Del Mar Municipal Code Ch. 24.40 Condominium Conversions

Footnotes:

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Editor's note— Ord. No. 1012, § 3, adopted Oct. 7, 2024, repealed and readopted Ch. 24.40 to read as set out herein. Former Ch. 24.40, §§ 24.40.010—24.40.110, pertained to conversion of residential property, and derived from Ord. No. 396; and Ord. No. 905.

A. The conversion of residential rental units to ownership housing through common interest subdivision projects can have an adverse impact on the supply and availability of rental housing and result in the displacement of residents, who may be required to move from Del Mar due to the lack of opportunities for affordable replacement housing within the community. The State has determined that providing affordable housing is a "Statewide" concern resulting in numerous legislative attempts to protect affordable housing and to increase available housing opportunities for households at all income levels.

Measures are needed to preserve the City's existing supply of older dwelling units and apartments, which are an important source of comparatively more affordable, lower rent housing. When properly regulated, condominium conversions can create affordable housing units for lower income households through requirements for a portion of the units to be reserved as rent-restricted affordable units. In order to stem the loss of rental housing and maintain housing opportunities for a range of income levels, including moderate-, low-, very low-, and extremely low-income households, the City finds it is necessary to reasonably regulate condominium conversions.

B. The purpose of this Chapter is to establish criteria for the conversion of existing dwelling units to condominiums in common interest subdivision projects to:

1. Provide reasonable protection and mitigation for those persons renting dwelling units, who would be displaced by the conversion of such dwelling units to a condominium or similar form of ownership.

2. Reduce the impact of such conversions by providing notification of the proposed conversion, disclosure of the physical conditions of the structure that is offered for purchase, an opportunity to purchase the unit, and adequate time and assistance for relocation where applicable.

3. Ensure that converted housing achieves a high degree of appearance, quality, and safety, and is consistent with the goals of the City.

4. Achieve the affordable housing goals set forth in the Housing Element component of the Del Mar Community Plan.

(Ord. No. 1012, § 3, 10-7-2024)

A. The proposed conversion of existing dwelling units to condominiums is subject to the procedures and requirements of the California Subdivision Map Act (Government Code §§66410 et seq., as those sections may be amended from time to time), including obtaining either:

1. A Tentative Map in accordance with Chapter 24.50 subject to Planning Commission recommendation and City Council approval and a Final Map in accordance with Chapter 24.54 subject to City Council approval for a major subdivision into five or more parcels; or

2. A Tentative Parcel Map in accordance with Chapter 24.60 subject to Planning Commission recommendation and City Council approval and a Final Map in accordance with Chapter 24.54 subject to City Council approval or a Parcel Map Waiver in accordance with Chapter 24.64 subject to Planning Commission approval for a minor subdivision into four or fewer parcels.

B. The provisions of this Chapter shall apply to the conversion of any existing units to a condominium, community apartment project, or other similar tenancy-in-common form of ownership.

(Ord. No. 1012, § 3, 10-7-2024)

For purposes of implementing the provisions of this Chapter, the following words and phrases shall have the meaning assigned below:

Common interest subdivision shall mean a form of ownership in which the owner has exclusive ownership of a particular lot or unit combined with common ownership or beneficial use of certain areas and facilities that are owned jointly with other owners.

Community apartments shall mean a residential project that is a type of common interest subdivision with areas that are shared in common and where each apartment "tenant" has an ownership interest in the overall apartment complex in addition to having an exclusive right to occupancy of an apartment unit within the development. This definition applies only to community apartment projects of five or more units/interests that are processed in accordance with the Subdivision Map Act and this Chapter and does not apply to the leasing of traditional apartments where one entity owns the land and building(s) and rents out apartment units under leases where the tenant has the exclusive right to occupancy of an apartment but has no ownership interest in the property.

Condominium conversion shall mean a residential project that is a type of common interest subdivision with areas that are shared in common and where each condominium owner is entitled to exclusively occupy a unit within the development after conversion from a residential rental unit to an ownership unit in accordance with the Subdivision Map Act and this Chapter.

Tenancy-in-common shall mean an undivided form of ownership interest shared in common in accordance with the Subdivision Map Act and this Chapter.

