§ 17.34

This chapter is intended to establish requirements and standards for the conversion of existing apartments or other facilities to residential condominiums or similar common-interest housing as described in Section 1351 of the California Civil Code. The city recognizes that while condominium conversions may provide favorable housing-ownership opportunities, they also present some unique concerns which require special attention and regulation. The regulations set forth in this chapter pertaining to condominium conversions address the needs, goals, and policies of the housing element of the city's general plan, including, but not limited to, the following:

1.

To promote affordable rental and owner housing.

2.

To encourage adequate housing selection by location, type, price and tenure.

3.

To minimize tenant displacement and loss of rental housing as a result of condominium and cooperative conversions.

4.

To encourage new condominium construction, rather than conversion, in order to assist in maintaining an adequate supply of rental housing.

(Ord. No. 2469, § 9, 11-2-2010)

17.34.020 - Application and preliminary condominium conversion plan.

Application for a residential condominium conversion project shall consist of the following:

A.

A tentative subdivision map and application in accordance with Chapter 17.20.

B.

A preliminary condominium conversion plan, consisting of the following items:

1.

Written project description.

A set of maps and drawings depicting the existing site design and layout and any proposed modifications, including:

a.

Detailed architectural site plan with location of all buildings, parking areas, pedestrian paths, common grounds, recreation areas and improvements, walls, fences, irrigated landscape, natural open-space areas, and all other proposed and existing physical features associated with the conversion project.

b.

Existing drainage and utility plans.

3.

A set of building elevation drawings and/or equivalent photos demonstrating the existing architectural character of all buildings and any proposed building modifications.

4.

Floor plans for all building and unit types.

5.

A tabulation of unit and building areas and land areas designated for various uses.

6.

Checklist identifying project compliance with all condominium conversion standards required in Section 17.34.050.

7.

If applicable, proposed sequence and schedule of phasing of unit conversion to condominiums.

C.

A physical-elements report, which shall include, but not be limited to:

1.

A report detailing the existing condition and proposed improvements and estimating the remaining useful life of each element of the project proposed for conversion: roofs; foundations; exterior paint; paved surfaces; mechanical systems; electrical systems; plumbing systems, including sewage systems, drainage systems, and swimming pools; sprinkler systems for landscape; utility-delivery systems; central or community heating and air-conditioning systems; fire-protection systems, including automatic-sprinkler systems, alarm systems, or standpipe systems; and structural elements. Such report shall be prepared by a registered civil or structural engineer other than the applicant, in a form approved by the director. The completeness and accuracy for such report shall be reviewed by the building official and fire marshal in a

field inspection of the project. Any deficiencies or inaccuracies in the report shall be corrected to their satisfaction.

D.

A structural pest-control report. Such report shall be prepared by a licensed structural pest-control operator pursuant to Section 8516 of the Business and Professions Code.

E.

A building-history report, including the following:

1.

The date of construction of all elements of the project.

2.

A statement of the primary uses of said project since construction.

3.

The approximate date and a description of any major repair, renovation, or maintenance of any structure or structural element since the date of construction. For the purposes of this subsection, "major repair, renovation, or maintenance" means any repair for which expenditure of more than one thousand dollars was made.

F.

A socio/economic elements report, which shall include, but not be limited to:

1.

A report detailing the rent history of the project, including vacancy rates, rents, and increases applicable to each unit during the twenty-four months preceding the application.

2.

A tenant composition report detailing the makeup of existing tenant households, including size of household, length of residency, ages of tenants estimated to be receiving federal or state rent subsidies, number of elderly tenants, and number of school-age minors.

3.

A tenant's policy report that outlines provisions to satisfy all tenant rights identified in Section 17.34.060, including, but not limited to, the notice of intent, right to purchase, right of notification to vacate, limitations on rent increase, and special-case provisions. Special-case provisions for the elderly, handicapped, families with school-age children, and low- and moderate-income tenants may include, but not be limited to, extended leases, lifetime leases, additional moving allowances, transportation to locate replacement housing, and reduced purchase prices.

