Chapter 9-87
RESIDENTIAL CONDOMINIUM CONVERSIONS
Sections:
9-87.030 General requirements.
9-87.050 Additional standards for condominium conversions.
9-87.060 Conditional use permit application requirements.
9-87.070 Site and building review.
9-87.090 Tenant purchase option.
9-87.110 Conditions, covenants and restrictions.
9-87.130 Modification or waiver of conversion standards.
9-87.140 Public hearing required.
9-87.010 Purpose and intent.
A. Purpose. The purpose and intent of this chapter is to:
1. Prescribe reasonable standards and criteria, regulating the conversion of apartment housing units to residential condominiums, to ensure the upgrading of a multi-family project from a planning and building safety perspective, and to determine when such conversions are appropriate; and
2. To maintain an adequate supply of housing for all income levels within the city in accordance with the housing element and to mitigate hardships to eligible tenants caused by their displacement. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.020 Definitions.
In addition to terms defined in this code, for purposes of this chapter, the following terms shall have the meanings indicated:
“Affordable housing cost” means the cost to purchase a residential condominium for a very low, low income or moderate income household, as determined in accordance with Health and Safety Code Section 50052.5 subsections (b) and (c) and Title 25 of the California Code of Regulations.
“Affordable unit” means a residential condominium unit that is to be sold to an eligible tenant as approved by the City Council pursuant to Section 9-87.080.
“Code” means the City of Laguna Hills Municipal Code.
“Condominium” means any “common interest development,” including a “condominium project,” “a community apartment project,” “a planned development,” and “a stock cooperative,” as those terms are defined in Section 1351 of the California Civil Code.
“Condominium conversion project” means a project to divide an entire parcel of existing apartment housing units into condominiums and to create separate ownership of the units therein with a separate interest in the space within all structures thereon.
“Eligible tenant” means:
1. Tenants who have had a valid lease for a minimum of one year prior to the filing of an application for a condominium conversion project in a unit that is proposed to be converted in connection with a condominium conversion project; and
2. Tenants that qualify as very low, low and moderate-income households.
“Subdivision Map Act” means those provisions set forth in Government Code Section 66410 et seq., as amended or superseded.
“Unit” means the particular area of land or airspace that is designed, intended or used for exclusive possession or control of individual owners or occupiers.
“Very low, lower and moderate income households” means households whose gross incomes do not exceed the qualifying very low, low and moderate income limits established in Section 6932 of Title 25 of the California Code of Regulations, and amended periodically based on the U.S. Department of Housing and Urban Development (HUD) estimate of median income in the Orange County, California Primary Metropolitan Statistical Area, and as adjusted by the State Department of Housing and Community Development (HCD) (“area median income”). Pursuant to Sections 6926, 6928, and 6930 of Title 25 of the California Code of Regulations, these income limits are equivalent to the following:
1. Very low-income households: fifty (50) percent of the area median income, adjusted for household size appropriate to the unit and other factors by HUD.
2. Low-income households: eighty (80) percent of area median income adjusted for household size appropriate for the unit and other factors by HUD.
3. Moderate-income households: One hundred twenty (120) percent of the area median income adjusted for household size appropriate for the unit and other factors by HUD. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.030 General requirements.
A. Where Permitted. Condominium conversion projects may be allowed in any district, including specific plan areas, in which residential uses are permitted subject to the approval of a conditional use permit.
B. Review Responsibilities. The Department of Community Development shall review all condominium conversion project applications and make a recommendation to the City Council. The City Council is the final decision making body for condominium conversion projects.
C. Map Requirements. Unless exempt pursuant to Section 9-87.040, a tentative and final tract map shall be required for all condominium conversion projects creating two or more condominiums as defined in Section 783 of the California Civil Code, a community apartment project containing two or more parcels, or for the conversion of a dwelling to a stock cooperative containing two or more dwelling units.
D. Applicable Standards. Condominium conversion projects shall conform to:
1. The standards and requirements of this chapter;
2. The applicable zoning district standards and requirements;
3. Applicable code standards and requirements, including parking; and
4. The requirements and standards of Subdivision Map Act and Chapter 9-86 and Section 9-87.050. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.040 Exemptions.
