Part 14 — RESIDENTIAL DEMOLITION/ CONVERSION AUTHORIZATION PERMITS

• Editor’s Note: Part 14 of Chapter 24.08 was originally adopted by Ord. 85-05. Subsequent amendments included in this part were made by Ord. 86-42.

In recognition of the need to maintain affordable housing opportunities and protect low- and moderate-income tenants when demolition or conversion of their living units is proposed, this permit provides for orderly change and replacement housing, where possible. (Ord. 2022-18 § 10, 2022; Ord. 89-23 § 1 (part), 1989).

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California state law includes strict standards for the demolition of housing in an effort to ensure that existing density is not reduced and that housing that is currently rented to lowerincome tenants is maintained as affordable housing within new development. Housing demolition shall comply with the requirements of this part as well as applicable requirements contained in California state law governing relocation assistance, replacement housing units, and right of first refusal, including but not limited to California Government Code Sections 65583.2, 65915(c), 66300.5, and 66300.6, as amended. For each provision of the regulations, when both this code and the Government Code apply, whichever has the stricter requirements, such as the higher number of replacement units, higher number of bedrooms, and/or greater amount of relocation assistance, shall take precedence. A residential demolition/ conversion authorization permit shall be required prior to issuance of a demolition permit for any residential dwelling unit, including any accessory dwelling unit or junior accessory dwelling unit, or single-room occupancy living unit. A residential unit that is replaced by a conversion accessory dwelling unit shall not be required to obtain a residential demolition authorization permit.

(Ord. 2025-23 § 7, 2025; Ord. 2024-18 § 5, 2024; Ord. 2022-18 § 10, 2022; Ord. 89-47 § 2, 1989: Ord. 89-23 § 1 (part), 1989).

1. Whenever any residential building is sought to be demolished, and if city regulations provide for demolition, the applicant for demolition shall be required to offer the building to interested parties to be moved, if it is determined by the building official that the building is feasible for relocation off site and capable of being moved without damage to significant trees and/or landscaping. The building shall be offered at no cost, or nominal cost, and be

moved at the taker’s expense, unless any discretionary permit requires otherwise.

2. The applicant shall place a minimum of two advertisements, two weeks apart, in a daily newspaper of local circulation, in a form approved by the zoning administrator. The advertisement shall contain an offer to the public stating that the building is being made available to any member of the public free of charge or for a nominal cost based on the building’s salvage value. The offer contained in the advertisement shall remain outstanding for a period of sixty days from the date of the publication of the first advertisement. Any such offer shall be conditioned upon the acceptor’s agreement to remove the building in its entirety and any associated debris from the site no later than ninety days from the date of publication of the first advertisement; however, nothing contained herein shall preclude the offeror and acceptor from mutually agreeing to a longer time period for removal of the building and associated debris.

(Ord. 2022-18 § 10, 2022; Ord. 2016-12 § 5, 2016: Ord. 95-32 § 1, 1995. Formerly 24.10.190).

The zoning administrator may issue a demolition/conversion authorization permit for the demolition or conversion of a single-family residence, accessory dwelling unit, junior accessory dwelling unit, or duplex upon finding that:

1. The building is not subject to the provisions of Part 11 (regarding historic demolition permits) of this chapter, or that the demolition or conversion has been approved pursuant to the procedures set forth in Part 11; and

2. The project which will replace the demolished or converted unit(s) has been approved by the city, and an appropriate building permit has been issued; unless no building permit is required or some other practical hard-

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ship can be documented rendering this finding inappropriate; and

3. The building is not in the Coastal Zone, or, if it is in the Coastal Zone, is being replaced by a residential use or a nonresidential coastaldependent use as defined by Section 30101 of the Public Resources Code; and

4. Relocation assistance has been provided to eligible tenants consistent with Section 24.08.1350; or

5. The building which is in the Coastal Zone and is being replaced by a nonresidential use which is not coastal-dependent as defined in Section 30101 of the Public Resources Code, is located where residential use is no longer feasible, but will not be issued a demolition permit or building permit in connection with the conversion until the applicant has entered into an agreement to provide relocation assistance and replacement housing or in-lieu fees consistent with Section 24.08.1350 and the applicable portions of Sections 24.08.1360 and 24.08.1370.

(Ord. 2024-18 § 6, 2024; Ord. 2022-18 § 10, 2022; Ord. 2019-04 § 1, 2019; Ord. 89-23 § 1 (part), 1989).

The zoning administrator may issue a demolition/conversion authorization permit for the demolition or conversion of a multifamily structure, dwelling groups, multiple dwellings and single-room occupancy living units upon holding a public hearing and finding that:

1. The project to replace the demolished or converted units has been approved and an appropriate building permit has been issued, unless a hardship can be documented rendering this finding inappropriate;

2. The demolition or conversion meets all applicable requirements for relocation assis-

tance, replacement housing, and right of first refusal required by Sections 24.08.1350 through 24.08.1370 and state law, including but not limited to California Government Code Sections 65583.2, 65915(c), 66300.5, and 66300.6, as amended.

