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JAN 1 0 1989
CA:RMM:11210/hpc
city council Meeting 1-10-89
Santa Monica, California
STAFF REPORT
TO:
Mayor and city Council
FROM:
City Attorney
SUBJECT:
Ordinance Amending Municipal Code Section
9304 and Adding Section 4812a Relating to Local
Land Use Requirements Applicable to Rental
Units Withdrawn from the Rental Housing
Market Pursuant to the Ellis Act
At its meeting on August 9, 1988, the City Council directed
the City Attorney to investigate legislative solutions to
perceived abuses of the Ellis Act.
In response to this
direction, the accompanying ordinance has been prepared and is
presented to the City council for its consideration.
INTRODUCTION
since a number of landlords have chosen to take advantage of
the Ellis Act, it has become necessary to clarify certain
Municipal Code requirements that govern the uses of rental
properties which have been withdrawn from the rental houslng
market. The Ellis Act does not regulate the types of land uses
to which owners can put their properties; local laws provide such
regulation. In order to clarify some of the City'S requirements
which pertain to buildings removed from the rental housing market
pursuant to the Ellis Act, the attached amendments to the Santa
Monica Municipal Code have been prepared.
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JAN 101989
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BACKGROUND
On July 1, 1986, the Ellis Act, California Government Code
Sections 7060 et seq., became effective. The Rent Control Board
has since promulgated regulations implementing the anti-abuse
protections provided for in the Ellis Act. According to Rent
Control Board records, as of November 28, 1988, 381 units in 65
buildings have been affected by notices of withdrawal filed
pursuant to the Ellis Act.
As landlords withdraw units from the residential rental
housing market, two trends are beginning to surface. One
involves the eviction of tenants from units which are
subsequently occupied by multiple owners and their relatives. In
effect, subdivisions are being created without required permits.
The other trend involves eviction of residential tenants from
controlled rental units located in commercial zone districts and
subsequent occupancy by commercial tenants, i.e., changes in use
without required permits.
The Ellis Act authorizes the withdrawal of residential
rental housing units from the rental housing market. The Ellis
Act, however, authorizes nothing beyond that withdrawal. It does
not authorize future occupancy by owners, commercial tenants, or
anyone else.
Changes in use, whether to owner occupancy from rental
housing or to commercial use from rental use, are subj ect to
local land use controls. The Ellis Act does not interfere with
these controls. Government Code section 7060.1 states, in
relevant part:
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Notwithstanding Section 7060, nothing in
this chapter does any of the following:
(b) Diminishes or enhances, except as
specifically provided in section 7060.2, any
power which currently exists or which may
hereafter exist in any public entity to grant
or deny any entitlement to the use of real
property, including, but not limited to,
planning, zoning, and subdivision map
approvals.
As the Santa Monica Municipal Code is currently written,
owners who move into units from which they have evicted tenants
pursuant to the Ellis Act may be violating Municipal Code
sections 9300 et seq., in that they are creating illegal
subdivisions or changes of use without Zoning Administrator
approval or Rent Control Board removal permits. To clarify and
strengthen existing Municipal Code provisions, the attached
amendments have been prepared.
SECTION-BY-SECTION ANALYSIS
Section 9304(c). This Section amends the current Municipal
Code definition of "community apartment". It clarifies that a
community apartment is created whenever an undivided interest in
land is coupled with the right of exclusive occupancy of any
apartment. This is so regardless of whether the exclusive
occupancy right is contained on the face of the deed, so long as
it exists in some form of agreement, oral or written.
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Section 9304(U). This Section amends the current Municipal
Code definition of "subdivision" to make it consistent with the
change in Section 9304(c) described above.
section 4812a. This section requires that a conditional use
permit be obtained where property owners seek to occupy a
property which has been withdrawn from the rental housing market
pursuant to the Ellis Act. A conditional use permit is required
whether the owners seek authorization to occupy the property for
a commercial use or a residential use.