4.

A current list of the names and addresses of all tenant heads of households, which shall be certified as correct by the developer, with such list to be used to notify tenants of all public meetings and public hearings concerning the proposed conversion.

(Ord. No. 2469, § 9, 11-2-2010)

An application for a residential condominium conversion project shall be processed and considered for approval or denial by the planning commission in accordance with Chapter 17.20. In the event that a final map for an approved residential condominium conversion is not timely filed in accordance with Section 17.40.020, then the approval of the condominium conversion plan shall expire along with expiration of the tentative map.

(Ord. No. 2469, § 9, 11-2-2010)

The city, recognizing the necessity of maintaining an adequate supply of rental housing for all income groups, and in order to achieve the purposes and goals set forth in this chapter and the general plan housing element, sets forth an annual limitation on condominium conversion projects as follows:

A.

The maximum number of condominium conversions for any calendar year shall not exceed one-half the number of dwelling units for which building permits have been issued for two-family and multiple-family dwelling units averaged over the previous ten-year period.

B.

In the event that approvals are not obtained for the number of units permitted to be converted in a given calendar year, the remaining number shall be carried forward and added to the maximum permitted in future years, provided that such annual surplus shall not be carried forward more than three calendar years.

C.

Prospective condominium conversion-project applicants are encouraged to confer with the planning division prior to generating information required in the following sections of this chapter to determine whether their proposed project may be prohibited as a result of the annual limitation.

(Ord. No. 2469, § 9, 11-2-2010)

To achieve the purpose of this chapter, the planning commission shall require that all condominium conversions conform to the Redding Municipal Code in effect at the time of approval, except as otherwise provided in this chapter, prior to the issuance of a building permit or sale of the first unit, if no building permit is required. The planning commission shall require conformance with the standards of this section,

in addition to the standards set forth in previous sections, in approving an application for conversion. Notwithstanding, the planning commission shall have the authority to consider and allow modifications to standard development requirements subject to the qualifications, procedures, and findings identified under Section 17.04.100.

A.

Code Compliance. No existing building shall be approved for conversion to a condominium project unless it meets the following requirements:

1.

All residential buildings shall, on the date of conversion, be in compliance with the minimum standards of the International Property Maintenance Code, as adopted by the city and those of the state.

2.

All buildings shall, on the date of conversion, be in compliance with the exit and occupancy requirements for the type of construction and occupancy involved as outlined in the California Building Code and California Fire Code as adopted by the city.

3.

All buildings and related property sought to be converted are, on the date of conversion, in compliance with the zoning ordinance and the goals and policies of the general plan.

B.

Common Ownership and Maintenance Association. Residential condominium conversion projects shall have and maintain a functional property-owners' association established in accordance with California Civil Code, Section 1350 et seq., and as specified in RMC Section 18.43.170.D.

C.

Unit Size. The enclosed living or habitable area of each unit shall be not less than six hundred square feet, unless the planning commission determines at the time of approval that other project amenities compensate for the minimum required enclosed area.

D.

Sound Transmissions. Wall and floor/ceiling assemblies shall conform to Title 25, California Administrative Code, Section 1092, or its successor. Permanent mechanical equipment, including domestic appliances, which is determined by the building official to be a potential source of vibration or noise, shall be shockmounted, isolated from the floor and ceiling, or otherwise installed in a manner approved by the building official to lessen the transmission of vibration and noise. Floor covering may only be replaced by another floor covering that provides the same or greater insulation. The requirements of this subsection shall not apply to a residential unit in a building with no other residential unit.

E.

Utility Metering.

1.

a)

The consumption of water, gas, and electricity within each unit shall be separately metered so that the unit owner can be separately billed for each utility. Each unit shall have access to its own meter(s) and heater(s), which shall not require entry through another unit.

b)

In the case of water service, the city engineer may grant at his/hers discretion an exception allowing use of master metering when it is demonstrated by the developer that providing individual meters and service connections is infeasible based on existing utility line and/or metering arrangements and significant modification constraints. When master metering is approved, arrangements for the property-owners' association to assume responsibility for payment of utility cost shall be met in accordance with RMC Section 18.43.170.D.

