EAST PALO ALTO
Chapter 24.6. - RESIDENTIAL CONDOMINIUM CONVERSION
SECTION 6520. Parts
SECTION 6520.1 General
SECTION 6520.11 Purpose of chapter.
SECTION 6520.12 Definitions.
(b) Below market rate program.
(c) Common area.
(e) Condominium project or residential condominium
(h) Handicapped tenant.
(i) Low income.
(j) Organizational documents.
(l) Recreational open space. Senior citizen.
(n) Unjust eviction.
(o) Vacancy rate.
SECTION 6520.2 Use Permit Procedure
SECTION 6520.21 Conditional use permit required.
SECTION 6520.22 Special noticing and report requirements.
SECTION 6520.23 Application for conditional use permit.
SECTION 6520.24 Additional application requirements.
SECTION 6520.25 Conditional use permit findings.
SECTION 6520.3 Property and Code Requirements
SECTION 6520.31 Development standards.
SECTION 6520.32 Property and structural pest control reports –
SECTION 6520.33 Code compliance bond.
SECTION 6520.34 Effectiveness of permit.
SECTION 6520.35 Recreational open space.
SECTION 6520.36 Below Market Rate Units.
SECTION 6520.4 Tenant and Buyer Protection
SECTION 6520.41 Notice of intention to convert.
SECTION 6520.42 Notice of public report.
SECTION 6520.43 Tenants' rights.
SECTION 6520.44 Relocation and purchase assistance.
SECTION 6520.45 Documents furnished to prospective
SECTION 6520.46 Capital contributions and warranties.
SECTION 6520.47 Nondiscrimination.
SECTION 6520.5 Other Provisions
SECTION 6520.51 Affordable housing fee requirements
SECTION 6520.1. GENERAL
SECTION 6520.11. PURPOSE OF CHAPTER
(a) This chapter is enacted to establish requirements and procedures for the control
and approval of conversion of existing multiple-family rental housing to residential
condominium projects. By their unique character and requirements, conversions
differ specifically from other subdivisions. The unique status of such projects tends
to magnify the effects associated with higher urban densities to the point where they
may lead to conditions of mismanagement, neglect, and blight that impact upon the
public health, safety, welfare, and economic prosperity of the City of East Palo Alto.
Such projects may conflict with the policy of the City of East Palo Alto to provide a
reasonable balance of rental and ownership housing within the City, to provide a
variety of individual choices of tenure, type, price, and location of housing and to
maintain the supply of rental housing for low and moderate income persons and
families. To insure that such problems are avoided in both short and long term, it is
the express intent of the City of East Palo Alto to treat such projects differently from
multiple dwellings or other structures which are not residential condominium
projects, and to establish rules and standards thereto regulating the conversion to
such projects in the City of East Palo Alto.
(b) This chapter is enacted to insure that proposed conversions are approved consistent
with policies and objectives of the City of East Palo Alto, particularly the following:
(1) To make adequate provision for the housing needs of all economic
segments of the community;
(2) To facilitate inhabitant ownership of residential units, while recognizing the
need for maintaining adequate rental housing inventories in the high-density
(3) To provide a reasonable balance of rental and ownership housing;
(4) To inform prospective conversion purchasers regarding the physical
conditions of the structures offered for purchase.
(5) To adopt mechanisms on tenant protections that would minimize
displacement, provide purchase assistance, and require tenant relocation
(6) To protect the supply of low income rental units.
(7) To upgrade existing housing stock.
SECTION 6520.12. DEFINITIONS
For the purpose of this chapter, certain words and phrases are defined and certain
provisions shall be construed as herein set forth unless it shall be apparent from their
context that a different meaning is intended.
(a) Association. "Association" is the organization of persons who own a condominium unit.
(b) Below market rate program. "Below market rate housing program" is the set of affordable
housing policies set forth in Chapter 8.5 of the Zoning Regulations.
(c) Common area. "Common area" is an entire project excepting all units therein.
(d) Condominium. "Condominium" is 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, industrial, or commercial building on such real property, such as
an apartment, office, or store. 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 of the following:
(1) An estate of inheritance or perpetual estate.
(2) An estate for life.
(3) An estate for years, such as a leasehold or subleasehold.
(e) Condominium conversion project or residential condominium conversion
project. A "condominium conversion project" or "residential condominium
conversion project" is the conversion of an existing multi-family residential structure
of four or more units to a condominium for residential purposes.
