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SR-7-A (73)LUTM:PB:DKW:DS/tp270ca.pcword2.plan Council Mtg: April 13, 1993 TO: Mayor and City Council FROM: City Staff ~~~ ~ ~'s~ l. ~ • .`J Santa Monica, Cali~ornia nv ; ~ ~-;; M~- , _ _ . SUBJECT: Appeal of Tenant-Participa~ing Conversion 270, 153 San Vicente Baulevard App~icant: Harry T. Raussos and Theodosius T. Roussos Appellant: Theodasius T. Roussos INTRODUCTION This report recommends that tha City Counci2 deny the appea~ and uphold the PZanning Commission deni.al of Tenant-Participating Conversion {TPC) 270. On March 3, 1993, the Planning Commission denied the propased 30-unit condominium conversion with a vvte of three in favor af deniaZ and twa in fav~r of approval. Withou~ the minimum af four votes, the Planning Commission's ac~ion was aansidered a"technical denial." and no findings couI.d be made. Staff recominends that the Council make the findings for danial contained in this staff repart. DISCUSSION Project Descriptian This is an appeal of the Planning Commission denia]. af TPC 270. The subject building was constructed in Z957 and consists of a ~otal of 5ix 1--bedroom units, twelva 2-bedraam units, and twelve 3-bedroom units (total 30 units) with 46 on-site parking spaces. The application was filed on June 1, 1992. ~ ~ - ]. - ~_ =- ~. - : .i t : ~~: ~`'~~v a . -, The application contains a total of 21 signed Agreement to Conversion ("Agreement") farms and 19 signed Int~nt to Purchase ("Intent") forms. The signed Agreement forms reprasent 70~ of the tatal, which exceeds the minimum af 66.7~ requ~.red. The signed Intent forras represent 63~ a€ the tatal, which exceeds the minimum af 50~ required. The application is subject to the proviszons of Article XX prior to the effective da~e of the Charter Amendment adopted in June of 1992 and, therefore, al]. tenants are required to have resided in their units for a minimum of six ~nanths priar ta signing the Ag~eement or Intent forms. If two ar more Agreement forms or five or more Intent forms are found to be invalid by the City Council, the project will not have the ~minim~xm nux~ber of votes required for approval by Article XX. Several of the cosigning tenants in the subject building did not occupy their units as their principle place of residence and have nat demon~trated that they have paid rent or some other form of consideration to the owner a.n exchange for occupancy of these units. Two of the cosiqning tenants are from one househald which occupies twa units that have been joined by an internal stairway. One of the cosigning tenants requested sta~f to rescind his signature two weeks after the application wa~ filed, but later asked staff to "disregard" the rescission. This data, as well as other information regarding accupancy of the subject building, is summarized in chart form in Attachment A. - 2 - Planning Commission ACtian At the Pianning Commission public hearing, public co~ment and Commission discussion centered on two issues. The first issue is whether tenants can sign Agreement and Intent for~s if they have simply maintained a tenant/landlord relationship for six months but have not actually resided on the property during this time period, The second issue is whether residents af a single household of the property who occupy more than one unit in the building can sign the Agreement and Intent forms for each of the units they occupy. The above issues were discussed by the Planning Commission because the subject building contains seven tenants who did not personally occupy their units as their continuous, principal place of residence priar to signing, and because two of the cosigners resided in units which had been joi~ed and ware occupied by one household. The Camn~ission was not able to come to agreement on how to address these circumstances. After questiQning staff, the applicant, and members of the public, several motions were made which failed to obtain a minimum of four votes. The final moti~n to approve the project failed on a vate of two in fa~or af the motian and three ~n opposi.tion to the mation, Appeal Graunds The applicant appealed the Planning Comm~ssion's actian on March 11., 1993, based on the