Morro Bay Municipal Code Ch. 16.48 Condominiums and Conversions

Condominiums, community apartments and stock cooperatives provide for ownership of separate dwellings, or equity coupled with a right of exclusive occupancy, as well as common areas within multiple-family housing normally managed and maintained by an owner's association. This mix of individual and common ownership and the potential problems of converting existing apartments make special regulations necessary.

The city has determined that condominiums differ from apartments in some respects and, for the benefit of public health, safety and welfare; the conversion of such projects should be treated differently from apartments.

These regulations are intended to:

A. Establish requirements and procedures for the conversion of existing rental housing to residential condominiums and other forms of occupant housing.

B. Provide for compliance with the land use element and housing element of the city's general plan.

C. Assure that purchasers of converted apartments are aware of the condition of the structure, which is offered for purchase.

D. Provide design and property improvement standards for condominium/conversion projects.

E. Maintain a healthy inventory of rental housing suitable for persons of low and moderate income.

(Ord. No. 522, § 3, 3-12-2007)

All condominium projects (including residential, commercial, and industrial projects) shall be subject to all applicable provisions of the Subdivision Map Act and Titles 8 and 9 of this code, and all other applicable state and local laws and ordinances.

(Ord. No. 522, § 3, 3-12-2007)

The procedures and standards contained in this chapter shall govern all condominium and conversion projects. Commercial and industrial condominium projects may be exempt from the provisions intended to govern residential living units. Detached residential condominium projects shall be subject to the same criteria for small lot single-unit development, Section 17.07.040 D.

(Ord. No. 522, § 3, 3-12-2007; Ord. No. 654, § 20, 11-22-22)

The following shall be provided at the time of application for a condominium/conversion:

A. Property Condition Report. The application shall be accompanied by a property condition report. This report shall be in addition to and shall not replace any public report required by Government Code Section 66427.1(a) to be submitted to the department of real estate. The property condition report shall include at least the following:

1. A report detailing the condition of all elements of the property including foundations, ventilation, utilities, walls, roofs, windows, mechanical equipment, appliances which will be sold with the units, common facilities and parking areas. The report shall state, to the best knowledge of the applicant, and for each element: the date of construction, the condition, the expected useful life, the cost of replacement, and any variation from the zoning regulations in effect when the last building permit was issued for the subject structures. The report shall include evidence that the internal walls would meet current sound attenuation standards and that all current energy conservation standards are met. In the event the noise and energy standards are not currently met, the report shall explain proposed corrective measures to be used. The report shall identify all defective or unsafe elements or those, which may impair use and enjoyment of the property, and explain the proposed corrective measures to be used. The report shall be prepared by or under the supervision of a registered civil or structural engineer, licensed general contractor, or architect;

2. A report from a licensed pest-control operator describing in detail the presence and effects of any wood destroying organisms;

3. A report of any known soil or geological problems. Reference shall be made to any previous soil reports for the site.

B. Site Plan. The application shall be accompanied by a site plan, which shall include at least the following:

1. The location, number of stories, number of dwellings, and proposed use of each structure to remain and for each proposed new structure;

2. The location, use and type of surfacing for all open storage areas;

3. The location and type of surfacing for all driveways, pedestrian ways, vehicle parking areas and curb cuts;

4. The location and number of all covered and uncovered parking spaces;

5. The location of all existing and proposed utility lines and meters;

6. The location, height and type of materials for walls and fences;

7. The location of all landscaped areas, the type of landscaping, method of irrigation, and a statement specifying private or common maintenance;

8. The location and description of all recreational facilities;

9. The location, size and number of parking spaces to be used in conjunction with each unit;

10. The location, type and size of all drainage pipes and structures;

11. Existing contours, building pad elevations and percent slope for all driveways and parking areas.

C. Evidence of Delivery of Notice of Intent to Convert. The application shall be accompanied by signed copies from each tenant of the notice of intent to convert as specified in Government Code Section 66427.1. The applicant shall submit evidence that a certified letter of notification was sent to each tenant for whom a signed copy of the notice is not submitted.

D. Maps. The maps required by the California Subdivision Map Act shall accompany the application for conversion. Maps shall be processed in conformance with the applicable portions of this title. The tentative map application shall be accompanied by the declaration of covenants, conditions and restrictions, articles of incorporation, bylaws and contracts for the maintenance, management or operation of any part of the condominium/conversion project, which would be applied on behalf of any and all owners of the condominium units within the project. In addition to the requirements of Civil Code Section 1355 and any requirements, which might be imposed by the city consistent with these regulations, the organizational documents shall include provisions concerning the conveyance of units. The assignment of parking, an agreement for common area maintenance, including facilities and landscaping, an estimate of initial fees anticipated for such maintenance, an indication of responsibilities for maintenance of all utility lines and services for each unit. The covenants, conditions and restrictions document shall include a reference to an attached, updated property conditions report.

E. Other Information. The application shall be accompanied by any other information, which in the opinion of the director of public services will assist in determining whether the proposed project will be consistent with the purposes of these regulations.

(Ord. No. 522, § 3, 3-12-2007)

The director of public services shall establish the final form of the property condition report required by this chapter. A copy of any public report submitted to the department of real estate pursuant to Government Code Section 66427.1(a) shall also be submitted to the public services department. Approved reports shall remain on file with the public services department for review by interested persons.

(Ord. No. 522, § 3, 3-12-2007)

Each prospective purchaser shall be provided with a copy of all reports in their final form, except the signed notices of intent to convert, prior to entering escrow. Copies of the property condition report shall be available at the sales office and the project site.

