SR-09-11-1990-6A
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SEP 11 ~990
California
C/ED:CPD:DKW:JMG
PC/csttplOa
Council Keeting:
Santa Monica,
September 11, 1990
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Certification of Statement of Official Action for a
Tenant Participating Conversion (TPC) loa to Allow
Conversion of an Eight Unit Apartment Building to
Condominiums at 1518 Yale street.
INTRODUCTION
This report transmits for City council certification the
statement of Official Action for the above listed eight unit
tenant participating conversion at 1518 Yale Street.
BACKGROUND
After public hearing and careful review of the record and staff
recommendations, the city Council approved the proposed Tenant
Participating Conversion on August 7, 1990.
RECOMMENDATION
It is respectfully recommended that the City Council approve the
attached Statement of Official Action which contains findings
and conditions of approval for TPC 108.
Prepared By: Johanna GUllick, Associate Planner
D. Kenyon Webster, Principle Planner
Paul Berlant, Director of Planning
Attachment
JMG
PC/CSTtp108
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STATEMENT OF OFFICIAL ACTION
PROJECT
NUMBER: TPC 108
VTM 49372
LOCATION: 1518 Yale street
APPLICANT: Carol Nolan, Diane Perlov, Paul Rosenstein
REQUEST: Approval of an a-unit Tenant-participating Con-
version and Tentative Map
Summary Information
Number of Total Units
a
Units with Cosigning Tenants
Units with Tenants Signing
Intent to Purchase
6 (75% of total units)
4 (50% of total units)
Units with Senior or
Disabled Tenants
2 senior citizens
Owner(s)
Carol Nolan, Diane Per-
lov and Paul Rosenstein
CITY COUNCIL ACTION
8/7/90
Date.
x
Approved based on the following findings and
subject to the conditions below.
Denied.
Other.
Tenant-Participatinq Conversion Findings
1. This Tenant-participating Conversion Application meets the
requirements of Article XX of the City Charter of the City of
Santa Monica along with all mandatory requirements of the
Subdivision Map Act of the state of California. [reference
Sec. 2004 (a), Article XX]
2. The Tenant-Participating Conversion Application has been
deemed complete and accepted for filing. At the time of
filing it met the requirements of section 2002 of Article XX
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of the city Charter for a complete application. The subject
application:
a) Identifies the building, its owner and its tenants and
contains a declaration that such building is a Qualifying
Building, the specific details of which are incorporated
into these findings by reference.
b) Sets forth, for each tenant occupied unit, the following
sales information, which is incorporated into these find-
ings by reference:
1) The maximum sales price for each unit.
2) The minimum down payment for each unit.
3) If seller financing is offered, the minimum amount to
be financed, the maximum rate of interest and the mini-
mum term of the loan offered by the seller.
c) Sets forth, for each uni t, the following common area,
maintenance and budget information, which is incorporated
into these findings by reference:
1) The plan for the assignment and use of all parking
spaces.
2) The plan for the use of all common area facilities.
3) The occupancy and management plans and policies.
4) A list of all repairs and alterations, if any, which
will be performed before the close of the first escrow.
S) 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 the allocation and use of such
reserve funds.
d) Contains a declaration with the following information:
1) That there has been a building inspection report of the
accessible portions of the entire building, including
but not limited to, the roof, walls, floors, heating,
air conditioning, plumbing, electrical systems or com-
ponents of a similar or comparable nature, and recre-
ational facilities of the building prepared by a Build-
ing Inspection Service or similar agency wi thin the
preceding three (3) months.
2) That, for each tenant occupied unit, a written state-
ment setting forth any substantial defects or malfunc-
tions identified in the building inspection report
regarding the unit and the common areas has been deliv-
ered to the unit or a tenant occupying the unit.
3) That, for each tenant occupied unit, a copy of the com-
plete building inspection report has been delivered to
the unit or a tenant occupying the unit.
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e) Sets forth the form of tenant ownership for which the ap-
plication is submitted--Condominium.
f) Is signed by cosigning tenants occupying 75% (not less
than two-thirds) of all the residential units in the
building. (If there is more than one tenant in a unit,
the signature of only one tenant is required.)
g) Identifies the cosiqning 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 cosign-
ing tenant was obtained only after the delivery, in writ-
ing, to such tenant of the information required in subsec-
tions (a) (b) (c) (d) and (e) of this section.
i) Contains a declaration that all lawful notices have
given of the application for conversion.
been
j) Has attached to the application statements of Tenant In-
tent to Purchase, signed by Intending to Purchase Tenants
occupying 50% (not less than fifty percent) 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 is required.)
k) That, for each tenant occupied unit, a Tenant Intent to
Purchase has been delivered to the unit or a tenant oc-
cupying the unit.
