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Carpinteria City Zoning Code

CHAPTER 14

74 - OWNERSHIP CONVERSIONS AFFECTING APARTMENTS; CONVERSION PERMITS7


Footnotes:
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Editor's note— Ord. No. 742, § 2, adopted Mar. 8, 2021, amended ch. 14.74 in its entirety to read as herein set out. Former ch. 14.74, §§ 14.74.010—17.74.080, pertained to condominium/cooperative conversion, and derived from Ord. No. 315 § 1 (part), adopted in 1981; and Ord. No. 435 § 1, adopted in 1999.


14.74.010 - Purpose.

The purpose of this chapter is to establish criteria for the conversion of existing multiple unit rental apartment housing to condominiums, community apartments, stock cooperatives, and cooperative apartments, as defined in this chapter. The need for these criteria is based on the following findings:

A.

Opportunities for affordable housing for persons of low and moderate income are becoming increasingly scarce.

B.

The availability of workforce housing that accommodates local residents across the income spectrum cannot keep up with demand, making it difficult to attract and retain employees for employers and businesses within the city.

C.

Existing rental housing stock in the city, which is in limited supply, provides a substantial portion of the housing opportunities for the local workforce as well as for low and moderate income households. Thus, the existing rental stock needs to be preserved.

D.

Conversion of rental apartment units often results in the displacement of low and moderate income households and mitigation of such action is desirable and consistent with the policies set forth in the city's general plan and local coastal program.

E.

Conversion of rental units is a potential means of providing home ownership opportunities for households who cannot afford a detached single-family home.

F.

There is a need to ensure that converted housing achieves high quality appearance and safety and is consistent with all applicable city codes and ordinances.

(Ord. No. 742, § 2, 3-8-2021)

14.74.020 - Definitions.

The following terms, as used in this chapter, shall be defined as follows:

A.

"Apartment" shall be as defined in the city's zoning ordinance as it shall be amended from time to time. Apartments shall exclude accessory dwelling units (ADUs).

B.

"Applicant" means the owner or subdivider with a controlling interest in the proposed conversion project, or representative thereof, and any successors in interest.

C.

"Conversion" means a proposed change in the type of ownership of a parcel of land containing two or more apartments, together with the existing attached structures, to any one of the following, regardless of the present or prior use of such land and structures and whether substantial improvements have been made to such structures:

1.

"Condominium" as defined in Section 783 of the Civil Code;

2.

"Community apartment project" as defined in Section 4105 of the Civil Code;

3.

"Stock cooperative" as defined in Section 11003.2 of the Business & Professions Code;

4.

"Cooperative apartment," defined as a project of more than four units in which an undivided interest in land is coupled with the exclusive right of occupancy of any dwelling unit located thereon, whether or not such right is contained in the form of a written or oral agreement, when such right does not appear on the face of the deed. Such ownership encompasses tenancies-in-common (Civil Code section 685).

D.

"Elderly" means individuals sixty-two years of age or older.

E.

"Eligible tenant" means any tenant not purchasing a unit within the project who is a resident of the property on the date that notice of intent to convert is given pursuant to Section 14.74.060 of this chapter. An eligible tenant also must not be subject to just cause for eviction under state law following the date notice of intent to convert is given pursuant to Section 14.74.060 of this chapter until such time rental and relocation assistance is due.

F.

"Handicapped" or "disabled" means the same as defined in Section 50072 of the California Health and Safety Code or Section 223 of the United States Social Security Act.

G.

"Low income" means a household that earns eighty percent or below of the area median income (AMI) applicable to Santa Barbara County, adjusted for family size as published and annually updated by the United States Department of Housing and Urban Development.

H.

"Moderate income" means a household that earns more than eighty percent, but not more than one hundred twenty percent, of the area median income (AMI) applicable to Santa Barbara County, adjusted for family size as published and annually updated by the United States Department of Housing and Urban Development.

I.

"Special category" means an eligible tenant, as defined in this chapter, who falls within one or more of the following categories:

1.

"Elderly" as defined in this section;

2.

"Handicapped" as defined in this section;

3.

"Low income" or "very low income" as defined in this section;

4.

"Moderate income," as defined in this section; or

5.

"Single head of household," meaning an unmarried person residing with and primarily responsible for one or more dependent children.

J.

