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City Council Meeting 5-8-90
Santa Monica, California
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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 seg.
At its October 17, 1989 meeting, the City council requested
that the city Attorney prepare a report on any problems with the
Tenant Ownership Rights Charter Amendment (" TORCA") .
At its
meeting on January 16, 1990, the City Council requested that the
City Attorney include within this report a response to concerns
raised by the Rent Control Board.
The city Council is well aware of the significant impact
that the Ellis Act has had on the City'S ability to protect its
affordable rental housing stock.
Moreover, the passage of the
Ellis Act has created substantial opportunities for abuse of
existing City programs. In this regard, particular attention has
been focused on the ways in which the TORCA approval process has
or could be abused as a result of the Ellis Act.
First, when seeking tenant approval of a TORCA conversion,
owners have threatened or suggested that they might utilize the
Ellis Act if tenants do not agree to the proposed conversion. By
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raising the Ellis Act in this manner, owners have created a
highly coercive environment in which tenants must make the
critical decision whether to authorize a TORCA conversion.
Second, an owner can now evict existing tenants under the
Ellis Act before filing a TORCA application, thereby enabling the
owner to subsequently rerent the building with specially selected
tenants. While the Ellis Act does provide penalties for early
rerental of withdrawn property and gives the original tenants the
right to reoccupy their units if rerented by the owner, neither
of these provisions are sufficient to prevent TORCA abuse.
Significant penalties only apply if the rerental occurs within
one year of the Ellis withdrawal. Moreover, landlords have
offered tenants cash payments to relinquish their right to
reoccupy so that the landlords will then be free to rent to
tenants of their choice.
Third, owners have made offers to buy-out a tenant's right
to purchase a unit prior to obtaining the necessary tenant
approval for the TORCA project. Once tenants vacate their units
under this option, the owner is entitled to sell the unit at the
prevailing market rate. Buy-out arrangements of this nature
effectively defeat the goal of TORCA since tenants do not
purchase their units and the supply of affordable housing
accommodations is not maintained. While buy-out arrangements are
not directly linked to the passage of the Ellis Act, the coupling
of such offers with the Ellis threat has a significant impact on
the TORCA process.
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This office proposes the following amendments to TORCA to
prevent the abuses described above:
1. Charter section 2001 (1) has been modified to define a
qualifying building eligible for TORCA conversion as a
residential rental building in which no eviction has occurred
pursuant to the Ellis Act for a five (5) year period prior to the
filing of a conversion application and no eviction has occurred
at the building for owner-occupancy for a two (2) year period
prior to the filing of the conversion application.
2. Charter Section 2002, which sets forth the information
that must be included in a TORCA application, has been modified
to require an owner to declare that in obtaining the signatures
of cosigning tenants and intending to purchase tenants, the owner
has not offered or agreed to buy-out tenants' right to purchase a
unit in the building. An application that does not contain this
declaration will not be accepted for filing.
3. TORCA provides that a TORCA application shall be denied
if the application is the result of coercion. Charter Section
2004 (a) has been modified to provide that if an owner of a
building raises the possibility that the Ellis Act will be
invoked if the tenants do not agree to the TORCA conversion, the
application will be presumed to have been coerced. The burden
shifts to the owner to establish that the application was not the
result of coercion.
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This office has also prepared the following additional
proposed amendments to TORCA which either clarify existing law or
strengthen certain TORCA requirements:
1. TORCA grants Participating Tenants a two year period to
purchase their units upon the terms establ ished in the TORCA
application. TORCA further authorizes an owner to raise the
established sales price for a Participating Tenant's unit at the
beginning of the second year according to changes in the Price
Index. Charter Section 2004(b) (2) has been modified to clarify
that this adjustment in the sales price can only occur if the
Participating Tenant has not already agreed to purchase the unit
at the original price established in the TORCA application. This
amendment is declaratory of existing law.
2. Charter section 2004(b) (7) has been modified to clarify
that the eviction and price control protections provided in this
Subsection are in addition to the protections establ ished by
Charter section 2004(b}(3} and the Santa Monica Rent Control Law.
The amendments of this section are declaratory of existing law.
3 . A new Charter section 2004 (b) (8)
provide that non-purchasing Participating
evicted from their units pursuant to the
amendment is declaratory of existing law.
has been added to
Tenants cannot be
Ellis Act. This
4. The TORCA application must establish a list of the
repairs and alterations which will be performed before the close
of the first escrow. However, these repairs and alterations are
often not completed in a timely fashion. A new Charter Section
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2004 (b) (9) has been added to provide that for each day that an
owner fails to complete repairs and alterations in the time
required, the established sales price for the units at the
building shall be reduced by $100.00.
