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HomeMy WebLinkAboutOrd 885-1982ORDINANCE NO. 885-82 AN ORDINANCE REPEALING CHAPTER 15.52 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE AND ORDINANCE NO. 869, ENTITLED "AN ORDINANCE REGULATING THE CONVERSION OF CONDOMINIUMS, STOCK COOPERATIVES AND COMMUNITY APARTMENT PROJECTS" AND ADDING CHAPTER 19.80 TO THE SOUTH SAN FRANCISCO MUNICIPAL CODE, ENTITLED "CONDOMINIUM CONVERSIONS REGULATED" THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES ORDAIN AS FOLLOWS: SECTION 1. CHAPTER 15.52 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE AND ORDINANCE NO. 869 REPEALED. Chapter 15.52 of the South San Francisco Municipal Code and Ordinance No. 869, entitled "An Ordinance Regulating the Conversion of Condominiums, Stock Cooperatives and Community Apartment Projects" are hereby repealed, except that this repeal shall not affect or prevent the prosecution or pun- ishment of any person for any act done or omitted in violation of said Chapter or Ordinance prior to the effective date of this Ordinance. SECTION 2. CHAPTER 19.80 ADDED. Chapter 19.80 is hereby added to the South San Francisco Municipal Code, and shall read as follows: "Chapter 19.80 CONDOMINIUM CONVERSIONS REGULATED Sections: 19.80.010 Findings/Purpose. 19.80.020 Limitation on Minimum Size of Conversion. 19.80.030 Annual Limitation. 19.80.040 19.80.050 19.80.051 19.80.052 Exemptions. Selection Procedure. Ranking of Applications. Applications, Grounds for Rejection. 19.80.053 19.80.054 19.80.055 19.80.056 19.80.060 19.80.070 19.80. 080 19.80.090 19.80.100 19.80.110 19.80.120 19.80.130 19.80.140 19.80.150 19.80.160 19.80.170 Consideration by City Council. Explanation of Ranking. Explanation of Reasons for Rejection. Appeals. Notice of Filing of Tentative Map. Notice of Intention to Convert. No~tice of Intention to Convert (Applicability). Termination of Right of First Refusal. Notice to Quit. Notice to Subsequent Tenants. Declaration of Service of Notice. Requirements for Tentative Map Approval. Applicability of Titles 15, 19 and 20. Conditions on Approval. Information to Accompany Tentative Map. Relocation Assistance Plan. 19.80.190 19.80.200 19.80.210 19.80.220 19.80.230 19.80.240 19.80.250 19.80.260 19.80.010 Relocation Plan - Applicability. Incentives to Aid Tenants to Purchase Units. Housing Replacement Fees. Processing as Standard Subdivision. Findings Prior to Approval of Final Map. Additional Findings. Discrimination Unlawful. Penalty. Findings/Purpose. The City Council finds that the existing stock of rental housing provides the majority of housing opportunities for 2 CENTRAL RECORD~ lower and moderate income households, and that reduction of this stock is incom- patible with the goals expressed in the Housing Element of the General Plan. The City Council also finds that the conversion of rental units to condominiums, stock cooperatives and community apartment projects often results in the displacement of lower and moderate income households and that the mitigation of such action is desirable and consistent with the goals expressed in the Housing Element of the General Plan. The City Council also finds that conversions of residential, commer- cial and industrial rental units to ownership units shall not be approved unless such conversions are found to be consistent with the General Plan of the City and in compliance with all applicable provisions of this Code. 19.80.020 Limitation on Minimum Size of Conversion. No conversion of a structure creating less than five (5) condominium units shall be approved. 19.80.030 Annual Limitation. The conversion of a residential structure to a community housing project shall only be approved when the vacancy rate of multiple-family dwelling units, within the City, as determined by the Director of Community Development, is more than five percent (5%). If the vacancy rate exceeds five percent (5%), the number of units allowed for conversion shall be restricted on an annual basis as follows: A. On or before June 30 of each year, the Director of Community Develop- ment shall determine the number of all multiple-family dwelling units within the City and the vacancy rate of those units. The number of dwelling units available for conversion into units of a community housing project in the fiscal year begin- ning on July 1 following said report shall not exceed the number which would reduce the vacancy rate to five percent (5%). The burden of proof shall be on the appli- cant. B. Date for determining the City's annual multiple-family vacancy e CENTRAL RECORD~ rate shall be compiled from a variety of sources including, but not limited to, U. S. Postal Service Surveys, idle utility meter reports, reports from financial institutions