"Very low income" means a household whose income does not exceed fifty percent of the area median income (AMI) applicable to Santa Barbara County, adjusted for family size as published and annually updated by the United States Department of Housing and Urban Development.

(Ord. No. 742, § 2, 3-8-2021)

14.74.030 - General requirements.

A.

Permit Required. A conversion permit shall be required prior to any conversion.

B.

Where Permitted. Conversion projects may be allowed in and shall conform to the requirements of any zone in which multifamily housing is permissible, subject to the requirements of this chapter.

C.

Where applicable, all other requirements and procedures of state law and the city's Code, including its subdivision ordinance found at Title 16, shall apply to conversions.

(Ord. No. 742, § 2, 3-8-2021)

14.74.040 - Application requirements.

A.

Application Contents. Application for a conversion permit shall be made on forms provided by the city and shall include the following information:

1.

A list of all consultants proposed to be involved with the project, or a statement that none are proposed to be involved;

2.

A tentative tract or parcel map;

a.

Tentative Tract Map. A tentative tract map shall be required for all Conversions resulting in five or more condominiums, community apartments, or stock cooperative units, unless an exception under the Subdivision Map Act or Title 16 of this code applies. In the case of an exception, a parcel map shall be required.

b.

Parcel Map. Where a tentative tract map is not required, applicant shall submit a parcel map, except as provided in Section 14.74.040 (A)(2)(c).

c.

No map shall be required for a conversion to a cooperative apartment.

3.

A development plan, if applicable, in conformance with Chapter 14.68 of this code;

4.

A coastal development permit, in conformance with the city's certified local coastal program;

5.

Provision of parking in accordance with the standards in Chapter 14.54 of this code.

6.

Description of sales information including, but not limited to, anticipated range of sales prices of individual dwelling units or shares based on information known at the time of application; anticipated terms of sale to existing tenants and special category tenants; incentives for tenants and special category tenants to purchase dwelling units; and the number of tenants that have expressed interest in purchasing their dwelling unit.

7.

A rental history report detailing:

a.

The size, in square footage, of the building and each unit;

b.

The name and address of each current tenant;

c.

The current rental rates and the rates for the prior twenty-four months for each unit, including any rental incentive(s) provided to tenants;

d.

A complete list of the number and type of special category tenants for each unit presently residing in the project and over the preceding twenty-four months;

e.

Identification of tenants receiving federal or state rent subsidies; and,

f.

The number of evictions over the preceding twenty-four months.

8.

Tenant relocation plan.

a.

At a minimum, the tenant relocation plan shall include the following:

1.

Current information on available apartments of comparable size, quality and price within a twenty-mile radius of the building to be converted;

2.

A description of the feasibility of providing all or a portion of the converted units for sale to low and moderate income households;

3.

A description of the feasibility of not converting a portion of the total units to retain them for rental occupancy; and

4.

A calculation of the total amount of the relocation and rental assistance due in accordance with Section 14.74.090, Subsections C. and D.

b.

If the applicant seeks a waiver or reduction in rental or relocation assistance pursuant to Section 14.74.090.F., application for the same is due at the time the tenant relocation plan is submitted.

c.

The approved tenant relocation plan shall be incorporated into the conditions of approval on the project and shall be provided to each tenant in the project within five days of approval of the conversion permit.

9.

Tenant surveys.

a.

The applicant shall provide a survey to each tenant on a form provided by the city, with an envelope, postage prepaid, addressed to the community development department. The affected tenants shall have no less than thirty days from the postmark date of certified mailing to complete the survey.

b.

The survey shall ask the tenants to indicate identity; unit number; length of tenancy; rent; rent incentives, if any; identification as a special category tenant, if applicable; rent subsidies, if any; how long the tenant had planned to continue living in the building; knowledge of available alternative housing acceptable to tenant; interest in purchasing the unit within the price range estimated for the project; and the extent of tenant's approval in principle of the conversion.

c.

The completed survey results shall be confidential, but may be disclosed to those individuals, including applicant, as is deemed appropriate and necessary to accomplish the purposes of this chapter or as required by law.

d.

