HomeMy WebLinkAbout13 - Condo Conversion Parking StandardsCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 13
May 10, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PLANNING DEPARTMENT
Jaime Murillo, Assistant Planner
(949) 644 -3209 jmurillo @city.newport- beach.ca.us
SUBJECT: Code Amendment No. 2005 -001 amending Title 19 of the
Municipal Code Related to Parking Standards for
Condominium Conversions (PA 2005 -015)
ISSUE
Should the City Council increase the minimum parking requirements for
condominium conversion projects?
RECOMMENDATION
Staff recommends that the City Council approve Code Amendment No. 2005 -001
by introducing Ordinance No. 2005- amending the Condominium
Conversion Regulations of Title 19 of the Municipal Code to increase the
minimum required parking standards to:
a) Current standards
OR
b) Two spaces per unit.
DISCUSSION
Background
Per the request of the City Council, the Planning Department presented a report
to the City Council on November 9, 2004, regarding condominium conversion
regulations (Exhibit 2). Staff highlighted the evolution of condominium conversion
standards over time since conversions were first allowed in 1978. The focus of
the discussion and presentation was related to parking standards.
Condominium Conversion Parking Standards
May 10, 2005
Page 2
With the intent to facilitate the conversion of smaller rental units to potential
affordable ownership units, and while maintaining a balance of rental and
ownership opportunities, the City Council in 1994 removed what was believed to
be unnecessary and untimely review procedures for condominium conversions.
For the purposes of this discussion, the most relevant change to the conversion
procedures was to change the minimum required number of parking spaces to
those requirements which were in effect at the time of the original construction,
provided that a minimum of 1 space per unit was provided.
The effects of the changes made in 1994 to the conversion procedures were also
reviewed at the November 9, 2004 Council meeting. Of the 151+ units approved
for conversion since the 1994 changes, 73.5% occurred within the Corona del
Mar area. The area of West Newport was originally anticipated to see a large
increase in the number of conversions and an increase in home ownership, an
effect which was anticipated to improve the character of the area by providing a
greater sense of pride in ownership and a vested interest in the maintenance of
the property. However, the reality was that only 24 units were converted in that
area, and only a few had significant exterior enhancements.
The area of Corona del Mar has experienced a large increase in the number of
rental units being converted into condominiums. This has become a concern of
many residents because of the effects that the minimum parking requirement of
only one parking space per unit has on the already impacted streets of the area.
Another emerging concern is that the relaxed parking standards have provided
an incentive to convert nonconforming buildings as opposed to the demolition of
older units with the reconstruction of new housing stock. Additionally, with the
multiple ownerships that conversions create, significant redevelopment of sites
becomes nearly impossible, and older non - conforming buildings are preserved.
Since the 1994 update to the condominium conversion standards has not had the
desired effect of promoting home ownership in the West Newport area, the
Council decided that staff should return with changes to the parking standards for
condominium conversions.
Analysis
Parking History
For the purposes of determining the potential impacts of amending the parking
standards for condominium conversions, it is important to understand the history
and evolution of the general parking standards throughout the years. Depending
on the minimum parking requirement Council chooses to adopt, approval of
condominium conversions may prove to be difficult for structures built prior to the
year in which the increase in parking standards took place.
Condominium Conversion Parking Standards
May 10, 2005
Page 3
In July of 1980, a significant change in the minimum parking standards occurred
when the City Council adopted an ordinance pertaining to the parking
requirements within residential districts. The minimum parking requirements were
increased to 1.5 spaces per unit for residentially zoned properties throughout the
City.
In November of 1989, the new Multi - Family Residential (MFR) zoning district was
incorporated into the City's Zoning Code, which increased the minimum parking
standards. Soon after, the City began phasing out R -3 and R-4 properties by
rezoning these districts to the new MFR zoning district. Additionally in 1990, the
City amended the R -2 district parking regulations to require a minimum of 2
spaces per unit within the Corona del Mar area. The tables below provide a
breakdown of the changes in parking standards and a comparison of the
minimum parking spaces a project would be required to have:
Parkina Standards Comparison
Proiect Comparison Usina Minimum Parkina Standards
1936;'
;
21980• ?;
.1989;-
X1990'
1997�d-
SFR:
0
�.
2 145
2 145
2(1.5)
Current
'SFR,
No Min.
1
1.5
1.5
1.5
2
Duplex
Min.
1
1.5
1.5
1.5
1.5 (2 per
4-Plex
1 0
per unit
per unit
per unit
(CDM 2
unit within
5 -flex
0
15
18(7.5)
12.5
per unit)
CDM and
areas of
coastal
zone
Triplex
No Min.
1
1.5
7 spaces
7 spaces
7 spaces
per unit
per unit
(2 per unit
(2 per unit
(2 per unit
t
+ 1 uest
+ 1 uest
+ 1 uest
4+ Units
No Min.
1
1.5
2.5
2.5
2.5
'r
per unit
per unit
per unit
per unit
per unit
Proiect Comparison Usina Minimum Parkina Standards
1936
;, '.'T?�"'`.-
`^:";;; rum;,
989
.:�i.�'R��`•,•..�,�?''.�'
ti'1990.F:� .
:�:
- 1997 ""
�'Cu�re
SFR:
0
1
2 145
2 145
2(1.5)
2
0.
2
3
3
4 CDM
4
.Duplex
Triplex
0
3
5(4.5)
7
7
7
4-Plex
1 0
14
16
1 10
10
10
5 -flex
0
15
18(7.5)
12.5
12.5
1 2.5
Condominium Conversion Parking Standards
May 10, 2005
Page 4
Based on the 2000 Census data, the average household size in the City of
Newport Beach was 2.25 persons per household, from which one can make a
reasonable assumption that each household has a minimum of two cars.
