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HomeMy WebLinkAboutAgenda Statenent 1978/11/14 item 15 CITY OF CHULA VISTA i� COUNC I L AGENDA STATEME��1T Item No. �;�. PUBLIC MEETING� For meeti ng of ��� ����'�� a. Consideration of amendment to Municipal Code to establish standards for condominium development or conversion ITFM TITLE b, Ordinance /��� - Amending Chapter 15.56 of the Chula Vista Municipal Code relating to proposed condominium projects and to the conversion of dwelling units to independent ownership by conversion to condominiums SUBMITTED BY Director of Planning � � ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES NO X ) A. BACKGROUND l . The City Council , on September 5, 1978, considered the Planning Department's report on the matter of residential condominium conversions and a draft ordinance for the regulation thereof. Council , after suggesting revisions to said draft ordinance, referred it to the Planning Commission for public hearing, consideration and recommendation. 2. The contents of the Planning Department's report to Council are embodied in the analysis section of this report and the supporting survey information is attached hereto as Exhibit B. The suggestions of the Council are incorporated in the text of the proposed ordinance (Exhibit A of Planning Commission Resolution PCA-79-2). The original proposal would have subjected condominiums created by conversion to more restrictive requirements than those created in accordance with an initial plan of condo- minium ownership. This illogical disparity has been eliminated in the proposed ordinance which is no longer confined to condominium conversions but embodies a regulatory plan for all residential condominium projects. 3. The following evaluation and the proposed legislation have been prepared in con- junction with the City Attorney, the Director of Building and Housing, and the Fire Chief. 4. The Environmental Review Coordinator conducted an Initial Study (IS-79-19) on the proposed ordinance and recommended that the Planning Commission and City Council find that the adoption of said ordinance will not have a significant impact on the environment and adopt the Negative Declaration. 5. The Planning Commission, on October 25, 1978, found that the proposed ordinance will have no significant environmental impact and adopted the Negative Declaration on IS-79-19. DMP:hm EX HIBITS �continued on supplemental a e} Agreement Resolution Ordinance X Piat Notification List Res.PCA-79-2 Other S rve s no si�NVIRONMENTAL DOCUMENT: Attached X Submitted on � u es o•�.C. Meeti n of 10 25 7 FINANCIAL IMPACT � , � r STAFF RECOMMENDATION Concur with Planning Commission recommendation, BOARD/COMMISSION RECOMMENDATION On October 25, 1978 the Planning Commission (with one vacancy and one member absent) voted 5-0 to certify the Negative Declaration on IS-79-19, and voted 3-2 to recommend adoption of the amendment to Chapter 15.5b in accordance with Resolution PGA-79-2. COUNCIL ACTION "'�""" '"'" "-°� _ I�� � �.,�,4,� . ����� �' �.,, . . _..�. �_._f/:�,�; - �, � � "�r, '� '`�.i �.ai... ... . .,:a � � ! _.. 'i� � ' � �.,� ,,. .,_. , ..._ . �' � � .. .. ��- c�U�.,� _/_ .? ' �/ _.�_ _.� r. x .�► i w � L:�. i �. ... . ._... . _ ��„�-.��.x......,r.�r�,�._,...�.m,_�._�,�...�:�.0 �,.�.�, �F�o rm....dq.�.}� (Rev. 5/7 7) AGEN�A ITEM N0. �,8a Meeting of 11/7/78 Supplemental page No. 2 B. ANALYSIS 1 . Statement of the issues and problems. a. The cities of California are confronted by a surge of condominium conversions. While these conversions are not ordinarily a problem, their coalescence with Califor- nia's increasing housing shortage has caused much concern.1 b. Condominium conversions tend to be especially troublesome to renters on fixed or moderate incomes. These people are often unable to find acceptable new apartments, and unable to purchase the condominium unit which they presently occupy. This problem could become most acute in Chula Vista, where the vacancy factor has plunged below 1%, and the price and rental of new housing is steadily rising.2 c. Another concern is founded upon the expectations and entitlement of condominium purchasers. While tenants of apartments have traditionally accepted their places of residency as temporary, this acceptance does not extend to condominium projects. Owners of condominium units understand that they hold fee title to their air space, and an undivided interest in the underlying, overall fee. As homeowners, they expect the amenities, quality-of-life, privacy, and convenience which is usually associated with home ownership. These expectations, however, cannot be realized by the mere conversion of a rental unit to an ownership unit. 2. Several California cities have undertaken the regulation of condominium conversions. Some cities have concentrated on the physical design and environmental standards of the involved buildings and building sites, but others, following the direction of Menlo Park and Palo Alto, have oriented their controls toward the alleviation of the social predicament of tenants. Exhibit B embodies analytical precis of the "condominium conversion plans" of several cities throughout the state. 