Chapter 17.110 — CONDOMINIUM CONVERSION

A. On November 9, 2004, the city council adopted Resolution No. 7470 directing staff to draft a condominium conversion ordinance. The resolution was published as required by law. On March 22, 2005, the city council adopted uncodified emergency Ordinance No. 1035 relating to condominium conversions, and Ordinance No. 1042 was adopted by the city council on June 28, 2005, to extend the previously adopted emergency ordinance to October 26, 2005.

B. On December 14, 2004, the city council approved a vesting tentative map for the Lakeridge
Apartment Complex. This 324-unit apartment project is being converted to condominiums.
In the past three months, three additional apartment projects, Ashton Place, Sherwood and
Canyon Terrace have submitted applications for vesting tentative maps and intend to
convert the apartments to condominiums. On April 26, 2005, the city council approved the
vesting tentative map and condominium conversion application for Ashton Place. Staff has
received other inquiries pertaining to conversion of large apartment projects to
condominiums.

C. A trend exists statewide to convert apartments to condominiums.

D. Condominium conversion projects differ from other subdivisions and apartments as they
were not, in most cases, originally constructed or designed with single-family ownership in
mind. Consequently, the projects were not reviewed, nor were conditions in place to
address issues that might apply to ownership projects, but not to the same project if it
remained a rental apartment project.

E. Conversion of apartment rental units to for-sale condominium units may conflict with the
policies of the city to provide a reasonable balance of rental and ownership housing within
the city and within the city’s neighborhoods, to provide a variety of individual choice of
tenure, type, price and location of housing, and to ensure an adequate supply of rental
housing for low and moderate income persons and families.

F. It is also recognized that condominium conversion projects may benefit the city by
providing a source of more affordable ownership housing.

G. The city, in exercising its police power to enact ordinances designed to protect the public health, safety and welfare of the residents and to assure that the conversion of apartments to condominiums does not have an adverse effect on the city’s housing alternatives for people of all income levels, adopts the ordinance codified in this chapter to provide reasonable regulations and standards to govern conversion of apartment rental units. To ensure that any negative impacts involving conversion projects are avoided in both the short and long term, while maximizing the benefits of such projects, the city council finds it necessary to establish reasonable requirements and procedures for the review and approval of residential condominium conversions, as well as regulations to govern the operation of the converted projects after the units are sold.

H. This chapter is intended to apply only to residential condominium conversion projects and
to ensure such projects are approved consistently with policies and objectives of the city,
particularly the following:

1. To make adequate provision for the housing needs of all economic segments of the
community;

2. To facilitate ownership opportunities for condominium units which will be occupied
by owners;

3. To recognize the need to provide for a reasonable balance of rental and ownership
housing;

4. To help mitigate the impact of eviction for residents of rental units as a result of their
units being converted to condominiums;

5. To inform existing tenants and prospective condominium purchasers of the
conversion application, its overall impacts, and the physical conditions of the
structure offered for purchase; and

6. To ensure that units being converted to condominiums meet the reasonable physical
standards as required by this chapter and all other provisions of the Folsom Municipal
Code.
(Ord. 1041 § 1 (part), 2005)

The following definitions pertain to this chapter related to condominium conversions and new construction:

A. “Applicant” means the owner(s) or subdivider(s) with a controlling interest in the proposed
project, and any successors in interest.

B. “Association” means the organization created to own, lease, manage, maintain, preserve
and control the lots, parcels or areas of a project, or any portions thereof or interests therein
owned in common by the owners of the separately owned condominium units.

C. “Common area” means an entire condominium project excepting all units therein.

D. “Condominium” means and includes:

1. “Condominium” as defined by Section 783 of the Civil Code;

2. “Community apartment project” as defined by Section 11004 of the Business and
Professions Code;

3. “Stock cooperative” as defined by Section 11003.2 of the Business and Professions
Code; and

4. “Planned development” as defined by Section 11003 of the Business and Professions
Code.

The term “condominium” specifically includes, but is not limited to, the conversion of any
existing structure for sale pursuant to a method described in subsections (D)(1) through (4)
of this section.

