Note: Editor's note: Chapter 6.68B amended by Ord. Nos.
1092CCS, 1093CCS, 1094CCS and 1095CCS, adopted 5/26/78; Ord. No. 1097CCS,
adopted 7/11/78.
A condominium business license tax is imposed solely for revenue
purposes upon the development and construction of all condominium
projects, whether of new construction or of conversion from an existing
building, in the sum of One thousand dollars per planned salable unit.
(Prior code § 6651)
In interpreting and administering the provisions of this law,
each of the following words and phrases shall be construed as herein
set forth unless it is clearly apparent from the context that a different
meaning is intended:
Any condominium project or community apartment project as
so defined in prior code Section 9102 of this Code or cooperative
apartment project defined as follows:
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Cooperative Apartment Project is the entire parcel of real property,
including all structures thereon, on which a cooperative apartment
is to be constructed or an existing improved real property is to be
converted to a cooperative apartment.
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Cooperative Apartment is an improved real property owned or
leased by a cooperative housing corporation or by any other corporation,
partnership, trust, or association if all or substantially all of
the shareholders of such corporation or partners of such partnership,
or beneficiaries of such trust, or members of such association, receive
a right of exclusive occupancy in a portion of the apartment house
or apartment hotel, which right of occupancy is transferable only
concurrently with the transfer of the stock, partnership interest,
beneficial interest, or membership held by the person having such
right of occupancy. For all purposes of the Santa Monica Municipal
Code, a cooperative apartment will be subject to the same restrictions,
conditions and taxes as condominiums and community apartments.
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The word "condominium" as used in this Chapter 6.76, shall apply equally to a community apartment and cooperative apartment.
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Any and all acts connected with the building, erection, construction,
creation, production, conversion into, marketing of, or improvement
to create any condominium, town house, community apartment, cooperative
apartment, condominium cluster development or similar structure or
forms of ownership.
The transfer of "title" to property, or the exclusive right
to occupy it, by the execution of the deed, lease, or other instrument,
by seller or lessor and unconditional delivery thereof to the purchaser
or lessee. For the purpose of this Chapter, a sale shall not be deemed
to be completed until a properly executed deed, lease, or other instrument
is delivered to the purchaser or lessee, except in a land sale contract
where said sale shall be complete upon execution of the contract.
Recordation of the deed or lease, or a memorandum thereof, shall be
prima facie evidence of delivery.
(Prior code § 6652)
A condominium license will be issued by the City Clerk upon
the payment of the required fee provided herein or upon the execution
and recordation of a duly notarized agreement signed by all record
owners of the property contained within the condominium project, in
a form approved by the City Attorney, agreeing to pay the condominium
license tax prior to occupancy. Said agreement shall be recorded with
the County Recorder and shall create a lien against the property until
it is paid. Within five days of payment of said tax, the City Clerk
shall file a release of said lien with the County Recorder.
(Prior code § 6653)
The condominium business license tax may be deferred by the
City Council with regard to individual units in cooperative apartments
participating in or assisted by federal housing programs for low and/or
moderate income persons or where other assurances are presented of
the nonprofit, non-speculative nature of the cooperative apartment
development, or units therein. Such assurances may consist of, but
need not be limited to restrictions on equity buildup and transfer
thereof to promote housing for low and/or moderate income persons.
The City Clerk shall record a notice of deferral of taxes and the
terms thereof with the County Recorder.
The City Council may also defer the payment of said taxes on
cooperative apartment units to be occupied by the elderly or handicapped
persons under the same terms, procedures and continued occupancy restrictions
set forth herein for housing for low and/or moderate income persons.
Application for deferral of the condominium business license
tax shall be filed with the Director of Planning upon forms developed
and provided by him and accompanied by such data as may be prescribed
by the Director so as to assure the fullest practicable presentation
for the permanent record, and shall be verified by the applicant as
to the correctness of all facts and information contained therein.
