Lake Forest City Zoning Code
CHAPTER 9
172 CONDOMINIUM CONVERSIONS
§ 9.172.010 Purpose of chapter.
The purpose and intent of this chapter is to:
A.
Ensure the provision of a variety of housing opportunities (ownership and rental) in Lake Forest including low density single-family homes, moderate density townhomes, higher density apartments and condominiums and mobilehomes to fulfill regional housing needs in accordance with the City's Housing Element, Policy 1.10;
B.
Provide standards and criteria for regulating the conversion of rental units to condominium, community apartment or stock cooperative types of ownership; and
C.
Assist tenants displaced from rental units converted to owner-occupied units.
(Ord. 176 § 1, 2007)
§ 9.172.020 Definitions.
means condominium projects, community apartment projects and stock cooperatives, as defined in Section 1351 of the California Civil Code.
means a project for which a valid map and use permit application have been submitted to the City after the adoption of the ordinance codified in this chapter to divide one or more parcels of real property into condominiums and the creation of separate ownership of the units therein with a separate interest in the space within all structures thereon. This shall not apply to those conversion projects for which a valid map was filed with and accepted by the City prior to adoption of the ordinance codified in this chapter.
means persons defined in United States Code, Title 42, Section 423 and shall also include handicapped persons, as defined in the California Health and Safety Code, Section 50072.
means a tenant who has had a valid lease in a unit that is proposed to be converted in connection with a condominium conversion project for a minimum of 36 months prior to the first tenant notification prior to filing the application for a condominium conversion project pursuant to Section 66427.1(b) of the Subdivision Map Act.
means income does not exceed 80% of the then-current area median household income of the County of Orange adjusted for family size by the State Department of Housing and Community Development in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937.
means income does not exceed 120% of the then-current median household income of the County of Orange adjusted for family size by the State Department of Housing and Community Development in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937.
means the declaration of restrictions, articles of incorporation, by-laws and any contracts for the maintenance, management or operation of all or any part of a Condominium Conversion Project.
means any person who is 62 years of age or older.
means those Eligible Tenants, which also qualify as disabled, senior citizen, Low Income, or Very Low Income individuals as defined under California law.
means those provisions set forth in Government Code Section 66410 et seq., as amended or superseded.
means the particular area of land or airspace that is designed, intended or used for exclusive possession or control of individual owners or occupiers.
means the number of vacant apartment dwelling units being offered for rent or lease in the City of Lake Forest shown as a percentage of the total number of apartment dwelling units offered for or under rental or lease agreement in the City. Said vacancy rate shall be as established by a public or private service that monitors apartment vacancies within the City.
means income that does not exceed 50% of the then-current area median household income of the County of Orange adjusted for family size by the State Department of Housing and Community Development in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937.19.64.020.
(Ord. 176 § 1, 2007)
§ 9.172.030 General requirements.
A.
Where Permitted. If approved under the provisions of this chapter and Title 9 (Planning and Zoning), Condominium Conversion Projects may be allowed in any district in which residential uses are permitted, including specific plan areas, subject to the approval of a condominium conversion use permit, a tentative map, and all other provisions and requirements of this Chapter.
B.
Review Responsibilities. Condominium Conversion Projects containing five or more units shall be approved by the City Council with a condominium conversion use permit. A tentative and final tract map shall be required for all subdivisions creating five or more condominiums, five or more parcels as defined in Section 783 of the California Civil Code, a community apartment project containing five or more parcels, or for the conversion of a dwelling to a stock cooperative containing five or more dwelling units. Condominium Conversion Projects use permits shall be reviewed by the City Council after review by the Planning Commission.
C.
Applicable Standards. Condominium Conversion Projects shall conform to: (1) the applicable standards and requirements of the zoning district in which the project is located at the time of approval; (2) Chapter 9.172 of the Lake Forest Municipal Code; and (3) all other applicable local, State, and/or Federal laws.
(Ord. 176 § 1, 2007)
§ 9.172.040 Tenant notification.
A.
The applicant for a Condominium Conversion Project shall be responsible for notifying existing and prospective tenants of the proposed conversion in accordance with Sections 66452.8 and 66452.9 of the Subdivision Map Act. The applicant shall give notice to tenants residing in units proposed to be converted that a final map for the proposed conversion has been approved in accordance with Section 66427.1(b) of the Subdivision Map Act. If the Condominium Conversion Project is approved, the applicant shall give all tenants written notice of the termination of their tenancies in accordance with Section 66427.1 of the Subdivision Map Act.
B.
All Other Notices. The applicant shall give all other notices required by applicable Federal, State and local law.
(Ord. 176 § 1, 2007)
§ 9.172.050 Standards for condominium conversions.
