§ 17.36

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 insure that converted housing achieves a high degree of appearance, quality and safety and is consistent with the goals of the city.

E.

Attempt to provide a reasonable balance of ownership and rental housing in Morgan Hill and a variety of choices of tenure, type, price and location of housing.

F.

Attempt to maintain a supply of rental housing for low and moderate income persons.

(Ord. 635 N.S. § A (part), 1983)

A.

In order to reduce the effect of conversions on the city's housing supply and to minimize the displacement of tenants, conversions shall only be allowed when there exists an average apartment vacancy rate of five percent or greater. The average vacancy rate shall be determined from the two previous apartment vacancy surveys conducted by the housing programs coordinator.

B.

Vacancy rates shall be determined by the housing programs coordinator in April and October of each year on the basis of a representative sampling of apartment buildings. New apartment units which have not been available to the public for rent for six months shall not be included in the vacancy rate determination.

(Ord. 996 N.S. § 1, 1990: Ord. 635 N.S. § A (part), 1983)

The planning commission shall not approve an application for conversion unless the planning commission finds that:

A.

All provisions of this chapter are met;

B.

The proposed conversion is consistent with the general plan;

C.

The proposed conversion will conform to the Morgan Hill Municipal Code in effect at the time of tentative map approval except as otherwise provided in this section;

D.

The overall design and physical condition of the condominium conversion achieves a high degree of appearance, quality and safety;

E.

The proposed project will not convert during the current calendar year more than five percent of the potentially convertible rental units in the city for the current calendar year except as otherwise provided in this section.

(Ord. 635 N.S. § A (part), 1983)

In addition to the requirements and procedures as set forth in Chapters 17.16, 17.20, 17.24 and 17.28 of this title, conversions of existing multiple-family rental housing to condominiums, community apartments, stock cooperatives and any other subdivision which is a conversion of existing rental housing, shall be subject to the additional requirements provided by this chapter.

(Ord. 635 N.S. § A (part), 1983)

A report on the physical elements of all structures and facilities shall be submitted with the tentative subdivision or 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, 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 such element was 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 current zoning and from the city's Uniform Housing Code and the city's Uniform 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 any known 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 such 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.

(Ord. 635 N.S. § A (part), 1983)

17.36.060 - Submission of additional documents.

A.

A declaration of covenants, conditions and restrictions which would be applied on behalf of any and all owners of condominium units within the project. The declaration shall include, but not be limited to, the conveyance of units; 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, description of a provision for maintenance of all vehicular access areas within the project; an indication of appropriate responsibilities for maintenance of all utility lines and services for each unit.

B.

1. Specific information concerning the demographic characteristics of the project, including but not limited to the following:

a.

Square footage and number of rooms in each unit;

b.

Rental rate history for each type of unit for the previous five years;

c.

Monthly vacancy rate for each month during the preceding two years;

d.

Makeup of existing tenant households, including family size, length of residence, age of tenants and whether receiving federal or state rent subsidies;

e.

Proposed sale price of units;

f.

Proposed homeowners' association fee;

g.

Financing available; and

h.

Names and addresses of all tenants.

2.

When the subdivider can demonstrate that such information is not available, this requirement may be modified by the community development department.

C.

Signed copies from each tenant of notice of intent to convert, as specified in Section 17.36.130 of this chapter. The subdivider shall submit evidence that a certified letter of notification was sent to each tenant for whom a signed copy of the notice is not submitted.

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 chapter.

(Ord. 635 N.S. § A (part), 1983)

A.

The final form of the physical elements report and other documents shall be as approved by the city.

B.

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 subdivision report to the planning commission.

(Ord. 635 N.S. § A (part), 1983)

The subdivider shall provide each purchaser with a copy of all reports (in their final, acceptable form), except the information required by subsections B and C of Section 17.36.060 of this chapter, prior to the purchaser executing any purchase agreement or other contract to purchase a unit in the project, and the developer shall give the purchaser sufficient time to review the reports. Copies 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.

(Ord. 635 N.S. § A (part), 1983)

Prior to tentative map approval, the planning commission shall hold a public hearing. Notice of the hearing shall be given to tenants of the proposed conversion and posted on the property. For subdivisions of four

or fewer parcels, the city engineer shall hold the public hearing pursuant to Section 17.20.080 of this title.

(Ord. 635 N.S. § A (part), 1983)

17.36.100 - Submission of final information.

Prior to the close of escrow, the subdivider shall submit the following information to the community development department:

A.

Name, address and phone number of homeowner's association;

B.

Actual sale price of units;

C.

Actual homeowner's association fee;

D.

Number of prior tenants who purchased units;

E.

Number of units purchased with intent to be used as rentals.

(Ord. 635 N.S. § A (part), 1983)

17.36.110 - Conformance with statutes—Correction of violations.

A.

To achieve the purpose of this chapter, the planning commission shall require that all condominium conversions conform to the Morgan Hill Municipal Code in effect at the time of tentative map approval except as otherwise provided in this chapter.

B.

All provisions of this code must be met and violations corrected prior to the approval of the final map or, upon approval of the community development department, funds shall be adequately escrowed or bonded to assure completion of such corrective work, prior to the closing of escrow of any unit in the project.

(Ord. 635 N.S. § A (part), 1983)

17.36.120 - Physical standards—Specifications—Prerequisite to map approval.

The planning commission shall require conformance with the standards of this section in approving the map.

A.

Building Regulations. The project shall conform to the applicable standards of the city's Uniform Housing Code and shall be found to be in compliance with the city's Uniform Building Code in effect on the date that the last building permit was issued for the subject structure or structures except as provided herein.

