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 CITY COUNCIL AGENDA ITEM NO. 23



Meeting Date: May 13, 2008

Subject/Title: Introduce and waive the first reading of an ordinance to approve a rezone (RZ 07-02) to add Chapter 17.740, Residential Condominium Conversions, to the Brentwood Municipal Code establishing criteria for condominium conversions of all multi-family residential projects with five (5) and more units within the City limits, and adopt a resolution that amends the City’s 2007-2008 Cost Allocation Plan and Master Fee Schedule by establishing a fee for Residential Condominium Conversions.

Prepared by: Debbie Hill, Associate Planner

Submitted by: Casey McMann, Interim Community Development Director


RECOMMENDATION
1. Introduce and waive the first reading of an ordinance approving a rezone establishing criteria for condominium conversions of all multi-family residential projects with five (5) and more units within the City limits, with the staff recommended changes detailed in the “ANALYSIS” section of this report.

2. Adopt a resolution that amends the City’s 2007-2008 Cost Allocation Plan and Master Fee Schedule by establishing a fee for Residential Condominium Conversions.

PREVIOUS ACTION
City Council approval of a General Plan amendment (GPA 05-04) establishing Policy 1.4 of the General Plan (Housing Element) in relation to condominium conversions on August 9, 2005.

PROJECT DESCRIPTION
The project consists of a City-initiated rezone (RZ 07-02) to establish a condominium conversion ordinance for the City of Brentwood. The ordinance would apply to any application for conversion of current multi-family housing of five (5) and more units within the City limits. In addition, the project includes the addition of definitions to the Municipal Code for condominiums and condominium conversions and the establishment of a fee for residential condominium conversion applications.

This ordinance would create the mechanisms for the City to ensure that these multi-family buildings will be attractively maintained should they be converted as the units could be sold to individual owners, some or all of which would be able to rent the units. Unlike an apartment complex, which has an on-site manager overseeing the project on behalf of the owner, condominium projects typically do not given that each unit is owned individually.

BACKGROUND
On August 9, 2005, the City Council approved a General Plan amendment modifying the text within the Housing Element to address residential condominium conversions and establishing a policy for the conversion of existing apartment rental units into condominium units. The actual Policy and Action Programs adopted are as follows:

POLICY 1.4 – Ensure that available multi-family rental units for Brentwood’s population include an adequate variety of choices of tenure, price, unit sizes, amenities, and location of housing in the community and maintain an adequate supply of rental housing available to low- and moderate-income persons. Minimize displacement of tenants, particularly seniors, disabled, and low- and moderate-income residents, in rental apartments and encourage ownership of lower-cost residential units by prior renters through the regulation of condominium conversions.

Action Programs: 1.4.1 – Condominium Conversion Ordinance: Adopt a condominium conversion ordinance to regulate conversions of multi-family units and to mitigate tenant displacement and minimize displacement of seniors, disabled, and low- and moderate-income residents. Require moving assistance and other means to minimize hardship of persons displaced by condominium conversions.

1.4.2 – Monitoring of Rental Unit Opportunities: Adopt findings as part of a condominium conversion unit requiring that a proposed conversion would not result in a disproportionate balance of available rental housing with a variety of choices in tenure, price, unit sizes, amenities, and location in the community.

To implement the above policy, the City has initiated a rezone in order to insert the required text into the Municipal Code.

Land Use and Development Committee
To ascertain whether or not the direction staff was taking with the ordinance reflected the intent of the City Council, a draft was brought before the Committee at their June 21, 2007, meeting. The Committee expressed overall support for the ordinance, yet indicated that certain sections pertaining to tenant rights seemed overly burdensome for developers and others seeking to convert units. Staff was directed to amend the ordinance to modify, and in some cases, eliminate these requirements.

The Committee again reviewed and made a few additional changes at two subsequent meetings on July 19, 2007, and August 15, 2007, and ultimately recommended at their September 20, 2007, meeting that the attached version be forwarded for presentation to the Planning Commission.

Planning Commission Recommendation
Staff presented the draft ordinance reviewed by the Land Use and Development Committee at a public hearing before the Planning Commission on November 20, 2007. At that meeting, the Commission directed that staff review the following issues and make modifications to the ordinance:

1. Whether or not conversions should be brought into compliance with current building codes.
2. The number of laundry facilities required.
3. Copies of management documents submitted to the California Department of Real Estate.
4. Sales price restrictions.
5. Tenant relocation and assistance provisions.
6. Rent increase restrictions.
7. Establishing funding levels for the Homeowners Association.
8. Restriction on the number of days a tenant can exercise their right of first refusal to purchase a unit.
9. How the ordinance will handle tenant leases.

See attached Planning Commission Staff Report dated February 19, 2008, for details on modifications made to the ordinance regarding the above items.

On February 19, 2008, the Planning Commission held an additional public hearing on the ordinance, which had been revised to incorporate the earlier changes requested by the Commission. The Commission recommended that it be approved with the following additional changes, as well as a few other minor modifications:

1. The inclusion of language requiring a minimum one-hour firewall between the units.
2. The removal of the requirement that conversions offer special two- or three-year leases for seniors, disabled, and very low-, low- or moderate-income tenants.
3. The inclusion of language requiring that all condominium conversions maintain a 20% owner-occupancy rate.

