HomeMy WebLinkAboutOrdinance #3657 ORDINANCE NO. 3657
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING CHAPTER 235 OF THE HUNTINGTON BEACH
ZONING AND SUBDIVISION ORDINANCE RELATING TO
RESIDENTIAL CONDOMINIUM CONVERSIONS
The City Council of the City of Huntington Beach does hereby ordain as follows:
SECTION 1. That Section 235.02 of the Huntington Beach Zoning and Subdivision
Ordinance is hereby amended to read as follows:
235.02 Definitions
The following definitions shall apply to the provisions of this chapter except where the context
indicates otherwise. General definitions are contained in Chapter 203.
A. Applicant: The owner, developer, subdivider or authorized agent of a project.
B. Date of ap rp oval: The date the Zoning Administrator, Planning Commission,
or City Council on appeal, approves the conditional use permit and tentative
subdivision or parcel map applications. However, if the project is located in
appealable area of the coastal zone and includes action on a coastal development
permit, Section 248.30 shall apply.
C. Date of conversion: The date a final map for a project was approved by the City
Council or parcel map for a project was approved by the City Engineer. i+
D. Project: An existing apartment house, apartment complex, apartment hotel,
hotel, multiple dwelling or group dwelling proposed for conversion to a
condominium, community apartment, or stock cooperative.
E. Affordable unit: A residential unit, sold to or occupied by a tenant earning
up to 100 percent of Orange County's gross median income, as determined by the
County of Orange, and shall include any subsequent change in such income range,
adopted by the Housing Agency of Orange County.
F. Tenant: One or more persons.
SECTION 2. That Section 235.04 of the Huntington Beach Zoning and Subdivision
Ordinance is hereby amended to read as follows:
235.04 Permits Required
In addition to the applicable requirements and procedures set forth in Title 25, Subdivisions,
conversions of existing rental housing to condominiums, community apartments, stock
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Ordinance No. 3657
cooperatives and any other subdivision which is a conversion of existing rental housing shall be
subject to the additional requirements of this chapter. Conversions shall be subject to conditional
use permit approval by the Planning Commission pursuant to Chapter 241. Within the coastal
zone, a coastal development permit shall also be required.
Exception for apartments and stock cooperatives with two to four units on a parcel that were sold
as condominium units without approval of a conditional use permit and tentative parcel map
prior to June 1, 2004: the provisions of Title 25, Subdivisions, and only Sections 235.02, 235.04,
235.06 B., 235.08 A.—C., and 235.16 herein shall apply. A conditional use permit subject to
approval by the Zoning Administrator shall be required. In addition, an inspection by a City of
Huntington Beach Building and Safety Inspector shall be required to verify compliance with the
minimum construction standards of Section 23 5.0 8 A. and to determine if there are any obvious
health and safety code violations.
Conversion of lower or moderate-income rental housing developed with federal, state or local
assistance shall not be permitted. Within the coastal zone no visitor serving use, including hotel
use, shall be converted to condominium, community apartment, stock cooperative, or time share.
SECTION 3. That Section 235.06 of the Huntington Beach Zoning and Subdivision
Ordinance is hereby amended to read as follows:
235.06 Required Reports and Information
In addition to the conditional use permit, coastal development permit(where applicable), and
tentative map applications,the applicant shall submit the reports and/or information required by
this section. The cost of all reports shall be paid by the applicant. The reports shall include
information on what improvements, if any, shall be accomplished by the developer and when
such improvements shall be completed. All improvements cited in the reports,whether required
or voluntary, shall be considered conditions of approval.
A. Physical Elements Report: A report on the physical elements of all structures and
facilities shall be submitted, containing the following:
1. A report by a California-licensed structural engineer, civil engineer or
architect, describing in detail the structural condition, any evidence of
soils problems, code violations, useful life, and any apparent deferred
maintenance of all elements of the property, including, but not limited to,
foundations, electricity, plumbing, utilities, walls, ceilings,windows,
frames,recreational facilities, sound transmissions of each building,
mechanical equipment, parking facilities, and drainage facilities. Such
report also shall describe the condition of refuse disposal facilities;
swimming pools, saunas, and fountains; stone and brickwork; fireplaces;
and exterior lighting. The level of compliance with the standards listed in
Section 235.08 A. shall also be described in detail.
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Ordinance No. 3657
2. A report by a California-licensed mechanical contractor detailing the age,
condition, size, and the cost of replacement for each appliance and
mechanical equipment for heating and cooling. The report shall identify
any defective or unsafe appliances and set forth the proposed corrective
measures to be employed.
3. A report by a California-licensed structural termite and pest control
specialist certifying whether or not all attached or detached structures are
free of infestation and structural damage caused by pests and dry rot. The
report shall describe what procedures would be necessary to eliminate
infestation or damage, if present. Any infestation shall be remedied prior
to sale.
