A.

Findings. Residential condominiums, community apartments and stock cooperatives constitute separate dwelling units which usually are in close proximity to one another. The area surrounding dwelling units is a common area that is managed and maintained by the individual owners in accordance with the rules of an association agreement. This mix of individual and common ownership is different from single-family residences and apartment house use. In single-family homes the dwelling is physically separate and the yard areas are under the control of the owner. In conventional apartments there is an implied guarantee of continuous and effective management of the project. The occupant is not the owner of the unit and does not have the financial or problems of use, maintenance or resale associated with ownership. The unique nature of condominium, community apartment and stock cooperative projects tends to magnify the effects associated with higher urban densities to the point where they may have deleterious effects, upon the occupant, seller and buyer who often do not fully appreciate the implications of condominium, community apartment and stock cooperative living and ownership. This may lead to conditions of mismanagement, neglect and blight that impact upon the public health, safety, welfare and economic prosperity of the larger community. To avoid these problems, these projects should be treated differently from other multiple-family dwelling developments or other structures which are not residential condominium, community apartment and stock cooperative projects. The implementation of this section requires that special requirements for the conversion of existing multiple-family rental housing projects to residential condominiums, community apartments and stock cooperatives be adopted.

B.

Purpose. The purpose of this chapter is to:

1.

Establish criteria for the conversion of existing multiple-family rental housing to condominiums, community apartments, stock cooperatives and other subdivision which results in the conversion of existing rental housing;

2.

Reduce the impact of conversions on residents in rental housing who may be required to relocate due to the conversion by providing procedures for notification and adequate time and assistance for relocation;

3.

Assure that purchasers of converted housing have been properly informed as to the physical condition of the structure which is offered for purchase;

4.

Ensure that converted housing achieves a high degree of appearance, quality and safety and is consistent with the goals of the town;

5.

Provide a desirable balance of ownership and rental housing and a variety of choices of tenure, type, price and location of housing consistent with the general plan;

6.

Attempt to maintain a supply of rental housing for low and moderate income persons.

(Prior code § 8-4401)

In this chapter unless the context otherwise requires:

"Association" is an organization composed of persons who own a condominium unit(s) or right of exclusive occupancy in a community apartment of stock cooperative and who are organized to operate and maintain common areas for condominiums.

"Common area" is the area that is available to the common use of unit owners in an entire project, except the individual units.

"Community apartment" is a residential unit within a community apartment project.

"Community apartment project" (as defined in Section 11004 of the Business and Professions Code) is a development of real property which an undivided interest in the land is coupled with the right of exclusive occupancy of a designated residential unit located on it. A community apartment project shall be treated in the same way as a residential condominium for the purposes of this chapter.

"Condominium" is an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property and a separate interest in space in a residential building such as an apartment.

"Condominium documents" are the covenants, conditions and restrictions, the description of the project elements, and other documents establishing a plan for condominium ownership.

"Conversion" is a change in the type of ownership of a parcel of improved real property to a condominium, community apartment or stock cooperative project.

"Open space" is open space on the project which is to be used for leisure and recreational purposes for the use and enjoyment of occupants of units on the project and to which the occupants have the exclusive right of use and enjoyment. An accessory structure such as a swimming pool, recreational building and landscaped area may be included as open space.

"Stock cooperative project" is a development of real property in which ownership is held by a corporation formed or availed primarily to hold title to improved property where the shareholders receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation and the right of occupancy is transferred concurrently with the transfer of shares in the corporation or membership certificate. A stock cooperative shall be treated the same way as a condominium for purposes of this chapter.

(Prior code § 8-4402)

The conversion of existing multiple-family rental housing to condominiums, community apartments, stock cooperatives and any other subdivision which is a conversion of existing rental housing is subject to the additional requirements provided in this chapter.

(Prior code § 8-4411)

A report on the physical elements of each structure and facility shall be submitted with the tentative subdivision or parcel map. The report shall include, but is not limited to, the following:

A.

A report detailing the condition of each element of the property including foundations, roofs, electrical, plumbing, utilities, walls, ceilings, heat insulation factor, windows, recreational facilities, sound transmission characteristics between units, mechanical equipment, parking facilities and appliances.

