HomeMy WebLinkAboutORD 3295' e ORIGINAl
ORDINANCE NO. _lf95 _
ORDfNJ\NCE OF 'fHE COUNCtr. OF 'niE CI'rY CW PALO ALTO
AMENDING CHAPTER 21.40 0~ THE PALO ALTO MUNICIPAL
CODE 1\l::G/\RD I NG CONVERSIONS 'rO CONDOM IN I {)1'-18 AND
OT!!EH CO~·H1liNITY HOUSING AND CHAPTER 16.38 Or' 'J'HE
PALO A L'l'O MllN I C I PAL CODE REGARDING C fo~R'r H' I CA'l'ES
OF USE AND OCCUPANCY FOR COMMUNITY HOUSING
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1, Chapter 21.40 of the Palo Alto ~~unicipal Code is here
by <1me nded tc; -!:.'" ead as follows:
Chapter 21.40
Conversions of Rental Housing to
Condolliniulls and Other Community Housing Projects
Secttc~ns:
21.40.010 Purposes.
21.40.020 Definitions.
2 1 • ·1 n ~ ~) 3 o s c c) tJ t:.) •
21,40 .. 0~0 Dctcr.-ini nati~Jn of vacancy rat.f:~ and sur11lus.
? 1. -iU. U c)o ;·z:wn ;_1ppl icat ion for conver:~;ion may be filed.
21. 4C. OH) Apuro'Jdl of ct rna.p for conver·sic.n.
2 i. 4G .lPO Cont•:nts of an appl ic<'ttion.
2 1 • ·f 0 • 0 B 0 T i me 1 i !TI i t s •
21.~0.C19D Sc,ver·abiJ ity.
2L40.0l0 Purposes. The purposes of thi.s chapter are:
( 1) 'J\) S\.~ek <'\ rea.sonabie balance of r:ental and ovmer-ship housing
in the City in a variety of individual choices of tenur.:e, typep price,
<:1nd location of housinq.
(2) To protect the supply of multi-family rental housing.
(3) To protect the supply of rental housing for low and moderate
income persons and families.
(4) To reduce and avoid displacement of tenants, particularly
senior citizens and families with school age children, who may be re
quired to move from the community due to a shortage of replacement
rent.::l housing.
(5) In the event of a conversion, to assure that purchasers have
adequate information on the phyEdcal conditions of the str-ucture and
that the structure meets adequate health and safety standards.
(6) In the event of a conversion~ to give priority for purchase
of units to existinq te~ants.
(7) To meet the goals of the Comprehensive Plan, including the
below-market-rate programs.
21.40.020 Definitions. For the purposes of this chapter, the
following definitions are adopted:
(1) "Community housing" and "community housing project" in
clude the following:
(a) "Condominium": an estate in real property consisting
of an undivided interest in common in a portion of a parcel of real
property together with a separate interest in space in a residential
building on such real property.
(h) "Community ap<l.rtment": a projt:ct in \~hich an undivided
intcre>~.>t in the l.:ind is coupled with the 'dqht of exclusive occupancy
of any apartment thereon.
(c) "Stock coopE'r,ltive": a corporation which is formed or
availed of primarily for the purpose of holrling title, either in fee
·.:;imple or for <1 term of years, to improved real property, if all or
subst~ntially all of the shareholders of such corporation receive a
riqht of exclusive occupancy in a portion of the real property, title
to which is held by the corporation, which right of occupancy is trans
f,:rable only conc<..nTently with the transfer of the shat·e or shares of
stock or me-mbership certificate in the corporation held by the person
hav i nq such r: i gh t of occ~:pancy. The term "s tock-coope r:a t i ve 11 does not
include a limited equ:ity housinq cooperative as defjned in California
Business and Professions Code Section 11003.4.
{d)
inq either or.
"Planned development": a real estate development hav
both of the following features:
(il Any contigunus or noncontiguous lots, parcels or
areas owned in common by the own~rs of the separately owned lots, par
cels or areas consisting of areas or facilities the beneficial use and
enjoyment of which is ~eserved to some or all of the owners of sepa
ratoly owned lots, parc2ls or dtcas.
