Special Use Regulations

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

10-2.1610 Residential condominium conversions.

(a) Purpose. The conversion of residential housing projects to condominiums creates home ownership opportunities while it simultaneously reduces rental housing opportunities. It is the purpose of this ordinance to avoid the unreplaced loss of rental housing; to insure that any units converted to condominiums have the same design amenities and overall quality required of newly constructed condominiums; and to provide notice of the conversion to existing tenants and give priority for the purchase of converted units to existing tenants as required by State laws.
(b) Criteria.

(1) Eligibility determined annually. No application for the conversion of rental housing shall be accepted by the City when the vacancy rate within the City is equal to or less than six (6%) percent. Any vacant units in excess of the six (6%) percent vacancy rate shall be the vacancy surplus. The maximum number of residential dwelling units allowed for conversion shall be restricted on an annual basis to the lesser of: (1) the vacancy surplus, or (2) the net increase Citywide in residential dwelling units since January 1, 1988.
(2) Conditional Use Permit and map required. No existing residential dwelling unit may be converted to a 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, floor area, provision of off-street parking, provision of outdoor living space, private lockable storage, and other design features.
b. 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.
c. Each tenant has, or will have, received applicable tenant benefits pursuant to subsections (g) and (h) of this section.

(c) Application procedure. In years where applications may be considered for condominium conversions, application procedures shall be as follows:

(1) Notice of filing period. On or before December 1 of a calendar year when rental housing becomes eligible for conversion, the number of residential dwelling units eligible for conversion and the application filing period from December 1 to the close of the business day on January 31 of the following year shall be publicly announced.
(2) Content of applications. In addition to the application requirements contained in Section 10-2.2506 the following reports shall be submitted as a part of the application for a condominium conversion:

a. City inspection report of all structures for their compliance with all current construction Codes; and
b. A structural pest control inspection report performed by a licensed pest control operator.
c. A tenant listing, including a plan for tenant notification, relocation, and financial assistance, if any.
d. A copy of the proposed declaration of project elements and covenants, conditions, and restrictions.

(3) Ranking applications.

a. Review of applications. The Chief of Planning shall review the applications for completeness, and then shall rank the applications using the following criteria:

1. The extent to which the proposed conversion will provide new housing opportunities for the community;
2. The extent to which the proposed conversion's adverse effect on occupying tenants will be mitigated by relocation and other assistance provided by the applicant;
3. The extent to which a rental unit surplus exists in the area of the proposed project, and of the size and type of the units in the proposed project.
4. The extent to which the building design and amenities are comparable to newly constructed condominium units in terms of architecture, off-street parking, unit size, outdoor living space, private lockable storage, and landscaping.
5. The extent to which the project provides affordable dwelling units with a unit mix responsive to the needs defined in the General Plan Housing Element.

b. Notice of ranking. The Chief of Planning shall provide notice of ranking and a written explanation of the ranking given to the conversion application based on the criteria set forth in subsection (c)(3)(a) of this section.
c. Appeal of ranking. An applicant may appeal a ranking by delivering written notice to the Chief of Planning within ten (10) days after the mailed notice of the ranking. The appeal shall be heard by the Planning Commission after notice to all applicants ranked above the applicant. The decision of the Planning Commission shall be final.

(4) Consideration of conversions limited. The Chief of Planning shall select the highest ranking applications based on the criteria set forth in this subsection for review by the Planning Commission. The number of applications reviewed by the Planning Commission shall not represent requests to convert more than three (3) times the maximum number of units eligible for conversion.

(d) 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 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.

(e) 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.

(f) Monthly reports to City. Commencing with the filing of an application and until such time as all tenants have received the benefits described in subsections (g) and (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) A listing of tenants that may qualify as aged and handicapped as described in subsection (h) of this section, including their unit rental rates.
(4) 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.
(5) A brief description of the occupancy status of each tenant indicating the intent of the tenant to end occupancy or to purchase his unit.

(g) 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 (e)(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 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 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 (e) 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.

(h) Special benefits for aged and handicapped tenants. The applicant shall provide special benefits to tenants as follows:

(1) Qualifying tenants. Because of the extreme difficulty experienced by certain segments of the population in finding suitable, safe, sanitary, and affordable housing, members of the following groups shall be entitled to special benefits if they were the tenants of a unit in a conversion project at the time the first notice of intention to convert is given:

a. Senior citizens. Families where the head of the family is sixty-two (62) years of age or older when the final map is submitted for approval, and the average unit rent for the three (3) years prior to the final map approval has been below the median rent;
b. Handicapped. Families containing one or more handicapped members as defined and recognized by the State; and
c. Low income. Any family renting or leasing a unit which, for the three (3) years prior to the final map approval, had an average rent less than eighty (80%) percent of the median rent in the City during such period for units with the same number of bedrooms.

(2) Relocation benefits to be provided. The special groups set forth in subsection (h)(1) of this section shall be entitled to the following relocation benefits instead of the moving expenses specified in subsection (g)(3) of this section:

a. Relocation advisory assistance. The property owner shall provide relocation advisory assistance which shall include, as desired by the tenant to be relocated:

1. Providing current and continuing information on the availability, prices, and rentals of comparable decent, safe, and sanitary housing;
2. Providing transportation to and advice in selecting comparable housing;
3. Providing comparable, decent, safe, and sanitary housing to the tenant upon displacement and notice of the availability of such housing within a reasonable time prior to displacement (such housing shall not be housing for which a tentative map for a conversion has been filed); and
4. Providing for the moving of any household possessions of the tenant as a result of displacement.

b. Financial reimbursements. A tenant who is a member of any of the groups entitled to the special relocation benefits shall be provided all of the following financial reimbursements:

1. Moving costs. Payment of the actual and reasonable moving costs; and
2. Housing costs. Payment, made prior to displacement, of not to exceed the amount established by Section 7264 of the Government Code of the State, or the applicable successor section, which is necessary to enable the tenant to obtain decent, safe, and sanitary housing in an area generally not less desirable with regard to public utilities, access to employment, and access to public and commercial facilities, for a period of one year, with no increase in expense to the tenant other than what would have been expected if the tenant had not been displaced. Such payment may be used toward a down payment for the purchase of the unit occupied or any housing unit.
3. Maximum benefits. The total amount of benefits for any tenant under this subsection shall not exceed Eight Thousand and no/100ths ($8,000.00) Dollars, except that such amount shall be increased on a percentage basis as determined by the change in the consumer price index between January 1, 1996, and January 1 of the year in which the final map is submitted for approval. Benefits shall be due and payable at the time of moving (if not required before moving) or entry into escrow to purchase the subject unit.

(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)

(go to top of page)