Chapter 17.76 CONVERSION REGULATIONS*

Chapter 17.76
CONVERSION REGULATIONS*

Sections:

17.76.030 General requirements.

17.76.040 Requirements for tentative map and use permit approval.

* Editor’s Note: The provisions of this chapter supersede Sections 16.36.030, 16.36.070, 17.16.020, 17.56.010, and 17.62.010 of this code insofar as these sections apply to rental apartment conversions.

17.76.010 Purpose.

In order to provide for the housing needs of all economic segments of the community, and protect the health, safety, and welfare of its residents, the city council finds that the regulation of rental housing conversion is necessary to achieve the following purposes:

A. To attempt to provide a reasonable balance of rental and ownership housing in Foster City;

B. To ensure that apartment conversions do not conflict with the goals or policies of the general plan;

C. To provide tenant and buyer protection relating to displacement and relocation of renters, ensuring purchasers are informed regarding the structural integrity of buildings and ensuring said buildings and utility systems reasonably comply with all current codes which may directly impact the health, safety, and welfare of future residents including codes related to noise and insulation standards;

D. To reduce and avoid the impact of such conversions on existing and future low and moderate income residents of the community by attempting to maintain an adequate supply of rental housing which provides the majority of housing opportunity for lower and moderate income households. (Ord. 214 § 1 (part), 1981)

17.76.020 Definitions.

For the purposes of this chapter the words set out in this section shall have the following meanings:

A. “Apartment” means a building designed for or occupied by two or more families living independently of each other as defined in the state Uniform Building Code as it shall be amended from time to time.

B. “Association” means the organization of persons who own a lot, parcel, area, condominium or right of exclusive occupancy in a community housing project.

C. “Building official” means the chief building official of the city or the designee of the planning director.

D. “Common area” means an entire project excepting all residential dwelling units therein.

E. “Community apartment.” A “community apartment” is where an undivided interest in the land is coupled with the right of exclusive occupancy of any apartment located thereon.

F. “Community housing project” means condominium project, as defined in Sections 685 and 686 of the Civil Code, or successor sections, containing two or more condominiums as defined in Section 783 of the California Civil Code, or its successor section; a community apartment project, as defined in Section 11004 of the Business and Professions Code, or successor section, containing two or more rights of exclusive occupancy; a stock cooperative as defined in Section 11003.2 of the Business and Professions Code, or successor section, containing two or more separately owned lots, parcels, or areas; and a planned development as defined in Section 11003 of the California Business and Professions Code, or successor section, containing two or more separately owned lots, parcels, or areas.

G. “Condominium” means an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property together with a separate interest in space in a residential, industrial, or commercial building on such real property, such as an apartment, office or store. A condominium may include in addition a separate interest in other portions of such real property. Such estate may, with respect to the duration of its enjoyment, be either an estate of inheritance or perpetual estate; an estate for life; or an estate for years, such as a leasehold or subleasehold.

H. “Conversion” means a proposed change in the type of ownership of a parcel or parcels of land from a use that is not a community housing or community housing project use, together with the existing or added structures, to any types of ownership defined under community housing and community housing projects regardless of the present or prior use of such land and structures and whether substantial improvements have been made or are to be made to such structures.

I. “Developer” means the owner or subdivider with a controlling proprietary interest in the community housing project, or the person or organization making application hereunder.

J. “Director” means the planning director of the city of Foster City or his/her designee.

K. “Handicapped”. A person is handicapped who has the following characteristics: an orthopedic disability impairing ability to obtain employment, a physical disability where the person requires special care facilities in the home, or a developmental disability or mental disorder which would render him or her eligible to participate in programs of rehabilitation or social services conducted by or on behalf of a public agency.

L. “Housing market area” means the area that includes the cities of Foster City, San Mateo and Belmont.

M. “Lower income” means a tenant or household that earns eighty percent or below of the county or SMSA median income, whichever produces the higher figure.

N. “Moderate income” means a tenant or household that earns more than eighty percent, but not more than one hundred twenty percent, of the county or SMSA median income, whichever produces the higher figure.

