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HomeMy WebLinkAboutZoning Text Amendment 04-01 - Condominium Conversions - Publ � _ PROOF OF PUBLICATION CITY OF HUNTINGTON BEACH LEGAL NOTICE STATE OF CALIFORNIA) y, ORDINANCE NO.3657 Adopted by the City Council SS. on AUGUST 2,2004 "AN ORDINANCE OF County of Orange ) THE CITY OF HUNTING- TON BEACH AMENDING CHAPTER 235 OF THE HUNTINGTON BEACH AND am a Citizen of the United States and a SONNN ORDINANCE BDEI- resident of the County aforesaid; I am CAOIN D 0MI MENU M CONVERSIONS." over the age of eighteen years, and not a SYNOPSIS: party to or interested in the below ' ZONING T E X T AMENDMENT N0. 04-01 MODIFIES THE HUN- entitled matter. I am a principal clerk of AND SU BEACH ZONING AND SUBDIVISION OR- THE the HUNTINGTON BEACH INDEPENDENT, a PU POSEEOFFOR UPDATING newspaper of general circulation, printed CONDOMINIUM CON- VERSION REQUIREMENTS and published In the City of Huntington FOR CONSISTENCY WITH �TODAY'S CONDITIONS County of Orange State Of AND BY STREAMLINING Beach THE ENTITLEMENT/ PROCESS FOR SMALL California, and that attached Notice is a VEORTDDPROJECTS WITHOUTCAP- true and complete copy as was printedPRO THE TE BY THE CITY. THE TEXT AMENDMENT and published In the Huntington Beach PROVIDES RELIEF T FUTURE APPLICANTS and Fountain Valley issues of said APPLYING FOR CONDO- MINIUM CONVERSIONS AND TO RESIDENTS newspaper to wit the issue(s) of: ATTEMPTING LE GALIZE THE OWNENE RSHIP STATUS OF THEIR UNITS. THE ORDINANCE CHANGES CONTINUE TO ENSURE PROTECTION OF EXISTING RENTERS, August 12 , 2004 ADDRESS LOSS OF RENTAL HOUSING, RE- QUIRE PROVISION OF AFFORDABLE HOUSING OR _AN AFFORDABLE _ HOUSING IN-LIEU FEE IN THE EVENT CURRENT CODE REQUIREMENTS i declare, under penalty of perjury, that CANNOT BE MET, AND ROVIDE FOR MINIMUM HEALTH AND SAFETY the foregoing is true and correct. STANDARDS. COPIES OF THIS ORDI- NANCE ARE AVAILABLE IN THE CITY CLERK'S OFFICE. PASSED AND ADOPTED Executed on August 12 2004 by the City Council of the City of Huntington at Costa Mesa California. Beach at a regular, meeting held August 2, 2004 by the following roll call vote: AYES: Sullivan, Green, Boardman,Cook NOES:None ABSENT: Houchen, Hardy,Coerper This ordinance is effec- tive 30 days after adoption. CITY OF HUNTINGTON BEACH Signature 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 714-536-5227 JOAN L.FLYNN, CITY CLERK N Published Huntington Beach Independent Au- gust 12,2004 082-854 J� OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINCTON BEACH TO: entral Library Banning treet!Library Main Street Library Helen Murphy Branch Library Oak View Library FROM: Geigigie BFeekway, City Clerk SUBJECT: Ordinance Posting DATE: Attached is �iQZ)1�rt)Aj� -7-- for Public Posting. Thank you, epu er x5210 Please sign and return. Received by Date g lordinance/ordpost.doc L-J,me OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Central Libra �ni Stre�etibrary Mtreet a Helen Murphy Branch Library Oak View Library FROM: kwey, City Clerk SUBJECT: Ordinance Posting DATE: 'f 61d Attached is A GL-' 036 - for Public Posting. Thank you, epu i le x521 Please sign and return. Received by Date g lordinance/ordpost.doc FOB OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Central Library Bannin Street Library ain Street ib Helen Murphy Branch Library Oak View Library FROM: e.,m jie BI ockway, City Clerk SUBJECT: Ordinance Posting DATE: Attached is �/ ��'�'J �' \,6(0S / for Public Posting. Thank you, tCitDepCI k Please sign and return. Received by Date g lordinance/ordpost.doc OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Central Library Banning Street Library Main Street Library len MUrnhv Branch Library Oak View Library FROM: 6ef9I9+eBFesl aY, City Clerk SUBJECT: Ordinance Posting DATE: D 6l Attached is for Public Posting. Thank you, *eier Please sign and return. Received by Date g lordinancelord post.doc OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Central Library Banning Street Library Main Street Library Helen Mufphy43ranch Library Oak View Library FROM: , City Clerk SUBJECT: Ordinance Posting DATE: /0%z Attached is All/, -36 ,S- for Public Posting. Thank you, epu le x521 Please sign and return. Received by Date g lordinancelordpost.doc +� CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION HUNTINGTON BEACH TO: Jennifer McGrath, City Attorney FROM: Joan L. Flynn, City Clerk R e C E / V e b DATE: August 4, 2004 AW O 5 2O64 Of Runungan 8e SUBJECT: Request for Clarification of Ordinance No. 3657 ItyAnom®ysO� ch ce At the August 2, 2004 Council Meeting, the City Council adopted Ordinance No. 3657 (amended and approved for re-introduction at the 7/19/04 Council Meeting) amending Chapter 235 of the Huntington Beach Zoning and Subdivision Code relating to condominium conversions. The date of June 1, 2004 was inadvertently omitted from Section 235.04, paragraph two. Please refer to attached copies for your convenience and confirm your opinion by checking.the appropriate box and signing below. Can be considered a typing error, be corrected and submitted for recordation without a return to Council. o ❑ Needs to return to Council. G7 rd t, fT'4 City Attorney's comments and signature: CD By: Cit�Atto-rney/Assistant/[Wputy �Iq I0� G:Patricia/attorneyclarificationmemo H. B. INDEPENDENT PUBLISH DATE: 8/12/04 CITY OF HUNTINGTON BEACH LEGAL NOTICE ORDINANCE NO. 3657 Adopted by the City Council on AUGUST 2, 2004 "AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 235 OF THE HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE RELATING TO RESIDENTIAL CONDOMINIUM CONVERSIONS." SYNOPSIS: ZONING TEXT AMENDMENT NO. 04-01 MODIFIES THE HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE FOR THE PURPOSE OF UPDATING CONDOMINIUM CONVERSION REQUIREMENTS FOR CONSISTENCY WITH TODAY'S CONDITIONS AND BY STREAMLINING THE ENTITLEMENT PROCESS FOR SMALL CONDO PROJECTS CONVERTED WITHOUT APPROVAL BY THE CITY. THE TEXT AMENDMENT PROVIDES RELIEF TO FUTURE APPLICANTS APPLYING FOR CONDOMINIUM CONVERSIONS AND TO RESIDENTS ATTEMPTING TO LEGALIZE THE OWNERSHIP STATUS OF THEIR UNITS. THE ORDINANCE CHANGES CONTINUE TO ENSURE PROTECTION OF EXISTING RENTERS, ADDRESS LOSS OF RENTAL HOUSING, REQUIRE PROVISION OF AFFORDABLE HOUSING OR AN AFFORDABLE HOUSING IN-LIEU FEE IN THE EVENT CURRENT CODE REQUIREMENTS CANNOT BE MET, AND PROVIDE FOR MINIMUM HEALTH AND SAFETY STANDARDS. COPIES OF THIS ORDINANCE ARE AVAILABLE IN THE CITY CLERK'S OFFICE. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held August 2, 2004 by the following roll call vote: AYES: Sullivan, Green, Boardman, Cook NOES: None ABSENT: Houchen, Hardy, Coerper This ordinance is effective 30 days after adoption. CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 714-536-5227 JOAN L. FLYNN, CITY CLERK ✓6- � Council/Agency Meeting Held: b D �' ��� Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied 14 C Jerk Sign re Council Meeting Date: July 6, 2004 Departmen Number: PL04-10 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAY/OR AND CITY COU CIL MEMBERS 41 SUBMITTED BY: PENELOPE CULBRE RAFT, City A m nistrator PREPARED BY: JENNIFER MCGRA ity Attorney HOWARD ZELEFSKY, Director of Planning ROSS CRANMER, Director of Building and Safety �" _ port— SUBJECT: APPROVE ZONING TEXT AMENDMENT NO. 04-01 (CONDOMINIUM CONVERSIONS) IFs-t,t,m,,t,f Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Transmitted for City Council review is Zoning Text Amendment No. 04-01, a request by the City of Huntington Beach to amend Chapter 235, Condominium Conversions, of the Huntington Beach Zoning and Subdivision Ordinance. The purpose of the amendment is to update the original ordinance adopted in 1984 for today's conditions and to establish procedures for permitting units previously converted to condominiums without City approval. Due to the urgent nature of these ordinance amendments and at City Council's direction, the Planning Commission has not reviewed the recommended ordinance changes. Staff recommends the City Council approve the request as submitted (RecommendedPtion) and adopt the ordinance amending the Condominium Conversion requirements. ' Funding Source: Not applicable. Recommended Action: . : w STAFF RECOMMENDATION: ' ; Motion to: "Approve for introduction Ordinance No. 661 and Zoning Text Amendment No. 04-01 with findings for approval (ATTACHMENT NO. 1)." 12 i r REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 Alternative Action(s): The City Council may make the following alternative motion(s): 1. "Deny Zoning Text Amendment No. 04-01 with findings." 2. "Continue Zoning Text Amendment No. 04-01 and direct staff accordingly." Analysis: A. PROJECT PROPOSAL: Applicant: City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648 Location: Citywide Zoning Text Amendment No. 04-01 is an amendment to the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) to update the condominium conversion process. The recommended amendments create exceptions for apartments and stock cooperatives with two to four units on a parcel that were sold as condominium units without City approval of a conditional use permit and tentative parcel map prior to the effective date of these proposed ordinance changes. Additionally, staff recommends amending the ordinance to clarify the conversion process and necessary permits and reports for future conversion projects of any size. B. BACKGROUND In 1984, the City Council adopted an ordinance code governing the conversion of rental housing to for-sale units. Any existing rental housing may be converted to condominiums, community apartments, or stock cooperatives provided the dwelling units were constructed and used as rental housing for a minimum of five years prior to application and required permits are approved by the City. Such conversions are subject to the Huntington Beach Zoning and Subdivision Ordinance (ZSO) Chapter 235 and the California Government Code Sections 66410 — 66499.58 (Subdivision Map Act). It has come to the City of Huntington Beach's attention that at least 26 buildings representing approximately 122 apartment units were converted and sold as condominium units without benefit of City approval. It appears that most conversions occurred on projects with between two and four units. The City is committed to assisting these residents with obtaining the correct permits for permitting any condo projects without proper City permits. To this end, City staff recommends modifications to the zoning code requirements for this special class of units. The recommended modifications apply only to 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 the effective date of this revised ordinance. PL04-10 Condo Conversions -2- 6/23/2004 10:04 AM REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 Recently, City Council directed staff to evaluate and prepare updates to the existing condominium conversion ordinance. C. STAFF ANALYSIS AND RECOMMENDATION: Strict standards for conversion projects were adopted in 1984 because the City was concerned with the loss of rental units, which typically provide housing for lower income residents and those unable to purchase homes. A healthy city's economy and land use base combines and provides a myriad of housing types from rental to ownership projects. Assuring the availability of adequate housing for all social and economic sectors of the City's present and future population is an important goal of the City. In addition, the City felt that units owned individually should be held to a higher standard. In the late 1970's and early 1980's the City saw an increase in conversion projects in response to the real estate market. There are several community concerns, which the conversion standards were written to address. First is the loss of rental housing stock mentioned above. This is particularly important, as trends have been to build ownership housing over rental housing in the last two decades. In addition, vacancy rates within the City are very low, indicating a need for rental housing. Second, condominium conversions result in displacement of existing tenants. These tenants may find it difficult to secure equivalent housing, may be low-moderate income, single parents or elderly, and would be forced to pay moving expenses that were not anticipated. These concerns are particularly important because seniors and low-moderate income tenants are least able to compete in a tight rental market. Third, the condominium conversion standards were written to address physical inadequacies because buildings designed as apartments in the past were not typically constructed on a par with buildings designed for ownership. In fact, older apartment buildings may have deferred maintenance on major items such as, roofing, painting, and slab or foundation repairs. Condominium Conversion requests currently require a conditional use permit and a tentative map to be approved through the public hearing process before the Zoning Administrator or Planning Commission based on the size of the complex. The current code regulations address compliance with both Planning and Building codes. Staff is recommending several amendments to the existing code requirements in order to streamline the process for units converted without approval by the city and also to update requirements for any conversions requested in the future. The following analysis addresses amendments to both Planning and Building issues. Planning Issues Currently, Chapter 235 of the HBZSO outlines a detailed and demanding process for requests to convert existing rental housing into ownership units. Each condo conversion project must follow certain procedures while proceeding through the conversion process. The process includes provisions for tenant notification, relocation assistance, first right-of- refusal for purchasing, lifetime tenancy for seniors, extra assistance for low-income or single PL04-10 Condo Conversions -3- 6/23/2004 10:04 AM REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 parents, a vacancy rate analysis, creation of contingency funds, and conversion plans including rental histories, appliance repair/replacement history, tenant demographic information, and projected homeowner's association budget. Additionally, projects must meet current parking and landscaping requirements of the Zoning Code. Staff recommends amendments to bring zoning related requirements up to date with current practices as discussed in Proposed Modifications below. Buildinq and Safety Issues The current conversion code requires all properties to be brought up to current State and City Uniform Codes and National Electric Code. Since the adoption of the original ordinance in 1984, construction codes have been modified to be dramatically more restrictive. Therefore, the current conversion ordinance requires modifications that would require costly physical improvements of the buildings. For other uses not covered by this ordinance the upgrade of an existing structure to existing code is not required as long as the use is not significantly changed. In this case the units remain residential before and after the conversion, thus, staff is recommending ordinance amendments that will simply assure minimum safety standards are addressed. Current zoning code requires applicants to provide a physical elements report prepared by a licensed structural engineer, civil engineer, or architect detailing the structural condition, any evidence of soils problems, code violations, useful life, and any apparent deferred maintenance of all elements of the property. This means that the report must evaluate and report on the physical condition of foundations, electricity, plumbing, utilities, walls, ceilings, windows, frames, recreational facilities, sound transmissions of each building, mechanical equipment, parking facilities, and drainage facilities. A licensed mechanical contractor shall also provide a detailed report regarding the condition of and cost to repair or replace appliances and heating and cooling equipment. A termite and pest control specialist shall also describe any infestation or dry rot and the steps necessary to mitigate an infestation. A report on interior and exterior painting is required and a roofing contractor must report on the condition and remaining life of the roof. Staff recommends amendments to bring Building and Safety related requirements up to date with current practices as discussed in Proposed Modifications below. Proposed Modifications It appears that most conversions occurred on projects with between two and four units. City staff recommends that the Zoning and Building Code requirements described above be modified for this special class of units. The recommended modifications apply only to 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 the effective date of this revised ordinance. In these cases, the following will be required: PL04-10 Condo Conversions -4- 6/23/2004 10:04 AM REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 1. Conditional Use Permit 2. Tentative Parcel Map 3. Covenants, Conditions and Restrictions (CC&R's) 4. Refurbishing and restoration for a high standard for appearance, quality, and safety 5. Building Inspection to verify that the minimum safety standards are addressed and to determine if there are any obvious health and safety code hazards 6. Compliance with current parking and landscaping requirements This modified list of permit requirements is dramatically less intensive and involved than the procedures and reports required for conversion projects in the current code. Staff recommends this streamlined process because in the case of the special class of units converted without City approval the tenants have already been displaced, the affordable rental units have already been lost, and the property owners have purchased the units with appliances and property conditions as they existed on the day of sale. Therefore, the extra procedures designed to protect existing tenants and future owners are not necessary. However, it is still necessary to hold a public hearing to permit converted units. As part of the public hearing process, the reviewing body will retain the ability to require upgrades to substandard properties as deemed necessary to establish the quality, appearance, and safety standards dictated by property maintenance code regulations. These measures will ensure neighborhood compatibility and lengthen the life of the project. As noted above, each property must also demonstrate compliance with current parking and landscaping requirements of the HBZSO. Many older apartment complexes constructed from the 1960's through the early 1990's may find it difficult to meet current parking requirements, as the space for parking stalls and vehicular maneuvering is not available. One alternative to address deviations in parking and landscaping is to request approval of a variance. Variances, however, may only be approved if there is a land related hardship or special circumstances, such as size, shape, topography, location or surroundings, which renders compliance with the zoning code infeasible. Variances may not be a grant of special privilege, may not be materially detrimental to the general welfare or injurious to properties in the same zone classification, and may not adversely affect the General Plan. Furthermore, variances may only be approved if it is necessary to preserve the enjoyment of one or more substantial property rights. The Zoning Administrator, as the approving body for this special class of units, must positively affirm all of these findings for approval prior to rendering a decision on a variance request. It will likely be difficult to approve a variance in these cases because there may not be a land related hardship associated with the request. For instance, most triplexes and fourplexes were constructed on property that is the same size and shape as all other surrounding multi-family zoned properties. If the properties are regular in shape and size, there are no grounds to allow deviations from zoning code development standards. Additionally, approval of a variance for projects that were completed without proper City approval may be construed as granting a special privilege that is not afforded to other projects in the same zoning district. It should be noted, however, that any property owner may apply for a variance if they choose to do so, the request will be evaluated on its own merits, and deliberated in a public hearing forum before the Zoning Administrator. PL04-10 Condo Conversions -5- 6/23/2004 10:04 AM REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 Another option to the variance would be to offset deficient parking or landscaping through an affordable housing in-lieu fee. Staff is currently conducting a nexus study to determine an appropriate fee amount. The nexus study will analyze the average cost of financing the gap between a market rate rental unit and an affordable unit with deed restrictions ensuring affordability for a low-income family for a minimum 60-year term. Once the average cost is determined, staff will then be able to calculate an in-lieu fee amount dependent upon the square footage of each unit. Property owners would then be able to choose to apply for a variance requesting relief from the parking and landscaping requirements or would agree to pay an in-lieu fee to be excused from providing the improvements. Staff is recommending that the affordable housing in-lieu fee option apply only to the special class of units converted without City approval. All other future conversion projects would be required to provide current parking and landscaping requirements as well as provide affordable housing units. All property owners are encouraged to contact their title insurance companies to determine coverage of permit fees, if any. The in-lieu fee will be presented to City Council at a later date and staff will recommend adoption of a resolution establishing the fee amount. Staff is also recommending updates to the Condominium Conversion ordinance to require provision of affordable housing consistent with the citywide affordable housing policy. Provision of actual affordable housing units will apply only to future requests for conversions. Typical Fees for Special Class of Units The proposed modifications for the special class of previously converted units will be subject