The intent and purposes of this article are as follows:

   (A)   To establish requirements and procedures for the review of the conversion of existing multiple-family rental housing to residential condominiums;

   (B)   To establish criteria for conversions by requiring conformance with the Building Code as adopted by the City Code and other standards established by this article;

   (C)   To ensure adequate amenities are provided;

   (D)   To provide for meeting the goals and objectives of the General Plan;

   (E)   To provide a desirable balance of rental and ownership housing within the city and a variety of individual choices of housing type, price, and location;

   (F)   To ensure the conversion of rental units to cooperative/condominiums does not result in the displacement of significant numbers of low and moderate income households, and that the mitigation of such displacement is provided by the applicant and consistent with the policies set forth in the General Plan;

   (G)   To ensure converted housing and development sites achieve the same high quality appearance and safety required of newly constructed condominiums these projects shall be consistent with surrounding neighborhoods, all applicable city codes and ordinances, and the policies set forth in the General Plan; and

   (H)   To provide notice of the conversion to existing tenants and give priority for the purchase of converted units to existing tenants as required by state laws.

(Ord. 1070-C-S, passed 6-13-06)

   In addition to the requirements and procedures as set forth by this chapter, the State Subdivision Map Act, State Planning and Zoning Law, and the provisions of this article shall apply to the conversion of all residential condominiums and stock cooperatives, including the conversion of existing multiple-family rental units, to condominiums, community apartments, row houses, townhouses, and stock cooperatives. The State of California statutory references in this article shall also apply to successor legislation or the same of differing section numbers.

(Ord. 1070-C-S, passed 6-13-06)

   Recognizing the conversion of existing structures which have been previously occupied and constructed as rental units presents unique challenges to present tenants and future buyers, all residential condominium conversion applications shall be subject to the approval of a use permit and tentative and/or parcel map by the Planning Commission and City Council. The exterior improvements to the site and buildings shall be subject to the approval of the Design Review Board prior to the use permit coming before the City Council. The application for a use permit for a condominium conversion project shall include all materials and information required by this article.

(Ord. 1070-C-S, passed 6-13-06)

   (A)   The request for density bonuses or alternatively "other incentives of equivalent financial value" in association with the conversion of rental units to condominium units shall be in conformance with the applicable and mandated provisions of Cal. Gov't Code, Planning and Zoning Law Chapter 4.3: Density Bonuses and Other Incentives. The city shall retain the discretion whether to implement any optional or discretionary provisions of Cal. Gov't Code, Planning and Zoning Law Chapter 4.3: Density Bonuses and Other Incentives.

   (B)   The approval process for density bonuses outlined in this chapter shall apply to condominium density bonuses. A preliminary application request for density bonus for additional units or for "other incentives of equivalent financial value" shall be subject to the approval of the Planning Commission and City Council. The procedures for implementing the density bonus through a density bonus agreement as outlined in this chapter shall apply to condominium density bonuses.

(Ord. 1070-C-S, passed 6-13-06)

   All condominium projects shall comply with all existing and current zoning and subdivision requirements. If a variance has been previously granted, the Council may terminate such variance if it finds that the continuance of the variance would be inconsistent with the purposes of this article.

   (A)   The following development standards shall apply to all applications for a use permit for condominium conversion:

      (1)   Parking. The required parking for multi-family residential shall be applicable for all conversion projects.

      (2)   Utilities.

         (a)   Gas. Each condominium unit shall have a separate gas service and meter where gas is a necessary utility.

         (b)   Electricity. Each condominium unit shall have a separate electrical service, with separate meters and disconnects, and shall meet all current and applicable electrical energy codes as adopted by the City Code.

         (c)   Water. Each condominium unit shall have a separate water service and meter.

         (d)   Separate hot water heaters for each unit.

         (e)   All existing and proposed overhead utility lines shall be placed underground.

      (3)   Fire prevention.

         (a)   Smoke detectors. Each living unit shall be provided with approved smoke detectors conforming to and mounted per the latest California and International Building Code standards as adopted by the City Code.