A. Existing Condominium Tract Map and Department of Real Estate Approval. A condominium conversion project with a recorded final condominium tract map and approval of the California Department of Real Estate, prior to January 1, 2005, to sell condominiums shall be exempt from the provisions of this chapter, but shall not be exempt from the provisions of the code. For a condominium conversion project with a final condominium tract maps, recorded prior to January 1, 2005, but which does not have Department of Real Estate approval prior to that date, the conversion of existing apartment housing units to a condominium project shall be exempt from the affordable housing requirements of Section 9-87.080 provided that:
1. No additional housing units are established;
2. No expansion or enlargement of any residential unit is undertaken;
3. No additional expansion is provided on site, which would reduce usable open space;
4. All development standards are complied with.
B. Park Fees. The conversion of apartment housing units to residential condominiums shall be exempt from the requirements of parkland dedication or payment of parkland in-lieu fees if, on the date of the City Council approval of a tentative tract map for a condominium conversion project, the apartment housing units are at least five years of age and the conversion creates no additional dwelling units. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.050 Additional standards for condominium conversions.
In addition to the standards identified in Section 9-87.030(D), condominium conversion projects shall comply with the following additional standards and requirements:
A. Building and Safety Codes. All proposed condominium conversions shall comply with current, city-adopted Building and Safety Code standards.
B. Utilities. Each condominium unit shall have a separate connection and/or meter for gas service, water service, electrical service, sewer service, cable service and telephone service. Each building sewer lateral shall be retrofitted/fitted with a cleanout in compliance with the California Plumbing Code. If this provision places an unreasonable economic burden on the applicant, the City Council may approve an alternative or waive the requirement.
C. Trash and Recycling. Where individual trash and recycling pick-up is not provided, common trash and recycling storage shall be provided within a totally walled and roofed structure with a roof not exceeding twelve (12) feet in height. Condominium units should be located within two hundred (200) feet of a pick-up area.
D. Water Quality. The project shall comply with Chapter 5-36.
1. NPDES. The project shall implement best management practices as determined by the City Engineer.
2. Car Wash. A dedicated area for car washing shall be provided. The area shall be covered and drainage of the area shall be connected to the sanitary sewer system or acceptable alternative as determined by the City Building Official. A water line hook-up shall be installed to provide water for car washing.
E. Laundry Facilities. Individual laundry facilities shall be provided in each unit.
F. Surveying. Permanent lot stakes and tags shall be installed at all lot corners by a licensed land surveyor or civil engineer, unless otherwise required by the City Engineer.
G. Deposits. All cleaning, key and security deposits shall be refunded to each tenant upon vacating the unit, in accordance with applicable state law. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.060 Conditional use permit application requirements.
Recognizing that the conversion of existing structures which have been previously occupied and constructed as rental units presents unique problems to present tenants and future buyers, the applicant for a conditional use permit for a condominium conversion project shall comply with the following application requirements, in addition to the application requirements of Chapter 9-92, prior to the application being deemed complete:
A. Property and Building History Report. A property and building history report shall be prepared by a California-licensed structural or civil engineer, which shall describe the condition and estimated remaining useful life of each of the following elements of each structure situated within the project proposed for conversion: roofs, foundations, interior and exterior walls, exterior paint, insulation, paved surfaces, mechanical systems, electrical systems, plumbing systems, sewage systems, sprinkler systems for landscaping, utility delivery systems, central or community heating and air conditioning systems, fire protection systems including any automatic sprinkler systems, alarm systems, standpipe systems, structural elements, drainage systems, condition of refuse disposal facilities, swimming pools, saunas, gyms and recreation rooms, tennis courts, fountains, hardscape, fireplaces and exterior lighting. In addition, the date(s) of construction of all elements of the project and permit history shall be provided.
B. Pest Inspection Report. A report by a California-licensed structural termite and pest control specialist certifying whether or not all attached and detached structures are free of infestation and structural damage caused by pests and dry rot.
C. Site and Building Inspection Request. The applicant shall request a special inspection from the Building Department pursuant to Section 9-87.070(A).
