Resolution 2005-59RESOLUTION NO. 2005-59
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY APPROVING M 05 -07, AN APPLICATION FOR
APPROVAL OF MODIFICATIONS TO THE CITY OF GILROY
RESIDENTIAL CONDOMINIUM CONVERSION POLICY TO
BETTER PROTECT AN ADEQUATE SUPPLY OF RENTAL
HOUSING UNITS.
WHEREAS, the City of Gilroy, the applicant, submitted M 05 -07, an application for approval
of modifications to the City of Gilroy Residential Condominium Conversion Policy, attached hereto
as Exhibit "A ", to better protect an adequate supply of rental housing units; and
WHEREAS, the Planning Commission held a duly noticed public hearing on July 7, 2005, at
which time the Planning Commission considered the public testimony, the staff report dated June 28,
2005 ( "Staff Report"), and all other documentation related to application M 05 -07 and recommended
that the City Council approve said application; and
WHEREAS, the City Council held a duly noticed public hearing on July 18, 2005, at which
time the City Council considered the public testimony, the Staff Report a follow -up staff report dated
July 8, 2005, and all other documentation related to application M 05 -07; and
WHEREAS, the location and custodian of the documents or other materials which constitute
the record of proceedings upon which this project approval is based is the office of the City Clerk.
NOW, THEREFORE, BE IT RESOLVED THAT:
The revised Residential Condominium Conversion Policy, M 05 -07, attached hereto as
Exhibit "A ", should be and hereby is approved.
\GBO \665008.1
081005-04706089 Resolution No. 2005 -59
PASSED AND ADOPTED this 1 st day of August, 2005, by the following vote:
AYES: COUNCIL MEMBERS: CORREA, DILLON, GARTMAN, MORALES,
VALIQUETTE, AND PINHEIRO
NOES: COUNCILMEMBERS: VELASCO
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
Pi4heiro, Mayor
ATT T•'
Rhonda Pellin, City Clerk
IGB01665008.1
081005-04706089
-2-
Resolution No. 2005 -59
EXHIBIT A
RESIDENTIAL CONDOMINIUM CONVERSION
POLIC'S
Draft `i, 18, U,�
In order to ensure an adequate supply of rental housing stock in Gilroy, all proposals for
conversion of existing apartments to residential condominium projects shall be reviewed for
conformance with this policy.
Application Submittal Requirements
➢ A completed tentative map application.
➢ A property report detailing the condition and useful life of the roof, foundation,
mechanical, electrical, plumbing, and structural elements of all existing buildings and
structures prepared by a certified engineer or architect.
➢ A detailed listing of any proposed changes to the buildings or common areas.
➢ A rental vacancy report completed within six months of the date of application submittal
that details the rental vacancy rate in Gilroy.
➢ A draft copy of the proposed CC &R's for the establishment of a Homeowner's
Association.
➢ A detailed purchase program to be made available to existing tenants.
➢ A detailed relocation assistance program for those tenants not purchasing a unit.
➢ A statement certifying that all tenants have been notified in writing of the intent to apply
for conversion at least thirty days prior to its actual filing.
➢ Any other application submittal information as deemed appropriate.
Conditions
1. Conversion of any existing structure or structures to a condominium or a community
apartment project shall comply with all requirements of the Housing Code, Fire Code,
Zoning Ordinance, General Plan and the Housing Element of the General Plan at the time
of conversion. In making such determination, the Planning Commission and City
Council should consider such factors as public health, safety and welfare as they apply to
each particular case.
2. Conversion of apartments to condominiums will be approved only when a rental unit
vacancy survey for Gilroy, completed no more than six months prior to public hearing,
indicates a rental vacancy rate greater than five percent (5 %).
3. Each condominium conversion shall meet all current parking requirements for new
development.
4. Each condominium conversion shall provide the following documents to the City prior to
final map approval and to individual unit purchasers prior to sale of the units:
Page 1 of 3
a. A copy of the conditions, covenants and restrictions for the condominium project.
b. A list of all services and facilities to be furnished to individual owners and a
statement of all fees and other conditions applicable to the use of such services
and facilities.
C. A report on the physical condition of the structures and mechanical equipment,
plus the estimated annual operating and maintenance costs for all common
facilities and services for the next three years as prepared or reviewed by a
professional management firm familiar with operating and maintenance costs of
similar property in the area.
d. A statement clarifying fef the residents' rights and obligations regarding all
common open spaces and facilities. No contract for management, operation, or
maintenance of common areas may extend more than thirty (30) days beyond the
time at which majority control of the homeowners association passes to individual
unit owners, unless approved by the homeowners association after majority
control has passed to individual unit owners.
e. A statement granting to each purchaser a one -year warranty on all appliances
within the individual unit and granting to the homeowners association and to all
purchasers of individual units a one -year warranty on all structures in the project
and on all electrical, heating, air - conditioning, plumbing, ventilation equipment,
and roofing.
5. Condominium conversions shall be evaluated in the same manner and extent as new
condominium projects, with updating and modernizing to the fullest extent feasible as
determined by the Planning Commission and the City Council.
6. All common areas shall be required to be refurbished to a condition acceptable to the
Planning Commission.
7. All conversions to condominiums shall meet the following requirements:
a. A one -hour fire wall between all units.
b. Utility meters (gas and electric) to serve individual units.
C. A water meter and valve for each unit.
d. Mechanical equipment shall be shock mounted such as air conditioning
units and domestic appliances, including other techniques to minimize
noise and vibration.
C. The developer shall provide for the necessary repair of roofs and exterior
finishes of the buildings to insure adequate protection for a minimum
period of five years form the date of conversion.
f. As a condition of subdivision, a homeowners association shall be
established assuming responsibility for maintenance of all common areas
and landscaping.
g. Each condominium conversion project shall also meet all requirements of
the California Subdivision Map Act (Government Code Section 66410, et.
seq.) and all other applicable State regulations.
Page 2 of 3
8. All tenants occupy.__D a complex to be converted shall be n,__.ted of the intent to convert
to condominiums at least sixty (60) days prior to submittal of an application to subdivide
and receive the eviction notice at least six months prior to the date of eviction. Such
notices shall be made pursuant to the California Subdivision Map Act (Government Code
Section 66410, et. seq.)
9. After tentative subdivision map approval by the planning Commission, no apartment
shall be leased to any person unless a written notice shall have been delivered to the
prospective lessee informing prospective tenant of the contemplated conversion.
10. Provided a tenant is not then in default under their rental arrangement, each tenant in a
building to be converted shall be given the right, for a period of ninety (90) days after
City approval of the final subdivision map for the conversion, to purchase his unit on
terms equal to or more favorable than the terms on which such unit is to be offered to the
general public. In the event the tenant does not purchase the unit, relocation assistance
shall be provided by the subdivider.
Page 3 of 3
I, RHONDA PELUN, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2005 -59 is an original resolution, or true and correct copy of a city resolution,
duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the
1 st day of August, 2005, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 26th day of September, 2005.
City Clerk of the City of Gilroy
(Seal)