R-8366
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CA:RMM:rmd1439/hpca1/pc
city Council Meeting 3-3-92
Santa Monica, California
RESOLUTION NUMBER 8366(CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA CALLING FOR AND GIVING NOTICE
OF THE HOLDING OF A SPECIAL MUNICIPAL ELECTION
TO BE HELD ON TUESDAY, JUNE 2, 1992
WHEREAS, the City Council desires to submit to the voters,
pursuant to Government Code Section 34458, one or more proposed
amendments to the city Charter; and
WHEREAS, Elections Code Section 17050 authorizes the City
Council to provide that all ballots cast at the Special Municipal
Election be counted at a central counting place; and
WHEREAS, Elections Code Section 5011 authorizes the city
council to direct the City Clerk to transmit a measure appearing
on the ballot to the City Attorney to prepare an impartial
analysis,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. A Special Municipal Election shall be held in
the city of Santa Monica on June 2, 1992, which is the election
ordered in accordance with Government Code Section 34458 for the
purpose of submitting one or more proposed amendments to the City
Charter.
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SECTION 2. At the special Municipal Election called for
June 2, 1992, the following proposition shall be submitted to the
qualified electors of the City of Santa Monica:
PROPOSITION" ." Shall City
Charter Sections 2001, 2002, 2003,
2004, 2009, and 2012 be amended
and sections 2003A and 20158 added
to the city Charter to provide
greater tenant protections in the
Tenant ownership Rights Charter
Amendment (TORCA), to change the
use to which TORCA tax funds may
be used and to increase the City's
expenditure limitation for each
fiscal year during the four year
period ending June 1, 1996:
YES
NO
The city Clerk shall cause the text of the proposition, which is
contained in Exhibit 1 attached hereto and incorporated by
reference, to be mailed to all qualified voters with the sample
ballot.
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SECTION 3. At the Special Municipal Election called for
June 2, 1992, the following proposition shall be submitted to the
qualified electors of the city of Santa Monica:
PROPOSITION II II Shall the city
Charter be amended by adding
section 1907 to increase the
City's expenditure limitation by
$24,500,000.00 for each fiscal
year during the four year period
ending June 1, 1996, for the
purposes of maintaining and
providing increased police
services, for aid to public
schools, for maintaining basic
City services, and for other
specified purposes such as capital
improvements and outlays for
parks, street lighting, libraries
and police facilities?
YES
NO
The City Clerk shall cause the text of the proposition, which is
contained in Exhibit 2 attached hereto and incorporated by
reference, to be mailed to all qualified voters with the sample
ballot.
SECTION 4. The ballots to be used at the special Municipal
Election shall be both as to form and matter contained therein
such as may be required by law.
SECTION 5. The City Clerk is authorized, instructed, and
directed to procure and furnish any and all official ballots,
notices, printed matter, and all supplies,
equipment,
and
paraphernalia that may be necessary in order to properly and
lawfully conduct the special Municipal Election.
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paraphernalia that may be necessary in order to properly and
lawfully conduct the Special Municipal Election.
SECTION 6. The polls for the special Municipal Election
shall be open at 7:00 a.m. of the day of the election and shall
remain open continuously until 8:00 p.m. of the same day when the
polls shall be closed, except as provided in Elections Code
Section 14301.
SECTION 7. The notice of the time and place of holding of
the Special Municipal Election is hereby given and the City Clerk
is authorized, instructed, and directed to give such further or
additional notice of the election in the time, form, and manner
required by law.
SECTION 8. Pursuant to Elections Code section 17050, the
City Clerk is authorized, instructed, and directed to give such
notice of the central counting place in the time, form, and
manner required by law.
SECTION 9. Pursuant to Elections Code section 5011, the
City Clerk is directed to transmit a copy of each measure to be
submitted to the voters to the City Attorney and the City
Attorney is directed to prepare an impartial analysis of each
measure in accordance with the provisions of Elections Code
section 5011.
SECTION 10. In all particulars not recited in this
Resolution, the special Municipal Election shall be held and
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conducted as provided by law for holding municipal elections in
the city of Santa Monica.
SECTION 11. The city Clerk is directed to send a copy of
this Resolution to the Board of Supervisors of the County of Los
Angeles and to the Registrar of Voters.
SECTION 12. In the event the special Municipal Election is
consolidated with the statewide Direct Primary Election on the
same date, the provisions of this Resolution applicable only in
the event the election is conducted by the City shall be of no
force or effect.
SECTION 13. The City Clerk shall certify to the adoption
of this Resolution, and thenceforth and thereafter the same shall
be in full force and effect.
APPROVED AS TO FORM:
~ "'--..
ROBERT M. MYERS
city Attorney
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Exhl.bl.t 1
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PROPOSAL BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA
TO BE SUBMITTED TO THE VOTERS OF A PROPOSED
AMENDMENT TO THE CHARTER OF THE CITY OF
SANTA MONICA, CALIFORNIA
Section 2001 of the city Charter of the City of Santa Monica
is amended to read as follows:
SECTION 2001. Definitions. For purposes
of this Article, the following words and
phrases shall have the following meaning:
(a) Applicant. The owner of a building
for which a Tenant-Participating Conversion
Application is filed.
