It is the purpose of this chapter to establish regulations and criteria for the conversion of existing multiple-family rental housing to condominiums, community apartments, and stock cooperative apartments in a manner which is consistent with the following objectives:
A. 
To reduce the impact of conversions on residents in the rental housing who may be required to relocate due to the conversion of rental housing to community housing;
B. 
To assure that the purchasers of converted housing have been properly informed as to the physical condition of the structure which is offered for purchase;
C. 
To insure that converted housing is safe, of quality appearance, and consistent with the goals of the general plan.
(Ord. 438 § 1, 2016)
The provisions of this chapter shall apply to the conversion of an existing structure, that has received final occupancy clearance, to community housing. "Community housing" shall include the following types of residential subdivisions:
A. 
Any condominium project containing two or more condominium dwelling units;
B. 
Any community apartment project containing two or more apartment dwelling units;
C. 
Any stock cooperative having or intended to have two or more shareholders.
(Ord. 438 § 1, 2016)
For the purposes of this chapter, the following definitions shall apply:
"Apartment"
means as defined in the California Building Code.
"Community housing"
means a condominium project, a community apartment project, or a stock cooperative.
"Community apartment project"
means an undivided interest in the land together with the right of exclusive occupancy of any apartment located thereon.
"Condominium"
means an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property together with a separate interest in space in a residential building on such real property, such as an apartment. A condominium may include, in addition, a separate interest in other portions of such real property.
Such estate may, with respect to the duration of its enjoyment, be either (1) an estate of inheritance or perpetual estate; (2) an estate for life; or (3) an estate for years, such as a leasehold or a subleasehold.
"Condominium project"
means the entire parcel of real property divided, or to be divided, into condominiums, including all structures thereon.
"Homeowners association"
means the association of (1) owners of individual units within a condominium; (2) the owners of the undivided interest in a community apartment project; and (3) the shareholders in a stock cooperative each of which shall assume full responsibility for the maintenance of common areas and all portions of buildings not owned or exclusively occupied by a partner or shareholder.
"Project"
means the entire parcel of real property, including all structures thereon, all or part of which is rented or leased for residential purposes and is proposed to be divided, as land or air space, into two or more lots, parcels, units, or rights of exclusive occupancy.
"Stock cooperative"
means a corporation which is formed or availed of primarily for the purpose of holding title to, either in fee simple or for a term of years, improved real property, if all or substantially all of the shareholders of such corporation receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation, which right of occupancy is transferable only concurrently with the transfer of the share or shares of stock in the corporation held by the person having such right of occupancy.
(Ord. 438 § 1, 2016)
Prior to the approval and recordation of a final map or parcel map for a community housing conversion, the proposed project shall be in compliance with the following:
A. 
No community housing conversion is permissible which is inconsistent with the land use designation, goals and policies of the General Plan.
B. 
Except as noted herein and unless determined infeasible or impractical by either the building official or deputy fire chief, existing buildings involving community housing conversions shall comply with current California Building and Fire Codes.
C. 
Except as noted herein, community housing conversions shall comply with applicable standards of Title 16 (Subdivision Ordinance), Title 17 (Zoning Ordinance), Chapter 18.24 (Community Housing Conversion), and Chapter 18.44 (Water Efficient Landscape Regulations).
D. 
Subject to the provisions of the Subdivision Map Act, approval of a tentative map and final map, subject to the regulations set forth in Chapter 16.12, shall be required for community housing conversions converting five or more residential dwelling units and approval of a tentative parcel map and parcel map, subject to the regulations set forth in Chapter 16.16, shall be required for community housing conversions converting four or less residential dwelling units. Hearing and noticing requirements shall be per Title 16 and in accordance with the Subdivision Map Act.
E. 
Waivers, modifications, or deviations of development standards are permissible provided the community housing conversion includes equivalent benefits referenced in Section 17.28.030 (Planned development permit).
F. 
Final approval of a building and landscape permit shall be required for all improvements on the subject property where applicable.
G. 
All applicable conditions of approval shall be complied with such as installation of street improvements and recording of conditions, covenants, and restrictions. Applicable street dedication and improvements shall be required in accordance with the General Plan Circulation Element and community housing conversions shall not be exempt from requirements within Chapter 12.10.
