(a) Notification to Prospective Tenants. Throughout so much of the 180-day period immediately before the filing of a declaration with the County Recorder, during which a developer of a conversion condominium development is the owner thereof, he or she shall give written notification to each prospective tenant before entering into a lease that such rental units may be converted to condominiums within such period.
(b) Notice of Conversion and Public Offering Statement. A developer of a conversion condominium development shall deliver to each of the tenants in possession written notice of conversion and the public offering statement not less than 120 days before requiring the tenant to vacate, provided that in the case of any tenant who is over sixty years of age, who is deaf or blind or who is unable to walk without assistance, the developer shall deliver such notice of conversion and the public offering statement not less than 180 days before requiring such tenant to vacate.
(c) Appropriate Notices. A developer of a conversion condominium development shall deliver appropriate notices of conversion based upon his or her best knowledge and information as to the age and/or health of each tenant. No tenant who receives other than a 180-day notice of conversion shall be deemed to be entitled to a 180-day notice unless, within fifteen days of receipt of such inappropriate notice, the tenant delivers a written statement to the developer declaring that the tenant is over sixty years of age, is deaf or blind or is unable to walk without assistance, and in such case the statement shall be presumed to be true in the absence of evidence to the contrary.
(d) Expiration of Tenancy Before End of Notice Period. Any tenant whose tenancy expires other than for cause before the expiration of 120 days from the date of delivery of such notice of conversion shall have the right to an additional tenancy on the same terms and conditions and for the same rental until the expiration of such 120-day period, by the giving of written notice thereof by the tenant to the developer within thirty days of the date of delivery of such notice of conversion, provided that in the case of any tenant who is over sixty years of age, who is deaf or blind or who is unable to walk without assistance, such tenant shall have the right to an additional tenancy on the same terms and conditions and for the same rental until the expiration of a 180-day period, by the giving of written notice thereof by the tenant to the developer within sixty days of the date of delivery of such notice of conversion.
(e) Expiration of Tenancy After Ninety Days From Notice.
(1) Any tenant whose tenancy expires after ninety days from the date of delivery of such notice of conversion shall have the right to terminate the lease upon forty-five days written notice, without penalty or other termination charge to the tenant. By delivering the notice of termination, the tenant waives the right of first refusal under subsection (h) hereof.
(2) Paragraph (e)(1) hereof shall not apply to tenants who have received notification under subsection (a) hereof before entering into a lease.
(f) Contents of Notice of Conversion.
The notice of conversion shall include a copy of this chapter as an attachment.
The notice of conversion shall contain a statement indicating that such notice shall not be construed as abrogating any rights any tenant may have under a valid existing written lease.
The notice of conversion shall contain a statement instructing the tenant that he or she may advise the Division of Building, Engineering and Inspection of any structural or mechanical defects in the building or common areas and of any unhealthful or unsafe conditions therein which the tenant believes should be corrected.
Failure of a developer to give notice of conversion as herein required shall be a defense to an action for possession.
(g) Service of Notice of Conversion and Delivery of Public Offering Statement.
The notice of conversion and public offering statement shall be deemed to be delivered on the third day after they are deposited in the United States mail addressed to the tenant at his or her last known residence, which may be the address of the property subject to the lease, sent by certified or registered mail, return receipt requested, with sufficient prepaid postage affixed to carry it to its destination. A tenant's refusal to accept delivery shall be deemed adequate service. If such mailing is returned to the developer undelivered to the tenant for any reason other than refusal of the tenant to accept delivery, the developer shall forthwith remail such mailing by regular United States mail, and such remailing shall be deemed to be delivered on the third day after it is deposited in the mail. Personal delivery is permissible if service cannot be made by United States mail.
The public offering statement shall be filed with the City on the same day that the notice of conversion and public offering statement are deposited in the United States mail to tenants.
(h) Tenant's Right of First Refusal.
During the period of ninety days following delivery of the notice of conversion and the public offering statement, and during the period of 120 days following delivery of the notice of conversion and the public offering statement in the case of any person who is over sixty years of age, who is deaf or blind or who is unable to walk without assistance, any person who was both a tenant on the date of delivery of the notice of conversion and the public offering statement and also a current tenant shall have the exclusive right of first refusal to purchase his or her unit.