         (b)   Maintenance of fire protection systems. All fire hydrants, fire alarm systems, portable fire extinguishers and other fire protective appliances shall be retained in an operable condition at all times. Fire Department approval shall be required prior to the issuance of a certificate of occupancy.

      (4)   Sound transmission.

         (a)   Shock mounting of mechanical equipment. All permanent mechanical equipment, such as motors, compressors, pumps and compactors, which is determined by the Building Official to be a source of structural vibration or structure-borne noise shall be shock mounted with inertia blocks or bases and/or vibration isolators in a manner approved by the Building Official.

         (b)   Noise standards. That the applicant shall renovate as necessary all units to be in conformance with interior and exterior sound transmission noise insulation pursuant to the Housing Code standards of the California Administrative Code and the California and International Building Code as adopted by the City Code and shall with the construction plan submittal, provide to the Building Division a certified statement signed by a licensed acoustical engineer documenting that conformance. In such cases where present standards cannot reasonably be met, the standard may be modified by the City Council, and it may require the applicant to notify potential buyers of the noise deficiency currently existing within these units.

      (5)   Laundry facilities. 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 for each five units or fraction thereof.

      (6)   Landscape and irrigation maintenance. All landscaping and irrigation systems shall be restored as necessary and maintained to achieve a high degree of appearance and quality as determined by the city. Water conservation measures shall be utilized to the maximum extent feasible.

      (7)   Condition of equipment and appliances.

         (a)   The applicant shall list each built-in appliance contained within each unit, the age of that appliance, and whether the appliance is to be replaced with new appliances prior to when the unit is first offered for sale. The applicant shall replace any appliances found to be 10 years old or older with new energy saving appliances.

         (b)   The developer shall provide written certification to the buyer of each unit at the close of escrow that any dishwashers, garbage disposals, stoves, hot water heaters, heating ventilation air conditioning (HVAC) systems, and all other appliances, systems and components that are provided are in operable working condition as of the close of escrow. There shall be a minimum five year warranty period provided for all fixed in place appliances.

         (c)   At such time as the Homeowners' Association takes over management of the development, the developer shall provide written certification to the association that any pool and pool equipment (filter, pumps, chlorinator) and any appliances and mechanical equipment to be owned in common by the association is in operable working condition. Additionally, the developer shall provide, free of charge, to the Homeowners' Association, a one-year warranty for repair and replacement on all new and used mechanical equipment held in common. If the property report determines that there is less than five years life of the equipment to be held in common, it shall be replaced.

      (8)   Refurbishing and restoration.

         (a)   All main buildings, accessory buildings, structures, fences, patio enclosures, recreational areas and structures, carports, sidewalks, driveways, landscaped areas, irrigation systems and additional elements of the existing development shall be refurbished and restored as necessary to achieve a high degree of appearance, quality and safety as determined by the Community Development Director.

         (b)   Any item shown in the physical elements report, as described below, as requiring replacement, or to have a useful projected life of less than five years shall be replaced.

         (c)   Roof and building exterior repairs shall be sufficient to ensure a maintenance free period of at least ten years.

      (9)   Energy efficiency.

         (a)   Those features which are being replaced shall be replaced with energy efficient materials, equipment, and parts.

         (b)   The applicant shall replace all single pane windows and sliding doors with energy efficient double pane windows, doors, materials, and parts.

      (10)   Drainage. Drainage shall be corrected as necessary, at the applicant's expense, in order to comply with the applicable grading standards currently in effect. Compliance with Title 6, Chapter 9: Storm Water Management and Discharge Control of this code and NPDES C-3 provisions shall also be demonstrated.

      (11)   Street improvements.

         (a)   The applicant shall improve or post a cash bond or other form of security satisfactory to the City Attorney, with the city guaranteeing the installation of the improvements to city standards of substandard or deficient street improvements fronting this property within the public right-of-way to the satisfaction of the City Engineer in accordance with current policy. These improvements may include, but shall not be limited to, curbs, gutters, sidewalks, ramps, driveways, drainage devices, trees and tree wells and streetlights.

