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HomeMy WebLinkAboutOrd 1206ORDI"tdATICE N0. 1206 AIV ORDINAiQCE ESTABLISHING CONDOMINIUM CONVERSION APPLICATION PROCEDURES AND REQUIREMENTS, PURCHASE RESTRICTIOVS AND TENANT PROTECTIONS The CITY COUNCIL of the City of Burlingame does ORDAIiV as follows: Section 1. Section 26.30.025 is amended to read as follows; "26.30.025 Conversion permit. Any developer, builder or other person seeking to convert an existing structure to a condominium shall first apply for and obtain from the Planning Commission a condominium conversion permit pursuant to the appropri- ate provisions of this code. Applications for condominium conversion permits shall be evaluated and processed pur- suant to the procedural requirements set forth for con- ditional use permits in Title 25 of this code." Section 2. Chapter 26.32, concerning condominium con- versions, is hereby added to the Burlingame Municipal Code to read as follows: "CHAPTER 26.32 RESIDENTIAL CONDOMINIUM CONVEP.SIOiV PER:IIT5 2Fi.32.010 Purpose. The City of Burlingame finds and .determines that condominiums differ from apartments in numerous respects and, for the benefit of public health, safety and welfare, such projects should be treated differently from apart- ments. The City Council therefore states its express intent to adopt condominium conversion regulations for 3/23/81 4/13/81 1 the protection of displaced tenants and the purchasers of condominiums. The purposesof this chapter are therefore: (1) To establish criteria for conversion of the existing multiple family rental housing to condominiums, community apartments, stock cooperatives and any other subdivision which is a conversion of existing rental housing;. (2) To reduce the impact of such conversions on residents in rental housing who may be required to re- locate due to the conversion of apartments to condominiums by providing for procedures for notification and adequate time and assistance for such relocation; (3) To assure that adequate information as to the physical conditions of the structure which is offered for purchase is made available to purchasers of converted housing; (4) To insure that converted housing achieves a high degree of appearance, quality and safety and is consistent with the goals of the City; (5) To provide a reasonable balance of ownership and rental housing in Burlingame and a variety of choices of tenure, type, price and location of housing; and (6) To maintain a supply of rental housing for elderly, handicapped, and low and moderate income persons. 26.32.020 Permit re uired. No person, firm, corporation, partnership or other entity shall convert existing dwelling units into a condominium subdivision, community apartment or stock cooperative without first having said conversion approved by the Planning Commission or the City Council on appeal. 2 Said permit is in addition to any other requirement of this code. 26. 32.025 ConversionIf rohi�ited for less than twenty 20) units. No application shall be accepted, and no conversion s'nall be allowed, for any project which will -produce twenty (20) or fewer condominium units. 26.32.030 Application requirements. iJo application for a condominium conversion project shall be accepted for any purpose unless the application includes the following: (1} A site plan with at least the following details shown to scale: (a) The location, height, gross floor area and proposed uses for each existing structure to remain and for each proposed new structure; (b) The location, use and type of surfacing for all open storage areas; (c) The location and type of surfacing for all driveways, pedestrian ways, vehicle parking areas and curb cuts; (d) The location, height and type of materials for walls or fences; (e) The location of all landscaped areas, the type of landscaping and method of irrigation; (f) The location and description of all recreational facilities; (g) The location, size and number of parking spaces to be used in conjunction with each condominium unit. (h) The location, type and size of all drainage pipes and structures; (i) The location and type of all on-site and nearest off-site fire hydrants; (j) A lighting plan for the project; (k) The location, type and size of all on-site and adjacent overhead utility lines; and (1) A grading plan showing existing contours, building pad elevations and percent slope for all driveways and parking areas. (2) Fully dimensional elevation plans for typical structures, showing the architectural features and type of material of construction. 