During such period, the developer may offer to sell such unit to prospective purchasers other than the tenant at a price not less than that offered to the tenant and/or on terms not more favorable than offered to the tenant, and each contract for the sale of a unit shall conspicuously disclose the existence of, and shall be subject to, such right of first refusal.
If, during such period, the tenant fails to purchase the unit, the developer shall not offer to sell that unit during the following ninety days at a price or on terms more favorable to the offeree than the price or terms offered to the tenant without first making the same offer to the tenant, who shall have ten days therefrom within which to accept the offer.
(i) Co-Tenant's Rights. If there is more than one tenant leasing a unit, then each such tenant shall be entitled to contract for the purchase of a proportionate share of the unit and of a proportionate share of the share of any tenant who elects not to purchase.
In no case shall this provision be deemed to authorize the purchase of less than the entire interest in the unit to be conveyed.
(j) Tenant's Right to Cancel Contract. A tenant may, at his or her election, cancel an executed contract between himself or herself and the developer for the purchase of a condominium ownership interest by delivering to the developer or his or her agent written notice of cancellation at any time before 12:00 midnight, local time, of the third day following the date the contract is signed by the tenant, notwithstanding any other provisions of this chapter.
Upon receipt of a timely cancellation, the developer shall immediately refund any deposit, earnest money or other funds and the parties shall have no further rights or liabilities under the contract. Each tenant's contract for the sale of a unit shall conspicuously disclose the tenant's right of cancellation.
(k) Developer's Right of Access. The tenant in a conversion condominium development shall not unreasonably withhold consent to the developer to enter the unit in order to inspect the premises, make necessary or agreed repairs, supply necessary or agreed services or show the unit to a purchaser.
Except in the case of an emergency, or unless it is impractical to do so, the developer shall give the tenant reasonable notice of his or her intent to enter and may enter only at reasonable times. Twenty-four hours is presumed to be a reasonable notice in the absence of evidence to the contrary.
The developer shall not abuse the right of access or use it to harass the tenant. Entry by the developer in excess of twice in any seven-day period for the purpose of showing the unit to purchasers shall be presumed to be an abuse of the right of access in the absence of evidence to the contrary.
(l) Nonwaiverability of Obligations and Rights. Neither the obligations nor the rights under this section may be waived in a contract of lease, a contract of sale or otherwise, and any attempted waiver is void.
(m) Delivery of Public Offering Statement to Purchasers Other Than Tenants.
The developer shall deliver a copy of the public offering statement to a purchaser other than a tenant not less than fifteen days before the execution of a contract for the purchase of a unit.
On the day of delivery of the public offering statement, the developer shall obtain a receipt signed by such purchaser acknowledging that he or she has received the public offering statement and has also received a copy of such receipt on that date. The receipts shall be kept on file in the possession of the developer for a period of two years from the date of delivery to and signature by the purchaser, and such receipts shall be subject to inspection by the City at any reasonable time.
(n) Purchaser's Right to Cancel Contract. Unless a purchaser is given the public offering statement not less than fifteen days before executing a contract for the purchase of a unit, the purchaser may cancel the contract within fifteen days after first receiving the public offering statement. The notice of cancellation by the purchaser shall be in writing and the cancellation shall be without penalty. All payments which were made by the purchaser before cancellation, including interest where applicable, shall be refunded by the developer within three days after receiving notice of the cancellation.
If the developer fails to provide a purchaser with a public offering statement and all amendments thereto before conveying a unit, the purchaser, in addition to any rights to damages or other relief, is entitled to receive from the developer an amount equal to ten percent of the sales price of the unit as liquidated damages.
This subsection shall apply to tenants, in addition to the tenant's right to cancel under subsection (j) hereof.
Each purchaser's contract for the sale of a unit shall conspicuously disclose the purchaser's right of cancellation.
The purchaser's right to cancel under this subsection may not be waived in the contract of sale or otherwise and any attempted waiver is void.
(Ord. 1979-28. Passed 11-12-78.)