The purpose of this chapter is:
A. 
To establish criteria for the conversion of existing multiple family rental housing to condominiums, community apartments and cooperative apartments;
B. 
To reduce the impact of such conversions on residents in rental housing who may be required to relocate due to the conversion of apartments to condominiums, community apartments and stock cooperatives by providing procedures for notification and adequate time and assistance for such relocation;
C. 
To insure that the purchasers of converted housing have been properly informed as to the physical condition of the structure which is offered for purchase;
D. 
To insure that converted housing achieves high quality appearance and safety, is consistent with the goals of the city's general plan, and conforms or is legally nonconforming with the density requirements of the general plan's land use element;
E. 
To attempt to provide an opportunity for housing ownership of all types, for all levels of income and in a variety of locations;
F. 
To attempt to maintain a supply of rental housing for low-income and moderate-income persons and families.
(Ord. 1315 § 1)
As used in this chapter, the "date of conversion" for condominium conversions means the date the final or parcel map for the project is approved by the city council. For stock cooperatives, the "date of conversion" will be determined by the issuance of the condominium conversion permit issued by the secretary of the planning commission after the planning commission has approved the conversion and the applicant has demonstrated compliance with all applicable provisions of this chapter.
(Ord. 1315 § 3)
No person, firm, corporation, partnership or other entity shall convert existing dwelling units to a condominium subdivision, community apartment or stock cooperative without first having the conversion approved by the planning commission or the city council on appeal, and having been issued a condominium conversion permit by the secretary of the planning commission.
(Ord. 1315 § 4(a))
A. 
A project creating a condominium or stock cooperative and using no more than one existing dwelling unit as part of the condominium or stock cooperative shall not be considered a conversion and shall not be subject to this chapter. For the purposes of this exclusion, the number of existing dwelling unit(s) shall be determined on the date of application for the permit. If the project calls for destruction of the structure housing the dwelling unit(s), those units shall not be counted as existing unit(s).
B. 
A stock cooperative which has received final approval from the California Department of Real Estate prior to the adoption of the ordinance establishing this chapter shall not be subject to this chapter.
(Ord. 1315 § 4(b))
A. 
The secretary of the planning commission shall issue condominium conversion permits when he or she has determined that:
1. 
The applicant has complied with all applicable city or state regulations in effect at the time the condominium conversion was approved; and
2. 
The applicant has complied with the conditions of approval.
B. 
Once issued, the condominium permit can be revoked only because of the failure of the applicant or his/her successors in interest to comply with the conditions of approval.
C. 
A permit shall expire if the tentative subdivision map approval expires. For stock cooperatives, a permit shall expire in the same period of time as projects requiring a tentative map.
(Ord. 1315 § 5)
A. 
Compliance Required. No existing building shall be approved for conversion to a condominium project unless it meets the standards set forth in this chapter.
B. 
Uniform Housing Code. All residential buildings shall, on the date of conversion, be in compliance with the minimum standards of the Uniform Housing Code as adopted by the city and those of the state.
C. 
Uniform Building Code. All buildings shall, on the date of conversion, be in compliance with the exit and occupancy requirements and the height and area requirements for the type of construction and occupancy involved as outlined in the Uniform Building Code as adopted by the city.
D. 
Zoning Ordinance and General Plan. All buildings sought to be converted are, on the date of conversion, in all respects in compliance with the Zoning Ordinance and the goals and policies of the general plan, or legally nonconforming therewith.
E. 
Subdivision Regulations. All condominium projects and community apartments, differentiated from stock cooperatives, shall be subject to all applicable provisions of the Subdivision Map Act and Title 16 of this Code.
F. 
Certificate of Occupancy. Once a building permit has been issued, a building may not be converted unless the certificate of occupancy for the building was issued more than 5 years prior to the date the owner files with the city an application for the approval of a tentative condominium subdivision map.
(Ord. 1315 § 6)
A. 
Conformance Required. To achieve the purpose of this chapter, the planning commission, prior to the date of conversion, shall require that all condominium conversions conform to the Oroville Municipal Code in effect at the time of approval except as otherwise provided in this chapter. The planning commission, prior to the date of conversion, shall require conformance with the standards of this chapter in approving an application for conversion.
B. 
Unit Size. The enclosed living or habitable area of each unit shall be not less than 600 square feet, unless the planning commission determines at the time of approval that other project amenities compensate for the minimum required enclosed area. Compensating amenities may include, but are not limited to, the following:
1. 
Private enclosed open spaces;
2. 