26.32.040 Physical elements report. A report on the physical elements of all structures and facilities shall also be submitted with the applica- tion. The report shall include, but not be limited to, the following: (1) A report detailing the structural condition of all elements of the property including foundations, electrical, plumbing, utilities, walls, ceilings, windows, recreational facilities, fire protection sprinklers, alarms, mechanical equipment, roof, parking facilities and appliances, including all appliances installed in each unit. Such report shall be prepared by a registered civil or structural engineer, or licensed architect. Regarding each such element, the report shall state, to the best knowledge or estimate of the applicant, when such element was built, the condition of each element, when said element was replaced, the approximate date upon which said element will require replacement, the remaining useful life of said element, the cost of replacing said element, and any variation to the physical condition of said element from the current zoning and from the build- ing code in effect on the date of the report. The report shall identify any defective or unsafe elements and set forth the proposed corrective measures to be employed. (2) A report containing acoustical test data which indicates the noise attenuation characteristics of 4 existing party walls and ceilings. The data for such report shall include a representative sampling of units involved in the project, but in no case fewer than two dwelling units, and shall be compiled by a qualified person experienced in the field of acoustical testing and engineering. The consultant shall be selected by the City and shall perform the sampling in areas or units as approved or directed by the City. (3) A report from a licensed structural pest control operator, approved by the City, on each structure and each unit aaithin the structure. (4) A report on any known soil and geological con- ditions regarding soil deposits, rock formations, faults, groundwater and landslides in the vicinity of the project, and a statement regarding any known evidence of soils problems relating to the structures. Reference shall be made to any previous soils reports for the site and a copy submitted with said report. (5) A statement of repairs and improvements to be made by the subdivider necessary to refurbish and restore the project to achieve a high degree of appearance and safety. 26.32.050 Additional submittals. The following shall also be submitted with the application: (1) A draft declaration of the convenants, conditions and restrictions, conforming to Department of Real Estate requirements, which would be app lied=on behalf of any and all owners of condominium units wn the pxoject. The draft declaration shall include, but not necessarily be 5 limited to, the conveyance of units, the assignment of parking, an agreement for common area maintenance, includ- ing facilities and landscaping (together with an estimate of any initial assessment fees anticipated for such main- tenance), description of a provision for maintenance of all vehicular access areas within the project, and an indication of appropriate responsibilities for mainten- ance of all utility lines and services for each unit. The declaration shall include all provisions required pursuant to Section 26.33.010. (2) Specific information concerning the demographic characteristics of the project, including but not limited to the following: (a) Square footage and number of rooms in each unit; (b) Rental rate history for each type of unit for previous two years; (c) Monthly vacancy rate for each month during the preceding two years; (d) Composition of existing tenant households, including family size, length of residence, age of tenants, and whether receiving federal or state rent subsidies; (e) Proposed sales price of units; (f) Proposed homeowners association fee; (g) Proposed financing; and (h) Names and addresses of all tenants. When the developer can demonstrate that such information is not available, this requirement may be modified by the Planning Department. (3) Signed copies from each tenant of a notice of intent to convert as required by this code, or for tenants from whom a notice of intent to convert is not submitted by applicant, proof of notice by certified mail to such tenants. At the election of the applicant, the copies of the notice of intent to convert and the proof of notice shall be submitted after the filing of the appli- cation, provided that such copies and proof shall be submitted prior to any public hearing on the proposed conversion. (/+) Signed consent to the conversion by the tenants of at least a majority of the units. (5) Any other information which, in the opinion of the Planning Department, will assist in determining whether the proposed project will be consistent with the purposes of this code. 26.32.060 Acceptance of reports. The final form of the site plan, physical elements report and other. submitted documents shall be as approved by the City. The reports in their accepted form shall remain on file with the Planning Department for review by any interested persons. 