HomeMy WebLinkAboutOrd 1973-1491 (2)7,116/73
ORDINANCE N0. 1491
AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTIONS
X5.401, 35.402 AND 35.404. OF ARTICLE 4 OF CHAPTER 35
OF THE CHULA VISTA CITY CODE ADOPTING A NEW SCHEDULE
OF PAYMENTS OF THE RESIDENTIAL CONSTRUCTION TAX, AND
REQUIRING A CONVERSION TAX AT THE SAME RATE AS FOR
MULTIPLE FAMILY DWELLING UNITS UPON THE CONVERSION
OF APARTMENTS OR PROJECTS TO CONDOMINIUM OWNERSHIP.
The City Council of the City of Chula Vista does ordain
as follows
SECTION I: That Sectior~ 35.401, 35.402 and 35.404 of
Article 4, Chapter 35, of the Chula Vista City Code be, and are hereby
amended to read as follows:
Sec. 35.401. Purpose and intent.
1. Tax Upon Construction of New Residential Units.
It is intended that the residential construction tax shall be
applicable to all new residential units, including hotels
and motels, which, although considered as being commercial
in nature, generate householders who impose a burden upon the
public facilities of the City of Chula Vista. Said tax shall
be paid by the person constructing said units if said person
has not dedicated park lands or paid fees in lieu thereof as
a condition of approval of a subdivision map.
The City Council hereby declares that the fees required to be
paid hereby are assessed pursuant to the taxing power of the
City and solely for the purpose of producing revenue. The
continued increase in the development of dwelling units in
the City with the attendant increase to the population of the
City has created an urgency in that there are insufficient
funds available for the increased demand for capital items
required to serve the increasing population of the City.
2. Tax Upon Conversion of Apartment Buildinas or Proiects
to Ownership of Independent Units. To further the purpose of
t e City Council to establish a tax upon the conversion of
apartment buildings or projects to private ownership of
independent units at the same tax rate set forth in the
residential construction tax .schedule for multiple family
dwelling units, it is recognized that the conversion of
apartment buildings or projects in multiple family zones from
single corporate or partnership ownership to condominium
ownership or ownership pursuant to a subdivision of the
property affords to purchasers of such condominiums or inde-
pendent units a type of single family ownership status with a
greater projected population density than that which would be
allowable in the single family residential zones.
Therefore it is the intent of the Council to require the
payment of a residential conversion tax if the residential
construction tax was not paid at the time of the construction
of the multiple family dwelling unit or appropriate park lands
were not dedicated, or in lieu fees were not previously paid
at the time of the subdivision of the property, in order to
support the demands placed upon public facilities and require-
ments for improvement or recommendation of capital improvements
as indicated hereinabove resulting from such conversion.
- 1 -
Sec. 35.402. Residential Construction Tax Schedule.
1. Every person constructing, erecting or placing any
new dwelling units in the City of Chula Vista shall pay
to the City a residential construction tax in accordance
with the following schedule:
Single Family Dwellings
Attached, Cluster Housing
of Planned Unit Developments
under either Condominium or
Subdivided Ownership
Duplex Units
Multiple Family Units
Mobile Homes
- $250.00 per unit plus
$10.00 for each bedroom
in excess of one bedroom
- $220.00 per unit plus
$10.00 for each bedroom
in excess of one bedroom
- $170.00 per unit plus
$10.00 for each bedroom
in excess of one bedroom
- $140.00 per unit plus
$10.00 for each bedroom
in excess of one bedroom
- $130.00 per unit plus
$10.00 for each bedroom
in excess of one bedroom
Residential Hotels or Motels - $80.00 per unit
with individual kitchen facilities
Residential Hotels or Motels - $70.00 per unit
without individual kitchen facilities
Transient Hotels or Motels - $50.00 per unit
For the purpose of implementing the above fee schedule, any
rooms as shown on plans submitted by the subdivider, regard-
less of their designation thereon, which may be used for
bedroom purposes shall be regarded as a bedroom.
2. Such taxes shall be due and payable upon application
to the City for a building permit for the construction of
any such dwelling unit; provided, however, that there shall be
a refund of such taxes in the event the building permit is not
approved, or is not used, for such construction.
3. Further, the taxes for the conversion of ownership as
indicated in subsection 2 of Section 35.401 shall be due and
payable upon application to the City for a certificate of
occupancy as specified in Sections 306 and 502 of the Uniform
Building Code, 1970 edition, and as required for such conver-
sion pursuant to Section 20.701 of the Chula Vista City Code,
provided, however, that there shall be a refund of such taxes
in the event that the apartment building or project is not
ultimately converted to condominium or independent dwelling
unit ownership.
Sec. 35.404. Deposit of Funds.
All of the sums collected pursuant to this ordinance
shall be deposited in a Residential Construction/Conversion
Fund in the Capital Projects Fund classification.