to entitlement and processing fees as follows: ISSUE *ASSOCIATED COST Tentative Parcel Map $3,994 Conditional Use Permit $3,502 Variance (only if applicable) $2,402 Coastal Development Permit (only if applicable) $2,841 Affordable Housing In-Lieu Fee Up to $20,000 estimated per unit — to be determined by nexus study underway Building and Safety Inspection $59.04/hour Final Map Processing Planning Department: $1,073 Public Works: $1,744 PL04-10 Condo Conversions -6- 6/23/2004 10:04 AM REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 * Estimated costs represent fees established by City Council resolution for processing permits. Fees do not include any additional costs, which may be incurred, to prepare tentative parcel maps, site plans, floor plans, or mailing labels. SUMMARY: Zoning Text Amendment No. 04-01 modifies the Huntington Beach Zoning and Subdivision Ordinance for the purpose of updating condominium conversion requirements for consistency with today's conditions and by streamlining the entitlement process for small condo projects converted without approval by the city. The recommended text amendment provides relief to future applicants applying for condominium conversions and to residents attempting to legalize the ownership status of their units. The recommended ordinance changes continue to ensure protection of existing renters, address loss of rental housing, require provision of affordable housing or an affordable housing in-lieu fee in the event current code requirements cannot be met, and provide for minimum health and safety standards. Staff recommends that Zoning Text Amendment No. 04-01 be approved for the following reasons: ➢ Decreases processing time for applicants ➢ Reduces application costs for property owners ➢ Continues to provide for quality development ➢ Ensures protection of existing renters and future property owners ➢ Provides for affordable housing or payment of an affordable housing in-lieu fee in cases where current parking or landscaping codes cannot be met ➢ Ensures compliance with reasonable health and safety standards Environmental Status: The proposed project is categorically exempt pursuant to Class 20, City Council Resolution No. 4501, which supplements the California Environmental Quality Act. Attachment(s): City Clerk's Page Number No. Description 1. Findings for Approval 2. Ordinance No. ( s Including Legislative Draft 3. Power Point Slide Presentation RCA Author: Jane James/Scott Hess PL04-10 Condo Conversions -7- 6/23/2004 10:10 AM ATTACHMENT 1 ATTACHMENT NO. 1 SUGGESTED FINDINGS ZONING TEXT AMENDMENT NO. 04-01 SUGGESTED FINDINGS FOR APPROVAL —ZONING TEXT AMENDMENT NO. 04-01: 1. Zoning Text Amendment No. 04-01 to amend Chapter 235, Condominium Conversions, of the Huntington Beach Zoning and Subdivision Ordinance is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan because the amendments streamline entitlement processing, continue to protect existing renters and future property owners, and establish exemptions for a certain class of units converted to condominiums without approval by the City. 2. A community need is demonstrated for the changes proposed. The existing condominium conversions standards are not consistent with today's conditions and the City desires to adopt unique provisions for units converted without approval by the City. 3. Its adoption will be in conformity with public convenience, general welfare and good zoning practice by decreasing processing time for applicants, reducing application costs for property owners, continuing to provide for quality development, ensuring protection of existing renters and future property owners, providing for affordable housing or payment of an affordable housing in-lieu fee in cases where current code can not be met, and ensuring compliance with minimum health and safety standards. 4. The City Council finds that the project will not have any significant effect on the environment and is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Class 20, City Council Resolution No. 4501, which supplements the California Environmental Quality Act. ATTACHMENT 2 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 approval: 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. 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 ord/04zoning/chap 235 revised/7/14/04 1 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 235.08 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. ord/04zoning/chap 235 revised/7/14/04 2 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 ord/04zonino/chap 235 revised/7/14/04 3 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; 9. 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. ord/04zoning/chap 235 revised/7,'14/04 4 D. Vacancy Rate Analysis: A citywide vacancy rate analysis for multiple-family 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 June 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. ord/04zoning/chap 235 revised/7/20/04 5 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 Hearing and Decisions. 1. 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. ord/04zoning/chap 235 revised/7/14/04 6 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 months 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. Moving Expenses: 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. ord/04zoning/chap 235 revised/ /14/04 7 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. ord/04zoning/chap 235 revised/7/14/04 8 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. ord/04zoninechap 235 revised/7/14/04 9 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 Aldministrator ord/04zoning/chap 235 revised/7/14/04 10 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 re ular 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 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 Deputy City Clerk of the City Council of the City of Huntington Beach, California Legislative Draft (July 19, 2004 Proposed Revisions — Bolded) Chapter 235 Residential Condominium Conversions Ordinance Sections: 235.02 Definitions 235.04 Permits Required 235.06 Required Reports and Information 235.08 Condominium Conversion Standards 235.10 Tenant Benefits and Notification 235.12 Effect of Proposed Conversions on the City's Low- and Moderate-income Housing Supply 235.14 Bonus for Including Low- and Moderate-Income Housing 235.16 Findings 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 approval: 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. (3334) 1egisdrft/zoning04/Chp235-LD 7-04 1 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. D. Proiect: 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. FEW PUFPGS of this definition, e term "existing" shall Fnean a building penstF eted prior e ' 11 DU E. Affordable unit: A residential unit, sold to or occupied by a tenant earning up to 4n 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. 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 cooperatives and any other subdivision which is a conversion of existing rental housing shall be subject to the additional requirements of this chapter. Conversions of IQ 9F more units shall be subject to conditional use permit approval by the Planning Commission Zoning AdrninietF pursuant to Chapter 241. Within the coastal zone, a coastal development permit shall also be required. (3334) 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 the effective date of this ordinance (date): 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 235.08 A. and to determine if there are any obvious health and safety code violations. 1egisdrft/zoning04/Chp235-LD 7-04 2 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. (3334) 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. (3334) 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, or civil engineer or architect, describing in detailing 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. 2. A report by a California-licensed applianGe Fepair mechanical contractor detailing the age, condition, expeGted 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. SUGh FepeFt shall be updated within 6 menths after the elese of eSGrew, and Any infestation shall be remedied prior to sale. 1egisdrft/zoning04/Chp235-LD 7-04 3 4. "� �J "F "��S�tuill he submitted fer review with a statement regarding any known eyidenne of 6eiIS nrehlemG relating to the StF �n�[TRCtUFeS-.. 45. 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. 56. 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 made,and selef 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 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; legisdrf4/zoning04/Chp235-LD 7-04 4 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; 9. 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. D. Vacancy Rate Analysis: A citywide vacancy rate analysis for multiple-family rental units for the past twelve months shall be submitted. JegisdrWzoning04/Chp235-LD 7-04 5 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. 235.08 Condominium Conversion Standards A. Minimum Construction Standards: Codes and Nateonal E!eGtF*Gal Code: The project shall be brought into compliance with the minimum construction all UnifeFm Godes and standards as listed below unless the Building Official approves an alternate method of construction. as adopted and amended by the State of Galif0FRda and the Gity Pprior 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. unless funds have been Planed inte eSGFO i to assUFe ooMPletien of such eerFFeGti a WE)Fk Prier tG the GIOSinn of venrow of any unit in the PYelec-t..v..� 1.,..w� av the vrvvrrT�v� a>aav� . 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 1egisdrWzoning04/Chp235-LD 7-04 6 conditional use permit and tentative parcel map prior to June 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. C. Refurbishinq and Restoration: All main buildings, structures, fences, patio enclosures, carports, accessory buildings, sidewalks, driveways, landscaped areas, and additional elements as required by the Zoning 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. ontin engy Fees: The intent of the City in regUiring the Gr ati of a sUrety fer 1Inexneeted or emergenny renair3 to eemrvmen .gene• in the int st of the eo emirs aesth n and mental main anee of the TrrceFev c-vt�cQBR , etl�, uncreF�FFBRmcrmrr-rr�crrrrtP'F3urrcc-vrmc nomml laity1 as well as to nreteot the general welfare, p blie health,-and unit, the appliGant shall Genvey to the 1 1 a minims i fee of d`200 ner dwelling unit. When 50 neroent or mere of the total units on the pFojeGt has been r the r within 30 days, shall GOnvey sueh fee feF eaGh of the unsold units. SuGh funds shall be used solely and exell Isively as a oentingenGy fund for emergencies whinh may aLise relating to even mane areas, u exterior norFions of dwelling nits and rd sl lnh,.,e.t.,heF restorafien or renairs is may he assl reed by the hnmea��inersl assGGiatf9n-. €. D. Affordable Housing: Where a project consists of 5 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. 1egisdrft/zoning04/Chp235-LD 7-04 7 235.10 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 Hearing and Decisions. 1. 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. 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 1egisdrft/zoning04/Chp235-LD 7-04 8 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. Movinq Expenses: The subdivider 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 subdivideF 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 subdivide 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: a-1. Tenants with low or moderate incomes; and b 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. 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 Zoning edmiRiStFater o 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 1egisdrft/zoning04/Chp235-LD 7-04 9 C. The need and demand for lower-cost home ownership opportunities which are increased by the conversion of apartments to condominiums. 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 der applicant, but may include the reduction or waiver of any required fees or the condominium conversion standards prescribed in Section 235.08. 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. 235.16 Findings The Zoning AdministratOF 0r 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 1egisdrft/zoning04/Chp235-LD 7-04 10 IF 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). (3334) Iegisdrft/zoning04/Chp235-LD 7-04 ] 1 ATTACHMENT 3 CO DOMINIUM CONVERSIONS _ CITY COUNCIL MEETING JULY 6, 2004 ZONING TEXT AMENDMENT NO. 04-01 BACKGROUND L ono onversio- -n o finance adopted 1984 ■ S bj ect to approval of CUP and TPM • Some units converted without City approval ■ At least 26 buildings representing 122 units ■ Council directed staff to amend Chapter 235 creating two tiers of development standards ■ 1) Assist property owners of converted units ■ 2) Update standards for today's conditions and fu ure projects ANALYSIS ■ Original ordinance a resses: ■ Lc ss of rental housing stock ■ Displacement of tenants ■ Pf ysical inadequacies of structure • Ori inal ordinance requires: ■ T nant notification, relocation assistance, first right-of- re sal, vacancy rate analysis, contingency funds, co version plans ■ Current parking and landscaping requirements ■ Current State and City Uniform Codes and National Electric Code ■ PI ysical Elements report [ANALYSIS_ ■ Prop Dsed Modifications 4 units sold without Cityapproval) ■ CUP to Zoning Administrator ■ T M to Zoning Administrator ■ Establish CC&R's ■ Refurbish/Restore to typical Property Maintenance standards ■ Building inspection for minimum safety standards and obvious health and safety code hazards ■ Current parking and landscaping requirements ANALYSIS ■ ulding inspection ■ Draft stops ■ Electrical branch circuits ■ Smoke detectors ■ Ground Fault Circuit Interrupter ■ Obvious safety code hazards • Parking and Landscaping Options ■ V triance — difficult to approve ■ A fordable Housing In-Lieu fee —nexus study underway ANALYSIS ypiCal Fees ■ T M - $3,994 ■ CUP - $3,502 ■ Vz riance (if applicable) - $2,402 ■ Coastal Development Permit(if applicable) - $2,841 ■ Alfordable Housing In-Lieu Fee—Up to $20,000/unit ■ Bt ilding Inspection- $59.04/hour ■ Fi ial Map Processing—Planning $1,073; Public Works $1 744 Cost estimates for established City fees only — additional costs to prepare application submittals ANALYSIS ■ o men ment or uture Conversion Proj cts: ■ Protects tenants ■ Evaluates physical structures ■ Requires property upgrades ■ Requires affordable housing consistent with Citywide policy woo ION • Recommend approval of ZTA 04-01: ✓D creases processing time ✓R duces application costs ✓P ovides for quality development ✓P otects renters and future owners ✓P ovides affordable housing or in-lieu fees ✓E sures reasonable health and safety standards Endo Presentation RCA ROUTING SHEET INITIATING DEPARTMENT: Planning SUBJECT: ZONING TEXT AMENDMENT NO. 04-01 COUNCIL MEETING DATE: July 6, 2004 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attome Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by CitZ Attome Not Applicable Certificates of Insurance (Approved by the City Attome Not Applicable Financial Impact Statement (Unbud et, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Attached Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Attached EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FOR ED Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: (BelowOnly) RCA Author: HZ:SH:MBB:JJ:rl (19) July 19, 2004 -Cou.,cil/Agency Agenda - Page 19 G. Ordinances G-1. Ordinance for Adoption G-1a. (City Council) Adopt Ordinance No. 3657 Amending Huntington Beach Zoning and Subdivision Chapter 235 (Condominium Conversions) (450.20) - 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." (Approved as amended for introduction at the 7/6/04 Public Hearing.) Recommended Action: After City Clerk reads by title, adopt Ordinance No. 3657 by roll call vote. Approved for Introduction as amended regarding compliance with Zoning Provision Section 235.08— effective date should be June 1, 2004. Approved 5-1-1 (Coerper— No, Houchen absent) G-2. Ordinances for Introduction - None H. City Council/Redevelopment Agency Items Council Comments -(Not Agendized) At this time Councilmembers may report on items not specifically described on the agenda which are of interest to the community. No action or discussion may be taken except to provide staff direction to report back or to place the item on a future agenda. Councilmember Boardman announced that she will not be seeking re-election. Council/Agency Adiournment to Monday, August 2, 2004, at 5:00 p.m., in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California. Council/Agency Agendas and Minutes are Available at No Charge to the Public at the City Clerk's Office, on the City's Website, Via Email, and Through Paid Subscription. Complete Agenda Packets are Available at the Central Library and Library Branches on Friday Prior to Meetings. Videotapes of Council Meetings are Available for Checkout at the Central Library at No Charge. JOAN L. FLYNN, CITY CLERK City of Huntington Beach 2000 Main Street - Second Floor Huntington Beach, California 92648 Internet: http:/twww.surfcity-hb.org l (9) July 6, 2004 - Cot...cil/Agency Agenda - Page 9 D-2. (City Council) Public Hearing to Approve Zoning Text Amendment No 04-01 - Approve Introduction of Ordinance No. 3657 Amending Huntington Beach Zoning and Subdivision Chapter 235 (Condominium Conversions) (450.20) Communication from the Planning Director, the Building and Safety Director, and City Attorney. Public hearing to consider the following: Zoning Text Amendment No. 04-01 (Condominium Conversion Ordinance) ~� Applicant: City of Huntington on Beach Request: To amend Chapter 235, Condominium Conversions, of the Huntington Beach Zoning and Subdivision Ordinance. The proposed amendments are intended to update the original ordinance adopted in 1984 and to establish procedures for permitting units previously converted to condominiums without City approval. Location: Citywide Notice is hereby given that this agenda item is categorically exempt from the provisions of the California Environmental Quality Act. ON FILE: A copy of the proposed request is on file in the City Clerk's Office,2000 Main Street, Huntington Beach,California 92648,for inspection by the public. A copy of the staff report will be available to interested parties at the City Clerk's Office on Thursday, July 1,2004. ALL INTERESTED PERSONS are invited to attend said hearing and express opinions or submit evidence for or against the application as outlined above. If you challenge the City Council's action in court,you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice,or in written correspondence delivered to the City at,or prior to,the public hearing. If there are any further questions please call the Planning Department at 536-5271 and refer to the above items. Direct your written communications to the City Clerk. 