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HomeMy WebLinkAbout5/6/2015 - STAFF REPORTS - 3.B. �O,P A L M Sp4 a V N R W CITY COUNCIL STAFF REPORT DATE: MAY 6, 2015 LEGISLATIVE SUBJECT: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE TITLE OF TITLE 9 OF, AND AMENDING SECTIONS 9.61,010, 9,61.020, 9.61.030, AND 9.62.020 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO SUBDIVISIONS OF LAND AND CONDOMINIUM CONVERSIONS. FROM: David H. Ready, City Manager BY: Douglas Holland, City Attorney SUMMARY This Ordinance amends provisions of the City's Municipal Code to provide regulations regarding conversion of apartments to condominiums, including the provision of relocation expenses to eligible and special tenants displaced as a result of the conversion of rental units to ownership property. RECOMMENDATION: 1. Waive text and introduce for first reading an Ordinance of the City Council "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE TITLE OF TITLE 9 OF, AND AMENDING SECTIONS 9.61.010, 9.61.020, 9.61.030, AND 9.62.020 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO SUBDIVISIONS OF LAND AND CONDOMINIUM CONVERSIONS." Discussion On February 18, 2015, the City Council reviewed materials related to various approaches for the provision of relocation assistance to persons or families displaced as a result of converting apartments to condominiums. The City Council designated Mayor Pougnet and Councilmember Lewin as a subcommittee to recommend an approach. The proposed ordinance reflects the subcommittee's recommendations. ITEM NO. Condominium Conversion Ordinance May 6, 2015 Page 2 The proposed ordinance recognizes that tenants who reside in apartments subject to conversion from rental occupancy to ownership occupancy can be adversely affected by this conversion. State law requires that tenants are afforded an exclusive right to purchase their units. Most tenants are not able or are unwilling to purchase, however, and are therefore required to vacate their rental units. This ordinance requires the developer to provide tenant assistance payments to who reside in projects subject to conversion to condominiums. The basic benefit is a payment in the amount of two month's rent. (One month's rent is defined as the highest month's rent during the 24 months immediately preceding notice of the conversion or the period between the notice of conversion and the notice of exclusive right to purchase the unit.) The ordinance also recognizes that there may be circumstances where the conversion may have a greater impact on certain groups of tenants. The ordinance therefore recognizes certain special tenant needs: Elderly, Handicapped, and Low Income. An elderly or handicapped tenant would receive 3 months rent as tenant assistance; a low income tenant would also receive 3 months rent; and a low income, elderly, and handicapped tenant or tenants residing in an apartment would receive a total of 4 months rent as tenant assistance. Payments will be made by the subdivider, owner, or developer of the project and will be based on individual leases and the occupancy of each unit. The ordinance prohibits rent increases during the pendency of an application for a conversion. The ordinance also provides that tenants must be given at least 90 days' notice to vacate after approval of the tentative map (Special Tenants will have 120 days), expiration of the tenant's lease, or recordation of the final subdivision map, whichever is longest. The Ordinance also cleans up a few provisions of the existing Code, including the title of the Title of these overall provisions, changing "Planning" to "Subdivision of Land" which correctly labels the contents of this portion of the Code. In addition, the City's regulations relating to "Mergers" are currently contained in a definition section. The Ordinance relocates these provisions to a separate Section within an appropriate regulatory framework in the Code so it can be more easily located by any owner of property who may wish to use such provisions. Environmental Review Staff has reviewed the proposed amendment to the Palm Springs Municipal Code and determined that it can be seen with certainty that there is no possibility that the proposed ordinance may have a significant adverse effect on the environment. Therefore, consideration and approval of the ordinance is not subject to the California Environmental Quality Act (CEQA), and no further study is needed. (Refer to 15061(b)(3) of the CEQA Guidelines.) 002 Condominium Conversion Ordinance May 6, 2015 Page 3 Fiscal Analysis No significant change to City revenue or expenditures is expected as a result of adoptin a roposed ordinance. Doug] Lqolland, City Attorney David M. Ready, City Ma Attachment: Proposed Ordinance 003 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE TITLE OF TITLE 9 OF, AND AMENDING SECTIONS 9.61.010, 9.61.020, 9.61.030, AND 9.62.020 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO SUBDIVISIONS OF LAND AND CONDOMINIUM CONVERSIONS. City Aftorney Summary This Ordinance amends provisions of the City's Subdivision of Land ordinances to provide regulations regarding conversion of apartments to condominiums, including the provision of tenant assistance payments for eligible and special tenants. The City Council of the City of Palm Springs, California, ordains: SECTION 1. The title of Title 9 of the Palm Springs Municipal Code is amended to read: "Subdivision of Land." SECTION 2. Section 9.61.010 of the Palm Springs Municipal Code is amended to read: 9.61.010 Definitions