(lll Any paw~r exists to enforce any obliqation in con
nectio:• 1vi.tb ;-r,,;rob•.:rship in the: owtwcs association, ot· any obligation
per·taini.ng to the hen•.?ficial use dnd t:>njoyment of any por:tion of 1 or
any interest i11, either the separately or commonly owned lots, parcels
or o.n?a:'> by :w_:-,,n~;. of .:1 levy or asses:3ment which may become a lien upon
t h c s e p a r :n c 1 y () ··• ;; e cl l o t ~; 1 ;) a r c co' .i s ! o :: ~:\r e .:~ s o f d e f z. u l t i n 9 own e r s or
membc~r-:3, which sa.Ld lie;: rnay be fot·(::·closed in any manner prc.vided by
L1""' fnr the fon:-'closiH't? ot mort.qaqes or-deeds of trust, w.i.th or without
a puwe t· of ::.'a 1 e .
(e) Such other forms of ownership in which a parcel or par
cels of real property, including all structures thereon, are wholly or:
pa~tially ~cnted or leased for resi~ential purposes and are proposed to
be dlvide;S, a~:; land or air spcH~e~ into three or. more parcels, units Ol:'
rights of exclusive occupancy.
(2) MConver:sion" means a change, including a proposed change, in
the type of ownership of a parcel or parcels of land, together with the
existing str.·uctures, from a rental housing complex to a community hous
ing project, regardless of whether substantial improvempnts have been
made to such structures.
(3) MORE reportM means the final s~bdivision public report is
sued by the Ca~ifornia Department of Real Estate pursuant to Section
11018.2 of the California Business and Professions Code.
(4) RRental housing complexM means a structure or structures con
taining at least three rental units on the same parcel or adjoining
parcels of prope~ty.
(5) ~Rental unitN means an element of a rental housing complex
designed to be rented to one family independently.
(6) NTenant~ means a person who enters into a written or oral
lease or rental aqr.eement with the owner:, or owner's agent, of a rental
housing complex. Tenant does not include a subtenant or sublessee.
(7) "Unit~ means the element of a community housing project which
is to be exclusively owned or occupied individually, and not in common
with the owners of other elements of the project.
(8) "Vacancy deficiency" means the number of vacant rental units
needed to raise the vacancy rate to three percent.
-2-
(9) "Vacancy rate" means the numl.H'r of rPnta1 units beinq of
fered for rent or lease in the City of Palo Alto, shown as a percent
age of the total numbe~ of r~ntal units hoth being offered and actu
ally under a rental or lease agreement.
( 1 0}
fered for
"Vacancy surplus" means the number of rental units beinq of
rent or .lease in excess of the thr·ee percent vacancy rate.
21.40.030 Scope. All conversions involving a change in the
type of ownership of three or more rental units are subject to the pro
visions of this chanter. Nothing in this chapter shall be interpreted
to exempt any conversion from the operation of any other chapter under
this Title or from the requirements of any other statute, ordinance, or
regulation.
21.40.040 Determination of v~cancy rate and surplus. In
April and November of each year, the Director of Planning and Community
Environment shall determine from the City utility meter records the
vacancy rate and the vacancy surplus, if any, within the city limits.
New market priced rental units available to the general public, for
which a certificate of use and occupancy has been issued since the last
vacancy survey 1 shall be added on a unit-tor-unit basis either to re
duce the vacancy deficiency or to increase the vacancy surplus.
21.40.050 When an a.pp.licat.ion for conversion may be filed.
( l) No appl i CeiL ir:>n t•.)r c•.mstdt.>rdt ion of a tentative or prelim-
inary parcel map for ,) ;:;ubclivision to be crcat~C'd from a conversion may
be filed with the City unless there: is a va.ca.ncy sut·plus as of the most
r: e c c n t d e t e nn i n a t i o n p u r s u a n t t •J t h 1 ~~ chap t e r: •
(a) lvhen there is cl vac,>ncy f;tnplu~; <IS of the most recent
detet·minat.i .. on pursuant to this chapt01·, an application for considera
tion of a tentative or preliminary parcel map for a subdlvision to be
created from a conversion may he filed with the Director of Planning
and Community Environment if the number of lots, units or rights of
exclusive occupancy in such pro~osed conversion does not exceed the
vacancy surplus by mon; than torty perc<c:~nt,
(2) An application for consideration of a tentative or
preliminary parcel map for a conversion may be filed, regardless of
whether a vacancy surplus exists, if both of the following conditions
are met~
(a) One below-market-rate rental unit must be provided for
every two non-below-market-rate units to be converted.
(i) The below-market-rate unit(s) must be of compar
able size and condition (prior to any rehabilitation done for pur
poses of conversion) to the non-below-market-rate units to be con
verted.
