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SR-05-27-1980-8E CA:SSS:b1 Council t',4eeting 05-27-80 Santa i'Qonica, Cali z'ornia STAFF REPORT T0: `~?ayo~° and City Council r^ROM: City Attorney SUBJECT: Revised Condominium Conversion Ordinance IPiTRODUCTI0i3 At the April S, 1980 meeting, Item 10A, the City Council directed the City Attorney to prepare a revised condominium conversion ordinance based on the Planning Commission's recommendations, with two changes. This report transmits and anal:~zes the ordinance. ANALYSIS Legality., The City may, under its home rule ootivers over the -use of land, require a,condtional use perriit nor cordo- ~~ HaY a ~ lssa minium conversions. 9 "conversion" occurs when the first unit is sold. Civil Code § 783; County of Los Angeles .v. Hartford Indemnity Co., 3 Cal. App. 3d 809, 83 Cal. Rptr. 7??C (1970). The City may also, under the Subdivisicr.4ap Act u late the design and improvement of land subdivisions by local ordinance. Government Code § 66h11. The terms "design" and "improvement" are defined in the Act, a::^.d include measures necessary to insure that the cro,iect is deve'oped in conformity ,with t:ie General Plan ':C y65418(9)• 6t?~?(^~ -, ., , . 'yhe 4ttGrne=; !seneral has +_'aleo that .^-C C`~:~e C'^..nor.?_.. _aCtGr3 arm 2nCOmPass°d `.Ji`_^_i Y:- t'f11S a~l~ieCt O:' ~9'll-~~`,l^n. ~~ ~^, riv ~t_. _.. order 1 p .. .,~ ~~~ di5a _.^`i .,._ ft' 2 :A~u_' >_:Jn '`_*' _ ~1.~. N N.~ u f iii condominium conversion for failure to comply with a local ordinance, the Housing Element of the City's Plan must contain specific policy criteria directed toward conversions. G.C.§o6427.2 The proposed ordinance is thus founded on both local police power and state statutory authority. In order to be effective as a regulation of subdivision maps, the Housing Element must be amended to incorporate a conversion policy with definite and specific objectives. The Proposed Ordinance. The ordinance revises the City's Condominium Law. Sections 9122 and 9123 are `repealed and replaced by a new Section 9122. Sub-sections A through E apply to both new constructions and conversions;. F and G apply only to conversions; H through Q'; to be considered as':a separate item, apply only to new condominiums. A. Findings and Intent. This section finds that condo- miniums and the like differ from apartment houses and should be treated differently B. Community Apartments and Co-operative Apartments. This section makes community apartments and co-operative apart- menu subject to the same regulations as condominiums, except as described in Section G. C. Conditional Use Permit Required. This section requires a conditional use permit under Section 9148 before a person may lawfully proceed in any way w;th development o' a condominium project. The provision replaces the existing "condominium permit" and "condominium conversion permit" racuirements. -2- D. Condominium Development Standards. This section states six specific standards that must be reviewed and approved before approval of any condominium project: 1. Overall impact on community facilities, energy usage, and resources. 2. A detailed development plan of the project, including structures,. parking layout, access areas, and exterior elevations and treatment. 3• A detailed landscaping plan. 4. A detailed lighting plan. 5. A copy of Conditions,. Covenants, and Restric- tions or other Condominium Agreement setting forth the occupancy and management policies for the project. 6. Provisions for the dedication of land or easements for street widening, public access or other necessary public purpose. E. Ninimufi Requirements. This section states three requirements for condominium projects: 1. Except for condominium conversions, two cff- street parking spaces per unit shall be provided. The spaces must be located within the same structure as the corresponding dwelling units and shall be included in the ownership of the units. Parking spaces may not be transferred to non-owners. c. Unless otherwise required by the Planning Commission or City Council, yard and height requirements shall be provided in accordance with established restrictions for the zoning district in which the project is located. `L'his section does not apply to conversicns. 3• Condominium agreements must provide for adequate maintenance and repair, for reconstruction of destroyed property, and for dedication of land or easements for public purposes. _ Condominium Cor_versions. This section states 14 ~anaat0r7 COnditlCriS pre~ed2nt t0 a00rCV3l of CO^.dO~i^iu^: COngargiOnS: -3- 1. Rent Control Board approval. 2. Notiee to tenants bf intent to convert. The notice must be given before Notice of Intent to Convert is filed with the Planning Department. 3. A Notice of Intent to Convert. This must be filed with the Planning Department before filing a Tentative Tract Map and Conditional Use Permit application; it must include a Building Report prepared by an inspection service. The report must contain detailed information, including: Date of construction, repairs and renovations, building conditions and code violations, rent information, estimated selling price, proposed CC&R's, and a Tenant Relocation Assistanc° Plan. 4. A Conversion. Report prepared by the Planning Department. This must be prepared within 60 days after the applicant files its notes it must contain staff recommendations, proposed conditions, and supportive reasons. The report must- be prepared before a C.U.P.,applicatien or Tentative Tract Map is accepted for'filing. 5. Notice to tenants of all public hearings; notibe to new tenants of the pending conversion prior to occupancy. 6. One and one-half off-street parking spaces per unit, except that a lesser amount may be provided for units providing access to handicapped persons. There is no allowance for tandem parking. 7. Structural, electrical., fire and life safety systems in good repair. 8. Sound plumbing, individual utility meters, adequate trash areas. 9. CC&R's that guarantee for one year ccmmon area items and appliances provided by the subdivider. 10. CC&R's that permit non-subdivider owners to change the management group, and require Planning V Commission approval for changes of original CC&R conditions and changes imposing age restrictions on occupants. 11. Estimated first-year maintenance costs and guaranteed subdivider responsibility °er cos~s in excess of the estimate. 12. Written nOt1Ce Of ., least G!^e ear __.,... ;_.2 datE Of ten'G at'_Ve apnr^Val _cr tenan i,5 `.n ^e1GCai, _, -.1- 13• A City rental-housing vacancy rate of more than ;% for 90 days prior to approval. An exception is provided. where a rental unit is added for each unit removed. Staff recommends that the calculation of the vacancy rate be Left to the Planning Commission, which shall use the best available data, including that compiled by Rent Control Board and SCAG. i4. Other requirements deemed necessary by the Planning Commission or City Council. G. Exceptions for Low-Income Projects. This section permits waiver of the minimum requirements of Section F to conversion projects involving the City and limited equity co-operatives and similar non-profit projects designed to provide housing for persons of low and moderate income. The remainder of Section 9122 will contain standards 2pplicable to new ebadominums.' Sectioh 4123 will be reserved for future use. .ALTERNATIVES The .Council may introduce the ordinance as drafted, modify it, or reject it. The Council may wish to consider adoption of a section concerning vested rights, or may leave this question to administrative or judicial determination. RECOP~II~4ENDATION It is respectfully recom.•nended that the Council introduce the proposed ordinance as drafted. If the ordinance is int^n- duced, the Council should direct the Planning Ccmmission to consider the adoption of speci_'ic policies directed toward condominium conversions in conjuncticn t~rith t're planned revision of the Housing Element of the General Plan. Prepared By: Stephen S. Stark -7-