1. Staff report 2. City Council discussion 3. Open public hearing 4. Following public input,close public hearing **PowerPoint presentation titled Condominium Conversions City Council Meeting July 6, 2004 Zoning Text Amendment No. 04-01 is included in the agenda packet. **Communication submitted by Aaron Frankel dated June 30, 2004 titled Letter to City Council Concerning Condo Conversion is included in the agenda packet. Recommended Action: Motion to: After the City Clerk reads by title, Approve for Introduction 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;"and Approve Zoning Text Amendment No., 04-01 with findings for Approval (Attachment No. 1). Planning Director Howard Zelefsky reported orally, expressing the concern over crafting a global solution. Mr. Zelefsky presented the PowerPoint report. (10) July 6, 2004 -Cou..cil/Agency Agenda - Page 10 City Clerk Joan L. Flynn announced that in addition to the Late Communication she announced earlier, a PowerPoint report was submitted titled Huntington Beach Hearing on Zoning Text Amendment No. 04-01 from affected homeowners. Speaker requested affected owners present in the audience to stand. This first speaker read verbatim from the PowerPoint presentation. The next four speakers continued verbatim. Consultant Mike Adams speaking for Stewart Title informed Council of 30 applications the title company is processing. Mr. Adams urged Council to amend the mapping process. City Clerk Joan L. Flynn announced another Late Communication from the last speaker regarding his comments, titled Proposed Revisions to the City's Residential Condominium Conversion ordinance. Council inquiry was made on a definition of"stock co-op"to which Mr. Zelefsky responded. Discussion was held on in-lieu fees as mentioned by speakers and the subdivision map mentioned by Mr. Adams. Mr. Zelefsky stated that Planning will return with an amendment re: the latter. Representative of Stewart Title addressed Council. Motion to direct Planning to come back to Council with a subdivision map alternative for consideration and otherwise to move the recommended action amended to direct future applicants, who convert an apartment of less than 10 units to condominiums, to the Planning Commission and to use affordable housing "in lieu"fees only for rental units. Approved and adopted 6-0-1 (Houchen absent) Motion for staff to return to Council with a mechanism to allow for payment of fees without out-of-pocket cost to property owners. Approved 6-0-1 (Houchen absent) Item D-2 Details of Motions A motion was made by Councilmember Coerper to approve the ordinance with the following changes: (1) include a physical element report described in Section 235.06 subsection A as required for the Condos not previously converted through the City as reflected in section 235.04 lines 3-4 which would read effective date (etc.), (2) eliminate �1v requirements to pay the affordable housing"in lieu" fees, (3)provide a nexus report showing relationship between landscape, parking & affordable housing, (4) address if the affordable housing fees can withstand a legal challenge, and(5)work with local legislators to create laws which prohibit the County from recording documents without applicant providing proof that the City has approved of changes. The motion was never seconded.) A motion was made by Mayor Pro Tem Hardy, second Cook to approve the recommended action with an addition that the subdivision map alternative be investigated. In addition, to add the option of accepting a bond if the owner is not able to pay the"in lieu" fee. Planning Director Zelefsky recommended a separate minute action be stated for the bond item. Mayor Pro Tern Hardy agreed to remove that item from the motion at hand. Director Zelefsky asked to clarify the motion: For City Staff to come back with Alternative language to amend the subdivision ordinance for parcel map waiver procedure for this class of units? _ ~ Mayor Pro Tern Hardy responded: Yes Councilmember Boardman stated that she is still concerned about homeowners having to pay out-of-pocket. Director Zelefsky reminded that this issue should be a separate minute action. Councilmember Boardman accepted this recommendation. City Attorney McGrath asked if all the fees would be included in this motion or just the "in lieu" fees—suggested this be clarified in the motion. Councilmember Sullivan proposed an amendment to the motion—wants to streamline the process,however feels that the Zoning Administrator should handle these 120+ condos in question,but future conversions should be handled by the Planning Commission. He also stated that going forward,he does not feel that converters should have the opportunity to pay Affordable Housing"in lieu" fees rather than applying for a variance. Mayor Pro Tern Hardy accepted this amendment. Councilmember Cook reiterated what Councilmember Boardman had stated earlier that the fees only be used for rental stock. Director Zelfsky addressed Sullivan's concern about"in lieu" fees by stating that the fees would only apply to this class of units-not future conversions. Councilmember Sullivan asked to eliminate that relevant portion of his amendment to the motion, and Hardy agreed. Mayor Pro Tern Hardy restated her motion: To direct plater ring tooe_back to Council with an alternative to the subdivision map and otherwise to move the recommended action except for changing future applicants who convert �t��� op of less th_a�0 units to a condo must go to theP�annin ommission. Strike-stockree-op . Change to apartment. This applies to people wishing to convert from apartment to Condo. Councilmember Boardman suggested that the motion include the distinction that"in lieu" fees only be used for rental units. Mayor Pro Tern Hardy agreed that yes, this is included in the motion. Councilmember Sullivan suggested that better wording would be that staff"'come back with a subdivision map alternative for consideration." C�7U D F- /:)tc_ t(S 7- Mayor Pro Tern Hardy agreed to this. The motion carried by the following roll call vote: AYES: Sullivan, Coerper, Hardy, Green, Boardman, Cook NOES: None ABSENT Houchen A motion was made by Boardman, second Coerper to have staff come back to Council with a mechanism to allow for the payment of the fees upon the sale of the homes so there is no out-of-pocket expense to the existing homeowner. Director Zelefsky inquired if Council would like staff to come back with a mechanism, or just to do it? Councilmember Boardman asked that staff come back with a report of options. Director Zelefsky agreed to prepare a memo to Council, in conjunction with the Attorney's Office, of the different options that would be available. s t' City Attorney McGrath noted that if Council would like to look at alternatives, then some time is needed to put them together. Councilmember Cook noted that in some cases, it might be better for the Title Company to post a bond rather than having liens on the property. Director Zelefsky stated that the changes in subdivision ordinance could be available at the end of August Council meeting. The Nexus study should be back from the consultant for the first Council meeting in September. Staff can have the memo regarding the fees payments at the subsequent meeting. The motion carried by the following roll call vote: AYES: Sullivan, Coerper, Hardy, Green,Boardman, Cook NOES: None ABSENT: Houchen Ehring, Liz From: Flynn,Joan Sent: Friday,July 09, 2004 2:06 PM To: Albers, Patricia; Jones, Dale Cc: Ehring, Liz Subject: RE: Condo summary of action Great job Dale and Patricia--see the City Administrator's kudos below! -----Original Message----- From: Culbreth-Graft,Penelope Sent: Thursday,July 08,2004 5:50 PM To: Flynn,Joan Subject: RE:Condo summary of action Thank you, Joan, to you and your staff for getting this out so quickly. Penny -----Original Message----- From: Flynn,Joan Sent: Wednesday,July 07,2004 4:10 PM To: Zelefsky,Howard;McGrath,Jennifer;Culbreth-Graft,Penelope Cc: James,Jane Subject: RE:Condo summary of action A somewhat verbatim copy of the motion and discussion has been made by the Clerk's office after reviewing the tape. Final edits are being made and will be sent to all of you within the hour. It should help Jane with her contribution to the web site. --Joan -----Original Message---- From: Zelefsky,Howard Sent: Wednesday,July 07,2004 3:09 PM To: McGrath,Jennifer;Culbreth-Graft,Penelope; Flynn,Joan Cc: James,Jane Subject: RE:Condo summary of action Have no fear Jane will take care of all loose ends. ----Original Message----- From: McGrath,Jennifer Sent: Wednesday,July 07,2004 2:46 PM To: Culbreth-Graft,Penelope;Zelefsky,Howard; Flynn,Joan Subject: RE: Condo summary of action Regarding the condo owner's are concerned,the issue is relatively easy to explain as introduction of the ordinance as proposed and direction to bring the parcel map waiver issue and payment methods back to City Council. I'm sure Jane can put something together for the website. We also need to prepare the "amended"ordinance for second reading on July 19, 2004. The amendments actually apply more specifically to all other conversions. I think Jane will be sending me a revised legislative draft. Jennifer McGrath, City Attorney City of Huntington Beach ph. (714)53C-5555 fax(714)374-1590 IMPORTANT NOTICE.• The preceding message maybe confidential or protected by the attorney- client privilege. It is not intended for transmission to, or receipt by, any unauthorized persons. if you believe that it has been sent to you in error, do not read it Please reply to the sender that you have received the message in error, then destroy it. Thank you. -----Original Message----- From: Culbreth-Graft,Penelope 1 Sent: Wednesday,July 07,2004 2:30 PM To: Zelefsky,Howard; Flynn,Joan Cc: McGrath,Jennifer Subject: Condo summary of action Howard and Joan Would the two of you work together to document the formal action of Council last night to get it on the website for the public. I think that would help to keep the condo owners focused on what has been done to date. Thank you. Penny Dr. Penelope Culbreth-Graft City Administrator City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 (714) 536-5575, fax 536-5233 2 Ordinance No. LEGISLATIVE DRAFT Chapter 3'5 I es'id+ential Condominium Conversions s, Sections: 235.02 Definitions 235.04 Permits Required 235.06 Required Reports and Information 235.08 Condominium Conversion Standards 235.10 Tenant Benefits and Notification 235.12 Effect of Proposed Conversions on the City's Low- and Moderate-Income Housing Supply 235.14 Bonus for Including Low- and Moderate-Income Housing 235.16 Findings 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 approval: 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. (3334) 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. 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. , the te "existing" shall me ., building 1, ing nstrdete r r_to 1945, E)r it.,,as built aftef 1945, E. Affordable unit: A residential unit, sold to or occupied by a tenant earning up to 4-20 100 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. legisdrft/04zoning/Chp235-LD 1 F. Tenant: One or more persons. 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 cooperatives and any other subdivision which is a conversion of existing rental housing shall be subject to the additional requirements of this chapter. Conversions of 10 or more units shall be subject to conditional use permit approval by the Planning Commission and conversions of nine or fewer units shall be subject to conditional use permit approval by the Zoning Administrator pursuant to Chapter 241. Within the coastal zone, a coastal development permit shall also be required.(3334) 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 the effective date of this ordinance date : the provisions of Title 25, Subdivisions, and only Sections 235.029 235.049 235.06 B., 235.08 A. — C., and 235.16 herein shall apply. 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 235.08 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. (3334) 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.(3334) 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, of civil engineer or architect, describing in detailing 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, 1egisdrft/04zoning/Chp235-LD 2 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. 2. A report by a California-licensed mechanical contractor detailing the age, condition,expected 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. Sueh r-epet4 sha4l be Wdated within 6 ment s after the elese ef eser-ow, Any infestation shall be remedied prior to sale. 4. Exisfing soils fepefts shall be submi:Red for-r-eview with a statefaen4 fegaMing an knu*.,%o0 0 of ;tom pr-eblems elat ng to the st ett 0 46. 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. 56. 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 t gr-ade, and eeler--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. legisdrft/04zoning/Chp235-LD 3 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 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; 9. 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. Iegisdrft/04zoning/Chp235-LD 4 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. D. Vacancy Rate Anal: A citywide vacancy rate analysis for multiple-family rental units for the past twelve months shall be submitted. E. Acceptance of Reports: The final form of the physical structured elements report, Conversion Plan, and other documents shall be approved by the Zoning Administrator or Planning Commission. The reports in their acceptable form shall remain on file with the Department for review by any interested person. 235.08 Condominium Conversion Standards A. Minimum Construction Standards: r,......vlia ee- j T ni fe...., Codes and National Eleetr-iea Code: The project shall be brought into compliance with the minimum construction all T iiife Cedes and N fien,, Eleetfiea lode standards as listed below unless the Building Official approves an alternate method of construction. as adepted ara ended by the Star of Galifemia and the Git . Pprior 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. unless ffinds ha. ve been,.heed the prejeet. 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 Iegisdrft/04zoning/Chp235-LD 5 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 the effective date of this ordinance (date), 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. 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 Zoning Administrator or Planning Commission shall be refurbished and restored as appropriate for a high standard of appearance, quality, and safety. D. Gentingeney Fees. The ii4en4 ef the I r-a✓el,a ffinK 1Vi VVn V1111L1 VVlYVlJ1V1J 1J+V J1Viide L JLlet yfor- o + , Of effif'r-'gepair-s t6 eemffien areas r 1LT4Gi'G'Ti Vrthe GGVI2emie, ftesthetie, and eiwir-effinental.11...111 enanee of the ...,llllllL.11lLj', as "cn-Fra cv-pivccc�the gcncriTi wvii-arv3 publi:health :d J:�+y of the eeiiarr'tmit`y.Upon the clew of ese e w fe eaeh u rir+i-rhe .,. health, and 1 appheatA shall eenvey to the r r been ovld,-clly appheant, within days, ;ts Su eh funds shall be used selely and exel, of as a eenAingeney fund f - . i whieh ffiay ar-ise r-elating to open spaee areas, exter-ief portions of dwelling Lilll LJ, LL11lA JCLell VLlle v rise^ nLT Lien. B. D. Affordable Housing: Where a project consists of-5 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. 1egisdrft/04zoning/Chp235-LD 6 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. 235.10 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 Hearing and Decisions. 1. 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 Zoning Administrator or 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. 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. 1egisdrft/04zoning/Chp23 5-LD 7 F. Moving Expenses: The subs 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 subdivide 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 subduer 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: a-1. Tenants with low or moderate incomes; and b 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. 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 Zoning Administrator or Planning Commission 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. 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. 1egisdrft/04zoning/Chp235-LD 8 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 Zoning Administrator or 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 s•,L�d.'yider applicant, but may include the reduction or waiver of any required fees or the condominium conversion standards prescribed in Section 235.08. 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. 235.16 Findings The Zoning Administrator or Planning Commission 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 legisdrW04zoning/Chp23 5-LD 9 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).(3334) Iegisdrft104zoning/Chp235-LD 10 ORDINANCE NO. 3 U S"I 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 follows: SECTION 1. That Section 235.02 of the Huntington Beach Zo ' g and Subdivision Ordinance is hereby amended to read as follows: 235.02 Definitions The following definitions shall apply to the provisions oyhorized pter except where the context indicates otherwise. General definitions are contained in203. A. Applicant: The owner, developer, subdivider or a agent of a project. B. Date of approval: The date the Zoning Admi strator, Planning Commission, or City Council on appeal, approves the conditional use pe x/t and tentative subdivision or parcel map applications. However, if the project is 1ca�Eated in appealable area of the coastal zone and includes action on a coastal development permit, Section 248.30 shall apply. r C. Date of conversion: The date a find,,map for a project was approved by the City Council or parcel map for a project was apoved by the City Engineer. D. Project: An existing apart ent house, apartment complex, apartment hotel, hotel, multiple dwelling or group dwel�Ing 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 Cqunty'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. 4CTION 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 cooperatives and any other subdivision which is a conversion of existing rental housing shall be subject to the additional requirements of this chapter. Conversions of 10 or more units shall be subject to conditional use permit approval by the Planning Commission and conversions of nine or fewer units ord/04zoning/chap 235 6-04 1 shall be subject to conditional use permit approval by the Zoning Administrator 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 t were sold as condominium units without approval of a conditional use permit and tentative parce map prior to the effective date of this ordinance (date): the provisions of Title 25, Subdivisions, a d only Sections 235.02, 235.04, 235.06 B.,235.08 A.—C., and 235.16 herein shall apply. Ina dition, an inspection by a City of Huntington Beach Building and Safety Inspector shall be requir to verify compliance with the minimum construction standards of Section 235.08 A. and to de te ine if there are any obvious health and safety code violations. r Conversion of lower or moderate-income rental housing develope7ooperative, th federal, state or local assistance shall not be permitted. Within the coastal zone no visitrving use, including hotel use, shall be converted to condominium, community apartment, stoc or time share. 1 SECTION 3. That Section 235.06 of the HuntingtoBeach Zoning and Subdivision Ordinance is hereby amended to read as follows: ,j r 235.06 Required Reports and Information r" 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 ip the reports, whether required or voluntary, shall be considered conditions of approval. A. Physical Elements Report: A repf3rt 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, usefu0ife, 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, mpg hanical equipment,parking facilities, and drainage facilities. Such report also'shall describe the condition of refuse disposal facilities; swimming pools, saunas, id fountains; stone and brickwork; fireplaces; and exterior lighting. The level op°compliance with the standards listed in Section 235.08 A. shall also be described in detail. 2. A eport by a California-licensed mechanical contractor detailing the age, condition, ize, 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 ord/04zoning/chap 235 6-04 2 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 off�the painting throughout the project, including building interior and exterior surf cues and an estimate of the remaining physical life of the paint. A statement that ne paint (minimum 20 year warranty)will be applied on all building interior and xterior surfaces may take the place of such report. Such statement shall inclu the brand name of the paint and the exterior colors to be used. 5. A report by a California-licensed roofing contractor verifying th condition of the roofs of all structures and an estimate of the remainilonbehalf ife of the roofs and the cost of replacement. A statement that new roof be applied may take the place of such report. Such statement shall includcations of the proposed roofing material. B. Covenants, conditions and restrictions: A declaration of theonditions, restrictions, and rules and regulations which would be appliof any and all owners of condominium units within the project shall be s mitted. The declaration shall include, but not be limited to: the conveyance of units; t 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 maintena e, and an indication of appropriate responsibilities for the maintenance of all utility lin 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 conce ing the demographic and financial characteristics of the project shall be submi ed, including, but not limited to, the following: 1. The date of construction of all el ents of the project, and the date and description of each major repair or renovation f any structure or structural element, since the date of construction.For purposes f this subsection, "major repair" shall mean any repair for which an expenditure of ore than $5,000 was made; 2. A statement of a major us of said project since construction; 3. A statement regarding urrent ownership of all improvements and the underlying land; 4. The square footag and number of rooms in each unit; 5. The rental rate istory 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 comple list of the number of tenants and tenant households in the project, includin the following information: a. Households with persons 62 years or older; ord/04zoning/chap 235 6-04 3 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; fr' e. The designation of low- and moderate-income household and whether any are receiving federal or state rent subsidies. When the subdivider can demonstrate that demographic informatio/isot available,this requirement may be modified by the Director. ' 8. The proposed price of each of the units; 9. The proposed homeowners' association budget, de 'fled to include fixed costs, operating costs,reserves, administration, and co ingencies; and 10. A statement of intent as to the types of financi g programs to be made available, including any incentive programs for existin residents. 11. The method to be implemented to assure availability of affordable units to tenants. r 12. Signed copies from each tenant of the#otice of intent to convert, as specified in this chapter. The applicant shall submit eejdence that a certified letter of notification was sent to each tenant for whom a sign�d copy of such notice is not submitted. f I D. Vacancy Rate Anal: A citywide vac�ficy rate analysis for multiple-family rental units for the past twelve months shall be submi­6 d. f r E. Acceptance of Reports: The final foyffi of the physical structured elements report, Conversion Plan, and other documents shall be./approved by the Zoning Administrator or Planning Commission. The reports in their(acceptable form shall remain on file with the Department for review by any interested Peron. 1 SECTION 4. That Section,�35.08 of the Huntington Beach Zoning and Subdivision Ordinance is hereby amended to re 'd as follows: 235.08 Condominium Conyers' n Standards A. Minimum Construct' n Standards: The project shall be brought into compliance with the minimum constructfon standards as listed below unless the Building Official approves an alternate method*construction. Prior to recordation of the final map or parcel map, applicable buil ng 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 ord/04zoning/chap 235 6-04 4 after February 1, 1985, draft stops shall be in attics above and in line with e walls separating individual units. 2 Each unit shall have access to the electrical branch circuits that ser the unit. 3. Smoke detectors shall be installed and operating. All existing and-wired units shall be in working order and the remaining detectors shall be loc ed per currently adopted code and may be battery or hard-wired operated. 