26.32.070 Copy to buyers. A summary of all reports required by this code, in a form approved by the City, shall be provided to each person executing any purchase, rental_ or other agreement to purchase or occupy a unit in the project. Copies of the full reports shall be made available at all times at the sales office and shall be posted at various locations, as may be required by the City, at the project site. 26.32.080 Physical standards for condominium conversions. (1) Adequate physical condition. To achieve the purpose of this chapter, the Planning Commission shall YI require, except as may otherwise be provided in this code that all units to be converted to condominium conform to the Burlingame Municipal Code in effect at the time of tentative map approval, including all building and fire codes. All violations of the City code and all required modifications of units of the project must be corrected prior to the approval of the final map, or, upon approval of the Planning Commission, funds shall be adequately escrowed, prior to the closing of escrow of a unit, to assure completion thereafter of such corrective work. (2) Specific physical standards. In addition to any other requirements, the following specific standards and requirements shall be met: (a) Fire prevention - smoke detectors: Each living unit shall be provided with approved detectors of products of combustion other t""nazi heat con- forming to the latest U.B.C. standards. (b) Sound transmission: (i) Shock mounting of mechanical equipment: A11 permanent mechanical equipment, such as motors, compressors, pumps and compactors which are determined by the Building Inspec- tor to be a source of structural vibration or structure -borne noise shall be shock mounted with inertia blocks or bases and/or vibration isolators in a manner approved by him. (ii) Noise standards: the structure shall conform to all exterior. and interior sound transmission standards of the Uniform Build- ing Code. In such cases where present standards cannot reasonably be met, the Planning Commission may require the appli- cant to notify potential buyers of the noise deficiency currently existing within these units. (CJ Utility metering; (i) The consumption of gas and electricity within each unit shall be separately metered so that the unit owner can be separately billed for each utility. A water shut-off valve shall be pro- vided for each unit or for each plumbing fixture. The Planning Commission may find at the time of approval that individual metering of gas and electricity is impractical and excessively ex- pensive and waive those requirements. Each unit having individual meter(s) or heater(s) shall have access to its own meter(s) and heater(s) which shall not require entry through another unit. (ii) Each unit shall have its own panel, or access thereto, for all electrical circuits which serve the unit. (d) Private stora;e space: Each unit shall have at least two hundred (200)cubic feet of enclosed weather -proofed and lockable private storage space in addition to guest, linen, pantry and clothes closets customarily provided. Such space may be provided in any location approved by the Planning Department, but shall not be divided into two or more locations. In cases where the developer can demonstrate that this standard cannot reasonably be met, this standard may be modified by the Planning Commission. (e) Laundry facilities: Either a laundry area in each unit or common laundry areas shall be pro- vided; provided such facilities shall consist of not less than one automatic washer and dryer for each common five units or fraction thereof. In such cases where the developer can demonstrate that this standard cannot reasonably be met, this standard may be modified by the Planning Commission. (f) Landscape maintenance: All landscaping shall be restored as necessary and maintained to achieve a high degree of appearance and quality. (g) Condition of equipment and appliances: The developer shall provide written certification to the buyer of each unit at the close of escrow that any dishwashers, garbage disposals, stoves, refrigerators, hot water tanks, air conditioners and any other major appliances that are provided are in operable working condition as of the close of escrow. At such time as the homeowners associ- ation takes over management of the development, the developer shall provide written certification to the association that any pool and pool equipment (filter, pumps, chlorinator) and any appliances and mechanical equipment to be owned in common by the association is in operable working condition. (h)Refurbishing and restoration.: All main buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, land- scaped areas, and additional elements as required by the Planning Department shall be refurbished and restored as necessary to achieve a high degree of appearance, quality and safety. 26.32.090 Hearing. At the time of the hearing on the tentative map, the Planning Commission shall also hold a hearing on the con- version permit. Notice of the hearing shall be given to all tenants of the proposed conversion and posted on the property. 26.32.100 FIearing considerations. At the hearing on the application for conversion of existing apartments to condominiums, the Planning Com- mission shall consider the following: (1) The opinions of the tenants of the project as to whether the proposed conversion protects their interests. (2) Whether or not the amount and impact of the displacement of tenants, if the conversion is approved, would be detrimental to the health, safety or general welfare of the community. (3) The role that the apartment structure plays in the existing housing rental market and whether this role is substantially altered by the proposed conversion in the light of the tenant protection provisions in this code. Particular emphasis should be placed on the evaluation of rental structures to determine if the existing apartment complex is serving low and moderate income households, or special groups of tenants such as elderly or handicapped. (4) G7hethez or not lower cost homeownership oppor- tunities will be increased by the conversion of apartments to condominiums, stock cooperatives or community 10 apartments. (5) TiThether tenants will have substantial difficulty in obtaining comparably priced housing. 