(ii) For the purposes of this section, a below-market
rate rental unit is a unit provided within the City for permanent low
and moderate income rental housing in accordance with either the City's
Below-Market-Rate Program, the City's Rental Housing Acquisition
Program, or such similar program expressly approved by the City Council
as being in accord with the City's Comprehensive Plan's goals and
objectives for low and moderate rental income, and which the City, or
its designee~ is w i 11 i ng and able to accept.. 'I'he provision of low and
moderate income housing in accordance with this subsection shall
satisfy the City•s below-market-rate requirement for subdivisions set
forth in Housing Program 17 of the Comprehensive Plan, and as
thereafter may be am9nded; and
(b) The tenants of at least two-thirds of the rental units
in the rental housing complex consent to convert the rental housing
complex to a corrunu nit y hous .i. nq project in accordance with the follow
ing provisions~
-3-
( i ) E n c h r e n L\l u n i t ( i 11 c l u d i n q a n y u n i t s s u b 1 e c t t: o
the tentative or preliminary parcel map whicl: an~ to be provided tn
the City as below-mari<t.•t-rate units pur·suant to Section 21.40.0?0{2)
(a) above) is entitlerl to one consent ,"lnd such cnn~;pnt mu~;t be signed
und~:r penalty of perjury by <111 tenants of tlw i"(:'ntal unit.
{ii) The following units shall not ho eligible to sign
consent forms:
(A) A rental unit in which the tenants do not all
agree to consent to the conver::-don or do not all siqn the consent
form.
(B) A rental unit tn which one or more of the
tenants has not r-esided in the rent.::ll housing complex for at least one
year before siqning the consent fo~m.
(C) A rental unit occupied by a tenant employed by
or related to the owner or managet· of the rental houf.:;inq complex or to
the applicant for the conversion.
( D ) t\ r e n t a 1 u n i t ~~· h i c h i <> ·v a c a n t o n t h ~; d a t e t h e
consent forms are sent to tenants or wl1ich is vac3ted between that date
~ n d t h e 1 as t d a t 2' t o l' r e t u r n i n g s i q n e d c c n ~,_.,. :1 t f o n;i s r. c' t h c• a. p p 1 i c a n t
for conversion,
(iii) 'The folloHin<-! cunst::li_ fqr:n 6h.'1.l1. be u::;crl by the
applicant for conv(~rsion in c:dcuLltiil(l the~ numbt~r c)[ con~;enting
unit:;;:
CONSENT FOR14 FOR PROPOSi·~D CCNIJERS ION TC CU>l~·\U~!IT \." HOUS r:--:G [Specify
Type J:
THIS CONSC~T IS IRREVOCABLE
ADDRESS~
The units in th~:: rental housinq complex :1t th~~ above nrldress may be
converted to [specify type of community huusi.nql if the tenants of at
.least t•.>Jo·-thirds of the units in the n~ntaJ hl)Using cornp.lex '-·onsent to
the conversion. The applicant for conversion is (name] [addcess),
DECLARA.'l'l ONS
I and each of the signators below represent all of the tenants in
possession of unit . I am not employed by or ~elated to the
owner or manager oftFierental housing complex or. to the applicant for
conversion. I irrevocably consent to the conversion. I declare ur1der
penalty of perjury that the representations m~de herein are true and
correct.
---rpr 1nt name)
fen'gth of confTnuous.tenancy in
rental housing complex
leilgth of ccmtTn'liOus.Tenancy 1n
rental housing complex
(prlnt name-r·------~
T.engthofcont i nuous"-tenancy rn
rental housing complex
-4-
-·-----.,-------·----Slgnature
----·~date---------
sign at u re---------·-
..__i:Tafe·-
--.--------··-....-_,.·-·-----------Slgnature
----dat~·--------·-
(iv) 'Phl' City must he notif'H'd un t·)w d.1\1' cnn~:pnt fiJt·m:;
arc Cir!->t qiven to tcnanU>, and tht~ con!;t,~nt: for;ns mu:-;t !)(' ~>iqncd nn
later than 90 days from tht~ date the conncnt for·mg .n·c fir;;t qiven to
the tenants.
