Article 36.14 CONDOMINIUM CONVERSIONS

The conversion of residential structures from one individual ownership to condominiums or any other form of multiple ownership interests creates special community problems, both social and economic. Conversions may significantly affect the balance between rental and ownership housing within the city and thereby reduce the variety of individual choices of tenure, type, price and location of housing; increase overall rents; decrease the supply of rental housing for all income groups; displace individuals and families; and disregard the needs of the prevailing consumer market. The purpose of this article is to provide guidelines to evaluate those problems, the impact any conversion application may have on the community, and to establish requirements which shall be included in any conversion approval.

The provisions of this article shall apply to any conversion of a residential structure from one individual ownership to any form of multiple ownership, including, but not limited to, condominiums, stock cooperatives and community housing projects, but not including limited equity cooperatives, the subdivision of which shall be governed by the procedures set forth in the Subdivision Map Act (Government Code Section 66410 et seq.).

(Ord. 1468 § 1; Ord. 2678, 11/4/2025)

§ 36.14.030 Purpose.

This article is enacted for the following reasons:

To establish procedures and standards for the conversion of existing multiple-family rental housing to condominiums;

To reduce the impact of such conversions on tenants who may be required to relocate due to the conversion of apartments to condominiums by providing for procedures for notification and adequate time and assistance for relocation to comparable rental housing and rates;

To assure that purchasers of converted housing have been properly informed as to the physical condition of the structure which is offered for purchase;

To ensure that converted housing achieves a high standard of appearance, quality and safety, and is consistent with the goals of the city;

(e)

To ensure that the project sponsor provides for improvements or rehabilitation to result in a project which provides housing which is in good condition and without hidden needs for maintenance and repair;

(f)

To provide a desirable balance of rental and ownership housing and a variety of individual choice of tenure, type, price and location of housing;

(g)

To provide the opportunity for low and moderate income persons to participate in the ownership process, as well as to maintain a supply of rental housing for low and moderate income persons; and

(h)

To assure that adequate rental housing is available in the community.

(Ord. 1468 § 1; Ord. 2678, 11/4/2025)

§ 36.14.040 Application procedures.

The following procedures and regulations shall apply to condominium conversion tentative map applications:

Tentative maps. Condominium conversions may be permitted in any residential district subject to the provisions as set forth in Chapter 40 (Zoning) of this Code, and subject to the approval of a tentative map. Such applications shall contain all the information required for a tentative map pursuant to this Code.

Acceptance. The community development department shall accept applications for condominium conversions if any one of the following factors exists:

Conversions may be approved when the vacancy rate of multiple-family rental developments within the city, as determined by the community development director, is equal to or more than five percent, unless the conversion will result in a decrease of the vacancy rate to less than four and nine-tenths percent.

The University of California Davis Housing Office fall vacancy rate survey or, if unavailable, another source acceptable to the community development director shall be utilized; or

Tenants lawfully in possession of seventy-five percent of the units indicate their desire (one vote per unit) to convert such units to condominium ownership in writing to the city. Tenants shall be provided with information on all estimated costs, including, but not limited to, the unit cost, down payment requirements, financing, estimated property management costs, and homeowner association fees. Specific estimates of such costs shall be acknowledged in writing by the city. If the conversion is approved, the developer shall provide information to the city on the number of tenants who actually purchased. If at any time during the conversion approval process a sufficient number of tenants decide not to purchase, or if misrepresentation is discovered, the commission shall have sufficient grounds for denial; or

§ 36.14.050 Required reports and information.

The applicant agrees to sell or rent at affordable prices forty percent of the units to low- or moderate-income households, as defined in Section 50093 of the California Health and Safety Code, with a minimum of twenty percent of the units affordable to lower-income households, as defined in Section 50079.5 of the California Health and Safety Code. If the units are to be made available for purchase, the sales price of such units shall not exceed two and five-tenths times the annual median income for low- or moderate-income households as defined by California Health and Safety Code Section 50093. Resale controls shall be included as a deed restriction as specified by the planning commission. If the units are to be for rental, they shall either be included in the county-administered Section 8 Program, or the maximum rent allowed shall keep the units within the low- or moderate-income housing stock.