Condominium conversions shall conform to the applicable local, state, and Federal laws in place at the time of the conversion, subject to any valid, applicable exceptions thereto. Additional General Requirements:
A.
NPDES. The project shall comply with current water quality requirements as determined by the City Building Official or Public Works Director, as applicable.
B.
Surveying. Permanent lot stakes and tags shall be installed at all lot corners by a California licensed surveyor or civil engineer unless otherwise required by the Director of Public Works.
(Ord. 176 § 1, 2007)
§ 9.172.060 Tenant purchase option.
The property owner shall provide each tenant of a rental unit to be converted pursuant to this chapter with an exclusive right to purchase his or her respective unit in accordance with Section 11018.2 of the Business and Professions Code and Section 66427.1 of the Subdivision Map Act.
(Ord. 176 § 1, 2007)
§ 9.172.070 Tenant relocation plan.
The applicant shall submit a tenant relocation plan containing and complying with the following:
A.
A detailed report describing the relocation and moving assistance information to be given to each tenant. The report shall state in detail what assistance will be provided for special category tenants.
B.
The applicant shall provide a tenant information handout and a questionnaire to each tenant with an envelope, postage prepaid, addressed to the Community Development Department. The questionnaire shall include questions regarding tenant income, length of tenancy, age, disability, and household size, and shall request that the tenant return the completed form directly to the Community Development Department.
(Ord. 176 § 1, 2007)
§ 9.172.080 Consumer protection provisions.
In addition to the tenant protection provisions set forth in the Subdivision Map Act, the applicant shall comply with the following provisions, as conditions of any condominium conversion use permit for a condominium conversion project approved pursuant to this chapter:
A.
Relocation Assistance. The applicant shall offer to each eligible tenant a plan for relocation to alternate housing. The relocation plan shall provide for the following:
1.
Assistance to each eligible tenant in locating alternate housing, including but not limited to, providing availability reports where necessary.
2.
Payment of a relocation fee to each eligible tenant who does not choose to purchase a condominium unit. The payment shall be a one-time lump sum cash payment of at least $1,500 in 2006 (calendar year) dollars. An otherwise eligible tenant is not entitled to a relocation fee pursuant to this subsection if the tenant has been evicted for just cause. In addition, a cash payment of actual deposit costs not to exceed $100 in 2006 dollars shall be made to each eligible tenant who does not choose to stay for utility deposits and hook-up costs. Cash payment minimums and deposit costs will be adjusted annually, in accordance with the Consumer Price Index for all urban consumers published by the United States Bureau of Labor Statistics for the Los Angeles-Long Beach-Anaheim metropolitan area. The applicant shall submit appropriate documentation to demonstrate that the cash assistance provided is the equivalent to 2006 dollars in value.
3.
In the case of eligible tenants who are also special category tenants as defined in Section 9.172.020 herein, the applicant shall provide to the displaced special category tenant, in addition to the relocation fee specified in subsection (A)(2) of this section, a one-time lump sum payment not to exceed a total of $1,000 in 2006 dollars, of the first month's rent in the alternate housing, if required upon moving in; and the transfer to the new complex of all key, utility, and pet deposits to which the special category tenant is entitled upon vacating the unit.
4.
The relocation assistance payments referenced in subsections (A)(2) and (A)(3) of this section shall be paid at the time the tenant vacates the unit.
5.
The applicant's offer to each eligible tenant of relocation assistance 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 the application for approval of conversion.
B.
Antidiscrimination. 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.
(Ord. 176 § 1, 2007)
§ 9.172.090 Applications for condominium conversions.
Recognizing that the conversion of existing structures which have been previously occupied and constructed as rental units presents unique problems to present tenants and future buyers, the application for a condominium conversion project use permit shall include the following information in addition to that required by other sections of this Code:
A.
Pest Inspection Report. A report by a California-licensed structural termite and pest control specialist certifying whether or not all attached and detached structures are free of infestation and structural damage caused by pests and dry rot.
B.
Building History Report. A building history report identifying the date of construction of all elements of the project and permit history.
C.
Plot Plans. Plot plans and elevations, fully dimensioned, indicating the type and location of all buildings and structures, parking and landscape areas and signs. Screening, landscape and irrigation plans shall be included in the plans.
(Ord. 176 § 1, 2007)
§ 9.172.100 Affordable housing.
The housing element of the City's General Plan encourages residential developments to incorporate a minimum of 15% affordable units. Applicants shall be required to submit an affordable housing implementation plan (AHIP) to the Director of Community Development prior to issuance of building permits for any condominium conversion project. If no building permits are required, the AHIP shall be submitted to the Director of Community Development prior to approval of the final subdivision map.