c~ntention that staf~ has incorrectly - 3 - interpreted TORCA Sectivn 2001(b), which states that a cosigning tenant is "[a)ny tenant agreeing to the conversion by his or her siqnatUre on the Tenant-Participating Conversion Applioatian who has personally accupied his or her unit continuously for a period of at least six (~) manths prior to ~he date he or she signs the Tenant-Participating Canversion Application" (emphasis added) (Attachment F). Section 2001(e} contains similar languaqe defining "Intending to Purchase Tenant[s]." Staff has consistently interpreted this to mean that the cflsigning tenant must occupy the subject unit as his or her principal p~ace o~ residency. Xn the appeal, the appiican~/appellant states that TORCA Section 2002(f) speci~ically identifies "principal place of residency" only for owners who wish to become cosigning tenants. The applicantjappellant argues that, because Sections 2001(b) and (ej require tenants to "personally occupy [their units] continuausly" without citing "principal place of residency," the City cannot require non-owner eosigning tenants to reside in their units as their principal place residence. Furthermore, the applicantfappellant argues that tha staff interpretation reduces the r~ghts of participatfng tenants by requi,ring that they reside i1~ their units in order ta vote ~or a TORCA conversion. occupancy status of co~igning Tenants in the su~ject Building After staf€ mailed the reciuired "Notice to Tenants" an June 6, 1992, notifying them that a TORCA app~ication had been fil~d, staff received eight of these notices back from the United Sta~es - 4 - Post Office marked "Vacant--Return to Sender." These returned notices were far units 2A, 2C, 3B, 3F, 3K, 4A, 4G, and 4K, which are all units for which staff had received signed Agreement and Intent forms. On June 22, 1992, staff recei~ed a letter in which William Maore states that he is the postal employee responsible for delivery af mail to 153 San Vicente Boulevard. He further states that he did not deliver the eight letters returned to the City because: I was told by a person exiting the building that certain units were vacant. There have been problems with missing mail in this building in the past. I noticed that the gang of mailboxes were open and the name labels of the boxes on several units were missing. Since I was told that those units were ~acant, I returned th~ envelopes to the sender. I have del,ivered other mail to individuals in the same units far which I returned this "accupant" mail and I will do so if the City will return the envelopes ta me [Attach- ment R]. Par the Post Dffice's suggestion, staff re-mailed the eight notices, sending them by certi~3ed mai~ with return receipt re- quested. Each of the ret~rn receipts were received by the Plan- ning and Zoning Division with the signature af tha corresponding tenant who signed the "Agreement ta Conversion" forzn. In most cases the signature an the return receipt appears to be signed by the same person who signed the "Agreement" farn~, although there is some variation. (Attachmant T.} Further correspondence from Postal Employee Moore was submitted by the applicant on December 21, 1992. In this letter, Mr. Moore states that he recogniaes the names of the people who are said to - 5 - occupy the units in questian because he has bean delivering mail ta them "for over a year." (Attachment R.} shortly after the original tenant notices were sent, staff received an objection letter ~ram an uninvolved third party, Claire Gould, with a petition signed by 5 tenants attesting to the accuracy of the letter. other objection letters have also been received. (Attachment P.) Ms. Gould's letter states that units 2A, 2C, 3F, 3K, 4A, 4G, and 4Ii were vacant at the time the application was fi~ed; these are seven of the eight units for which mail was returned t~ Planning and Zoning by the Post Office as "Uacant." This data is summarized in chart form in Attachmen~ A of this report. The applicant respand~d to the claims made in Ms. Gould's letter with tenant letters in support of the conversion, copies of leases with the tenants in question, utility laill information, and letters by the tenants in