Chapter 17.50
RESIDENTIAL CONDOMINIUM CONVERSIONS
Sections:
17.50.010 Purpose.
17.50.015 Definitions.
17.50.020 Application requirements.
17.50.030 Procedures.
17.50.040 Standards for residential condominium conversion.
17.50.050 Tenant provisions.
17.50.060 Repealed.
17.50.070 Findings.
17.50.010 Purpose.
The purpose of this chapter is to:
A. Establish criteria for the conversion of existing multiple-family rental housing to a condominium;
B. Promote the concept of home ownership and increase the amount of owner-occupied housing affordable by all economic segments of the community;
C. Ensure that converted housing achieves a high degree of appearance, quality, and safety and is consistent with the goals of the city;
D. Provide a reasonable balance of ownership and rental housing and a variety of choices of tenure, type, price and location of housing;
E. Maintain a supply of rental housing for low-income and moderate-income persons;
F. Reduce the impact of conversion on residents in rental housing who may be required to relocate due to the conversion of apartments to condominiums by providing procedures for notification and adequate time and assistance for such relocation; and
G. Assure that purchasers of converted housing have been properly informed as to the physical condition of the structure which is offered for purchase. (Ord. 752 § 32-10.1, 2000; 1991 code § 32-10.1)
17.50.015 Definitions.
In this chapter, terms have the meaning set forth in PHMC Chapter 17.10, Definitions. In particular, see the definitions for condominium, conversion and department. (Ord. 821 § 6, 2007)
17.50.020 Application requirements.
In addition to the other subdivision requirements and procedures, a conversion is subject to the requirements in this section. An application for approval of a tentative map for the condominium subdivision shall be accompanied by the following items:
A. Physical elements report. A report on the physical element of each structure and facility, which shall include, but not be limited to, the following:
1. A report detailing the structural condition of each element of the property, including foundation, electrical, plumbing, utilities, walls, ceilings, windows, recreational facilities, sound transmission of each building, mechanical equipment, parking facilities, and appliances. Regarding each element, the report shall state, to the best knowledge or estimate of the applicant, when the element was constructed or installed; when the element was last replaced; the approximate date upon which the element will require replacement; the cost of replacing the element; and any variation of the physical condition of the element from the zoning and building code in effect on the date that the last building permit was issued for the structure. The report shall identify each known defective or unsafe element and set forth the proposed corrective measures to be employed;
2. A report from a licensed structural pest control operator, approved by the city, on each structure and each unit within the structure;
3. A report on the condition of the common area improvements, including landscaping, lighting, utilities and streets;
4. A report on any known soil and geological conditions regarding soil deposits, rock formation, faults, groundwater, and landslides in the vicinity of the project, and a statement regarding any known evidence of soils problems relating to the structure. Reference shall be made to any previous soils report for the site and a copy submitted with the report; and
5. A statement of repairs and improvements to be made by the subdivider necessary to refurbish and restore the project to achieve a high degree of appearance, quality and safety.
B. Site plan. A plot plan of the project, including the location and sizes of structures, parking layout and access areas, sewer, water and storm drains, and any other information required by the zoning administrator.
C. CC&Rs. A declaration of covenants, conditions and restrictions which would be recorded and would apply to each owner of a condominium unit within the project. The declaration shall include, but not be limited to, pertinent information regarding the conveyance of units and 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; and an indication of appropriate responsibilities for maintenance of all improvements and utility systems for each unit. The city has the right to review and approve the CC&Rs to ensure that (1) the appropriate conditions of approval are included in them, and (2) those provisions reflecting the city’s conditions may not be amended without city approval.
D. Project characteristics. Specific information concerning the 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 type of unit for either the previous five years, or since construction, whichever is less;
3. Monthly vacancy rate for each month during either the preceding two years, or since construction, whichever is less;
4. Characteristics of existing tenant households, including family size, length of residence, age of tenants, and whether receiving federal or state rent subsidies;
5. Estimated sales price range of units;
6. Proposed homeowners’ association fee;
7. Financing available; and
8. Names and mailing addresses of all tenants.
When the subdivider can demonstrate that this information is not available, this requirement may be modified by the zoning administrator.
E. A signed copy from each tenant of notice of intention to convert as specified in PHMC § 17.50.050.A or evidence that a certified letter of notification was sent to each tenant for whom a signed copy of the notice is not submitted. (Ord. 752 § 32-10.2, 2000; 1991 code § 32-10.2)
17.50.030 Procedures.
A. Subdivision procedures. Under Government Code section 66426, a condominium conversion is treated as a subdivision subject to the provisions of the Subdivision Map Act and this title. The city council is the approving body for a residential condominium conversion.