E. “Condominium conversion” or “conversion” means a change in the ownership of a parcel
or parcels of property, together with structures thereon, whereby the parcel or parcels and structures previously used as rental units are changed to condominium ownership.
Condominium conversion includes projects which have previously obtained final map
approval, but have not proceeded to sell any of the apartment units to individual unit
owners.

F. “Condominium project” or “project” includes the real property and any structures thereon,
or any structures to be constructed thereon, which are to be divided into condominium
ownership.

G. “Condominium unit” or “units” means the individual spaces within a condominium project
owned as individual estates.

H. “Eligible tenant” means any tenant who was a resident of the project proposed for
conversion on the date notice of intent to convert is given as required by state law.

I. “Low income,” when used by itself or as a modifier of a person or household or other term,
means a household whose income does not exceed eighty percent of the median income
applicable to Sacramento County, adjusted for family size as published and annually
updated by the United States Department of Housing and Urban Development.

J. “Moderate income,” when used by itself or as a modifier of a person or household or other term, means a household whose income is eighty-one to one hundred twenty percent of the median income applicable to Sacramento County, adjusted for family size as published and annually updated by the United States Department of Housing and Urban Development.

K. “Notice of intent to convert” means the notice required to be served upon tenants or
prospective tenants pursuant to the requirements of Section 66427.1, 66452.8, 66452.9 or
66459 of the Subdivision Map Act. The definition includes both sixty- and one-hundred-
eighty-day notices as further defined in the applicable section.

L. “Residential condominium project” means a residential condominium project intended for
residential occupancy, the conversion of a building used for multiple-family rental housing
to condominium ownership intended for residential or nonresidential occupancy, and the
conversion of a nonresidential building to condominium ownership intended for residential
occupancy.

M. “Special category tenants” refers to persons or tenants who fall within one or more of the
following categories:

1. “Elderly” means individuals sixty-two years of age or older;

2. “Handicapped” or “permanently disabled” mean as defined in Section 50072 of the
California Health and Safety Code or 42 USC 423 and 24 CFR 8.3;

3. “Low income” or “very low income” mean as defined in this section.

N. “Unreasonable economic hardship” means a hardship which renders the project
economically infeasible and incapable of being accomplished in a successful manner
within a reasonable period of time.

O. “Vacancy rate” means the actual physical vacancy rate of nonrented apartments in the
project.

P. “Very low income,” when used by itself or as a modifier of a person or household or other term, means a household whose income does not exceed fifty percent of the median income
applicable to Sacramento County, adjusted for family size as published and annually
updated by the United States Department of Housing and Urban Development.
(Ord. 1041 § 1 (part), 2005)

A. Condominium Conversion Permit Required. No condominium conversion shall be permitted in any zoning district unless the city council has approved the granting of a condominium conversion permit. The permit application shall be submitted to the community development department, shall be reviewed by the planning commission and the project shall meet all the requirements of this chapter.

B. Standard for Approval. No application for a permit pursuant to this chapter shall be
approved unless the following findings are made:

1. The proposed condominium conversion meets all the development and other
standards set forth in this chapter.

2. All notices required by the Folsom Municipal Code or state law pertaining to
condominium conversions have been properly and timely served.

3. That at the time the application to convert is deemed complete, the percentage of
multifamily rental units is at or above fifteen percent of the total number of housing
units in the city of Folsom.

4. That during the current calendar year, the city council has not approved applications
for the conversion of more than fifteen percent of the existing multifamily housing
stock of rental projects of fifty or more units without provision being made by the
applicant to replace the rental housing units. Where multiple applications are on file
with the city on the effective date of the ordinance codified in this chapter, then the
order of priority shall be determined by the project which submitted a deemed
complete application satisfying all provisions of emergency Ordinance No. 1035 or
this chapter first.

5. That conversion of the project to condominiums will not be contrary to the public
health, safety and general welfare of the residents of the city, the surrounding
residential community or the city of Folsom.

6. That the proposed conversion is consistent with the general plan, zoning code and
other applicable provisions of the Folsom Municipal Code.

