SEC. 28.12. - Purpose.

The conversion of residential rental units to ownership housing impacts the supply and availability of rental housing and may cause displacement of residents, who may be required to move from the community due to lack of replacement housing. A reduction in the supply of rental housing creates pressure for higher rents in the remaining rental housing supply. Conversions may sometimes, however, provide home ownership opportunities that are more affordable when compared to new home construction.

It is the purpose of this article to seek to assure a reasonable balance of rental and ownership housing and a variety of individual choices of type, price and location of housing and to maintain the supply of rental housing for low- and moderate-income persons and families and to maintain the flexibility and redevelopment potential of the city's residential areas in substantial compliance with the city's general plan. This article is intended to ensure compliance with and implement the Conversion Limitation Act, adopted by the voters on November 6, 1979.

(Ord. No. 3.22, § 1, 4/12/22.)

In addition to all other requirements of the Subdivision Map Act, the provisions of Chapter 28 of the Mountain View City Code and this article shall apply to the conversion of any existing structure or structures to a condominium, stock cooperative, community apartment project, common green subdivision or tenancy-in-common in the City of Mountain View. The provisions of this article are enacted pursuant to the provisions of Section 200 of the Charter of the City of Mountain View and of the Subdivision Map Act.

(Ord. No. 3.22, § 1, 4/12/22.)

In addition to filing a tentative map or preliminary parcel map required for condominium conversion projects pursuant to Section 28.11.05 of Article VI, a development review permit in accordance with Section 36.52 or a planned community permit in accordance with Section 36.68 of Chapter 36 of the Mountain View City Code shall be required for condominium conversions. Permit applications shall be processed pursuant to Section 28.12.20.

a.

No permit application for residential condominium conversion shall be accepted, and no permit will be issued unless a preliminary determination has been made by the community development director that the application meets the requirements of Article IX of Chapter 28, the Conversion Limitation Act. If the community development director so determines, the application may be processed; however, the determination of eligibility shall not be final until approved by the city council. Conversions, demolitions and apartments/rentals with maps shall be counted in determining compliance with the Conversion Limitation Act.

b.

No tentative map or preliminary parcel map for condominium conversions shall be filed and no tentative or preliminary map shall be approved without the approval of a permit application under this section.

c.

Exclusions. No conversion of units may be applied for or approved unless the units are all of the same housing type (e.g., not mixed types of units), were constructed as an integrated project, and built as either apartments or townhouses. Complexes which have a mixed unit type or are of soft-story construction are not eligible for conversion to condominiums. Duplex units to six-plex units constructed in a single structure are not eligible for conversion unless located in a historic resource.

(Ord. No. 3.22, § 1, 4/12/22.)

a.

Notice to existing tenants. The subdivider or owner of an apartment building or residential complex proposed to be converted to a condominium, stock cooperative, community apartment project, common green subdivision and tenancy-in-common shall give to each tenant of the residential real property proposed for conversion the following notices and rights now or hereafter required by the Subdivision Map Act and as set forth in Section 66427.1 of said Act:

1.

Written notice of intention to convert, provided at least sixty (60) days prior to the filing of a tentative map or preliminary parcel map. The notice shall be in a form outlined in Section 66452.18(b) of the Subdivision Map Act.

2.

Written notice ten (10) days before submittal that an application for a public report will be, or has been, submitted to the department of real estate, that the period for each tenant's right to purchase begins with the issuance of the final public report and that the report will be available on request.

3.

Written notice that the subdivider has received the public report from the department of real estate. This notice shall be provided within five (5) days after the date the subdivider receives the public report.

4.

Written notice within ten (10) days after approval of a parcel map or final map for the proposed conversion.

5.

Written notice of intent to convert provided one hundred eighty (180) days prior to termination of tenancy due to the conversion but not before the city has approved a preliminary parcel map or a tentative map for the conversion. The notice given shall not alter or abridge the rights or obligations of the parties in the performance of their covenants, including, but not limited to, the provision of services, payment of rent or the obligations imposed by Sections 1941, 1941.1 and 1941.2 of the California Civil Code. The notice shall be in a form outlined in Section 66452.19(b) of the Subdivision Map Act.

6.