B. Acceptance of reports. The final form of the physical elements report and other documents required under PHMC § 17.50.020 shall be as approved by the city. The reports in their accepted form shall remain on file with the zoning administrator for review by the public. They are referred to collectively in this section as “the reports.”
C. Copy to buyers. The subdivider shall provide each purchaser with a copy of the reports (in their final accepted form), except the information required by PHMC § 17.50.020.D and E, before the purchaser executes an agreement to purchase a unit in the project, and the developer shall give the purchaser sufficient time to review the reports. A copy of the reports shall be made available at all times at the sales office and shall be posted at various locations, as approved by the city, at the project site.
D. Notice to tenants and prospective tenants. Before tentative map approval, the planning commission shall hold a public hearing. In addition to all other notices required by the Subdivision Map Act and this title, the subdivider shall give notice prior to filing the tentative map to prospective tenants and tenants in the manner provided by Government Code sections 66452.8 and 66452.9 and PHMC § 17.50.050.
E. Inspection and fees.
1. The premises to be inspected include structures, common areas, site improvements, public improvements and other related facilities. The purpose of the inspection is to develop a list of deficient conditions that may exist by reason of noncompliance with the municipal code, and to have the deficient items refurbished and restored in accordance with PHMC § 17.50.040.
2. Before submitting the final map, the owner shall request that an inspection of the premises be made by the zoning administrator for conformance to PHMC § 17.50.040.
3. A project inspection shall be made by the chief building official, the zoning administrator and the city engineer. A deficiency list shall be compiled during the inspection of all corrections required to conform to the requirements of this section, PHMC § 17.50.040 and other code requirements.
When the final inspection is complete, a copy of the deficiency list shall be transmitted to the subdivider. All deficiencies must be corrected to the satisfaction of the city before filing of the final map or parcel map. When plans for corrective work are required, they shall be as approved by the appropriate city official listed above before filing of the final map or parcel map.
4. The city shall charge the usual fees, if applicable, or an hourly fee (estimated actual hourly cost to the city) for the inspection and processing. The owner shall post a cash deposit in an amount equal to the estimated cost of inspection. The deposit will be applied towards the inspection fee with any refund or balance due to be resolved before the approval of the final map by the city council. Any balance due shall be paid before recordation of the final map. (Ord. 821 § 6, 2007; Ord. 752 § 32-10.3, 2000; 1991 code § 32-10.3)
17.50.040 Standards for residential condominium conversion.
The following standards apply to a residential condominium conversion. These standards must be satisfied, or security provided in a form approved by the city attorney, before the final map is approved.
A. Preserving rental housing. No residential condominium conversion is allowed if:
1. The percentage of rental apartments to the total city housing stock falls below 20%; or
2. The rental apartment vacancy rate in the city is below 5%.
The apartment vacancy rate shall be determined by a survey of existing apartments within three months after the application is deemed complete. The survey shall include a representative sample of six apartment complexes of between 10 to 99 units and four apartment complexes of 100 or more units. The city staff shall complete the survey at the applicant’s expense.
B. Building regulations. The project shall conform to the applicable standards of the city building code in effect at the time the last building permit was issued.
C. Fire prevention.
1. Fire-warning systems. Each living unit shall be provided with a fire-warning system conforming to the adopted building code standards in type and locations.
2. Maintenance of fire protection systems. All fire hydrants, fire alarm systems, portable fire extinguishers and other fire-protective appliances shall be retained in an operable condition at all times.
D. Sound transmission.
1. Vibration transmission. All permanent mechanical equipment (such as motors, compressors, pumps and compactors) which is determined by the chief building official to be a source of structural vibration or structural-borne noise shall be vibration isolated with inertia blocks or bases or vibration isolator springs in a manner approved by the chief building official.
2. Noise standards. The structures shall conform to all interior and exterior sound transmission standards of the city building code. Where present standards cannot reasonably be met, the city council may require the applicant to notify potential buyers of the noise deficiency currently within the unit.
E. Utility metering. Each dwelling unit shall be separately metered for gas and electricity.
F. Open space. Total usable open space on a site having three or more dwelling units shall be at least 200 square feet per dwelling unit. This requirement shall be met by providing private open space, shared open space or a combination of the two.
1. Private open space. To satisfy the open space requirement, private open space must be on a patio or balcony, within which a horizontal rectangle inscribed within it has no dimension less than six feet.
2. Shared open space. To satisfy the open space requirement, shared open space must be provided by interior side yards, patios, and terraces, each designed so that a horizontal rectangle inscribed within it has no dimension less than 10 feet. The open space must be open to the sky, and may not include driveways or parking areas, or area required for front or corner side yards.
