Article 7

COMMON INTEREST DEVELOPMENT (CONDOMINIUM) CONVERSION[1 ]

The purpose of this Article is as follows:

1. To establish criteria for the conversion of the existing multiple family rental housing to condominiums, community apartments, stock cooperatives, and any other subdivision which is a conversion of existing rental housing.

2. To reduce the impact of such conversions on residents in rental housing who may be required to relocate due to the conversion of apartments to condominiums by providing for procedures for notification and adequate time and assistance for such relocation;

3. To assure that purchasers of converted housing have been properly informed as to the physical condition of the structure which is offered for purchase;

4. To ensure that converted housing achieves a high degree of appearance, quality, and safety and is consistent with the goals of the City;

5. To provide a reasonable balance of ownership and rental housing in Walnut Creek and a variety of choices of tenure, type, price and location of housing;

6. To maintain a supply of rental housing for low-and moderate income persons.

1. General. In addition to the requirements and procedures as set forth by Articles 3, 4, 5 and 6 of this chapter, conversions of existing multiple family rental housing to condominiums, community apartments, stock cooperatives, and any other subdivision which is a conversion of existing rental housing shall be subject to the additional requirements provided by this article, except that a limited equity housing cooperative, as defined in Section 33007.5 of the Health and Safety Code, shall be exempt from these additional requirements.

2. Physical Elements Report. A report prepared by a registered engineer or architect or licensed qualified contractor describing the physical elements of all structures and facilities shall be submitted with the tentative subdivision or parcel map. The report shall include, but not be limited to, the following:

   • a. A report detailing the structural condition of all elements of the property including foundations, electrical, plumbing, utilities, walls, roofs, ceilings, windows, recreational facilities, sound transmission of each building, mechanical equipment, parking facilities and appliances.

Regarding each such element, the report shall state, to the best knowledge or estimate of the applicant, when such element was built; the condition of each element; when said element was replaced; the approximate date upon which said element will require replacement; the cost of replacing said element; and any variation of the physical condition of said element from the current zoning and from the City Housing Code and City Building Code in effect on the date that the last building permit was issued for the subject structure. The report shall

1. Prior Ordinance History: Ords. 1275, 1322, 1381, 1456, 1491, 1509, and 1639.

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City of Walnut Creek, CA § 10-1.702

SUBDIVISIONS

• b. A report from a licensed structural pest control operator, approved by the City, on each structure and each unit within the structure.

  • c. A report on soil and geological conditions regarding soil deposits, rock formations, faults, groundwater, and landslides in the vicinity of the project and a statement regarding any known evidence of soils problems relating to the structures. Reference shall be made to any previous soils reports for the site and a copy submitted with said report.

  • d. A statement of repairs and improvements to be made by the subdivider necessary to refurbish and restore the project to achieve a high degree of appearance and safety.

Additional Submittals.

The subdivider shall also submit the following with the tentative subdivision or parcel map:

• a. A Declaration of Covenants, Conditions and Restrictions which would be applied on behalf of any and all owners of condominium units within the project. The declaration shall include, but not be limited to, the conveyance of units; the assignment of parking; an agreement for common area maintenance, including facilities and landscaping, together with an estimate of any initial assessment fees anticipated for such maintenance; description of a provision for maintenance of all vehicular access areas within the project; an indication of appropriate responsibilities for maintenance of all utility lines and services for each unit; a plan for equitable sharing of communal water metering.

• b. Specific information concerning the demographic characteristics of the project, including but not limited to the following:

  • (1) Square footage and number of rooms in each unit;

  • (2) Rental rate history for each type of unit for previous five years;

  • (3) Monthly vacancy rate for each month during preceding two years;

  • (4) Makeup of existing tenant households, including family size, length of residence, age of tenants, and whether receiving federal or state rent subsidies;

  • (5) Proposed sale price of units;

  • (6) Proposed Homeowners' Association fee;

  • (7) Financing available; and

  • (8) Names and addresses of all tenants.

