R-6833
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CA:RMM:rmelectd
City Council Meet1ng 2-28-84
Santa Monica, California
RESOLUTION NUMBER 6833(CCS)
(C1ty Counc~l Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA CALLING
AND GIVING NOTICE OF THE HOLDING OF A SPECIAL
MUNICIPAL ELECTION TO BE HELD ON
TUESDAY, JUNE 5, 1984
WHEREAS, the C~ty Council desires to subm~t, pursuant to
Government Code Section 34459, a proposed amendment to the C~ty
Charter; and
WHEREAS, Elections Code Section 17050 author1zes the C~ty
Council to provide that all ballots cast at the Spec1al Mun~cipal
Election be counted at a central counting place; and
WHEREAS, Elections Code Section 5011 author~zes the C~ty
Counc~l to d1rect the city clerk to transm~t a measure appearing
on the ballot to the c~ty attorney to prepare an impart1al
analys1s,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. A speclal munic~pal election shall be held ~n
the City of Santa Monica on June 5, 1984, which is the election
required to place a measure before the voters submitted by the
C~ty Counc~l.
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SECTION 2. The ballots to be used at the Special Municipal
Elect~on shall be both as to form and matter contained there~n
such as may be requ1red by law.
SECTION 3. The City Clerk 15 author1zed, instructed, and
directed to procure and furn18h any and all offic~al ballots,
notices, printed matter and all suppl~es, equipment, and
paraphernalia that may be necessary 1n order to properly and
lawfully conduct the Spec1al Munic1pal Elect~on.
SECTION 4. The polls for the Special Munic1pal Election
shall open at 7:00 a.m. of the day of the election and shall
remain open continuously until 8:00 p.m. of the same day when the
polls shall be closed except as provided in Elections Code
Sectlon 14301.
SECTION 5. The notice of the t1me and place of holding of
the Special Mun~c1pal Elect10n is hereby glven and the C~ty Clerk
is authorized, ~nstructed and d~rected to g1ve such further or
add1t10nal not1ce of the elect10n in the time, form, and manner
requlred by law.
SECTION 6. Pursuant to Elect10ns Code Sect10n 17050,
ballots cast by voters at the Spec1al Munic~pal Election shall be
counted at a central place. Santa Mon1ca C1ty Hall 18 designated
as the central place to count ballots. Notice of the central
count1ng place is hereby given, and the C1ty Clerk is authorized,
instructed and directed to give such further or addit10nal not1ce
of the central counting place 1n the time, form, and manner
required by law.
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SECTION
7.
At the Special Municlpal Election, the
folloWlng
propos1tion shall be submitted to the qua11fied
electors of the City of Santa Monica:
PROPOSITION "" Shall the City
Charter be amended to add Article
XX ent1 tled "Tenant Ownersh1p YES
Rights" establishing standards and
procedures for Tenant-Partici-
pating Ownership of rental units
wh11e ensur1ng full protections
for non-purchasing tenants and
establishlng a Tenant-Partici-
pating Conversion Tax for low and
moderate income persons and an NO
expendlture authorlzation lncrease
therefor?
The City Clerk shall cause the text of the proposit~on, wh~ch is
contained ~n Exh~b~t 1 attached hereto and ~ncorporated by
reference, to be malled to all qua11fied voters with the sample
ballot.
The City Clerk, not less than 40 days and not more than
60 days before the Special Municipal Election, shall cause the
text of the propos~tlon to be publ~shed once in the official
newspaper
and ~n each ed~t10n thereof during the day of
pub11cation.
SECTION 8.
Pursuant to Electlons Code Sectlon 5011, the
C1ty Clerk 1S directed to transm~t a copy of the each measure to
be subm~tted to the voters to the City Attorney and the Clty
Attorney lS dlrected to prepare an 1mpartlal analysls of each
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measure in accordance with the provisions of Elections Code
Section SOll.
SECTION
9.
In all particulars not recited in this
Resolution, the Spec1al Mun~cipal Elect~on shall be held and
conducted as prov~ded by law for holding mun1c~pal elect~ons ~n
the City of Santa Mon~ca.
SECTION 10. The City Clerk 1S d~rected to send a copy of
th~s Resolut10n to the Board of Superv~sors of the County of Los
Angeles and to the Registrar of Voters.