O. “Multiple family residential project” means a rental housing development consisting of five or more dwelling units attached to or within one structure.

P. “Organizational documents” means the declaration of restrictions, articles of incorporation, bylaws, and any contracts for the maintenance, management or operation of all or any part of the community housing project.

Q. “Planned development” means a real estate development other than a community apartment project as defined in Section 11004 of the Business and Professions Code, a project consisting of condominiums as defined in Section 783 of the Civil Code, or a stock cooperative as defined in Section 11003.2 of the Business and Professions Code, having either or both of the following features:

1. Any contiguous or noncontiguous lots, parcels or areas owned in common by the owners of the separately owned lots, parcels or areas consist of areas or facilities the beneficial use and enjoyment of which is reserved to some or all of the owners of separately owned lots, parcels or areas;

2. Any power existing to enforce any obligation in connection with membership in the owners association as described in Section 11003.1 of the Business and Professions Code, or any obligation pertaining to the beneficial use and enjoyment of any portion of, or any interest in, either the separately or commonly owned lots, parcels or areas by means of a levy or assessment which may become a lien upon the separately owned lots, parcels, or areas of defaulting owners or members, which said lien may be foreclosed in any manner provided by law for the foreclosure of mortgages or deeds of trust, with or without a power of sale.

R. “Stock cooperative” means a corporation which is formed or availed of primarily for the purpose of holding title to, either in fee simple or for a term of years, improved real property, if all or substantially all of the shareholders of such corporation receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation, which right of occupancy is transferable only concurrently with the transfer of the share or shares of stock or membership certificate in the corporation held by the person having such right of occupancy. The term “stock cooperative” does not include a limited-equity housing cooperative, as defined in Section 11003.4 of the Business and Professions Code or successor section.

S. “Subdivision Map Act”. The “Subdivision Map Act” shall refer to the subdivision law of the state of California commencing with Section 66410 of California Government Code, or its successor.

T. “Subdivision ordinance” means an ordinance of the city of Foster City consisting of Title 16 of the Foster City Code and the Estero Municipal Improvement District Code as the same now exists or is hereafter amended. (Ord. 214 § 1 (part), 1981)

17.76.030 General requirements.

A. Conversion Tied to New Rental Construction. In no case shall rental units be converted to a community housing project unless an equal number of new rental units are constructed on or before January 1st of each calendar year. The planning director shall certify the total number of rental apartment units constructed the previous year, commencing on July 1st and ending June 30th of each year. One hundred percent of the certified one year’s total will be the allowed number of apartment units eligible for conversion into units of a community housing project in the current fiscal year. In the event the maximum permitted number of units is not converted in a given fiscal year, the surplus shall be carried over to the following year.

1. Selection Procedure. Applicants may submit applications for conversions twice a year, due at the close of business on the last Friday of April, and the last Friday of October. The semiannual number of units approved for conversion shall not exceed one-half the total determined in Section 17.76.030 A, unless, at the previous commission hearing on conversion, there were no applications approved, or those approved did not equal the amount allowed for conversion. These applications must contain all information required for a tentative map application pursuant to this chapter.

The planning director shall rank each batch of applications in accordance with a formula based upon the following criteria:

a. The extent to which the proposed conversion will provide housing opportunities that address the goals of the Foster City housing element;

b. The extent to which the proposed conversion’s deleterious effect on occupying tenants will be mitigated by relocation and other assistance provided by the applicant;

c. The extent to which the building is suitable on the basis of its physical condition and other amenities, for conversion to condominiums;

d. The extent to which the conversion impacts the local school system.

2. Acceptance and Ranking of Applications. The planning commission shall consider the highest ranking acceptable applications and may approve applications from those presented. An application will not be complete and accepted for processing until staff determines that the materials submitted are sufficient. If an application is not referred to the planning commission for three successive application periods, the applicant may appeal directly to the commission. Upon request, the applicant shall receive from the planning director a written explanation of the rank given to the conversion application, and/or written explanation of the reasons for denial of the conversion application, and/or written information concerning the process for appeal of the ranking or denial of the conversion application. Applicants will be rejected unless it is demonstrated that the proposed project will meet specified minimum requirements with respect to criteria set out in subsection (A)(1)(a) and (A)(1)(b) of this section.

