City of Rehoboth Beach, DE Condominiums

The recent development in the City of Rehoboth Beach of a phenomenon identified as the conversion of existing apartment buildings and the rental units therein to condominiums and condominium units has had a substantial impact upon the City of Rehoboth Beach and its residents.

Condominium conversions have placed additional burdens on existing City Tax and Water Departments in that multiple owners must be identified and assessed for taxes and municipal services.

For the purposes of this article and as provided by the Unit Property Act, Delaware Code Annotated, Title 25, Chapter 22, this Council finds that a condominium exists and a property obtains that status in law as of the date of the recording with the Recorder of Deeds in and for Sussex County of the developers "declaration" as defined in Delaware Code Annotated, Title 25, Chapter 22.

The provisions of this article are necessary in order to establish minimum regulations for conversions of apartment buildings to condominiums in the City of Rehoboth Beach and to best ensure and protect the rights and obligations of owners, developers, tenants and other purchasers, as well as the public health, safety and welfare of the citizens of Rehoboth Beach.

§ 129-3 Definitions.

As used in this article, the following terms shall have the meanings indicated:

APARTMENT BUILDING

Any existing structure or group of structures containing two or more dwelling units for the purpose of multifamily occupancy.

COMMON ELEMENTS

Shall be defined as those words are defined in Delaware Code Annotated, Title 25, Chapter 22, § 2202.

CONDOMINIUM

A building or complex of buildings governed by the provisions of the Unit Property Act, Delaware Code Annotated, Title 25, Chapter 22.

CONDOMINIUM UNIT

A single unit, as defined in the Unit Property Act, Delaware Code Annotated, Title 25, Chapter 22, in a condominium used for residential, commercial or other lawful uses.

CONVERSION

The change of units into condominium units resulting from the filing for recording with the Recorder of Deeds in and for Sussex County of a declaration pursuant to the Unit Property Act, Delaware Code Annotated, Title 25, Chapter 22.

DECLARATION

Shall be defined as that word is defined in Delaware Code Annotated, Title 25, Chapter 22, as amended, presently defined as "the instrument by which the owner in fee simple or lessee of the property submits it to the provisions of this chapter as hereinafter provided and all amendments thereof" (Delaware Code Annotated, Title 25, Chapter 22, § 2202), and containing the contents required by Delaware Code Annotated, Title 25, Chapter 22, § 2219.

DECLARATION PLAN

Shall be defined as that term as defined in Delaware Code Annotated, Title 25, Chapter 22, § 2202.

DEVELOPER

Any person who undertakes the conversion of an apartment building to a condominium.

OFFER OF SALE TO THE PUBLIC

Any advertisement, inducement, solicitation or attempt by a developer to encourage any person to purchase a condominium unit.

PERSON

Any individual, corporation, partnership, association, trustee or other legal entity.

RECORDED

That an instrument has been duly entered of record in the office of the Recorder of Deeds, in and for Sussex County.

RECORDER

The Recorder of Deeds for Sussex County.

UNLAWFUL PRACTICE

The violation of, failure to comply with or attempt to avoid the application of the provisions of this article.

§ 129-4 Applicability; license required.

The provisions of this article shall apply, in their entirety, to the conversion of any apartment building in the City of Rehoboth Beach to a condominium for which a declaration was first recorded with the Recorder on or after July 1, 1987, and any conversion of which 50% of the units as created by the declaration have not been transferred from the developers' ownership.

Every developer undertaking the conversion of an apartment building to a condominium, the declaration for which is first recorded with the Recorder on or after the effective date of this article, shall obtain a condominium conversion license from the Building and Licensing Department of the City of Rehoboth Beach and shall pay a license fee of $325 per unit.

Every developer to whom Subsection B of this section applies shall apply for a condominium conversion license within seven days of the recording of that developer's declaration. The Building and Licensing Department shall not issue a condominium conversion license until the developer has submitted the following:

(1)

Plot of real property to be included in the condominium.

(2)

Condominium declaration as recorded.

(3)

Floor plans of all units drawn to scale.

(4)

Plan for compliance with § 129-5, Water and sewer connection.