ANALYSIS

Staff Recommendation
The attached draft ordinance includes the Planning Commission recommendation requiring the construction of a one-hour firewall between the units. However, the changes relating to the special two- or three-year leases for seniors, disabled and low-income tenants as well as the 20% minimum owner-occupancy rate for conversions represent a substantial deviation from the document reviewed by the Land Use and Development Committee and are not included in the draft ordinance due to the following concerns:

1. Although the 20% owner-occupancy requirement can be accommodated by the inclusion of language requiring deed restrictions on 20% of the units, this requirement will be difficult, if not impossible, to monitor and enforce. This would place a potentially significant burden on the City to monitor this requirement.

2. A previous version of the ordinance reviewed by the Land Use and Development Committee had included language requiring monetary moving assistance for seniors, disabled, very-low, low- and moderate-income tenants, but was eliminated. The additional elimination of the language requiring special two- or three-year leases for these special tenants, Section 17.740.070 Tenant Provisions, raises the concern that the ordinance is no longer consistent with the General Plan policy in regard to minimizing displacement of these tenants.

Residential Condominium Conversion Application Fee
In order to determine the administrative cost involved in processing applications for residential condominium conversions, staff has prepared a list of the staff positions that would review and approve the applications, as well as the hourly billing rate for each of the positions, and is recommending that the fee be set at $8387.18, as described in Exhibit “A” to the attached resolution. This fee shall then be automatically adjusted on July 1st of each year by an amount equal to the percentage of increase in the Consumer Price Index for this region, as last computed before July 1st. The City’s goal is that all City services are covered by the applicable fees that are established for them.

ENVIRONMENTAL DETERMINATION
The proposed project consists of a rezone which will establish a new chapter within the Municipal Code for condominium conversions. At the time of processing the General Plan amendment to establish the General Plan policy for condominium conversions within the Housing Element, staff prepared a negative declaration which was approved by the City Council at their August 9, 2005, meeting. The proposed rezone establishing the condominium conversion chapter of the Municipal Code will not result in any additional environmental impacts, therefore, no further environmental review is required at this time.

FISCAL IMPACT
None. The adoption of the ordinance by itself will not create any fiscal impact to the City. While it is difficult to estimate future revenues from this fee adoption as fees are dependent upon future development, any additional expenses are included in the 2007/2008 operating budget.

Attachments:
1. Draft Residential Condominium Conversion Ordinance
2. Resolution establishing a residential condominium conversion application fee
3. February 19, 2008, Planning Commission Staff Report
4. Planning Commission minutes for the meeting of November 20, 2007
5. Planning Commission minutes for the meeting of February 19, 2008


CITY COUNCIL ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING A REZONE (RZ 07-020) ADDING CHAPTER 17.740, RESIDENTIAL CONDOMINIUM CONVERSIONS, TO THE BRENTWOOD MUNICIPAL CODE ESTABLISHING CRITERIA FOR CONDOMINIUM CONVERSIONS OF ALL MULTI-FAMILY RESIDENTIAL PROJECTS OVER FOUR UNITS WITHIN THE CITY LIMITS.

WHEREAS, the City has initiated a rezone to establish a condominium conversion ordinance within the Brentwood Municipal Code; and

WHEREAS, the City Council adopted General Plan Policy 1.4 (GPA 05-04) along with its associated action programs in regard to condominium conversions on August 9, 2005, by Resolution No. 2005-200; and

WHEREAS, adoption of this ordinance will result in implementation of Action Programs 1.4.1 and 1.4.2 for General Plan Policy 1.4; and

WHEREAS, the Land Use and Development Committee reviewed the ordinance at their meetings of June 21, 2007, July 19, 2007, Aug7ust 15, 2007 and September 20, 2007, and forwarded their approval recommendation to the Planning Commission; and

WHEREAS, on February 19, 2008, the Planning Commission conducted a duly noticed public hearing, considered public comments and passed Resolution No. 07-076 which recommended the City Council approve the rezone establishing criteria for condominium conversions of all multi-family residential projects over four units within the City limits; and

WHEREAS, the proposed project consists of a rezone for which a previous General Plan amendment has been approved with no expansion of any development proposed, and a negative declaration was prepared for the project and approved by the City Council on August 9, 2005; therefore, no further environmental review is required at this time; and

WHEREAS, a Notice of Public Hearing was published in the Brentwood Press on April 11, 2008, in accordance with City policies and Government Code Section 65090; and

WHEREAS, the City Council held a public hearing related to the proposed request on April 22, 2008, considered the staff report, environmental documentation, supporting documents, public testimony and all appropriate information that has been submitted with the proposed zoning amendment.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood:

A. Hereby finds that:

1. The proposed rezone has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act.

2. On the basis of the whole record before it, there is no substantial evidence that this project will have a significant effect on the environment.

3. The proposed zoning amendment is consistent with the City’s General Plan, specifically Policy 1.4, as it implements Action Programs 1.4.1 and 1.4.2 in regard to condominium conversions.

4. The proposed zoning amendment implements General Plan Policy 1.4 of the Housing Element in regard to condominium conversions.

5. The proposed zoning amendment specifically implements Action Program 1.4.1 of the General Plan Housing Element.

B. Hereby amends Chapter 17.030, Definitions, of the Brentwood Municipal Code by adding the following definitions:

Condominium: A “Condominium” is defined, in accordance with Civil Code Section 783, to be 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.

Condominium Conversion, Residential: A condominium conversion means the conversion or subdivision of a single ownership parcel of existing improved residential real property typically containing five or more units, or of an existing mobile home park, into a form of ownership for residential purposes involving the right of exclusive occupancy or separate ownership of individual units or mobile home spaces, including, but not limited to condominiums, community apartments, stock cooperatives or townhouses.