7. That the proposed condominium conversion will not cause a net reduction in the number of rental or for sale multifamily units in the city which are affordable for low and/or very low income tenants. In addition to the standards set forth above, the city council, in its discretion, may deny an application for a condominium conversion permit if it finds that the vacancy rate for multifamily apartment projects of fifty or more units is less than five percent averaged over the prior four quarters, or five percent in the quarter the application is reviewed by the city council or that converting additional apartment units would be detrimental to the general welfare of the residents of, and/or businesses in, the city.

   C. Hearing. The planning commission shall hear any application for a condominium conversion permit and shall make a recommendation to the city council pertaining to the permit. The city council shall have final authority to approve or deny an application for a condominium conversion permit. The hearing shall be held concurrently with any tentative subdivision map application. 1. Where the city council has approved the maximum number of units for a calendar year, the community development department may process applications for condominium conversion permits and the planning commission may review such applications at dates determined by the community development director during any calendar year. Where the maximum number of conversion units has been reached, the city council shall review the application in the next calendar year.

   D. Expiration of Condominium Conversion Permit for Failure to Establish Use. An approved condominium conversion permit shall expire two years following the date the permit was approved by the city council. 1. If an application for an extension of an approved condominium conversion permit is submitted prior to the expiration of the permit, the city council may grant a one-year extension of the permit upon a showing that: (a) the applicant has submitted an application to convert to the Department of Real Estate and is diligently pursuing conversion with the Department of Real Estate, and (b) that the applicant has submitted a final map for the project for approval by the city. Any extension of a permit shall be conditioned to require compliance with any new provisions applicable to such conversion projects and payment of all fees in effect at the time the extension is granted. (Ord. 1041 § 1 (part), 2005)

A. Acceptance of Application to Convert. The community development director shall accept applications for a condominium conversion permit and shall determine whether the standards and prerequisites for issuance of a permit as set forth in this chapter are met. Notwithstanding the review process set forth in this chapter, if the community development director determines that the project does not meet the approval criteria in this chapter, nothing shall prohibit the community development director from submitting the application to the planning commission for review and recommendation and then to the city council for final action.

B. No application for a condominium conversion permit shall be approved if the standards for
approval set forth in this chapter are not met.

C. Condominium Conversion Application Contents. Recognizing that the conversion of
existing structures that have been previously occupied and constructed as rental units may
present unique issues for present tenants and future buyers, the application for a
condominium conversion permit shall include the following information:

1. A boundary map drawn to scale showing the location of all existing easements and
structures.

2. The applicant’s proposal for the following:

a. Parking for each owner; and

b. The management of common areas within the projects and minimum
maintenance requirements for continued compliance with applicable health and
safety standards as established by the city.

3. Preliminary Site Plan. The applicant shall submit a preliminary site plan. The
preliminary site plan shall show all existing and proposed structures, parking areas,
drive aisles, driveways, parking lot lighting, utilities (water, sewer, drainage,
electrical, cable television, and gas), garbage collection and pickup locations, and any
other information required by the community development director. The preliminary
site plan shall show all existing and proposed landscaping, including existing trees,
and irrigation facilities.

4. Physical Elements Report. A report on the physical element of each structure and
facility shall be prepared and submitted to the city. The report shall be full and
complete, meeting all the requirements of this section, and in sufficient detail to
evaluate the project. The report shall address the items set forth in this section and
shall have been prepared within six months of submittal of the application.

a. A report detailing the structural condition of each major element of the property
including roofs, foundations, exterior siding and paint, electrical systems,
outdoor lighting, plumbing systems, utilities, irrigation systems, drainage
systems, mechanical equipment, paved and concrete surfaces, parking facilities,
recreational facilities, and fire protection systems, including fire alarm and
sprinkler systems. Regarding each element, the report shall state: (1) when the
element was originally constructed or installed; (2) when the element was last
repaired or replaced; and (3) any variation in the current physical condition of
the element from the requirements of the building codes in effect on the date
that the last apartment building was constructed. The report shall further identify
each defective or unsafe element and set forth the proposed corrective measures
to be employed and a timeline for completion of the corrective measures. The
report shall be prepared by an appropriately licensed contractor, architect,
registered civil or structural engineer or specialized inspector approved by the
city, other than the owner. For purposes of this section, a “specialized inspector”
is defined in the California Building Code.

