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Home My WebLink AboutTC Ord 1991-08-01 ORDINANCE NO. 31Z N.S. AN URGENCY ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ADOPTING AN INTERIM MORATORIUM ON THE CONVERSION OF RENTAL UNITS TO UNDMDED INTEREST PROJECTS The Town Council of the Town of Tiburon does ordain as follows: SECTION 1. Title. This Ordinance shall be known as the Undivided Interest Project Conversion Interim Moratorium. SECTION 2. Purpose. The purpose of this ordinance is to temporarily prohibit the conversion of certain residential rental dwelling units to Undivided Interest Projects while the Town further studies the possible impacts of such conversions and the appropriate means of regulating them. This ordinance furthers the goals and policies contained in the Town's General Plan Housing Element regarding the preservation of existing rental housing stock. SECTION 3. Findin2s. The Town Council of the Town of Tiburon makes the following findings: (a) The Housing Element of the Tiburon General Plan recognizes the importance of and need to maintain the existing rental housing stock in the Town of Tiburon. Specific provisions of the Housing Element state: 1) The goal of protecting and conserving the Town's existing housing stock (Goal H-D); 2) The policy of prohibiting conversion of existing multiple family rental units to market rate condominium units unless the Town's vacancy rate is above 4% percent (Policy H-9); 3) The policy of retaining existing rental units (Policies H-ll and H-26, and Implementing Program H-d). 1 (b) The Town's housing projection needs, as determined by the Association of Bay Area Governments (ABAG), show that the Town has an existing shortage of affordable units which will increase in the next five years. The Town is committed to trying to meet the needs of all economic segments of the community. The Housing Element states (on page 15) that "[fjor affordable housing, rental units are preferred, since rental housing requires little capital to access." (c) The conversion of rental units to owner-occupied units also creates zoning and building issues because owner-occupied units can create conditions different than those found in rental units such as density, parking, compliance with building codes, control and maintenance of common facilities, etc. (d) The conversion of rental units to owner-occupied units can also create hardships on tenants unable to afford ownership or to find suitable replacement housing within Tiburon or southern Marin County. (e) In order to protect against the problems listed above, the Town Council has previously acted to regulate the conversion of existing rental units to owner-occupied residences by adopting Policy H-9 of the General Plan Housing Element, Chapter 16, Section 4.06 of the Tiburon Municipal Code (the Town's zoning ordinance) and Chapter 14 of the Tiburon Municipal Code (the Town's subdivision ordinance) to regulate the conversion of existing structures to condominiums, community apartment projects or stock cooperatives (collectively known as common interest developments). (f) The conversion of existing rental units to community apartment projects (defined as an undivided interest in land coupled with the right of exclusive occupancy of any apartment located thereon) is regulated by the Town's ordinances listed above. However, based on decisions of the California Courts of Appeal, these regulations may be circumvented merely by establishing the exclusive right of occupancy by some means other than the grant deed. (g) This type of conversion to owner-occupied units (defined as Undivided Interest Projects for purposes of this ordinance) creates ownership interests and use patterns which closely resemble those of community apartments, stock cooperatives and condominiums, all of which are regulated by the Town's ordinances and the State Subdivision Map Act. Undivided Interest Projects are considered subdivisions under the State Subdivided Lands Act (Business and Professions Code Section 11000, et.seq.) (h) The conversion of existing rental units to owner-occupied Undivided Interest Projects will lead to the loss of rental housing stock and affordable units in the Town of Tiburon, thus making it more difficult for the Town to meet its obligations to provide a diverse mix of housing in the community. Such conversions 2 will displace current tenants. These conversions will also circumvent the Town's previous legislative efforts to address the changed conditions caused by conversions of multiple family dwellings from rental to owner-occupied units. (i) The Town recently became aware of an attempt to convert a large (26 unit) apartment complex to an Undivided Interest Project. While that particular attempt to convert is apparently no longer pending, it has made it clear that such conversions could occur in Tiburon, thereby circumventing the goals and policies of the Town's Housing Element. (j) The development of comprehensive legislation to address this issue requires time for study, evaluation and development. The Town Council of the Town of Tiburon finds that the potential conversion of rental units to Undivided Interest Projects presents a current and immediate threat to the public's health, safety and welfare. As recently as April 1991 the Town Council reaffirmed its commitment in the Housing Element of the General Plan to preserve all existing rental housing stock. The conversion of even one large apartment building would seriously undermine this policy and set a potentially harmful precedent. Furthermore, any such conversions which avoid the Town's existing condominium conversion ordinance would allow changes in use to occur without the Town's review of the building and its use. Any such conversions could also lead to the displacement of tenants. Therefore, the Town Council adopts this temporary and interim legislation pursuant to government code Section 65858 to ensure that prior to adoption of permanent legislation intended to address the issue, the public's health, safety and welfare are protected. SECTION 4. Definitions. (a) "Undivided Interest Project" means any parcel of land containing five or more residential dwelling units in which five or more individuals own an undivided interest coupled with the right of exclusive occupancy of any unit located thereon. For purposes of this ordinance, the individuals owning an undivided interest may do so as tenants in common, partners or any other means of ownership. SECTION 5. Prohibition of Conversion of Rental Units to Undivided Interest Projects. It shall be unlawful to sell or purchase or assist in the sale or purchase of any Undivided Interest Project while this ordinance is in effect. Any such transaction is hereby declared to be contrary to public policy and a public nuisance. Nothing in this Ordinance is intended to prohibit any sale or purchase of property otherwise regulated by the California Subdivision Map Act or the Davis-Sterling Common Interest Development Act. 3 SECTION 6. Exemotions. Any Undivided Interest Project in which the ownership interest was duly recorded and the agreement regarding exclusive occupancy was made on or before August 1, 1991, shall be exempt from the provisions of this ordinance. The burden of proof of the existence of an exemption shall be on the person claiming the exemption. Proof of such exemption shall be provided to the Town Attorney upon request. SECTION 7. Remedies. (a) The Town Attorney may bring an action for injunctive relief on behalf of the Town seeking to restrain or enjoin any violation of this Ordinance. (b) Any person threatened with eviction because of any violation of this ordinance may bring an action for injunctive relief to restrain or enjoin violation of this Ordinance. (c) The remedies provided by this Section shall be in addition to any other remedies provided by law. SECTION 8. Severability. If any section, subsection, clause, sentence, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The Town Council of the Town of Tiburon hereby declares that it would have passed this Ordinance, any section, subsection, sentence, clause or phrase thereof, irrespective of the fact that anyone or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional. SECTION 9. Effective Date - Ex,piration. Pursuant to the authority of Government Code Section 65858, this ordinance is adopted as an urgency ordinance and shall be effective immediately upon adoption, and before the expiration of fifteen (15) days after its passage the same shall be published, with the names of the members voting for and against the same, at least once in a newspaper of general circulation, published in the Town of Tiburon. The Ordinance shall expire and be of no further force or effect 45 days after the date of adoption unless subsequently extended pursuant to Government Code Section 65858. 4 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon on August 1, 1991, by the following vote: AYES: COUNCILMEMBERS: Friedman, Coxhead, Kuhn, Logan, Thayer NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ATTEST: ~7tt'~l4J~ TH RESE M. HENNESSY, TOWN C RK 5