4. Ground Fault Circuit Interrupter(GFCI)protection sha be provided where required by the currently adopted electric code. B. Compliance with Zoning Provisions: The project shall co ply with the parking requirements of Chapter 231, and landscape improvements shall com y with Chapter 232. For apartments and stock cooperatives with two to four units on a par I that were sold as condominium units without approval of a conditional use permit a tentative parcel map prior to the effective date of this ordinance (date), a reduction ' these development standards may be granted when an applicant agrees to pay an affor ble housing in-lieu fee to off-set the loss of affordable rental housing stock. The fee sha be paid according to a resolution adopted by City Council. C. Refurbishing and Restoration: All main bu' dings, structures, fences,patio enclosures, carports, accessory buildings, sidewalks, riveways, landscaped areas, and additional elements as required by the Zoning Ad nistrator or Planning Commission shall be refurbished and restored as appropriat for a high standard of appearance, quality, and safety. D. Affordable Housing: Where a projeYconsists of 3 units or more, the applicant shall agree to sell or rent at affordable prices 25 Arcent of the total units to low- and moderate-income households, with a minimum of 26 percent of the affordable units affordable to low-income households for a period of sixty60) years. If the units are to be made available for purchase, the maximum sales price of u is intended for low-or moderate-income households shall not exceed 2.5 ti /ea nual edian income for such households as defined by the California Health and Sae, Se tion 50093. Resale controls shall be included as a deed restriction. If are o be for rent,the maximum rent allowed shall keep the units within the lowe te-income housing stock. SECTION 5. ction 235.10 of the Huntington Beach Zoning and Subdivision Ordinance is hereby ao read as follows: 235.10 Tenant Beneftification A. Notices of Inticants for condominium conversions shall give notice of intent to convert to ex4sting tenants and prospective tenants as required by Sections 66452.8 and 66452.9 of e California Government Code. The notice of intent shall be posted on-site in at least one cation readily visible to tenants. ord/04zoning/chap 235 6-04 5 B. Notices of Public Hearing and Decisions. 1. The Department shall notify the residents of the public hearing not less than 1 days prior to the proposed hearing date on the application. The notice shall inclu e notification of the tenant's right to appear and be heard. The Department all notify the residents of the decision of the Zoning Administrator or Planning mmission within ten days and shall include a copy of all conditions imposed o the project. The list of names and addresses of the residents of each unit in the co ersion project shall be current as of the day of submittal and shall be certified such by the applicant. Service shall be by mail at the expense of the appli nt. 2. Final Map or Parcel Map Approval: The applicant shall ' e written notification to each tenant with 10 days of approval of the final map o parcel map. The applicant shall also provide notice of application for public rep , as issued by the California State Department of Real Estate, which shall be av ' able on request. C. Tenants'Discounts: Any present tenant of any unit at th time of an application for conversion shall be given a nontransferable right of fi t refusal to purchase the unit occupied at a discount of the price offered to the general publ' . The amount of the discount shall be based on the longevity of each tenant, and shall be atified by the applicant at the time of conversion. / D. Vacation of Units: Each non-purchasing tena9f, not in default under the obligations of the rental agreement or lease under which the sAect unit is occupied, shall have not less than 120 days after the date of the tentative ma approval by the City or until the expiration of the tenant's lease to find substitute housing at`d to relocate. Tenants shall be permitted to terminate leases or tenancy with one m nth's notice at any time after a conversion application. E. No Increase in Rent: A tenant's re shall not be increased within two months prior to a project application, nor shall the nt be increased for two years from the time of the filing of the project application or until r ocation takes place. In addition, all non-purchasing tenants 62 years old or older and all n -purchasing medically-proven permanently disabled tenants shall receive a lifetime lease. ents for such tenants shall not be increased for 2 years after the filing of the project app cation. F. Moving Expenses: The a plicant shall provide moving expenses equal to three times the monthly rent to any ten nt, in compliance with all the terms of the subject lease and/or financing, who reloca s from the building to be converted after City approval of the use permit authorizing c nversion of the units. When the tenant has given notice of his intent to move prior to City pproval of the use permit, eligibility to receive moving expenses shall be forfeited. G. Relocation As stance: Relocation assistance shall be provided by the applicant to non- purchasing to ants for a minimum period of four months following the tentative map approval. Ir ormation 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 ord/04zoning/chap 235 6-04 6 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 ba d on race, color, creed, national origin, sex,or age, and a statement to this effect shall be ' cluded in the covenants, conditions, and restrictions. Projects created exclusively for the urpose of providing senior citizen housing shall be exempted from this requirement. SECTION 6. That Section 235.12 of the Huntington Be h Zoning and Subdivision Ordinance is hereby amended to read as follows: 235.12 Effect of Proposed Conversions on the City' ow-and Moderate-Income Housing Supply In reviewing requests for the conversion of existing ap ments to condominiums,the Zoning Administrator or Planning Commission shall conside the following: A. Whether displacement of tenants, if the co version is approved, would be detrimental to the health, safety, or general welfare of the c mmunity; B. The role the rental units play in the e 'sting housing rental market and whether they serve low- and moderate-income househo s; and C. The need and demand for lower- st home ownership opportunities which are increased by the conversion of apartments to ondominiums. SECTION 7. That Section 35.14 of the Huntington Beach Zoning and Subdivision Ordinance is hereby amended to re as follows: 235.14 Bonus for Including Low'and Moderate-Income Housing Consistent with the requirement of Section 65915.5 of the California Government Code,the City shall offer a density bonus o 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 ap roval to convert apartments to a condominium project agrees to provide at least 33 percent of the t al 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-irk ome households, as defined in Section 50079.5 of the California Health and Safety Code, the Zoning Administrator or Planning Commission shall either(1) grant a 25 percent density bonus or(i2)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 ord/04zoning/chap 235 6-04 7 proposed for conversion. "Other incentives of equivalent financial value" shall t be construed to require the City to make any cash transfer payments or other mo tary compensation to the applicant, but may include the reduction or waiver of y required fees or the condominium conversion standards prescribed in Section 235.08. B. No applications for a density bonus shall be accepted if the apartme s proposed for conversion constitute a housing development for which a density nus was provided under the provisions of Section 230.14. SECTION 8. That Section 235.16 of the Huntington Bea Zoning and Subdivision Ordinance is hereby amended to read as follows: 235.16 Findings The Zoning Administrator or Planning Commission may pprove an application for a condominium conversion if it finds that the proposed conversion mee the following requirements: A. That all the provisions of the Subdivision p Act, this chapter, and other applicable provisions of this ordinance are met; and B. That the proposed conversion is consis nt with the General Plan and any applicable specific plan; and l C. That the proposed conversion wil conform to the provisions of this ordinance in effect at the time of the project approval, exc pt as otherwise provided in this chapter; and D. That the overall design and physical condition of the condominium conversion achieves a high standard of appearanc quality, and safety; and E. That either(1)the propo ed conversion will not displace a significant percentage of low- or moderate-income,pe anently or totally disabled, or senior citizen tenants or delete a significant number o, ow-and moderate-income rental units from the City's housing stock at _ a time when no equ' alent housing is readily available in the Huntington Beach area, or(2) the applicant agre to pay an affordable housing in-lieu fee pursuant to Section 235.08 B.; and I 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). ord/04zoning/chap 235 6-04 8 SECTION 9. This ordinance shall become effective 30 days after its ado�'on. PASSED AND ADOPTED by the City Council of the City of Huntin on Beach at a regular meeting thereof held on the day of , 2(04. 1 ayor ATTEST: APPRO D AS TO FORM: City Clerk City ttorney (� INIT ATED AND APPROVED: aREVIEWED AND APPROVED: : .x NOLt- (), Director VlanXingV Q (4i4c4 it City Administrator A.r fi Fy tp ✓ F f JJ f l�f p�( 11 /1 f /q 3� r r" l ord/04zoning/chap 235 6-04 9 NOTICE OF PUBLIC HEARING BEFORE THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH NOTICE IS HEREBY GIVEN that on Tuesday, July 6, 2004, at 7:00 p.m. in the City Council Chambers, 2000 Main Street, Huntington Beach, the City Council will hold a public hearing on the following planning and zoning items: ❑ 1. ZONING TEXT AMENDMENT NO. 04-01 (CONDOMINIUM CONVERSION ORDINANCE) Applicant: City of Huntington Beach Request: To amend Chapter 235, Condominium Conversions, of the Huntington Beach Zoning and Subdivision Ordinance. The proposed amendments are intended to update the original ordinance adopted in 1984 and to establish procedures for permitting units previously converted to condominiums without City approval. Location: Citywide Planner Assigned: Jane James NOTICE IS HEREBY GIVEN that Items #1 is categorically exempt from the provisions of the California Environmental Quality Act. ON FILE: A copy of the proposed request is on file in the City Clerk's Office, 2000 Main Street, Huntington Beach, California 92648, for inspection by the public. A copy of the staff report will be available to interested parties at the City Clerk's Office on Thursday, July 1, 2004. ALL INTERESTED PERSONS are invited to attend said hearing and express opinions or submit evidence for or against the application as outlined above. If you challenge the City Council's action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City at, or prior to, the public hearing. If there are any further questions please call the Planning Department at 536-5271 and refer to the above items. Direct your written communications to the City Clerk. Joan Flynn, City Clerk City of Huntington Beach 2000 Main Street, 2nd Floor Huntington Beach, California 92648 (714) 536-5227 (g AegaIs:Cound1\040706) M096S aasel j9ge3 ssaippy ®A2J3A %f Michael J. Cherney Steven F. Merrill Cara Marshall • 1118 Park St 17650 Los Alamos St 2505 Delaware St 12 Huntington Beach CA 92648-2729 Fountain Valley CA 92708-5214 Huntington Beach CA 92648-2555 Rene A. Brookbank Elishia Olsen Debra Jean Campbell 816 1 lth St 205. 13th St Apt C 205 13th St Unit 4 Huntington Beach CA 92648-3410 Huntington Beach,CA 92648-4836 Huntington Beach CA 92648-4836 Pamela A. Campbell Beatriz P. Gotuzzo Romeo Tajanlangit 14 Village Circle Dr 205 13th St Apt A 209 13th St Apt A Lompoc CA 93436-5600 Huntington Beach CA 92648-4836 Huntington Beach CA 92648-4837 Nancy Ellen Boyd David N. & Simone Carillo Cathy Gillett 209 13th St Apt B 209 13th St Apt C 209 13th St Apt D Huntington Beach CA 92648-4837 Huntington Beach CA 92648-4837 Huntington Beach CA 92648-4837 Matson R C&J E 1994 Trust Aaron T. Frankel Sean Hong 413 14th St Apt A 413 14th St Apt C 413 14th St Apt D Huntington Beach CA 92648-4226 Huntington Beach CA 92648-4226 Huntington Beach CA 92648-4226 Michael R. Goodwin Gwendolynn Edwards David L. Loomer 413 14th St Apt B 202 15th St 204 15th St Huntington Beach CA 92648-4226 Huntington Beach CA 92648-4411 Huntington Beach CA 92648-4411 John D. &Teri K. Gillespie Robert B. & Kayla Holmes Patrick Bortmann 812 13th St 218 16th St Apt C 218 16th St Apt A Huntington Beach CA 92648-3435 Huntington Beach CA 92648-4439 Huntington Beach CA 92648-4439 Andreas Osman Jane Hiltz Hsu Yung-Hua 218 16th St Apt B 218 16th St Apt D 317 17th St Apt B Huntington Beach CA 92648-4439 Huntington Beach CA 92648-4439 Huntington Beach CA 92648-4283 Scott Schutzman Eric L. & Ruby L. Frazier Paul A. Tahmisian 317 17th St Apt C 317 17th St Apt A 1264 Sonoma Dr Huntington Beach CA 92648-4283 Huntington Beach CA 92648-4283 Altadena CA 91001-3152 Waltrau Mattern Caroline Cass Lisa L.A. Perez 9188 Molt River Cir 103 Vista Del Mar Apt 3 322 19th St Apt A Fountain Valley CA 92708-4436 Redondo Beach CA 90277-5311 Huntington Beach CA 92648-3850 —nQTC Jol a121dWa1 acn c,�nnr n�� n,nnnt W10965 aase3 slagej ssaippd eAU3AV Michael R. &Julie E. Textor Joshua T. &Angela M. Lewis Greg O. & Robin M. Endsley 322 19th St Apt B 214 20th St Apt A P. O. Box 3865 Huntington Beach CA 92648-3850 Huntington Beach CA 92648-3941 Huntington Beach CA 92605-3865 Patricia Y. Conners Michael Lyons Daniel J. Torla 214 20th St Apt C 214 20th St Apt D 7247 Havenrock Dr Huntington Beach CA.92648-3941 Huntington Beach CA 92648-3941 Huntington Beach CA 92648-3005 David J. Makuch Gilbert A. & Suzanne J. Perea Matthew R. Busser 221 Meriden Rd. 21676 Canon Dr 409 20th St Apt A Middlefield CT 06455-1069 Topanga CA 90290-4327 Huntington Beach CA 92648-3857 Judith Hendler Mark Camp Michael Stone P. O. Box 779 7071 Warner Ave#F431 9612 Brynmar Dr Huntington Beach CA 92648-0779 Huntington Beach CA 92647-5495 Villa Park CA 92861-2655 Raoul E. Lybarger Carmen A. Wilcox Robert Lee Gambrel 1610 Riverview Cir 402 21 A St. Apt B 10062 Spar Cir Huntington Beach CA 92648-3707 Huntington Beach CA 92648-3324 Huntington Beach CA 92646-7401 "Gregory F &.Cindy L. Gunn Michael J. &Erika H.Reardon David Lawrence O'Toole " 426 22nd St Apt A 426 22nd St Apt B 426 22nd St Apt D Huntington Beach CA 92648-3335 Huntington Beach CA 92648-3335 Huntington Beach CA 92648-3335 Jane L. Stolba Jean Stolba Larry B.Zumbro 1703 Alabama St Apt A 1703 Alabama St Apt D 1703 Alabama St Apt B Huntington Beach CA 92648-3126 Huntington Beach CA 92648-3126 Huntington Beach CA 92648-3126 Alexandra Pedano Jeffrey D. Crandall First Security Exchange 618 E Utica Ave " 7551 Amazon Dr#A 7551 Amazon Dr,#.B ; Huntington Beach CA,92648-3218 Huntington Beach CA 92647-8652 Huntington Beach CA 92647=8652" Ydalid Leon Wai Ming Cheung David K. Wilkings 7551 Amazon Dr#D 1325 S Fremont Ave 17031 Ash St Apt C Huntington Beach CA 92647-8652 Alhambra CA 91803-1903 Huntington Beach CA 92647-5833 Kyle M. Mc Donald Dwight A. Flenniken Albert W. Kim 17031 Ash St Apt D 17031 Ash St Apt B P. O. Box 454 Huntington Beach CA 92647-5833 Huntington Beach CA 92647-5833 Huntington Beach CA 92648-0454 00915 iol aleldwal ash Wlslaa4S paaj 410ows W1096S aasel agel ssaippV ®A2l3AV Q� Ismael B. Denenburg Cara & Keith Marshall Richard C. & Lori A. Lujan 357 E 57th St Apt 17C 2505 Delaware St Apt 2 2505 Delaware St# C New York NY 10022-2918 Huntington Beach CA'92648-6520 Huntington Beach CA 92648-2555 Michael Mc Donnell Garrison S. &Renee Tarnow Carolyn Kiefer 2402 Delaware St Apt 108 2505 Delaware.St Unit D 7681 Fir Dr.Apt C Huntington Beach.CA 92648=5900 Huntington Beach CA 926481 Huntington Beach CA 92647-4769 Robert C. &Maria Del Carmen Nancy L. Golding Steven R. Worley Murphy 7681 Fir Dr Apt B 7681 Fir Dr Apt A 7681 Fir Dr Apt D Huntington Beach CA 92647-4769 Huntington Beach CA 92647-4769 Huntington Beach CA 92647-4769 Michael Carter Ron Esmilla Louis R: Craig 7342 Garfield Ave Apt D 7352 Garfield Ave Apt B 7342 Garfield Ave Apt A Huntington Beach CA 92648-2034 Huntington Beach CA 92648-2033 Huntington Beach CA 92648-2034 Terry L.Davis Rosemary&Lynn Short-Baker Chad W. & Christina M. Owens 7342 Garfield Ave Apt C 7342 Garfield Ave Apt B 7352 Garfield Ave Apt C Huntington Beach CA 92648-2034 Huntington Beach CA 92648-2034 Huntington Beach CA 92648-2033 Jennifer A. Caveness Jay Turner Timothy H. &Laurel L. Talbert 7352 Garfield Ave Apt D 7352 Garfield Ave Apt A 16741 Green St Apt B Huntington Beach CA 92648-2033 Huntington Beach CA 92648-2033 Huntington Beach CA 92649-3445 Benjamin C. &Jane Ann Evink Howard C. Richey Joseph M. Limauro 16741 Green St Apt D 6056 Shadowbrook Cir 16751 Green St Apt C Huntington Beach CA 92649-3445 Huntington Beach CA 92648-5567 Huntington Beach CA 92649-3446 Howard C. Richey Vincent G. Periolat Matthew T. &Teresa A. Gabbett 440 Panorama Dr 16821 Green St#A A6821 Green St#B Hemet CA 92543-5725 Huntington Beach CA 92649-3528 Huntington Beach CA 92649-3528 Theresa &Ron Ferber Michael J. &Heidi Orsini Catherine E. Callia 16821 Green St#D 16821 Green St. #C 16741 Green St Apt A Huntington Beach CA 92649-3528 Huntington Beach CA 92649-3528 Huntington Beach CA 92649-3445 Rodriguez W&N Trust Ab Nancy A. Sparks Lisa A. Schick 16751 Green St Apt B 6056 Shadowbrook Cir 16741 Green St Apt C Huntington Beach CA 92649-3446 Huntington Beach CA 92648-5567 Huntington Beach CA 92649-3445 ®091S iol aleldwal ash Wlslaays paai uloows W10965 aasel slagel ssaippV oA213A%f 09 W. Jason Bonifay Robert C.Nelson Damon W. Hill 1412 Orange Ave 1416 Orange Ave 1418 Orange Ave#A Huntington Beach CA 92648-4214 Huntington Beach CA 92648-4214 Huntington Beach CA 92648-4214 Robert David Timothy& Grace E. Yuan Thomas Bagshaw 1414 Orange Ave P. O. Box 2060 5001 Ixtivorth PI Huntington Beach CA 92648-4214 C/O.O C P M Westminster CA92683 Huntington Beach CA 92647-0060. . Kelly Alderman Ryan Hagen Michael J. Chemey 8161 Forelle,#4 6600 Warner Ave#216 20951 Brookhurst St Huntington Beach CA 92647 Huntington Beach CA 92647 Huntington Beach CA 92648 Chuck Sheid Albert &Ann Kim Marie Elena Molnar 8062 Ebbtide Cir 1412 Huntington St P.O. Box 73542 Huntington Beach CA 92646 Huntington Beach CA 92648 San Clemente CA 92873 Mike Adams Jason Austin Mike & Julie Textor P.O. Box 382 8161 Forelle Dr#1 1009 Pecan Ave Huntington Beach CA 92648 Huntington Beach CA 92646 Huntington Beach CA 92648 Alan Cirson Nesip Tarcan. J. Osborn 8241 Deauville Dr 411 10th St 16152 Beach Blvd. #250 Huntington Beach CA 92646 Huntington Beach CA 92648 Huntington Beach CA 92647 Rash Syed Alan Cirson Pat Morris 17925 Elm St c/o Millennium Real Est. 3631 Windspun Dr Fountain Valley CA 92708 4041 MacArthur Blvd. #160 Huntington Beach CA 92649 Newport Beach CA 92660 David N. Carillo Barbara Arrigale Linda Smith 603 Termino Ave 20100 Brookhurst St 504.19th St Long Beach CA 90814 . ` Huntington Beach CA 92646- Huntington Beach CA 92648 Rob Nelson Howard Richey Jason Bonifay 419 Main St#364 440 Panorama Dr 6 Snowberry Huntington Beach CA 92648 Hemet CA 92543 Irvine CA 92604 Ann Kim 1412 Huntington St#1 Huntington Beach CA 92648 0091S ao1 aleldwal ash WlslaayS paaj yloows W1096S , Jasel MAILING LABELS—May 19,2004 slagej ssaappd @AU3A Af Q(� G:Labels\Labels\Public Hearing President 1 Huntington OA 10 �19 e Jo�,Beaah, e 16 H.B.Chamber of Commerce P.O.B 9 G ane 19891 Beach Blvd.,Ste.140 S t B c ,CA 90742 tin CA 92648 Huntington Beach,CA 92648 Betty Jo Woollett 2 William D.Holman 11 Edna Littlebury 17 Orange County Assoc.of Realtors PLC Gldn St Tfob.Hm.Owners Leag. .'25552 La Paz Road 19 Corporate Plaza Drive . 11021 Magnolia Blvd. Laguna Hills,CA 92653 Newport Beach CA 92660-7912 Garden Giove,CA 92642 President 3 Tom c 12 Pacific C t Archaeological 18 Amigos olsa C ' Ne est So ,Inc 1 Bolsa a Street,Suite 312 52 roadway' O. 10926 Huntingt each,CA•92649 to Monica,CA 904C 1 Costa Mesa,CA 92627 —"�-- Atta Jane Gothold Sunset B o ity Assoc. 4 Pres.,H.B.Hist.Society 13 Director 19 P Pes,P � ent C/O Newland House Museum O.C �.4048 Dev.Services Dept. O Bo 5 19820 Beach Blvd. P. Sunset Beach,CA 90742-0215 Huntington Beach,CA 92648 Santa Ana,CA 92702-4048 President 5 Community Services Dept. 14 Vicky W on 19 Huntington Beach Tomorrow Chairperson O. c Facilities&Res.Dept. . PO Box 865 Historical Resources Bd. ox 4048 Huntington Beach,CA 92648 Santa Ana,CA_92702-4848 Julie Vandermost 6 Coun on 15 P ire or 20 BLA-OC 17 Or e Ave. Ci Ca Mesa 17744 S Park Circle,#170 Hun ' on Beach,CA 92648 P.O. o� x 1200 Sky Irvine CA 92614 4441 Costa Mesa,CA 92628-1200 Richard ice 7 Jeff Metz 16 Pl erector 21 SC Seac' OA Ci f F taui Valley 18 st 7th,12th Floor 19 1 Sha arbor Circle 102 ter Ave. s Angeles,CA 90017 Huntington Beach,CA 92648 Fountain Valley,CA 92708 E.T.I.Corral,100 8 JohnK!Kdal, 16 P or 22 Mary Bell Seac Ci f ort Beach 20292 Eastwood Cir. 19 ane P. . x 1768 " Huntington Beach,CA 92646 Huntington Beach,CA 92648 Newport Beach,CA 92663-8915 Al Hendricker 9 Lou�ne 16 Pl ire or 23 Environmental Board Chairman Seac HO2 Ci We ster t`l 8452 Grace Circle 19821 O Bluff Circle 820 W tminster Blvd. Huntington Beach,CA 92646 Huntington Beach CA 92648 Westminster,CA 92683 ®09LS aoj ajejdwaj as fj W,,s1884S paaJ 410OWS .lase '>//�.r�`%1 � W10965 l G:Labels\Labels\Pub.c Hearmg slagel ssaippy oAU3A%f Qv Planning ' ector 24 James�' El 31 HB Ham s HOA 38 City o eal ach Ocean entary Progr ve Comm Mgmt 2 ig t. Scho 24,W3 Fuert al,#300 eal each,CA 90740 1 00 ' ehurst Lane Nfissio sego,CA 92691 Huntington Beach CA 92647 California Coastal Commission 25 JonLArc ' d 32 Sally Gmh 39 Theresa Henry Weer S ool District 1\feado k AreSouth Coast Area Office 141d ood Avenue 516 din ircle 200 Oceangate,loth Floor Weter CA 92683 Huntingt n Beach,CA 92649 . Long Beach,'CA 92802-4302 California Coastal Commission 25 Patricia Ko 33 Cheryle Bro 39 South Coast Area Office HB U n Hi chool Disrict l�feado a 200 Oceangate,10th Floor 10 1 Yor wn Avenue 16 Ro evelt Lane Long Beach,CA 92802-4302 tin eon each,CA 92646 Huntington Beach,CA 92649 Robert Jos 26 CSA,Inc. 34 Hearthside Homes 40 Ca13.3"l i ct 12 Marsh p resident 6 Executive Circle,Suite 250 elson Drive,Suite 380 204 ata Irvine,CA 92614 I e,CA 92612-1699 Newport each,CA 92660 Director 27 Goldenwege 35 :52;00 �Chicad Trust 41 Local ste Enf.Agy. Attn: e ens ue,Ste. 108 H Care Agency 15 Goldenwest St. ingto each,CA 92649 P.O. ox 355 Huntington Beach CA 92647 Santa Ana,CA 92702' New Gr ordinator 28 OC Co H ors,Beach 36 BoLca and rust 41 H ' gto each Post Office an ark ept. Ev resident 6 71 W er Ave. P..O.Box 4048 1 Z iffin Place Huntington Beach,CA 92647 Santa Ana,CA 92702-4048 Newport Beach,CA 92660 Marc E er 29 Huntin Beach Mall 37 Ed De3 e,Chairperson 42 Fo fain alley Elem.School Dist A • at Ro rs-Laude S A 1 2 ak Street 7 E ger Ave.