Chapter 16.90
COMMON INTEREST DEVELOPMENT CONVERSIONS
Sections:
16.90.020 Development review required.
16.90.030 Application requirements.
16.90.040 Physical standards for condominium conversions.
16.90.060 Notice to new tenants.
16.90.070 Effect of conversion on the City’s very low, low and moderate income housing supply.
16.90.010 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 by the City Council prior to the effective date of the ordinance codified in this chapter, or where the conversion involves a limited equity housing cooperative, as defined in Section 33007.5 of the Health and Safety Code. All provisions, conditions and further definitions of condominium development as included in the California Civil Code, Government Code, Revenue and Taxation Code, and Business and Professions Code shall apply to the divisions of real property as permitted herein. (Ord. 1091 § 5, 1996)
16.90.020 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 of PMC Title 15, 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 or a major modification to a previously approved conditional use permit. (Ord. 1091 § 5, 1996)
16.90.030 Application requirements.
In addition to such other application requirements as are deemed necessary by the City, an application for conversion of a residential apartment unit shall not be accepted or considered complete unless the application includes all of the following information in a form acceptable to the Director, except where such requirement is waived or modified by the Director:
(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; when said element was replaced; the approximate date upon which said element will require replacement; the cost of replacing said element; and any variation or noncompliance of said element from the Zoning Ordinance in effect at the time the application is filed with the City and building code in effect on the date that 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, groundwater and landslides in the vicinity of the project and a statement regarding any known evidence of soils 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 vehicular access areas within the project; an indication of appropriate responsibilities 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 tenant 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 Director;
(G) Signed copies from each tenant of notice of intent to convert, as specified in PMC § 16.90.050 (Tenant provisions). 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 the legal requirements for service by mail;
(H) Any other information which, in the opinion of the Director, 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 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 developer shall provide each purchaser with a copy of all submittals (in their final acceptable form) required by Subsections (A) through (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 developer 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 Division:
(1) Name, address and phone number of homeowners’ association;
(2) Actual sale 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 Division for review by any interested persons until the conclusion of the conversion process. The report shall be referenced in the subdivision report to the Planning Commission. (Ord. 1614 § 4 (Exh. I), 2023; Ord. 1091 § 5, 1996)
16.90.040 Physical standards for condominium conversions.
(A) Adequate Physical Condition. To achieve the purpose of this Chapter, the Planning Commission shall require that all condominium conversions conform to the PMC, including the Zoning Ordinance, 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 PMC, the following will be required:
(1) Prior to scheduling the tentative map for a public hearing, an inspection shall be conducted by the code enforcement division to determine project-wide conformance with the Zoning Ordinance and other applicable chapters of the PMC. A report of any violations shall be included in the staff report to the Planning Commission. 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 Division of Building and Safety and Planning Division. Such inspection shall be made to ensure compliance with all applicable conditions of approval as specified in the tentative map and Conditional Use Permit approval. 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 Planning Commission 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 PMC Title 15 (Building and Construction) in effect on the date that the last building permit was issued for the subject structure or structures except as herein provided.
(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 fire protective appliances shall be properly installed and maintained in an operable condition at all times.
(4) Parking. Each unit shall be provided parking pursuant to PMC Chapter 17.87 (Off-Street Parking and Loading).
(5) Sound Transmission.
(a) Shock Mounting of Mechanical Equipment. All permanent mechanical equipment such as motors, compressors, pumps and compactors which is determined by the City to be a source of structural vibration or structure-borne noise shall be shock mounted with inertia blocks or bases and/or vibration isolators in a manner approved by the Building Official.
(b) Noise Standards. The structure shall conform to all interior and exterior sound transmission standards of PMC Title 15 (Buildings and Construction). In such cases where present standards cannot reasonably be met, the Planning Commission 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 150 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 Planning Commission, 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 of 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 pursuant to approved landscape plans. If a significant amount of new landscaping is required, revised/new landscape plans shall be submitted and approved by the Planning Division as part of the entitlement. Such plans shall be subject to all applicable City ordinances including, but not limited to, PMC Chapter 14.05 (Water Efficient Landscape).
(10) Condition of Equipment and Appliances. The developer 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 developer relinquishes control over management of the development, pursuant to the covenants, conditions and restrictions, the developer 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 developer 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, landscaped areas, and additional elements as required by the Planning Division shall be refurbished and restored as necessary to achieve a degree of appearance, quality and safety consistent with applicable City standards. The developer 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 Commission approval.
(12) Long-Term Reserves. Prior to approval of the final map, the developer 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 homeowner’s assessment for each dwelling unit, or an amount as otherwise required by law.
(13) Any request for modification from these standards shall be reviewed by the Planning Commission and shall be approved only if the Planning Commission determines, based on evidence in the public hearing record, that adequate and equitable access to all facilities, utilities, amenities, safety measures and reserves will be provided to the owner of each dwelling unit, and that there will be no detrimental impacts on any homeowner or resident of the project by the granting of such modifications. (Ord. 1614 § 4 (Exh. I), 2023; Ord. 1408 § 8, 2010; Ord. 1091 § 5, 1996)
16.90.050 Tenant provisions.
(A) Notice of Intent. As provided in 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 Government Code Section 66452.9 and approved by the Planning Division and shall inform the tenants of all rights provided under this Chapter and State law.