Generally. Whenever any words or phrases as used in this Title are not defined in this Chapter or in the City's Zoning Ordinance, but are defined in the Subdivision Map Act of the State as last amended, such definitions are incorporated in this Title and shall be deemed to apply as though fully set forth in this Title. SECTION 3. Section 9.61.020 of the Palm Springs Municipal Code is amended to read: 9.61.020 Specific Definitions. As used in this Title, unless a different meaning is apparent from the context or is specified elsewhere in the Code: "Advisory Agency" means: (a) The Planning Commission shall be the advisory agency for all purposes concerning maps. (b) The Director of Planning Services shall be the advisory agency for all purposes concerning lot line adjustments. "Apartment" means a residential unit in a multiple family development of seven (7) or more dwelling units where each unit is rented or leased for occupancy as a residence for one individual or family. 004 Ordinance No. _ Page 2 "Community apartment" means a residential unit in a multiple dwelling in which an undivided interest in land coupled with the exclusive right to occupy the unit may be purchased. "Condominium" means 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 development on such real property. A condominium may include a separate interest in other portions of such real property. "Conversion" means the formal process of subdividing existing residential dwelling units into condominiums. "Eligible tenant" means an individual, group of individuals, or family residing in a particular residential dwelling unit of the subject property on the date of the mailing of the Notice of Intent to Convert. "Eligible tenant" also includes any person who rents a unit within the subject property after the mailing of the Notice of Intent to Convert and who did not receive a copy of such Notice of Intent to Convert in writing prior to execution of a rental agreement for the rental of such unit. "Month's Rent" shall be an amount equal to the highest rent paid by an eligible tenant over the twenty four month period immediately preceding notice of conversion or any month between the notice of conversion and the notice of exclusive right to purchase as provided in Subsection E of this Section, whichever amount is highest. "Notice of Intent to Convert" means the written notices required at least sixty (60) days prior to filing a tentative map pursuant to the provisions of California Government Code Sections 66452.17 (notice to prospective tenants) and 66452.18 (notice to existing tenants), as may be amended from time to time. "Special tenant" shall mean an eligible residential tenant or tenants, at least one of whom also satisfies any one of the following criteria: (a) "Elderly" means a person over the age of sixty-two; (b) "Handicapped" as defined in Section 50072 of the California Health and Safety Code as may be amended from time to time; (c) "Low Income" as defined in Section 50093 of the California Health and Safety Code, as may be amended from time to time. "Tenant Assistance Payments" means the payments of a subdivider, owner, or developer to an Eligible Tenant pursuant to the provisions of Section 9.62.020.17 of this Chapter. 005 Ordinance No. _ Page 3 SECTION 3. Section 9.61.030 of the Palm Springs Municipal Code entitled "Mergers' is renumbered as Section 9.61.175 of the Palm Springs Municipal Code. SECTION 4. Section 9.62.020 of the Palm Springs Municipal Code is amended to read: 9.62.020 Condominium Conversion. A. General Requirements. A tentative map, parcel map, or final map involving prospective conversion of one or more existing structures or parcels into a condominium, stock cooperative, or any other form of community ownership, shall be approved only if the proposed condominium use of the property will be in conformity with the general plan and such conversion conforms to any other requirements or restrictions which may be adopted by the City Council by ordinance dealing with the conversion of existing structures or parcels of land from rental units to community ownership; and further, only if any structure, parcel, or design, if newly constructed as of the date of tentative map approval, could be lawfully constructed in accordance with the applicable zoning regulations, building codes, and fire safety codes. A tentative map shall be required for all conversions including those of fewer than five units or parcels except for exceptions and exclusions set forth in the State Subdivision Map Act. B. Application. 1. The sale of any portion of real property on one lot to different owners constitutes a division of property and is subject to the provisions of the State of California Department of Real Estate, and the City's regulations for the subdivision of land and/or units. No apartment building can be divided to allow the sale of individual units to more than one buyer, without securing permission to convert the property. 2. Applications for the conversion to condominiums or similar forms of ownership shall comply with the procedures set forth in this Chapter regarding Subdivisions and with the procedures specified in this Section. C. Condominium Conversion Requirements. The conversion of apartments and community apartments to residential condominiums may be permitted only if such conversions comply with the requirements of this Section. 