Pismo Beach Municipal Code Ch. 16.64 Condominium Conversion Requirements

1. "Community apartments" means similar to the definition of a condominium except that the purchaser receives an exclusive occupancy to a particular unit instead of a separate ownership of the airspace.

2. "Condominium" means a group of privately owned dwellings in which an owner normally owns an undivided interest, as a co-owner with other owners, in the underlying property and in common areas and separate interest in the air space in which the unit is located.

3. "Conversion project" means an existing apartment house, apartment hotel, motel, multiple dwelling or group dwelling proposed for conversion to a condominium, stock cooperative or community apartment project through approval of a tract or parcel map.

4. "Stock cooperative" means a corporation which is formed or availed of primarily for the purpose of holding title to, either in fee simple or for a term of years, improved real property, if all or substantially all of the shareholders of such corporation receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation, which right of occupancy is transferable only concurrently with the transfer of a share or shares of stock or membership certification in the corporation held by the person having such right of occupancy. The term "stock cooperative" does not include a limited equity housing cooperative. (Ord. 270 § 1 (part), 1980)

The purpose of these provisions is to promote greater individual choice in type, quality, price and location of housing; to provide for the housing needs of all segments of the population; to provide increased home ownership opportunities for all segments of the population; to mitigate the hardship caused by displacement of tenants, particularly those in low to moderate cost housing and those who are elderly, families with minor dependent children, the handicapped and the disabled; to promote the safety of conversion projects and correction of Building Code violations in such projects; to provide adequate off-street parking; to encourage construction of new rental units to replace units lost due to conversions; and to generally regulate projects in accordance with applicable general and specific plans and with the public health, safety and welfare. (Ord. 270 § 1 (part), 1980)

The provisions of this section shall apply to all tentative maps and preliminary parcel maps as to which the planning commission has not rendered a decision on the date this section becomes effective. The provisions of any amendment to this section shall only apply to all tentative maps and preliminary parcel maps as to which the planning commission has not rendered a decision on the date the amendment becomes effective, except as otherwise expressly stated in this section. For purposes of this subsection, a decision is rendered on the date of the planning commission's public hearing and announced decision or, where no such decision is announced, the date of mailing of the planning commission's letter of decision and findings to the applicant. (Ord. 270 § 1 (part), 1980)

A. A conversion project shall comply with the Subdivision Ordinance, the provisions of this section and other applicable state laws and local ordinances. Applications shall be accepted only from persons who have owned the fee interest in said property for at least two years.

B. In addition to the information required by other applicable sections of this code, the following information shall be submitted at the time of filing:

1. Building plans or other documents containing the following information pertaining to the project as proposed, certified as to accuracy by a licensed engineer:

a. Description of the features of the type of building and project, including age, type of construction, number of dwelling units, number of habitable rooms per dwelling unit, and

b. Site plan, including buildings, structures, yards, open spaces, and accessory storage areas and buildings including trash storage areas; and

2. Parking plan, including the total number of spaces actually provided and the total number required if different from that actually provided; dimensions of stalls, aisles and driveways; locations of columns, walls and other obstructions; total number of covered and uncovered parking spaces and location and number of guest parking spaces;

3. Tenant information: name and address of each tenant, total number of project occupants; rent schedule for eighteen months preceding the application and relocation assistance plan, if any;

4. Sales information: anticipated range of sales prices of individual dwelling units or shares based on information known at the time of application; anticipated terms of sale to existing tenants; and statements as to whether sales will be permitted to families with minor children;

5. Floor and elevation plans, including indication of common and private areas, and required exits.

C. The following additional information may be required by the planning commission as a condition of approval:

1. Current building inspection reports. (If any such report has already been submitted to the California Department of Real Estate, a copy of such report shall be furnished to the city);

2. Building component reports indicating condition and estimated remaining useful life of the roof, foundation, plumbing, electrical, heating, air conditioning, other mechanical and structural systems, prepared by a registered civil or structural engineer, licensed general building contractor, licensed general engineering contractor or architect;