The survey results shall be anonymized for presentation to the relevant hearing body, which will use the information to make a determination on a request for a waiver or reduction in rental or relocation assistance, if any, and may be one factor the hearing body considers in approving the conversion permit. A tenant may decline to provide the information requested; however, the hearing body's determination of the reasonableness of the applicant's request for a waiver or reduction in assistance shall be based on the responses to the tenant surveys, and the level or elements of assistance in an individual case may be limited or eliminated based on a tenant's verified refusal to provide information necessary to make a determination.

10.

An inclusionary housing plan in conformance with Chapter 14.75 of this code, if applicable;

11.

Any additional information deemed necessary by the community development director, planning commission, or city council for proper evaluation of the project and/or imposition of conditions of approval in accordance with the purposes, intent and requirements of this chapter, the general plan, local coastal program, or any specific plan in effect at the time of application for conversion.

12.

The application shall be supported by a declaration under penalty of perjury as to the truth and accuracy of all submitted materials.

(Ord. No. 742, § 2, 3-8-2021)

14.74.060 - Notices.

A.

Notice of Intent to Convert.

1.

Notice to city and current tenants.

a.

In addition to compliance with the notice provisions in the Subdivision Map Act and/or Title 16 of this code, if applicable, at least sixty days prior to filing an application to convert with the community development department, the applicant shall provide the city and all tenants of the property to be converted, individually and in a nontechnical comprehensible writing, with the following information:

1.

A general description of the proposed conversion;

2.

The name of the current owner and applicant and how such person(s) can be contacted;

3.

The anticipated schedule for conversion;

4.

A copy of Chapter 14.74 of the Carpinteria Municipal Code;

5.

Notification of the tenant's ninety-day right of first refusal to purchase the unit he or she is renting, or applicable share, pursuant to Section 14.74.090(B) upon issuance of a final public report from the department of real estate, or in the case of a cooperative apartment, upon the effective date of the conversion permit;

6.

The right to receive notice of intent to convert prior to termination of tenancy due to the conversion;

7.

A description of the applicant's plans for relocation and rental assistance for eligible tenants and special category tenants;

8.

Notification of the tenant's right to receive notice of all public hearings, and the right to appear and be heard at such hearings;

9.

The tenant shall be permitted to terminate any lease or rental agreement without penalty upon thirty days' prior written notice of such termination;

10.

The economic terms of the tenant's tenancy, including, but not limited to, rent and utilities allowance, shall not be increased from the level that existed thirty days prior to issuance of the notice of intent to convert until tenant's purchase of the unit or applicable share, or the tentative tract/parcel map application is denied, whichever is later. For cooperative apartments, the economic terms of tenancy shall not be increased from the level that existed thirty days prior to issuance of the notice of intent to convert until tenant's purchase of his or her shares. This limitation shall not apply if rent increases are provided for in leases or contracts in existence thirty days before the notice of intent is submitted; and

11.

No tenant shall be evicted during a period beginning thirty days prior to the date of application for the conversion permit and ending with the issuance of the conversion permit. The provisions of this paragraph shall not apply where there is just cause to evict the tenant under state law.

b.

The notice of intent to convert shall be conspicuously posted in at least two residential common areas, such as an on-site rental office, a community club house, or mail pick-up area. In addition, said notice shall also be posted at each driveway entrance to the project site. All required notices of intent shall remain posted until the converted units are first offered for sale.

2.

Notice to prospective tenants. Commencing at least sixty days prior to filing with the community development department an application to convert or a tentative/parcel map, whichever is earlier, the applicant shall provide all prospective tenants written notice of such anticipated or actual filing, prior to the time a rental agreement is executed or a deposit is paid for, whichever is earlier. Prospective tenants shall receive all accompanying documents and information described in Section 17.74.060(A)(1). A signed writing by the prospective tenant confirming receipt of the notices, as described herein, shall be retained by the applicant as proof of compliance with this provision.

B.

Other Notices. In addition to the notice of intent to convert as set forth in Section 14.74.060(A), the applicant shall also be responsible for the following written notifications to each tenant:

1.

Each tenant in a building with five or more units will be given notice of application to the department of real estate for a public report to be given within ten days before or after the application is filed.

2.

Within three days of the city's approval of the tentative tract or parcel map, and/or conversion permit, each tenant will be given notice of the decision of approval and right to appeal, along with the final tenant relocation plan.

3.

