SR-11-A (19)
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city council Meeting 6-26-90
JUN 2 6 1990
11(\3- D'~
Santa Monica, California
fJJL 3 mn
STAFF REPORT
TO: Mayor and city council
FROM: City Attorney
SUBJECT: Proposed Amendments to Tenant ownership
Rights Charter Amendment, Santa Monica
city Charter section 2000 et seq.
At its May 15, 1990 meeting, the City council requested that
certain revisions be made to this office's proposed amendments to
the Tenant Ownership Rights Charter Amendment
( "TORCA ") .
Additionally, this office again met with Paul DeSantis to discuss
the proposed amendments to TORCA.
Based on the directions
received from the city council and the discussions with Mr.
DeSantis, this office offers the following changes to the
proposed amendments to TORCA:
l. Charter Section 2002 (f) has been modified to provide
that an owner shall be considered a cosigning tenant if the owner
has continuously resided at the building as his or her principal
place of residence for at least six months prior to beginning to
solicit the required tenant approval for the TORCA conversion.
However, this broadened definition of cosigning tenant shall not
be apply if the building has previously been withdrawn from the
residential rental business pursuant to the Ellis Act, unless the
owners were tenants in the property at the time of the
withdrawal.
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JUN 2 () 1990
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:2. Charter section 2002 (j) has been modified to provide
that an owner shall be deemed an intending to purchase tenant if
the owner meets the same requirements discussed above for being a
cosigning tenant.
3. Charter section 2004(b) (9) has been modified to provide
that no owner shall close the first escrow without completing the
repairs and alterations agreed to pursuant to Charter section
:2002 (c) (4) unless the owner obtains an extension of time, not to
exceed ninety days, from the tenant who is purchasing the unit
first to close escrow and the owner posts a bond approved by the
Department of Real Estate in an amount sufficient to cover the
cost of the work. This section has further been modified to
provide that the City's Building Officer can agree to an
additional extension of time to complete the repairs and
alterations if more time is reasonably required to complete the
work. Finally, this section provides that the failure to
complete the work in the required time period shall result in a
daily penalty of $250.00 for the first day and $100.00 for each
day thereafter. No total penalty shall be greater than two times
the cost of the repairs and alterations not timely completed,
except that the minimum penalty shall be $250.00.
4. In its May 8, 1990 staff report, this office proposed
that Charter Section 2002 (k) be added to require an owner to
declare in the TORCA application that in obtaining the required
tenant signatures, the owner did not offer or agree to buy-out a
tenant's right to purchase a uni t in the building. Charter
Section 2004(b) (10) has been added to similarly prohibit tenants
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from offering or agreeing to release all rights that they have to
purchase rental units in the building in return for receiving
money or other financial consideration from the owner.
5. The modification to Charter section 2004(a} proposed in
the city Attorney's May 15, 1990 staff report has been deleted.
This proposed amendment had provided that an owner's threatening
to utilize the Ellis Act if the TORCA conversion did not occur
would be evidence of coercion. This office now believes that the
owner declaration proposed in Charter section 2002(1) when
coupled with the general prohibition on coercion in Charter
Section 2004{a) will be sufficient to prevent owners from seeking
to obtain tenant approval of a TORCA conversion by threatening to
utilize the Ellis Act.
6. At the request of the Housing Division, Charter Section
2009 has been amended. A new subsection (c) has been added,
which provides that monies derived from the Tenant-participating
Conversion Tax can be appropriated by the City council for
assisting the City or a nonprofit housing development corporation
to purchase units for lease or resale to low, moderate, or middle
income households. This change was reviewed by Paul DeSantis and
received his approval.
7. This office's proposed modifications to Charter Sections
2001(l), 2002{k), 2002(1}, 2004(b)(2), 2004(b) (7), 2004(b)(8),
and 2004(b) (12) contained in its May 8, 1990 and May 15, 1990
staff reports remain unchanged.
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RECOMMENDATION
It is respectfully recommended that the City Council direct
the City Attorney to prepare the necessary resolution to submit
the attached proposed amendments to the voters at the November
general municipal election.
PREPARED BY: Robert M. Myers, city Attorney
Barry A. Rosenbaum, Deputy City Attorney
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PROPOSED AMENDMENTS TO TORCA
Santa Monica City Charter section 2001 is amended to read as
follows:
SECTION 2001. Definitions. For
purposes of this Articler 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) cosiqninq 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.
(c) Disabled PersoD. 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.
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(d) Intending to Purchase Tenant. Any
tenant who has personally occupied his or her
unit in the building continuously for a
period of at least six (6) months immediately
preceding the date the tenant signs a Tenant
Intent to Purchase.
(e) 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.
(f) Low and Moderate Income Households.
Persons and famil ies 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 8(f} (3) of the United
states Housing Act of 1937, as amended, or if
programs under Section 8 (f) are terminated,
eighty percent (80%) of the median gross
income determined under the method used by
the Secretary prior to such termination.
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(g)
Kiddie Income Households.
