The purpose of this chapter is as follows:

1. To regulate conversion of apartments and other forms of rental housing units to condominiums and other common interest developments in order to provide for the housing needs of all economic segments of the community;
2. To ensure that such conversions do not conflict with the goals or policies of the General Plan of the City of Cupertino;
3. To provide tenant and buyer protection relating to displacement and relocation of renters, ensuring that purchasers are informed regarding the structural integrity of buildings and the on-site utility system, and ensuring that such buildings and utility systems reasonably comply with all current codes which may directly impact the health and safety of future residences, including codes related to noise and insulation standards.

(Ord. 2085, § 2 (part), 2011; Ord. 1601, Exh. A (part), 1992)

No apartment project may be converted to a common interest development otherwise than in conformance with the provisions of this chapter.

(Ord. 2085, § 2 (part), 2011; Ord. 1601, Exh. A (part), 1992)

1. Community Impacts.
   1. Residential Displacement.
      1. In no case shall an apartment project be converted to a common interest development unless and until it can reasonably be demonstrated that comparable replacement housing exists within the housing market area to accommodate those residents displaced as a direct result of the proposed conversion. The developer shall provide a relocation/displacement plan which illustrates that sufficient replacement housing is available in the housing market area within a price range which is equal to or is less than twenty-five percent of the household income of the tenants to be displaced, or not to exceed the rent being paid for the existing rental unit to be converted, whichever is higher.
      2. As used in this section “housing market area” means that area bounded by Fremont Avenue located in the City of Sunnyvale, to the north, Lawrence Expressway to the east, Prospect Road to the south, hence along a line generally following the westerly boundary of the Cupertino Urban Service Area northerly to Highway 280, hence easterly along Highway 280 to Foothill Boulevard, hence northerly along Foothill Boulevard to Homestead Road, hence easterly along Homestead to Highway 85, hence northerly along Highway 85 to Fremont Avenue.
      3. Replacement housing must be shown to meet any special needs of disabled tenants, which are presently available in the project proposed to be converted, such as facilities for the handicapped, elderly, families with children, and availability of public transportation for the elderly or residents who do not own an automobile. The plan shall also demonstrate that all other provisions relating to tenant protection addressed in the chapter have been fulfilled.
      4. A developer may meet the above requirements through the provision of mitigating factors to diminish the number and/or aid relocation of, displaced tenants within the project. Such mitigating measures may include, but are not limited to, discounting the price of project units to tenant buyers, offering a moving allowance, extending leases, or providing below-market-rate units.
      5. Notwithstanding the above provisions, in no case shall an apartment house be converted to a common interest development when the vacancy rate for apartment houses within the housing market area is less than five percent at the time of application and has averaged five percent over the past six months as determined by surveys conducted by the Director of Community Development.
   2. Conformity with the General Plan. No conversion of apartment houses to community houses to common interest developments shall be permitted unless and until the City Council of the City of Cupertino finds that the proposed conversion will not conflict with the housing goals and policies of the General Plan and will not adversely impact the local school system.
   3. Prohibition of Discriminating Against Prospective Buyers with Children. In no case shall a common interest development which has been converted, and which can reasonably accommodate children, as determined in each case by the City Council, limit initial sales to households or individuals without children.
2. Tenant Protection.
   1. The developer shall provide each tenant an irrevocable, nontransferable, preemptive right to purchase a unit or right of exclusive occupancy at a price not greater than the price offered to the general public for such unit. Such right shall be irrevocable for a period of ninety days after the commencement of sales or the issuance of the final public report by the real estate commissioner. Tenants shall have the right to the unit presently occupied and then to other units in the project only after they have been declined for purchase and vacated by the occupying tenants. In no case shall an existing tenant have a preemptive right to more than one unit.
   2. The developer shall offer a ninety-day extension of tenancy after the expiration of a lease or rental agreement which would expire prior to or at the time of commencement of sales or issuance of the final public report by the real estate commissioner.
   3. The developer shall permit a tenant to terminate any lease or rental agreement without any penalty whatsoever after notice has been given of the intention to convert to a common interest development if such tenant notifies the developer in writing thirty days in advance of such termination.