Regarding each such element, the report shall state, to the best knowledge or estimate of the applicant, when the element was built; the condition of each element, when the element was replaced, the cost of replacing the element and any variation of the physical condition of the element from the current zoning and from the Housing Code and Building Code in effect on the date that the last building permit was issued for the subject structure. The report shall identify each defective or unsafe element and set forth the proposed corrective measures to be employed;

B.

A report from a licensed structural pest control operator describing the general condition of the entire project to be submitted with tentative map application and a pest infestation and dry rot report on each unit within sixty (60) days of close of escrow for sale of the unit;

C.

A structural engineer's evaluation of the integrity of the foundations. If a soils report was not done at time of original construction or if there has been soil movement since construction, then a report on any know soil and geological conditions regarding soil deposits, rock formations, faults, ground water and landslides in the vicinity of the project, and a statement regarding any known evidence of soils problems relating to the structures. Reference shall be made to any previous soils reports for the site and a copy submitted with the report;

D.

A statement of repairs and improvements to be made by the subdivider necessary to refurbish and restore the project to achieve a high degree of appearance and safety.

(Prior code § 8-4412)

A.

A declaration of covenants, conditions and restrictions which would be applied on behalf of owners of condominium units within the project. The declaration shall include, but not be limited to, the conveyance of units; the assignment of parking; an agreement for common area maintenance, including facilities and landscaping, together with an estimate of initial assessment fees anticipated for maintenance, description of a provision for maintenance of all vehicular access areas within the project, and indication of appropriate responsibilities for maintenance of all utility lines and services for each unit;

B.

Specific information concerning the demographic characteristics of the project, including but not limited to the following:

1.

Square footage and number of rooms in each unit,

2.

Rental rate history for each type of unit for the previous five years,

3.

Monthly vacancy rate for each month during the preceding two years and the amount of turnover of tenants during the preceding two years,

4.

Makeup of existing tenant households, including family size, length of residence, age of tenants, and whether receiving federal or state rent subsidies,

5.

Proposed sale price of units,

6.

Proposed home owners' association fee,

7.

Financing available, and

8.

Names and addresses of all tenants.

When the subdivider can demonstrate that such information is not available, the planning department may modify this requirement;

C.

Signed copies from each tenant of notice of intent to convert, as specified in Section 8.96.140. The subdivider shall submit evidence that a certified letter of notification was sent to each tenant for whom a sighed copy of the notice is not submitted;

D.

Other information which, in the opinion of the planning department, will assist in determining whether the proposed project will be consistent with the purposes of this article.

(Prior code § 8-4413)

A.

Acceptance of Reports. The final form of the physical elements report and other documents shall be as approved by the town. The reports in their accepted form shall remain on file with the planning department for review by an interested person. The report shall be referenced in the subdivision report to the planning commission.

B.

Copy to Buyers. The subdivider shall provide each purchaser with a copy of each report (in its final, acceptable form), except the information required by Sections 8.96.050(B) and (C) before the purchaser executes a purchase agreement or other contract to purchase a unit in the project. The developer shall give the purchaser sufficient time to review each report. A copy of the reports shall be made available at all times at the sales office and shall be posted at various locations, as approved by the town, at the project site.

C.

Hearing. Before tentative map approval, the planning commission shall hold a public hearing. Notice of the hearing shall be given to tenants of the proposed conversion and posted on the property at least ten (10) days before the meeting date.

(Prior code § 8-4414)

Before the close of escrow, the subdivider shall submit the following information to the planning department:

A.

Name, address and phone number of homeowners' association;

B.

Actual sale price of units;

C.

Actual homeowners' association fee;

D.

Number of prior tenants who purchased units;

E.

Number of units purchased with intent to be used as rentals.

(Prior code § 8-4415)

The planning commission shall require that all condominium conversions conform to the municipal code in effect at the time of tentative map approval except as otherwise provided in this article.

Each provision of the municipal code must be met and each violation corrected before approval of the final map or, upon approval of the planning department, funds shall be adequately in escrow or bonded to assure completion of corrective work before the closing of escrow of a unit in the project.