If the subdivider can demonstrate that this standard can not reasonably be met, the city council may modify this standard if it finds that: (1) strict compliance is not feasible because of the physical constraints of the existing site or building; and (2) the modification will not have a detrimental effect on the site or surrounding properties.
G. Landscaping. Landscaping shall be provided in accordance with the zoning ordinance for townhouse and condominium projects (PHMC § 18.20.030). A minimum of 50% of the required front yard shall be maintained as landscaped area. If the subdivider can demonstrate that this standard cannot reasonably be met, the city council may modify this standard if it finds that: (1) strict compliance is not feasible because of the physical constraints of the existing site or building; and (2) the modification will not have a detrimental effect on the site or surrounding properties.
All landscaping shall be restored or new landscaping shall be installed to achieve a high degree of appearance and quality. Provisions shall be made for continuing maintenance of all landscaped areas. Existing landscaping is subject to review and approval by the zoning administrator. The design of any new landscaping is subject to review and approval of the architectural review commission. The property owner shall be required to enter into and record a landscape maintenance agreement.
H. Private storage space. Each unit shall have a minimum of 200 cubic feet with no less than 24 square feet of enclosed, weatherproofed and lockable private storage space in addition to guest, linen, pantry, and clothes closets customarily provided. The space shall be provided in any location approved by the zoning administrator, but shall not be divided into two or more locations. If the subdivider can demonstrate that this standard cannot reasonably be met, the city council may modify this standard if it finds that: (1) strict compliance is not feasible because of the physical constraints of the existing site or building; and (2) the modification will not have a detrimental effect on the site or surrounding properties.
I. Laundry facilities. A laundry area shall be provided in each unit unless the city council approves a common laundry area. If a common laundry area is provided, it shall consist of not less than one automatic washer and one automatic dryer for each five dwelling units or fraction thereof. If the subdivider can demonstrate that this standard cannot reasonably be met, the city council may modify this standard if it finds that: (1) strict compliance is not feasible because of the physical constraints of the existing site or building; and (2) the modification will not have a detrimental effect on the site or surrounding properties.
J. Parking. Off-street parking shall be provided as required by the zoning ordinance for townhouse and condominium projects (PHMC § 18.55.030).
K. Refurbishing and restoration. Each main building, structure, fence, patio enclosure, carport, accessory building, sidewalk, driveway, landscaped area, utilities, and additional element as required by the zoning administrator shall be refurbished and restored as necessary to achieve a high degree of appearance, quality and safety. The refurbishing and restoration is subject to review and approval by the zoning administrator.
L. Screening of mechanical units. Screening of mechanical units and utility meters shall be provided as required by the zoning ordinance (PHMC § 18.50.090).
M. Refuse storage areas. Refuse storage areas shall be screened on all sides by a six-foot high solid wood or masonry wall or located within a building. However, this requirement does not apply to a duplex.
N. Reserves for capital maintenance replacement. Before approval of the final map, the subdivider shall provide to the zoning administrator evidence of the establishment of a fund in the name of the homeowners’ association. The funds shall be earmarked for long-term reserves for capital and maintenance replacement and shall be equal to twice the estimated monthly assessment for all dwelling units.
O. Affordable housing. All residential condominium conversions shall provide affordable housing in conformance with the inclusionary housing requirements, PHMC § 18.20.060. (Ord. 821 § 6, 2007; amended during 2005 recodification; Ord. 752 § 32-10.4, 2000; 1991 code § 32-10.4)
17.50.050 Tenant provisions.
A. Notice of intention. Beginning at least 60 days before the filing of a tentative map, the subdivider shall give notice of intention to convert to each tenant and prospective tenant as provided in Government Code section 66452.8 and 66452.9. Evidence of receipt by each tenant and prospective tenant shall be submitted with the tentative map. The form of the notice shall be as approved by the zoning administrator and shall contain not less than the following:
1. The information required by Government Code sections 66452.8 or 66452.9;
2. Name and address of current owner;
3. Name and address of the proposed subdivider;
4. Approximate date on which the tentative map is proposed to be filed;
5. Approximate date on which the final map or parcel map is to be filed;
6. Approximate date on which the unit is to be vacated by nonpurchasing tenants;
7. Tenant’s right to purchase;
8. Tenant’s right of notification to vacate;
9. Relocation information;
10. Statement of no rent increases;
11. Provision for special cases, for example, senior citizens and low- and moderate-income tenants;
12. Provision of moving expense;
13. Deposit rebate;
14. Remodeling provisions; and
15. Other information as deemed necessary by the zoning administrator.
B. Tenant’s right to purchase. As provided in Government Code sections 66427.1(d) and 66459, a present tenant of a unit shall be given a nontransferable right of first refusal to purchase the unit occupied at a price no greater than the price offered to the general public. The right of first refusal shall extend for at least 90 days from the date of issuance of the subdivision public report or beginning of sales, whichever is later.