SECTION II .
In the event the Special Municipal Elect10n
1S consolidated w~th the Statew~de General Elect10n on the same
date, the provis10ns of this Resolut10n applicable only 1n the
event the election 1S conducted by the C1ty shall be of no force
or effect.
SECTION 12. The City Clerk shall certify to the adoption
of th1s Resolut~on, and thenceforth and thereafter the same shall
be in full force and effect.
APPROVED AS TO FORM:
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Robert M. Myers (J - -
City Attorney
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EXHIBIT 1
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PROPOSAL BY CITY COUNCIL OF THE CITY OF SANTA MONICA
TO BE SUBMITTED TO VOTERS
OF P~OPOSED AMENDMENT TO THE CHARTER OF THE
CITY OF SA~~A MONICA. CALIFORNIA
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ARTICLE XX.
TENANT OWNERSHIP RIGHTS
Section 2000. Statement of Purpose. The PeoDle of the
City of Santa Monica find ano declare:
(a) Tenant-Participatina Conversions are an effective
method of preserving, stabilizing and improving neighhorhoods
and the supply of sound, affordable housing accommodations.
(b) It is sound policy to encouraqe such
Tenant-Participating Conversions to allow tenants to purchase
the units which they occupy and, at the same time, protect
tenants wno do not purchase their units.
(c) This Article is designed to permit tenants to enjoy
the stability, security and financial benefits of ownership of
their own housing units and at the same time to provide more
protection than presently exists under Article XVIII of this
Charter for Participating Tenants who may not choose to
purchase their un1ts and is desi9I1ed to promote affordable
housing opportunities for Low and Moderate Income Households.
(d) While supporting the ~oal of home ownership, the
City must ensure the continued a.vai labil i ty of affordable
housing for Low and Moderate Income Households. In order to
accomplish this goal, this Article requires a Tenant-Partici-
pating Conversion Tax as an integral and essential provision
to carry out the purposes of this Article and the proceeds of
which shall be used to ensure the continued availabilitv of
affordable housing for Low and Moderate Income Households.
(e) This Article is necessary for the nublic healt",
safety, and welfare of the people of the City of Santa Monica.
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) Cosigning 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
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private entity on account of a permanent disability that
prevents the person from engaging in regular, fulltime
employment.
(d) Intendin9 to Purchase Tenant. Any tenant who has
personally occup~ed 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
fa~ilies whose income does not exceed eighty per cent (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 B (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 t~e
median gross income determined under the method used by the
Secretary prior to such termination.
(a) Middle Income Households. Persons and families
....hose income exceeds eighty per cent (80%) but is less than
one hundred and twenty per cent (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 S(f) are
term1nated, more than eighty per cent (80%) but less than one
hundred twenty per cent (120%) of the median gross income
determined under the method used by the Secretary prior to
such term1nation.
(h) Owner. The owner of a nualifying Builning.
(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 Averaqe, as published by
the United States Bureau of Labor Statistics, or 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:
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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 prcxnise 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 the sales price indicated on the
form if you are able to obtain sati s-
factory financ~n9 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 AGENCY 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 cert1fy my/our intent to purchase
my/our occupied Unit No. I/We
have seen and have received a copy of the
Tenant-participat1ng Conversion Appli-
cation which lists the maximum sales
prices for all tenant occupied units in
this building and other information on the
Tenant-Participating Conversion Appli-
cation to be filed with the City of Santa
Mon1ca, and this 11St indicates that the
maximum sales price for my/our unit is to
be $
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
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expected to purchase units pursuant to
this Article.
I/We declare, under penalty of
perjury, that all of my/our statements
above are true and 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 of Santa Monica for
which no eviction has occurred pursuant to Section 1806(h) of
this Charter (relating to eviction for purposes of owner
occupancy or occupancy by relatives of the owner) within a
period of six (6) months prior to the adoption of this
Article. In the event of such an eviction, an application for
a Tenant-Participating Conversion may be filed if no such
eviction occurred within two (2) years prior to the filing of
a Tenant-Participating Conversion.
(m) Senior Citizen. Any person sixty-five (65) years
of age or older.
(n) Tenant. Anv person who is an aut~orized tenant of
an owner of a residential rental buildinq for whicn a
Tenant-participating Conversion Applicat~on is being
processed.