Written notice of an exclusive right to contract for the purchase of their respective dwelling unit upon the same terms and conditions that the unit will be initially offered to the general public or terms more favorable to the tenant. The notice shall be given within five (5) days after receipt of the subdivision public report. This exclusive right to purchase shall commence on the date the subdivision public report is issued, as provided in Section 11018.2 of the Business and Professions Code and shall run for a period of not less than ninety (90) days, unless the tenant gives prior written notice of their intention not to exercise the right. The notice shall be in a form outlined in Section 66452.20 (b) of the Subdivision Map Act.

7.

All other applicable notices and rights now or hereafter required by this chapter, or Chapter 2 or 3 of the Subdivision Map Act.

b.

Notice to prospective tenants. Commencing at a date not less than sixty (60) days prior to the filing of a tentative map or preliminary parcel map, the subdivider or their agent shall give notice of the filing to each person applying after that date for rental of a unit of the subject property immediately prior to the acceptance of any rent or deposit from the prospective tenant by the subdivider in accordance with Section 66452.17 of the Subdivision Map Act. The notice shall be in a form outlined in Section 66452.17(b) of the Subdivision Map Act.

c.

Keeping of records. The subdivider or owner shall be required to keep a copy of all notices required by Section 28.12.15 for a period of two (2) years after such notices were personally delivered or mailed, such records to include:

1.

A copy of each notice showing the date on which it was delivered or mailed; and

2.

Proof of the giving of the notice, consisting of:

(a)

If delivered, the signature of the person to whom it was delivered acknowledging such delivery; or

(b)

If mailed, proof of mailing, and, in the case of the notice of intention to convert pursuant to Section 28.12.15(a)(1), the return receipt if a receipt was returned by the recipient of such notice.

(Ord. No. 3.22, § 1, 4/12/22.)

In conjunction with processing tentative maps or preliminary parcel maps in accordance with this chapter and the Subdivision Map Act, permit applications for condominium conversions shall be reviewed and processed in accordance with this article and with Section A36.52 (Development Review), Section A36.68 (Planned Community Permits) and Section A36.50.020 (Review Authority) of Chapter 36 of the Mountain View City Code.

a.

Development review required. The zoning administrator shall hold a public hearing on the development review application in accordance with Section A36.80 (Applications, Hearings and Appeal(s)) of Chapter 36 of the Mountain View City Code and will provide a written recommendation to the city council for final

action on the development review application. The zoning administrator may route the proposal to the development review committee if exterior improvements are proposed or deemed necessary.

b.

Notice of city council meeting to consider tentative map. Following the date the city council fixes a meeting date for consideration of a tentative map, or the date the subdivision committee fixes a meeting date for consideration of a preliminary parcel map, which proposes the conversion of residential real property to a condominium, stock cooperative, community apartment project, common green subdivision or tenancy-incommon, but not less than ten (10) days prior to the said date for consideration, the community development director shall give a written notice to each tenant of the subject property informing said tenant of the date, time and place of the city council's or subdivision committee's consideration of the tentative map and the tenant's right to appear and be heard pursuant to Section 66451.3 of the Subdivision Map Act.

1.

Council meeting staff report to tenants. Additionally, a copy of any staff report or recommendation on a tentative map or a preliminary parcel map relating to the proposed residential condominium conversion shall be served on the subdivider and on each tenant of the subject property at least three (3) days prior to any hearing or action on said map by the city council or the subdivision committee, respectively, pursuant to Section 66452.3 of the Subdivision Map Act.

c.

Buyer and tenant protection requirements for conversion. In addition to the buyer protection provisions in Article VI, Section 28.11.05.1, conversion of residential real property to condominiums, stock cooperatives, community apartment projects, common green subdivisions and tenancies-in-common shall comply with the following requirements as additional protections to purchasers of individual units:

1.

Condition of improvements report required. A report entitled "Condition of Improvements Report" shall be prepared and certified by a licensed engineer or architect subject to approval by the city's chief building official. The subdivider or owner is solely responsible for all costs associated with preparing this report and shall pay a fee to the city for administering, reviewing and evaluating the report in accordance with subsection 28.12.30.g. The report, which shall be approved as to content by the chief building official prior to being distributed, shall set forth the consultant's best available information on the age and condition of the building or buildings proposed to be converted, including the estimated remaining life of the roof, foundation and mechanical, electrical, plumbing and structural elements of the building or buildings. The report shall further indicate those provisions of previously adopted city building and fire codes involving health and life safety items which have been changed since the date the building or buildings being converted were constructed, plus identify present building or fire code requirements which are not met. If a prospective purchaser is not a tenant of the apartment building or residential complex at the time the conversion map is filed with the city, the owner shall furnish a copy of said report to each such prospective purchaser prior to the time such person incurs the obligation to purchase a unit. If a prospective purchaser is a tenant of the apartment building or residential complex at the time the conversion map is filed with the

city, the owner shall furnish the report to such person at that point in time when such person is given the ninety (90) day exclusive right to purchase their unit.

