Martinez Municipal Code Ch. 21.56 Regulations for the Conversion of Rental Units to Condominiums

[1]

Editor's note: Former Ch. 21.56, Regulations for the Conversion of Rental Units to Condominiums, which derived from Ord. 902 C.S., 1979, Ord. 937 C.S. § 1, 1981, and Ord. 938 C.S. § 1, 1981, was repealed by Ord. No. 1486, 4/1/2026.

A. To establish requirements and procedures to be followed for the review and approval or disapproval of the conversion of existing multifamily rental housing to residential condominiums;

B. To mitigate the effect of such conversions on tenants of rental housing as much as possible by providing a procedure for notice of conversion, assistance to relocate as necessary, and establish rental unit replacement requirements;

C. To establish criteria for condominium conversion projects by requiring conformance to the applicable building codes and other standards set forth in this Chapter;

D. To provide for planning, unforeseen change, and compliance with the City's General Plan and Housing Element; and

E. To provide a procedure whereby potential buyers of converted units will be properly informed as to the physical condition of the structure for purchase.

(Ord. No. 1486, 4/1/2026)

A "condominium conversion" means the conversion of the ownership of the units in a residential housing project that are or were previously occupied as rental units from a single ownership to an ownership in which the residential units may be sold individually. Such condominium conversions may include, but are not limited to, the conversion of existing rental residential housing projects to a community apartment project, a condominium project, and a stock cooperative, as defined in California Civil Code Section 1351.[1]

(Ord. No. 1486, 4/1/2026)

[1]

Editor’s Note: See now California Civil Code Section 4075 et seq.

The review authority shall not approve a condominium conversion project unless the proposed project conforms with the following findings:

A. The conversion of rental units to condominiums is consistent with the General Plan and the Municipal Code.

B. The conversion of rental units to condominiums will not be detrimental to the health, safety, or general welfare of the community.

C. Vacancies in the project have not been increased for the purpose of preparing the project for conversion.

D. The conversion will not adversely impact the community's ability to provide housing for all economic segments of the community.

(Ord. No. 1486, 4/1/2026)

The building and each unit proposed for conversion within the building shall comply with Martinez Municipal Code Chapter 15.05 (Residential Code). The Chief Building Official or designee shall, if deemed necessary, inspect the project. Upon completion of the inspection, if any, the Chief Building Official or designee shall identify all items evidenced by the application or the inspection to be in noncompliance with applicable building and safety standards. All such items shall be corrected to the satisfaction of the Chief Building Official or designee, prior to recordation of the Final Map.

(Ord. No. 1486, 4/1/2026)

A. Generally. All notices referred to in this Section shall be provided either by the property owner by personal delivery and mailing the notice via certified mail with return receipt requested. Evidence of compliance with this Section shall be submitted with the application for conversion or immediately thereafter, as applicable. Notices must be written in non-technical language comprehensible to all tenants of the building. Notices provided by the property owner shall be in both English and in the language used in the original lease or rental agreement, and any other language necessary to effectively communicate with the tenant population to clearly inform them of their rights as required by this Chapter. Copies of notices and forms shall be made available if a tenant indicates the items have been misplaced or lost or are otherwise needed. The property owner shall determine whether a member of the household of each unit can speak English and seek appropriate assistance in communicating the importance of the contents of the notice to any household whose members cannot speak English.

B. Notice of Intent to Convert to Current Tenants. Consistent with Government Code Section 66427.1(a), or any successor statute, at least 60 calendar days prior to the time of the filing of an application for the conversion of rental units, the property owner shall send to each tenant of the rental units to be converted a notice in the form outlined in Government Code Section 66452.9[1] or any successor statute.

[1]

Editor’s Note: See now Government Code Section 66452.18.

C. Notice of Intent to Convert to Prospective Tenants. Commencing at a date not less than 60 calendar days prior to the submittal of an application for the conversion of rental units, the property owner shall give notice of such application to each person applying after such date for rental of a unit of the subject property immediately prior to the acceptance of any rent or deposit from the prospective tenant.