3. Buyer Protection. The developer shall furnish each prospective purchaser of a unit, a true copy of the conditional use permit issued under this chapter and a copy of each of the following informational documents (the permit and documents shall be printed in Spanish or the purchaser’s native language if requested):
   1. Property report;
   2. Structural pest control report;
   3. Structural report and building department report;
   4. Building history report;
   5. Statement of compliance (Form 643) pursuant to 10 California Administrative Code, Section 2792.9, or its successor, relating to operating and maintenance funds during startup;
   6. Soils report as determined in each case by the Director of Planning and Development;
   7. Certificate of compliance and occupancy.
4. Building and Site Improvements.
   1. All private streets, driveways and parking areas for the common interest developments shall be improved and constructed with a structural section and site dimensions in accordance with the standards of the City of Cupertino and shall be designed to ensure that access for municipal services shall not be denied any dwelling unit therein by reason of deteriorated or impassable private streets, driveways or parking areas, as determined by the Director of Public Works or his or her designee.
   2. Sewage collection and water distribution lines on private property and property under common ownership shall be covered by one of the following responsibilities.
      1. All lines owned and maintained by the corporations shall be constructed to the City of Cupertino Standard Specifications for Public Works. Water metering and billing shall be provided at each individual townhouse lot as well as for the entire development using a master meter. The difference between the sum of the individual meters and the reading of the master meter will be billed to the corporate structure. A separate sewer lateral shall be provided to serve each individual parcel.
      2. All lines to be owned and maintained by the City of Cupertino, a private water utility and/or the Cupertino Sanitary District shall be placed in asphalt concrete driveways, or a covered concrete line trench, acceptable to the Director of Public Works, or appropriate representation of the private water utility or sanitary district (with the necessary public utility easement running through the project) so as to provide accessibility for the maintenance of the lines. A water meter and sewer lateral shall be provided to serve each individual parcel.
      3. In cases of conversion to a common interest development not involving individual ownership of separate parcels (e.g., community apartments, stock cooperatives, planned developments, etc.), separate utility services will not be required. In these cases, utilities will be billed to the homeowners association and a cash deposit to secure payment of the bill will be required.
   3. Undergrounding Requirements. All structures being converted from individual, corporate or partnership ownership of apartment houses to common interest developments shall, within the exterior boundary lines of such property, have all electrical, communication and similar distribution, service wires and/or cables placed underground.
   4. Compliance with Codes. The design, improvement and/or construction of a common interest development shall conform to and be in full accordance with all requirements of all building, fire and housing codes, zoning provisions and other applicable local, State or federal laws or ordinances relating to protection of public health and safety, in effect at the time of the filing of the tentative map. Also, any violations of the latest adopted edition of the Uniform Housing Code as prepared by the International Conference of Building Officials, or its successor, relating specifically to provisions protecting health and safety of residents, shall be corrected, and any equipment or facilities which the Building Official determines are deteriorated or hazardous shall be repaired or replaced. In particular, the developer shall repair or replace any damaged or infested areas in need of repair or replacement as shown in the structural pest report. The interpretation of what constitutes a hazard to public health and safety shall be made by the Director of Community Development, or his or her designee.
   5. Separate Metering. The consumption of gas and electricity within each dwelling unit shall be separately metered so that the unit owner can be separately billed for each utility. The requirements of this subsection may be waived where the Director of Community Development finds that such would not be practical or reasonable. In all cases, a water shutoff valve shall be provided for each unit.
   6. Shock Mounting of Mechanical Equipment. All permanent mechanical equipment, including domestic appliances, which is determined by the building official to be a source or 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 Building Official to lessen the transmission of vibration and noise.
   7. Separate Electrical Panel Boards. Each unit shall have its own panel board of adequate capacity to accommodate all electrical outlets which serve that unit.
   8. Impact Sound Insulation. The applicant/owner shall demonstrate that wall and ceiling assemblies conform to the sound insulation performance criteria promulgated in Title 25, California Administrative Code, Section 1092, or its successor, and that any floor covering which is replaced similarly provides the same or greater insulation qualities.
   9. Storage Requirements. Private, enclosed, weatherproofed and lockable outdoor storage space shall be provided for each dwelling unit according to the following schedule:

      Number of Bedrooms	Minimum Space in Cubic Feet	Least Dimension
      Studio or 1	150	2 feet
      2	200	2 feet
      3	250	2 feet
      4	300	2 feet

      The above space shall be provided in the garage or parking area or contiguous to each unit. This requirement may be waived by the Director of Community Development if it is determined that sufficient storage space exists to reasonably attain this standard.
   10. Private and Common Area Open Space. The adequacy of open space shall be reviewed in terms of area and privacy standards. Private outdoor space shall be provided for each unit, where practical. The amount of space shall be determined in each case by the size of the unit and amount of common open space. Adjoining units shall be redesigned or landscaped in such a manner so as to preclude visual intrusion into private outdoor yards or interior spaces, where practical.
   11. Noise Mitigation. Appropriate site design and construction techniques shall be utilized to ensure isolation from excessive noise sources outside of the project boundary and to ensure acoustical privacy between adjoining units. If the Director of Community Development determines that an excessive external noise source exists, the developer shall retain an acoustical engineer to evaluate the noise impact on the proposed residential development and develop mitigation measures. The construction shall comply with the applicable City ordinances and State codes relating to sound transmission control to ensure acoustical privacy between adjoining dwelling units.
   12. Interim Maintenance Standards. The developer shall be responsible for improving and maintaining the structures and landscaping in accordance with the approved architectural and landscaping plans and good maintenance practices prior to turning them over to the homeowners association. A performance bond shall be collected to ensure compliance with this requirement.

(Ord. 17-2165, § 13 (part), 2017; Ord. 2085, § 2 (part), 2011; Ord. 1784, (part), 1998; Ord. 1601, Exh. A (part), 1992)

1. Off-Street Parking. The project shall provide parking consistent with the multi-family zoning district and the owner shall demonstrate that additional spaces exist to reasonably accommodate guest parking.
2. Applicability of City Ordinances Regulating Parking of Trailers and Recreational Vehicles, Etc. Chapter 19.124, regulating parking and trailers, repairing vehicles, etc., shall apply to the private street(s) and to all parking along such street(s). The parking of recreational vehicles such as boats, trailers, etc., shall be prohibited throughout the entire development unless such parking is within an enclosed area. Vehicular curb parking along the private street(s) shall be prohibited except in designated areas. Appropriate “No Parking” signs shall be installed by the applicant.

(Ord. 17-2165, § 13 (part), 2017; Ord. 2085, § 2 (part), 2011; Ord. 1601, Exh. A (part), 1992)