When the subdivider can demonstrate that such information is not available, this requirement may be modified by the Community Development Department.

• c. Signed copies from each tenant of Notice of Intent to Convert, as specified in Section 10-1.704.1. The subdivider shall submit evidence that a letter of notification was sent to each tenant for whom a signed copy of said notice is not submitted. This requirement shall be deemed satisfied if such notices comply with the legal requirements for service by mail.

• d. Any other information which, in the opinion of the Community Development Department,

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City of Walnut Creek, CA § 10-1.702

WALNUT CREEK CODE

4. Acceptance of Reports. The final form of the Physical Elements Report and other documents shall be as approved by the City. The reports in their acceptable form shall remain on file with the Community Development Department for review by any interested persons. The report shall be referenced in the subdivision report to the Planning Commission.

5. Submittal of Budget. Prior to final map approval, the subdivider shall provide the City with a copy of the proposed budget for maintenance and operation of common facilities including needed reserves. The budget shall show estimated monthly costs to the owner of each unit, projected over a five (5) year period, or such time as is required by the Department of Real Estate. Such budget shall be prepared or reviewed and analyzed by a professional management firm, experienced with management of condominium complexes. The management firm shall submit a statement of professional qualifications.

6. Copy to Buyers. The subdivider shall provide each purchaser with a copy of all submittals (in their final, acceptable form) required by Sections 10-1.702.2.a, b, c, d, 10-1.702.3. a, and d, and 10-1.702.5 prior to said purchaser executing any purchase agreement or other contract to purchase a unit in the project, and said developer shall give the purchaser sufficient time to review said information. Copies of the submittals shall be made available at all times at the sales office and shall be posted at various locations, as approved by the City, at the project site. Copies shall be provided to the Homeowners' Association upon its formation.

7. Final Information Submitted. Prior to the close of escrow, the subdivider shall submit the following information to the Community Development Department:

   • a. Name, address and phone number of Homeowners' Association;

   • b. Actual sale price of units;

   • c. Actual Homeowners' Association fee;

   • d. Number of prior tenants who purchased units; and

• e. Number of units purchased with intent to be used as rentals.

• (§ 1, Ord. 1603, eff. September 13, 1984)

1. Adequate Physical Condition. To achieve the purpose of this article, the Planning Commission shall require that all condominium conversions conform to the Walnut Creek Municipal Code in effect at the time of tentative map approval except as otherwise provided in this article.

All provisions of the Municipal Code must be met and violations corrected prior to the approval of the final or parcel map or, upon approval of the Community Development Department, funds shall be secured as provided in Walnut Creek Municipal Code §10-1.808 to assure completion of such corrective work. An over-all assessment of building condition shall be performed by the Code Enforcement Division prior to tentative map approval, and a report of violations specified in the Tentative Subdivision Report to the Planning Commission. A physical inspection of every unit to ensure compliance with the Housing Code shall be required prior to final map approval.

2. Specific Physical Standards. The Planning Commission shall require conformance with the

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City of Walnut Creek, CA § 10-1.703

SUBDIVISIONS

• a. Building Regulations. The project shall conform to the applicable standards of the City Housing Code and shall be found to be in compliance with the City Building Code, Chapter 1, Title 9 of the Walnut Creek Municipal Code in effect on the date that the last building permit was issued for the subject structure or structures except as herein provided.

• b. Health and Safety.

  • (1) Ground Fault Circuit Interrupters. Each bathroom in each living unit shall be provided with ground fault circuit interrupters.c. Fire Prevention.

• c. Fire Prevention.

  • (1) Smoke Detectors. Each living unit shall be provided with approved detectors of products of combustion other than heat conforming to the latest U.B.C. standards, mounted on the ceiling or wall at a point centrally located in the corridor or area giving access to rooms used for sleeping purposes.

  • (2) Maintenance of Fire Protection Systems. All fire hydrants, fire alarm systems, portable fire extinguishers, and other fire protective appliances shall be retained in an operable condition at all times

• d. Sound Transmission.