5. Charter section 2004(b) (12), formerly section
2004 (b) (8), has been modified to expand the non-discrimination
clause required in the Declaration of Covenants, Conditions, and
Restrictions to include prohibiting discrimination in the sale,
leasing or occupancy of a un! t based on handicap or Acquired
Immune Deficiency Syndrome (A.I.D.S.).
This office has also examined whether the City Council could
enact a moratorium on the processing of TORCA applications
pending a vote on the above amendments, but has concluded that
the Council does not have the authority to impose a moratorium on
the operation of TORCA. See Currieri v. city of Roseville, 4
Cal. App. 3d 997, 1001, 84 Cal. Rptr. 615, 617 (1970) (city
council cannot through ordinance change or limit the effect of a
city's charter); stuart v. City & county of San Francisco, 174
CaL App. 3d 210, 207, 219 Cal. Rptr. 770, 773 (1986) (charter
provisions supersede inconsistent municipal laws, ordinances,
rules, and regulations).
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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 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) cosiqning 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 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.
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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 Hoderate 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 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) Middle 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 B(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
United 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
fallowing 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 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
$
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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 I 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.)
(I). 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 (relatinq to
eviction for purposes of owner occupancy or
occupancy by relative of the owner) within a
two (2) year period prior to the filinq of an
Application for Tenant-Participatinq
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
or any other means authorized
(0)
apartments,
associations,
cooperatives
under state law.
(p) Tenant-participating 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
application and contains a declaration
such building is a qualifying building.
(b) Sets forth, for each tenant occupied
unit, the following sales information:
the
that
(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 assignment 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 del i vered 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.
I f there 1S more than one tenant in a unit,
the signature of only one tenant shall be
required.
(g) Identifies the cosigning tenants and
the units occupied by such tenants and lists
all other tenants known to the owner in the
building and the units they occupy.
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(h) Contains a declaration that the
signature of each cosigning tenant was
obtained only after the delivery, in writing,
to such tenant of the information required in
Subsections (a) (b) (c) (d) and (e) of this
Section.
(i) contains a declaration
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
tenant in a unit, the signature of only one
tenant shall be required.
(k) contains a declaration that in
obtaininq the signatures of cosiqning tenants
and intendinq to purchase tenants, the owner
neither offered nor aqreed to pay money or
other financial consideration to
participatinq tenants if the tenants would
release all riqhts that they had to purchase
a rental unit in the building.
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(1) 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 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 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 Subdi vision Map Act of
the state of California.
A Tenant-Participatinq conversion
Application shall be presumed to have been
coerced if the owner I or any representative
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or aqent thereof, stated or sugqested to the
tenants that the owner, or any successor
thereof, rniqht cease operating the property
as residential rental property pursuant to
Government Code section 7060 et seq. (lithe
Ellis Act") if the tenants did not aqree to
the proposed conversion of the buildinq
pursuant to this Article. Once this
presumption arises, the owner shall have the
burden of proof to establish that the
application was not the result of coercion.
(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
wri tten 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
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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 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 participating tenant has
already provided the owner with written
acceptance of the offer, the Tenant I s Sale
Price may be adjusted at the beginning of the
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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
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 I
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.
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(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 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
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
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.
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(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
filing of the written consent required by
Subdivision (b) (1) of this Section, each
participating tenant shall be informed in
wri ting, 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 uni t
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
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the owner, or for demolition of the unit. In
addi tion, should the maximum allowable rent
provision of Article XVIII of this 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 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 enti tIed 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
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filing of the Tenant-Participating Conversion
Application.
(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 building1s common areas or agreed to
capital improvements for the unit.
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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 protection of this Subsection.
For purposes of this Subsection, "Just
cause II 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-purchasinq Participating
Tenants shall not be subject to eviction
pursuant to Government Code Section 7060 et
seq. ("the Ellis Actll).
(9) For each consecutive calendar day
that an owner fails to timely complete the
repairs and alterations agreed to pursuant to
Section 2002(c) (4) of this Article, the
maximum sales price for each unit at the
building shall be reduced by one hundred
dollars ($100.00).
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(10) The requirements of this section
shall be set forth in the Declaration of
Covenants, 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 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.
conversion Tax
in
the
the
this
(11) The
Tenant-participating
manner required by
Article.
owner
shall
pay
section 2008
of
(12) The Declaration of Covenants,
Conditions, and Restrictions, or equivalent
document, shall contain a non-discrimination
clause in substantially the following form:
"No unit owner shall execute or file for
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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.) 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, mari tal status,
family composition, handicap, Acquired Immune
Deficiency Syndrome (A.I.D.S.) or the
potential or actual occupancy of minor
children."
