Sec. 25-20-40. Condominium conversions.

(a) Definitions. For the purposes of this section the following definitions shall apply:
(1) Comparable housing:
(A) Decent, safe, sanitary and in compliance with all local and state housing codes;
(B) Open to persons regardless of race, color, religion, national origin, ancestry, marital status, sex, or any arbitrary basis;
(C) Housing is provided with facilities equivalent to that provided by the landlord in the dwelling unit in which the tenant then resides in regard to each of the following:
(i) Apartment size, including number of rooms,
(ii) Rent or lease range,
(iii) Major kitchen and bathroom facilities,
(iv) Special features necessary for the handicapped or infirmed;
(D) Located in an area not materially less desirable than the area in which the tenant then resides in regard to each of the following.
(i) Accessibility to the tenant’s place of employment,
(ii) Accessibility to community and commercial facilities,
(iii) Environmental quality and conditions,
(iv) Additional reasonable criteria which the tenant has requested in writing at the time of and request made under this section.
(2) Low and moderate income housing: affordable housing for persons and families of low or moderate income as defined by California Health and Safety Code Sections 50053 and 50093; or persons living in units financed in part by local, state, or federal subsidies.
(3) Good cause for eviction:
(A) Failure to pay rent after service of a three-day notice to pay rent or vacate;
(B) Failure to comply with a term or terms of the tenancy after service of a three-day notice to comply or vacate;
(C) The commission or permission of a waste or the maintenance of a nuisance on the premise and failure to vacate after service of a lawful notice thereof.
(b) Initial Study. Pursuant to procedures to be determined by the community development director an applicant may, at his/her expense, request an initial feasibility study of the proposed conversion. The study shall include a site inspection by a city building inspector.
(c) Conditional Use Permit Application. Recognizing that the conversion of existing structures which have been previously constructed and occupied as rental units presents unique problems to present tenants and future buyers, the application for a conditional use permit for a condominium conversion project shall include the following information in addition to that required by Article 27.
(1) A boundary map drawn to scale showing the location of all existing easements, structures, mature trees, and other improvements on the property.
(2) The proposed organizational documents, including the convenience, conditions, and restrictions to be recorded pursuant to Section 1350 et seq., of the Civil Code. The organizational documents shall provide for the following:
(A) Transfer of title to each unit;
(B) Assignment of parking for each owner and the management of common areas within the project;
(C) A proposed annual operating budget, including a report disclosing the amount of deposit to be provided by the developer and the manner in which it was calculated, to defray expenses of the association in replacing and maintaining major mechanical and electrical equipment;
(D) The FHA regulatory agreement, if any.
(3) A property report describe the condition and estimating the remaining useful life of each of the following elements of each structure situated within the project proposed for conversion: roofs, foundations, exterior paint, paved surfaces, mechanical systems, electrical systems, plumbing systems, sewage systems, sprinkler systems for landscaping, utility delivery systems, central or community heating and air conditioning systems, alarm systems, or standpipe systems, and structural elements. Such report shall be prepared by an appropriately licensed engineer.
(4) A structural pest control report. Such report shall be prepared by a licensed structural pest control operator pursuant to Section 8516 of the Business and Professions Code.
(5) A building history report including the following:
(A) The date of construction of all elements of the project;
(B) A statement of the major uses of said project since construction;
(C) The date and description of each major repair of any element since the date of construction. "Major repair" shall mean any repair requiring an expenditure of one thousand dollars or more;
(D) The date and description of each major renovation of any element since the date of construction. "Major renovation" shall mean any renovation requiring an expenditure of one thousand dollars or more;
(E) A statement regarding current ownership of all improvements and underlying land;
(F) The name and address of each present tenant of the project;
(G) Failure to provide information required by subsections (c)(5)(A) through (c)(5)(F) of this section shall be accompanied by an affidavit or declaration given under penalty of perjury, setting forth in detail all efforts undertaken to discover such information and all reasons why said information cannot be obtained.
