Burlingame Municipal Code Ch. 26.33 Designated Units, Purchase and Sale Restrictions and Tenant Protections

The provisions of Sections 26.33.020 to 26.33.050 shall apply to all condominium conversions and shall be contained in the declaration of covenants, conditions and restrictions.

(Ord. 1206 § 3, (1981))

(a) The party proposing the conversion shall designate a quantity of units totaling not less than 10% of the units in the project to be converted. The designated units shall include those units occupied by senior or handicapped tenants, as defined below, at the time the notice to convert is given. If the number of units occupied by senior or handicapped tenants at the time the notice to convert is given is larger than 10%, the initial number of designated units shall be the number of units occupied by senior or handicapped tenants at the time the notice to convert is given; provided, that when the initial number of designated units is more than 10% of the units in the project due to their occupancy by seniors or handicapped, as designated units cease to be occupied by senior or handicapped tenants, such units shall cease to be classified as designated units until their number is reduced to the required 10%.

(b) For purposes of this section, seniors shall be defined as persons 62 years of age or older and handicapped shall be defined as persons who have a physical or mental handicap which substantially limits one or more major life activities, including caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working.

(c) The designated units are subject to the following restrictions:

(1) Occupancy by Seniors or Handicapped. The designated units shall be occupied by persons who are seniors or handicapped. However, if a designated unit is occupied by husband and wife, only one spouse need be senior or handicapped. Also, a surviving spouse of a senior who was married to the senior and occupied a designated unit at the date of death of his or her spouse shall be allowed to occupy the designated unit regardless of the age of the surviving spouse.

(2) Lease of Designated Units. Upon conversion, any senior or handicapped tenant as of the date notice to convert was given shall have the right to enter into a lifetime lease for the unit which the senior or handicapped tenant occupies. The lease shall provide that rental increases shall not occur more frequently more than once per year and each rental increase shall be limited to a maximum of 50% of the increase in the Consumer Price Index for the San Francisco-Oakland Metropolitan Area.

(Ord. 1206 § 3, (1981))

No unit purchased from the developer shall be sold within one year from the date of such purchase except for good cause amounting to a substantial change in the circumstances of the original buyer occurring after the date of the purchase. Upon any such resale or proposed resale, the developer shall have the right to repurchase the unit at a price equal to the price the unit was acquired by the original buyer plus interest and costs of purchase paid by said original buyer; the intent here being to make the original buyer whole if the developer elects such a repurchase.

(Ord. 1206 § 3, (1981))

No buyer shall be permitted from the developer more than 5% of the total units available for sale other than units designated for seniors and handicapped persons.

(Ord. 1206 § 3, (1981))

If permitted by the California Department of Real Estate, the declaration of covenants, conditions and restrictions for the project shall provide that only owners who occupy a unit shall qualify as candidates for election to the board of directors of the condominium association for the project.

(Ord. 1206 § 3, (1981))

The following shall apply to all conversions of residential units to condominiums:

(a) Notice of Intent. A notice of intent to convert shall be delivered to each tenant. The form of notice shall be on a form prepared by the community development department and shall inform tenants of all rights provided under this section. It shall be mailed or otherwise delivered within five days of filing the application.

(b) Leases for Continuing Tenants. Any tenant who does not wish to purchase a unit but who wishes to continue renting and gives notice of such intention within the time set forth herein shall be offered a lease of not less than two years, to take effect upon approval of the final map for the project. The lease shall provide for rent increases which shall not exceed 5% per year. Base rent for such leases shall be the rent in effect at the time the conversion application is filed with the city.

(c) Tenants' Right of First Refusal. In conformity with the applicable California Government Code sections, existing tenants of any unit shall be given a nontransferable right of first refusal to purchase the unit which they occupy at a price no greater than the price offered to the general public. Notice of exercise of such right must be given as provided herein.

(d) Notice of Tenant's Election. Each tenant shall have 90 days from the date of issuance by the California Department of Real Estate of the Subdivision Public Report or from the commencement of sale of the units, whichever date is later, to declare the tenant's election:

(1) Lease. To lease a unit;

(2) Purchase. To purchase a unit; or

(3) Vacate. To neither lease nor purchase a unit, but instead to vacate the project.

(e) Vacating Units by Nonpurchasing or Nonleasing Tenants and Payment of Moving Expenses. Each tenant of the project at the time the application for conversion has been filed who (a) has not previously given notice of his or her intent to move, (b) elects not to purchase or lease a unit or who is silent on the notice of right to buy or lease as provided herein, and (c) is not in default of the obligations of the rental agreement or lease under which he or she occupies his or her unit, shall have not less than one year from the approval date of the conversion permit or final subdivision map, whichever is later, to find substitute housing and relocate. The developer shall notify each such tenant immediately prior to the time of final map approval of the anticipated date required to vacate the unit and when the one-year period shall commence. Evidence of delivery of such a notice to each such tenant shall be submitted prior to approval of the final map. The developer shall pay each such tenant his or her actual moving expenses, provided that developer's obligation for a tenant's moving expenses shall not exceed four times the monthly rent paid by such tenant for his or her unit prior to tentative map approval as provided herein. A tenant commencing occupancy of a unit after the application for conversion is filed shall not be entitled to moving expenses. Tenants eligible to receive the moving expenses shall receive such expenses at the time they relocate.

(f) Increase in Rents. The rent of any tenant in the project for which an application for a conversion permit has been filed shall not be increased for one year from the time of filing of the application and thereafter no more than once each year until the unit is sold or until the subdivision application is denied or withdrawn. Any rental increase during such period shall not exceed one-half of the increase in the Consumer Price Index for the San Francisco-Oakland Metropolitan Area.

(g) Termination by Tenant. Any tenant shall have the right to terminate any lease or rental agreement for a unit within the project to be converted without any penalty whatsoever after notice has been given of the intention to convert if such tenant notifies the developer in writing 30 days in advance of such termination.

(h) Alternative Accommodations. The developer shall provide alternate comparable accommodations, including moving expenses, for such period the tenant is displaced or his or her unit is rendered uninhabitable by remodeling or other conversion procedures.

(i) Notice to New Tenants. 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. 1206 § 3, (1981); Ord. 1806 § 42, (2007))

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