#300 9 1, ircle Fountain Valley CA 92708 Huntington Beach CA 92647 Huntington Beach,CA 92646 Dr. ry R erford,Super. 30 Country iew tes HOA 38 OC S ' on District 42 City ementary School Dist. Cam o s 10 Ellis ue 205 raimer Lane 6-6`` :gtn er Drive oun alley Ct'i 92708 Huntington Beach,CA 92648 1`lun Beach CA 92648 David P 30 Country iew Estates HOA 38 Ed Bla res' ent 42 HB El entary School Dist. Ger C man AES untin each,LLC 2 51 C er Lane 2 S ' e Circle 2 30 N d Street Huntington Beach,CA 92648 H gton Beach CA 92648 Huntington Beach CA 92646 0091S aoj ajeldwal ash WislaayS P38A 410OWS i CITY COUNCIL/REDEVELOPMENT AGENCY PUBLIC HEARING REQUEST SUBJECT: ZT pt O - O ' DEP MEETING DATE: O 7- Dly,•a�} . CO ACT: aBIN PHONE: N/A YES NO ( ) ( ) Is the notice attached? Do the Heading and Closing of Notice reflect City Council(and/or Redevelopment Agency)hearing? ( ) ( ) Are the date,day and time of the public hearing correct? ( ) ( ) If an appeal,is the appellant's name included in the notice? ( ) ( ) If Coastal Development Permit,does the notice include appeal language? Is there an Environmental Status to be approved by Council? Is a map attached for publication? ( ) ( ) Is a larger ad required? Size Is the verification statement attached indicating the source and accura of the mailing list? _ Co Q�hltYotA� � C� �� Q.Lt"E( ( ) ( ) Are the applicant's name and address part of the mailing labels? Are the appellant's name and address part of the mating labels? If Coastal Development Pernik is the Coastal Commission pait of the mailin labels? ( ) ( ) If Coastal Development Permit,are the resident labels attached? ( } ( ) Is the Report 33433 attached? (Economic Development Dept,items only) Pleas complete the following: _ 1. Minimum days from publication to hearing date 10 2. Number of times to be published 3. Number of days between publications 21 77 7 (D MEETING DATE: July 6, 2004 DEPARTMENT RECEIVED SUBJECT: REQUESTING: DATE Fire 06/02/04 FireMed Fee Schedule Change Planning 06/17/04 Zoning Text Amendment 04-01 - Condominium Conversons Ordinance TODAY'S DATE June 17, 2004 VERIFIED BY ADMININSTRATION: JI APPROVED BY: /Penelope du-1 br&th-G raft bIA �0(1 City Administrator �1-6 June 17,2004 3:02 PM PROOF OF PUBLICATION STATE OF CALIFORNIA) . ) Ss. County of Orange ) I am a Citizen of the United States and a111aINMK11EARMlf to interested parties at theCity Clerk's.Office 71fic"Oft on Thursday, July 1, resident of the County aforesaid; I am o�n MYOF 2004. over the age of eighteen years and not a Hu a�e�►a. ALL iNTERESTED PERSONS are invited to � NOTICE IS HEREBY attend said hearing and party to or interested in the below JyGIVEN, 2t0o04, Tuesday, express opinions for or entitled matter. I am a principal clerk of p.m. in the City Council submit evidence for or Chambers, 20M Main against the application Street, Huntington as outlined above.If you Beach, the City Council challenge the City the HUNTINGTON BEACH INDEPENDENT, a council's action in court, newspaper of general circulation printed will hold ll public hearing you may be limited to on the following planning raising only those issues and zoning items: you or someone else and published in the City of Huntington 1. TONING TEXT raised at the public AMENDMENT NO. 04- hearing described in this Beach, County of Orange State of of (CONDOMINIUM notice, or in written , CONVERSION ORDI- correspondence deliv- and that attached Notice is a of H Applicant: nBeach Bred to the City at, c California, prior to, the public true and complete copy as was printed Request: 5, amend hearing. If there are any Chapter nve Condo- further questions please De- and published in the Huntington Beach the H Conversions, of call the Planning De- the Huntington Beach partment at 536-5271 Zoning and Subdivision and refer to the above and Fountain Valley issues of said Ordinance.The proposed items. Direct your amendments are in- written communications newspaper to wit the issue(s) of: tended to update the to Joan itnn,Ci. original ordinance Joan Flynn,City Clerk adopted in 1984 and to City of Huntington Beach establish procedures for 2000 Main Street permitting units previ- 2nd Floor ously converted to Huntington Beach, condominiums without California 92648 City approval. Location:, (714)536-5227 Citywide Planner As Published Huntington June 24, 2994 signed:JanaJames Beach Independent June NOTICE IS HEREBY 24 2004 064-669 GIVEN that-Items #1 iv' categorically exempt from the provisions of the California Environ- mental I declare under penalty of perjury, that proposed request ON FILE:A copy of the � r proposed request is on fife in the City Clerk's the foregoing is true and correct. Office,2000 Main Street, Huntington Beach, Cali- fornia 92648, for in- spection by the public. A copy of the staff Executed on June 24 2004 report will be available at Costa Mesa, California. Signature PROOF OF PUBLICATION STATE OF CALIFORNIA) . ) SS. County of Orange ) NOMOfPHIIKHEAR i to interested parties at I am a Citizen of the United States and a TOCMOlAl�L the City Clerks Office I on Thursday, July 1, 2004. K ALL resident of the County aforesaid; I am NOTUICEKE N IS H HER TON EREBY P attend sa RSONS RESTED id a e hearing and invited to over the age of eighteen years, and not a GIVEN that on Tuesday, express opinions or July in 2e City at 7:00 submit,evidence for or party to or interested in the below p.m. in the City Man against the application Chambers, u n t i Maio as outlined above.If you entitled matter. I am a principal clerk of Street, Huntington challenge the City Beach, the City Council will hold a public hearing Council's action in court,you may be limited to the HUNTINGTON BEACH INDEPENDENT, a on the following planning raising only limitedose to and zoning items: you or someone else newspaper of general circulation, printed es 1. ZONING TEXT raised at the public b AMENDMENT I UM hearing described in this and pu lished in the City of Huntington D1 (CONDOMINIUM notice, or in written CONVERSION ORDI- correspondence deliv- Beach, County of Orange State of u) Applicant: City ered to the City at, or / o of f H Huntington Beach amend prior to, the public California, and that attached Notice is a Chaptert 25° Condo- hearing. If there are any minium Conversions, of further questions please true and complete copy as was printed the Huntington Beach call the Planning De- Zoning and Subdivision partment at 536-5271 and published in the Huntington Beach Ordinance.The proposed and refer to the above amendments are in- items. Pitect your written communications and Fountain Valley issues of said tended to update the to the City Clerk. original ordinance Joan Flynn,City Clerk newspaper to wit the issue(s) of: adopted in I and to City of Huntington Beach establish procedures for 2000 Main Street permitting units previ- 2nd Floor ously converted to Htottington Beach, condominiums without Garifornia 92648 City approval. Location: (714)536-5227 Citywide Planner As- Published Huntington slgn�a Jan*James Beach Independent June June 24, 2994 GIVENIthatlte sE#1 s 24,2004 064-669 categorically exempt from the provisions of the California Environ- mental Quality Act. ON FILE:A copy of the proposes! request is on I declare, under penalty of perjury, that file in the City Clerks P P Office,2000 Main Street, the foregoing is true and correct. Huntington Beach, Cali- fornia' 92648, for in- spection by the public. A copy of the staff report will be available Executed on June 24 2004 at Costa Mesa, California. / 4 Signature FROM FAX NO. Jul. 01 2004 09:33AII P1 Tv OF H U j.9 8 E--A C H, CA Z004 JUL A 1: 0 Fax Tb, Joan Flynn—C ty Clerk From: D. J. Makwh Fax, 714-374-1557 Pages: Cover+3 Phone., Date. I-Jul--04 Re; Condo Conversions ❑Urgent 0 For Review [I Please Comment ❑ Please Reply 0 Please Recycle Comments- Please include in official record of the public hearing scheduled for 6 July 2004 regarding Zoning Text Amendment No.04-01 ndominiurn Conversion Ordinance). r .. �- C 1 r'Y OF 4GTOi\1 BEACli, CA 1004 .►UL - I ,4 0� Transmittcd Via IrAX 30 June 2004 City Council Members City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 RE: 0indo Conversions and Public Hearing on 6 July 2004 Dear Council Members- I am the owner of a unit in the fourplex.at 409 20`1' Street in Iuntington Beach. This building was constructed as an apartment building circa 197.4. It was subsequently converted from rental units to individual ownership in 1982. As the City did not adopt an ordinance code governing the conversion of rental property to ownership units until 1984, C must question why the City is attempting to apply the 1984 ordinance (Chapter 235 of the Huntington Beach Zoning and Subdivision Ordinance: "Condominium Conversions") and the proposed"Zoiung Text Amendment No. 04-01"to our building. Almost certainly, there are other buildings falling into this category as well. To that end, I add the following. We have documents that,to a reasonable person, show the City has been aware of conversions from rental apartments to ownership rants since at least as 1981_ Our position is not unique, as we know others who have similar documents. We also have documentation demonstrating that the City took the position that there was no distinction between conversion to either condo or co-op. Both condo and co-op were treated the same. The City gave its tacit approval to the conversions that were taking place over 20 years ago. Now,the City contends that it has only just recently become awarc of these conversions. "that is simply not true. It is highly inequitable for the City to remain silent on conversions for over 20 years and then subject homeowners to an ordinance(and its revision)that was adopted after conversion from rental to ownership had taken place. I would also like to comment on the Affordable.Housing,In Lieu Fee (AHILF) that is being -2 proposed in the amendment. FROM FAX NO. : Jul. 01 2004 09:39AM P3 Section F.ol'235.16, Findings, talks about the AHILF in the event that conversion would result in displacement of tenants or delete a significant number of rental units from stock. As stated, our building was converted from rental to ownership in 1982. None of the current owners was a party to the original transaction_ As such; we did not displace anyone or remove rental units from stock. We purchased our units from a previous owner. Adding the AHILF to the ordinance certainly serves as a disincentive for any future conversions. However, assessment of an AHILF against current owners is nothing more than a punitive measure. This provision should not be applicable to'current owners. Section B of 235.08, Condominium Conversion Standards,also references the addition of AHILF when talking about inability to comply with parking requirements and landscape improvements. I fail to see a logical connection between affordable housing and parking/landscaping, The City knows of the physical impossibilities in complying with the parking requirements. Again,the AHILF is being used as a punitive measure. This just isn't right. The section states the purpose of the AMLI~is to "off set the loss of affordable rental housing stock." In our case, the planning department is working on the assumption that tenants were displaced,hardship was caused,a significant number of rental units were removed from stock, etc,when our building was converted in 1982. This is a very broad assumption and may not even be valid. I'm sure you will agree that Huntington Beach has changed greatly over the past 22 years. The planning department also seems to have made the broad assumption that none of the units being questioned are serving as rental units. That certainly is not the case. Many units are being rented and therefore are providing rental stock. According to a 13 May 2004 story on the"Los Angeles Times"website,the current balance of rental to homeowners units is approximately 40%"to 60%. Howard Zclefsky is quoted as saying "What's optimal." That certainly indicates that rental stock has not been adversely impacted. In summary: The proposed Amendment No. 04-01 makes revisions to a 1984 ordinance. Any units that went from rental to individual ownership status prior to adoption of the 1984 ordinance are not subject to the ordinance and this subsequent amendment. The amendment does not appear to make this distinction. The City was aware that conversions were taking place as fax back as 1981 and did not raise any objections until more than 20 years later. This should be viewed as ratification of the conversion. The AHILF is unreasonable and is being used as a punitive measure against current owners who purchased existing ownership units. ■ Tenants were not displaced nor were rental units taken off the market as a result of purchases by the current owners. FROM FAX NO. : Jul. 01 2004 09:40AM P4 ■ Claims flor AHILF should be directed to those who may have done such. ■ The City is making broad assumptions about what may or may not have been over 20 years ago. ■ The City has stated that the current 40%to 60%ratio of rental to homeowner units is "optimal." I ask you to give serious and thoughtful consideration to these points and not approve the amendment in its present form. Thank you for your time and consideration in this most important matter. Sincerely, 0CW n os� David J.Makuch Owner 409 20`h Street#P cc; City Attorney City Clerk Planning Department MICHAEL C. ADAM50E,VEp FROM ASSOCIATES Al`'` ' tD FOR C01NCL wEEnra CITY CLERK OFFICE JOAN L FLYNN,CITY CLERK July 6, 2004 Mayor Green and Members of the City Council 2000 Main Street Huntington Beach, CA 92648 RE: Proposed Revisions to the City's Residential Condominium Conversion Ordinance. Dear Mayor Green: Thank you for the opportunity to review the proposed revisions to the City's Condominium Conversion Ordinance affecting projects of four units or less. Following the public discussion and subsequent meetings with Council members and staff, a couple of items still need clarification. The proposed revisions reflect a substantial change in the process and regulations concerning small condominium conversion projects. In addition,please address and consider the following: Subdivision Map Requirement • Allow existing projects of four units or less to submit a detailed site plan of the "as built"conditions. The site plan can be reviewed concurrent with the Conditional Use Permit application . The City will then have an opportunity to add conditions to individual projects in response to the existing layout. If after that review it is determined a formal Subdivision Map is necessary to achieve the City's desired objective, a condition can be imposed on the project to require the submittal of a Subdivision Map application. We feel that very few, if any projects will warrant a Subdivision Map; and rather than requiring all projects to undertake the added cost and time to review and approve a map, only request it in the necessary few cases. P.O. Box 382, Huntington Beach, CA 92648-0382 (714) 376-3060 e-mail: AdamsAssocCd socal.rr.com Affordable Housing Requirement • As discussed a number of times, compliance with the City's Zoning provisions for parking and open space standards may not be achieved by all of the affected properties. The staff recommendations of allowing an Affordable Housing In Lieu Fee to offset the shortfall in the City's standards raises additional questions; in particular, how much is the proposed fee and what correlation or nexus does this fee have to the perceived impacts. These concerns will be addressed in a future nexus study for the proposed fee and we will reserve comment to the appropriate time. Please consider adding a provision to the Code Amendment stating that prior to the adoption of the resolution establishing the Affordable In Lieu Fee, the applicant may post a surety bond in favor of the City of Huntington Beach pending establishment of the fees. Project approval may be granted by the Zoning Administrator or Planning Commission upon the posting of the surety bond prior to the establishment of the fees. The simplest and most effective way to address the majority of concerns is on a project by project basis with individual project review through the Conditional Use Permit process. Any City or neighborhood concerns could be addressed by imposing conditions, with reasonable time for compliance, on the individual projects. In addition,the recordation of a Condominium Map could be a condition of a project's approval. This additional step along with C.C.&R.'s will provide both the unit owners and the City with necessary assurances that all the issues have been sufficiently addressed. Please thoroughly consider the less costly, more efficient and timely single application process of a Conditional Use Permit. By eliminating the mapping process, applicant preparation costs, and filing fees,the City's review time can be cut in half. Thank you again for the opportunity to review the draft changes to the City's Zoning Code. Sincer y, Mike A I s , cc David Boss cr Huntington Beach Hearing on Zoning Text Amendment No. 04-01 Affected Homeowners Perspective on the Proposed Condominium Conversion Ordinance July 6, 2004 7/6/2004 RECENED FROM AS KWICOF RECORD 0'�'R C IL CIE Nei CITY CLERK OFFlCE JOAN L FLYW CITY CLERK Al Outline In considering the time limitation of three minutes per speaker, our presentation to the City Council will be conveyed by five affected condo owners as follows: • Opening Comments Aaron Frankel • Impact on Affected Condo Owners Terri Cole • Impact on Affected Condo Owners (cont.) Patrick Bortmann • City-Assumed Solution Approach is Needed Matthew Busser • Summary Statements Dan Torla • 5 supporting exhibits are included in the handout packet. 7/6/2ooa 2 2 Opening Comments Facing an extremely complex issue that has perpetuated for more that 20 years, may include criminal misconduct, and potentially stems beyond the City of Huntington Beach, affecting hundreds of households within Orange County • Deeply concerned about the following: • Attempted to work with city representatives on several occasions such that our conversion concerns are appropriately addressed • $2.4M windfall and associated cost and time impositions affect an estimated 120 household victims (who have been victimized once already) • Oppose City Ordinance proposal as it stands today • Over-simplifies the process in identifying the `real responsible parties' accountable • Affected condo owners do not agree with and are deeply concerned with the shift of burden for conversion to households 7/6/2004 3 This following presentation was created by a large group of affected homeowners; however may not necessarily represent the opinions of all affected parties. [Ask that affected homeowners please stand up.] Today, we face an extremely complex issue that has perpetuated for more than 20 years, may include criminal misconduct, and potentially stems beyond_ the City of Huntington Beach affecting hundreds of households within Orange County. First and foremost,we want it to be understood that we have sought on several occasions to work with our city representatives such that our conversion concerns be addressed in a timely manner. Second,we want it to be understood that we are concerned over the$2.4 million windfall that affects some 120 households and requires innocent homeowners,who have been victimized once already,to be burdened a second time with both unplanned monetary and time- consuming impositions. Third, we want to make known our deeps concerns and frustrations over the apparent ordinance proposal clear to City Council, in that we oppose the proposal as it stands today. •Oversimplifies the process of identifying and holding the`real responsible parties' accountable for what may have resulted in instigating and/or perpetuating the condo conversion issues—i.e. the conversion of apartments to condos should have been duly accounted for by the `responsible parties'some 20 years ago, not the innocent parties that currently own these condos •We,the owners of the affected condo units in question, do not agree with and are deeply concerned over the city's approach to shift the entire burden for the conversion onto us, i.e. the current approach shifts the"burden of the crime to the victim", a situation that we did not instigate and/or knowingly promote 3 Impact on Affected Condo Owners (page 1 of 2)_ FonAsas been noted in a number of sources, the impact on the affected ndo owners is and can be substantial !! • Total estimated cost to a typical 4-plex can potentially exceed $120,000 • To clear our titles it may cost as much as$20,000 per condo • Applications, permits, and preparations may be as much as $10,000 per condo • Physical costs will add an additional $TBD (one unit has already paid over$80,000 to comply) • Added impositions and hardships while this matter is pending: • Inability to refinance and/or sell an affected property and the accompanying damages • Loss of property value and the fueling of "negative perceptions to perspective property buyers" • Loss of income for unplanned time off work • Miscellaneous unplanned out-of-pocket related expenses 7/6/2004 4 As has been noted in a number of sources to date,the impact on the affected condo owners is and can be substantial II As the ordinance stands today, the total estimated cost imposition to a typical 4-plex project can potentially exceed$120,000,an exorbitant amount of money that is clearly unaffordable. These cost impositions have been outlined for your information: 1. In order to clear our titles it may cost as much as$20,000 per condo unit 2. The applications, permits,and preparations to adhere to city proposed requirements may cost as much as$10,000 per condo unit 3. The physical adjustment costs to adhere to city proposed requirements may add an TBD monetary imposition, i.e.one unit has already paid over$80,000 to comply with city requirements Moreover,there are numerous and significant impositions and hardships while this matter is pending,as follows: • Inability to refinance and/or sell an affected property and the accompanying damages • Loss of property value