Chapter 17.04 — CONDOMINIUM CONVERSIONS

This chapter regulates the conversion of residential apartment buildings, apartment complexes and mobilehome parks to projects in which the residential units or mobilehome spaces are individually owned in fact or in practical effect, whether such projects are called condominiums, townhouses, community apartments, stock cooperatives, or any other name. No person shall cause such conversion to be made except in accordance with this chapter. (Prior code § 2-25.01)

For the purpose of this chapter, the following terms shall be defined as follows:

"Condominium conversion project" means the conversion or subdivision of a single ownership parcel of existing improved residential real property typically containing two or more dwelling units, or of an existing mobilehome park, into a form of ownership for residential purposes involving the right of exclusive occupancy or separate ownership of individual units or mobilehome spaces, including, but not limited to condominiums, community apartments, stock cooperatives or townhouses. As used in this chapter a "condominium project" refers to any condominium conversion project. This chapter does not apply to commercial or industrial condominium conversion projects.

"Date of approval of a condominium conversion project application," as used in this chapter, means (1) the date of the city council's action on a project application for all nonexempt conversions; or (2) the date of either the planning commission's or staff review board's action on a tentative subdivision map or preliminary parcel map for all exempt conversions.

"Developer" means the owner or subdivider with a proprietary interest in the proposed condominium conversion project.

"Tenant" means any person who resides in a dwelling unit on multiple rental property or occupies a mobilehome park space, whether by month-to-month tenancy, lease or other rental agreement.

"Tenant, elderly" means any person residing in a dwelling unit on the property who is over age 62 on the date of approval of the conversion application.

"Tenant, handicapped" means any person residing in a dwelling unit on the property who meets the definition in Section 50072 of the California Health and Safety Code on the date of approval of the conversion application. (Prior code § 2-25.02)

• A. In order to provide for the housing needs of all segments of the community, the purposes of this chapter are set forth as follows:

  1. To minimize or avoid the hardship caused by the displacement of residents following the conversion of their dwellings, particularly senior citizens and the handicapped; and

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City of Pleasanton, CA § 17.04.030

PLANNING AND RELATED MATTERS

• B. The city council finds and declares:

  1. That the city has adopted a comprehensive general plan that establishes policies to protect the living environment of all residents of the community; and

2. That condominiums, community apartments, stock cooperatives, and townhouses differ from apartments in numerous respects and, for the benefit of public health, safety and welfare, such projects should be treated differently from apartments in order to protect the community and the purchasers of condominiums.

(Prior code § 2-25.03)

The physical standards and tenant provisions requirements contained in this chapter shall be met by every condominium conversion project unless said requirement is waived by the approving body. In granting conversion approval, the city council, planning commission, or staff review board shall ensure that the provisions of this chapter relating to physical standards (Section 17.04.090) and tenant provisions (Section 17.04.100) are implemented in such a manner as to maintain the public health, safety and welfare. The approving body, following its review of each submittal, may approve, conditionally approve, or deny a project; it may also waive particular requirements of this chapter or any other sections of the code if it finds that the conversion, despite the failure to meet all the requirements, is consistent with the general plan and any specific plan policies governing conversions and conforms to the purposes of this chapter. The approving body may deny a request for approval if (a) the proposed conversion fails to meet any of the requirements of this chapter, (b) the conversion would be inconsistent with general or specific plan policies, (c) the proposed conversion would be inappropriate as a condominium project due to its age, condition, location, or any other matter affecting its continuing viability as an ownership project, or (d) the approving body finds that the applicant for conversion evicted a tenant immediately before or during the condominium conversion process in violation of Section 17.04.130(B) of this chapter.

(Prior code § 2-25.04)

Condominium conversion projects falling into the following categories shall be subject to the approval process contained in Section 17.04.060(B) and exempt from city council consideration:

• A. Condominium conversion projects containing four or fewer units;

• B. Condominium conversion projects in which the tenants representing 85 percent of the total units in the projects have consented to the conversion. For purposes of this section, the consent of heads of household shall constitute consent for the entire household, and, when two or more cotenants reside in a unit, the consent of a cotenant shall represent a percentage equal to the cotenant's proportional share of the unit. Where a written lease still in effect exists, the tenant(s) of a unit shall be deemed to be only those named in the lease.

• (Prior code § 2-25.05)

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City of Pleasanton, CA

PLEASANTON CODE

§ 17.04.060

§ 17.04.090

Every condominium project not exempted pursuant to Section 17.04.060 must secure city council approval pursuant to this section prior to filing a subdivision map. Projects exempted from the required city council approval shall apply for conversion approval as provided in this chapter as part of the subdivision approval process.

