The City Council shall not approve a conditional use permit and tentative map for a conversion unless it finds that:
(A) The proposed conversion is consistent with the general plan, particularly with the objectives, policies, and programs of the housing element of the general plan designed to provide affordable housing to all economic segments of the population.
(B) The average rental vacancy rate in comparable multiple-family units (as defined by complex and unit size, age, and amenities) within the city during the 12 months preceding the filing of the application is greater than 4.5%; provided, that a conditional use permit may be approved where the vacancy rate for comparable units is equal to or less than 4.5% if the applicant has proposed additional measures which the City Council finds would effectively mitigate the displacement of tenants and any adverse effects upon the housing stock within the city which would be caused by the proposed conversion.
(C) The applicant unconditionally offered to each eligible tenant an adequate plan for relocation to comparable housing.
(D) The CC&R's for the condominium project, shall require the applicant to establish an owner occupancy program that ensures a stable community of residents, is consistent with residential lending requirements, and discourages excessive real estate speculation. At a minimum, such program shall include the following requirements unless otherwise approved by the Community Development Director:
(1) Owner occupancy of at least 70% of the units;
(2) Minimum lease durations; and
(3) Registration of tenants and vehicles with the Homeowner's Association.
(E) All the provisions of the Subdivision Map Act, this article, and other applicable provisions of this code are met.
(F) (1) Prior to the approval of the final map, the applicant has entered into an agreement, subject to the City Attorney's approval, with the Homeowners' Association, whereby 2.5% of the amount of each unit purchase price shall, at close of escrow, be deposited into a Homeowners' Association Capitol Reserve Account. The amount of the fee, if conditions warrant, may be increased above the established fee by the City Council. This fund shall be used for repair of items in the common area and structures, or other capitol repair or replacement items which the Association deems necessary. This fund shall be over and above any funding reserve requirements required by the State Department of Real Estate. The fund shall be held separately from funds required by the State Department of Real Estate.
(2) The intent of the city in requiring the creation of a contingency or reserve fund for condominium conversions is to provide a surety for unexpected or emergency repairs to common areas in the interest of the economic, aesthetic and environmental maintenance of the community as well as to protect the general welfare, public health and safety of the community.
(G) Pursuant to the Cal. Gov't Code, Subdivision Map Act Chapter 2, Article 1, the Council shall not approve a final map for a subdivision to be created from the conversion of a residential real property into a condominium project unless the Council finds that all of the Tenant Notification provisions of the California Map Act and Article 31 have been met.
(Ord. 1070-C-S, passed 6-13-06)