(a) Public Offering Statement, Bond and Fee Requirements. No developer shall sell or offer to sell a condominium ownership interest in a conversion condominium development in the City unless he or she first files the following items with the Director of Buildings:
(1) Twenty copies of the public offering statement provided by the developer under Section 1357.05;
(2) Any bond required by subsection (b) hereof; and
(3) A fee of twenty dollars ($20.00) per condominium unit. Such fees are incidental to the conversion condominium development under this Building Code.
(b) Compliance With Building Code. No developer shall sell or offer to sell a condominium ownership interest in a conversion condominium development in the City unless the Director of Buildings has issued a certificate of occupancy attesting that all common areas therein are in compliance with this Building Code, unless, within the public offering statement, there is described the specific common areas therein which the Director of Buildings has determined are not in compliance with this Building Code, and also the following:
(1) A statement by the developer specifying the estimated cost and estimated time of completion of all work necessary to correct each Code violation, such time of completion not to exceed six months from the date of filing, subject to strikes, adverse weather conditions, acts of God and/or other similar events beyond the control of the developer; and
(2) A bond filed with the City in the sum of 100 percent of the estimated cost of the work required for Code compliance, such estimated cost to be verified by copies of contracts for the completion of the work required for Code compliance.
(c) Compliance With Housing Code. At the time of closing of a sale of a condominium unit, the developer shall deliver to the purchaser thereof a certificate of occupancy issued by the Director of Buildings attesting that the particular unit is in compliance with the Housing Code.
(d) Compliance With Warranties.
(1) To ensure compliance with the warranty obligations specified under Section 1357.05(a)(4), the developer shall place in a separate warranty escrow account a sum equal to one percent of the gross sales price of each unit as sold, such escrow account to be established at a financial institution in the City whose accounts are insured by a government agency. The warranty escrow account shall be maintained for the period of the warranty.
(2) Following notification by a unit owner or the unit owners' association, the developer shall make any required repairs or replacements of the warranted areas and facilities in a timely manner or as promptly as conditions necessitate in the case of an emergency. If the developer fails to comply with the warranty provisions, the unit owner or the unit owners' association may notify the developer, in writing, of intention to correct the condition at the developer's expense. If the developer fails to comply within fourteen days after being notified by the unit owner or unit owners' association, or as promptly as conditions require in the case of an emergency, the unit owner or unit owners' association may, after receiving two or more written estimates of the cost, have the work done by the tradesmen submitting the lowest responsible estimate and have the cost of the work deducted from the warranty escrow account. If litigation is necessary in order to enforce any warranty hereunder and/or to attach funds from the escrow account, a prevailing plaintiff may, in addition to damages, be awarded reasonable attorney fees by the court.
(Ord. 1979-28. Passed 11-12-79; Ord. 1990-18. Passed 4-23-90.)