[HISTORY: Adopted by the Mayor and Council
of the Town of Elsmere 3-11-1982 by Ord. No. 170. Amendments noted where
applicable.]
Unless a contrary meaning is clearly indicated
from the context, the following definitions shall apply in this chapter:
Any existing structure or group of structures containing
three or more dwelling units for the purpose of multifamily occupancy.
Shall be defined as those words are defined in 25 Del. C.
§ 2202.
A building or complex of buildings governed by the provisions
of the Unit Property Act, 25 Delaware Code, Chapter 22.
A single unit as defined in the Unit Property Act, 25 Delaware
Code, Chapter 22.
The change of rental units into condominium units resulting
from the filing for recording with the Recorder of Deeds in New Castle
County of a declaration pursuant to the Unit Property Act.
Shall be defined as that word is defined in 25 Del. C. § 2202,
and shall contain the contents required by 25 Del. C. § 2219.
Shall be defined as that term is defined in 25 Del. C. § 2202.
Any person, group of persons, corporation, partnership, association,
trustee or other legal entity who undertakes the conversion of an
apartment building to a condominium.
Any room or group of rooms located within a dwelling and
forming a single habitable unit with facilities which are used or
intended to be used for living, sleeping, cooking and eating.
The report of a duly registered engineer licensed in this
state stating the present condition of all structural and major utility
installations in the condominium, to include the type of construction
or utility installation, the age, approximate remaining useful life,
and approximate present replacement costs of all elements or components
that need replacement, including roofs, electrical wiring, plumbing,
water heaters, heating systems and units, and air-conditioning systems
and units. The engineer's report may be supplemented by reports of
duly licensed professional architects, with respect to structural
elements, such as foundations, bearing walls, perimeter walls and
floors. The present costs of remedying any structural deficiencies
found shall be stated.
Shall be defined as that term is defined in federal legislation
prohibiting discrimination against the handicapped, the Rehabilitation
Act of 1973, as amended.
Any advertisement, inducement, solicitation or attempt by
a developer to encourage any person, other than a tenant, to purchase
a condominium unit.
Any individual, corporation, partnership, association, trustee
or other legal entity.
That an instrument has been duly entered of record in the
Office of the Recorder of Deeds for New Castle County.
The Recorder of Deeds for New Castle County.
Any person entitled to occupy a dwelling unit primarily for
purposes of habitation under a lease or rental agreement, written
or oral.
The violation of, failure to comply with or attempt to avoid
the application of the provisions of this chapter.
The published identification of name and location or locations
of a substantial number of large apartment complexes within New Castle
County, and the comprehensive compilation of the total number of dwelling
units in said apartment complexes which are vacant and available for
occupancy and which are comparable in rental prices to what the existing
tenants are paying at the time of the recording of the developer's
declaration with the Recorder.
A.
The provisions of this chapter shall apply to the
conversion of any apartment building within the Town of Elsmere to
a condominium for which declaration was first recorded with the recorder
on or after the effective date of this chapter by which recording
such apartment building becomes a condominium.
B.
Any action of any kind undertaken by the developer toward completion of the conversion by way of notice to tenants-in-possession or offer of sale to the public or commencement of renovation without first complying with the provisions required in §§ 83-4 through 83-9 of this chapter shall constitute an unlawful practice.
A.
Notice of recording of declaration. A developer shall
send a notice of the recording of a declaration and a copy of said
declaration to the Planning Commission and the Building Committee
of the Town of Elsmere by registered or certified mail, within seven
days of the recording of the declaration with the Recorder of Deeds
for New Castle County.
B.
Subdivision approval. If, at the time of recording
of the declaration, a developer has not already done so, any developer
converting an apartment building to a condominium shall make application
to the Planning Commission and Building Committee, within seven days
of the recording of the developer's declaration, for review and approval
of the developer's subdivision plat (the declaration and declaration
plan) and shall file all other documents as required by this chapter
for review and approval by the Planning Commission and Building Committee.
A.
No proposed condominium conversion project shall be
approved for development unless the Planning Commission and Building
Committee shall have first received from the developer the following
documents and shall have reviewed and approved them on the basis of
their effect on public health, safety and general welfare:
(1)
A detailed development plan, including a report from
a professional engineer licensed to do business in the State of Delaware,
stating the engineer's observations regarding the condition of the
structure involved and the major utility installations in the building.
(2)
A proposed operating budget for the condominium which
shall be based upon current operating expenses for the building.
(3)
A listing of all rental charges for every type of
apartment currently available and a listing of proposed selling prices
for every type of condominium unit which shall be available for purchase.
(4)
A copy of conditions, covenants, restrictions or other
condominium agreement for the project setting forth the occupancy
and management policies for the project.
(5)
A statement of the overall impact a proposed conversion
project would have on displaced persons and families especially the
elderly and the handicapped.
B.