questian explaining the status of theiz tenancy. On Deceraber 29, 1992, the applicant subn~itted letters by Aile~n Handen and Daniel Anzal, two of the tenants who had sfgned a statement ~.ndicating that Ms. Gould's observations were correct. The letters indicate s~pport €or the conversion, but they do nat rescind earlier statements regarding the accuracy of Ms. Gould's observations. (Attachment Q.) As stated on the appeal form, the applicant/appellant does not helieve that Artic~e XX requires cosiqning tenants to occupy their units on a primary or "principal" basis, and he makes no claims that the tenants in question occupied their units as their - & - principal place of residence prior to signing the Agreement and Intent forms. Rather, the applicant/appellant axgues that cosigninq tenants simply must be on leases as the tenants af the property awner far six manths prior to s~gninq the requisite forms. As d~scussed in depth in City Attarney Memorandum 93-4, City staff finds that the applicant/appellant's argument is flawed because it fails to acknowledge the requirement that cosigning tenants "personally occupy" their units "continuously" for six manths prior to sign~.ng the applicable forms. Staff interprets this language to require that each cosigning tenant actually re- side in his ar her unit not necessarily as the exclusive place of residency, but at a minimu~n as the principal place of residency. (Attachment E.) The applicant/appellant fails to acknowledge that the "pxincipal place of residency" c~ause in the TORCA law was added when cer- tain amendments were made to Article XX in November of 1990. One of these amendments was intended to clarify City palicy permit- ting bui.lding owners to become cosigning tenants for the purposes of T~RCA. As noted in City Attorney Memorandum 93-4, the "prin- cipal place of residency" clause was applied to owner cosigners in order to clarify that these cosigners adhere to the same stan- dards applied to non-owner casigners. It intended to clarify the existing charter, not to apply a more strict standard to owners who sign as cosigning tenants as alleged by the applicant/ appellant. - 7 - Based on the information provided by the applicant and the opinian af the City Attarney's oftice, staff believes that seven o~ the casigning tenants did not me~t the minimum requirements af TORCA at the time they signed the Aqreement and Intent forms. Joined Units in the Sub~ect Buiiaing In addition ta the issue of principal residency, the Planning Commission also considered the issue of two units which have been jained and are occupied by ane family, but which were utilized far two Agreement and twa Intent vates on the application, The units in question are numbers 3B and 4B, which are joined by an interior stairway constructed withaut a building permit. The stairway has no door at either end to achieve a separation between the units. On the appZication, Paula Vasilas was the cosigning tenant for unit 3B and her husband, T~d Raussos (the building owner), was the cosigning tenant for unit 4B. Staff believes that the jQined units have the effect of creating one unit for the purposes of TORCA, and therefore the vote of Paula Vasilas (who signed as the tenant of apartment 3B) and the vote of her husband, Paul Roussos (who signed far unit 4B), shou~d count in total as one vote rather than two vates. This issue is discussed further in City Attorney Memorandum 93-4 (At- tachment E of this staff report). Withdrawal at Signature On June 15, 1992, the tenant in unit 3D, Jerry Taug~r, wrote a letter to staff stating that at the time he signed the Agreement - 8 - and Intent forms "there was a great deal af pressure to sign im- ~ediately and I did not have the oppartunity to seek legal advice on the matter. I have since done so and... I wish to rescind my signature on bath the approval and intent forms. Please consider this my formal withdrawal of both signatures." (Attachment P.) On Septem~aer 30, the applicant submitted a letter in which Jerry Tauger requests that staff "disregard" his letter wi~hdrawing his agree~ent to the conversian. (Attachment Q.) Payment of Rent by Tenants In the appea2, the applicant has not