         (b)   The width of the public rights-of-way and roadway of the street(s) abutting the property shall conform to the minimum city standards.

      (12)   Sewer. If the apartment proposed for condominium conversion has not paid a sanitary sewer line charge as required by this code, it shall pay a charge equal to the amount of a multi-family connection rate applicable to condominiums times the number of units in the condominium prior to the submittal of the final map.

      (13)   Americans with Disabilities Act. The applicant shall upgrade the buildings and site to conform to the current applicable California Title 24 Accessibility Standards, to the satisfaction of the Chief Building Official.

(Ord. 1070-C-S, passed 6-13-06)

   (A)   After reviewing the property report required pursuant to this article and after inspecting the structures within the project when deemed necessary, the Chief Building Official shall identify and make available to the Planning Commission at the time of the use permit hearing all items evidenced by such reports or inspection to be in noncompliance with applicable building and housing codes as adopted by the City Code or to be hazardous to the life, health or safety of any occupant of the units within the project or the general public. In addition, a report shall be prepared depicting conformance with the present California and International Building Codes as adopted by the City Code.

   (B)   Prior to the approval of the final map or condominium map, whichever is first, all such items shall be corrected to conform with current building code as adopted by the City Code to the satisfaction of the Chief Building Official. An appropriate fee to cover the cost of the review and inspection by the Building Division may be collected.

   (C)   Prior to the approval of the final map or condominium map, whichever is first, all physical improvements to the building interiors and exteriors, and on-site and off-site improvements, as required by the provisions of the article and the conditions placed on an application shall be completed, or as otherwise directed by the City Council.

(Ord. 1070-C-S, passed 6-13-06)

   A condominium conversion proposal which does not comply with all of the development standards specified in this article must obtain approval of a variance for any noncompliant standards.

(Ord. 1070-C-S, passed 6-13-06)

   (A)   For those applications that are accepted, the applicant shall provide the city with an application for a use permit and tentative map that shall include, but not be limited to, the following groups of information necessary to evaluate the proposed conversion:

      (1)   A tentative tract or parcel map;

      (2)   A site development plan in conformance with the applicable provisions of the city's Zoning Code;

      (3)   Tenant information in conformance with this article;

      (4)   An affidavit attesting to the accuracy of all submitted material;

      (5)   Documents adequate to describe and assess the prior two years history of tenancy.

   (B)   In addition to the items specified above, the applicant of a condominium conversion project shall submit the following additional items with the application:

      (1)   Physical elements report. A report on the physical elements of all structures and facilities shall be submitted with the use permit application for the conversion to condominium. The report shall include, but not be limited to, the following:

         (a)   Property report written and certified by a state licensed contractor in the appropriate field describing the structural condition of all elements of the property and estimating the remaining useful life of each of the following elements for each structure situated in the conversion project: roofs, foundations, exterior paint, all paved surfaces, mechanical systems, electrical systems, plumbing systems, sewage systems, sprinkler systems for landscaping, central or community air-conditioning and heating, structural elements, drainage systems, and balconies. The report shall identify any defective or unsafe elements and set forth the proposed corrective measures to be employed;

         (b)   Sound transmission report. The report shall state the Sound Transmission Class and Sound Impact Class of the existing floor-to-ceiling and wall-to-wall assemblies of sample units. The report shall be prepared by an acoustical engineer and shall include a detailed description, including cost estimates of the measures necessary, if any, to improve sound attenuation between units pursuant to this stipulation of this chapter;

         (c)   A pest report by a state licensed structural pest control inspector approved by the city, on each structure, including all accessory structures, and each unit within the structure;

         (d)   Building history report stating the date of the construction of all elements of the project; when said element was replaced; the approximate date upon which said element will require replacement; the cost of replacing said element; and any variation of the physical condition of said element from the current zoning and city building code in effect on the date that the last building permit was issued for the subject structure; and

         (e)   A report on any known soil and geological conditions regarding soil deposits, rock

formations, faults, ground-water and landslides in the vicinity of the project and a statement regarding any known evidence of soils problems relating to the structures. Reference shall be made to any previous soils reports for the site and a copy submitted with said report.