1. In addition to the requirements of Title 18 of this code (Subdivisions) and the Subdivision Map Act, an application for the conversion of rental housing into any common interest development shall require the submittal of the following data, which data must be submitted to the Director of Community Development at the same time the tentative map is submitted:
   1. A complete legal description of the property;
   2. Certification that all tenants in any buildings or structure proposed to be converted have been notified individually and in writing prior to the time of filing an application hereunder;
   3. A boundary map showing the existing topography of the site and the location of all existing easements, structures and other improvements, and trees over four inches in diameter;
   4. The proposed organizational documents. In addition to such covenants, conditions and restrictions that may be required by the Bureau of Real Estate of the State of California pursuant to Title 6 (Condominiums) of the Civil Code or other State laws or policies, the organization documents shall provide for the following:
      1. Conveyance of units,
      2. Assignment of parking and management of common areas within the project,
      3. A proposed annual operating budget containing a sinking fund to accumulate reserve funds to pay for major anticipated maintenance, repair or replacement expenses,
      4. FHA regulatory agreement, if any,
      5. The most recent balance sheet of the association,
   5. A provision that the annual assessments to members of any association shall provide for penalties for late payments and reasonable attorney’s fees and costs in the event of default of the members;
   6. A provision that allows the association to terminate the contract of any person or organization engaged by the developer to perform management or maintenance duties after any association assumes control of the project or any time thereafter;
   7. A property report describing the condition and estimating the remaining useful life of each of the following elements of each structure situated within the project proposed for conversion: roofs, foundations, exterior paint, paved surfaces, mechanical systems, electrical systems, plumbing systems, including sewage systems, sprinkler systems for landscaping, utility delivery systems, central or community heating and air conditioning systems, fire protection systems including any automatic sprinkler systems, alarm systems, or standpipe systems, and structural elements. Such report shall be prepared by a registered civil or structural engineer, or a licensed general building contractor or general engineering contractor;
   8. A structural pest report prepared by a licensed structural pest control operator pursuant to Section 8516 of the CA Business and Professions Code, relating to written reports on the absence or presence of wood-destroying pests or organisms;
   9. A structural report describing the physical elements of the project that also identifies any structural elements which are known to be structurally defective or unsafe so as to impose a hazard to the health and safety of the occupants or users of the improvements, with the final map submittal. The Director of Community Development shall maintain a form containing a reasonable list of physical elements to be described in the report, which form shall be made available to the applicant. The applicant shall arrange for project inspections by the Building Department to verify the accuracy of the deficiencies noted in the structural report. The Building Official shall prepare a report detailing building code deficiencies or other health and safety deficiencies which must be corrected prior to sale of units of occupancy;
   10. A building history report including the following:
       1. The date of construction of all elements of the project,
       2. A statement of the major uses of the project since construction,
       3. The date and description of each major repair of any element since the date of construction,
       4. The date and description of each major renovation of any element since the date of construction,
       5. A statement regarding current ownership of all improvements and underlying land,
       6. The name and address of each present tenant of the project,
       7. Failure to provide information required by subsections A1 through A6 of this section, inclusive, shall be accompanied by an affidavit, given under penalty of perjury, setting forth in detail all efforts undertaken to discover such information and all reasons why such information cannot be obtained;
   11. A rental history detailing the size in square footage, the current or last rental rate, the monthly rental rate for the preceding two years, and the monthly vacancy over the preceding two years of each rental unit proposed to be converted;
   12. Condominium Plan. The application for final subdivision map shall include a copy of the condominium plan prepared pursuant to the CA Civil Code, Section 1351. The plan shall be submitted for the information of the local governing body and need not be part of the subdivision map;
   13. Project Organization. A written description regarding the proposed project organization including the use and control of the common elements and recreation facilities within the project shall be submitted with the tentative map. The statement shall detail any proposed control of common facilities to be retained by the developer or to be owned or maintained by any other organization other than the homeowners association or unit owners.
   14. True Copy of Application for Final Public Report and Supplemental Questionnaire. The application shall include the following information, except that if the information required to be furnished below is not available at time of application, as a condition of approval of the permits issued pursuant to this Chapter, the developer shall provide this information to the City within ten days of issuance by the Bureau of Real Estate:
       1. A true copy of each application submitted to the Bureau of Real Estate of the State of California for issuance of a final public report for the project proposed for conversion, including all attachments and exhibits required pursuant to Section 11011 of the Business and Professions Code.
       2. A true copy of the statement of compliance (Form 643, as amended) pursuant to 10 California Administrative Code, Section 2792.9, or its successor, relating to operating and maintenance funds during the early stages of ownership and operation by the homeowner’s association.
       3. A statement whether the developer will provide any capital contribution to the homeowner’s association for deferred maintenance of the common areas, and if so, the sum and date on which the association will receive said sum;
       4. A true copy of the supplemental questionnaire for apartments converted to common interest developments submitted to the Bureau of Real Estate of the State of California, including all attachments and exhibits.
   15. Relocation Displacement Plan. A relocation displacement plan shall detail the number of residents which will be displaced as a result of the proposed conversion and document the reasonable availability of comparable replacement housing in the Cupertino area within a rental range equal to the range which the tenants have paid as detailed in a rental report (See Section 19.116.050A11) or within a price range which is equal to or less than twenty-five percent of the income range of each household to be displaced as a result of the conversion whichever is higher. Additionally, replacement housing must be shown to meet any special needs, which are presently available in the project, of displaced tenants such as facilities for the handicapped, elderly, households with children, and availability of public transportation for the elderly or resident buyers who are temporarily displaced pending completion of improvements to the units being purchased;
   16. Soils Report. A true copy of the soils report originally prepared for the subject property. In cases where a soils report has never been prepared or when information in previous reports is considered insufficient, then the developer shall provide a soils report prepared by a registered civil engineer, or equivalent, which details information as determined by the Director of Public Works;
   17. All information required by Chapter 18.16 or Chapter 18.20, as the case may be, Chapter 19.12, Chapter 19.80, and such information which the Planning Commission or the Director of Community Development determines is necessary to evaluate the proposed project.