Enclosed developed facilities within the common areas;
3. 
Covenants, conditions and restrictions restricting density;
4. 
Compatibility of the density of the total project in relation to the project's amenities and surrounding neighborhoods.
C. 
Fire Prevention.
1. 
Smoke Detectors. Each living unit shall be provided with approved detectors of products of combustion other than heat, conforming to the latest Uniform Building Code standards, mounted on the ceiling or wall at a point centrally located in the corridor or area giving access to rooms used for sleeping purposes, and as approved by the city fire department.
2. 
Maintenance of Fire Protection Systems. All on-site fire hydrants, fire alarm systems, portable fire extinguishers and other fire protective appliances shall be retained in an operable condition at all times, maintained by the homeowner's association and delineated in the covenants, conditions and restrictions.
D. 
Sound Transmissions. Wall and floor/ceiling assemblies shall conform to Title 25, California Administrative Code, Section 1092, or its successor; or permanent mechanical equipment, including domestic appliances, which is determined by the code enforcement officer to be a potential source of vibration or noise, shall be shock-mounted, isolated from the floor and ceiling, or otherwise installed in a manner approved by the code enforcement officer to lessen the transmission of vibration and noise. Floor covering may only be replaced by another floor covering that provides the same or greater insulation. The requirements of this section shall not apply to a unit in a building with no other unit(s).
E. 
Utility Metering.
1. 
The consumption of gas and electricity within each unit shall be separately metered so that the unit owner can be separately billed for each utility. A water shut-off valve shall be provided for each unit or for each plumbing fixture. Each unit shall have access to its own meter(s) and heater(s) which shall not require entry through another unit.
2. 
Each unit shall have its own panel, or access thereto, for all electrical circuits which serve the unit.
F. 
Private Storage Space. Each unit shall have at least 200 cubic feet of enclosed, weatherproofed and lockable private storage space in addition to guest, linen, pantry and closets customarily provided. Such space shall be for the sole use of the unit owner. Such space may be provided in any location as approved by the planning commission at the time of approval, but shall not be divided into 2 or more locations. In such cases where the applicant can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the planning commission.
G. 
Laundry Facilities. A laundry area shall be provided in each unit; or if common laundry areas are provided, such facilities shall consist of not less than one automatic washer and dryer for each 5 units or fraction thereof. In such cases where the applicant can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the planning commission.
H. 
Condition of Equipment and Appliances. The applicant shall provide written certification to the buyer of each unit, on the initial sale after conversion, that any dishwashers, garbage disposals, stoves, refrigerators, hot-water tanks and air-conditioners that are provided are in working condition as of the close of escrow. At such time as the homeowner's association takes over management of the development, the applicant shall provide written certification to the association that the pool and pool equipment and any appliances and mechanical equipment to be owned in common by the association are in working condition.
I. 
Public Easements. The applicant shall make provisions for the dedication of land or easements for street widening, public access or other public purpose in connection with the project where necessary and in accordance with established planned improvements.
J. 
Underground Utilities. The applicant shall waive the right, through deed restriction, to protest the formation of an underground utility district.
K. 
Refurbishing and Restoration. All main buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, landscaped areas, irrigation systems and additional elements as required by the various city departments shall be refurbished and restored as necessary to achieve high quality appearance and safety.
L. 
Parking Standards. The off-street parking requirements for a conversion project shall conform to the provisions of Section 17.12.070.
M. 
Physical Elements. Any physical element identified in the physical element report as having a useful life of less than 2 years shall be replaced.
N. 
Landscaping. All landscaping meets the requirements of the Zoning Ordinance, all living plants are in good condition and all irrigation systems are operable.
(Ord. 1315 § 7; Ord. 1750 § 4)
A. 
Development Plan—Physical Elements Report. In addition to such other application requirements as the planning commission may deem necessary and those requirements as set forth in Section 15.72.080, no application for a condominium conversion project shall be accepted for any purpose unless the application includes the following:
1. 
A development plan of the project including:
a. 
The location, height, gross floor area and proposed uses for each existing structure to remain and for each proposed new structure;
b. 
The location, use and type of surfacing for all open storage areas;
c. 
The location and type of surfacing for all driveways, pedestrian ways, vehicle parking areas and curb cuts;
d. 
The location, height and type of materials for all walls or fences;
e. 
The location of all landscaped areas, the type of landscaping, and a statement specifying the method by which the landscaped areas shall be maintained;
f. 