( v ) Not i c e t o pro spec t i v c t f' n a n L:;. N c' r· e n ted u n i t 1 n a
rental housing complex shall be leased or rented to any flPrson dfter
the consent forms are first given to tenants unl\~ss ~>Elid person has
been notified of the proposed conversion immediately prior to the
acceptance of any rent or deposit from the prospective tenant in the
following written fo~m:
"NOTICE 'fO PROSPECTIVE TENt\NT
'rl'lis rental housing complex is in thf.:' process of obtaining thf• con
sent of its tenants to convert the complex to a co;r,munity housinq
project. IJ: you become a tenant 1 if two-thirds of the rcnta l units
consent to conversion and if the conversion application is approved
by the Ci.ty Council, the unit you are considering leasjn~-_l or renting
will be offered to you for purchase; if you do not desin· to purchase
the unit, you will be Jffered an extended leaSl'. 1\s 3 nt~'"" tc'nant, you
will be ineligible to sign a consent form."
21.40.060 Approval of a map for conversion. i\ t·:·ntati\·c ;n.--.p,
p:celiminary po.r:ceJ. map, final map or pat·cel m~1l) Ln· .-, ::.,ihli\·~:c;t'.'n to b,.'
created from a conversion shall net be appl·u\·ccl nt· rcc<":~r:1c:1(kd for .:tp
proval un1l'::S~3 such map is consistent \>lith ttw J!Llrpo:;c:; a:1d !Tq•_;irc·r:<..:.'nt~;
of state lav1, the Palo Alto Comprehensive Plan, this ti.tlc, thi~; ch,3p
ter and unless aJ.l of the followinq condition;:; are or: \·,'i l1 be rnQt:
( 1) rl,enant protections.
(a) T\pplicatiun timely. Jf the appli.cant f:1t· cunven:;ic'n
procures t e nan t con sent s pur sua n t to sub s r:~ c t i on 2 1 . 4 0 . 0 S 0 ( 2 ) ( b ) a bo v 0 1
the tentative or. pl:elirninary parcel map for conversion must !':le !:cceived
by the City within 60 days of the la~:;t do.tl' on 'n'·hich t11c ~,;iqned consent
forms may be returned to the applicant for convec:.;ion.
(b) Notice to tenants in accor-dance <n'i th Gov(•rnment \.~i)de
Sections 66452.9 and 66427.1. The applicant for conveYsion shall give
notice in the following form to each tena~t of the rental housing com
plex at least 60 days pri.or. to the filing of the tentative or prelimi
nary parcel map:
~To the occupants of
(address]
The owner(s) of this building, at plans to file an
application with the City of Palo Alto to conver~this building to a
[specify community housing project]. You shall be given notice of each
hearing for which notice is required pursuant to Sections 66451.3 and
66452.5 of the Government Code, and you have the right to appear and
the right to be heard at any such hearing.
(date) ~~--~----~----~--(Slgnature of owner)
Attached to this notice must be an explanation of all tenant protec
tions required by this Section 21.40.060{1).
(c) Right of first refusal. Each of the tenants of the pro
posed community housing project has been or will be given notice of an
exclusive L"iqht to contract for· the pur.chase of their respective rental
units upon the same terms and conditions that such units will be ini
tially offered to the general public or terms more favorahle to the
-5-
. '
tenant. 8ach of the tenants who was a tenilnt on tht' d~it(~ of the com
pleted conversion application shall be qiven such a riqht to purchase
upon the terms and conditions, if any, quoted to the tenants ~nd set
forth in the subdivision application. Such rights to purchase shall
run for a period of not less than 90 days from the date of issuance of
the ORE r-eport, unless the tenant gives prior written notice of his or
her intention not to exercise the ~ight.
(d) Extension of leases. Tenants in the proposed
community housing project on the date of recordatiorl of the final map
for said project have been provided assurances that they will have
the opportunity to remain in their respective rental u11its after
conversion as tenants under extended leases. Such extended leases
shall be subject to the f~llowing provisions:
(i) Any tenant who has reached or will reach the aoe of
sixty years at the end of the calendar year in which that tenant's unit
is offered for sale shall be offered a lifetime lease to his or her
rental unit.
(ii) Any tenant whc does not qualify for a lifetinH.:
lease pursuant to subsection (d) (i) above shall be ofren:-cl a ten )'ear
lease to his or her rental unit.
(iii) Any lease(s) offered pun;uant tn :;<~b~>c:ctioiiS
(1)(d}(i) or (ii) above must:
(A) Be circulated to all tenant::; at lei.J.st 60 days
before the consent forms are requ i :red to be returned to the appl i ~~0.nt
for-conversion, if the applicant for conversion procun~s tc~nant con
sents pursuant to subsection 21 .40.050(2)(b) above.