(Ord. No. 1012, § 3, 10-7-2024)

In compliance with the procedures and requirements for obtaining either a Tentative Map or Tentative Parcel Map in accordance with Chapters 24.50 and 24.60, the subdivider shall provide the following submittal requirements:

A. A complete application form and fees in accordance with the adopted City's Fee Schedule to cover processing of the application and mailed notification to the occupant of each unit to be converted providing notice of the scheduled public hearings at which the application will be reviewed.

B. The accompanying plat that depicts the lot lines and includes the provisions for permanent monumentation and other features deemed necessary by the City Engineer.

C. The approved Coastal Development Permit, Design Review Board Permit, and other documentation where applicable to demonstrate that the proposed subdivision complies with the requirements established by the State and the City.

D. A Physical Element Report to disclose the structural condition of all elements of the property including but not limited to foundations, electrical, plumbing, utilities, walls, frames, ceiling, windows, appliances, mechanical equipment, stone and brickwork, fireplaces, exterior lighting, recreational facilities, refuse/recycling/compost disposal facilities, sound transmission of each building, and parking facilities.

1. Regarding each such element, the report shall state, to the best knowledge or estimate of the applicant, when such element was built or installed; the condition of each element; the approximate date upon which such element will require replacement and/or when said element was replaced; the approximate condition of each element; and the approximate date upon which said application for conversion was filed and accepted by the City.

2. The report shall identify any known defect or unsafe elements and set forth the proposed corrective measures to be employed.

3. The report shall identify for each element any variation of the physical condition from the current zoning code and building code in effect on the date of application.

E. A Pest Control Report from a licensed structural termite and pest control specialist certifying whether or not all attached or detached structures are free of infestation and structural damage caused by pests and dry rot.

F. Within the Coastal Bluff Overlay Zone or Bluff, Slope, and Canyon Overlay Zone, a Geotechnical Report prepared by a licensed engineer to disclose 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 geotechnical reports or soils reports for the site and copies of said reports shall be submitted.

G. A Paint Assessment Report by a licensed painting contractor verifying the condition of the painting throughout the project, including building interior and exterior surfaces and an estimate of the remaining life of the paint or similar stained design.

H. A Roof Assessment Report by a licensed roofing contractor verifying the condition of the roofs of all structures and an estimate of the remaining physical life of the roofs.

I. A Common Area Assessment Report on the condition of the common area improvements, including landscaping, lighting, utilities and streets.

J. A Water and Sewer Assessment Report that provides documentation proving that the existing water and sewer lateral sizes meet the building's needs without compromising flow capacity or compliance with public infrastructure standards.

K. A statement of how the development meets the required findings for approval in Section 24.40.070, including an explanation of how the development complies with the required standards in Section 24.40.050, including any repairs or improvements the subdivider intends to make to demonstrate the project will achieve a high degree of appearance, quality, and safety.

L. The covenants, conditions and restrictions (CC&Rs) and homeowners association (HOA) rules and regulations that would apply to all owners of condominium units within the project, which shall include, at a minimum: the conveyance of units; assignment of parking and storage areas; an agreement for common area maintenance; provision of common area access to the street frontage of the development; and an estimate of any initial assessment fees anticipated for such maintenance. The fee estimate shall identify the anticipated water and sewer fees.

M. Specific information concerning the demographic and financial characteristics of the project (e.g., square footage and number of rooms in each unit; rental rate history; monthly vacancy rate; number of tenants and tenant households in the project; etc.).

N. Any other information which, in the opinion of the Director, will assist in determining whether the proposed project will be consistent with the purposes of this Chapter.

O. The final form of the required reports and documents identified above shall be subject to approval by the City. The reports in their accepted form shall remain on file with the Planning and Community Development Department for review by any interested persons.

P. The subdivider shall provide prospective buyers with a copy of all final reports prior to executing any purchase agreement or other contract to purchase a unit in the project. The seller shall give the purchaser sufficient time to review said 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. No. 1012, § 3, 10-7-2024)

A. All condominium conversions shall conform to the Municipal Code in effect at the time of Tentative Map approval, including, but not limited to, the provisions of Chapter 24.21 (Inclusionary Housing), except as otherwise provided in this Chapter.