(Ord. 1468 § 1; Ord. 2390 § 2, 2012; Ord. 2678, 11/4/2025; Ord. 2678, 11/4/2025)

The project as a whole shall be in good repair on the interior and the exterior when offered for sale. As part of the material necessary for such determination, and to aid the review of the proposal, the reports and/or information required by this section shall be submitted for review and action on the application unless determined unnecessary for such determination by the planning commission. The cost of all reports shall be paid by the applicant, and the persons preparing the reports shall be approved by the city. The reports shall include information on what improvements, if any, shall be accomplished by the developer and at what point in the conversion proceedings such improvements shall be completed. All improvements cited in the reports, whether required or voluntary, shall be considered conditions of approval.

Physical elements reports. A report on the physical elements of all structures and facilities shall be submitted.

A report by a licensed structural or civil engineer detailing the structural condition 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, and parking facilities. Such report shall also describe the condition of refuse disposal facilities; swimming pools, saunas and fountains; stone and brickwork; fireplaces; and exterior lighting. The report shall also describe the condition of all structures and facilities with respect to the extent of deferred maintenance, if any. Drainage facilities on the site and their adequacy shall be described. Such report or supplement thereto shall describe the present condition and useful life of all elements as deemed pertinent;

A report by a 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. Such report shall be updated within six months prior to the close of escrow, and any infestation shall be remedied prior to sale;

Existing soils reports shall be submitted for review with a statement regarding any known evidence of soils problems relating to the structures. As required by the city engineer, a new or revised report shall be prepared by a licensed soils engineer on soil or geological conditions on-site or off-site which could adversely affect the project site or structures;

A report by a licensed roofing contractor verifying the condition of the roofs of all structures and an estimate of the remaining physical life of the roofs. A statement that new roof material will be applied may take the place of such report. Such statement shall include the type, grade and color of the proposed roofing material;

(5)

A resale/retrofit inspection report issued through the community development department, building inspection division;

(6)

A declaration of the covenants, conditions, and restrictions and rules and regulations which would be applied on behalf of any and all owners of condominium units within the project. 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. Such documents shall be approved by the city attorney and recorded in the office of the county recorder;

(7)

Specific information concerning the demographic and financial characteristics of the project, including, but not limited to, the following:

(A)

The square footage and number of rooms in each unit,

(B)

The rental rate history for each type of unit for the previous three years,

(C)

The monthly vacancy rate for each month during the preceding two years,

(D)

A complete list of the number of tenants and tenant households in the project, including the following information:

(i)

Households with persons sixty-two years of age and older,

(ii)

The family size of households, including a breakdown of households with children under five years of age and between five and eighteen years of age,

(iii)

Households with handicapped persons,

(iv)

The length of residence,

(v)

The age of tenants, and

(vi)

The designation of low-income and moderate-income households and whether receiving federal, state or local rent subsidies.

When the subdivider can demonstrate that demographic information is not available, this requirement may be modified by the planning commission,

(E)

The proposed price range of the units,

(F)

The proposed homeowners' association fees, and

(G)

A statement of intent as to the types of financing programs to be made available, including any incentive programs for existing residents;

(8)

Signed copies from each tenant of the notice of intent to convert, as specified in this article. The subdivider 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.

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 department for review by any interested person.

§ 36.14.060 Condominium conversion standards.

Copies to purchasers. Prior to any purchaser executing any purchase agreement or other contract to purchase a unit in the project, the subdivider shall provide each purchaser with a copy of all reports in their final form as accepted by the planning commission, except that the demographic information and copies of the notice to each tenant concerning conversion do not need to be distributed.

The developer shall give the purchaser sufficient time to review such reports. Copies of the reports shall be made available at all times at the sales office.

(Ord. 1468 § 1; Ord. 2297 §§ 1, 2, 2007; Ord. 2678, 11/4/2025)

Compliance with zoning, building, housing, mechanical, and fire codes. All units, as well as the common ownership facilities, shall be brought into compliance with all applicable state and local zoning, building, housing, mechanical and fire codes adopted for use by the city at the time the conversion project shall be upgraded to conform with current codes. Where the above is not possible, the subdivider shall demonstrate to the planning commission that it is not feasible to meet current codes.

