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SEC. 12.95.2.  CONVERSION PROJECTS:  RESIDENTIAL; RESIDENTIAL TO COMMERCIAL/INDUSTRIAL.
   (Title and Section Amended by Ord. No. 154,960, Eff. 4/3/81.) (Section Renumbered by Ord. No. 162,832, Eff. 10/26/87.)
 
   A.   Purpose:  The purpose of these provisions is to promote greater individual choice in type, quality, price and location of housing; to provide for the housing needs of all segments of the population; to provide increased homeownership opportunities for all segments of the population; to mitigate the hardship caused by displacement of tenants, particularly those in low to moderate cost housing and those who are elderly, families with minor dependent children, the handicapped and the disabled; to promote the safety of conversion projects and correction of Building Code violations in such projects; to provide adequate off-street parking; to encourage construction of new rental units to replace units lost due to conversions; to protect the existing rental housing stock by reducing conversions; to provide increased opportunities for the ownership of commercial or industrial real property in the form of condominiums or stock cooperatives; to assure that the continued use of buildings for commercial or industrial purposes is substantially consistent with applicable general and specific plans; and to generally regulate projects in accordance with applicable general and specific plans and with the public health, safety and welfare.
 
   B.   Applicability:  The provisions of this section shall apply to all tentative maps and preliminary parcel maps as to which the Advisory Agency has not rendered a decision on the date this section becomes effective. The provisions of this amendment to this section shall only apply to all tentative maps and preliminary parcel maps as to which the Advisory Agency has not rendered a decision on the date the amendment becomes effective, except as otherwise expressly stated in this section. For purposes of this subsection, a decision is rendered on the date of the Advisory Agency’s public hearing and announced decision, or where no such decision is announced, the date of mailing of the Advisory Agency’s letter of decision and findings to the applicant.
 
   C.   Definitions:  The terms used in this section are defined in Sections 12.03 and 17.02 of the Municipal Code.
 
   D.   Application Requirements:
 
   1.   Residential Conversion Projects:
 
   a.   A residential conversion project shall comply with the Division of Land regulations in Article 7 of this chapter, the provisions of this section and other applicable state laws and local ordinances.
 
   b.   In addition to the information required by other applicable sections of this Code, the following information shall be submitted at the time of filing.
 
   (1)   Building plans or other documents containing the following information pertaining to the project as proposed, certified as to accuracy by a licensed engineer.
 
   (a)   Description of the features of the type of building and project, including age, type of construction, number of dwelling units, number of habitable rooms per dwelling unit; and
 
   (b)   Site plan, including buildings, structures, yards, open spaces, and accessory storage areas and buildings including trash storage areas; and
 
   (c)   Parking plan, including the total number of spaces actually provided and the total number required if different from that actually provided; dimensions of stalls, aisles and driveways; locations of columns, walls and other obstructions; total number of covered and uncovered parking spaces and location and number of guest parking spaces.
 
   (2)   Tenant Information.  Name and address of each tenant; total number of project occupants; length of tenancy; rent schedule for 18 months preceding the application; relocation assistance plan.  (Amended by Ord. No. 178,632, Eff. 5/26/07.)
 
   (3)   Sales Information.  Anticipated range of sales prices of individual dwelling units or shares based on information known at the time of application; anticipated terms of sale to existing tenants; statement as to whether sales will be permitted to families with minor children; incentives to tenants for the purchase of the dwelling units; written notice to the tenants of an exclusive right to purchase the dwelling unit occupied by the tenant; and the number of tenants that have expressed interest in purchasing their dwelling unit.  (Amended by Ord. No. 178,632, Eff. 5/26/07.)
 
   (4)   Floor and elevation plans, including indications of common and private areas, and required exits.
 
   (c)   The following additional information may be required by the Advisory Agency as a condition of approval:
 
   (1)   Certificate of Housing Compliance Inspection Report as provided by Section 91.0318 of the Municipal Code, or equivalent report satisfactory to the Advisory Agency, which report shall detail any violations of provisions of enacted after such permit was issued and which are explicitly made applicable to existing structures.
 