Each tenant in a building with five or more units will be given notice of receipt of the final public report from the department of real estate within five days after receipt. This notice must advise that the tenant's ninety-day right to purchase has begun. If no public report from the department of real estate is issued, the right to purchase shall run from the commencement of sales.

4.

Notice of final map approval, if applicable, must be given within ten days after final or parcel map approval.

5.

After the city approves the tentative tract or parcel map, if applicable, one hundred eighty days' notice of owner's planned conversion shall be given to each tenant before termination of tenancy. The applicant shall, at his/her discretion, establish the date of issuance of this notice; however, each vacating tenant shall have not less than one hundred twenty days from the date of receipt of the notice of planned conversion or from the filing date of the final subdivision map, whichever date is later, to vacate the premises. At that time, such tenant shall also receive notification of the number of days remaining before the expiration of the notice of planned conversion previously issued and shall be bound to the number of days remaining before termination of tenancy.

a.

Such notices shall apply to existing and subsequent tenants of units to be converted.

b.

A thirty-day notice to quit as authorized by Civil Code Section 1946 must be served after the expiration date of the notice of intent to convert.

C.

Evidence of Tenant Notification. The applicant shall submit proof of compliance with the notice provisions of this section not less than thirty days prior to a hearing by the relevant hearing body. Proof shall consist of signatures from each tenant confirming notification or evidence that a certified letter was sent to each tenant.

D.

The community development director may waive the tenant notification requirements where the property proposed for conversion is not tenant-occupied at the time of conversion permit application.

E.

The applicant shall bear all costs associated with publication, printing and delivery of required notices, including those incurred by the city.

(Ord. No. 742, § 2, 3-8-2021)

14.74.090 - Tenant rights.

A.

Each tenant shall have a right of occupancy of at least one hundred eighty days from the issuance of the final public report from the department of real estate or, if none is issued, from the commencement of sales prior to termination of tenancy due to conversion. Eligible special category tenants shall have up to one year following issuance of the final public report or commencement of sales, if there is no public report.

B.

Tenant Purchase Option. The applicant shall provide each tenant with a ninety-day right of first refusal to purchase his or her respective unit or the share controlling the unit then occupied by the tenant, or any other unit in the project not claimed by the present tenant, on the same or better terms than the unit will be offered to the general public. Where a map is required, notice of the right to purchase, which is expressly conditioned on the filing and approval of the final subdivision map or parcel map, may be given concurrently with notice of receipt of the public report. Where a map is not required, notice of the right to purchase may be given after the effective date of the conversion permit. All tenants residing within a unit whose name appears on the lease who elect not to exercise their right must sign a written waiver of the right.

C.

Relocation Assistance. For all non-purchasing eligible tenants, the applicant shall provide relocation assistance in an amount determined by resolution of the city council. No more than one such payment shall be made per unit at the time the unit is vacated. An otherwise eligible tenant is not entitled to relocation assistance pursuant to this subsection if the tenant is evicted for just cause under state landlord-tenant law.

D.

Rental Assistance.

1.

All non-purchasing tenants shall be provided with up-to-date information on available apartments of comparable size, quality and price located within a twenty-mile radius of the building to be converted.

2.

A rental assistance payment shall be provided to non-purchasing eligible tenants equal to two month's rent at the existing rental amount. No more than one payment per unit is required.

3.

Special Category Tenants. In addition to the rental assistance specified in Subsection (D)(2) of this section, the applicant shall provide eligible special category tenants five hundred dollars in 2020 dollars, escalated annually by the Consumer Price Index (CPI) for Los Angeles-Riverside-Orange County. No more than one payment per unit is required.

4.

The rental assistance payments referenced herein only apply to those eligible tenants and eligible special category tenants who are not evicted for just cause under state law at the time they vacate the premises. Payment shall be made in one lump sum at the time the tenant vacates his or her unit.

E.

The applicant's offer of relocation and rental assistance shall be free of any coercion, intimidation, inducement, or promise not herein specified and shall not require the tenant to vacate in advance of a timetable or schedule for relocation as approved in the application for conversion.

F.

Upon a showing of good cause, the applicant may apply for a reduction or waiver in the amount of rental and/or relocation assistance due. Good cause shall mean a factual and evidentiary showing by the applicant that the amount, if not waived, will deprive the applicant of substantially all reasonable economic use of his or her property. Good cause may also be shown where a court of competent jurisdiction has determined in connection with a proceeding in bankruptcy that cessation of use of the property as an apartment building is necessary, and that such court has taken further action that would prohibit or preclude the payment of rental and relocation assistance, in whole or in part.

