16.17.040 Condominium conversions.
Condominium conversions include converting existing residential rental units, which are leased by the occupants, into condominium units, which may be owned by the occupants, through the application of a tentative map. Condominium conversions are not required to comply with existing setback and density standards if the development met all zoning and building standards in effect at the time of its construction. Nothing in this section shall be construed to prohibit the imposition of more restrictive requirements as a condition of approval by the planning commission or city council when necessary to protect the public health, safety, or general welfare, based upon appropriate findings.
A. Purpose and Intent. The purpose of this section is to establish standards and special conditions for the protection of renters of converted residential apartment structures into condominiums. All residential condominium conversions shall conform to the provisions of this section in addition to any and all requirements for preparation, review and approval of a tentative map application (Chapter 16.10).
B. Review Process. The planning commission’s evaluation shall be provided as a recommendation to the city council, which may act on conversion projects based on its own findings, within the numerical limits established under subsection D of this section.
1. The results of the planning commission’s evaluation should be transmitted to the city council for consideration. The city council shall approve, approve subject to conditions, or deny each conversion application within the calendar year which the application was filed.
C. Qualifying Requirements. The tentative map application for a condominium conversion shall be accompanied by the declaration of covenants, conditions and restrictions, articles of incorporation, bylaws and contracts for the maintenance, management or operation of any part of the condominium conversion project, which would be applied on behalf of any and all owners of the condominium units within the project. In addition to the requirements of Civil Code Section 1355 and any requirements which might be imposed by the city consistent with these regulations, the organizational documents shall include provisions concerning the conveyance of units; the assignment of parking; an agreement for common area maintenance, including facilities and landscaping; an estimate of initial fees anticipated for such maintenance; and an indication of responsibilities for maintenance of all utility lines and services for each unit. The covenants, conditions and restrictions document shall include a reference to an attached, updated property condition report.
1. Minimum Project Size. Condominium conversion shall not be allowed for projects consisting of less than five residential units.
2. Building Conditions. The structural, electrical, fire and life safety systems of the applicable structures either are or are proposed to be prior to the sale of the units, in a condition of good repair and maintenance, including such alterations or repairs as are required by the chief building official and fire chief.
3. Utilities and Devices. The applicable residential and/or common structures presently have, or are intended to have, plumbing in sound condition, insulation of all water heaters, and, where feasible, pipes for circulated hot water, individual gas and electrical meters, except in such cases where individual metering is clearly inadvisable or impractical, adequate and protected trash areas, smoke and fire detectors, and such other requirements as may be imposed as a condition of approval.
4. Access and Driveways. Driveway and pedestrian access shall be provided by direct access to the public right-of-way or may be served by an easement or be within a separate lot that is commonly owned and managed by an association or agreement, subject to the approval of the public works director.
5. Refurbishing and Restoration. All structures, common areas, sidewalks, driveways, landscaped areas and facilities, if defective, shall be refurbished and restored to a safe and usable condition. All deficiencies shall be corrected prior to recordation of a final map.
6. Tenant Protections. A person renting a unit within a property that includes a proposed condominium conversion shall be entitled at the time of conversion to all tenant rights in state or local law, including, but not limited to, rights respecting first refusal, notice, and displacement and relocation benefits.
7. Noticing. Tenants and prospective tenants have been given a tenant’s notice of intent to convert pursuant to the provisions of California Government Code Section 66427.1 (Subdivision Map Act) sixty days prior to filing applications for tentative map or any associated development review application with the community development department. Such notice shall be given by the applicant and shall contain information as to tenant’s rights under state and local regulations.
8. Subdivision Map Act. The applicant has complied with all applicable provisions of the Subdivision Map Act, including but not limited to Government Code Sections 66427.1 and 66452.18.
