The purpose of this chapter is to protect the public health, safety and welfare by establishing criteria for the conversion of existing multiple-family rental housing to condominiums, community apartments and stock cooperatives (because the City Council finds condominiums and community and stock cooperative apartments to be different from traditional apartments and similar structures and therefor intends to treat such conversion projects differently), to reduce the impact of such conversions on residents in rental housing who may be displaced by providing procedures for notification and adequate time for such relocation and to insure that the converted housing is consistent with the goals of the city’s General Plan by attempting to provide throughout the city an opportunity for a wide range of housing opportunities of all types, for all levels of income and in a variety of locations, and by attempting to maintain a supply of rental housing for low and moderate income persons and families.

(`78 Code, § 17.83.010.) (Ord. 1589 § 1 (part), 1981.)

   Conversion to community apartments and stock cooperatives shall be subject to the same restrictions, conditions and requirements as condominiums. All reference to "condominium" in this chapter shall be deemed to refer to a condominium, community apartment or stock cooperatives, except where specifically noted otherwise.

(`78 Code, § 17.83.020.) (Ord. 1589 § 1 (part), 1981.)

   For the purpose of this chapter, the following definitions shall apply.

   (A)   "Common area" means an entire condominium project excepting all units therein.

   (B)   "Community apartment project" means a project in which an undivided interest in the land is coupled with the right of exclusive occupancy of an apartment located thereon.

   (C)   "Condominium" means an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property, together with a separate interest in space in a building on such real property, such as an apartment or apartments. A condominium may also include a separate interest in other portions of such real property. A condominium is more particularly defined in Cal. Civil Code § 783, and this definition is intended to be consistent therewith.

   (D)   "Condominium conversion project" means the conversion or subdivision of a single ownership parcel of existing improved real property, including but not limited to a structure containing two or more dwelling units, into a form of ownership for residential purposes involving the right of exclusive occupancy or separate ownership of individual units, including but not limited to condominiums, community apartments, stock cooperatives or planned unit developments.

   (E)   "Covenants, conditions and restrictions (CC&R's)” means a declaration relating to the maintenance, operation, duties and responsibilities of the common owners of the project and which may include but is not limited to those restrictions provided for in Cal. Civil Code § 1255.

   (F)   "Project" means a condominium conversion project.

   (G)   "Stock cooperative" means a corporation formed for the purpose of holding title to improved real property with shareholders receiving the right of exclusive occupancy in a portion of the real property and which is more particularly defined in Cal. Business and Professions Code § 11003.2.

   (H)   "Unit" means prior to conversion, a unit is any one rental unit in the project. After conversion, a unit is the element of a condominium conversion project which is not owned in common with the other owners of the project or is an apartment in a community apartment project or stock cooperative to which an owner of an undivided interest in common in a community apartment project has a right of exclusive occupancy.

(`78 Code, § 17.83.030.) (Ord. 1589 § 1 (part), 1981.)

   No application for a condominium conversion project may be filed unless and until each of the following requirements are met:

   (A)   The requirements of the State Subdivision Map Act and Title 16 of this code have been met;

   (B)   A conditional use permit is being applied for pursuant to the provisions of this code;

   (C)   The vacancy rate for apartments in the city is greater than 5%; and

   (D)   The multiple-family rental housing proposed to be converted has had a city occupancy permit as rental property for at least two years prior to the date the application was submitted.

(`78 Code, § 17.83.040.) (Ord. 1589 § 1 (part), 1981.)

   The information and materials required to be submitted with an application for a condominium conversion project shall be the same as required in § 17.82.060.

(`78 Code, § 17.83.050.) (Ord. 1589 § 1 (part), 1981.)

   Condominium conversion projects approved by the Planning Commission, or the City Council on appeal, shall be subject to at least the following conditions:

   (A)   Compliance with existing off-street parking requirements for the zone in which the project is located in accordance with § 17.76.030(A)(2) shall be required;

   (B)   An outdoor area of private open space shall be provided contiguous with each residential ground level unit in accordance with § 17.24.220;

   (C)   Recreational facilities and recreational open space shall be adequate for the development in accordance with § 17.24.200;

   (D)   A report from a licensed building inspector, architect or structural engineer shall be provided to all initial prospective buyers indicating the current condition of the roof, electrical system, plumbing, heating and cooling systems, major appliances and built-ins and overall structure;

   (E)   Compliance with all notification requirements of this chapter, the State Subdivision Map Act and Title 16 shall be required.