SECTION II: This ordinance shall take effect and be in full
force on the thirty-first day from and after its passage and approval.
Presented Approved as to rm y
,.:
Geo ge D. Lindberg, City A torney George Lindberg, City Attor
AGENDA ITEM N0. [ ~~"]
CHULA VISTA CITY COUNCIL MEETING OF: August 2'g, 1973
Ordinance
ITEM TITLE: No. 1491 - Amending Sections 35.401 & 35.402 of Art. 4,
Chapt. 35 of City Code Adopting New Schedule of Payments of the Residential
ADOP~1'ED 11IVD APPROVED BY Tlil; CITY COUNCIL OF~ TIIE CITY
OF CHULA VISTA, CALIFORNIA, this 28th day of August ,
1973, by the following vote, to-wit:
A1ES : Coune~..~men Scott, Hobel, Hamilton~H~de
NAYES : C o u-1 c.ti.Cm e ~t None
ABSENT: • Counc~.~men Egdahl
. ~ ,--.-_--.s--_.__~l~ -
Mayo%~ o ~ xlie C.t.zy a 4 (,Kul' ~.~~ ~a
ATTESTa,-.'~ ~ t ~ ~-« .. ' .
~! Cti~ y ' enlz
r%'
STATE OF CALIFORNIA )
.COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA ),
I, J~NNI~ b1o ~ULQSZ, C~.~y C.~e~f~ o~ the C~.~y o~ C6iu~'a V~:~~a,
Ca.2.~~o~.n~,a, D~ H~R~By C~RTI~y ~ha~ ~lze above ar~d ~onego~.ng .t.o a ~u.~k,
~.-cu~. and co-~cnec~ cad y o ~
anal .that the name t2a~s nod been amended ;~n ne~eu.~ed.
VAT~D:
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1
AGENDA ITEM N0. [ -~4_ ]
CHULA VISTA CITY COUNCIL MEETING OF: August 2'g, 1973
Ordinance
ITEM TITLE: No. 1491 -Amending Sections 35.401 & 35.402 of Art. 4,
Chapt. 35 of City Code Adopting New Schedule of Payments of the Residential
Constr. Tax and Requiring a Conversion Tax Upon Conversion of Apartments or
Pro]ects to Condominium Ownership - ISecond reading and adoption
INITIATED ~Y:
City Attorney
aorurunrtNn
A new schedule of taxes upon new residential construction and a conversion
tax for condominiums has been provided by the Planning Department. The
tax increase reflects increasing costs fob all capital improvements. The
tax now also reflects a variable based upon the number of bedrooms in a
dwelling unit. It also makes provision for taxes upon hotels or motels
which also introduce additional people into the City, imposing a burden
upon public facilities. A distinction is made between the residential
hotel or motel, such as the senior citizens projects, and the transient
hotel or motel, which is given a reduced rate.
This ordinance was p laced on its first reading at the meeting of August 21, 1973.
ATTACHED: Resolution [ ] Ordinance [ ] Agreement [ ] Plat [ ]
See EXHIBITS [ ] No.
Financial Statement:
n/a
Commission-Board Recommendation:
n/a
Department Head Recommendation:
Place on second reading and adoption
City Manager Recommendation: Recommend approval
AGENpA ITEM N0. [21' ]
CHULA VISTA CITY COUNCIL MEETING OF: August 21, 1973
ITEM TITLE: Ordinance - Amending Sections 35.401 & 35.402 of Art. 4,
Chapt. 35 of the City Code, Adopting New Schedule of Payments of the
Residential Constr. Tax and Requiring a Conversion Tax Upon Conversion of
Apartments or Projects to Condominium Ownership - first reading
INITIATED BY:
City Attorney
RACKGROiIND
A new schedule of taxes upon new residential construction and a conversion
tax for condominiums has been provided.by the Planning Department. The
tax increase reflects increasing costs for all capital improvements. The
tax now also reflects a variable based upon the number of bedrooms in a
dwelling unit. It also makes provision for taxes upon hotels or motels
which. also introduce additional people into the City, imposing a burden
upon public facilities. A distinction is made between the residential
hotel or motel, such as the senior citizens projects, and the transient
hotel or motel, which is given a reduced rate.
In accordance with administrative request, the ordinance has been amended
to provide specifically for the creation of a residential construction/
conversion fund in the capital improvement fund classification.
ATTACHED: Resolution [ ] Ordinance [X] Agreement [ ] Plat [ ]
See EXHIBITS [X] No. 1
Financial Statement:
n/ a
Commission-Board Recommendation:
n/ a
Department Head Recommendation:
Place on first reading.