(6) A report identifying all characteristics of the building not in compliance with this section or applicable building or housing codes, or California Administrative Code, Title 19.
(7) A rental history report detailing the size, in square footage, of the building or buildings and each unit; the current or last rental rate; the monthly rental rate for the preceding two years; and copies of any governmental rental agreements or contracts.
(8) A detailed report describing location and moving assistance and information to be given to each tenant, and the steps the developer will take to ensure the successful relocation of each tenant, in the event that relocation will be provided to elderly, handicapped, low-income tenants, and other tenants who may encounter difficulty finding new living quarters. The report also shall discuss procedures to allow hard-to-relocate tenants to stay on as tenants, or to give such tenants additional time after termination of tenancy, due to the conversion, for permanent relocation.
(9) A true copy of each of the following documents submitted to the Department of Real Estate of the state of California: (A) the application for issuance of a final public report for the project proposed for conversion, including all attachments and exhibits thereto, required pursuant to Section 11000, et seq., of the Business and Professions Code; (B) the Statement of Compliance (form 634 as amended) submitted pursuant to 10 Cal. Ad. Code Section 2792.9, or its successor, relating to operating and maintenance funds during start up; and (C) the supplemental questionnaire for apartments converted to condominium projects, including all attachments and exhibits.
(10) A statement as to whether the developer will provide any capital contribution to the association for deferred maintenance of the common areas, the sum of the contribution, and date on which the association will receive the sum.
(11) In addition to the information required in subsections (c)(11)(A) through (c)(11)(F) of this section, the planning commission or the community development director may require additional information necessary to evaluate said conversion project in order to make proper findings in accordance with the purposes and objectives set forth herein and the adopted city general plan in effect at the time of such application. The requirements of the director may be appealed to the planning commission. Such required information may include, but is not limited to:
(A) An economic report comparing the units in the conversion project, as both rentals and ownership units, with housing available within the city area affected by the project;
(B) An economic report on proposed project unit costs, monthly association costs, and comparative rates city-wide;
(C) An economic report on availability of comparable (see definition for comparable housing) rental units at similar rental rates remaining within the city, including vacancy rate information;
(D) A report outlining the available low and moderate income housing (see definition for low and moderate income housing) units (rental and sales housing) within the city;
(E) A report on the feasibility of providing all or a portion of the conversion units for sale to low and moderate income individuals or families;
(F) A report on the feasibility of retaining a portion of the total units for rental occupancy;
(G) A report on the existing tenant composition, showing age and income of the tenants and indicating if any tenants are disabled, handicapped, elderly, have minor children, or are low or moderate income families.
(H) Any additional information considered reasonable in determining housing needs, housing availability, costs, and housing impacts of the proposed conversion.
(12) The application for a conditional use permit made pursuant to this section shall be accompanied by a filing and investigation fee as prescribed by resolution of the city council.
(d) Notice of Hearing. In addition to the notice provisions of Article 27, the applicant shall provide names and addresses of all tenants in order that the city can provide notices of the time, date, and place that the application for a conditional use permit pursuant to this section is to be heard by the city planning commission. The notice shall indicate that the tenants may attend and participate in the hearing. Notice shall be personally delivered to each tenant or shall be mailed, postage prepaid, by certified or registered mail, return receipt requested. Notice pursuant to this paragraph shall be provided at least ten days before the hearing date, and the notice shall include the following information:
(1) Name and address of current owner;
(2) Name and address of the proposed developer;
(3) Date on which the conditional use permit application is to be heard by the city planning commission;
(4) Approximate date on which the unit is to be vacated by nonpurchasing tenants;
(5) Tenant’s right of purchase;
(6) Tenant’s right of notification to vacate;
(7) Tenant’s right of termination of lease;
(8) Statement on limitations on rent increase;
(9) Special provisions for the handicapped or disabled, the elderly, tenants with minor children, and tenants occupying low to moderate cost units; and
(10) Provisions for relocation assistance.
Tenant Information. Information concerning legal services, mortgage, and down payment requirement, interest rates, property taxes, home maintenance costs, and other information directed at educating the tenant about becoming a homeowner;
Evidence, satisfactory to the community development director of receipt of such notice by each tenant shall be submitted prior to the conditional use permit hearing before the planning commission. The community development director may require that notification be bilingual (Spanish and English).
Notice of continued hearing. In the event the hearing before the city planning commission for which the notice has been provided pursuant notice has been provided pursuant to this paragraph is, for any reason, not held or is continued to another date, the city shall provide notice at least ten days in advance of the new hearing if the new hearing is not continued to a date specific.
If an initial study request is submitted, tenants shall be notified and invited to present initial comments and recommendations concerning the proposal to the community development department.
(e) Development Standards. The following development standards shall apply to all applications for a conditional use permit for a condominium conversion:
(1) Off-Street Parking. Notwithstanding the provisions of Article 23, off-street parking shall be provided at a ratio of not less than one and one-half parking spaces per dwelling unit. The dimensions, location and use of such parking shall be subject to provisions of Article 23.
(2) Number of Units. At least four individual dwelling units must be included within the proposed conversion.
(3) Utilities.
(A) Sewer. Each condominium unit shall have a separate sewer service hookup; provided, that the planning commission may permit the use of common sewer lines that are oversized by one size or more, or which are hydraulically designed with a one hundred percent safety factor, where the planning commission, with concurrence of the city engineer, finds that the common sewer lines can adequately service the condominiums.
(B) Water. Each condominium unit shall have a separate water service hookup or shutoff; provided, that the planning commission may permit a single water system to service more than one condominium unit where shutoffs are provided wherever practical and where the planning commission, with the concurrence of the city engineer, finds that the single water system can adequately service the condominiums.
(C) Gas. Each condominium unit shall have a separate gas service where gas is a necessary utility.
(D) Electricity. Each condominium unit shall have a separate electrical service, with separate meters and disconnects, and ground fault interrupters, where required by city code.
(4) Sound Attenuation. All separating walls and floor-ceiling assemblies between condominiums shall provide an airborne and impact sound installation equal to that required to meet a sound transmission class of 50 (45 if field tested) as defined in U.B.C. Standard No. 35-1.
(5) Fire Safety. Each condominium unit shall have a one-hour fire separation on its floors and on each wall common to itself and an adjacent unit, including attic space. In lieu of the one-hour fire separation requirement, the planning commission may permit, with the concurrence of the fire chief, the use of a fire sprinkler system, where it finds the proposed system is sufficient to protect the occupants and the owner’s investment in the condominium.
(6) Ownership’s Organization. All condominium conversion projects shall provide an ownership association responsible for the care and maintenance of all common areas and common improvements and any other interest common to the condominium owners. Complete and true copies of all covenant, conditions, and restrictions, articles of incorporation, and by-laws shall be subject to review by the city attorney and approval by the community development director prior to occupancy as a condominium project. The city of Woodland may be made a third party beneficiary to all or any portion of the covenants, conditions, and restrictions, as deemed appropriate.
(7) Building Code Requirements. A building proposed for conversion and each unit within the building shall comply at a minimum with applicable building code standards in effect at the time of the last alteration, repair, relocation, or reconstruction of the building or, if none, at the time of first construction; and shall comply with current provisions of the city building code, Chapter 6 of the Woodland City Code. Nothing herein shall be construed to prevent or prohibit the applicant or the city from providing or requiring building standards greater than those set forth in the building code where the greater standards are found to be necessary to carry out the purposes and objectives set forth herein above for condominium conversions.
(8) Any other standards the commission may adopt by resolution.
(9) No building shall be permitted to be converted to condominium ownership unless the building was constructed and subject to a building permit issued under the provision of the 1952 Uniform Building Code, or subsequently adopted Uniform Building Code.
(10) No building constructed after the effective date of this ordinance shall be permitted to be converted to condominium ownership unless the building was constructed in full compliance with all applicable building codes and the development standards applicable to new condominium construction, or reconstruction of the building, or if none, at the time of first construction.
(f) Building Inspection.
(1) After reviewing the property and structural pest control reports required herein and after inspecting the structures within the project when he/she deems such inspection necessary, the community development director shall identify and make available to the planning commission all items evidenced by such reports and/or inspection to be in noncompliance with applicable building and housing codes or to be hazardous to the life, health or safety of an occupant of the units within the project or the general public. A conditional use permit for a conversion shall require all such items to be corrected to the satisfaction of the community development director.
(2) If the proposed project does not comply with the provisions herein relating to utilities, sound attenuation, fire safety and building code compliance, or if the community development director identified items to be corrected as provided herein, any conditional use permit issued pursuant to this part shall require the developer to furnish a cash bond, or a letter of credit, as determined by the community development director, in an amount equal to the reasonable estimated cost to bring the project into compliance with said codes, or to correct such identified items as provided herein, in favor of individual purchasers and the association. Said security shall provide for reasonable attorney’s fees in the event of default by the principal.
(g) Tenant and Buyer Protection Provisions.
(1) The applicant shall give each tenant one hundred eighty days written notice of intention to convert prior to termination of tenancy due to the conversion or proposed conversion.
(2) Any tenant who is over the age of sixty-two or who occupies a low to moderate cost housing dwelling unit, or who is handicapped as defined in Section 500072 of the California Health and Safety Code, or disabled as defined by Section 223 of the United States Social Security Act, or who has at least one minor child living in the unit, shall be allowed to remain as a tenant for an additional sixty days after termination of tenancy following the above one hundred eighty day notice of intention to convert, if reasonably necessary as determined by the planning commission. Written notices described in Paragraph G-1 shall advise all tenants of the availability of an additional sixty days for those who fall within the designated categories as provided herein.
(3) The applicant shall give each tenant of the proposed condominium conversion project an exclusive right to contract for the purchase of the dwelling unit occupied by the tenant upon the same or more favorable terms and conditions than those on which such unit will be initially offered to the general public. The right shall run for a period of not less than sixty days from the date of issuance of the subdivision public report pursuant to Section 11018.2 of the Business and Professions Code, unless the developer receives prior written notice of the tenant’s intention not to exercise the right. The ultimate decision on whether such offer is consistent with the ordinance shall be left to the discretion of the planning commission.
(4) The applicant shall provide each tenant with a copy of the report required herein detailing all relocation and moving assistance and information to be provided by the applicant. The applicant may be required to provide incentives and inducements for existing tenants to purchase a condominium unit in the conversion project where the planning commission finds that reasonably comparative rentals are not available in the community.
(5) The applicant shall provide each condominium unit purchaser with a copy of the reports required herein.
(6) The covenants, conditions, and restrictions (CC&R’s), or equivalent document, shall contain, or shall be amended to contain on the first page thereof, in type as large as any type used in the CC&R’s notification in substantially the following 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."

(7) The applicant shall not discriminate, in the sale, or in the terms and conditions of sale, of any dwelling unit against any person who is or was a lessee or tenant of any such dwelling unit, because such person opposed, in any manner, the conversion of such building into a condominium.
(8) From the date of approval of the conditional use permit until the date of actual conversion, no tenant’s rent shall be increased: (A) more frequently than once every six months, and (B) at a rate greater than the rate of increase in the Consumer Price Index, on an annualized basis, for the same period. This limitation shall not apply if rent increases are provided for in leases or contracts in existence prior to the filing date of the conditional use permit.
