Chapter 9
CONDOMINIUM CONVERSIONS
Sections:
13-9.02 Residential conversions dependent upon vacancy factors.
13-9.03 Requirements and procedures.
13-9.04 Physical elements report.
13-9.05 Additional submittals.
13-9.06 Acceptance of reports.
13-9.09 Physical standards for condominium conversions.
13-9.10 Specific physical standards.
13-9.11 Affordable housing ordinance.
13-9.12 Required notices to tenants.
13-9.14 Notice to new tenants.
13-9.16 Mobile home park conversion.
13-9.01 Purpose.
The purpose of this chapter is:
(a) To establish criteria for the conversion of the existing multiple-family rental housing to condominiums, community apartments, stock cooperatives and any other subdivision which is a conversion of existing rental housing.
(b) To reduce the impact of such conversions on residents in rental housing who may be required to relocate due to the conversion of apartments to condominiums by providing for procedures for notification and adequate time and assistance for such relocation.
(c) To assure that purchasers of converted housing have been properly informed as to the physical conditions of the structure which is offered for purchase.
(d) To ensure that converted housing achieves a high degree of appearance, quality and safety and is consistent with the goals of the City.
(e) To provide a reasonable balance of ownership and rental housing in Watsonville and a variety of choices of tenure, type, price and location of housing.
(f) To maintain a supply of rental housing for low- and moderate-income persons.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.02 Residential conversions dependent upon vacancy factors.
No condominium conversion may be approved if the rental vacancy rate in the City is less than five (5%) percent.
For the purposes of this chapter, a “condominium conversion” is the conversion of any existing building into a common interest development as defined in Civil Code Section 1351 (including a residential condominium, planned development, stock cooperative, or community apartment project) or into any other ownership type in which an undivided interest in common in a portion of a parcel is held together with a separate interest in space.
For the purposes of this chapter, “rental vacancy rate” shall mean the number of vacant multiple dwelling units (defined as units located in structures containing three (3) or more units) which are offered for rent or lease in the City, shown as a percentage of the total number of multiple dwelling units in the City which are: (a) vacant multiple dwelling units offered for rent or lease in the City; and (b) occupied multiple dwelling units that are leased or rented in the City.
The rental vacancy rate shall be determined on an as-needed basis, when an application for a condominium conversion is submitted. The rental vacancy rate shall be determined by a survey of multiple dwelling units within the City, as defined in this section. The vacancy survey shall be initiated by the City, paid for by the applicant, and conducted by a source solicited through a request for proposals by the Community Development Department. The rental vacancy rate established by such a source shall be valid for a period of three (3) months.
Approvals of residential condominium conversions may be allowed up to the number of units that would maintain a rental vacancy rate of five (5%) percent or greater.
Two (2) existing single-family dwelling units or one (1) existing duplex on a single lot are exempt from the rental vacancy rate requirements, provided they meet all the other residential condominium conversion regulations.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.03 Requirements and procedures.
In addition to the requirements and procedures as set forth by Chapters 13-3 and 13-4, condominium conversions shall be subject to the additional requirements provided by this chapter, except that a limited equity housing cooperative, as defined in Section 33007.5 of the Health and Safety Code, shall be exempt from these additional requirements.
All tentative maps, tentative parcel maps, final maps, and parcel maps for all condominium conversions shall be processed in accordance with the procedures for tentative maps contained in Chapter 13‑4.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.04 Physical elements report.
A report prepared by a registered engineer, or architect, describing the physical elements of all structures and facilities shall be submitted with the tentative or tentative parcel map. The report shall include, but not be limited to, the following:
(a) A report detailing the structural condition of all elements of the property including foundations, electrical, plumbing, utilities, walls, roofs, ceilings, windows, recreational facilities, sound transmission of each building, 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 of the physical condition of said element from the current zoning and from the City housing code and City 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 high degree of appearance and safety.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.05 Additional submittals.
