The following definitions shall apply to the provisions of this chapter except where the context indicates otherwise. General definitions are contained in Chapter
203.
Affordable Unit.
A residential unit, sold to or occupied by a tenant earning
up to 100% of Orange County's gross median income, as determined by
the County of Orange, and shall include any subsequent change in such
income range, adopted by the Housing Agency of Orange County.
Applicant.
The owner, developer, subdivider or authorized agent of a
project.
Date of Approval.
The date the Zoning Administrator, Planning Commission, or
City Council on appeal, approves the conditional use permit and tentative
subdivision or parcel map applications. However, if the project is
located in appealable area of the coastal zone and includes action
on a Coastal Development Permit, Section 248.30 shall apply.
Date of Conversion.
The date a final map for a project was approved by the City
Council or parcel map for a project was approved by the City Engineer.
Project.
An existing apartment house, apartment complex, apartment
hotel, hotel, multiple dwelling or group dwelling proposed for conversion
to a condominium, community apartment, or stock cooperative.
(3334-6/97, 3657-9/04)
In addition to the conditional use permit, Coastal Development
Permit (where applicable), and tentative map applications, the applicant
shall submit the reports and/or information required by this section.
The cost of all reports shall be paid by the applicant. The reports
shall include information on what improvements, if any, shall be accomplished
by the developer and when such improvements shall be completed. All
improvements cited in the reports, whether required or voluntary,
shall be considered conditions of approval.
A. Physical Elements Report. A report on the physical elements
of all structures and facilities shall be submitted, containing the
following:
1. A
report by a California licensed structural engineer, civil engineer
or architect, describing in detail the structural condition, any evidence
of soils problems, code violations, useful life, and any apparent
deferred maintenance of all elements of the property, including, but
not limited to, foundations, electricity, plumbing, utilities, walls,
ceilings, windows, frames, recreational facilities, sound transmissions
of each building, mechanical equipment, parking facilities, and drainage
facilities. Such report also shall describe the condition of refuse
disposal facilities; swimming pools, saunas, and fountains; stone
and brickwork; fireplaces; and exterior lighting. The level of compliance
with the standards listed in Section 235.08(A) shall also be described
in detail.
2. A
report by a California licensed mechanical contractor detailing the
age, condition, size, and the cost of replacement for each appliance
and mechanical equipment for heating and cooling. The report shall
identify any defective or unsafe appliances and set forth the proposed
corrective measures to be employed.
3. A
report by a California licensed structural termite and pest control
specialist certifying whether or not all attached or detached structures
are free of infestation and structural damage caused by pests and
dry rot. The report shall describe what procedures would be necessary
to eliminate infestation or damage, if present. Any infestation shall
be remedied prior to sale.
4. A
report by a California licensed painting contractor verifying the
condition of the painting throughout the project, including building
interior and exterior surfaces and an estimate of the remaining physical
life of the paint. A statement that new paint (minimum 20-year warranty)
will be applied on all building interior and exterior surfaces may
take the place of such report. Such statement shall include the brand
name of the paint and the exterior colors to be used.
5. A
report by a California licensed roofing contractor verifying the condition
of the roofs of all structures and an estimate of the remaining physical
life of the roofs and the cost of replacement. A statement that new
roof material will be applied may take the place of such report. Such
statement shall include the specifications of the proposed roofing
material.
B. Covenants, Conditions and Restrictions. A declaration of the
covenants, conditions, restrictions, and rules and regulations which
would be applied on behalf of any and all owners of condominium units
within the project shall be submitted. The declaration shall include,
but not be limited to the conveyance of units; the assignment of parking
and storage areas; and an agreement for common area maintenance, together
with an estimate of any initial assessment fees anticipated for such
maintenance, and an indication of appropriate responsibilities for
the maintenance of all utility lines and services for each unit. The
CCRs shall be approved as to form by the City Attorney and recorded
in the office of the County Recorder.
C. Conversion Plan. Specific information concerning the demographic
and financial characteristics of the project shall be submitted, including,
but not limited to, the following:
1. The
date of construction of all elements of the project, and the date
and description of each major repair or renovation of any structure
or structural element, since the date of construction. For purposes
of this subsection, "major repair" shall mean any repair for which
an expenditure of more than $5,000.00 was made.
2. A
statement of a major use of said project since construction.
3. A
statement regarding current ownership of all improvements and the
underlying land.
4. The
square footage and number of rooms in each unit.
5. The
rental rate history for each type of unit for the previous two years.
6. The
monthly vacancy rate for each month during the preceding two years.