The Planning Commission and Building Committee shall, within 30 days after receipt of notices and documents as required in §§ 83-3 and 83-4, prepare and deliver to the applicant a conversion report, including therein a recommendation for approval or denial, a listing of conditions or requirements recommended as a basis for approval and supportive reasons or justifications for such recommendations.
C.
A developer shall have 30 days in which to respond
to denial or conditional approval and shall demonstrate compliance
to the satisfaction of the Planning Commission and Building Committee
at which time final approval shall be granted.
A.
Condominium conversion licenses. Within seven days
following receipt of final project approval by the Planning Commission
and Building Committee, a developer shall make application to the
Tax Collector for a condominium conversion license for each planned
salable unit in the conversion project. A condominium conversion license
for each planned salable unit shall be issued by the Tax Collector
upon the payment of a fee in the amount of $2,500 per planned salable
unit in the project. Each license required herein shall be a one-time
charge paid prior to the original sale of each new planned condominium
conversion unit.
[Amended 9-18-2003 by Ord. No. 420]
B.
Operator's license. A business operator's license is required annually and may be obtained in accordance with the provisions of Chapter 131, Licensed Businesses, governing dwelling units.
C.
Fee refunds. In the event that a developer abandons
the development of condominium conversion units either in whole or
in part before substantial work is begun and before the expiration
of six months following the issuance of condominium conversion licenses,
the Tax Collector shall, upon receipt of evidence documented to his
or her satisfaction that the conversion project or part of the conversion
project has been abandoned, refund 50% of the total amount of fees
paid for said project or part of said project for which abandonment
has been substantiated, provided further that, in the event of such
refund, it shall be unlawful for any person to proceed in any way
with further development of the project without first applying for
and receiving the applicable condominium license or licenses. In the
event that a developer abandons the development of condominium conversion
units either in whole or in part after substantial work has begun
and after the expiration of six months following the issuance of condominium
conversion licenses, no fee refunds shall be given.
D.
Unlawful practices. It shall be unlawful to engage
in, permit, suffer or assist in the development or construction or
to occupy any condominium for which a license has not been obtained
as provided in this section. Failure to apply and pay for the required
condominium conversion licenses shall constitute an unlawful practice.
Each fee that remains unpaid shall be a separate offense.
A.
Notice of intent to sell. Within seven days of obtaining
the required condominium conversion licenses, the developer shall
send to each tenant residing in a unit and to the Code Enforcement
Officer, by certified mail, return receipt requested:
(1)
A notice of intent to sell the tenant's unit;
(2)
A report from a professional engineer licensed to
do business in the State of Delaware, stating the engineer's observations
regarding the condition of the structure involved and the major utility
installations in the building;
(3)
A proposed operating budget for the condominium which
shall be based upon current operating expenses for the building;
(4)
A listing of all rental charges for every type of
apartment currently available and a listing of proposed selling prices
for every type of condominium unit which shall be available for purchase;
and
B.
Form of notice. The form of the notice of intent to
sell shall contain the following:
(1)
The name and address of the current owner.
(2)
The name and address of the proposed developer.
(3)
A copy of the Planning Commission and Building Committee's
conversion report.
(4)
The approximate date on which the unit is to be vacated
by nonpurchasing tenants.
(5)
A statement of the tenant's right of written notification to vacate by a certain date as governed by Subsection D herein.
(7)
Such other information as the Planning Commission
and Building Committee may deem to be required.
C.
Other forms of notice. Any notice by way of public advertisement, or any other form of notice not in conformity with this section, or any notice of any kind given to any tenant prior to the date specified in Subsection A shall not be deemed to be sufficient notice under this section.
D.
Rights of tenants.
(1)
Exclusive right to purchase. A tenant of a unit at the time of sending of the notice of intent to sell shall have the exclusive right to purchase his or her unit for a period of 90 days commencing with the receipt of the notice set forth in Subsection B above, unless the tenant, during said ninety-day period, signs a written waiver of such right.
(2)
Right of privacy. Unless a tenant has sooner execute
a written waiver of his or her exclusive right to purchase, the developer
shall not show or offer the unit for sale to persons other than the
tenant during the first 45 days following receipt by the tenant of
the aforesaid notice of intention to convert. Following said forty-five-day
period, or such waiver, the developer shall show the unit to prospective
purchasers only during reasonable hours of the day and only upon not
less than 24 hours' notice to the tenant.
(3)
Nontermination of lease. After 90 days, or after such
waiver, the tenant deciding not to purchase shall not have his or
her lease terminated by the building owner or developer for a minimum
period of 90 additional days, during which time the tenant shall continue
to try to find an alternative residence.
(4)
Rent increases. In any instance in which a tenant
has decided not to purchase his or her unit, no increase in rent charged
to such tenant during the periods of time herein established shall
result in an amount of rent exceeding that most recently charged a
tenant of a comparable unit in the same complex; provided further,
however, that in no event shall such increase exceed 10% of the rent
previously charged to such tenant.