1. Legal non-conforming structures, parking, and density may be maintained in accordance with Section 24.40.050(C).

2. Any code violations must be corrected prior to the approval.

B. Building Regulations. The project shall conform to the applicable provisions of the Building Codes in effect at the time of application submittal.

C. Zoning Regulations. The project shall conform to the applicable standards of Del Mar Municipal Code Title 30 in effect at the time of application submittal except as herein provided. Legal nonconforming structures may be converted, including property that is nonconforming with the underlying zoning designation's maximum density development standards. However, to achieve a high degree of appearance, quality, and safety, the City may require abatement of any legal non-conformity if such abatement is determined to be reasonably feasible, financially or structurally.

D. Fire Prevention.

1. Smoke Detectors. Each dwelling unit shall be provided smoke detectors that comply with the latest California Building Code standards, which shall be mounted in each bedroom and outside each bedroom in the immediate vicinity of the bedrooms, and on each story of the dwelling unit.

2. Carbon Monoxide Detectors. Carbon monoxide detectors shall be provided in dwelling units that contain a fuel-burning appliance or fuel-burning fireplace or an attached garage, which shall be located outside each bedroom or in the immediate vicinity of the bedrooms, on each level of the dwelling unit, and in each bedroom where a fuel-burning appliance of fireplace is located within the bedroom.

3. Maintenance of Fire Protection Systems. All fire hydrants, fire alarm systems, portable fire extinguishers and other fire protection equipment shall be retained in an operable condition at all times and in compliance with applicable codes and standards.

E. Sound Transmission.

1. Shock Mounting of Mechanical Equipment. All permanent mechanical equipment such as motors, compressors, pumps, and compactors which is determined by the Planning and Community Development Department 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 Planning and Community Development Department.

2. Noise Standards. Each dwelling unit shall conform to all interior and exterior sound transmission standards of the California Building Code. In such cases where present standards cannot reasonably be met, the City Council may require the applicant to notify potential buyers of the noise deficiency currently existing within these units.

F. Utility Metering. Each dwelling unit shall be separately metered for gas and electricity. A plan for equitable sharing of common area utilities shall be developed prior to final map approval and included in the covenants, conditions and restrictions (CC&Rs). 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 City Council.

G. Water and Sewer. The condominium conversion shall comply with the following water and sewer requirements:

1. Water Laterals and Water Meters.

a. The converted condominium structure may utilize a single water lateral for potable water supply.

b. The applicant's designer must verify and ensure that the existing water lateral pipe size has the adequate capacity to provide the necessary water flow to all proposed fixtures within the condominium conversion. If not, then an appropriately sized water lateral and meter shall be installed.

c. A separate water lateral and meter shall be required for landscape irrigation.

2. Sewer Laterals.

a. The converted condominium structure may use a single sewer lateral for sewage needs.

b. The applicant's designer must ensure that the sewer lateral has the capacity to effectively convey the effluent per the standard requirements specified by the Public Works Department.

H. Private Storage Space. Each dwelling unit shall have a private storage space with a minimum volume of at least 200 cubic feet of enclosed weather-proofed and lockable private storage in addition to guest, linen, pantry, and clothes storage spaces customarily provided. Such space may be provided in any location approved by the Planning and Community Development Department but shall not be divided into two or more locations. 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 City Council.

I. Laundry Facilities. A laundry area shall be provided in each unit. 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 City Council.

J. Landscape Maintenance. All landscaping shall be restored as necessary and maintained to achieve a high degree of appearance and quality, especially following remodeling or construction efforts associated with conversion of the property to condominium ownership.

K. 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. When the homeowners' association takes over management of the 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.

(Ord. No. 1012, § 3, 10-7-2024)

A. Applications for conversion of residential real property into a condominium project, a community apartment project, or a project with similar tenancy-in-common form of ownership shall comply with all of the findings set forth in Section 66427.1 of the Subdivision Map Act, as that section may be amended from time to time, and provisions in this Section relating to tenant notification, offers to tenants for first right of refusal to purchase a unit, and tenant relocation assistance.

B. Tenant Notification.

1. The subdivider shall provide notice to prospective tenants in accordance with Sections 66452.17 and 66452.18 of the Subdivision Map Act, as those sections may be amended from time to time, and shall provide evidence of receipt of each tenant of the notices required herein.

