Chapter 22.50
DEVELOPMENT OF AND CONVERSION TO RESIDENTIAL INDUSTRIAL AND COMMERCIAL CONDOMINIUMS
Sections:
22.50.020 Definitions—References.
22.50.040 Application requirements.
22.50.050 Copy of physical elements report to buyers.
22.50.070 Additional requirements for residential condominium conversion projects.
22.50.080 Reasonable conformity with development standards.
22.50.090 Declaration of conditions, covenants and restrictions.
22.50.100 Tenants’ rights in residential condominium conversions.
22.50.010 Purpose.
The purpose of this chapter is to establish criteria for the development or conversion of existing multiple-family rental housing and the development or conversion of commercial and industrial projects for condominium, community apartment, and stock cooperative ownership. These criteria shall insure that condominium projects achieve high quality in appearance and safety, are consistent with the objectives of the general plan, development plan, and this code, that adequate provisions are established for the maintenance of the projects, and that the purchasers of condominium projects are properly informed as to the physical condition of the structures offered for purchase. This chapter enacts procedures to reduce the impact of residential condominium conversions on residents in rental housing who may be required to relocate due to conversion. Moreover, this chapter attempts to provide an opportunity for housing ownership of all types, for all levels of income and in a variety of locations, and to maintain a supply of rental housing for low and moderate income persons and families. (Ord. 598 § 1 (part), 1982)
22.50.020 Definitions—References.
(a) The terms herein are defined for purposes of this chapter, unless otherwise indicated, as follows:
(1) “Applicant or subdivider” means the owners of the real property proposed for development of a conversion to condominiums, or the owners’ designated representatives.
(2) “Community apartment project” means the same as defined by Section 11004 of the California Business and Professions Code.
(3) “Condominium” means the same as defined by Section 783 of the California Civil Code.
(4) “Condominium conversion” or “condominium conversion project” means a proposal to subdivide a parcel of real property by dividing the space within an existing residential, commercial or industrial building into condominium, stock cooperative or community apartment ownership.
(5) “Condominium project” means a proposal to subdivide a parcel of real property by dividing airspace into condominium, stock cooperative or community apartment ownership.
(6) “Date of conversion” means the date the final or parcel map for the project is approved by the city council.
(7) “Stock cooperative” means the same as defined by Section 11003.2 of the California Business and Professions Code.
(8) “Unit” means each portion of space within a condominium project or condominium conversion project, designed for sale to a separate owner or owners.
(b) Development of or conversion to community apartments and stock cooperatives shall be subject to the same restrictions, conditions and requirements as condominiums. The term “condominium” as used in this chapter shall be deemed to include condominiums, as well as community apartments, stock cooperatives and cooperative apartments, except where specifically noted. (Ord. 598 § 1 (part), 1982)
22.50.030 Approval required.
(a) No person, firm, corporation, partnership or other entity shall proceed with either the development of or conversion to a residential, industrial or commercial condominium project without first having obtained approval of:
(1) Tentative and final subdivision maps in accordance with Title 17 of this code; and
(2) Precise plan approval, in accordance with Chapters 23.01 and 23.90 of this code.
(b) The application requirements described in this chapter shall be fulfilled as a part of and in addition to all application requirements for such subdivision map and precise plan approvals. (Ord. 598 § 1 (part), 1982)
22.50.040 Application requirements.
No application for approval of a residential, industrial or commercial condominium project or condominium conversion project shall be accepted for any purpose unless the application includes all information and material which is required by Section 23.90.210. In addition, no application for approval of a condominium conversion project shall be accepted for any purpose unless the application includes:
(1) A physical elements report, which shall include, but not be limited to:
(a) A report detailing the condition and estimating the remaining useful life of each element of the project proposed for conversion: Roofs, foundations, exterior paint, paved surfaces, mechanical systems, electrical systems, plumbing systems including sewage systems, swimming pools, sprinkler systems for landscaping, utility delivery systems, central or community heating and air-conditioning systems, fee protection systems including automatic sprinkler systems, alarm systems, standpipe systems, and structural elements. This report shall be prepared by an appropriately licensed contractor or architect or by a registered civil or structural engineer other than the owner. For any element whose useful life is less than five years, a replacement cost estimate shall be provided;
(b) A structural pest control report. This report shall be prepared by a licensed structural pest control operator pursuant to Section 8516 of the California Business and Professions Code;
(c) A building history report including the following:
(i) The date of construction of all elements of the development,
(ii) A statement of the major uses of the development since construction,
(iii) The date and description of each major repair or renovation of any structure or structural element since the date of construction. For purposes of this subsection, a “major repair” means any repair for which the fair market value was, or for which an expenditure was made in the amount of, one thousand dollars or more,
If an applicant fails to provide information required by subparagraphs (i) through (iii), the applicant shall submit with the application an affidavit, given under penalty of perjury, setting forth reasonable efforts undertaken to discover such information and reasons why such information cannot be obtained;
(2) Specific information concerning the characteristics of the project. For residential condominium conversion projects, such information shall include, if available to the applicant, the following:
(a) Square footage and number of rooms in each unit,
(b) Rental rate history for each type of unit for each of the previous five years,
(c) Monthly vacancy rate for each month during the preceding two years,
(d) Makeup of existing tenant households, including family size, length of residence, age of tenants, and whether tenants are receiving federal or state rent subsidies,
(e) Proposed sale price of each unit,
(f) Proposed condominium association fee,
(g) Financing available for the purchase of each unit, and
(h) Names and addresses of all tenants;
(3) Evidence that a certified letter of notification of intent to convert was sent to each tenant for whom a signed copy of the notice is not submitted;
(4) Any other information which in the opinion of the director of community development will assist in determining whether the condominium conversion project is consistent with the purposes of this chapter. (Ord. 770 § 1 (part), 1996; Ord. 598 § 1 (part), 1982)