1. The conversion shall be consistent with the Land Use Element and Housing Element of the Palm Springs General Plan. 2. The conversion shall comply with all applicable zoning and property maintenance requirements, unless otherwise specified in this Section. D. Building Inspections. Community apartments shall be inspected by the Director of Building and Safety for building or safety violations relating to plumbing, fire, housing, electrical, earthquake, and property maintenance codes which may cause health or safety hazards to current or future occupants prior to the filing of an application for conversion and corrective work required for fire exiting, fire extinguishers, smoke 006 Ordinance No. _ Page 4 detectors, fire alarms and any other corrective work shall be completed prior to approval of the final subdivision map. Furthermore, community apartments shall be inspected prior to the initial sale of each converted living unit and a report of building deficiencies shall be provided to the prospective purchaser of the respective living unit. E. Tenant Notification. For all applications for conversion to condominiums, tenants shall be provided with notifications in compliance with applicable State Law and this Chapter, including without limitation all notices of intent to convert at least sixty (60) days prior to filing a tentative map The City Council shall not approve the final map for a subdivision to be created from the conversion of apartments and community apartments into condominium unless the subdivider, owner, or applicant has certified that each of the tenants of the proposed condominium project has been given notice of an exclusive right to contract for the purchase of their respective units upon the same terms and conditions that such units will be initially offered to the general public or terms more favorable to the tenant. The right shall run for a period of not less than ninety days for Eligible Tenants and one hundred twenty days for Special Tenants from the date of issuance of the subdivision public report pursuant to the California Business and Professions Code or from the date of the notice, whichever is later, unless the tenant gives prior written notice of the tenant's intention not to exercise such right. F. Tenant Assistance Payments. For all applications for conversion of apartments to condominiums, tenants shall be tenant assistance payments in compliance with applicable State Law and with the provisions of this Subsection. There shall be no restrictions on the use of any Tenant Assistance Payment. 1. An Eligible Tenant shall receive an amount equal to two Month's Rent. 2. An elderly or handicapped Special Tenant shall receive an amount equal to three Month's Rent. 3. A low income Special Tenant shall receive an amount equal to three Month's Rent. 4. A low income, elderly, and handicapped Special Tenant shall receive an amount equal to four Month's Rent. G. Rent Increases Prohibited. An Eligible Tenant's rent shall not be increased during the pendency of an application for a condominium conversion measured from the date of the Notice of Intent to Convert to the date of recordation of the final subdivision map or any longer period of time as may be provided by agreement between the subdivider, owner, or applicant with the Eligible Tenant. H. Vacation of Units. Each non-purchasing tenant, not in default under the obligations of the rental agreement or lease under which the subject unit is occupied, shall have not less than 90 days in the case of an Eligible Tenant and not less than 120 days in the case of a Special Tenant after the date of the tentative map approval by the 007 Ordinance No. _ Page 5 City or until the expiration of the tenant's lease or the recordation of the final subdivision map, whichever is longer to find substitute housing and to relocate. Tenants shall be permitted to terminate leases or tenancy with one month's notice at any time after the filing of a conversion application. SECTION 5. Adoption of the proposed ordinance is exempt from the provisions of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.) ("CEQA Guidelines") because the ordinance is for general policies and procedure making. The proposed ordinance will amend Title 9 of the Palm Springs Municipal Code to provide a procedure for review and approval of converting existing apartments to condominiums, thereby changing the manner of ownership of existing multiple family residential unit and will not increase densities or intensities of use. The proposed ordinance also provides certain financial assistance to displaced tenants. These amendments will not result in any direct impact to the environment. Therefore, the proposed ordinance is exempt from the provisions of CEQA and will not adversely impact the environment. SECTION 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage and Ordinance No. 1873 shall thereafter no longer be in effect. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS _ DAY OF 2015. STEPHEN P. POUGNET, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK 008 Condominium Conversion Relocation Assistance Survey City Provisions/Requirements Alhambra Requires payment of a relocation fee equaling twice the monthly rent. (AMC § 23.38.040). Fresno Requires payment of a relocation fee equal to a minimum of two months' rent. (FMC §12- 904(f)(1)). Glendale Requires payment of a relocation fee in the amount of the product of two times the amount of the fair market rent as established by the U.S. Department of housing and Urban Development' for a rental unit of similar size of what is being vacated in Los Angeles County during the year the unit is vacated, plus one thousand dollars ($1,000.00). (GMC § 9.30.035). Huntineton Beach Tenants eligible for moving expenses equal to three times the monthly rent. (HBZC § 235.10(F)). Inglewood Requires payment of actual moving and relocation costs, up to a maximum of $2,445 for "eligible" tenants, and up to $3,077 for "special" tenants (i.e., elderly, handicapped, and families with minor dependent children). (IMC§ 12-67.31). La Quinta Requires submittal of "relocation plan" that identifies specific relocation assistance provided to tenants, such as moving costs, first month's rent, security and cleaning deposits, and utility deposits. The code does not, however, prescribe mandatory relocation fees. (LQMC § 9.60.260(G)(3)(d)). Los Angeles Requires payment of a relocation fee of$5,000 to qualified tenants (i.e., disabled), and $2,000 to all other tenants. (LAMC § 47.06(B)). 'Available athttp://www.huduser.org/portal/datasets/fnr.html N,4t- uU ied 1070272.2 Condominium Conversion Relocation Assistance Survey City Provisions/Requirements Palm Desert Requires payment of (1) a relocation fee of $1,000 in 2006 dollars, escalated annually by the CPI for LA-Riverside-Orange County, to eligible tenants; and (2) an additional payment of$1,000 in 2006 dollars, escalated annually by the CPI for LA-Riverside-Orange County, to special category tenants (i.e., disabled, senior citizen, low income, or very low income individuals). (PDMC §25.34.050(G)(1)). Pasadena Requires payment of relocation fee of$500 per dwelling unit. (PMC § 16,46,050). Redondo Beach • Moving Expenses: two months' rent (furnished units); and three months' rent (unfurnished units). (RBMC §10- 2.1610(g)(3)). • Special Benefits for Aged and Handicapped Tenants: (1) actual and reasonable moving costs, in addition to (2) Payment of the not to exceed amount established by Section 7264 of the Government Code [$5,250]. Maximum benefits may not exceed $8,000. (RBMC §10-2.1610(g)(3)). San Diego Requires payment of relocation fee equaling three months' rent based on current San Diego 'fair market rent' for apartment size, as established by the U.S. Department of housing and Urban Development.2 (SDMC § 144.0505). San Jose Requires payment of relocation fee equal to the difference between the pre-conversion rent and that of a comparable replacement unit for up to twenty-four months to mitigate any rent increase due to relocation. (SJMC § 20.170.430). Available at http://www.huduser.org/portal/datasets/fnir.html 2 1070272.2 Condominium Conversion Relocation Assistance Survey City Provisions/Requirements Santa Barbara Requires payment of moving expenses equaling one and one-half times the monthly rent or $2,000, whichever is greater. (SBMC § 28.88.100). Santa Cruz Requires payment of two months' fair market value rent for a unit of comparable size, as established by the most current Federal Department of housing and Urban Development schedule of fair market rents,3 or two months of the tenant's actual rent at the time of relocation, whichever is greater, or other arrangements of equal benefit which are agreeable to the tenant as evidenced by a written agreement between the tenant and property owner. (SCMC § 21.03.020(b)). Santa Ana Requires payment of moving costs incurred up to a maximum of$2,500.00 per unit. (SAMC § 34-334(a)(5)). Santa Monica Requires payment of the following relocation fees: 2014 2014 Relocation Augmented Apartment Size Amount Amount Single or Studio $8,300 $9,500 One Bedroom $12,800 $14,750 Two or More Bedrooms $17,350 $19,950 Relocation Fee amount is adjusted for inflation annually. Augmented amount applies to senior citizens and tenants with minor children. (SMMC §4.36.040). Stockton Requires reimbursement for moving costs not to exceed one (1) month's rent. (SMC § (16.196.030(E)(1)). a Available at http://www.huduser.org/portal/datasets/finr.html 3 1070272.2 Condominium Conversion Relocation Assistance Survey City Provisions/Requirements Valleio Requires payment of relocation fee totaling $500. (VMC §16.79.050(C)). West Hollywood Requires payment of the following relocation fees: • Fees Based on Unit Size: Bachelor apartment $5,100.00 One-bedroom $7,200.00 Two-bedroom $9,700.00 Three bedroom or larger $12,800.00; OR • Qualified Tenant: If the household from which tenants are to be displaced includes a person who is 62 years of age or older, disabled, living with one or more dependent minors, terminally ill or moderate income (120% AMI) the household is entitled to $13,500; OR • Lower-Income Tenants: If the household from which tenants are to be displaced includes a lower-income person as defined by California Health and Safety Code § 50079.5, the household is entitled to $17,000. 4 1070272.2 f'A - u P 05". r7�j. J�7� S ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE TITLE OF TITLE 9 OF, AND AMENDING SECTIONS 9.61.010, 9.61.020, 9.61.030, AND 9.62.020 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO SUBDIVISIONS OF LAND AND CONDOMINIUM CONVERSIONS. City Attorney Summary This Ordinance amends provisions of the City's Subdivision of Land ordinances to provide regulations regarding conversion of apartments to condominiums, including the provision of tenant assistance payments for eligible and special tenants. The City Council of the City of Palm Springs, California, ordains: SECTION 1. The title of Title 9 of the Palm Springs Municipal Code is amended to read: "Subdivision of Land." SECTION 2. Section 9.61.010 of the Palm Springs Municipal Code is amended to read: 9.61.010 Definitions Generally. Whenever any words or phrases as used in this Title are