2.1070 Condominium Conversion – Permit Approval.
In order to obtain approval by the city manager of an application for a condominium conversion permit, the applicant must satisfy the following conditions and provide the following documents as part of the permit application.
(a) Common elements report. The applicant shall supply to the city manager a report prepared by a reserve specialist or other professional approved by the City describing the condition and expected useful life of all common elements including the roof, foundation, external and supporting walls, mechanical, electrical, plumbing, heating, all other major mechanical and utility systems, together with an estimate at current market prices of repair or replacement costs for those items requiring immediate major repair or eventual replacement. The report shall separately list the condition and expected life of all components of common elements and shall include the approximate dates of installation of the common elements and components and the dates and description of major repairs or renovations of the common elements and components. The report shall show on each page the date of preparation of the report. It shall clearly disclose which common elements could not be physically inspected and which estimates for these common elements were not made on the basis of a physical inspection. The report shall identify the sources used in the provision of all information, including the condition of common elements, the estimates of expected useful life and repair and replacement costs. The report shall also contain a summary of all city building official records pertaining to each building’s major repairs or renovations. The definition of “major repair” and “major renovation” shall be set by administrative rules issued hereunder.
(b) Applicant’s affidavit. The applicant shall file an affidavit attesting to the truth of the following:
(1) That the applicant has notified all tenants residing in the building to be converted and any affected neighborhood group of the permit application. The affidavit shall also state that the applicant has kept signed receipts from all affected tenants certifying that each tenant has received copies of the notice of planned conversion and the proposed tenant assistance plan contract. The applicant shall state in the affidavit that such receipts shall be kept on file in this city by the developer or the developer’s agent subject to inspection by the city manager at any reasonable time for a period of three years from the date the receipt is taken. For the purpose of this provision, a refusal to accept notice of intent to convert or the tenant assistance plan contract shall constitute receipt by any affected tenant.
(2) That the informational brochure on condominium conversion provided by the city has been distributed to all tenants who reside in the building proposed to be converted.
(3) That no evictions of affected tenants except for good cause have occurred between the date of the notice of planned conversion to the city and the date of the permit application.
(c) Information provided to state. All issued condominium instruments whose submission is required by administrative rules issued hereunder.
(d) Rental history. A rental history report containing information required to be submitted under administrative rules issued hereunder.
(e) Tenant survey. A survey of all affected tenants in the conversion project containing information required to be submitted under administrative rules issued hereunder.
(f) Tenant assistance plan. Each applicant for a permit shall prepare and supply to the city a tenant assistance plan (TAP). No TAP need be prepared where all of the affected tenants have executed binding offers to purchase their units or shares or have permanently relocated at the time of the permit application. The TAP shall be formalized by a contract between the developer and the city, the execution of which is a prerequisite to city permit approval. Each TAP contract shall contain the following:
(1) An obligation on the part of the developer to pay moving expenses of special category affected tenants. The amount of moving expenses to be paid for each type of special category tenant and the time for such payment shall be set by administrative rules issued hereunder.
(2) An agreement by the developer to contract with a housing counselor approved by the city, to assist special category tenants of the building to be converted in locating housing and to act as the developer’s sole agent in representing housing as comparable, to special category tenants. The city may withdraw its approval of the housing counselor at any time. The contract between a housing counselor and a developer shall be subject to approval by the city. Such contract shall require the counselor to use the counselor’s best efforts to obtain replacement housing which meets the articulated special needs of each special category tenant in addition to being comparable as defined in this code.
(3) An agreement by the developer to offer two comparable housing units to each special category tenant prior to giving any notice of tenancy termination to that tenant. If the status of the offered unit as comparable is contested by the tenant, it shall not constitute such an offer until the decision of the hearings officer on its compatibility. An independent offer is one which is not an outstanding offer to any other tenant and which is, during the period of consideration, an exclusive offer to that tenant. Any such obligation on the part of the developer shall not preclude an eviction of any special category tenant for good cause. The agreement to offer comparable housing to a particular tenant may be satisfied by an offer of lifetime tenancy to that tenant.
(4) An agreement by the developer not to evict any affected tenant, except for good cause, prior to the expiration of 120 days from the issuance of the permit.
(5) An agreement by the developer not to raise the rent of any special category tenant except to an amount equal to or less than rent for comparable housing in the same building if such comparable housing exists.
(6) A provision that the contract shall operate in favor of all affected tenants of the building as third party beneficiaries.
(7) A provision that the city assumes no liability for the condominium conversion project or the developer’s actions or failure to act.
(8) A provision that reasonable trial and appellate court attorney’s fees shall be paid by the non-prevailing party in any action or suit on the contract.
(9) Any other provision required under administrative rules issued hereunder.
A TAP may include any purchase incentives to existing tenants which are offered by the developer.
(g) Cash reserve escrow account. The developer shall submit proof of establishment of a cash reserve account by the developer for replacement reserves for common elements in an amount and in the manner required by state law. In determining the estimated useful life and replacement costs for the common elements, the developer shall use the estimates set forth in the common elements report.