  • (1) Shock Mounting of Mechanical Equipment. All permanent mechanical equipment such as motors, compressors, pumps, and compactors which is determined by the Chief of Code Enforcement to be a source of structural vibration or structure-borne noise shall be shock mounted with inertia blocks or bases and/or vibration isolators in a manner approved by the Chief of Code Enforcement.

  • (2) Noise Standards. The structure shall conform to all interior and exterior sound transmission standards of Chapter 35 (Appendix) of the Uniform Building Code, Chapter 1 of Title 9 of the Walnut Creek Municipal Code. In such cases where present standards cannot reasonably be met, the Planning Commission may require the applicant to notify potential buyers of the noise deficiency currently existing within these units.

• e. Utility Metering. Each dwelling unit shall be separately metered for gas and electricity. A plan for equitable sharing of communal water metering shall be developed prior to final map approval and included in the Covenants, Conditions and Restrictions. In such cases where the subdivider can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the Planning Commission.

• f. Private Storage Space. Each unit shall have at least 200 cubic feet of enclosed weatherproofed and lockable private storage space in addition to guest, linen, pantry, and clothes closets customarily provided. Such space may be provided in any location approved by the Community Development Department, but shall not be divided into two or more locations. In such cases where the subdivider can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the Planning Commission.

space in addition to guest, linen, pantry, and clothes closets customarily provided. Such space may be provided in any location approved by the Community Development Department, but shall not be divided into two or more locations. In such cases where the subdivider can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the Planning Commission.

• g. Laundry Facilities. A laundry area shall be provided in each unit; or if common laundry areas are provided, such facilities shall consist of not less than one automatic washer and

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City of Walnut Creek, CA § 10-1.703

WALNUT CREEK CODE

§ 10-1.704

one dryer of equivalent capacity for every 5 units of three or more bedrooms; every 7 two bedroom units, and every 10 one bedroom units. In such cases where the subdivider can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the Planning Commission.

• h. Landscape Maintenance. All landscaping shall be restored as necessary and maintained to achieve a high degree of appearance and quality. If a significant amount of new landscaping is required, the landscape plan shall be subject to Design Review Commission approval.

• i. Condition of Equipment and Appliances. The developer shall provide a warranty to the buyer of each unit at the close of escrow that any dishwashers, garbage disposals, stoves, refrigerators, hot water tanks and air conditioners that are provided have a useful life of one year. At such time as the Homeowners' Association takes over management of the development, the developer shall provide a warranty to the Association that any pool and pool equipment (filter, pumps, chlorinator) and any appliances and mechanical equipment to be owned in common by the Association have a useful life of one year. Prior to Final Map approval, the developer shall provide the City with a copy of Warranty Insurance covering equipment and appliances pursuant to this section.

• j. Refurbishing and Restoration. All main buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, landscaped areas, and additional elements as required by the Community Development Department shall be refurbished and restored as necessary to achieve a high degree of appearance, quality and safety. The developer shall provide to the Homeowners Association and/or purchaser a one year warranty on all physical improvements required under this section. If substantial restoration is required, the design plans shall be subject to Design Review Commission approval.

• k. Long Term Reserves. Prior to approval of the final map, the developer shall provide evidence to the City that a long term reserve fund for replacement has been established in the name of the Homeowners' Association. Such fund shall equal two (2) times the estimated monthly homeowner's assessment for each dwelling unit.

• (§ 1, Ord. 1530, eff. April 22, 1982)

1. Notice of Intent. As provided in Government Code 66427.1(a), a notice of intent to convert shall be delivered by the Subdivider to each tenant at least 60 days prior to filing of the Tentative Map. The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirements for service by mail. The form of the notice shall be in the form outlined in Government Code Section 66452.9 and approved by the Community Development Department and will inform the tenants of all rights provided under this article and state law.