Persons
and families whose income exceeds eighty
percent (80%) but is less than one hundred
and 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 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 less than one hundred
twenty percent (120%) of the median gross
income determined under the method used by
the Secretary prior to such termination.
(h) Owner.
Building.
The owner of a Qualifying
( i) participating Tenant. Any tenant,
including both cosigning and non-cosigning
tenants, residing in the building at the date
of the approval of the Tenant-Participating
Conversion Application.
(j) price Index. The index for Urban
Wage Earners and Clerical Workers, United
states city Average, as published by the
Uni ted states Bureau of Labor statistics, or
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in the event such index is discontinued any
comparable index.
(k) 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 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
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the sales price indicated on the form if you
are able to obtain satisfactory financing and
if the application is approved.
IF, AFTER FINAL APPROVAL OF THE
CONVERSION, 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 units in this
building and other information on the
Tenant-Participating Conversion Appl ication
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
$
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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
an correct.
(Signed and Separately Dated by Intending to
Purchase Tenant(s) and Owner.)
(1) 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 filinq of an Application
for Tenant-Participatinq Conversion and for
which no eviction has occurred pursuant to
section 1806(h) of this Charter (relatinq to
eviction for purposes of owner occupancy or
occupancy by relative of the owner) within a
two (2) year period prior to the filing of an
Application for Tenant-Participating
Conversion.
(m) Senior Citizen. Any person
sixty-five (65) years of age or older.
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(n) Tenant.
authorized tenant
residential rental
Tenant-participating
is being processed.
Any person who is an
of an owner of a
building for which a
Conversion Application
form
of
Tenant Ownership. Ownership in the
either condominiums, community
stock cooperatives, cooperative
limited equity stock
any other means authorized
(o)
apartments,
associations,
cooperatives or
under state law.
(p) Tenant-Participatinq Conversion.
Any conversion to tenant ownership
implemented pursuant to this Article.
(q) Tenant's Sales Price. The maximum
price for each unit as set forth in the
Tenant-Participating conversion Application.
Santa Monica city Charter Section 2002 shall be 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:
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(a) Identifies the building, and its
owner, which is the subject of the
appl ication 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) The minimum down payment for
each unit.
(3) If seller financing will be
offered, the minimum amount to be financed,
the maximum rate of interest and the minimum
term of the loan offered by the seller.
(c) Sets forth, for
following common areas,
budget information:
each unit,
maintenance
the
and
(1) The plan for the ass ignment
and use of parking spaces.
(2) The plan for the use of all
common area facilities.
( 3 ) The occupancy and management
plans and policies.
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(4) A list of all repairs and
alterations, if any, which will be performed
before the close of the first escrow.
(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.
(7) The procedures for 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 three (3) months.
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(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
ownership for
submitted.
forth
which
the
the
form of tenant
application is
(f) Is signed by cosigning tenants
occupying not less than two-thirds (2/3) of
all the 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 a
cosigning tenant if: (1) the owner has
continuously resided at the buildinq as his
or her principal place of residence for at
least six months prior to the date the owner
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beqan 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 7060 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.
(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
lawful notices have been given
application for conversion.
that
of
all
the
(j) Has attached to the application
statements of Tenant Intent to Purchase,
signed by Intending to Purchase Tenants
occupying not less that fifty percent (50%)
of the total number of residential units in
the building. If there is more than one
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tenant in a unit, the signature of only one
tenant shall be required.
For purposes of this subsection, an
owner of the buildinq 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 beqan to solicit tenant
approval for the TORCA conversion and (2) the
~uildinq has not previously been withdrawn
from the residential rental business pursuant
to Government Code section 7060 et seq.,
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
~nd intendinq to purchase tenants, the owner
nei ther offered nor agreed to pay money or
other financial consideration to
participatinq tenants if the tenants would
release all riqhts that they had to purchase
~ rental unit in the buildinq.
(l) contains a declaration that in
obtaining
tenants and
the siqnatures of consiqninq
intending to purchase tenants,
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nei ther the owner nor the owner's aqent 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. (lithe
Ellis Act") if the proposed conversion of the
building pursuant to this Article did not
occur.
(m) That, for each tenant occupied unit,
a Tenant Intent to Purchase has been
delivered to the unit or a tenant occupying
the unit.
Santa Monica City Charter section 2004 shall be amended to
read as follows:
SECTION 2004. Approval or Denial of
Tenant Participating Conversion Application.
A Tenant-Participating Conversion Application
shall be approved or denied wi thin 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
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Tenant-Participating Conversion Application
fails to meet any of the requirements of this
Article, was the result of fraud,
misrepresentation, or threat or similar
coercion, or fails to meet any mandatory
requirements of the Subdivision Map Act of
the state of California.
(b) A Tenant-Participating Conversion
Application, 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.