D. Notice of Application to Convert Has Been Submitted. Within 10 calendar days after the submittal of a formal application for the conversion of rental units to a condominium development, the property owner shall send to each tenant, and provide to each person who becomes a tenant at any time subsequent to such date, a written notice informing the tenants of all rights provided under the Martinez Municipal Code and state law, including:

1. The property owner of the rental unit in which the tenant resides has submitted an application to the City to convert the units to a condominium development, the date such application was made, and if approved, that tenants will eventually be required to move unless they purchase the unit or qualify for and accept an offer of a lease as provided in this Chapter.

2. A detailed description of the property owner's plans for relocation of tenants, relocation assistance, compliance with the sales and lease program for qualified acutely low-, extremely low-, very low-, low-, and moderate-income tenants, and limitations on rent increases.

3. That the property owner submitted an application for a "Public Report" to the California Department of Real Estate and that such report will be made available upon request, in accordance with the provisions of California Government Code Section 66427.1(a) or any successor statute.

4. That each tenant will be given at least 10 calendar days' prior written notice by the property owner of the date, time, and place of any public hearing held on the application.

5. Each tenant will be notified in writing of the approval of the conversion, if it is approved, within 10 calendar days of such action by the property owner.

6. Each tenant will receive 10 calendar days' written notification from the property owner that a final map for the conversion has been recorded and the implications of that filing.

7. Tenants have a right to terminate their leases with no penalties.

E. Notice of Conversion Approval. If a conversion application is approved, then the property owner must provide a notice of conversion approval to each tenant within 10 calendar days of the approval. The notice of approval shall contain:

1. Tenant's right to purchase and the terms thereof;

2. Tenant's right of notification to vacate with approximate date the unit is to be vacated by;

3. Statement of terms and conditions of tenancy; and

4. Provisions for relocation and moving expenses, as described in Section 21.56.060.

F. Notice of Right to Purchase. If a conversion application is approved, then the property owner must provide a notice of right to purchase to each tenant. The notice of right to purchase shall be provided to each tenant at least 10 days prior to the submission of an application to the Department of Real Estate for a Public Report and shall contain:

1. The property owner shall provide notice to each tenant in the project of the fact that the application for a Public Report will be submitted and that upon the issuance of the Public Report the tenant will be granted an exclusive right to contract for the purchase of the unit occupied by the tenant.

2. Each tenant shall receive a written notice of an exclusive right to contract for the purchase of their respective unit upon the same terms and conditions that such unit will be initially offered to the general public or on terms more favorable to the tenant.

3. This right shall run for a period of not less than 90 calendar days from the date of issuance of the subdivision Public Report issued by the California Department of Real Estate, unless the tenant gives prior written notice of his or her intention not to exercise the right.

4. At least 10 days prior to the submission of an application to the Department of Real Estate for a Public Report, the property owner shall provide notice to each tenant in the project of the fact that the application for a Public Report will be submitted and that upon the issuance of the Public Report the tenant will be granted an exclusive right to contract for the purchase of the unit occupied by the tenant.

5. The notice shall further indicate the project will be subject to conditions, covenants, and restrictions establishing a homeowners' association to manage the project, that may restrict how the property is used, and that impose certain financial obligations on the owners of units within the project, such as the payment of monthly homeowners' association dues.

6. In addition, within 10 days of the issuance of the Public Report, the property owner shall by mail notify each tenant in writing that the Public Report has been issued and shall in writing grant the tenant the right to purchase the unit as provided in this Section.

7. If the notice is not mailed within 10 days of the issuance of the Public Report, then the tenant's right to purchase granted, pursuant to this Section, shall be extended for a period equal to 90 days from mailing of the notification.

