CHAPTER 9-1200. CONDOMINIUM AND COOPERATIVE CONVERSIONS 1156

 

Notes

1156
   Added, 1979 Ordinances, p. 1323, superseded insofar as applicable to condominiums by "The Uniform Condominium Act", 1980, July 2, P.L. 286, No. 82, 68 Pa. C.S. §§ 3101 et seq., effective 120 days after enactment; amended, 1979 Ordinances, p. 2059.
§ 9-1201. Legislative Findings.
   The Council of the City of Philadelphia hereby finds:
   (1)   Rising costs in the maintenance and upkeep of multiple occupancy dwellings have forced owners to seek alternatives to the rental form of ownership.
   (2)   Escalating property values whereby high profits can be reaped by the sale of the property also make more attractive the trend toward conversion of these buildings to condominiums.
   (3)   The cost of purchasing a unit, in many cases, is far greater than paying the monthly rental fee for the unit and it is often extremely difficult for the tenant to get his or her finances in order quickly enough to determine whether purchasing their unit is economically feasible.
   (4)   This situation can lead to the displacement or eviction of tenants, many of them elderly who have lived in their rental units for years with the intention of making their unit their permanent residences.
   (5)   When they settled into their rental unit, in many cases, no representation was made to them that the form of building ownership might change, thus requiring a radically different financial outlay than originally anticipated.
   (6)   Even the task of finding comparable rental housing elsewhere on short notice, and moving into it, has placed a great burden on these tenants.
   (7)   A need exists for legislation to afford these tenants some relief from the situation, which is detrimental to their welfare, without unnecessarily infringing on the property rights of the owner of the multiple occupancy dwelling.
   (8)   The City of Philadelphia can, under its police powers, enact legislation which regulates the health, safety or welfare of its citizens.
§ 9-1202. Definitions.
   (1)   Commission. Fair Housing Commission.
   (2)   Condominium. The type of real property ownership defined by the Unit Property Act, 68 P.S. §§ 700.101 et seq.
   (3)   Cooperative. A multiple occupancy dwelling owned by a corporation, an unincorporated association or a business trust whereby the stockholders, trustees or members of the association own the unit or units which they occupy or own the entire multiple occupancy dwelling in which they are tenants. 1157
   (4)   Multiple Occupancy Dwelling. Any dwelling or part thereof containing three or more dwellings units. 1158
   (5)   Unfair Conversion Practice. Any act in violation of Section 9-1204. 1159

 

