Condominium Conversion

2.1060 Condominium Conversion – Definitions.

In sections 2.1060 to 2.1084 of this code, the following words and phrases mean.

Affected tenant. Any tenant who resides in a building to be converted at the time of notice of planned conversion.

Agent. A person who represents or acts for or on behalf of a developer in selling or offering to sell a condominium, or stock cooperative unit, but such term does not include an attorney at law whose representation of another person consists solely of rendering legal services.

Association of unit owners. The association of owners of units of a condominium formed for controlling the administration, management and operation of a condominium or the resident board of directors of any cooperative housing unit project.

Building. A multiple unit building or single unit building, or any combination thereof comprising a part of property.

City manager. The city manager or the manager’s designee.

Common elements. The general common elements existing for the benefit of common use of more than two unit or share owners which shall include, where applicable:

(a) The land whether leased or in fee simple upon which a building is located, except any portion thereof included in a unit or made a limited common element by the declaration of unit ownership;

(b) The foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, fire escapes, entrances and exits of a building;

(d) Installation of central services such as power, light, gas, hot and cold water, heating, refrigeration, air conditioning, waste disposal, and incineration;

(e) The elevators, tanks, pumps, motors, fans, compressors, ducts, and in general all apparatus and installations existing for common use;

(f) The premises for the lodging of janitors or caretakers of property; and

(g) All other elements of the building convenient or necessary to its existence, maintenance, and safety and normally in common use.

A component of a common element is any identifiable part of a common element which may be separately purchased and which has an expected useful life which is different than other parts of the common element.

Comparable housing. Housing which is decent, safe, and sanitary, in compliance with all applicable municipal codes and open to all persons regardless of race, creed, national origin, ancestry, religion, marital status, or gender. Housing is comparable if it is provided with facilities reasonably similar or equivalent to that provided by the landlord in the dwelling unit in which the tenant then resides in regard to each of the following:

(a) Apartment size, being no less than 80 percent of the area square footage of the dwelling unit in which the tenant then resides;

(b) Rented for an amount no more than 120 percent of the last month’s rent paid by the tenant to the owner of the property to be converted. Rent shall not include money paid or charges collected by the lessor for the provision of utility services;

(d) Similar kitchen and bath facilities;

(e) Similar special facilities for the particular tenant’s needs if that tenant is handicapped or elderly, including but not limited to elevators and security features;

(f) Similar cooling and heating systems;

(g) Similar accessibility in terms of time and travel and distance from public transportation routes to the tenant’s place of employment, community and commercial facilities, schools, medical services, and transportation; and,

(h) Such other factors as may be identified in administrative rules issued hereunder. A unit is not comparable if it is located in a building for which a notice of planned conversion has been given or for which reasonable evidence exists that the owner of such building is contemplating conversion to condominium or cooperative units. “Comparable housing” does not include: any hotel, motel, or other similar structure or room therein used primarily for transient occupancy, in which at least 60 percent of the rooms is devoted to living quarters for short-term tenants or guests or used for transient occupancy; any rental unit in an establishment which has as its primary purpose the providing of diagnostic care and treatment of diseases, including but not limited to hospitals, convalescent homes, nursing homes, and personal care homes; or any dormitory or institute of higher education, or private boarding school dwelling unit which is provided for student occupancy.

Condominium. Land, whether leasehold or in fee simple, whether contiguous or noncontiguous, and all buildings, improvements, and structures thereon, and all easements, rights and appurtenances to the property where the ownership of such land is shared in undivided interests except for exclusive and separate ownership or right of residency of each residential unit located on the land.

“Condominium” shall include all property subject to the provisions of state law on condominium conversion and cooperative housing units.

Condominium instruments. The declaration of unit ownership required to be recorded under state law, any supplementary declarations and plats, bylaws for the association of unit owners, the notice of intention or disclosure statements filed pursuant to state law, the condominium public report or examination issued pursuant to state law, the common elements report required under section 2.1070(a) of this code, the informational brochure described in section 2.1070(b)(2) of this code, the TAP contract required under section 2.1070(f) of this code, and any other document defined as a condominium instrument under administrative rules issued hereunder. “Condominium instrument” as applied to cooperative housing unit projects shall include any document equivalent to those identified above as well as the articles of incorporation, by-laws, executed regulatory agreements, occupancy or subscription agreements, management contracts, management plans, and applications for mortgage insurance of the cooperative corporation.

Condominium unit. The part of the property consisting of a building or one or more rooms intended for any type of independent residential ownership, the boundaries of which are described in a declaration of unit ownership under state law and which has a direct exit to a public street or highway or to a common area or areas leading to a public street or highway.

Conversion (condominium). The process whereby more than two rental housing units sharing one or more common elements are converted from ownership in whole by a person or group of persons to ownership by several persons whose ownership interests are separate as to residential or commercial units located on the real property. “Condominium conversion” includes the process prescribed by state law for issuance of a declaration of unit ownership, and the process of converting rental units to cooperative housing units, but does not include the process of converting non-residential commercial or industrial buildings to residential condominiums or cooperative housing units.

