BILL NUMBER: AB 763 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 16, 2007
INTRODUCED BY Assembly Member Saldana
FEBRUARY 22, 2007
An act to amend Sections 66452.5, 66452.8, 66452.9, 66459, and
66499.37 of, to add Sections 66452.11 and 66452.12 to, and to repeal
and add Section 66427.1 of, the Government Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 763, as amended, Saldana. Condominium conversion: tenant
notification.
The Subdivision Map Act prohibits a legislative body from
approving a final map for a subdivision to be created from the
conversion of residential real property into a condominium project, a
community apartment project, or a stock cooperative project, unless
the legislative body finds that there has been compliance with
certain tenant notice requirements .
This bill would recast the specified prohibition and would make
other, technical changes to related provisions of existing law.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 66427.1 of the Government Code is repealed.
SEC. 2. Section 66427.1 is added to the Government Code, to read:
66427.1. (a) The legislative body shall not approve a final map
for a subdivision to be created from the conversion of residential
real property into a condominium project, a community apartment
project, or a stock cooperative project, unless it finds as follows:
(1) Each tenant of the proposed condominium, community apartment
project, or stock cooperative project, and each person applying for
the rental of a unit in the residential real property, has received
or will have received all applicable notices and rights now or
hereafter required by this chapter or Chapter 3 (commencing with
Section 66451).
(2) Each of the tenants of the proposed condominium, community
apartment project, or stock cooperative project has received or will
receive each of the following notices:
(A) Written notification, pursuant to Section 66452.9, of
intention to convert, provided at least 60 days prior to the filing
of a tentative map pursuant to Section 66452.
(B) Ten days' written notification that an application for a
public report will be, or has been, submitted to the Department of
Real Estate, that the period for each tenant's right to purchase
begins with the issuance of the final public report, and that the
report will be available on request.
(C) Written notification that the subdivider has received the
public report from the Department of Real Estate. This notice shall
be provided within five days after the date that the subdivider
receives the public report from the Department of Real Estate.
(D) Written notification within 10 days after approval of a final
map for the proposed conversion.
(E) One hundred eighty days' written notice of intention to
convert, provided prior to termination of tenancy due to the
conversion or proposed conversion pursuant to Section 66452.11, but
not before the local authority has approved a tentative map for the
conversion. The notice given pursuant to this paragraph shall not
alter or abridge the rights or obligations of the parties in
performance of their covenants, including, but not limited to, the
provision of services, payment of rent, or the obligations imposed by
Sections 1941, 1941.1, and 1941.2 of the Civil Code.
(F) Notice of an exclusive right to contract for the purchase of
his or her respective unit upon the same terms and conditions that
the unit will be initially offered to the general public or terms
more favorable to the tenant. The exclusive right to purchase shall
commence on the date the subdivision public report is issued, as
provided in Section 11018.2 of the Business and Professions Code, and
shall run for a period of not less than 90 days, unless the tenant
gives prior written notice of his or her intention not to exercise
the right.
(b) The written notices to tenants required by subparagraphs (A)
and (B) of paragraph (2) of subdivision (a) shall be deemed satisfied
if those notices comply with the legal requirements for service by
mail.
(c) This section shall not diminish, limit or expand, other than
as provided herein, the authority of any city, county, or city and
county to approve or disapprove condominium projects.
(d) If a rental agreement was negotiated in Spanish, Chinese,
Tagalog, Vietnamese, or Korean, all required written notices
regarding the conversion of residential real property into a
condominium project, a community apartment project, or a stock
cooperative project shall be issued in the tenant's primary language.
SEC. 3. Section 66452.5 of the Government Code is amended to read:
66452.5. (a) (1) The subdivider, or any tenant of the subject
property, in the case of a proposed conversion of residential real
property to a condominium project, community apartment project, or
stock cooperative project, may appeal from any action of the advisory
agency with respect to a tentative map to the appeal board
established by local ordinance or, if none, to the legislative body.
(2) The appeal shall be filed with the clerk of the appeal board,
or if there is none, with the clerk of the legislative body within 10
days after the action of the advisory agency from which the appeal
is being taken.
(3) Upon the filing of an appeal, the appeal board or legislative
body shall set the matter for hearing. The hearing shall be
set held within 30 days after the date of a
request filed by the subdivider or the appellant. If there is no
regular meeting of the legislative body within the next 30 days for
which notice can be given pursuant to Section 66451.3, the appeal may
be heard at the next regular meeting for which notice can be given,
or within 60 days from the date of the receipt of the request,
whichever period is shorter. Within 10 days following the conclusion
of the hearing, the appeal board or legislative body shall render its
decision on the appeal.