3. Structural pest control report, prepared by a licensed pest control contractor;

4. Acoustical report, indicating (a) the type of construction between dwelling units and the general sound attenuation characteristics of such construction, or indicating the level of sound attenuation between dwelling units, and (b) the feasibility of various levels of improvement, prepared by a licensed acoustical engineer; and

5. Utility metering reports, if the units of the building are not individually metered, indicating the feasibility of individual or submetering, prepared by qualified engineers;

6. Any other information, including conditions, covenants and restrictions, articles of incorporation and bylaws, which the planning commission deems necessary to determine if the proposed project is consistent with the purposes of the municipal code. All such C.C. & R's shall refer to the tenant rights contained in this section.

D. No application for tentative map or preliminary parcel map approval of a conversion project shall be accepted without adequate evidence from the applicant that each tenant of the project has received notice of the application and notice of the relocation assistance provisions of subsection (G) of this section. Any person who becomes a tenant of a conversion project after the date of such application shall be given written notice of the pendency of such applications prior to entering into any written or oral rental agreement. This subsection shall only apply to map applications filed after the effective date of the ordinance codified in this chapter. (Ord. 270 § 1 (part), 1980)

A. Notification of Hearing on Tentative Map or Preliminary Parcel Map.

1. In addition to other notification requirements of the municipal code, the Department of Community Development shall give notice of any public hearing on a tentative map or preliminary parcel to at least one tenant in each dwelling unit of such building or buildings proposed for conversion.

2. Such notice shall be in writing and mailed not less than fifteen days prior to the public hearing on the tentative map or preliminary parcel map. Such notice may include a questionnaire, to be completed at the option of each tenant, regarding the approximate ages and disabilities or handicaps, if any, of the household members, comments concerning the physical condition of the building and its various components and characteristics.

B. Notification of Proposed Conversion Prior to Termination of Tenancy Due to the Conversion. Each tenant of a conversion project shall be given one hundred twenty days' written notice of intention to convert prior to termination of tenancy due to the conversion or proposed conversion. Each person who becomes a tenant of a conversion project after the date of such one hundred twenty days' notice shall be given a copy thereof before entering into any written or oral rental agreement, but shall not be entitled to one hundred twenty days' written notice prior to termination of tenancy due to the conversion or proposed conversion.

C. Notification of an Exclusive Right to Purchase.

1. The applicant shall give each tenant of the proposed conversion project written notice of an exclusive right to contract for the purchase of the dwelling unit occupied by the tenant or purchase of a share in the corporation entitling the shareholder to enjoy exclusive occupancy of the unit upon the same or more favorable terms and conditions than those on which such unit or share will be initially offered to the general public. The right shall run for a period of not less than sixty days from the date of issuance of the subdivision public report pursuant to Section 11018.2 of the California Business and Professions Code, unless the applicant receives prior written notice of the tenant's intention not to exercise the right. The developer shall provide the city with a copy of each such offer for city evaluation of financial impact of conversions on tenants.

2. Where two or more units are combined pursuant to conditions of tentative map or preliminary parcel map approval, the notice required by subsection (C) of this section shall be given to the tenants of the combined units, and priority among tenants shall be determined in an equitable manner. A tenant who is prevented from purchasing his unit due to combination of units shall be given a right of first refusal with respect to the comparable unit in the same conversion project, to the extent possible. (Ord. 270 §1 (part), 1980)

A. All tentative maps and preliminary parcel maps filed in connection with conversion projects shall be subject to the Subdivision Ordinance, except as herein otherwise provided. All such maps shall be subject to the general plan/ local coastal program land use plan and any applicable specific plan only to the extent that such plan contains a definite statement of policies and objectives explicitly applicable to conversion projects, except as otherwise provided in this subsection.