(Ord. No. 522, § 3, 3-12-2007)

A. Notice of Intent to Convert. The applicant shall give each tenant a written notice of intent to convert at least one hundred eighty days before termination of tenancy due to conversion. The notice shall contain at least the following:

1. Name and address of current owner;

2. Name and address of proposed subdivider;

3. Approximate date on which the unit is to be vacated by nonpurchasing tenants;

4. Tenant's right to purchase;

5. Statement of no rent increase.

B. Tenant's Right to Purchase. Pursuant to Government Code Section 66427.1(d), the applicant shall give any present tenant a nontransferable right of first refusal to purchase the unit occupied at a price no greater than the price offered to the general public. This right of first refusal shall extend at least ninety days from the date of issuance of the subdivision public report or commencement of sales, whichever date is later.

C. Vacation of Units. Each nonpurchasing tenant not in default under the provisions of the rental agreement or lease under which he occupies his unit, shall have the right to remain not less than one hundred eighty days from the date of receipt of notification of intent to convert.

D. No Increase in Rents. A tenant's rent shall not be increased during the one hundred eighty day period provided in subsection C of this section.

E. Notice to New Tenants. After submittal of the tentative map, prospective tenants shall be given written notice of intent to convert prior to leasing or renting any unit.

F. Statement of Tenants' Right to Terminate Lease. Upon receipt of notification of intent to demolish or convert, tenants shall be permitted to terminate any lease or rental agreement without any penalty upon notifying the subdivider in writing thirty days in advance of such termination.

G. Statement of Tenants' Right to Reimbursement of Relocation Expenses. A list of available rental units of similar price and quality in the same general area as the building proposed for demolition or conversion shall be provided to each tenant by the developer for a period of not less than one hundred eighty days after the tentative map approval. If comparable rental housing is available in the area or elsewhere in the city, or if the tenant is able to find housing in the city independent of the attempts of the developer to find relocation housing, the developer shall make all necessary arrangements and pay all reasonable costs up to two times the most recent monthly rent of the unit to relocate nonpurchasing tenants into said housing. If comparable rental housing is not available in the area or in Morro Bay, or if the tenant chooses to relocate outside of Morro Bay, said tenant shall be reimbursed by the developer for all reasonable moving expenses for an amount up to two times the most recent monthly rent of the unit. Notwithstanding the provisions of this section, those tenants who would be moving or relocating for reasons that are not related to an application to convert shall not be eligible for relocation expenses.

(Ord. No. 522, § 3, 3-12-2007)

Prior to acting on applications, the planning commission shall hold a public hearing, notice of which shall be given tenants of the proposed conversion at least ten days beforehand.

(Ord. No. 522, § 3, 3-12-2007)

An application for condominium/conversion shall not be approved unless the following findings are made:

A. All provisions of these regulations have been met or will be met;

B. The proposed conversion is consistent with the general plan;

C. That there exist facts adequate to support the findings required under Sections 66473.5 and 66474 of the Government Code;

D. The proposed conversion will not displace low-income or moderate-income households or senior citizens at a time when no equivalent housing is readily available in the city.

(Ord. No. 522, § 3, 3-12-2007)

A. Building and Zoning Regulations. Conversion projects shall comply to the greatest extent possible with the city's building and housing codes and zoning regulations in effect on the date the application for conversion is accepted as complete.

B. Fire Safety. Each living unit shall be provided with approved smoke detectors mounted on the ceiling or wall at a point centrally located in the area giving access to rooms used for sleeping purposes.

C. Fire Protection Systems. All fire hydrants, fire alarm systems, portable fire extinguishers and other fire protection appliances shall be retained in operable condition at all times and shall comply with the current city standard.

D. Utility Metering. The consumption of gas, electricity, and water within each unit shall be separately metered and there shall be circuit breakers and shutoff valves for each unit.

E. Storage. Each unit shall have provision for at least one hundred cubic feet of enclosed, weatherproof and lockable private storage space, exclusive of cabinets and closets within the unit, and the space normally required for parking a vehicle in a garage. This space shall be for the sole use of the unit owner. The minimum opening shall be two and one-half feet by four feet and the minimum height shall be four feet.

F. Laundry Facilities. A laundry area shall be provided in each unit, or in common laundry space. Common facilities shall consist of at least one washer and dryer for each ten units or fraction thereof.

G. Parking. The number of parking spaces, including the provision of covered spaces, shall be as provided in the zoning regulations. Spaces for the exclusive use of each unit shall be so marked. Visitor parking and special stopping zones, if any, shall also be marked.

H. Refurbishing and Restoration. All structures, common areas, sidewalks, driveways, landscaped areas, and facilities, if defective, shall be refurbished and restored to a safe and usable condition. All deficiencies shall be corrected prior to recordation of the final map.

I. Private Open Space. There shall be provided with each unit a minimum of one hundred square feet of qualifying private open space. To qualify, open space must be private and directly accessible from the unit it serves, and must have a minimum dimension in every direction of ten feet for open space provided at ground level or four feet for open space provided on a balcony or elevated deck, and must be located outside the required front yard setback.

(Ord. No. 522, § 3, 3-12-2007)

Upon request by a subdivider, the planning commission may approve exceptions to property improvement standards for conversion projects. The nature of the exception shall be described in public notices for commission hearings on the condominium map. The commission may approve exceptions on the request only after a public hearing. In order to approve an exception, the planning commission must make the exception findings required by Section 16.44.020.

(Ord. No. 522, § 3, 3-12-2007)