Parking requirements. Regulations governing parking requirements shall reflect the current city parking standards for single-family dwellings, except for residential units in mixed use developments in the Central Commercial and Mixed Use districts would be exempt from the single family parking standard. The parking requirement in the Central Commercial and Mixed Use districts shall be a minimum of one on-site parking space for each unit converted to a residential condominium unit. Converted condominium units shall be exempt from the covered parking requirements applicable to single-family dwellings if the development was constructed with less than one covered space per unit. This provision shall only affect whether or not parking spaces must be covered, but shall not affect the number of spaces required.

Disabled access requirements. Disabled access requirements shall reflect current city or Title 24 standards for single-family dwellings.

Sound transmission characteristics and energy conversation. Condominiums present a unique problem in relation to sound transmission. The following methods shall be utilized to regulate noise transmission:

Shock Mounting of Mechanical Equipment. All permanent mechanical equipment, such as motors, compressors, pumps and compactors, which are determined by the building official to be a source of structural vibration or structure-borne noise, shall be shock-mounted in inertia blocks or bases and/or vibration isolators in a manner approved by the building official.

Noise Mitigation and Energy Conservation. Energy conservation insulation shall be installed in all heated or cooled buildings, including common ownership structures used for assembly purposes, in accordance with Title 24 of the California Administrative Code, as amended, or local code as applicable and in effect on the date building permits are issued for condominium conversion rework.

Exception 1. Common walls between dwelling units to be constructed of a two-inch by four-inch wall insulated with not less than R-11 rated insulation, or an equivalent form of noise attenuation control acceptable to the planning commission.

Exception 2. Common floor ceilings between dwellings units and between dwellings and garages shall be insulated with not less than R-19 rated insulation.

(e)

Fire protection.

Smoke Detectors. Every dwelling unit shall be provided with a smoke detector. Installations shall comply with National Fire Protection Association Pamphlet 74. The detector shall be approved by the State Fire Marshal. AC primary power source shall be utilized. The detector shall be mounted on the ceiling at a point centrally located in the corridor or areas giving access to rooms used for sleeping purposes. Where sleeping rooms are on an upper level, the detector shall be placed at the center of the ceiling directly above the stairway.

Sprinkler and Other Systems. A sprinkler system, fire alarm, and/or other fire protection devices shall be installed as required by the Uniform Fire Code adopted for use by the city at the time of the conversion application.

(f)

Utilities.

Location. Each dwelling unit to be converted shall be served by individual gas and electric services meter. No common gas or electrical connection or service shall be allowed. Easements for gas and electric lines shall be provided in the common ownership area where lateral service connections shall take place.

Undergrounding. All new utilities, both on-site and off-site, across property frontage shall be underground.

Lockable Shutoff Valve. Developer agrees to furnish and install individual, lockable shutoff valve, of a type approved by the public works director, on the water service for each dwelling unit within this condominium project. The location of the valve shall be approved by the public works director. In addition, developer agrees to furnish to city a permanent right-of-entry for use and maintenance of the valve. Said right-of-entry shall be approved by the city attorney and shall be executed prior to issuance of a certificate of occupancy for any unit within the condominium project.

§ 36.14.070 Tenant benefits and notification.

Utility Costs. Each dwelling unit shall be separately metered for gas and electricity. Individual panelboards for electrical current shall be provided for each unit. A plan for the equitable sharing of water, sewer, drainage and other shared utility costs shall be included in the covenants, conditions and restrictions.

(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 five units or fraction thereof.

(h)

Condition of equipment and appliances. The developer shall provide a minimum of one-year warranty to the buyer of each unit at the close of escrow on any dishwasher, garbage disposal, stove, range or oven, refrigerator, trash compactor, hot water tank, air-conditioning unit or heating system which is provided. At such time as the homeowners association takes over the management of the development, the developer shall provide a one-year warranty to the association that any pool and/or spa and pool and/or spa equipment (filter, pumps, and chlorinator) and any appliances and mechanical equipment to be owned in common by the association is in operable working condition. The plumbing and electrical systems in both the dwelling and the common ownership areas shall also be covered by a one-year warranty for proper and safe operation and installation in a safe and workmanlike manner. Such warrant shall be offered by an independent homeowner's warranty service licensed by the Insurance Commission of the state for such purpose, except that new appliances may be covered by the manufacturer's warranty. The developer shall provide options to prospective buyers for new appliances and equipment or, alternatively, acceptance of existing appliances with the warranty described in this subsection.