C. Hereby approves Rezone No. 07-02, establishing Chapter 17.740, Residential Condominium Conversions, within the Brentwood Municipal Code, as reflected below:



CHAPTER 17.740
RESIDENTIAL CONDOMINIUM CONVERSIONS

17.740.010 TITLE AND PURPOSE OF PROVISIONS
17.740.020 APPLICABILITY OF PROVISIONS
17.740.030 DEFINITIONS
17.740.040 APPLICATION REQUIREMENTS
17.740.050 PROCEDURES
17.740.060 STANDARDS FOR CONDOMINIUM CONVERSION
17.740.070 TENANT PROVISIONS
17.740.080 EFFECT OF PROPOSED CONVERSION ON THE CITY’S VERY-LOW, LOW AND MODERATE INCOME HOUSING SUPPLY
17.740.090 LIMITATION
17.740.100 FINDINGS



17.740.010 TITLE AND PURPOSE OF PROVISIONS

A. The provisions of Chapter 17.740 shall be known as the “Residential Condominium Conversions” regulations of this title.

B. The purposes of the Residential Condominium Conversions regulations are as follows:

1. To establish criteria for the conversion of existing multiple-family rental housing to a condominium;

2. To promote the concept of home ownership and increase the amount of owner-occupied housing affordable by all economic segments of the community;

3. To ensure that converted housing achieves a high degree of appearance, quality, and safety and is consistent with the goals of the City;

4. To provide a reasonable balance of ownership and rental housing and a variety of choices of tenure, type, price and location of housing;

5. To maintain a supply of rental housing for very-low, low and moderate income persons;

6. To reduce the impact of conversion on residents in rental housing who may be required to relocate due to the conversion of apartments to condominiums by providing procedures for notification and adequate time and assistance for such relocation; and

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

17.740.020 APPLICABILITY OF PROVISIONS

The provisions of this chapter shall be applicable to the conversion or subdivision of a single ownership parcel of existing improved residential real property typically containing five or more units, or of an existing mobile home park, into a form of ownership for residential purposes involving the right of exclusive occupancy or separate ownership of individual units or mobile home spaces, including, but not limited to condominiums, community apartments, or stock cooperatives.

17.740.030 DEFINITIONS

For purposes of this Chapter, unless otherwise apparent from the context, certain words and phrases used in this Chapter are defined in Chapter 17.030, Definitions.

17.740.040 APPLICATION REQUIREMENTS

In addition to the other subdivision requirements and procedures, a conversion is subject to the requirements of this chapter. An application for approval of a tentative map for the condominium subdivision shall be accompanied by the following items:

A. Physical Elements Report. A report on the physical elements of each structure and facility, which shall include, but not be limited to, the following:

1. A report detailing the condition of each element of the property, including foundation, electrical, plumbing, utilities, walls, ceilings, windows, recreational facilities, sound transmission of each building, mechanical equipment, parking facilities, and appliances prepared by a qualified California-licensed professional approved by the City. Regarding each element, the report shall state to the best knowledge or estimate of the applicant when the element was constructed or installed, when the element was last replaced, the approximate date upon which the element will require replacement, the cost of replacing the element, and any variation of the physical condition of the element from the zoning and building code in effect on the date that the last building permit was issued for the structure. The report shall identify each known defective or unsafe element and set forth the proposed corrective measures to be employed;

2. A report from a licensed structural pest control operator, approved by the City, on each structure and each unit within the structure;

3. A report on the condition of the common area improvements, including landscaping, lighting, utilities and streets;

4. A report on any known soil and geological conditions regarding soil deposits, rock formation, faults, groundwater and landslides in the vicinity of the project, and a statement regarding any known evidence of soils problems relating to the structure prepared by a California-licensed soils engineer approved by the City. Reference shall be made to any previous soils report for the site and a copy submitted with the report; and

5. A statement of repairs and improvements to be made by the subdivider necessary to refurbish and restore the project to achieve a high degree of appearance, quality and safety.

B. Site Plan. A site plan of the project, including the location and sizes of structures, parking layout (covered, uncovered, and guest) and access areas, sewer, water and storm drains, trash enclosures, easements and any other information required by the City.

C. Development Plans. Scaled development plans showing typical floor plans and building elevations. If the subdivider intends to make any modifications to the exterior elevations or to the project site, a design review application shall be proposed and processed concurrently with the tentative map application.

D. Landscape Plan. A landscape plan of the project including the location of all existing trees and shrubs and other landscape features on the project site. This plan shall be accompanied by evaluations by a registered landscape architect and certified arborist in the State of California to insure that trees, shrubs, and groundcovers are thriving, are not at the end of life maturity, are pruned properly, are not tripping hazards by uplifting foundations or walkways, or have invasive plant materials that need to be addressed. A water audit shall be conducted by an irrigation consultant and accompany these evaluation reports.

E. CC&Rs. A declaration of covenants, conditions and restrictions which would be recorded and would apply to each owner of a condominium unit within the project. The declaration shall include, but not be limited to, pertinent information regarding the conveyance of units and the assignment of parking, an agreement for common area maintenance, including common sewer, water and electrical lines, facilities and landscaping, together with an estimate of any initial assessment fees anticipated for maintenance, a plan for equitable sharing of communal water metering, description of a provision for maintenance of all vehicular access areas within the project, a requirement that all assigned parking areas including garages remain clear of storage and available for parking of vehicles, and an indication of appropriate responsibilities for maintenance of all improvements and utility systems for each unit. The CC&Rs will provide for a manager to be responsible for maintenance and repair, with each condominium owner responsible for his pro rata share of the maintenance costs. The manager may be an owner, a third party manager designated by the owners, or a special purpose entity such as an owners’ association. The CC&R’s shall be subject to the review and approval of the Community Development Director in consultation with the City Attorney prior to recordation of the final parcel map, and shall include the following: (a) The manager shall be responsible for the maintenance of all common areas, such as landscaping, parking, and access roads, and (b) The City shall be granted the rights and remedies of the association, but not the obligation, to enforce the maintenance responsibilities of the manager. The City has the right to review and approve the CC&Rs to ensure that (1) the appropriate conditions of approval are included in them and (2) those provisions reflecting the City’s conditions of approval may not be amended without City approval.