(f) Conversion. "Conversion" is a change in the type of ownership of a parcel or
parcels of land, together with the existing attached structures, to that defined for a
condominium project regardless of whether substantial improvements have been
made or are to be made to such structures.
(g) Developer. "Developer" is the owner or subdivider with a controlling proprietary
interest in the proposed project.
(h) Handicapped tenant. "Handicapped tenant" is a tenant who is the primary wage
earner of a household, or a single person, with any medically determinable physical
or mental impairment limiting his or her mobility, substantially affecting his or her
ability to obtain employment, or requiring special care facilities in the home.
"Physical or mental impairment" is an impairment that results from anatomical,
physiological, or psychological abnormalities which are demonstrable by medically
acceptable clinical or laboratory diagnostic techniques.
(i) Low income. "Low income", when used by itself or as a modifier of "tenant" or
other term, means 80% or less of the Area Median Income (AMI) as established
annually for the San Francisco Standard Metropolitan Statistical Area (SMSA) as
adjusted for household size.
(j) Moderate income. "Moderate income", when used by itself or as a modifier of
"tenant" or other term, means 90% or less of the Area Median Income (AMI) as
established annually for the San Francisco Standard Metropolitan Statistical Area
(SMSA) as adjusted for household size.
(k) Organizational documents. "Organizational documents" are the declaration of
covenants, conditions and restrictions, articles of incorporation, bylaws, and any
contracts for the maintenance, management, or operation of all or any part of a
(l) Project. "Project" is a residential condominium conversion project.
(m) Recreational open space. "Recreational open space" is open space on the project
(exclusive of the required front setback area) or outside the project area (i.e. parks)
which shall be used for leisure and recreational purposes, for the use and enjoyment
of occupants (and their visitors) of units on the project and to which such occupants
(and their visitors) shall have the right of use and enjoyment. Accessory structures
such as swimming pools, recreational buildings, and landscaped areas may be
included as open space.
(n) Senior citizen. “Senior citizen” means a person 62 years of age or older.
(o) Unit. "Unit" is the element of a residential condominium project which is not owned
in common with the owners of other condominiums in the project.
(p) Unjust eviction. "Unjust eviction" is an eviction for other than one or more of the
reasons listed in the Rent Stabilization Program Section 14.04.290 of the City of
East Palo Alto Municipal Code.
(q) Vacancy rate. "Vacancy rate" is the factor set by the City Council at the beginning
of each fiscal year which a developer must demonstrate exists or is exceeded at the
time the application for conversion is filed.
SECTION 6520.2. USE PERMIT PROCEDURE
SECTION 6520.21. CONDITIONAL USE PERMIT REQUIRED.
No conversion to a project shall be permitted unless and until a conditional use permit
therefor has been issued under the provisions of this title.
(a) Scope. All conversions involving a change in the type of ownership of four or more
residential rental units to condominiums are subject to the provisions of this chapter.
Nothing in this chapter shall be interpreted to exempt any conversion from the
operation of any other chapter under this title or from the requirements of any other
statute, ordinance, or regulation.
(b) Council determination of existing units. At the commencement of each fiscal
year, the City Council shall certify by resolution the base number of total rental units
existing in developments of four (4) or more units eligible for conversion into
condominiums together with a list of the addresses of such developments at the
beginning of such fiscal year. (For purposes of this article, rented units in
condominiums shall not be counted in the rental base number.) The certification
shall be done immediately after this becomes effective. A unit approved for
conversion to a condominium shall not be considered part of the "total rental units"
(as that term is used in Sec. 6520.21(b)) for subsequent fiscal years, regardless of
whether such unit is owner-occupied or rented, unless the time for filing of a final
map has expired without the filing of such final map. For purposes of this article, the
determination and certification of such number by the City Council shall be
conclusive in the absence of fraud. Applications for condominium conversion
projects shall be limited to the developments which are included in the list adopted
by the City Council at the beginning of the fiscal year.
(c) Annual Registration and Report of Vacancy Rate. After the City Council has
adopted a resolution certifying the “total rental units,” the Director of Planning of
Planning shall prepare a report to the Planning Commission on the vacancy rate of
the total rental units eligible for conversion. All rental units eligible for condominium
conversion shall submit an annual report to the Director of Planning of the number of
units and the length of time, if any, that each of the units has been vacant for the
previous twelve (12) months.