(Ord. 438 § 1, 2016)
In addition to the requirements set forth in Section 18.24.040, the following standards shall be required for community housing conversions.
A. 
Utility Metering. Gas and electricity consumption in each dwelling unit shall be separately metered. Each unit shall have its own disconnect device for all electrical circuits which serve the unit. Water shut-off and gas shut-off valves shall be provided for each unit. If water consumption in each dwelling unit is not separately metered, then a plan for equitable sharing of communal water metering shall be developed prior to parcel map or final map approval and included in the covenants, conditions and restrictions.
B. 
Noise Mitigation and Energy Conservation.
1. 
All window assemblies shall conform to current California Building Codes, interior noise standards of Chapter 9.24, and the Noise Element of the General Plan and shall be dual paned within residential dwelling units.
2. 
Energy conservation insulation shall be installed in all heated or cooled buildings, including common ownership structures used for assembly purposes, in accordance with current California Building Codes.
C. 
Fire Protection.
1. 
Smoke Detectors. Each dwelling unit shall be provided with approved detectors of products of combustion which meet the requirements of the California Building and Fire Codes and which shall be located as required by the Department of Fire and Building Safety.
2. 
Fire Sprinkler System. All buildings shall have a fire sprinkler system that meets the requirements of the current California Fire Code.
3. 
Maintenance of Fire Protection Systems. All on-site fire hydrants, alarms, fire extinguishers and other fire-protective appliances shall be maintained in an operative condition at all times and maintenance of such appliances shall be the responsibility of the homeowner's association. This responsibility shall be clearly stated in the covenants, conditions, and restrictions.
4. 
Building Construction Requirements. All dwelling unit one-hour fire-resistive separation walls, floors and ceilings, attic draft stops, bedroom egress windows, ground fault circuit interrupters, external combustion air venting, and water heater strapping shall be provided in compliance with the applicable provisions of the California Building Code and Fire Code. For any building of sixteen units or more, the building shall have a supervised alarm system.
5. 
Fire Apparatus Turnarounds and Access Drives. Fire apparatus turnarounds and access drives shall be enhanced to the satisfaction of the deputy fire chief, but compliance with current access and turnaround requirements is not required except as provided in the California Fire Code as it relates to upgrades to existing built sites.
D. 
Private Storage Space. Each dwelling unit shall have exclusive use of at least one hundred twenty-five cubic feet of enclosed weather-proofed, and lockable private storage space in addition to the linen, pantry and clothes closets customarily provided in a residential unit to the satisfaction of the development services director.
E. 
Laundry Facilities. A laundry area shall be provided in each dwelling unit or common laundry areas shall be provided. Such facilities shall consist of at least one automatic washer and dryer for each five units or fractions thereof.
F. 
Refurbishing and Restoration. All main and accessory buildings, fences, patio enclosures, carports, driveways, parking lots, sidewalks, irrigation systems, recreational facilities, and other elements shall be restored and refurbished as required by the development services director to achieve and maintain a high quality of safety and a quality of appearance comparable to that of similar structures built at the time of the application for the community housing conversion project.
G. 
Street Dedication and Improvements. Street dedication and improvements within public-right-of-way fronting the property shall be required in accordance with Chapter 12.10. Private street dedication and improvements shall be required as applicable to the satisfaction of the development services director.
H. 
Landscaping. Prior to parcel map or final map approval, all proposed landscaped areas shall be installed in accordance with an approved landscape and irrigation plan subject to provisions in Chapter 18.44 and Section 17.24.050(B).
I. 
Development Standards. Development regulations relating to off-street parking, minimum lot area, minimum lot width and depth, minimum yards, maximum building height, and minimum usable open space for the subject property shall be based on the applicable regulations in effect at the time the buildings being converted received its building permit.
J. 
Accessibility. Unless required otherwise, the terms and conditions of accessibility standards in effect at the time the buildings being converted received its building permit shall apply.
K. 
Trash Collection. A will-serve letter shall be provided from the trash collection provider. Appropriate trash and recycling receptacles shall be provided and enclosures shall comply with Section 17.24.050.
L. 