(a) A copy of the proposed covenants, conditions, and restrictions (hereafter called “restrictions”) for all condominium projects shall be submitted to the Community Development Director prior to approval of the final map by the City Council. A copy of the restrictions, as approved by the State Department of Real Estate, shall be provided to the Community Development Director within ten (10) days of their recordation. The restrictions shall provide for the following:
(1) Ongoing Maintenance. There shall be adequate provision for ongoing maintenance of buildings, landscaping, and other common area facilities. When warranted by the size (sixteen (16) units or more) or nature of the project, the restrictions shall provide for responsible on-site representation of the owner’s association;
(2) Capital Reserves. There shall be adequate provision for long-term capital replacement reserves for roofing, painting, and private streets;
(3) Power of Enforcement. The restrictions shall provide unit owners with an enforceable right to have the owners’ association maintain adequate reserves for capital replacement, adequate maintenance, and adequate performance of other owners’ association duties specified in the restrictions. The restrictions shall provide the owner’s association with explicit powers to control and correct nuisances and to make and enforce rules, and the association may delegate responsibility for enforcement of same to an officer of the association or to a professional manager;
(4) Assessment Restrictions. Restrictions on assessment levels which may impair the ability of the owners’ association to carry out needed capital replacement or ongoing maintenance shall not be permitted;
(5) Lease Restriction. The restrictions shall provide that the owner’s association be given notice of any rental or lease of any unit, and the name(s) of the tenant(s) or lessee(s). Notice shall be given prior to occupancy by a tenant or lessee. The restrictions shall provide that tenants and lessees shall agree, by terms of the lease or otherwise, to comply with owners’ association rules and that the absentee owner shall be liable for any damages or penalties resulting from action by a tenant or lessee of that owner’s unit;
(6) Occupancy Limitations. The restrictions shall include limitations on the number of persons who can occupy any given unit on a permanent basis;
(7) Garage Conversions. The restrictions shall forbid the conversion of any required parking areas to living, storage, or other nonparking floor space in any project;
(8) Insurance. The restrictions shall require that all units shall be subject to a policy of fire insurance. It is preferred that the restrictions authorize the owners’ association, at its discretion, to obtain a blanket fire insurance policy for all units and pay for such policy through the monthly assessments;
(9) Fire Access. The restrictions shall impose a duty upon the board of directors of the owners’ association to make and enforce rules against obstruction of designated fire access lanes;
(10) Public Service Easements. When not otherwise provided for, the restrictions shall provide the owners’ association with the power to convey utility easements through the common area to third parties as necessary to service the project unless alternate arrangements are approved by the Community Development Director.
(b) A report which provides 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 type of unit for previous two (2) years;
(3) Monthly vacancy rate for each month during preceding two (2) 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 units;
(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 Community Development Director.
(c) Signed statement from each tenant attesting to their receipt of the notice of intent to convert required by Section 66452.18 of the Map Act. The subdivider shall submit evidence that a letter of notification was sent to each tenant for whom a signed statement attesting to receipt of said notice is not submitted. This requirement shall be deemed satisfied if such notices comply with the legal requirements for service by mail.
(d) Any other information which, in the opinion of the Community Development Department, will assist in determining whether the proposed project will be consistent with the purposes of this article.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.06 Acceptance of reports.
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 Community Development Department for review by any interested persons. The report shall be referenced in the staff report to the Planning Commission.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.07 Submittal of budget.
Prior to final or parcel map approval, the subdivider shall provide the City with a copy of the proposed budget for maintenance and operation of common facilities including needed reserves. The budget shall show estimated monthly costs to the owner of each unit, projected over a five (5) year period, or such time as is required by the Department of Real Estate. Such budget shall be prepared or reviewed and analyzed by a professional management firm, experienced with management of condominium complexes. The management firm shall submit a statement of its professional qualifications with the report.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.08 Copy to buyers.