(9) A developer shall not evict tenants or force tenants to vacate their rental units for the purpose of avoiding application of this ordinance. No condominium unit shall be sold or offered for sale if, in the one hundred fifty day period immediately preceding the sale or offer for sale, any tenant is evicted without good cause. For one hundred twenty days prior to offering a rental unit for sale to the public, the tenant of that unit shall be evicted only for good cause (see definition for good cause for eviction).
(10) After submittal of the application to convert, any prospective tenants shall be notified in writing of the intent to convert prior to leasing or renting any unit and shall not be subject to the provisions herein concerning rent increase limitations.
(11) This article shall not prejudice the rights of any tenant or landlord under a preexisting lease.
(h) Criteria for Review of Conditional Use Permits.
(1) The planning commission shall not approve a conditional use permit for condominium conversion if the planning commission finds that:
(A) The tenants have not received notice as required herein.
(B) The apartment building or residential complex proposed for conversion represents a unique and needed rental housing source in the city or in the neighborhood, taking into consideration such factors as the need for a balanced rental-owner housing supply, current rentals rates, and special tenant displacement problems which could result from the conversion.
(C) The proposed conversion would not be consistent with the city general plan in effect at the time of the proposed condominium conversion application.
(D) The proposed conversion does not meet one or more of the specified development standards contained herein.
(E) A relocation plan has not been developed to the satisfaction of the planning commission.
(F) At any time during the eighteen months prior to permit application more than thirty percent of the units in the project were low cost housing, unless it finds that there are exceptional circumstances consistent with the purposes of this section justifying approval of the permit and a reasonable relocation assistance plan has been developed by the application.
(2) The planning commission shall revoke a conditional use permit for condominium conversion if it finds that the developer has failed to implement a relocation assistance plan.
(3) A reasonable relocation assistance plan shall contain the following elements at a minimum:
(A) A report to each tenant concerning the availability of housing comparable to the unit occupied by the tenant as to quality, price, and amenities.
(B) A description of the reasonable steps the applicant will undertake to assure successful relocation of each tenant; and
(C) An unconditional offer to pay each relocated tenant a relocation fee for the actual relocation expenses (moving expenses, deposits, and first and last month’s rent at the new residence) not to exceed eight hundred dollars. The planning commission may disapprove any relocation assistance plan which does not satisfy the criteria herein.
(D) A guarantee that alternate comparable housing as described in Section 25-20-40(A) shall actually be found for all displaced tenants before they may be required to move;
(E) The planning commission shall disapprove any relocation plan that does not satisfy the criteria herein.
(4) The planning commission shall deny a conditional use permit for condominium conversion if it finds that the applicant has not provided reasonable incentives and inducements for existing tenants to become owners in the condominium project, such as offering units at a discount, where the planning commission finds that reasonable comparable rental units are not available in the city.
(5) The planning commission shall make a determination that comparable housing does exist, before granting any conditional use permit for condominium conversion.
(6) The planning commission, or on appeal, the city council may grant a conditional use permit for a condominium project which does not comply with all of the development standards contained herein if the planning commission or city council finds that:
(A) Because of circumstances applicable to the subject property or the structures situated thereon, including but not limited to the size, shape, location, or surroundings of the subject property or the buildings thereon, but expressly excluding any consideration of the personal circumstances of the applicant, the strict application of the development standards would create an unreasonable economic hardship; and
(B) The conditional use permit issued under this part, not in conformance with the development standards but subject to any conditions as may be imposed thereon, will be in substantial compliance with such development standards; and, will incorporate mitigating features into the project which tend to further the purpose of this section.
(7) For purposes of granting variances to the development standards contained herein for condominium conversions, the provisions of this paragraph relating to the circumstances for which a variance may be granted, and the findings on which the grant of a variance must be based, shall govern to the exclusion of the provisions of Article 28. The variance provisions are not applicable to tenant protection provisions nor fire safety provisions. (Amended during the March 2009 supplement.)