(b)
cosigning Tenant.
Any tenant
agreeing to the conversion by his or her
signature
on
the
Tenant-Participating
Conversion Application who has personally
occupied his or her unit continuously for a
period of at least six (6) months prior to the
date he or she signs the Tenant-Participating
Conversion Application unless the tenant has
an economic relationship with or is related by
blood or marriage to the owner of the building
in which case that tenant must have occupied
his or her unit continuously for a period of
at least twelve (12) months prior to the date
he or she signs the Tenant-Participating
Conversion Application.
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(c) Disabled Person. Any person who is
receiving benefits from a Federal, state, or
local government, or from a private entity on
account of a permanent disability that
prevents the person from engaging in regular,
fulltime employment.
(d) Economic Relationship. Any
significant business relationship that a
tenant and owner have wi th each other
including but not limited to employer-
employee; employer-agent, including manager,
consultant, and professional or service
contractor; co-owners, not including the
natural owner of fifty percent (50%) or more
of the building for which the Tenant-
participating Conversion Application is filed;
owner-investor; partnership; or joint
venturers. The landlord-tenant relationship
maintained by the tenant and owner at the
building for which the Tenant-Participating
Conversion Application is filed does not
constitute an economic relationship for
purposes of this Article.
(e) :Intending' to Purchase Tenant. Any
tenant who has personally occupied his or her
unit in the building continuously for a period
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of at least six (6) months immediately
preceding the date the tenant signs a Tenant
Intent to Purchase unless the tenant has an
economic relationship with or is related by
blood or marriage to the owner of the building
in which case that tenant must have occupied
his or her unit continuously for a period of
at least twelve (12) months prior to the date
he or she signs the Intent to Purchase.
(f) Limited Equity. Programs subject to
the restrictions set forth in the Health and
Safety Code section 33007.5 and other programs
which limit, to a similar extent and a similar
length of time, the owner's return at resale.
For purposes of this Article, shared
appreciation equity loans or similar
loans shall not be construed to be forms of
limited equity.
(g) Low Income Households. Persons and
families whose income does not exceed eighty
percent (80%) of the median gross income for
Los Angeles County, adjusted for family size
as determined by the Secretary of Housing and
Urban Development and under Section B(f) (3) of
the United States Housing Act of 1937, as
amended, or if programs under Section 8(f) are
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terminated, eighty percent (80%) of the median
gross income determined under the method used
by the Secretary prior to such termination.
(h) Koderate Income Bousebolds. Persons
and families whose income exceeds eighty
percent (80%) but does not exceed one hundred
twenty percent (120%) of the median gross
income for Los Angeles County, adjusted for
family size as determined by the Secretary of
Housing and Urban Development and under
Section 8(f)(3) of the United States Housing
Act of 1937, as amended, or if programs under
Section 8(f) are terminated, more than eighty
percent (80%) but does not exceed one hundred
twenty percent (120%) of the median gross
income determined under the method used by the
Secretary prior to such termination.
( i)
owner.
Any
natural
person,
corporation, trust, partnership, limited
partnership, or association holding title to a
Qualifying Building, including any partner,
officer, or shareholder of any entity holding
title.
(j) participating Tenant. Any tenant,
including both cosigning and non-cosigning
tenants, residing in the building at the date
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of the approval of the Tenant-Participating
Conversion Application.
(k) price :Index. The index for Urban
Wage Earners and Clerical Workers { United
States city Average { as published by the
united states Bureau of Labor Statistics, or
in the event such index is discontinued any
comparable index.
(1) Tenant :Intent to Purchase. A form
prepared by the City to comply with state law
and which shall be in substantially the
fOllowing form and substance:
STATEMENT OF TENANT INTENT
TO PURCHASE
This is a Tenant Intent to Purchase form
that is used to determine how many tenants
want to purchase the apartment units that they
currently are renting.
Everything that the owner guarantees or
promises you in exchange for your signature,
including the sales price{ is set forth in
writing in the Tenant-Participating Conversion
Application. These promises, including the
promise to sell you the unit for the price
stated on the form, will be made conditions of
the approval of the conversion and the signed
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form will become public record.
Signing this form does not mean that you
must buy the unit. It only means that you
currently want and intend to buy the unit for
the sales price indicated on the form if you
are able to obtain satisfactory financing and
if the application is approved. You should
not sign this form if you do not currently
want and intend to buy the unit. However, it
is appropriate to sign this form if you do
currently want and intend to buy the unit.
IF, AFTER FINAL APPROVAL OF THE CON-
VERSION, THE OWNER REFUSES TO SELL THE UNIT AS
AGREED OR DEMANDS A HIGHER PRICE, YOU SHOULD
IMMEDIATELY CONTACT THE APPROVING ATTORNEY AND
THE CITY ATTORNEY.