4. A report by a California-licensed painting contractor verifying the
condition of the painting throughout the project, including building
interior and exterior surfaces and an estimate of the remaining physical
life of the paint. A statement that new paint (minimum 20 year warranty)
will be applied on all building interior and exterior surfaces may take the
place of such report. Such statement shall include the brand name of the
paint and the exterior colors to be used.
5. A report by a California-licensed roofing contractor verifying the
condition of the roofs of all structures and an estimate of the remaining
physical life of the roofs and the cost of replacement. A statement that new
roof material will be applied may take the place of such report. Such
statement shall include the specifications of the proposed roofing material.
B. Covenants, conditions and restrictions: A declaration of the covenants, conditions,
restrictions, and rules and regulations which would be applied on behalf of any
and all owners of condominium units within the project shall be submitted. The
declaration shall include, but not be limited to: the conveyance of units; the
assignment of parking and storage areas; and an agreement for common area
maintenance, together with an estimate of any initial assessment fees anticipated
for such maintenance, and an indication of appropriate responsibilities for the
maintenance of all utility lines and services for each unit. The CCR's shall be
approved as to form by the City Attorney and recorded in the office of the County
Recorder.
C. Conversion Plan: Specific information concerning the demographic and financial
characteristics of the project shall be submitted, including, but not limited to, the
following:
1. The date of construction of all elements of the project, and the date and
description of each major repair or renovation of any structure or
structural element, since the date of construction. For purposes of this
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Ordinance No. 3657
subsection, "major repair" shall mean any repair for which an expenditure
of more than$5,000 was made;
2. A statement of a major use of said project since construction;
3. A statement regarding current ownership of all improvements and the
underlying land;
4. The square footage and number of rooms in each unit;
5. The rental rate history for each type of unit for the previous two years;_
6. The monthly vacancy rate for each month during the preceding two years;
7. A complete list of the number of tenants and tenant households in the
project, including the following information:
a. Households with persons 62 years or older;
b. The family size of households, including a breakdown of
households with children 5 years and younger; and between 5 and
18 years;
C. Households with handicapped persons;
d. The length of residence;
e. The designation of low- and moderate-income households and
whether any are receiving federal or state rent subsidies.
When the subdivider can demonstrate that demographic information is not available, this
requirement may be modified by the Director.
8. The proposed price of each of the units;
4. The proposed homeowners' association budget, detailed to include fixed
costs, operating costs, reserves, administration, and contingencies; and
10. A statement of intent as to the types of financing programs to be made
available, including any incentive programs for existing residents.
11. The method to be implemented to assure availability of affordable units to
tenants.
12. Signed copies from each tenant of the notice of intent to convert, as
specified in this chapter. The applicant shall submit evidence that a
certified letter of notification was sent to each tenant for whom a signed
copy of such notice is not submitted.
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Ordinance No. 3657
D. Vacancy Rate Analysis: A citywide vacancy rate analysis for multiple-fancily
rental units for the past twelve months shall be submitted.
E. Acceptance of Reports: The final form of the physical structure elements report,
Conversion Plan, and other documents shall be approved by the Planning
Commission. The reports in their acceptable form shall remain on file with the
Department for review by any interested person.
SECTION 4. That Section•235.08 of the Huntington Beach Zoning and Subdivision
Ordinance is hereby amended to read as follows:
235.08 Condominium Conversion Standards
A. Minimum Construction Standards: The project shall be brought into compliance
with the minimum construction standards as listed below unless the Building
Official approves an alternate method of construction. Prior to recordation of the
final map or parcel map, applicable building permits shall be obtained,
constructed and receive final inspection approval for all issues identified in this =
section and for any health and safety code violations.
1. For all structures built prior to February 1, 1985, draft stops shall be
installed in attics to create horizontal areas that are 3,000 square feet or
less. For all structures built after February 1, 1985, draft stops shall be in
attics above and in line with the walls separating individual units.
2. Each unit shall have access to the electrical branch circuits that serve the
unit.
3. Smoke detectors shall be installed and operating. All existing hard-wired
units shall be in working order and the remaining detectors shall be
located per currently adopted code and may be battery or hard-wired
operated.
4. Ground Fault Circuit Interrupter(GFCI) protection shall be provided
where required by the currently adopted electric code.
B. Compliance with Zoning Provisions: The project shall comply with the parking
requirements of Chapter 231, and landscape improvements shall comply with
Chapter 232. For apartments and stock cooperatives with two to four units on a
parcel that were sold as condominium units without approval of a conditional use
permit and tentative parcel map prior to rune 1, 2004, a reduction in these
development standards may be granted when an applicant agrees to pay an
affordable housing in-lieu fee to off-set the loss of affordable rental housing
stock. The fee shall be paid according to a resolution adopted by City Council.