3. The following procedures have been followed in the processing
of this Tenant-Participating Conversion Application:
a) A Tenant-participating Conversion Application was accepted
for filing by the city and meets the requirements of Sec-
tion 2002 of Article XX of the city Charter.
b) The Tenant-Participating Conversion Application was filed
by the owner on February 2, 1990, not less than forty (40)
days prior to the filing of the application for the tenta-
tive subdivision/parcel map on March 26, 1990.
c) Within five (5) days of the filing of the Tenant-
Participating Conversion Application, the City sent notice
to every tenant in the building stating that a Tenant-
Participating Conversion Application had been filed and
that any Objections thereto may be filed with the City
within twenty-five (25) days from the date of the notice.
d) Upon the filing of the application for the required tenta-
tive subdivision/parcel map, the Tenant-Participating Con-
version Application and required map were scheduled for
hearing and processed in accordance with the procedures
for the processing of subdivision maps.
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4. Nolan, Perlov, and Rosenstein maintained a landlord-tenant
relationship with 1518 Yale street Associates.
5. Memorandum Opinion Number 90-8 properly interprets current
TORCA law on the showing required for resident owners to be
deemed co-signing tenants and intending to purchase tenants.
Tentative Map Findings
1. The proposed subdivision, together with its provisions for
its design and improvements, is consistent with the ap-
plicable general and specific plans as adopted by the City of
Santa Monica. [Reference California Government Code Sec.
66473.5 and Santa Monica Municipal Code Sec. 9362 (a)]
2. The owner(s) and each tenant on the subject property received
copies of this staff report and recommendation at least three
days prior to this public hearing.
3. Notification of this hearing has been in conformance with
section 9360 of the Santa Monica Municipal Code.
4. Each of the tenants of the proposed condominium project has
received, pursuant to Government Code section 66452.9, writ-
ten notification of intention to convert at least 60 days
prior to the filing of the tentative map pursuant to section
66452. Each such tenant, and each person applying for the
rental of a unit in such residential real property, has, or
will have, received all applicable notices and rights now or
hereafter required by the Subdivision Map Act. Each tenant
has received or will receive 10 days written notification
that an application for a public report will be, or has been,
submi tted to the Department of Real Estate, and that such
report will be available on request. The written notices to
tenants shall be deemed satisfied if such notices comply with
the legal requirements for service by mail.
5. Each of the tenants of the proposed condominium project has
been, or will be, given written notification within 10 days
of approval of a final map for the proposed conversion.
6. Each of the tenants of the proposed condominium project has
been, or will be, given 180 days written notice of intention
to convert prior to any termination of tenancy due to the
conversion or proposed conversion. This will not alter or
abridge the rights or obligations of the parties in perfor-
mance of their covenants, including, but not limited by Sec-
tions 1941, 1941.1, and 1941. 2 of the Civil Code, and set
forth herein as conditions of approval.
7. Each of the tenants of the proposed condominium project has
been, or will be, given notice of an exclusive right to con-
tract for the purchase of his or her respective unit upon the
same terms and conditions that such unit will be initially
offered to the general public or terms more favorable to the
tenant. The right will run for a period of not less than 90
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days from the date of issuance of the subdivision public re-
port pursuant to Section 11018.2 of the Business and Profes-
sions code, unless the tenant gives prior written notice of
his or her intention not to exercise the right. This will
not alter or abridge the rights or obligations of the parties
set forth herein as conditions of approval.
8. This project has been found to be categorically exempt from
the California Environmental Quality Act of 1970 and state
and local guidelines adopted thereunder.
Note: Individual findings required for approval of non-Tenant-
Participating Conversions specified in Santa Monica Municipal
Code Sec. 9l22F either are inconsistent with or redundant with
the requirements of Article XX and therefore are not applicable
to or necessary for approval of Tenant-Participating conversions.
