Chapter 14.02
CONDOMINIUM AND TOWNHOUSE CONVERSION REGULATIONS

Sections:

14.02.010    Purpose.

14.02.020    Amendment.

14.02.030    Definitions.

14.02.040    General provisions.

14.02.060    Enforcement.

14.02.070    Appeals.

14.02.080    Severability.

    Prior legislation: Ords. 2093, 2213, 2222, 2443, 2841, 3114 and 3154.

14.02.010 Purpose.

The purpose of this chapter is to establish requirements and procedures for the control and approval of conversions of approved or existing multiple-family rental housing to residential condominiums, community apartment projects, stock cooperatives and townhouses. Because there exists a limited amount of rental housing in the County, the conversion of approved or existing rental housing to residential condominiums, community apartment projects, stock cooperatives and townhouses may conflict with the policy of the County to provide a reasonable balance of rental and ownership housing for low and moderate income persons. This chapter is intended to implement the policies of the County General Plan and Local Coastal Program Land Use Plan. [Ord. 4844 § 3, 2006; Ord. 3331 § 1, 1982].

14.02.020 Amendment.

This chapter implements policies of the Local Coastal Program Land Use Plan adopted and certified in compliance with the Coastal Act of the State of California. Amendments to this chapter are subject to approval by the State Coastal Commission when they affect the administration of the certified Local Coastal Program, and such amendments must be processed following the hearing and notice procedure of Chapter 13.03 SCCC pertaining to Local Coastal Program Administration. [Ord. 4844 § 3, 2006; Ord. 3331 § 1, 1982].

14.02.030 Definitions.

“Approved dwellings” means a housing project which has received all land use approvals and has not been constructed or if constructed, has not obtained all clearances for occupancy.

“Conversion” means a change in the type of ownership of a parcel or parcels of land, together with the approved or existing attached structures, to that defined for a condominium project or townhouse project regardless of the present or prior use of such land and structures and whether substantial improvements have been made or are to be made to such structures.

“Dwelling” means a structure for human habitation providing complete independent living facilities for one or more persons.

“Limited-equity housing cooperative” means a corporation which meets the criteria of Section 11003.2 or any successor provisions of the Business and Professions Code and Section 33007.5 or any successor provisions of the Health and Safety Code.

“Low and moderate income” means those income levels as defined in the Housing Element of the County General Plan and as updated to reflect current estimates of median household income limits as prepared from time to time by the U.S. Department of Housing and Urban Development.

“Multiple-family dwelling” means a structure containing more than one dwelling unit and designed for permanent occupancy or occupied by more than one family.

“Project” means community apartments, condominiums, stock cooperatives, limited-equity cooperatives, and townhouses.

“Stock cooperative” means a corporation holding title to improve real property where substantially all of the shareholders of such corporation receive a right of exclusive occupancy in a portion of the real property as further defined in Section 11003.2 of the Business and Professions Code.

“Townhouse” means a real estate development consisting of separately owned lots, parcels, or areas, with one or more additional contiguous or noncontiguous lots, parcels or areas owned in common by the owners of the separate lots, parcels, or areas; as defined in Business and Professions Code Section 11003. [Ord. 4844 § 3, 2006; Ord. 4496-C § 77, 1998; Ord. 3331 § 1, 1982].

14.02.040 General provisions.

(A)    No structure constructed as a multiple-family dwelling or group of dwellings shall be converted to a project pursuant to this chapter or the Subdivision Map Act within three years after construction is completed.

(B)    The conversion of existing occupied residential real property or property capable of being occupied into a project shall not be approved unless all the following findings can be made:

(1)    Each of the tenants of the proposed project 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 60 days prior to the filing of a tentative map pursuant to Section 66452.9 of the Government Code; 10 days’ written notification 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 upon request pursuant to Section 66427.1(a) of the Government Code; written notice of public hearing and of the tenant’s right to appear and to be heard on the proposed 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.

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

(3)    Each of the tenants of the proposed project has been, or will be, given written notification within 10 days of approval of a final map for the proposed conversion.

(4)    Each of the tenants of the proposed project has been or will be given 180 days’ written notice of intention to convert prior to termination of tenancy due to conversion or proposed conversion. Tenants aged 62 or older or persons with disabilities or with minor children have or will be given an additional 120 days in which to find suitable replacement housing. 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, 1941.2, 1941.3 and 1941.4 of the California Civil Code.

(5)    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 written notice to the landlord.

(6)    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 (or any other dwelling unit in the project not claimed by the tenant) 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 90 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 the County if a subdivision public report is not required, unless the tenant gives prior written notice of his or her intention not to exercise the right.

(7)    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 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 intent to move prior to issuance of the notification of intention to convert.