3. Exhibit B clearly indicates that some jurisdictions are attempting to ease the plight of renters caught between the condominium conversion-low vacancy rate pincers. Unfortunately, these efforts could create greater problems in the process. They could preclude moderate and middle income people from the enjoyment of home ownership and prevent property owners from partitioning their real estate for the purpose of sale. This preclu- sion of home ownership is certainly socially significant, but the prevention of the sale of land could be worse--a refutation of the individual ' s fundamental rights. Since the statute of Quia Emptores, enacted in 1290, the free alienation of land has been a corner- stone of individual liberty. To understand the issues at hand, it must be realized that a condominium conversion is neither a change in land use, nor a change in land occupancy. It does not even necessarily increase the number of involved parcels of land. A condominium conversion merely changes the nature, character, and extent of holding or owning real property, and is therefore a legal , not city planning concept. Neither the increase nor the decrease of condominium conversion activity will directly increase or decrease the supply of housing. On the other hand, the said activity would correspondingly increase or decrease the number of units available for �wnership. 4. In light of the factors discussed in the preceding paragraphs, and the probability that Chula Vista's low vacancy factor will endure for a long time, the P1anning Department is of the opinion that the best interests of the people of Chula Usita would not be served by a long-term prohi6ition of condominium conversions. The shortage of housing weighs heavily upon the people of California, and certainly must be resolved. 1 As a general rule, the profit picture with respect to residential rentals lacks �uster and vitality. However, the potential gain available through the sale of apartment units, during Southern California's chronic housing shortage, is probably the primary impetus behind the condominium-conversion thrust. 2The City of Chula Vista, between 1972 and the present, processed the conversion of 226 rental units to condominium units. There is presently pending official proposals for the conversion of an additional 220 apartment units. By way of reference, there are 11,300 rental units within Chula Vista at this time. ,_ � , " Ai�cNDA ITEM N0. 8,8a Meetir�g of 11/7/78 Supplemental page No. 3 5. The State Legislature has not provided substantial guidance for the solution of the problems discussed in this report. These problems,, however, are statewide in significance and scope, and require state addressment.3 f, The Planning Department does feel that local government can effectively protect the interests of future condominium buyers. Under the proposed ordinance, regulations which are designed to promote the privacy, convenience, and comfort of condominium owners are proposed. Since compliance with the requirements of this ordinance would entail sub- stantial costs, the conversion of moderate-income apartment houses might be dissuaded. 7. The proposed ordinance has undergone several changes since its review by the City Council . While it was originally submitted as an interim ordinance, it now takes the form of an amendment to the Chula Vista Municipa7 Code. Furthermore, the proposed ordinance has been reconciled with the standard procedures of the Building and Housing Department. This reconciliation should facilitate the administration of the proposed ordinance, as well as relieve the City Council of the burden of considering administrative appeals related thereto. The proposed ordinance properly places appellate review within the jurisdiction of the Board of Appeals and Advisors. The proposed ordinance also revises the prior proposal 's substantive requirements. The required storage area per condominium unit, for example, has been reduced from 512 cubic feet to 256 cubic feet. The ordinance calls for individual water heaters, in the absence of a system controlled by a homeowners ' association. 8. The proposed ordinance repeats State legislation on certain matters of substan- tial importance to existing tenants of residential developments proposed for condominium conversion. Tenants, according to the ordinance, must be given 120 days notice of their land7ord's intent to termina�e their tenancies, and a 60 day right of first refusal to purchase their dwe1ling units. Furthermore, the proposed ordinance calls for the property owner' s establishment of a firm price for the involved dwelling units as a condition precedent to the commencement of the running of these 120-day and 60-day periods. 9. Where applicable, the proposed ordinance now requires owners to notify prospective purchasers of condominium units that their prpjects were created by conversion, and that their constituent dwelling units were previously occupied by rental tenants. This require- ment is consumer oriented, and is designed to provide prospective purchasers with threshold information upon which they can predicate �heir decisions. 10. The expansion o� the purview of the ordinance to condominium projects which are originally planned as such, and not created by conversion, constitutes a significant difference between the original draft and the present one. Without this expansion, the proposed storage area requirements would not 6e applicable to new condominium projects. Tt shou1d be noted that proposed Sections 15.56.030, 15.56.040, and 15.56.050 are applicable on1y to condominium projects created by conversion. 