The location and description of all recreational facilities and a statement specifying the method of maintenance thereof;
g. 
The location and size of the parking facilities to be used in conjunction with each condominium unit;
h. 
The location, type and size of all drainage pipes and structures depicted or described to the nearest public drain or watercourse;
i. 
The location and type of the nearest fire hydrants;
j. 
The location, type and size of all on-site and adjacent street overhead utility lines;
k. 
A lighting plan of the project;
l. 
Existing and proposed exterior elevations;
m. 
The location of, and provisions for, any unique natural or vegetative site features.
2. 
A physical elements report which shall include, but not be limited to:
a. 
A report detailing the condition and estimating the remaining useful life of each element of the project proposed for conversion: roofs, foundations, exterior paint, paved surfaces, mechanical systems, electrical systems, plumbing systems, including sewage systems, swimming pools, sprinkler systems for landscaping, utility delivery systems, central or community heating and air-conditioning systems, fire protection systems, including automatic sprinkler systems, alarm systems, or standpipe systems, and structural elements. Such report shall be prepared by an appropriately licensed contractor or architect or by a registered civil engineer or structural engineer other than the owner. For any element whose useful life is less than 5 years, a replacement cost estimate shall be provided;
b. 
A structural pest control report. Such report shall be prepared by a licensed structural pest control operator pursuant to Section 8516 of the Business and Professions Code;
c. 
A building history report including the following:
i. 
The date of construction of all elements of the project,
ii. 
A statement of the major uses of the project since construction,
iii. 
The date and description of each major repair or renovation of any structure or structural element since the date of construction. For the purposes of this subsection, a "major repair" means any repair for which an expenditure of more than $1,000.00 was made,
iv. 
Statement regarding current ownership of all improvements and underlying land,
v. 
Failure to provide information required by paragraphs i through iv, inclusive, shall be accompanied by an affidavit, given under penalty of perjury, setting forth reasonable efforts undertaken to discover such information and reasons why the information cannot be obtained.
B. 
Statement of Unique Provisions. A statement of any unique provisions of the proposed covenants, conditions and restrictions which would be applied on behalf of any and all owners of condominium units within the project shall be submitted. With regard to stock cooperatives, this submission shall consist of a summary of proposed management, occupancy and maintenance policies on forms approved by the city attorney.
C. 
Characteristics of Project.
1. 
Specific information concerning the characteristics of the project shall be submitted, including, but not limited to, the following:
a. 
Square footage and number of rooms in each unit;
b. 
Rental rate history for each type unit for the previous 5 years;
c. 
Monthly vacancy rate for each month during the preceding 2 years;
d. 
Makeup of existing tenant households, including family size, length of residence, age of tenants and whether receiving federal or state rent subsidies;
e. 
Proposed sale price of units;
f. 
Proposed homeowner's association fee; financing available; and
g. 
Names and addresses of all tenants.
2. 
When the subdivider can demonstrate that such information is not available, this requirement may be modified by the planning commission.
D. 
Evidence of Notification to Convert. The subdivider shall submit evidence that a certified letter of notification of intent to convert was sent to each tenant for whom a signed copy of the notice is not submitted.
E. 
Information Requested by Planning Commission. Any other information which, in the opinion of the planning commission will assist in determining whether the proposed project will be consistent with the purposes of this chapter, shall be submitted.
F. 
Acceptance of Reports. The final form of the physical elements report and other documents shall be approved by the planning commission. The reports in their acceptable form shall remain on file with the planning department for review by any interested person. The report shall be referenced in the subdivision report to the planning commission.
G. 
Copy to Buyers. The original owner shall provide each purchaser with a copy of all reports (in their final, acceptable form), along with the Department of Real Estate White Report, except the information required in subsections C and D of this section, prior to the purchaser completing an escrow agreement or other contract to purchase a unit in the project, and the developer shall give the purchaser sufficient time to review the reports. Copies of the reports shall be made available at all times at the sales office and shall be posted in various locations, as approved by the city, at the project site.
H. 
Hearing. Prior to approval, the planning commission shall hold a hearing. Notice of the hearing shall be mailed, at least 10 days prior to the hearing, to tenants of the proposed conversion, and posted on the property.
(Ord. 1315 §§ 8—12)
A. 
Notice of Intent to Convert. A notice of intent to convert to condominium units shall be delivered to each tenant's dwelling unit. Evidence of delivery shall be submitted with the application for conversion. The form of the notice shall be as approved by the planning department and shall contain not less than the following:
1. 
Name and address of current owner;
2. 