1.

All such applications for reduction or waiver in assistance shall be filed with the community development department no later than at the time the proposed tenant relocation plan is submitted, with prompt notification of such given to all tenants.

2.

Applications for a reduction or waiver in assistance, as well as any disputes regarding eligibility for this assistance, shall be reviewed by the planning commission at the hearing for the conversion permit. Fees for such applications and associated appeals of the same shall be in an amount in accordance with the existing fee schedule.

G.

Ownership Incentives. In order to reduce the number of tenants being displaced, the applicant shall provide incentives that would aid existing tenants in becoming owners in the converted project that are equal to, or greater than, the total dollar value of relocation and rental assistance provided to similarly situated tenants who are relocated. Any such incentives, including terms and conditions, shall be documented by the applicant and approved by the community development director. Incentives may include, but are not limited to, low-interest loans, reduced prices, and application of a percentage of rent payment toward a down payment for purchase of a unit within the project.

H.

Phasing Plan. The applicant shall work with the community development department to limit unnecessary interference with existing tenants. A phasing plan shall be incorporated into the conditions of approval of the project. No remodeling or improvements planned as part of the conversion shall be performed in a unit occupied by a non-purchasing tenant without first receiving their written permission.

I.

Despite any provision to the contrary within this chapter, no tenant who occupies a unit with children who are in school and who is not in default under the rental agreement or lease under which they occupy their unit shall be required to move from their unit prior to the end of the current grade year. For purposes of this chapter, "grade year" shall refer to the Carpinteria Unified School District year.

J.

Any non-eligible tenant not properly noticed pursuant to the government code or as required by this chapter shall receive the rental and relocation assistance described in this chapter regardless of the date of tenancy so long as just cause for eviction under state law does not exist.

K.

Where the building is vacated of tenants pursuant to Government Code Section 7060 et seq. prior to application for a conversion permit or tentative/parcel map, relocation and rental assistance obligations shall be applicable and due to former tenants for up to one year after vacation of the units where a conversion permit is sought.

L.

Anti-Discrimination. The applicant or owner of any 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.

(Ord. No. 742, § 2, 3-8-2021)

14.74.100 - Compliance with Mello Act.

A.

Pursuant to Government Code Sections 65590 and 65590.1, conversion or demolition of existing residential dwelling units occupied by persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, shall not be authorized unless an exemption within the state Code applies or provision has been made for the replacement of those dwelling units on a one-to-one basis within the city unless the planning commission determines that replacement is not feasible.

1.

If the applicant claims that it is not feasible to provide affordable replacement housing units, an independent feasibility analysis shall be prepared prior to any approvals being granted for the proposed project by an independent firm under the direction of the community development director. The feasibility analysis shall examine the feasibility of providing the replacement housing units within the city and in Santa Barbara County, within the coastal zone or three miles thereof. The selected firm shall have prior experience in the preparation of real estate feasibility analyses and shall provide an unbiased, neutral opinion as to the feasibility of complying with the requirements of this chapter.

2.

In order to conclude that the replacement of affordable housing units is not feasible, the hearing body shall find the following:

a.

The feasibility analysis was prepared in a professional and appropriate manner, and the facts and information presented in the feasibility analysis are accurate to the best of the hearing body's knowledge; and,

b.

The feasibility analysis concluded that the provision of affordable housing as required by this chapter and the Mello Act is not feasible.

3.

Where it is not feasible to provide the replacement housing units in the city, the city shall require the applicant to provide such housing, if feasible to do so, at another location within Santa Barbara County, either within the coastal zone or, if that is infeasible, within three miles thereof. Alternatively, applicant may pay the in-lieu fee referred to in Section 14.75.090, which shall be fixed by a schedule adopted from time to time by resolution of the city council.

B.

An affordable housing agreement governing the replacement housing units shall be executed in a recordable form prior to the issuance of a building permit for any portion of a residential development project subject to the requirements of this chapter.

(Ord. No. 742, § 2, 3-8-2021)

14.74.110 - Standards.

A.