disputed the interpretation that, in arder to qualify as a cosigning tenant~ a r~sid~nt with- out an ownership interest in the praperty must pay rent or some other for~ of consideration to the owner in exchanqe for occupan- cy af his or her unit. This issue was raised by staff in the Planning Commission staff report. However, aside from lease agreem~nts which state the minimum monthly rental amaunts far several units, no proof of payment or other for~a of consideration has been submitted by the applicant for the seven cosigning ten- ants who da not occupy their units as their principal place of residence. Conclusion Staff belie~es tha~ the applicant has failed to provide the mini- mum number of valid signatures necessary far a tenant- participating conversion. The applicant does not dispute that that the cosigning tenants in units 2A, 2C, 3F, 3K, 4A, 4G and 4K - 9 -- did nat reside in their units as their principal place of residence for the six months prior to signing the Agreement and Tntent forms, nor does he provide proof that they continuously occupied or even paid rent during this period. Furthermore, staff has verified that units 3B and 4B have been j oined by an interior staircase and are occupied by one household. If the vates for units 3B and 4B are counted as ane vote, and the cosigning tenants without principal residency at the subject building are not counted, the applicati~n cantains a tota~ of 13 valid Agreement signatures, or 43~ of the total, which is less than minimum of 66.7~ required for approval. Bec~use the ap- plication does nat meet the minimum requirements of TORCA, staff recom~ends that the City Council deny tha appeal and uphold the Planninq Cam~nission's denial o~ TPC 270 based on the findings contained in this staff raport. PUBLIC NOTiFICAT2dN Pursuant to Municipal Code Section 9.04.20.22.050, natice of the public hearing was mailed to all owners and residentiai and com- mercial tenants o~ property within a 300' radius of the project site at least ten consecutive calendar days prior to the hearing. A copy of the notice is contained in Attachment V. BUDGETf FINANCIAL IMPACT The recammendation present~d in this report does not have any budget or fiscal impact. - la - RECOMMENDAT~ON Yt is respectfully recammended that the Council deny the appeal and uphold the Planning Co~n-ission's denial of TPC 270 based on the following findings: Tenant-Participating Conversion Findings 1. This Tenant-Participating Conversion Application does nat meet the requirements af Artic~e XX of the City Charter of the City of Santa Monica. [reference Sec. 20~4 (a), Arti- cle XX] 2. The Tenant-Participating Conversion Application has been dee~ecZ compZete and accepted for fil~ng. At the time of filing it met the requirements of Section 2002 af Article XX of the City Charter far a complete applicatian. IIowever, based an data submi~ted since that time, it has been determined that the application fails ta meat a11 of the requirements of Section 20D2 of Article XX of the Cit~ Charter. The sub~ect application was signed by cosigning tenants occupying 70~ (not less than twa-thirds) of all the resxdential units in the building. However, eight o£ these signatures have been obtained from tenants who have not been shown to qualify as Casi.gning Tenants. These individuals are Gus Konugres (unit 2A), Pauline Pappas (unit 2C), Paula Vasilas ~unit 3By, Nick Kalli.ns ~unit 3Fj , Perry sohnson (unit 3K) , Saphie Vasi.l.as (unit 4A) , John Strike (unit 4G), and Anthany Vasilas {unit 4K). Paula Vasilas occupiea a unit which is joined to another unit for which a vote has also been cast. As a total of one vote is permitted per household, Ms. Vasilas' vote is not vaii~. For the remaining tenants 3isted above, the applicant has not dem~n6trated that they personally and continuausly occupied th~ir units as their principal residences for the six manths prior to signing the "Agree-- ment to Conversion" form, as requ~red under Section 2001(b). Without these vo~es, the app].ication does not contain the minimum of 2/3 tenant appraval required by Article XX. Tentatzve Map ~indings 1. The proposed subdivision, together with its pro~isians for its design and