subject to all applicable city ordinances.
10. Condition of Equipment and Appliances. The subdivider shall provide a warranty to the buyer of each unit at the close of escrow that any dishwashers, garbage disposals, stoves, refrigerators, hot water tanks and air conditioners that are provided have a useful life of at least one year. At such time as the subdivider relinquishes control over management of the project, pursuant to the covenants, conditions and restrictions, the subdivider shall provide a warranty to the association that any pool and pool equipment (filter, pumps, chlorinator) and any appliances and mechanical equipment to be owned in common by the association have a useful life of one year. Prior to final map approval, the subdivider shall provide the city with a copy of warranty insurance covering equipment and appliances pursuant to this subsection.
11. Refurbishing and Restoration. All main buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, landscape areas, and additional elements as required by the planning department shall be refurbished and restored as necessary to achieve a degree of appearance, quality and safety consistent with applicable standards. The subdivider shall provide to the homeowners’ association and/or purchaser a one-year warranty on all physical improvements required under this subsection. If substantial restoration is required, the design plans shall be subject to city council approval.
12. Long-Term Reserves. Prior to approval of the final map, the subdivider shall provide satisfactory evidence to the city that a long-term reserve fund for replacement and repair has been established in the name of the homeowners’ association. Such fund shall equal at least two times the estimated monthly homeowners’ assessment for each dwelling unit or an amount otherwise required by law. (Ord. 05-1915 § 1, 2005.)
16.12.040 Tenant provisions.
A. Notice of Intent. As provided in California Government Code Section 66427.1(a), a notice of intent to convert shall be delivered by the subdivider to each tenant at least 60 days prior to submitting an application for the tentative map and conditional use permit. The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirements for service by mail. The form of the notice shall be in the form outlined in California Government Code Section 66452.9 and approved by the planning department and shall inform the tenants of all rights provided under this chapter and state law.
B. Notice of Public Report. As provided in California Government Code Section 66427.1(a), each tenant shall receive 10 days’ written notice that an application for a public report will be or has been submitted to the Department of Real Estate, and that such report will be available on request from the planning department. The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirements for service by mail.
C. Notice of Final Map Approval. As provided in California Government Code Section 66427.1(b), each tenant shall receive written notification within 10 days of approval of a final map for the proposed conversion. The written notices to tenants required by this chapter shall be deemed satisfied if such notices comply with the legal requirements for service by mail.
D. Tenant’s Right to Purchase. As provided in California Government Code Section 66427.1(d), any present tenant shall be given notice of an exclusive right to contract for purchase of his or her respective unit and upon the same terms and conditions that such unit will be initially offered to the general public or terms more favorable to the tenant. The right shall run for a period of not less than 90 days from the date of issuance of the subdivision public report unless the tenant gives prior written notice of his or her intention not to exercise the right. Evidence of receipt by each tenant shall be submitted prior to approval of the final map. The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirements for service by mail.
E. The subdivider shall provide suitable alternate housing to tenant households, at no additional cost to the tenant, whose unit undergoes substantial remodeling or rehabilitation during conversion, if the unit being remodeled or rehabilitated is not habitable. The final determination of habitability and suitability shall be made by the city building department. The subdivider shall avoid the economic displacement of nonpurchasing tenants in accordance with California Government Code Section 66427.5. (Ord. 05-1915 § 1, 2005.)
16.12.050 Notice to new tenants.
After submittal of the tentative map and development plan applications to the city, any prospective tenants shall be notified in writing of the intent to convert prior to leasing or renting any unit. The form of the notice shall be as follows:
To the prospective occupant(s) of _________________________(Address)
The owner(s) of this building/project, at_______________________(address), has/have filed an application for a Tentative Map and Development Plan with the city of Covina to convert this building to a (condominium, community apartment, or stock cooperative project). No units may be sold in this building unless and until the conversion is approved by the city and subsequently a public report is issued by the California Department of Real Estate. If you become a tenant of this building, you shall be given notice of each hearing for which a notice is required pursuant to Cal. Gov’t Code §§ 66451.3 and 66452.5, and you have the right to appear and the right to be heard at such hearing.
_________________________________(Signature of owner’s agent)
_________________________________(Dated)
I have received notice on ________(Date)
_________________________________Prospective tenant or tenants signature(s)
(Ord. 05-1915 § 1, 2005.)
16.12.060 Findings.
Prior to approval of the tentative map and development plan, the planning commission and city council shall both hold public hearings as required for processing of tentative maps pursuant to CMC 16.08.120 and 16.08.130. Notice of the hearings shall be given in accordance with CMC 16.02.100. A copy of any staff report shall be served by the subdivider on each tenant of the subject property at least three days prior to the planning commission hearing, either by personal service or by posting the report on the front door of the unit and mailing it to the tenant. The planning commission shall not recommend approval of a tentative map for conversion of apartment units and the city council shall not approve a tentative map for conversion of apartment units unless both find that:
A. Findings when there is not an increase in the number of units:
1. All provisions of this chapter are met;
2. The proposed conversion is consistent with the goals, objectives, policies, general land uses and programs specified in the general plan, including the housing element, and with any applicable specific plan;
3. The overall design, physical condition and amenities of the condominium conversion are consistent with those associated with condominium developments throughout the city and such elements achieve a high degree of appearance, quality and safety;
4. There is no evidence in the public hearing record to indicate that vacancies in the project were intentionally increased for the purpose of preparing the project for conversion; and
5. There is no evidence in the public hearing record to indicate that tenants have been coerced to publicly support or approve the conversion, or to refrain from publicly opposing it, or to forgo any assistance to which they may be entitled.
B. Findings when there is an increase in the number of units:
1. All provisions of this chapter are met;
2. The proposed conversion is consistent with the goals, objectives, policies, general land uses and programs specified in the general plan, including the housing element, and with any applicable specific plan;
3. The maximum number of units proposed is consistent with the objectives, purposes and standards of the general plan, zoning code, and/or any applicable specific plan;
4. With the increase in units, the project still meets the requirements of the zoning code and provides adequate parking, landscaping, open space, etc.;
5. The overall design, physical condition and amenities of the condominium conversion are consistent with those associated with condominium developments throughout the city and such elements achieve a high degree of appearance, quality and safety;
6. There is no evidence in the public hearing record to indicate that vacancies in the project were intentionally increased for the purpose of preparing the project for conversion; and
7. There is no evidence in the public hearing record to indicate that tenants have been coerced to publicly support or approve the conversion, or to refrain from publicly opposing it, or to forgo any assistance to which they may be entitled. (Ord. 05-1915 § 1, 2005.)