• A. Approval Procedures for Nonexempt Condominium Conversion Projects. Applications for nonexempt condominium conversion projects may be submitted for city council review at any time during the year. A public hearing before the city council shall be scheduled pursuant to the provisions of this chapter. The city council may approve, conditionally approve, or deny application for conversions pursuant to the provisions of this chapter. Projects which are approved by the city council may proceed to submit subdivision applications pursuant to state law and local ordinance requirements.

• B. Approval Procedures for Exempt Condominium Conversion Projects. Developers of condominium conversion projects qualifying as exempt projects shall submit application required by Section 17.04.070(B) at the same time applications are made for tentative map or preliminary parcel map approval. Such applications may be made at any time during the year. The decision-making body may approve, conditionally approve, or deny applications for conversion pursuant to the provisions of this chapter. Any decision may be appealed by an aggrieved party to the city council.

• C. Condominium conversion approval shall lapse if a final map has not been filed with the city council for approval within one year of receipt of condominium conversion approval, or such other time as may be set at the time of conversion approval.

• (Prior code § 2-25.06; Ord. 1075 § 1, 1983)

• A. Information Required. Developers shall prepare an application for submittal to the planning division on a form prepared by the planning division and containing the information required by the community development director. The director or his or her designate shall determine whether the application is complete.

• B. Fees. The applicant shall pay a fee based on the actual costs of reviewing and processing the application in accordance with the resolution establishing fees and charges for various municipal services, codified in the appendix to Title 3 of this code.

• (Prior code § 2-25.07; Ord. 2000 § 1, 2009)

A public hearing shall be held prior to a determination to approve or disapprove an application to convert, at which time the reviewing body shall take testimony concerning the proposed conversion, measures proposed to be taken to meet the requirements of this chapter, and other relevant information. Notice of the public hearing shall be given in the manner required by Section 18.12.040 of this code. In addition, notice shall be given within 10 days of the hearing to every tenant in the apartment building or apartment complex proposed for conversion. (Prior code § 2-25.08)

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City of Pleasanton, CA § 17.04.090

PLANNING AND RELATED MATTERS

1. The design, improvement and/or construction of a condominium conversion project shall conform to and be in full accordance with all requirements of all locally adopted building, fire, housing, and other construction codes, zoning provisions, and other applicable local, state or federal laws or ordinances relating to protection of public health and safety laws or ordinances relating to protection of public health and safety in effect at the time of application for conversion.

   2. The project CC&Rs shall make provision for the maintenance of the project's landscaping and other common areas and facilities, subject to review and approval by the city attorney.

   3. Parking shall be provided according to standards established for condominiums by Chapter 18.88 of this code.

• B. Notwithstanding any of the provisions of subsection A of this section, the reviewing body may waive any standard pursuant to Section 17.04.040 of this chapter.

• (Prior code § 2-25.09)

• A. Notice Requirements. All tenants shall be kept fully informed of the following actions taken by the developer in proceeding to convert the project. The following notice shall be provided by the developer to all tenants:

  1. Sixty days written notice of intent to convert prior to the public hearing date before the city council, planning commission, or staff review board;

  2. Ten days' notice of hearing on application to convert pursuant to Section 17.04.090; and

  3. All other notices required by the Subdivision Map Act.

Notice shall be supplied to all tenants occupying the units at any time after the filing of the initial notices of intent and said notice shall be given to prospective tenants as well.

• B.

• Rent Increase Protection.

1. No application for conversion shall be approved if rents have been raised on any unit, whether affecting existing tenants or at change of occupancy, during the period six months prior to the date of approval of the condominium conversion project. The provisions of this subsection shall not apply to conversions processed pursuant to Section 17.04.050(B).

2. The leases of tenants continuing to reside in the project during the period between approval of the condominium conversion project and sale of the unit shall be under the same terms and conditions as existed at the time of the approval, except that rent may increase at an annual rate equivalent to the Bay Area Consumer Price Index or seven percent, whichever is less. No rent increase allowed by this section shall be established until one year has elapsed from receipt of condominium conversion approval; subsequent rent increases shall be allowed no more frequently than annually. The terms and conditions of leases affecting tenants not residing in the

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City of Pleasanton, CA § 17.04.100

PLEASANTON CODE

• C. Elderly and Handicapped Tenant Rights. Any elderly or handicapped tenant, as defined in Section 17.04.020, who has occupied a dwelling unit or mobilehome space in a proposed condominium conversion project for 18 months or more on the date of approval of the project shall have special leasehold rights. Elderly tenants shall have the right to lease their units for nine years; handicapped tenants shall have the right to lease their units for seven years. Such extended leases shall be under the same terms and conditions as existed at the time of activation of the application, except that rent may increase at an annual rate equivalent to the Bay Area Consumer Price Index or seven percent, whichever is less. Extended leases shall begin as of the date of approval of the condominium conversion. At the time of conversion, any dwelling unit subject to this extended lease provision shall be refurbished at the expense of the developer in a like manner as those units to be sold as condominiums, and said dwelling unit shall be adequately maintained for the duration of the lease. Refurbishing shall include all cosmetic improvements (painting, linoleum, carpeting, drapes, counters, etc.) as well as any structural changes required of converted units.

