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HomeMy WebLinkAboutAttachmt 4 AltUrgencyCondoOrdin ORDINANCE NO. - 05 AN URGENCY ORDINANCE OF THE CITY OF DUBLIN ADDING CHAPTER 8.54 TO THE DUBLIN MUNICIPAL CODE (ZONING ORDINANCE) RELATING TO CONDOMINIUM CONVERSIONS The City Council ofthe City of Dublin does hereby ordain as follows: Section 1. Findings. A. State law provides that cities have the responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community. B. The City Council finds that conditions in the residential real estate market have led to the increase in proposals to convert existing multi-family rental projects to condominiums and other forms of multiple ownership and that the conversion of one or two of the City's apartment communities could have a major impact on the City's housing market, in that it would remove from the market a significant percentage ofthe existing rental units. C. The City Council finds that the conversion of residential structures from individual ownership to condominiums or any other form of multiple ownership interest has the potential to create specific community problems, both social and economic. For example, conversions may significantly affect the balance between rental and ownership housing within the City, and thereby reduce the variety of individual choices of tenure, type, price and location of housing. Conversion may also increase overall rents, decrease the supply of rental housing for all income groups, displace individuals and families, and disregard the needs of the housing market place. D. Accordingly, the City Council finds that the adoption of a condominium- conversion ordinance is necessary to limit the impacts on the community of condominium conversions, to provide guidelines for the City to evaluate the economic and social problems associated with condominium conversions, and to establish requirements that must be included in any conversion approval. Section 2. Addition of Chapter 8.54. Chapter 8.54 is hereby added to the Dublin Zoning Ordinance to read as follows: CHAPTER 8.54 CONDOMINIUM CONVERSION REGULATIONS 8.54.010 Intent. The purpose of this Chapter is to: A. Maintain a supply of affordable and market rate rental housinÂTT A C H M ENT ~ 727552.1 -1- December 29,2004 727552.1 B. Provide a reasonable balance of ownership and rental housing in the community and a variety of choices in the type and price of housing. C. Establish criteria for the conversion of existing multi-family rental housing to condominiums. D. Reduce the impact of conversion on residents of rental housing that may be required to relocate due to the conversion of rental housing to condominiums. E. Provide the opportunity for very low-, low-, and moderate-income persons to participate in the ownership process and to maintain a supply of rental housing for very low-, low-, and moderate-income persons; and F. Ensure that converted housing achieves a high degree of appearance, quality and safety. 8.54.020 Condominium Conversion Defined. A "condominium conversion" means the conversion of the ownership of the units in a residential housing project containing twenty or more units that are or were previously occupied as rental units from a single ownership to an ownership in which the residential units may be sold individually. Such condominium conversions may include, but are not limited to, the conversion of existing multiple unit residential housing projects to any ofthe following, all as defined in Civil Code section 1351 (a) a community apartment project, (b) a condominium project, and (c) a stock cooperative. 8.54.030 Condominium Conversion Permit A. Permit Required. No condominium conversion may take place in the City without the owner first obtaining a Condominium Conversion Permit pursuant to this Chapter and, where applicable, an approved subdivision map. B Exemptions. A Condominium Conversion Permit shall not be required prior to the sale of individual units to the public for any of the following residential housing projects: 1. Projects that had recorded subdivision maps for a community apartment project, a condominium project, or a stock cooperative on September 7,2004. 2. Projects in which none of the units have been occupied as rental units. -2- December 29, 2004 727552. ] 8.54.040 Preliminary Application Process. A. Preliminary Applications. Prospective applicants for Condominium Conversion Permits shall initially submit a preliminary application on forms provided by the City. Preliminary applications shall identify the owner or the owner's authorized agent and the location and number of units in the building to be converted. The preliminary application shall be accompanied by a preliminary application fee, the amount of which shall be as set forth from time to time by resolution of the City Council. B. Department Review. The Community Development Director shall review preliminary applications for condominium conversions. The Community Development Director shall authorize the submittal of a Condominium Conversion Permit application ifboth of the following criteria are met: 1. Notice of Intent to Convert. The applicant provides satisfactory evidence to the Community Development Director that the Notice oflntent to Convert required by section 8.54.050 was received by all tenants of the project proposed for conversion and that 60 days have elapsed since the applicant made the last such notification. 