      (2)   A rental history report shall contain the rents charged for each type of unit in the project of the three years preceding the application and the average vacancy rate in the project for the three years prior to the application for the project.

      (3)   Rental availability report stating the vacancy rate for similar rental units or developments within the city at the time of the application. The need for such a report may be waived by the Community Development Director if the city has completed or received a similar rental availability report within the six months preceding the application. The firm producing the rental availability report shall be approved in advance by the Community Development Department, and said firm shall include such vacancy reports as within the scope of their normally offered services. The report shall include the source and date of all provided information. Vacancy rate shall be determined by dividing the sum of comparable vacant units by the sum total of all similar vacant units. Age, complex size, unit size, and amenities shall be considered when determining similar rental units. The city shall commission the report and all costs associated with producing the report shall be borne by the applicant

      (4)   Affordable housing analysis. The applicant shall provide an analysis documenting the level of affordability of the existing rental units, and the proposed affordability level of the proposed individual ownership units.

      (5)   An improvement report listing all of the proposed interior and exterior structure, landscaping, structural, security and other improvements to the complex to correct deficiencies identified in the submitted reports and to refurbish, restore or upgrade the project to achieve a high degree of appearance and safety. The detailed description of any additional amenities shall be included in this report. The firm producing the improvement report shall be approved in advance by the Community Development Department, and said firm shall include such reports as within the scope of their normally offered services. The report shall include a construction-phasing plan addressing pedestrian access, lighting and site conditions for occupied buildings during construction or repair; work schedule indicating hours of construction, type of equipment and proposed noise control and list of units uninhabitable during and due to the proposed construction. The phasing plan shall provide detailed information on methods the applicant shall employ to minimize the adverse impacts of construction to the existing tenants, particularly in terms of noise and tenant safety, to the satisfaction of the Community Development Director and the Chief Building Official.

      (6)   Improvement plans and details for all exterior site and building improvements that satisfy the Design Review Board application requirements to the satisfaction of the Community Development Director. The plans submitted for the proposed improvements to the site and/or building shall be produced, sealed and signed by a licensed professional in the respective field (i.e. architect, landscape architect, civil engineer, etc.) as deemed acceptable by the Director of Community Development.

      (7)   Covenants, codes & restrictions (CC&R's). The developer shall submit, prior to filing the final subdivision or parcel map, to the Directors of Community Development and Public Works, the City Engineer and the City Attorney a declaration of covenants, conditions, and restrictions relating to the management of the common areas and facilities. The developer shall submit a statement signed by the attorney who prepared the CC&R's and bylaws for the Homeowners' Association stating the final map shall not be filed until city approval has been obtained.

      (8)   Maintenance program. The developer shall submit to the city a copy of the maintenance program, to be performed by a homeowner's association or other enforceable means to assure the maintenance of common areas, landscaping, private streets, parking areas, and recreational facilities. An estimate of annual operating and maintenance costs for all common facilities, together with a recommendation for reasonable reserves for the replacement of major elements shall be included. The program shall be prepared by an independent management firm subject to the approval in advance by the Community Development Department. Once the final maintenance program is approved by the city, it shall be incorporated into the CC&R's and implemented by the Homeowners' Association.

      (9)   The Community Development Director may request such other information or reports which in the opinion of the Director are necessary or convenient in order to make recommendations to the Commission and Council and to make the findings that the project meets the intent of this article and is consistent with this chapter and the General Plan.

      (10)   In addition to the property owner list, maps and envelopes required for use permit noticing, the applicant shall provide a list of current tenants of the complex, and stamped envelopes bearing the names and addresses of the tenants of each unit. The city shall use such envelopes to send notices to such persons of the hearing on the application in conformance with the provisions of California Subdivision Map Act Chapter 3, Article 1. At least 15 days prior to the date of such hearing, the developer shall provide the city with an update to the tenant list and provide the city with whatever additional envelopes are needed to notify tenants who have moved in after the application was filed.