(d) Vacancy rate. No application for condominium conversion shall be accepted by the
Director of Planning unless the vacancy rate published by the California Department
of Finance for the City of East Palo Alto exceeds five (5) percent. the average
vacancy rate all the developments listed in the City Council’s resolution described in
Section 6520.21(a) is equal to or greater than 7% over a continuous period of six (6)
(e) Limitation on condominium conversions. Commencing with the 2005-2006 fiscal
year, no more rental units may be approved by the Planning Commission or City
Council for conversion to condominiums each fiscal year ?????
(e) Conformance with the number of units allowed under adopted land use
regulations. All developments that are the subject of an application for
condominium conversion shall comply with the density and number of units allowed
in the General Plan Land Use Element and the Zoning District of the Zoning
(f) Units ineligible for conversion. The following units are ineligible for conversion:
(1) Units which fall within the jurisdiction of the Rent Stabilization Program
(Chapter 14.04 of the East Palo Alto Municipal Code).
(2) Units which do not meet the requirements of the latest California Building
Standards adopted by the City of East Palo Alto.
(3) Developments that have not been listed in the resolution adopted by the City
Council at the beginning of each fiscal year certifying the base number of total
rental units existing in developments of four (4) or more units eligible for
conversion into condominiums together with a list of the addresses of such
developments or developments that have not submitted an annual report to
the Director of Planning of the number of units and the length of time, if any,
that each of the units has been vacant for the previous twelve (12) months.
SECTION 6520.22. SPECIAL NOTICING AND REPORT REQUIREMENTS.
(a) In addition to the requirements of Section 6503, notice of time, place, and purpose of any
public hearing on an application for a conditional use permit for conversion to a project shall
be given to each tenant of the proposed project hereinafter identified pursuant to the
provisions of this part. Each such notice shall be printed in English and Spanish.
(b) The Director of Planning shall mail, postage prepaid, a copy of the staff report on an
application for a conditional use permit for conversion to a project, at least five (5) days
before the date set for hearing by the Planning Commission, to each tenant of the proposed
project hereinafter identified pursuant to the provisions of this part.
(c) Notwithstanding the preceding provisions of this section, the failure of the Director of
Planning or City Clerk to mail any notice or report, or the failure of any tenant to receive the
same, shall not affect in any way whatsoever the validity of any proceedings taken under
this chapter, nor of any action or decision of the Planning Commission or City Council
made or taken in any such proceedings, nor prevent the Planning Commission or City
Council from proceeding with any hearing at the time and place set therefor.
SECTION 6520.23. APPLICATION FOR CONDITIONAL USE PERMIT.
Recognizing that the conversion of structures, which have been previously occupied, to a
project presents unique problems to present tenants and future buyers, in addition to any
requirements relating to applications for conditional use permits, the application for a
conditional use permit for a conversion to a project shall include the following information:
(a) Satisfactory evidence that, at least sixty (60) days prior to the date of filing such
application, each of the tenants of the proposed project received, pursuant to
Section 6520.41 of this chapter, written notification of intention to convert; and that,
thereafter, each person applying for rental of a unit in the proposed project, prior to
payment of any rent or deposit, received notification of intention to convert.
(b) Provision that, after the date of filing such application, each person applying for
rental of a unit in the proposed project, prior to payment of any rent or deposit, shall
receive, pursuant to Section 6520.41 of this chapter, written notification of intention
(c) A boundary map showing the location of all existing easements, structures, mature
and/or scenic trees, and other improvements upon the property.
(d) The proposed organizational documents. In addition to such covenants, conditions,
and restrictions that may be required by the department of real estate of the State of
California pursuant to Title 6 (Condominiums) of the Civil Code or other state laws or
policies, the organization documents shall provide for the following:
(1) Conveyance of units;
(2) Assignment of parking and management of common areas within the project;
(3) A proposed annual operating budget containing a reserve fund to pay major
anticipated maintenance, repair, or replacement expenses; and indicating the
association fees needed for the operating budget and the reserve fund;
(4) FHA regulatory agreement, if any;
(5) A pro forma balance sheet of the association.
(6) A provision that the annual assessments to members of the association shall
provide for penalties for late payments and reasonable attorneys' fees and
costs in the event of default by said members.
