BILL ANALYSIS
AB 763
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Date of Hearing: April 18, 2007
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Anna Marie Caballero, Chair
AB 763 (Saldana) - As Amended: April 16, 2007
SUBJECT : Condominium conversion: tenant notification.
SUMMARY : Creates new tenant notification requirements that must
be fulfilled prior to the approval of a final subdivision map
for the conversion of residential rental property into
condominiums, and makes other related changes to the Subdivision
Map Act. Specifically,
this bill :
1)Repeals the existing provisions of the Subdivision Map Act
(Map Act) concerning tenant notice and exclusive right to
purchase in condominium conversions.
2)Prohibits a local 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 it finds that each tenant of the proposed condominium,
community apartment project, or stock cooperative project, and
each person applying for the rental of a unit in such
residential real property, has received or will have received
all applicable notices and rights required by the applicable
sections of the Map Act.
3)Prohibits a local 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 it finds that 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 of intention to convert at least 60
days prior to the filing of a tentative map;
b) Ten days' written notification that an application for a
public report will be, or has been, submitted to the
Department of Real Estate (DRE), that each tenant's right
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to purchase period 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 DRE, to be provided within five days
of the date that the subdivider receives the public report
from DRE;
d) Written notification within 10 days of approval of a
final map for the proposed conversion;
e) 180 days' written notice of intention to convert prior
to termination of tenancy due to the conversion or proposed
conversion (but not before the local authority has approved
a tentative map for the conversion), which 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 or
payment of rent; and
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,
which shall commence on the date the subdivision public
report is issued, 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.
4)Deems these written notices to tenants to be satisfied if
those notices comply with the legal requirements for service
by mail.
5)Specifies that these provisions shall not diminish, limit or
expand, other than as provided by this section, the authority
of any city, county, or city and county to approve or
disapprove condominium projects.
6)Requires that, 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
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tenant's primary language.
7)Requires that a local legislative body that receives a request
from a subdivider or tenant for an appeal of a decision by a
local appeal board or legislative body to hold a hearing
within
30 days of receipt of the request.
8)Provides that, if there is no regular meeting of the
legislative body within the next 30 days for which notice can
be given, 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.
9)Requires the legislative body to render its decision on the
appeal within 10 days following the conclusion of the hearing.
10)Makes changes to model notice forms in the Map Act to reflect
the substantive changes in notification made by the bill.
11)Requires that any action taken to attack, review, set aside,
void, or annul the approval of a tentative map or parcel map
be commenced within 90 days of the date of the decision.
EXISTING LAW requires a subdivider who intends to convert
residential rental property to a condominium project, a
community apartment project, or a stock cooperative project to
provide specified notice to existing and prospective tenants.
FISCAL EFFECT : None
COMMENTS :
1)The conversion of rental property to condominiums is
considered to be a subdivision and subject to the Map Act.
Under current law, in order for a final subdivision map for a
condominium conversion to be approved the subdivider must give
prior notice to the tenants of the rental property to inform
them of the intent to convert and of certain rights accorded
to them by law. Failure by a subdivider to give specified
notices can render financial penalties to be paid to the
tenant.
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2)The author of AB 763 believes that the current notice
requirements in the Map Act are unclear in terms of both what
they are required to contain and the sequence in which they
are to be provided. According to the sponsor, tenants often
receive several notices on one day, one of which may be titled
"60 Day Notice," another "180 Day Notice," and yet another
"10 Day Notice," and all of them containing different and often
contradictory information. The ensuing confusion, to which
older or non-English fluent renters are particularly prone,
has led to tenants believing they have to move months before
that is in fact necessary, thereby forfeiting many of their
existing rights and benefits under state or local laws and
ordinances.
3)AB 763 proposes to improve the condominium conversion notice
process by deleting the existing notice provisions and
replacing them with new provisions that separate all of the
requirements into individual subsections and clarify what they
are to contain and when they are to be sent. AB 763 requires
that, in any case where the original rental agreement was
negotiated in Spanish, Chinese, Tagalog, Vietnamese, or
Korean, the written notices regarding the condo conversion
must also be issued in that language.
4)This bill is double-referred to the Committee on Housing and
Community Development.
REGISTERED SUPPORT / OPPOSITION :
Support
Asian Americans for Civil Rights & Equality
CA ACORN
CA Alliance of Retired Americans
CA Rural Legal Assistance Foundation
Conference of Delegates of CA Bar Associations
Congress of CA Seniors
Gray Panthers
Protection & Advocacy
Western Center on Law & Poverty
Opposition
None on file
AB 763
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Analysis Prepared by : J. Stacey Sullivan / L. GOV. / (916)
319-3958