(B) Restrict the rent on t~<?.ch unit. to the monthly
rent charged two years prior to the date the conversion applici'\t.ion is
r·eceived by th(~ City vlith increases in the monthly rent f.oc each (;'fl~>u
ing yeat· after such date not to exceed seventy-five per·cent (75%\ of
the preceding yea.r•s increase in the Consum(~:C Prict? Index fen.· tl;;_~ ~;.:w
Francisco Bay Area for All Urban Consumers (all items), as published by
t.he Bureau of Labor Statisticst Unlt.~d States Department of Labor or
nny other standard recognized cost of living index which is published
by the United St.ates Government in lieu of the Index.
(C) Be subject. to any "just cause" eviction on::li-··
nance adopted by the City.
(D) Not be subordinated to the CC&R 1 s adopted by
the community housing project with regard to tenants' rights and ten
ants' financial obligations or other liabilities.
(E) Be recorded by the applicant for conversion in
the Santa Clara County Recorder's Office.
(iv) The applicant for conversion, upon the request of
the tenants of at least one-third of all the rental units, must pay the
standard hourly fees for an attorney selected by those tenants to rep
resent thew. in negotiating the terms of the lease(s) offered pursuant
to subsection (1)(d) (i) and/or (ii) abovev provided that such expenses
may not exceed the fees for more than 40 hours.
(v) The City's Rental Housing Mediation Task Force
shall be available to mediate any disputes arising from any lease(s)
offered pu~suant to subsections (l}(d) (i) or (ii) above.
{vi) In the event that a tenant or tenants in a unit
held by the City or its designee as below market rate rental housing
pursuant to Section 21.40.050(2) is eligible to receive any available
rental housing assistance payments~ such tendnt or tenants may choose
to enter into a lease providing for such rental housinq assistance
payments in lieu of the extended lease required by this section.
~6-
..
(e) Termination of tenancy hy develori'T. Ench of the t.endnts
of tht:~ proposed commu n .i ty hous i nq pro :l ect who docs not choose to
purchase his or her respective rente! unit or does nc>t ch~Jsc to enter
into an extended lease pursuant to subsection 21.40.060( l)(dl 0bove
must l1ave been given 180 days written notice of intention to convert
prior to termination of tenancy due to the conversion or proposed
conversion. The provisions of this subsection shall not deter or
abridge the rights or obligations of the part1es in performance of
their covenants, including but not limited to the provision of
servicesf payment df rent or the obligations imposed by Sections 1941,
1941.1 and 1941.2 of the Civil Code.
(f) Termination of tenancy by tenant. The applicant for
conversion shall permit a tenant to terminate any lease or rental
agreement without any penalty whatsoever after notice has been given
of the intention to convert the tenant's rental unit to a community
housing project in accordance with Section 21.40.060(1) (b) above, if
such tenant notifie~ the applicant for conversion in writing thirty
days in advance of such termination. Such right to terminate shall
expire if the application for conversion is deni.ed.
(q) Notice to prospective tenants in accordance with Gov
ernment Code Section 66452.8.
Commencing on a date not less than 60 days prim: to the filinq l)f
a tentat:ive or preliminary parcel map, the applicant for conversion or
hi.s or her. agent shall give notice of such filing to each pet:son apply
ing after such date for rental of a unit of the subject property imme
diately prior to the acceptance of any rent or deposit from the pro
spective tenant..
The~ notice shall be as fol.lows;
'1To the prospective or.:cupant{s) of
The owner·(s) of this building~ at (address), has filed or: plans to
file :m application with the City of Palo Alto to convert this building
to a [specify community housing project]. No units may be sold in this
building unless the conversion is approved by the City of Palo Alto and
until after a public report is issued by the Department of Real Estate.
If you become a tenant of this building, you shall be given notice of
each hearing for which notice is required pursuant to Sections 66451.3
and 66452.5 of the Government Code, and you have the right to appear
and the right to be heard at any such hearing. In addition, if you
become a tenant, if two-thirds of the rental units have consented to
conversion and if the conversion application is approved by the City
Council~ the unit you rent will be offered to you for purchase; if you
do not desire to purchase the unit, you will be offered an extended
lease in accordance with Chapter 21.40 of the Palo Alto Municipal
Code.