F. Project Characteristics. Specific information concerning the characteristics of the project, including, but not limited to, the following:

1. Square footage and number of rooms in each unit;

2. Rental rate history for each type of unit for either the previous five years or since construction, whichever is less;

3. Monthly vacancy rate for each month during either the preceding two years or since construction, whichever is less;

4. Characteristics of existing tenant households, including family size, length of residence, age of tenants and whether receiving federal or state rent subsidies;

5. A list of the proposed sales prices for each unit;

6. Proposed homeowners’ association fee;

7. Estimated Lighting and Landscaping District and Park Maintenance assessments;

8. Financing available; and

9. Names and mailing address of all tenants.

When the subdivider can demonstrate that this information is not available, this requirement may be modified by the Community Development Department.

G. A signed copy from each tenant of notice of intention to convert as specified in Section 17.740.070 (A), or evidence that a certified letter of notification was sent to each tenant for whom a signed copy of the notice is not submitted.

H. Any other information which, in the opinion of the Community Development Department, will assist in determining whether the proposed project will be consistent with the purposes of this chapter.

17.740.050 PROCEDURES

A. Subdivision Procedures. Under Government Code Section 66426, a condominium conversion is treated as a subdivision subject to the provisions of the State Subdivision Map Act and this title.

B. Acceptance of Reports. The final form of the physical elements report and other documents required under Section 17.740.040 shall be as approved by the City. The reports in their accepted form shall remain on file with the Community Development Department for review by the public. They are referred to collectively in this chapter as “the reports.”

C. Copy to Buyers. The subdivider shall provide each purchaser with a copy of the reports (in their final accepted form), except the information required by Section 17.740.040 (F) and (G), before the purchaser executes an agreement to purchase a unit in the project, and the developer shall give the purchaser sufficient time to review the reports. A copy of the reports shall be made available at all times at the sales office and shall be posted at various locations, as approved by the City, at the project site. The subdivider shall provide the City with evidence of receipt of the reports by each tenant and prospective tenant.

D. Notice to Tenants and Prospective Tenants. Before tentative map approval, the Planning Commission shall hold a public hearing. In addition to all other notices required by the Subdivision Map Act and this title, the subdivider shall give notice prior to filing the tentative map to prospective tenants and tenants in the manner provided by Government Code Sections 66452.8 and 66452.9 and Section 17.740.070 below.

E. Inspection and Fees.

1. The premises to be inspected include structures, common areas, site improvements, public improvements and other related facilities. The purpose of the inspection is to develop a list of deficient conditions that may exist by reason of non-compliance with this code, and to have the deficient items refurbished and restored in accordance with Section 17.740.060.

2. Before submitting the final map, the owner shall request that an inspection of the premises be made by the Community Development Department for conformance to Section 17.740.060.

3. A project inspection shall be made by the Community Development Department and Public Works Department. A deficiency list shall be transmitted to the subdivider. All deficiencies must be corrected to the satisfaction of the City before filing of the final map or parcel map. When plans for corrective work are required, they shall be as approved by the appropriate City department listed above before filing of the final map or parcel map.

4. The City shall charge fees as set forth in a resolution by the City Council for the processing of the application. In addition, the developer shall post a cash deposit in an amount equal to the estimated cost of inspection. The deposit will be applied towards the inspection fee with any refund or balance due to be resolved before the approval of the final map by the City Council. Any balance due shall be paid before recordation of the final map.

F. Affordable Housing. A condominium conversion is subject to the affordable housing requirements in Chapter 17.725. However, if the project was required to comply with the affordable housing requirements when the project was constructed, the project shall receive a credit for: (1) the number of affordable units required at the time the project was constructed, assuming those existing affordable units remain affordable units; and (2) any fees paid in lieu of creating affordable units, as to that portion of the obligation under the then-current affordable housing requirements that may be satisfied by the payment of fees. If the current affordable housing requirements in Chapter 17.725 are higher than those originally imposed at the time of construction, the project shall abide by the current requirements and provide additional affordable units and/or payment of in-lieu fees in a manner acceptable to the City. If the current affordable housing requirements in Chapter 17.725 are lower than those originally imposed at the time of construction, the project shall maintain any existing affordable units as affordable units.

G. Submittal of Budget. Prior to final map approval, the subdivider shall provide the City with a copy of the proposed budget for maintenance and operation of common facilities including needed reserves for review and approval. The budget shall show estimated monthly costs to the owner of each unit, projected over a five (5) year period, and shall include a component inventory and analysis and reserve study financial analysis for all building components with an identified service life of less than 30 years. Such budget shall be prepared, or reviewed and analyzed, by an independent professional management firm, or other qualified entity, experienced with management of condominium complexes. The budget preparer or reviewer shall submit a statement of professional qualifications, subject to the review and approval by the City.