26. 32.110 Findings. The Planning Commission shall not issue a permit for condominium conversion unless the Planning Commission finds that: (1) All provisions of this chapter are met; (2) The proposed conversion is consistent with the Burlingame General Plan; (3) The proposed conversion will conform to the Burlingame Municipal Code and other applicable code provisions, if any, in effect at the time of tentative map approval, except as otherwise provided in this chapter or specifically excepted by the Planning Commission; (4) The overall design and physical condition of the condominium conversion achieves a high degree of appearance, quality and safety.°' Section 3. Section 26.33, concerning purchase restric- tions and tenant protections in condominium conversions, is hereby added to the Burlingame Municipal Code to read as follows: "CRAFTER 26.33 DESIGidAlED UiQITS, PURCHASE AND SALE RESTP.ICTIOldS AND TENAlQT PROTECTIONS 26.33.010 Inclusion of provisions in covenants, conditions and festrictions. The provisions of Sections 26.33.020 to 26.33.050 shall apply to all condominium conversions and shall be contained in the declaration of covenants, conons and restrictions. 11 26.33.020 Designated units. The party proposing the conversion shall designate a quantity of units totaling not less than ten percent (10%) of the units in the project to be converted. The designated units shall include those units occupied by senior or handicapped tenants, as defined below, at the time the notice to convert is given. If the number of units occupied by senior or handicapped tenants at the time the notice to convert is given is larger than ten percent (10%), the initial number of designated units shall be the number of units occupied by senior or handicapped tenants at the time the notice to convert is given; pro- vided, that when the initial number of designated units is more than ten percent (10%) of the units in the pro- ject due to their occupancy by seniors or handicapped, as designated units cease to be occupied by senior or handi- capped tenants such units shall cease to be classified as designated units until their number is reduced to the required ten percent (10%). For purposes of this section, seniors shall be defined as persons sixty-two (62) years of age or older and handicapped shall be defined as persons who have a physical or mental handicap which substantially limits one or more major life activities, including caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working. The designated units are subject to the follow- ing restrictions: (1) Occupancy by seniors or handicapped: The designated units shall be occupied by persons who are 12 seniors or handicapped. However, if a designated unit is occupied by husband and wife, only one spouse need be senior or handicapped. Also, a surviving spouse of a senior who was married to the senior and occupied a designated unit at the date of death of his or her spouse shall be allowed to occupy the designated unit regardless of the age of the surviving spouse. (2) Lease of designated units: Upon conver- Sion any senior or handicapped tenant as o£ the date notice to convert was given shall have the right to enter into a lifetime lease for the unit which the senior or handicapped tenant occupies. The lease shall provide that rental increases shall not occur more frequently than once per year and each rental increase shall be limited to a maximum of fifty percent (50%) of the increase in the Consumer Price Index for the San Francisco -Oakland Metropolitan Area, 26.33.030 Resale of units purchased at original sale. No unit purchased from the developer shall be sold within one year from the date of such purchase except for good cause amounting to a substantial change in the circumstances of the original buyer occurring after the date of the purchase. Upon any such resale or proposed resale, the developer shall have the right to repurchase the unit at a price equal to the price the unit was acquired by the original buyer plus inter- est and costs of purchase paid by said original buyer; the intent here being to make said original buyer whole if the developer elects such a repurchase. 26.33.040 Limit of quantity of units purchased. No buyer shall be permitted to purchase from the developer more than five percent (50) of the total units available for sale other than units designated for seniors and handicapped persons. 26.33.050 Candidate qualifications for association mem ership. If permitted by the California Department of Real Estate, the declaration of convenants, conditions and re- strictions for the project shall provide that only owners Tho occupy a unit shall qualify as candidates for election to the board of directors of the condominium association for the project. 