The city shall require conformance with the standards herein in approving an application for conversion. Failure to meet these standards shall result in a denial of the conversion permit unless conditions of approval can be imposed that will achieve conformity with such standards prior to issuance of an occupancy permit. The applicant shall agree in writing to comply with the conditions of approval, whether in the form of an improvement agreement or otherwise, and the hearing body may additionally require the posting of bonds with the city clerk to ensure compliance with such conditions of approval.

B.

The following are required as conditions of approval for all conversion projects:

1.

All structures shall be in compliance with the current applicable minimum standards of the California Building Code and any amendments thereto adopted by the city.

2.

All structures shall be in compliance with those provisions of the California Administrative Code applicable to construction.

3.

All residential structures shall be in compliance with the current applicable minimum standards of the Uniform Housing Code and any amendments thereto as adopted by the city.

4.

All structures shall be in all respects in compliance with Titles 14, 15 and 16, as applicable, of this code and the goals and policies of the general plan and coastal land use plan, or legally nonconforming therewith.

5.

All conversion projects shall be subject to all current applicable provisions of the Subdivision Map Act and Title 16 of this code.

6.

In addition to the other requirements of this section, the following physical standards shall apply:

a.

Unit Size. The enclosed living or habitable area of each unit shall not be less than six hundred square feet unless the hearing body determines at the time of approval that other project amenities compensate for the minimum required enclosed area. Compensating amenities may include, but are not limited to, the following:

1.

Private enclosed open space;

2.

Enclosed developed facilities within the common areas;

3.

Covenants, conditions and restrictions restricting density;

4.

Compatibility of the density of the total project in relation to the project's amenities and surrounding neighborhood.

b.

Fire Prevention.

1.

All fire suppression systems, which include, but are not limited to, smoke and carbon monoxide detectors, fire hydrants, and portable fire extinguishers, shall be in conformance with the city's existing Fire Code, as it is amended from time to time.

2.

Attics. If attics are a part of the project, they shall be separated as a condition of conversion and in compliance with the California Building Code.

c.

Sound Transmissions.

1.

Wall and floor-ceiling assemblies shall conform to the requirements of the California Building Code, or its successor, or permanent mechanical equipment, including domestic appliances, which is determined by the community development director 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 community development director to lessen the transmission of vibration and noise. Floor covering that provides the same or greater insulation. The requirements of this subdivision shall not apply to a unit in a building with no other unit(s).

d.

Utility Metering.

1.

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.

2.

Each unit shall have its own panel, or access thereto for all electrical circuits which serve the unit.

e.

Private Storage Space. Each unit shall have at least two hundred cubic feet of enclosed weather-proofed and lockable private storage space, in addition to guest, linen, pantry, and clothes closets customarily provided within the unit. Such space shall be for the sole use of the unit owner. Such space may be provided in any location as approved by the planning commission at the time of approval of the conversion permit, but shall not be divided into two or more locations. In such cases where the applicant can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the planning commission.

f.

Laundry Facilities. A laundry area shall be provided in each unit; or if common laundry facilities are provided, such facilities shall consist of not less than one automatic washer and dryer for each unit or fraction thereof. In such cases where the applicant can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the planning commission.

g.

Condition of Equipment. At such time as the homeowners' 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 are in working condition.

h.

Common Open Space. At least twenty percent of the site shall remain in common open space. If existing structures, equipment, or paved areas preclude obtaining the twenty percent common open space, such structures, paved areas, etc., shall be modified to enable the development to obtain a minimum twenty percent of common open space. Common open space is as defined in Section 14.08.485 of this code. The common open space shall be deeded to the homeowners' association or similar entity and held in undivided ownership by the residents of the project, subject to the city's approval. Preservation and maintenance of all common open space shall be guaranteed by a restrictive covenant describing the open space and its maintenance and improvement running with the land as described in the approved final development plan, if any, and project covenants, conditions and restrictions (CC&Rs). Any changes to the CC&Rs affecting common open space shall be reviewed and approved by the city.

i.

Public Easements. The applicant shall make provisions for the dedication of land or easements for street widening, public access or other public purpose in connection with the project where necessary and in accordance with established planned improvements.

j.

Underground Utilities. All utility lines shall be undergrounded from the nearest pole. The applicant shall waive the right, through a deed restriction, to protest the formation of an underground utility district.

k.

