Chapter 18.66 — Residential Condominium Conversions

Sections:

18.66.010 – Purpose 18.66.020 – Approvals Required 18.66.030 – Application Requirements 18.66.040 – Building Conditions/Inspections 18.66.050 – Required Amenities and Upgrades 18.66.060 – Public Hearing 18.66.070 – Review Standards 18.66.080 – Findings 18.66.090 – Special Conditions and Approvals 18.66.100 – Conditions, Covenants and Restrictions 18.66.110 – Tenant Rights to Purchase Units and Extended Leases 18.66.120 – Buyer Protection 18.66.130 – Appeal 18.66.140 – Time Limits

The purpose of this chapter is to set forth the requirements for processing an application for conversion of an apartment building to a condominium, once the threshold requirements for a conversion, as set forth in Municipal Code Chapter 14.24, are met. The annual report on the vacancy rate for all housing units in the County must show there is a vacancy rate of at least six percent of the total housing inventory before an application for a conversion may be filed, and no application may be filed for any building containing less than four units.

• A. Subdivision Procedures. Under Government Code Section 66426, a condominium conversion is treated as a subdivision subject to the provisions of the Act. A condominium conversion also is subject to the provisions of Municipal Code Chapter 14.24 and this chapter. A Use Permit and Tentative Map or Parcel Map approved by the Commission are required for all condominium conversion applications.

• B. Application. The application shall include all of the information and materials specified in the most up-to-date Department handout for residential condominium conversions, together with the required fee in compliance with the Master Fee Schedule. Initial review of the application, including time requirements and requests for information, shall be in compliance with Section 18.82.070.

• A. All condominium projects shall conform to the requirements of the residential zone in which the project is located. In addition, all projects, including conversion of multiple residential structures to condominiums, shall conform to the following standards, except as noted. In granting a Use Permit, the Commission may impose reasonable conditions to assure that a project complies with the required standards.

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• B. A site plan drawn to scale including, but not limited to, lot lines, property dimensions, easements, setbacks, and location of all structures, including streets and parking elements.

• C. A landscape plan drawn to scale including, but not limited to trees and tree clusters, shrub groupings, lawn and groundcover areas, special paving, hardscape and site furnishings, and a description of the condition of various elements.

• D. Building elevation drawings drawn to scale including, but not limited to, specifying all materials, details and features for all building sides.

• E. A statement regarding the current ownership of all improvements and underlying land.

• F. A property report prepared by a registered engineer or licensed qualified contractor, describing the physical condition and estimated remaining useful life of each of the various elements of the project proposed for conversion, including the following: building foundations, roofs, walls, sound insulation, mechanical, electrical and plumbing systems, onsite utilities, heating and air conditioning systems, earthquake and fire protection systems, together with recommendations in order to assure their continued useful life for a minimum of ten (10) years.

  1. A description of the structural condition of each element of the property, including foundation, braced walls, roofing and roofing structure, electrical, plumbing, utilities, ceiling, windows, recreational facilities, mechanical equipment, parking facilities, and appliances.

  2. Information when each element was constructed or installed, and/or last replaced, the approximate date when each element will require replacement, and the cost of replacing each element.

  3. Identification of each known defective or unsafe element as well as proposed corrective measures to be employed.

• G. A structural pest control report prepared within 60 days of the date of application by a licensed structural pest control operator, pursuant to California Business and Professions Code Section 8516 et seq., or successor section.

• H. Information regarding any known soil and geologic conditions, including soil deposits, rock formations, faults, groundwater and landslides in the vicinity of the project, a statement regarding any known evidence of soils problems relating to each element, and reference to any previous soils report for the site with copy of same.

• I. A qualified engineer's report on the condition of, and any repairs required to all paved areas and all drainage systems within the project.

• J. Sound transmission control details that include sections of the types of wall, floor, and ceiling construction that would be used in both common and interior partition walls, and published data from a recognized and approved testing laboratory or a statement from a licensed acoustical engineer as to the STC (sound transmission class) and ISI (impact sound insulation) of the proposed type of construction. Prior to approval of the tentative or parcel map, a compliance statement signed by a certified sound engineer shall be submitted to the building division.

• K. 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, quality and safety.

• L . A proposed budget for the maintenance and operation of common facilities, plus minimum reserves, including the estimated costs to the owner of each unit, projected over a five year period. The budget shall be reviewed or prepared by a professional management firm familiar

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with the costs of similar properties, or by other qualified professional, and that firm or person shall provide a statement of recommendations on the budget, together with a statement of professional qualifications.