i. Each structure and facility (pools, recreation area, garages, etc.) shall be
inspected as part of the report. A representative sample of not less than
twenty-five percent of the individual units within a structure shall be
inspected. The community development director shall approve the
representative sample and, in his/her discretion, may require a greater
percentage of individual units to be inspected based on the age or condition
of the project or information received or observed pertaining to the
condition of the project.

b. A structural pest control report shall be provided for each structure. This report
shall be prepared by a licensed structural pest control operator in accordance
with applicable state law.

c. A summary statement of repairs and improvements proposed to be made by the
applicant necessary to refurbish and restore the project to achieve a high degree of safety and aesthetic appeal.

d. A phasing plan indicating the order and the locations of repairs and
improvements to be made by the applicant.

e. For those projects that have deemed complete applications for a tentative
subdivision map to convert apartments to condominiums as of the date of
adoption of emergency Ordinance No. 1035, the physical elements report may
be submitted to the city up to three weeks prior to the date the city council is
scheduled to hear the condominium conversion and tentative subdivision map
application.

5. Rental History Report. The applicant shall submit a rental history report of rental rates
for the units, detailing the current rental rates and the rates for the prior twelve
months, including any rental incentive(s) provided to the tenants.

6. Relocation Assistance/Ownership Incentive Report. A report describing the
relocation assistance and ownership incentives, as identified under Section
17.110.060, shall be submitted.

7. Report on the Sales Program for Qualified Low, Very Low and Moderate Income, Disabled and Senior Tenants. A report describing the methods by which the applicant is providing incentives to qualified low and very low income, disabled and senior tenants to assist in the purchase of their apartment units shall be submitted. 8. Inclusionary Housing Plan. The applicant shall submit an Inclusionary Housing Plan pursuant to Chapter 17.104 of the Folsom Municipal Code. 9. Additional Information. If deemed necessary, based on the size, age, condition and/or improvements required in the proposed conversion project, the community development director, the planning commission, or the city council may require the applicant to submit additional information to supplement that required by this section. Such additional information shall be used to better evaluate the application for a condominium conversion permit, and make proper findings and/or imposed conditions in accordance with the purposes, objectives and requirements of this chapter, the general plan, or any specific plan or element thereof in effect at the time of such application.

   D. Notice of Proposed Conversion.

   1. It is the intent of the notice provisions in this chapter that all tenants and prospective
   tenants receive all available information pertaining to the proposed conversion project
   in a timely manner. Any ambiguities in the notice provisions are intended to be read
   as broadly as possible to ensure full and complete information is provided to residents
   and prospective residents.

   2. Notice of Intent to Convert. In addition to any notices required by state law, the
   applicant shall, at least sixty days prior to filing an application for a condominium
   conversion permit, notify all the tenants of the project, and the community
   development director for city of Folsom in writing, of the intended conversion. The
   notice must be provided in a single document and written in nontechnical language
   reasonably comprehensible to tenants and prospective tenants of the project. The notice shall include at least the following information and attachments:

   a. A general description of the proposed project;

   b. The name of the current owner and applicant and where such person or persons
   can be contacted;

   c. The anticipated schedule of approval and conversion;

   d. A copy of the city’s condominium conversion ordinance;

e. Notification of the tenants’ right to receive notice of hearings;

f. Notification of the tenant’s right to purchase the unit he/she is renting; to receive
notice of intention to convert prior to termination of tenancy due to the
conversion, and to receive notice of final approval of the application within ten
days of approval of the final map;

g. A copy of the proposed relocation assistance and ownership incentive plans as
required by Section 17.110.060;

h. Notification that the tenants will be given ten days’ written notice that an
application for a public report has been or will be submitted to the Department
of Real Estate and that such report will be available on request.

3. The notice of intent to convert shall be conspicuously posted at the on-site rental
office location and in at least two common areas including a community club house
pool area or mail pick-up area. In addition, said notices shall also be posted at each
driveway entrance to the project site. All required notices of intent shall remain posted
until the converted units are first offered for sale.

