The purpose and intent of this chapter is to:
A. Ensure
the provision of a variety of housing opportunities (ownership and
rental) in Lake Forest including low density single-family homes,
moderate density townhomes, higher density apartments and condominiums
and mobilehomes to fulfill regional housing needs in accordance with
the City's Housing Element, Policy 1.10;
B. Provide
standards and criteria for regulating the conversion of rental units
to condominium, community apartment or stock cooperative types of
ownership; and
C. Assist
tenants displaced from rental units converted to owner-occupied units.
(Ord. 176 § 1, 2007)
"Condominium"
means condominium projects, community apartment projects
and stock cooperatives, as defined in Section 1351 of the California
Civil Code.
"Condominium conversion project"
means a project for which a valid map and use permit application
have been submitted to the City after the adoption of the ordinance
codified in this chapter to divide one or more parcels of real property
into condominiums and the creation of separate ownership of the units
therein with a separate interest in the space within all structures
thereon. This shall not apply to those conversion projects for which
a valid map was filed with and accepted by the City prior to adoption
of the ordinance codified in this chapter.
"Disabled person"
means persons defined in United States Code, Title 42, Section
423 and shall also include handicapped persons, as defined in the
California
Health and Safety Code, Section 50072.
"Eligible tenant"
means a tenant who has had a valid lease in a unit that is
proposed to be converted in connection with a condominium conversion
project for a minimum of 36 months prior to the first tenant notification
prior to filing the application for a condominium conversion project
pursuant to Section 66427.1(b) of the Subdivision Map Act.
"Low income"
means income does not exceed 80% of the then-current area
median household income of the County of Orange adjusted for family
size by the State Department of Housing and Community Development
in accordance with adjustment factors adopted and amended from time
to time by the United States Department of Housing and Urban Development
pursuant to Section 8 of the United States Housing Act of 1937.
"Moderate income"
means income does not exceed 120% of the then-current median
household income of the County of Orange adjusted for family size
by the State Department of Housing and Community Development in accordance
with adjustment factors adopted and amended from time to time by the
United States Department of Housing and Urban Development pursuant
to Section 8 of the United States Housing Act of 1937.
"Organizational documents"
means the declaration of restrictions, articles of incorporation,
by-laws and any contracts for the maintenance, management or operation
of all or any part of a Condominium Conversion Project.
"Special category tenants"
means those Eligible Tenants, which also qualify as disabled,
senior citizen, Low Income, or Very Low Income individuals as defined
under California law.
"Unit"
means the particular area of land or airspace that is designed,
intended or used for exclusive possession or control of individual
owners or occupiers.
"Vacancy rate"
means the number of vacant apartment dwelling units being
offered for rent or lease in the City of Lake Forest shown as a percentage
of the total number of apartment dwelling units offered for or under
rental or lease agreement in the City. Said vacancy rate shall be
as established by a public or private service that monitors apartment
vacancies within the City.
"Very low income"
means income that does not exceed 50% of the then-current
area median household income of the County of Orange adjusted for
family size by the State Department of Housing and Community Development
in accordance with adjustment factors adopted and amended from time
to time by the United States Department of Housing and Urban Development
pursuant to Section 8 of the United States Housing Act of 1937.19.64.020.
(Ord. 176 § 1, 2007)
Condominium conversions shall conform to the applicable local,
state, and Federal laws in place at the time of the conversion, subject
to any valid, applicable exceptions thereto. Additional General Requirements:
A. NPDES.
The project shall comply with current water quality requirements as
determined by the City Building Official or Public Works Director,
as applicable.
B. Surveying.
Permanent lot stakes and tags shall be installed at all lot corners
by a California licensed surveyor or civil engineer unless otherwise
required by the Director of Public Works.
(Ord. 176 § 1, 2007)
The property owner shall provide each tenant of a rental unit
to be converted pursuant to this chapter with an exclusive right to
purchase his or her respective unit in accordance with Section 11018.2
of the
Business and Professions Code and Section 66427.1 of the Subdivision
Map Act.
(Ord. 176 § 1, 2007)
The applicant shall submit a tenant relocation plan containing
and complying with the following:
A. A detailed
report describing the relocation and moving assistance information
to be given to each tenant. The report shall state in detail what
assistance will be provided for special category tenants.
B. The
applicant shall provide a tenant information handout and a questionnaire
to each tenant with an envelope, postage prepaid, addressed to the
Community Development Department. The questionnaire shall include
questions regarding tenant income, length of tenancy, age, disability,
and household size, and shall request that the tenant return the completed
form directly to the Community Development Department.
(Ord. 176 § 1, 2007)
In addition to the tenant protection provisions set forth in
the Subdivision Map Act, the applicant shall comply with the following
provisions, as conditions of any condominium conversion use permit
for a condominium conversion project approved pursuant to this chapter:
A. Relocation
Assistance. The applicant shall offer to each eligible tenant a plan
for relocation to alternate housing. The relocation plan shall provide
for the following:
1. Assistance
to each eligible tenant in locating alternate housing, including but
not limited to, providing availability reports where necessary.
2. Payment
of a relocation fee to each eligible tenant who does not choose to
purchase a condominium unit. The payment shall be a one-time lump
sum cash payment of at least $1,500 in 2006 (calendar year) dollars.
An otherwise eligible tenant is not entitled to a relocation fee pursuant
to this subsection if the tenant has been evicted for just cause.