• M.

  • A rental rate history report which shall include, but not be limited to:

  1. Name, address, age and length of occupancy of every tenant and occupant, including children, in the project on the date of application.

  2. Current rents for each unit, along with the date and amount of prior rent increases for the preceding five-year period.

  3. The monthly vacancy rate for each month during the preceding two years.

  4. The turnover rate for all tenants during the preceding two years.

  5. The percentage annual increase in maintenance and taxes occurring over the preceding five years.

• N. The approximate proposed sales price of each unit, and the pro forma budget proposed for submission to the California Real Estate Commissioner or similar estimate of projected annual operating and maintenance fees and assessments.

• O. All organizational documents. The covenants, conditions and restrictions (CC&Rs) may be submitted after the approval of the use permit and tentative or parcel map, however they must be submitted and approved prior to the recording if the final or parcel map.

• P. A copy of the application to the Department of Real Estate of the State of California for issuance of a final public report for the proposed conversion, including all attachments and exhibits required, pursuant to California Business and Professions Code Section 11011, or successor section.

• Q. Evidence of service by mail that the written notice of intention to convert, pursuant to Government Code Section 66452.18, and as required by Municipal Code Chapter 14.24, was provided to each tenant at least 60 days prior to filing a formal application. All required written notices regarding the condominium conversion shall be issued in the language that the rental agreement was negotiated and may be issued in additional language(s).

• R. Evidence of additional notification of the use permit application to all tenants who occupy the property following application filing. Such evidence shall demonstrate the subdivider has attached a clearly worded statement to the proposed deposit/rental agreement as well as a sign prominently displayed in the business office. This notice shall conform to the form and requirements contained in Government Code Section 66452.18 and as further detailed in Municipal Code Chapter 14.24

• S. 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. The Director may waive the submission of certain of the factual items if it is demonstrated that such information is not available and cannot be obtained.

• A. As part of the application review process, the premises shall be inspected by the Building Official to evaluate the condition of the structure(s). All inspection costs shall be incurred by the project’s owner or subdivider.

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• B. The Building Official shall inspect all structures and premises. The design, improvement, construction, and repair of all condominium conversions, including all common areas, shall conform to and be in accordance with the most currently adopted requirements of all California Model Building and Fire Codes, any adopted local modifications to these codes, and any other applicable ordinances, including, but not limited to:

  1. Housing Code;

  2. Electrical Code;

  3. Fire Code;

  4. Plumbing Code;

  5. Mechanical Code;

  6. Swimming Pool, Spa and Hot Tub Code; and

  7. Building Security Code.

Deficiencies found shall be corrected at the project owner’s or subdivider’s expense as required by the Building Official. Any existing dangerous condition that is not specifically itemized shall be corrected to the satisfaction of the Building Official.

• C. The Fire District shall inspect all structures and premises to determine the sufficiency of fire protection systems serving the structures and premises, report on any deficiencies, and indicate which deficiencies are required to be corrected by law. Deficiencies found shall be corrected at the project owner’s or subdivider’s expense as required by the Fire District.

• D. The Director shall inspect all structures, improvements, and premises for compliance with Development Code requirements applicable to the project. Deficiencies found shall be corrected at the project owner’s or subdivider’s expense as required by the Director.

• A. Facilities Required. The project shall be required to provide all of the following:

  1. Units. All units shall be brought into compliance with all provisions of this chapter prior to certificate of occupancy, and shall be duly inspected to ensure compliance.

  2. Building Components and Systems. Components and systems with a remaining life of five years or less shall be replaced

  3. Utility Distribution Systems. Utility system and equipment shall be in compliance with the adopted codes. All existing and proposed on-site utilities, including communication service and distribution facilities, and electricity service and boundary distribution lines of thirty-four and one-half (34½) kV or less, shall be placed underground to the nearest offsite pole, in a manner approved by the city engineer. All utility meters and other utility apparatus shall be concealed from public view.

     • a. Gas and electric service shall be separately metered and billed for each individual lot or unit.

     • b. In the case of a project in which units are not vertically separated by floor/ceiling assemblies, water service shall also be separately metered and billed for each

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individual lot or unit, as well as for all common facilities, the latter being billed to the association.

• c. Provision shall be made for individual shutoff valves in accessible locations, and all units shall be provided with separate water shutoff valves. There may be a master valve for each unit, or separate valves for each fixture in the unit.