Amendment Options
Section 19.64.070(A) of Title 19 currently reads as follows:
"The number of off -street parking spaces that were required at the time of
onginal construction shall be provided on the same property to be
converted to condominium purposes, and the design and location of such
parking shall be in conformance with the provisions of Chapter 20.66 of
the Municipal Code (Off -Street Parking and Loading Regulations). Under
no circumstance shall there be less than one covered parking space per
dwelling unit."
Staff is proposing several amendment options to Section 19.64.070(A):
Option 1 — Increase Parking for Conversions to Current Standards
"The number of off -street parking spaces shall be provided in
conformance with the provisions of Chapter 20.66 of the Municipal Code
(Off -Street Parking and Loading Regulations) in effect at the time of
conversion."
This option will result in the conversion of rental units constructed before 1989 to
become increasingly more difficult, if not impossible, as projects constructed prior
to 1989 do not typically meet current standards. Since very few apartments have
been constructed since 1989, future conversions will be limited to duplexes and
other small projects that were designed to exceed standards in effect at the time
of construction. The resulting effect will be that conforming buildings will remain
relatively easy to convert to condominiums; however, older non - conforming
buildings will be required to be redeveloped with conforming structures in order to
be subdivided into condominiums.
Option 2 — Increase Minimum Parking to 2 Spaces per Unit
"The number of off -street parking spaces that were required at the time of
original construction shall be provided on the same property to be
converted to condominium purposes, and the design and location of such
parking shall be in conformance with the provisions of Chapter 20.66 of
the Municipal Code (Off -Street Parking and Loading Regulations). Under
no circumstance shall there be less than two parking spaces per
dwelling unit, including one covered."
Condominium Conversion Parking Standards
May 10, 2005
Page 5
This option would allow the conversion of rental units to condominiums if the
project provides a minimum of 2 spaces per unit. This proposal would have
almost the same effect as Option 1; however it would allow the conversion of
buildings which supply 2 spaces per unit but do not provide any guest parking.
Therefore, this option would allow some apartment buildings to convert to
condominiums. As noted in the effects of Option 1, this proposal would effectively
prevent the conversion of units built prior to 1989 if the building was constructed
consistent with the minimum parking standards.
Option 3 — Increase Minimum Parking to 1.5 Spaces per Unit
"The number of off - street parking spaces that were required at the time of
original construction shall be provided on the same property to be
converted to condominium purposes, and the design and location of such
parking shall be in conformance with the provisions of Chapter 20.66 of
the Municipal Code (Off - Street Parking and Loading Regulations). Under
no circumstance shall there be less than 1.5 parking spaces per
dwelling unit, including one covered."
As a third alternative, a minimum of 1.5 spaces per unit can be required. This, in
effect, would potentially allow for the conversions of rental units that were
constructed after 1980. The parking standards adopted in 1980 were significantly
higher than previous parking standards; however, not as demanding as the
current standards derived from the 1989 update.
Option 4 — No Change in Minimum Parking
The City Council may wish to maintain the current standards for condominium
conversions which are to require the number of off - street parking spaces that
were required at the time of original construction, so long as a minimum of 1
space per unit is provided.
Summary
By maintaining the 1 space per unit minimum, or adopting the 1.5 space per unit
amendment option for condominium conversions, the City risks preserving older
non - conforming housing stock that is more reliant on street parking and built to
older Building Code standards.
Adopting the higher standards currently in effect (Option 1) will still allow the
conversion of duplexes and triplexes, which typically meet the current parking
standards. However, it would nearly eliminate conversion opportunities for
apartments as few have been built since 1989 and few provide more than 2
spaces per unit. Discouraging the conversion of apartments would be consistent
with Housing Element goals and policies to provide a variety of housing types
Condominium Conversion Parking Standards
May 10, 2005
Page 6
and maintain rental opportunities. On the other hand, facilitating the conversion
of apartments by allowing conversions when 2 parking spaces per unit are
provided (Option 2) might provide opportunities for first -time buyers. This option
also would support the Housing Element goal to provide a variety of housing
types.
Environmental Review
The proposed action is not defined as a project under the California
Environmental Quality Act (CEQA) because it involves general policy and
procedure making activities not associated with a project or a physical change in
the environment (Section 15378 of the CEQA Guidelines).
Public Notice
Notice is not required for amendments to Title 19 of the Municipal Code.
However, the item appeared upon the agenda for this meeting, which was posted
at City Hall and on the City website.
Prepared by:
Submitted by:
atme Murillo atty Temple
Assistant Planner Planning Director
Exhibits
1A. Draft Ordinance No. _
1 B. Draft Ordinance No.
2. November 9, 2004 Staff Report
3. November 9, 2004 City Council Minutes
4. November 9, 2004 PowerPoint Presentation
FAUSERS\PLN\Shared\PA's\PAs - 2005\PA2005- 015 \PC051005rpt.doc
Exhibit 1A
Current Standards
Draft Ordinance No.