4. Notice to Prospective Tenants. All prospective tenants shall be provided the written
notice in this section at the time they are shown an apartment unit and prior to the
time a rental/lease agreement is executed. A signed copy of the notice shall be
retained by the applicant as proof of compliance with this provision.

5. Projects that have provided existing tenants with a notice of intent to convert as
required by the Subdivision Map Act, prior to the date Ordinance No. 1035 was
adopted, and have publicly posted the notices as required in this section, shall be
deemed to have satisfied the notice provisions for existing tenants of this section.
Prospective tenants, and any new tenant who commenced occupancy after the initial
notice, shall be provided the notices.

6. All notices required by the Subdivision Map Act shall be served by the owner as
required by statute. The owner shall bear the cost of all publication, printing and
delivery costs for required notices. Owner shall submit proof of noticing for all
owner-served notices.
(Ord. 1041 § 1 (part), 2005)

A. The community development department shall review all applications for permits submitted pursuant to this chapter and make a recommendation to the planning commission and city council based on the standards set forth in this chapter.

B. Review by Staff.

1. When corrective work is identified in the reports required to be submitted with the
application, or by subsequent site inspections by staff, or at staff’s direction, such
work shall be incorporated as conditions of approval on the project if not corrected in
advance of the first public hearing. All corrective work required shall be completed
prior to the approval of a final map or the applicant shall enter into an improvement
agreement with the city committing to the completion of the improvements in
accordance with the Subdivision Map Act and the Folsom Municipal Code.

2. The city shall charge a reasonable hourly fee (estimated as the actual cost to the city)
for inspections required by this chapter. The applicant shall post a cash deposit in an
amount equal to the estimated cost of inspection, as determined by the community
development director, prior to any inspection services being provided.

C. Design Review. Where the applicant proposes any modifications to the project site that fall
within the review criteria of Chapter 17.06 of the Folsom Municipal Code, such
modifications shall be reviewed according to the requirements of said chapter.

D. Review by Planning Commission. The planning commission shall review the proposed
condominium conversion project at a public hearing and shall make a recommendation to
the city council.

Notice of action by the planning commission shall be provided to all tenants and notice
of the public hearing shall be provided as set forth in Government Code Chapter 2.7,
commencing with Section 65090. All notices required by the Subdivision Map Act shall
be served by the owner or city as required by statute. Owner shall bear the cost of all
publication, printing and delivery costs for required notices incurred by the city. Owner
shall submit proof of compliance with the notice provisions of this chapter not less than
thirty days prior to a hearing by the planning commission.

E. Review by the City Council. The city council shall have final review of a proposed
condominium conversion project. The city council may approve or reject the project based
on the standards set forth in the condominium conversion permit portion of this chapter,
and the city council may impose additional conditions consistent with the review criteria.

Notice of action by the city council shall be provided to all tenants and notice of the public hearing shall be provided as set forth in Government Code Chapter 2.7, commencing with Section 65090. All notices required by the Subdivision Map Act shall be served by the owner or city as required by statute. Owner shall bear the cost of all publication, printing and delivery costs for required notices incurred by the city. Owner shall submit proof of compliance with the notice provisions of this chapter not less than thirty days prior to a hearing by the city council. (Ord. 1041 § 1 (part) 2005; Ord. 1109 § 5, 2008)

All condominium conversion projects must comply with the following requirements, which shall be incorporated into the conditions of approval on the project:

A. The applicant shall prepare a declaration of covenants, conditions and restrictions (CC&Rs)
which shall be recorded and apply to each owner of a condominium unit within the project.
The CC&Rs shall be subject to the approval of the community development director and
shall be recorded at, or prior to, the time of final map approval, and shall include all
applicable conditions of approval and requirements of the city. The CC&Rs shall, at a
minimum, provide:

1. That any amendment to the CC&Rs related to the conditions of approval or other
requirements of this chapter may not be approved without prior consent of the city.