2.

Structural pest report required. A report entitled "Structural Pest Report" shall be prepared and certified by a person, entity or corporation selected by the city's chief building official and licensed by the State of California as a structural pest control operator subject to approval by the city's chief building official. The subdivider or owner is solely responsible for all costs associated with preparing this report and shall pay a fee to the city for administering, reviewing and evaluating the report in accordance with subsection 28.12.30.g. This report shall also be furnished to prospective purchasers of each converted unit at those points in time mentioned in subsection 28.12.20.c.1, depending on whether such prospective purchaser is or is not a tenant of the apartment building or residential complex at the time the conversion map is filed with the city.

3.

Building inspection report required. A detailed building inspection and report shall be made by or at the direction of the chief building official, at the subdivider's or owner's expense, of all buildings or structures

proposed for conversion, and the report shall determine and identify any housing code violations, other code violations or other deficiencies involving a threat to life or property which must be corrected as a condition of approval of the tentative map or preliminary parcel map.

4.

Building and appliance warranty required. Each purchaser shall be granted by the subdivider or owner a one (1) year warranty on all appliances installed in their unit and to the homeowners association, and all purchasers of individual units shall be granted a one (1) year warranty on all structures in the project and on all electrical, heating, air conditioning, plumbing, ventilation equipment, roofing and elevators.

d.

Temporary housing required for tenant displaced due to renovation. As to any tenant or renter of an apartment unit or dwelling unit within a residential complex at the time a tentative map or preliminary parcel map for a conversion of that building or structure is filed with the city, who enters into a written agreement with the owner to purchase the dwelling unit once it has been converted, and who is thereafter required to

temporarily vacate or is temporarily displaced from said apartment or residential unit because the subdivider or owner is renovating or effecting certain structural modification to comply with the city's requirements, the owner shall be responsible for:

1.

Finding suitable, temporary replacement housing for such tenant and, if the monthly rent is higher for the replacement housing than for the apartment or dwelling unit being vacated, paying the difference in such monthly rent; and

Paying such tenant's actual moving expenses in temporarily moving from the said apartment or dwelling unit and moving back into the unit when the renovation or structural modifications have been completed and approved by the city.

e.

Additional tenant relocation assistance required. The city's most current tenant relocation assistance policy shall apply to all tenants who have not entered into a written agreement with the owner to purchase the dwelling unit once it has been converted.

(Ord. No. 3.22, § 1, 4/12/22.)

a.

Required city council findings for approval. The city council shall not approve any project for the conversion of any existing structure or structures to a condominium, stock cooperative, community apartment project, common green subdivision or tenancy-in-common unless it makes the following findings and determinations:

1.

That the proposed conversion is consistent with the longer-range goals of the general plan, the zoning district and any precise plan, and that the conversion does not conflict with the amortization or sunsetting of the allowed use of the building sought to be converted.

2.

That the proposed conversion would not adversely and seriously disrupt the effective operation or functioning of nearby schools or other community facilities.

3.

That the apartment building or residential complex proposed for conversion does not represent a unique and needed housing resource in the city or in the neighborhood taking into consideration such factors as the need for a balanced rental-owner housing supply, current rental rates, apparent appeal to families with children and special tenant displacement problems which would result from the conversion.

4.

That any proposed condominium conversion has complied with the city's most current tenant relocation policy.

5.

That any proposed condominium conversion has met all noticing requirements as outlined in Articles VI and VII.

b.

Mandatory grounds for denial. In addition to those grounds for denying a final map or parcel map which are set forth in Sections 66473.5 and 66474 of the Subdivision Map Act and in Article IV (Parcel Maps and Final Maps) of this chapter, the city council shall not approve a final map, or the city engineer approve a parcel map, for a subdivision to be created from the conversion of residential real property into a condominium, stock cooperative, community apartment project, common green subdivision or tenancy-in-common unless it is found as follows:

1.