Cooperative housing. Improved real property owned or leased by a cooperative housing corporation or by any other corporation, partnership, trust or association in which all or substantially all of the shareholders of the corporation, partners of the partnership, beneficiaries of the trust or members of the association receive a right of exclusive occupancy in a rental unit of the building, which right of occupancy is transferable only concurrently with the transfer by any means of the stock, partnership interests, beneficial interest, or membership held by the person having such right of occupancy.

Declaration of unit ownership. The document submitting property to the state unit ownership law filed pursuant to state law.

Developer. A “declarant” under state condominium law, or any person who plans to submit property legally or equitably owned in whole or in part by the person to the provisions of state condominium law, or any person who purchases an interest in a condominium from a declarant or subsequent developer for the primary purpose of resale, including any person, entity, or group who purchases or is negotiating a purchase of a building for use as cooperative apartments.

Disabled person. A person who has, at the time of issuance of a condominium conversion permit, a mental, emotional or physical disability or illness of more than a temporary duration that:

(a) Substantially impairs his or her ability to move about to find or maintain a housing unit without the use of external aids (e.g., wheelchair, cane, walker, guide dog) or without another person’s assistance, or without pain; or

(b) Involves the loss of sight or hearing ability, prevents normal walking or climbing of stairs, or requires a special life support system; or

A disability must prevent or make it difficult for the person to carry out regular activities of daily living (e.g., housework, shopping, laundry, meal preparation, personal care such as bathing and dressing). Evidence that would determine the status of disability would include a doctor’s certificate, a statement from a health care specialist attesting to the above criteria, a governmental determination of disability, or a worker’s compensation determination of greater than 50 percent disability.

Elderly person. A person who is 70 years of age or over at the time of the notice of planned conversion.

Good cause for eviction. An eviction for one or more of the following reasons:

(a) The tenant has failed to pay rent to which the landlord is entitled within 10 days after it is due;

(b) The tenant has violated a written obligation or covenant of the tenancy other than the obligation to surrender possession upon proper notice, and has failed to cure such violation for 14 days after receiving written notice thereof from the landlord;

(c) The tenant has permitted or is permitting a nuisance to exist in or is causing damage to, the rental unit or to the appurtenances thereof, or to the common area to the property containing the rental unit;

(d) The tenant is creating an unreasonable interference with the comfort, safety, or enjoyment of any of the other residents of the same or any adjacent building;

(e) The tenant is using or permitting the rental unit to be used for any illegal purpose;

(f) The tenant, under a terminated written lease or rental agreement, has refused, after receiving written request or demand from the landlord, to execute a written extension or renewal thereof for a further term of like duration with similar provisions and at such terms as are not inconsistent with or violative of any provision of sections 2.1060 to 2.1084 of this code.

(g) The tenant has refused the landlord reasonable access to the unit for the purpose of making repairs or improvements or for the purpose of inspection as permitted or required by the lease or by law or for the purpose of showing the rental unit to any prospective purchaser or mortgagee;

(h) The person in possession at the end of the lease term is a subtenant not approved by the landlord; or

(i) The tenancy is conditioned on and in consideration of the tenant’s employment as superintendent, manager, janitor, or in some other capacity and such employment is terminated.

Hearings officer. A person appointed by the city manager to decide contested issues arising under sections 2.1060 to 2.1084 of this code.

Lifetime lease. A lease containing the following provisions:

(a) The tenant shall have the option of canceling the lease at any time upon 30 days written notice to the owner;

(b) The tenant cannot be evicted except for good cause;

(d) The rent for the unit shall be set at no more than the rent existing on comparable housing in the same building if such comparable housing exists; and

(e) Except as provided above, other terms and conditions are the same as those contained in the tenant’s current lease, or rental agreement.

Low income person. A person who, at the time of notice of planned conversion, has a current income equal to or less than 80% of the median income on a yearly basis determined for Lane County by the Department of Housing and Urban Development or its successor.

Moving expenses. A fixed sum of money based on the number of rooms of furniture that is intended to cover the cost of moving the tenant’s possessions to another location within the urban growth boundary exclusive of expenses attributable to packing and unpacking. For elderly or disabled tenants moving expenses include an additional fixed sum of money intended to cover the costs of packing and unpacking. The amount of moving expenses shall be set by administrative rules issued hereunder.

Permit. A condominium conversion permit issued by the city manager under section 2.1066 of this code.

Rental agreement. All written or oral agreements.

Rental housing unit. A leased residential unit for individual occupancy containing separate kitchen facilities which has a direct exit to a public street or highway or to a common area or areas leading to a public street or highway.

Sale. Every final disposition or transfer of a condominium unit or purchase of a cooperative share by a developer, including the offering of the property as a prize or gift when a monetary change or consideration for whatever purpose is required by the developer or the developer’s agent.

Share. A certificate of interest, participation, or ownership in a cooperative corporation including any subscription, membership, or occupancy agreement.

Special category tenants. Any person who is elderly, disabled, or low income.

Unit Owner. A developer who owns a unit or share, a person to whom ownership of a unit or share has been conveyed, or a lessee of a unit in a leasehold condominium whose lease expires simultaneously with any lease the expiration or termination of which will remove the unit from the condominium, but not a person having an interest in a unit or share solely as security for an obligation.