1
ORDINANCE 2005-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH AMENDING SECTION 19.64.070 OF
TITLE 19 (SUBDIVISON CODE) RELATED TO THE
PARKING STANDARDS FOR CONDOMINIUM
CONVERSIONS. [CODE AMENDMENT NO. 2005 -0011
WHEREAS, in 1994, the City Council adopted amendments to the condominium
conversions standards of Title 19 in an effort to facilitate the conversion of smaller rental
units to potential affordable ownership units, and while maintaining a balance of rental and
ownership opportunities; and
WHEREAS, the amendments to the condominium conversion standards were
anticipated to increase home ownership which eventually would improve the visual
character of the area by providing a greater sense of pride in ownership and a vested
interest in the maintenance of the property; and
WHEREAS, per the request of the City Council, on November 9, 2004, the Planning
Department presented a status report on condominium conversions and the effects that the
1994 changes had on structures throughout the City; and
WHEREAS, the City Council determined that the desired effects of the original
objectives of the 1994 Code Amendment were not being met; and
WHEREAS, the City Council directed the Planning Department to prepare a study
analyzing various amendment options to Section 19.64.070 (Standards for Condominium
Conversions) of Title 19 specifically related to the minimum off - street parking standards;
and
WHEREAS, the City Council on May 10, 2005, held duly noticed public hearings
regarding this code amendment; and
WHEREAS, by maintaining the 1 space per unit minimum for condominium
conversions, the City risks preserving older non - conforming housing stock that is more
reliant on street parking and built to older building code standards; and
WHEREAS, the proposed action is not defined as a project under the California
Environmental Quality Act (CEQA) because it involves general policy and procedure
making activities not associated with a project or a physical change in the environment
(Section 15378 of the CEQA Guidelines).
THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES HEREBY ORDAIN AS
FOLLOWS:
SECTION 1: Title 19 (Subdivision Code) of the Newport Beach Municipal Code shall
be amended to revise Section 19.64.070.A as follows:
A. The number of off - street parking spaces shall be provided in conformance
with the provisions of Chapter 20.66 of the Municipal Code (Off - Street Parking
and Loading Regulations) in effect at the time of conversion
All other provisions of Chapter 19.64 shall remain unchanged.
SECTION 2: The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. This Ordinance shall be published once in the official newspaper of the
City, and the same shall become effective thirty (30) days after the date of its adoption.
This Ordinance was introduced at a regular meeting of the City Council of the City of
Newport Beach held on May, 10 2005, and adopted on the 24th day of May 2005, by the
following vote, to wit:
AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSENT COUNCIL MEMBERS
MAYOR
ATTEST:
CITY CLERK
ra]
Exhibit 1 B
2 Parking Spaces Per Unit
Draft Ordinance No.
10
ORDINANCE 2005-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH AMENDING SECTION 19.64.070 OF
TITLE 19 (SUBDIVISON CODE) RELATED TO THE
PARKING STANDARDS FOR CONDOMINIUM
CONVERSIONS. [CODE AMENDMENT NO. 2005 -0011
WHEREAS, in 1994, the City Council adopted amendments to the condominium
conversions standards of Title 19 in an effort to facilitate the conversion of smaller rental
units to potential affordable ownership units, and while maintaining a balance of rental and
ownership opportunities; and
WHEREAS, the amendments to the condominium conversion standards were
anticipated to increase home ownership which eventually would improve the visual
character of the area by providing a greater sense of pride in ownership and a vested
interest in the maintenance of the property; and
WHEREAS, per the request of the City Council, on November 9, 2004, the Planning
Department presented a status report on condominium conversions and the effects thatthe
1994 changes had on structures throughout the City; and
WHEREAS, the City Council determined that the desired effects of the original
objectives of the 1994 Code Amendment were not being met; and
WHEREAS, the City Council directed the Planning Department to prepare a study
analyzing various amendment options to Section 19.64.070 (Standards for Condominium
Conversions) of Title 19 specifically related to the minimum off - street parking standards;
and
WHEREAS, the City Council on May 10, 2005, held duly noticed public hearings
regarding this code amendment; and
WHEREAS, by maintaining the 1 space per unit minimum for condominium
conversions, the City risks preserving older non - conforming housing stock that is more
reliant on street parking and built to older building code standards; and
WHEREAS, the proposed action is not defined as a project under the California
Environmental Quality Act (CEQA) because it involves general policy and procedure
making activities not associated with a project or a physical change in the environment
(Section 15378 of the CEQA Guidelines).
THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES HEREBY ORDAIN AS
FOLLOWS:
SECTION 1: Title 19 (Subdivision Code) ofthe Newport Beach Municipal Code shall
be amended to revise Section 19.64.070.A as follows:
A. The number of off - street parking spaces that were required at the time of
original construction shall be provided on the same property to be converted
to condominium purposes, and the design and location of such parking shall
be in conformance with the provisions of Chapter 20.66 of the Municipal Code
(Off - Street Parking and Loading Regulations). Under no circumstance shall
there be less than two parking spaces per dwelling unit, including one
covered.
All other provisions of Chapter 19.64 shall remain unchanged.
SECTION 2: The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. This Ordinance shall be published once in the official newspaper of the
City, and the same shall become effective thirty (30) days after the date of its adoption.
This Ordinance was introduced at a regular meeting of the City Council of the City of
Newport Beach held on May, 10 2005, and adopted on the 24th day of May 2005, by the
following vote, to wit:
AYES. COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSENT COUNCIL MEMBERS
8ffie-
ATTEST:
CITY CLERK
12-
Exhibit 2
November 9, 2004 Staff Report
►3
• CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item: SS3
November 9, 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Planning Department
James Campbell, 949- 644 -3210, icamabell na.city.newaort- beach.ca.us
SUBJECT: Review of current condominium conversion regulations
Provide direction staff on whether changes to the condominium conversion regulations
are desired.
DISCUSSION
• Standards and permit procedures for the conversion of apartments to condominiums
were first adopted by the City in 1978. The minimum requirement at that time for the
conversion of an existing apartment project was that the buildings needed to be in
"basic compliance" with the current Building Code and only one parking space per unit
must be provided. The Planning Commission was empowered to waive or modify
requirements of the Building Code if that would be no more detrimental to adjacent
Properties than would be If strict compliance were required.
