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Oq<IFORN�P CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 18, 2015 NEW BUSINESS
SUBJECT: DISCUSSION OF POTENTIAL REGULATIONS ON THE CONVERSION
OF RENTAL HOUSING TO CONDOMINIUMS INCLUDING
RELOCATION ASSISTANCE
FROM: David H. Ready, City Manager
BY: Douglas Holland, City Attorney
SUMMARY
Councilmember Lewin requested staff review of potential options and approaches for
providing relocation assistance to persons displaced as a result of the conversion of
rental apartments to condominiums. Attached is a summary of various approaches
implemented in several cities in California for Council's reference.
RECOMMENDATION:
Direct staff as appropriate.
DISCUSSION:
Under California's Ellis Act, adopted in 1985, a city cannot compel an owner of rental
property to continue to offer his or her housing for rent. The law, however, expressly
allows a city to impose a variety of requirements on rental property owners who desire
to remove their property from the rental market. Dependent upon the proposed use of
the property after its removal from the market, typically through conversion to
condominiums, cities have enacted numerous requirements, including relocation
assistance, moving expenses, and specific notice requirements.
We have conducted a review of relocation assistance provided by various cities in the
state, including several charter cities and cities in the Coachella Valley. A summary of
the results of the survey is attached to this staff report for the Council's review and
consideration.
ITEM NO.
City Council Staff Report
February 18, 2015-- Page 2
Relocation Assistance/Condo Conversions
The survey shows that virtually each city in the survey has adopted and implemented a
program unique to itself. The variety of approaches should provide the Council with
ample examples of the various approaches that other California cities have taken in
addressing concerns regarding displacement of tenants from rental housing as a result
of the converting rental stock to condominiums. We recommend the Council review
these approaches, discuss alternatives that Council members may consider appropriate
for the City of Palm Springs, and provide appropriate direction to staff. Such direction
could include the preparation of an ordinance that introduces relocation benefits for
displaced t pnants in Palm Springs.
Dougl s Holland, City Attorney David H. Ready, Ci ger
Attachment: Condominium Conversion Relocation Assistance Survey
02
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).
Huntington 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 Ouinta 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 at http://www.huduser.org/portal/datasets/finr.html
1
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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).
2 Available at http://www.huduser.org/portal/datasets/fmr.html
2
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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)).
3 Available at http://www.huduser.org/portal/datasets/finr.htmi
3
10702712
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Condominium Conversion Relocation Assistance Survey
City Provisions/Requirements
Vallejo 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
06
Jay Thompson
From: George Zander <george.zander@egca.org>
Sent: Wednesday, February 18, 2015 1:50 PM
To: David Ready; Steve Pougnet; Chris Mills; Ginny Foat; Rick Hutcheson; Paul Lewin;Jay
Thompson
Cc: William Post;Al Franz; Newkirk, Barrett
Subject: 5135.8. DISCUSSION OF POTENTIAL REGULATIONS ON THE CONVERSION OF RENTAL
HOUSING TO CONDOMINIUMS INCLUDING RELOCATION ASSISTANCE:
Hello all: There is a discussion taking place this evening on an excellent idea to help people who loose housing
when apartments are turned into condos. This is happening here and around the country. Many cities provide
assistance for folks that fall into the group of folks. There are consequences of ignoring this, and one is certainly
the possibility of more residents in our town becoming homeless.
I wish that I could be there this evening and may come later, as I have to be part of a meeting helping school
districts implement AB 1266- the trans.-ender folks in schools protection bill....it is in La Quinta and begins at 4
so I am almost positive I cannot make it for public comments.
This is an important step for providing for all the residents.
Thank you for considering this policy.
t
Condominium Conversion Relocation Assistance Survey— Supplemental
Provisions
City Provisions/Requirements
Alhambra The subdivider must provide each tenant with a
complete and current list of available rental
units within a three mile radius of the building
being converted, which are comparable in size,
price and amenities. This list shall be provided
with the 180-day notice of tenancy termination
as required in Government Code Section
66427.1. (AMC § 23.38.040(A)(1)).
The subdivider must provide transportation to
locate available rental units for 30 consecutive
days for those without transportation, including
ambulance service, if necessary. (AMC §
23.38.040(A)(2)).
Any tenant over the age of 62, handicapped as
defined in Cal. Health & Safety Code § 50072,
disabled as defined in Section 223 of the United
States Social Security Act or residing with one
or more minor dependent children, shall be
given an additional 30 days to relocate beyond
the 180-day provision of the Government Code.
(AMC § 23.38.040(A)(3)).
Fresno Requires submittal of tenant relocation and
assistance plan, which shall include but not be
limited to the following:
(1) Lifetime leases for elderly tenants and
extended leases for student tenants, of the unit
occupied by any such tenant, at the rate in
existence at the time the final map is approved.