(b) (1) The subdivider, any tenant of the subject property, in the
case of a conversion of residential real property to a condominium
project, community apartment project, or stock cooperative project,
or the advisory agency may appeal from the action of the appeal board
to the legislative body. The appeal shall be filed in writing with
the clerk of the legislative body within 10 days after the action of
the appeal board from which the appeal is being taken.
(2) After the filing of an appeal, the legislative body shall set
the matter for hearing. The hearing shall be set
held within 30 days after the date of the request filed by
the subdivider or the appellant. If there is no regular meeting of
the legislative body within the next 30 days for which notice can be
given pursuant to Section 66451.3, the appeal may be heard at the
next regular meeting for which notice can be given, or within 60 days
from the date of the receipt of the request, whichever period is
shorter. Within 10 days following the conclusion of the hearing, the
legislative body shall render its decision on the appeal.
(c) (1) If there is an appeal board and it fails to act upon an
appeal within the time limit specified in this chapter, the decision
from which the appeal was taken shall be deemed affirmed and an
appeal therefrom may thereupon be taken to the legislative body as
provided in subdivision (b) of this section. If no further appeal is
taken, the tentative map, insofar as it complies with applicable
requirements of this division and any local ordinance, shall be
deemed approved or conditionally approved as last approved or
conditionally approved by the advisory agency, and it shall be the
duty of the clerk of the legislative body to certify or state that
approval, or if the advisory agency is one which is not authorized by
local ordinance to approve, conditionally approve, or disapprove the
tentative map, the advisory agency shall submit its report to the
legislative body as if no appeal had been taken.
(2) If the legislative body fails to act upon an appeal within the
time limit specified in this chapter, the tentative map, insofar as
it complies with applicable requirements of this division and any
local ordinance, shall be deemed to be approved or conditionally
approved as last approved or conditionally approved, and it shall be
the duty of the clerk of the legislative body to certify or state
that approval.
(d) (1) Any interested person adversely affected by a decision of
the advisory agency or appeal board may file an appeal with the
legislative body concerning any decision of the advisory agency or
appeal board. The appeal shall be filed with the clerk of the
legislative body within 10 days after the action of the advisory
agency or appeal board that is the subject of the appeal. Upon the
filing of the appeal, the legislative body shall set the matter for
hearing. The hearing shall be set held
within 30 days after the date of a request filed by the subdivider or
the appellant. If there is no regular meeting of the legislative
body within the next 30 days for which notice can be given pursuant
to Section 66451.3, the appeal may be heard at the next regular
meeting for which notice can be given, or within 60 days from the
date of the receipt of the request, whichever period is shorter. The
hearing may be a public hearing for which notice shall be given in
the time and manner provided.
(2) Upon conclusion of the hearing, the legislative body shall,
within 10 days, declare its findings based upon the testimony and
documents produced before it or before the advisory board or the
appeal board. The legislative body may sustain, modify, reject, or
overrule any recommendations or rulings of the advisory board or the
appeal board and may make any findings that are not inconsistent with
the provisions of this chapter or any local ordinance adopted
pursuant to this chapter.
(e) Each decision made pursuant to this section shall be supported
by findings that are consistent with the provisions of this division
and any local ordinance adopted pursuant to this division.
(f) Notice of each hearing provided for in this section shall be
sent by United States mail to each tenant of the subject property, in
the case of a conversion of residential real property to a
condominium project, community apartment project, or stock
cooperative project, at least three days prior to the hearing. The
notice requirement of this subdivision shall be deemed satisfied if
the notice complies with the legal requirements for service by mail.
Pursuant to Section 66451.2, fees may be collected from the
subdivider or from persons appealing or filing an appeal for expenses
incurred under this section.
SEC. 4. Section 66452.8 of the Government Code is amended to read:
66452.8. (a) Commencing at a date not less than 60 days prior to
the filing of a tentative map pursuant to Section 66452, the
subdivider or his or her agent shall give notice of the filing, in
the form outlined in subdivision (b), to each person applying after
that date for rental of a unit of the subject property immediately
prior to the acceptance of any rent or deposit from the prospective
tenant by the subdivider.
(b) The notice shall be as follows:
""To the prospective occupant(s) of
_______________________________________________:
(address)
The owner(s) of this building, at (address), has filed or plans to
file a tentative map with the (city, county, or city and county) to
convert this building to a (condominium, community apartment, or
stock cooperative project). No units may be sold in this building
unless the conversion is approved by the (city, county, or city and
county) and until after a public report is issued by the Department
of Real Estate. If you become a tenant of this building, you shall be
given notice of each hearing for which notice is required pursuant
to Sections 66451.3 and 66452.5 of the Government Code, and you have
the right to appear and the right to be heard at any such hearing.
_______________________________
(signature of owner or owner's
agent)
_______________________________
(dated)
I have received this notice on_________________.
