Chapter 23.37
COMMUNITY HOUSING PROJECTS

Sections:

23.37.010    Application.

23.37.010.1    Covenants, conditions and restrictions.

23.37.020    Provisions for conversions of existing structures – Vacancy requirements.

23.37.020.1    Exceptions.

23.37.030    Provisions for conversion of existing structures – Code requirements.

23.37.040    Guidelines.

23.37.050    Provision for the protection of tenants.

23.37.060    Buyer protection provisions.

23.37.010 APPLICATION.

All applicable provisions of the Map Act and of this title shall apply to community housing projects.

(Ord. 82-14 § 2 (part), 1982).

23.37.010.1 APPLICATION – COVENANTS, CONDITIONS AND RESTRICTIONS.

An application for approval of a community housing project shall be accompanied with three copies of the covenants, conditions and restrictions providing for the construction, maintenance, repair or reconstruction of the common areas. All such covenants, conditions and restrictions shall contain the following provisions:

“The owners of all parcels subject to these Covenants, Conditions and Restrictions, and recognize the proper maintenance of the common area is for the benefit of all citizens of the city of Santa Cruz and that the city of Santa Cruz is an intended third party beneficiary of these Covenants, Conditions and Restrictions and may, thirty days after notice to the association, exercise the same powers of enforcement as the association.

“In the event the association does not adequately maintain the common area, the city of Santa Cruz may, thirty days after written notice to the association, undertake the maintenance of such common area. Any and all costs incurred by the city in maintaining such common area shall be a lien against the maintenance fund and the property of the individual members of the association.”

(Ord. 82-14 § 2 (part), 1982).

23.37.020 PROVISIONS FOR CONVERSIONS OF EXISTING STRUCTURES – VACANCY REQUIREMENTS.

(a)    No existing residential structure shall be converted to a community housing project so long as the multifamily dwelling vacancy rate in Santa Cruz is less than five percent of the total number of such dwellings offered for and under lease or rental agreement in the city.

(b)    When there is a vacancy surplus, application for residential condominium conversions may be filed. Approvals may be allowed up to the number of units that would bring the vacancy rate no lower than five percent.

(Ord. 2012-19 § 7 (part), 2012: Ord. 82-14 § 2 (part), 1982).

23.37.020.1 PROVISIONS FOR CONVERSIONS OF EXISTING STRUCTURES – VACANCY REQUIREMENTS – EXCEPTIONS.

(1)    An existing residential structure may be converted to a community housing project and be exempt from Section 23.37.020(a) if the structure is converted and sold to at least sixty-seven percent of the existing tenants. In such cases, proposals containing five or more units shall provide at least twenty percent of the total units for purchase by households of below-average income pursuant to Section 24.16.050 of the Zoning Ordinance.

(2)    An existing residential stock cooperative proposed for conversion to a condominium is exempt from Section 23.37.020.

(3)    A building which is listed on the city historic building survey or which is a contributing building located in a city historic district.

(Ord. 2012-19 § 7 (part), 2012: Ord. 90-33 § 1, 1990: Ord. 82-14 § 2 (part), 1982).

23.37.030 PROVISIONS FOR CONVERSION OF EXISTING STRUCTURES – CODE REQUIREMENTS.

An existing residential structure may be converted to a condominium project only if it meets or exceeds the requirements of Zoning Ordinance Section 24.12.180, Community Housing Project Requirements, and requirements of current existing building and construction codes. The Historic Building Code may be used for buildings which are listed on the city historic building survey or which are contributing buildings located in a city historic district.

(Ord. 2012-19 § 7 (part), 2012: Ord. 90-33 § 2, 1990: Ord. 82-14 § 2 (part), 1982).

23.37.040 GUIDELINES.

In the event applications for rental-unit conversion exceed the amount permitted under Section 23.37.020, approvals shall be determined in accordance with guidelines established by resolution.

(Ord. 82-14 § 2 (part), 1982).

23.37.050 PROVISION FOR THE PROTECTION OF TENANTS.

Conversion of existing residential structures to community housing projects can be approved in accordance with Section 23.37.030 only if evidence is provided that the following provisions have been implemented:

(a)    Each of the tenants of the proposed projects has or will have received all applicable notices and rights now or hereafter required by the State Subdivision Map Act, including written notice of intention to convert, at least sixty days prior to the filing of a tentative map, pursuant to Section 66452.9 of the Government Code; ten days’ written notification that an application for a public report will be available upon request, pursuant to Section 66427.1(a) of the Government Code; written notice of public hearing and the tenant’s right to appear and to be heard on the conversion, pursuant to Section 66451.3 of the Government Code; and copies of the staff report on the tentative map at least three days prior to any hearing or action on such map, pursuant to Section 66452.3 of the Government Code.

(b)    Within ten days after the filing of the tentative subdivision map with the city, the subdivider shall cause the following notice to be delivered or mailed by certified or registered mail with return receipt requested to the occupant of each occupied apartment being converted to a condominium:

NOTICE TO PRESENT TENANT

This apartment is sought to be converted to a condominium unit and may be subject to future sale. The City of Santa Cruz will provide information about the City’s regulations regarding conversions of apartments to condominiums.

(c)    At the time of the issuance of the written notice of the intention to convert, the applicant has informed the tenants that a tenants’ association has the right to negotiate for the purpose of converting the structure as a cooperative.

(d)    Within ten days of approval of a final map for the proposed conversion, each of the tenants of the proposed project will be given written notification of the approval.

(e)    Each of the tenants of the proposed project has been, or will be, given one hundred eighty days’ written notice of intention to convert prior to termination of tenancy due to the conversion or proposed conversion. Tenants aged sixty-two or older or handicapped or with minor children have been, or will be given an additional one hundred twenty days in which to find suitable replacement housing. A list of available rental units of similar price shall be provided to each tenant. The provisions hereof shall not alter or abridge the rights or obligations of the parties in performance of their covenants including, but not limited to, the provision of services, payment of rent, or the obligations imposed by Sections 1941, 1941.1 and 1941.2 of the California Civil Code.

(f)    Each of the tenants of the proposed project has, or will be given, the right to cancel any existing lease following receipt of the written notice of public hearing by providing thirty-day written notice to the landlord.

(g)    Each of the tenants of the proposed project has been, or will be given, notice of an exclusive right to contract for the purchase of his or her respective unit or, in the case of a cooperative, the share controlling the dwelling unit then occupied by the tenant upon the same terms and conditions that such unit will be initially offered to the general public on terms more favorable to the tenant. The right shall run for a period of not less than ninety days from the date of issuance of the subdivision public report, pursuant to Section 11018.2 of the Business and Professions Code, or approval of the application by city if a subdivision public report is not required, unless the tenant has given prior written notice of his or her intention not to exercise the right.

(h)    Each of the tenants of the proposed project who resided in the project at the time of the issuance of the notification of intention to convert has been, or will be, offered moving and relocation assistance amounting to one and one-half times the tenant’s monthly rent, except when the tenant has given notice of his or her intention to move prior to issuance of intention to convert.

(i)    Rents will not be increased from the time of filing of the application for conversion until relocation takes place or until the application is denied or withdrawn.

(j)    No apartment in a building to be converted shall be leased to any person after the filing of an application with the city for such conversion unless a written notice shall have been delivered to the prospective lessee or tenant in substantially the following form:

NOTICE TO PROSPECTIVE TENANT

This apartment unit is sought to be converted to a condominium unit and may be subject to future sale.

A permanent record of such required notices shall be kept for a period of one year thereafter, such record to include:

(1)    A copy of each notice showing the date on which it was delivered or mailed; and

(2)    Proof of the giving of the notice consisting of:

(A)    If delivered, the signature of the person to whom it was delivered acknowledging such delivery; or

(B)    If mailed, proof of mailing and return receipt if the receipt was returned to the recipient of the notice

(Ord. 82-14 § 2 (part), 1982).

23.37.060 BUYER PROTECTION PROVISIONS.

(a)    The subdivider shall furnish three copies of the covenants, conditions and restrictions which shall provide for the organization and responsibilities of a homeowners association as part of its provisions.

(b)    The covenants, conditions and restrictions shall contain on the first page in type as large as any type used in the covenants, conditions and restrictions a notification in substantially the following terms:

NOTICE

The terms of this document are legally binding. Read it carefully. A real estate broker is qualified to advise on real estate matters. If you desire legal advice, consult your attorney.

(Ord. 82-14 § 2 (part), 1982).