Drainage and Stormwater. The project shall comply with all applicable requirements established in Chapters 8.48 and 8.52, inclusive, related to urban pollution runoff controls. All drainage shall drain into landscape areas with appropriate erosion control prior to exiting the site. Conditions shall include necessary best management practices for high priority residential areas as required.
(Ord. 438 § 1, 2016)
Applications for the conversion of rental dwelling units to community housing will be accepted for review and processing when the application includes, but is not limited to, the following material:
A. 
Development plan packet including detailed site, lighting, street improvement, floor, elevation, landscape and irrigation plans to the satisfaction of the development services director.
B. 
Physical Elements Report. The physical elements report shall be approved by the building division and shall include, but not be limited to, the following:
1. 
A report detailing the condition and estimating the remaining useful life of each element of the project proposed for conversion or to remain: roofs, foundations (including a soils report showing soil stability), framing, insulation, attic draft stops, windows, exterior paint, paved surfaces, mechanical systems, electrical systems, natural gas piping and appliance venting, plumbing systems, including sewage systems, swimming pools, pool equipment (filter, pumps, chlorinator, etc.), dishwashers, garbage disposals, stoves, refrigerators, hot water tanks, air conditioners, heating units, irrigation systems, drainage systems, utility delivery systems, alarm systems, or standpipe systems, and structural elements. An inventory with product description and stock keeping unit identification and model numbers shall be provided where applicable. Such report shall be prepared by an appropriately licensed architect and/or by a registered civil or structural engineer as applicable. A certified home inspector may prepare portions of the physical elements report to the satisfaction of the development services director. An applicant may not prepare his or her own physical elements report. The physical elements report shall include a detailed evaluation of the existing physical elements, recommendations on their status (including any necessary repairs or replacement, either immediate or in the future) and a signed certification of the findings. For any element whose useful life is estimated to be less than five years, a replacement cost estimate shall be provided. The report shall identify any defective or unsafe elements and set forth the proposed corrective measures to be employed.
2. 
A structural pest control report to be prepared by a licensed structural pest control operator pursuant to Section 8516 of the Business and Professions Code.
3. 
A building history report to include the following:
a. 
The date of construction of all elements of the project.
b. 
A statement of the major uses of said project since construction.
c. 
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" shall mean any repair valued by the building official at more than one thousand dollars.
d. 
A statement regarding current ownership of all improvements, appliances, equipment and underlying land.
e. 
If unable to provide all information required by subsections (B)(3)(a) through (d) inclusive, the applicant shall submit an affidavit under the penalty of perjury, setting forth reasonable efforts to discover such information and reasons why said information cannot be obtained.
4. 
A statement of repairs and improvements to be made by the subdivider necessary to replace, refurbish and restore the improvements on the property to achieve a high degree of appearance and safety.
5. 
A geotechnical report prepared by a professional engineer analyzing known soil and geological conditions regarding soil deposits, rock formations, faults, groundwater, and landslides in the vicinity of the project and a statement regarding any known evidence of soil problems relating to the structures.
C. 
Organization Documents Report.
1. 
A summary of proposed management, occupancy, and maintenance policies.
2. 
A maintenance plan which clearly specifies methods and standards for performance of common responsibilities and maintenance for all common areas, including any common refuse collection responsibilities or assurances that the premises will be kept free from trash and debris, and the equipment and fees to be assessed for such purposes. The maintenance plan shall include the establishment of a contingency fund for major repairs and extraordinary expenses.
3. 
A copy of the Declaration of Conditions, Covenants, and Restrictions. The Declaration shall name the city of Lemon Grove as a party to said Declaration and shall authorize, but not require, the city to enforce the terms and conditions of said Declaration in the same manner as any owner subject to said Declaration.
D. 
A Provision Regarding Owner Responsibilities and Liabilities. This provision shall state that an individual owner cannot avoid liability for his prorated share of the expense for the maintenance of the common area by renouncing his or her rights to said common area.
E. 
Additional Specific Information.
1. 
Rental rate history for each type of dwelling unit for previous five years.
2. 
Monthly vacancy rate for each month during preceding two years.
3. 
A complete list of the number of tenants and tenant households in the project, including the following information:
a. 
The family size of households, including a breakdown of households with children five years and younger; and between five and eighteen years;
b. 
The length of residency;
c. 