2. That there shall be an entity created (e.g., a property or homeowners’ association)
which shall be financially responsible for and shall provide for the effective
establishment, operation, management, use, repair and maintenance of all common
areas and facilities.

3. A provision containing pertinent information regarding the conveyance of units and
the assignment of parking, an estimate of any initial assessment fees anticipated for
maintenance of common areas and facilities, and an indication of appropriate
responsibilities for maintenance of all utility lines and services for each unit.

4. A provision addressing the payment of water, utilities, gas and electricity by the
homeowner or through the association.

5. A provision prohibiting storage of anything but vehicles in any garage on the
premises, except where such storage does not impede parking of the maximum
number of vehicles intended for the garage.

6. A provision prohibiting storage of property, except patio furniture, barbecues, outside
fixtures and decorations, on exterior decks where the property is visible to the public
or other units in the project.

7. A provision requiring that any owner who rents his/her condominium unit shall utilize
a professional property management company to manage the rental unit or that there
exists a homeowners’ association which is responsible for management of the
common areas and enforcement of the CC&Rs.

8. A provision specifying that the number of people who may occupy a unit shall not
exceed that specified in the Uniform Building Code.

B. Standards. The following standards shall apply to condominium conversion projects:

1. Building Regulations. All structures within the project shall conform to applicable
building and zoning codes in effect at the time the last building was constructed on
the site, except as provided herein.

2. Fire Prevention. Each living unit shall be provided with a fire-warning system
conforming to current applicable codes in effect in the city. All common walls of units
shall be constructed and maintained in accordance with current building codes. The
number and locations of fire extinguishers and hydrants shall be in accordance with
current fire codes. Existing fire sprinkler systems shall be verified to be in good
working order and meet standards for the system installed.

3. Vibration Transmission. All permanent mechanical equipment (such as motors, compressors, pumps and compactors) which are determined by the building official
to be a source of structural vibration or structural-borne noise shall be vibration-
isolated with inertia blocks or bases or vibration isolator springs in accordance with
the standards in effect at the time the last building was constructed on the site.

4. Noise Standards. The structures shall conform to all interior and exterior sound
transmission standards of the California Code of Regulations and applicable sections
of the California Building Code. Where these standards cannot be feasibly met, in the
discretion of the building official, reduced requirements may be allowed by the
building official and the subdivider shall include notice of the deficiency in the final
physical elements report.

5. Utility Metering. Each unit shall be individually metered for gas and electricity. If this
requirement cannot be feasibly met, in the discretion of the community development
director, this requirement may be waived in the conditions of approval and a home or
property owners’ association, or similar entity, shall be formed for the payment and
billing of the applicable utility. At a minimum, separate exterior shut-off valves for
water, gas and electricity shall be provided for each unit.

6. Laundry Facilities. A laundry area shall be provided in each unit unless the city
council approves a common laundry area. If a common laundry area is approved, it
shall consist of not less than one automatic washer and dryer for each five units or
fraction thereof that do not have separate laundry facilities.

7. Parking. All parking required for the project shall be provided interior to the project. The Folsom Municipal Code parking requirements for multifamily projects shall apply to condominium conversion projects. The city council, on recommendation from the community development director, may require additional parking spaces per unit for units of three or more bedrooms. At least one of the required parking spaces provided for each unit shall be a covered parking space or garage, and at least one guest parking space shall be provided for every five units. No RV or boat storage shall be permitted on the premises or in the garages. 8. Disabled Access. The project site and every unit within the project shall comply with current building codes related to disabled access. 9. No television or radio antennas, dishes, or similar devices may be installed on the exterior of any building, except as required by law. All mechanical equipment and roof top antennas shall be shielded from view. 10. The applicant shall also provide not less than a two-year warranty on all appliances and mechanical equipment located in or servicing the unit, including heating and air conditioning units. 11. No existing residential use that does not conform to parking, setback, height or other provisions of the zoning ordinance shall be eligible for conversion to condominiums.

   C. Compliance with Inclusionary Housing Ordinance. Condominium conversion projects shall be subject to the city’s inclusionary housing ordinance.