      (11)   Tentative and/or parcel map. The applicant shall provide the materials necessary for a tentative and/or parcel map application in conformance with the requirements and procedures as set forth by this chapter, this article, the state Subdivision Map Act, and State Planning and Zoning Law.

      (12)   Documentation of tenant notification. At the time of the use permit and tentative map application, the applicant shall provide documentation to the satisfaction of the Community Development Director of conformance with the noticing, form, and timing of:

         (a)   The tenant notice and advisement of tenant rights as set forth by California Subdivision Map Act Chapter 2, Article 1, § 66427.1.

         (b)   The tenant notices for both prospective and existing tenants of intent to convert and tentative map filing as set forth in California Map Act Chapter 3, Article 2, §§ 66452.8 and 66452.9.

         (c)   The statutory references in this section shall also apply to successor legislation of the same of differing section numbers.

(Ord. 1070-C-S, passed 6-13-06)

   The applicant shall not increase any rent during the 180 days following the notice of intention to convert.

(Ord. 1070-C-S, passed 6-13-06)

   (A)   If the Council finds that the conversion will have an adverse effect on the diversity of housing types available in the city or that the displacement of tenants would be detrimental to the health, safety, or general welfare of the community, the Council shall deny the application. Upon making such finding, the application shall be approved only if the Council finds that the benefits of home ownership opportunity offered by the conversion outweigh the adverse effects set forth in this article.

   (B)   Notwithstanding any other provision of this section, the City Council may deny a use permit if it finds that vacancies in the building have been created by unjust evictions and unreasonable rent increases in order to qualify a project for conversion under this subsection.

(Ord. 1070-C-S, passed 6-13-06)

   The City Council shall not approve a conditional use permit and tentative map for a conversion unless it finds that:

   (A)   The proposed conversion is consistent with the general plan, particularly with the objectives, policies, and programs of the housing element of the general plan designed to provide affordable housing to all economic segments of the population.

   (B)   The average rental vacancy rate in comparable multiple-family units (as defined by complex and unit size, age, and amenities) within the city during the 12 months preceding the filing of the application is greater than 4.5%; provided, that a conditional use permit may be approved where the vacancy rate for comparable units is equal to or less than 4.5% if the applicant has proposed additional measures which the City Council finds would effectively mitigate the displacement of tenants and any adverse effects upon the housing stock within the city which would be caused by the proposed conversion.

   (C)   The applicant unconditionally offered to each eligible tenant an adequate plan for relocation to comparable housing.

   (D)   The CC&R's for the condominium project, shall require the applicant to establish an owner occupancy program that ensures a stable community of residents, is consistent with residential lending requirements, and discourages excessive real estate speculation. At a minimum, such program shall include the following requirements unless otherwise approved by the Community Development Director:

      (1)   Owner occupancy of at least 70% of the units;

      (2)   Minimum lease durations; and

      (3)   Registration of tenants and vehicles with the Homeowner's Association.

   (E)   All the provisions of the Subdivision Map Act, this article, and other applicable provisions of this code are met.

   (F)   (1)   Prior to the approval of the final map, the applicant has entered into an agreement, subject to the City Attorney's approval, with the Homeowners' Association, whereby 2.5% of the amount of each unit purchase price shall, at close of escrow, be deposited into a Homeowners' Association Capitol Reserve Account. The amount of the fee, if conditions warrant, may be increased above the established fee by the City Council. This fund shall be used for repair of items in the common area and structures, or other capitol repair or replacement items which the Association deems necessary. This fund shall be over and above any funding reserve requirements required by the State Department of Real Estate. The fund shall be held separately from funds required by the State Department of Real Estate.

      (2)   The intent of the city in requiring the creation of a contingency or reserve fund for condominium conversions is to provide a surety for unexpected or emergency repairs to common areas in the interest of the economic, aesthetic and environmental maintenance of the community as well as to protect the general welfare, public health and safety of the community.

   (G)   Pursuant to the Cal. Gov't Code, Subdivision Map Act Chapter 2, Article 1, the Council shall not approve a final map for a subdivision to be created from the conversion of a residential real property into a condominium project unless the Council finds that all of the Tenant Notification provisions of the California Map Act and Article 31 have been met.