2. RentaJ/Ownership Housing Ratio. The ratio that multiple-family units in developments of twenty (20) or more rental units bears to the total number of housing units in the City as a whole exceeds thirty percent (30%). For the purposes of this calculation, the units proposed for conversion should be treated as housing units but should not be treated as rental units. Notwithstanding the foregoing, no Condominium Conversion Permit application shall be accepted for projects that propose to convert only a portion of the units in an existing multiple unit residential project. The Condominium Conversion Permit application shall be submitted no later than 60 days following the Community Development Director's authorization. 8.54.050 Notice of Intent to Convert. A. At least sixty (60) days prior to submitting an application for a Condominium Conversion Permit pursuant to section 8.54.070, the applicant shall provide notice substantially in the form outlined in subdivision B to each tenant in the project proposed for conversion. B. The notice shall be substantially as follows: "To the occupant(s) of [address]: -3- December 29,2004 727552.1 The owner(s) ofthis building, at [address], planes) to file an application for a Condominium Conversion Permit with the City of Dublin to convert this building to condominiums, community apartments, or a stock cooperative project. You will be provided with notice of each hearing held by the City on the proposed conversion, and you have the right to appear and the right to be heard at any such hearing. Be advised that Chapter 8.56 of the Dublin Municipal Code may give you, as a tenant of a structure proposed for conversion to condominiums, certain rights. [signature of owner or owner's agent] [date] C. In the event that the applicant is simultaneously applying for a tentative map and a Condominium Conversion Permit, the notice required by this section may be combined with the notice required by Government Code section 66452.9 8.54.060 Site Development Review Required. Any condominium conversion shall also be subject to Site Development Review, pursuant to Chapter 8.104, to provide the City with a mechanism to evaluate issues related to maintenance of the property and consistency with prior site and architectural approvals and, if necessary, require modifications to existing site conditions. The applicant shall submit an application for Site Development Review concurrently with the application for a Condominium Conversion Permit. The decision maker shall impose such conditions as are necessary to require that buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, landscaped areas and utility facilities are refurbished and restored as necessary to ensure that the proposed conversion project is and remains orderly and attractive. 8.54.070 Condominium Application Requirements. An application for a Condominium Conversion Permit shall be accompanied by the following items: A. A report on the physical elements of each structure and facility, which shall include, but not be limited to, the following: 1. A report detailing the condition of each element of the property, including foundation, structural, electrical, plumbing, utilities, walls, ceilings, windows, recreational facilities, sound transmission of each building, mechanical equipment, parking facilities, and appliances. Regarding each element, the report shall state to the best knowledge or estimate of the applicant when the element was -4- December 29,2004 727552. ] constructed or installed, when the element was last replaced, the approximate date upon which the element will require replacement, the cost of replacing the element, and any variation of the physical condition ofthe element from the applicable zoning and building code. The report shall identify each known defective or unsafe element and set forth the proposed corrective measures to be employed; 2. A report from a licensed structural pest control operator on each structure and each unit within the structure; 3. A report on the condition ofthe common area improvements, including landscaping, lighting, utilities and streets; 4. A report on any known soil and geological conditions regarding soil deposits, rock formation, faults, groundwater and landslides in the vicinity of the project, and a statement regarding any known evidence of soils problems relating to the structure. Reference shall be made to any previous soils report for the site and a copy submitted with the report; and 5. A statement of repairs and improvements necessary to refurbish and restore the project to achieve a high degree of appearance, quality and safety. B. A site/development plan; C. Specific information concerning the characteristics of the project, including, but not limited to, the following: 1. Square footage and number of rooms in each unit; 2. Estimated sales price range of units; and 3. Names and