2.

Each unit shall have its own electrical panel, or access thereto, for all electrical circuits which serve the unit.

F.

Household Appliances. All household appliances, including, but not limited to, refrigerators, stoves, ovens, dishwashers, air conditioners, garbage disposals, hot-water tanks, and clothes washers and dryers, shall be warranted by the subdivider for twelve months from the date of sale of each unit. Such warranties shall be secured by adequate bond, reserve fund, or insurance to the city attorney's satisfaction prior to the recordation of the final.

G.

Underground Utilities. The applicant shall waive the right, through deed restrictions, to protest the formation of an underground utility district.

H.

Refurbishing and Restoration. All main buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, landscaped areas, irrigation systems, and additional elements as required by the planning division shall be refurbished and restored as necessary to achieve high-quality appearance and safety.

I.

Physical Elements. All physical elements identified in the Physical Elements Report required in Section 17.34.020.C shall be warranted by the subdivider for twenty-four months from the date of the close of escrow on the sale of the first condominium unit. Such warranty shall be secured by adequate bond, reserve fund, or other instrument to the city attorney's satisfaction prior to the recordation of the final map.

(Ord. No. 2469, § 9, 11-2-2010; Ord. No. 2576, § 5, 10-17-2017)

A.

Notice of Intent. A notice of intent to convert shall be delivered to each tenant's dwelling unit preceding, by at least sixty days, but by no more than ninety days, the subdivision application. Evidence of delivery shall be submitted with the application for conversion. The form of the notice shall be as approved by the development services director and shall contain not less than the following:

1.

Name and address of current owner.

2.

Name and address of the proposed subdivider.

3.

Approximate date on which the subdivision application is proposed to be filed.

4.

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

5.

Tenant's right to purchase.

6.

Tenant's right of notification to vacate.

7.

Statement of limitations on rent increase.

8.

Provision of moving expenses.

9.

Provision for special cases (see Section 17.34.020F3).

10.

Other information as may be deemed necessary by the development services director.

B.

Tenant's Right to Purchase. Any present tenant or tenants of any unit shall be given notice of an exclusive right to contract for the purchase of their respective units upon the same terms and conditions that such units will be initially offered to the general public, or terms more favorable to the tenant. The right shall run for a period of not less than ninety days from the date of the issuance of the subdivision public report pursuant to Section 11018.2 of the Business and Professions Code, unless the tenants give prior written notice of their intention not to exercise the right.

C.

Vacation of Units. Each nonpurchasing tenant not in default under the obligations of the rental agreement or lease under which he or she occupies his or her unit shall have not less than one hundred eighty days from the date of receipt of notification from the owner of his or her intent to convert or sixty days from the issuance of a subdivision public report, whichever is later, to find substitute housing and to relocate.

D.

Increase in Rents. From the date tenants are notified of the intent to convert until the date of conversion, no tenant's rent shall be increased:

1.

More frequently than once every six months.

2.

At a rate greater than the rate of increase in the Consumer Price Index (all items, San Francisco Bay Area) on an annualized basis for the same period.

This limitation shall not apply if rent increases are provided for in leases or contracts in existence prior to the filing date of the tentative map.

E.

Moving Expenses. The subdivider shall provide moving expenses of one and one-half times the monthly rent to any tenant household that relocates from the building to be converted after approval of the condominium conversion by the city, except when the tenant household has given written notice of its intent to convert or the tenant household is being evicted for proven performance failure in a rental agreement.

F.

Utility Allowances. The subdivider shall provide a utility connection and deposit allowance of fifty dollars to each tenant household upon vacation of its unit.

G.

Notice of New Tenants. After delivery to tenants of the notice of intent to convert, any prospective tenants shall be notified in writing of the intent to convert prior to leasing or renting any unit and shall not be subject to the provisions of subsections B through F of this section.