   D. Tenant Provisions.

   1. No lease in good standing shall be terminated as a result of the conversion. Any tenant under an existing lease shall be offered the opportunity to remain in the unit until the
   lease expires. Tenants under an existing lease may terminate the lease after approval
   of the tentative map and the condominium conversion permit without penalty, but if
   terminated by the tenant prior to the owner serving the one-hundred-eighty-day notice
   required by Government Code Section 66427.1, shall not be entitled to any relocation
   or other benefits as provided in this chapter.

   2. No tenant who occupies a unit with children who are in school and who is not in
   default under the rental agreement or lease under which they occupy their unit shall
   be required to move from their unit prior to the end of the grade year. For purposes of
   this chapter, “grade year” shall refer to the Folsom Cordova Unified School District
   year.

   3. Tenant’s Right to Purchase. The applicant shall provide proof, in a form acceptable to
   the community development director, that it has complied with all state law
   provisions, including, but not limited to, Government Code Section 66427.1(d) prior
   to approval of a final map.

   4. Ownership Incentives. In order to reduce the number of tenants being displaced, the
   applicant shall provide incentives that would aid tenants in becoming owners in the
   converted project. Any such incentives, including terms and conditions, shall be
   documented by the applicant and approved by the community development director.
   Incentives may include, but are not limited to, low-interest loans, reduced prices,
   application of a percentage of rent payment toward a down payment for purchase of a
   unit within the project, or other similar items approved by the community
   development director. At a minimum, the incentives offered to existing tenants for
   purchase of a unit within a project shall be equal to, or greater than, the dollar value
   of relocation benefits provided to similarly situated tenants who are relocated.

   5. Tenant Relocation Plan. A tenant relocation plan shall be prepared and shall meet and
   provide at least the following requirements:

   a. All nonpurchasing present tenants who are not in default under the rental
   agreement or lease under which they occupy their unit shall have not less than
   one hundred eighty days’ notice from the date of receipt of notification from the
   applicant of its intent to convert as provided in Government Code Section
   66427.1.

   b. All nonpurchasing tenants shall be provided with up-to-date information on
   available apartments of comparable size, quality and price located within a
   fifteen-mile radius of the apartments to be converted. Transportation shall be
   provided to assist each elderly or disabled nonpurchasing tenant in seeking
   alternative housing.

   c. The economic terms of the tenant’s tenancy, including, but not limited to, rent
   and utilities allowance, shall not be modified to the detriment of the tenant
   during the period between the filing of a tentative map application or submittal
   of the condominium conversion application, whichever is sooner, and the date
   the tenant is required to relocate, or the date of the denial, withdrawal or
   expiration of the tentative map or condominium conversion permit.

   d. The approved tenant relocation plan shall be incorporated into the conditions on the project and shall be provided to each tenant in the project within ten days of
   approval of the condominium conversion permit.

   E. Rental Assistance.

   1. A rental assistance payment shall be provided to all nonpurchasing tenants equal to
   one month’s current rent. Said payment shall be paid in one lump sum within fourteen
   days of the date of their relocation. No more than one payment per unit is required.
   Payments under this section only apply to qualifying nonpurchasing tenants who are
   not in default at the time they vacate the premises and were tenants at the time the
   sixty-day notice of intent to convert, required by Government Code Section 66452.9,
   was served.

   2. Special Category Tenant. In addition to the rental assistance payment provided to all
   nonpurchasing tenants, any nonpurchasing special category tenant shall be offered a
   one-time payment equal to one year’s rent in effect at the time they were provided a
   notice of intent to convert, or an eighteen-month lease extension in which the annual
   rent increase shall coincide with the increases as shown in the “rent, residential”
   component of the housing component in the Consumer Price Index for all urban
   consumers in the Sacramento Primary Metropolitan Statistical Area. Either option
   identified above is determined by the applicant and shall be identified in the tenant
   relocation plan.

   3. All tenants who commence their tenancy after the date the notice of intent to convert
   required by Government Code Section 66452.9 and this chapter was served shall be
   notified in writing whether they will receive any rental assistance upon conversion.
   Tenants not properly noticed pursuant to the Government Code and required by this
   chapter shall receive relocation benefits regardless of date of tenancy.