In 1979, the City amended the conversion process by requiring a Use Permit and a
Tentative Map. Compliance with Building and Zoning regulations was also required
(including parking) and the standards were those applicable at the time of approval of
the conversion. Residential conversions were not permitted on lots smaller than 5,000
square feet and the modification or waiver of Building and Zoning standards was
changed to require a 415 vote of the Planning Commission. Conformance with the
General Plan was necessary and a vacancy rate standard was applied for all requests.
The parking standards at that time were 1 garage space per unit, except for projects
with more than 4 units where 2 spaces were required for each unit above 4. The parking
standard was changed in 1980 to require 1.5 spaces per unit. In 1989, the standard was
increased again where 2 spaces per unit were required for duplexes, 7 total spaces for
triplex and 2.5 spaces per unit for larger projects. As the standards were changed to
require more parking, conversions became less likely because the newer parking
• requirements were difficult to meet on developed properties.
I
Condominium Conversions
November 9, 2004
Page 2
The City substantially updated the conversion process in 1994. First, the requirement •
for a tentative map was eliminated and the Use Permit was replaced with a
Condominium Conversion permit. Second, the prohibition of conversions on lots less
than 5,000 square feet was eliminated. Third, the number of parking spaces required
was changed to the number of spaces required at the time of the rental project's original
construction, provided that a minimum of 1 space per unit was provided. Next, the
vacancy rate test was made applicable only to projects with 15 or more units. The City
also introduced the requirement to separate and underground utilities. The net effect of
these changes made it possible for the conversion of smaller projects, primarily
consisting of duplexes and triplexes.
The stated purpose of the 1994 changes to the process was 'to facilitate the conversion
of smaller rental units to potential affordable units while maintaining a balance of rental
and ownership opportunities.' Additionally, the Council desired 'to remove unnecessary
and timely review procedures for condominium conversions, while at the same time
insuring that converted units maintain minimum standards of development which will
provide a safe and efficient living environment' Another goal was to improve home
ownership rates.
Of the conversion applications reviewed since 1995, the vast majority have been
duplexes with several triplexes and a handful of mixed use buildings. Only one project •
larger than a triplex has been evaluated and is currently pending review by the City
Council and is scheduled for November 23, 2004. The goal to facilitate the conversion
of smaller projects has definitely been realized as none of the projects considered would
have been eligible prior to the 1994 amendment and all have been smaller in size.
Staff has also completed a review of conversions since 1995 and it is estimated that
60°x6 of converted units are owner - occupied today. These 90 units are not necessarily
the net increase in owner - occupied units as it is not known how many owners occupied
the units prior to the conversions. The owner -occupied rate of all condominiums within
the City is approximately 6696 by comparison. Given today's housing values, most of
the converted units would not be considered affordable in the traditional sense, but the
units are more affordable than other ownership opportunities within Newport Beach. It
can also be said that the process has led to some re- investment in older properties with
upgrades to utility connections, reconstruction of public improvements and interior
improvements voluntarily undertaken by project applicants.
Updated Subdivision Code
In 2001, the City adopted a comprehensive update of the Subdivision Code that
required the approval of tentative parcel or tract maps for condominium conversions.
The current standards are attached. The requirement for a tentative map allows the City
to require the construction or reconstruction of missing, damaged or nonconforming •
public improvements (i.e. sidewalks, streets, curb and gutter, etc.) abutting the property
Condominium Conversions
November 9, 2004
Page 3
• under consideration of a condominium conversion. No other substantive changes were
made. However, there is a recently discovered (and unintended) ambiguity in the
language added related to the applicability of current Zoning standards as opposed to
the Zoning standards in effect at the time of the original construction, which was clearly
the standard before the 2001 code amendments. Staff will be forwarding an amendment
to the Subdivision Code to clarify the issue along with several other minor "fixes" as is
typically necessary after most comprehensive updates.
Environmental Review
This is a discussion item and is not subject to environmental review.
Public Notice
Notice of this study session item appeared on the agenda for the meeting, which was
posted in accordance with applicable requirements.
Alternatives
The City Council may take several actions:
. 1. Direct staff to prepare an ordinance amendment changing condominium
conversion standards.
2. Provide direction to the Planning Commission to guide further consideration of
the matter.
3. Direct staff to make no changes other than clarification of language in the
Subdivision Code.
Prepared by: Submitted by:
James Campb Il, Seni Planner Patricia emple, Planning Mrector
ir�TTII"17 iM
A. Chapter 19.64 — Conversion of Rental Units to Ownership
1 J
KI
19.64.010
Chapter 19.64
CONVERSION OF RENTAL UNITS TO
Sections:
19.64.010
19.64.020
19.64.030
19.64.040
19.64.050
19.64.060
19.64.070
19.64.080
19.64.010 Purpose and Intent.
A. Purpose. The purpose of this chapter is to:
1. Regulate Conversions. Provide standards and
criteria for regulating the conversion ofrental units to
condominium, community apartment or stock
cooperative types of ownership and for determining
when such conversions are appropriate; and
2. Mitigate Hardships. Mitigate any hardships to
tenants caused by their displacement.
B. Intent. The intent of this chapter is as follows:
I. Residential Conversions. The City Council
finds that residential condominiums, community'
apartment and stock cooperative types of ownership,
as defined in Section 1351 of the Civil Code, differ
from rental apartments with respect to design, type of
construction and maintenance controls, and therefore
that the development standards in this chapter are
necessary for the protection of the community,
existing rental tenants and the purchasers of the
converted units. It is also the intent of these
•regulations to maintain a balanced mix between
(N .pm Bach son
ownership and rental housing in order to assure the
development of a variety of housing types to serve
the needs of the community.