A conditional use permit for commercial occupancy of a
property withdrawn pursuant to the Ellis Act shall not be granted
unless required findings are made by the Planning commission, or
the city Council on review that the occupancy is in conformity
with the General Plan and with the zoning Ordinance.
A conditional use permit for residential occupancy shall
only be granted if one of three findings are made by the Planning
Commission or City Council on review. A conditional use permit
may be granted if the property will be occupied as a single
family unit and the owner agrees to deed restrict the property
for such use. A conditional use permit may be granted for use of
the property as multifamily rental housing so long as the owner
has complied with the requirements set forth in the Ellis Act and
Rent Control Board regulations regarding re-entry into the rental
housing market. Finally, a conditional use permit for occupancy
of the property as multifamily housing by more than one owner of
the property may be granted , but only if a subdivision or parcel
map has obtained pursuant to applicable sections of the Municipal
Code.
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The section does not apply to any occupancy following a
lawful demolition of units withdrawn pursuant to the Ellis Act.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.
PREPARED BY:
Robert M. Myers, City Attorney
Laurie Lieberman, Deputy City Attorney
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CA:RMM:LL:11472/hpc
city council Meeting 1-10-89
santa Monica, California
ORDINANCE NUMBER
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE
SECTION 9304 AND ADDING SECTION 4812a TO CLARIFY
LOCAL LAND USE REQUIREMENTS APPLICABLE TO
RENTAL UNITS WITHDRAWN FROM THE RENTAL HOUSING
MARKET PURSUANT TO THE ELLIS ACT
WHEREAS the Subdivision Map Act, Government Code section
66410 et seq. and the Subdivision ordinance of the City of Santa
Monica, Santa Monica Municipal Code Section 9300 et seq., serve
to regulate and control the division of land within the City of
Santa Monica; and
WHEREAS the the provisions of state and local subdivision
laws have as their purposes the protection of purchasers of
property as well as the promotion of orderly growth, development,
and land use; and
WHEREAS the attributes, uses, ownership structure, and
occupancy of a residential building differ depending upon whether
the building is tenant-occupied or owner-occupied; and
WHEREAS the conversion of residential rental buildings to
owner-occupied residential buildings has a profound effect on the
social demography of the city; and
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WHEREAS a serious housing shortage continues to exist in
the City endangering the ability of the City to preserve its
historic and existing socio-economic diversity; and
WHEREAS a property which has been utilized for residential
rental housing that is being converted to owner-occupancy has
virtually identical attributes to those of a condominium
conversion or subdivision for which state and local law require a
subdivision or parcel map, a change of use permit, and a
conditional use permit; and
WHEREAS several property owners have already evicted
tenants from residential rental properties pursuant to the Ellis
Act and subsequently occupied those properties without obtaining
necessary permits from the City and it is likely that others will
follow the same course; and
WHEREAS occupancy by multiple owners of residential
buildings which were formerly operated as rental housing
constitutes the creation of a community apartment or some other
like interest which couples an ownership interest in property
with the right to occupy such property; and
WHEREAS the creation of ownership interests and use
patterns which resemble community apartments, cooperatives, or
condominiums without obtaining City approvals constitute a
subterfuge of the state Subdivision Map Act and of the City's
Subdivision Ordinance; and
WHEREAS the regulations set forth in this Ordinance are
necessary for the preservation of the public health, safety and
general welfare, to promote orderly growth and development and to
promote and implement the General Plan, to protect unwary
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purchasers of residential property, and to otherwise further the
purposes of the state Subdivision Map Act and the city's
Subdivision Ordinance and condominium regulations,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES ORDAIN AS FOLLOWS:
SECTION 1. section 9304 of the Santa Monica Municipal Code
is amended to read as follows:
SECTION 9304. Definitions. The
following words or phrases as used in this
Chapter shall have the following meanings:
(a) Advisory Aqency. A designated
official or an official body charged with
the duty of making investigations and
reports on the design and improvements of
proposed divisions of real property.