   (F)   Utilities.

      (1)   Electrical. Each condominium within a building shall have a separate and dedicated electrical service. The electrical service connection to each condominium shall comply with the requirements of the California Electric Code.

      (2)   Gas. Each condominium within a building shall have a separate and dedicated gas service as a necessary utility.

      (3)   Sewer. Each condominium within a building shall have a separate and dedicated sewer connection to a common trunk line that leads to the city’s sewer system. Each sewer lateral shall be fitted/retrofitted with a cleanout in compliance with the California Plumbing code.

      (4)   Water. Each individual condominium within a building shall be served with a separate and dedicated city water service and metering device which shall comply with all applicable local and state laws and standards.

(`78 Code, § 17.83.060.) (Ord. 2874, § 1, 2007; Ord. 1589 § 1 (part), 1981.)

   (A)   The Planning Commission or the City Council shall not approve a final map for a subdivision to be created from the conversion of residential real property into a condominium conversion project unless the Planning Commission or the City Council makes the following findings:

      (1)   Each tenant of the proposed project has received, pursuant to and in the form prescribed by Cal. Gov’t Code § 66452.9, written notification of intention to convert at least 60 days prior to the filing of the tentative map for the proposed project;

      (2)   Each tenant of the proposed project, and each person applying for rental of a unit therein, has or will have received all applicable notices and rights now or hereafter required by Cal. Gov’t Code, Division 2, Chapter 2 (commencing with § 66425) and Chapter 3 (commencing with § 66451);

      (3)   Each tenant of the proposed project has received ten days written notification that an application for a public report will be or has been submitted to the California Department of Real Estate, and that such report will be available from the project developer on request;

      (4)   Satisfactory arrangements have been made to assure that each tenant of the proposed project will receive written notification of all conditions of approval of the final map within ten days of such approval. If such notification is not in fact given within ten days, this finding shall be revoked by operation of law and the final map approval based thereon shall be void;

      (5)   That each of the tenants of the project has been or will be given 180 days advance written notice of intention to convert prior to termination of tenancy due to the proposed project, which notice includes, but is not limited to, the following:

         (a)   Notice of the proposed date of termination of tenancy due to conversion;

         (b)   The exclusive right of first refusal to contract for the purpose of the tenant’s unit at the same time said unit is offered to the general public and upon terms and conditions at least as favorable as those upon which said unit is first offered to the general public.

   (B)   The Planning Commission, or the City Council on appeal, shall not approve an application for conditional use permit for a condominium conversion project unless the Planning Commission or the City Council make the following findings:

      (1)   That all provisions of this chapter are met;

      (2)   That the project is not detrimental to the health, safety or general welfare of the community;

      (3)   That the project is consistent with the General Plan.

(`78 Code, § 17.83.070.) (Ord. 1589 § 1 (part), 1981.)

   (A)   In addition to notification otherwise required by this chapter, written notices shall be mailed, by the city, first class postage prepaid, to all tenants residing in the proposed condominium conversion project not less than 15 days prior to any public hearing by the Planning Commission or the City Council concerning the project. The notices shall provide at least the following:

      (1)   The date, time, place and purpose of the public hearing;

      (2)   Notification of the tenants’ right to appear at the hearing and to be heard regarding the project;

      (3)   A statement that, should the use permit for the conversion project be approved, the property owner may require the tenants to vacate the premises;

      (4)   A statement that all information and reports furnished to or by the Planning Department pursuant to this chapter shall be on file for public inspection during city business hours in the Planning Department.

   (B)   Any report or recommendation regarding a tentative map for a proposed project shall be in writing and a copy shall be served on the developer and each tenant of the proposed project at least three days prior to any hearing or action on such map by the Planning Commission or the City Council.

   (C)   Commencing at a date not less than 60 days prior to the filing of a tentative map for a condominium conversion project, the developer shall also give notice of such filing, in the form designated by Cal. Gov’t Code § 66452.8, to each person applying after such date for rental of a unit in the proposed project, before accepting any rent or deposit from the prospective tenant.

(`78 Code, § 17.83.080.) (Ord. 1589 § 1 (part), 1981.)

   The City Council may by resolution establish fees to cover costs of mailing and publishing required notices and for otherwise processing applications for condominium conversion projects.

(`78 Code, § 17.83.090.) (Ord. 1589 § 1 (part), 1981.)