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Ordinance No. 3657
C. Refurbishing_and Restoration: All main buildings, structures, fences,patio
enclosures, carports, accessory buildings, sidewalks, driveways, landscaped areas,
and additional elements as required by the Planning Commission (or Zoning
Administrator for exempted units as defined in Section 235.04) shall be
refurbished and restored as appropriate for a high standard of appearance, quality,
and safety.
D. Affordable Housing: Where a project consists of 3 units or more, the applicant
shall agree to sell'or-rent at affordable prices 25 percent of the total units to low-
and moderate-income households, with a minimum of 20 percent of the affordable
units affordable to low-income households for a period of sixty(60) years. If the
units are to be made available for purchase, the maximum sales price of units
intended for low- or moderate-income households shall not exceed 2.5 times the
annual median income for such households as defined by the California Health
and Safety Code, Section 50093. Resale controls shall be included as a deed
restriction. If the units are to be for rent, the maximum rent allowed shall keep the
units within the low- or moderate-income housing stock.
SECTION 5. That Section 235.10 of the Huntington Beach Zoning and Subdivision
Ordinance is hereby amended to read as follows:
23 5.10 Tenant Benefits and Notification
A. Notices of Intent: Applicants for condominium conversions shall give notice
of intent to convert to existing tenants and prospective tenants as required by
Sections 66452.8 and 66452.9 of the California Government Code. The notice of
intent shall be posted on-site in at least one location readily visible to tenants.
B. Notices of Public Hearinz and Decisions.
I. The Department shall notify the residents of the public hearing not less
than 10 days prior to the proposed hearing date on the application. The
notice shall include notification of the tenant's right to appear and be
heard. The Department shall notify the residents of the decision of the
Planning Commission within ten days and shall include a copy of all
conditions imposed on the project. The list of names and addresses of the
residents of each unit in the conversion project shall be current as of the
day of submittal and shall be certified as such by the applicant. Service
shall be by mail at the expense of the applicant.
2. Final Map or Parcel Map Approval: The applicant shall give written
notification to each tenant with 10 days of approval of the final map or
parcel map. The applicant shall also provide notice of application for
public report, as issued by the California State Department of Real Estate,
which shall be available on request.
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Ordinance No. 3657
C. Tenants' Discounts: Any present tenant of any unit at the time of an application
for conversion shall be given a nontransferable right of first refusal to purchase
the unit occupied at a discount of the price offered to the general public. The
amount of the discount shall be based on the longevity of each tenant, and shall be
ratified by the applicant at the time of conversion.
D. Vacation of Units: Each non-purchasing tenant, not in default under the
obligations of the rental agreement or lease under which the subject unit is
occupied, shall have not less than 120 days after the date of the tentative map
approval by the City or'until the expiration of the tenant's lease to find substitute
housing and to relocate. Tenants shall be permitted to terminate leases or tenancy
with one month's notice at'any time after a conversion application.
E. No Increase in Rent: A tenant's rent shall not be increased within two months
prior to a project application, nor shall the rent be increased for two years from
the time of the filing of the project application or until relocation takes place. In
addition, all non-purchasing tenants 62 years old or older and all non-purchasing
medically-proven permanently disabled tenants shall receive a lifetime lease.
Rents for such tenants shall not be increased for 2 years after the filing of the
project application.
F. MovingExpenses:penses: The applicant shall provide moving expenses equal to three
times the monthly rent to any tenant, in compliance with all the terms of the
subject lease and/or financing, who relocates from the building to be converted
after City approval of the use permit authorizing conversion of the units. When
the tenant has given notice of his intent to move prior to City approval of the use
permit, eligibility to receive moving expenses shall be forfeited.
G. Relocation Assistance: Relocation assistance shall be provided by the applicant to
non-purchasing tenants for a minimum period of four months following the
tentative map approval. Information on available rental units in the same general
area with costs comparable to the preconverted apartments shall be provided by
the applicant on a calendar quarterly basis. Copies of the list shall be posted on-
site, dated, and provided to the Department. The following non-purchasing
tenants shall receive a minimum of 12 months'relocation time, measured from the
tentative map approval,to find replacement housing:
1. Tenants with low or moderate incomes; and
2. Tenants with minor children in school.
H. Discrimination: No discrimination in the sale of any unit shall be based on race,
color, creed, national origin, sex, or age, and a statement to this effect shall be
included in the covenants, conditions, and restrictions. Projects created
exclusively for the purpose of providing senior citizen housing shall be exempted
from this requirement.