(date)
_______________________________
(prospective tenant's
signature)''
(c) Failure by a subdivider or his or her agent to give the notice
required in subdivision (a) shall not be grounds to deny the
conversion. However, if the subdivider or his or her agent fails to
give notice pursuant to this section, he or she shall pay to each
prospective tenant who becomes a tenant and who was entitled to the
notice, and who does not purchase his or her unit pursuant to
subparagraph (F) of paragraph (2) of subdivision (a) of Section
66427.1, an amount equal to the sum of the following:
(1) Actual moving expenses incurred when moving from the subject
property, but not to exceed one thousand one hundred dollars
($1,100).
(2) The first month's rent on the tenant's new rental unit, if
any, immediately after moving from the subject property, but not to
exceed one thousand one hundred dollars ($1,100).
(d) The requirements of subdivision (c) constitute a minimum state
standard. However, nothing in that subdivision shall be construed to
prohibit any city, county, or city and county from requiring, by
ordinance or charter provision, a subdivider to compensate any
tenant, whose tenancy is terminated as the result of a condominium,
community apartment project, or stock cooperative conversion, in
amounts or by services which exceed those set forth in paragraphs (1)
and (2) of that subdivision. If that requirement is imposed by any
city, county, or city and county, a subdivider who meets the
compensation requirements of the local ordinance or charter provision
shall be deemed to satisfy the requirements of subdivision (c).
SEC. 5. Section 66452.9 of the Government Code is amended to read:
66452.9. (a) Pursuant to subparagraph (A) of paragraph (2) of
subdivision (a) of Section 66427.1, the subdivider shall give notice
60 days prior to the filing of a tentative map pursuant to Section
66452 in the form outlined in subdivision (b), to each tenant of the
subject property.
(b) The notice shall be as follows:
""To the occupant(s) of
_______________________________________________:
(address)
The owner(s) of this building, at (address), plans to file a
tentative map with the (city, county, or city and county) to convert
this building to a (condominium, community apartment, or stock
cooperative project). You shall be given notice of each hearing for
which notice is required pursuant to Sections 66451.3 and 66452.5 of
the Government Code, and you have the right to appear and the right
to be heard at any such hearing.
_______________________________
(signature of owner or owner's
agent)
_______________________________
(date)''
The written notices to tenants required by this section shall be
deemed satisfied if the notices comply with the legal requirements
for service by mail.
SEC. 6. Section 66452.11 is added to the Government Code, to read:
66452.11. (a) Pursuant to the provisions of subparagraph (E) of
paragraph (2) of subdivision (a) of Section 66427.1, the subdivider
shall give written notice of the intent to convert 180 days prior to
the termination of tenancy in the form outlined in subdivision (b),
to each tenant of the subject property.
(b) The notice shall be as follows:
""To the occupant(s) of
_______________________________________________:
(address)
The owner(s) of this building, at (address), plans to convert this
building to a (condominium, community apartment, or stock
cooperative project). This is a notice of the owner's intention to
convert the building to a (condominium, community apartment, or stock
cooperative project).
A tentative map to convert the building to a (condominium,
community apartment, or stock cooperative project) was approved by
the City on _________. If the City approves a final map, you may be
required to vacate the premises, but that cannot happen for at least
180 days from the date this notice was served upon you.
Any future notice given to you to terminate your tenancy because
of the conversion cannot be effective for at least 180 days from the
date this notice was served upon you. This present notice is not a
notice to terminate your tenancy; it is not a notice that you must
now vacate the premises.
_______________________________
(signature of owner or owner's
agent)
_______________________________
(date)''
The written notices to tenants required by this section shall be
deemed satisfied if such notices comply with the legal requirements
for service by mail.
SEC. 7. Section 66452.12 is added to the Government Code, to read:
66452.12. (a) Pursuant to subparagraph (F) of paragraph (2) of
subdivision (a) of Section 66427.1, the subdivider shall give written
notice on the date of issuance of the subdivision public report to
each tenant of his or her exclusive right for at least 90 days to
contract for the purchase of his or her respective unit in the form
outlined in subdivision (b).
(b) The notice shall be as follows:
""To the occupant(s) of
_______________________________________________:
(address)
The owner(s) of this building, at (address), have received the
final subdivision report on the proposed conversion of this building
to a (condominium, community apartment, or stock cooperative
project). Commencing on this date you have the exclusive right for 90
days to contract for the purchase of your rental unit upon the same
or more favorable terms and conditions than the unit will initially
be offered to the general public.
_______________________________
(signature of owner or owner's
agent)
_______________________________
(date)''
The written notices to tenants required by this section shall be
deemed satisfied if the notices comply with the legal requirements
for service by mail.