mailing address of all tenants. D. A detailed list of rents for each unit to be converted for the twelve (12) months prior to the application; E. Economic and demographic information regarding the current tenants as required by the Community Development Director; F. A Tenant Relocation Assistance plan as required by Section 8.54.110; G. Evidence that all eligible tenants entitled to special protection have been offered lease extensions in accordance with Section 8.54.110.F. H. A declaration of covenants, conditions and restrictions (CC&Rs) that would be recorded and would apply to each owner of a condominium unit -5- December 29, 2004 727552.1 within the project. The declaration shall include, but not be limited to, pertinent information regarding the conveyance of units and 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 maintenance, and an indication of appropriate responsibilities for maintenance of all improvements and utility systems for each unit. The city has the right to review and approve the CC&Rs to ensure that (1) the appropriate conditions of approval are included in them and (2) those provisions reflecting the city's conditions may not be amended without city approval; and 1. Such additional information as the Community Development Director deems necessary to ensure the compliance with this Chapter. 8.54.080 Building Code Requirements A building proposed for conversion, and each unit within the building, shall comply at a minimum with all applicable building standards in effect at the time of the last alteration, repair, relocation, or reconstruction ofthe building, necessitating compliance with the building standards, or, if none, at the time of first construction. In addition, the building proposed for conversion and each unit within the building shall comply with the current Housing Code as defined by section 7.48 ofthe Dublin Municipal Code. The Building Official shall, if deemed necessary, inspect the project. Upon completion ofthe inspection, if any, the Building Official shall identify all items evidenced by the application or the inspection to be in noncompliance with applicable building and housing standards. All such items shall be corrected to the satisfaction of the Building Official, prior to granting the Condominium Conversion Permit. 8.54.090 Tenant's Right to Purchase Units A. All Units. The applicant shall, as a condition of approval of the Condominium Conversion Permit and before offering the unit for sale to the general public, be required to provide tenants with an exclusive right to contract for the purchase of the unit occupied by the tenant upon the same terms and conditions that such unit will be initially offered to the general public or on terms more favorable to the tenant. The right shall run for a period of 90 days from the date of issuance ofthe subdivision public report pursuant to section 11018 ofthe Business and Professions Code, unless the tenant gives prior written notice of his or her intention not to exercise the right. At least ten days prior to the submission of an application to the Department of Real Estate for a public report, the applicant shall provide notice to each tenant in the project ofthe fact that the application for a public report will be submitted and that upon the issuance ofthe public report the tenant will be granted an exclusive right to contract for the purchase of the unit occupied by the tenant upon the same terms and conditions that such unit will be initially offered to the general public or on terms more -6- December 29, 2004 727552.1 favorable to the tenant. In addition, within 10 days ofthe issuance ofthe public report, the applicant shall by mail notify each tenant in writing that the public report has been issued and shall in writing grant the tenant the right to purchase the unit as provided in this section. If the notice is not mailed within 10 days of the issuance ofthe public report, the tenant's right to purchase granted pursuant to this section shall be extended for a period equal to 80 days from mailing of the notification. B. Affordable Units. If a tenant occupies an inclusionary unit pursuant to the City's inclusionary zoning program, all of the provisions of Subsection A shall apply except as otherwise provided in this Subsection B. The applicant shall initially determine the income category (i.e. very low, low, or moderate income) under Section 8.68.030 at which the inclusionary unit is being rented to the tenant. The applicant shall thereupon offer the unit to the tenant at the sales price that a unit in the unit's income category could be sold under Chapter 8.68, subject to the City's certification ofthe tenant's qualifications to purchase the unit. Should the City determine that the tenant's household income is such that the tenant does not qualify to purchase the unit within the income category at which it is offered, the applicant shall: 1. Offer the unit to the tenant pursuant to Subsection A. If the tenant accepts the offer, the applicant shall convert a unit within the project not previously designated as an inclusionary unit to an inclusionary unit in the income category ofthe unit purchased by the tenant. The number of bedrooms in the converted unit shall be equal to or greater than the number of bedrooms in the unit purchased by the tenant. 