City Manager Recommendation:
Approval
C~.~c{ A~:~tann~.y: P~'enbe pnepane .~'!ce' nece.bbany (ne.bu~u.t,~un) un (ond~,lav,ci) •
Staff Coirunentary on Acienda Item D1o,
CHULA VISTA CITY COUNCIL MEETING OF September 5, 1972
Item Title: Ordinances (3} - See Below
Initiated by: City Attorney
Attached is a copy of Resolution [ ] Ordinance [ ] Agreement [ ] Plat ( ]
Backnrowid:
1. Ordinance - Amending Section 34.201, Article 2, of Chapter 34
of the Chula Vista City Code Relating to Requirements for
Undergrounding of Utilities - First Reading
2. Ordinance - Amending Section 33.901 of Article 9 of Chapter 33
of the Chula Vista City Code by Adding Thereto a new Subsection
37 Relating to Landscaping and Parking Requirements for Condo-
minium Conversions - First Reading
3. Ordinance - Amending Sections 35.401 and 35.403 of Article 4 of
Chapter 35 of the Chula Vista City Code Requiring the Payment
of the Residential Construction Tax at the Rate for Multiple
Family Dwelling Units upon the Conversion of Apartment Buildings
or Projects to Condominium Ownership - First Reading
For background information, see attached memo dated August. 8, 1972
from the City Attorney to the City Council regarding conversion of
apartments to condominiums.
See EXHIBITS [ ] No.
~~ Financial
Statement: N/A
Commission-Board
Recommendation: N/A
Department Head
Recommendation: Place Ordinances on First Reading
~~~
City Manager
Recommendation:
A 113 (Send one. copy ~u: Ad m,i.n~b.tica~.~un; C~..ty C.~.en(z; C.i..ty A~.tunney, Dep..
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OFFICE OF TIIE
CITY ATTORt'EY
(?iC~ o~ ~~~u~u. ~UisCc~
CALIFORNIA
DATE: August 8, 1972
T0: The Honorable Mayor and City Council of the City
of Chula Vista, John R. Thomson, City rlanager, and
Bruce H. Warren, Director, of Planning
FROM: George D. Lindberg, City Attorney
SU~3JECT : CONVERSIOrd OF APARTMENTS TO CONDOMINIUMS
On two occasions the City Council has been confronted with the
necessity of reviewing and approving subdivision maps of already
constructed apartments which are being converted to condominium
ownership. Several questions have arisen which are apparently very
troub7_esome to the City Council and investigation by this office
indicates that similar concerns have been voiced in other communities.
It :i.s essential that several matters be resolved since the probability
is extremely strong that several other apartment buildings in the
City of Chula Vista, within the immediate future, will be converted
from a single or corporate ownership to a condominium form of owner-
ship.
In discussing this matter with rsr. Alan Perry, an attorney generally
regarded as the leading real estate attorney in San Diego County, I
am informed that Mr. Perry's firm alone has, within the past year,
provided tYzc legal advice and assistance in more than a dozen of
such conversions. The reasons are very•simple. Those persons who
own apartment buildings or complexes find that they have substantial
amounts of_ capital tied up in projects which could produce a greater
return in different enterprises; however, because of the tremendous
prices which they would demand for such buildings or complexes, it
is very often impassible to o;~tain a buyer even after several years
of placing such projects on the market. On the other hand, there is
an increasing market for individual unit ownership; i.e. condominiums,
and the conversion of such projects clearly is a profitable venture.
Problems Created by Conversion to Condominiums
Several members of the Council have expressed concern over the con-
version of apartment buildings to condominiums based upon their
apprehension for continued maintenance, prospective deterioration
ira maintenance and a general feeling that the apartments, in fact,
do not lend themselves to a condominium form of ownership. These
feelings are not at all unusual.
27G l~uucth ;lvenuc, Chula Vista, CA 92010 (71~f) X27-3300
Conversion of Apartments to Condominiums
August 8, 1972
Page Two
In discussing this matter with the City Attorney and Planning
Director of Torrance, California, I was informed that the initial
reaction to the conversion of apartment buildings. to condominium
ownership was precisely the same, however, they indicated that they
had substantially changed their viecas regarding this and could 'not
see any objections to the form of ownership.
Distinction Between Standard Apartments
And Condominiums ~~~
In March of 1971, the Council had raised the question concerning
any possible distinction between condominiums and apartments. This
office had previously indicated that there was essentially no differ-
ence between condominiums and multiple family dwelling units since
the whole issue is one of form of ownership and not in the physical
layout.
The law is quite clear that a condominium is a legally permissible
method of o~-~nership. Any attempt to differentiate between projects
being constructed in a multiple family zone based upon the method of
ownership would, I .believe, be clearly unconstitutional. Further-
more, any attempt to inhibit the conversion of already existing apart-
ments to a condominium form of ownership would clearly constitute a
restraint or alienata_on of the right of a property owner to legally
dispose of his property in any manner he chooses. There are, of
course, regulations and requirements that must be met as will be
discussed hereinaf ter.