3. Exception. Notwithstanding the foregoing, additional rental units may be converted during the times specified if the city determines that the specific proposed conversions will be in the best interests of the residents of the city. In arriving at this conclusion, the city shall consider the need for ownership opportunities, the rental vacancy rate for the housing market area and/or the city, and any other matter deemed relevant by the city. The burden of proof shall be on the applicant to establish that on balance, the benefits to the community which will result from the specific proposal will substantially outweigh any detriments which may result.

B. Conformity with the General Plan. No conversion of multiple family rental units to ownership units shall be permitted unless and until the planning commission finds that the proposed conversion will not conflict with the goals and policies of the general plan, especially the housing element.

C. Prohibition of Discrimination Against Prospective Buyers with Children. In no case shall a project which can reasonably accommodate children, as determined in each case by the planning commission, limit initial sales to households or individuals without children.

D. Tenant Notification.

1. Notification of Hearing on Use Permit and Tentative Map. Not less than two weeks prior to the public hearing for use permit and tentative map, the applicant shall send all tenants of the building(s) proposed for conversion a written notice. Such notice shall indicate: that the subdivider intends to convert the building to a community housing project; the date and location of the public hearing; the steps and actions the subdivider and others, including governmental agencies, will or must take in order for the building to be converted. Such notice shall further specify:

a. That the tenant will be permitted to terminate any lease or rental agreement without penalty upon notifying the subdivider in writing thirty days in advance of such termination;

b. That no existing tenant’s rent will be increased from the level that existed three months prior to the date of application for a tentative map until tenant purchase of the unit, or tenant relocation takes place, or the tentative map application is denied, whichever is later. This period shall not exceed twelve months. The tenant may credit the amount of rent paid in excess of the allowable rent to the rental payment(s) immediately following the approval of the tentative map. Any rent increase following the twelve month period shall not exceed one hundred percent of the increase in the Bay Area Consumer Price Index for the most recent twelve month period;

c. That the provisions for relocation assistance and/or special group considerations are applicable as specified in Section 17.76.040 B; and

d. That no tenant will be evicted during a period beginning with the date of application for tentative map and ending thirty days after the issuance of the notification of termination of tenancy except for just cause.

2. Lease Extension. The developer shall offer a ninety day extension of tenancy after the expiration of a lease or rental agreement which would expire prior to or at the time of commencement of sales or issuance of the final public report by the real estate commissioner.

3. Tenants Right to Purchase. The developer shall provide each tenant an irrevocable, nontransferable, preemptive right to purchase a unit or right of exclusive occupancy at a price no greater than the price offered to the general public for such unit. Such right shall be irrevocable for a period of ninety days after the commencement of sales or the issuance of the final public report by the real estate commissioner. Tenants shall have the right to the unit presently occupied and then to other units in the project only after they have been declined for purchase and vacated by the occupancy tenants. In no case shall an existing tenant have a preemptive right to more than one unit.

4. Notification of Proposed Conversion Prior to Termination of Tenancy Due to Conversion (Notice of Intention to Convert). Each tenant of a conversion project shall be given one hundred eighty days notice of intention to convert prior to termination of his or her tenancy. The subdivider shall, at his/her discretion, establish the date of issuance of the notice of intention to convert. Such notices shall apply to existing and subsequent tenants of units to be converted. Each person who becomes a tenant of a unit for which either a one hundred eighty day notice of intention to convert and/or any other notice required by this chapter has already been issued, shall be informed and given a copy of said notice before entering into any written or oral rental agreement. At that time, such tenant shall also receive, in writing, notification of the number of days remaining before the expiration of the notice of intention to convert previously issued. The ninety day right-of-first-refusal shall terminate no earlier than the expiration date of the notice of intention to convert.