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,
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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 addition 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 participating 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 approval by the
California Department of Real Estate is
required. Unless a participatinq tenant has
already provided the owner with written
acceptance of the offer, the Tenant's Sale
Price may he adjusted at the beginning of the
second year according to any change reflected
in the Price Index occurring during the
preceding year. Upon the written acceptance
of the offer by the participating tenant at
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any time wi thin 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-Participating Conversion Application
be evicted for the purpose of occupancy by
the owner, occupancy 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 other person. However, in the event
such transfer is to someone other than the
participating tenant, the transfer shall be
expressly made subj ect 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 XV!II of this Charter,
except Section 1803(t}, before, during and
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after any Tenant-Participating Conversion.
If any unit is rented, the maximum allowable
rent for each unit shall be no greater than
the maximum allowable rent allowed under
Article XVI!! 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
ci ty may impose reasonable health or safety
requirements consistent with this Article
upon such buildings provided that such
requirements uniformly apply to all similar
multiresidential structures in the City of
Santa Monica, regardless of the form of
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 map is required, prior to the
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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, of
his or her rights under this Article.
(7) In addition to the
protections of Subdivision~ (b)(3) and (b) (4)
of this 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 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 for demolition of the unit. In
addition, should the maximum allowable rent
provision of Article XVIII of this Charter no
longer apply, the rent for each such unit
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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 buildings
common areas or agreed to capital
improvements for the unit. 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 pre-deceases 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 Conversion Application,
and must have resided in the unit for a
continuous period of six months prior to the
filing of the Tenant-Participating Conversion
Application.
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(B)
All
other
non-
purchasing Participating 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 form
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 demol i tion of the unit. In
addition, during this time period, should the
maximum allowable rent provisions of Article
XVIII of this Charter 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.
All rights under this Subsection
expire upon the termination of
shall
the
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landlord-tenant relationship between the
owner and the participating tenant entitled
to the protection of this Subsection.
For purposes of this Subsection, "Just
cause" means one of the reasons set forth in
Subdivisions (a) through (g) of section 1806
of this Charter.
This Subsection shall be interpreted in
accordance with Santa Monica city Attorney
Informal Opinion Number 84-57. All
amendments to this Subsection are declaratory
of existing law.
(8) Non-purchasing participatinq
Tenants shall not be subject to eviction
pursuant to Government Code Section 7060 et
seq. ("the Ellis Act").
(9) No owner shall close the
first escrow without completing the repairs
and alterations aqreed to pursuant to Section
2002(c) (4) of this Article. The time to
complete the repairs and alterations may be
extended for a period not to exceed ninety
(90) days if the tenant purchasinq the first
uni t aqrees to the extens ion and the owner
provides a bond approved by the California
Department of Real Estate in an amount
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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
al terations upon f indinq that the owner has
diligently sought to make the repairs durinq
the initial extension period and that
additional time is reasonably required to
complete the work.
In addition to any other remedy provided
by law, for each consecutive calendar day
that an owner fails to complete the repairs
and alterations agreed to pursuant to Section
?002(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
~hall exceed two (2) times the cost of the
repairs or alterations that were not timely
90mpleted by the owner, but in no event shall
the penalty be less than $250.00.
(10) Prior to the filing and
approval of the Tenant-Participatinq
Conversion Application by the Planninq
Commission or City Council on appeal, no
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participating tenant shall offer or aqree 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.
(11) The requirements of this
Section shall be set forth in the Declaration
of Covenants, condi tions, 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 is required, prior to the filing of
the written consent required by Subdivision
(b) (I) 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.
( 12 ) The
owner shall
pay
Tenant-Participating
manner required by
Article.
Conversion Tax
in
the
the
this
Section 2008
of
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(13)
The
Declaration
of
Covenants, Conditions, and Restrictions, or
equivalent document, shall contain a
non-discrimination clause in substantially
the following form: UNo 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."
(14) The approval of a
Tenant-Participating Conversion Application
shall expire if any required final
subdivision map or final parcel map is not
approved within the time periods set forth in
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the Subdivision Map Act of the state of
california, or if no such map is required, if
the written consent required by Subdivision
(b) (l) is not filed within the required time
period.
Santa Monica City Charter section 2009 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) In accordance with Section 2000(d}
of this Article, to assist Low 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 and gains on resale. Priority
shall be given to assisting Low and Moderate
Income Households in Limited Equity
Tenant-Participating Conversions. For at
least the first two (2) years from the
receipt of the first payment of the
Tenant-Participating Conversion Tax under
this Article, a substantial portion of the
tax proceeds shall be used for assisting
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"
.
.
Limited
Conversions.
(b) Up to one-sixth of the revenues
derived from Section 2008 may be used to
assist Middle Income Households in
Tenant-Participating Conversions to purchase
or improve their units if the city Council,
by five (5) affirmative votes, determines
that the needs of Low and Moderate Income
Households have been fully satisfied.
(c) To assist the city or a nonprofit
housing development corporation to purchase
units, for which a Tenant Participatinq
Conversion Application has been approved, for
lease or resale to Low, Moderate, or Middle
Income Households, provided that any unit so
acquired shall be subject to limited equity
resale provisions.
(d) To pay for reasonable and
Equity
Tenant-Participating
necessary costs of administration of programs
required to meet the purposes of this
Section.
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