B.

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 U.S. 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.

C.

Sound Transmission.

1.

Shock Mounting of Mechanical Equipment. All permanent mechanical equipment such as motors, compressors, pumps and compactors which is determined by the chief building inspector 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 chief building inspectors.

2.

Noise Standards. The structure shall conform to all exterior and interior sound transmission standards of Chapter 35 (Appendix) of the Uniform Building Code. In such cases where present standards cannot reasonably be met, the planning commission may require the applicant to notify potential buyers of the noise deficiency currently existing within these units.

D.

Utility Metering. Each dwelling unit shall be separately metered for gas and electricity. A plan for equitable sharing of communal water metering shall be developed prior to final map approval and included in the covenants, conditions and restrictions. 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 planning commission.

E.

Private Storage Space. Each unit shall have at least two hundred cubic feet of enclosed weatherproofed 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. 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 planning commission.

F.

Laundry Facilities. A laundry area shall be provided on each unit; or if common laundry areas are provided, such facilities shall consist of not less than one automatic washer and dryer for each five units or fraction thereof. 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 planning commission.

G.

Landscape Maintenance. All landscaping shall be restored as necessary and maintained to achieve a high degree of appearance and quality.

H.

Condition of Equipment and Appliances. The developer shall provide written certification 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 are in operable working condition as of the close of escrow. At such time as the homeowners' association takes over management of development, the developer shall provide written certification 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 is in operable working condition.

I.

Refurbishing and Restoration. All main buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, landscaped areas, and additional elements as required by the community development department shall be refurbished and restored as necessary to achieve a high degree of appearance, quality and safety.

(Ord. 635 N.S. § A (part), 1983)

No fee shall be charged by the city as a condition to the approval of a tentative, final or parcel map for a subdivision or a division of land which is not a subdivision, which consists of the conversion of a mobile home park to a condominium or stock cooperative ownership interest, except regulatory fees charged for the issuance of a permit and those fees authorized by Section 66451.2 of the Subdivision Map Act.

(Ord. 1143 N.S. § 46, 1993)

A notice of intent to convert shall be delivered to each tenant at least sixty days prior to filing the tentative map. Evidence of receipt by each tenant shall be submitted with the tentative map. The form of the notice shall be as developed and approved by the community development department and will inform the tenants of all rights provided under this section and the provisions of Section 66427.1 of the Government Code of the state or successor sections.

(Ord. 635 N.S. § A (part), 1983)

17.36.140 - Tenants—Right to purchase—Time restrictions.

As provided in Government Code Section 66427.1(b) of the state, any present tenant or tenants of any 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 ninety days from the date of issuance of the subdivision public report or commencement of sales, whichever date is later.

(Ord. 635 N.S. § A (part), 1983)

17.36.150 - Tenants—Rent increase restrictions.

A tenant's rent shall not be increased for two years from the time of filing of the application by the community development department of the tentative map until the unit is sold or until the subdivision is denied or withdrawn.

(Ord. 635 N.S. § A (part), 1983)

17.36.160 - Tenant relocation—Time limitations.

Each nonpurchasing tenant not in default under the obligation of the rental agreement or lease under which he occupies his unit, shall have not less than one hundred twenty days from the approval date of the final subdivision map to find substitute housing and relocate. The subdivider shall notify each tenant immediately prior to the time of final map approval of the anticipated date required to vacate the unit and when the one hundred twenty day period will begin. Evidence of receipt by each tenant shall be submitted prior to approval of the final map.

(Ord. 635 N.S. § A (part), 1983)

Any nonpurchasing tenant aged sixty-two or older or handicapped or with minor children in school shall be given at least an additional six months in which to find suitable replacement housing.

(Ord. 635 N.S. § A (part), 1983)

At the time of final map approval, all tenant households in which the head of household or spouse is age sixty-two or older shall be offered a lifetime lease with reasonable annual rent increases. Starting rents shall be the rent at the time of tentative map application. Lease forms shall be submitted to the community development department for review prior to final map approval.

(Ord. 635 N.S. § A (part), 1983)

At the time of final map approval, all tenant households which meet the income limits of the HUD Section 8 Program will be considered low and moderate income households and shall be offered, at minimum, a three-year lease with reasonable annual rent increases. Starting rents shall be the rent at the time of tentative map application. Lease forms shall be submitted to the community development department for review prior to final map approval.

(Ord. 635 N.S. § A (part), 1983)

The subdivider shall provide moving expenses of two times the monthly rent to any tenant household living in any unit at any time prior to tentative map approval as provided in this section. A tenant moving in after tentative map approval will not be required to be provided with moving expenses. Eligible tenants will receive moving expenses when they relocate, except when the tenant has given notice of his intent to move prior to receipt of notification from the subdivider of his intent to convert, and except when the tenant has not resided in the unit for at least three months. The subdivider shall also provide each tenant with a monthly list of other rentals available in the South Santa Clara County area beginning from the time of tentative map approval until each tenant relocates or decides to purchase a unit.

(Ord. 635 N.S. § A (part), 1983)

17.36.210 - Notice to new tenants of intent to convert.

After submittal of the tentative map, any prospective tenants shall be notified in writing of the intent to convert prior to leasing or renting any unit.

(Ord. 635 N.S. § A (part), 1983)

Chapter 17.38 - MOBILE HOME PARK CONVERSIONS TO RESIDENT OWNERSHIP OR TO ANY OTHER USE

Sections:

Article I. - General