Conditions
1. The owner shall agree to each condition imposed in connection
wi th the approval of a Tenant-Participating Conversion Ap-
plication. Written consent shall be filed prior to the ap-
proval of the required final parcel/subdivision map and shall
be in a form approved by the City Attorney. 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 this Tenant-Participating Conversion Application. The
ci ty and any Participating Tenant shall have the right to
specific enforcement of this Agreement in addi tion to any
other remedies provided by law.
2. The owner shall offer and continue to offer the exclusive
right to purchase each rental unit in the building to the
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 Califor-
nia Department of Real Estate or the date the first unit in
the building is offered for sale, if no approval by the Cal-
ifornia Department of Real Estate is required. At the begin-
ning of the second year, the Tenant Sale Price may be adjust-
ed according to any change reflected in the Price Index [as
defined in Section 2001(j) of Article XX of the city Charter)
occurring during the proceeding year. Upon the written ac-
ceptance of the offer by the Participating Tenant at any time
within the two year period, escrow shall open within thirty
(30) days from the written acceptance by the participating
Tenant. Unless otherwise agreed by the parties, the period
of the escrow shall not exceed sixty (60) days.
3. No Participating Tenant shall at any time after the approval
of this Tenant-Participating Conversion Application be evic-
ted 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
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her right to purchase within the time period set forth, 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 Par-
ticipating Tenant, the transfer shall be expressly made sub-
ject to the rights of the participating Tenant to continue to
occupy the unit as provided for in Article XX of ,the City
Charter. The provisions of California Government Code Sec-
tion 7060 et seq. ("The Ellis Act") shall not be used to
evict any non-purchasing Participating Tenant.
4. Each unit shall at all times remain subject to all terms and
conditions of Article XVIII of the City Charter, except Sec-
tion 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 the
city Charter.
5. Prior to the approval of the required final parcell
subdivision map for the Tenant-Participating Conversion, each
participating tenant shall be informed in writing, in a form
approved by the City, of his or her rights under Article XX
of the City Charter.
6. All non-purchasing Participating Tenants who are senior
citizens or disabled on the date of filing the Tenant-
Participating Conversion Application and who personally occu-
pied a rental unit in this qualifying building continuously
for at least six (6) months immediately preceding the date of
the filing of this Tenant-Participating Conversion Applica-
tion shall have a right without time limitations to occupy
their units subject to the provisions of Article XVIII of the
City Charter and shall be given the non-assignable 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 demoli-
tion of the unit. In addition, should the maximum allowable
rent provision of Article XVIII of the City Charter no longer
apply, the rent for each such unit may be adjusted annually
to allow an increase of no more than the increase in the
Price Index [as defined in Section 2001(j) of Article XX of
the City Charter] plus a reasonable pro rata share of capital
replacements for the building t s common areas or agreed to
capital improvements for the unit. within sixty (60) days
after the approval of this Tenant-Participating Conversion
Application, any senior citizen participating Tenant who is
entitled to the protections of this provision 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 predeceases him or her and if
the person designated is residing in the unit at the time of
the death of the senior citizen. The person designated by
the senior citizen must be a lawful occupant of the unit, at
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least fifty-five (55) years of age on the date of the filing
of this Tenant-Participating Conversion Application.
All other non-purchasing participating Tenants who personally
occupied a rental unit in this qualifying building con-
tinuously for at least six (6) months immediately preceding
the date of filing of this Tenant-participating conversion
Application shall have a right without time limitations to
occupy their units subject to the provisions of Article XVIII
of the City Charter and shall be given the non-assignable
right to continue to personally reside in their unit subject
only to just cause eviction for a period of five (5) years
from the date the first unit is offered for sale. No evic-
tion shall be allowed during this time period except for just
cause provided the eviction is not for the purpose of occu-
pancy by the owner, occupancy by any relative of the owner,
or demolition of the unit. In addition, during this time
period, should the maximum allowable rent provisions of Arti-
cle XVIII of the City Charter no longer apply, the rent for
each unit may be adjusted annually to allow an increase of no
more than the increase in the Price Index [as defined in Sec-
tion 2001(j) of Article XX of the City Charter] plus a rea-
sonable pro rata share of capital improvements for the build-
ing's common areas or agreed to capital improvements for the
unit.
All rights under this condition shall expire upon the ter-
mination of the landlord-tenant relationship between the
owner and the participating tenant entitled to the protec-
tions of this condition.
For purposes of this condition, "just cause" means one of the
reasons set forth in subdivisions (a) through (g) of section
1806 of the City Charter.