Name and address of proposed subdivider;
3. 
Approximate date on which the tentative map is proposed to be filed;
4. 
Approximate date on which the final map is proposed to be filed;
5. 
Approximate date on which the unit is to be vacated by nonpurchasing tenants;
6. 
Tenant's right to purchase;
7. 
Tenant's right of notification to vacate;
8. 
Tenant's right of termination of lease;
9. 
Statement of limitations on rent increase;
10. 
Provision for special cases;
11. 
Provision for moving expenses;
12. 
Other information as may be deemed necessary by the planning department.
B. 
Tenant's Right to Purchase. As provided in Government Code Section 66427.1(b), any present tenant or tenants of any unit shall be given a nontransferable right of first refusal to purchase the unit occupied at a price no greater than the price offered to the general public. The right of first refusal shall extend for at least 60 days from the date of issuance of the subdivision public report or commencement of sales, whichever date is later.
C. 
Vacation of Units. Each nonpurchasing tenant, not in default under the obligations of the rental agreement or lease under which he or she occupies his or her unit, shall have not less than 180 days from the date of receipt of notification from the owner of his or her intent to convert, or from the filing date of the final subdivision map, whichever date is later, to find substitute housing and to relocate.
D. 
Increase in Rents. From the date of approval of the tentative subdivision map until the date of conversion, no tenant's rent shall be increased: (1) more frequently than once every 6 months, and (2) at a rate greater than the rate of increase in the Consumer Price Index, on an annualized basis, for the same period. This limitation shall not apply if rent increases are provided for in leases or contracts in existence prior to the filing date of the tentative map.
E. 
Moving Expenses. The subdivider shall provide moving expenses of one times the monthly rent to any tenant who relocates from the building to be converted after approval of the condominium conversion by the city, except when the tenant has given notice of his or her intent to move prior to receipt of notification from the subdivider of his or her intent to convert.
F. 
Notice to New Tenants. After submittal of the application to convert, any prospective tenants shall be notified in writing of the intent to convert prior to leasing or renting any unit and shall not be subject to the provisions of subsections D and E of this section.
(Ord. 1315 § 13)
A. 
Effect of Proposed Conversion on the City's Low-Income and Moderate-Income Housing Supply. In reviewing requests for conversion of existing apartments to condominiums, the planning commission shall consider the following:
1. 
Whether or not the amount and impact of the displacement of tenants, if the conversion is approved, would be detrimental to the health, safety or general welfare of the community.
2. 
The role that the apartment structure plays in the existing housing market. Particular emphasis will be placed on the evaluation of rental structures to determine if the existing apartment complex is serving low-income and moderate-income households. Criteria to determine low-income and moderate-income households used by the federal and state governments will be used in the evaluation. Along with other factors, the city will consider the following:
a. 
The number of families on current waiting lists for assisted rental housing programs that operate in Oroville, such as the Section 8, Section 23, and Section 236 programs, and the most current Housing Assistance Plan (HAP) of the city and any successor programs;
b. 
The probable income range of tenants living in existing apartments based on factual information supplied by the applicant which can be adequately documented, or the assumption that households pay between one-fourth and one-half of their income for housing. That income range will be compared with existing income limits for said Section 8 program to determine whether potential displaced tenants can be categorized as low-income and moderate-income.
3. 
The need and demand and community benefits which are derived from the provision of lower cost home ownership opportunities which opportunities are increased by the conversion of apartments to condominiums.
4. 
If the planning commission determines that vacancies in the project have been increased for the purpose of preparing the project for conversion, the conversion shall be disapproved. In evaluation of the current vacancy rate under this subsection, the increase in rental rates for each unit over the preceding 5 years and the average monthly vacancy rate for the project over the preceding 2 years shall be considered.
B. 
Findings. The planning commission shall not approve an application for condominium conversion unless the planning commission finds that:
1. 
All provisions of this chapter are met and the project will not be detrimental to the health, safety and general welfare of the community;
2. 
The proposed conversion is consistent with the general plan of the city or legally nonconforming with the density requirements of its land use element;
3. 
The proposed conversion will conform to the Oroville Municipal Code in effect at the time of the approval, except as otherwise provided in this chapter;
4. 
The overall design and physical condition of the conversion will result in a project which is aesthetically attractive, safe and of quality construction;
5. 
The proposed conversion will not displace a significant percentage of low-income and moderate-income or senior citizen tenants, tenants with children, and delete a significant number of low-income and moderate-income rental units from the city's housing stock at a time when no equivalent housing is readily available in the Oroville area;
6. 