improvem~nts, is incansistent with Article XX of the C~ty of Santa Monica Charter. .. }1 ~ ATTACHMENTS: A. B. Chart Summarizing Tenant Status in Subject Building. P~anning Commission Staff Report Without Attachments Associated Attachments Are Incorporated Herein). Planning Commission Supplemental Staff Report. P3.anning Commission Statement of Officia~ Action. City Attorney Memorandum 93-4. Appeal Form. Summary Cover Sheet. Unit/Tenant Infarmation Sheet. seller/Financing Information Sheet. Parking Plan. Summary Cavenants, Conditions and Restrictions. Tenant Notice. Repairs and Alteratians. Radius Map. Tract Map. Correspondence in Objection to Application. Correspondence in Support of Application. Correspondence from Post Office Carrier. Carrespondence from Staff. (All C. D. E. F. G. H. I. J. K. L. M. N. O. P. Q• R. S. T. Agreement to Conversion Forms and Return Receipts for units 2A, 2C, 3B, 3F, 3K, 4A, 4G, and 4K. U. Lease Agreements. V. Ci~y Council Public Notice. Prepared by: Paul V. Berlant, Directar of Land Use and Transportation Management D. Kenyon Webster, Principal Planner Drummond Buckley, Associate Planner Planning Division Land Use and Transportation Management Department DB PC/tp270cc 04/0&/93 - ~2 - A T~'A CHMEIIT~' A OCCUPANCY CHARACTERISTiCS A'F 153 SAN VICENTE (TPC 270) pa~e 1 A t. No. of Tenant Names Len~th of A~ed to Jntent to purchas Commerrts No bedrooms (as Shown on A Ilcation) occu anc canversion farm siyned µ ~ "^'"' ' months ~ - 2A t Gus Konu~res 6 x x Gould letter states he did not reside here at time app was filed 2B 2 ~dith Nichols 177 x Daes nof claim that this is his pr~mary res~dence - ~ --. -- x 2C 3 Paul~ne Pa as 89 x x Gauld letter states that unit ~s ut~lized for storage purposes 2D 3 Katia Noune 113 ~ Ms Pa ~ as skates she spends "~art oF the yea~' in unit " ' x x 2E 2 A~leen Handen ~~ x .. - 2F T ~iedre Wood 42 x ~ 2G ~ ~ John P b~ janet Baker ~68 x x 2H 3 Sherman L. State 7G x x Gauld letter states he lived irt umt less than Zb mos stated on app 21 3 Tana & Jeanene Herstt-old 220 x Mr Sta states unit has~~been h~s onl residence smte Feb, 1991~. x 2K 2 Daniel Anzel 771 x 3A 3 Ted Leff 2y $ --- -- 36 2 Pc~u1d Vasilas 45 x x --_.. Unit ~s ~ofned to unit 4B w~th sta~r~ase with no door at either end - 3C 3 Me er Rub~n 187 Ms Vasilas states this u~it is her "separate apartment " ~ - - - 3D 2 ~er Tau~er ~ 240 x x Withdrew s~gndture ]une 15, 1992 3E 3 Me er S~ Erre{~delman 1gg Asked staFf to "disre ard" withdrawl on September 30, 1992 -- , 3F 1 Nick Kalims ~ T 18 ,_ x _ x Gou~d letter states that umt ~s vacant "to tenants' best~knowledge~" -•- .. __.._- . Kallins states he is tenant af unrt, but does not state it ~s' rimary res --...~ ,... _. -_._~__.~_... . ~ ' ~ ; , , ~ ,' 's` f, .~ ~ r ~ ~ ~ ~ ~ , S V~ ~ i .~ ~ { . ; ' ~ ;7 ; s ;i ~ . .; -: ~ , __; .~ a~ :' .~ ~ _~ :, .~ ~ J i 4 .~ ,'~ I ~ Y ~ ; _x ~ ; T III ~ OCCUPANCY CHARACTE~iiSTkCS AT 153 SAN VICENTE (TPC 270) page 2 A t. ~ lYo of 7'enant Nam¢s Len~th pf A reed fa Mtent to purchas Comrrients W Na bedrooma _(ns Shown on ApplrcatFon) ~ occu anc converslan form signed __ months 3G 2 Ral~h F~ JoYce BurEin 170 x x ~ 3H 3, Manlyn So 20p ~~~~ ~ 3J 3 Mar o Uorrr~er 147 3K _ 2 Per ~ohnson ~~ 28 x x Gould letter staies unit Es vacant "ta the tenanu' best knawled~e " Johnson siates he is tenant of ur~+t, hut does not state it is nma res 4A i ~ So hie Vasdas ~~~ 9 x x Gould letler states umt is vacant "to the tenants' best knowied e" Vasdas states that she hves "part o the year in Califorma " 48 2 Ted Roussos 103 x x tonnected by sta~rtase wiih unit 36, in wh~th Mr. Rpussos's w~fe tis ~ Eisted and has si ned as a se arate tenart 4C 3 Pauline AndBrson ~ 75 ~ ~ 4D 3 M~Iton &~ Leah Bassln 203 ~~ ~~~ 4E Z Harry itoussos SS x ^ x 4F 1 tharles & Rosemary Ames 177 x x 4G 2 John Stnke 42 x x Gauld iettar states umt is vacant "to the tenants' best Icnowiedge" Strilie states untt ts "soie res~dence in [al~forma" lput also lrves in qh~o 4H 3 Vrvian Island 237 ~ 4~ 3 Herman S~ jeanette Cowen 169 x x ~ ~ 4K 2 Anthony Va5~~as ~ 4+1 x x Goul~etter states umt ~s va[ant "to the tenanks' best k~ow~ed e." Vasdas does not claim this unrt as r~ma residence ~ 1~1,~111Y1~1 Y ~ L