and the fueling of"negative perceptions to perspective property buyers" • Loss of income for unplanned time off work • Miscellaneous unplanned out-of-pocket related expenses 4 Impact on Affected Condo Owners (page 2 of 2) The affected condo owners stand to actually PAY DOUBLE the conversion cost amount by: • Paying the conversion expenses being sought by the City. These should have been the responsibility of the original `entrepreneurial party' that orchestrated the business plan to convert apartments into condo units • Exhibit 1 —October 10, 1990, Letter to City Senior Planner and Zoning Administrator from Phil Benson • Exhibit 2—July 20, 1990, Letter to Ruth Lambert, City Planning Department from the Law Offices of John A. Barthrop • Paying the `the going,market price' for our condos at the time of purchase, without being made aware of any outstanding conversion costs. We were not given the opportunity to discount our purchase offers to account for these upcoming conversion expenses—i.e. condo owners have already carried the burden of the conversion cost. 7/6/2004 5 Furthermore,the impact of the proposed ordinance results in the affected condo owners actually paying for the conversion cost twice—resulting in DOUBLE the conversion cost amount. First,the conversion expenses being sought by the City should have been burdened by the original`entrepreneurial party'that orchestrated the business plan to convert apartments into condo units. In support of this statement, we have identified 2 anecdotal letters that we would like to share with the City Council—each letter highlights that the City of Huntington Beach was aware of and participated in our former conversions. Please see exhibit 1 in your handout, dated October 10, 1990—A letter to Mr. Mike Strange,the City Senior Planner and Zoning Administrator from Phil Benson—"this conversion is purely a paperwork matter,and does not add any additional units to any of the projects, and does not involve any structural alterations,the City of Huntington Beach would not require a permit for this conversion." Please see exhibit 2 in your handout,dated July 20, 1990—A letter to Ruth Lambert, City of Huntington Beach Planning Department from the Law Offices of John A. Barthrop —confirms that the City of Huntington Beach was contacted on several accounts regarding applications for condominium plans and thus participated in our conversion processes Lastly, we have paid`the going market price'for our condos without being made aware of the outstanding conversion costs; and thus we were not given the opportunity to discount our purchase offers to account for the upcoming conversion expenses. More specifically, condo owners have already carried the burden of the conversion cost. 5 City-Assumed Solution Approach is Needed City Itoassurne responsibility in seeking the solution: • Criminal misconduct investigations should continue, with the required intensity, in order to conclusively establish the culpable parties who caused and perpetuated the issue • City Legal Department to initiate inquiry into determining how the multitude of title companies and realtors have failed in their obligations • City Council to lead an examination to determine why the conversion ordinance was not enforced and why it was not initially applied • Exhibit 3-October 2, 1990, Letter to Mike Adams, Director of Community Development from City Attorney, Gail Hutton • City Council to lead a unified approach to hold the title companies accountable for their potential missed responsibilities and negotiate remittance of conversion costs from the affected title companies directly to the city (i.e. resolve the issue while taking the homeowners out-of-the-loop) 7/6/2004 6 Given the financial and related burdens on the affected condo owners, along with the complex nature of the problem that existed for some 20 years, it is recommended that the City Council, as the governing body on behalf of its city residents, lead the effort to resolve the problem by focusing on the parties that could have averted the issue from happening to begin with. Specifically,we request that the City of Huntington Beach assume the responsibility in seeking the right solution: ➢ We are very pleased that our police department has initiated an investigation to determine who may have caused the problem. We request that the criminal misconduct investigations continue,with the required intensity, in order to conclusively establish the culpable parties who caused and perpetuated the issue. ➢ We would also like to recommend that the City Legal Department initiate an inquiry into determining how the multitude of Title Companies engaged with numerous realtors inH.B. have failed in their primary obligation to identify past due obligations against properties during numerous property transactions ➢ We would also appreciate an examination by the City in determining why the Conversion Ordinance was not enforced and how it was NOT applied to the entrepreneurial party who had owned the apartments and most likely drove for their conversion status • Please see exhibit 3 in your handout,dated October 2, 1990-A letter to Mike Adams, Director of Community Development from the City of Huntington Beach Attorney, Gail Hutton-this letter confirms that a condominium is a stock co-op and there are no city imposed restrictions for changing a condominium to a stock co-op or vice versa. ➢ Lastly, we request that the City Council lead a unified approach to hold the title companies accountable for their potential missed responsibilities and negotiate remittance of conversion costs from the affected title companies directly to the city-Specifically, resolve the issue while taking the homeowners out-of-the-loop. 6 Summary Statements The revenue recovery burden should fall on the parties that have linstigated and/or perpetuated the process that avoided compliance with the conversions enacted In the past • The problem is too complex and has been allowed to persist for too long to be simply placed on the `backs' of the individual condo owners—who were not aware of the problem when purchasing our condos • The city to assume the lead role in seeking compensation for potentially mismanaged services directly with title companies—who had the opportunity, If not the obligation, to identify the issue • The city to provide the affected condo owners with a self-enforcing advisory about related physical condo adjustments • The city to assess and itemize the `realistic and justifiable' costs (if any) to be burdened and provide directly to the title companies such that they are appropriately remitted • The city to enact an ordinance that exempts our special class of owners from any financial obligations and time-consuming impositions related to the conversion 7/6/2004 7 In summary,the affected owners are very much concerned over the conversion issues surrounding our properties and would like to see them addressed in a timely manner. The following summarizes our requests to City Council such that our situation can be appropriately resolved. • The revenue recovery burden should fall on the parties that have instigated and/or perpetuated the process that avoided compliance with the conversions enacted in the past • The problem is too complex and has been allowed to persist for too long to be simply placed on the'backs'of the individual condo owners—who were not aware of the problem when purchasing our condos • The city to assume the lead role in seeking compensation for potentially mismanaged services directly with title companies—who had the opportunity, if not the obligation,to identify the issue • The city to provide the affected condo owners with a self-enforcing advisory about related physical condo adjustments—This means that if any physical condo adjustments are required,the city should not make these requirements legal obligations;but, provide the opportunity for the affected owners to adhere to the requirements at their own discretion. • The city to assess and itemize the'realistic and justifiable'costs (if any)to be burdened and provide directly to the title companies such that they are appropriately remitted • The city to enact an ordinance that exempts the special class of owners from any financial obligations and time-consuming impositions related to the conversion Thank you,and let's work together to resolve this situation. 7 FAdditional Supplemental Exhibits Exhibit 4: 1984— 1985, Joint Consolidated Tax Bill • Underscores levy on Co-op Project Assessment • Exhibit 5: June 14, 2004 • Letter to Scott Schutzman (affected owner)from Stewart Title • Underscores that no coverage is afforded under the terms and conditions of the title insurance policy for non-compliance with building codes or zoning laws 71612004 8 8 Thank you. And let's work together to resolve this issue. 7/6/2004 9 9 .gun. 13 2004 4: 55PM BENS,' REAL ESTATE 208-78P 7454 p. s RX44t$IT 3 1u u�:tot►or 199h Mr, Hilte Strange Setnioc Planner and Zoning Administrator Comiur:ity Development Department City of Ituntiugton death City 11411 11untiugton Beach, CA 92648 Rent 4 Unit Stock Cooperutive- Uttar Hr. Strange: No preaently represent several clients Who own units in same of the small Stock Cooperatives in Huntington Beach. These owners have Votained a local attorney, Gregory Parkin, to effect a eottvarsion of thew associations to condominiums. It is -the opinion of Mr. Parkin that as this aonvarsion is purely a paperwork natter, and does not add any additional unite to any of the projects, and acres not,involve any 'structural alterations, the City of fluntiniton death tiouid not require a permit for this conversion. As you are the official in oltarge of Code enforeament lit our City, we respectfully reyuast that you verify this for us. Sincerely yours, P111L BENSON 322 5th Street a Huntington Beach, California 92648 6 734.5:36,026, 11/1� Ar LAW OFFICES ^S�B�T? pM°� InT Z OF JOHN A. BARTHROP JOHN A. BARTHROP _ THE CITY (714) 938-IOtO SUITE 407 FAX (714) 938-1387 ONE CITY BOULEVARD WEST ORANGE, CALIFORNIA 92668 July 20, 1990 City of Huntington Beach Department of Planning 2000 Main Street Huntington Beach, . California 92648 Attn: Ms. Ruth Lambert Re: Application for Condominium Plan for 413 14th Street Co-Op Dear Ms. Lambert: This will confirm my contacting your office on two separate occasions in the past with regard to obtaining specific information on the policies and requirements of the City of Huntington Beach to converting the four (4) unit complex referenced above which is presently a stock co-operative entity. You may recall, Mr. Basaria from this office personally contacted r you. Also the owners of the property have contacted and retained- LaMar H. Stewart, Civil Engineer for his services with regard to the prospective condominium plan and application, and you may be contacted by him. You, of course, are authorized to disclose and discuss with Mr. Stewart any and all aspects of the existing recorded documents and the anticipated procedures and steps in order to accomplish the change to condominium ownership for each of the four (4) owners and occupants. I understand that Sarah in the City Attorney's Office will review this request on an informal basis to help advise that which the City will or may require. Would you please review your records with regard to the specific property and give a copy of this letter to Deputy City Attorney named "Sarah" to review and itemize the timing and procedures that staff or City may require or desire to accomplish our client's goal of changing from a stock co-operative ownership to condominium title and ownership? If you think that it would be beneficial and efficient to have a 'preliminary discussion, please call this office and I will arrange rQyo iwv �5 T 2 J my schedule to meet with you and/or Sarah or any of your staff, as soon as you can schedule same. Enclosed for your information is a reduced copy of appropriate recorded documents referencing the co-operative plan. Very truly yours, LAW OFFICES OF JOHN A. BARTHROP JOHN A. BARTHRO JAB:mas Enclosures: cc: Client LaMar H. Stewart, Civil Engineer - w/enclosure John O'Brien 1/14thst141.1e1 Ai -r' JUN-22-200044 13�1 JUN 13 2004 4155PM �J �^ JAA 01TV. 011V HUltd'3"rN1CTON B12ACH I INTER-DEPARTMENT COMMUNICATION �uw► aCj� To Nike Adam• From Qeil'Huttan Director of Coozanity Day. City Attorney Subject Stock co-op ownership to ow, October 2, 1900 oondominium title and ownership RLS 090-569 Huntington Haach Ordinance Cods $936.5.0 at seq, covers conversions From various forms of ownership to condominiums and aett forth the City requirements for those masking such a conversion, 11'or.thess purposes, $936.8.0 consider* a condominium to be a stock co-op, Since the code treats co-ops and condor as one in tKi6 context, there is no city imposed restrictions for changing a coadomi, ium to a stock co-op or vice vsrsa. City Attorney QH/clh co: Susan pierce Sarah Lazarus i f+� _ , T CONSOLIDr.II ED TAX BILL RA tNDAMOUNTS LEVIED BY TAXING AGENCIES CITIES,COUNTY,SCHOOLS AND ALL OTHER SERVICE AGENCY AMOUNT 1 r$4—�85 TAXING AGENCIES IN ORANGE COUNTY H BCH HS---HB EL—B 2.08 FISCAL YEAR IS JULY 1,1984 TO JUNE30,1985H BCH — B 5-26 ROBERT L. "BOMB" CITIR' H B H S T 8 D1)6 AID -61 COUNTY TAX"COLLECTOR—TREASURER EDUCATION SUBTOTAL Finance Bldg.,Room 106,630 North Broadway C O -I M P R O V _B O,N D S ,1 P.O.Box 1438,Santa Ana,CA 92702 • Phone:834-3411, ANY QUESTIONS REGARDING PROPERTY VALUES OREX- T � T - 24 - 9-6 ' EMPTIONS CONTACT THE COUNTY ASSESSOR"834-2727. pJl➢— -"_r C"-�R I 6 - �t A 73212 QAsiC, LEvY 443.23 SPL 'ASSESSMENT DIST ' O C AN fil T/R . o OWNER OF RECORD AS OF 12:01 A.M.ON MARCH 1 1984 AS4 409. T IE'K,TIETH `STREET INC CR. � � ➢A17IDk-, HO IARD ET t L:.. `. �� a .. L ,r,�.. _. ! � M 4Et� .'FIENT�ETFt �"S'�RE 'f INC A DAVI➢, Ht�Jr�R� G ET- AL XNEELAN.DS,_-_CAROLE—A �o L 18142 MAPLE GROVE" CIR " TO: HUNT,1NGT'.ON BEACH,."CA 92L.48 - - - TAX RATE AREA PARCEL,N0MBER RATE YR FICNE FRAME y 04-001 897-12-003 1985 e2565 1'F3 FULL VALUE HOMEOWNERS TAX RELIEF qAlt Land-and/or Mineral Rights 11081 °�, Isr FIRST.INSTALLMENF SECOND INSTALCMEN7. TOTAL ImWovements-Buildings 32244 AMOUNT DUE N MOtI 1 Improvements-Other Tax SaJJngs Due to c Personal Property-Other Exe.p I.. ADD to% 10 AD 11196, . AFIF Pers.Prop.I nventory TAX DUE tt q 7.t 1 f1 t� ,7(j TOTAL VALUES , Ax REDUCTION ArTAI AOR 4 4 3 2� "TEE"sTATE,RINA ED NOMEDWNERs ADD eosT 1 B;0 0 In.no Inventory Exemption-50% TAX HEL�EF PFit7GR EO , 1.Veteran -5-,Welfare 7 1 t 5 M F E 7 0 2-Chup,- 6-other 3-Religious 7=Homeowner l ADDIT10tzlAL PENALTIES"ACCR_UE�Af'fER"-28"DUNE 1966 m• 4-College X-Whoiry Exempt - TOTAL NET TAXABLE VALUE$ 44325 - - 'IF TM RE,ARE NO PAYMENT STUBS " SE-E REVERSE LEGAL DESCRIPTION&MISCELLANEOUS DATA BELOW ATTACHED TO SIDE OF THIS BILL - =PARA NO:�4 HUNTINGTON BEACH 17TH STREET SECTION BLK 429 LOT 9 AND BLKCC 420 LOT 11 TOGETHER WITH UNIT C AND APPUR T�OMkkf '-YOUR TiECORkT E➢ 0 N CF{FCk NO2 3-12�T la� 2ND INST. fS �� Scott Schutzman June 14, 2004 Page 3 1. (a) Any law, ordinance or governmental regulations (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i)the occupancy,use, or enjoyment of the land; (ii) the character,dimensions or location of any improvement now or hereafter erected on the land; (iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection,or the effect of any violation of these laws, ordinances or governmental regulations,except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. Consistent with Paragraph 1 of the Exclusions from Coverage as noted above, the effect of g governmental regulations concerning the building codes or other building and safety or zoning concerns are not afforded coverage,unless there was a recorded notice of enforcement of the same. We are not aware of any such document being recorded as of the Policy Date. Therefore, if the Property did not, as of the date ofpolicy comply with applicable building codes or with other zoning ordinances, no coverage is afforded under the terms and conditions of the title insurance policy for any such non-compliance with such building codes or zoning laws. Paragraph 4 of the Conditions and Stipulations addresses the insureds duty to cooperate. Paragraph 4(d)states in pertinent part: (d) ...Whenever requested by the Company,an insured,at the Company's expense, shal l give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage,as insured. If the Company is prejudiced by the failure of an insured to furnish the required cooperation, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation,with regard to the matter or matters requiring such cooperation. Pursuant to paragraph 4,Stewart Title Guaranty has the right to pursue any reasonable act in an effort to establish title as insured. Further, you are required to cooperate with any reasonable act that Stewart Title Guaranty may request of you in an effort to establish title as insured. If you fail to cooperate, Stewart Title Guaranty's obligations to you under the terms and conditions of the Policy could terminate. At this time,Stewart Title Guaranty is attempting to establish title as insured by brining your unit into compliance with the City of Huntington Beach Condominium Conversion Ordinance ("Conversion Ordinance"). In furtherance of this effort, please provide our office with the Page 1 of 1 Ehring, Liz To: Fikes, Cathy Cc: Flynn, Joan; Jones, Dale Subject: RE: Letter to City Council Concerning Condo Conversions Thanks Cathy - it will be included in the packet. Liz -----Original Message----- From: Fikes, Cathy Sent: Wednesday, June 30, 2004 12:45 PM To: Flynn, Joan; Ehring, Liz; Jones, Dale Subject: FW: Letter to City Council Concerning Condo Conversions -----Original Message----- From: Aaron Frankel [mailto:aaron@unwarranted.org] Sent: Wednesday, June 30, 2004 11:05 AM To: city.council@surfcity-hb.org Cc:jhardy@surfcity-hb.org; phouchen@surfcity-hb.org; dsullivan@surfcity-hb.org; hbdac@hotmail.com; cgreen@surfcity-hb.org; cb4council@aol.com; gcoerper@surfcity-hb.org; aaron@unwarranted.org; RLujan@socal.rr.com; Gfgunn; lisa.houghtaling.ghyr@statefarm.com; Chad Owens; rosemary.short@coastsign.com;jason bon ifay@yahoo.com;jaustin27@aol.com; Kyle McDonald; stevemartin@thirdfloornorth.com; Felisa H. Lybarger; crandallnassoc@earthlink.net; oink99@surfside.net; thevinndog@yahoo.com; jacaveness@yahoo.com; JStone223@aol.com; muttimerryland@aol.com; rtarnow; surfjturner@cs.com; McGrath, Jennifer Subject: Letter to City Council Concerning Condo Conversions Dear City Council, Please see the attached letter (Microsoft Word Document attached) representing a unified voice of concerned households affected by upcoming legislation regarding condo conversion. While extreme constraints have been applied to prepare for the upcoming July 6th hearing, a significant / large number of households have contributed time to support this letter such that you can become informed of our circumstances and pursue the amicable approach towards resolving our situation. We expect that you will take our concerns and requests into consideration as you prepare for deliberation on changes to our Ordinance. With Best Regards, Undersigned Affected Households 6/30/2004 Date: June 30, 2004 To: Huntington Beach City Council From: Undersigned Affected Households Subject: Requested Changes to Chapter 235 Residential Condominium Conversions Ordinance Huntington Beach City Council: This letter pertains to a special class of"P�ff`ected Condo Owners", as defined within the Huntington Beach Condominium Conversions FAQ—June 22, 2004, who currently own properties recognized as not having followed and properly completed the required procedures for converting apartments to condos per City of Huntington Beach requirements. At this point in time, two categories of property owners are affected totaling an estimated 120 households are affected. In a certified mail dating May 17, 2004, by the Office of City Attorney Huntington Beach, it was brought to our attention that our property has not received the proper land-use entitlements as required by the City of Huntington Beach Zoning and Subdivision Code. Per the aforementioned mail, it was stated that it may be necessary for affected condo owners to take the required steps to establish evidence of conformity or obtain the appropriate entitlements by processing applications with the Huntington Beach Planning Department. The following letter attempts to outline a unified position of affected condo owners such that our City of Huntington Beach Council Members can effectively represent and account for the concerns of our community while deliberating changes to Chapter 235— Residential Condominium Conversions Ordinance, scheduled for July 6, 2004. In the Legislative Draft Ordinance (Proposed Changes to Chapter 235, June 1, 2004), special case residential condominium conversions impose insurmountable monetary, time-consuming, and time- constraining impositions. Per the current draft, initial conversion cost estimates affecting the involved households is likely to range between $25,000 and $35,000 (see Table 1). Table 1: Estimated Costs to Individual Affected Households per Proposed Ordinance Requirements and Requested Outcome for City Council Consideration Proposed Ordinance Requirements " Estimated'Cost'per Household' Requester!Outcome for City Council (assumes S units per complex) Consideration per Ordinance Changes Procedural Requirements Preparation for TPM $4,750/3 = $1,583.33 TPM Application Fee $3,994/3 = $1,331,33 Preparation for CUP $9,000/3 = $3,000 CUP Application Fee $3,502/3 = $1,167.33 CUP unit inspection $100+ Eliminate and/or minimize the monetary Coastal Development Permit $2,841 /3 = $947 impact and time-consuming process Final Map Preparation $2000/3 = $667 requirements to achieve converted status Final Map Application Review $2,817/3 = $939 Mailing Labels $100/3 = $33.30 Photographs $50/3 = $16.66 Affordable Housing In-lieu Fee $20,000 Physical Gonda Element Requirements Smoke Detectors $50+ GFCls $100+ Owner discretionary through City Draft Stops Under investigation recommended advisory Access to Electrical Branch Circuits Under investigation Total Estimated Cost to Affected Eliminate and/or minimize the monetary Household $30,000+ and time-consuming process requirements to achieve converted status Page 1 of 3 Furthermore, the loss of potential financial