(2) The extent that tenants will be
reimbursed for the expenses of moving;
(3) The extent that tenants will be
individually assisted in finding replacement
housing;
(4) The extent that assistance payments will
I� �n7, �ty� be made to those tenants who are unable to find
1071033.1 a .`�. CV�"! l�\�Y11�1'U11 �\OIIA` 1��m VV 1
Condominium Conversion Relocation Assistance Survey—Supplemental
Provisions
City Provisions/Requirements
comparable replacement housing, and the
conditions of such assistance payments;
(5) The extent that long-term leases or extra
time to locate housing will be allowed to
tenants; and
(6) Any other plans of the subdivider to
provide for assistance to low-income tenants,
families with children in school, students,
elderly or handicapped tenants, or long-term
tenants. (FMC § 12-904(f)).
Glendale n/a
Huntineton Beach Tenants' Discounts. Any present tenant of any
unit at the time of an application for conversion
shall be given a nontransferable right of first
refusal to purchase the unit occupied at a
discount of the price offered to the general
public. The amount of the discount shall be
based on the longevity of each tenant, and shall
be ratified by the applicant at the time of
conversion. (HBZC § 235.10(C)).
Inglewood Tenants of the proposed condominium project
must 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, unless the tenant gives prior
written notice of his intention not to exercise
the right. (IMC§ 12-67.30).
2
1071033.1
Condominium Conversion Relocation Assistance Survey— Supplemental
Provisions
City Provisions/Requirements'
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. (LQMC §
9.60.260(G)(3)(d)).
Los Angeles The landlord shall pay a fee to the City so that a
Relocation Assistance Service Provider will:
(1) Make available to each tenant, at no cost,
a reasonably complete and current list of vacant
and available rental units which are comparable
as to size and amenities to the unit occupied by
the tenant, and
(2) Make a reasonable and good faith effort
to assure that tenants without cars are driven, at
no cost, and tenants with cars are assisted, in
order to inspect replacement rental units, and
(3) Hire an ambulance or similar vehicle, at
no cost to the tenant, and otherwise take
reasonable steps to assist any disabled or
handicapped tenant with relocation-related
activities. (LAMC § 47.06(D)).
Palm Desert Tenant purchase option. The property owner
shall provide each tenant of a rental unit to be
converted pursuant to this chapter with a 90-
day right of first refusal to purchase his or her
respective unit in accordance with Section
66427.1 of the Subdivision Map Act.
Tenant relocation plan. The applicant shall
submit a tenant relocation plan containing and
complying with the following:
1. A detailed report describing the
relocation and moving assistance information to
be given to each tenant. The report shall state in
detail what assistance will be provided for
3
1071033.1
Condominium Conversion Relocation Assistance Survey—Supplemental
Provisions
City Provisions/Requirements
special category tenants. (PDMC §
25.34.050(E)).
2. The applicant shall provide a tenant
information handout and a questionnaire to
each tenant with an envelope, postage prepaid,
addressed to the Department. The questionnaire
shall include questions regarding tenant
income, length of tenancy, age, disability, and
household size, and shall request that the tenant
return the completed form directly to the
Department. (PDMC § 25.34.050(F)).
Relocation Assistance. The applicant shall offer
to each eligible tenant a plan for relocation to
alternative housing. The relocation plan shall
provide for assistance to each eligible tenant in
locating alternative housing, including but not
limited to providing availability reports where
necessary. (PDMC §25.34.050(G)(1)(i).
4
1071033.1
Condominium Conversion Relocation Assistance Survey—Supplemental
Provisions
City Provisions/Requirements
Pasadena Relocation counseling. The subdivider must
submit a counseling assistance plan to provide
relocation counseling and assistance to
qualified tenants, to aid such tenants in finding
and relocating to equivalent housing. The
assistance plan shall include provisions for
relocation counseling to qualified tenants by a
qualified agency approved for this purpose by
the director of housing and community
development, and such other steps as may be
undertaken by the developer to mitigate the
impact of relocation on tenants qualified for
assistance. The actual cost of such counseling
assistance shall be borne solely by the
subdivider. The plan shall be approved by the
advisory agency as adequate prior to approval
of the tentative map for a conversion project. In
granting such approval, the advisory agency
may approve a plan which places reasonable
limits on the costs the developer will incur in
implementing the plan. (PMC § 16.46.060).
Tenants right to purchase. Any present tenant
or tenants shall be given the exclusive right to
contract for the purchase of the unit upon the
terms and conditions that such unit 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 90 days from the
date of issuance of the subdivision public
report. (PMC § 16.46.072).
5
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Condominium Conversion Relocation Assistance Survey— Supplemental
Provisions
City Provisions/Requirements
Redondo Beach Option to purchase. Each tenant shall be given
notice of an exclusive right to contract for the
purchase of his respective unit upon the same
terms and conditions that such unit will be
initially offered to the general public or on
terms more favorable to the tenant. Such right
shall run for a period of not less than ninety
(90) days.