(Ord. 2025-23 § 8, 2025; Ord. 2022-18 § 10, 2022; Ord. 89-47 § 3, 1989: Ord. 89-23 § 1 (part), 1989).

1. Low- and moderate-income occupancy is established as follows:

• a. Occupied Units.

(1) At the time of application, the applicant shall file a list of names and unit numbers of the tenants who occupied the units during the previous year.

(2) The applicant shall arrange to have the Public Housing Authority (PHA) verify income of tenants for the purpose of establishing low- and moderate-income tenancy.

(3) In the event that a tenant’s income is not verified, the assumption shall be made that the unit is occupied by a low- or moderate-income household.

b. Vacant Units.

(1) The application shall supply the names and addresses of the last tenants that had occupied each dwelling unit within two years prior to the date of submission of the application for the residential demolition/conversion authorization permit.

(2) The applicant shall arrange to have the Public Housing Authority (PHA) verify the income of said tenants for the purpose of establishing low- and moderate-income housing units.

(3) In the event that the most recent tenant cannot be located or identified, the assumption shall be made that the unit was occupied by a low- and/or moderate-income household.

(4) Mitigation measures for demolition or conversion of use of low- and moderateincome housing units shall be based upon the

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number of units determined to be low- and moderate-income housing units.

c. Notwithstanding subsections (1)(a) and (1)(b), the applicant may stipulate that one or more of the units are or have been occupied by low- or moderate-income households. (Ord. 2025-23 § 9, 2025; Ord. 2022-18 § 10, 2022; Ord. 89-23 § 1 (part), 1989).

All low- or moderate-income households displaced by demolition or conversion of use shall receive relocation assistance as required by this section or by state law including but not limited to Government Code Section 66300.6, as amended, whichever amount is greater. For purposes of this section, a residential dwelling unit shall be occupied by a person or family of low or moderate income if a low- or moderateincome household currently occupies or had occupied the dwelling unit within two years prior to the date of submission of the application for the residential demolition/conversion authorization permit.

Relocation assistance shall be defined as two months’ rent. Other arrangements agreeable to the tenant, as evidenced by a written agreement between the tenant and the demolition/conversion authorization permit applicant may be allowed; however, in no case shall the agreement allow for no relocation assistance to be provided, nor can the permit applicant influence or threaten the tenant in any manner to agree to any alternative arrangement that would be less favorable to the tenant than the assistance that is legally required. Payment of relocation assistance or other agreed-upon assistance shall be made by the applicant to eligible tenants prior to submittal of the building permit for the replacement project or use, or at the time of notification of termination of tenancy, whichever occurs first. If the eligible tenancy was terminated prior to the date of application of the residential demolition authorization permit, then the tenant shall still

receive relocation assistance, which shall be made prior to issuance of the building permit for the replacement project or use.

(Ord. 2025-23 § 10, 2025; Ord. 2022-18 § 10, 2022; Ord. 2020-23 § 3, 2020: Ord. 89-23 § 1 (part), 1989).

Development projects shall comply with the requirements of this section as well as those contained in California state law governing replacement housing units, including but not limited to Government Code Sections 65583.2, 65915(c), 66300.5, and 66300.6. For each provision of the regulations, when both this code and the California Government Code apply, the stricter of the two provisions shall be applied to the project.

1. Replacement housing must be provided by the applicant when demolition or conversion of use of three or more dwelling units or singleroom occupancy living units occupied by households of low or moderate income occurs. Replacement requirements shall be based on the total number of bedrooms contained within all low- or moderate-income units to be demolished or converted.

a. The basic requirement is that fifty percent of all low- or moderate-income bedrooms demolished or converted shall be replaced either on site, or elsewhere in the city of Santa Cruz, or a combination of both.

b. Inclusionary rental units located on the same site may also be counted as replacement units, utilizing the more restrictive income and rent requirements for these units. Off-site rental or ownership inclusionary units shall not be used to fulfill replacement unit requirements.

c. In the R-T Districts, one hundred percent of all low- or moderate-income bedrooms demolished or converted shall be replaced either on site, or elsewhere in the city of Santa Cruz, or a combination of both.

d. In the commercial C Districts, one hundred percent of all low- or moderate-income

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bedrooms demolished or converted shall be replaced either on site, or elsewhere in the city of Santa Cruz, or a combination of both.

e. The basic fifty percent bedroom replacement requirement represents a determination of financial feasibility: that being, a greater percentage would render most projects economically infeasible. In the R-T Districts, however, due to greater allowable densities, the one hundred percent bedroom replacement requirement is determined to be feasible. In the C Districts, due to greater allowable use intensities resulting from the possibility to do both commercial and residential development without one reducing the other, the one hundred percent bedroom replacement requirement is determined to be feasible.