(13) 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
the Subdivision Map Act of the state of
California, or if no such map is required, if
the written consent required by Subdivision
(b) (1) is not filed within the required time
period.
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THOMAS A NITTI
ATTORN EY AT LAW
IB.21 WILSt-rIRE eOUi...EVARt; SUITE 230
SANTA MONICA. CALIFORKIA 90403
(2-3) 829-2287
May 15, 1990
Santa Monica city council
1685 Main st.
Santa Monica, California
re: TORCA Study Session and hearing
May 15, 1990
Dear Councilmembers,
I have two comments on the proposed TORCA amendments:
1) Ellis "coercion".
The City Attorney seems to think that the word "Ellis" is
coercive.
Ellis is a State Law, and a state created right. Although
Ellis may be politically unpopular, Ellis is a legal option to
owners. To label discussion or threat of its potential use
"coercive", is wrong. The right to Ellis is a protected right,
guaranteed under state law. It is not coercion to exercise a
protected right, or announce one's intention of doing so.
In addition, the City Attorney sets forth no rational basis
for identifying only "Ellis threats" as coercive, when there are
various other ways an owner can go out of business. In addition to
Ellis, the Rent Control Charter Amendment allows category "AtI,
"Btl, "C", and "DII removals, as well as owner occupancy evictions.
For example, if an owner says to a tenant "If you don't agree
to TORCA, I'll remove this building under Category C (or A or
B or D}".
Is this coercion, or economic reality?
Isn't this allowable under City law?
Why shouldn't the owner be honest with the tenants?
Does the City plan to rewrite the laws of economics?
What happened to free speech?
2) 5 year prohibition on TORCA after Ellis.
The City recently passed a new law prohibiting groups of
owners from occupying tlEllisedll buildings (this is now considered
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an illegal subdivision). The city now has nothing to fear from
owner groups.
In regard to the allegation that an owner can hand pick new
tenants for an Ellised building, Ellised tenants have a right of
first refusal for 10 years on any Ellised building - they need
only file a simple form with the rent board. This effectively
prevents TORCA's composed of the owner's selected tenants, since
an Ellised building must first be offered to the Ellised tenants
before it can be rented. Rental is required prior to TORCA.
Respectfully,
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Thomas Nl.tti
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g.t.IoTEOI'~
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DEPARTMENT OF REAl. ESTATE
SUBDJV)SJO~S
PLANNED CONSTRUCTION STATEMENT
Read instrUctions on reverse
sule before completing.
RE611A(Rev.3/89) {FonnulyRE611.1]
SIZE DESCRIl'TION COST Es11:MATED
OR (including ty~ cf construction, mmerials, EsTIMATE COMFlEJ10....
QUA.N-III" ekcmcal and muhanicalfealures) DATE
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RE OllA
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Inmuctions
The Planned Construction Statement Is to be attached and made part of RE 611 (Bond A Completion of Common
Facl1itIes)A
List -and describe. insufficient detail for verification by Construction Cost Estimator. the construction features to be
bonded for completi_on.
Auach a copy of the overall Project Plot Plan (reduce if necessary). no larger than 11" x 16".
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If completion dates for construction is more than one yearm the future. add cost increase factor based on your best estimate
to reflect inflationary factors.
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Page 2 of2
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SIZE DESCRD'110N COST EsTIMATED
OR (including rype of construction. maleriDls, Est1MATE COMPLE'110"l
QUJ.looi 10 i electrical and mechanicalftallU'ts) DA.TE
20' x 40' Pool. Masonry..Qunite, plastered, with associated plumb- S 8.500 June 1990
ing. 1-180.000 B.T.V. Heater, filter-type. 1-1/2 h.p., circu-
lating pump. automatic chlorinator. ,
65,450 S.P. Sodded blue grass. etc. $ 30.000 June 1990
45.000 S.F. Ground cover - describe $ 20.000 June 1990
17 Size Trees - Shrubs, etC. - June 1990
110,450 S.F. Sprinkler System, Automatic Timers. etc. $ 12S.00J May 1990
?? L.F. Private Roads and Driv~ways - -
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TOTAL COST $
Add for Increase 20% $
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-. - - TOTAL ADJUSTED COST $
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Sampu Planned COlmructWn Stlltem'e'nt