The age of tenants; and
d. 
The designations of low and moderate income households and whether any are receiving rent subsidies.
When the applicant can demonstrate that information is not available, this requirement may be modified by the development services director.
4. 
The proposed price range of the dwelling units.
5. 
The proposed homeowner's association monthly fee.
6. 
A statement of intent as to the types of financing programs to be made available, with lenders specified, including incentive programs for existing residents.
7. 
Names and addresses of all tenants.
8. 
If the applicant is unable to provide all information required by subsections (E)(1) through (7) inclusive, the applicant shall submit an affidavit, under penalty of perjury, setting forth reasonable efforts to provide such information and reasons why said information cannot be obtained.
F. 
Subdivision Public Report Application. The applicant shall submit a copy of the proposed application to the Department of Real Estate of the State of California for Subdivision Public Report, as required in Section 11018 of the Business and Professions Code. This application shall be submitted to the city on the current forms required by the Department of Real Estate and need not contain exhibits regarding the availability of utility services or the organizational documents of the project.
G. 
Evidence of Notice to Convert. At least sixty days prior to filing an application for a community housing conversion and at least one hundred twenty days prior to termination of tenancy due to conversion or proposed conversion, a notice of intent to convert shall be delivered to each tenant's dwelling unit. Evidence of the receipt of such notice shall be submitted with the community housing conversion application. The aforementioned evidence shall include, but may not be limited to, a copy of the notice of intent to convert, with original signature by the tenant(s), to the satisfaction of the development services director. In the event the tenant(s) does not possess the ability to read and understand English, a professional translator qualified to read and understand both English and the language most familiar to the tenant(s) may translate the notice for the tenant(s) to the satisfaction of the development services director. The form of the notice shall be in the form outlined by Section 66452.8 of the California Government Code and shall contain not less than the following:
1. 
Name and address of current owner.
2. 
Name and address of proposed subdivider.
3. 
Name, address and telephone number of the city employee assigned to the community housing conversion project.
4. 
Approximate date on which the application is proposed to be filed.
5. 
Approximate date on which the final map or parcel map is to be filed.
6. 
Approximate date on which the dwelling unit is to be vacated by non-purchasing tenants.
7. 
Tenant's right to purchase.
8. 
Tenant's right of notification to vacate.
9. 
Tenant's right of termination of lease.
10. 
Provision of tenant relocation assistance.
11. 
Anticipated price range of the units.
12. 
Proposed homeowner's association monthly fees.
13. 
Statement of the types of financing programs to be made available, including any incentive programs for existing residents.
14. 
A copy of the city's community housing conversion regulations.
15. 
Other information as deemed necessary by the development services director.
H. 
Tentative Map and/or Tentative Parcel Map. A tentative map, subject to the regulations set forth in Chapter 16.12, shall be required for community housing conversions converting five or more residential dwelling units and a tentative parcel map, subject to the regulations set forth in Chapter 16.16, shall be required for community housing conversions converting four or less residential dwelling units.
I. 
Conditions of Approval. Other reasonable items and/or conditions of approval may be required that achieve the purpose of this chapter including, but not limited to, stormwater mitigation plans and/or drainage, noise studies, traffic, parking, and/or line of sight studies.
(Ord. 438 § 1, 2016)
A. 
Every prospective buyer shall be given a copy of all information required in Section 18.24.060(A) through (D).
B. 
Prior to the close of escrow on the initial sale of each converted dwelling unit, the applicant shall provide written certification to the buyer that dishwashers, garbage disposals, stoves, refrigerators, hot water tanks, and air conditioners that are provided are in good repair and working condition.
(Ord. 438 § 1, 2016)
Any required structural repair work or any required replacement or repair of other substandard physical elements shall be completed or funds for the completion of said work shall be bonded or otherwise guaranteed to the satisfaction of the development services director to assure completion of said work prior to recordation of the parcel map or final map.
(Ord. 438 § 1, 2016)
A. 
Tenant's Right to Purchase. As provided in the Government Code Section 66437.1(b), any tenant shall be given an exclusive right to contract for the purchase of his or her respective dwelling unit upon the same terms and conditions that such dwelling unit will be initially offered to the general public, preferably on terms more favorable to the tenant. The right shall run for a period of not less than ninety days from the issuance of the subdivision public report pursuant to Section 11018.2 of the Business and Professions Code, unless the tenant gives prior written notice of his or her intention not to exercise the right.