C. Senior citizens. A tenant household in residence at the time a completed tentative map application is accepted by the zoning administrator, in which the head of the household or spouse is age 60 or older, is considered a senior citizen tenant and shall be offered a lifetime lease at the time the final map is approved.
The annual rent increase for a senior citizen tenant with a lifetime lease may not exceed 75% of the latest annual average percentage increase of the residential rent component of the Consumer Price Index-San Francisco-Oakland SMSA (CPI). The senior citizen tenant shall be informed of changes in this index at the time a rent increase is imposed. The starting rent shall be the rent at the time of tentative map application. The lease form shall be submitted to the zoning administrator for review before final map approval.
D. Low- and moderate-income tenants. A tenant household in residence at the time a completed tentative map application has been accepted by the zoning administrator, which meets the limits of the HUD Section 8 program, is considered a low- or moderate-income household and shall be offered, at a minimum, a three-year lease beginning at the time the final map is approved.
The annual rent increase for a low- or moderate-income tenant under this subsection shall not exceed 75% of the latest annual average percentage increase of the Residential Rent Component of the Consumer Price Index-San Francisco-Oakland SMSA (CPI). A low or moderate income tenant shall be informed of the changes in this index at the time an increase is imposed. Starting rent shall be the rent at the time of tentative map application. The lease form shall be submitted to the zoning administrator for review prior to final map approval.
E. Tenant relocation plan – Assistance.
1. Relocation and assistance plan. The subdivider shall submit a tenant relocation and assistance plan with the tentative map application. The plan shall include the information required under this subsection E.
2. Vacation of units. Each nonpurchasing tenant, not in default under the rental agreement or lease, shall have not less than 180 days from the date of receipt of notification from the subdivider of the intent to convert, or from the filing date of the final subdivision map or parcel map, whichever date is later, to find substitute housing and to relocate. A nonpurchasing tenant who: (a) is handicapped, or (b) has minor children in school, or (c) is age 60 or older (whether publicly subsidized or not) and does not accept a lifetime lease, living in any unit at the time a completed tentative map application is accepted by the zoning administrator, shall be given at least an additional six months after approval of the final map in which to find suitable replacement housing.
3. Other available rentals. The subdivider shall provide each tenant not wishing to purchase a unit or not accepting a lifetime or special three-year lease with up-to-date information of available apartments of comparable size and price, and located within a 15-mile radius of the apartment to be converted, and shall provide transportation to assist each elderly or handicapped tenant in finding alternative housing.
4. No increase in rents. A tenant’s rent shall not be increased during the period between the filing of the tentative map and the tenant’s relocation or acceptance of a lifetime or special three-year lease, or the denial or withdrawal of the map.
5. Deposits. Each security, cleaning, or other deposit made as a condition of tenancy shall be returned to the tenant before termination of tenancy, unless it is shown that damage has occurred to the unit beyond the scope of repairs or remodeling contemplated in the conversion process, or unless the landlord is otherwise entitled to the deposit.
6. Required financial assistance. The subdivider shall provide moving expenses of two times the monthly rent to any tenant household living in a unit at the time a completed tentative map application is accepted by the zoning administrator.
The subdivider shall pay these moving expenses to an eligible tenant within 14 days after relocation.
In the case of a tenant receiving financial assistance under HUD regulations, monthly rent is defined to mean the gross total amount of rent which the subdivider receives, both from the tenant and from the local public agency administering the HUD program.
F. Remodeling. No remodeling, planned as part of the conversion, shall be performed in a unit still occupied by a nonpurchasing tenant, without written permission. (Ord. 752 § 32-10.5, 2000; 1991 code § 32-10.5)
17.50.060 Effect of proposed conversion on the city’s low- and moderate-income housing supply.
Repealed by Ord. 821. (Ord. 752 § 32-10.6, 2000; 1991 code § 32-10.6)
17.50.070 Findings.
The city council may not approve an application for condominium conversion unless it finds in the approving resolution that the proposed conversion:
A. Conforms to the requirements of this chapter;
B. Is consistent with the Pleasant Hill general plan and current zoning regulations;
C. Satisfies the requirements of Government Code section 66427.1 (regarding notice to tenants). (Ord. 821 § 6, 2007; Ord. 752 § 32-10.7, 2000; 1991 code § 32-10.7)