4-9-040 CONDOMINIUM CONVERSIONS:

A. PURPOSE: (Reserved)

B. AUTHORITY:

The Administrator is charged with the administration and enforcement of this Section and is authorized and directed to adopt, promulgate, amend, and rescind administrative rules consistent with the provisions of this Section and necessary to carry out the duties of the Administrator hereunder. Provide language to be incorporated into condominium conversion proposals, including but not limited to: declaration of covenants conditions and restrictions (CC&Rs), articles of incorporation, and homeowners’ association bylaws, prior to recording with King County. (Ord. 3366, 10-15-1979, eff. 10-24-1979)

C. APPLICABILITY TO CONVERSION OF RENTAL UNITS TO CONDOMINIUMS AND COOPERATIVES:

This Section shall apply to the conversion and sale of attached dwelling units that have not yet been converted to condominium or cooperative units, and to those dwelling units in converted buildings that are not subject to a binding purchase commitment.

D. APPLICABILITY TO TENANTS OCCUPYING RENTAL UNITS:

This Section shall apply to tenants and subtenants who occupy rental units in attached dwellings that are proposed to be converted into condominium units at the time the notices, offers, and disclosures provided by this Section are required to be delivered. This Section shall not apply to tenants who take possession of a unit vacated by a tenant who has received the notices and other benefits provided by this Section; provided, that developers shall disclose in writing to all tenants who take possession after service of the notice required by subsection E of this Section, that the unit has been sold or will be offered for sale as a condominium or cooperative. This disclosure shall be made prior to the execution of any written rental agreement or prior to the tenant’s taking possession, whichever occurs earlier. A developer’s failure to disclose, within the time specified above, that the unit has been sold or offered for sale shall entitle the tenant to all the protections and benefits of this Section.

E. TENANT PROTECTIONS:

1. Notice to Tenants of Filing of Conversion Declaration: Within seven (7) days of the filing of a condominium conversion declaration as provided by the Horizontal Property Regimes Act (chapter 64.32 RCW) the developer shall: (Ord. 3366, 10-15-1979)

a. Send to each tenant in the converted building, by registered or certified mail, return receipt requested, written notice of the filing. A tenant’s refusal to accept delivery shall be deemed adequate service.

b. File notice of the filing of such declaration with the City Clerk, giving the date of filing, file or recording number, office where filed, location and address of the structure and number of dwelling units contained within the structure, and the name, address and phone numbers of the owner(s), managers and persons responsible for the management of the structure.

2. Notice to All Tenants Prior to Offering Any Unit for Sale to the Public as a Condominium or Cooperative Unit: At least one hundred twenty (120) days prior to offering any rental unit or units for sale to the public as a condominium unit or cooperative unit, the developer shall deliver to each tenant in the building written notice of his intention to sell the unit or units. The notice shall specify the individual units to be sold and the sale price of each unit. This notice shall be in addition to and not in lieu of the notices required for eviction by chapters 59.12 and 59.18 RCW, and shall be delivered as provided in subsection E1a of this Section. With the notice the developer shall also deliver to the tenant a statement, in a format to be provided by the Administrator, of the tenant’s rights under this Section.

3. Purchase Rights of Tenant in Possession: With the notice provided in this subsection, the developer shall deliver to each tenant whose unit is to be offered for sale a firm offer of sale of the unit that the tenant occupies. In the event that more than one tenant occupies a single unit, the developer shall deliver the offer to all tenants jointly or separately. For one hundred twenty (120) days from the date of delivery of the offer the tenant shall have the exclusive right to purchase his or her unit on the terms offered.

4. Subtenant’s Purchase Rights: Should a tenant reject an offer of sale, the subtenant in possession at the time the notice provided in this subsection is delivered shall be offered the unit on the same terms as those offered the tenant. For thirty (30) days following that offer or until the expiration of the tenant’s one hundred twenty (120) day option period as provided in this subsection, whichever occurs later, the subtenant shall have the exclusive right to purchase the unit on the terms offered to the tenant.