·----~----··---
I have received this notice on
(h) Remodeling. Repairs and/or remodeling proposed to be
made in connection with the conversion shall not be performed without
the tenant's consent during the 90 day period from the date of issuance
of the DRE report. If repairs and/or remodeling of the unit require
the tenant's temporary relocation, the applicant for conversion must
-7-
'. •
assume all moving costs and rent for comparable replacement housinq for
the tenant who is iiisp.laced on a temporary basis.
(i) Engineer's report. In order to assist the tenants in
their decisions whether to purchase their units upon conversion, the
applicant for conversion must send a copy of the property report and
structural pest report required pursuant to subsections 21.40.060
( 2) (b) ( i) anc1 {i. i) to all tenants on or before the date of issuance of
the DRE report.
(j) Notice of compliance with state law. The applicant for
conversJ.on must provide written evidence of compliance with Government
Code Section 66427.1.
(2) Buyer protections.
(a) Age discrimination. No community housing project
shall prohibit sales of units to persons with children llnless it is
determined by the Director of Planninq and Comrnunity Environment upon
review of a preliminary parcel map or the City CoLtncil upon review of
a tentative map that from the time of its development, the project
was designed and built for the exclusive occupancy of persons 60
years of age or older.
(b) Ce~tificate of use and occupancy. Prior to the sale or
occupancy of any tmits which have been conve:cted to community housing,
a certificate of use ,'ind OCCLlpancy for community housing shaLl be
obtained from the Chief Buildjng Official pu~suant to Chapter 16.38 and
subject to the following additional requirements:
(i) The applicant for conversion shall submit a prop
erty report describing the condition and useful life of the roof, foun
dations, mechanical, electrical, plumbing and structural elements of
all existing buildings and structures. Such report shall be prepared
by a registered civil or structural engineer, or a licensed qeneral
building contractor or general engineering contractor.
(ii) The applicant for· convers.\on shall submit a struc
tural pest report. Such report shall be prepared by a licensed struc
tural pest contcol operator pursuant to Section 8516 of the Business
and Professions Code, relating to written reports on the absence or
presence of wood-dest~oying pests or. organisms.
(iii) The consumption of gas and electricity within each
dwelling unit shall be separately metered so that the unit owner can be
separately billed for each utility. A water shut-off valve shall be
provided for each unit~ The requirements of this subsection may be
waived where the Chief Building Official finds that such would not be
practicaL
(iv) All permanent mechanical equipment, including do
mestic appliances, which are determined by the Chief Building Official
to be a source or potential source of vibration or noise, shall be
shock-mounted, isolated from the floor and ceiling, or otherwise in
stalled in a manner approved by the Chief Building Official to lessen
the transmission of vibration and noise.
(v) The wall and floor/ceiling assemblies between
dwelling units shall conform to the sound performance criteria of
Title 25 of the California Administrative Code.
(vi) Accessible attics shall be insulated to meet the
energy conservation requirements of Title 24 of the California Adminis
trative Code.
(vii) Electrical control panels shall be provided in ac
cessible locations controll.ing the entire service to each unit.
-a-
.. •
(viii) The wall and f.loot:;'ceilinq ,:tfH1t.•mllll.en betw,•en
dwel1.inq units shall meet one hour fite n)::;i.•:;tiv<-: coru-;truclion dFl
spec i f i c d i. n t he l a t e s t e d i t i on (,) E t h e U n i form !ht i l rl i n q Cod c ,
(ix) Smoke detectors approved by the fire prevention
division shall be provided in each unit.
(x) Any multiple unit builctinq three stories or more in
height or containing more than fifteen dwelling units shall have an
approved fire alarm system as specified in the Fire Prevention Code.
(3) Below-market-rate requirement. In conversions of ten or more
rental units, not less than ten percent (10%) of the units in the com
munity housing project shall be provided for sale to the City for per
manent low and moderate income housing in accordance with either the
City's Below-Market-~ate Program, the City's Rental Housing Acquisition
Program, or such similar program expressly approved by the City Council
as being i.n accord with the City's Comprehensive Plan's goals and ob
jectives for low and moderate income housing. The provision of such
lo1-1 and moderate income housing in accordance with t:his subsection
.shall be in compliance with the City's below-market-t·ate requirement.
for subdivisions set forth in Housing Program 17 of the Comprehensive
Plan, and as ther.eafte1: may be amended. This section shall be con
sidered fulfilled if the applicant for a conversion meets the condition
set forth in section 21.40.050(2).