(0) Tenant OWnership. Ownership in the forM of either
condominiums, community apartments, stock cooperatives,
cooperative associations, limited equity stock cooperatives or
any other means authorized under State law.
(p) Tenant-Participating Conversion. Any conversion to
tenant ownership implemented pursuant to this Article.
(q) Tenant's
unit as set forth
Applica tion.
Sales Price. The maximUM price for each
in the Tenant-Participating Conversion
Section 2002. Application for Tenant-Participatin~
Conversion. An apolication for a Tenant-Participating
Conversi.on shall be complete if it meets the following
requirements:
(a) Identifies the building, and its owner, which is
the subject of the application and contains a declaration that
such building is a qualifying building.
(b) Sets forth, for each tenant occupied unit, the
following sales information:
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(1) The maximuM sales price for each unit.
(2) The minimum down payment for each unit.
(3) If seller financing will he 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 each unit, the following co~on
area, maintenance and budget information:
(1) The plan for the assignment and use of all
pa rkinq 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, wh1ch will be performed before the close of the first
escrow.
(5) The plan for allocating costs and expenses
for the buil~ing.
(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
1nformation:
a
declaration
with
the
fallowing
(1) That there has been a building inscection
report of the accessible portions of the entire building,
including but not limited to, t.he roof, walls, floors,
heatinq, air condit.ioning, plul'Ibing, electrical systems or
component.s of a similar or comparable nat.ure, and recreat.ional
facilities of the building prepared by a Building Inspection
Service or simil ar agency wi thin the preceding three (3)
months.
(2) That, for each tenant occupied unit., a
writt.en stat.ement setting fort.h any subst.ant.ial defect.s or
malfunctions identified in the building inspection report
regarding t.he unit and the common areas has been delivered to
the unit or a tenant occupying the unit.
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(3) That, for each tenant occupied unit, a cooy
of the complete building inspection report has been delivered
to the unit or a tenant occupying the unit.
(e) Sets forth the form of
the application is submitted.
tenant ownership for which
(f) ~s signed by cosigning
than two-thirds (2/3) of all the
building. If there is more than
signature of only one tenant shall
tenants occupying not less
residential units in the
one tenant in a unit, the
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 buildinq 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 that all lawful notices have
been given of the application for conversion.
(j) Has attached to the application Statements of
Tenant Intent to Purchase, signed by Intending to Purchase
Tenants occupying not less than 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) That, for each tenant occupied unit, a Tenant
Intent to Purchase has been delivered to the unit or a tenant
occupy~ng the unit.
Section 2003. Processin9 of Tenant-Participating
Conversion Application. The following procedures shall be
followed in the processing of a Tenant-Participating
Conversion Application:
ea} A Tenant-Participating Conversion Application shall
he accepted for filing by the City when it meets the
requirements of Section 2002 of this Article.
(b) A Tenant-Participating Conversion Application shall
be fi led by the owner not less than forty (40) days prior to
the filing of any application for a tentative subdivision map
or tentative parcel map under the Subdivision Map Act of tbe
State of California. The Tenant-Participating Conversion
Application may be filed simultaneously with the service of
the Notice of Intent to Convert required by the Subdivision
Map Act of the State of California.
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(c) Within five (5) days of the filing of a
Tenant-Participa ting Conversion Application, the City shall
send notice to every tenant in the building stating that a
Tenant-Participating Conversion Application has been filed and
that any objections thereto may be filen with the City within
twenty-five (25) days from the date of the notice.
(d) Upon the filing of the application for any
required tentative subdivision map or tentative parcel map, or
if no such map is required, at the end of forty (40) days from
the filing of a Tenant-Participating Conversion Application,
the Tenant-Participating Conversion Application and any
required map shall be scheduleo for hearing and processed in
accordance with the procedures for the processinq o~
subdivision maps. The City and the applicant may agree to
extend the time periods required for processing for a period
not to exceed sixty (60) days.
(e) Any Tenant-Participating Conversion Application
shall be deemed approved subject to the conditions set forth
in Section 2004 of this Article if it is not approved or
denied within the time periods required by this Section.