22.50.050 Copy of physical elements report to buyers.
The owner of a condominium conversion project shall provide to the first purchaser of each unit within the condominium conversion project a copy of the physical elements report in final form, as accepted by the city for filing prior to the execution of a contract to purchase the unit or an escrow agreement for such purchase. The owner shall give the purchaser sufficient time to review the report. Copies of the report shall be made available at the sales office of the condominium conversion project for inspection by any person at all times that the sales office is open for business and shall be posted at various locations at the project site, as approved by the city. (Ord. 598 § 1 (part), 1982)
22.50.060 Requirements and standards for the development of or conversion to residential, industrial and commercial condominiums.
Each condominium project which is subject to development or conversion pursuant to this chapter shall conform to the development standards set forth for the zone wherein the condominium project will be located. In addition, all condominium projects shall conform to the following standards and requirements:
(1) Wall and floor-ceiling assemblies shall conform to Title 25, California Administrative Code, Section 1092, or its successor, or permanent mechanical equipment, including domestic appliances, which is determined by the director of community development to be a potential source of vibration or noise, shall be shock mounted, isolated from the floor and ceiling, or otherwise installed in a manner approved by the director of community development to lessen the transmission of vibration and noise. Floor covering may be replaced only by another floor covering that provides the same or greater insulation. The requirements of this paragraph shall not apply to a unit in a building which contains no other unit(s).
(2) The consumption of gas and electricity within each unit shall be separately metered so that the unit owner can be separately billed for each utility. A water shutoff valve shall be provided for each unit or for each plumbing fixture. Each unit shall have access to its own meter(s) and heater(s) which shall not require entry through another unit. Each unit shall have its own panel, or access thereto, for all electrical circuits which serve the unit. (Ord. 770 § 1 (part), 1996; Ord. 598 § 1 (part), 1982)
22.50.070 Additional requirements for residential condominium conversion projects.
In addition to development standards otherwise set forth in this code, residential condominium conversion projects shall conform to the following standards and requirements:
(1) Any physical element identified in the physical elements report, required pursuant to this chapter, as having a useful life of less than two years shall be replaced.
(2) 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 dryer far each five units or fraction thereof.
(3) The applicant shall provide written certification to the buyer of each unit on the initial sale after conversion that any dishwashers, garbage disposals, stoves, refrigerators, hot water tanks, and air conditioners that are provided are in working condition as of the close of escrow. At such time as the condominium association takes over management of the development, the applicant shall provide written certification to the association that any pool and pool equipment and any appliances and mechanical equipment to be owned in common by the association is in proper working condition.
(4) The applicant shall provide for solar water heating systems for at least fifty percent of the units in a residential condominium project, including providing retrofits. Innovative designs shall be encouraged. (Ord. 598 § 1 (part), 1982)
22.50.080 Reasonable conformity with development standards.
Where it is established that the applicant cannot reasonably meet standards or requirements set forth in Sections 22.50.060 and 22.50.070 of this chapter, the approving body may, in its discretion, approve the application following a determination at the time of tentative subdivision map and/or precise plan approval that there is reasonable conformity with those standards and requirements based upon:
(1) An appraisal of those standards and requirements in relation to the characteristics of the subject property;
(2) Alternative provisions made by the applicant which fulfill the intent and purpose of the standards or requirements otherwise set forth in Sections 22.50.060 and 22.50.070; and
(3) Other condominium project amenities which compensate for any failure to meet the standards or requirements otherwise set forth in those sections. (Ord. 598 § 1 (part), 1982)