   (2)   Building inspection reports (if any such report has already been submitted to the California Department of Real Estate, a copy of such report shall be furnished to the City):
 
   (a)   Building component reports indicating conditions and estimated remaining useful life of the roof, foundation, plumbing, electrical, heating, air conditioning, other mechanical and structural systems, prepared by a registered civil or structural engineer, licensed general building contractor, licensed general engineering contractor or architect;
 
   (b)   Structural pest control report, prepared by a licensed pest control contractor;
 
   (c)   Acoustical report, indicating (1) the type of construction between dwelling units and the general sound attenuation characteristics of such construction, or indicating the level of sound attenuation between dwelling units, and (2) the feasibility of various levels of improvement, prepared by a licensed acoustical engineer; and
   (d)   Utility metering reports, if the units of the building are not individually metered, indicating the feasibility of individual or submetering, prepared by qualified engineers.
 
   (3)   Any other information, including conditions, covenants and restrictions, articles of incorporation and by–laws, which the Advisory Agency deems necessary to determine if the proposed project is consistent with the Municipal Code.
 
   2.   Residential to Commercial/Industrial Conversion Projects.
 
   a.   A residential to commercial/industrial conversion project shall comply with the Division of Land regulations in Article 7 of this chapter, the provisions of this section and other applicable state laws and local ordinances.
 
   b.   In addition to the information required by other applicable sections of this Code, the following information shall be submitted at the time of filing.
 
   (1)   Tenant Information:  Name and address of each tenant in the existing residential building; rent schedule for eighteen (18) months preceding the application and relocation assistance plan if any;
 
   (2)   Building plans or other documents containing the following information pertaining to the project as proposed, certified as to accuracy by a licensed engineer.
 
   (a)   Description of the features of the type of building and project, including age, type of construction, the number of separate units proposed, the square footage of each such unit and of the entire building.
 
   (b)   Parking plan, including the total number of spaces actually provided and the total number required if different from that actually provided, dimensions of stalls, aisles, and driveways, locations of columns, walls, and other obstructions, and location and number of guest parking spaces.
 
   (c)   The following additional information may be required by the Advisory Agency as a condition of approval.
 
   (1)   Building component reports indicating condition and estimated remaining useful life of the roof, foundation, plumbing, electrical, heating, air conditioning, other mechanical and structural systems, prepared by a registered civil or structural engineer, licensed general building contractor, licensed general engineering contractor or architect.
 
   (2)   Site plan, including, buildings, structures, yards, open spaces, and accessory storage areas and buildings including trash storage areas.
 
   (3)   Floor and elevation plans, including indication of common and private areas, and required exists.
 
   (4)   Building inspection reports (if any such report has already been submitted to the California Department of Real Estate, a copy of such report shall be furnished to the City)
 
   (5)   Any other information, including conditions, covenants and restrictions, articles of incorporation and by–laws, which the Advisory Agency deems necessary to determine if the proposed project is consistent with the Municipal Code.
 
   3.   All Projects.  No application for tentative or preliminary parcel map approval of a residential conversion project or a residential to commercial/ industrial conversion project shall be accepted without adequate evidence from the applicant that each tenant of the project has received:  written notice of intention to file a tentative or preliminary parcel map application at least 60 days prior to the filing of the application and a written copy of the relocation assistance provisions of Sections and of this Code.  Any person who becomes a tenant of a residential rental unit proposed for conversion to a residential or commercial/industrial condominium, stock cooperative or community apartment project after the date of the filing of the application shall be given written notice of the pendency of the application prior to entering into any written or oral rental agreement.  (Amended by Ord. No. 178,632, Eff. 5/26/07.)
 
