HomeMy WebLinkAboutOrd 11-05 CondominiumConversn
ORDINANCE NO. 11 - 05
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*****...w
ADDING CHAPTER 8.54 TO THE DUBLIN MUNICIPAL CODE
(ZONING ORDINANCE) RELATING TO CONDOMINIUM CONVERSIONS
The City Council of the City of Dublin does hereby ordain as follows:
Section L
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 réal 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 of the 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 REGULA nONS
8.54.010
Intent. The purpose of this Chapter is 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.
C.
Establish criteria for the conversion of existing multi-family rental housing to
condominiums.
727583.8
-1-
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
8.54.030
. Condominium Conversion Defined. A "condominium conversion" means the
conversion of the ownership of the units in a residential housing project containing
twenty-one 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 of the
following, all as defined in Civil Code section 1351 (a) a community apartment
project, (b) a condominium project, and ( c) a stock cooperative.
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:
8.54.040
L
Projects that had recorded subdivision maps for a community apartment project, a
condominium project, or a stock cooperative on or before September 7, 2004.
2.
Projects in which none of the units have been occupied as rental units.
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 identity 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 á 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 CornmunityDevelopment Director shall review preliminary
applications for condominium conversions. The Community Development Director shall
authorize the submittal of a Condominium Conversion Permit application if both of the
following criteria are met:
727583.5
1.
Notice ofIntent to Convert Provided. The applicant provides satisfactory
evidence to the Community Development Director that the Notice ofIntent to
Convert required by section 8.54.050 was received by all tenants of the project
-2-
proposed for conversion and that 60 days have elapsed since the applicant made the
last such notification.
2. Conversion Would Not Exceed Annual Maximum. The approval of the proposal
would not result in the conversion of units in excess of the Annual Maximum. The
"Annual Maximum" for the purposes of this Chapter shall be equal to seven
percent (7%) of the total number of multiple-family units in developments of
twenty one (21) or more rental units in the City, as determined by the City as of
January 1 of each year. Notwithstanding the foregoing, if the number of units in a
project proposed for conversion by itself exceeds the Annual Maximum, the
Community Development Director shall authorize the submittal of a Condominium
Conversion Permit application for the proposed project, unless the Community
Development Director has during that year authorized the submittal of a
Condominium Conversion Permit application and that authorization has not
expired. If the Community Development Director authorizes the submittal of an
application to convert a project that exceeds the Annual Maximum, the total
number of units in excess ofthe Annual Maximum shall be subtracted from the
Annual Maximum for the next year (and if necessary for each subsequent year).
Preliminary applications for each year may be submitted no earlier than January 1.
Preliminary applications shall be processed in the order that completed applications are
submitted. If a preliminary application is rejected because it fails to meet the requirements
of subdivision B.l of this Section, the preliminary application may be resubmitted. If the
preliminary application is rejected because it fails to meet the requirements of subdivision
B.2 of this Section, the preliminary application may not be resubmitted until no sooner
than January I of year following the preliminary application's submittal. In either case, the
resubmittal will not be entitled to priority over preliminary applications submitted between
the original submittal and the resubmittal. Notwithstanding anything to the contrary in 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 ofIntent 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:
127583.8
"To the occupant(s) of [address]:
The owner(s) oftms building, at [address], plan(s) 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
-3-
Chapter 8.56 of the Dublin Municipal Code may give you, as a tenant ofa 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
modificatiofis to existing site conditions. The applicant shaH submit an application for Site
Development Review concurrently with the application for a Condominium Conversion Permit.
The decision maker shaH 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 shaH 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:
I. 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 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 of the 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 of the 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.
-4-
727:583.8
Reference shall be made to any previous soils report for the site and a copy
submitted with the report; and
5. A statement ofrepairs and improvements necessary to refurbish and restore the
projeCt to achieve a high degree ofappearance, quality and safety.
B. A site/development plan;
C. Specific information concerning the characteristics of the project, including, but not
limited to, the following:
L 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 (I2) 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. A declaration of covenants, conditions and restrictions (CC&Rs) that would be recorded
and would apply to each owner of a condominium unit 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
H. Such additional information as the Community Development Director deems necessary to
ensure the compliance with this Chapter.
8.54.080
Building Code Requirements
The building proposed for conversion and each unit within the building shall comply with the
current Housing Code as defined by section 7.48 of the Dublin Municipal Code. The Building
Official shall, if deemed necessary, inspect the project. Upon completion of the 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
727583.8 -5-
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 of the 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 of the fact that the
application for a public report will be submitted and that upon the issuance of the 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 favorable to the tenant. The notice shall further indicate the project will
be subject to conditions, covenants, and restrictions that establish a homeowners' association to
manage the project, that may restrict how the property is used, and that impose certain financial
obligations on the owners of units within the project, such as the payment of monthly
homeowners' association dues. In addition, within 10 days of the issuance of the 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 of the 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 of the 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:
n75~~.1!:
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 of the 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.
If the City determines that the tenant's household income is such that it meets one
of the 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.
-6--
8.54.100
8.54.110
A.
1275!'iJ..~
Limitations on Rent Increases Pending Conversion. Rents shall not be
increased from the date of issuance of the Notice ofIntent 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 section
11018, whichever occurs later. If the applicant withdraws an application for a
Condominium Conversion Permit, this section shall have no further effect.
Tenant Protections
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 that
has a disability as defined in Section 54 of the California Civil Code, that 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 that 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 365 days' written notice of intention to terminate tenancy due to the
conversion. The notice shall indicate that the tenant may terminate his or her tenancy upon
30 days' notice. 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 365 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 365 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 30 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 30 days prior to the expiration of 365-day 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
335 days have elapsed since the tenant was provided a 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.
-7-
8.54.120
8.54.130
8.54.140
A.
727583.8
Notification of New Tenants. AI! prospective tenants of a project for which a
Notice ofIntent to Convert has been issued to tenants pursuant to section 8.54.050
shall be provided with a copy of the Notice ofIntent to Convert prior to their
execution of a lease. If provided with such notice, prospective tenants shall not be
entitled to tenant relocation assistance provided to Eligible Tenants pursuant to
section 8.54.110.
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 Inc1usionary 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. Any existing affordable units within the project
created pursuant to the City's Inclusionary Zoning Regulations shall remain
affordable units. If fees were paid in lieu of creating affordable units, the credit
may only be used to satisfy that portion of the obligation under the then-current
Inclusionary Zoning Regulations that may be satisfied by payment offees in lieu of
creation of affordable units.
By way of illustration, if at the time a 40-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
and built a moderate-income affordable unit to meet the project's obligations under
the Inclusionary Zoning Regulations, then, upon the event of a conversion of the
40-unit project, the converter would be entitled to a two-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 3 units, which is 5 units minus the two-unit credit. One unit
of credit would be associated with the moderate-income affordable unit that would
remain affordable. As the other unit of credit was created by the payment of in-lieu
fees and is equal to 2.5% of the total units in the project, only one unit of the
remaining inclusionary obligation of3 units could be satisfied through the payment
of in-lieu fees. Pursuant to the income-level allocations and rounding conventions
set forth in section 8.68.030.B, the project's 3 affordable units are required to be
distributed to the three income categories as follows: I moderate-income unit, 1
low-income unit, and 1 very low-income unit. Since the existing unit is a
moderate-income unit, the two additional affordable units would have to be
provided in the very low- and low-income categories.
Development Standards - Utilities
Gas. Each condominium unit shall have a separate gas service where gas is a necessary
utility. If this provision places unreasonable economic burden on the applicant, the
Building Official may approve an alternative method.
-8-
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 cónsent 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.
B. That the proposed conversion, as conditioned, conforms to the requirements of this
Chapter.
C. That the approval would not result in the conversion of units in excess of the Annual
Maximum, as defined in section 8.54.040. The Annual Maximum shall be based on the
year in which the Community Development Director authorized the filing of a
Condominium Conversion Permit application. Notwithstanding the foregoing, if the
number of units in a project proposed for conversion by itself exceeds the Annual
Maximum, the decision maker shall not refuse to approve application because it would
result in the conversion of units in excess of the Annual Maximum.
8.54.160
8.54.170
n7SSj.8
Term and Lapse of Condominium Conversion Permit. A Condominium
Conversion Permit shall lapse 1 year following the date on which the permit
became effective, ¡fthe applicant has not yet received a subdivision public report
lTom 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.
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
-9-
5.54.180
A.
B.
c.
Section 3:
its adoption.
public record and the findings above approve, conditionally approve, or deny a
Condominium Conversion Permit.
Adjustments and Waivers.
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 ofthis 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.
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
that applying the requirements of this Chapter 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.
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 ofthis 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 of this Chapter, the requirements of this Chapter remain
applicable.
Effective Date. This Ordinance shall take effect and be enforced thirty (30) days following
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 of the Government
Code of the State ofCalifomia.
PASSED, APPROVED AND ADOPTED this 3rd day of May, 2005 by the following vote:
AYES: Council members Hildenbrand, McCormick, Oravetz and Mayor Lockhart
NOES: Councilmember Zika
ABSENT: None
ABSTAIN: None
727583.8 -10-