B. The planning commission shall disapprove a tentative map or preliminary parcel map for a conversion project if it finds:

1. That the map is not substantially consistent with the applicable density provisions of the general plan/local coastal program land use plan or specific plans in effect at the time the original building permit was issued;

2. The application for map approval is filed less than five years from the date the original certificate of occupancy for the building was issued; and

3. The number of condominium units is less than eight.

C. The planning commission shall disapprove a tentative map or preliminary parcel map for a conversion project if it finds that any applicable general plan or specific plan provision contains a definite statement of policies and objectives explicitly applicable to conversion projects and the proposed map is not substantially consistent with such provision.

D. The planning commission shall disapprove a tentative map or preliminary parcel map for a conversion project if it finds that there are uncorrected violations of the building code, and that an adequate plan to correct such violations has not been developed or accomplished.

E. The planning commission shall disapprove a tentative map or preliminary parcel map for a conversion project if it finds that (1) the building is of unreinforced masonry construction; or (2) the building is more than three stories in height without an elevator. This provision may be waived where the planning commission finds that any such condition has been corrected in conformity with current Building Code Standards.

F. After considering the following criteria, the planning commission can disapprove a tentative map or preliminary parcel map for a conversion project if it finds that the cumulative effect on the rental housing market in the planning area of successive conversion projects (past, present and future) is significant. A finding of significant cumulative effect shall be based on the following factors:

1. The number of tenants who desire to purchase a unit in the building;

2. The number of units in the building;

3. The number of units which would be eliminated in case conversion occurred in order to satisfy municipal code parking requirements;

4. The adequacy of the relocation assistance plan proposed by the subdivider; and

5. Any other factors pertinent to the determination. (Ord. 270 § 1 (part), 1980)

A. Requirement. The planning commission shall require, as a condition of map approval, that the applicant execute and record a covenant and agreement, in a form satisfactory to the planning commission, binding the applicant and any successor in interest to provide relocation assistance in a manner consistent with this section. The covenant and agreement shall be executed and recorded within ten days after the expiration of the appeal period for tentative map approval and a copy provided to each tenant within five days of recordation. The covenant and agreement shall run to the benefit of any eligible tenant as defined in subsection (B) of this section, and shall be enforceable by any such tenant or by the city.

B. Eligible Tenant. As used in this section, the term "eligible tenant" means any tenant who was a resident of the property both on the date of approval of such map and who does not intend to purchase a unit in the conversion project.

C. Special Protection. An eligible tenant is entitled to "special protection," as defined in this section if the tenant satisfies any of the following criteria: over the age of sixty-two; handicapped, as defined in Section 50072 of the California Health and Safety Code; disabled, as defined in Section 223 of the United States Social Security Act; or residing with one or more minor dependent children.

D. Assistance. The covenant and agreement shall provide that the applicant will assist each eligible tenant in finding a comparable replacement rental unit.

E. Rental Subsidy. Where the rent for a unit into which an eligible tenant moves is higher than the rent for the unit the tenant occupied in the conversion project, the subdivider shall agree to pay the difference for a period of one year from the date of relocation. In case of a tenant who qualifies for "special protection," as defined in subsection (C) of this section, two hundred dollars shall apply to this subsidy. In all other cases, the subdivider shall not be required to pay more than one hundred dollars per month per unit pursuant to this provision.

F. Continued Tenancy Pending Relocation; Eviction; Review Procedure.

1. Until each eligible tenant is successfully located pursuant to the provisions of this subsection. the tenant shall be permitted to reside in the unit presently occupied in the conversion project. The subdivider is not required to consent to continued tenancy beyond twelve months from the date of tentative map or preliminary parcel map approval or the date on which the one-hundred-twenty-day notice of intent to convert is given to all tenants, whichever date is later.