2. The subdivider shall post a notice of application on the property and provide a notice of application to the occupant of each unit to be converted.

3. Mailed notice of any public hearing of the Planning Commission and/or City Council at which the application for the Final Map or Map Waiver will be reviewed shall be provided to the occupant of each unit to be converted.

C. Tenant First Right of Refusal to Purchase Converted Units.

1. Prior to offering a converted dwelling unit for sale to the general public, the tenant(s) of a dwelling unit approved for condominium conversion shall be afforded the first right of refusal to purchase one of the converted dwelling units. The offer shall be provided to each tenant for a period of 90 calendar days from the date of issuance of the final City approval unless the tenant gives prior written notice of his or her intention not to exercise the right. The offer to tenants shall provide the same or more favorable terms and conditions than the dwelling unit will initially be offered to the general public.

2. If the number of displaced tenants desiring to purchase one of the converted units is greater than the number of units available, a lottery system shall be used to determine a priority ranking.

D. Tenant Relocation Assistance.

1. As a condition of approval of any application for a condominium conversion, the subdivider shall provide a Tenant Relocation Payment to the tenants of the rental units who would be displaced as a result of the condominium conversion and who meet the criteria of either a "Qualified Tenant" or an "Eligible Tenant," as specified in this Section.

For purposes of Chapter 24.40, the following terms shall apply:

a. Qualified Tenant shall mean a tenant who has resided in the rental unit to be converted for at least 90 days prior to date at which provision of a notice of intent of a condominium conversion is issued pursuant to the requirements of this Chapter and who, as of the date of the City's authorization of the condominium conversion, meets one or more of the following criteria:

i. Is 62 years of age or older;

ii. Has a disability, as defined by criteria set forth by the Social Security Administration (SSA); or

iii. Has one or more minor dependent children who has lived with the tenant for at least 300 days of the current or previous calendar year.

b. Eligible Tenant shall mean a person, 18 years of age or older, who has resided at the property for at least 90 days prior to date at which provision of a notice of intent of a condominium conversion is issued pursuant to the requirements of this Chapter but who does not meet the criteria of a Qualified Tenant, as specified in this Section.

2. Rate of the Tenant Relocation Payment. All residents who reside within a unit being converted shall be entitled to relocation assistance in the amount of three months' rent based on the Fair Market Rent for apartment size for the San Diego region as determined on an annual basis by the United States Department of Housing and Urban Development (HUD).

3. The payment of the Tenant Relocation Payment shall be paid as follows:

a. If the rental unit is occupied solely by a single Qualified or Eligible Tenant, they shall be paid the full amount of the Tenant Relocation Payment.

b. If a rental unit is occupied by two or more persons, each shall be paid a pro-rata share of the Tenant Relocation Fee based on their qualification as either a Qualified or Eligible Tenant.

4. The disbursement of Tenant Relocation Payments shall be paid by cashier's check, sent by registered mail a minimum of 60 days prior to the date at which the Qualified or Eligible Tenants are required to relocate from the premises.

5. A minimum of 20 calendar days prior to dispersing Tenant Relocation Payments, the Subdivider shall provide the Planning Director with a summary of the Tenant Relocation Payments to be made.

(Ord. No. 1012, § 3, 10-7-2024)

The City Council shall not approve an application for conversion unless the City Council finds that:

A. All provisions of this Chapter are met;

B. The proposed conversion is consistent with the City of Del Mar Community Plan (General Plan), including the Housing Element and the certified Local Coastal Program;

C. The proposed conversion will conform to the Municipal Code in effect at the time of Tentative Map approval except as otherwise provided in this Chapter;

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

E. The conversion would not result in displacement of lower income and moderate income households without the subdivider providing for adequate relocation compensation or mitigation.

(Ord. No. 1012, § 3, 10-7-2024)

The regulations of this Chapter shall be enforced according to the provisions in Chapter 1.08.

(Ord. No. 1012, § 3, 10-7-2024)

Should a court of competent jurisdiction determine that these regulations are void or if certain terms or provisions are voided, then those regulations shall either become void in their entirety, or, where the courts have determined that certain terms or provisions are void by operation of the law, then those terms and provisions shall have no force or effect.

(Ord. No. 1012, § 3, 10-7-2024)