26.33.060 Tenant provisions. The following shall apply to all conversions of residential units to condominiums: ( 1 ) Notice of intent: A Notice of Intent to Convert shall be delivered to each tenant. The form of notice shall be on a form prepared by the Planning Department and shall inform tenants of all rights provided under this section. It shall be mailed or otherwise delivered within five days of filing the application. (2) Leases for continuing tenants. Any tenant who does not wish to purchase a unit but who wishes to continue renting and gives notice of such intention within the time set forth herein shall be offered a lease of not less than two years, to take effect upon approval of the final map for the project. The lease shall provide for rent increases which shall not exceed five percent (5} per year. Base rent for such leases shall be the rent in effect at the 14 time the conversion application is filed with the City. (3) Tenantsrh of fzrst refusal, In conformity with the applicable California Government Code sections, existing tenants of any unit shall be given a nontrans- ferable right of first refusal to purchase the unit which they occupy at a price no greater than the price offered to the general public. Notice of exercise of such right must be given as provided herein. (4) Notice of tenant's election. Each tenant shall have ninety (90) days from the date of issuance by the California Department of Real Estate of the Subdivision Public Report or from the commencement of sale of the units, whichever date is later, to declare the tenant's election: (a) Lease. To lease a unit; (b) Purchase. To purchase a unit; or (c) Vacate. To neither lease nor purchase a unit, but instead to vacate the project. Failure of a tenant to declare an intent within the time designated shall be deemed an election by the tenant to neither purchase nor lease any unit but instead to vacate the project. (5) Vacating units by non -purchasing or non -leasing tenants and payment of moving expenses. Each tenant of the project at the time the application for conversion has been filed who (a) has not previously given notice of his or her intent to move, (b) elects not to purchase or lease a unit or who is silent on the notice of right to huy or lease as provided herein, and (c) is not in default of the obligations of the rental agreement or lease under 15 which he or she occupies his or her unit, shall have not less than one year from the approval date of the conver- sion permit or final subdivision map, whichever is later, to find substitute housing and relocate. The developer shall notify each such tenant immediately prior to the time of final map approval of the anticipated date required to vacate the unit and when the one-year period shall com- mence. Evidence of delivery of such a notice to each such tenant shall be submitted prior to approval of the final map. The developer shall pay each such tenant his or her actual moving expenses, provided that developer's obligation for a tenant's moving expenses shall not exceed four (4) times the monthly rent paid by such tenant for his or her unit prior to tenative map approval as provided herein. A tenant commencing occupancy of a unit after the application for conversion is filed shall not be entitled to moving expenses. Tenants eligible to receive the moving expenses shall receive such expenses at the time they relocate. (6) Increase in rents. The rent of any tenant in the project for which an application for a conversion permit has been filed shall not be increased for one year from the time of filing of the application and thereafter no more than once each year until the unit is sold or until the subdivision application is denied or withdrawn. Any rental increase during such period shall not exceed one- half (1/2) of the increase in the Consumer Price Index for the San Francisco - Oakland Metropolitan Area. (7) Termination by "tenant. Any tenant shall have the right to terminate any lease or rental agreement for a unit within the project to be converted without any penalty 16 whatsoever after notice has been given of the intention to convert if such tenant notifies the developer in writing thirty (30) days in advance of such termination. (8) Alternative accommodations. The developer shall provide alternate comparable accommodations, including moving expenses, for such period the tenant is displaced or his or her unit is rendered uninhabitable by remodel- ing or other conversion procedures. (9) Notice to new tenants. After submittal of the tentative map, any prospective tenants shall be notified in writing of the intent to convert prior to leasing or renting any unit." Section 4. This ordinance shall be published as requirec P ayor I, EVELYN H. HILL, City Clerk of the City of Burlingame; do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council held on the 20th day of April, 1981, and was adopted thereafter at a regular meeting of the City Council held on the 4th day of May , 19813 by the following vote: AYES: COUNCILPN: NOES: COUNCILMEN ABSENT: COUiQCILMEN CROSBY,MANGINS,MARTIN AIIIS TRUP ,BARYON NONE 17