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:
Condominium project.
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:
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.
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.
The word "condominium" as used in this Chapter 6.76, shall apply equally to a community apartment and cooperative apartment.
Construction and development.
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.
Sale.
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,
NOTICE OF LIEN
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:
(Description of property)
DATED this _____day of _____, 20_____.
City Clerk.
(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)
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)