Refurbishing and Restoration. All main buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, landscaped areas, irrigation systems, and additional elements as required by the hearing body shall be refurbished and restored as necessary to achieve high quality appearance and safety.

C.

Surveying. Permanent survey monuments shall be installed at all parcel/lot corners of a map by a California-licensed land surveyor or registered civil engineer authorized to practice land surveying, in accordance with Government Code Section 66495.

D.

Undertaking a conversion without compliance with the physical standards for improvement described in this section shall constitute a public nuisance, and the subject property shall be deemed substandard.

(Ord. No. 742, § 2, 3-8-2021)

14.74.120 - Application review.

A.

The community development department shall review all applications and make a recommendation to the planning commission based on the standards set forth in this chapter. The planning commission shall hear the application for a conversion permit concurrently with any other discretionary approval required for conversion. The planning commission has final review authority for development plans, coastal development permits, tentative parcel maps, variances, and conversions, with any decision being appealable to the city council. The planning commission makes a recommendation to the city council regarding tentative tract maps.

B.

When corrective work is identified, such work shall be incorporated as conditions of approval on the project if not corrected in advance of the first public hearing. All corrective work required shall be completed prior to the issuance of an occupancy permit. The city shall charge a reasonable hourly fee for any inspections required by this chapter.

C.

Architectural Review Board. Where the applicant proposes any modifications to the project site that fall within the review criteria of Chapter 2.36 of this code, such modifications shall be reviewed according to the requirements of said chapter.

(Ord. No. 742, § 2, 3-8-2021)

14.74.130 - Findings—Conversion permit.

A.

Standards of Approval. The hearing body shall not approve the conversion permit unless it finds all of the following criteria have been met:

1.

The proposed project meets all of the development and other standards set forth in this chapter;

2.

The proposed project is in conformance with the provisions of the applicable zoning district, coastal plan and implementation programs, general plan, and specific plan(s) if required;

3.

All notices required by this code and/or state subdivision law, as applicable, pertaining to conversions have been properly and timely served;

4.

The applicant does not seek to convert an apartment complex or development which received a certificate of occupancy for any unit located therein within the preceding twelve months;

5.

The proposed project will not be detrimental to the peace, health, safety, comfort, convenience, property values, or general welfare of the neighborhood;

6.

The rental vacancy rate within the city exceeds five percent.

7.

The converted units represent less than fifteen percent of the apartment rental housing supply within the city. If the converted units represent fifteen percent or more of the apartment rental housing supply within the city, the hearing body may nonetheless find this factor satisfied if the applicant agrees to make a 1:1 replacement of the rental housing units with new rental units of at least comparable quality. The new units will be located in the city and will be provided no later than issuance of occupancy permits for the conversion project; and,

8.

The proposed conversion will not cause a net reduction in the number of units occupied by low and moderate income tenants within the city, in accordance with Section 14.74.100 of this chapter.

B.

Notwithstanding 14.74.130(A) of this chapter, the planning commission, or city council on appeal, shall deny approval of a conversion permit if it finds that:

1.

The applicant vacated units in the building proposed for conversion to avoid providing rental or relocation assistance and other benefits to tenants as described in the tenant relocation plan; or

2.

The applicant's relocation and/or rental assistance, or provision of notices pursuant to Section 14.74.060 (notices), is unacceptable or otherwise inconsistent with the city's housing goals and policies.

C.

In approving a conversion permit, the planning commission or city council on appeal may impose such conditions of approval as may be necessary to carry out the intent, purpose, and objectives of this chapter, the general plan, local coastal program, and applicable specific plans and elements thereof, or to protect the public health, safety, or welfare. Any application with the department of real estate for a public report shall include the permit's conditions of approval and evidence of the certificate of occupancy, where applicable.

(Ord. No. 742, § 2, 3-8-2021)

14.74.140 - Action on the application.

A.

Action on the tentative tract map or tentative parcel map shall be governed by Title 16 of this code.

B.

If the tentative tract map or tentative parcel map is approved, applicant shall prepare a final tenant relocation plan describing in detail tenant relocation and rental assistance in conformity with the conditions of approval, if any. Within three days of receiving approval of the conversion permit, the applicant shall distribute a copy of the tenant relocation plan to each tenant and to the community development director. If the planning commission approves the tentative tract map, the tenant relocation plan shall be accompanied by a written notice advising tenants of the action of the planning commission and informing them of their right to appeal the decision to the city council.