2. Nonresidential Conversions. The CityCouncil
also finds that nonresidential condominiums,
community apartment and stock cooperativetypes of
ownership, as defined in Section 1351 of the Civil
Code, differ from rental traits with respect to design,
type of construction and maintenance controls, and
therefore that the development standards in this
chapter are necessary for the protection of the
community, existing rental tenants and the
purchasers of the converted units.
C. Applicability of Sections. All sections in this
chapter apply to the conversion of residential units.
All sections except 19.64.040, 19.64.050 and
19.64.110 apply to the conversion of nonresidential
units. (Ord. 2001 -18 § 2 (Exh. Z.A -1) (part), 2001)
19.64.020 Definitions.
For purposes of this chapter and this title, the
following terms shall have the meanings indicated:
A. Condominium, Community Apartments and
Stock Cooperatives. The term "condominium" shall
encompass condominium projects, community
apartment projects and stock cooperatives, as defined
in Section 1351 of the California Civil Code.
B. Organisational Documents. The term
"organisational documents" means the declaration of
restrictions, articles of incorporation, by -laws and
any contracts for the maintenance, management or
operation of all or any part of a project.
C. Project. The term "project" means the entire
parcel of real property proposed to be used or
divided, as land or airspace, into two or more unitsaz
a condominium.
D. Unit. The term "unit" means the particular
area of land or airspace that is designed, intended or
used for exclusive possession or control of individual
owners or occupier.
E. Vacancy Rate. The term "vacancy rate" means
the number of vacant multiple dwellings being
offered for rent or lease in the City ofNewport Beach
shown as a percentage of the total number of
multiple dwellings offered for or under rental or lease
674.6
l�
Purpose and Intent.
Definitions.
General Requirements.
Tenant Notification
(66427.1,66452.8, 66452.9).
Tenant Purchase Option
(66427.1).
Review Procedures (66427.1,
664272).
Standards for Condominium
Conversions.
Modification or Waiver of
Conversion Standards.
19.64.090
Condominium Conversion Fees.
19.64.100
Exemptions.
19.64.110
Agreement to Retain Rental
•
Housing (6645250).
19.64.050
19.64.060
19.64.070
19.64.080
19.64.010 Purpose and Intent.
A. Purpose. The purpose of this chapter is to:
1. Regulate Conversions. Provide standards and
criteria for regulating the conversion ofrental units to
condominium, community apartment or stock
cooperative types of ownership and for determining
when such conversions are appropriate; and
2. Mitigate Hardships. Mitigate any hardships to
tenants caused by their displacement.
B. Intent. The intent of this chapter is as follows:
I. Residential Conversions. The City Council
finds that residential condominiums, community'
apartment and stock cooperative types of ownership,
as defined in Section 1351 of the Civil Code, differ
from rental apartments with respect to design, type of
construction and maintenance controls, and therefore
that the development standards in this chapter are
necessary for the protection of the community,
existing rental tenants and the purchasers of the
converted units. It is also the intent of these
•regulations to maintain a balanced mix between
(N .pm Bach son
ownership and rental housing in order to assure the
development of a variety of housing types to serve
the needs of the community.
2. Nonresidential Conversions. The CityCouncil
also finds that nonresidential condominiums,
community apartment and stock cooperativetypes of
ownership, as defined in Section 1351 of the Civil
Code, differ from rental traits with respect to design,
type of construction and maintenance controls, and
therefore that the development standards in this
chapter are necessary for the protection of the
community, existing rental tenants and the
purchasers of the converted units.
C. Applicability of Sections. All sections in this
chapter apply to the conversion of residential units.
All sections except 19.64.040, 19.64.050 and
19.64.110 apply to the conversion of nonresidential
units. (Ord. 2001 -18 § 2 (Exh. Z.A -1) (part), 2001)
19.64.020 Definitions.
For purposes of this chapter and this title, the
following terms shall have the meanings indicated:
A. Condominium, Community Apartments and
Stock Cooperatives. The term "condominium" shall
encompass condominium projects, community
apartment projects and stock cooperatives, as defined
in Section 1351 of the California Civil Code.
B. Organisational Documents. The term
"organisational documents" means the declaration of
restrictions, articles of incorporation, by -laws and
any contracts for the maintenance, management or
operation of all or any part of a project.
C. Project. The term "project" means the entire
parcel of real property proposed to be used or
divided, as land or airspace, into two or more unitsaz
a condominium.
D. Unit. The term "unit" means the particular
area of land or airspace that is designed, intended or
used for exclusive possession or control of individual
owners or occupier.
E. Vacancy Rate. The term "vacancy rate" means
the number of vacant multiple dwellings being
offered for rent or lease in the City ofNewport Beach
shown as a percentage of the total number of
multiple dwellings offered for or under rental or lease
674.6
l�
agreement in the City. Said vacancy rate shall be as
established once each year, in April, by survey of
fifteen (IS) percent of the City's rental units. (Ord.
2001 -18 § 2 (Exh. ZA -I) (part), 2001)
19.64.030 General Requirements.
A. Where Permitted. If approved under the
provisions of this chapter and Title 20 (Planning and
Zoning), residential condominium conversions may
be allowed in any district in which residential uses
are permitted, including planned communities,
except within the R -1.5 District (Balboa Island).
Nonresidential condominium conversions may be
allowed in any district in which such uses are
permitted.
B. Subdivision Required. All condominium
conversions subject to this chapter shall require
approval of tentative and final subdivision maps.
C. Review Responsibilities. Condominium
conversions containing five or more units shall be
approved by the Planning Commission via atentative
tract map. Condominium projects or conversions
containing four or less units shall be approved by the
Modifications Committee via atentative parcel map.
D. Applicable Standards. Condominium
conversion projects shall conform to: (1) The
applicable standards and requirements of the zoning
district in which the project is located at the time of
approval Per Title 20 (Planning and Zoning); and (2)
the applicable provisions of this Subdivision Code.