not defined in this Chapter or in the City's Zoning Ordinance, but are defined in the Subdivision Map Act of the State as last amended, such definitions are incorporated in this Title and shall be deemed to apply as though fully set forth in this Title. SECTION 3. Section 9.61.020 of the Palm Springs Municipal Code is amended to read: 9.61.020 Specific Definitions. As used in this Title, unless a different meaning is apparent from the context or is specified elsewhere in the Code: "Advisory Agency" means: (a) The Planning Commission shall be the advisory agency for all purposes concerning maps. (b) The Director of Planning Services shall be the advisory agency for all purposes concerning lot line adjustments. "Apartment" means a residential unit in a multiple family development of seven (7) or more dwelling units where each unit is rented or leased for occupancy as a residence for one individual or family. 11Page �trn 3.e) s/4,lrs "Community apartment" means a residential unit in a multiple dwelling in which an undivided interest in land coupled with the exclusive right to occupy the unit may be purchased. "Condominium" means 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 development on such real property. A condominium may include a separate interest in other portions of such real property. "Conversion" means the formal process of subdividing existing residential dwelling units into condominiums. "Eligible tenant household" means a household consisting of an individual, group of individuals, or family residing in a particular residential dwelling unit of the subject property on the date of the mailing of the Notice of Intent to Convert. "Eligible tenant household" also includes an individual, group of individuals, or family who rents a unit within the subject property after the mailing of the Notice of Intent to Convert and who did not receive a copy of such Notice of Intent to Convert in writing prior to execution of a rental agreement for the rental of such unit. "Month's Rent" shall be an amount equal to the highest rent paid by an eligible tenant household over the twenty four month period immediately preceding notice of conversion or any month between the notice of conversion and the notice of exclusive right to purchase as provided in Subsection E of this Section, whichever amount is highest. "Notice of Intent to Convert" means the written notices required at least sixty (60) days prior to filing a tentative map pursuant to the provisions of California Government Code Sections 66452.17 (notice to prospective tenants) and 66452.18 (notice to existing tenants), as may be amended from time to time. "Special tenant household" shall mean an eligible tenant household with one or more residents who satisfy any one of the following criteria: (a) "Elderly' means a person over the age of sixty-two; (b) "Handicapped" as defined in Section 50072 of the California Health and Safety Code as may be amended from time to time; (c) "Low Income" as defined in Section 50093 of the California Health and Safety Code, as may be amended from time to time. "Tenant Assistance Payments" means the payments of a subdivider, owner, or developer to an Eligible Tenant pursuant to the provisions of Section 9.62.020.E of this Chapter. 2 1 P a g e SECTION 3. Section 9.61.030 of the Palm Springs Municipal Code entitled "Mergers" is renumbered as Section 9.61.175 of the Palm Springs Municipal Code. SECTION 4. Section 9.62.020 of the Palm Springs Municipal Code is amended to read: 9.62.020 Condominium Conversion. A. General Requirements. A tentative map, parcel map, or final map involving prospective conversion of one or more existing structures or parcels into a condominium, stock cooperative, or any other form of community ownership, shall be approved only if the proposed condominium use of the property will be in conformity with the general plan and such conversion conforms to any other requirements or restrictions which may be adopted by the City Council by ordinance dealing with the conversion of existing structures or parcels of land from rental units to community ownership; and further, only if any structure, parcel, or design, if newly constructed as of the date of tentative map approval, could be lawfully constructed in accordance with the applicable zoning regulations, building codes, and fire safety codes. A tentative map shall be required for all conversions including those of fewer than five units or parcels except for exceptions and exclusions set forth in the State Subdivision Map Act. B. Application. 1. The sale of any portion of real property on one lot to different owners constitutes a division of property and is subject to the provisions of the State of California Department of Real Estate, and the City's regulations for the subdivision of land and/or units. No apartment building can be divided to allow the sale of individual units to more than one buyer, without securing permission to convert the property. 2. Applications for the conversion to condominiums or similar forms of ownership shall comply with the procedures set forth in this Chapter regarding Subdivisions and with the procedures specified in this Section. C. Condominium Conversion Requirements. The conversion of apartments and community apartments to residential condominiums may be permitted only if such conversions comply with the requirements of this Section. 