The subdivider shall provide each purchaser with a copy of all submittals (in their final, acceptable form) required by this chapter prior to said purchaser executing any purchase agreement or other contract to purchase a unit in the project, and said 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 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.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.09 Physical standards for condominium conversions.
To achieve the purposes of this article, the City shall require that all condominium conversions conform to all provisions of the Watsonville Municipal Code in effect at the time of tentative or tentative parcel map approval except as otherwise provided in this article.
All provisions of this code must be met and violations corrected prior to the approval of the final or parcel map or, upon approval of the Community Development Department, an improvement agreement shall be signed and completion of the improvements shall be secured as provided in Chapter 13-7 to assure completion of such corrective work. An overall assessment of building condition shall be performed by the Community Development Director prior to tentative or tentative parcel map approval, and a report of violations specified in the staff report to the Planning Commission. A physical inspection of every unit to ensure compliance with the housing code shall be required prior to final or parcel map approval.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.10 Specific physical standards.
The Community Development Director shall require conformance with the standards of this section in reviewing the proposed condominium conversion.
(a) Building Regulations. The project shall conform to the applicable standards of the City housing code and shall be found to be in compliance with the City building code in effect on the date that the last building permit was issued for the subject structure or structures except as herein provided.
(b) Health and Safety.
(1) Ground-Fault Circuit Interrupters. Each bathroom in each living unit shall be provided with ground-fault circuit interrupters.
(c) Fire Prevention.
(1) Smoke Detectors. Each living unit shall be provided with approved detectors of products of combustion other than heat conforming to the latest UBC standards, mounted on the ceiling or wall at a point centrally located in the corridor or area giving access to rooms used for sleeping purposes;
(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) Shock Mounting of Mechanical Equipment. All permanent mechanical equipment such as motors, compressors, pumps, and compactors which is determined by the Building Official 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;
(2) Noise Standards.
(i) The structure shall conform to all interior sound-transmission standards of Chapter 35 (Appendix) of the Uniform Building Code in a manner approved by the Building Official;
(ii) The subdivision shall conform to all exterior noise standards of the general plan;
(iii) In such cases where present standards cannot reasonably be met by conditions of subdivision approval, the applicant shall be required to notify potential buyers of the noise deficiency currently existing within these units.
(e) Utility Metering. Each dwelling unit and common area shall be separately metered for gas, water, sewer and electricity. Utility services shall not pass through any unit except the unit for which the utility serves except for multistory air-space condominium conversions.
(f) Private Storage Space. Each unit shall have at least two hundred (200) 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 Community Development Department, but shall not be divided into two (2) or more locations. In such cases where the subdivider can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the City Council upon approval of the tentative or tentative parcel map.
(g) Laundry Facilities. A laundry area shall be provided in each unit; or if common laundry areas are provided, such facilities shall consist of at least one (1) automatic washer and one (1) dryer of equivalent capacity for every five (5) units of three (3) or more bedrooms; for every seven (7) two (2) bedroom units, and for every ten (10) one (1) bedroom units. In such cases where the subdivider can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the City Council upon approval of the tentative or tentative parcel map.
(h) Landscape Maintenance. All landscaping shall be restored as necessary and maintained to achieve a high degree of appearance and quality. If a significant amount of new landscaping is required, the landscape plan shall be subject to the Community Development Director’s approval.
(i) 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 one (1) year. At such time as the homeowners association takes over management of the development, 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 at least five (5) years. Prior to final or parcel map approval, the developer shall provide the City with a copy of warranty insurance covering equipment and appliances pursuant to this subsection.
(j) Refurbishing and Restoration. As a condition of the tentative map or parcel map approval, all main buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, landscaped areas, and additional elements, as required, shall be refurbished and restored as necessary to achieve a high degree of appearance, quality, and safety. These improvements shall occur prior to the approval of the final map. The developer shall provide to the homeowners association and/or purchaser a one (1) year warranty on all physical improvements required under this section. If substantial restoration is required, the design plans shall be subject to the Community Development Director’s approval.