(Ord. 2001 -18 § 2 (Exh. ZA -1) (part), 2001)
19.64.040 Tenant Notification (66427.1,
66452.8, 66452.9)_
Applicants for conversion projects shall be
responsible for notifying existing and prospective
rental tenants as follows:
A. Existing Tenants. At least sixty (60) days prior
to the filing of an application for conversion of rental
or lease property, the applicant or the applicant's
agent shall give notice of such filing in the form set
forth in Section 66452.9 of the Subdivision Map Act
to each tenant of the subject property. Further, if the
conversion project is approved, the applicant shall
give all tenants a minimum of one hundred eighty
19.64.020
(180) days advance notice of the termination of their
tenancy. •
B. Prospective Tenants. At least sixty (60) days
prior to the filing of an application for conversion of
rental or lease property, the applicant or the
applicant's agent shall give notice of such filing in
the form set forth in Section 66452.8 of the
Subdivision Map Act to each person applying after
such date for rental or lease of a wait of the sub)ect
property. Pursuant to the Subdivision Map Act,
failure of an applicant to provide such notice shall
not be grounds to deny the conversion but shall make
the applicant subject to the penalties specified in
Section 66452.8 of the SMA.
C. Evidence of Tenant Notification Each
application for conversion shall include evidence to
the satisfaction of the Planning Director that the
notification requirements specified in subsections (A)
and (B) of this Section have been or will be satisfied.
(Ord. 2001 -18 § 2 (Exh. ZA -1) (part), 200 1)
19.64.050 Tenant Purchase Option (66427.1).
The property owner shall provide tenants with an
exclusive right to purchase his or her respective unite
upon the same or more favorable terms and
conditions than those on which such unit will be
initially offered to the general public. Such right shall
run for a period of not less than ninety (90) days
from the date of issuance of the subdivision public
report pursuant to Section 11018.2 of the Business
and Professions Code, unless the tenant gives prior
written notice of his or her intention not to exercise
the right. (Ord. 2001 -18 § 2 (Exh. ZA -1) (part),
2001)
19.64.060 Review Procedures (66427.1,
66427.2).
A. List of Tenants. In addition to the standard
application requirements for tentative maps, the
applicant shall submit a complete mailing list of all
tenants occupying the subject property and two
corresponding sets of stamped addressed envelopes.
The Director shall mail a public hearing notice for
the tentative. map hearing to each tenant on the
674-7
•
(Newport Bwh 5.02)
10
19.64.060
•mailing list in accordance with the procedures of
Chapter 19.12.
B. Tentative Map Review. Tentative maps shall
be approved or denied by the tentative map decision
making body. Decisions on the conversion of
existing buildings into condominiums or stock
cooperatives shall be governed by the provisions and
limitations of Section 664272 of the Subdivision
Map Act.
C. Council Findings for Residential Conversions.
For residential conversions, no final map for a
condominium conversion shall be approved unless
the City Council makes all of the findings set forth in
Section 66427.1 of the Subdivision Map Act
j regarding tenant notification, right to purchase and
other requirements.
D. Disapproval Based on Vacancy Rate. In
accordance with General Plan policies, where it is
proposed to convert an existing •. residential
development containing fifteen (15) or more units to
condominium units, the decision making body shall
disapprove, without prejudice, any application for
.condominium conversion if the rental dwelling unit
vacancy rate in the City at the time of the public
hearing is equal to or less than five percent.
Notwithstanding the preceding, the decision making
body may approve a condominium conversion if it
determines that either of the following overriding
considerations exist:
1. The project will minimize the effect on
dwelling unit vacancy rate, and otherwise
substantially comply with the intent of this chapter,
or
2. Evidence has been submitted that at least two-
thirds of the existing tenants have voted to
recommend approval of the conversion. (Ord. 2001-
18 § 2 (F.xh. ZA -1) (part), 2001)
19.64.070 Standards for Condominium "
Conversions.
Condominium conversion projects shall conform
to the following requirements and the decision
making body shall make specific findings as to such
conformance in any action approving acondominium
• conversion:
(Mewpw a =h 5.0r)
674 -8
A. The number of off - street parking spaces that
were required at the time of the original construction
shall be provided on the same property to be
converted to condominium purposes, and the design
and location of such parking shall be in conformance
with the provisions of Chapter 20.66 (Off -Street
Parking and Loading Regulations). Under no
circumstance shall there be less than one covered
parking space per dwelling unit.
B. Each dwelling unit within a building shall
have a separate sewer connection to the City sewer.
C. Each sewer lateral shall be retrofitted/fitted
with a cleanout at the property line.
D. Each unit shall maintain a separate water
meter and water meter connection.
E. The electrical service connection shall comply
with the requirements of Chapter 15.32 of the
Municipal Code.
F: -The applicant for a condominium conversion
shall request a special inspection from the Building
Department for the purpose of identifying any
building safety violations. The applicant shall correct
all identified safety violations prior to approval of a
final map for the condominium conversion.
G. Permanent lot stakes and tags shall be
installed at all lot corners by a licensed surveyor or
civil engineer unless otherwise required by the City
Engineer.
H.. For residential conversions, the project shall
be consistent with the adopted goals and policies of
the General Plan, particularly with regard to the
balance and dispersion of housing types within the
City.
1. The establishment, maintenance or operation
of the use or building applied for shall not, under the
circumstances of the particular case, be detrimental
to the health, safety, peace, comfort and general
welfare of persons residing or working in the
neighborhood of such proposed use or be detrimental
or injurious to property and improvements in the
neighborhood or the general welfare of the City.
(Ord. 2001 -18 § 2 (Exh. ZA -1) (part), 2001)
19.64.080 Modification or Waiver of
Conversion Standards.