2. An eligible tenant may be evicted, notwithstanding subsection (F)(1) of this section, for the following reasons only:

a. The tenant has failed to pay the rent to which the landlord is entitled.

b. The tenant has violated an obligation or covenant of the tenancy other than the obligation to surrender possession upon proper notice and has failed to cure such violation after having received written notice thereof from the landlord.

c. The tenant is committing or permitting to exist a nuisance in or is causing damage to, the rental unit or to the appurtenances thereof, or to the common areas of the property containing the rental unit, or is creating an unreasonable interference with the comfort, safety or enjoyment of any of the other residents of the same or any adjacent building.

d. The tenant is using or permitting a rental unit to be used for any illegal purpose.

e. The tenant who had a written lease or rental agreement which terminated on or after the effective date of the ordinance codified in this chapter, has refused, after written request or demand by the landlord, to execute a written extension or renewal thereof for a further term of like duration with similar provisions and in such terms as are not inconsistent with or violative of any provision of this subsection.

f. The tenant has refused the landlord reasonable access to the unit for the purpose of making repairs or improvements, or for the purpose of inspection as permitted or required by the lease or by law, or for the purpose of showing the rental unit to any prospective purchaser or mortgagee.

g. The person in possession of the rental unit at the end of the lease term is a subtenant not approved by the landlord.

G. The applicant shall pay the tenants a fee of five hundred dollars for relocation and up to five hundred dollars for actual moving costs.

H. Dispute Resolution. The covenant and agreement provided for herein shall establish an expeditious mechanism to resolve any disputes among tenants, the applicant and the city concerning the interpretation or application of the covenant and agreement. (Ord. 270 § 1 (part), 1980)

A. The required number of resident parking spaces per dwelling shall be two, as required by the Zoning Ordinance.

B. The minimum number of guest parking spaces shall be one-quarter space per dwelling unit for projects containing eight to fifty units and one half-space per dwelling unit for projects containing more than fifty units. The planning commission may modify the guest parking requirement up to and including one-half space per unit where it finds such modification consistent with the purposes of this section.

C. The planning commission may require up to one of the required resident parking spaces per dwelling unit to be provided in a private garage or carport where it finds that such is reasonable and feasible and consistent with the purposes of this section.

D. Where the number of parking spaces required by other provisions of this code in existence on the date of map application exceeds the minimum numbers established by this section, the number of parking spaces shall not be diminished.

E. The design and improvement of parking facilities and areas shall substantially conform to the provisions of Section 17.108 of the Zoning Ordinance. (Ord. 270 § 1 (part), 1980)

The planning commission may require, as a condition of approval, that the applicant notify each tenant or other person who communicates an interest in purchasing a unit or share that the following reports are available for inspection during normal business hours, and shall take all reasonable steps to assure that such reports fully, fairly and accurately describe the conditions reported:

1. Any report submitted pursuant to Section 16.64.040;

2. A report concerning compliance with the sound transmission control standards established by the Uniform Building Code;

3. A report concerning compliance with the residential energy conservation standards established by Article 1, Part 6, Title 24 of the California Administrative Code;

4. Report concerning compliance with the elevator safety standards established by Title 8 of the California Administrative Code. (Ord. 270 § 1 (part), 1980)

A. As a condition of tentative map or preliminary parcel map approval, the planning commission shall require that the applicant or his successor in interest pay to the city a fee of five hundred dollars for each unit in the conversion project, based on the number of units in the project prior to conversion. This fee shall be paid prior to approval of the final map by the city council;

B. All fees collected pursuant to this section shall be deposited and held in a rental housing production fund of the city of Pismo Beach, which fund is established to be administered separately from all other money expended by the city. Money in this account shall be used exclusively for the development or improvement, as defined in state guidelines, of low and moderate income housing in the city;

C. New Subdivisions; Tenants; Notice. Each tenant of property approved for subdivision by approval of a Tentative Map or Preliminary Parcel Map or recordation of final map or parcel map shall be notified that the property has been so approved within thirty days of approval. The owner of property approved for subdivision shall also give such notice to any prospective tenant of the property before entering into any written or oral rental agreement with such prospective tenant. This section may be enforced through Tentative Map or Preliminary Parcel Map condition or a covenant running with the land and shall apply to all subdivisions for which tentative map approval is granted on or after the effective date of the ordinance codified in this chapter. (Ord. 270 § 1 (part), 1980)