The purpose and intent of this chapter is to accomplish the following:
A. 
To provide consumer protection for prospective purchasers and existing tenants and to protect the availability of rental units within the City of Mill Valley.
B. 
To insure that rental apartments being converted to condominiums meet reasonable physical standards as required by all applicable laws, ordinances and regulations.
C. 
To maintain the availability of an adequate supply of rental housing.
D. 
To insure that rental apartments being converted to condominiums shall conform to California Administrative Code, Title 24: Energy Conservation Standards for New Residential Buildings and Non-Residential Buildings.
E. 
To ensure that tenants in rental apartments containing four or fewer units that are being converted to condominiums are provided with the same notices and protections afforded tenants in buildings containing five or more units that are being converted to condominiums.
F. 
To promote housing stability and security within the City of Mill Valley.
(Ord. 1265 § 2, November 3, 2014)
For the purposes of this chapter, the following words and phrases shall be interpreted as set forth in this section.
"Condominium"
means an estate in real property, the nature of which is defined in Section 4125 of the Civil Code, and the duration of which is as set forth in Section 783 of the Civil Code.
"Condominium conversion"
means the conversion of the ownership of the units in a residential housing project consisting of units that are or were previously occupied as rental units from a single ownership to an ownership in which the residential units may be sold individually, and may include, but is not limited to the conversion of rental units into a condominium project (as defined herein), a community apartment project (as defined in Section 11004 of the Business and Professions Code), or a stock cooperative (as defined in Section 11003.2 of the Business and Professions Code).
"Condominium project"
means a real property development consisting of condominiums.
(Ord. 1265 § 2, November 3, 2014)
A conditional use permit is required for any condominium conversion to which this chapter applies. The provisions, procedures, considerations, findings and requirements set forth in this chapter and in Chapter 20.64 Use Permits and Variances, shall govern the issuance of a conditional use permit for any condominium conversion.
(Ord. 1265 § 2, November 3, 2014)
A conditional use permit authorizing a condominium conversion shall not be issued unless, in addition to the findings set forth in Section 20.64.040, the City also finds, on the basis of substantial written evidence, that:
A. 
The proposed conversion will not substantially affect the availability of rental housing in the community;
B. 
Replacement housing for displaced tenants is available within Mill Valley; and
C. 
The proposed conversion is consistent with the Mill Valley General Plan, and in particular, with the objectives, policies, and programs of the Housing Element of the General Plan designed to provide for the housing needs of all economic segments of the community, as well as with any and all applicable specific plans.
(Ord. 1265 § 2, November 3, 2014)
In addition to the filing requirements set forth in Chapter 20.64, an application for a condominium conversion conditional use permit must include:
A. 
A map showing the boundaries of all units for information purposes,
B. 
A report containing the following information regarding current tenants:
1. 
Length of occupancy;
2. 
Current rents, any utilities included in rent, date and amount of last rental increase; and
3. 
Expiration date of any current lease agreements.
C. 
A copy of the proposed declaration of restrictions required for the project, which document shall set forth the occupancy and management policies for the project and shall contain provisions satisfactory to the City regarding the following:
1. 
The inclusion of any conditions of approval ultimately adopted by the City, and a prohibition on amending any such conditions without written approval from the City.
2. 
Maintenance of all common areas and payment of all assessments and taxes.
3. 
Provision for the City to make any repairs or engage in any maintenance necessary to abate any nuisances, health or safety hazards and assess the owners of the condominium units for such repair or maintenance.
4. 
Provision that an individual owner cannot avoid liability for his or her prorated share of the expenses for the common area by renouncing rights in the common areas.
D. 
A report detailing the general condition of any improvements on the site, including the buildings, mechanical equipment, appliances, and parking facilities.
E. 
Proof of applicant's compliance with Section 20.59.090 below, requiring notice of intent to convert to current and prospective tenants.
F. 
A survey, bearing information collected within six weeks of submission of the application to the City, showing comparable rental housing within the municipal boundaries of Mill Valley. This survey is to be used to evaluate the impact of the conversion on tenants who will be displaced, per Section 20.59.050(A) above. The survey shall include identification of all rental housing in structures of two or more units within Mill Valley and shall include the number of units, categorized by bedroom count and rents charged, as well as vacancies by unit type.
(Ord. 1265 § 2, November 3, 2014)
Prior to any public hearing on an application for a condominium conversion conditional use permit, the Building/Zoning Code Inspector shall visit the site of the proposed condominium conversion and prepare a report on the general conditions of all buildings, listing all code violations. Any and all such code violations shall be corrected to the satisfaction of the Building/Zoning Code Inspector prior to final map approval.
(Ord. 1265 § 2, November 3, 2014)
In addition to the requirements set forth in Chapter 20.64, a conditional use permit authorizing condominium conversion shall not be approved without the following conditions:
A. 
The condominium project shall conform to all applicable laws, ordinances, and regulations for new buildings including, but not limited to, those pertaining to housing, building, fire, subdivision, and zoning. In addition, the noise transfer standards for new buildings as contained in the latest Uniform Building Code shall apply.
B. 
Each dwelling unit shall have space and connections for the installation and operation of laundry equipment for the private use of the occupants of that unit.
C. 
Each dwelling unit shall be provided with enclosed and secure personal storage space to be located onsite. The amount of space shall be equal to one cubic foot of storage area for each three feet of gross floor area.
D. 