2. Ifthe City determines that the tenant's household income is such that it meets one ofthe other income categories set forth in Section 8.68.020.D (i.e. very low, low, and moderate incomes), and provided that there are available inclusionary units within the project at that income category, offer the unit to the tenant at a sales price that a unit in the tenant's income category could be sold under Chapter 8.68, subject to the City's certification of the tenant's qualifications to purchase the unit. If the tenant accepts the offer, the available unit shall be designated as an inclusionary unit at the income category at which the unit purchased by the tenant was previously rented. 8.54.100 Limitations on Rent Increases Pending Conversion. Rents shall not be increased from the date of issuance of the Notice oflntent to Convert pursuant to Section 8.54.050 until twelve months following the approval of the Condominium Conversion Permit or six months following the issuance of a public report by the Real Estate Commissioner pursuant to Business and Professions Code -7- December 29, 2004 727552.1 section 11018, whichever occurs later. If the applicant withdraws an application for a Condominium Conversion Permit, this section shall have no further effect. 8.54.110 Tenant Relocation Assistance A. Requirement. The applicant shall, as a condition of approval of the Condominium Conversion Permit, be required to implement the Tenant Relocation Assistance Plan that is approved by the City in conjunction with the issuance of the Condominium Conversion Permit. The Tenant Relocation Assistance Plan shall be prepared by the applicant and shall indicate the applicant's commitment to provide the tenant benefits required by this section. B. Eligible Tenant. As used in this section, the term "eligible tenant" means any tenant who was a resident of the property both on the date of the filing of the application for a Condominium Conversion Permit and on the date of approval of the permit and who does not intend to purchase a unit in the conversion project. C. Notice of Termination of Tenancy. Each tenant of a project proposed for conversion shall be given 180 days' written notice of intention to terminate tenancy due to the conversion. The notice shall also provide the tenant with a summary description of the City-approved Tenant Relocation Assistance Plan and information on where to obtain a copy. The notice shall also indicate that the tenant will be granted a right to purchase the unit the tenant occupies. Each person who becomes a tenant of a conversion project after the date of such 180 days' written notice shall be given a copy of the notice of intention to terminate tenancy before entering into any written or oral rental agreement but shall not be entitled to 180 days' written notice prior to termination of tenancy due to the converSIOn. D. Financial Relocation Assistance. The Plan shall include a provision that requires the applicant to provide financial assistance equal to the rent for the three-month period prior to the filing of the application for the Condominium Conversion Permit to any Eligible Tenant that relocates after the issuance of the Condominium Conversion Permit. The financial assistance payment shall be made 15 days prior to the termination of the Eligible Tenant's tenancy, if the Eligible Tenant provides notice to the applicant of the Eligible Tenant's termination of the lease, or 15 days prior to the expiration of 180 days Notice of Termination of Tenancy period, whichever is earlier. Notwithstanding Subsection B of this Section, a tenant shall be deemed an Eligible Tenant and eligible for the financial assistance payment if the Condominium Conversion Permit has not yet been granted but 165 days have elapsed since the tenant was provided a -8- December 29,2004 727552.1 Notice of Termination of Tenancy. A tenant is not entitled to financial assistance pursuant to this subsection if the tenant has been evicted for just cause or has not made rental payments to which the applicant is legally entitled. F. Continued Tenancy for Tenants Entitled to Special Protection. 1. Special Protection. An eligible tenant is entitled to "special protection", as defined in this Section 8.54.110, ifthe head of household or spouse satisfies one or more of the following criteria: has attained age 62; has a disability as defined in Section 54 of the California Civil Code Code; is residing with one or more minor dependent children; or is a resident of an inclusionary housing unit. 2. 12-Month Extension of Tenancy. The applicant shall be required prior to the issuance of the Condominium Conversion Permit to demonstrate that either (a) it has entered into agreements with each eligible tenant entitled to special protection granting such tenant the right of continued tenancy, but permitting the tenant to terminate his or her tenancy upon 30 days' notice, at the rent and on the terms in effect on the date of the mailing of the Notice of Intent to Convert pursuant to section 8.54.050 until twelve months following the end of the 180-day period pursuant to section 8.54.110.C or (b) the eligible tenant has refused the offer of such an extension. 