1. The conversion shall be consistent with the Land Use Element and Housing Element of the Palm Springs General Plan. 2. The conversion shall comply with all applicable zoning and property maintenance requirements, unless otherwise specified in this Section. D. Building Inspections. Community apartments shall be inspected by the Director of Building and Safety for building or safety violations relating to plumbing, fire, housing, electrical, earthquake, and property maintenance codes which may cause health or safety hazards to current or future occupants prior to the filing of an application for conversion and corrective work required for fire exiting, fire extinguishers, smoke detectors, fire alarms and any other corrective work shall be completed prior to approval 3 1 P a g e of the final subdivision map. Furthermore, community apartments shall be inspected prior to the initial sale of each converted living unit and a report of building deficiencies shall be provided to the prospective purchaser of the respective living unit. E. Tenant Notification. For all applications for conversion to condominiums, tenants shall be provided with notifications in compliance with applicable State Law and this Chapter, including without limitation all notices of intent to convert at least sixty (60) days prior to filing a tentative map The City Council shall not approve the final map for a subdivision to be created from the conversion of apartments and community apartments into condominium unless the subdivider, owner, or applicant has certified that each of the tenants of the proposed condominium project has been given notice of an exclusive right to contract for the purchase of their respective units upon the same terms and conditions that such units will be initially offered to the general public or terms more favorable to the tenant. The right shall run for a period of not less than ninety days for Eligible Tenants and one hundred twenty days for Special Tenants from the date of issuance of the subdivision public report pursuant to the California Business and Professions Code or from the date of the notice, whichever is later, unless the tenant gives prior written notice of the tenant's intention not to exercise such right. F. Tenant Assistance Payments. For all applications for conversion of apartments to condominiums, each eligible tenant household shall be paid tenant assistance payments in compliance with applicable State Law and with the provisions of this Subsection. There shall be no restrictions on the use of any Tenant Assistance Payment, including the use of such assistance to exercise the tenants' right to purchase a unit within project under conversion. 1. An eligible tenant household shall receive an amount equal to two Month's Rent. 2. A special tenant household with one elderly or handicapped resident shall receive an amount equal to three Month's Rent. 3. A low income special tenant household shall receive an amount equal to three Month's Rent. 4. A low income special tenant household with an elderly and handicapped resident or residents shall receive an amount equal to four Month's Rent. G. Rent Increases Prohibited. An Eligible Tenant household's rent shall not be increased during the pendency of an application for a condominium conversion measured from the date of the Notice of Intent to Convert to the date of recordation of the final subdivision map or any longer period of time as may be provided by agreement between the subdivider, owner, or applicant with the Eligible Tenant. H. Vacation of Units. Each non-purchasing tenant, not in default under the obligations of the rental agreement or lease under which the subject unit is occupied, shall have not less than 90 days in the case of an Eligible Tenant and not less than 120 days in the case of a Special Tenant after the date of the tentative map approval by the City or until the expiration of the tenant's lease or the recordation of the final subdivision 4 1 P a g e map, whichever is longer to find substitute housing and to relocate. Tenants shall be permitted to terminate leases or tenancy with one month's notice at any time after the filing of a conversion application. SECTION 5. Adoption of the proposed ordinance is exempt from the provisions of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.) ("CEQA Guidelines") because the ordinance is for general policies and procedure making. The proposed ordinance will amend Title 9 of the Palm Springs Municipal Code to provide a procedure for review and approval of converting existing apartments to condominiums, thereby changing the manner of ownership of existing multiple family residential unit and will not increase densities or intensities of use. The proposed ordinance also provides certain financial assistance to displaced tenants. These amendments will not result in any direct impact to the environment. Therefore, the proposed ordinance is exempt from the provisions of CEQA and will not adversely impact the environment. SECTION 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage and Ordinance No. 1873 shall thereafter no longer be in effect. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS _ DAY OF 2015. STEPHEN P. POUGNET, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK 5 1 P a g e ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE TITLE OF TITLE 9 OF, AND AMENDING SECTIONS 9.61.010, 9.61.020, 9.61.030, AND 9.62.020 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO SUBDIVISIONS OF LAND AND CONDOMINIUM CONVERSIONS. City Attomey Summary This Ordinance amends provisions of the City's Subdivision of Land ordinances to provide regulations regarding conversion of apartments to condominiums, including the provision of tenant assistance payments for eligible and special tenants. The City Council of the City of Palm Springs, California, ordains: SECTION 1. The title of Title 9 of the Palm Springs Municipal Code is amended to read: "Subdivision of Land." SECTION 2. Section 9.61.010 of the Palm Springs Municipal Code is amended to read: 9.61.010 Definitions Generally. Whenever any words or phrases as used in this Title are not defined in this Chapter or in the City's Zoning Ordinance, but are defined in the Subdivision Map Act of the State as last amended, such definitions are incorporated in this Title and shall be deemed to apply as though fully set forth in this Title. SECTION 3. Section 9.61.020 of the Palm Springs Municipal Code is amended to read: 9.61.020 Specific Definitions. As used in this Title, unless a different meaning is apparent from the context or is specified elsewhere in the Code: "Advisory Agency" means: (a) The Planning Commission shall be the advisory agency for all purposes concerning maps. (b) The Director of Planning Services shall be the advisory agency for all purposes concerning lot line adjustments. "Apartment" means a residential unit in a multiple family development of seven (7) or more dwelling units where each unit is rented or leased for occupancy as a residence for one individual or family. 11Page "Community apartment" means a residential unit in a multiple dwelling in which an undivided interest in land coupled with the exclusive right to occupy the unit may be purchased. "Condominium" means 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 development on such real property. A condominium may include a separate interest in other portions of such real property. "Conversion" means the formal process of subdividing existing residential dwelling units into condominiums. "Eligible tenant household" means a household consisting of an individual, group of individuals, or family residing in a particular residential dwelling unit of the subject property on the date of the mailing of the Notice of Intent to Convert. "Eligible tenant household" also includes an individual, group of individuals, or family who rents a unit within the subject property after the mailing of the Notice of Intent to Convert and who did not receive a copy of such Notice of Intent to Convert in writing prior to execution of a rental agreement for the rental of such unit. "Month's Rent" shall be an amount equal to the highest rent paid by an eligible tenant household over the twenty four month period immediately preceding notice of conversion or any month between the notice of conversion and the notice of exclusive right to purchase as provided in Subsection E of this Section, whichever amount is highest. "Notice of Intent to Convert" means the written notices required at least sixty (60) days prior to filing a tentative map pursuant to the provisions of California Government Code Sections 66452.17 (notice to prospective tenants) and 66452.18 (notice to existing tenants), as may be amended from time to time. "Special tenant household" shall mean an eligible tenant household with one or more residents who satisfy any one of the following criteria: (a) "Elderly' means a person over the age of sixty-two; (b) "Handicapped" as defined in Section 50072 of the California Health and Safety as may be amended from time to time Y (c) "Low Income" as defined in Section 50093 of the California Health and Safety Code, as may be amended from time to time. "Tenant Assistance Payments" means the payments of a subdivider, owner, or developer to an Eligible Tenant pursuant to the provisions of Section 9.62.020.F of this Chapter. 2 1 P a g e SECTION 3. Section 9.61.030 of the Palm Springs Municipal Code entitled "Mergers" is renumbered as Section 9.61.175 of the Palm Springs Municipal Code. SECTION 4. Section 9.62.020 of the Palm Springs Municipal Code is amended to read: 9.62.020 Condominium Conversion. A. General Requirements. A tentative map, parcel map, or final map involving prospective conversion of one or more existing structures or parcels into a condominium, stock cooperative, or any other form of community ownership, shall be approved only if the proposed condominium use of the property will be in conformity with the general plan and such conversion conforms to any other requirements or restrictions which may be adopted by the City Council by ordinance dealing with the conversion of existing structures or parcels of land from rental units to community ownership; and further, only if any structure, parcel, or design, if newly constructed as of the date of tentative map approval, could be lawfully constructed in accordance with the applicable zoning regulations, building codes, and fire safety codes. A tentative map shall be required for all conversions including those of fewer than five units or parcels except for exceptions and exclusions set forth in the State Subdivision Map Act. B. Application. 1. The sale of any portion of real property on one lot to different owners constitutes a division of property and is subject to the provisions of the State of California Department of Real Estate, and the City's regulations for the subdivision of land and/or units. No apartment building can be divided to allow the sale of individual units to more than one buyer, without securing permission to convert the property. 