   E.   Tenant Notification:
 
   1.   Notification of hearing on tentative map or preliminary parcel map.  (Amended by Ord. No. 178,632, Eff. 5/26/07.)  In addition to other notification requirements of this Code, the Department of City Planning shall give notice of any public hearing on a tentative map or preliminary parcel map to each tenant in each dwelling unit of the building or buildings proposed for conversion.
 
   This notice shall be in writing and mailed no less than ten days prior to the public hearing on the tentative map or preliminary parcel map.
 
   The notice may include a questionnaire, to be completed at the option of each tenant, regarding the approximate ages and disabilities or handicaps, if any, of the household members, comments concerning the physical condition of the building and its various components and characteristics as outlined in Subparagraph (2) of Paragraph c. of Subdivision 1. of Subsection D. of this section, and any other information as may be pertinent to the pending proceedings.
 
   2.   Notification of proposed conversion prior to termination of tenancy due to the conversion.  Each tenant of a conversion project subject to this section shall be given 180 days written notice of intention to convert prior to termination of tenancy due to the conversion or proposed conversion.  Each person who becomes a tenant of the conversion project after the date of the 180 days written notice shall be given a copy of the notice of intention to convert before entering into any written or oral rental agreement, but shall not be entitled to 180 days written notice prior to termination of tenancy due to the conversion or proposed conversion.  (Amended by Ord. No. 178,632, Eff. 5/26/07.)
 
   3.   Residential Conversion Project – Notification of exclusive right to purchase.  The applicant shall give each tenant of any proposed residential conversion project written notice of an exclusive right to contract for the purchase of the dwelling unit occupied by the tenant or purchase of a share in the corporation entitling the shareholder to enjoy exclusive occupancy of the unit upon the same or more favorable terms and conditions than those on which such unit or share will be initially offered to the general public. The right shall run for a period of not less than 90 days from the issuance of the subdivision public report pursuant to Section 11018.2 of the California Business and Professions Code, unless the applicant receives prior written notice of the tenant’s intention not to exercise the right.
 
   Where two or more units are combined pursuant to conditions of tentative map or preliminary parcel map approval, the notice required by this Subdivision 3 shall be given to the tenants of the combined units and priority among tenants shall be determined in an equitable manner. A tenant who is prevented from purchasing his unit due to combination of units shall be given a right of first refusal with respect to the comparable unit in the same residential conversion project, to the extent possible.
 
   F.   Tentative Map And Preliminary Parcel Map Approval:
 
   1.   All tentative maps and preliminary parcel maps filed in connection with residential or residential to commercial/industrial conversion projects shall be subject to the Division of Land Regulations contained in Article 7 of this chapter, except as herein otherwise provided. All such maps shall be subject to the General Plan and any applicable specific plan only to the extent that such plan contains a definite statement of policies and objectives explicitly applicable to conversion projects, except as otherwise provided in this subsection.
 
   2.   The Advisory Agency shall disapprove a tentative map or preliminary parcel map for a residential or residential to commercial/industrial conversion project, if it finds (a) that the map is not substantially consistent with the applicable density provisions of the General Plan or specific plans in effect at the time the original building permit was issued, and (b) the application for map approval is filed less than five years from the date the original certificate of occupancy for the building was issued. The Advisory Agency shall disapprove a tentative map or preliminary parcel map for a residential to commercial/industrial conversion project where the conversion would be inconsistent with either the existing zoning pattern or applicable general or specific plan, unless it finds that there are special circumstances which justify approval of the map. Such circumstances may exist only with respect to the following facts (1) the prevailing pattern of residential and commercial/industrial land use in the vicinity of the project site; and (2) the existing and anticipated need for commercial/industrial development in the planing area in which the project is located.
 
   EXCEPTION: This provision shall not apply to any residential or residential to commercial/industrial conversion project involving buildings for which a building permit was applied for prior to July 1,1978.
 
   3.   The Advisory Agency shall disapprove a tentative map or preliminary parcel map for a residential or residential to commercial/industrial conversion project if it finds that any applicable general plan or specific plan provision contains a definite statement of policies and objectives explicitly applicable to conversion projects and the proposed map is not substantially consistent with such provision.
 