(b) Block. The area of land within
a subdivision which area is entirely
bounded by streets, highways or ways,
except alleys, or the exterior boundary or
boundaries of the sUbdivision.
(c) Community Apartment. A project
as defined in subdivision Cd) of Section
1351 of the California civil Code in which
an undivided interest in land is coupled
wi th the right of exclusive occupancy of
any apartment located thereon, whether
such right is contained in the form of a
written or oral agreement, and whether
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such right appears on the face of the deed
or in some other agreement.
(d) Condominium. An estate in real
property consisting of an undivided
interest in common in a portion of a
parcel of real property together with a
separate interest in space in a
residential, industrial or commercial
building on such real property, such as an
apartment, office, or store. A
condominium may include, in addition, a
separate interest in other portions of
such real property.
(e) Conversion. The creation of
separate ownership of existing improved
real property together with a separate
interest in space of residential,
industrial or commercial buildings
thereon. A conversion may be accomplished
by condominium, stock cooperative, or
community apartment.
(f) Design. street alignments,
grades and width; drainage and sanitary
facilities and utilities, including
al ignments and grades thereof; location
and size of all required easements and
rights-Of-way: fire roads and fire breaks:
lot size and configuration: traffic
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access: grading: land to be dedicated for
park or recreational purposes; and such
other specific requirements in \:.he plan
and configuration of the entire
subdivision as may be necessary or
convenient to insure conformity to or
implementation of the General Plan or any
adopted specific plan.
(g) Final Hap. A map showing a
subdivision for which a tentative and
final map is required by this Chapter,
prepared in accordance with the provisions
of this Chapter and the Subdivision Map
Act and designed to be recorded in the
office of the County Recorder.
(h) Final Parcel Map. A final map
for a parcel.
(i) Final Subdivision Hap. A final
map for a subdivision.
(j) General Plan. The General Plan
of the City of Santa Monica.
(k) Improvement. street work,
storm drainage, utilities and landscaping
to be installed, or agreed to be
installed, by the subdivider on the land
to be used for public or private streets,
highways, and easements, as are necessary
for the general use of the lot owners in
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the subdivision and local neighborhood
traffic and drainage needs as a condition
precedent to the approval and acceptance
of the final map thereof: or to such other
specific improvements or type of
improvements, the installation of which,
either by the subdivider, by public
agencies, by private utilities, by any
other entity approved by the local agency
or by a combination thereof, is necessary
to convenient to insure conformity to or
implementation of the General Plan or any
adopted specific plan.
(l) Lot. A parcel or portion of
land separated from other parcels or
portions by description, as on a
subdivision or record of survey map, or by
metes and bounds, for purpose of sale,
lease, or separate use.
(m) Lot Line Adjustment. A minor
shift or rotation of an existing lot line
or other adjustments where a greater
number of parcels than originally existed
is not created.
(n) Merger. The joining of two (2)
or more contiguous parcels of land under
one ownership into one parcel.
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(0)
Subdivision
California.
(p) Parcel Hap. A map showing a
division of land of four (4) or less
parcels as required by this Chapter,
prepared in accordance with the provisions
of this Chapter and the Subdivision Map
Act.
Subdivision Hap
Map Act of the
Act.
state
The
of
(q) Peripheral Street. An existing
street whose right-of-way is contiguous to
the exterior boundary of the sUbdivision.
(r) Remainder. That portion of an
existing parcel which is not included as
part of the subdivided land. The
remainder is not considered as part of the
subdivision but must be shown on the
required maps as part of the area
surrounding subdivision development.
(s) stock Cooperative. A
corporation as defined in Business and
Professions Code Section 11003.2 which is
primarily for the purpose of holding title
to property if shareholders receive the
right to exclusive occupancy in a portion
of property and whose right to occupancy
transfers concurrently with the transfer
of an interest in the corporation.