3The condomin�,um concept was spawned by the k�oman Civil Law, but was tradi.tionally regarded as l�ei.ng re�ugnant to the common law, 'I'he modern condomin�;um concept was intxoducecl into California by statute in the early 196Q's, and may� be properly regarded as a State creation.. The State has de�ined, authorizedq and governed the platting o,f condominium projects. Certainly, for reasons of statewa:de uniformity and historical cont�.nuity, the State should prov'ide the guidelines fo� the creation o�' condominiums by conversion, The State, fu�thermore, could underwrite low in�erest loans to the existing tenants of condominium projects created by conve�sion. These loans could �'ollow the precedent established by� the "Cal-Vet!' and �he California Housing Finance Agency loans, and be financed by State revenue bonds, �.,, �. �;�- � � � �� �� � �� f�E���'��E ����A�ATIQl� � PROJECT TITLE: Condominium Conversion Regulations Project Location: City of Chula Vista Project Proponent: City of Chula Vista CASE N0. IS-79-19 DATE: Sept. 26 , 1978 A. Background , The City CounciZ , on September S, 1978 considered the Planning Department' s report on the matter of residential condominium conversions, a draft ordinance for the regulation thereof. Council , after suggesting revisions to the said draft ordinance, referred it to the City Planning Commission for public hearing, consideration, and recommendation. The suggestions of Co�ancil are incorporated in the text of the draft ordinance (Exhibit A} , The original proposal would have subjected condominiums created by conversion to more restrictive requirements than those created in accorda+nce with an ini�ial plan of condominium ownership. This illogical disparity has been eliminated in the present draft, and the proposed ordinance i,s no longer confined to condominium con- versions. The said proposed ordinance now embodies a regulatory plan for alI residential condominium projects . B. Project Descri tion The proposed ordinar,ce (which is on file and available for public review at the Chula Vista Planning Dept. ) �aould regulate the creation or conversion. of existing 'multiple family dwellings into condominiums. The regulations include the following: l. Fire protection 2. Uniform Building Code & Housing Code requirements. 3. Storage areas 4 . Off-street parking 5 . Security lighting � 6 . Architectural Design Review 7 . Utility . Services • . 8. Compliance Survey � 9. Notification requirements . Anyone desiring to comment on the ordinance or this Negative Declaration should contact the Planning Dept. � . = ' IS-�9-i9` �� �� _ � , C. Compatibilitv with zoning and plans The proposed ordinance with not effect Title 19 (zoning text) nor will it require any change in the General Plan. The project is designed to regulate the conversion of multiple family dwellings into condominium units and to enhance their Iiving environment. D. Findings of insignificant impact 1. The project involves an amendment to Chapter 15 .56 of the Municipal Code'and will not involve any specific property, therefore will not endanger any species of wildlife or vegetation. 2. The project is consistent with the long term goals of the General Plan and will not achieve short term to the dis- advantage of long term environmental goals . 3. There are no impacts anticipated which could interact to create a cumulative adverse effect on the environment. . 4. Requirements set forth in the proposed ordinance will regulate the conversion of multiple family dwellings into condominium units and enhance the living environment. T:c Initi�l Stuc_� ap�lication and evaluation forms documenting the " finclincs or no sir,niFicant impact are attached. (Xl.�--�� �:1VIR0`::- .;T«L REVIES•1 COORDI:IF,TOR E`I 3 (re��. S/77) � RESOLUTION ��0. PCA-79-2 RESOLUTION OF THE CITY PLANNIfJG COMF1ISSION RECOMMENDING TO THE CITY COUNCIL THE ADOPTIOP� OF AMENDMENTS TO CHAPTER 15.56 OF THE CHULA VISTA �tUNICIPAL CODE RELATING TO PROPOSED CONDO- MINIUM PROJECTS APlD TO TNE CONVERSION OF D4JELLING UNITS TO INDEPENDENT 06dNERSHIP CREATED BY COfdVERSION TO CO�JDOMINIUMS IN CONJUPJCTION WITH THE APPROVAL OF SUBDIVISIOPd AND PARCEL MAPS RELATED THERETO WHEREAS, due to a substantial increase in the number of requests for construction of condoninium projects and the conversion of Pxisting apartment buildings to condominiums, the City ;ouncil directed that consideration be given to adopting amendments to the Municipal Code to regulate such development or conversion, and WHEREAS, on S�ptember 26, 19?8 the Environmental Review Committee considered the impact of such proposed �mendments and issued a Negative Declaration on IS-79-19, and WNEREAS, the City Planning Commission set the time and place for a public hearing to consider amendments to the Municipal Code relating to condominium development and conversion of dwelling units to condominiums, and WHEREAS, a hearing was held at sai.d time and place, namely 7:OQ p.m„ October 11 and October 25, 1978 in the Counci1 Chamber, City Hall , before the Planning Commission and said hearing was thereafter closed, and ��HEREAS, the Commission found that enactment of the proposed amendments will not have a significant environmental impact and adapted the Negative Declaration on IS-79-19. NOW, TNEREFORE, BE IT RESOLVED AS FOLLOWS: 1 . From facts presented to the P1anning Commission, the Commission finds that public necessity, convenience, general welfare and good zoning practice require the enactment of amendments to Chapter 15.56 of the hlunicipal Code as sta�ed in Exhibit A attached hereto. 2. The Planning Commisslon recommends to the City Council that said amendments be adopted. 3. That this resolution be transmitted to the City Council . PASSED AND APPROVED BY THE CITY PLANNING C0�-1MISSION OF CHULA VISTA, CALIFORNIA, this 25th duy of October, 1978 by the following vote, to-wit: AYES: Commissioners R. Johnson, Williams and G. Johnson NOES: Commissioners 0'Neill and Pressutti ABSEfdT: Commissioner Smith Acting Ch irman ATTEST: _�c�r�,-�rr� '/l��a"C�!� �-'_v.� Secretary r _ . _,..___.__