(7) Provision to allow the association to terminate the contract of any person or
organization engaged by the developer to perform management or
maintenance duties after the association assumed control of the project or
(e) A property report describing the condition and estimating the remaining useful life of
each of the following elements of each structure situate within the project proposed
for conversion: roofs, foundations, exterior paint, paved surfaces, mechanical
systems, electrical systems, plumbing systems, sewage systems, swimming pools,
sprinkler systems for landscaping, utility delivery systems, central or community
heating and air conditioning systems, fire protection systems including any
automatic sprinkler systems, alarm systems, or standpipe systems, carports,
garages and other structural elements. For any element whose useful life is less
than five (5) years, a replacement cost estimate shall be provided. Such report shall
be prepared by an appropriately licensed contractor or registered civil or structural
(f) A structural pest control report. Such report shall be prepared by a licensed
structural pest control operator pursuant to Section 8516 of the Business and
(g) A building history report including the following:
(1) The date of construction of all elements of the project.
(2) A statement of the major uses of said project since construction.
(3) The date and description of each major repair of any element since the date of
construction. For the purposes of this subsection, a "major repair" shall mean
any repair for which an expenditure of more than one thousand dollars was
(4) The date and description of each major renovation of any element since the
date of construction. For the purposes of this subsection, a "major renovation"
shall mean any renovation for which an expenditure of more than one
thousand dollars was made.
(5) Statement regarding current ownership of all improvements and underlying
(6) The name and address of each present tenant of the project.
(7) Failure to provide information required by Subsections (1) through (6),
inclusive, shall be accompanied by an affidavit, given under penalty of perjury,
setting forth in detail all efforts undertaken to discover such information and all
reasons why said information cannot be obtained.
(h) A rental history detailing the size in square footage and number of bedrooms, the
current or last rental rate, the monthly rental rate for the preceding two years, and
the monthly vacancy over the preceding two years of each rental unit proposed to be
(i) A true copy of each application to the California Department of Real Estate for
issuance of a final public report for the project proposed for conversion including all
attachments and exhibits thereto required by the department pursuant to Section
11011 of the Business and Professions Code. A true copy of the statement of
compliance (form 643 as amended) pursuant to Title 10, California Administration
Code, Section 2792.9, or its successor, relating to operating and maintenance funds
during start-up. A statement whether the developer will provide any capital
contribution to the association for deferred maintenance of the common areas and, if
so, the sum and date on which the association will receive said sum.
(j) A true copy of the supplemental questionnaire for apartments converted to
condominium projects submitted to the California Department of Real Estate for the
project proposed for conversion, including all attachments and exhibits thereto.
(k) A statement or petition evidencing approval of conversion by 50% or more of the
tenants occupying units, excluding tenants of units owned by corporations or
businesses, in the building at the time of application. Only tenants whose names are
shown on the lease shall be counted in determining evidence of approval.
(l) A copy of the floor plans identifying the BMR units and tenant information of said
(m) A copy of the floor plans identifying all units that are occupied by senior citizen
tenants and handicapped tenants.
SECTION 6520.24. ADDITIONAL APPLICATION REQUIREMENTS.
The information required to be furnished pursuant to Section 6520.23 above shall be
subject to the following provisions:
(a) To the extent that such information is not available at the time of application, any
conditional use permit issued under this chapter shall require the developer to
furnish such information to the Director of Planning within ten (10) days of
submission of the same to the department of real estate.
(b) The developer shall file with the Director of Planning a true copy of any amended or
revised documents submitted to the department of real estate prior to the public
hearing before the Planning Commission or City Council on a conditional use permit
for conversion to a project. (The violation of any of the conditions of an approved
conditional use permit for conversion to a project is grounds for revocation of such
(c) The developer shall file with the City a true copy of the final public report within ten
(10) days of issuance by the department of real estate.
SECTION 6520.25. CONDITIONAL USE PERMIT FINDINGS.
To achieve the purposes of this chapter, all projects shall conform to the requirements of
this chapter and all other parts of this title applicable thereto, provided that if there is any
conflict between the provisions of this chapter and such other parts of this title, the
provisions of this chapter shall control. An application for a conditional use permit for a
project which does not comply with all of the development standards in the Zoning
Regulations as these pertain to structures and uses and to Section 6520.31 as these
pertain to condominium conversion may, but shall not under any circumstances be
required to be granted and a conditional use permit may be issued therefor if the Planning
Commission or City Council finds that:
(a) The proposed project complies with the required findings for conditional use permits
set forth in Section 6503 of the Zoning Regulations, and
(b) The proposed condominium conversion project is in substantial compliance with the
purpose of this chapter set forth in Section 6520.11; and
(c) The proposed condominium conversion will provide adequate measures to address
the needs of Senior Citizens, handicapped tenants, and BMR tenants as provided
for in this Chapter, and
(d) A conditional use permit issued under this chapter not in conformance with such
development standards, subject to such conditions as may be imposed thereon:
(1) Will provide for substantial compliance with such development standards, and
(2) Will incorporate mitigating features into the project which tend to further the
purposes of this chapter.