Relocation advisory assistance. The property
owner shall provide relocation advisory
assistance to aged and handicapped tenants
which shall include, as desired by the tenant to
be relocated:
1. Providing current and continuing
information on the availability, prices, and
rentals of comparable decent, safe, and sanitary
housing;
2. Providing transportation to and advice in
selecting comparable housing;
3. Providing comparable, decent, safe, and
sanitary housing to the tenant upon
displacement and notice of the availability of
such housing within a reasonable time prior to
displacement; and
4. Providing for the moving of any
household possessions of the tenant as a result
of displacement. (RBMC § 10-2.1610(g)(1) and
(h)(2)(a))•
6
1071033.1
Condominium Conversion Relocation Assistance Survey-Supplemental
Provisions
City Provisions/Requirements
San Diego The applicant shall pay fees to the San Diego
Housing Commission in an amount equal to
$200 for each unit proposed to be converted,
plus any additional expenses incurred by the
City or the Housing Commission to secure
tenant relocation benefits. The funds shall be
used by the San Diego Housing Commission to
monitor compliance with the obligations set
forth under this division, provide technical
assistance to tenants in their relocation, and
recapture legal fees. Nothing contained in this
division shall impose a duty upon the (SDMC §
144.0503).
San Jose Plan of relocation may be required, which may
include provisions including, but not limited to,
active assistance in securing comparable
replacement housing for tenants who will be
displaced. (SJMC § 20.170.430).
Santa Ana Requires approval of a conversion plan
including, but not limited to: (1) a statement of
method by which tenants will be assisted by the
subdivider in finding comparable replacement
rental housing within the area for conversion;
(2) a statement of a method by which
subdivider will comply with requirements of
Section 66427.1 of the Subdivision Map Act (re
exclusive right to contract for purchase of unit);
and (3) a statement of a method by which the
subdivider will assure that each tenant who
attends, or whose spouse or dependent child
attends, school will be granted an extension of
tenancy as necessary to permit such person to
complete the school year, semester, or quarter.
(SAMC § 34-334(a)).
7
1071033.1
Condominium Conversion Relocation Assistance Survey Supplemental
Provisions
City Provisions/Requirements
Santa Barbara Right to Purchase (Right of First Refusal).
Displaced tenants shall be given an exclusive
right to contract for the purchase of a
residential unit within any resulting
development upon the same terms and
conditions that the residential unit will be
initially offered to the general public or on
terms more favorable to the members of the
displaced tenants' household. The exclusive
right to contract shall be valid for at least ninety
(90) days from the date of issuance of a
Subdivision. (SBMC § 28.89,050).
Santa Monica In addition to relocation fees, landlord must pay
additional fee of$250 to be used by City to pay
for counseling and other assistance required by
displaced tenants as a result of displacement.
(SMMC § 4.36.050(a)).
In lieu of above counseling fee, landlord may
prepare a Displacement Plan which must be
approved by Community and Economic
Development Department, and must identify
the special needs of the displaced tenants,
identify the types of assistance that will be
provided and include a commitment to pay for
any such assistance. Landlord must pay $100
for each rental unit to City for review and
approval of Displacement Plan. (SMMC §
4.36.050(b)).
8
t071033.1
Condominium Conversion Relocation Assistance Survey—Supplemental
Provisions
City Provisions/Requirements
Stockton Relocation. Elderly (62 years of age), low-
income, or handicapped tenants shall not be
required to move from the project due to the
conversion, nor be subjected to unreasonable
rent increases. However, if a tenant's 90-day
exclusive right to purchase his or her unit
expires or the tenant has provided written
notice of his or her intention not to exercise the
exclusive right to purchase his or her unit, the
permittee may sell the unit to a third party with
an express condition in the sales agreement or
deed of trust that the buyer shall guarantee the
existing tenant's rights to remain in the project
and not be subject to the unreasonable rent
increases. (SMC § 16.196.030(E)(2)).
Tenant Discounts. Each of the existing tenants
of the proposed condominium conversion
project shall be given notice that they have
exclusive right to contract for the purpose of
purchasing the unit they presently occupy under
the same terms and conditions that the unit will
be initially offered to the general public, or
terms more favorable to the tenant. This
exclusive right to purchase shall run for a
period of not less than 90 days from the date of
the issuance of the Department of Real Estate
public report, or approval of a condominium
conversion permit under this Development
Code, whichever is later.
(SMC § 16.196.030(E)(7)).
Valleio n/a.
9
1071033.1
Condominium Conversion Relocation Assistance Survey— Supplemental
Provisions
City Provisions/Requirements
West Hollywood Counseling for Certain Displaced Tenants.
Landlord must pay a fee to the City for each
rental unit from which tenants are displaced. If
the tenant to be displaced is a senior citizen, a
handicapped tenant or a tenant with whom one
or more minor dependent children reside, the
landlord must pay an additional fee per unit.
The fee is to reimburse the City for the cost of
providing counseling, written materials, and
information to the displaced tenants concerning
comparable rental housing which is available,
as well as other information relevant to
relocation, such as the names and addresses of
moving and storage companies. The amount of
the fee(s) shall be set by resolution of the City
Council. (WHMC § 17.52.070).
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