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SR-09-11-1990-6A . tlet( -010 " 6-1+ 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 - 1 - 6-)1 SEP 1 1 U90 . . 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 - 1 - . :t . 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. - 2 - . . , 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. - 3 - . .'" -- . 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 - 4 - . . 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 - 5 - . . , 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 - 6 - . . .. 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 - 7 - . ,~ . ,. 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. - 8 - .. JG:cg pc/soatpl08 08/22/90 . . Print Name and Title - 10 - . -1 . , 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. ~ signature / 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 - 9 - , ~