D. Process and Procedure.
1. Annual Limit. The city shall not approve conversion projects in any one calendar year resulting in more units being converted than one-half the number of multifamily rental dwellings added to the city’s housing stock during the preceding year. The number of multifamily rental units added in one year shall be determined as follows: From January 1st through December 31st, the total number of multifamily rental units given a final building inspection and occupancy permit minus the number of such units demolished, removed from the city, or converted to nonresidential use.
2. Filing Period. Applications for conversion may be filed during the months of January and February only. No action shall be taken on applications during this period. In order to be accepted by the city for processing, the application must be deemed complete by May 31st. Applications not deemed complete by May 31st shall be rejected and are not eligible for consideration until the following year if allocations for conversion are available.
3. Project Ranking. If applications on file at the end of the filing period would, when approved, convert more dwelling units than allowed under subsection (D)(1) of this section, the planning commission shall rank the applications according to the following point criteria:
a. The fractions of tenants not objecting to conversion: deduct one point for each percentage point of objecting tenants. Applicants shall survey tenants and provide tenants an opportunity to respond with a postage-paid envelope addressed to the applicable project planner at the city.
b. Provision of private open space with each dwelling: ten points for every unit that exceeds minimum square feet of qualifying private open space (by at least twenty-five square feet) for a maximum of fifty points: deduct ten points for every unit that falls below (by at least twenty-five square feet) the minimum private open space standards. No points for projects that meet standards. Minimum private open space: R-2 zone—two hundred fifty square feet, R-3 and R-4 zones—one hundred square feet with minimum dimension in every direction of ten feet for open space provided at ground level or six feet for open space provided on a balcony or elevated deck, and must be located outside the street yard required by zoning regulations.
c. Project meets or exceeds current parking standards: five points deducted for every parking space below minimum standards, five points added for every parking space above minimum requirements up to twenty-five points.
d. Provision of common open space that meets or exceeds criteria: ten points for every additional one hundred square feet of qualifying and usable common open space above minimum requirements, for a maximum of fifty points. Minimum common open space: one hundred square feet for each unit in the R-3 and R-4 zones, and one hundred fifty square feet for each unit in the R-2 zone, and shall have a minimum dimension in every direction of ten feet for open space provided at the ground level or six feet for open space provided on a balcony or elevated deck, and must be located outside the street yard required by zoning regulations.
e. Provision of common recreation amenities that meet or exceed criteria: ten points for high-quality recreation amenities that exceed minimum size requirements by at least two hundred square feet per project. Recreation amenities criteria: there shall be provided in each project of five or more units in the R-3 or R-4 zone a minimum of twenty square feet per unit of common indoor recreation facilities, or forty square feet per unit of improved outdoor recreation facilities. Area of common recreation facilities may be within required common open space and may be counted towards minimum common open space requirements. Common recreation facilities shall be available for, and limited to, the use of the project’s tenants and their guests. Common recreation facilities must be located outside the street yard required by zoning regulations. Examples of acceptable recreation facilities for smaller projects may consist of permanent, high quality fixed seating and tables, fire or barbeque facilities, and other passive use facilities. For larger projects of more than ten units, more substantial improvements may be required and may include ball courts, children’s play equipment, community gardens or other features that can be appropriately incorporated into the project design.
f. Provision of units which low-income and moderate-income families can afford: twenty points given for each moderate deed-restricted affordable unit proposed in the project; twenty-five points for each low-income unit for a maximum of one hundred points.
g. Provision for energy savings: projects that contain significant solar energy installations capable of supplying at least fifty percent of the project’s energy demand shall receive twenty points.
h. Age of existing apartments: one point for each year an apartment project has been occupied as rental apartments.
i. Discretionary ranking: project quality, design features or overall neighborhood character and compatibility may allow the planning commission to add or deduct up to fifty points.
j. The planning commission’s evaluation shall be a recommendation to the city council, which may act on conversion projects based on its own findings, within the numerical limits established under subsection (D)(1) of this section. (Ord. 1729 § 4 (Exh. A), 2023)