H. Final Information Submitted. Prior to the close of escrow for any unit, the subdivider shall submit the following information to the Community Development Department:

1. Name, address and phone number of the homeowners’ association;

2. Actual sale price of units;

3. Actual homeowner’s association fee;

4. Number of prior tenants who purchased units;

5. Number of units purchased with intent to be used as rentals; and

6. Disclosures statements to purchasers.

17.740.060 STANDARDS FOR CONDOMINIUM CONVERSION

The following standards apply to a condominium conversion. These standards must be satisfied, or security provided in a form approved by the City, before the final map is approved.

A. Eligibility. Units less than five years old are not eligible for conversion to condominiums.

B. Building Regulations. All buildings and structures shall conform to and comply with the applicable Brentwood Municipal Codes and Building Codes in effect at the time of construction, unless subsequent modifications have been approved by the Community Development Department, excepting, however, a minimum one hour fire separation shall be either in place or constructed between all units prior to any offer of sale. A code compliance inspection by the Brentwood Building Division will be required to assess code compliance. Buildings or building modifications constructed under previous versions of the Uniform Building Code will require that the developer provide a disclosure statement of this fact to any prospective purchaser of a unit.

C. Fire Prevention.

1. Fire Warning Systems. Each living unit shall be provided with a smoke alarm system conforming to the California Building Code at the time of the condominium conversion.

2. Maintenance of Fire Protection Systems. All fire hydrants, fire alarm systems, portable fire extinguishers and other fire protective appliances shall be retained in an operable condition at all times. Prior to occupancy of any dwelling unit, a fire code compliance inspection shall be performed by the Contra Costa County Fire District.

D. Sound Transmission.

1. Vibration Transmission. All permanent mechanical equipment (such as motors, compressors, pumps and compactors) which is determined by the Community Development Department to be a source of structural vibration or structural-borne noise shall be vibration isolated with inertia blocks or bases or vibration isolator springs in a manner approved by the Community Development Department.

2. Noise Standards. The structures shall conform to all interior and exterior sound transmission standards of the State Administrative Code, Title 24, and Uniform Building Code, Appendix Chapter 35. Where present standards cannot reasonably be met, the Planning Commission may require the applicant to notify potential buyers of the noise deficiency currently within the unit.

E. Utilities.

1. Each dwelling unit shall be separately metered for gas and electricity.

2. Each unit shall have a main water shutoff valve or shut-off valves on each fixture in the unit.

3. Each unit shall have its own electrical panel or access thereto for electrical circuits that serve the unit.

4. Easements for gas, sewer and electric lines shall be provided in the common ownership areas.

F. Private Storage Space. Each unit shall have a minimum of 200 cubic feet with no less than 25 square feet of enclosed weatherproofed and lockable private storage space in addition to guest, linen, pantry and clothes closets customarily provided. The space shall be provided in any location approved by the Community Development Department, but shall not be divided into two or more locations. Where the subdivider can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the Planning Commission.

G. Laundry Facilities. A laundry area shall be provided in each unit unless the Planning Commission approves a common laundry area. If a common laundry area is provided, it shall consist of not less than one automatic washer and one automatic dryer for each ten dwelling units or fraction thereof. Where the subdivider can demonstrate that this standard cannot or should not reasonably be met, this standard may be modified by the Planning Commission.

H. Landscape Maintenance. All landscaping shall be restored and/or new landscaping shall be installed to achieve a high degree of appearance and quality. Provisions shall be made for continuing maintenance of all landscaped areas. Existing and new landscaping shall be in accordance with Chapter 17.630 and is subject to review and approval by the Community Development and Parks and Recreation Departments.

I. Parking. Off-street parking shall be provided as required by the Chapter 17.620 for condominium or similar single-family residential projects.

J. Refurbishing and Restoration. Each main building, structure, fence, patio enclosure, carport, accessory building, sidewalk, driveway, landscaped area, utility, and additional elements as required by the Community Development Department shall be refurbished and restored as necessary to achieve a high degree of appearance, quality and safety. The refurbishing and restoration is subject to review and approval by the Community Development Department.

K. Disabled Persons Accessibility. Conversions of 5 or more units shall be in compliance with the disability access requirements of the State Department of Housing and Community Development. This may include the installation of an elevator.

L. Warranties. A one-year warranty shall be provided to purchasers of all units on all appliances in each unit and on all electrical, heating, air conditioning, plumbing and ventilation equipment. At such time as the homeowners’ association takes over management of the development, the developer shall provide a warranty to the association that any pool and pool equipment (filter, pumps, chlorinator) and any appliances and mechanical equipment to be owned in common by the association have a useful life of one year. Prior to final map approval, the developer shall provide the City with a copy of Warranty Insurance covering equipment and appliances pursuant to this section.

M. Reserves for Capital Maintenance Replacement. Before approval of the final map, the subdivider shall provide to the Community Development Department evidence of the establishment of a fund in the name of the homeowners’ association. The funds shall be earmarked for long-term reserves for capital and maintenance replacement and shall be equal to full funding of the budget and reserve amounts identified in the independent budget analysis described in Section 17.740.050.G or per the budget calculation approved by the Department of Real Estate, whichever is greater for a period of not less than 1 year.

N. Owner-Occupancy Deed Restrictions. A minimum of twenty percent (20%) of all the units within the project will be required to have a deed restriction which restricts occupancy of the unit to the owner. This deed restriction shall remain on these units in perpetuity. Evidence of adherence to this requirement shall be provided by the Developer to the Community Development Department prior to the close of sales for the units.