(Ord. 2025-23 § 11, 2025; Ord. 2022-18 § 10, 2022; Ord. 2008-14 § 1, 2008: Ord. 90-16 § 1, 1990; Ord. 89-47 § 4, 1989: Ord. 89-23 § 1 (part), 1989).

Replacement housing as required in Section 24.08.1360 may be provided in advance of actual demolition of a structure, except as otherwise required by state law. Conditions for the advance replacement shall be set forth in an advance replacement housing proposal approved as part of a demolition/authorization permit or separate development agreement. Conditions for advance replacement shall address:

1. Procedure to notify and offer advance housing to existing tenants of the structure to be demolished or converted.

2. Project timetable and identification of future project(s) that advance replacement housing will be credited toward.

(Ord. 2025-23 § 12, 2025; Ord. 2022-18 § 10, 2022; Ord. 89-23 § 1 (part), 1989: Ord. 88-41 § 8, 1988).

1. As an alternative to fulfilling the replacement housing requirements of Section

24.08.1360 or 24.08.1362, and except as limited by state law, in-lieu fees can be paid for up to twenty-five percent in the R-T Districts and up to fifty percent in other districts of the total number of low- or moderate-income bedrooms to be provided to meet the replacement housing requirement. The remaining seventy-five percent or fifty percent bedroom replacement requirement shall be actually constructed or caused to be constructed by the applicant. However, where replacement housing is being required due to the provisions of Section 24.08.1330(5), pertaining to demolition or conversion of single-family and duplex units, inlieu fees may be paid to meet one hundred percent of the replacement housing requirement.

2. The in-lieu fees shall be applied to programs that would add to the affordable housing stock through the construction of new housing units or the rehabilitation of existing housing units that were previously substandard and uninhabited or occupied by above-moderate income households. In-lieu fees shall not be used for administration of such programs.

3. Replacement housing in-lieu fees shall be determined in the same manner as inclusionary housing in-lieu fees. For purposes of determining unit sizes, the average number of bedrooms per unit shall be used. For purposes of determining the average number of square feet in a unit, the average square footage for those units shall be used up to a maximum square footage as follows: six hundred fifty square feet for a single-room occupancy unit, studio, or one-bedroom unit; nine hundred square feet for a two-bedroom unit; one thousand four hundred square feet for a three- to eight-bedroom unit.

4. Replacement housing built with in-lieu fees shall, in aggregate, provide the same level of housing as would otherwise have been required, and shall be provided and available for use within three years from the date upon which work commenced on the conversion or demolition, or if no new or rehabilitated units are available within three years, units shall be

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provided in the first available affordable housing project that is constructed in the city. (Ord. 2025-23 § 13, 2025; Ord. 2022-18 § 10, 2022; Ord. 2008-14 § 2, 2008: Ord. 89-23 § 1 (part), 1989).

This part shall not apply to any building when the building official or fire marshal determines that the building is dangerous to the health and safety of the building occupants, neighbors, or the public, and that the demolition of the building is required because of such health and safety concerns. The building official or the fire marshal shall set forth in writing the reasons for their determination that the building is dangerous to the health and safety of the building occupants, neighbors, or the public. However, this exception shall not apply if the dangerous health and safety condition(s) are the result of lack of maintenance of the building. This section has no impact on the relocation assistance requirements stipulated in Title 21 or on relocation assistance, replacement housing, and right of first refusal requirements under California state law, including but not limited to Government Code Sections 65583.2, 65915(c), 66300.5, and 66300.6, as amended.

(Ord. 2025-23 § 14, 2025; Ord. 2022-18 § 10, 2022; Ord. 2017-04 § 1, 2017: Ord. 89-23 § 1 (part), 1989).

No permit for the moving of a building or structure to any premises within the city shall be issued, until the owner thereof has first secured a relocation permit in the manner prescribed by this part. No relocation permit shall be required for the moving of a building or structure from one location to another on the same property, if no public street, alley or easement is entered upon; or for the moving of a building or structure to a location outside the city limits.

(Ord. 85-05 § 1 (part), 1985).

1. Application for a relocation permit shall be filed with the planning department.

2. Upon receipt of a notice from the zoning administrator that an application for a relocation permit has been received, the building official shall cause the subject to be inspected and shall thereafter file with the zoning administrator a written inspection report, together with recommendations as to such requirements as are necessary to bring the structure up to present day codes or standards.

3. A public hearing shall be held by the zoning administrator. All evidence concerning the relocation of said structure shall be evaluated by the zoning administrator, including the report and recommendations of the building official.

(Ord. 85-05 § 1 (part), 1985).