   4.   The Advisory Agency shall disapprove a tentative map or preliminary parcel map for a residential or a residential to commercial/industrial conversion project if it finds that there are uncorrected violations of of the Municipal Code, and that an adequate plan to correct such violations has not been developed or accomplished. For purposes of this provision, of the Municipal Code means the Code in effect when the building permit was issued and other subsequently enacted regulations explicitly made applicable to existing structures.
 
   5.   The Advisory Agency shall disapprove a tentative map or preliminary parcel map for a residential or residential to commercial/industrial conversion project, if it finds that (a) the building permit for the building was issued prior to October 1, 1933, and the building is of unreinforced masonry construction, or (b) the building is more than three stories in height without an elevator. This provision may be waived where the Advisory Agency finds that any such condition has been corrected in conformity with Municipal Code standards.
 
   6.   After considering the following criteria, the Advisory Agency may approve a tentative map or preliminary parcel map for a residential or residential to commercial/industrial conversion project, unless it makes both of the following findings: (1) the vacancy rate of the planning area in which the property is located is five percent or less, and (2) the cumulative effect of the rental housing market in the planning area of successive residential or residential to commercial/industrial conversion projects (past, present and future) is significant. A finding of significant cumulative effect shall be based on the following factors: (a) in the case of residential conversion projects only, the number of tenants who are willing and able to purchase a unit in the building; (b) the number of units in the existing residential building prior to conversion; (c) the number of units which would be eliminated in case conversion occurred in order to satisfy Municipal Code parking requirements; (d) the adequacy of the relocation assistance plan proposed by the subdivider; and (e) any other factors pertinent to the determination. “Vacancy rate” shall refer to the most current vacancy rate for multiple–family dwelling units as published by the Department of City Planning in its Semi–Annual Population Estimate and Housing Inventory, or other estimate or survey satisfactory to the Advisory Agency. “Planning area” shall refer to those areas established by the Director of Planning for purposes of community planning pursuant to Section 11.5.6 of the Municipal Code.
 
   G.   Relocation Assistance:
 
   1.   Requirement.  The Advisory Agency shall require, as a condition of map approval, that the applicant execute and record a covenant and agreement, in a form satisfactory to the Advisory Agency, binding the applicant and any successor-in-interest to provide relocation assistance in a manner consistent with Section of this Code.  The covenant and agreement shall be executed and recorded within ten days after the expiration of the appeal period, or final approval, whichever is later, for tentative map or preliminary parcel map approval and a copy provided to each tenant within five days of recordation.  The covenant and agreement shall run to the benefit of any eligible tenant, as defined in Subdivision 2. of this section and shall be enforceable by any eligible tenant or by the City.  (Amended by Ord. No. 178,632, Eff. 5/26/07.)
 
   2.   Eligible Tenant.  As used in this Subsection G., the term "eligible tenant" means any tenant who was resident of the property both on the date of tentative or preliminary parcel map application and the date of approval of such map, or at any time thereafter, and who does not intend to purchase a unit in the conversion project.  (Amended by Ord. No. 185,224, Eff. 12/13/17.)
 
   3.   Special Protection.  An eligible tenant is entitled to "special protection", as defined in this subsection, if the tenant meets the definition of "Qualified Tenant" in Section of this Code.  (Amended by Ord. No. 178,632, Eff. 5/26/07.)
 
   4.   Dispute Resolution.  The covenant and agreement specified in Subdivision 1. of this subsection shall establish an expeditious mechanism to resolve any disputes among tenants, the applicant and the City concerning the interpretation or application of the covenant and agreement.  (Amended by Ord. No. 178,632, Eff. 5/26/07.)
 
   5.   (Deleted by Ord. No. 178,632, Eff. 5/26/07.)
 