and real estate organizations and U.S. Census Bureau data. 19.80.040 Exemptions. A. The provision of this Chapter shall not apply to the conversion of residential structures to limited-equity housing cooperatives. B. Only the provision of Sections 19.80.020, 19.80.060, 19.80.130, 19.80.140, 19.80.150, 19.80.160, 19.80.220, 19.80.230, 19.80.240 and 19.80.260 of this Chapter and applicable tenant notice provisions contained in the California Government Code shall apply to the conversion of non-residential buildings to condominium, stock cooperative, or membership association projects. C. Excluded from the requirements of Sections 19.80.230.B(5) and 19.80.250 shall be studio units within a community housing project which has a publicly estab- lished and maintained policy of selling, leasing or renting dwelling units exclusively to elderly persons. 19.80.050 Selection Procedure. Complete applications for conversions of residential structures to community housing projects may be submitted within a two (2) month period once each fiscal year between the first working day in October and last working day in November in the same fiscal year. The annual number of units approved for conversion shall not exceed the total determined in Section 19.80.030. These applications must contain all information required for a Tentative Map application pursuant to this Chapter, 19.80.051 Ranking of Applications. The Director of Community Development shall rank each group of applications in accordance with a formula based upon the following criteria: A. The extent to which the proposed conversion will provide housing opportunities for persons of all income levels in the community. 4. CENTRAL RECORDS B. The extent to which the proposed conversion's deleterious effect on occupyina tenants will he mitiqated by relocation assistance and other assistance provisions by the applicant. C. The extent to which the building is suitable on the basis of its physical condition and other amenities, for conversion to a community housing project. 19.80.052 Applications, ~rounds for Reiection. Applications will be rejected unless it is demonstrated that the proposed proiect will meet minimum requirements specified herein with respect to the criteria in Section 19.80.051, subsections (A) through (C). 19.80.053 Consideration by City Council. The Planning Commission and City Council shall consider the highest ranking acceptable applications, the total units not to exceed the annual conversion limitation. The City Council may approve applications from those presented. The total units in such aoproved applications shall not exceed the annual limitation. 19.80.054 Explanation of Reasons. Upon written reQuest,_the appl, iCant shall receive from the ~irector of Community Development a written explanation of the rank qiven to the conversion application. 19.80.055 Explanation of Reasons for Re~ection. Upon written request, the applicant shall receive from the girector of Community Development a written explanation of the reasons for reiection of the conversion application. 19.80.056 Appeals. Upon request, the applicant shall receive from the Director of Community Development written information concerning the process for appeal of the ranking or denial of the conversion applicat~om, which process shall be as follows: A. The applicant shall file a written appeal with the City Council within fifteen days after the date of the decision of the Director of Community 5 CENTRAL RECORD~i Development. B. At the regular meeting immediately following receipt of said appeal, the City Council shall set a date to hear said appeal. The date for the hearing shall be within thirty days of the filing of the appeal. C. Notice of such appeal shall be given to the Director of Community Development, and a written report shall be submitted by the Director of Community Development to the City Council setting forth the reasons for his action and, in addition, the Director of Community Development shall appear before the City Council at the hearing on said appeal. D. The City Council shall render its decision within thirty days after the filing of such appeal. 