SECTION 6520.3. PROPERTY AND CODE REQUIREMENTS
SECTION 6520.31. DEVELOPMENT STANDARDS
Subject to the provisions of Section 6520.31, to achieve the purposes of this chapter, all
projects shall conform to the following development standards:
(a) Conversions shall be limited to residential structures or lots containing four (4) or
more existing dwelling units or apartments.
(b) All requirements for buildings and uses required in the Zoning Regulations at the
time of application for conversion.
(c) The consumption of water, gas and electricity within each unit shall be separately
metered so that the unit owner can be separately billed for each utility. A water
shut-off valve shall be provided for each unit or for each plumbing fixture.
(d) Each unit shall have its own panel board for all electrical circuits which serve the
(e) Wall and floor-ceiling assemblies shall conform to the sound insulation performance
criteria promulgated in Title 25, Chapter 1, Subchapter l, Article 4, Section 78, or its
successor, of the California Administrative Code. Required existing floor covering
may only be replaced by another floor covering that provides the same or greater
(g) The proposed property lines delineating each condominium units will consist of the
interior air space within common walls or wall separating units from each other or
from common space. The Association shall own and maintain all common walls and
(h) Each unit shall have its own separate addresses approved by the Fire Marshal and
Director of Planning. Once individual addresses have been assigned, the
Association shall install address signs visible from the public right-of-way of a design
approved by the Fire Marshal and Director of Planning.
SECTION 6520.32. PROPERTY AND STRUCTURAL PEST CONTROL REPORTS - CODE
(a) After reviewing the property and structural pest control reports required to be submitted
pursuant to Section 6520.23(f) and inspecting the structures situated within the project, the
Chief Building Official shall identify all items evidenced by such reports and/or inspection to
be hazardous to the life, health, or safety of the occupants of such structure within the
project or the general public. Each permit issued hereunder shall require all such items to
be corrected to the satisfaction of the Chief Building Official.
SECTION 6520.34. EFFECTIVENESS OF PERMIT.
A conditional use permit issued under this chapter for conversion to a project may be
issued prior to the time items have been so corrected and/or such compliance has been
made with the said codes and said fire regulations as hereinabove provided in Section
6520.32, but such permit shall not become effective unless and until such items have been
so corrected and/or such compliance has been made, and each permit shall so provide.
SECTION 6520.35. RECREATIONAL OPEN SPACE
Without limiting the generality of the provisions relating to conditions which may be
imposed on a conditional use permit issued under this title, the Planning Commission or
City Council may make any conditional use permit which may be granted under this
chapter subject to a condition requiring recreational open space in a manner and to an
extent it may deem reasonably necessary to secure the general purposes of this title. In
any event, any conditional use permit or subdivision application approved pursuant to this
chapter shall be subject to payment of park in-lieu fees. (A companion ordinance
amending Ordinance 145 will be prepared to delete exempting the conversion of structures
which are more than five (5) year old from the dedication of park land or the payment of
park in-lieu fees.)
SECTION 6520.36 BELOW MARKET RATE UNITS.
Any application for a conditional use permit to allow condominium conversion project that
is approved by the Planning Commission shall be required to provide the Below Market
Rate units (BMR) pursuant to Chapter 8.5 of the Zoning Regulations. If there are existing
BMR units in the development, the tenants of said units shall be allowed to stay in their
units subject to the current rental lease agreement until said BMR tenants voluntarily
vacate the premises. The Planning Commission shall have the discretion of imposing the
provision of Chapter 8.5 or maintaining the current BMR restrictions, whichever is more
restrictive, based on a finding that the current BMR units in the development provide
substantial compliance or are in excess of the requirements of the strict enforcement of the
provisions of Chapter 8.5 of the Zoning Regulations.