Section 2004. Approval or Denial of Tenant-Par-
ticipating Conversion Application. A Tenant.-?arti.ci~ating
ConversiOn Application shall be approved or den~ed w1th1n the
time periods set forth in Section 2003 of this Ar~icle 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
requirement 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 ~eets the requirements of
this Article and shall be subject to the following conaitions
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, witbin 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
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each participating tenant, bind ing 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. At the
beginning of the second year, the Tenant's Sale Price may be
adjusted 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 within the two year period, escrow shall open within
thirty davs (30) from the writt.en accept.ance by the
participat.ing tenant. Unless ot'herwise a~reed 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 sUbject 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 XVIII of this
Charter, except Seeton lB03(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 u~der Article XVIII of this
Charter.
(5) The building may be required to comply only
with the applicable laws, includinq the building, safety, and
zoning codes. which were in effect as of the date the building
was constructed. No new, additional requirements includinq,
but not limited to, parking, room size, or interior or
exterior improvements of any kind, may be imposed as a
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condition, either directly or indirectly, of the
Tenant-Participating Conversion. Notwithstanding the above,
the City may impose reasonable health or safety requirements
consistent with this Article upon such buildings provided that
such requirements uniformly apply to all similar multiresident
structures in the City of Santa Monica, regardless of the form
of ownership of the building.
(6) Prior to the approval of any required final
subdivision map or final parcel map for the Tenant-Partici-
pating 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 writing, in a form approved by the City, of his or her
rights under this Article.
(7) In addition to the provisions of subdivision
(b)(3) of this Section, 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 huilding
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 an relative of the owner, or for demolition of
the unit. In add.1.tion, should the maximum allowable rent
provisions 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 replacements
for the building's 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 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 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
App Ii ca tion .
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
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the date filing the Tenant-Participating Conversion
Application shall be given the nonassignahle 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 eviction shall be allowed
during this time period except for just cause provide" the
eviction is not for the purpose of occupancy 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 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 shall expire upon the
termination of the landlord-tenant relationship between the
owner and the participating tenant entitled to the protections
of this subsection.
For purposes of this subsection, "just cause" means one
of the reasons set forth in subdivisions (a) throug'l1 (g) of
Section 1806 of this Charter.
(8) The requirements of this Section shall be set
forth in the Declaration of Covenants, Conditions, and
Restrictions, or equivalent document, and shall specifically
nane 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 Res trict ions, or equ i valent
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.
(9) The owner shall pay the Tenant-Participating
Conversion Tax in the manner required by Section 2008 of this
Article.
(10) The Declaration of Covenants, Conditions,
and Restrictions, or equivalent do"Cument, shall contain a
non-discrimination clause in substantially the following form:
"No 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, 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,
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family composition, or the potential or actual occupancy of
minor children."
(II) 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 Sllbdivision 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.
Sect.ion 2005. prohibi,tiC?.n AC]ainst Resale Controls. The
City shall not impose either directly or indirectly any
restrictions on the price, terms or conditions of sale or
resale of any unit in a Tenant-Participating Conversion except
to incorporate the terms and conditions agreed to by the
parties in the Tenant-Participating Conversion Application as
authorized by this Article. Nothing in this Section shall
restrict the City from imposing any conditions or restrictions
necessary to continue the form of ownership of units exempt
from the tax required by Section 2008. Nothing in this
Section shall restrict the City, any other government agency,
or any other person from making any vOluntary loans or other
forms of voluntary financial assistance to purchases of units
for ....hich a Tenant-Participating Conversion Application has
been approved ....ith any terms agreeable to all parties.
Section 2006. Prohibition AC]ainst Other Tax and Fee
Requirements. No tax or fee other than those expressly set
forth in this Article may be imposed, either directly or
indirectly, by the City on a Tenant-Participating Conversion
except the imposition of reasonable processing or map fees not
to exceed an aggregate of Five Hundred Dollars ($500.00) per
application adjusted annually by the Price Index.
Section 2007. Applicab~lit;y of Other Laws. Section
1803 (t) of this Charter shall not apply to any building for
....hich a Tenant-Participating Conversion Application has been
approved. Any provision of any ordinance of the City or any
provision of the Municipal Code or any appendix thereto
inconsistent with the provisions of this Article, to tne
extent of such inconsistency and no further, snaIl not apply
to the extent necessary to effect the provisions of this
Article. Any general or specific plan of the City
inconsistent ....ith this Article shall be amended to the extent
necessary to be consistent ....i th this Article, and until such
amendment, shall be deemed consistent with this Article.
Section 2008. Tenant-Participatinc: Conversion Tax. A
Tenant-Participating Conversion Tax is hereby imposed as
fo1lo....s:
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(a) There ~s hereby established a Tenant-Partlcipating
Convers10n Fund. All of the sums collected pursuant to th~s
Section shall be deposited in the Tenant-Participating
ConverS1on Fund and shall be used only for the purposes set
forth in Sect~on 2009 of this Article.
(b) The Tenant-Participat~ng Conversion Tax shall be
paid by the owner to the C1ty Treasurer on each
Tenant-Part1cipat1.ng Conversion uni t ~n an amount equal to
twelve (12) times the monthly max~mum allowable rent for the
un~t at the t1me the tax ~s due and payable. If there is no
monthly maximum allowab le rent, the tax shall be computed on
the bas1s of the monthly fa1r rental value of the unit.
(c) The Tenant-Participating Conversion Tax shall be
due and payable at the t~me of approval of any requ~red final
subd~vis10n map or f1nal parcel map, or if no such map is
required, at the t~me of the filing of the written consent
required by Sect1.on 2004(d} (1) of this Article. Payment of
the tax may be deferred until sale of the unit by the owner
executing a lien 1.n the form approved by the City. Upon
payment of the tax, or upon a determination that a unit is
exempt from the tax in accordance w~th subd1vis1on (d) of th~s
Sect~on, a release of lien shall be filed by the City with
respect to each unit for which the tax has been paid or wh1ch
has been determined to be exempt from the tax.
(d) Any unit subJect to limited equ~ty resale
prov1sions shall be exempt from payment of the tax.
Sect~on 2009. Use of Tax. All monies derived from the
Tenant-Partic~pating Conversion Tax shall be annually
appropr1ated by the C~ty Counc~l for only the follow~ng
purposes:
(a) In accordance with Sect10n 2000(d} of this Article,
to asslst Low and Moderate Income Households in
Tenant-Part~cipatlng Conversions to purchase or improve their
units subJect to an affordable repayment plan includ~ng
~nterest, keyed to future income ~ncreases and gains on
resale. pr1.0r1ty shall be g1ven to ass1sting Low and Moderate
Income Households 1n L1m1ted Equ~ty Tenant-Part1cipating
Convers~ons. For at least the first two years from the
rece~pt of the first payment of the Tenant-Participating
ConverS1on Tax under this Article, a substantial portion of
the tax proceeds shall be used for assisting L~mited Equ~ ty
Tenant-Participatlng Conversions.
(b) Up to one-s~xth of the revenues derived from
Section 2008 may be used to assist M1ddle Income Households in
Tenant-Participating ConverS1ons to purchase or improve their
un1ts if the City Counc1l, by f~ve affirmative votes,
determines that the needs of Low and Moderate Income
Households have been fully satisf~ed.
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(c) To pay for reasonable and necessary costs of
administration of programs required to meet the purposes of
this Section.
Section 2010. Pro~rams to Assist Middle Income
Households. Within six (6) months from the enactment of this
Article, the City Council shall study and issue a report on
methods available to the City for assisting Middle Income
Households to purchase units for which a Tenant-Participating
Conversion Application has been approved.
Section 2011. Limitation. If the City Council finds
based upon competent factual data obtained from municipal,
state, federal or other independent sources of data that the
ratio of non-owner occupied residential units to owner
occupied residential units within the City of Santa Monica has
fallen below the average of such ratio for the State of
California, the City Council is empowered, at its discretion
and in order to achieve the objectives of this Article, to
cease accepting new Tenant-Participating Conversion
Applications until the ratio of non-owner occupied residential
uni ts W~ t"in the City exceeds the average such ratio for the
State of California.
Section 2012. I~formation and Compliance. The City
Council shall cause to be prepared and supervise a program to
dissemina te information about this Artic le to tenant s,
apartment owners and other parties informing each tenant,
apartment owner and other parties of their rights and
Obligations under this Article. The City Council shall issue
an annual report to include data on compliance with this
Article. Each report shall include data on the number of
applications and the status of each project.
Section 2013. Criminal Penalties. Any violation of this
Article shall constitute a misdemeanor.