I/We, the undersigned, as tenant (s) of
unit at , Santa Monica,
California, at the time of filing of the
Tenant-Participating Conversion Application of
such property, do certify my/our intent to
purchase my/our occupied unit No.
I/We have seen and received a copy of the
Tenant-Participating Conversion Application
which lists the maximum sales prices for all
tenant occupied uni ts in this building and
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other information on the Tenant-Participating
Conversion Application to be filed with the
City of Santa Monica, and this list indicates
that the maximum sales price for my/our unit
is to be $
I/We further understand that this Intent
to Purchase Form will be filed with the City
for the purpose of establishing the percentage
of tenants that may be expected to purchase
units pursuant to this Article.
I/We declare, under penalty of perjury,
that all of my/our statements above are true
and correct.
(Signed and Separately Dated by Intending to
Purchase Tenant(s) and Owner.)
(m) Qualifying Building. Any building
used for residential rental purposes in the
City for which no eviction has occurred
pursuant to Government Code Section 7060 et
seq. (the Ellis Act) within a five (5) year
period prior to the filing of an Application
for Tenant-Participating Conversion and for
which no eviction has occurred pursuant to
Section 1806(h) of this Charter (relating to
eviction for purposes of owner occupancy or
occupancy by relative of the owner) within a
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two (2) year period prior to the filing of an
Application for Tenant-Participating Con-
version. A mobilehome park constitutes a
building for purposes of this Article.
The 1992 amendments to this Subsection
are declaratory of existing law.
(n) Related by Blood or Marriage. Any
tenant who is related to the owner or owner's
spouse by marriage or blood to within the
fourth degree of consanguinity or is an
adopted parent or adopted child of the owner
or owner's spouse.
(0) senior Ci ti zen. Any person
sixty-five (65) years of age or older.
(p) Tenant. Any person who is an
authorized tenant of an owner of a residential
rental building for which a
Tenant-Participating Conversion Application is
being processed.
(q) Tenant Ownership. Ownership in the
form of either condominiums, community
apartments, stock cooperatives, cooperative
associations, limited equity stock
cooperatives or any other means authorized
under state law.
(r) Tenant-participating Conversion. Any
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conversion to tenant ownership implemented
pursuant to this Article.
(s) Tenant's Sales Price. The maximum
price for each unit as set forth in the
Tenant-Participating Conversion Application.
Section 2002 of the City Charter of the city of Santa Monica
is amended to read as follows:
Section 2002. Application for Tenant-
participating conversion. An application for
a Tenant-Participating Conversion shall be
complete if it meets the fOllowing
requirements:
(a) Identifies the building, and its
owner, which is the SUbject of the application
and contains a declaration that such building
is a qualifying building.
(b) Sets forth, for each tenant occupied
unit, the following sales information:
(1) The maximum sales price for each
unit.
(2) If seller financing will be offered,
the minimum amount to be financed, the minimum
down payment, the maximum rate of interest and
the minimum term of the loan offered by the
seller.
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(c) Sets forth, for each unit, the
following common area, maintenance and budget
information:
(1) The plan for the assignment and use
of all parking spaces.
(2) The plan for the use of all common
area facilities.
(3) The occupancy and management plans
and policies.
(4) A list of all repairs and
alterations, if any, which will be performed
before the close of the first escrow and a
temporary relocation assistance plan, if any,
that will be offered to tenants impacted by
the repairs and alterations while they are
being performed. This subdivision shall not
be construed to mandate a temporary relocation
assistance plan unless otherwise required by
law.
(5) The plan for allocating costs and
expenses for the building.
(6) A prepared monthly maintenance budget
based upon actual maintenance expenses for at
least the preceding two years plus a reserve
fund which states the monthly maintenance
assessment for each unit.
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(7) The procedures for the allocation and
use of such reserve funds.
(d) Contains a declaration with the
following information:
(1) That there has been a building
inspection report of the accessible portions
of the entire building, including but not
limited to, the roof, walls, floors, heating,
air conditioning, plumbing, electrical systems
or components of a similar or comparable
nature, and recreational facilities of the
building prepared by a Building Inspection
Service or similar agency within the preceding
four (4) months.
(2) That, for each tenant occupied unit,
a written statement setting forth any
substantial defects or malfunctions identified
in the building inspection report regarding
the unit and the common areas has been
delivered to the unit or a tenant occupying
the unit.
(3) That, for each tenant occupied unit,
a copy of the complete building inspection
report has been delivered to the unit or a
tenant occupying the unit.
(e) Sets forth the form of tenant
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ownership for which the application is
submitted.
(f) Is signed by cosigning tenants
occupying not less than two-thirds (2/3) of
all the residential units in the building and
indicates whether the cosigning tenants have
an economic relationship with or are related
by blood or marriage to the owner. If there is
more than one tenant in a unit, the signature
of only one tenant shall be required.