(5)
Tenant's right to terminate lease. Any tenant with
more than 60 days remaining on a lease who receives a notice of intent
to convert shall at any time after receipt of such notice have the
right to terminate such lease with 60 days' written notice to the
landlord. Such termination shall be without penalty or other termination
charge to the tenant.
(6)
Terms of purchase. The exclusive right to purchase
granted to tenants under this subsection shall include the right of
a tenant to purchase his or her unit upon at lease as favorable terms
and conditions as said units are offered to the general public.
(7)
Access. The tenant in a conversion condominium shall not unreasonably withhold consent to the developer to enter the unit in order to inspect the premises, make necessary or agreed repairs, supply necessary or agreed services or show the unit to prospective or actual workmen or purchasers in accordance with this section. The landlord shall not abuse right of access or use it to harass the tenant. Except as provided in Subsection D(2) hereof and except in case of emergency, or unless it is impractical to do so, the developer or landlord shall give the tenant at least two days' notice of his intent and may enter only at reasonable times between the hours of 8:00 a.m. and 9:00 p.m.
(8)
Provisions for special tenants. Those tenants of a
dwelling unit of which at least one occupant is 62 years of age or
older or who is a handicapped person shall not be evicted for a period
of not less than 18 months from the date of receipt of the notice
of intent to sell.
(9)
No impairment of rights and obligations. This subsection
shall not be construed as in any way impairing any rights and obligations
expressly or impliedly provided for either in the specific terms of
the lease or under the provisions of the Landlord-Tenant Code of the
State of Delaware except for the additional requirements set forth
in this subsection.
A.
The Building, Plumbing and Health Inspectors of the
Town of Elsmere shall inspect all buildings being converted from apartments
to condominiums.
B.
In no instance shall a waiver of a presale inspection
be valid. No condominium unit subject to the provisions of this chapter
shall be sold in "as is" condition.
A.
Conversion standards. Any apartment building under
going conversion to condominium ownership must meet all applicable
provisions of the zoning, housing and building codes of the Town of
Elsmere, the fire prevention codes of the State of Delaware, and the
provisions of this chapter.
B.
Duties of the developer. The developer shall:
(1)
Arrange for access to all parts of any apartment building
undergoing conversion so that required inspections shall be conducted;
(2)
Correct all violations in a unit as noted in the inspection reports required by Subsection C of this section at least seven days prior to the sale of that unit;
(3)
Correct all violations of the common elements as noted in the inspection reports required by Subsection C of this section at least seven days prior to the sale of any unit;
(4)
Warrant all repairs and improvements made by the developer
to each condominium unit for one year from the date of sale of each
unit;
(5)
Warrant all repairs and improvements made by the developer
to the common elements for one year from the date of sale of each
unit;
(6)
Obtain a certificate of occupancy issued by the Town
for each unit at least seven days prior to the date of sale of each
unit;
(7)
Obtain a certificate of occupancy issued by the Town
for all common elements at least seven days prior to the date of sale
of the first unit; and
(8)
Pay to the Town all fees established for all applicable
certificates of occupancy and permits.
C.
Duties of Town and state inspectors. The Building,
Plumbing and Health Inspectors of the Town of Elsmere shall:
(1)
Conduct inspections of all apartment buildings undergoing
conversions;
(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 authorized; and
(4)
Issue a certificate of occupancy for each condominium
unit and for the common elements to the developer only upon satisfactory
completion of all repairs and improvements.
A developer shall provide the following information
to prospective purchasers at least seven days before any agreement
of sale is signed:
B.
A copy of all documents filed pursuant to the Unit
Property Act, 25 Delaware Code, Chapter 22.
C.
An itemization of specific repairs and improvements
made to the building and to the unit during the six months preceding
the recording of the declaration.
D.
An itemization of specific repairs and improvements
to be completed.
The Code Enforcement Officer of the Town of
Elsmere is authorized to conduct all necessary investigations, and,
if there appears to be any unlawful practice, the Code Enforcement
Officer shall undertake one or both of the following:
Any person who has been the object of an unlawful
practice under this chapter may file a complaint with the Code Enforcement
Officer.
Any person who has been the object of an unlawful
practice as defined in this chapter or any purchaser in a contract
which may be voided under this chapter may rely on the provisions
of this chapter to institute civil proceedings against the developer
to secure compliance with this chapter.
A.
Fine. A person who commits an unlawful practice under
this chapter shall, upon conviction, be fined a sum of $500 for each
offense. Each day's unlawful practice shall constitute a separate
offense.
[Amended 9-18-2003 by Ord. No. 420]
B.
Remedial action. Any binding agreement of sale entered
into by a developer which results in an unlawful practice under this
chapter is:
