San Leandro Municipal Code Ch. 2 Condominium Conversion

The following terms shall have the meaning respectively ascribed:

(a) Median Income. "Median income" means the area median income level as estimated by the U.S. Department of Housing and Urban Development, for the geographic area that includes San Leandro.

(b) Gross Income. "Gross income" means that amount defined by Title 26, U.S.C.A. § 61 (Internal Revenue Code).

(c) Purchaser. "Purchaser" means the person or persons in whose name title is vested under the policy of title insurance issued upon close of escrow, for any converted unit.

(d) Converted Unit. "Converted unit" means a unit approved for conversion to a condominium pursuant to the Zoning Code of the City of San Leandro.

(e) Conversion Fee. "Conversion fee" means a fee as adopted in Chapter 6-4 of the San Leandro Administrative Code as established by the City Council, assessed upon the conversion of a residential apartment building or complex to a condominium.

As a condition of approval of the final subdivision map for an approved condominium conversion project, the City Engineer shall certify that an instrument has been recorded against the property containing language in substantially the following form: "Upon the close of escrow of the sale of a converted unit in this subdivision the subdivider shall make payment to the City of the conversion fee for that unit." As a further condition of approval of the final map, the subdivider shall have deposited with the City security guaranteeing payment of the fees. The security may, at the option of the City Manager, be in the form of:

(a) An irrevocable letter of credit in a form approved by the City Attorney and in an amount not less than 20% of the total fees; or

(b) Any other security, whether or not recorded against the property, guaranteeing to the satisfaction of the City Manager, the payment of the fee.

Prior to approving the final map the City Engineer shall certify that the map contains language satisfying § 5.2.105, above.

The City may, at the request of a qualified purchaser, apply the conversion fee on behalf of such qualified purchaser toward the purchase of a converted unit. A qualified purchaser is one who:

(a) Has a gross income not in excess of 120% of the median income; and

(b) Resides or is employed within the City of San Leandro as of the date application is made for such use of the fee; and

(c) Contributes at least 2 1/2% of the purchase price towards the purchase of the residential unit. In such case, the fee may only be used for the purpose of reducing the principal purchase price of the unit. The total amount of the fee must be used for this purpose. The converter shall post in a conspicuous place in its sales offices, a notice informing prospective purchasers of the direct purchase rebate benefit. Such notice shall also be printed on all brochures and other advertising material distributed by the converter.

A mortgage lender selected by the purchaser shall be responsible for determining qualification of the purchaser for use of the fee as set forth in § 5.2.115 herein. If the lender determines the buyer to be eligible for such use of the fee, the lender shall so certify in writing to the Finance Director prior to the close of escrow and provide all documents required by the Finance Director. Upon certification, a qualified purchaser shall be entitled to the Direct Purchase Rebate benefit described in § 5.2.115, upon requesting such benefit on a form supplied by the Finance Director.

All costs associated with processing and recording the direct purchase rebate benefit loan shall be the obligation of the qualified purchaser to pay.

In administering the provisions of this Chapter, the City shall comply with applicable fair lending requirements of the Fair Debt Collection Practices Act, as may be amended from time to time, and of any other applicable Federal or State statute.

(Resolution No. 2005-156, 11/21/2005 [§§ 5.3.100-5.3.135]; Res. No. 2024-061, 6/17/2024, [5.2.100-5.2.135])