In addition, a cash payment of actual deposit costs not to exceed
$100 in 2006 dollars shall be made to each eligible tenant who does
not choose to stay for utility deposits and hook-up costs. Cash payment
minimums and deposit costs will be adjusted annually, in accordance
with the Consumer Price Index for all urban consumers published by
the United States Bureau of Labor Statistics for the Los Angeles-Long
Beach-Anaheim metropolitan area. The applicant shall submit appropriate
documentation to demonstrate that the cash assistance provided is
the equivalent to 2006 dollars in value.
3. In the case of eligible tenants who are also special category tenants as defined in Section
9.172.020 herein, the applicant shall provide to the displaced special category tenant, in addition to the relocation fee specified in subsection (A)(2) of this section, a one-time lump sum payment not to exceed a total of $1,000 in 2006 dollars, of the first month's rent in the alternate housing, if required upon moving in; and the transfer to the new complex of all key, utility, and pet deposits to which the special category tenant is entitled upon vacating the unit.
4. The
relocation assistance payments referenced in subsections (A)(2) and
(A)(3) of this section shall be paid at the time the tenant vacates
the unit.
5. The
applicant's offer to each eligible tenant of relocation assistance
shall be free of any coercion, intimidation, inducement or promise
not herein specified and shall not cause the tenant to vacate in advance
of a timetable or schedule for relocation as approved in the application
for approval of conversion.
B. Antidiscrimination.
The applicant or owner of any condominium unit within a project 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.
(Ord. 176 § 1, 2007)
Recognizing that the conversion of existing structures which
have been previously occupied and constructed as rental units presents
unique problems to present tenants and future buyers, the application
for a condominium conversion project use permit shall include the
following information in addition to that required by other sections
of this Code:
A. Pest
Inspection Report. A report by a California-licensed structural termite
and pest control specialist certifying whether or not all attached
and detached structures are free of infestation and structural damage
caused by pests and dry rot.
B. Building
History Report. A building history report identifying the date of
construction of all elements of the project and permit history.
C. Plot
Plans. Plot plans and elevations, fully dimensioned, indicating the
type and location of all buildings and structures, parking and landscape
areas and signs. Screening, landscape and irrigation plans shall be
included in the plans.
(Ord. 176 § 1, 2007)
The housing element of the City's General Plan encourages residential
developments to incorporate a minimum of 15% affordable units. Applicants
shall be required to submit an affordable housing implementation plan
(AHIP) to the Director of Community Development prior to issuance
of building permits for any condominium conversion project. If no
building permits are required, the AHIP shall be submitted to the
Director of Community Development prior to approval of the final subdivision
map.
In the event that recorded covenants and/or affordable housing
agreements already exist for persons and families of moderate income,
low income and/or very low income in a multifamily complex or development
which an applicant seeks to convert pursuant to this chapter, the
applicant is required, and must demonstrate in its AHIP, that the
moderate income, low income and very low income unit(s) will remain
available to persons and families of moderate income, low income and
very low income, either by the recordation of new affordability covenants
for the newly converted units, which shall be subject to prior review
and approval by the Director of Community Development and the City
Attorney, or by continuing to rent converted units to qualified moderate
income, low income and very low income persons and families for the
duration of the remaining recorded covenants and/or affordable housing
agreements.
(Ord. 176 § 1, 2007)
The City Council shall not approve a condominium conversion
project and use permit unless it finds all of the following:
A. That
the condominium conversion project is consistent with the applicable
findings specified in Section 7-9-150.3 of this Code.
B. That
the applicant does not seek to convert an apartment complex or development,
which received a certificate of occupancy for any unit, located therein
within the preceding six months.
C. That
the average rental vacancy rate in apartment dwelling units within
the City during the 12 months preceding the filing of the application
is equal to or greater than 4%. Upon submission of the application,
the Director of Community Development shall obtain, at applicant's
sole expense, a written study or report from an objective, unbiased
third party which provides such studies and/or reports as part of
its ordinary course and scope of business on a statewide or nationwide
basis, which, in the Director's reasonable opinion reflects, that
the average rental vacancy rate in apartment units then available
in the City is 4% or higher. If the average rental vacancy rate in
the City during the 12 months preceding the filing of the application
is less than 4%, the condominium conversion project shall be denied
unless the City Council determines that at least one of the following
overriding considerations exist:
1. That
the apartment complex or development, or any portion thereof, is in
a deteriorated or unsafe condition, and/or constitutes a public nuisance
because it is a health and safety hazard to its occupants and guests;
or
2. Evidence
has been submitted that at least 50% plus one of the eligible tenants
have voted to recommend approval of the conversion; or
3. That the evidence presented to the City Council as part of the application for the condominium conversion project overwhelmingly complies with the policies and intent of this chapter. Applicants shall be able to request that the City Council allow for a condominium conversion project to be considered for approval where the vacancy rate and/or tenant approval percentage requirements contained in subsections
C and (C)(2) herein have not been met but have been substantially complied with.
(Ord. 176 § 1, 2007)
The City Council shall hold a public hearing on a condominium
conversion project, and the decision of the City Council shall be
final and subject to appeal only by way of writ of mandate to a court
of appropriate jurisdiction. A condominium conversion project use
permit may be approved subject to such conditions as the City Council
may prescribe.
(Ord. 176 § 1, 2007)
For residential developments, the conversion of existing apartments
to a condominium project shall be exempt from the requirements of
parkland dedication or parkland in-lieu fees if, on the date of conversion,
the apartment complex is at least five years of age and no additional
dwelling units are to be added as part of the conversion as provided
in Section 66477(d) of the Subdivision Map Act.
(Ord. 176 § 1, 2007)