Milpitas Municipal Code Ch. C.16 Condominium Conversions

The City is concerned with maintaining an adequate supply of housing for its citizens, including rental housing. In accordance with Goal HE-2 of the General Plan's Housing Element, the City must maintain high-quality residential and mixed-use neighborhoods and preserve existing housing resources, including units affordable to extremely low, very low, low, and moderate-income households and market rate units.

(Ord. No. 38.858, § 4, 9/2/25)

A. Declaration of Housing Shortage. When the number of vacant apartments being offered for rent or lease in Milpitas is equal to or less than six percent of the total number of apartment units offered for and under rental or lease agreement in Milpitas, a housing shortage exists which is inconsistent with the purposes of this Chapter and with the declared goals of the City relating to its General Plan Housing Element.

B. Determination of Vacancy Rate and Surplus. Whenever an application for a condominium conversion is filed, the Department shall conduct a vacancy rate survey of the existing rental apartment dwelling units in Milpitas. This survey shall be completed within 45 days from the date the application for condominium conversion is deemed complete.

C. Surplus Required for Conversion Application. An application for condominium conversion of existing multi-family rental housing units to residential condominium ownership shall not be approved unless there is a vacancy surplus of existing apartments which equals six percent or greater of the total number of apartment units within Milpitas, and if all of the adult tenants lawfully in possession of two-thirds of the units indicate their desire to convert such project to condominium ownership, in writing, to the City. In no event shall a number of lots, parcels, units, or rights of exclusive occupancy proposed exceed the vacancy surplus by 40 percent. Nothing in this Chapter shall be construed to prevent the payment of any consideration by landlord to tenant, provided however, consent obtained by payment to a tenant shall not be considered by the Council to be a free and willing consent unless payment of the same consideration is made to all tenants regardless of consent.

(Ord. No. 38.858, § 4, 9/2/25)

The following standards are required for any residential condominium conversion development.

A. Off-Street Parking. Conformance to the current off-street parking standards, see Chapter C.6 (Parking and Loading).

B. Landscape and Open Space. Conformance to the current landscape and usable open space requirements, see Chapter C.4 (Landscaping Standards) and Part XIII-B (Zone Regulations).

C. Housing and Fire. Conformance to the City's current Building Code (Title II: Building Regulation) and Fire Code (Chapter V-300).

D. Meters and Control Valves. The consumption of gas and electricity within each unit shall be separately metered so that the unit owner can be separately billed for each utility. A water shut-off valve shall be provided for each unit or for each plumbing fixture.

E. Overcurrent Protection. Each unit shall have its own panel board for all electrical circuits which serve the unit.

F. Impact Sound Insulation. Wall and floor-ceiling assemblies shall conform to the sound installation performance criteria in the California Administrative Code (Title 25, Section 1092 or its successor) and may be only replaced by another floor covering that provides the same or greater insulation.

G. Affordable Housing Supply. Affordable housing requirements of Chapter XII-1 (Affordable Housing Ordinance) shall apply to condominium conversions.

(Ord. No. 38.858, § 4, 9/2/25)

In no case shall a project limit initial sales in a manner that is discriminatory against households with children, based on source of income, or other characteristic protected by fair housing laws.

(Ord. No. 38.858, § 4, 9/2/25)

Condominium conversions are subject to a Conditional Use Permit consistent with Section D.4.030 (Use Permits) and the filing of a Tentative Map in accordance with Milpitas Municipal Code Chapter XI-1 (Subdivisions).

A. Staff Report. A copy of the public hearing staff report shall be provided to the applicant and each tenant of the subject property consistent with California Government Code section 66452.3.

B. Public Hearing Notice. Notice of the public hearing(s) on the application for a condominium conversion shall be provided by the City to all tenants of the subject property consistent with California Government Code section 66451.3.

C. Tenant Notice. The applicant shall give notice to tenants of the intention to convert to condominium ownership, as required by the Subdivision Map Act. The applicant shall provide the City with copies of all required notices, a complete list of all tenants served with the notice, and the dates and methods by which the notice was served.

D. Protection of Tenant Rights. In addition to the general findings required for approval of a Conditional Use Permit, approval of a Conditional Use Permit for a condominium conversion is subject to the Council finding that the requirements of California Government Code section 66427.1 have been completed in accordance with state law, which relate to:

1. Notice to tenant(s) of intention to convert; and

2. Tenant(s) exclusive right to purchase their unit(s) upon the same terms and conditions that such unit(s) will be initially offered to the general public or terms more favorable to the tenant(s).

(Ord. No. 38.858, § 4, 9/2/25)