8.54.120 Notification of New Tenants. All prospective tenants of a project for which a Notice oflntent to Convert has been issued to tenants pursuant to section 8.54.050 shall be provided with a copy of the Notice oflntent to Convert. Ifprovided with such notice, prospective tenants shall not be entitled to tenant relocation assistance provided to tenants pursuant to section 8.54.110. 8.54.130 Compliance with Inclusionary Zoning Regulations. Condominium conversions shall be treated as "new residential development projects" under and shall be required to comply with the then-current Inclusionary Zoning Regulations in Chapter 8.68. The decision maker shall include conditions in the Condominium Conversion Permit approval sufficient to ensure compliance with the provisions of Chapter 8.68. Notwithstanding the foregoing, if the project was required to comply with the Inclusionary Zoning Regulations at the time the project was constructed, the project shall receive a credit for the number of affordable units required at the time the project was constructed. If fees were paid in lieu of creating the affordable units, the credit may only be used to satisfy that portion of the obligation under the then-current Inclusionary -9- December 29, 2004 727552.1 Zoning Regulations that may be satisfied by payment of fees in lieu of creation of affordable units. By way of illustration, if at the time a 20-unit rental project was constructed, the Inclusionary Zoning Regulations required 5% of the units in the project to be affordable, and the developer paid fees in lieu of constructing one affordable unit to meet the project's obligations under the Inclusionary Zoning Regulations, then, upon the event of a conversion ofthe 20-unit project, the converter would be entitled to a one-unit credit against its Inclusionary Zoning obligations. Thus, ifthe then-current Inclusionary Zoning Regulations require that 12.5% of the units be affordable and provide that at least 7.5% of the units must be constructed, then the converter's Inclusionary Zoning Obligation would be 1.5 units, which is 2.5 units minus the one unit credit. As the one-unit credit was created by the payment of in-lieu fees and is equal to 5% of the total units in the project, the remaining inclusionary obligation could not be satisfied through the payment of in-lieu fees. 8.54.140 Development Standards - Utilities A. Gas. Each condominium unit shall have a separate gas service where gas is a necessary utility. Ifthis provision places unreasonable economic burden on the applicant, the Building Official may approve an alternative method. B. Electricity. Each condominium unit shall have a separate electrical service, with separate meters and disconnects. C. Telephone Company Access. The telephone company serving the location under conversion shall have the right to construct and maintain (place, operate, inspect, repair, replace, and remove) communication facilities as it may from time-to-time require (including access) in or upon any portion of the common area, including the interior and exterior of the buildings as necessary to maintain communication service within the project. This provision may not be amended or terminated without the consent of the serving telephone company. 8.54.150 Findings Required for Approval The decision maker shall not approve a Condominium Conversion Permit unless it finds: A. That the proposed conversion is consistent with the General Plan and any applicable specific plans, in particular with the objectives, policies, and programs of the Housing Element of the General Plan designed to provide for the housing needs of all economic segments of the community. -10- December 29,2004 727552.1 B. That the proposed conversion, as conditioned, conforms to the requirements ofthis Chapter. C. That the ratio that multiple-family units in developments of twenty (20) or more rental units bears to the total number of housing units in the City as a whole exceeds thirty percent (30%). For the purposes of this calculation, the units proposed for conversion should be treated as housing units but should not be treated as rental units. 8.54.160 Term and Lapse of Condominium Conversion Permit. A Condominium Conversion Permit shall lapse 1 year following the date on which the permit became effective, ifthe applicant has not yet received a subdivision public report from the Real Estate Commissioner pursuant to Business and Professions Code section 11018 authorizing the sale of the units proposed for conversion to the public. The permit shall be extended for a period of not more than one year, if the Community Development Director finds that the applicant is diligently pursuing but has not yet received a subdivision public report from the Real Estate Commissioner pursuant to Business and Professions Code section 11018 authorizing the sale of the units proposed for conversion to the public. Upon receipt of the subdivision public report from the Real Estate Commissioner authorizing the sale of the units proposed for conversion to the public, the Condominium Conversion Permit shall be automatically extended so long as the subdivision public report remains in effect. 