5ubd ivision Controls
As pointed out in a League of California Cities Attorneys Paper
prepared in 1968, the heart of the dilemma regarding condominiums
relates to subdivision control.. The State Subdivision P1ap Act
declares that a condominium is a subdivision. Based upon that
assertion, some title companies, lending institutions and munici-
palities have held that in all cases, whether new construction or
conversion of existing buildings, a subdivision map must be filed.
Several examples are of interest. In 1966, after the
that language in the State law, ~i-~e City Attorney for
Los Angeles ruled that condominiums were not subject
adoption of
the City of
to the filing
3
Conversion of Apartments to Condominiums
August 8, 1972
Page Three .
of subdivision maps if, in fact, the property proposed for develop-
ment had previously been subdivided and he refused to process sub-
division maps. T_n 1972, that position has been substantially changed
and the City of Las Angeles now adopts subdivision maps and imposes
all cond~_tions relating to subdivision development, including park
land dedication fees.
As Council is aware, legislation was introduced which would specifically
exempt such conversions wherein subdivision rnaps were filed from the
park land dedication in lieu fee requirement. That bill is still in
the local government committee. Further, the City of Los Angeles'
Gity Council rejected local legislation to that .effect.
However, as previously indicated, it
shared by the .attorneys in the League
the park land dedication requirements
to the situation of the conversion of
structures. As indicated hereinafter
meat of condominiums are suggested.
is the opinion of this office,
of_ California Cities, that
were never intended to reach
a form of o~•rnership on existing
alternate proposals for treat-
Several of the lending institutions and title companies in San Diego
County, up until last year, have insisted that a subdivision map
was required both for the construction of new condominiums as well
as conversion of existing apartment buildings. That position has
been totally reversed, except in the case of FHA financing. FHA
does require the filing of a subdivision map. Again, Mr. Alan Perry
indicates that FF~A is not properly apprised of the law and he is
confident that they could be persuaded to drop that requirement.
The City Attorney in San Diego has ruled that no subdivision map
is required if either (1) the new condominium or proposed conversion
is being undertaken on property that is a lot of record, or (2) is
a legal building site by virtue of existence prior to subdivision
requirement. It is the opinion of both r~Ir. Perry and myself that
that exemption is too broad and contrary to law.
A subdivision map should be required unless the building site is
already a lot of record. This now seems to be the majority point
of view throughout the state. 'therefore, as in the case of the
Continental Apartments, a subdivision map would not legally be
required. In the case of the Tree Haven project, FHA has imposed
that as a requirement.
Conversion of Apartments to Condominiums
August &, 1.972
Page Four '
Proposed Regulations of Condominium Conversions
It has previously been noted that the City of Torrance, California
has been presumed by many commentators to possess the most stringent
regulations of condominiuz;z projects to be found. However, an examin-
ation of the so-called condominium regulations of Torrance indicates
that they simply have a planned unit development ordinance, similar
to that which exists in our own `Coning Ordinance, but it makes specific
reference to the condominium form of ownership. As this office has
previously indicated, such a reference is meaningless; therefore, it
is the opinion of this office that the City of Torrance in fact has
no direct regulation of condominium projects and, as mentioned herein-
above, it is not possible to impose differing regulations on condomin-
iums than apartment buildings, insofar as zoning regulations such
as floor area requirements, side yard requirements, etc.
Regulations can and should be enforced in three areas primarily:
1. Undergrounding of Utilities.
It is the opinion of this office that the imposition. of a
requirement to underground utilities at the time of the
conversion to a condominium project, subject to the same
regulations as for any new construction, would be desirable
primarily because of the probable acceptance of such a
requirement as a desirable sales feature, as well as the
public interest of early undergrpunding of all utility lines.
2. Park Land or Capital Improvement Fees
Since a subdivision map is not legally required in the
conversion of existing apartments to condominiums under the
circumstances set forth above, park land fees could not be
obtained and even where a subdivision map is filed, it was
never intended that such dedication or in lieu fee require-
ments be imposed. Therefore, it is recommended that the
New Construction Tax Ordinance be amended to require payment
of fees for the development of public facilities at the time
the condominium form of o~,mership is instituted.
3. Landscaping and Parking.
Special provisions should be imposed for landscaping and
parking at the time of conversion to condominiums to insure
that any deficiencies which may exist in older apartment
developments are corrected.
3
Conversion of Apartments to Condominiums
August ~, 1972
Page Five
It should be noted tl7at none of these suggested regulations would
be any different from regulations currently imposed upon new
construction of rnultiple family dwellings or new construction of
condominiums of any nature.
Attached are proposed ordinance revisions.
GDL: j ss
Attachments
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