H.

Notice of Application for a Public Report. The subdivider shall provide each tenant household and/or person or persons applying for rental with ten days' written notification that an application for a public report will be or has been submitted to the department of real estate and that such report will be available on request.

(Ord. No. 2469, § 9, 11-2-2010)

17.34.070 - Effect of proposed conversion on the city's low- and moderate-income housing supply.

In reviewing requests for condominium conversion projects, the planning commission shall consider the following:

1.

Whether or not the amount and impact of the displacement of tenants, if the conversion is approved, would be detrimental to the health, safety, or general welfare of the community.

2.

The role that the apartment structure plays in the existing housing market. Particular emphasis will be placed on the evaluation of rental structures to determine if the existing apartment complex is serving lowand moderate-income households. Criteria to determine low- and moderate-income households used by the federal and state governments will be used in the evaluation. Along with other factors, the city will consider the following:

a.

The number of families on current waiting lists for assisted rental-housing programs that operate in Redding, such as the Section 8, Section 23, and Section 236 programs and the most recent Housing Assistance Plan (HAP) of the city and any successor programs.

b.

The probable income range of tenants living in existing apartments, based on factual information supplied by the applicant which can be adequately documented, or the assumption that households pay between one-fourth and one-half of their income for housing. That income range will be compared with existing income limits for said Section 8 program to determine whether potential displaced tenants can be categorized as low- and moderate-income.

3.

The need and demand and community benefits which are derived from the provision of lower-cost homeownership opportunities that are increased by the conversion of apartments to condominiums.

4.

If the planning commission determines that vacancies in the project have been increased for the purpose of preparing the project for conversion, the conversion shall be denied. In evaluation of the current vacancy

level under this subsection, the increase in rental rates for each unit and the average monthly vacancy rate for the project over the preceding two years shall be considered.

(Ord. No. 2469, § 9, 11-2-2010)

The planning commission shall not approve an application for condominium conversion unless the planning commission finds that:

1.

All provisions of this chapter are met and the project will not be detrimental to the health, safety, and general welfare of the community.

2.

The proposed conversion is consistent with the Redding General Plan or legally nonconforming with the density requirement of its community development and design element.

3.

The proposed conversion will conform to the Redding Municipal Code in effect at the time of approval, except as otherwise provided in this chapter.

4.

The overall design and physical condition of the conversion will result in a project which is aesthetically attractive, safe, and of quality construction.

5.

The proposed conversion will not displace a significant percentage of low- and moderate-income or seniorcitizen tenants, handicapped tenants, or tenants with children, or it will not delete a significant number of low- and moderate-income rental units from the city's housing stock at a time when no comparable replacement housing is readily available in the Redding area.

6.

The applicant has not engaged in coercive retaliatory action regarding the tenants after the submittal of the notice of intent to convert or an application through the date of approval. In making this finding, consideration shall be given to:

a.

Rent increases at a rate greater than the rate of increase in the Consumer Price Index (all items, San Francisco Bay Area), unless provided for in leases or contracts in existence prior to the submittal of the first application for city review.

b.

Any other action by applicant which is taken against tenants to coerce them to refrain from opposing the project. An agreement with tenants which provides for benefits to the tenants after the approval shall not be considered a coercive or retaliatory action.

7.

The requirements of Section 17.34.050, Standards for condominium conversion projects, have been met.

(Ord. No. 2469, § 9, 11-2-2010)

17.34.090 - Buyer information—Condominium conversion projects.

A.

Prior to the execution of any agreement for sale, the subdivider shall provide each purchaser with a copy of the physical-elements report, structural pest-control report, and building-history report required in Section 17.34.020. Copies of the reports shall be made available at all times at the project sales office.

B.

Any purchaser may rescind the purchase agreement within seventy-two hours of its execution. Notice of this right shall be plainly inserted on the face of the purchase agreement.

(Ord. No. 2469, § 9, 11-2-2010)

Chapter 17.40 - FINAL MAPS AND PARCEL MAPS

Sections: