The Council finds that the existing stock of rental housing
provides the majority of housing opportunities for lower and middle
income households. A shortage of such units exists, and any reduction
in the stock of such units would be incompatible with the goals of
the Housing Element of the General Plan. Conversion of such units
into condominiums often results in displacement of lower and middle-income
households. It is the intention of this chapter to regulate such conversion
and to mitigate displacement where conversion occurs.
(Ord. 5428 § 1, 2014)
Condominium conversion occurs whenever a multiple residential dwelling unit building or a residential housing project containing three or more dwelling units under the same ownership, or such a project that has been granted an occupancy permit is subdivided so that individual dwelling units are available for sale as condominiums within the meaning of Civil Code Section 783. The subdivision shall be processed in accordance with Roseville Municipal Code Title 18 and the Subdivision Map Act. (Government Code Section 66410 et seq.) All notices to tenants required by Government Code Section 66427.1 shall be given by the developer.
(Ord. 5428 § 1, 2014)
A.
Where Allowed. A conversion to condominiums shall be permitted
only in the R3, multi-family housing district, residential mixed use
district (RMU) and planned development (PD) district.
B.
Minimum Community Vacancy Rate. No conversion to condominiums
shall be accepted or approved when the City-wide vacancy rate for
multiple unit housing, as determined by the Planning Manager, is equal
to or less than five percent averaged over the previous four quarters
prior to application submittal. If the averaged vacancy rate exceeds
five percent, then an application for a conversion to condominiums
may be accepted by the City. A request for conversion shall apply
to an entire multi-family housing project and partial conversions
shall not be permitted.
C.
Determination of Vacancy Rate. The vacancy rate shall be determined
by using information regarding vacancies within multi-family complexes
of 50 or more units. Supplemental information on rental vacancies
in multi-family complexes of between three and 50 units obtained by
City staff, the applicant, or other interested parties may also be
utilized if available.
D.
Minimum Multi-Family Rental Unit Pool. No conversion to condominiums
shall be accepted or approved if the current percentage of multi-family
rental units (within complexes of three or more units) is at or below
15 percent of the total number of housing units within the City. Under
no circumstance shall a conversion reduce the percentage of multi-family
rental units below 15 percent of the total number of housing units
within the City.
E.
Applicants
requesting a condominium conversion shall enter into a development
agreement which provides for the following:
1.
Affordable Housing Requirements. Condominium conversions may
be permitted only when the following criteria are met:
a.
Projects not already subject to recorded affordable rental obligations
(“affordable rent component”) shall subject 10 percent
of the units within the project to affordable purchase obligations,
without City subsidy, as part of a conversion.
b.
Parcels that have an existing affordable rent component shall convert
the affordable rental units to affordable purchase units. In addition,
a condominium conversion shall increase the total number of affordable
units by a number equal to five percent of the total number of units
within the project. However, the total number of affordable purchase
units shall not be less than 10 percent of the total units in a project.
The converted and new affordable units shall be provided without City
subsidy.
c.
Projects with an existing affordable rent component shall provide affordable purchase units in the same ratio of middle, low, and very low-income units as required by the project’s existing affordable housing development agreement. Without City subsidy, the new or additional affordable units as required by subsections (E)(1) and (2), shall be provided at a ratio reflecting the then current City requirement for middle, low, and very-low income.
2.
Public Safety Services Assessment. All residential units converted
to condominiums shall be included in a new or existing community facilities
district for services (CFD-Services) to provide for costs associated
with the provision of public safety services. Low or medium density
residential units shall be assessed $285.00 per unit annually (baseline
year 2004). High density residential units shall be assessed $186.00
per unit annually (baseline year 2004). The per-unit assessment shall
be adjusted annually based on any increase in the City’s public
safety budget, not to exceed an increase of four percent annually.
3.
Community Benefit Fee. All residential units converted to
condominiums shall be subject to payment of a one-time community benefit
fee per unit. Said fee shall be paid at the close of escrow for each
unit, or within 12 months from the recordation of a final condominium
map, whichever is sooner. The community benefit fee shall be subject
to annual adjustments above the baseline year based on the Construction
Cost Index. The baseline year shall be the year 2004, and the baseline
fee shall be $5,000.00. At the discretion of the City Manager, the
community benefit fee may be reduced on a case-by-case basis for projects
that provide a community benefit that is above and beyond the requirements
of this title. The community benefit fee shall be deposited into the
general fund and shall be allocated at the City Council’s discretion.
F.
Lease Agreements. Upon the filing of an application for a condominium conversion, existing tenants living within a project seeking to convert to condominiums shall be allowed to terminate a preexisting lease without penalty. However, any tenant who terminates a lease prior to receiving a notice to vacate from the property owner shall not be entitled to relocation benefits as provided in Section 19.58.070.
G.
Final Map Approval. No final condominium map shall be approved
within a period of 90 days following tentative condominium map approval.
(Ord. 5428 § 1, 2014; Ord. 6198 § 1, 2020)
A condominium conversion shall be filed and processed with a subdivision map in accordance with Roseville Municipal Code Title 18 and the Subdivision Map Act (Government Code Section 66410 et seq.). All notices to tenants required by Government Code Section 66427.1 shall be given by the developer.
(Ord. 5428 § 1, 2014)
The application for a condominium conversion to implement the provisions of the chapter shall be submitted with the tentative map application. The application shall include the following information, in addition to the information required by Chapter 19.84:
A.
A site/development
plan;
B.
A detailed
list of rents for each unit to be converted for the 12 months prior
to the application, a copy of the lease for each unit and the renting
history for each unit;
C.
Economic
and demographic information regarding the current tenants as required
by the Planning Manager;
D.
Evidence
that all current tenants have received a notice of intention to convert
and notice of purchase rights as required by the Subdivision Map Act;
F.
A vacancy
rate survey of multi-family rental complexes of at least 50 units
or more, located within the City limits of Roseville and current to
within six months of the condominium conversion application date,
if requested by the Planning Manager; and
G.
Any
additional information as the Planning Manager deems necessary.
(Ord. 5428 § 1, 2014; Ord. 6198 § 1, 2020)
All converted units shall be retrofitted to the standards required
of new residential condominiums as required by the chief building
inspector, including energy conservation.
(Ord. 5428 § 1, 2014)
If any tenants are displaced, the applicant shall, as a condition
of approval, be required to implement a tenant relocation assistance
plan.
A.
Plan Content. The tenant relocation assistance plan shall
be prepared by the applicant and indicate 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. The plan
shall, at a minimum, include a specific commitment by the applicant
to provide:
1.
Leases
with terms no less than 12 months for persons with permanent disabilities
(as defined in 42 U.S.C. 423, or Section 102(7) of the Development
Disabilities Assistance Bill of Rights Act [42 U.S.C. 6001], or 24
C.F.R. 8.3) or low-income tenants (defined as having incomes equal
or below 80 percent of the County or the Sacramento Primary Metropolitan
Statistical Area median income), either in the building being converted,
or in alternative housing provided by the subdivider comparable in
location, amenities, and cost to that being converted. Lease extensions
may be granted and the length of such extension shall be based on
individual tenant needs. Such permanently disabled or low-income tenants,
that are 60 years of age of older, shall receive a lifetime lease
in which the annual rent increase shall coincide with the increases
as shown in the Section 8 Housing Assistance Payments Program published
for the West Census Region by the United States Department of Housing
and Urban Development (HUD). In the event HUD terminates the publication,
rents shall be adjusted annually to coincide with the annual percentage
increase for residential rent as shown in the “Rent, Residential”
component of the Housing Component in the Consumer Price Index for
all urban consumers in the Sacramento Primary Metropolitan Statistical
Area.
2.
Relocation
assistance including, but not limited to, active assistance in securing
replacement housing, not higher in cost than the unit being converted,
for tenants who will be displaced, and a payment as determined by
the Council to each household for displacement costs. At a minimum,
such payment shall be equal in amount to two months rent and the security
deposit amount paid by the tenant for the existing apartment unit.
3.
Families
with children in grades K through 12 shall not be required to vacate
during the school year.
B.
Ownership Incentives. In order to reduce the number of tenants
being displaced, the applicant shall consider providing incentives
that would aid tenants in becoming owner/shareholders in the converted
project. Any such incentives, including terms and conditions, shall
be documented and filed with the application to convert. Incentives
may include, but are not limited to, low-interest loans, reduced prices,
application of a percentage of rent payment toward a down payment
for purchase of a unit within the project, or other similar items
approved by the Commission. At a minimum, the incentives offered to
existing tenants for purchase of a unit within a project shall be
equal or greater in value to the dollar amount of compensation provided
to tenants who are relocated.
(Ord. 5428 § 1, 2014)
Following submittal of a condominium conversion application to the City, any prospective tenant shall be notified in writing of the intent to convert prior to leasing or renting a unit but shall not be eligible for any relocation benefits or moving expenses as provided by Section 19.58.070.
(Ord. 5428 § 1, 2014)
After submittal of an application to the City for a condominium conversion and at least 30 days prior to a public hearing before the Planning Commission the developer of the project shall distribute a draft of the tenant relocation assistance plan to all eligible tenants and shall hold a public meeting. The meeting shall provide information to tenants regarding tenant relocation assistance as required by Section 19.58.070.
(Ord. 5428 § 1, 2014)