Upon approval of the City Council, payment of said taxes may be deferred as long as said units are occupied by persons of low and/or moderate income and in substantial compliance with the development proposal and supporting documents presented to the City Council. Should said occupancy restrictions be removed, the taxes on such units shall become immediately due and payable and subject to the lien provisions of Section 6.76.070 herein.
(Prior code § 6653A)
It is unlawful to engage in, permit, suffer, or assist in the
development or construction or to occupy any condominium for which
a license has not been obtained as provided in this Chapter.
(Prior code § 6654)
In the event that a developer fails to obtain a condominium
license, the City Clerk shall notify him that he is in violation and
that if he does not request a hearing within five days, a lien will
be filed against the property being developed for the full amount
of tax. In the event that a hearing is demanded, a properly noticed
public hearing will be set within 10 days of said request before the
City Clerk, at which time evidence may be presented to contest the
lien. The contestant will have a right to call witnesses and to cross-examine
witnesses of the City. The obligation to pay the tax and the amount
of the tax owed will be determined prior to filing said lien.
(Prior code § 6655)
The City clerk shall, upon the determination that the tax is
due, deliver to the county auditor and record with the county recorder
a notice of lien substantially in the following form, to wit,
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NOTICE OF LIEN
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Pursuant to the authority vested in me by Article 6, Chapter 6.76, Section 6.76.060 of the Santa Monica Municipal Code I did cause a hearing to be held on the _____day of _____, 20_____, which date was within 10 days after receiving request for said hearing and more than five days after mailing notice of said hearing to all interested parties, to ascertain why a tax lien should not be imposed upon the hereinafter described property for non-payment of a required condominium tax _____of which _____is still unpaid and owing; and having determined at said hearing that said amount is owed to the City of Santa Monica, said City hereby does claim a lien on said real property in the sum of _____and the same shall be a lien upon real property until the said sum has been paid in full and discharged of record, and said sum shall be collected in the same manner and at the same time as are the taxes for said City on said real property and subject to the same penalties and procedures to foreclose. The real property herein mentioned and upon which a lien is claimed is that certain piece or parcel of land in the City of Santa Monica, County of Los Angeles, State of California, and particularly described as follows, to wit:
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(Description of property)
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DATED this _____day of _____, 20_____.
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City Clerk.
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(Prior code § 6656)
No permit for building, construction, demolition, grading, condominium
construction, condominium conversion, variance, conditional use or
occupancy shall be granted unless the license provided for in this
Chapter is obtained. No permit specified herein shall be granted for
any condominium, condominium conversion, or condominium project within
any R1 zone, including, but not by way of limitation, R-1A zones,
and no condominium, condominium conversion, or condominium project
shall be constructed within any R1 one-family residential district,
including, but not by way of limitation, R-1A districts; provided,
however, that such permits may be issued for properties comprised
of a transitional residential lot abutting the multiple residential
district fronting upon Ocean Avenue. Notwithstanding other provisions
of law, no occupancy permit may be obtained under any circumstances
until the condominium license tax has been paid for any condominium
conversion, or condominium project in any zone other than any R1 zone.
A certificate of occupancy is required for the occupancy of any condominium,
new or conversion. Separate occupancy permits may be granted upon
separate payment of the required license tax.
(Prior code § 6657)
The remedies for failure to pay this tax are supplementary to
any other remedy provided by law for the failure to pay a business
license tax and are also cumulative both with regard to each remedy
provided by this Chapter and each remedy provided by law.
(Prior code § 6658)
In the event that the condominium or condominium conversion
development is abandoned before substantial work is begun, the tax
paid will be refunded to whomsoever paid said tax, upon payee's filed
statement that he has so abandoned the project and upon his relinquishment
of the issued condominium license, provided further that in the event
of such refund, it shall be unlawful for any person to proceed in
any way with further development of the project without first applying
for and receiving the applicable condominium license.
(Prior code § 6659)
Upon the payment of the condominium tax or upon abandonment of the project as provided in Section 6.76.100, the City Clerk shall, within 10 days of his receipt of the tax or his receipt of notice, relinquished condominium license and verification of abandonment, file with the County Recorder and the County Auditor a "Release of lien."
(Prior code § 6660)