For purposes of this Subsection, an owner
of the building shall be deemed a cosigning
tenant if: (1) the owner has continuously re-
sided at the building as his or her principal
place of residence for at least six months
prior to the date the owner began to solicit
tenant approval for the TORCA conversion and
(2) the building has not previously been
withdrawn from the residential rental business
pursuant to Government Code Section 7Q60 et
seq., unless the owners were tenants in the
property at the time of the withdrawal.
(g) Identifies the cosigning tenants and
the units occupied by such tenants and lists
all other tenants known to the owner in the
building and the units they occupy.
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(h) Contains a declaration that the
signature of each cosigning tenant was
obtained only after the delivery, in writing,
to such tenant of the information required in
Subsections (a) (b) (c) (d) and (e) of this
Section.
(i) Contains a declaration that
lawful notices have been given of
application for conversion.
(j) Has attached to the application
Statements of Tenant Intent to Purchase,
signed by Intending to Purchase Tenants
occupying not less than fifty percent (50%) of
the total number of residential units in the
building. If there is more than one tenant in
a unit, the signature of only one tenant shall
be required.
For purposes of this Subsection, an owner
of the building shall be deemed an intending
to purchase tenant if: (1) the owner has
continuously resided at the building as his or
her principal place of residence for at least
six months prior to the date the owner began
to solicit tenant approval for the TORCA
conversion and (2) the building has not
previously been withdrawn from the residential
all
the
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rental business pursuant to Government Code
Section 7060 et seg., unless the owners were
tenants in the property at the time of the
withdrawal.
(k) Contains a declaration that in
obtaining the signatures of cosigning tenants
and intending to purchase tenants, the owner
neither offered nor agreed to pay money or
other financial consideration to participating
tenants if the tenants would release all
rights that they had to purchase a rental unit
in the building.
(1) Contains a declaration that in
obtaining the signatures of cosigning tenants
and intending to purchase tenants, neither the
owner nor the owner's agent or representative
coerced a tenant to sign by threatening that
the owner, or any successor thereof, would
cease operating the property as residential
rental property pursuant to Government Code
Section 7060 et seq. (the Ellis Act) if the
proposed conversion of the building pursuant
to this Article did not occur.
(m) Contains a declaration that no less
than fortY-five (45) days prior to obtaining
the signatures of cosigning tenants and
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intending to purchase tenants, the person
intending to gather the requisite tenant
signatures notified all tenants residing at
the owner's property by certified mail on a
form approved by the City of his or her intent
to obtain the signatures and provided these
tenants with the informational booklet
prepared by the City discussing the TORCA
process, addressing the tenants' legal rights
and obligations under TORCA, and informing the
tenants of upcoming seminars.
(n) That, for each tenant occupied unit,
a Tenant Intent to Purchase has been delivered
to the unit or a tenant occupying the unit.
Section 2003 of the city Charter of the city of Santa Monica
is amended to read as follows:
SECTION 2003. processing of Tenant-
Participating Conversion Application. The
following procedures shall be followed in the
processing of a Tenant-Participating
Conversion Application:
(a) No less than forty-five (45) days
prior to obtaining the signatures of cosigning
tenants and intending to purchase tenants, the
person intending to gather the requisite
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tenant signatures shall first notify all
tenants residing at the owner's property by
certified mail on a form approved by the City
of his or her intent to obtain the signatures
and with the notification shall provide an
informational booklet to these tenants
prepared by the city discussing the TORCA
process, addressing the tenants' legal rights
and obligations under TORCA, and informing the
tenants of upcoming TORCA seminars. The
notification form prepared by the City shall
be in substantially the following form and
substance:
NOTICE OF INTENTION TO APPLY FOR
TORCA CONVERSION
The owner of your property is interested
in applying for a condominium conversion under
the Tenant Ownership Rights Charter Amendment.
Please review the enclosed booklet provided by
the City of Santa Monica for information about
your rights and protections under this
process. Included also is a schedule of any
upcoming free seminars sponsored by the City
on the TORCA program.
The City requires this notice be sent by
certified mail to tenants forty five (45) days
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before signatures of tenant approval in
support of this conversion can be obtained.
(signed and separately Dated by the Agent
of the Owner)
(b) A Tenant-Participating Conversion
Application shall be deemed complete and
accepted for filing by the City when it meets
the requirements of section 2002 of this
Article.
(c) A Tenant-Participating Conversion Ap-
plication shall be submitted to the City for
filing by the owner not less than forty (40)
days prior to the owner's submittal to the
City for filing of any application for a
tentative subdivision map or tentative parcel
map under the Subdivision Map Act of the state
of California. No application for any
required tentative subdivision map or
tentative parcel map shall be deemed complete
and accepted for filing as provided in this
Section unless the Tenant-participating
Conversion Application has also been deemed
complete and accepted for filing. The Tenant-
Participating Conversion Application may be
submitted for filing simultaneously with the
service of the Notice of Intent to Convert
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required by the Subdivision Map Act of tile
State of California.