19.80.060 Notice to Tenants and Prospective Tenants of Filing of Tentative M~p. A. Not less than sixty (60) days prior to the filing of a Tentative Map, the applicant shall provide tenants and prospective tenants of any structure which is to be the subject of a "condominium conversion" as defined in this title with notice as required by Section ~ 66452.8 of the Government Code. B. In addition to the requirements in Subsection A of this Section, an applicant for conversion of residential real property into a condominium project, a community apartment project or a stock cooperative project shall provide tenants and prospective tenants of the structure which is proposed to be converted with the notice required in Section 66427.1 and 66452.9 of the Government Code. C. The 60-day notice required by Government Code Section 66427.1 (a) shall further specify: 1. That the tenant will be permitted to terminate any lease or rental agreement without penalty upon notifying the subdivider in writing thirty (30) days in advance of such termination unless otherwise provided in a written lease. e 2. That no existing tenant's rent will be increased from the level that existed three (3) months prior to the date of application for a Tentative Map until tenant purchase of the unit, or tenant relocation, takes place, or the Tentative Map application is approved or denied, whichever is later. This period shall not exceed twelve (12) months. The tenant may credit the amount of any rent paid in excess of the allowable rent to the rental payment(s) immediately following the approval of the Tentative Map. Any rent increase following the twelve (12) month period shall not exceed six percent (6%)/year. 3. The tenant shall be notified of the availability of financing for initial purchase and for unit resale. 4. That the provisions for relocation assistance and/or special group considerations specified in subsections 19.80.170, A-F, are applicable. 5. That no tenant will be evicted during a period beginning with the date of application for Tentative Map and ending one hundred twenty (120) days after the issuance of the Notice of Termination of Tenancy or during the term of a lease re- quired by subsection 19.80.170 of this Chapter, except for the following reasons: a. Violation of terms of an existing lease. b. Failure to pay rent. c. Waste of the property. 19.80.070 Notice of Intention to Convert. Each tenant of a conversion pro- ject which will change a residential structure to a community housing project shall be given 180 days' Notice of Intention to Convert prior to termination of his or her tenancy. The subdivider shall, at his/her discretion, establish the date of issuance of the Notice of Intention to Convert. 19.80.080 Notice of Intention to Convert (ApPlicability). The 180 day Notice of Intention to Convert required by Section 66427.1(c) of the Government Code shall apply to existing and subsequent tenants of units to be converted. 7. CENTRAL RECORDS o.: ...... ...... Y Each person who becomes a tenant of a unit for which a 180 day Notice of In- tention to Convert has already been issued shall be informed and given a copy of said notice before' entering into any written or oral rental agreement. At that time, such tenant shall also receive, in writing, notification of the number of days remaining before the expiration of the Notice of Intention to Convert previously issued. 19.80.090 Termination of Right of First Refusal. The ninety (90) day Right of First Refusal referred to in Government Code Section 66427.1(d) shall terminate no later than the expiration date of the Notice of Intention to Convert. 19.80.100 Notice to Quit. A Notice to Quit, as authorized by Civil Code Section 1946, must be served after the expiration date of the Notice of Intention to Convert. 19.80.110 Notice to Subsequent Tenants. Any person who moves into a unit after any or all notices required by this Section have been issued, shall receive copies of all notices before entering into any lease or rental agree- ment. 19.80.120 Declaration of Service of Notice. Developer shall provide City with a Declaration under Penalty of Perjury that each tenant has been served with all notices required by this Section and applicable State law. 19.80,130 Requirements for Tentative Map Approval. The Planning Commission and City Council shall adhere to the following general requirements in their review and approval or disapproval of Tentative Maps: A. No map shall be approved without a finding by the approving body that the proposed subdivision, together with the provisions of its design and improve- ments, is consistent with the General Plan of the City, along with applicable e CENTRAL R 'CORD8 specific plans, the Housing Element and applicable portions of this Code. A proposed subdivision shall be deemed to be consistent with those authorities only if the proposed subdivision or land use is compatible with the objectives, policies, general land uses and programs specified in such authorities, including the objectives of providing affordable housing for all economic segments of the community. In making such determination,~the City Council may consider such facts relevant to the public health, safety or welfare as may appear in each particular case. B. No Tentative Map shall be approved unless the City Council first finds that all of the provisions of