5. Notice to Quit. A notice to quit as authorized by Civil Code Section 1946 must be served by the developer after the expiration date of the notice of intention to convert if a tenant is required to move or if a unit is sold. (Ord. 214 § 1 (part), 1981)

17.76.040 Requirements for tentative map and use permit approval.

A. General Requirements. Both a tentative map and use permit are required. The planning commission shall adhere to the requirements set forth in Section 17.76.030 in their review and approval or disapproval of tentative maps and use permits. A tentative map and use permit shall be disapproved if any of the following findings are made:

1. That the tentative map and use permit are not consistent with applicable authorities as set forth in Section 17.76.030B;

2. That approval of the tentative map and use permit would be inconsistent with this chapter;

3. That the design or proposed improvements of the subdivision is likely to cause or sustain substantial environmental damage as defined by California Public Resources Code Section 21000 et seq.;

4. That there is an insufficient supply of affordable replacement units in the housing market area available to tenants who will be displaced as a result of the conversion; or

5. The application does not comply with any other provision of this chapter.

B. Specific Requirements. An application for the conversion of rental housing into a community housing project will require the submittal of the following information, which must be submitted by the developer to the planning department at the same time the tentative map and use permit application are submitted unless otherwise stated:

1. Streets, Driveways and Parking Areas. All private streets, driveways and parking areas for said community apartment projects shall be improved and constructed with a structural section and site dimensions in accordance with the standards of the city and shall be designed to ensure that access for municipal services shall not be denied any dwelling unit therein by reason of deteriorated or impassable private streets, driveways, or parking areas, as determined by the public works director or his/her designee.

2. Compliance with Codes. The design, improvement and/or construction of a community housing project shall conform to and be in full accordance with all requirements of all building, fire and housing codes, zoning provisions and other applicable local, state or federal laws or ordinances relating to protection of public health, safety, and welfare, in effect and deemed appropriate by the planning commission at the time of the filing of the tentative map and use permit. Also, any violations of the latest adopted edition of the Uniform Housing Code as prepared by the International Conference of Building Officials, or its successor, relating specifically to provisions protecting health and safety of residents, shall be corrected and any equipment or facilities which the building official determines are deteriorated or hazardous, shall be repaired or replaced. In particular, the developer shall repair or replace any damaged or infested areas in need of repair or replacement as shown in the structural pest report. The interpretation of what constitutes a hazard to public health and safety shall be made by the planning director, or his/her designee.

If the proposed project does not comply with the provisions of the state of California Uniform Building Code, Foster City Code, and/or the building official identifies items to be corrected as provided in the above, any use permit issued pursuant to this part shall require the developer to furnish a bond, in an amount equal to the building official’s estimated cost to bring the project into compliance with said codes, said fire regulations and/or such identified items to be corrected. Said bond shall run in favor of the individual purchasers and the homeowners association and shall provide for reasonable attorney’s fees in the event of default by the principal. The city shall hold said bond pending issuance of the certificate of completion.

3. Separate Metering. The consumption of gas and electricity within each dwelling unit shall be separately metered in accordance with the local utility and PUC regulations. In all cases, a water shut-off valve shall be provided for each unit.

4. Impact Sound Insulation. The applicant/owner shall demonstrate that wall and floor ceiling assemblies conform to the sound insulation performance criteria promulgated in Title 25, California Administrative Code, Section 1092, or its successor, and that any floor covering which is replaced similarly provides the same or greater insulation qualities.

5. Storage Requirements. Private, enclosed, weather-proofed and lockable outdoor storage space shall be provided for each dwelling unit according to the following schedule:

No. of Bedrooms	Minimum Space in Cubic Feet
Studio or 1	150
2	200
3	250

The above space shall be provided in the garage or parking area or contiguous to each unit. This requirement may be waived by the planning commission if it is determined that sufficient storage space exists to reasonably fulfill this standard.

6. Private and Common Area Open Space. The planning commission shall review the adequacy of open space in terms of area, and privacy standards. Private outdoor space shall be provided for each unit, where practical. The amount of space shall be determined in each case by the size of the unit and amount of common open space. Adjoining units shall be redesigned or landscaped in such a manner as to preclude visual intrusion into private outdoor yards or interior spaces, where practical.

7. Noise Mitigation. Appropriate site design and construction techniques shall be utilized to ensure isolation from excessive noise sources outside of the project boundary. If the planning director determines that an excessive external noise source exists, the developer shall retain an acoustical engineer to evaluate the noise impact on the proposed conversion and develop mitigation measures. The construction shall comply with the city general plan and the applicable ordinances and state codes relating to sound transmission control.

8. Interim Maintenance Standards. The developer shall be responsible for improving and maintaining the structures and landscaping in accordance with the approved architectural and landscaping plans and good maintenance practices prior to turning them over to the homeowners’ association. The developer shall furnish a bond satisfactory to the public works director or his or her designee to ensure compliance with this requirement.

9. Off-street Parking. The project shall provide a minimum of one and one-half off-street parking spaces, one of which must be covered, per unit for each unit of one bedroom or less, and a minimum of two off-street parking spaces per unit of which one must be covered for each unit of two bedrooms or more. The applicant/owner shall demonstrate that additional spaces exist to reasonably accommodate guest parking. These requirements may be lessened to the extent that the applicant establishes that additional parking is not needed at the particular site proposed for conversion.

10. Applicability of City Ordinance Regulating Parking of Trailers and Recreational Vehicles, etc. Title 17, the zoning ordinance of the Foster City Code, regulating parking of trailers, repairing vehicles, etc. shall apply to the private street and to all parking along said street. The parking of recreational vehicles such as boats, trailers, etc. shall be prohibited throughout the entire development unless said parking is within an enclosed area. Vehicular curb parking along the private street shall be prohibited except in designated areas. Appropriate “No Parking” signs shall be installed by the applicant.

11. Legal Description. A complete legal description of the property shall be provided.

12. Boundary Map. A boundary map showing the existing topography of the site and the location of all existing easements, structures and other improvements, and trees over four inches in diameter shall be provided.

13. Proposed Organizational Documents. In addition to such covenants, conditions and restrictions that may be required by the department of real estate of the state of California pursuant to Title 6 (condominiums) of the Civil Code or other state laws or policies, the developer shall provide the following organizational documents or information related to:

a. Conveyance of units;

b. Assignment of parking and management of common area within the project;

c. A proposed annual operating budget containing a sinking fund to accumulate reserve funds to pay for major anticipated maintenance, repair or replacement expenses;

d. FHA regulatory agreement if the project is FHA financed;

e. The most recent balance sheet of the association.

14. Property and Structural Report. The property and structural report shall describe the physical condition and estimate remaining useful life of each of the following elements of each structure situated within the project proposed for conversion: roofs, foundations, exterior paint, paved surfaces, mechanical systems, sprinkler systems for landscaping, utility delivery systems, central or community heating and air conditioning systems, sound insulation, fire protection systems including any automatic sprinkler systems, alarm systems, or standpipe systems, and structural elements. Said report shall also identify any structural elements which are known to be structurally defective or unsafe so as to impose a hazard to the health and safety of the occupants and users of said improvements. Such report shall also include recommendations to ensure the continued useful life of such elements and systems, and be prepared by a registered civil or structural engineer, or a licensed general building contractor or general engineering contractor. The developer shall arrange for project inspections by the building department to verify the accuracy of the structural report. The building official shall prepare a report detailing building code deficiencies or other health or safety deficiencies which must be corrected prior to sale of units or occupancy.

15. Structural Pest Report. The report shall be prepared within sixty days of the date of application by a licensed structural pest control operator pursuant to Section 8516 of the Business and Professions Code, or its successor section, relating to written reports on the absence or presence of wood destroying pests or organisms.

16. Building History Report. The building history report shall be prepared to include the following:

a. The date of construction of all elements of the project;

b. A statement of the major uses of said projects since construction;

c. The date and description of each major repair of any element since the date of construction. For the purposes of this subsection, a “major repair” means any repair for which an expenditure of more than one thousand dollars was made;

d. The date and description of each major renovation of any element since the date of construction. For the purposes of this subsection, “major renovation” means any renovation for which an expenditure of more than one thousand dollars was made;

e. Statement regarding current ownership of all improvements and underlying land;

f. The name, address, and age of present tenants including children, in the project;

g. Estimated market value of each unit;

h. Failure to provide information required by subsections (B)(16)(a) through (g) of this section shall be accompanied by an affidavit, given under penalty of perjury, setting forth in detail all efforts undertaken to discover such information and all reasons why said information cannot be obtained.

17. Rental History. The developer shall furnish a report detailing the size in square footage, the current or last rental rate, the monthly rental rate for the preceding two years, and the monthly vacancy over the preceding two years of each rental unit proposed to be converted.

18. Project Organization. A written description shall be furnished regarding the proposed project organization including the use and control of the common elements and recreation facilities within the project. Said statement shall detail any proposed control of common facilities to be retained by the developer or to be owned or maintained by any organization other than the homeowners’ association or unit owners.

19. Copy of Application and Supplemental Questionnaire. The developer shall furnish:

a. A true copy of each application submitted for issuance of a final public report to the department of Real Estate of the state of California for the project proposed for conversion including all attachments and exhibits thereto required by the department pursuant to Section 11011 of the Business and Professions Code;

b. A true copy of the statement of compliance (form 643 as amended) pursuant to 10 Cal. AD. Code, Section 2792.9, or its successor, relating to operating and maintenance funds during start-up;

c. A statement whether the developer will provide any capital contribution to the association for deferred maintenance of the common areas, and if so, the sum and date on which the association will receive said sum; and

d. A true copy of the supplemental questionnaire for apartments converted to condominiums, community apartments, or stock cooperative projects submitted to the Department of Real Estate of the state of California for the project proposed for conversion, and shall include all attachments and exhibits thereto.

Provided, however, that to the extent the information required to be furnished pursuant to subsection (B)(19) of this section is not available at the time of application, any conditional use permit issued under this part shall require the developer to furnish such information to the city within ten days of submission of the same to the Department of Real Estate; provided further, that the developer shall file with the city a true copy of the final public report’ within ten days of issuance by the Department of Real Estate.

20. Relocation Displacement or Mitigation Plan. The developer shall submit a relocation displacement plan which shall detail the number of residents which will be displaced as a result of the proposed conversion and document the availability of comparable replacement housing in the housing market area within a rental range equal to the range which the tenants have paid as detailed in a rental report or within a price range which is equal to or less than thirty percent of the income range of each household to be displaced as a result of the conversion, whichever is higher. In addition, replacement housing must be shown to meet any special needs, which are presently available in the project, of displaced tenants such as facilities for the handicapped, elderly, households with children, and availability of public transportation for the elderly or resident buyers who are temporarily displaced pending completion of improvements to the units being purchased. If the sufficient comparable replacement housing is unavailable a developer may meet the above requirements through the provision of mitigating factors to diminish the number and/or aid relocation of displaced tenants within the project. Said mitigating measures may include but are not limited to discounting the project units to tenant buyers, offering a moving allowance, extending leases, or providing below market rate units.

21. Tenant Protection Provisions. The developer shall indicate he or she has provided the following:

a. Lifetime Leases to Seniors and Handicapped. The developer shall grant lifetime leases to all tenants sixty-two years of age and older and/or handicapped. Such leases, to commence no later than the date of issuance of the final subdivision public report, shall be subject to the following conditions:

i. Tenants shall have the option of cancelling the lease at any time upon thirty days’ written notice to the owner;

ii. Tenants cannot be evicted except for just cause;

iii. Right of occupancy shall be nontransferable;

iv. The first years’ base monthly rent for the unit shall be set at no more than the rent existing on the unit one year prior to the filing of the tentative map or tentative parcel map increased by no more than one hundred percent of the percentage increase in the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland Metropolitan Area, All Items Index (Bay Area CPI) from the date one year prior to the filing of the tentative map or tentative parcel map to the effective date of the lifetime lease;

v. Subsequent rent adjustments, if any, may be made no sooner than one year from the effective date of the lifetime lease, shall be limited to no more than one per year, and the percentage increase in rent shall not exceed one hundred percent of the percentage increase in the Bay Area CPI for the most recent twelve-month period;

vi. Except as provided hereinabove, terms and conditions of the lifetime lease shall be the same as those contained in tenant’s current lease or rental agreement.