(d) Within five (5) days of deeming a
Tenant-Participating Conversion Application
complete and accepting it for filing, the City
shall send notice to every tenant in the
building stating that a Tenant-Participating
Conversion Application has been filed and that
any objections thereto may be filed with the
City within thirty (30) days from the date of
the notice.
(e) Upon deeming the application for any
required tentative subdivision map or ten-
tative parcel map complete and accepting it
for filing, or if no such map is required, at
the end of forty (40) days from deeming a
Tenant-Participating Conversion Application
complete and accepting it for filing, the
Tenant-Participating Conversion Application
and any required map shall be scheduled for
hearing and processed in accordance with the
procedures for the processing of subdivision
maps. The City and the applicant may agree to
extend the time periods required for
processing.
(f) Any Tenant-Participating Conversion
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Application shall be deemed approved subject
to the conditions set forth in Section 2004 of
this Article if it is not approved or denied
within the time periods required by this
section.
section 2003A is added to the city Charter of the city of
Santa Monica to read as follows:
SECTION 2003A.
Tenant Rescission of
signatures. A tenant can rescind his or her
signature on the Tenant-Participating
Conversion Application or the Statement of
Tenant Intent to Purchase as follows:
(a) At any time during the thirty (30)
day objection period specified in section
2003(d) by notifying the City in writing that
the tenant rescinds his or her signature on
the Tenant-participating Conversion
Application or the Statement of Tenant Intent
to Purchase.
(b) If a change in ownership in the
building occurs after a tenant has signed the
Tenant-Participating Conversion Application or
Tenant Intent to Purchase and the tenant was
not notified in writing prior to signing these
documents that a change in ownership was
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pending, that tenant can rescind his or her
signature by notifying the City in writing at
any time prior to Planning commission approval
of the Tenant-Participating Conversion
Application unless:
(1) The new owner reobtains the tenant's
signature on a Tenant-Participating Conversion
Application and/or Tenant Intent to Purchase.
(2) These documents are filed with the
City. The City shall notify the tenant within
five (5) days of accepting these subsequent
documents for filing.
(c) If a new owner follows the procedure
specified in subsection (b) of this Section, a
tenant can only rescind his or her signature
on these subsequent documents by notifying the
City in writing within thirty (30) days from
the date of City notification of their
acceptance for filing, or prior to Planning
Commission approval of the Tenant-
Participating Conversion Application,
whichever occurs first.
section 2004 of the City Charter of the city of Santa Monica
is amended to read as follows:
SECTION 2004.
Approval or Denial of
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Tenant-participating Conversion Application.
A Tenant-Participating Conversion Application
shall be approved or denied within the time
periods set forth in section 2003 of this
Article and in accordance with the following
standards:
(a) A Tenant-Participating Conversion
Application, along with any required tentative
subdivision map or tentative parcel map shall
be denied if the Tenant-Participating Conver-
sion Application fails to meet any of the re-
quirements of this Article, was the result of
fraud, misrepresentation, or threat or similar
coercion, or fails to meet any mandatory re-
quirement of the Subdivision Map Act of the
State of California.
(b) A Tenant Participating Conversion Ap-
plication, along with any required tentative
subdivision map or tentative parcel map, shall
be approved if it meets the requirements of
this Article and shall be subject to the
following conditions and no others:
(1) The owner must file with the City
written consent to each condition imposed in
connection with the approval of a
Tenant-Participating Conversion Application.
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The written consent shall be filed prior to
the approval of any required final subdivision
map or final parcel map, or if no such map is
required, within six (6) months from the date
of approval of the Tenant-Participating
Conversion Application. The filing of such
written consent shall constitute an agreement,
with the city of Santa Monica and each
participating tenant, binding upon the owner
and any successors in interest, to comply with
each and every condition imposed in connection
with approval of a Tenant-Participating
Conversion Application. The City and any
participating tenant shall have the right to
specific enforcement of this Agreement in
addi tion to any other remedies provided by
law.
(2) The owner shall offer and continue to
offer the exclusive right to purchase each
rental unit in the building to the participat-
ing tenant thereof upon the terms set forth in
the application, without change, for a period
of not less than two (2) years from the date
of final approval by the California Department
of Real Estate or the date the first unit in
the building is offered for sale, if no
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approval by the California Department of Real
Estate is required. Unless a participating
tenant has already provided the owner with
written acceptance of the offer, the Tenant's
Sale Price may be adjusted at the beginning of
the second year according to any change re-
flected in the Price Index occurring during
the preceding year. Upon the written accep-
tance of the offer by the participating tenant
at any time within the two year period, escrow
shall open within thirty (30) days from the
written acceptance by the participating
tenant. Unless otherwise agreed by the
parties, the period of the escrow shall not
exceed sixty (60) days.
