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R-8366 . . 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. - 1 - . . 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. - 2 - . . 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. - 3 - . . 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 - 4 - . . 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 () -- - 5 - Exhl.bl.t 1 . . . . 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. 1 . . (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 2 . - 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 3 . . 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 4 . . 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 5 . . 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 6 . . 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 7 . . 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 8 . . 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. 9 . . (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. 10 . . (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 11 . . 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. 12 . . (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 13 . . 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 14 . . 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 15 . . 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 16 . . 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 17 . . 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 18 . . 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 19 . . 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 20 . . 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. 21 . . 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 22 . . 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 23 . . 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_~ _