SEC. 8. Section 66459 of the Government Code is amended to read:
66459. (a) If a final map has been approved for a condominium
project, community apartment project, or stock cooperative project,
and the subdivider or subsequent owner of the project, on or after
January 1, 1993, rents a dwelling in that project, he or she shall,
prior to offering the separate interest for sale to the general
public, deliver the following notice, printed in at least 14-point
bold print, prior to the execution of the rental agreement:
TO THE PROSPECTIVE TENANTS OF
_______________________________
(address)
THE UNIT YOU MAY RENT HAS BEEN APPROVED FOR SALE TO THE PUBLIC AS
A CONDOMINIUM PROJECT, COMMUNITY APARTMENT PROJECT, OR STOCK
COOPERATIVE PROJECT (WHICHEVER APPLIES). THE RENTAL UNIT MAY BE SOLD
TO THE PUBLIC, AND, IF IT IS OFFERED FOR SALE, YOUR LEASE MAY BE
TERMINATED. YOU WILL BE NOTIFIED AT LEAST 90 DAYS PRIOR TO ANY
OFFERING TO SELL. IF YOU STILL LAWFULLY RESIDE IN THE UNIT, YOU WILL
BE GIVEN A RIGHT OF FIRST REFUSAL TO PURCHASE THE UNIT.
________________________________
(signature of owner or owner's
agent)
________________________________
(dated)
(b) The condominium project, community apartment project, or stock
cooperative project shall not be referred to in a lease or rental
agreement as an "apartment" or "apartments" on or after the date of
the approval by the local agency of the final map for the condominium
project, community apartment project, or stock cooperative project
in which the final map was approved on or after January 1, 1993.
(c) Any tenant of a condominium project, community apartment
project, or stock cooperative project pursuant to this section shall
be given at least 90 days' written notice of the intention to sell
the rental unit to the general public. This subdivision shall not
alter or abridge the rights or obligations of the parties in
performance of their covenants, including, but not limited to, the
provision of services, payment of rent, or other obligations imposed
by Sections 1941, 1941.1, and 1941.2 of the Civil Code.
(d) Any tenant who lawfully resides in a condominium project,
community apartment project, or stock cooperative project pursuant to
this section shall be given a right of first refusal by the
subdivider or subsequent owner of the project for the purchase of his
or her rental unit upon the same terms and conditions that the unit
will be initially offered to the general public or terms and
conditions more favorable to the tenant. This right to purchase shall
run for a period of 90 days from the date of the notice, unless the
tenant gives written notice within the 90-day period of his or her
intention not to exercise that right.
(e) Failure to comply with this section shall not invalidate the
transfer of title to real property.
(f) Failure by a subdivider or his or her agent to give the notice
required in subdivision (a) shall not be grounds to deny the
conversion. However, if the subdivider or his or her agent fails to
give notice pursuant to this section, he or she shall pay to each
prospective tenant who becomes a tenant and who was entitled to that
notice, and who does not purchase his or her unit pursuant to
subparagraph (F) of paragraph (2) of subdivision (a) of Section
66427.1, an amount equal to the sum of the following:
(1) Actual moving expenses incurred when moving from the subject
property, but not to exceed one thousand one hundred dollars
($1,100).
(2) The first month's rent on the tenant's new rental unit, if
any, immediately after moving from the subject property, but not to
exceed one thousand one hundred dollars ($1,100).
(g) This section shall not apply to any of the following:
(1) An owner of four dwelling units or less.
(2) Transfers pursuant to court order, including, but not limited
to, transfers ordered by a probate court in the administration of an
estate, transfers by any foreclosure sale after default, transfers by
any foreclosure sale after default in an obligation secured by a
mortgage, or transfers by a sale under a power of sale after a
default in an obligation secured by a deed of trust or secured by any
other instrument containing a power of sale, and any subsequent
transfer by a mortgagor or beneficiary of a deed of trust who accepts
a deed in lieu of foreclosure or purchases the property at a
foreclosure sale.
(3) Transfers by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust. For
purposes of this paragraph, a "fiduciary" means a state- or federally
chartered bank, trust company, savings association, savings bank,
credit union, or industrial loan company.
SEC. 9. Section 66499.37 of the Government Code is amended to
read:
66499.37. Any action or proceeding to attack, review, set aside,
void, or annul the decision of an advisory agency, appeal board, or
legislative body concerning a subdivision, or of any of the
proceedings, acts, or determinations taken, done, or made prior to
the decision, or to determine the reasonableness, legality, or
validity of any condition attached thereto, including, but not
limited to, the approval of a tentative map or final map, shall not
be maintained by any person unless the action or proceeding is
commenced and service of summons effected within 90 days after the
date of the decision. Thereafter all persons are barred from any
action or proceeding or any defense of invalidity or unreasonableness
of the decision or of the proceedings, acts, or determinations. The
proceeding shall take precedence over all matters of the calendar of
the court except criminal, probate, eminent domain, forcible entry,
and unlawful detainer proceedings.