Section 66427.1 of the Government Code have been or will be met by the applicant. C. A Tentative Map shall be disapproved if any of the following findings are made: 1. That the Tentative Map is not consistent with applicable authorities as set forth in subsection 19.80.130A; 2. That approval of the Tentative Map would be inconsistent with the intent of this Chapter; 3. That the site is not physically suitable for the proposed density of the development; 4. That the design or proposed improvements of the subdivision are likely to cause or sustain substantial environmental damage as defined by Section 21000 et seq. of the Public Resources Code; 5. That there is an insufficient supply of affordable replacement units in the City available to tenants who will be displaced as a result of the conversion; or CENTRAL RECORDS 6. The application does not comply with any other provisions of this Chapter, the Subdivision Map Act or other related state or local laws. 19.80.140 Applicability of Titles 15, 19 and 20. Each condominium conversion shall meet all current requirements of Title 15, Title 19 and Title 20 of this Code. The Director of Public Services shall review all proposals for condominium conversions to determine their degree of compliance with Title 15 and shall report his findings to the City Council and Planning Commission. 19.80.150 Conditions on Approval. The City Council may impose conditions on its approval which would require that specified modifications, be made to bring a structure and site into compliance with applicable portions of this Code. 19.80.160 Information to Accompany Tentative Map. The Subdivider shall provide the Director of Community Development with the following information necessary to evaluate the conversion: A. A report prepared and signed by a qualified civil or structural engineer hired by the City and paid for by the Subdivider indicating the extent to which structural condition of all buildings and structures in the project comply with Title 15 of this Code andlisting and describing any deficiencies relating to that Title. The statement shall include a description and evaluation of the items listed below. The statement shall also include recommendations for repair or replacement of any item or conditions requiring it and specific notification of any and all conditions presenting a potential danger or hazard or contributing to deterioration of the structure. Acceptability of the statement shall be determined by the Director of Public Services and the Fire Chief; 10. ¢I:'NTRAL (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) Type and age of construction Walls, interior and exterior Plumbing a. Each unit shall have separate water and gas meters where practical. Electrical a. Each unit shall have separate electric meters where practical Roof Walks Garaging Insulation and soundproofing Fire detection system Trash disposal Tiling Fixtures and appliances Drainage Landscaping Swimming pools, saunas, fountains Driveways Walls and fences Stone or brickwork Heating Air conditioning Fi repl aces F1 oors 11. CENTRAL RECORDS (23) (24) (25) (26) (27) (28) (29) (3o) (31) Laundry facilities Exterior lighting Deferred maintenance Windows Building foundation Sanitary Sewemand cleanouts Stairs and railings Fire Extinguishing Systems Addressing B. Other information pertinent to the proposed conversion as required by the Planning Commission or City Council. C. A Maintenance and Upkeep Plan shall be submitted including a proposed budget and a reserve account for long-term maintenance. D. In the case of conversion, of a residential structure to a community housing project, tenant information as listed in a tenant profile form, developed by the Director of Community Development and reviewed annually by the Planning Commission and City Council. 19.80.170 Relocation Assistance Plan. In the case of a conversion of a residential structure to a community housing project, an adequate Relocation Assistance Plan shall be prepared by the applicant which indicates how the applicant will assist tenants who are displaced, or will be displaced, in securing decent, safe, sanitary and affordable replacement housing, not higher in cost than the rent of the existing unit being converted. This plan must include a specific commitment by the applicant to provide: A. Lease agreements in the building being converted for all low and moderate income elderly and handicapped tenants that will begin on the expiration date of the Notice of Intention to'Convert and remain in effect for a minimum of forty-eight (48) months. 