G. Notice to Vacate. Each tenant shall receive written notice to vacate the unit. In accordance with the provisions of California Government Code Section 66427.1 or any successor statute, such notice shall be provided at least 180 calendar days from the first notice to vacate the unit and at least sixty 60 days prior to the filing of a tentative map. Additional notice shall be given at least 60 calendar days after the filing of the final map, provided that approval of a condominium conversion shall not impair the length of term or any other rights of a tenant under a validly existing lease or tenant agreement

(Ord. No. 1486, 4/1/2026)

For the protection of tenants in rental units proposed to be converted to a condominium, all property owners shall be required to prepare a "Tenant Relocation Assistance Plan" that outlines how the property owner will address and account for the following items, as applicable:

A. Relocation Fee. Any property owner who serves a notice of intent to convert to tenants pursuant to this Chapter shall pay a relocation fee to each tenant in accordance with the provisions of this Section. Such relocation fee shall be due and payable to each tenant who is not in default under their tenancy and does not exercise their right to purchase their unit, unless the existing property owner notifies each tenant in writing of the withdrawal of the notice of intent to convert prior to such time as the tenant has: given the property owner notice of their last date of occupancy, or vacated their unit if such notice of the last date of occupancy is not given by the tenant. The property owner must file a copy of such withdrawal notice with the City within one week after serving such notice on the tenant.

1. Amount of Fee. The relocation fee due to each non-purchasing tenant shall be calculated as follows:

a. Residing on property for less than two years: equivalent to three months' worth of fair market rent.

b. Residing on property for two years or longer: equivalent to four months' worth of fair market rent.

c. A tenant who, at the time of the notice of intent to convert is filed with the City, is disabled, 60 years or older, terminally ill, or who is a single head of household with minor children, shall be entitled to receive an additional payment of $2,500. If more than one additional payment category applies, then the property owner shall provide payment of $2,500 for each category.

2. Time of Payment. The relocation fee shall be paid to any tenant who vacates the rental unit at the time they vacate.

B. Temporary Relocation Assistance. If temporary relocation of any tenant is necessary for renovation or rehabilitation of a unit between the date of submission of the conversion application and the date established for permanent relocation of the tenant, then the property owner shall describe how they will maintain habitability for the tenant and any adjacent units during such time. In the event such actions requires a tenant to be temporarily relocated, then the property owner shall also include details about how they will assist with temporary relocation, which must include:

1. Rent. Offering an available unit at the same rent (if the property owner owns other properties within Central Contra Costa County as provided by the Contra Costa Transportation Authority).

2. Moving Expenses. Paying for moving expenses to both the temporary housing and back to the subject dwelling unit. Payment for moving expenses can either be paid directly by the property owner to a licensed and insured moving company or by reimbursing the tenant for the actual and documented cost of moving by a licensed and insured moving company.

3. Temporary Housing. Providing to pay for the cost of temporary housing in excess of their current monthly rent for the full duration of the relocation.

C. Right-to-Return and Rent Adjustments. The property owner must agree to continue renting to the existing tenant after repairs are complete with reasonable limits on rent increases for that tenant, as provided by the California Tenant Protection Act.

(Ord. No. 1486, 4/1/2026)

The conversion of rental housing into condominiums shall be subject to all applicable rules and regulations prescribed by the State Subdivision Map Act. In addition to exhibits as required by Martinez Municipal Code Section 21.42.060, the application shall also include details related to the following:

A. Location of each common area.

B. Location of each private open space.

C. Locations and dimensions of parking garages, carports, and individual parking spaces on the site.

D. Location and dimension of exterior storage space for each individual unit.

E. Landscaping Plan.

F. Tenant Relocation Assistance Plan, as referenced in Section 21.56.060.

G. Tenant Information:

1. Names of current tenants, addresses, and the length of time they have rented the unit;

2. Rental history of each unit for the preceding three years; and

3. Current rental rate for each unit.

H. A draft copy of a declaration of the conditions, covenants, and restrictions which will apply and which shall include an agreement for common area maintenance, including facilities and landscaping together with an estimate of the initial assessment fees anticipated for such maintenance; a description of a provision for maintenance of vehicular access areas within the project; and an indication of appropriate responsibilities for maintenance of all utility lines and services for each unit.

I. Other information which, in the opinion of the Community and Economic Development Director and City Engineer, or designees, will assist in determining whether the proposed project is consistent with this Chapter.