5. Rights of Tenants in Converted Buildings to Purchase Other Units in the Buildings: Should both the tenant and subtenant reject the offer of sale or fail to notify of the acceptance of the offer within the time periods set forth in subsections E3 and E4 of this Section or vacate, the unit shall be made available for purchase to other tenants and subtenants in the building. The right to purchase another unit in the building by tenants and subtenants shall extend to the end of the one hundred twenty (120) day notice period provided the tenant is in possession of that unit under subsection E3 of this Section. Whenever all tenants and subtenants in a building have indicated in writing their intention not to purchase a unit or the one hundred twenty (120) day notice period has expired and that unit is or becomes vacant then the developer may offer for sale and sell the unit to the public.

6. No Subsequent Sale on Better Terms: For a period of one year following the date of the offers provided in subsections E3, E4 and E5 of this Section, no offer shall be extended by the developer on terms more favorable in any respect than the offer previously extended to the tenant and/or subtenant unless the more favorable offer is first extended to the tenant and/or subtenant as required by subsections E3, E4 and E5 for a period of not less than thirty (30) days.

7. Evictions Only for Good Cause During Notice Period: No condominium or cooperative unit shall be sold or offered for public sale if, in the one hundred twenty (120) day period immediately preceding the sale or offer for public sale, any tenant has been evicted without good cause. For the purposes of this Section “good cause” shall mean:

a. Failure to pay rent after service of a three (3) day notice to pay rent or vacate as provided in RCW 59.12.030(3);

b. Failure to comply with a term or terms of the tenancy after service of a ten (10) day notice to comply or vacate as provided in RCW 59.12.030(4); and

c. The commission or permission of a waste or the maintenance of a nuisance on the premises and failure to vacate after service of a three (3) day notice as provided in RCW 59.12.030(5).

8. Tenant’s Right to Vacate: Tenants who receive one hundred twenty (120) day notices of sale may terminate their tenancies at any time during such period in the manner provided by RCW 59.18.200 and 59.18.220, but will forfeit all rights to purchase a unit.

F. CONSUMER PROTECTIONS:

1. Mandatory Housing Code Inspection and Repair – Notice to Buyers and Tenants: Prior to delivery of the one-hundred-twenty (120) day notice described in subsection E2 of this Section, developers shall, at their expense, request an inspection of the entire building by the Building Official and Fire Marshal for compliance with applicable building and fire codes. The inspection shall be completed within forty five (45) days of a developer’s request unless the developer fails to provide or refuses access to Building and/or Fire personnel. The developer shall be required to install an approved fire alarm and smoke detector system in accordance with chapter 4-5 RMC. The installation of the fire alarm system and all violations of the International Building Code (IBC) revealed by the inspection must be completed and corrected at least seven (7) days prior to the closing of the sale of the first unit or by the compliance date on the inspection report, whichever is sooner. A follow-up inspection for compliance shall be completed within seven (7) days of the developer’s request. A copy of the building inspection report and certification of repairs shall be provided by the developer to each prospective purchaser at least three (3) days before the signing of an earnest money agreement or other binding purchase commitment. Copies of the inspection report shall be delivered to tenants in the converted building by the developer with the notice of sale as provided in subsection E2 of this Section. An inspection fee as stipulated in the City of Renton Fee Schedule shall be paid by the developer whenever an inspection is requested as required herein.

2. Certification of Repairs: For the protection of the general public, the Building Official shall inspect the repairs of defective conditions identified in the inspection report and certify that the violations have been corrected. The certification shall state that only those defects discovered by the International Building Code inspection and listed on the inspection report have been corrected and that the certification does not guarantee that all Code violations have been corrected. Prior to the acceptance of any offer, the developer shall deliver a copy of the certificate to the purchaser. No developer, however, shall use the Building Official’s certification in any advertising for the purpose of inducing a person to purchase a condominium or cooperative unit.

3. Disclosure Requirements: In addition to the disclosures required by previous sections, the developer shall make available at a place on the premises convenient to the tenants during normal working hours the following information to prospective purchasers at least three (3) days before any purchase commitment is signed, or, in the case of existing tenants, with the one hundred twenty (120) day notice provided in subsection E2 of this Section:

a. Copies of all documents filed with any governmental agency pursuant to the Horizontal Property Regimes Act (chapter 64.32 RCW); and

b. An itemization of the specific repairs and improvements made to the entire building during the six (6) months immediately preceding the offer for sale; and

c. An itemization of the repairs and improvements to be completed before close of sale; and

d. A statement of the services and expenses which are being paid for by the developer but which will in the future be terminated, or transferred to the purchaser, or transferred to the owners’ association; and

