Chapter 17.69


17.69.010    Purpose and intent.

17.69.020    Permit required.

17.69.030    Findings – Notice to tenants of existing buildings being converted to a common-interest development.

17.69.040    Tenant relocation expenses.

17.69.050    Zoning regulations consistency.

17.69.060    Structural development standards.

17.69.070    Physical element report.

17.69.080    Reservation of affordable units.

17.69.090    General plan vacancy rate requirements.

17.69.010 Purpose and intent.

This chapter is adopted to establish regulations and standards for the conversion of rental multifamily dwellings or apartments to common-interest subdivisions such as condominiums, community apartments, stock cooperatives or planned developments. The city council determines that these regulations are necessary to protect existing residents and tenants, assure that prospective purchasers will be purchasing a housing product that meets current zoning and subdivision standards and assure that creation of the right to sell units does not perpetrate nonconforming structures. This chapter is also intended to implement the provisions of the general plan relating to conversions of developments to condominiums and other common-interest developments. (Ord. 163 § 1, 1992)

17.69.020 Permit required.

No person shall create any common interest development or subdivision from an existing multifamily dwelling or apartment development unless a conversion permit has first been approved in compliance with the provisions of this chapter. Applications for conversion permits shall be processed according to the same procedures established by this title for the processing of use permits. A conversion permit may be approved by the city council only if the city council finds that the conversion is consistent with the provisions of this chapter. (Ord. 163 § 1, 1992)

17.69.030 Findings – Notice to tenants of existing buildings being converted to a common-interest development.

Before a conversion permit may be approved, and in addition to all other requirements, the city council shall find that:

A. Each of the tenants of the proposed development for conversion has been or will be given 180 days’ written notice of intention to convert prior to termination of tenancy due to the conversion or proposed conversion. The provisions of this subdivision shall not alter or abridge the rights or obligations of the parties in performance of their covenants, including but not limited to the provisions of services, payment of rent or the obligations imposed by Sections 1941, 1941.1 and 1941.2 of the Civil Code.

B. This notice shall be provided to all tenants. Each of the tenants of the proposed condominium, planned development, community apartment or stock cooperative project has been or will be given notice of an exclusive right to contract for the purchase of their respective units upon the same terms and conditions that such units will be initially offered to the general public or terms more favorable to the tenant at least 60 days before application for conversion. 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, unless the tenant gives prior written notice of his intention not to exercise the right. (Ord. 163 § 1, 1992)

17.69.040 Tenant relocation expenses.

As a requirement of a conversion permit, the permittee shall provide relocation assistance equal to one month’s rent to any residential tenant who relocates from the building to be converted after receipt from the subdivider of the notification required by this chapter, except when the tenant has given notice of his intent to vacate prior to receipt of the notification from the applicant. Relocation assistance shall be provided no later than 15 days following the applicant’s receipt of notification from the tenant of the tenant’s intent to vacate unless other arrangements are made in writing between the tenant and the applicant or permittee. (Ord. 163 § 1, 1992)

17.69.050 Zoning regulations consistency.

No conversion permit may be approved unless the city council finds that the project conforms to all current development standards and requirements of this title applicable to the type of development to which the conversion is made including, without limitation, parking requirements, setbacks, requirements for recreational facilities and other zoning standards. (Ord. 163 § 1, 1992)

17.69.060 Structural development standards.

All residential conversion projects shall comply with or be conditioned to meet the current building standards and requirements of SBMC Title 15, including but not limited to:

A. Thermal insulation;

B. Sound separations;

C. Fire prevention equipment, including without limitation fire sprinkler systems;

D. Building construction requirements;

E. Separate gas and electrical metered service for each unit; and

F. Separate water metered service for each unit, or a plan for apportioning the water costs of each subsequent unit owner shall be proposed. (Ord. 163 § 1, 1992)

17.69.070 Physical element report.

As part of the application submittal, a building evaluation report shall be submitted to the planning department. The building evaluation report shall evaluate estimated remaining useful life and replacement cost of roofs, driveways, foundation, plumbing, electrical, heating, air conditioning and other mechanical and structural systems. The report shall be prepared by a licensed mechanical or structural engineer or licensed general building contractor. (Ord. 163 § 1, 1992)

17.69.080 Reservation of affordable units.

As a requirement of approval of a permit to convert a development consisting of 10 or more dwelling units, 10 percent of the units shall be reserved in perpetuity for sale or rental to qualified very low and low-income households. As a requirement of approval of a permit to convert a development consisting of less than 10 dwelling units, the applicant shall pay a fee in an amount established by city council resolution in lieu of reserving units. For conversion of greater than 10 units, if the calculation of 10 percent of the total units results in a fraction of a unit, then the subdivider may pay only an in-lieu fee apportioned according to the fraction of a unit or reserve an additional unit. (Ord. 163 § 1, 1992)

17.69.090 General plan vacancy rate requirements.

A conversion permit shall not be approved if at the time of consideration of the permit the citywide vacancy rate/requirements of the general plan are not met. (Ord. 163 § 1, 1992)


Ordinance 185 amended Title 17 in its entirety. Section 6 of that ordinance stated that this chapter was unaffected by the amendment.