(Ord. No. 1486, 4/1/2026)

Each unit shall be subject to full parkland dedication fees at the rate in effect at the time the final map is filed less parkland dedication fees previously paid to the City for that unit.

(Ord. No. 1486, 4/1/2026)

A. Applicability. Condominium conversions which result in the conversion of 11 or more rental units shall be required to comply with Chapter 22.82 (Inclusionary Housing).

B. Credit for Prior Inclusionary Zoning Compliance. If the project was required to comply with the Inclusionary Zoning regulations at the time the project was originally constructed, then the project shall receive a credit towards its inclusionary housing obligation equal to the affordable housing requirement applicable at that time.

C. Existing Affordable Units. Any existing affordable units within the project created pursuant to the City's Inclusionary Housing regulations shall remain affordable units for the remaining extent of their deed-restriction term.

D. In-Lieu Fee Credit Limitation. If Inclusionary Zoning in-lieu fees were paid rather than creating affordable units, the property owner shall be responsible for payment of any difference between the previously paid in-lieu fees and the in-lieu fees required under the current Inclusionary Housing regulations.

(Ord. No. 1486, 4/1/2026)

In the event that 11 or more rental units are proposed for conversion to condominiums, then Applicants shall be required to provide one or a mix of the following:

A. Replacement Units.

1. Ratio. The Applicant shall provide replacement rental dwelling units on a one-to-one basis for each rental dwelling unit proposed to be converted starting with the 11th unit.

2. Location. The replacement units shall be on the same site as the converted project or at an alternative site within the City, subject to the approval of the Community and Economic Development Director, or designee.

3. Timing. The replacement units shall be available for occupancy no later than the date of final conversion of the respective displaced tenant.

4. Comparable Units. The replacement units shall be comparable to the converted units with respect to:

a. An equal number of bedrooms and bathrooms;

b. Size and quality of construction;

c. Accessibility features; and

d. Rent less than or equal to the original rental unit.

5. Inclusionary Requirements. Replacement rental units required pursuant to this section shall not be credited toward compliance with the City's Inclusionary Housing regulations, unless expressly permitted by those regulations.

B. In-Lieu Fee. Applicants may request to pay an in-lieu fee of all or some of the replacement units otherwise required. The in-lieu fee shall be calculated on a per-unit basis and be in an amount sufficient to mitigate the loss of rental housing that results from condominium conversions, in accordance with applicable law and as determined by the respective review authority.

1. Nexus Study. Applicants shall be responsible for preparation of a nexus study demonstrating the relationship between the fee and the cost of providing the replacement housing and reflect the full cost of replacing a comparable rental dwelling unit, including land acquisition, construction, and soft costs. The nexus study shall be subject to review by City staff or peer review by a qualified consultant at the expense of the Applicant.

2. Timing. The in-lieu fee shall be paid prior to recordation of the final map.

3. Use of Fees. The in-lieu fees collected shall be deposited in the Affordable Housing Fund.

C. Alternative Means of Compliance. Alternative means of compliance for providing replacement units may be approved upon showing, supported by substantial evidence, that strict application of these replacement requirements would preclude any reasonable economic use of the property, subject to City Council approval.

D. Exceptions. Condominium conversion projects shall not be required to comply with these replacement requirements if:

1. At least 90 percent of condominium units are purchased by current tenants.

2. Conversions to 100 percent housing units with long-term affordability restrictions for households earning 120 percent of Area Median Income ("AMI") or less.

(Ord. No. 1486, 4/1/2026)

A. Projects Converting 10 or Fewer Rental Units. Projects which propose to convert less than 10 rental units to condominiums shall be subject to approval by the Zoning Administrator.

B. Projects Converting 11 or More Rental Units. Projects which propose to convert 11 or more rental units to condominiums shall be subject to approval by the Planning Commission.

(Ord. No. 1486, 4/1/2026)

The procedure involved in the appeal of a Planning Commission action is set forth in Section 21.42.100.

(Ord. No. 1486, 4/1/2026)