(Prior code § 8-4416)

The planning commission shall require conformity with the standards of this section in approving the map.

A.

Building Regulations. The project shall conform to the applicable standards of the housing code and the building code in effect on the date that the last building permit was issued for the subject structure except as provided in this section.

B.

Fire Prevention.

1.

Detectors. Each living unit shall be provided with approved detectors of products of combustion, other than heat, conforming to the latest UBC standards, and approved by the Moraga fire protection district, mounted on the ceiling or wall at a point centrally located in the corridor or area giving access to rooms used for sleeping purposes.

2.

Maintenance of Fire Protection Systems. Each fire hydrant, fire alarm system, portable fire extinguisher and other fire protective appliance shall be retained in an operable condition at all times.

C.

Sound Transmission.

1.

Shock Mounting of Mechanical Equipment. Permanent mechanical equipment such as motor, compressor, pump and compactor which is determined by the chief of code enforcement to be a source of structural vibration or structure-borne noise shall be shock mounted with inertia blocks or bases or vibration isolators, or both, in a manner approved by the chief of code enforcement.

2.

Noise Standards. The structure shall conform to interior and exterior sound transmission standards of Chapter 35 (Appendix) of the Uniform Building Code. Where present standards cannot be reasonably met, the planning commission may require the applicant to notify potential buyers of the noise deficiency currently existing within these units.

D.

Utility Metering. Each dwelling unit shall be separately metered for gas and electricity. A plan for equitable sharing of communal water metering shall be developed before final map approval and included in the covenants, conditions and restrictions. Where the subdivider can demonstrate that this standard cannot or should not reasonable be met, the planning commission may modify this standard.

E.

Private Storage Space. Each unit shall have at least two hundred (200) cubic feet of enclosed weather-proof and lockable private storage space in addition to guest, linen, pantry and clothes closets customarily provided. The space may be provided in a location approved by the planning department, but should generally not be divided into two or more locations. Where the subdivider can demonstrate for good reason that this standard cannot or should not be met, the planning commission may modify this standard.

F.

Laundry Facilities. A laundry area shall be provided in each unit; or if common laundry areas are provided, each shall consist of not less than one automatic washer and dryer for each five units or fraction. Where the subdivider can demonstrate that this standard cannot or should not be met, the planning commission may modify this standard.

G.

Landscape—Installation and Maintenance. All landscaping shall be installed, restored as necessary, and maintained to achieve a high degree of appearance and quality.

H.

Condition of Equipment and Appliances. The developer shall provide a one-year warranty to the buyer of each unit at the close of escrow on a dishwasher, garbage disposal, stove, refrigerator, hot water tank, and air conditioner that is provided. At such time as the homeowners' association takes over management of the development, the developer shall provide written certification to the association that pool and pool equipment (filter, pumps, chlorinator) and appliances and mechanical equipment to be owned in common by the association are in operable working condition.

I.

Refurbishing and Restoration. Each building, structure, fence, patio enclosure, carport, accessory building, sidewalk, driveway, paved area, landscaped area, and additional element required shall be refurbished and restored as necessary to achieve a high degree of appearance, quality and safety.

J.

Parking.

1.

Spaces Required. Off-street parking shall be provided in accordance with the municipal code except that the number of spaces shall be as follows:

Studio unit ..... 1.5 space per unit

One-bedroom unit ..... 1.5 space per unit

Two or more bedroom unit ..... 2.0 spaces per unit

Where it can be demonstrated that because of the physical limitations of the site, there would result a severe loss of amenities due to required parking, the planning commission may reduce the number of stalls required if it makes a specific finding that a reduction will not result in a deficiency of parking in light of the characteristics of the tenancies and the availability of alternate off-street parking in the vicinity of the site.

2.

Assignment and Use of Required Off-Street Parking Spaces. Required off-street parking spaces shall be permanently and irrevocably specifically assigned to particular units within the project on the basis of the parking spaces required per unit.