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Ordinance No. 3657
SECTION 6. That Section 235.12 of the Huntington Beach Zoning and Subdivision
Ordinance is hereby amended to read as follows:
235.12 Effect of Proposed Conversions on the City's Low-and Moderate-Income Housing
Supply
In reviewing requests for the conversion of existing apartments to condominiums, the Planning
Commission (or Zoning Administrator for exempted units as defined in Section 235.04) shall
consider the following:
A. Whether displacement of tenants, if the conversion is approved, would be -
detrimental to the health, safety, or general welfare of the community;
B. The role the rental units play in the existing housing rental market and whether
they serve low- and moderate income households; and
C. The need and demand for lower-cost home ownership opportunities which are
increased by the conversion of apartments to condominiums.
SECTION 7. That Section 235.14 of the Huntington Beach Zoning and Subdivision
Ordinance is hereby amended to read as follows:
235.14 Bonus for Including Low- and Moderate-Income Housing
Consistent with the requirements of Section 65915.5 of the California Government Code,the
City shall offer a density bonus or other incentives of equivalent financial value to condominium
conversions including low- or moderate-income housing units or lower=income household units.
When an applicant for approval to convert apartments to a condominium project agrees to
provide at least 33 percent of the total units of the proposed condominium project to persons of
low or moderate income, as defined in Section 50093 of the California Health and Safety Code,
or 15 percent of the total units to lower-income households, as defined in Section 50079.5 of the
California Health and Safety Code,the Planning Commission shall either (1) grant a 25 percent
density bonus or (2)provide other incentives of equivalent financial value. Any density bonus or
other incentives of equivalent financial value provided under this section shall be governed by
the requirements of Section 235.08.
A. For purposes of this section, "density bonus" means an increase in units of 25
percent over the number of apartments permitted and provided within the existing
structure or structures proposed for conversion. "Other incentives of equivalent
financial value" shall not be construed to require the City to make any cash
transfer payments or other monetary compensation to the applicant, but may
include the reduction or waiver of any required fees or the condominium
conversion standards prescribed in Section 235.08.
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Ordinance No. 3657
B. No applications for a density bonus shall be accepted if the apartments proposed
for conversion constitute a housing development for which a density bonus was
provided under the provisions of Section 230.14.
SECTION 8. That Section 235.16 of the Huntington Beach Zoning and Subdivision
Ordinance is hereby amended to read as follows:
235.16 Findings
The Planning Commission (or Zoning Administrator for exempted units as defined in Section
235.04) may approve an application for a condominium conversion if it finds that the proposed
conversion meets the following requirements:
A. That all the provisions of the Subdivision Map Act, this chapter, and other
applicable provisions of this ordinance are met; and
B. That the proposed conversion is consistent with the General Plan and any
applicable specific plan; and
C. That the proposed conversion will conform to the provisions of this ordinance in
effect at the time of the project approval, except as otherwise provided in this
chapter; and
D. That the overall design and physical condition of the condominium conversion
achieves a high standard of appearance, quality, and safety; and
E. That either (1) the proposed conversion will not displace a significant percentage
of low- or moderate-income, permanently or totally disabled, or senior citizen
tenants or delete a significant number of low- and moderate-income rental units
from the City's housing stock at a time when no equivalent housing is readily
available in the Huntington Beach area, or(2)the applicant agrees to pay an
affordable housing in-lieu fee pursuant to Section 235.08 B.; and
F. That the dwelling units to be converted have been constructed and used as rental
units for at least 5 years prior to the application for conversion; and
G. That the applicant has not engaged in coercive, retaliatory action regarding
tenants after the submittal of the first application for city review through the date
of approval.
H. That either(1) the project is not located within the coastal zone, or(2) the project
is located within the coastal zone and the existing use to be converted is not a
visitor serving use (including hotels).
SECTION 9. This ordinance shall become effective 30 days after its adoption.
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Ordinance No. 3657
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 2nd day of August , 2004.
ATTEST: APPROVED AS TO FORM:
City Clerk City ttorney
INITIAT AND APP VED:
REVIEWED AND APPROVED:
.� irector of Planning
City /drainistrator
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Ord. No. 3657
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN, the duly appointed, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of Huntington
Beach is seven; that the foregoing ordinance was read to said City Council at a regular
meeting thereof held on the 19th day of_July, 2004, and was again read to said City
Council at a regular meeting thereof held on the 2nd day_of August,2004, and was
passed and adopted by the affirmative vote of at least a majority of all the members of
said City Council.
AYES: Sullivan, Green, Boardman, Cook
NOES: None
ABSENT: Houchen,Hardy, Coerper
E
ABSTAIN: None
I,Joan L.Flynn,CITY CLERK of the City of Huntington
Beach and ex-officio Clerk of the City Council,do hereby
certify that a synopsis of this ordinance has been
published in the Huntington Beach Fountain Valley
Independent on August 12,2004.
In accordance with the City Charter of said City
Joan L. Flynn, City Clerk ity Clerk and ex-offi Clerk
. °�P. ► Deputy City_Clerk of the City Council of the City
of Huntington Beach, California