(3) No participating tenant shall at any
time after the approval of the Tenant-Partici-
pating Conversion Application be evicted for
the purpose of occupancy by the owner, occu-
pancy by any relative of the owner, or for
demolition of the unit. In the event the
participating tenant does not exercise his or
her right to purchase within the time period
set forth in this Article, the owner may
transfer the unit without any price
restriction to the participating tenant or any
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other person. However, in the event such
transfer is to someone other than the
participating tenant, the transfer shall be
expressly made subject to the rights of the
participating tenant to continue to occupy the
unit as provided for in this Article.
(4) Each unit shall at all times remain
subject to all the terms and conditions of
Article XVIII of this Charter, except Section
1803(t), before, during and after any
Tenant-participating Conversion. If any unit
is rented, the maximum allowable rent for each
uni t shall be no greater than the maximum
allowable rent allowed under Article XVIII of
this Charter.
(5) The building may be required to
comply only with the applicable laws,
including the building, safety, and zoning
codes, which were in effect as of the date the
building was constructed. No new, additional
requirements including, but not limited to,
parking, room size, or interior or exterior
improvements of any kind, may be imposed as a
condition, either directly or indirectly, of
the Tenant-Participating Conversion.
Notwithstanding the above, the City may impose
24
.
.
reasonable health or
consistent with this
buildings provided that
uniformly apply to
:mul tiresidential structures
Santa Monica, regardless
ownership of the building.
(6) Prior to the approval of any required
subdivision map or final parcel map for the
Tenant-participating Conversion, or if no such
:maps required, prior to the filing of the
written consent required by subdivision (b) (l)
of this Section, each participating tenant
shall be informed in writing, in a form
approved by the City t of his or her rights
under this Article.
(7) In addition to the protections of
Subdivisions (b) (3) and (b) (4) of this
safety requirements
Article upon such
such requirements
all similar
in the City of
of the form of
Section:
(A) All non-purchasing Participating
Tenants who are senior citizens or disabled on
the date of filing the Tenant-Participating
Conversion Application and who personally
occupied a rental unit in the qualifying
building continuously for at least six (6)
months immediately preceding the date of the
25
.
.
filing of Tenant-participating Conversion
Application shall be given the nonassignable
right to continue to personally reside in
their unit as long as they choose to do so
subject only to just cause evictions provided
that the eviction is not for the purpose of
occupancy by the owner, occupancy by any
relative of the owner, or the demolition of
the unit. In addition, should the maximum
allowable rent provision of Article XVIII of
the Charter no longer apply, the rent for each
such unit shall be adjusted annually to allow
an increase of no more than the increase in
the Price Index plus a reasonable, pro rata
share of capi tal improvements for the
buildings common areas or agreed to capital
improvements for the unit, except where
prohibited by Subdivision (b) (12) of this
Section. Within sixty (60) days after the
approval of a Tenant-Participating Conversion
Application, any senior citizen participating
tenant who is entitled to the protections of
this Subdivision may designate in writing the
name of one person who is entitled to continue
living in the rental unit under the same terms
as the senior citizen if the senior citizen
26
.
.
predeceases him or her and if the person
designated is residing in the unit at the time
of the death of the senior citizen. The person
designated by the senior citizen must be a
lawful occupant of the unit, at least
fifty-five (55) years of age on the date of
the filing of the Tenant-Participating Conver-
sion Application, and must have resided in the
unit for a continuous period of six months
prior to the filing of the Tenant-Participat-
ing Conversion Application.
(B) All other non-purchasing Participat-
ing Tenants who personally occupied a rental
unit in a qualifying building continuously for
at least six (6) months immediately preceding
the date filing the Tenant-Participating
Conversion Application shall be given the
nonassignable right to continue to personally
reside in their unit subject only to just
cause eviction for a period of five (5) years
from the date the first unit is offered for
sale. No eviction shall be allowed during this
time period except for just cause provided the
eviction is not for the purpose of occupancy
by the owner, occupancy by any relative of the
owner, or demolition of the unit. In addition,
27
.
.
during this time period, should the maximum
allowable rent provisions of Article XVIII of
this Chatter no longer apply, the rent for
each unit shall be adjusted annually to allow
an increase of no more than the increase in
the Price Index plus a reasonable pro rata
share of capital improvements for the
building's common areas or agreed to capital
improvements for the unit, except where
prohibited by Subdivision (b) (12) of this
Section.
All rights under this Subsection shall
expire upon the termination of the landlord--
tenant relationship between the owner and the
participating tenant entitled to the pro-
tection of this subsection.
For purposes of this Subsection, "Just
cause" means one of the reasons set forth in
Subsections (a) through (g) of Section 1806 of
this Charter.
This Subsection shall be interpreted in
accordance with Santa Monica ci ty Attorney
Informal Opinion Number 84-57. All amendments
to this Subsection are declaratory of existing
law.
(8) Non-purchasing participating Tenants
28
.
.
shall not be subject to eviction pursuant to
Government Code Section 7060 et seg. (lithe
Ellis Act").
(9) The owner shall pay the Tenant-
Participating Conversion Tax in the manner
required by section 2008 of this Article.