To the maximum practical extent, the spaces assigned to each unit shall be contiguous. In no case shall the private storage area of one unit overhang or take its access from the required off-street parking space of another unit. All parking spaces shall be for the use of unit owners. All studio and one bedroom units shall be assigned one parking space and may rent additional spaces from the association as available. An occupant of a unit with two or more bedrooms may rent one parking space back to the association. All parking spaces, except those specifically designated for recreational vehicles, shall be used solely for the purpose of parking motor vehicles as defined by the Vehicle Code of the state of California and shall not be used for trailers, unmounted campers, boats, or other recreational vehicles.

(Prior code § 8-4417)

If the condominium project contains private streets, paths or roadways, provision shall be made for public utility easements over the private street, path or roadway network. The planning commission may require public utility easements adjacent to public streets or over other portions of the project to accommodate fire hydrants, water meters, street furniture, storm drainage, sanitary sewers, water and gas mains, electrical lines, and similar public improvements and utilities. The planning commission may also require access routes necessary to assure that fire fighting equipment can reach and operate efficiently in all areas of the project.

(Prior code § 8-4418)

Each unit within the project shall have an appurtenant private patio, deck, balcony, atrium or solarium with a minimum area of one hundred fifty (150) square feet, except that a studio or one bedroom unit shall have a minimum area of one hundred thirty (130) square feet. The space shall be designed for the sole enjoyment of the unit owner, shall have at least two weatherproofed electrical convenience outlets, and shall have a shape and size that allows for optimal usable space. The space shall be at the same level as, and immediately accessible from, a room within the unit. The planning commission may allow variations from the above dimensional standards where it is shown that the required private open space otherwise meets the intent and purpose of this section.

(Prior code § 8-4419)

The following criteria shall be considered in reviewing the overall design and site layout of the project.

A.

The project should have a comprehensive and integrated design, providing its own open space, off-street parking, and amenities for contemporary living. Insofar as the scale of the project allows, open space, walkways and other areas for people should be separated from parking areas, driveways and areas for automobiles.

B.

Architectural unity and harmony should be achieved both within the project and between the project and the surrounding community so that it does not constitute an adverse disruption to the established fabric of the community.

C.

The layout of structures and other facilities should effect a conservation in street, driveway, curb cut, utility, and other public or quasi-public improvements. Structures should be designed to minimize, within the context of accepted architectural practice, the consumption of natural resources either directly or indirectly, i.e., gas, water, and electricity.

(Prior code § 8-4420)

The planning commission may impose conditions on an approval given which would require that specified modifications designed to bring a structure into compliance with the condominium development standards be required to be made to the structure proposed for conversion.

(Prior code § 8-4421)

A notice of intent to convert shall be delivered to each tenant. Evidence of receipt by each tenant shall be submitted with the tentative map. The form of the notice shall be approved by the planning department and must inform the tenants of all right provided under this article. The form shall contain at least the following information:

A.

Name and address of current owner;

B.

Name and address of the proposed subdivider;

C.

Approximate date on which the tentative map is proposed to be filed;

D.

Approximate date on which the final map or parcel map is to be filed;

E.

Approximate date on which the unit is to be vacated by nonpurchasing tenants;

F.

A detailed explanation of the tenant's right to purchase;

G.

Tenant's right of notification to vacate;

H.

The relocation assistance plan to be implemented;

I.

Statement of no rent increases;

J.

Provision for special cases;

K.

Provision of moving expenses;

L.

Deposit rebate;

M.

Remodeling provisions;

N.

Other information considered necessary by the planning director.

(Prior code § 8-4431)

As provided in Government Code Section 66427.1(b), a present tenant of a unit shall be given a nontransferable right of first refusal to purchase the unit occupied at a price no greater than the price offered to the general public. The right of first refusal shall extend for at least ninety (90) days from the date of issuance of the Subdivision Public Report or commencement of sales, whichever date is later.

(Prior code § 8-4432)

Each nonpurchasing tenant not in default under the rental agreement or lease under which the unit is occupied shall have not less than one hundred eighty (180) calendar days from the approval date of the tentative subdivision map to find substitute housing and relocate. The tenant shall have an additional three months of relocation time for each year, or fractional part thereof, of occupancy up to an additional credit of one year and one hundred twenty (120) days for relocation. The subdivider shall notify each immediately before the time of final map approval of the anticipated date required to vacate the unit and when the one hundred twenty (120) day period begins. Evidence of receipt by each tenant shall be submitted before approval of the final map.