17.740.070 TENANT PROVISIONS

A. Notice of Intention. As provided in Government Code Section 66427.1(a) beginning at least 60 days before the filing of a tentative map, the subdivider shall give notice of intention to convert to each tenant and prospective new tenant, as provided in Government Code Sections 66452.8 and 66452.9. Evidence of receipt by each tenant and prospective tenant shall be submitted with the tentative map. The form of the notice shall be as approved by the Community Development Department and shall contain not less than the following:

1. The information required by Government Code Section 66452.8 or 66452.9;

2. Name and address of current owner;

3. Name and address of the proposed subdivider;

4. Approximate date on which the tentative map is proposed to be filed;

5. Approximate date on which the final map or parcel map is to be filed;

6. Approximate date on which the unit is to be vacated by non-purchasing tenants;

7. Tenant’s right of notification to vacate without penalty;

8. Relocation information;

9. Statement of no rent increases;

10. Provision for special cases, for example, senior citizens and very-low, low and moderate income tenants;

11. Return of security deposit;

12. Remodeling provisions; and

13. Other information as deemed necessary by the Community Development Department.

B. Tenant’s Right to Purchase.

1. As provided in Government Code Sections 66427.1(d) and 66459, a present tenant of a unit shall be given a nontransferable right of first refusal to purchase the unit occupied or any other available unit at a price no greater than the price offered to the general public. The tenant shall have a period of not less than 90 days from the date the tenant receives the notice to enter into a purchase agreement and provide proof of financing.

2. No application for conversion shall be approved unless there are a number of tenants who have expressed an interest in purchasing their rental unit. This intent shall be evidenced by the submittal in writing by no less than 25 percent of the tenants. Evidence of the number of tenants intending to purchase shall be submitted in writing to the City.

3. The actual offer of sale may not be extended by the subdivider to the tenant until the recordation of the Final Map or Parcel Map, and until the issuance of the State Department of Real Estate’s Final Subdivision Public Report.

C. Senior Citizens and Disabled Tenants.

1. A tenant household in residence at the time a tentative map application is deemed complete by the Community Development Department, in which the head of the household or spouse is age 62 or older or is determined to be disabled as defined within The Americans With Disabilities Act, is considered a senior citizen or disabled tenant and shall be offered a three-year lease at the time the final map is approved.

2. The annual rent increase for a senior citizen or disabled tenant with a three-year lease may not exceed the annual change in the Consumer Price Index - Urban Wage Earners and Clerical Workers for the San Francisco area as calculated from April to April. The starting rent shall be the rent at the time of tentative map application.

D. Very-Low, Low and Moderate Income Tenants.

1. A tenant household in residence at the time a tentative map application is deemed complete by the Community Development Department, which meets the income limits of the HUD Section 8 program, is considered a very-low, low or moderate income household and shall be offered, at a minimum, a two-year lease beginning at the time the final map is approved.

2. The annual rent increase for a very-low, low or moderate income tenant under this subsection shall not exceed the annual change in the Consumer Price Index - Urban Wage Earners and Clerical Workers for the San Francisco area as calculated from April to April. Starting rent shall be the rent at the time of tentative map application.

E. Tenant Relocation Assistance Plan.

1. Relocation Assistance Plan. The subdivider shall submit a tenant relocation assistance plan with the tentative map application. The plan shall include the information consistent with the provisions required under this subsection.

2. Vacation of Units.

a. Each non-purchasing tenant, not in default under the rental agreement or lease, shall have not less than 180 days from the date of receipt of notification from the subdivider of the intent to convert, or from the filing date of the final subdivision map or parcel map, whichever date is later, to find substitute housing and to relocate.

b. A non-purchasing tenant who: (i) is disabled, or (ii) has minor children in school, or (iii) is age 62 or older (whether publicly subsidized or not) and does not accept a special two- or three-year lease, living in any unit at the time a tentative map application is deemed complete by the Community Development Department , shall be given at least 180 days (or until the end of the school year for tenants with minor children in school, whichever is longer) after approval of the final map in which to find suitable housing and relocate.

3. Other Available Rentals. The subdivider shall provide each tenant not wishing to purchase a unit or not accepting a special two- or three-year lease with up-to-date information of available apartments of comparable size and price, and located within a 15-mile radius of the apartment to be converted.

4. No Increase in Rents. A tenant’s rent shall not be increased during the period between the filing of the tentative map and the tenant’s relocation or acceptance of a special two- or three-year lease, or the acceptance of a purchase agreement, or the denial or withdrawal of the map.

5. Deposits. Each security, cleaning, or other deposit made as a condition of tenancy shall be returned to the tenant before termination of tenancy, unless it is shown that damage has occurred to the unit beyond the scope of repairs ore remodeling contemplated in the conversion process, or unless the landlord is otherwise entitled to the deposit.

F. Public policy – lease provisions and evictions.

1. It shall be against the public policy embodied in this chapter to attempt to subvert its provisions by coercing the waiver of any rights or privileges created or protected herein. Any provision of a lease or rental agreement which purports to waive a tenant’s rights under this chapter or which requires prior consent to the conversion shall be null, void and unenforceable. Such acts shall be grounds for denial of the tentative map application.

2. It shall be against the public policy embodied in this chapter to evict or threaten to evict or otherwise harass any tenant because of the tenant’s refusal to consent to conversion, the tenant’s opposition to such conversion or the anticipated refusal or opposition of the tenant. Such acts shall be grounds for denial of the tentative map application.

G. Remodeling. No remodeling planned as part of conversion shall be performed in a unit still occupied by a non-purchasing tenant, without written permission. In the event a unit is occupied by a tenant obtaining a special two- or three-year lease, remodeling may occur only after the end of such lease period.

H. Notice of Public Report. As provided in Government Code Section 66427.1(a), each tenant shall receive 10 days’ written notice that an application for a public report will be or has been submitted to the Department of Real Estate, and that such report will be available on request. The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirement for service by mail.