   F. Relocation Assistance. For all tenants entitled to rental assistance, the applicant shall arrange for the physical move of all nonpurchasing tenants, at no cost to tenant, within a fifteen-mile radius of subject property or, at the applicant’s option, provide five hundred dollars in relocation assistance. No more than one such payment shall be made per unit. 1. No tenant, by virtue of the provisions of this chapter, shall have a vested right from the city to any of the benefits or other interest provided herein. Nothing in this chapter is intended to abridge any rights of tenants or obligations of owners as provided in state law.

   G. Sale of Units.

   1. To the extent permissible by law, the applicant shall make a good faith effort, in the
   judgment of the city, to provide preference to people who presently live or work in
   the city of Folsom to purchase the for-sale units.

   2. All units, except as specified in this section or approved by the city council, must be
   sold to people intending to occupy the premises as their personal residence or to
   people purchasing the unit as a residence for an immediate family member or
   members for at least the first eighteen months. The applicant shall prepare a deed
   restriction or other acceptable recordable document which shall be recorded at the
   time of sale of the unit. An immediate family member shall include spouse, parents,
   grandparents, children, and siblings. The applicant shall require certification from the purchaser in a form satisfactory to the community development director to assure
   satisfaction with this requirement. The applicant shall be permitted to sell up to
   fifty percent of the one-bedroom units in the project to nonoccupant buyers. The
   applicant shall notify the community development department as to those units that
   are sold to nonoccupant buyers on a form satisfactory to the community development
   department.

   a. The following events shall be deemed to constitute “hardship” situations under
   which purchasers may transfer, sell, assign, convey or lease their rights, titles,
   and interests in the property prior to occupying and holding title to the property
   for a period of eighteen months:

   i. A transfer resulting from the death of purchaser.

   ii. A transfer by purchaser where the spouse of purchaser becomes the only
   co-owner of the property with purchaser.

   iii. A transfer resulting from a decree of dissolution of marriage or legal
   separation or from a property settlement contract incident to such decree.

   iv. A transfer by purchaser into a revocable inter vivos trust in which
   purchaser is a beneficiary.

   v. A transfer necessitated by a medical or financial emergency, proof of
   which emergency has been delivered to the subdivider/project applicant,
   and has been approved by the subdivider/project applicant in its reasonable
   discretion.

   vi. A transfer which in the reasonable judgment of the subdivider/project
   applicant constitutes a hardship situation consistent with the intentions of
   this condition.

   H. Phasing Plan. The applicant shall work with the building division to limit unnecessary
   interference with existing occupants. A phasing plan shall be incorporated into the
   conditions of the project.

   1. No remodeling or improvements planned as part of the conversion shall be performed
   in a unit occupied by a nonpurchasing tenant without first receiving their written
   permission.

   I. The applicant or the homeowners’ association shall have an on-site manager responsible
   for rental units during the sales period so long as twenty or more units are used as rental
   units.

J. Security Inspection and Plan. The property and all common areas shall be inspected by the Folsom police department, who shall provide security recommendations to the applicant to address any physical safety and security issues such as lighting, landscape, and similar physical elements. Items identified shall be incorporated into conditions of approval of the application and shall be completed prior to the approval of a final map or issuance of the first building permit, whichever is sooner. The applicant may request of the community development department that it enter into an improvement agreement with the city committing to the completion of the improvements prior to the occupancy of the sale of the first unit within the project.

K. Homeowners’ Association. Prior to the approval of a parcel or final map, a home or property owners’ association or similar entity shall be formed for any condominium conversion project. The association shall, at a minimum, provide for the administration, management and maintenance of all common areas including landscaping, drive aisles and parking areas, maintenance of the exterior of all buildings, the collection of dues, payment of public utilities not billed separately to each unit, and enforcement of standards within the project. (Ord. 1041 § 1 (part), 2005)

The city council may, by resolution, establish reasonable fees and deposits to fully defray the cost of processing applications, proposals, inspections and for the administration of this chapter. (Ord. 1041 § 1 (part), 2005)