   6.   Continued Tenancy Pending Relocation; Eviction; Review Procedure.  Until each eligible tenant is successfully relocated pursuant to the provisions of this subsection, the tenant shall be permitted to reside in the unit presently occupied in the conversion project. There shall be no time limit for such continued tenancy for each tenant qualified for “special protection,” as defined in Subdivision 3. of this Subsection G. In all other cases, the subdivider is not required to consent to continued tenancy beyond twelve months from the date of tentative map or preliminary parcel map approval or the date on which the 120–day notice of intent to convert is given to all tenants, whichever is the later.
 
   A eligible tenant may be evicted, notwithstanding the paragraph above, for the following reasons only:
 
   a.   The tenant has failed to pay the rent to which the landlord is entitled.
 
   b.   The tenant has violated an obligation or covenant of the tenancy, other than the obligation to surrender possession upon proper notice and has failed to cure such violation after having received written notice thereof from the landlord.
 
   c.   The tenant is committing or permitting to exist a nuisance in or is causing damage to, the rental unit or to the appurtenances thereof, or to the common areas of the property containing the rent unit, or is creating an unreasonable interference with the comfort, safety, or enjoyment of any of the other residents of the same or adjacent building.
 
   d.   The tenant is using or permitting a rental unit to be used for any illegal purpose.
 
   e.   The tenant who had a written lease or rental agreement which terminated on or after November 10,1979, has refused, after written request or demand by the landlord, to execute a written extension or renewal thereof for a further term or like duration with similar provisions and in such terms as are not inconsistent with or violative of any provision of this subsection.
 
   f.   The tenant has refused the landlord reasonable access to the unit for the purpose of making repairs or improvements, or for the purpose of inspection as permitted or required by the lease or by law, or for the purpose of showing the rental unit to any prospective purchaser or mortgagee.
 
   g.   The person in possession of the rental unit at the end of the lease term is a subtenant not approved by the landlord.
 
   Any dispute regarding an eligible tenant’s right to continue tenancy pursuant to this Subdivision 5. may be heard by the Advisory Agency when application for such review is made by the subdivider or an eligible tenant. The Advisory Agency may release the applicant from further compliance with a relocation assistance plan with respect to any eligible tenant where it finds that the tenant is not entitled to continued tenancy pursuant to the provisions of this Subdivision 6.
 
   7.   (Deleted by Ord. No. 178,632, Eff. 5/26/07.)
 
   8.   (Deleted by Ord. No. 178,632, Eff. 5/26/07.)
 
   9.   (Renumbered as Subd. 4 by Ord. No. 178,632, Eff. 5/26/07.)
 
   10.   (Deleted by Ord. No. 178,632, Eff. 5/26/07.)
 
   H.   Parking:
 
   1.   Residential Conversion Projects.
 
   a.   The minimum number of resident parking spaces per dwelling unit shall be one and one–quarter parking spaces per dwelling unit having three or less habitable rooms and one and one–half parking spaces per each dwelling unit having more than three habitable rooms. The Advisory Agency may increase or decrease the required number of parking spaces up to and including three–quarters of a space per dwelling unit, where it finds that such modification is consistent with the purposes of this section.
 
   b.   The minimum number of guest parking spaces shall be one quarter space per dwelling unit for projects containing 50 or fewer units and one–half space per dwelling unit for projects containing more than 50 units. The Advisory Agency may modify the guest parking requirement up to and including one–half space per unit where it finds such modification consistent with the purposes of this section.
 
   c.   The Advisory Agency may require up to one of the required resident parking spaces per dwelling unit to be provided in a private garage or carport where it finds that such is reasonable and feasible and consistent with the purposes of this section.
 
   d.   Where the number of parking spaces required by other provisions of this code in existence on the date of map application exceeds the minimum numbers established by this section, the number of parking spaces shall not be diminished.
 
   e.   In the Central City Area as described in Section 12.21 A.4.(p) of the Municipal Code, the required parking ratio shall be no less than therein provided.
 
   f.   Where the total number of required spaces includes a fraction, the provision of Section 12.21 A.4.(k) of the Municipal Code shall govern.
 
   g.   The design and improvement of parking facilities and areas shall substantially conform to the provisions of Section A.5. and 6. of the Municipal Code.
 