opportunity related to the impeded sale and /or refinancing may be significant. In the interest of the affected condo owners, we are requesting that the City Council see that the following associated conversion financial impact is minimized and/or eliminated—as follows: • Eliminate and/or minimize the monetary impact associated to achieve converted status based on City of Huntington Beach requirements • Eliminate and/or minimize the cumbersome and time-consuming process of understanding and fulfilling the steps to achieve converted status Due to the exorbitant procedural costs required to successfully convert our condominiums as outlined above, affected community members are requesting that the following also be considered while deliberating on Chapter 235 Ordinance legislation: • Recognize the affected property as a converted condo in a timely manner while eliminating owner-associated monetary and time obligations related to conversion • Allow individual condo owners to adhere to physical requirements at the condo owners discretion through City recommended advisory action without imposing legal requirements While it is unfortunate that the City of Huntington Beach may have experienced loss of rental housing stock during the period concerning conversions that occurred prior to 1984; the current owners have been under the impression that the required process to achieve"conversion"was fulfilled in accordance to defined procedures. Furthermore, it should be noted that the County of Orange has all along been levying property taxes on the affected households as homeowners (i.e., condo and not apartment owners). Additionally, our affected community foresees obstacles related to our property's timely conversion per the current ordinance draft and is seeking your leadership to quickly define and adopt amicable requirements. Our collective situation is complex in that our titles are insured by a diverse representation of title companies (Fidelity National, First American Title, Gateway Title, Stewart Title, United Title, and possibly others). In support of achieving timely conversion in a unified manner, many affected property owners with title insurance, have already and/or have taken the recommended steps to notify their respective title companies of their individual situation. At this point in time, it is unclear what action(s)our various title companies will exercise toward conversion of condos to achieve recognition. We are concerned that our title companies may not concede to absorb all required procedural costs associated with the conversion. Lastly, we have been informed that possible criminal misconduct may have occurred related to the conversion of our properties; and as a result, may have contributed to our collective misfortune. We are confident that the City of Huntington Beach Police Department is taking the appropriate actions to investigate the possible nature of these activities, and the affected community will cooperate to its fullest extent towards this end. As such, the city may be able to recover its missed opportunity of conversion housing stock revenue from the original entrepreneurial party that may have not followed and/or was not held accountable to follow the appropriate conversion procedure toward condo status-- i.e. the city should not seek to recover the missed revenue opportunity from the law-abiding and unaware affected owners who were not involved (in perpetuating this issue to begin with). At this time it is unclear how this may have affected our conversion and are confident that these activities will be accounted for when drafting future legislations. Although we are highly disturbed by the unexpected demands and impositions concerning the abovementioned circumstances that we did not contribute to/instigate, we remain optimistic that by working together as a collective community with our City Council we can expediently adopt an ordinance that addresses our concerns, supports our requests above, and benefits our community as a whole. We look forward to participating in our July 6th community meeting and are confident that our position will be taken into proper consideration. Deeply Concerned, Undersigned Affected Households(see page 3 of 3 for associated names of individuals) Page 2 of 3 Undersigned Affected Households 1. Aaron Frankel, aaron(cD-unwarranted.org 2. Richard and Lori Lujan, rluian(cbsocal.rr.com 3. Gregg and Cindy Gunn, dQunn(a-aol.com 4. Lisa Houghtaling, lisa.houghtaling.ghyr(cDstatefarm.com 5. Chad and Christina Owens, chado(a)makarproperties.com 6. Rosemary Short, rosemary.short(cD-coastsign.com 7. Jason Bonifay, iasonbonifay(c�yahoo.com 8. Jason Austin, iaustin27(c�aol.com 9. Kyle McDonald, kvlemcdl(a)socal.rr.com 10. Steve and Brissa Martin, stevemartin@thirdfloornorth.com 11. Felisa and Raoul Lybarger, flybarger(cDhkemlaw.com 12. Virginia Cruz 13. Ernest Martinez 14. Jeff Crandall, crandallnassoc(a)earthlink.net 15. Robert Nelson, oin k99(c)-su rfside.net 16. Vincent and Angela Periolat, thevinndog a(�.yahoo.com 17. Jennifer Caveness, iacaveness(a-)yahoo.com 18. Renee and Scott Tarnow, rtarnow(cr)_cir-resource.com 19. Michael and Jessica Stone, JStone223 a)aol.com 20. Howard Richey, muttimerrylanda-aol.com 21. Jay Turner, surfiturner(acs.com Page 3 of 3 .Huntington Beach - Official City ') site - Announcements Page 1 of _u q ti ° a c_h n0t n__ -,, s S search fags sitemap contact us home > Announcements IK k,a Condo Conversion FAQ's Elected Officials ► 1. When did the city start regulating condominium conversions? City Departments ► 2. Why adopt unique procedures for converting apartments to condos? 3. What permits are required for converting apartments to condos? Other services ► 4. What permit process do I follow if I apply to convert my apartment units to About Huntington Beach , condominiums today? 5. What modified permit processing is the city council considering for units Newsroom already converted without city approval? Calendar of Events 6. When will the city council deliberate about the modified permit requirements? 7. What can I do to inform the city council about my opinion? 8. What steps can I take to investigate the validity of my condominium unit? 9. Do I need all owners of the condominium project to agree to submit the applications? 10. Do I need to hire a consultant to process the CUP and TPM? 11. What permit fees can I expect? 12. How do I request an inspection from the building and safety department? 13. What minimum construction standards do I need to comply with? 14. Where can I view a videotape of the June 1, 2004 community meeting? WHEN DID THE CITY START REGULATING CONDOMINIUM CONVERSIONS? In 1984, the City Council adopted an ordinance code governing the conversion of rental housing to for sale units. Any existing rental housing may be converted to condominiums, community apartments, or stock cooperatives provided the dwelling units were constructed and used as rental housing for a minimum of 5 years prior to application and required permits are approved by the City. Such conversions are subject to the Huntington Beach Zoning and Subdivision Ordinance (ZSO)Chapter 235 and the California Government Code Sections 66410-66499.58 (Subdivision Map Act). WHY ADOPT UNIQUE PROCEDURES FOR CONVERTING APARTMENTS TO CONDOS? Strict standards for conversion projects were adopted because the City was concerned with the loss of rental units,which typically provide housing for lower income residents and those unable to purchase homes. A healthy city's economy and land use base combines and provides a myriad of housing types from rental to ownership projects.Assuring the availability of adequate housing for all social and economic sectors of the City's present and future population is an important goal of the City. In the late 1970's and early 1980's the City saw an increase in conversion projects in response to the real estate market. There are several community concerns,which the conversion standards were written to address. First is the loss of rental housing stock mentioned above. This is particularly important, as trends have been to build ownership housing over rental housing in the last two decades. In addition, vacancy rates within the City are very low, indicating a need for rental housing. Second, condominium conversions result in displacement of existing tenants. These tenants may find it difficult to secure http://www.surfcity-hb.org/announcements/condo_conversion.cfm 6/23/20( �Huntirigton Beach - Official City b site - Announcements Page 2 of equivalent housing, may be low-moderate income, single parents or elderly, and would be forced to pay moving expenses that were not anticipated. These concerns are particularly important because seniors and low-moderate income tenants are least able to compete in a tight rental market. Third, the condominium conversion standards were written to address physical inadequacies because buildings designed as apartments are not usually constructed on a par with buildings designed for ownership. In fact, older apartment buildings may have deferred maintenance on major items such as, roofing, painting,and slab or foundation repairs. WHAT PERMITS ARE REQUIRED FOR CONVERTING APARTMENTS TO CONDOS? The following permit processing does not apply to the special class of converted units as described in the Modified Permit Processing section below. This section describes permits that are required if a property owner were to request approval to convert existing apartments to condos today. City approval is required to comply with City Zoning Ordinance and State Subdivision Map Act requirements.Approval to convert an apartment to a condominium can be obtained by requesting a conditional use permit and tentative parcel map.Approval of a conditional use permit and tentative parcel map is discretionary by the City, meaning that the proposed condo conversion project can be denied if all the findings for approval cannot be made. Applications are available from the Planning and Zoning counter on the third floor of the Civic Center at 2000 Main Street, Huntington Beach, CA 92648. Applications were also included in the blue packet of materials distributed at the June 1, 2004 Community Meeting. WHAT PERMIT PROCESS DO I FOLLOW IF I APPLY TO CONVERT MY APARTMENT UNITS TO CONDOMINIUMS TODAY? The following permit processing does not apply to the special class of converted units as described in the Modified Permit Processing section below. This section describes permits that are required if a property owner were to request approval to convert existing apartments to condos today. In response to the three major community concerns outlined above, each condo conversion project must follow certain procedures while proceeding through the conversion process. For instance, advance notice to existing tenants as well as first right-of-refusal to purchase a unit must be offered. In addition, rents may not be increased within certain time frames of the project proposal, lifetime rents must be offered to senior citizens, and relocation assistance must be provided. Applicants must provide a physical elements report prepared by a licensed structural engineer, civil engineer, or architect detailing the structural condition, any evidence of soils problems, code violations, useful life, and any apparent deferred maintenance of all elements of the property. This means that the report must evaluate and report on the physical condition of foundations, electricity, plumbing, utilities,walls, ceilings,windows, frames, recreational facilities, sound transmissions of each building, mechanical equipment, parking facilities, and drainage facilities. The report should also describe the condition of refuse disposal facilities, swimming pools, saunas, fountains, stone and brickwork, fireplaces, and exterior lighting. A licensed mechanical contractor shall also provide a detailed report regarding the condition of and cost to repair or replace appliances and heating and cooling http://www.surfcity-hb.org/announcements/condo_conversion.cfm 6/23/20 ,Huntington Beach - Official City site - Announcements Page 3 of i e equipment. A termite and pest control specialist shall also describe any infestation or dry rot and the steps necessary to mitigate an infestation. A report on interior and exterior painting is required and a roofing contractor must report on the condition and remaining life of the roof. A statement that new paint or a new roof will be applied will take the place of the required reports. WHAT MODIFIED PERMIT PROCESSING IS THE CITY COUNCIL CONSIDERING FOR UNITS ALREADY CONVERTED WITHOUT CITY APPROVAL? It has come to the City of Huntington Beach's attention that some apartment units were converted and sold as condominium units without benefit of City approval. It appears that most conversions occurred on projects with between two and four units. The City is committed to assisting these residents with obtaining the correct permits for permitting any condo projects without proper City permits. To this end, City staff recommends that the zoning code requirements described above be modified for this special class of units. The recommended modifications apply only to 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 the effective date of the revised ordinance. In these cases, the following will be required: • Conditional Use Permit • Tentative Parcel Map • Covenants, Conditions and Restrictions (CC&R's) • Refurbishing and restoration for a high standard for appearance, quality, and safety • Building Inspection to verify that the minimum safety standards are addressed and to determine if there are any obvious health and safety code hazards • Compliance with current parking and landscaping requirements WHEN WILL THE CITY COUNCIL DELIBERATE ABOUT THE MODIFIED PERMIT REQUIREMENTS? The City Council will hold a public hearing on the proposed ordinance changes on July 6, 2004. The meeting will begin at 7:00 PM in the Council Chambers at the Huntington Beach Civic Center, 2000 Main Street, Huntington Beach, CA 92648. WHAT CAN I DO TO INFORM THE CITY COUNCIL ABOUT MY OPINION? There are two ways to ensure that your opinion is included in the public record on this issue. The first is to write a letter to the City Council prior to the July 6, 2004 public hearing. The second is to participate in the public hearing process by speaking at the July 6, 2004 public hearing meeting. The meeting will begin at 7:00 PM in the Huntington Beach Council Chambers. There are other opportunities to inform the City Council about your opinion prior to the hearing. The City Council can meet with you in small groups with no more than three council members at a time. Call Cathy Fikes, Council Administrative Assistant, at(714) 536-5553 to schedule an appointment. WHAT STEPS CAN I TAKE TO INVESTIGATE THE VALIDITY OF MY CONDOMINIUM UNIT? http://www.surfcity-hb.org/announcements/condo_conversion.cfm 6/23/200 Huntington Beach - Official City` site - Announcements Page 4 of c s Apartments that were converted to registered stock cooperatives or condominiums prior to January 1981 were not subject to approval of a conditional use permit or tentative parcel map by the City. City regulations required conditional use permits and tentative parcel maps for all apartments converted to registered stock cooperatives or condominiums subsequent to January 1, 1981. Specific standards regulating conversion projects were then adopted in 1984. These current code requirements are the subject of the code amendments scheduled for City Council review on July 6, 2004. You may research City records for conditional use permits and tentative parcel maps in the Planning Department on the third floor of the Civic Center. You may also submit a copy of your title report and a chain of title to the Planning Department. The Planning Department will research the date the units were recorded as registered stock cooperatives or condominiums and compare that date to the City's permit requirements in effect at the time. In some cases, it may be necessary to request documents that were recorded on the property but not included in a simple title search request. DO I NEED ALL OWNERS OF THE CONDOMINIUM PROJECT TO AGREE TO SUBMIT THE APPLICATIONS? Yes, the City requires authorization from all property owners prior to processing permit requests on any property in the City.All owners can sign the actual application or individual authorizations can be included on a separate sheet of paper. DO 1 NEED TO HIRE A CONSULTANT TO PROCESS THE CUP AND TPM? No, the City does not require consultants to process conditional use permits and tentative parcel maps. However, you may find it easier to hire someone to communicate with the City on your behalf. If you do not wish to hire a consultant, you may consider having all condo owners in your complex elect a representative owner to coordinate communication and permit processing with the City. It will be necessary to hire a civil engineer or licensed surveyor to prepare the documents for submittal of the Tentative Parcel Map.Also, a draftsman, designer, or architect will be necessary to prepare site plans and floor plans of the condo complex. WHAT PERMIT FEES CAN I EXPECT? City permit fees are as listed in the following chart.This list does not include any expenses you might incur hiring a licensed surveyor or engineer to prepare the map, a designer, architect or draftsman to prepare site plans and floor plans, or if you decide to hire a consultant to assist you with the application process. ISSUE *ASSOCIATED COST Tentative Parcel Map $3,994 Conditional Use Permit I$3,502 Variance(only if applicable) $2,402 Coastal Development Permit $2,g41 (only if applicable) Affordable Housing In-Lieu Fee Up to$20 000 estimated per unit-to be determined by nexus study underway http://www.surfcity-hb.org/announcements/condo_conversion.cfm 6/23/20( .Huntington Beach - Official City' site - Announcements Page 5 of e Building and Safety Inspection 1$59.04/hour Final Map Processing Planning Department: $1,073 Public Works: $1,744 HOW DO I REQUEST AN INSPECTION FROM THE BUILDING AND SAFETY DEPARTMENT? Call the Building and Safety Department at(714)536-5241 to schedule an inspection. Depending on the volume of inspection requests, an appointment will be scheduled within the following week. Inspections are scheduled for either the morning block between 8:00 AM - 12:00 Noon or the afternoon block between 1:00 PM -5:00 PM. The property owner or their representative must be available to grant access to the unit. WHAT MINIMUM CONSTRUCTION STANDARDS DO I NEED TO COMPLY WITH? a. 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. These requirements have been modified from our last draft and simply restate the construction standards that should already be part of your unit. If your building has an attic that is 3,000 square feet or less and was built prior to February 1, 1985, you comply with this item. b. Each unit shall have access to the electrical branch circuits that serve the unit. This item has been reworded from the last draft and has been a code requirement even in the 1960's so your unit should already comply. This is generally what is called a sub-panel that has the circuit breakers that control your unit. c. 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. This is already a fire code requirement for all existing residential units. Installation of new detectors is inexpensive. d. Ground Fault Circuit Interrupter(GFCI) protection shall be provided where required by the currently adopted electric code. This devise is typically called a GFI at most hardware stores. They are inexpensive and easy to install. WHERE CAN I VIEW A VIDEOTAPE OF THE JUNE 1,2004 COMMUNITY MEETING? Videotapes are available for viewing at the City Clerk's Office on the second floor of City Hall or at Huntington Central Library at 7777 Talbert Avenue. http://www.surfcity-hb.org/announcements/condo_conversion.cfin 6/23/20( Huntington Beach - Official City V ', site - Announcements Page 6 of t a home I elected officials I city departments I other services I about huntington beach site map I terms of use/privacy statement I contact us ©Copyright 2003 City of Huntington Beach.All rights reserved. http://www.surfcity-hb.org/announcements/condo_conversion.cfm 6/23/200 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 t conditional use permit approval by the Planning Commission pursuant to Chapter 241. Withi0he coastal zone, a coastal development permit shall also be required. Exception for apartments and stock cooperatives with two to four units on parcel that were sold as condominium units without approval of a conditional use permit and t tative parcel map prior to the effective date of this ordinance 81iloq: the provisions of Tit 25, Subdivisions, and only Sections 235.02, 235.04,235.06 B., 235.08 A. —C., and 235.16 erein shall apply. A conditional use permit subject to approval by the Zoning Administ for shall be required. In addition, an inspection by a City of Huntington Beach Building ' d Safety Inspector shall be required to verify compliance with the minimum construction andards of Section 235.08 A. and to determine if there are any obvious health and safety code 'olations. Conversion of lower or moderate-income rental housing, ,eveloped 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 untington Beach Zoning and Subdivision Ordinance is hereby amended to read as follow . 235.06 Required Reports and Inform ation In addition to the conditional use pmit coastal development permit(where applicable), and tentative map applications, the app shall submit the reports and/or information required by this section. The cost of all reports s 11 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 comp eted. All improvements cited in the reports,whether required or voluntary, shall be considere conditions of approval. A. Ph sical Ele nts Re Dort: A report on the physical elements of all structures and facilities sha be submitted, containing the following: 1. A eport by a California-licensed structural engineer, civil engineer or chitect, 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. ord/04zoning/chap 235 revised/7/14/04 2 D. Vacancy Rate Analysis: A citywide vacancy rate analysis for multiple family rental units for the past twelve months shall be submitted. E. Acceptance of Reports: The final form of the physical structur lements report, Conversion Plan, and other documents shall be approved by e Planning Commission. The reports in their acceptable form shall re ain on file with the Department for review by any interested person. SECTION 4. That Section 235.08 of the Huntington Bea Zoning and Subdivision Ordinance is hereby amended to read as follows: 235.08 Condominium Conversion Standards A. Minimum Construction Standards: The oject shall be brought into compliance with the minimum construction standa s as listed below unless the Building Official approves an alternate metho of construction. Prior to recordation of the final map or parcel map, applicabl uilding permits shall be obtained, constructed and receive final ins ction approval for all issues identified in this section and for any health and fety code violations. 