(10) No owner shall close the first
escrow without completing the repairs and al-
terations agreed to pursuant to Section
2002(c) (4) of this Article. The time to com-
plete the repairs and alterations may be ex-
tended for a period not to exceed ninety (90)
days if the tenant purchasing the first unit
agrees to the extension and the owner provides
a bond approved by the California Department
of Real Estate in an amount sufficient to
cover the cost of the work yet to be
completed. The Building Officer of the City of
Santa Monica may authorize a further extension
of time to complete the repairs and
alterations upon finding that the owner has
diligently sought to make the repairs during
the initial extension period and that addi-
tional time is reasonably required to complete
the work.
In addition to any other remedy provided
29
.
.
by law, for each consecutive calendar day that
an owner fails to complete the repairs and
alterations agreed to pursuant to section
2002(c) (4) in a timely manner, the owner shall
be liable to the City in the amount of two
hundred and fifty dollars ($250.00) for the
first day and one hundred dollars ($100.00)
per day for each day thereafter. No penalty
imposed under this Subsection shall exceed two
(2) times the cost of the repairs or
alterations that were not timely completed by
the owner, but in no event shall the penalty
be less than $250.00.
(11) Prior to the filing and approval of
the Tenant-Participating Conversion Appli-
cation by the Planning Commission or City
Council on appeal, no participating tenant
shall offer or agree to release all rights
that he or she has to purchase a rental unit
in the building in return for receiving money
or other financial consideration from the
owner.
(12) The maximum allowable rent of non-
purchasing Participating Tenants shall not at
any time after the approval of the Tenant-
Participating Conversion Application be
30
.
.
increased due to capital expenditures incurred
at the building as listed in the Tenant-
Participating Conversion Application or as
conditions of the conversion approved by the
Santa Monica Planning Commission or by the
City Council on appeal.
(13) The requirements of this section
shall be set forth in the Declaration of Cove-
nants, Conditions, and Restrictions, or
equivalent document, and shall specifically
name the Participating Tenants in each unit
entitled to the benefits and protections of
this Article. The city shall review and
approve for compliance with this Article the
Covenants, Conditions, and Restrictions, or
equivalent documents, prior to the approval of
any required final sUbdivision map or final
parcel map, or if no such map or final parcel
map is required, prior to the filing of the
written consent required by SUbdivision (b) (1)
of this section. To the extent applicable, the
requirements of this Article shall be made a
part of the rental agreement with the
Participating Tenants.
(14) The Declaration of Covenants, Con-
ditions, and Restrictions, or equivalent
31
.
.
document, shall contain a non-discrimination
clause in substantially the following form: No
unit owner shall execute or file for record
any instrument which imposes a restriction
upon the sale, leasing or occupancy of his or
her unit on the basis of sex, race, color,
religion, ancestry, national origin, age,
pregnancy, marital status, family composition,
handicap, Acquired Immune Deficiency syndrome
(A.I.D.S.), sexual orientation, or the
potential or actual occupancy of minor
children. The association shall not
discriminate on the basis of sex, race, color,
religion, ancestry, national origin, age,
pregnancy, marital status, family composition,
handicap, Acquired Immune Deficiency Syndrome
(A.I.D.S.). sexual orientation, or the
potential or actual occupancy of minor
children."
(15) The approval of a Tenant-Partici-
pating Conversion Application shall expire if
any required final sUbdivision map or final
parcel map is not approved wi thin the time
periods set forth in the subdivision Map Act
of the state of California, or if no such map
is required, if the written consent required
32
.
.
by SUbdivision (b) (1) is not filed within the
required time period.
Section 2009 of the city Charter of the City of Santa Monica
is amended to read as follows:
SECTION 2009. Use of Tax. All monies
derived from the Tenant-Participating
Conversion Tax shall be annually appropriated
by the City Council for only the following
purposes:
(a) To pay for reasonable and necessary
costs of development and administration of
programs required to meet the purposes of this
section. Such monies shall not be used for
costs attributable to the processing of
Tenant-Participating Conversion Applications
or to the non-project related administrative
overhead of nonprofit housing development
corporations that are acquiring and
rehabilitating, constructing, or providing
rental subsidies for affordable housing in the
City.
(b) One-half of the revenues derived
from Section 2008 that remain after deducting
the revenues appropriated pursuant to
Subsection (a) of this section shall be used
33
.
.
as follows:
(1) To assist Low Income Households and
Moderate Income Households in Tenant-
Participating Conversions to purchase or
improve their units subject to an affordable
repayment plan including interest, keyed to
future income increases. Upon resale of a
unit by a household assisted pursuant to this
Subsection, the City shall receive a
percentage of the appreciated value of that
unit obtained by the assisted household. In
the case of a direct loan, the percentage of
the appreciated value received by the City
shall not be less than the percentage of the
loan to the purchase price for the unit. In
the case of a loan made by a private lender
that is guaranteed by the City, the percentage
of the appreciated value received by the City
shall not be less than the percentage of that
portion of the loan guaranteed by the City to
the overall loan provided by the private
lender. Monies received by the City as a
resul t of shared appreciation shall be
expended in accordance with Subsection (c) of
this Section. Monies received in repayment of
the original loan amount and interest thereto
34
.