I. Notice of Final Map Approval. As provided in Government Code 66427.1(b), each tenant shall receive written notification within 10 days of approval of a final map for the proposed conversion. The written notices to tenants required by this section shall be deemed satisfied if such notices comply with the legal requirements for service by mail.

17.740.080 EFFECT OF PROPOSED CONVERSION ON THE CITY’S VERY-LOW, LOW AND MODERATE INCOME HOUSING SUPPLY

In reviewing an application for conversion of an existing development to condominium, the Planning Commission shall consider the following:

A. Whether or not the amount and impact of the displacement of tenants, if the conversion if approved, would be detrimental to the health, safety or general welfare of the community.

B. Whether or not the existing apartment complex is serving very-low, low and moderate income households. Standard definitions of very-low, low and moderate income rents used by the federal and state governments should be used in the evaluation. Along with other factors, the City should consider:

1. The number of families on current waiting lists for assisted rental housing programs that operate in Brentwood, such as the Section 8, Section 23 and Section 236 programs; and

2. The probable income range of tenants living in existing apartments, based on the assumption that households may ordinarily be expected to pay between one-quarter and one-third of their income for housing. That income range will be compared with existing income limits for the Section 8 program to determine whether potential displaced tenants can be categorized as very-low, low or moderate income.

C. The vacancy rate and turnover rate in multiple-family rental housing in the community, and the extent to which the proposed conversion will create hardships. A conversion may be denied based upon a lack of reasonable alternative housing opportunities.

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

E. The current and historical vacancy rate in the project. In evaluation of the current vacancy level under this subsection, the increase in rental rates for each unit over the preceding five years and the average monthly vacancy rate for the project over the preceding two years shall be considered. If the Planning Commission determines that vacancies in the project have been increased or encouraged for the purpose of preparing the project for conversion, it may disapprove the tentative map.

F. Whether or not the conversion will be detrimental to the retention of very-low, low and moderate housing stock or will reduce or significantly alter the opportunity within the City for the housing of young and elderly citizens.

17.740.090 LIMITATION

In order to reduce the effect of conversions on the City’s housing supply and to minimize the displacement of tenants, the number of conversions shall be limited to no more than 5% of the City’s potentially convertible rental stock in any one calendar year except as otherwise provided in this section. Conversion applications will be processed in the order that completed applications are submitted. A proposed project that is larger than the permitted number of units in a given year, if approved, will be considered to have used the permitted number of conversions for as many future years as necessary.

The potentially convertible rental stock will be defined as follows: the number of multi-family rental units as determined by the State Department of Finance plus any new rental units constructed since the latest State calculation, minus any units which have received tentative map approval to convert since the latest State calculation.

Once the yearly limit has been reached, a project may be approved for conversion only if the Planning Commission makes one or more of the following findings:

A. The developer will provide for a significant increase in housing for very-low, low and moderate income households or senior citizen households over and above the provisions of this chapter.

B. The developer will provide for the construction of new rental housing.

C. The developer will donate an acceptable site or an acceptable amount of funds to the City for construction of new rental or senior citizen housing.

D. The need and demand for low cost home ownership to be provided for by the project will outweigh the detriment caused by further reduction of the rental stock.

17.740.100 FINDINGS

The Planning Commission may not approve an application for a residential condominium conversion unless it finds in the approving resolution that the proposed conversion meets all of the following:

A. Conforms to the requirements of this chapter;

B. Is consistent with the Brentwood General Plan and current zoning regulations;

C. For a project of five units or more, it will not cause the total amount of rental units for the current housing stock in the City to drop below 15 percent according to the most recent census information or as shown in the City’s General Plan Housing Element housing tenure statistics whichever is most current;

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

E. The conversion project is appropriate as a condominium conversion project due to its age, condition, including any proposed renovations, location or any other matters affecting its continuing viability as an ownership project;

F. The developer has complied with the tenant provisions public policy requirements and has not evicted or coerced any tenant resulting in a violation of Section 17.740.070 of this chapter;

G. The proposed condominium conversion project will not negatively impact very-low or low-income, elderly or disabled households;

H. The proposed project will not convert during the current calendar year more than 5% of the potentially convertible rental units in the City except as otherwise provided in this chapter; and

I. Vacancies in the project have not been intentionally increased for the purpose of preparing the project for conversion; and

J. Satisfies the requirements of Government Code Section 66427.1 regarding notice to tenants.



D. This Ordinance shall be published in accordance with Government Code Section 36933 by either posting or publishing the Ordinance in accordance with that law. Further, the City Clerk is directed to cause this Ordinance to be entered in the City of Brentwood Municipal Code. This Ordinance shall take effect and be in force 30 days following its adoption and, prior to the expiration of 15 days after its adoption, it shall be published once with the names of the council members voting for and against it in a newspaper of general circulation, available in the City of Brentwood.

THE FOREGOING ORDINANCE was introduced with the first reading waived at a regular meeting of the Brentwood City Council on 22nd day of April, 2008, by the following vote:


CITY COUNCIL RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD ADOPTING THE RESIDENTIAL CONDOMINIUM CONVERSION APPLICATION FEE AND AMENDING THE 2007-2008 COST ALLOCATION PLAN AND MASTER FEE SCHEDULE.

WHEREAS, the City Council has adopted an ordinance requiring a fee to be paid for processing Residential Condominium Conversion applications for all multi-family residential projects over four units within the City limits; and

WHEREAS, Government Code Sections 65104, 65909.5, 66104, and 66451.2 allow the City to establish fees to offset the City’s administrative costs in processing permits, licenses, subdivision maps and other entitlements; and

WHEREAS, Chapter 17.740 of the Brentwood Municipal Code provides for the payment of a fee in conjunction with processing Residential Condominium Conversion applications; and

WHEREAS, the Cost Allocation Plan does not currently require a fee for residential condominium conversions; and

WHEREAS, the City has prepared an analysis of the cost to review applications and collect an applicable fee for Residential Condominium Conversions required by Chapter 17.740, as described in Exhibit “A”; and

WHEREAS, the fee established herein is adopted and implemented by the City Council; and

WHEREAS, a Notice of Public Hearing was published in the Brentwood Press on April 11, 2008, in accordance with City policies and Government Code Section 65090; and

WHEREAS, the City Council held a public hearing on April 22, 2008, related to the proposed implementing ordinance and the adoption of a related fee for Residential Condominium Conversion applications, considered the staff report, environmental documentation, supporting documents, public testimony and all appropriate information that has been included with the proposed rezone.

NOW, THEREFORE, the City Council of the City of Brentwood does hereby resolve as follows:

Section 1. Findings

The City Council makes each of the following findings:

A. The purpose of the Residential Condominium Conversion application fee is based upon the data and analysis referenced herein, and there is a reasonable relationship between the use of the fee authorized by this resolution and the time spent processing applications for residential condominium conversions. The fee established herein is adopted and implemented by the Council in reliance on the analysis prepared by the City.

B. No environmental review is required for approval of this resolution as a Negative Declaration was prepared for the related rezone (RZ 07-02) in accordance with the California Environmental Quality Act (CEQA).

C. After considering the analysis set forth in Exhibit “A” describing the method to determine the Residential Condominium Conversion application fee, the Council approves and adopts the analysis and incorporates such herein.

D. The analysis set forth in Exhibit “A”, the City staff report and the testimony received during the public hearing establish that there is a reasonable relationship between the Residential Condominium Conversion application fee’s use and the type of application on which the fee is imposed.

Section 2. Definitions

For the purpose of this resolution, the terms defined in Chapter 17.740 of the Brentwood Municipal Code are incorporated by reference herein.

Section 3. Fees Imposed

A. Chapter 17.740 of the Brentwood Municipal Code sets forth the requirement to pay the applicable fee for processing Residential Condominium Conversion applications, the amount of which is set forth herein.

B. The Residential Condominium Conversion application fee shall on July 1st of each year be automatically adjusted by an amount equal to the percentage of increase in the Consumer Price index for this region, as last computed before July 1st.

1. As of the effective date of this resolution, the fee for processing a Residential Condominium Conversion application is $8387.18, as described in the attached Exhibit “A”.

2. The Residential Condominium Conversion application fee may also be adjusted if the City updates or modifies the Cost Allocation Plan and conducts a public hearing to implement a new or revised fee or fees based upon such update or modification.

3. The Residential Condominium Conversion application fee shall be determined on the basis of the fee schedule in effect at the time the application is submitted to the City for review. The fee shall be payable in full at the time the application is submitted.

Section 4. Effective Date of Fees

The fees provided for in Chapter 17.740 of the Brentwood Municipal Code shall be effective on June 23, 2008, at least sixty (60) days after the adoption of this resolution. The effective date of this resolution shall be concurrent with the effective date of the Residential Condominium Conversion implementing ordinance.

Section 5. Severability

All portions of this resolution are severable. Should any portion of this resolution be judged to be invalid and unenforceable, the remaining provisions shall be and continue to be fully effective, and the fees shall be fully effective except as to the portion that has been judged to be invalid.

Section 6. Cost Allocation Plan Amendment

The City of Brentwood 2007-2008 Cost Allocation Plan and Master Fee Schedule is hereby amended to add the Residential Condominium Conversion application fee.

PASSED AND ACCEPTED by the City Council of the City of Brentwood at its regular meeting of April 22, 2008, by the following vote:



Exhibit “A”

Residential Condominium Conversion Application Fee Implementation
Administrative Cost


Task Staff Position Assigned to Perform Task Hourly
Billing
Rate Hours
Required to
Perform
Task
Administrative
Cost
Pre-application meeting Associate Planner $129.77 1.0 $129.77
Application submittal and Fee collection Associate Planner
Administrative Assistant II $129.77
$77.66 0.25
0.25 $32.25
$19.42
Initial Planning Staff Review Associate Planner $129.77
1.0 $129.77
Review for completeness of project application Associate Planner $129.77 8.0 $1038.16
Evaluation of the site conditions Associate Planner $129.77 2.0 $259.54
Staff Review Board Planning Manager
Associate Planner $175.94
$129.77 1.0
1.0 $175.94
$129.77
Review of project submittals Associate Planner $129.77 24.0 $3114.48

Prepare notice and write staff report Associate Planner
Administrative Secretary $129.77
$87.84 16.0
2.0 $2076.32
$175.68
Staff report review Planning Manager
Principal Planner $175.94
$160.53 0.5
0.5 $87.97
$80.27
Finalize staff report Associate Planner
Administrative Secretary $129.77
$87.84 1.0
1.0 $129.77
$87.84
Planning Commission hearing Planning Manager
Associate Planner $175.94
$129.77 2.0
2.0 $351.88
$259.54
Final resolution and file clean-up Associate Planner
Administrative Secretary $129.77
$87.84 0.5
0.5 $64.89
$43.92

TOTAL $8387.18

 
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Brentwood, CA 94513
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E-mail allcouncil@brentwoodca.gov