7 . The requirements of these conditions shall be set forth in
the Declaration of Covenants, conditions, and Restrictions,
or equivalent document, and shall specifically name the Par-
ticipating Tenants in each unit entitled to the benefits and
protections of Article XX of the City Charter. The City At-
torney shall review and approve for compliance with Article
XX the Covenants, Conditions, and Restrictions, or equivalent
documents, prior to the approval of the required final
parcel/subdivision map. To the extent applicable, the re-
quirements of Article XX shall be made a part of the rental
agreement with the Participating Tenants.
8. The owner shall pay the Tenant-participating Conversion Tax
in the manner required by Section 2008 of Article XX of the
City Charter.
The Tenant-Participating Conversion Tax shall be paid by the
owner to the City Treasurer on each Tenant-participating Con-
version unit in an amount equal to twelve (12) times the
monthly maximum allowable rent for the unit at the time the
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tax is due and payable. If there is no monthly maximum al-
lowable rent, the tax shall be computed on the basis of the
monthly fair rental value of the unit.
The Tenant-Participating conversion Tax shall be due and pay-
able at the time of approval of the required final parcell
subdivision map. Payment of the tax may be deferred until
sale of the unit by the owner executing a lien in the form
approved by the city. Upon payment of the tax, or upon a
determination that a unit is exempt from the tax in accor-
dance with subdivision Cd) of Section 2008 a release of lien
shall be filed by the City with respect to each unit for
which the tax has been paid or which has been determined to
be exempt from the tax.
9. 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 instru-
ment which imposes a restriction upon the sale, leasing or
occupancy of his or her unit on the basis of sex, race,
color, religion, sexual orientation, ancestry, national ori-
gin, age, pregnancy, marital status, family composition, or
the potential or actual occupancy of minor children. The
association shall not discriminate on the basis of sex, race,
color, religion, sexual orientation, ancestry, national ori-
gin, age, pregnancy, marital status, family composition, or
the potential or actual occupancy of minor children.1I
10. Approval of the Tenant-Participating Conversion Application
shall expire if the required final parcel/subdivision map is
not approved within the time period set forth in Condition
11.
11. The tentative parcel/Subdivision map shall expire 24 months
after approval, except as provided in the provisions of Cal-
ifornia Government Code section 66452.6 and Sections 9380-
9382 of the Santa Monica Municipal Code. During this time
period, the final map shall be presented to the City of Santa
Monica for approval. If the tentative map is a vesting ten-
tative map pursuant to California Government Code Section
66474.2, the provisions of Santa Monica Municipal Code Sec-
tion 9325 also shall apply.
12. The applicant shall comply with all requirements set forth in
Government code section 66427.1, including notification of
tenants regarding application for a public report to the De-
partment of Real Estate and notification of tenants regarding
approval of a final map for the conversion.
13. The developer/applicant shall provide the Engineering Depart-
ment of the City of Santa Monica with one Dizal Cloth print
reproduction and microfilm of each sheet of the final map
after recordation.
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pc/soatpl08
08/22/90
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Print Name and Title
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14. The effective date of this action shall be ten (10) calendar
days from the date of City Council determination or, if ap-
pealed per Section 9366 (SMMC), at such time as a final
determination is made by the City Council.
15. For information purposes, the following persons are iden-
tified in the application as participating tenants: Elizabeth
Paganelli, Diane Perlov, William Bracken and Michelle Fine,
Carmen Vasquez, Carol Nolan and Paul Rosenstein, and Marcie
Adelsohn.
VOTE
Ayes: Abdo, Finkel, Genser, Reed, Zane
Nays:
Abstain:
Absent: Jennings, Katz
NOTICE
If this is a final decision not subject to further appeal under
the City of Santa Monica Comprehensive Land Use and Zoning Or-
dinance, the time within which judicial review of this decision
must be sought is governed by Code of Civil Procedure Section
1094.6, which provision has been adopted by the City pursuant to
Municipal Code section 1400.
I hereby certify that this statement of Official Action accurate-
ly reflects the ~inal determination o~ the City Council of the
City of Santa Monica.
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signature
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September l3, 1990
date
Cl?r~ce E. crnhnsen, C~ty Clerk
Please Print Name and Title
I hereby agree to the above conditions of approval and
acknowledqe that failure to comply with such conditions shall
constitute grounds for potential revocation of the permit
approval.
Applicant's Signature
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