Santa Ana Municipal Code Art. X Investment Apartments

This article applies to investment apartments. It is the purpose of this article to allow a form of ownership of rental multiple family housing combining separate ownership of rental dwelling units with common ownership by the associated unit owners of the land and buildings where such units are located, in the expectation that such form of ownership will promote a higher degree of ownership concern for property maintenance than is commonly associated with multifamily rental housing. It is further the purpose of this article to assure that, prior to their conversion to investment apartments, rental multifamily developments are, to the extent feasible, upgraded to zoning and building code standards applicable to new construction in order to promote future maintenance of such developments.

(Ord. No. NS-2088, § 3, 1-7-91)

Because the conversion of apartments to investment apartments does not result in a reduction in the city's supply of rental housing, any provision in the general plan of the city which is designed to restrict the conversion of apartments to condominiums or other form of common ownership project shall be deemed not to apply to investment apartments.

(Ord. No. NS-2088, § 3, 1-7-91)

(a) Any application for approval of a tentative map for investment apartments shall be accompanied by a declaration of covenants, conditions and restrictions approved in accordance with section 34-363 and an improvements plan approved in accordance with section 34-364. Any application for approval of a tentative map for a conversion project which is not accompanied by such documents shall be subject to Article IX of this chapter.

(b) Every tentative map for investment apartments shall be subject to the condition that the following actions be completed prior to approval of the final map:

(1) The improvement of the subject property in accordance with the improvement plan approved by the city in accordance with section 34-364. The applicant shall be responsible for obtaining inspections of the subject property by personnel of the planning and building agency as necessary to determine compliance with this requirement.

(2) The filing with the planning and building agency of a current structural pest control report issued by a licensed structural pest control operator, showing the subject property to be free of termites, dry rot, fungi, and damage therefrom. Such a report shall be deemed current for no more than ninety (90) days following the date of the inspection.

(Ord. No. NS-2088, § 3, 1-7-91)

(a) A declaration of covenants, conditions and restrictions for investment apartments shall comply with the following standards:

(1) No owner of a dwelling unit shall be permitted to reside in that unit, and no person shall be permitted to own fewer than two (2) units.

(2) The associated owners shall collectively be responsible for maintenance and management expenses of all grounds, buildings and structures on the project site, excluding only the interiors of the dwelling units and the interiors of any attached garages. As used herein, an "attached garage" means garage space which is immediately adjacent to and accessible from a dwelling unit and which is separately owned by the owner of that dwelling unit. All parking areas other than attached garages shall be owned by the associated owners collectively, although parking spaces may be assigned to the occupants of designated dwelling units.

(3) Provision shall be made for professional management of the investment apartment complex. This shall include provision for an on-site office staffed on a full-time basis during normal business hours. The associated owners shall be required to maintain the name and mailing address of the manager continuously on file with the planning director of the city. Provision shall be included that the service of any notice, order or summons by the city or by any court of competent jurisdiction on the manager on record with the city, or on any person actually serving as manager or on any one (1) of the associated owners, shall be valid and binding on all of the associated owners, with respect to the enforcement by the city of the subject covenants, conditions and restrictions, or of the improvement plan specified in section 34-364, or of any applicable law or regulation of the city.

(4) As to the above requirements, a power of enforcement to the city, exercisable in the discretion of the council, and a prohibition against any relinquishment, amendment or deletion of such requirements without the consent of the council.

(b) No declaration of covenants, conditions and restrictions shall be deemed adequate for the purpose of processing a tentative map for investment apartments until approved as complying with this section by the executive director of planning and building safety or his or her designated representative. The said executive director shall cooperate with the department of real estate of the state to assure the covenants, conditions and restrictions as finally recorded are consistent with those approved by the said executive director with regard to the requirements of this section.

(Ord. No. NS-2088, § 3, 1-7-91)

(a) The improvement plan referenced in section 34-362 shall provide for upgrading the proposed investment apartment complex to the standards then in effect for construction of new buildings, to the extent financially and practically feasible, with regard to the following matters: fire safety, building security, sound transmission, energy efficiency, off-street parking, open space and landscaping. The improvement plan shall also provide for all existing on-site facilities which are to be retained to be brought into reasonably sound and attractive condition.

(b) Any application for approval of an investment plan shall be accompanied by the following:

(1) A site plan showing all existing and proposed structures, including walls and fences, landscaping, irrigation systems and driveways and parking areas.

(2) A statement of the current and proposed ownership of the subject property and its current and proposed use.

(3) A description of the property, including acreage, number of existing and proposed dwelling units categorized by the number of bedrooms in each unit.

(4) A statement of the current and proposed management program, including structural maintenance and parking assignments.

(5) A statement of current and projected rents extending to twelve (12) months after conversion to investment apartments.

(6) A statement of proposed assessments and fees to be charged to owners of dwelling units after conversion to investment apartments.

(c) No improvement plan shall be deemed adequate for purposes of processing a tentative map for investment apartments until approved by the executive director of planning and building safety or his or her designated representatives as complying with the requirements of this section. The applicant shall be responsible for obtaining an inspection of the subject property by appropriate personnel in the planning and building agency of the city as necessary to determine the improvements to be required on the subject property. In approving any improvement plan, the executive director may impose such requirements and conditions as he or she deems appropriate to render such improvement plan consistent with the requirements of this section. Any such requirements or conditions may be appealed by the applicant to the planning commission, which may modify them as such commission deems appropriate, and the decision of the planning commission shall be final.

(Ord. No. NS-2088, § 3, 1-7-91)

As a condition to obtaining the inspections of the subject property required by this article, the applicant shall pay such inspection fees as may be established by resolution of the city council.

(Ord. No. NS-2088, § 3, 1-7-91)