22.50.090 Declaration of conditions, covenants and restrictions.
Prior to the issuance of any permit for a new residential, industrial or commercial condominium project, and prior to the execution of a contract of sale or an escrow agreement for any unit in a residential, industrial or commercial condominium conversion project, a declaration of covenants, conditions and restrictions shall be prepared by the applicant, shall be submitted to and approved by the director of community development and the city attorney, and shall be recorded by the applicant. This declaration shall be signed and acknowledged by all parties who have record title interest which could ripen into a fee in the condominium project or condominium conversion project. The declaration shall provide for the following:
(1) That the city is a party to and may enforce the declaration;
(2) That there shall be effective establishment, operation, management, use, repair and maintenance of all common areas and facilities;
(3) That if the project is not maintained and repaired in the condition required by the declaration or by city ordinances, then the city, after making due demand and giving reasonable notice, may enter the property and perform, at the owner’s sole expense, any maintenance required by the declaration or by city ordinances;
(4) That the property shall be subject to a lien in favor of the city to secure any maintenance or repair expense incurred by the city which is not promptly reimbursed to the city. (Ord. 770 § 1 (part), 1996; Ord. 598 § 1 (part), 1982)
22.50.100 Tenants’ rights in residential condominium conversions.
Every applicant for approval of a residential condominium conversion project shall satisfy each of the following requirements:
(1) Each of the tenants in a condominium conversion project shall receive a written notice from the applicant of his intention to convert at least sixty days prior to the filing of a tentative subdivision map with the city. 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. In addition to the minimum requirements of Government Code Section 66452.9, the notice of intention shall also contain the following:
(a) Approximate date on which the tentative map is proposed to be filed;
(b) Approximate date on which the final map or parcel map is to be filed;
(c) Approximate date on which the unit is to be vacated by nonpurchasing tenants;
(d) Notice of the tenant’s right to purchase;
(e) Notice of the tenant’s right of notification to vacate;
(f) Notice of the tenant’s right of termination of lease;
(g) Statement of limitations on rent increase;
(h) Provision of moving expenses; and
(i) Such other related information as may be deemed necessary by the director of community development.
(2) The applicant shall give each of the tenants of the units proposed for conversion a nontransferable right to contract for the purchase of the unit occupied upon the same or better terms and conditions that such unit will be initially offered to the general public in the time and manner provided in Government Code Section 66427.1(d).
(3) Each of the tenants of the condominium conversion project shall be given written notice by the applicant of intention to convert prior to termination of tenancy due to the conversion or proposed conversion in the time and manner provided in Government Code Section 66427.1(c).
(4) Each of the tenants of the condominium conversion project shall be given notification by the applicant in the time and manner provided in Government Code Section 66427.1(a) 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.
(5) (a) From the date of approval of the tentative subdivision map no tenant’s rent shall be increased:
(i) More frequently than once every six months and
(ii) At a rate greater than the rate of increase in the consumer price index (all items, Los Angeles-Long Beach), on an annualized basis, for the same period, unless the project is abandoned.
(b) This limitation shall not apply if rent increases are provided for in leases or contracts in existence prior to the filing date of the tentative map.
(6) The applicant shall provide moving expenses of two times the monthly rent to any tenant who relocates from the building to be converted after approval of the condominium conversion project by the city, unless the tenant has given notice of his intent to terminate his tenancy prior to receipt of notification of intention to convert from the applicant pursuant to Section 22.50.090(1).
(7) Commencing at a date not less than sixty days prior to the filing of an application for a condominium conversion tentative subdivision map with the city, the applicant shall give notice of such filing to each person applying after said date for rental of a unit in the proposed condominium. Such notice shall be given prior to the acceptance of any rent or deposit from the new tenant in the manner provided in Government Code Section 66452.8. (Ord. 770 § 1 (part), 1996; Ord. 598 § 1 (part), 1982)
22.50.110 Findings.
In addition to the precise plan approvals set forth in Chapter 23.01 and 23.90 of this code, an application for a condominium project shall be approved only if all of the following findings are made:
(1) All provisions of this chapter are met and the project will not be detrimental to the health, safety, and general welfare of the community;
(2) A tentative subdivision map has been approved for the condominium conversion project;
(3) All standards and requirements for the development of or conversion to a condominium project set forth in this chapter are met;
(4) If a residential condominium conversion, the certificate of occupancy for a building which is proposed for conversion was not issued less than five years prior to the date the applicant filed the application for conversion;
(5) If a residential condominium conversion, conversion will not displace a significant number of low and moderate income rental units from the city’s housing stock at a time when no equivalent housing is readily available in the Cerritos area;
(6) If a residential condominium conversion, that the applicant has not engaged in coercive retaliatory action regarding the tenants after the submittal of the first application for city review through the date of approval. (Ord. 598 § 1 (part), 1982)