(Ord. 17-2165, § 13 (part), 2017; Ord. 2085, § 2 (part), 2011; Ord. 1601, Exh. A (part), 1992)

1. Zoning. Any apartment house project proposed to be converted to a common interest development shall be rezoned to the R1C (single-family cluster) or P(Res) (planned development project with residential intent) zoning district.
2. Use Permit and Tentative Map or Parcel Map Required. No conversion shall be permitted unless and until a conditional use permit and tentative map or parcel map has been applied for and issued pursuant to and in accordance with the provisions of this chapter and the requirements of the Subdivision Map Act or its successor.
3. Property and Structural Pest Report.
   1. After reviewing the property, structural and structural pest reports required to be submitted pursuant to Section 19.116.050A8 and inspecting the structures situated within the project when he or she deems such inspection necessary, the Building Official shall identify all items if evidenced by such reports and/or inspection to be hazardous to the life, health or safety of the occupants of such structure within the project, or the general public. Each permit issued hereunder shall require all of such items to be corrected to the satisfaction of the Building Official.
   2. The Building Official shall review the property report and may require its revision and resubmission if he or she determines that substantial evidence shows that any statement therein is without foundation or fact. The report may be revised to reflect improvement, repair or replacement.
4. Project Organization Document Review. The project organization documents shall be submitted to the City Attorney for a determination that such documents comply with the requirements of this chapter and the applicable State laws.
5. Compliance with Housing, Building Codes and Fire Regulations. If the proposed project does not comply with the provisions of the State of California Uniform Building Code and regulations of the Santa Clara Central Fire Protection District, and/or the Building Official identifies items to be corrected as provided in the above, any use permit issued pursuant to this part shall require the developer to furnish a bond, in a penal amount equal to the reasonable estimated cost to bring their project into compliance with such codes, such fire regulations and/or such identified items to be corrected. The bond shall run in favor of the individual purchasers and the homeowners association and shall provide for reasonable attorney’s fees in the event of default by the principal. The City shall hold the bond pending issuance of the certificate of completion.
6. Public Hearings.
   1. The City Council is the approval authority for condominium conversion applications with a recommendation for approval or denial from the Planning Commission.
   2. If the City Council approves the proposed conversion, the applicant will be required to submit detailed plans with an application for Architectural and Site Approval for any exterior alterations or improvements to the buildings and/or landscaping. The Planning Commission will make a final recommendation to the City Council regarding the improvements. The City Council’s final action will be a review of the architectural plan to determine approval or denial of the project.
   3. The final map for the project will be reviewed in compliance with Title 18, Subdivisions of the Municipal Code.
7. Letter Certifying Compliance. The Director of Community Development shall cause a final inspection of all buildings and structures to be made, upon request by the developer, to determine that the requirements of this chapter have been fulfilled. The Building Official shall then mark the inspection report to show the corrections, repairs and replacements which have been made. If complete, the Director will cause to be issued a letter certifying compliance with all of the conditions and approvals and with this title and authorize sale and/or occupancy of the units. No building or unit applied for under this chapter shall be sold without the letter certifying compliance and approving occupancy.

(Ord. 17-2165, § 13 (part), 2017; Ord. 2085, § 2 (part), 2011; Ord. 1601, Exh. A (part), 1992)