A. Parking. The decision making body may
modify or waive the parking requirements of
subsection 20.64.070(A) in accordance with the
waiver procedures of Chapter 20.66 of the Zoning
Code.
B. Sewer Connections. The decision malting
body may modify or waive the requirement for
separate sewer comteebons per subsection
20.64.070(B) if it finds that the modification or
waiver will not be materially detrimental to the
residents or tenants of the property or surrounding
properties, nor to public health or safety. (Ord. 2001-
18 § 2 (Exh. ZA -1) (part), 200 1)
19.64.090 Condominium Conversion Fees.
In addition to other required fees, condominium
conversion applications shall be accompanied by a
special Building Department inspection fee,
established by resolution of the City Council, for the
purpose of identifying building safety violations
within the project. (Ord. 2001 -18 § 2 (Exh. ZA -1)
(part), 2001)
19.64300 Exemptions.
A. Park Fees. For residential developments, the
conversion of existing renal housing to a
condominium project shall be exempt from the
requirements ofChapter 1952 (Park Dedications and
Fees) if, on the date of conversion, the rental units
are at least five years of age and no additional
dwelling units are to be added as part of the
conversion.
B. Traffic PhasingOrdirsnce .The conversion of
existing rental units to a condominium project shall
be exempt from the requirements of Chapter 15.40
(Traffic Phasing Ordinance) if the proposed
conversion will not add more than ten dwelling units
to a residential development or will not add more
than ten thousand (10,000) square feet of gross floor
arse to a nonresidential development. (Ord. 2001 -18
§ 2 (Exh. ZA-1) (part), 2001)
674-9
19.64.080
19.64.110 Agreement to Retain Rental •
Housing (6(45250).
In addition to the provisions in this chapter
regarding condominium conversions, the City may,
in correction with the approval of a tentative or final
map for a new residential condominium project
requiring approval of a tentative or final map
pursuant to this Code, enter into a binding.agreemem
with the subdivider mandating that the units be first
made available for rental housing for a period of not
less than ten years from the date a certificate of
occupancy has been issued for the units within the
development subject to the provisions of Section
66452.50 of the Subdivision Map Act (Ord. 2001 -18
§ 2 (Exh. ZA-1) (Part), 2001)
•
•
Mewpwt Seca tm)
Exhibit 3
November 9, 2004 City Council Minutes
2j
City of Newport Beach
Study Session Minutes
November 9, 2004
pA 40t5 -015
Q A a oa5 - cso l INDEX
instructors using City facilities. Director Knight stated that the City's municipal
tyde ohibits the use of public property for commercial gain. Council Member
Nichols a such instructors could rent City facilities. Director Knight
responded in the a 've and explained that a fee would be charged according
to the rate schedule that is m 1.for all of the City's facilities and parks. She
added that the fees vary by use, from I rofit to commercial. In response to
Council Member Nichols' question, Director Km . lained that a permit is
required for groups of more than 150 people and is suggeste oups that want
to guarantee exclusive use of an area.
3. REVIEW OF CURRENT CONDOMINIUM CONVERSION REGULATIONS.
Senior Planner Campbell stated that the item is being addressed at the current
meeting at the request of Mayor Ridgeway. Using a PowerPoint presentation, he
stated that the regulations for condominium conversions were enacted in 1978,
and amended in 1979. The City's parking standards increased over time to 1989
when 2 spaces were required per unit for duplexes, 7 spaces for triplexes and 2.5
spaces per unit for projects in excess of three units. He stated that these parking
requirements in association with condominium conversion requirements made it
more difficult to convert projects to condominiums if the required parking couldn't
be provided. The condominium conversion standards were changed significantly
in 1994 and continue to be the requirements in place today. Senior Planner
Campbell stated that an intent of the changes in 1994 was to promote the
conversion of smaller projects, which was expected to preserve the
rental/ownership balance and promote home ownership, especially in the West
Newport area. Another intent of the changes was to remove and eliminate any
unnecessary or untimely review processes, while still maintaining suitable living
environments.
Senior Planner Campbell reported that since 1994, 151 units have been approved
for conversion. Nearly all of the conversions have been for duplexes and most are
within the coastal zone. He displayed a map, which showed that 73.5% of the
conversions have occurred in the Corona del Mar area. Only 24 units have been
converted in West Newport, 2 on Lido Isle, 2 on Balboa Island and 16 on the
peninsula. He stated that his observation of the conversions on the peninsula is
that these buildings appear to be in better condition than the units adjacent to
them, but only a few have had significant exterior enhancements. Senior Planner
Campbell stated that staff is looking for direction from the City Council, and noted
that requests for larger projects are being received. He asked if the current
standards are appropriate for the larger projects, and if enhancements to the
exterior and interior are expected.
Council Member Webb confirmed that 2.5 parking spaces are currently required
per unit for new condominium projects. The parking requirements for
condominium conversions are those that were in place at the time of the original
construction, or a minimum of 1 space per unit.
Council Member Nichols asked if condominium projects that are not sub - dividable
have legal documents, such as covenants. Senior Planner Campbell stated that
some do and some don't. New projects are required to have Covenants, Conditions
and Restrictions (CC &R's). Planning Director Temple stated that the basic
minimum requirement is a Department of Real Estate (DRE) report, which is a
(100 -2004)
Volume 56 - Page 1306 ;22
City of Newport Beach
Study Session Minutes
November 9, 2004
report that is made to the State regulating agency for real estate. Projects of five
or more units are required to develop and record CC &R's. She added that the
DRE report provides the legal description as to what each unit is comprised of and
is recorded with the County assessor. Council Member Nichols asked if the City
should require that any legal documents be provided. Acting City Attorney
Clauson stated that the City's only requirements are related to the City's own
planning and zoning laws. The City does not get involved with State
requirements.