Section 2014. Civil Remedies. The City Attorney shall
supervise and promote educational legal information concerninq
civil remedies and civil causes of action which may be
available to persons who feel that t.heir rights have been
violated, including. but not limited to, intentional
infliction of emotional distress, breach of contract, frauo,
interference with prospective economic opportunity,
constructive eviction, breach of the covenant of quiet
enjoyment. trespass and other causes of action. The City
Attorney shall refer persons seeking a civil remedy to any
referral agencies or referral panel operating in accordance
wi th the requirements of the State Rar of California. Any
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aggrieved part.y may bring an action in is court of competent
jurisdiction in order to obtain relief for any violation of
this Article.
Section 2015. Expenditure Auth~rization. The
expenditure limitation of the City established pursuant to
Article XIIIB of the California Constitution is increased, in
addition to any other voter-approved increases, for each of
fiscal years 1984-85, 1985-86, 1986-87, and 1987-88 by an
amount equal to the amount of the monies received in each such
fiscal year pursuant to Section 2008 of this Article. The
City Council shall place before the voters periodically a
measure to increase the expenditure limitation prior to the
expiration of the increase authorized by this Section or any
subsequent increase so that there is a continuation, to the
extent approved by the voters and in addition to any othe r
voter-approved increases, of the expenditure limitation of the
City equal to the amount of the taxes derived from Section
2008 of this Article.
Section 2016. Sunset.
(a) No Tenant-Participating Conversion Application
shall be filed after July 1, 1996, unless this Section is
amended to provide for the filing of such applications after
this date.
(b) No Tenant-Participating Conversion Application
shall be fi led on or after the date the City's expenditure
limitation has not been increased in accordance with Article
XIIIB of the California Constitution for the purpose of fully
expending the monies received pursuant to Section 2008 of this
Article.
(c) In the event Section 2008 does not become
effective by reason of the failure of this Article to secure
the approval of two-thirds of the voters to the extent
required by Article XIIIA of the California Constitution or by
any other reason, no Tenant-Participating Conversion
Applicat10n may be filed.
Section 2017. Partial Invalidity.
(a) Except as provided in subdivision (b) of this
Section, if any provision of this Article or application
thereto to any person or circumstance is declared or found
invalid by a court of competent jurisdiction, this invalidity
shall not affect other provisions or applications of this
Article which can be given effect without the invalid
provision or application, and to this end the provisions of
this Article are declared to be severable. This Article shall
14
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be liberally construed to achieve the purposes of this Article
and to preserve its validity.
(b) The following provisions of this Article shall be
inseverable and the invalidity of any such provision of this
Article shall result in the invalidity of this entire Article;
(1) Section 2002(f), Section 2002(j), Section
2004(b){1}, 2004(b)(2), Section 2004(b)(J), Section
2004(b)(4), Section 2004(b)(7), or Section 2004(b)(9), when
the invalidity of such provision would deprive tenants of the
rights conferred by this Article necessary to ensu:te their
participation and protection before, during, and after the
Tenant-Participating Conversion.
(2 ) Section 2008.
(3) Section 2009(a).
(4 ) Section 2015.
(5) Section 2016 (b).
(6) Section 2016(c).
(c) In the event that this Article is declared invalid
in its entirety as a consequence of the provisions of
subdivision (b) of this Section, any applicant who has filed a
Tenant-participating Conversion Application meeting the
requirements of this Article at the time of the filing of the
application shall have a riqht to proceed with the conversion
in accordance with tne application according to the terms of
this Article as though each and every provision hereof were
severable.
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ADOPTED ANn APPROVED THIS
28th
DAY
OF
February
I 1984.
~S-f
MAYOR
I HEREBY CERTIFY THAT THE FOREGOING RESOLUTION
NO. 6833 (CCS)".WAS DULY ADOPTED BY THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AT A MEETING THEREOF HELD ON
February 28
I 1984 BY T~E FOllOWING COUNCIL VOTE:
AYES:
COUNCIlMEMBERS: Conn, Epsteln, Jennings, Press,
Reed, Zane and Mayor Edwards
NOES:
COUNCIlMEMBERS: None
ABSENT:
COUNCILMEMBERS: None
ABSTAIN:
COUNCILMEMBERS: None
ATTEST: "
~7J~
CITY CLERK