   2.   Residential to Commercial/Industrial Conversion Projects.
 
   a.   The required minimum number of parking spaces to be provided in a residential to commercial/industrial conversion project shall be one parking space for each 200 square feet of that portion of the total floor area of a building to be used as a medical office, clinic or other medical service facility and one parking space for each 500 square feet of that portion of the total floor area in a building to be used for other commercial or for industrial purposes. “Total floor area”, as used herein, shall exclude floor area used for automobile parking or driveways, for basement storage or for rooms housing mechanical equipment incidental to the operation of buildings.
 
   b.   The Advisory Agency may increase the required minimum number of parking spaces by not more than seventy five percent (75%), including any allowance for guest parking, where it finds that such modification is consistent with the purposes of this section.
 
   c.   Where the number of parking spaces required by other provisions of this Code in existence on the date of map application exceeds the minimum numbers established by this section, the number of parking spaces shall not be diminished.
 
   d.   In the Central City Area as described in Section 12.21 A.4.(p) of the Municipal Code, the required parking ratio shall be no less than therein provided.
 
   e.   Where the total number of required parking spaces includes a fraction, the provisions of Section 12.21 A.4.(k) of the Municipal Code shall govern.
 
   f.   The design and improvement of parking facilities and areas shall substantially conform to the provisions of Section 12.21 A.5. and 6. of the Municipal Code.
 
   I.   Building Reports – Residential Conversion Projects.  The Advisory Agency may require, as a condition of approval, that the applicant notify such person who communicates an interest in purchasing a unit or share that the following reports are available for inspection during normal business hours, and shall take all reasonable steps to assure that such reports fully, fairly and accurately describe the conditions reported:
 
   1.   Any report submitted pursuant to Subsection D of this section.
 
   2.   A report concerning compliance with the sound transmission control standards established by Section 91.4903(h) of the Municipal Code.
 
   3.   Report concerning compliance with the residential energy conservation standards established by Article 1, Part 6, Title 24 of the California Administrative Code.
 
   4.   A report concerning compliance with the elevator safety standards established by Title 8 of the California Administrative Code.
 
   5.   A report concerning compliance with any provision of of the Municipal Code which the Advisory Agency and the Superintendent of Building find appropriate for such reporting purpose.
 
   J.   Low And Moderate Income Housing – Residential Conversion Projects:  Each residential conversion project shall comply with Section 12.39* of the Municipal Code relating to low and moderate income housing.
 
* Section 12.39 was repealed by Ord. No. 180,308 Eff. 12/7/08.
 
   K.   Rental Housing Production:
 
   1.   As a condition of tentative map or preliminary parcel map approval, the Advisory Agency shall require that the applicant or his successor-in-interest pay to the City a fee of $1,492 for each unit in a residential or residential to commercial/industrial conversion project, based on the number of units in the project prior to conversion.  For the year beginning July 1, 2008, and all subsequent years, the fee amount shall be adjusted on an annual basis pursuant to the formula set forth in Section D. of this Code.  The adjusted amount shall be rounded to the nearest $50 increment.  This fee shall be paid prior to approval of the final map by the City Engineer.  (Amended by Ord. No. 178,632, Eff. 5/26/07.)
 
   2.   All fees collected pursuant to this Subsection K shall be deposited and held in the Rental Housing Production Account of the Housing and Community Investment Department, which account is hereby established to be administered by the Housing and Community Investment Department separately from all other money expended by the Department. Money in this account shall be used exclusively for the development of low and moderate income rental housing in the City, pursuant to guidelines carrying out this purpose prepared by the Department and approved by resolution of the City Council.  (Amended by Ord. No. 182,718, Eff. 10/30/13.)