(C)    Conversions May Be Permitted Only If. Conversions of approved dwellings or existing multiple-family dwellings or groups of dwellings may be permitted only if:

(1)    One hundred percent of the converted units are enforceably restricted so as to be affordable to, and occupied solely by, low or moderate income persons for the life of the unit; or

(2)    For conversions involving four or fewer existing units, no fewer than one-half of the units to be converted must be sold to persons who have resided in the project for a period of three years prior to the notification of intention to convert in order for the conversion to be approved. In determining the number of residential conversion units, any decimal fraction less than or equal to 0.50 shall be disregarded, and any decimal fraction greater than 0.50 shall be construed as requiring one unit; or

(3)    The conversion involves a single existing unit or the conversion involves four or fewer existing units equaling 20 percent or greater of the total project and occurs in connection with the construction of a new unit or units on the same parcel with a minimum of 20 percent of the total project being affordable to low and moderate persons for the life of the unit.

(D)    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, unless first approved by the Planning Commission. The Planning Commission shall allow for reasonable increases in rent due to documented increases in utilities and taxes.

(E)    Each of the tenants of the proposed project who first resided in the project after the notification of intention to convert shall be provided with a written notice stating that the unit is planned for conversion and may be subject to future sale. Such tenants shall also be given copies of all notices required by this section which have been issued for their units.

(F)    The applicant for conversion of an existing structure to a project shall provide the following information:

(1)    A building and zoning history, to the extent available, detailing the date of construction, major uses since construction and the dates, nature, and scope of major repairs and alterations since construction.

(2)    A property report detailing the condition and useful life of the roof, foundation, mechanical, electrical, plumbing and structural elements of all existing buildings and structures, prepared by a certified engineer. (A copy of this report shall be furnished to each prospective purchaser by applicant prior to sale of the unit.)

(3)    A structural pest report prepared by a licensed structural pest control operator.

(4)    A preliminary set of plans for the structure(s) to be converted.

(5)    A statement of the number of units, the size of units, the number of tenants, and a listing of the names and addresses of all tenants.

(6)    A statement certifying that all present tenants have been notified in writing of the intent to apply for conversion, and of all of their rights and responsibilities as outlined in this section.

(7)    A statement of the repairs and improvements which will be done prior to sale of the units.

(8)    A description of the condition of the common areas, including landscaping, recreational features, and facilities within the project area.

(9)    A description of the provisions for management and maintenance of common areas and facilities within the project.

(G)    A permanent record of the notices required to be provided by the terms of this section shall be kept by the applicant for a period of one year thereafter, such record to include:

(1)    A copy of each notice showing the date of 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 the return receipt if a receipt was returned by the recipient of the notice. [Ord. 4844 § 3, 2006; Ord. 4819 §§ 2, 3, 2006; Ord. 4794 §§ 2, 3, 2005; Ord. 4784 §§ 2, 3, 2005; Ord. 4642 § 5, 2001; Ord. 3481 § 1, 1983; Ord. 3331 § 1, 1982].

14.02.060 Enforcement.

(A)    The provisions of this chapter and SCCC Title 19 shall apply to all agents, successors and assigns of an applicant. No building permit or occupancy permit shall be issued, nor any development approval be granted which does not meet the requirements of this chapter. The County shall suspend or revoke any building permit or development approval upon finding a violation of any provision of this chapter.

(B)    Any person, firm, or corporation, whether as principal, agent, employee or otherwise, violating or causing the violation of any of the provisions of this chapter, shall be guilty of a misdemeanor, and upon conviction thereof shall be punishable for each offense by a fine of not less than $500.00 for each day in which such violation occurs, or by imprisonment in the County jail for a term not exceeding six months, or by both fine and imprisonment. Such person, firm, or corporation shall be deemed to be guilty of a separate offense for each and every day during any portion of which any violation of this chapter is commenced, continued, or permitted by such person, firm, or corporation, and shall be punishable as herein provided.

(C)    The County may institute injunction, mandamus, or any appropriate legal actions or proceedings for the enforcement of this chapter. [Ord. 4844 § 3, 2006; Ord. 4391 § 2, 1995; Ord. 3331 § 1, 1982].

14.02.070 Appeals.

All appeals of actions taken pursuant to the provisions of this chapter shall be made in conformance with the procedures in Chapter 18.10 SCCC; provided, however, that code enforcement actions and decisions are not subject to administrative appeal except for appeals of revocation of permits pursuant to SCCC 18.10.136(C). [Ord. 4844 § 3, 2006; Ord. 4391A § 2, 1996; Ord. 4391 § 2, 1995; Ord. 3331 § 1, 1982].

14.02.080 Severability.

If any provision of this chapter or application thereof to any person or circumstances is held invalid, this invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end, the provisions of this chapter are declared to be severable. This chapter shall be liberally construed to achieve the purposes of this chapter and to preserve its validity. [Ord. 4844 § 3, 2006].