• d. Electric panels shall be provided in accessible locations controlling the entire service to each unit.

4. Fire Detection Systems. Early-warning smoke detection systems and carbon monoxide detectors in the living quarters and fire protection appurtenances, as required by current state and local law, shall be required for all residential condominium conversions.

5. Fire Protection Systems. Subdivider shall demonstrate that wall and floor/ceiling assemblies comply with fire wall separation standards, as specified in the California Building Code. Fire protections systems for individual units and for the project as a whole shall be provided as required by the Fire District and applicable City codes.

6. Landscaping and Irrigation Systems. Street trees, all yard landscaping, and all irrigation systems required by Chapter 18.28 shall be provided.

B. Laundry Facilities.

1. Individual hookups shall be provided in each unit to accommodate washing machines and dryers, unless common facilities, including all new appliances, are provided on the basis of one washer and dryer for each five units or fraction thereof. Communal appliances which are determined to be a source or potential source of vibration or noise shall be shock mounted, isolated from the floor and ceiling, or otherwise insulated in a manner to lessen the transmission of vibration or noise. All major appliances provided shall be guaranteed to operate properly for a period of one year.

2. In cases determined by the Director where the project’s owner or subdivider can demonstrate that this standard cannot or should not reasonably be met, this requirement may be modified by the Director.

C. Private Storage Space.

1. Each unit shall have a minimum of 200 cubic feet of enclosed, weather-proofed and lockable private storage space, with no less than a horizontal surface area of 25 square feet, and an interior dimension of three and one-half feet. If the space is a reach-in type, it shall have an opening of three and one-half feet by six feet. If the space is a walk-in type, it shall have a minimum clear access opening of two and one-half feet by six and twothirds feet. This storage space shall be in addition to guest, linen, food pantry, and clothes closets that are customarily provided in each unit.

2. The space shall be for the exclusive use of the unit’s owner.

3. The space may be provided in any location, approved by the Director but shall not be divided into multiple locations. Location shall be in areas that are safe, convenient and unobtrusive to the functional and aesthetic qualities of the project. If located within common area, the association shall be responsible for the care and maintenance of the exterior surface of the space.

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4. In cases determined by the Director where the project’s owner or subdivider can demonstrate that this standard cannot or should not reasonably be met, this requirement may be modified by the Director.

• D. Parking. All parking shall be provided in compliance with Chapter 18.30, including any requirement for covered and guest parking. Up to five percent of the resident and guest parking ratio requirement may be waived, based upon a finding of unique circumstances of the site, location, age or occupancy of the project. In no case shall requirements for assigned resident spaces be waived.

• E. Pest Control. The project’s owner or subdivider shall repair or replace any damaged or infested areas in need of repair or replacement, as shown in the structural pest control report, which shall be prepared by a state licensed structural pest control operator and shall be dated and filed at least 30 days, but not more than 60 days, before the submittal of the final map.

F.

Sewer.

1. The sewer system shall be inspected and brought up to current standards, subject to the approval of the City Engineer.

2. If the apartment proposed for condominium conversion has not been levied a sanitary sewer line charge or other charges or fees required for ownership units, the project’s owner or subdivider shall pay any charges required by the responsible sewer authority, and shall provide to the City proof of the payment.

G. Sound Attenuation/Proofing.

1. All floor-to-ceiling assemblies between separate units shall meet the standards for the sound transmission class specified in applicable Building and/or Health and Safety Codes for residential condominium units, including the sound insulation performance criteria promulgated in Title 25, California Code of Regulations, Section 1092 or its successor.

2. The compliance shall be certified in the inspection report.

3. Occupancy Permits shall not be issued without first meeting these sound attenuation/proofing compliance requirements.

H. Street Improvements.

1. The project’s owner or subdivider shall improve or post security with the City guaranteeing the installation of required public right-of-way improvements to City standards in compliance with Chapter 18.100.070.

2. These improvements may include, but shall not be limited to, curbs, gutters, sidewalks, ramps, driveways, drainage devices, trees and tree wells, and streetlights.

I. Windows and Doors.

1. All windows and doors shall meet applicable window and door emergency escape/rescue requirements.

2. All locks shall be changed prior to the issuance of the certificate of occupancy so that no master key or other keys previously used will allow entry into any unit of the project after conversion.

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• J. Energy Conservation. Subdivider shall demonstrate that residential buildings conform to energy conservation standards promulgated in Title 24, Part 5, Article 1, California Code of Regulations, or its successor.