D. Plans. Detailed plot plans and elevations, fully scaled and dimensioned, indicating the type and location of all buildings and structures, parking spaces, landscape and irrigation areas, and signs. Provide an off street parking space assignment and signing plan for residents and guests. Other plans and data may be required as deemed necessary by the Community Development Director and/or City Engineer.
E. Rental History Report. A rental history report detailing the size, in square footage, of the building or buildings and each unit; the current or last rental rate; the name and address of each present tenant; and the average monthly vacancy over the preceding three years.
F. Financing Plan. A plan showing the types of sales financing programs to be made available, including any incentive programs for existing tenants and eligible tenants.
G. Developer Relocation Plan. A relocation plan, which identifies the steps the developer will take to ensure the successful relocation of each eligible tenant in the event that the conversion takes place. The relocation plan shall also state what specific financial or other relocation assistance existing eligible tenants will be given, including the cost of physical moving, first and last months rent, security and cleaning deposits, phone connection and utility deposits. Particular consideration shall be give to senior citizens, disabled persons, families with children, and other tenants who may encounter difficulty in finding a new residence.
H. Eligible Tenant Report. The applicant shall prepare and submit a report (to the satisfaction of the Community Development Director), which identifies very low, low and moderate income households residing in units that are proposed to be converted in connection with a condominium conversion project and whether any are receiving federal or state rent subsidies. At a minimum the report shall provide an accounting of every unit, including: household size, household income, length of tenancy, identification of physically handicapped or special need tenants, senior citizens, vacant units, and length of vacancy.
I. Mailing List. A complete mailing list of all tenants occupying the subject property and two corresponding sets of stamped addressed envelopes.
J. Fire Inspection Report. At the applicant’s expense, the Orange County Fire Authority shall inspect the property to determine the sufficiency of fire protection systems serving the property and report on any deficiencies.
K. Tenant Notification. Submit evidence of tenant notification, consistent with Section 9-87.100. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.070 Site and building review.
In addition to the review outlined by all relevant sections of the code, the following review shall take place:
A. Site and Building Inspection. Prior to a condominium conversion application being deemed complete, and at the applicant’s expense, the applicant shall request that the Building Official conduct a detailed site and building inspection for the purpose of verifying the information provided in the property report pursuant to Section 9-87.060(A).
B. Building Official Report. After conducting the site and building inspection, the Building Official shall identify site and building conditions that do not comply with applicable building and housing codes or are hazardous to the life, health or safety of any occupant of the units within the project or the general public. The applicant shall submit plans, obtain building permits, and correct any such conditions, and submit a report describing the actions taken to correct the conditions. All such conditions shall be corrected to the satisfaction of the Building Official prior to occupancy of the converted units.
C. Inspection and Review Fee. An appropriate fee to cover the Building Official’s cost to review the property and building report, any subsequent reports prepared pursuant to subsection A of this section, and to conduct the inspection shall be collected. The inspection and review fee shall be based on the city’s hourly rate at the time of submittal and shall be established by resolution of the City Council, based on an estimate of the city’s cost of inspecting the site, reviewing the property report, identifying deficiencies, and verifying corrections. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.080 Affordable housing.
In addition to the other provisions of this chapter regarding condominium conversion projects and to ensure consistency with the city’s housing element, the City Council shall, in connection with approval of the conditional use permit:
A. Require the applicant to sell a specified number of residential condominiums to very low, low, or moderate-income households at an affordable housing cost, to the extent that the apartment housing units contain eligible tenants. The specified number shall be at least equal to the number of units with eligible tenants.
B. Require the applicant to pay for all costs associated with testing and qualifying eligible tenants for the initial purchase of the affordable units.
C. Require the applicant to enter into a written agreement with the city to ensure that all affordable units be sold with an affordability covenant that restricts the affordable housing cost, consistent with whether the sale is to very low, low, or moderate income households. Such covenants shall remain in effect for a minimum of five years and a maximum of forty-five (45) years. Such covenants shall be prepared by the City Attorney with reimbursement of costs by developer at the time of sale and shall be recorded superior to all liens.
D. The City Council may impose additional conditions and requirements as may be reasonable and appropriate. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.090 Tenant purchase option.
The property owner shall provide tenants of the condominium conversion project with notice of an exclusive right to purchase his or her respective unit upon the same terms and conditions that such unit will be initially offered to the general public or terms more favorable to the tenant. Such right shall run for a period of not less than ninety (90) days from the date of issuance of the subdivision public report pursuant to Section 11018.2 of the Business and Professions Code, unless the tenant gives prior written notice of his or her intention not to exercise the right. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.100 Tenant notification.
Applicants for condominium conversion projects shall be responsible for notifying existing and prospective rental tenants as follows:
A. Existing Tenants. Applicant shall give notice to tenants residing in the apartment housing units proposed to be converted of the applicant’s intent to file an application for a tentative map for condominium conversion project at least sixty (60) days prior to the initial filing of the application. Notice shall be in the form set forth in Section 66452.9 of the Subdivision Map Act. If the condominium conversion project is approved, the applicant shall give all tenants a minimum of one hundred eighty (180) days’ advance written notice of the termination of their tenancy.
B. Prospective Tenants. Commencing at a date not less than sixty (60) days prior to filing of a tentative map, the applicant shall give notice to each person applying to rent or lease a unit proposed to be converted of the applicant’s submittal of an application for a condominium conversion project prior to the applicant’s acceptance of any rent or deposit from the prospective tenant. Notice shall be given in the form set forth in Section 66452.8 of the Subdivision Map Act. Failure of an applicant to provide such notice shall not be grounds to deny the application but shall make the applicant subject to the penalties specified in Section 66452.8 of the Subdivision Map Act.
C. Evidence of Tenant Notification. Applicant shall submit to the City, evidence in writing, certified under penalty of perjury, showing that the notification requirements specified in subsections A and B of this section have been satisfied. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.110 Conditions, covenants and restrictions.
A declaration of the conditions, covenants and restrictions, which would be applied to all owners of condominium units within the project, shall be submitted to the Community Development Director prior to approval of a final map for a condominium conversion project. For final condominium tract maps recorded before the effective date of Chapter 9-87, the declaration shall be submitted prior to the occupancy of the first unit. The declaration shall include, but not be limited to: the assignment of parking spaces and location of trash/recycling areas; a covenant for common area maintenance, including an operations and maintenance plan for funding and maintaining water quality best management practices; and the formation of a non-profit corporation to manage the project. The declaration shall be approved as to form by the City Attorney and recorded in the office of the County Recorder. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.120 Findings.
In addition to the conditional use permit findings required by Section 9-92.080(C), the City Council shall not approve a conditional use permit for a condominium conversion unless it finds:
A. That the proposed conversion will not displace a significant percentage of very low, low or moderate income households or delete a significant number of very low, low and moderate-income rental units from the city’s housing stock at a time when equivalent housing is not readily available in the city.
B. That the applicant complied with all tenant notification responsibilities, as required by Section 66427.1 of the Subdivision Map Act. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.130 Modification or waiver of conversion standards.
The City Council may modify or waive a requirement of the code standards, if it finds that the modification or waiver will not be materially detrimental to the proposed residents of the property or to residents of surrounding properties, or to public health or safety and, if the modification and waiver helps to implement the goals of the housing element. (Ord. 2005-2 § 2 (Exh. A (part)))
9-87.140 Public hearing required.
A. The City Council shall hold at least one public hearing on each application for a condominium conversion. The hearing shall be set and a notice given pursuant to state law.
B. The City Council may impose additional conditions on a tentative map or conditional use permit approval including, but not limited to:
1. Requiring special yards, open spaces, buffers, fences and walls;
2. Requiring installation and maintenance of landscaping;
3. Requiring street dedications and improvements;
4. Regulation of points of vehicular ingress and egress;
5. Regulation of traffic circulation;
6. Regulation of signs; type of construction and methods of operation;
7. Control of potential nuisances;
8. Prescribing standards for maintenance of buildings and grounds;
9. Prescription of development schedules and development standards and such other conditions as the Community Development Director may deem necessary to ensure compatibility of the use with surrounding developments and uses to preserve the public health, safety and welfare. (Ord. 2005-2 § 2 (Exh. A (part)))