12. CENTRAL B. Lease agreements in the building being converted for low income tenants that will begin on the expiration date of the Notice of Intention to Convert and remain in effect for a minimum of twenty-four (24) months. C. Lease agreements in the building being converted for moderate income tenants and for all elderly tenants not included in Subsection A above that will begin on the expiration date of the Notice of Intention to Convert and remain in effect for a minimum of twelve (12) months. D. Lease agreements in the building being converted for other handicapped persons that will begin on the expiration date of the Notice of Intention to Convert and remain in effect for a minimum of twelve (12) months. E. Lease agreements in the building being converted for tenants with children (under 18 years old) that will begin on the expiration of the Notice of Intention to Convert and remain in effect for a minimum of twelve (12) months, provided that such agreements shall not result in the termination of a tenancy until at least one (1) month after the end of a school year. F. Lease agreements in the building being converted for tenants who are fu~l~ime studen~sthat will begin on the expiration of the Notice of Intention to Convert and remain in effect until at least one (1) month after the end of the then current school year. G. Relocation assistance inc~sding, but not limited to, active assistance in securing replacement housing for tenants who will be displaced and a minimum payment of Two Thousand Dollars ($2,000) to each household for displacement costs. 19.80.190 Relocation Plan - Applicability. The provisions of the Relocation Plan shall apply to all tenants, (a) who are occupants of the building on the date 13. of filing of the Tentative Map with the City, or (b) who became tenants before the date of issuance of the Department of Real Estate Subdivision Public Report and who resided in the building for ninety (90) or more days prior to the issuance of that report. All relocation payments shall be made within thirty (30) days of termination of tenancy, or if hardship exists, as determined by the Director of Community Development, upon the vacation of the unit. Applicant must further agree that: A. In the event that a tenant qualified for more than one of the provisions for extended leases, pursuant to Subsection 19.80.170 (A-F), the tenant may choose from the applicable lease terms which shall,apply. B. Rent increases on units with extended leases as provided in SUbsections 19.80.170 (A-F) shall be limited to six percent (6%) per twelve (12) month period. C. Tenants receiving lease extensions (as in Subsections 19.80.170 (A-F)), may be evicted only for the reasons specified in Subsection 19.80.060 (F) of this Chapter. This provision shall run for the duration of the lease. 19.80.200 Incentives to Aid Tenants to Purchase Units. In the case of a proposed conversion of a residential structure to a community housing porject, in order to reduce the number of tenants being displaced, the Subdivider shall consider providing incentives that would aid tenants in becoming owners/share- holders in the converted project. Any such incentives, including terms and conditions, shall be documented and filed with the application to convert. 19.80.210 Housing Replacement Fees. In the case of a proposed conversion of a residential structure to a community housing project, in order to mitigate the impact of displaced tenants on the community surrounding the conversion and meet the City's Fair Share responsibilities, the Subdivider shall pay housing replacement fees for lower and moderate income households as follows: 14. CENTRAL RECORDS FILE NO.: A. The applicant shall pay into a City trust fund a fee of Five Thousand Do~a~s~.(~5,000)., or five percent (5%) of the purchase price, whichever is greater, for each dwelling unit converted in each project to be appropriated by the City Council to be utilized to provide replacement housing and otherwise support objectives of the Housing Element of the General Plan. 19.80.220 Processing as Standard Subdivision. In addition to the require- ments of this Chapter, applications for a condominium conversion shall be processed in accordance with the provisions of Title 19 of this Code relating to standard subdivisions and shall be subject to all of the same requirements as a new condo- minium project (including permits and fees due) under that Title. 