e. An accurate estimate of the useful life of the building’s major components and mechanical systems (foundation, exterior walls, exterior wall coverings other than paint or similar protective coating, exterior stairs, floors and floor supports, carpeting in common areas, roof cover, chimneys, plumbing system, heating system, water heating appliances, mechanical ventilation system, and elevator equipment) and an estimate of the cost of repairing any component whose useful life will terminate in less than five (5) years from the date of this disclosure. For each system and component whose expected life cannot be accurately estimated, the developer shall provide a detailed description of its present condition and an explanation of why no estimate is possible. In addition, the developer shall provide an itemized statement in budget form of the monthly costs of owning the unit that the purchaser intends to buy. The itemization shall include but shall not be limited to:

i. Payments on purchase load;

ii. Taxes;

iii. Insurance;

iv. Utilities (which shall be listed individually);

v. Homeowner’s assessments;

vi. The projected monthly assessment needed for replacing building components and systems whose life expectancy is less than five (5) years; and

vii. A statement of the budget assumptions concerning occupancy and inflation factors.

4. Warranty of Repairs – Set Aside for Repairs: Each developer shall warrant for one year from the date of completion all improvements and repairs disclosed pursuant to subsection E3 of this Section.

5. Unlawful Representations: It shall be unlawful for any developer, agent or person to make or cause to be made in any disclosure or other document required by this Section any statement or representation that is knowingly false or misleading. It shall also be unlawful for any developer, agent or other person to make, or cause to be made, to any prospective purchaser, including a tenant, any oral representation which differs from the statements made in the disclosures and other documents required to be provided tenants and purchasers by this Section.

6. Purchaser’s Right to Rescind: Any purchaser who does not receive the notices, disclosures and documents required by this Section may, at any time prior to closing of the sale, rescind, in writing, any binding purchase agreement without any liability on the purchaser’s part and the purchaser shall thereupon be entitled to the return of any deposits made on account of this agreement.

7. Delivery of Notice and Other Documents: Unless otherwise provided, all notices, contracts, disclosures, documents and other writings required by this Section shall be delivered by registered or certified mail, return receipt requested. The refusal of registered or certified mail by the addressee shall be considered adequate delivery. All documents shall be delivered to tenants at the address specified on the lease or rental agreement between the tenant and the developer or landlord. If there is no written lease or rental agreement then documents shall be delivered to the tenants’ address at the converted building or the last known address of the tenant, if other than the address at the converted building. In any sublet unit all documents shall be delivered to the tenant at his current address, if known, and to the subtenant in possession. If the tenant’s current address is unknown, then two (2) copies of all documents shall be delivered to the subtenant, one addressed to the tenant and the other addressed to the subtenant. Delivery of the one hundred twenty (120) day notice of intention to sell required by subsection E2 of this Section, the developer’s offer to sell, and all disclosure documents shall be delivered to the tenants in a converted building at a meeting between the developer and the tenants. The meeting shall be arranged by the developer at a time and place convenient to the tenants. At the meeting the developer shall discuss with the tenants the effect that the conversion will have upon the tenants. Should any tenant refuse to acknowledge acceptance of the notice, offer and disclosures, the developer shall deliver the documents in the manner prescribed in this subsection.

8. Acceptance of Offers: Acceptance by tenants or other beneficiaries of offers provided pursuant to this Section shall be in writing and delivered to the developer by registered or certified mail, return receipt requested, postmarked on or before the expiration date of the offer.

G. COMPLAINTS:

Any person subjected to any unlawful practice as set forth in this Section may file a complaint in writing with the Department. The Development Services Division is hereby authorized and directed to receive complaints and conduct such investigations as are deemed necessary. Whenever it is determined that there has been a violation of this Section, the Development Services Division is authorized to send written notice of said violation to the person responsible for the violation. If, within ten (10) days of said notice, the responsible person makes written request for reconciliation, the applicable department director is authorized to attempt to conciliate the matter by conference or otherwise and secure a written conciliation agreement.

H. (Reserved)

(Ord. 3366, 10-15-1979)

I. VIOLATIONS OF THIS CHAPTER AND PENALTIES:

Unless otherwise specified, violations of this Section are misdemeanors subject to RMC 1-3-1. (Ord. 4351, 5-4-1992; Ord. 5159, 10-17-2005; Ord. 6097, 12-5-2022)