San Jose Municipal Code Part 4 Tenant and Buyer Protection

At least sixty (60) days prior to the date of filing an application for a conditional use permit for conversion to a project, the developer shall notify each of the tenants of the proposed project of his intention to convert, and thereafter, the developer shall notify each person applying for rental of a unit in the proposed project, prior to payment of any rent or deposit, of his intention to convert. Said notice of intention to convert shall contain a statement that the developer intends to convert the building to a project, and for that purpose that (l) he will file an application for a conditional use permit with the City of San José, and (2) he has or will file an application for a final public report with the California Department of Real Estate. Said notice shall also contain a statement of tenants' rights, pursuant to Section 20.170.420, including:

1. Right to terminate lease or rental agreement;

2. Limitation on increases of rent;

3. Right of continued tenancy;

4. Protection against unjust eviction;

5. Protection against coercion or retaliatory action;

6. Exclusive "right of first refusal" to purchase the unit; and

7. "Right to quiet enjoyment" of the unit.

(Ord. 26248.)

Within five (5) days of receipt of the final public report on the proposed project from the California Department of Real Estate (hereinafter "final public report"), the developer shall notify each of the tenants of the proposed project of the issuance of said report. Said notice shall indicate that copies of said report are available on request, and shall contain a restatement of certain tenants' rights, pursuant to Section 20.170.420, including:

1. Right of continued tenancy.

2. Exclusive "right of first refusal" to purchase the unit, and

3. "Right to quiet enjoyment" of the unit.

(Ord. 26248.)

From the date of issuance of a notice of intention to convert, pursuant to Section 20.170.410, until the date indicated, if applicable, each tenant of a proposed project shall have the following rights with respect to his or her rental unit:

1. The right to terminate a lease or rental agreement, without penalty, upon thirty (30) days' notice to the landlord.

2. Notwithstanding the provisions of Chapter 17.23 of Title 17 of this Code, no increase in rent until termination of a lease or rental agreement pursuant to Subdivision A, or until twelve (12) months after the date of such issuance, whichever comes first.

3. The right of continued tenancy until 180 days after issuance of the final public report or expiration of the tenant's lease or rental agreement, whichever is longer, and then only upon thirty (30) days' notice to vacate.

4. No unjust eviction during tenancy.

5. No coercion or retaliatory action against any such tenant, including pressure to support, or refrain from opposing, a project.

6. An irrevocable, nontransferable preemptive right (i.e., "right of first refusal") to purchase the unit at a price no greater than the price offered to the general public for such unit or comparable unit, if such tenant is not in default under the terms of his or her lease or rental agreement, until 90 days after issuance of the final public report.

7. No remodeling of the interior of such unit to prepare it for sale (i.e. "right to quiet enjoyment") until 150 days after issuance of the final public report.

(Ord. 26248.)

Without limiting the generality of the provisions relating to conditions which may be imposed on a conditional use permit under this title, the planning commission or the city council may make any conditional use permit which may be granted under this chapter subject to a condition requiring a plan of relocation and purchase assistance for tenants of a proposed project. Such a plan may include the following provisions:

1. Relocation assistance including, but not limited to, active assistance in securing comparable replacement housing for tenants who will be displaced, and a payment to each household for displacement costs.

2. A rental assistance payment to displaced tenants of a project equal to the difference between the pre-conversion rent and that of a comparable replacement unit for up to twenty-four (24) months to mitigate any rent increase due to relocation.

(Ord. 26248.)

The developer shall furnish each prospective purchaser of a unit within a project a true copy of the conditional use permit issued under this chapter and each of the following informational documents:

1. The property report.

2. The structural pest control report.

3. The building history report excluding, however, items (f) and (g) thereof.

4. Statement of compliance (form 643) pursuant to Title 10, California Administrative Code, Section 2792.9, or its successor, relating to operating and maintenance funds during start-up.

5. The proposed annual operating budget of the association indicating a reserve fund to pay major anticipated maintenance, repair, and replacement expenses, and the association fees needed for the operating budget and the reserve fund.

(Ord. 26248.)

Without limiting the generality of the provisions relating to conditions which may be imposed on a conditional use permit under this title, the planning commission or city council may make any conditional use permit which may be granted under this chapter subject to conditions requiring the following:

1. A capital contribution provided by the developer to the association for the deferred maintenance of the common area, and the deferred maintenance or replacement of any of the elements described in the property report, pursuant to Subsection 7 of Section 20.170.220, which are owned or maintained by the association. The information available pursuant to said Subsection 7 of Section 20.170.220 regarding the estimated replacement cost of those elements whose useful life is less than five (5) years may be used in determining the amount of such contribution.

2. A one-year warranty provided free of charge by the developer to the association for those systems described in the property report, pursuant to Subsection 7 of Section 20.170.220, which are owned or maintained by the association. (Such warranty need not cover those systems which may be covered by a substantial capital contribution by the developer for deferred maintenance.)

3. A one-year warranty provided free of charge by the developer to the first purchaser of each unit on any dishwashers, garbage disposals, stoves, refrigerators, hot water tanks, heating systems, and air conditioners provided therein as of the close of escrow.

(Ord. 26248.)

Neither the developer, any agents, or assignees shall discriminate in the sale, or in the terms and conditions of sale of any unit against any person or family based upon age or family size, unless family size exceeds the U.S. Department of Housing and Urban Development standard for overcrowding of 1.25 persons per room, or unless it can be demonstrated that the project as designed and built is not suitable for accommodation of certain persons or families because of age or family size. This nondiscrimination provision shall be included in the conditions, covenants, and restrictions for the project.

(Ord. 26248.)