b. Families with School Age Children. Families with minor children shall be granted lease extensions until thirty days after the expiration of the current school session.

c. Relocation Assistance. The developer shall provide monetary relocation assistance, equal to a minimum of two months rent, to nonpurchasing tenants, apportioned equally among the number of tenants in each unit.

d. Low and Moderate Income Housing. Ten percent of the units proposed for conversion shall be set aside for qualified low and moderate income rental or purchase or to the city or any such entity designated by the city or one percent of the gross sales must be contributed to the city. If rented, the developer shall indicate those units to remain as rentals and the methods of rent increases to ensure the availability of the units to remain as low and moderate income housing. If purchased, prices are not to exceed three times the annual median income for low and moderate income households as currently defined by San Mateo County. If the tenant does not purchase the unit, the subdivider must make the unit available at that price to qualified low or moderate income households or a nonprofit housing agency or authority. The developer shall provide deed restrictions to ensure that any low or moderate income household which purchases a dwelling pursuant to this section shall grant a ninety day right-of-first-refusal to the city or any such other entity that at a future time may be designated by the city, to purchase the dwelling at a price based on the last purchase price plus the cost of any improvements paid for by the owner, plus an increase proportionate to the increases in the housing component of the Bay Area Cost of Living Index, U.S. Department of Labor over the intervening time period. The city or its designated agency shall reconvey such unit to other qualified low or moderate income purchasers if the right to purchase is exercised by the city or its designated agent. If the unit is not sold within twelve months to low or moderate income households or the city or its designated agent, the developer may sell to the general public at an unrestricted price.

22. Further Necessary Information. The developer shall provide any other information which the planning commission or planning department determines is necessary to evaluate the proposed project.

C. Waiver of Application Requirements. The planning director may waive the submission of certain factual items in Section 17.76.040 if it is demonstrated that such information is not available and cannot be obtained. The planning director may waive or grant specific exceptions to any of the requirements of Section 17.76.040 if he/she determines that substantial compliance is not feasible under all of the particular circumstances, as deemed appropriate by the planning director.

D. Public Hearings. Applications for the tentative map, use permit and other required city approvals, as well as detailed site improvements should be submitted to the city. City staff will make a recommendation to the planning commission who will hold a public hearing on the project to approve or deny the application. The commission’s action on an application may be appealed to or is subject to being called up by the city council. The city council would then hold a public hearing on the application to make a final determination.

E. Buyer Protection. The developer shall furnish each prospective purchaser of a unit, a true copy of the conditional use permit issued under this part and a copy of each of the following documents:

1. Property report;

2. Structural pest control report;

3. Property and structural report and building department report;

4. Building history report;

5. Statement of compliance (Form 643) pursuant to 10 Cal. AD. Code, Section 2792.9, or its successor, relating to operating and maintenance funds during start-up;

6. Soils report as determined in each case by the planning director;

7. The planning director’s letter certifying compliance.

F. Letter Certifying Compliance. The planning director shall cause a final inspection of all buildings and structures to be made, upon request by the developer, to determine that the requirements of this section have been fulfilled. The building official shall then mark the inspection report to show the corrections, repairs and replacements which have been made. If complete, the planning director will cause to be issued a letter certifying compliance with all of the conditions and approvals and with this chapter and authorize sale and/or occupancy of said units. No building or unit applied for under this part shall be sold without said letter certifying compliance and approving occupancy. (Ord. 214 § 1 (part), 1981)