Article 14-75

CONDOMINIUM CONVERSION

Sections:

This Article is enacted for the following purposes: (a) To maintain a reasonable balance of rental to ownership housing that adequately serves the needs of the community by establishing vacancy rate criteria which must be met prior to permitting conversion of existing multiple family housing to community housing.

(b) To help maintain the supply of rental housing as an alternative housing source for senior citizens, and in this regard to reduce and avoid the displacement of long-term residents who may be required to move from the community as a result of any shortage of replacement multiple family rental housing.

(c) To implement the housing element of the General Plan.

(d) To specify additional data and documentation to be furnished with tentative maps for community housing conversions.

(Ord. No. 398, § 1(Att.), 12-20-2023)

For the purposes of this Article, the following words and phrases shall have the meanings respectively ascribed to them in this Section, unless the context or the provision clearly requires otherwise:

(a) Association means the organization of persons who own a condominium unit or right of exclusive occupancy in a community apartment or other community housing unit.

(b) Community housing means and includes a condominium project as defined in Section 4125 of the Civil Code, containing two or more condominiums; a community apartment project as defined in Section 4105 of the Civil Code, containing two or more rights of exclusive occupancy; and a stock cooperative, as defined in Section 4190 of the Civil Code, containing two or more rights of exclusive occupancy.

(c) Conversion means a change in the type of ownership of a parcel or parcels of land, together with the existing attached structures, from multiple family rental housing units to that defined herein as any one or more of the types of community housing.

(d) Organizational documents means and includes the Declaration of Covenants, Conditions and Restrictions ("CC&R"), Articles of Incorporation, Bylaws, and any contracts for the maintenance, management or operation of all or any part of a community housing project or the common area of any such project.

(e) Vacancy rate is the number of apartments being offered for rental or lease in the City shown as a percentage of the total number of rental apartments both being offered for and actually under rental or lease agreement in the City, as determined by the State Department of Finance (DOF).

(f) Vacancy surplus is a vacancy rate in excess of five percent.

(Ord. No. 398, § 1(Att.), 12-20-2023)

(a) No application for approval of a tentative map for conversion of existing multiple family rental housing units to residential community housing shall be filed or accepted for filing, nor shall any such conversions be permitted in the City, unless and until there is a vacancy surplus; provided, however, in the event that such vacancy surplus exists at the time of filing an application for tentative map approval, any subsequently occurring decrease in the vacancy surplus shall not invalidate or suspend the application, and the same may be processed to conclusion under the provisions of this Chapter regardless of the actual effect on the vacancy surplus rate at the time of approval of the final map.

(b) Prior to submitting the application for tentative map approval for a conversion to community housing, the applicant shall furnish to the Community Development Director a current survey of all existing rental apartments and community housing units in the City, showing the vacancy rate. The form and content of the survey shall be subject to approval by the Director. The Director shall not accept the application unless the survey, as approved by the Director, establishes the existence of a vacancy surplus as required by this Article.

(Ord. No. 398, § 1(Att.), 12-20-2023)

(Saratoga Supp. No. 53, 4-24)

274.7

14-75.040

Where an application for tentative map approval for a conversion to community housing is permitted to be filed under Section 14-75.030, then in addition to all other information and documents required under the provisions of this Chapter to be submitted for tentative map approval, the application shall also be accompanied by the following:

(a) Copies of proposed organizational documents, which shall include, or be accompanied by the following:

(1) Plan for conveyance of units.

(2) Plan for assignment of parking and management of common areas within the project.

(3) Proposed annual operating budget containing a sinking fund to accumulate reserves to pay for major maintenance repair or replacement expenses.

(4) Federal Housing Administration regulatory agreement, if any.

(5) If a condominium, copy of proposed condominium plan as required by Civil Code Section 4285, et seq.

(6) CC&R's to include proviso for penalties on late payment of annual assessments and reasonable attorneys' fees and costs in the event of default in payment thereof.

(b) A property report describing the condition and estimating the remaining useful life of each of the following elements of each structure situated within the project proposed for conversion: roofs, foundations, exterior paint, paved surfaces, mechanical systems, electrical systems, plumbing systems, including sewage systems, sprinkler systems for landscaping, utility delivery systems, central or community heating and air conditioning systems, fire protection systems including any automatic sprinkler systems, alarm systems or standpipe systems, and structural systems. Such a report shall be prepared by a licensed contractor or registered engineer.

(c) A structural pest control report obtained within the last sixty days, prepared by a licensed structural pest control operator pursuant to Sections 8516, et seq., of the Business and Professions Code.

(d) A building history report, to include the following:

(1) The date of construction of all elements of the project.

(2) A statement of the major uses of said project since construction.

(3) A statement regarding current ownership of all improvements and underlying land.

(4) The name, address, and length of tenancy of each present tenant of the project, including children.

(e) A rental history detailing the size in square footage of each apartment unit, the current or last rental rate, the monthly rental rate for the preceding two years, and the monthly vacancy over the preceding two years of each rental unit proposed to be converted.

(f) A copy of each application to the State Department of Real Estate for issuance of a final public report for the project proposed for conversion including all attachments and exhibits thereto required by the Department pursuant to Section 11010 of the Business and Professions Code, to include a copy of the statement of compliance (form 643 as amended), or its successor, pursuant to 10 California Administrative Code, Section 2792.9, or its successor, relating to operating and maintenance funds during start-up, and a statement as to whether the applicant will provide any capital contribution to the association for deferred maintenance of the common areas, and if so, the sum and date on which the association will be paid.

(g) A copy of the supplemental questionnaire for apartments converted to condominium projects submitted to the Department of Real Estate for the project proposed for conversion, including all attachments and exhibits thereto.

(h) Evidence that the applicant has complied with all requirements for the giving of notice to the tenants and prospective tenants of the project, as provided in Sections 66452.17 and 66452.18 of the Government Code. The tentative map shall not be approved unless the Planning Commission is able to make the findings regarding notice to tenants, as specified in Section 66427.1 of the Government Code. (Ord. No. 398, § 1(Att.), 12-20-2023)

Since the conversion of existing rental apartments into community housing constitutes a division into spaces or residential units in existing buildings and structures, in addition to the improvement requirements otherwise applicable to subdivisions under Articles 14-25 and 14-30 of this Chapter, the Planning Commission may impose additional conditions on ten-

(Saratoga Supp. No. 53, 4-24)

274.8

14-75.050

tative map approval as may reasonably be required to separately meter the utilities for each unit, to provide separate electrical over-current protection for each unit, to provide sound insulation between units, to insure adequate off-street parking, and such other matters as may be deemed advisable or necessary in order to protect the public health, safety and general welfare of the owners and proposed owners of such community housing units.

(Ord. No. 398, § 1(Att.), 12-20-2023)

274.9

(Saratoga Supp. No. 53, 4-24)