The condominium conversion project shall comply with the inclusionary housing provisions set forth in Chapter 20.80 of this Code.
E. 
Existing tenants as of the date the application for a condominium conversion is filed with the City who: (1) are "lower income," as that term is defined in California Health and Safety Code Section 50079.5(2); or are 68 years of age or older; or (3) are "disabled" as that term is defined in California Civil Code Section 54, must be offered lifetime leases on reasonable terms to be approved by the City of Mill Valley. Annual rent increases for tenants awarded lifetime leases per this subsection may not exceed a rate equal to one-half the annual Bay Area inflation rate as determined by the Consumer Price Index for all Urban Consumers for the San Francisco-Oakland Metropolitan area—All Items.
(Ord. 1265 § 2, November 3, 2014)
A. 
At least 60 days prior to submitting an application for a condominium conversion conditional use permit to the City, the applicant must provide notice of intent to convert to each tenant in the project proposed for condominium conversion.
B. 
In addition, the applicant must provide all prospective tenants of a project for which a notice of intent to convert has been issued to tenants with a copy of the notice of intent to convert prior to the prospective tenant's execution of a lease. If timely provided with such notice, prospective tenants shall not be entitled to tenant relocation assistance as otherwise required under Section 20.59.120.
C. 
If the applicant is applying for a tentative map concurrently with a condominium conversion conditional use permit, the notice required by this section may be combined with the notice required by Government Code Section 66427.1. Any notice issued under this section must state that if the condominium conversion project is approved, tenants may be required to vacate the premises. This notice is only a warning of a possible conversion and not a notice to vacate the premises.
(Ord. 1265 § 2, November 3, 2014)
A. 
At least 10 days prior to the submission of an application to the Bureau of Real Estate for a public report, the applicant must provide notice to each tenant in the project that: (1) the application for a public report will be submitted; (2) upon the issuance of the public report the tenant will be granted an exclusive right to contract for the purchase of the unit occupied by the tenant upon the same terms and conditions that such unit will be initially offered to the general public or on terms more favorable to the tenant; (3) the period for each tenant's right to purchase begins with the issuance of the final public report; and (4) the report will be available on request.
B. 
The notice required under subsection A above must state that the condominium conversion project will be subject to conditions, covenants, and restrictions that establish a homeowners' association to manage the project, that may restrict how the property is used, and that impose certain financial obligations on the owners of units within the project, such as the payment of monthly homeowners' association dues.
C. 
In addition, within five days of the issuance of the public report, the applicant must notify each tenant by mail and in writing that the public report has been issued and must in writing grant the tenant the right to purchase the unit as provided in this section. The exclusive right to purchase shall commence on the date the subdivision public report is issued, as provided in Section 11018.2 of the Business and Professions Code, and shall run for a period of not less than 90 days, unless the tenant gives prior written notice of his or her intention not to exercise the right. The form of notice required in Government Code Section 66452.20(b) will satisfy the requirements of this subsection C.
(Ord. 1265 § 2, November 3, 2014)
A. 
Applicant must notify each tenant in writing within 10 days of the City's approval of a parcel map or final map for the proposed condominium conversion.
B. 
Following approval of a tentative map or parcel map for condominium conversion, applicant shall provide each tenant with a written Notice of Intention to Convert prior to termination of tenancy due to condominium conversion. The form of notice required in Government Code Section 66452.19 will satisfy the requirements of this subsection B.
C. 
Applicant must provide notice of termination of tenancy to all tenants at least 180 days prior to the date on which tenants must vacate the property.
(Ord. 1265 § 2, November 3, 2014)
The applicant must provide the following services to any person whose tenancy would end as a result of approval of a requested condominium conversion:
A. 
Relocation Assistance. Except as set forth in Section 20.59.090(B) above, all tenant households whose rental units are being converted to condominiums are entitled to financial relocation assistance in the amount of three month's rent based on HUD's annual Fair Market Rent for apartment size for Marin County. The relocation payment shall be a one-time payment, paid no later than the day on which the applicant gives notice to the tenant to vacate the premises. This money may be used as down payment assistance to purchase the unit when it is converted. Tenants will be provided with the approximate amount of relocation assistance as part of the distribution of the handout identified in Section 20.59.090(A).
B. 
Leasehold Rights. Tenants shall receive the following rights during the 180 day termination of tenancy period caused by the proposed condominium conversion.
1. 
Rent increases shall not be permitted.
2. 
Tenants may provide a 30-day notice to terminate their lease or rental agreement without penalty.
(Ord. 1265 § 2, November 3, 2014)
The City shall provide the following notices:
A. 
Notice of public hearings on proposed condominium conversions shall be provided to tenants of such projects in accordance with Government Code Section 66451.3, in addition to any other required notice requirements.
B. 
Any report or recommendation on a tentative or parcel map for a condominium conversion shall be provided to the applicant and to each tenant of the proposed condominium conversion in accordance with Government Code Section 66452.3, in addition to any other required notice requirements.
(Ord. 1265 § 2, November 3, 2014)
Nothing contained in this chapter shall be interpreted as authorizing a condominium, condominium conversion, or condominium project in any zoning district where such use would be otherwise prohibited; nor shall anything contained in this chapter be interpreted as waiving compliance with the provisions of Title 21 of this Code or any other applicable statutes, ordinances, or regulations.
(Ord. 1265 § 2, November 3, 2014)