1. For all structures b ' t prior to February 1, 1985, draft stops shall be installed in attics create horizontal areas that are 3,000 square feet or less. For all st tures built after February 1, 1985, draft stops shall be in attics above a in line with the walls separating individual units. 2. Each unit s all have access to the electrical branch circuits that serve the unit. 3. Smok detectors shall be installed and operating. All existing hard-wired units hall be in working order and the remaining detectors shall be loc ted per currently adopted code and may be battery or hard-wired o erated. 4. Ground Fault Circuit Interrupter(GFCI) protection shall be provided where required by the currently adopted electric code. B. m liance with Zoning Provisions: The project shall comply with the parking equirements 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 the effective date of this ordinance (date), 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. ord/04zoning/chap 235 revised/7/14/04 5 conditional use permit and tentative parcel map prior to the effective date of this ordinance (date), a reduction in;these development standards may be granted when an applicant agrees to pay an affordable housing in-lieu fee t off-set the loss of affordable rental housing stock. TIC fee shall be paid according to a resolution adopted by ity Council. C. Refurbishing and Restoration: All main buildings, str ctures, fences, patio enclosures, carports, accessory buildings, sidewal , driveways, landscaped areas, and additional elements as re uired by the Zoning Planning Commission (o Zoning Administrator for exempted units a defined in Section 235.04) shall be refurbished and restored s appropriate for a high standard of appearance, quality, and saf y. fee of$200 total unmts in the pFej et I- een 691d, the appliGant, within 30 days, shall Gonvey suGh fee for ea 1, the unsold units. SUGh funds shall be used ee GOMMunity, as well as 4- -4-4 geReF;;! welfare, publiG health, and aJsee+at+eP1_. €. D. Affordable Hous' : Where a project consists of 5 3 units or more, the applicant shall agr a 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 th affordable units affordable to low-income households for a period f sixty (60) years. If the units are to be made available for p rchase, the maximum sales price of units intended for low- or moderate-' come households shall not exceed 2.5 times the annual median inco a for such households as defined by the California Health and Safety ode, Section 50093. Resale controls shall be included as a deed rest ction. If the units are to be for rent, the maximum rent allowed shall keep the units within the low- or moderate-income housing stock. 1egisdrft/zoning04/Chp235-LD 7-04 7 ✓E Council/Agenc Meetinq Held: D 9//9/0 �i°�. od5.a F�R1Nrx.e &.cn Deferred/ ontlnued to: ❑ Approved ❑ Conditionally Approved ❑ Denied Q'6 lerk' Sign FT e — I Council Meeting Date: July 6, 2004 Departmen Number: PL04-10 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: PENELOPE CULBRE RAFT, City A m istrator PREPARED BY: JENNIFER MCGRA ity Attorney HOWARD ZELEFSKY, Director of Planning ROSS CRANMER, Director of Building and Safety SUBJECT: APPROVE ZONING TEXT AMENDMENT NO. 04-01 (CONDOMINIUM CONVERSIONS) p , No• 3(�S`1 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Transmitted for City Council review is Zoning Text Amendment No. 04-01,. a request by the City of Huntington Beach to amend Chapter 235, Condominium Conversions, of the Huntington Beach Zoning and Subdivision Ordinance. The purpose of the amendment is to update the original ordinance adopted in 1984 for today's conditions and to establish procedures for permitting units previously converted to condominiums without City approval. Due to the urgent nature of these ordinance amendments and at City Council's direction, the Planning Commission has not reviewed the recommended ordinance changes. Staff recommends the City Council approve the request as submitted (Recommended ,cation) and adopt the ordinance amending the Condominium Conversion requirements. � r Fundinq Source: Not applicable. z `' Recommended Action: STAFF RECOMMENDATION: Motion to: "Approve for introduction Ordinance No ' and Zoning Text Amendment No. 04-01 with findings for approval (ATTACHMENT NO. 1)." REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 Alternative Action(s): The City Council may make the following alternative motion(s): 1. "Deny Zoning Text Amendment No. 04-01 with findings." 2. "Continue Zoning Text Amendment No. 04-01 and direct staff accordingly." Analysis: A. PROJECT PROPOSAL: Applicant: City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648 Location: Citywide Zoning Text Amendment No. 04-01 is an amendment to the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) to update the condominium conversion process. The recommended amendments create exceptions for apartments and stock cooperatives with two to four units on a parcel that were sold as condominium units without City approval of a conditional use permit and tentative parcel map prior to the effective date of these proposed ordinance changes. Additionally, staff recommends amending the ordinance to clarify the conversion process and necessary permits and reports for future conversion projects of any size. B. BACKGROUND In 1984, the City Council adopted an ordinance code governing the conversion of rental housing to for-sale units. Any existing rental housing may be converted to condominiums, community apartments, or stock cooperatives provided the dwelling units were constructed and used as rental housing for a minimum of five years prior to application and required permits are approved by the City. Such conversions are subject to the Huntington Beach Zoning and Subdivision Ordinance (ZSO) Chapter 235 and the California Government Code Sections 66410 — 66499.58 (Subdivision Map Act). It has come to the City of Huntington Beach's attention that at least 26 buildings representing approximately 122 apartment units were converted and sold as condominium units without benefit of City approval. It appears that most conversions occurred on projects with between two and four units. The City is committed to assisting these residents with obtaining the correct permits for permitting any condo projects without proper City permits. To this end, City staff recommends modifications to the zoning code requirements for this special class of units. The recommended modifications apply only to 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 the effective date of this revised ordinance. PL04-10 Condo Conversions —2— 6/23/200410:04 AM REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 Recently, City Council directed staff to evaluate and prepare updates to the existing condominium conversion ordinance. C. STAFF ANALYSIS AND RECOMMENDATION: Strict standards for conversion projects were adopted in 1984 because the City was concerned with the loss of rental units, which typically provide housing for lower income residents and those unable to purchase homes. A healthy city's economy and land use base combines and provides a myriad of housing types from rental to ownership projects. Assuring the availability of adequate housing for all social and economic sectors of the City's present and future population is an important goal of the City. In addition, the City felt that units owned individually should be held to a higher standard. In the late 1970's and early 1980's the City saw an increase in conversion projects in response to the real estate market. There are several community concerns, which the conversion standards were written to address. First is the loss of rental housing stock mentioned above. This is particularly important, as trends have been to build ownership housing over rental housing in the last two decades. In addition, vacancy rates within the City are very low, indicating a need for rental housing. Second, condominium conversions result in displacement of existing tenants. These tenants may find it difficult to secure equivalent housing, may be low-moderate income, single parents or elderly, and would be forced to pay moving expenses that were not anticipated. These concerns are particularly important because seniors and low-moderate income tenants are least able to compete in a tight rental market. Third, the condominium conversion standards were written to address physical inadequacies because buildings designed as apartments in the past were not typically constructed on a par with buildings designed for ownership. In fact, older apartment buildings may have deferred maintenance on major items such as, roofing, painting, and slab or foundation repairs. Condominium Conversion requests currently require a conditional use permit and a tentative map to be approved through the public hearing process before the Zoning Administrator or Planning Commission based on the size of the complex. The current code regulations address compliance with both Planning and Building codes. Staff is recommending several amendments to the existing code requirements in order to streamline the process for units converted without approval by the city and also to update requirements for any conversions requested in the future. The following analysis addresses amendments to both Planning and Building issues. Planning Issues Currently, Chapter 235 of the HBZSO outlines a detailed and demanding process for requests to convert existing rental housing into ownership units. Each condo conversion project must follow certain procedures while proceeding through the conversion process. The process includes provisions for tenant notification, relocation assistance, first right-of- refusal for purchasing, lifetime tenancy for seniors, extra assistance for low-income or single PL04-10 Condo Conversions -3- 6/23/2004 10:04 AM REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 parents, a vacancy rate analysis, creation of contingency funds, and conversion plans including rental histories, appliance repair/replacement history, tenant demographic information, and projected homeowner's association budget. Additionally, projects must meet current parking and landscaping requirements of the Zoning Code. Staff recommends amendments to bring zoning related requirements up to date with current practices as discussed in Proposed Modifications below. Building and Safety Issues The current conversion code requires all properties to be brought up to current State and City Uniform Codes and National Electric Code. Since the adoption of the original ordinance in 1984, construction codes have been modified to be dramatically more restrictive. Therefore, the current conversion ordinance requires modifications that would require costly physical improvements of the buildings. For other uses not covered by this ordinance the upgrade of an existing structure to existing code is not required as long as the use is not significantly changed. In this case the units remain residential before and after the conversion, thus, staff is recommending ordinance amendments that will simply assure minimum safety standards are addressed. Current zoning code requires applicants to provide a physical elements report prepared by a licensed structural engineer, civil engineer, or architect detailing the structural condition, any evidence of soils problems, code violations, useful life, and any apparent deferred maintenance of all elements of the property. This means that the report must evaluate and report on the physical condition of foundations, electricity, plumbing, utilities, walls, ceilings, windows, frames, recreational facilities, sound transmissions of each building, mechanical equipment, parking facilities, and drainage facilities. A licensed mechanical contractor shall also provide a detailed report regarding the condition of and cost to repair or replace appliances and heating and cooling equipment. A termite and pest control specialist shall also describe any infestation or dry rot and the steps necessary to mitigate an infestation. A report on interior and exterior painting is required and a roofing contractor must report on the condition and remaining life of the roof. Staff recommends amendments to bring Building and Safety related requirements up to date with current practices as discussed in Proposed Modifications below. Proposed Modifications It appears that most conversions occurred on projects with between two and four units. City staff recommends that the Zoning and Building Code requirements described above be modified for this special class of units. The recommended modifications apply only to 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 the effective date of this revised ordinance. In these cases, the following will be required: PL04-10 Condo Conversions -4- 6/23/200410:04 AM REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 1. Conditional Use Permit 2. Tentative Parcel Map 3. Covenants, Conditions and Restrictions (CC&R's) 4. Refurbishing and restoration for a high standard for appearance, quality, and safety 5. Building Inspection to verify that the minimum safety standards are addressed and to determine if there are any obvious health and safety code hazards 6. Compliance with current parking and landscaping requirements This modified list of permit requirements is dramatically less intensive and involved than the procedures and reports required for conversion projects in the current code. Staff recommends this streamlined process because in the case of the special class of units converted without City approval the tenants have already been displaced, the affordable rental units have already been lost, and the property owners have purchased the units with appliances and property conditions as they existed on the day of sale. Therefore, the extra procedures designed to protect existing tenants and future owners are not necessary. However, it is still necessary to hold a public hearing to permit converted units. As part of the public hearing process, the reviewing body will retain the ability to require upgrades to substandard properties as deemed necessary to establish the quality, appearance, and safety standards dictated by property maintenance code regulations. These measures will ensure neighborhood compatibility and lengthen the life of the project. As noted above, each property must also demonstrate compliance with current parking and landscaping requirements of the HBZSO. Many older apartment complexes constructed from the 1960's through the early 1990's may find it difficult to meet current parking requirements, as the space for parking stalls and vehicular maneuvering is not available. One alternative to address deviations in parking and landscaping is to request approval of a variance. Variances, however, may only be approved if there is a land related hardship or special circumstances, such as size, shape, topography, location or surroundings, which renders compliance with the zoning code infeasible. Variances may not be a grant of special privilege, may not be materially detrimental to the general welfare or injurious to properties in the same zone classification, and may not adversely affect the General Plan. Furthermore, variances may only be approved if it is necessary to preserve the enjoyment of one or more substantial property rights. The Zoning Administrator, as the approving body for this special class of units, must positively affirm all of these findings for approval prior to rendering a decision on a variance request. It will likely be difficult to approve a variance in these cases because there may not be a land related hardship associated with the request. For instance, most triplexes and fourplexes were constructed on property that is the same size and shape as all other surrounding multi-family zoned properties. If the properties are regular in shape and size, there are no grounds to allow deviations from zoning code development standards. Additionally, approval of a variance for projects that were completed without proper City approval may be construed as granting a special privilege that is not afforded to other projects in the same zoning district. It should be noted, however, that any property owner may apply for a variance if they choose to do so, the request will be evaluated on its own merits, and deliberated in a public hearing forum before the Zoning Administrator. PL04-10 Condo Conversions -5- 6/23/2004 10:04 AM REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 Another option to the variance would be to offset deficient parking or landscaping through an affordable housing in-lieu fee. Staff is currently conducting a nexus study to determine an appropriate fee amount. The nexus study will analyze the average cost of financing the gap between a market rate rental unit and an affordable unit with deed restrictions ensuring affordability for a low-income family for a minimum 60-year term. Once the average cost is determined, staff will then be able to calculate an in-lieu fee amount dependent upon the square footage of each unit. Property owners would then be able to choose to apply for a variance requesting relief from the parking and landscaping requirements or would agree to pay an in-lieu fee to be excused from providing the improvements. Staff is recommending that the affordable housing in-lieu fee option apply only to the special class of units converted without City approval. All other future conversion projects would be required to provide current parking and landscaping requirements as well as provide affordable housing units. All property owners are encouraged to contact their title insurance companies to determine coverage of permit fees, if any. The in-lieu fee will be presented to City Council at a later date and staff will recommend adoption of a resolution establishing the fee amount. Staff is also recommending updates to the Condominium Conversion ordinance to require provision of affordable housing consistent with the citywide affordable housing policy. Provision of actual affordable housing units will apply only to future requests for conversions. Typical Fees for Special Class of Units The proposed modifications for the special class of previously converted units will be subject to entitlement and processing fees as follows: ISSUE *ASSOCIATED COST Tentative Parcel Map $3,994 Conditional Use Permit $3,502 Variance (only if applicable) $2,402 Coastal Development Permit (only if applicable) $2,841 Affordable Housing In-Lieu Fee Up to $20,000 estimated per unit — to be determined by nexus study underway Building and Safety Inspection $59.04/hour Final Map Processing Planning Department: $1,073 Public Works: $1,744 PL04-10 Condo Conversions -6- 61231200410:04 AM REQUEST FOR ACTION MEETING DATE: July 6, 2004 DEPARTMENT ID NUMBER: PL04-10 * Estimated costs represent fees established by City Council resolution for processing permits. Fees do not include any additional costs, which may be incurred, to prepare tentative parcel maps, site plans, floor plans, or mailing labels. SUMMARY: Zoning Text Amendment No. 04-01 modifies the Huntington Beach Zoning and Subdivision Ordinance for the purpose of updating condominium conversion requirements for consistency with today's conditions and by streamlining the entitlement process for small condo projects converted without approval by the city. The recommended text amendment provides relief to future applicants applying for condominium conversions and to residents attempting to legalize the ownership status of their units. The recommended ordinance changes continue to ensure protection of existing renters, address loss of rental housing, require provision of affordable housing or an affordable housing in-lieu fee in the event current code requirements cannot be met, and provide for minimum health and safety standards. Staff recommends that Zoning Text Amendment No. 04-01 be approved for the following reasons: ➢ Decreases processing time for applicants ➢ Reduces application costs for property owners ➢ Continues to provide for quality development ➢ Ensures protection of existing renters and future property owners ➢ Provides for affordable housing or payment of an affordable housing in-lieu fee in cases where current parking or landscaping codes cannot be met ➢ Ensures compliance with reasonable health and safety standards Environmental Status: The proposed project is categorically exempt pursuant to Class 20, City Council Resolution No. 4501, which supplements the California Environmental Quality Act. Attachment(s): NumberCity Clerk's Page Description 1. Findings for Approval 2. Ordinance No. ( S Including Legislative Draft 3. 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Box 735 I6Tp�, ` San ( : s 9G; ,n MOLN542 796023 IN 46 06/28/04 RE TO SENDER V�5 �N'o EO NO FURMOLRE TO FORWARD ,y ILL.P`\ RETURN TO SENDER LEGAL NOTICE - PU�LIC.- ntington Beach �\ the City Clerk Box 190 r. 3each, CA 92648 V O Michael Mc Donnell b 2402 Delaware St Apt 108 Huntington Beach CA 92648-5900 NGTpy rr- .LEG�1� NOTICE - �.U .,� I , !''`�'t"� '� '�a 11�1{{i;�tl{{1i„I„il„1,iitti:{illl{i+:tl{,{1,1{,ilt{itit, l .mtington Beach f the City Clerk )• Box 190 Beach,CA 92648PA 0 Michael Lyons 214 20th St Apt D 3 N6 Huntington Beach CA 92648-3941 Tpr RrTU'R'1 LEGAL NOTICE - PUBLIC �. 1� G. `^ - +{ j - {j[' -- --- - - - i jj Id i=L%��s-. jw! !—Hls +? IIllf!llii,lii:il{lltil11ll:{i:l,�II.11:!{I{!'.1!{!{Ijtlt!!I:II