In the event that recorded covenants and/or affordable housing agreements already exist for persons and families of moderate income, low income and/or very low income in a multifamily complex or development which an applicant seeks to convert pursuant to this chapter, the applicant is required, and must demonstrate in its AHIP, that the moderate income, low income and very low income unit(s) will remain available to persons and families of moderate income, low income and very low income, either by the recordation of new affordability covenants for the newly converted units, which shall be subject to prior review and approval by the Director of Community Development and the City Attorney, or by continuing to rent converted units to qualified moderate income, low income and very low income persons and families for the duration of the remaining recorded covenants and/or affordable housing agreements.
(Ord. 176 § 1, 2007)
§ 9.172.110 Tentative map review procedures.
A.
List of Tenants. In addition to the standard application requirements for tentative maps, the applicant shall submit a complete mailing list of all tenants occupying the subject property and two corresponding sets of stamped addressed envelopes. The Director shall mail a public hearing notice for the tentative map hearing to each tenant on the mailing list in accordance with the procedures of the Subdivision Map Act.
B.
Tentative Map Review. Tentative maps shall be approved or denied by the Planning Commission. Decisions on tentative maps for condominium conversion projects shall be governed by the Subdivision Map Act and this chapter.
C.
Council Findings for Residential Conversions. A final map for a condominium conversion shall not be approved unless the City Council makes all of the findings set forth in Section 66427.1 of the Subdivision Map Act regarding tenant notification, right to purchase and other requirements, as well as all other applicable local, State, and Federal laws.
(Ord. 176 § 1, 2007)
§ 9.172.120 Findings-Condominium projects.
The City Council shall not approve a condominium conversion project and use permit unless it finds all of the following:
A.
That the condominium conversion project is consistent with the applicable findings specified in Section 7-9-150.3 of this Code.
B.
That 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 six months.
C.
That the average rental vacancy rate in apartment dwelling units within the City during the 12 months preceding the filing of the application is equal to or greater than 4%. Upon submission of the application, the Director of Community Development shall obtain, at applicant's sole expense, a written study or report from an objective, unbiased third party which provides such studies and/or reports as part of its ordinary course and scope of business on a statewide or nationwide basis, which, in the Director's reasonable opinion reflects, that the average rental vacancy rate in apartment units then available in the City is 4% or higher. If the average rental vacancy rate in the City during the 12 months preceding the filing of the application is less than 4%, the condominium conversion project shall be denied unless the City Council determines that at least one of the following overriding considerations exist:
1.
That the apartment complex or development, or any portion thereof, is in a deteriorated or unsafe condition, and/or constitutes a public nuisance because it is a health and safety hazard to its occupants and guests; or
2.
Evidence has been submitted that at least 50% plus one of the eligible tenants have voted to recommend approval of the conversion; or
3.
That the evidence presented to the City Council as part of the application for the condominium conversion project overwhelmingly complies with the policies and intent of this chapter. Applicants shall be able to request that the City Council allow for a condominium conversion project to be considered for approval where the vacancy rate and/or tenant approval percentage requirements contained in subsections C and (C)(2) herein have not been met but have been substantially complied with.
(Ord. 176 § 1, 2007)
§ 9.172.130 City Council determination.
The City Council shall hold a public hearing on a condominium conversion project, and the decision of the City Council shall be final and subject to appeal only by way of writ of mandate to a court of appropriate jurisdiction. A condominium conversion project use permit may be approved subject to such conditions as the City Council may prescribe.
(Ord. 176 § 1, 2007)
§ 9.172.140 Lapse of permit.
A.
A condominium conversion use permit shall lapse and shall become void two years following the date on which the conversion use permit became effective, unless prior to the expiration of two years, either: (1) separate property interests have been created and recorded for each unit; (2) a building permit has been issued and reconstruction or other work necessary as a result of the conversion is commenced and diligently pursued toward completion on the site which was the subject of the conversion permit application; or (3) a certificate of occupancy has been issued for the structure(s) which was the subject of the conversion use permit application.
B.
A conversion use permit subject to lapse may be renewed for an additional period of one year at the discretion of the City Council, provided that 30 days prior to the expiration date, an application for renewal of the conversion use permit is filed with the City Council.
(Ord. 176 § 1, 2007)
§ 9.172.150 Exemptions.
For residential developments, the conversion of existing apartments to a condominium project shall be exempt from the requirements of parkland dedication or parkland in-lieu fees if, on the date of conversion, the apartment complex is at least five years of age and no additional dwelling units are to be added as part of the conversion as provided in Section 66477(d) of the Subdivision Map Act.
(Ord. 176 § 1, 2007)