(Ord. 1070-C-S, passed 6-13-06)

   In addition to the tenant protection provisions set forth in the State of California Subdivision Map Act, the applicant shall comply with the following provisions, as conditions of any conditional use permit for a condominium conversion project approved pursuant to these sections:

   (A)   Sales and lease termination. A tenant of any project proposed for conversion on the date of application for each conversion may terminate any lease after giving 30 days' notice.

   (B)   Relocation assistance. The applicant shall offer to each eligible tenant a plan for relocation to comparable housing, as approved by the city. The relocation plan shall provide, at a minimum, for the following:

      (1)   Assistance to each eligible tenant in locating decent, safe, and sanitary comparable housing, including but not limited to, providing availability reports. Apartment size, rent range, major kitchen and bathroom facilities, special facilities for the handicapped, infirmed or senior citizens and willingness to accept families with children will be considered in the determination of "comparable" as will accessibility to the tenant's place of employment; community and commercial facilities, schools; and public transportation.

      (2)   Payment of a relocation fee, equal to the amount of three month's rent, to each tenant who does not choose to purchase. A tenant is not entitled to a relocation fee pursuant to this section if the tenant has been evicted for just cause.

      (3)   The offer to each eligible tenant of a plan for relocation shall be free of any coercion, intimidation, inducement or promise not herein specified and shall not cause the tenant to vacate in advance of, a timetable or schedule for relocation as approved in its application for approval of conversion.

      (4)   Any tenant who chooses not to purchase and who is handicapped, or who has minor children in school, or is age 60 or older living in any unit prior to the time a completed tentative map application as determined by the Community Development Department shall be given an additional six months in which to find suitable replacement housing according to the timetable or schedule for relocation as approved in the conversion application.

      (5)   Other assistance deemed necessary by the City Council to mitigate the negative impacts caused by relocation.

   (C)   Anti-discrimination. The applicant or owner of any condominium unit within a project shall not discriminate in the sale, or in the terms and conditions of sale, of any dwelling unit against any person who is or was a lessee or tenant of any such dwelling unit because such person opposed, in any manner, the conversion of such building into a condominium.

   (D)   Pre-conversion protection. From the date of application for a use permit to convert, or until relocation takes place or the application is denied or withdrawn, but in no event for more than two years, no tenant shall be unjustly evicted and no tenant's rent shall be increased more frequently than once every six months, nor in an amount greater than the annual increase in utility costs, insurance costs, and property tax, plus increased operating costs not to exceed the Consumer Price Index applicable for the Bay Area per year. This limitation shall not apply if rent increases are expressly provided for in leases or contracts in existence prior to the filing date of the conditional use permit for the conversion.

   (E)   Appliance warranties. The applicant shall at the close of escrow provide free of charge to the first individual purchaser of each unit a one-year warranty for repair and replacement on each built-in appliance contained in the unit, whether new or used.

(Ord. 1070-C-S, passed 6-13-06)

   The use permit application for conversion shall be heard at a public hearing by the Planning Commission, which shall make its recommendations and issue its findings to the Council. The Design Review Board shall also consider the aesthetics of the proposed physical improvements to the site and buildings, and make its recommendations and issue its findings to the City Council. The Community Development Department shall use the envelopes provided by the developer to send notices of such hearing to the tenants of the proposed conversion at least ten days prior to such hearing. Such notices shall notify tenants that they have a right to appear and be heard at the hearing. The failure of any person to receive the notice shall not affect the validity of the proceedings. The developer and each tenant shall be served at least three days prior to the hearing with a copy of the staff report or recommendation prepared by the staff. The city shall use the envelopes provided by the developer for such purpose.

(Ord. 1070-C-S, passed 6-13-06)

   The applicant shall pay such application fees as are specified for tentative maps and use permits by resolution. In addition the applicant shall pay all fees related to condominium conversion that are found in other sections of the Municipal Code.

(Ord. 1070-C-S, passed 6-13-06)