2. Notice of Public Report. As provided in Government Code Section 66427.1(a), each tenant shall receive 10 days' written notice that an application for a public report will be or has been submitted to the Department of Real Estate, and that such report will be available on request. The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirements for service by mail.

3. Notice of Final Map Approval. As provided in Government. Code 66427.1(b), each tenant shall receive written notification within 10 days of approval of a final map for the proposed conversion.

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City of Walnut Creek, CA § 10-1.704

SUBDIVISIONS

§ 10-1.704

The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirements for service by mail.

4. Tenant's Right to Purchase. As provided in Government Code §66427.1(d), any present tenant shall be given notice of an exclusive right to contract for the purchase of his or her respective unit upon the same terms and conditions that such unit will be initially offered to the general public or terms more favorable to the tenant. The right shall run for a period of not less than ninety (90) days from the date of issuance of the subdivision public report unless the tenant gives prior written notice of his or her intention not to exercise the right. Evidence of receipt by each tenant shall be submitted prior to approval of the final map. The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirements for service by mail.

5. Vacation of Units. Each tenant not in default under the obligations of the rental agreement or lease under which he occupies his unit, shall be given one hundred eighty (180) days' written notice of intention to convert his or her unit prior to termination of tenancy. The subdivider shall notify each tenant immediately prior to the time of final map approval of the anticipated date required to vacate the unit and when the 180-day period will begin. Evidence of receipt by each tenant shall be submitted prior to approval of the final map. The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirements for service by mail.

each tenant immediately prior to the time of final map approval of the anticipated date required to vacate the unit and when the 180-day period will begin. Evidence of receipt by each tenant shall be submitted prior to approval of the final map. The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirements for service by mail.

6. No Increase in Rents. The rents charged tenants resident when a completed tentative map application was accepted by the Community Development Department shall not be increased for two years from that acceptance time until the unit is sold or until the subdivision is denied, withdrawn or reverted to acreage. The increase in rent on a unit which has been vacated after receipt of the application by the Community Development Department shall not be subject to control.

After rent increases have been restricted by this subsection or any predecessor to it for at least two years, the owner may request the Community Development Department to grant a rent increase. Rents may be increased in accordance with the provisions of the following table:

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----- Start of picture text -----
AMOUNT AND TIMING OF INCREASE
AMOUNT
BELOW FAIR At time of CDD 8 months after 16 months after 24 months after
MARKET RENT approval approval approval approval
Under $60 Entire Balance --- --- ---
$61 to $100 $60 Market Rent --- ---
$101 to $150 $70 Market Rent --- ---
$151 to $200 $80 One-half of Market Rent ---
Remaining
Balance
Over $200 $80 One-third of One-half of Market Rent
Remaining Remaining
Balance Balance
----- End of picture text -----

Fair market rent is the average rent charged at the time the request for a rent increase is received

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City of Walnut Creek, CA § 10-1.704

WALNUT CREEK CODE

§ 10-1.705

in units comparable in size and quality to the affected unit, but for which rent increases are not regulated by this section. The burden of proving fair market rent shall rest entirely with the owner.

7. Special Cases. Any non-purchasing tenant who is handicapped or has minor children in school or is age 60 or older and does not accept a lifetime lease, living in any unit prior to the time a completed tentative map application has been accepted by the Community Development Department shall be given at least an additional six (6) months in which to find suitable replacement housing.

8. Moving Expenses. The subdivider shall provide moving expenses of two times the monthly rent to any tenant household living in any unit prior to the time a completed tentative map application has been accepted by the Community Development Department as provided in this section.

A tenant moving in after tentative map application will not be required to be provided with moving expenses. Eligible tenants will receive moving expenses within 14 days after they relocate, except when the tenant has given notice of his intent to move prior to receipt of notification from the subdivider of his intent to convert. The subdivider shall also provide each tenant with a monthly list of other rentals available in the Central Contra Costa area beginning from the time of tentative map application until each tenant relocates or decides to purchase a unit.