(B) Notice of Public Report. As provided in 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 Division. 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 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 Section 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 Government Code Section 66427.1(d), any present tenant shall be given notice of an exclusive right to contract for the 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) Vacation of Units. Each tenant not in default under the obligations of the rental agreement or lease under which he occupies his unit, shall be given 180 days’ written notice of the anticipated date required to vacate the unit and when the 180-day period will begin. 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 of service by mail.
(F) Rent Increases. As to nonpurchasing residents who are lower income households, as defined in Health and Safety Code Section 50079.5, the monthly rent, including any applicable fees or charges for use of any pre-conversion amenities, may increase from the pre-conversion rent by an amount equal to the average monthly increase in rent in the four years immediately preceding the conversion, except that in no event shall the monthly rent be increased by an amount greater than the average monthly percentage increase in the Consumer Price Index for the most recently reported period. This provision shall become effective upon application acceptance and remain valid until the unit is sold or until the subdivision is denied, withdrawn or reverted to acreage. Units which have been vacated shall not be subject to control provided that potential tenants have been informed, in writing, that the unit is being considered for conversion. The property owner may seek additional rent adjustments by application to the City Council in the event the property owner believes that the adjustment provided above does not permit a fair return on investment.
(G) Relocation Assistance. The subdivider shall provide relocation assistance equal to the reasonable cost of relocation to any tenant household living in any unit at any time prior to the tentative map approval, provided such tenant is not otherwise in default of the rental agreement or lease or that notice of intent to move has been given prior to receipt of notification from the developer of his intent to convert. The reasonable cost of relocation shall be determined by the Planning Commission and shall be based on the cost of physically moving the tenant’s property and belongings to a comparable apartment within the immediate vicinity, payment for first and last month’s rent and any security deposit at the new location, and a lump sum payment based on consideration of any differential between rental rates from the present location to the comparable apartment unit. If the tenant elects to purchase the unit, such relocation assistance may be applied as a credit to the cost of the unit. A tenant moving in after tentative map approval will not be required to be provided with moving expenses; provided, that the potential tenant, prior to signing an agreement or lease, has signed the notice as described in PMC § 16.90.060 (Notice to new tenants). The developer shall also provide each tenant with a current list of other comparable rental properties available in the Antelope Valley portion of North Los Angeles County, and shall periodically update such list as required by the Director.
(H) The developer 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 Division of Building and Safety. (Ord. 1614 § 4 (Exh. I), 2023; Ord. 1408 § 8, 2010; Ord. 1091 § 5, 1996)
16.90.060 Notice to new tenants.
After submittal of the tentative map and conditional use permit 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 Conditional Use Permit with the City of Palmdale 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 State 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 Sections 66451.3 and 66452.5 of the Government Code, and you have the right to appear and the right to be heard at such hearing.
______________________________
(Signature of owner or owner’s agent)
____________
(Dated)
I have received this notice on ______________ (date)
_________________________________
Prospective tenant or tenants’ signature(s)
(Ord. 1091 § 5, 1996)
16.90.070 Effect of conversion on the City’s very low, low and moderate income housing supply.
In order to reduce the effect of conversions on the City’s housing supply and to minimize the displacement of tenants, the number of conversions shall be limited to no more than five percent of the City’s potentially convertible rental stock in any one calendar year.
Conversion applications will be processed in the order that submitted applications are deemed completed. A proposed project that is larger than the permitted number of units in a given year, if approved, will be considered to have used the permitted number for as many future years as necessary.
The potentially convertible rental stock will be defined as follows: the number of rental units in buildings of three or more units, as determined by the most recent United States census, plus any new rental units constructed since the census, minus any units which have been demolished or which have received tentative map approval to convert since the census.
Once the yearly limit has been reached, a project may be approved for conversion only if the Planning Commission makes one or more of the following findings:
(A) The developer will provide for a significant increase in housing for low and moderate income households or senior citizen households over and above the provisions of this chapter;
(B) The developer will provide for the construction of new rental housing;
(C) The developer will donate an acceptable site or acceptable amount of funds to the City for construction of new rental or senior citizen housing;
(D) The need and demand for low cost home ownership to be provided for by this project will outweigh the detrimental effects caused by further reduction of the rental stock of low to moderate income housing. (Ord. 1091 § 5, 1996)
16.90.080 Findings.
Prior to approval of the tentative map and Conditional Use Permit, the Planning Commission shall hold a public hearing. Notice of the hearing shall be given pursuant to Government Code Section 65090, PMC § 17.20.020 (Notification procedures) and any other applicable City ordinance and policy. A copy of any staff report shall be served by the developer on each tenant of the subject property at least three days prior to the 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 approve a tentative map for conversion of apartment units unless the Planning Commission finds that:
(A) All provisions of this Chapter are met;
(B) The proposed conversion is consistent with the goals, objectives, policies, general land uses and programs specified in the Palmdale General Plan including the housing element, and with any applicable specific plan;
(C) The proposed conversion will conform to the PMC in effect at the time of tentative map and Conditional Use Permit approval, except as otherwise provided in this Chapter;
(D) 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;
(E) The proposed project will not convert, during the current calendar year, more than five percent of the potentially convertible rental units in Palmdale for the current calendar year except as otherwise provided in this Chapter; and
(F) There is no evidence in the public hearing record to indicate that vacancies in the project were intentionally increased for the purposes of preparing the project for conversion; and
(G) 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. 1614 § 4 (Exh. I), 2023; Ord. 1091 § 5, 1996)