(Prior code § 8-4433)

A tenant's rent shall not be increased for two years from the time of filing the application for the tentative map or until the unit is sold or until the subdivision is denied or withdrawn, whichever occurs first. At the end of the two year period, rent increases are limited to a reasonable amount.

(Prior code § 8-4434)

A.

The subdivider shall provide moving expenses equal to two times the monthly rent to a tenant household living in a unit at the time the tentative map is approved and shall pay the tenant at the time the tenant moves. A tenant is not eligible for moving expenses if he or she: (1) becomes a tenant after tentative map approval; (2) has given notice of intent to move before receiving the subdivider's notice of intent to convert; or (3) has been a resident of the project for less than ninety (90) days.

B.

The subdivider shall provide each tenant with a monthly list of other rentals available in the central Contra Costa County area beginning from the time of tentative map approval until each tenant relocates or decides to purchase a unit.

(Prior code § 8-4436)

After the subdivider files the tentative map, he or she shall notify each prospective tenant in writing of the intent to convert before leasing or renting a unit.

(Prior code § 8-4437)

Every security, cleaning or other deposit made as a condition of tenancy shall be returned to the tenant within fourteen (14) days after termination of tenancy, unless it is shown that damage has occurred to the unit beyond the scope of repairs or remodeling contemplated in the conversion process, or .unless the landlord is otherwise entitled to the deposit.

(Prior code § 8-4438)

No remodeling planned as part of the conversion may be performed in a unit still occupied by a nonpurchasing tenant without his or her written permission.

(Prior code § 8-4439)

At the time of final map approval, each tenant household in which the head of household or spouse is age sixty (60) or older shall be offered a lifetime lease with reasonable annual rent increases. Starting rents shall be the rent at the time of filing the tentative map. Lease forms shall be submitted to the planning department for review before final map approval.

(Prior code § 8-4440)

At the time of final map approval, a tenant household which meets the income limits of the HUD Section 8 program will be considered a low and moderate income household and shall be offered, at minimum, a three year lease with reasonable annual rent increases. Starting rents shall be the rent at the time of filing the tentative map. Lease forms shall be submitted to the planning department for review before final map approval.

(Prior code § 8-4441)

The applicant or owner of a condominium unit within the project shall not discriminate in the sale or in the terms and conditions of sale of a dwelling unit against a person who is or was a lessee or tenant because that person opposed the conversion of the building into a condominium.

(Prior code § 8-4442)

The number of conversions in any one calendar year is limited to the town's potentially convertible rental stock. Potentially convertible rental stock means that number of rental units which equals the number of new rental units (in a building of two or more units) added the existing rental housing stock in the immediate preceding calendar year for which the determination is made. If a maximum number of committed units is not converted in one year, the surplus is carried over to the next year.

On or before February 1st of each year, the planning director shall advise the planning commission of the number of new rental units added to the existing rental housing stock during the preceding calendar year.

A proposed project that is larger than the permitted number of units in a given year, if approved, reduces the potentially convertible rental stock for succeeding years by the number of units that the approved project contains in excess of that permitted in the year in which the project is approved.

(Prior code § 8-4451)

A.

An application for conversion shall be submitted by the close of business on March 31, in order to be considered for development during the calendar year in which it is filed.

B.

Each application shall be accompanied by a fee in the amount fixed by resolution of the town council. This fee is in addition to that prescribed for the processing of a conventional subdivision.

C.

Not more than one application may be accepted for the same property for consideration in any one calendar year.

(Prior code § 8-4452)

A.

Ranking Applications. The planning director shall make a recommendation as to the ranking of applications in accordance with the following criteria:

1.

The extent to which the proposed conversion will provide housing opportunities for all economic segments of the community;

2.

The extent to which the proposed conversion's deleterious effect on occupying tenants will be mitigated by relocation and other assistance provided by the applicant;

3.

The extent to which the building is suitable for conversion on the basis of its physical condition and other amenities, and its view shed impact.