8.54.170 Action. The decision maker for Condominium Conversion Permits shall be the Planning Commission. The Planning Commission shall hold a public hearing, and after the public hearing is closed may, by resolution and based on evidence in the public record and the findings above approve, conditionally approve, or deny a Condominium Conversion Permit. 5.54.180 Adjustments and Waivers. A. Authority to Waive or Adjust Requirements. The requirements of this Chapter may be adjusted or waived if the property owner demonstrates to the City Manager that applying the requirements of this Chapter would take property in violation of the United States or California Constitutions. A person seeking an adjustment or waiver shall apply to the City Manager and provide such information as the City Manager finds is necessary to determine whether applying the requirements of this Chapter would take property in violation of the United States or California Constitutions. -11- December 29, 2004 B. Consideration and Decision. In making a determination on an application to adjust or waive the requirements of this Chapter, the City Manager shall consider all relevant evidence submitted by the applicant. The burden shall be on the applicant to demonstrate the applying the requirements of this Cahpter would take property in violation of the United States of California Constitutions. The City Manager, upon legal advice provided by the City Attorney, will make a determination on the application and issue a written decision. The City Manager's decision shall be final. C. Adjustment or Waiver of Requirements. If the City Manager, upon legal advice provided by the City Attorney, determines that the application of the provisions of this Chapter would take property in violation of the United States or California Constitutions, the requirements of this Chapter shall be modified, adjusted or waived to reduce the obligations under this Chapter to the extent necessary to avoid an unconstitutional result. If the City Manager determines no violation of the United States or California Constitutions would occur through application ofthis Chapter, the requirements of this Chapter remain applicable. Section 3: Effective Immediately. This ordinance is adopted as an urgency ordinance pursuant to subdivision (b) of Government Code section 36937, to take effect immediately, and is for the immediate preservation of the public peace, health and welfare. The facts constituting the urgency are the following: This ordinance applies to condominium conversions that have not received all governmental approvals necessary to sell individual units, including a public report from the Department of Real Estate. Should a converter receive a subdivision report from the Department of Real Estate before this ordinance becomes effective, the converter could evade the application of this ordinance. Similarly, under the Subdivision Map Act, the City may only apply standards in effect at the time that an application for a tentative subdivision map is deemed complete. However, if the City initiates proceedings by resolution and publishes a public notice containing a description sufficient to notify the public of the nature of the proposed change in the zoning or subdivision ordinances, the City may apply the ordinance enacted or instituted as a result of the proceedings that are in effect on the date the local agency approves or disapproves the tentative map. The City adopted such a resolution on September 7, 2004. If a converter were to receive a subdivision approval before this ordinance became effective, it could evade this ordinance. If a converter were to evade the application of this ordinance it would thereby frustrate the City's intent to (a) maintain a supply of affordable and market rate rental housing; (b) provide a reasonable balance of ownership and rental housing in the community and a variety of choices in the type and price of housing; and (c) establish criteria for the conversion of existing multi- family rental housing to condominiums; (d) reduce the impact of conversion on residents of rental housing that may be required to relocate due to the conversion of rental housing to condominiums; and (e) provide the opportunity for very low-, low-, and moderate- income persons to participate in the ownership process and to maintain a supply of rental housing for very low-, low-, and moderate-income persons; and (f) ensure that converted housing achieves a high degree of appearance, quality and safety. 727552.1 -12- December 29,2004 Section 4: Posting.. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 ofthe Government Code ofthe State of California. Section 5: Automatic Repeal. This ordinance shall be automatically repealed upon Ordinance No. _-05 becoming effective. PASSED, APPROVED AND ADOPTED this_day of ,2005. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney 727552.1 -13- December 29, 2004