SECTION 6520.4. TENANT AND BUYER PROTECTION
SECTION 6520.41. NOTICE OF INTENTION TO CONVERT
At least sixty (60) days prior to the date of filing an application for a conditional use
permit for conversion to a project, the developer shall notify each of the tenants of the
proposed project of his intention to convert, and thereafter, the developer shall notify each
person applying for rental of a unit in the proposed project, prior to payment of any rent or
deposit, of his intention to convert. Said notice of intention to convert shall contain a
statement that the developer intends to convert the building to a project, and for that
purpose that (l) he will file an application for a conditional use permit with the City of East
Palo Alto, and (2) he has or will file an application for a final public report with the
California Department of Real Estate. Said notice shall also contain a statement of
tenants' rights, pursuant to Section 6520.43, including:
(a) Right to terminate lease or rental agreement;
(b) Limitation on increases of rent;
(c) Right of continued tenancy;
(d) Protection against unjust eviction;
(e) Protection against coercion or retaliatory action;
(f) Exclusive "right of first refusal" to purchase the unit; and
(g) "Right to quiet enjoyment" of the unit.
SECTION 6520.42. NOTICE OF PUBLIC REPORT
Within five (5) days of receipt of the final public report on the proposed project from the
California Department of Real Estate (hereinafter "final public report"), the developer shall
notify each of the tenants of the proposed project of the issuance of said report. Said
notice shall indicate that copies of said report are available on request, and shall contain a
restatement of certain tenants' rights, pursuant to Section 6520.43, including:
(a) Right of continued tenancy.
(b) Exclusive "right of first refusal" to purchase the unit, and
(c) "Right to quiet enjoyment" of the unit.
SECTION 6520.43. TENANTS’ RIGHTS
From the date of issuance of a notice of intention to convert, pursuant to Section 6520.41,
until the date indicated, if applicable, each tenant of a proposed project shall have the
following rights with respect to his or her rental unit:
(a) The right to terminate a lease or rental agreement, without penalty, upon thirty (30)
days' notice to the landlord.
(b) Notwithstanding the provisions of Chapter of Title of this Code, no increase in
rent until termination of a lease or rental agreement pursuant to Subdivision A, or
until twelve (12) months after the date of such issuance, whichever comes first.
(c) The right of continued tenancy until 180 days after issuance of the final public report
or expiration of the tenant's lease or rental agreement, whichever is longer, and then
only upon thirty (30) days' notice to vacate. For senior citizen tenants, the right of
continued tenancy shall be at least one (1) year.
(d) No unjust eviction during tenancy.
(e) No coercion or retaliatory action against any such tenant, including pressure to
support, or refrain from opposing, a project.
(f) An irrevocable, nontransferable preemptive right (i.e., "right of first refusal") to
purchase the unit at a price no greater than the price offered to the general public for
such unit or comparable unit, if such tenant is not in default under the terms of his or
her lease or rental agreement, until 90 days after issuance of the final public report.
(g) No remodeling of the interior of such unit to prepare it for sale (i.e. "right to quiet
enjoyment") until 150 days after issuance of the final public report.
(h) Notwithstanding the foregoing, a tenant occupying a “below market unit,” a senior
citizen tenant or handicapped tenant shall be entitled to continue his or her tenancy
until voluntarily terminating his/her tenancy.
SECTION 6520.44. RELOCATION AND PURCHASE ASSISTANCE
Without limiting the generality of the provisions relating to conditions which may be
imposed on a conditional use permit under this title, the Planning Commission or the City
Council may shall make any conditional use permit which may be granted under this
chapter subject to a condition requiring a plan of relocation and purchase assistance for
tenants of a proposed project. Such a plan may shall include the following provisions:
(a) Relocation assistance including, but not limited to, active assistance in securing
comparable replacement housing for tenants who will be displaced, and a payment
to each household for displacement costs.
(b) A rental assistance payment to displaced tenants of a project equal to the difference
between the pre-conversion rent and that of a comparable replacement unit for up to
twenty-four (24) months to mitigate any rent increase due to relocation.
(c) The developer may shall provide relocation assistance, rental assistance, or offer of
continuing tenancy beyond the conversion into condominiums or other types of
incentives for Senior Citizens. The Planning Commission shall consider such
incentives and may approve, deny, revise or impose conditions of approval on the
application for conversion to ensure that Senior Citizens are protected from
displacement, increase rental rates, and other possible negative impacts of the
(d) Tenant Assistance Program. The developer shall assist a ‘below market rate’ program
tenant with the purchase in fee of the unit he/she/they occupy, including but not limited to
the following extent:
(1) Providing down payment assistance, either directly or through other sources;
(2) Carrying subordinated deeds of trust at prime interest rates.
(3) Such other assistance so as to enable a tenant to purchase fee title to his/her/their
unit while maintaining income level(s) required under the ‘below market rate’
program. The Planning Commission shall review a developer’s proposed tenant
assistance program on a case by case basis to determine whether such program
meets the purpose of this section.
SECTION 6520.45. DOCUMENTS FURNISHED TO PROSPECTIVE PURCHASERS
The developer shall furnish each prospective purchaser of a unit within a project a true
copy of the conditional use permit issued under this chapter and each of the following
(a) The property report.
(b) The structural pest control report.
(c) The building history report excluding, however, items (f) and (g) thereof.
(d) Statement of compliance (form 643) pursuant to Title 10, California Administrative
Code, Section 2792.9, or its successor, relating to operating and maintenance funds
(e) The proposed annual operating budget of the association indicating a reserve fund
to pay major anticipated maintenance, repair, and replacement expenses, and the
association fees needed for the operating budget and the reserve fund.
SECTION 6520.46. CAPITAL CONTRIBUTIONS AND WARRANTIES
Without limiting the generality of the provisions relating to conditions which may be
imposed on a conditional use permit under this title, the Planning Commission or City
Council may make any conditional use permit which may be granted under this chapter
subject to conditions requiring the following:
(a) A capital contribution provided by the developer to the association for the deferred
maintenance of the common area, and the deferred maintenance or replacement of
any of the elements described in the property report, pursuant to Section 6520.23
(e), which are owned or maintained by the association. The information available
pursuant to said Section 6520.23(e) regarding the estimated replacement cost of
those elements whose useful life is less than five (5) years may be used in
determining the amount of such contribution.
(b) A one-year warranty provided free of charge by the developer to the association for
those systems described in the property report, pursuant to Section 6520.23(e)
which are owned or maintained by the association. (Such warranty need not cover
those systems which may be covered by a substantial capital contribution by the
developer for deferred maintenance.)
(c) A one-year warranty provided free of charge by the developer to the first purchaser
of each unit on any dishwashers, garbage disposals, stoves, refrigerators, hot water
tanks, heating systems, and air conditioners provided therein as of the close of
SECTION 6520.47. NONDISCRIMINATION
Neither the developer, any agents, or assignees shall discriminate in the sale, or in the
terms and conditions of sale of any unit against or segregation of any person or any group
of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation,
marital status, ancestry or national origin in the sale, transfer, use, occupancy, tenure, or
enjoyment of the condominium, nor shall the owner / developer or any person claiming
under or through the owner / developer establishes or permits any such practice or
practices of discrimination or segregation with reference to the use, occupancy, or transfer
of the condominium. The foregoing covenant shall run with the structure / land. This
nondiscrimination provision shall be included in the conditions, covenants, and restrictions
for the project.
SECTION 6520.5. OTHER PROVISIONS
SECTION 6520.51. AFFORDABLE HOUSING FEE REQUIREMENTS
(a) Any conversion of rental housing pursuant to this chapter shall be subject to the payment of
an affordable housing fee. The fee shall be 10% of the sales price of the condominium unit
at the close of escrow.
(b) The affordable housing fee for conversion of a rental unit shall be based on a sales price
that is no lower than 90% of the appraised value of the unit as a condominium at the time of
conversion. If units are sold at prices below this level, the affordable housing fee must be
paid in the same amount as if the unit were sold at 90% of current appraised value.
(c) All of the sums collected pursuant to this section shall be placed in the housing trust fund of
the City and shall be used solely to finance needed permanently affordable low and
moderate income housing to help meet the City's housing element goals and policies.
(d) An appropriate document or documents, in a form required by the City, indicating the
amount of the portion of the affordable housing fee attributable to each unit, and which is
owed to the City, shall be executed and recorded with the County Recorder. Such
documents shall indicate a lien in favor of the City in an amount equal to the affordable
housing fee for that unit. Upon payment to the City of the fee amount, a release of the lien
shall be filed by the City with respect to each unit for which the fee has been paid.
SECTION 6520.52. APPEALS
Any appeal from a Planning Commission decision pertaining to a Use Permit issued under
this chapter shall follow the appeal procedure as set forth in Section 6581.2 of this