2. Applications for the conversion to condominiums or similar forms of ownership shall comply with the procedures set forth in this Chapter regarding Subdivisions and with the procedures specified in this Section. C. Condominium Conversion Requirements. The conversion of apartments and community apartments to residential condominiums may be permitted only if such conversions comply with the requirements of this Section. 1. The conversion shall be consistent with the Land Use Element and Housing Element of the Palm Springs General Plan. 2. The conversion shall comply with all applicable zoning and property maintenance requirements, unless otherwise specified in this Section. D. Building Inspections. Community apartments shall be inspected by the Director of Building and Safety for building or safety violations relating to plumbing, fire, housing, electrical, earthquake, and property maintenance codes which may cause health or safety hazards to current or future occupants prior to the filing of an application for conversion and corrective work required for fire exiting, fire extinguishers, smoke detectors, fire alarms and any other corrective work shall be completed prior to approval 3 1 P a g e of the final subdivision map. Furthermore, community apartments shall be inspected prior to the initial sale of each converted living unit and a report of building deficiencies shall be provided to the prospective purchaser of the respective living unit. E. Tenant Notification. For all applications for conversion to condominiums, tenants shall be provided with notifications in compliance with applicable State Law and this Chapter, including without limitation all notices of intent to convert at least sixty (60) days prior to filing a tentative map The City Council shall not approve the final map for a subdivision to be created from the conversion of apartments and community apartments into condominium unless the subdivider, owner, or applicant has certified that each of the tenants of the proposed condominium project has been given notice of an exclusive right to contract for the purchase of their respective units upon the same terms and conditions that such units will be initially offered to the general public or terms more favorable to the tenant. The right shall run for a period of not less than ninety days for Eligible Tenants and one hundred twenty days for Special Tenants from the date of issuance of the subdivision public report pursuant to the California Business and Professions Code or from the date of the notice, whichever is later, unless the tenant gives prior written notice of the tenant's intention not to exercise such right. F. Tenant Assistance Payments. For all applications for conversion of apartments to condominiums, each eligible tenant household shall be paid tenant assistance payments in compliance with applicable State Law and with the provisions of this Subsection. There shall be no restrictions on the use of any Tenant Assistance Payment, including the use of such assistance to exercise the tenants' right to purchase a unit within project under conversion. 1. An eligible tenant household shall receive an amount equal to two Month's Rent. 2. A special tenant household with one elderly or handicapped resident shall receive an amount equal to three Month's Rent. 3. A low income special tenant household shall receive an amount equal to three Month's Rent. 4. A low income special tenant household with an elderly and handicapped resident or residents shall receive an amount equal to four Month's Rent. G. Rent Increases Prohibited. An Eligible Tenant household's rent shall not be increased during the pendency of an application for a condominium conversion measured from the date of the Notice of Intent to Convert to the date of recordation of the final subdivision map or any longer period of time as may be provided by agreement between the subdivider, owner, or applicant with the Eligible Tenant. H. Vacation of Units. Each non-purchasing tenant, not in default under the obligations of the rental agreement or lease under which the subject unit is occupied, shall have not less than 90 days in the case of an Eligible Tenant and not less than 120 days in the case of a Special Tenant after the date of the tentative map approval by the City or until the expiration of the tenant's lease or the recordation of the final subdivision 4 1 P a g e map, whichever is longer to find substitute housing and to relocate. Tenants shall be permitted to terminate leases or tenancy with one month's notice at any time after the filing of a conversion application. SECTION 5. Adoption of the proposed ordinance is exempt from the provisions of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.) ("CEQA Guidelines") because the ordinance is for general policies and procedure making. The proposed ordinance will amend Title 9 of the Palm Springs Municipal Code to provide a procedure for review and approval of converting existing apartments to condominiums, thereby changing the manner of ownership of existing multiple family residential unit and will not increase densities or intensities of use. The proposed ordinance also provides certain financial assistance to displaced tenants. These amendments will not result in any direct impact to the environment. Therefore, the proposed ordinance is exempt from the provisions of CEQA and will not adversely impact the environment. SECTION 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage and Ordinance No. 1873 shall thereafter no longer be in effect. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS DAY OF 2015. STEPHEN P. POUGNET, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK 5 1 P a g e