21.40.070. Contents of application.
requirements of this title~ an application
or preliminary parcel map for a conversion
fol.lowing information:
In addition to the other
for approval of a tentative
shall be accompanied by the
( 1) Age a.nd length of occupancy of ever:y tenant, including chi 1-·
drenp in the rental housing complex on the date of the conversion ap
plication.
(2) Current rents for each unit and the date and amount of all
rental incr·eases within the two years prior to the date the conversion
applicati.on is received.
(3) The approximate proposed sales price of each unit and the
pro forma budget proposed for submission to the Real Estate Commis
sioner or a similar estimate of projected annual operating and main
tenance fees or assessments; and
(4) A statement of any repairs or improvements proposed to be
completed prior to the sale of ~nits, along wi.th a time schedule there
for.
(5) A statement of proposed tree and landscaping removal and/or
planting, if any.
(6) A parking plan, including the total number of spaces ~ctu
ally provided, the total number of covered and uncovered spac~s, and
the location and number of guest parking spaces.
(7) A report describing the building's utilities, storage space,
and laundry facilities.
(8) Any other information which, in the opinion of the Director
of Planning and Community Environment, will assist the City in deter
mining whether the proposed conversion is consistent with the purposes
of this Chapter and the Comprehensive Plan.
2lv04.080 Time limits.
(1) Withdrawal. If a tentative or preliminary parcel map for a
subdivision to be created from a conversion is withdrawn before City
Council review, a map for said subdivision cannot be submitted again
for one year after the date of withdrawal.
-9-
(2) Expir.:~tion. lf a tcnt:ltive or preliminary p<lrct'l map for a
subdivision to be crt.:at.cd from u conversion which hun bt~en approved or
conditionally approved by the City Council 10xpiren, pursuant to Govern
ment Code Section 66452.6, a map for saicl subdivision cannot be sub
mitted aqain for one year after the date of (~Xpiration.
(3) Denial. If a tentative or preliminary parcel map for a sub
division to be created from a conversion is denied by the Ci.ty Council,
a map for said subdivision cannot be submitted for one year after the
date of deniaL
(4) Sale. All rental units approved for conversion shall be
offered for sale within two years of the issuance of the DI~E report.
21.40.090 Severability~ If any provision or clause of this
chapter or the application thereof to any person or circumstance is
held to be unconstitutional or to be otherwise invalid by any court of
competent jurisdiction, such invalidity shall 11ot affect other chapter
provisions, and clauses of tt1is chapter are declared to be severable.
SECTION 2. Section 16.38.020(b) of the Palo Alto Municipal Code
is hereby amended to read as follows:
11 (b) A preliminary annual opE~r·at.ing budget
containing a sinking fund reasonably calculated
to accumulate n;::sE;r-ve funds to pay fo:c ma·joL·
anticipated maintenance, repair or replacement
t0Xpenses,"
SECTION 3. Section 16.38.050 of the Palo Alto Municipal Code ls
herebyaine;v.I"ea· to ~~ead as foLlows:
"16.38.050 Previously-occupied structures.
Buildings and structures that have been previ
ously 0ccupied shall comply with the additional re
quirements set forth in Section 21.40.060 of the
Chapter on Conversions of Rental Housing to Condo
m i n i u m s and 0 t he r Co mm u n i t y !! o u.s i n q P r o j e c t :..> , u
St·~C1'ION 4o 'i'he Council finds that none of the provi~>ions of this
ordinarice-wi.IT have a significant adverse environmental. impact.
SECTION 5. This ordinance shall become effective upon the com
mence~ent of the thirty-first day after the day of its passage.
IN'l'RODUCED: July 13, 1981
PASSED: August 10, 1981
AYES : Bechtel, Fazzino, Fletcher r Henderson, Renzel
NOES: Eyerly, Klein, ll2vy, WithersfOOn
ABSTEN'riONS: None
ABSENT: None
ATT~T: (J
I j JP· v/~ A. , IJC -L#fc¥' < , ~r_V<J!;t_ --C[,t~. eyk
APPROVED Us TO FORM: /~ 0-AJ OJiJ J.:_J~Q/fU AsSlS nt'Cl ty A.ttor~riey --·-
APPROVED:
/7 _V _____ ':4:~.·~ 'M~~
-10-