Notes

1157
   Added, 1979 Ordinances, p. 2059.
1158
   Added, 1979 Ordinances, p. 2059.
1159
   Added, 1979 Ordinances, p. 2059.
§ 9-1203. Fair Housing Commission.
   (1)   The Fair Housing Commission, created by Section 9-803 of the Code, shall have the power to hold hearings and conduct investigations in connection with any unfair conversion practice upon complaint or upon its own initiative. The Commission shall have the power to subpoena witnesses and the production of documents as provided in Section 8-409 of the Philadelphia Home Rule Charter.
§ 9-1204. Unfair Conversion Practices.
   (1)   It shall be unlawful for any owner, landlord, agent or other person operating or managing a multiple occupancy dwelling to convert said premises to a condominium, or to terminate a lease with a tenant or to make, alter, amend or modify any term or condition of any existing lease or arrangement of tenancy with a tenant for the purpose of converting the said premises to a condominium, unless:
      (a)   the tenant has been notified in writing by certified mail, return receipt requested, of the owner's intention to convert to a condominium by a date certain specified therein, which notice shall be delivered one year prior to the date of the scheduled conversion;
      (b)   the notice of intention to convert contains a statement informing the tenant then in possession of his or her exclusive right to purchase their unit at a specified price during the first 6 months of the notice period. During the right-to-purchase period, the owner or his agent cannot show the unit to other prospective buyers unless the tenant has, in writing, waived the right to purchase;
      (c)   the statement contains a specific statement of the total amount due on or before settlement of the purchase contract, including any initial or special condominium fees due;
      (d)   the statement contains information on the actual expenditures made on all repairs, maintenance, operation and upkeep of the subject property, including all taxes and utility payments, within the last three years, set forth tabularly with the proposed budget of the condominium and cumulatively broken down on a per unit basis;
      (e)   the statement contains a description of any provisions made in the budget for reserves for capital expenditures, or, if no provision is made for reserves, a statement to this effect;
      (f)   the statement contains a declaration as to the present condition of all structural components and major utility installations in the subject property, including the dates of construction, installation and major repairs, and the expected useful life of each item, together with the estimated cost (in current dollars) of replacing each of same.
   (2)   A tenant in possession at the time of the delivery of the notice referred to above, may not be required to vacate the premises prior to the expiration of the one year's notice period except for:
      (a)   nonpayment of rent;
      (b)   breach of a covenant in the existing lease;
      (c)   the tenant's having committed a nuisance or waste upon the property, or having caused the premises to be in violation of The Philadelphia Code.
   (3)   Any tenant in possession at the time of delivery of the aforesaid notice, whose lease would ordinarily terminate during the one-year period, is entitled to have the tenancy extended on the same terms and conditions until the expiration of the one-year period from the date of the notice.
   (4)   Any tenant in possession at the time of delivery of the notice may terminate his lease with 90 days' notice without penalty for termination.
   (5)   Tenants who take possession of a unit after the one year's notice provision is delivered pursuant to this Section, but before the date of actual conversion, shall be notified in writing prior to the signing of the lease, of the owner's intentions to convert to a condominium as of the specified date and given whatever information is requested by that tenant relative to the costs of purchasing that unit.
   (6)   No provision of this Section can be waived or made subject to a contract between the parties depriving a tenant of the benefits of this Section.
   (7)   It is the policy of the City of Philadelphia that provisions in any contracts, leases or other undertakings which allow owners or their agents, at their option, to cancel and terminate the terms of such leases upon any future possibility of conversion to a condominium, upon less than one year's notice as required by this Section, shall be null and void as against public policy, except in the following case:
      (a)   if the term of the lease shall be less than one year between the date of original occupancy in the multiple occupancy dwelling and the date of conversion.
§ 9-1205. Enforcement Procedure.
   (1)   Upon any complaint made to the Commission or upon its own initiative, the Commission shall have the power to fix the date, time and place when it shall conduct a hearing. Written notice of the date, time, and place of the hearing shall be sent, at least 10 days prior to the hearing, to the owner or agent of the premises regarding which it is charged that an unfair conversion practice has been committed. The notice shall set forth a brief statement of the facts upon which the complaint is based.
   (2)   At the hearing, the complainant, owner and his agent and their witnesses shall have an opportunity to appear and be represented by counsel.
   (3)   Upon a finding that an unfair conversion practice has been committed, the Commission shall issue an order appropriate under the circumstances.
   (4)   If the owner or agent shall fail to appear, the Commission may issue a subpoena as provided in Section 8-409 of the Philadelphia Home Rule Charter.
§ 9-1206. Condominium Conversion Moratorium.
   (1)   (a)   For a period of eighteen (18) months, no individual, partnership, association, corporation or other entity owning, operating or managing a multiple occupancy dwelling, any part of which is located in the City of Philadelphia, intending to convert any such existing multiple occupancy dwelling to a condominium or condominiums shall file a Declaration of Condominium, Declaration Plan or Code of Regulations with the Department of Records of the City of Philadelphia or any other agency of the City of Philadelphia, and neither shall the Department of Records of the City of Philadelphia nor any other agency of the City of Philadelphia accept any Declaration of Condominium, Declaration Plan or Code of Regulations calling for the conversion of an existing multiple occupancy dwelling to a condominium or condominiums for a period of eighteen (18) months.
      (b)   For a period of eighteen (18) months to run concurrently with the eighteen (18) month period referred to in subsection (1)(a) of this Section, no notice, pursuant to subsection 9-1204(1)(a), shall be sent.
      (c)   The Commission shall be empowered to seek injunctive relief to enforce this Section.
   (2)   During this period, the City Planning Commission shall undertake, utilizing the powers granted by this Chapter, a comprehensive and detailed study of the process and effect of condominium conversions. The purpose of such study shall be to formulate proposals for legislation to protect purchasers and tenants, to accommodate the interests of owners interested in converting rental properties to condominiums, and to develop a comprehensive plan for facilitating an orderly process of condominium conversions and a balance between rental and condominium housing stock.
§ 9-1207. Penalty. 1160
   (1)   Any person violating an order of the Commission or any provision of this Chapter is subject to a fine of not less than one hundred dollars ($100) and of not more than three hundred dollars ($300), together with costs of prosecution. Each violation shall constitute a separate offense.

 

Notes

1160
   Amended, Bill No. 758 (approved July 24, 1995), 1995 Ordinances, p. 1081.
§ 9-1208. Cooperative Conversion. 1161
   Section 9-1201 through Section 9-1209 listed herein shall also be applicable to the conversion of existing multiple occupancy dwellings to cooperative type real property.

 

Notes

1161
   Added, 1979 Ordinances, p. 2059.
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