7. A
complete list of the number of tenants and tenant households in the
project, including the following information:
a. Households with persons 62 years or older;
b. The family size of households, including a breakdown of households
with children five years and younger; and between five and 18 years;
c. Households with handicapped persons;
e. The designation of low-and moderate-income households and whether
any are receiving federal or state rent subsidies.
When the subdivider can demonstrate that demographic information
is not available, this requirement may be modified by the Director.
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8. The
proposed price of each of the units.
9. The
proposed homeowners' association budget, detailed to include fixed
costs, operating costs, reserves, administration, and contingencies.
10. A statement of intent as to the types of financing programs to be
made available, including any incentive programs for existing residents.
11. The method to be implemented to ensure availability of affordable
units to tenants.
12. Signed copies from each tenant of the notice of intent to convert,
as specified in this chapter. The applicant shall submit evidence
that a certified letter of notification was sent to each tenant for
whom a signed copy of such notice is not submitted.
D. Vacancy Rate Analysis. A citywide vacancy rate analysis for
multiple-family rental units for the past 12 months shall be submitted.
E. Acceptance of Reports. The final form of the physical structure
elements report, conversion plan, and other documents shall be approved
by the Planning Commission. The reports in their acceptable form shall
remain on file with the department for review by any interested person.
(3334-6/97, 3657-9/04)
In reviewing requests for the conversion of existing apartments
to condominiums, the Planning Commission (or Zoning Administrator
for exempted units as defined in Section 235.04) shall consider the
following:
A. Whether
displacement of tenants, if the conversion is approved, would be detrimental
to the health, safety, or general welfare of the community;
B. The
role the rental units play in the existing housing rental market and
whether they serve low-and moderate-income households; and
C. The
need and demand for lower-cost home ownership opportunities which
are increased by the conversion of apartments to condominiums.
(3657-9/04)
Consistent with the requirements of Section 65915.5 of the California
Government Code, the City shall offer a density bonus or other incentives
of equivalent financial value to condominium conversions including
low- or moderate-income housing units or lower-income household units.
When an applicant for approval to convert apartments to a condominium
project agrees to provide at least 33% of the total units of the proposed
condominium project to persons of low or moderate income, as defined
in Section 50093 of the California
Health and Safety Code, or 15%
of the total units to lower-income households, as defined in Section
50079.5 of the California
Health and Safety Code, the Planning Commission
shall either (1) grant a 25% density bonus or (2) provide other incentives
of equivalent financial value. Any density bonus or other incentives
of equivalent financial value provided under this section shall be
governed by the requirements of Section 235.08.
A. For
purposes of this section, "density bonus" means an increase in units
of 25% over the number of apartments permitted and provided within
the existing structure or structures proposed for conversion. "Other
incentives of equivalent financial value" shall not be construed to
require the City to make any cash transfer payments or other monetary
compensation to the applicant, but may include the reduction or waiver
of any required fees for the condominium conversion standards prescribed
in Section 235.08.
B. No
applications for a density bonus shall be accepted if the apartments
proposed for conversion constitute a housing development for which
a density bonus was provided under the provisions of Section 230.14.
(3657-9/04)
The Planning Commission (or Zoning Administrator for exempted
units as defined in Section 235.04) may approve an application for
a condominium conversion if it finds that the proposed conversion
meets the following requirements:
A. That
all the provisions of the Subdivision Map Act, this chapter, and other
applicable provisions of this title are met; and
B. That
the proposed conversion is consistent with the General Plan and any
applicable specific plan; and
C. That
the proposed conversion will conform to the provisions of this ordinance
in effect at the time of the project approval, except as otherwise
provided in this chapter; and
D. That
the overall design and physical condition of the condominium conversion
achieves a high standard of appearance, quality, and safety; and
E. That
either (1) the proposed conversion will not displace a significant
percentage of low- or moderate-income, permanently or totally disabled,
or senior citizen tenants or delete a significant number of low- and
moderate-income rental units from the City's housing stock at a time
when no equivalent housing is readily available in the Huntington
Beach area, or (2) the applicant agrees to pay an affordable housing
in-lieu fee pursuant to Section 235.08(B); and
F. That
the dwelling units to be converted have been constructed and used
as rental units for at least five years prior to the application for
conversion; and
G. That
the applicant has not engaged in coercive, retaliatory action regarding
tenants after the submittal of the first application for City review
through the date of approval; and
H. That
either (1) the project is not located within the coastal zone, or
(2) the project is located within the coastal zone and the existing
use to be converted is not a visitor serving use (including hotels).
(3334-6/97, 3657-9/04)