B. 
Vacation of Units. Each nonpurchasing tenant, not in default under the obligations of the rental agreement or lease under which the subject unit is occupied, shall have not less than one hundred and eighty days from the date of receipt of notification from the subdivider of his or her intent to convert, to find substitute housing and to relocate.
C. 
Tenant Relocation Assistance.
1. 
Each eligible tenant of a dwelling unit in an existing residential development being converted to a common interest subdivision shall be paid by the applicant the equivalent of one and one-half times monthly rent as relocation assistance. Each eligible tenant shall also receive a refund of their security deposit after appropriate deductions are made for damages done to the dwelling unit occupied that will not be renovated as part of the conversion process. The security deposit shall be paid at the end of the tenancy in the manner provided by law.
2. 
For the purpose of this section, the term, "eligible tenant," shall be defined as a tenant in good standing of the existing residential development at the time that the owner of the development gives notice to existing tenants of owner's intent to file a tentative map pursuant to Section 66452.9, as amended, of the Subdivision Map Act.
3. 
The payment of relocation assistance by the applicant shall occur on or before: (a) the date of termination of tenancy provided in the notice described in this subsection; or (b) the date that the eligible tenant vacates the dwelling unit, whichever shall first occur, but in either event without regard to the date that the conversion occurs.
4. 
No conversion shall be completed until such time that the applicant has provided proof to the city of the payment of all relocation assistance security deposit refunds as required in this subsection to the satisfaction of the development services director.
5. 
The applicant shall give each eligible tenant notice of his or her right to relocation assistance at the same time that the initial notice required by subsection D is given to tenants of the existing residential development. Such notice shall include a copy of this section and shall provide the name and telephone number of the applicant's representative, which will allow for messages outside of normal business hours, for the tenants to obtain further information relative to the relocation assistance available to them, and the timing of the payment of relocation assistance for their project.
D. 
Notice to Tenants. The conversion of an existing residential development to a common interest subdivision shall include all tenant notifications required by Section 66427.1, as amended, of the Subdivision Map Act.
E. 
Notice to Prospective Tenants. Commencing at a date not less than sixty days prior to the filing of a tentative parcel map or tentative map pursuant to Section 66452 of the Government Code, the subdivider or his or her agent shall give notice of such filing in the form outlined in Government Code Section 66452.8(b) to each person filing after such date for rental of a dwelling unit of the subject property. The notice shall be given immediately prior to the acceptance of any rent or deposit from the prospective tenant by the subdivider. If the tentative parcel map or tentative map has been approved, the notice shall be accompanied with the notice of decision or resolution of approval.
F. 
Right to Terminate Rental Agreement. The subdivider shall permit a tenant to terminate any lease or rental agreement without any penalty whatsoever after the notice of intent to convert to community housing has been given if such tenant notifies the developer in writing thirty days in advance of such termination.
(Ord. 438 § 1, 2016)
A community housing conversion may be conditionally approved if all of the findings required in Government Code Section 66427.1 are made in addition to the following findings of fact:
A. 
That all provisions of the Subdivision Map Act, and provisions of this chapter are met and the project will not be detrimental to the health, safety, and general welfare of the community.
B. 
That the proposed conversion is consistent with the general plan of the city of Lemon Grove.
C. 
The overall design and physical condition of the community housing conversion achieves a high degree of appearance, quality, and safety.
D. 
The applicant has not engaged in coercive action regarding the tenants after the submittal of the first application for city review through the date of approval.
(Ord. 438 § 1, 2016)
Any decision of the development services director may be appealed to the city council. Appeals shall be filed in the office of the city clerk within fifteen days after the action being appealed. Fees for appeal applications by tenants within the property to be converted shall be borne by the project applicant.
(Ord. 438 § 1, 2016)
If any provision of this chapter or the application thereof to any person or circumstance is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other chapter provisions or clauses or applications thereof which can be implemented without the invalid provision, clause or application, and to this end, the provisions and clauses of this chapter are declared to be severable.
(Ord. 438 § 1, 2016)