• K. Landscaping and Irrigation. All landscaping and irrigation shall be restored or new landscaping and irrigation shall be installed to achieve a high degree of appearance and quality. Provisions shall be made for continuing maintenance of all landscaped areas.

• L. Open Space. Total usable open space on a site having three or more dwelling units shall be at least 200 square feet per dwelling unit. This requirement shall be met by providing private open space, common open space, or a combination of the two.

  1. Private open space. This type of open space must:

     • a. Have minimum dimensions no less than six feet when a horizontal rectangle is inscribed within it;

     • b. Have at least two weather-proofed electrical outlets; and

     • c. Be at approximately the same level as, and immediately accessible from a room within the unit.

  2. Common open space. This type of open space must:

     • a. Have minimum dimensions of no less than 10 feet when a horizontal rectangle is inscribed within it;

     • b. Be open to the sky;

     • c. Be located at least fifteen (15) feet from any door or window of a dwelling unit; and

• d. Not include driveways or parking areas.

  3. Recreational open space. In addition to the private and common open space requirements above, a project of 25 units or more shall provide at least one element of recreational open space. For projects of 100 or more units, a multi-purpose or recreation room shall be provided. Any recreational open space element must be located at least 15 feet from any door or window of a dwelling unit.

  4. Modification of open space requirement. The open space requirements above may be modified by a supermajority of the Commission based on findings that a project site is physically constrained, or that the quality of life accommodated by the project will not be compromised, or that residents will benefit from other amenities that are located in close proximity to the project site.

• M. Trash and recycling collection areas. Trash and recycling collection areas shall be provided within 250 feet of the units they are designed to serve, and shall comply with the specifications for trash enclosures.

• A. The Director shall present to the Commission a written report in connection with any map setting forth its compliance or noncompliance with this chapter, and any other matters affecting the subdivision and the City.

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• B. The Commission shall conduct at least one public hearing on any tentative or parcel map. Notice of the hearing shall be given to all owners and tenants in compliance with the Section 66427.1 of the Act and with Chapter 18.106. These notice requirements are in addition to the notices mandated by Municipal Code Chapter 14.24.

In reviewing requests for conversion of existing apartments to condominiums, the Review Authority shall consider all of the following:

• A. Whether or not the amount and impact of the displacement of tenants if the conversion is approved would be detrimental to the health, safety, or general welfare of the community;

• B. The need and demand for lower cost home ownership opportunities which are increased by the conversion of apartments to condominiums; and

• C. If the Review Authority determines vacancies in the project have been increased for the purpose of preparing the project for conversion, the tentative map may be denied.

The Review Authority may approve or conditionally approve a residential condominium conversion application only after first making all of the following findings:

• A. All applicable provisions of the Act, this chapter, and the Development Code are met;

• B. The proposed conversion is consistent with the General Plan and any applicable specific plan;

• C. The proposed conversion will conform to all Municipal Code provisions in effect at the time of tentative map approval, except as otherwise provided in this chapter; and

• D. The overall design and physical condition of the condominium conversion will achieve a high degree of appearance, quality, and safety and is appropriately conditioned to ensure this achievement.

• E. The subdivider shall provide proof of the tenant notification set forth in Government Code Section 66427.1 so the required findings of that provision may be made.

• A. The subdivider shall supply the homeowners' association with copies of final approved building and site plans which shall show, among other things, the actual location of major utilities and services, such as irrigation pipes and controls, utility easements, and underground wiring, before the initial meeting of the association.

• B. The subdivider shall provide to the homeowners' association the following minimum warranties from the date of final or parcel map approval, unless otherwise specified:

  1. Roof and exterior finish. A 10 year warranty that all roofs and exterior finishes have been repaired as is necessary to ensure weather-proof conditions.

  2. Moisture barriers. A 10 year warranty that moisture barriers are sufficient to prevent collection of moisture on the ground under the buildings.

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3. Paved areas. A 10 year warranty of a useful life for all paved areas within the project.

4. Swimming pools. A ten (10) year warranty of structural soundness.

5. Appliances. A one year warranty at the close of escrow on any fixed appliances appurtenant to each unit.

6. Condition of equipment owned in common. A five year warranty at such time as escrow has closed on the sale of 51 percent of the units that all appliances and mechanical equipment to be owned in common are in operable working condition. The developer shall be responsible to maintain any appliances and mechanical equipment prior to the time that 51 percent of the units are sold.