9. Notice to New Tenants. Beginning at a date not less than 60 days prior to the filing of the tentative map, the subdivider or his or her agent shall give notice of such filing in the form outlined in Government Code 66452.8(b) to each person applying after such date for rental of a unit prior to acceptance of any rent or deposit. If the subdivider or his or her agent fails to give notice pursuant to this section, he or she shall pay to each prospective tenant who becomes a tenant and who was entitled to such notice and who does not purchase his or her unit, an amount equal to two times monthly rent for moving expenses.

10. Senior Citizens. At the time of final map approval, all tenant households resident at the time a completed tentative map application was accepted by the Community Development Department in which the head of household or spouse is age 60 or older shall be offered a Lifetime Lease. Annual rent increases shall not exceed 75% of the latest annual average percentage increase of the Residential Rent Component of the Consumer Price Index, San Francisco-Oakland SMSA. Tenants shall be informed of the change in this index at the time rent increases are imposed. Starting rents shall be the rent at the time of tentative map application. Lease forms shall be submitted to the Community Development Department for review prior to final map approval.

11. Low- and Moderate-Income Tenant. At the time of final map approval, all tenant households resident upon acceptance by the City of a completed tentative map application, which meet the income limits of the HUD Section 8 program will be considered low- and moderate-income households and shall be offered at a minimum a three-year lease. Annual rent increases shall not exceed 75% of the latest annual average percentage increase of the Residential Rent Component of the Consumer Price Index, San Francisco-Oakland SMSA. Tenants shall be informed of the change in this index at the time rent increases are imposed. Starting rents shall be the rent at the time of tentative map application. Lease forms shall be submitted to the Community Development Department for review prior to final map approval.

• (§ 1, Ord. 1630, eff. August 1, 1985; § 1, Ord. 1530, eff. April 22, 1982)

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City of Walnut Creek, CA § 10-1.705

SUBDIVISIONS

In order to reduce the effect of conversions on the City's housing supply and to minimize the displacement of tenants, the number of conversions shall be limited to no more than 5% of the City's potentially convertible rental stock in any one calendar year. Conversion applications will be processed in the order that completed applications are submitted. A proposed project that is larger than the permitted number of units in a given year, if approved, will be considered to have used the permitted number for as many future years as necessary.

The potentially convertible rental stock will be defined as follows: the number of rental units in buildings of two or more units, as determined by the most recent census, plus any new rental units constructed since the census, minus any units which have received tentative map approval to convert since the census.

Once the yearly limit has been reached, a project may be approved for conversion only if the Planning Commission makes one or more of the following findings:

1. The developer will provide for a significant increase in housing for low-and-moderate income households or senior citizen households over and above the provisions of this article.

2. The developer will provide for the construction of new rental housing.

3. The developer will donate an acceptable site or an acceptable amount of funds to the City for construction of new rental or senior citizen housing.

4. The need and demand for low cost homeownership to be provided for by this project will outweigh the detriment caused by further reduction of the rental stock.

• (§ 1, Ord. 1530, eff. April 22, 1982)

The Planning Commission shall not approve an application for conversion unless the Planning Commission finds that:

1. All provisions of this article are met;

2. The proposed conversion is consistent with the objectives, policies, general land uses and programs specified in the Walnut Creek General Plan, along with applicable specific plans and the Walnut Creek Housing Element;

3. The proposed conversion will conform to the Walnut Creek Municipal Code in effect at the time of tentative map approval, including, but not limited to, parking standards, except as otherwise provided in this article;

4. The overall design and physical condition of the condominium conversion achieves a high degree of appearance, quality and safety;

5. The proposed project will not convert during the current calendar year more than 5% of the potentially convertible rental units in Walnut Creek for the current calendar year except as otherwise provided in this article; and

6. Vacancies in the project have not been intentionally increased for the purpose of preparing the project for conversion.

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City of Walnut Creek, CA § 10-1.801

SUBDIVISIONS