C.

Where no subdivision map is required, applicant shall prepare a final tenant relocation plan describing in detail tenant relocation and rental assistance in conformity with the conditions of approval, if any. Within five days of receiving approval of the conversion permit, the applicant shall distribute a copy of the tenant relocation plan to each tenant and to the community development director. The tenant relocation plan shall be accompanied by a written notice advising tenants of the action of the planning commission and informing them of their right to appeal the decision to the city council.

(Ord. No. 742, § 2, 3-8-2021)

14.74.150 - Appeals.

An appeal of the planning commission's decision on the conversion permit may be made to the city council pursuant to the procedure outlined in Chapter 14.78 of this code.

(Ord. No. 742, § 2, 3-8-2021)

14.74.160 - Effective date of conversion permit.

The decision of the planning commission shall be final after the time for appeal to the city council has lapsed, unless the project is located in the coastal appeals overlay, in which case the action is final once the California Coastal Commission appeal period has expired.

(Ord. No. 742, § 2, 3-8-2021)

14.74.170 - Documents to be provided to city.

Prior to offering for sale to the public any unit within a conversion project for which a conversion permit has been issued pursuant to this section, the applicant shall submit to city a copy of each of the following documents relating to the proposed project: The completed application for issuance of a final public report from the department of real estate for the project proposed for conversion, including all attachments and exhibits thereto; and the completed supplemental questionnaire, including all attachments and exhibits.

(Ord. No. 742, § 2, 3-8-2021)

14.74.180 - Lapse of conversion permit.

A.

An approved conversion permit shall expire with the associated map; any extensions of time for the map shall also extend the conversion permit. Where no map is required, the conversion permit shall expire two years following the date the permit became effective, unless prior to the expiration of the permit, a written request for an extension that states the reason for the request is submitted to the community development director. The hearing body that granted the conversion permit may grant a one-year extension of the permit upon a showing of good cause. If the time limit expires and no extension has been granted, then the conversion permit shall be considered null and void.

B.

Any extension of a conversion permit shall be conditioned to require compliance with any new provisions applicable to such conversion projects and payment of all fees in effect at the time the extension is granted.

(Ord. No. 742, § 2, 3-8-2021)

14.74.190 - Enforcement.

A.

It shall be unlawful to offer for sale, to offer to purchase, to agree to sell or buy, to sell or buy, or to assist in the sale or purchase of any condominium, community apartment, stock cooperative, or cooperative apartment if the conversion fails to comply with any provision of this chapter or the claimed compliance was procured by fraud, misrepresentation, threat or payment of sums of money not authorized by this chapter. Any such transaction is hereby declared to be contrary to public policy, and null and void.

B.

The city attorney may bring an action on behalf of the city seeking injunctive relief to restrain or enjoin any violation of this chapter. In any such action, all relief which may redress the violation may be awarded including, but not limited to, an order to make whole any individuals aggrieved by such violation. Where a public nuisance is created by the failure to comply with the physical improvements set forth in this chapter, the city shall be entitled to record a notice of violation with the county recorder. Where a notice of violation is so recorded, the city may avail itself to all the remedies found in state law, including, but not limited to, Health and Safety Code Section 17980.7, and the affected property shall be ineligible for a vacation rental license until such time the notice of violation is remedied.

C.

In addition, the penalties in Chapter 1.08 shall be available to the city to remedy a violation of this chapter.

D.

Any resident of the city may bring an action seeking damages, penalties, and/or injunctive relief to restrain or enjoin any violation of this chapter.

E.

The remedies provided by this section shall be in addition to any other remedies provided by law.

(Ord. No. 742, § 2, 3-8-2021)

14.74.200 - Administrative fee.

The city council shall, by resolution, establish reasonable fees and deposits to fully defray the cost of administering this chapter.

(Ord. No. 742, § 2, 3-8-2021)

14.74.210 - No vested rights in tenants.

No tenant, by virtue of the provisions of this chapter, shall have a vested right from the city to any of the benefits or other interest provided herein. Nothing in this chapter is intended to abridge any rights of tenants or obligations of owners as provided in state law.

(Ord. No. 742, § 2, 3-8-2021)