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(t) Subdivider. A person who
proposes to divide, divides, or causes to
be divided real property into a
subdivision for the subdivider or for
others; except employees and consultants
of such persons or entities, acting in
such capacity, are not "subdividers."
(u) SUbdivision. The division, by
any subdivider, of any units or unit of
improved or unimproved contiguous land
shown on the latest equalized County
assessment roll as a unit or as contiguous
units for the purpose of sale, lease or
financing, whether immediate or future.
Property shall be considered as contiguous
units, even if it is separated by roads,
streets, utility easements or railroad
rights-ot-way. Subdivision includes a
condominium project, as defined herein or
in California Civil Code Section 1350, a
community apartment project, as defined
herein or in California civil Code section
1351(d), or a stock cooperative, as
defined in California Business &
Professions Code Section 1103.2. Any
conveyance of land to a governmental
agency, pUblic entity, or public utility
shall not be considered a division of land
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for purposes of computing the number of
parcels. "Subdivisiont! does not include
anything excluded from the definition of
subdivision in the Subdivision Map Act
unless otherwise provided for herein.
(v) Subdivision Map. A map showing
a division of land of five (5) or more
parcels as required by this Chapter,
prepared in accordance with the provisions
of this Chapter and the Subdivision Map
Act.
(w) Tentative Map. A map made for
the purpose of showing the design and
improvements of a proposed subdivision and
the existing conditions in and around it.
(x) Tentative Parcel Hap. A
tentative map for a parcel.
(y) Tentative Subdivision Map. A
tentative map for a subdivision.
(z) Zoning Ordinance. Article IX
of the Municipal Code.
SECTION 2. Section 4812a is added to the Santa Monica
Municipal Code to read as follows:
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SECTION 4812a. Permits Necessary
for Occupancy of Property Following
withdrawal Pursuant to the Ellis Act.
(a) No property or portion thereof
which has been withdrawn pursuant to the
Ellis Act, Government Code Sections 7060
et seq., shall be subsequently occupied
unless a conditional use permit is
obtained in accordance with the provisions
of Article 9 of this Code.
(b) A conditional use permit for
commercial occupancy of a property shall
not be granted unless the Planning
Commission, or the city Council on review
or appeal, makes the following findings:
(1) The occupancy is in
conformity with the General Plan.
(2) The occupancy is in
conformity with the Comprehensive Land Use
and Zoning Ordinance.
(c) A conditional use permit for
residential occupancy of a property shall
not be granted unless the Planning
Commission, or City Council on appeal or
review, makes one of the following
findings:
(1) The property will be
occupied as a one family dwelling unit and
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the owner agrees to enter into an
agreement restricting use of the property
to such purpose.
(2) If the property is to be
used for multifamily rental housing, the
owner has complied with the requirements
set forth in Government Code Sections
7060.2 and 7060.4 and with applicable
regulations promulgated by the Rent
Control Board.
(3) If the property is to be
used for multifamily housing by more than
one owner of the property, a subdivision
or parcel map is obtained in accordance
with Chapter 3 of Article IX of this Code
and the findings required by subdivisions
(f), (g), (i), and (j) of section 9061. 1
of this Code are made.
(d) This Section shall not apply
to any occupancy following lawful
demolition of units withdrawn pursuant to
the Ellis Act.
SECTION 3. Any provision of the Santa Monica Municipal Code
or appendices thereto inconsistent with the provisions of this
ordinance, to the extent of such inconsistencies and no further,
is hereby repealed or modified to that extent necessary to affect
the provisions of this ordinance.
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SECTION 4.
If any section, subsection, sentence, clause,
or phrase of this ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of the ordinance.
The City Council hereby
declares that it would have passed this ordinance and each and
every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether
any portion of the ordinance would be subsequently declared
invalid or unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall
a ttest to the passage of this ordinance.
The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption.
The ordinance shall be
effective 30 days from i t\ adoption.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
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