Each tenant of the residential real property has received or will have received each of the notices and rights pursuant to subsection 28.12.15.a. of this article and as now or hereafter required by Chapter 2 and Chapter 3 of the Subdivision Map Act.

2.

Each person applying for the rental of a unit in the residential real property has received or will have received the notice and rights pursuant to subsection 28.12.15.b. of this article and as now or hereafter required by Chapter 2 and Chapter 3 of the Subdivision Map Act.

c.

Permissive grounds for denial. In addition to the grounds for denial set forth in this chapter and the State Subdivision Map Act, an application for approval of a tentative map or preliminary parcel map for the conversion of residential rental units to a condominium, stock cooperative, community apartment project, common green subdivision or tenancy-in-common may be denied on the ground that either:

1.

The proposed project, because of its physical characteristics, lot size, configuration, site design or building condition, is not suitable for conversion to a condominium, stock cooperative, community apartment project, common green subdivision or tenancy-in-common.

2.

The proposed project, because of its physical characteristics, lot size, configuration, site design or building condition, is not suitable for families with children.

3.

The proposed project contains fewer than sixteen (16) units and is not suitable for conversion due to its size, amenities, ingress, egress or ability to maintain itself.

(Ord. No. 3.22, § 1, 4/12/22.)

The design, improvement and construction to convert an existing apartment building or residential complex to a condominium, stock cooperative, community apartment project, common green subdivision or

tenancy-in-common shall comply with design standards in Section 28.11.15, except as modified in this section, and with the following design and safety standards:

a.

Codes, ordinances and regulations. All building and fire codes, zoning provisions and all other applicable local ordinances and regulations in effect at the time of construction of such structure shall, in addition, conform to and be in accordance with the standards set forth in this section, or most recent standards as adopted by the city council, in effect at the time of filing of the tentative map or preliminary parcel map for such conversion.

b.

Zoning provisions. Current residential zoning ordinance standards for density, floor area ratio, building setback, open space, parking and circulation.

c.

Minor exceptions considered. Minor exceptions to current residential zoning ordinance standards shall be considered for up to ten (10) percent for building setback and fifteen (15) percent open space requirements only.

d.

Special features may be required. The design and improvement of any such conversion may also be required to incorporate special design features and amenities (i.e., useable open space, children's play areas and similar physical improvements) as conditions of approval of said map.

e.

Building, seismic, fire and housing codes compliance; facility and site improvement requirements.

1.

Seismic safety pursuant to any of the following standards: 2007 California Building Code, 2006 International Existing Building Code, Seismic Rehabilitation of Existing Buildings (ASCE 41-06) or an equivalent procedure approved by the chief building official and updated and amended versions of said codes.

2.

California Building Standards; Title 24—Energy Standards.

3.

Fire-Life Safety and Habitability Standards pursuant to the 2007 California Building Code; 2007 California Plumbing Code; 2007 California Mechanical Code; and 2005 National Electrical Code and updated and amended versions of said codes.

2007 California Fire Code and updated and amended versions of said code.

5.

Article IX of Chapter 8 of the Mountain View City Code (Drainage and Flood Control), Section 8.160, et seq.

6.

Separate utility services shall be provided to each building and to each unit unless the public works director determines that such separate utility services are both not desirable and not feasible. If separate utility services are not provided, the homeowners association, or similar organization, shall be primarily liable for all city utility billings, and the owners of individual residential buildings and units shall jointly and severally be secondarily liable for all city utility billings, and security for payment of utility billings shall be provided as set forth in Section 35.38.c.

f.

Written report on improvements and compliance required. An independent consultant approved by the chief building official shall prepare a written report, with appropriate itemized cost estimates, on all improvements necessary to make the development comply with subsection 28.12.30.e.1.—e.6.. The subdivider or owner is solely responsible for all costs associated with preparing this report and shall pay a fee to the city for administering, reviewing and evaluating the report in accordance with Item g. of this section. Minor nonsafety or structural deviations from strict compliance with the design and safety standards may be approved at the discretion of the chief building official or the public works director as appropriate.

g.

Fee for city services. Fees for the review and evaluation services and other related expenses incurred and performed by city staff shall be an amount (based on an hourly rate) established by city council resolution. (Ord. No. 3.22, § 1, 4/12/22.)

ARTICLE VIII. - COMMERCIAL AND INDUSTRIAL CONDOMINIUM CONVERSIONS