(k) Long-Term Reserves. Prior to approval of the final or parcel map, the developer shall provide evidence to the City that a long-term reserve fund exists for replacement of common area capital facilities. Such fund shall equal two (2) times the estimated monthly homeowner’s assessment for each dwelling unit.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.11 Affordable housing ordinance.
Each condominium conversion shall either include the required number of affordable units, offered for sale at the prescribed price, or pay the affordable housing in-lieu fee as required and provided for by Chapter 14-46, Affordable Housing Ordinance.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.12 Required notices to tenants.
In addition to any public notice required for a tentative map or tentative parcel map, additional notice shall be given as required by Chapter 2 or Chapter 3 of the Subdivision Map Act and all other noticing provisions of the Subdivision Map Act for residential condominium conversions. Notice shall comply with the legal requirements for service by mail contained in Code of Civil Procedure Sections 1012, 1013, and 1013a or as otherwise required by law, or shall be made by personal delivery to each tenant or other person entitled to receive notice, confirmed by written acknowledgement of receipt of the notice. If a rental agreement was negotiated in Spanish, Chinese, Tagalog, Vietnamese, or Korean, all required notices to that tenant shall be issued in that language. The subdivider shall also provide any additional notice required by the Subdivision Map Act or other State or federal law. Copies of all required notices shall be submitted to the City, and the subdivider shall attest that all notices required by the Subdivision Map Act, this title, and otherwise have been provided to all tenants.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.13 Moving expenses.
The subdivider shall provide moving expenses of two (2) times the monthly rent for any tenant household living in any unit prior to the delivery of the notice of intent required by Section 66452.18 of the Map Act.
A tenant moving in after the delivery of the notice of intent will not be required to be provided with moving expenses unless they did not receive a copy of the notice of intent prior to providing a deposit or rent to the owner. Eligible tenants will receive moving expenses within fourteen (14) days after they relocate, except when the tenant has given notice of his intent to move prior to receipt of the intent to convert. The subdivider shall also provide all tenants with relocation assistance to identify comparable rental housing from the date of the notice of intent until each tenant relocates or decides to purchase a unit.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.14 Notice to new tenants.
Beginning at a date not less than sixty (60) days prior to the filing of a tentative map or tentative parcel map for a condominium conversion, the subdivider or his or her agent shall give notice of such filing in the form specified by Subdivision Map Act Section 66452.17 to each person applying after such date for rental of a unit prior to acceptance of any rent or deposit from the prospective tenant. If the subdivider or his or her agent fails to give notice pursuant to this section, he or she shall pay to each prospective tenant who becomes a tenant, who was entitled to such notice, and who does not purchase his or her unit an amount equal to two (2) times monthly rent for moving expenses.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.15 Findings.
In addition to the required findings of Section 13-4.09, Council action, the City Council shall not approve an application for conversion unless the City Council finds that:
(a) The rental vacancy rate for multiple dwelling units within the City of Watsonville is five (5%) percent or greater.
(b) All provisions of this title are met.
(c) The proposed conversion is consistent with the objectives, policies, general land uses, housing policies, and programs specified in the Watsonville general plan, along with applicable precise or specific plans.
(d) The proposed conversion will conform to the Municipal Code in effect at the time of tentative or tentative parcel map approval except as otherwise provided in this chapter.
(e) The overall design and physical condition of the condominium conversion achieves a high degree of appearance, quality, and safety.
(f) Vacancies in the project have not been intentionally increased for the purpose of preparing the project for conversion.
(g) All findings required by Section 66427.1(a) of the Map Act have been made.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)
13-9.16 Mobile home park conversion.
Subdivision conversions of mobile home parks shall be subject to the requirements and provisions of Chapter 14-42, Mobile Home Park Conversions to Resident Ownership or to Any Other Use.
(§ 1, Ord. 1274-11 (CM), eff. February 24, 2011)