The tenant protections set forth in this section shall apply to the conversion of existing multi-family residential apartment buildings or common interest developments created prior to January 1, 2006, to any form of common interest development.
A. Tenant's Right To Purchase: In accordance with the provisions of California Government Code section 66427.1(d) or any successor statute, any tenant shall be given notice of an exclusive right to contract for purchase of his or her respective unit upon the same 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 ninety (90) days from the date of issuance of the subdivision public report unless the tenant gives prior written notice of his or her intention not to exercise the right. Evidence of receipt by each tenant shall be submitted prior to approval of the final map. 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.
B. Temporary Relocation Of Tenants During Construction: If temporary relocation of any tenant is necessary for renovation or rehabilitation of a unit between the date of submission of the tentative map application and the date established for permanent relocation of the tenant, the subdivider shall provide equivalent substitute housing for that tenant and his or her household, at no additional cost to the tenant, during the period that tenant's unit is being renovated or rehabilitated. Such substitute housing shall be within the city limits unless a different agreement is made between the subdivider and the tenant by mutual consent. Any tenant temporarily relocated shall have the right to return to his or her former unit until the expiration of all rights granted to such tenant under this code and applicable provisions of state law. The obligation to relocate the tenant to alternate housing imposed on the subdivider by this section shall only apply if the unit being renovated or rehabilitated is not habitable during such construction. The final determination of habitability and suitability shall be made by the city's building official or his or her designee. The subdivider shall avoid the economic displacement of nonpurchasing tenants in accordance with California Government Code section 66427.5 or any successor statute.
C. Lease Period For Senior Tenants: In accordance with Government Code section 7060.4, any tenant who is sixty two (62) years of age or older or is disabled and has lived in an apartment for at least one year prior to the date that the landlord delivers notice to the city pursuant to subsection 4-5-511B2 of this code or equivalent notice of an intent to withdraw a unit from the rental market, shall have his or her tenancy extended to one year after the date of delivery of that notice to the city, provided that the tenant gives written notice of his or her entitlement to an extension to the landlord within sixty (60) days after the date of delivery to the city of the notice. In that situation, the following provisions shall apply: 1) the tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice, 2) no party shall be relieved of the duty to perform any obligation under the lease or rental agreement.
D. Relocation Benefits:
1. Relocation Fee Required: Any subdivider who serves a notice of intent to convert on tenants pursuant to section 10-2-710 of this chapter shall pay a relocation fee to each tenant in accordance with the provisions of this section. Such relocation fee shall be due and payable to each tenant who is not in default under his or her tenancy and does not exercise his or her right to purchase his or her unit unless the subdivider notifies each tenant in writing of the withdrawal of the notice of intent to convert prior to such time as the tenant has: a) given the subdivider notice of his or her last date of occupancy, or b) vacated his or her unit if such notice of the last date of occupancy is not given by the tenant. The subdivider must file a copy of such withdrawal notice with the director of community development within one week after serving such notice on the tenant.
2. Amount Of Fee: The relocation fee due each tenant shall be calculated as follows:
a. Tenants Who Vacate Without Extending Tenancy: For any tenant who vacates his or her unit without electing to extend his or her tenancy pursuant to subsection C of this section, the relocation fee shall be calculated as provided in section 4-5-605 of this code for rent stabilization units.
b. Tenants Who Extend Tenancy: For any tenant who elects to extend his or her tenancy under subsection C of this section, the relocation fee shall be limited to the actual cost of moving not to exceed a maximum of five thousand dollars ($5,000.00) per tenant household.
c. Annual Adjustments: The amount of relocation assistance established by this section shall be increased annually by an amount equal to the annual increase in the "Consumer Price Index For All Urban Consumers For The Los Angeles-Riverside-Orange County Areas" (the "CPI"), including all items as published by the U.S. bureau of labor statistics as of March 1 of each year. For the purposes of this article, the CPI change will be measured from January 1 to January 1.
3. Time Of Payment: The relocation fee or pro rata share thereof shall be paid to any tenant who vacates the apartment unit at the time he or she vacates said unit.
4. Applicability: Those parties who lease a unit in a building being converted to a common interest development subsequent to the date the application for conversion is determined by the city to be complete shall not be eligible to receive relocation benefits in accordance with this subsection D; provided the subdivider gave such parties written notice of the pending application for conversion at the time such parties entered their respective leases. Such notice shall comply with the requirements of California Government Code section 66452.8(b) or any successor statute. If the subdivider fails to give notice pursuant to this section, the subdivider shall pay to each such party who becomes a tenant, and who was entitled to such notice, and who does not purchase his or her unit pursuant to subsection A of this section, an amount equal to two (2) times the monthly rent for moving expenses.
E. Limitations On Evictions: No tenant shall be evicted as the result of the conversion of an existing apartment building to a common interest development pursuant to this article for at least one hundred eighty (180) days from approval of the final map for the project and the expiration of the ninety (90) day period of the exclusive option to purchase the unit described in subsection A of this section as provided by California Government Code section 66427.1 or any successor statute. The protections afforded tenants by this subsection shall only extend to tenants who are not in default under their rental agreement.
F. Grounds For Denial: If the planning commission makes any of the following determinations, that determination may serve as prima facie evidence that the proposed tentative map is not consistent with the city's general plan.
1. The planning commission determines that during the one hundred eighty (180) days prior to filing a notice of intent to convert pursuant to section 10-2-710 of this article vacancies in the project have been unlawfully increased, or elderly or permanently disabled tenants unlawfully displaced or discriminated against in leasing units, or unlawful evictions have occurred for the purpose of preparing the building for conversion.
2. The planning commission determines that during the one hundred eighty (180) days prior to filing a notice of intent to convert pursuant to section 10-2-710 of this article, rents in the project have been increased in excess of the increases permitted by chapter 5 or chapter 6 of title 4 of this code, as applicable.
3. The planning commission determines that the subdivider has knowingly submitted incorrect information (to mislead or misdirect efforts by agencies of the city in the administration of this code).
4. The planning commission determines, based on a report from the building official, that the residential rental units in the project have not been maintained to the standard of habitability prescribed by section 1941 of the California Civil Code.
If the tentative map is disapproved on any of the grounds set forth in this section, the subdivider may not reapply for eighteen (18) months from the date of denial. In evaluating the determination under subsections F1 and F2 of this section, the increase in rental rates for each unit over the preceding five (5) years and the average monthly vacancy rate for the project over the preceding three (3) years shall be considered. In the evaluating displacement of elderly tenants, any such displacements over the preceding three (3) years, and the reasons therefor, shall be considered. (Ord. 06-O-2497, eff. 4-6-2006)