The planning commission may, by resolution, adopt additional criteria for determining the ranking of applications.

Selection From Ranked Applications. The planning commission shall consider the applications. In doing so, it shall apply the standards of review set forth in Section 8.96.290. The planning commission may approve applications for a total number not to exceed one hundred ten (110) percent of the annual limitation.

C.

Approval of Project Larger Than Permitted Number of Units. A proposed project that is larger than the permitted number of units in a given year if approved, reduces the potentially convertible rental stock for succeeding years by the number of units that the approved project contains in excess of that permitted in the year in which the project is approved.

D.

Vacancy rates of existing apartment residential units shall not be a criterion in determining the number of units to be converted from the number established by Section 8.96.250.

E.

Right to Appeal. If an application is not included among the first three applications as set forth in the rankings recommended by the planning director for three successive application periods, the applicant may appeal to the planning commission. The decision of the planning commission may be appealed to the town council in the same manner as an appeal from the denial of a rezoning request.

F.

Information Available to Applicants. Upon request, the planning director shall provide an applicant with a written explanation of the rank recommended for the conversion application.

Upon request, the planning director shall provide an applicant with a written explanation of the reasons for denial of the conversion application.

(Prior code § 8-4453)

Once the yearly limit specified in Section 8.96.250 is reached, a project may be approved for conversion only if the planning commission makes one or more of the following findings:

A.

The developer will provide for a significant increase in the rental housing for low and moderate income households or senior citizen households over and above that made available under this chapter through conversion;

B.

The developer will provide for the construction of new rental housing;

C.

The need and demand for low cost home ownership to be provided for by this project outweighs the detriment caused by further reduction of the rental stock.

(Prior code § 8-4454)

In reviewing each request for conversion of rental stock to condominium, the planning commission shall consider the following:

A.

Whether or not the amount and impact of the displacement of tenants, if the conversion is approved, would be detrimental to the health, safety or general welfare of the community;

B.

The role that the project structure plays in the existing housing rental market and in particular whether the structure is serving low and moderate income households using standard definitions of low and moderate income rents used by the federal and state governments. Along with other factors, the following will be considered:

1.

The number of families on current waiting lists for assisted rental housing programs that operate in the area such as the Section 8, Section 22, and Section 236 programs,

2.

The probable income range of tenants living in existing apartments based on the assumption that households should pay between one-fourth and one-third of their income for housing. That income range should be compared with existing income limits for Section 8 program to determine whether potential displaced tenants can be categorized as low and moderate income;

C.

The vacancy rate and turnover rate in multiple family rental housing in the community and the extent to which the proposed conversion will create hardships;

D.

The need and demand for lower-cost-home-ownership opportunities which are increased by the conversion of apartments to condominiums;

E.

The current and historical vacancy rate in the project. In evaluating the current vacancy level, the increase in rental rates for each unit over the preceding five years and the average monthly vacancy rate for the project over the preceding two years shall be considered. If the planning commission determines that vacancies in the project have been increased for the purpose of preparing the project for conversion, the tentative map may be disapproved;

F.

Whether or not the conversion will be detrimental to the retention of low and moderate housing stock or reduce or alter significantly the opportunity within the area for the housing of young and elderly citizens.

(Prior code § 8-4455)

The planning commission may not approve an application for conversion unless it finds that:

A.

Each provision of this chapter is met;

B.

The proposed conversion is consistent with the general plan and is not detrimental to the health, safety of general welfare of the town;

C.

The proposed conversion will conform to the municipal code in effect at the time of tentative map approval except as otherwise provided in this chapter;

D.

The overall design and physical condition of the condominium conversion achieves a high degree of appearance, quality and safety;

E.

The proposed project will not convert during the current calendar year more than one hundred (100) percent of the potentially convertible rental units for the current calendar year except as otherwise provided in Section 8.96.280;

F.

The proposed conversion will not have an adverse effect on the diversity of housing types available in the town;

G.

The proposed conversion will not displace a significant percentage of tenants and reduce low and moderate income rental units from the housing stock at a time when no equivalent housing is readily available in the town.

(Prior code § 8-4456)