(i)

Refurbishing and restoration. All main buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, landscaped area, and additional elements as required by the planning commission, shall be refurbished and restored as necessary to achieve a high standard of appearance, quality and safety.

(j)

Contingency fees. A contingency or reserve fund for operation and maintenance expenses for the condominium conversions shall be provided in accordance with state law and the Department of Real Estate requirements.

(Ord. 1468 § 1; Ord. 2297 § 3, 2007; Ord. 2390 § 45, 2012; Ord. 2678, 11/4/2025)

Applications for condominium conversions shall include the following procedures as they relate to tenant notifications:

Notices of intent. A notice of intent to convert shall be delivered to each tenant at least ninety days prior to filing the tentative map. Evidence of the receipt of such notice shall be submitted with the application for conversion. The form of the notice shall be in the form outlined by Section 66452.9 of the Subdivision Map Act, shall be approved by the department, and shall contain not less than the following:

The name and address of the current owner;

The name and address of the proposed subdivider;

The approximate date on which the application and tentative map are proposed to be filed;

The approximate date on which the final map or parcel map is to be filed;

(5)

The approximate date on which the unit is to be vacated by nonpurchasing tenants;

(6)

The tenant's right to purchase;

(7)

The tenants right of notification to vacate;

(8)

The tenants right to termination of the lease;

(9)

A statement of no rent increase;

(10)

Provisions for special cases;

(11)

The provision of moving expenses and the tenant's right to claim any penalty imposed if timely payment is not made;

(12)

The anticipated price range of the units;

(13)

The proposed homeowner's association fees;

(14)

A statement of the types of financing programs to be made available, including any incentive programs for existing residents; and

(15)

A copy of the city conversion regulations shall be attached to the notice of intent.

Notification to tenants.

Mailing. Two separate stamped, preaddressed envelopes for each resident of each unit shall be furnished to the department by the subdivider at the time the sub-divider submits an application for a tentative map. The department shall use one envelope to notify the residents by mailing a copy of the planning commission or public hearing notice to tenants not less than ten days prior to the proposed hearing date on the application. The notice shall include notification of the tenant's right to appear and be heard. The second envelope shall be used by the department to notify the residents of the results of the public hearing by mailing notification of the decision of the planning commission not more than seven days following the planning commission action. Failure of the department to mail such notice shall not invalidate any proceeding or action taken by the city in considering a conversion. The list of names and addresses of the residents of each unit in the conversion project shall be current as of the day of submittal and shall be certified as such by the subdivider.

Notices to Prospective Tenants. Commencing ninety days prior to the submittal of the application, any prospective tenants shall be notified in writing by the sub-divider of the intent to convert prior to leasing or renting any unit pursuant to Section 66452.8 of the Subdivision Map Act.

Posting Notices. The notice of intent shall be posted by the subdivider on-site in at least one location readily visible to tenants.

Tenants' discounts. Any present tenant of any unit at the time of an application for conversion shall be given a nontransferable right of first refusal to purchase the unit occupied at a discount of the price offered to the general public. The amount of the discount shall be based on the longevity of each tenant.

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 twenty days after the date of the tentative map approval by the city or until the expiration of the tenant's lease to find substitute housing and to relocate. Tenants shall be permitted to terminate leases or tenancy with one month's notice at any time after a conversion application.

(e)

No increase in rent. A tenant's rent shall not be increased within two months prior to a project application, nor shall the rent be increased for two years from the time of the filing of the project application or until relocation takes place. At the end of the two-year period, any increase in rent shall first be approved by the planning commission. When reviewing applications for rent increases, the planning commission shall consider the University of California Housing Office Apartment Vacancy and Rental Rate Report or residential rent component of the Sacramento Area Cost of Living Index of the United States Department of Labor, the condition of the unit, prevailing rents for similar units, and a reasonable rate of return on the owner's investment.

(f)

Special cases.