.
shall be expended in accordance with this
Subsection.
(2) To assist the City or a nonprofit
housing development corporation to purchase
units, for which a Tenant-Participating
Conversion Application has been approved, for
lease or resale to Low and Moderate Income
Households, provided that any unit so acquired
shall be subject to limited equity resale
provisions.
(3) Revenues expended pursuant to this
Subsection shall be equally allocated between
Low Income Households and Moderate Income
Households.
(c) One-half of the revenues derived from
Section 2008 that remain after deducting the
revenues appropriated pursuant to Subsection
(a) of this Section shall be used to assist
the City or a nonprofit housing development
corporation to acquire and rehabilitate,
construct, aid in the financing of, or provide
rental subsidies for temporary or permanent
housing for Low Income Households.
All monies received by the City prior to
June 7, 1992 pursuant to Section 2008 of this
Article shall be expended by the City in
35
.
.
accordance with this section as amended at the
November 6, 1990 Santa Monica Municipal
Election unless these monies are not expended
by January 1, 1993, in which case the 1992
amendments shall apply.
section 2012 of the city Charter of the city of Santa Monica
is amended to read as follows:
SECTION 2012. Information and
Compliance. The city Council shall cause to
be prepared and supervise a program to
disseminate information about this Article to
tenants, apartment owners and other parties
informing each tenant, apartment owner and
other parties of their rights and obligations
under this Article. The City Council shall
issue an annual report to include date on
compliance with this Article. Each report
shall include data on the number of
applications and the status of each project.
The Ci ty Manager shall appoint an advisory
committee consisting of two (2)
representatives from landlord organizations
and two (2) representatives from tenant
organizations to advise the city concerning
the TORCA educational process including the
36
.
.
preparation of materials for the TORCA
informational booklets and the TORCA seminars.
Section 2015B is added to the city Charter of the city of
Santa Monica to read as follows:
SECTION 2015B. Expenditure
Authorization. The expenditure limitation of
the city established pursuant to Article XIIIB
of the California constitution is increased,
in addition to any other voter-approved
increases, for each of the fiscal years during
the four year period beginning June 2, 1992,
and ending June 1, 1996, by an amount equal to
the amount of the monies received in each such
fiscal year pursuant to Section 2008 of this
Article and by an amount equal to the monies
received in previous fiscal years pursuant to
section 2008 of this Article and not yet
expended.
37
Exh~b~t 2
.
.
.
.
PROPOSAL BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA
TO BE SUBMITTED TO THE VOTERS OF A PROPOSED
AMENDMENT TO THE CHARTER OF THE CITY OF
SANTA MONICA, CALIFORNIA
section 1907 is added to the city Charter of the city of
Santa Monica to read as follows:
SECTION
Expenditure
1907.
Limitation
Increase
for
POlice,
Protective
services,
Aid
to
Public
schools, Basic city services, and capital
Improvements and outlays.
(a) Pursuant to section 4 of
Article
of
the
California
XIIIB
Constitution,
City'S
expenditure
the
limit for each of the fiscal years during
the four (4) year period beginning June
2, 1992, and ending June 1, 1996, is
increased, in addition to any other
voter-approved increases, by Twenty-Four
Million Five Hundred Thousand Dollars
($24,500,000.00). This increase shall be
adjusted each year as is provided for by
state law, or as otherwise provided for
by the State Constitution.
(b) Appropriation of funds that
may be made for spending by reason of
subsection (a) sha 11 be made for: ( 1)
maintaining
providing
increased
and
- 1 -
.
.
police and other protective services, for
improving the safety of streets and
neighborhoods, and for encouraging public
involvement in the reduction of crime;
(2) aiding the public schools; (3)
maintaining the quality of basic police
and fire protection, library, recreation
and parks, planning, engineering, and
associated administrative support
services; and (4) providing capital
improvements and outlays for street
maintenance, sidewalks, street lights,
energy conservation, traffic signals
upgrade, park maintenance and
development, libraries, publicly owned
recreational facilities, pier
preservation and improvement, beach
maintenance and improvements, police and
fire facilities, vehicles and other
equipment, and various other capital
needs required for the protection of
public health and safety, and for
maintaining the quality of basic City
services.
rmd1449/hpcal/pc
- 2 -
.
.
Adopted and approved this 3rd day of March, 1992.
Q0~
Ma~r Pro Tempore
I hereby certify that the foregoing Resolution No. 8366(CCS)
was duly adopted by the City Council of the city of Santa Monica
at a meeting thereof held on March 3, 1992 by the following
Council vote:
Ayes: Councilmembers: Holbrook, Katz, Olsen, Vazquez, Zane,
Abdo
Noes: Councilmemhers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Genser
.-
ATTEST: - '- -
~e~~
.- City C-1.~k-t_~ _