Council Member Daigle asked what the benefits of the more relaxed standards
are. Senior Planner Campbell stated that additional conversions might result in
structures that are nonconforming being brought up to current code.
Mayor Ridgeway stated that the intent of the new standards was to create home
ownership in West Newport, but that any standards have to be applied Citywide.
He asked Planning Director Temple for her opinion on the relaxing of the
condominium conversion standards. Planning Director Temple stated that, at the
time, she was not in favor of relaxing the standards as it related to compliance
with certain development standards and, particularly, parking. She explained
that with split ownership, both entities have to agree to any significant
redevelopment and that this, essentially, preserves buildings that might have
been torn down and redeveloped with a conforming building in an earlier
timeframe. She additionally noted that the effect in West Newport has been
limited.
Council Member Webb asked if a substantial number of the conversions in Corona
del Mar were new units. Planning Director Temple responded in the negative,
and stated that even projects that are started with a duplex building permit that
convert during the construction process are considered new condominiums, not
conversions. To be considered a conversion, the project would have to be totally
finished and achieve the final building permit prior to the application for a
condominium.
Council Member Nichols asked if the conversions in Corona del Mar are
predominantly those that were deficient in parking. Planning Director Temple
stated that it depends on the age of the unit, but that not requiring more parking
spaces does provide an incentive to convert a building as opposed to tearing it
down and building a new condominium. Council Member Nichols noted that the
streets in Corona del Mar are getting more crowded.
Mayor Ridgeway asked Planning Director Temple if relaxing the parking standard
encourages condominium conversions. She stated that it provides an incentive to
retain the nonconforming building by utilizing the conversion process. Mayor
Ridgeway stated that the parking element of the condominium conversion
regulations needs to be revisited.
Council Member Webb stated that in the conversion process, it doesn't appear that
the opportunity to solve any parking problems is being offered.
Council Member Rosansly stated that the intent was to promote home ownership,
which he felt was to provide greater pride in ownership and a vested interest in
maintaining the property, particularly in West Newport. He asked if the
INDEX
Volume 56 - Page 1307 2`3
City of Newport Beach
Study Session Minutes
November 9, 2004
o►
differences noted on the peninsula were significant. Senior Planner Campbell
responded in the negative and explained that although some did have significant
exterior enhancements, the majority of the improvements were only noticeable.
Council Member Rosansky noted that the objective of relaxing the standards
doesn't appear to have been met and agreed that the issue should be revisited.
Acting City Attorney Clauson noted that the improvement of properties wasn't the
only objective, it was also to encourage people to live in the homes that they
bought. She explained that this was expected to decrease rentals and the party
atmosphere that exists in West Newport. Additionally, she stated that enough
time hasn't passed to know if the converted properties will be kept up.
Council Member Nichols stated that the condominiums that have been converted
are not as nice as the condominiums that have been rebuilt to the new standards.
Senior Planner Campbell agreed and explained that the converted units are built
at a lesser standard. Council Member Nichols stated that the older converted
units also appear to have more vehicles. Additionally, he noted that the
commercial properties that qualified not to provide parking have more desirable
and valuable properties.
Mayor Ridgeway noted that some conversions did occur in the Dover area, but he
didn't see them on the map that was shown earlier. Planning Director Temple
explained that they were converted before there was an expressed code on
conversions, so were dealt with as tract maps. As far as direction to staff, Mayor
Ridgeway stated that he'd like a reevaluation of the parking issues. Additionally,
he noted that the intent of the changes in 1994 have not occurred.
Council Member Webb stated that the new standards have been given ten years to
work. He asked Public Works Director Badum, a resident in West Newport, if he
noticed any significant changes in the area. Public Works Director Badum stated
that at the time the new standards were being looked at, he was also concerned
that the properties would never be redeveloped again. This was the same concern
shared by the Planning Director. He stated that he has not seen any significant
changes in his neighborhood and agreed that it might be time to revisit the issue.
Mayor Pro Tem Bromberg agreed with Mayor Ridgeway that the parking
component of the condominium conversion standards should be looked at. He
didn't know if it would necessarily need to be changed, but agreed that it should at
least be looked at.
Mayor Ridgeway stated that he would hope to receive more public input when the
issue is revisited.
Council Member Daigle stated that part of the success of the condominium
conversions in Corona del Mar is due to that fact that the area has a lot to offer
young professionals and condominiums provide first time home ownership
opportunities for these people.
Mayor Ridgeway stated that these young professionals own two cars.
Council Member Rosansky stated that since the objectives arent being met, the
issue should be revisited. He stated that it hasn't necessarily had a negative
impact in West Newport, but that it might elsewhere in the City.
Volume 56 - Page 1308
W
City of Newport Beach
Study Session Minutes
November 9, 2004
INDEX .
Planning Director Temple stated that staff will return to the City Council with a
recommendation for a code amendment. She stated that in addition to the
existing regulations, two alternatives would be offered. One would change the
minimum, parking requirement to 1.5 spaces per unit and another would use the
code in effect at the time of the original construction. She stated that an analysis
of the alternatives would also be provided and the information should provide a
good forum for discussion.
Council Member Nichols stated that there are problems with the conversions in
Corona del Mar, and that commercial parking competes with residential parking.
- None.
- at 5:50 p.m. to Closed Session.
The agenda for the Stu n was posted on November 3, 2004, at 2:35 p.m
on the City Hall Bulletin rd located outside of the City of Newport Beach
Administration Building.
Recording SecreVqEy
City Clerk
Mayor
Volume 56 - Page 1309 ZS
Exhibit 4
November 9, 2004 PowerPoint Presentation
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