All nonpurchasing tenants sixty-two years of age or older and all nonpurchasing medically proven permanently disabled tenants shall be offered a lifetime lease. Rents for such tenants shall not be increased for two years after the filing of the project application. At the end of the two-year period, any increase in rent shall first be approved by the planning commission. When reviewing applications for rent increases, the planning commission shall consider the residential rent component of the Sacramento Area Cost of Living Index of the United States Department of Labor, the condition of the unit, prevailing rents for similar units, and a reasonable rate of return on the owner's investment.

The following nonpurchasing tenants shall receive a minimum of twelve months' relocation time, measured from the tentative map approval, to find replacement housing:

(A)

Tenants with low or moderate incomes as defined in California Health and Safety Code Section 50093;

(B)

Tenants with minor children in school.

(g)

Moving expenses. The subdivider shall provide moving expenses equal to three times the monthly rent to any tenant, in compliance with the terms of the subject lease, who relocates from the building to be converted after city approval of the tentative map. When the tenant has given notice of his intent to move prior to city approval of the tentative map, eligibility to receive moving expenses shall be forfeited.

(h)

Relocation assistance. Relocation assistance shall be provided by the subdivider to nonpurchasing tenants for a minimum period of four months following the tentative map approval. Information on available rental units in the same general area with costs comparable to the preconverted apartments shall be provided regularly and updated. Copies of the list shall be posted on-site, dated, and provided to the department.

(i)

Discrimination. No discrimination in the sale of any unit shall be based on age, and a statement to this effect shall be included in the covenants, conditions and restrictions. Projects created exclusively for the purpose of providing senior citizen housing shall be exempted from this requirement.

(j)

Certification of occupancy. A certificate of occupancy shall be issued by the building official prior to the occupancy of units after sales.

(k)

Effect of proposed conversions on the city's low-income and moderate-income housing supply. In reviewing requests for the conversion of existing apartments to condominiums, the planning commission shall also consider the following:

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;

The role the apartment structure plays in the existing housing rental 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. Standard definitions of low-income and moderate-income and low- income and moderate-income rents used by the federal and state governments shall be used in the evaluation;

The need and demand for lower-cost home ownership opportunities which are increased by the conversion of apartments to condominiums; and

If the planning commission determines that vacancies in the project have been increased for the purpose of preparing the project for conversion, the application may be disapproved. In the evaluation of the current vacancy level under this subsection, the increase in rental rates for each unit over the preceding three years and the average monthly vacancy rate for the project over the preceding two years shall be considered.

(l)

Findings. The planning commission shall not approve an application for a condominium conversion unless the planning commission finds that:

All the provisions of the Subdivision Map Act, this chapter, and other applicable provisions of this Code are met;

The proposed conversion is consistent with the general plan and the adopted housing element and any applicable specific plan; and the zoning ordinance;

The proposed conversion will conform to the provisions of this Code in effect at the time of the project approval, except as otherwise provided in this section;

The overall design and physical condition of the condominium conversion achieves a high standard of appearance, quality and safety;

(5)

The proposed conversion will not displace a significant percentage of low-income or moderate-income, permanently or totally disabled, or senior citizen tenants, or delete a significant number of low-income and moderate-income rental units from the city's housing stock at the time when no equivalent housing is readily available in the Davis area;

(6)

The application process has conformed to all the requirements of the Subdivision Map Act and this chapter; and

(7)

The dwelling units to be converted have been constructed and used as rental units for at least five years prior to the application for conversions or have received an approved housing allocation. Residential units to be converted in mixed use developments in the central commercial or mixed use districts may be exempt from this requirement if the following findings are made:

(A)

Conversion will not unreasonably interfere with the goals of the city when approving the project; and

(B)

Conversion will not unreasonably interfere with the availability of rental housing in the community.

(Ord. 1468 § 1; Ord. 2297 § 4, 2007; Ord. 2678, 11/4/2025)

§ 36.14.080 Variances.

If the strict application of the requirements of this article creates a special hardship, the subdivider may petition the planning commission for consideration of a variance. The planning commission may grant a variance only when the following conditions are found as contained herein:

That any variance granted shall be subject to such conditions as will assure that the adjustment thereby authorized shall not constitute a grant of special privilege;

That because of special circumstances applicable to subject property, the strict application of this article is found to deprive subject property of privileges enjoyed by other properties in the area;

That the authorizing of such variance will not be of substantial detriment to adjacent property, and will not materially impair the purposes of this article or the public interest;