Any action of any kind undertaken by the developer toward completion of the conversion by way of offer of sale to the public following the recording of the developer's declaration without first obtaining the license required by this article and section shall constitute an unlawful practice.

§ 129-5 Water and sewer connection.

Every developer to whom § 129-4B applies shall, within one year from the date of adoption of this article, provide one of the following methods of water service to all units involved in the declaration:

(1)

Installation of individual meters for each unit and the common areas capable of being terminated and read separately without gaining access to any building.

(2)

Installation of one meter for the entire complex, including all units involved in the declaration and common areas. Said meter shall be capable of being terminated and read without gaining access to any building.

Provided that the developer chooses to comply with Subsection A(1) above, water and sewer bills will be assessed against individual unit owners on a quarterly basis calculated on meter readings. The bill for the common areas will be assessed against the developer until notification is received by the city transferring responsibility to the condominium council as authorized by the declaration.

Every developer to whom § 129-4C applies shall, prior to taking any action toward completion of the conversion by way of offering for sale to the public following the recording of the developer's declaration, install individual water meters for each unit and the common areas, capable of being terminated and read separately and without gaining access to any building.

All meters installed to comply with the foregoing shall be approved by the City of Rehoboth Beach for placement, design, compatibility with present city supply facilities and overall acceptability, prior to their installation. All meter installations must also comply with the Southern Standard Plumbing Code.

§ 129-6 Inspection of buildings and units.

The Building and Licensing Department of the City of Rehoboth Beach shall inspect all buildings being converted from apartments to condominiums to ensure their compliance with the City Code of Rehoboth Beach with respect to housing, the Building Code and the provisions of this article.

It shall be the duty of the Building and Licensing Department and said Department shall:

(1)

Conduct inspections of all apartment buildings undergoing conversion.

(2)

Issue inspection reports listing all violations of applicable Code provisions discovered during the inspections.

(3)

Conduct inspections of all repairs and improvements in accordance with all permits issued.

(4)

Issue a final certificate of occupancy for each condominium unit and for the common elements to the developer only upon satisfactory completion of all repairs and improvements.

It shall be the duty of the developer and said developer shall:

(1)

Arrange for access to all parts of the apartment building and request an inspection by the Building and Licensing Department of the City of Rehoboth Beach of any building undergoing conversion.

(2)

Correct all violations in a unit as noted in the inspection reports required by Subsection B(2) of this section at least seven days prior to the close of sale of that unit.

(3)

Correct all violations in the common areas as noted in the inspection report required by Subsection B(2) of this section at least seven days prior to the close of sale of the first unit.

(4)

Obtain a certificate of occupancy issued by the city for each unit at least seven days prior to the close of a sale of each unit.

(5)

Obtain a certificate of occupancy issued by the city for all common areas at least seven days prior to the close of sale of the first unit; for the purpose of this subsection, a temporary certificate of occupancy may be issued, provided that all required permits have been obtained and the required work proceeds in a timely fashion, such certificate to become final upon satisfactory completion of all work or to be revoked if the work is abandoned. In no case shall more than 50% of the units designated in the declaration be sold prior to a final certificate of occupancy being issued.

(6)

Submit to the Building and Licensing Department of the City of Rehoboth all documents required by § 129-4D.

(7)

Install smoke detectors approved by the Underwriters' Laboratories, Inc., in all units and the common area in accordance with the following:

(a)

At least one detector in each unit as set out in the declaration.

(b)

In all hallways with not more than 25 feet between detectors.

(8)

Pay to the City of Rehoboth Beach all fees established for all applicable licenses and permits.

§ 129-7 Enforcement.

The Building Inspector is authorized to conduct all necessary investigations and, if there appears to be any unlawful practice, undertake one of the following:

Attempt to conciliate the matter and to secure a written conciliation agreement with the developer; or

Initiate criminal prosecution proceedings.

§ 129-8 Violations and penalties.

A person who commits an unlawful practice under this article shall, upon conviction, be fined a sum not to exceed $500 for each offense. Each day's unlawful practice shall constitute a separate offense.