• B. The subdivider shall establish the following minimum reserves prior to issuance of the first certificate of occupancy:

  1. A fund in the name of the homeowners' association that shall be earmarked for long-term reserves for capital maintenance replacement, and shall be equal to two times the estimated monthly assessment for each dwelling unit.

  2. A fund, through cash deposit or bond, equal to $1,000.00 for each dwelling unit in the project as minimum security for the various warranties required by this chapter. Such fund shall be maintained for the maximum period of the warranties.

• A. Project covenants, conditions, and restrictions (CC&Rs) shall be developed, and shall be subject to review and approval by the City prior to approval of the final or parcel map. The CC&Rs shall reference by incorporation this chapter and the adopted conditions of approval, and shall be recorded in conjunction with the final or parcel map.

• B. The declaration of restrictions shall prohibit the unenclosed storage of any vehicle intended for recreation purposes, including land conveyances, vessels and aircraft, but not including attached camper bodies and motor homes not exceeding 18 feet in length, unless approved storage areas are provided.

  1. The declaration of restrictions shall provide for approval by the City prior to any future modification of site plans, architectural elevations, exterior materials and colors or of any of the organizational documents.

  2. The declaration of restrictions shall require the designation of a project manager residing in the project or maintaining an office on-site to represent the association with full powers to enforce the various provisions of such document.

• A. As provided in Government Code Section 66427.1 or any successor statute, and as set forth in more detail in Municipal Code Chapter 14.24, the subdivider shall, as a condition of approval of the conversion and before offering the unit for sale to the general public, be required to provide tenants with an exclusive nontransferable right to contract for the purchase of the unit occupied by the tenant. The right shall run for a period of 90 days from the date of issuance of the subdivision public report pursuant to Business and Professions Code Section 11018, unless the tenant gives prior written notice of his or her intention not to exercise the right.

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• B. Tenant purchase assistance for low and moderate income tenants shall be provided as set forth in Municipal Code Chapter 14.24

• C. Extended leases may be required as set forth more fully in Municipal Code Chapter 14.24

A. The subdivider shall furnish each prospective purchaser of a unit a true copy of each of the following documents:

1. The use permit and all project conditions of approval issued under the provisions of this chapter;

2. Property report;

3. Structural pest report;

4. Building history report;

5. Soils report; and

6. Statement of compliance issued by the Real Estate Department of the State of California, or its successor document relating to operating and maintenance funds during startup.

• B. The subdivider shall make available the following information and documents to all potential and actual buyers of units in a condominium project:

  1. Copy of the approved proposed budget for maintenance and operation of common facilities, plus reserves, including the estimated monthly costs to the owner of each unit, projected over a five-year period. The budget shall be reviewed or prepared by a professional management firm familiar with costs of similar properties, or by another qualified professional, and that firm or person shall provide a statement of recommendations on the budget, together with a statement of professional qualifications;

  2. All organizational documents; and

  3. Any other information which the planning commission may require to be provided.

• C. The subdivider shall provide each purchaser with a copy of the reports required by this chapter in their final accepted form, except information that is personal and confidential in nature to any tenant, before the purchaser executes an agreement to purchase a unit in the project, and the subdivider shall give the purchaser sufficient time to review the reports. A copy of the reports shall be made available at all times at the sales office.

• D. Prohibition of discrimination against prospective buyers with children. Under no circumstances shall a project approved for conversion limit sales to families or individuals without children, unless it is demonstrated that the project as designed and built is not suitable for accommodation of children.

Any person dissatisfied with the decision made by the Commission may appeal to the Council. The appeal shall be processed and heard pursuant to the procedure set forth in Government Code Section 66452.5.

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• A. Withdrawal. If a tentative or preliminary parcel map for a subdivision to be created from a conversion is withdrawn before Commission review, a map for subdivision cannot be submitted again for one year after the date of withdrawal.

• B. Expiration. If a tentative or preliminary parcel map for a subdivision to be created from a conversion which has been approved or conditionally approved by the City expires, pursuant to Government Code Section 66452.6, a map for subdivision cannot be submitted again for one year after the date of expiration.

• C. Denial. If a tentative or preliminary parcel map for a subdivision to be created from a conversion is denied by the City, a map for subdivision cannot be submitted for one year after the date of denial.

• D. Sale. All rental units approved for conversion shall be offered for sale within two years of the issuance of the Department of Real Estate report.

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