ARTICLE 4 SPECIAL USE REGULATIONS -------------------- (go to main index)

• (a) Purpose. This section shall provide for the regulations of ownership conversion projects where ownership of existing nonresidential buildings is subdivided for continued nonresidential use, pursuant to Section 1350 of the State Civil Code. This section recognizes that a conversion is different from new construction in that the owners of a unit in a conversion take responsibility for a building built under standards that may be less stringent than those that are currently deemed necessary, and existing tenants may be displaced by a conversion. A conversion also differs from a rental property in that the unit owner assumes long-term responsibility for the unit owned, for the common areas of the project, and the higher level of economic cost required to own instead of rent. Furthermore, as the number of owners of a building increases, it may be more difficult to bring about the timely recycling of existing uses and buildings to new uses and buildings which may become more desirable at the location. Therefore, the intent of this section is to provide increased business ownership opportunities while at the same time mitigating the hardship caused by displacement of tenants; assuring that conversion projects maintain long-term economic value for the owner; and precluding conversions which may prolong the life of buildings not up to current standards or of uses which may not be in the long term best interests of the community or neighborhood.
• (b) Criteria.

• (1) Conditional Use Permit and map required. No existing nonresidential building may be converted to a nonresidential condominium unless a Conditional Use Permit is obtained pursuant to Section 10-2.2506, and a tentative map or parcel map obtained pursuant to Chapter 1 of Title 10 of this Code. In addition to the criteria applicable for a Conditional Use Permit and tentative or parcel map, the following criteria shall apply:

• a. The proposed condominium conversion units shall be substantially equal to new condominium units in terms of quality of architecture, construction, and other design features.
• b. Prior to final approval of the condominium conversion, the building and site containing the condominium units shall be fully conforming to all current zoning regulations including, but not limited to permitted uses, floor area ratio, building height, setbacks, parking requirements, and signs.
• c. The project shall meet the condominium development standards for treatment of utilities and requirements for provision of covenants, conditions, and restrictions, as described in subsections (d)(1) and (d)(4) of Section 10-2.1608.
• d. Each tenant, and each prospective tenant has, or will have, received all applicable notices and rights now or hereafter required by this section or by applicable State law.
• e. Each tenant has, or will have, received applicable tenant benefits pursuant to subsection (h) of this section.

• (2) Minimum floor area. No conversion shall be permitted of any unit in the building having a unit size of less than 1,000 square feet.

• (c) Content of applications. The applicant shall file with the Planning Division, in a form provided by the Planning Division, a completed application for a Conditional Use Permit pursuant to Section 10-2.2506 of this chapter, and a completed application for a tentative map or parcel map pursuant to Chapter 1 of Title 10 of the Municipal Code. In addition the following reports shall be submitted as a part of the application for condominium conversion:

• (1) City inspection report of all structures for their compliance with all applicable building, plumbing, fire, electrical, and earthquake codes and a listing of any conditions which may cause health or safety hazards;
• (2) A structural pest control inspection report performed by a licensed pest control operator;
• (3) Reports from State licensed contractors for the heating and plumbing systems of the project, as well as reports for the condition of the roof. All such inspections shall have been conducted within three (3) months prior to the submittal of the application for condominium conversion;
• (4) A tenant listing, including a plan for tenant notification, relocation, and financial assistance, if any;
• (5) A copy of the proposed declaration of project elements and covenants, conditions, and restrictions.

• (d) Building code and major systems corrections.

• (1) Prior to approval of the final map, the building containing the condominium units shall be fully conforming to all current building code regulations.
• (2) Any corrections or repairs recommended as reasonably necessary within the next five (5) years to the heating or air conditioning or plumbing systems or to the roof, shall be provided for prior to approval of the final map.

• (e) Notices to tenants. Notices of public hearings required pursuant to Section 10-2.2506 and Chapter 1 of Title 10 shall be mailed by the City to the lists of tenants provided by the applicant. The applicant shall perform the following additional notification of tenants:

• (1) Prior to filing of map. At least sixty (60) days prior to the filing of a tentative map, each of the tenants of the proposed condominium shall be given by first class mail a written notice of intention to convert in the form provided in California Government Code Section 66452.9.
• (2) Prior to Planning Commission public hearing. A copy of the written staff report to the Planning Commission on the proposed conversion shall be delivered to each tenant of the subject property at least six (6) days prior to the hearing date.
• (3) Subsequent to Planning Commission public hearing. Each tenant shall receive written notice within ten (10) days after the approval of a tentative map for the proposed conversion. Such notice shall contain, as a minimum, an explanation of the tenant's rights and benefits as a result of the conversion and a statement that no eviction will occur as a result of the conversion for at least 180 days.
• (4) Prior to filing of public report. At least ten (10) days prior to the filing of a public report with the Department of Real Estate, each tenant of the proposed condominium project shall receive by first class mail a 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.
• (5) Subsequent to approval of a final map. At least ten (10) days after the approval of a final map, each tenant of the proposed condominium project shall be given by first class mail written notice of the approval of a final map for the proposed conversion.
• (6) Prior to termination of tenancy. Each tenant of the proposed condominium project shall be given by first class mail 180 days' written notice of termination of tenancy due to the conversion or proposed conversion.
• (7) Prior to issuance of public report. Each tenant of the proposed condominium project shall be given by first class mail notice of an exclusive right to contract for the purchase of his or her respective unit 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 ninety (90) days from the date of issuance of the subdivision public report pursuant to Section 11018.2 of the Business and Professions Code, unless the tenant gives prior written notice of his or her intention not to exercise the right.

• (f) Notice to prospective tenants. Notices of public hearings required pursuant to Section 10-2.2506 and Chapter 1 of Title 10 shall be mailed by the City to the list of prospective tenants provided by the applicant. The applicant shall perform the additional following notification of prospective tenants:

• (1) Notice of conversion. Notice of the proposed conversion shall be given to a prospective tenant applying for rental of a unit of the subject property before acceptance of any rent or deposit, in the form provided in California Government Code Section 66452.51.
• (2) Notice of filing of a tentative map. At least sixty (60) days prior to the filing of a tentative map, notice of such filing shall be given to a prospective tenant applying for rental of a unit of the subject property before acceptance of any rent or deposit, in the form provided in California Government Code Section 66452.8.
• (3) Posting of notice. Regardless of each prospective tenant being informed of the proposed conversion prior to the finalization of any rent or lease agreement, a notice of such intended conversion shall be posted and maintained at all times in a highly visible location outside the manager's office or unit or the rental office, if any.
• (4) Notice subsequent to approval of the final map. If a final map has been approved for a condominium project of five (5) or more units, and a unit is thereafter rented, notice shall be given to a prospective tenant of the right of first refusal to purchase the unit, in the form provided in California Government Code Section 66459.

• (g) Monthly reports to City. Commencing with the filing of an application and until such time as all tenants have received the benefits described in subsection (h) of this section, the applicant shall provide a written report to the City no less than every thirty (30) days that includes the following information:

• (1) A listing of tenant names and addresses, including forwarding addresses, updated regularly;
• (2) The date on which each tenant or prospective tenant began occupancy and ended occupancy;
• (3) Copies of all notices, letters, and related correspondence mailed, delivered or otherwise presented to tenants and prospective tenants and a listing of the tenants and prospective tenants who received the material;
• (4) A brief description of the occupancy status of each tenant indicating the intent of the tenant to end occupancy or to purchase his unit.

• (h) Tenant benefits. The applicant shall provide benefits to tenants as follows:

• (1) Option to purchase. Each tenant, and any prospective tenant who rents a unit subsequent to approval of a final map, shall be given notice of an exclusive right to contract for the purchase of his respective unit upon the same terms and conditions that such unit will be initially offered to the general public or on terms more favorable to the tenant. Such right shall run for a period of not less than ninety (90) days from the date of the issuance of the subdivision public report, or from the date of the approval of a final map if the project consists of four (4) or less units, or in the case of prospective tenants, from the date of the notice to prospective tenants specified in subsection (f)(4) of this section.
• (2) Limitation on evictions. No eviction shall occur as a result of conversion for at least 180 days after the approval of a tentative map and the end of the ninety (90) day period of the exclusive option to purchase the unit. If the units are not offered for sale to the tenants within two (2) years after the approval of a final map, the minimum 180 day notice prior to the eviction, including a ninety (90) day exclusive option to purchase period, shall be provided to each tenant prior to eviction from the time the units are offered for sale.
• (3) Moving expenses. Each tenant renting a unit at the time of the approval of the tentative map and still renting a unit ten (10) days prior to the approval of the final map, but not including prospective tenants notified pursuant to subsection (f) of this section, shall be entitled to the following moving expenses, due and payable at the time of moving:

• a. Furnished units. The tenant of any furnished unit shall receive moving expenses equal to two (2) months' rent; and
• b. Unfurnished units. The tenant of any unfurnished unit shall receive moving expenses equal to three (3) months' rent.

• (i) Harassment of tenants. After the approval of the tentative map, action by the landlord which is intended to cause the tenant to quit the premises prior to the 180 day notice, including unreasonable rent increases, shall be considered harassment and shall be grounds for the denial of a final map.

(Ord. 2756 c.s., eff. January 18, 1996 as amended by Ord. 2833, eff. July 1, 1999)

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