19.80.230 Findings Prior to Approval of Final Map. The following findings must be made prior to approval of the Final Map: A. That each of the tenants will be notified within thirty (30) days of the issuance of the Department of Real Estate Subdivision Public Report, and at that time each tenant will be notified that no remodeling of the interior of tenant-occupied units shall begin until at least ninety (90) days after issuance of said report, provided that this provision shall not prevent repairs necessary to protect the health, safety or welfare of the occupants of such units as required by applicable portions of Title 15 or Title 20 of this Code. B. That a Notice to Prospective Buyers ha~, been completed and will be made available to all prospective buyers, including existing tenants, which notice shall include, but not be limited to, the following: 1. The information and reports referred to in Section 19.80.060 and supplementary reports indicating steps taken to correct any deficiencies noted in the prior reports; 15. CENTRAL RECORDS 2. Estimated future property maintenance costs and proposed first year and long range budget; 3. Estimated homeowner association or management fees; 4. A notice stating that the Covenants, Conditions and Restrictions (CC&R's), or equivalent document, shall contain on the first page thereof in type as large as any type used in the CC&R's, a notification in substantially the follow- ing terms: "NOTICE THE TERMS OF THIS DOCUMENT ARE LEGALLY BINDING. READ IT CAREFULLY. A REAL ESTATE BROKER IS QUALIFIED TO ADVISE YOU ON REAL ESTATE MATTERS. IF YOU DESIRE LEGAL ADVICE, CONSULT AN ATTORNEY." 5. A provision that discrimination against families with minor children is prohibited, which shall contain, verbatim, the wording of Section 19.80.250. C. That a Notice of Rescission will be made available to all prospective buyers stipulating a ten (10) day period following the execution of any agreement to purchase, during which period prospective buyers may cancel a purchase agreement and receive full repayment of any deposits of other consideration received by the Subdivider with respect to the agreement to purchase. D. That the Covenants, Conditions and Restrictions (CC&R's), or equivalent document, for any converted community housing project contain the provisions set forth in Section 19.80.250 of this Chapter. 19.80.240 Additional Findings. In addition to those findings se forth above, all other requirements, terms and conditions set forth in this Title must be met prior to the approval by City of a Final Subdivision Map. 16. RECORDS 19.80.250 DiscriminatiOn Unlawful. A. It shall be unlawful for an applicant or owner of any unit which is created after the conversion to a community housing project has been completed, to refuse to sell, lease or rent any dwelli.ng unit, or to otherwise deny occupancy of said unit, because the family which is the prospective purchaser, lessee, renter or occupier of said unit has one or more minor children. B. It shall be unlawful for an applicant or owner of any unit which is created after the community housing project has been converted, to discriminate in the terms, conditions, privileges or availability of residential facilities or services against persons who are prospective residents because they have one or more minor children. 19.80.260 Penalty. Any person, firm, corporation, partnership or other association violating any of the provisions of this Chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than Five Hundred Dollars ($500) or by imprisonment in the County Jail for a period of not more than six (6) months, or by both such fine and imprisonment. Nothing contained herein shall be determined to bar any legal, equitable or summary remedy to which the City of South San Francisco or other political subdivision or person, firm, corporation, partnership or other association may otherwise be entitled, and the City of South San Francisco or any other political subdivision, or person, firm, corporation or association may file an action in the Superior Court in the State of California, in and for the County of San Mateo to restrain or enjoin any attempted, proposed or existing violation of this Chapter." SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or invalid, such decision shall 17. CENTRAL RECOi D$ not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or invalid. SECTION 4. PUBLICATION. Pursuant to the provisions of Government Code Section 36933, a Summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15) days after adoption of this Ordinance, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. SECTION 5. EFFECTIVE DATE. This Ordinance shall become effective thirty (30) days from and after its adoption. 18. CENTRAL. RECOi~D$ at a this AYES: NOES: ABSENT: Introduced this 6th day of January , 1982. Passed and adopted as an Ordinance of the City of South San Francisco regular meeting of the City Council of the City of South San Francisco 20th day of January , 1982, by the following vote: Councilmembers Ronald G. Acosta, Mark N. Addiego, Emanuele N. Damonte, Gus Nicolopulos; and Roberta Cerri Teglia None None As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 20th day of January , 1982. MaYor 19.