• D. Tenant Relocation Assistance. All persons living in units or occupying mobilehome spaces on the date of approval of the condominium conversion project who choose not to purchase units in the condominium conversion project shall be afforded the relocation assistance included below:

  1. Relocation assistance provided by a professional property management agency, at the expense of the developer, in finding a comparable replacement rental unit; such assistance shall include, at a minimum, providing rental availability reports and updating same, assisting tenants inspect available units, and providing other personal services related to the relocation of each tenant;

  2. Moving expenses paid for by the developer in an amount equal to the actual costs for any tenant relocating in the Tri-Valley Area, or $500.00, whichever is less. The city council may adjust the maximum moving expense allowable year to year to reflect increases in costs;

  3. Utility connection fees paid for by the developer in an amount equal to actual expenses up to a maximum of $100.00. The city council may adjust the amount required in this subsection year to year to reflect increases in costs.

• E. Tenant Purchase Assistance. Tenants living in units or occupying mobilehome spaces on the date of approval of the condominium conversion project shall be afforded the right to purchase their respective units or another unit in the complex under preferential terms. Preferential terms shall include the following:

  1. First right to refusal to purchase their own unit;

  2. Price reduction of $50.00 per month for every month a tenant has resided in the complex, up to a maximum of $1000.00, from the price like units are offered to the general public;

3. Price reduction of $1000.00 for electing to purchase the unit in an as-is condition rather than in a manner similar units are refurbished for sale to the general public.

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City of Pleasanton, CA § 17.04.100

PLANNING AND RELATED MATTERS

§ 17.04.130

However, major renovation or improvements required of all units in meeting the standards of this chapter may not be waived and shall be completed by the developer; the price reduction shall be in lieu of cosmetic refurbishment;

4. Financing assistance, including broker-type assistance in locating financing and completing applications, loan qualifying assistance by providing secondary finance, equity sharing, or other such mechanism, and providing out-of-pocket expense in the course of obtaining financing up to a maximum of $250.00.

Purchase assistance in subdivisions 2, 3 and 4 of this subsection shall be available for tenant purchase of either his or her own unit or space or any other unit or space in the complex and are minimum requirements only. Nothing in this section shall prevent a developer from offering additional preferential treatment. The city council may adjust the minimum figures found in subdivisions 2, 3 and 4 of this subsection year to year to reflect increases in costs.

(Prior code § 2-25.10; Ord. 1075 §§ 2, 3, 1983)

Prior to filing a final map, the developer of a condominium conversion project shall execute and record an agreement incorporating the terms and conditions of the conversion approval bidding the developer and any successor in interest to provide the assistance to tenants and to improve the project in accordance with the project approval. The agreement shall be recorded and a copy shall be provided to each tenant occupying a unit on the date of approval of the condominium conversion project. The agreement shall run to the benefit of any tenant occupying a unit on the date of the approval of the condominium conversion project. (Prior code § 2-25.11)

Any disagreement between a tenant and a developer arising as a result of the conversion of an apartment building, apartment complex, or mobilehome park and concerning the terms of this chapter or the conditions of approval of the condominium conversion project, may be brought before the board of adjustment for a hearing and resolution. The decision of the board of adjustment shall be appealable to the city council. (Prior code § 2-25.12)

• A. It shall be against the public policy embodied in this chapter to attempt to subvert its provisions by coercing the waiver of any rights or privileges created or protected herein. Any provision of a lease or rental agreement which purports to waive a tenant's rights under this chapter or which requires prior consent to the conversion of the apartment building, apartment complex, or mobilehome park to a condominium conversion project shall be null, void and unenforceable.

• B. It shall be against the public policy embodied in this chapter to evict or threaten to evict or otherwise harass any tenant because of the tenant's refusal to consent to conversion, the tenant's opposition to such conversion or the anticipated refusal or opposition of the tenant.

• (Prior code § 2-25.13)

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City of Pleasanton, CA

PLANNING AND RELATED MATTERS

§ 17.08.010

§ 17.08.040