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. In making this finding, consideration shall be given to:
a. 
Rent increases at a rate greater than the rate of increase in the Consumer Price Index unless provided for in leases or contracts in existence prior to the submittal of the first application for city review, or
b. 
Any other action by the applicant which is taken against tenants to coerce them to refrain from opposing the project. An agreement with tenants which provides for benefits to the tenants after the approval shall not be considered a coercive or retaliatory action;
7. 
That the requirements of Section 15.72.100 have been met.
(Ord. 1315 §§ 14, 15)
A. 
Intent and Definition. It is the intent of this chapter to limit the number of units to be converted if a rental housing shortage exists. The existence of rental housing shortage shall be determined by the planning commission, based upon reliable information verified by the planning department. A rental housing shortage shall exist if the vacancy factor for multiple-family dwelling units renting in the range of $50.00 per month less, to $50.00 per month more, than the rent of the units proposed for conversion is less than 4% for the 6-month period preceding the determination.
B. 
Maximum Number of Conversions. In the event rental housing shortages exist, the maximum number of conversions to be approved during the subsequent 12-month period shall not exceed the lesser of:
1. 
Fifty units; or
2. 
The number of new dwelling units in two-family and multiple-family rental projects issued occupancy permits during the 12 months prior to the determination, minus the number of dwelling units in two-family and multiple-family rental units to be destroyed pursuant to permits issued in that same 12-month period.
C. 
Processing of Applications. If a rental shortage exists, applications shall be processed in accordance with procedures established by resolution of the city council setting forth the manner and method of prioritizing applications for conversions.
D. 
Exceptions.
1. 
This section shall not be applicable to:
a. 
Projects of 3 or less units; provided, however, that the number of units in the projects shall be considered as approved for conversion for purposes of subsection B of this section;
b. 
Projects involving conversions to a non or limited equity cooperative for low-income to moderate-income residents.
2. 
For purposes of this section, "a non or limited equity cooperative for low-income to moderate-income residents" shall be a stock cooperative which meets all of the following:
a. 
Not less than 75% of the dwelling units will be occupied by persons of low-income and moderate-income.
b. 
The stock cooperative's articles of incorporation and/or bylaws requires the purchase and sale of the stock or membership interest on resident/owners who cease to be residents at no more than a transfer value determined as provided in the articles or bylaws and which shall not exceed the aggregate of the following:
i. 
The consideration paid for the membership or shares by the first occupant of the unit involved as shown on the books of the corporation;
ii. 
The value as determined by the board of directors of the corporation of any improvements installed at the expense of the member with the prior approval of the board of directors;
iii. 
Accumulated interest or an inflation allowance at the rate which may be used on a cost of living index, an income index, or market interest index. Any increment pursuant to this paragraph shall not exceed a 10% annual increase on the consideration paid for the membership or share by the first occupant of the unit involved.
c. 
The articles of incorporation or bylaws require the board of directors to sell the stock or membership purchased as provided in paragraph (2)(b) of this subsection to new member occupant or resident shareholders at a price which does not exceed the "transfer value" paid for the unit.
d. 
The corporate equity, which is defined as the excess of the current fair market value of the corporation's real property over the sum of the current transfer value of all shares or membership interests reduced by the principal balance of outstanding encumbrances upon the corporate real property as a whole paid shall be applied as follows:
i. 
So long as any such encumbrance remains outstanding, the corporate equity shall not be used for distribution to members, but only for the following purposes and only to the extent authorized by the board subject to the provisions and limitations of the articles of incorporation and bylaws:
(A) 
For the benefit of the corporation or the improvement of the real property;
(B) 
For expansion of the corporation by acquisition of additional real property;
(C) 
For public benefit or charitable purposes.
ii. 
Upon the sale of the property, dissolution of the corporation or occurrence of a condition requiring termination of the trust or reversion of title to the real property, the corporate equity is required by the articles, bylaws or trusts or title conditions to be paid out or title to the property transferred subject to outstanding encumbrances and liens for the transfer of value of membership interest or shares for use for a public or charitable purpose subject to the approval of the city council.
e. 
Amendment of the bylaws and articles of incorporation requires the affirmative vote of at least two-thirds of the resident members or shareholders.
E. 
Notice and Hearing Requirements—Council Authority. The city council shall establish by resolution the notice and hearing requirements and any fees related to a condominium conversion permit.
(Ord. 1315 §§ 16, 17)