BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 763|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 763
Author: Saldana (D), et al
Amended: 6/25/07 in Senate
Vote: 21
SENATE JUDICIARY COMMITTEE : 3-2, 6/19/07
AYES: Corbett, Kuehl, Steinberg
NOES: Harman, Ackerman
ASSEMBLY FLOOR : 73-0, 5/17/07 (Consent) - See last page
for vote
SUBJECT : Condominium conversion: tenant notification
SOURCE : Author
DIGEST : This bill revises and recasts provisions in the
Subdivision Map Act concerning the notice required to be
given to actual and prospective tenants of residential real
property subject to conversion to a condominium project, a
community apartment project, or a stock cooperative
project. This bill clarifies and adds, among other things,
the time period and form in which a tenant must receive
notice of their exclusive 90-day right to contract for the
purchase of their respective unit. This bill also requires
notices to be provided in the same language if the rental
agreement was negotiated in Spanish, Chinese, Tagalog,
Vietnamese, or Korean.
ANALYSIS : Existing law, the Subdivision Map Act,
CONTINUED
AB 763
Page
2
prevents a legislative body from approving a final map for
a subdivision created by the conversion of residential real
property into a condominium project, a community apartment
project, or a stock cooperative project unless it finds
that tenants have, or will have, received various notices.
This bill clarifies and recasts those requirements for the
approval of a final subdivision map by requiring each
tenant of the proposed condominium project, community
apartment project, or stock cooperative project to have, or
will have, received the following written notices:
1. Notice of intent to convert at least 60 days prior to
filing a tentative map.
2. 10-day notice that an application for a public report
will be, or has been, submitted to the Department of
Real Estate (DRE), that the period for the tenant's
right to repurchase begins with the issuance of the
public report, and that the report is available upon
request.
3. Notification within 10 days after approval of a final
map.
4. 180-day notice of intention to convert, prior to
termination of tenancy due to the conversion or proposed
conversion, but not before approval of a tentative map
for the conversion.
5. Notice of the exclusive right to contract for the
purchase of his/her respective unit on the same, or more
favorable, terms that will be initially offered to the
general public. That right shall commence from the date
of issuance of the subdivision public report, and shall
run for a period of not less than 90 days, as specified.
6. All other notices required by the Chapter.
This bill additionally requires tenants to receive written
notification that the subdivider has received the public
report from the DRE. That notice must be provided within
AB 763
Page
3
five days after the date the subdivider received the public
report from the DRE.
This bill deems notice requirements satisfied if the
notices comply with legal requirements for service by mail.
This bill specifically states that the notice provisions do
not diminish, limit, or expand, other than as provided in
the section, the authority to approve or disapprove
condominium projects.
This bill provides 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 shall be issued in
that language.
Existing law provides a statutory form for various notices
sent to tenants of residential real property concerning the
conversion of the property into a condominium project, a
community apartment project, or a stock cooperative
project.
This bill adds statutory form notices for the 180-day
notice of intention to convert, and for the exclusive right
for at least 90 days to contract for the purchase of a
tenant's respective unit. That notice of the exclusive
right would be required to be provided on the date of
issuance of the subdivision public report.
Existing law requires, after the approval of the final map,
prospective tenants to be given notice that the unit they
may rent has been approved for sale to the public as a
condominium project, community apartment project, or stock
cooperative project. That notice further provides that
their lease may be terminated, and that they will be given
a right of first refusal to purchase the unit if they still
lawfully reside in the unit.
This bill provides that while failure to provide that
notice shall not be grounds to deny the conversion, the
subdivider or their agent who fails to provide notice shall
pay each prospective tenant who becomes a tenant, was
entitled to that notice, and did not purchase his/her unit,
AB 763
Page
4
the sum of the following: (1) Actual moving expenses
incurred, not to exceed $1,000, and
(2) first month's rent on the tenant's new rental unit, if
any, immediately after moving from the subject property,
not to exceed $1,100.
Existing law states that any action or proceeding to
attack, review, set aside, void, or annul the decision of a
legislative body concerning a subdivision must be brought
within 90 days after the date of such decision.
This bill clarifies that the 90-day time limitation to
attack, review, set aside, void, or annul the decision of a
legislative body concerning a subdivision applies to, but
is not limited to, the approval of a tentative map or final
map.
This bill additionally (1) prescribes the form by which
tenants must be notified of the intent to convert a
building into a condominium project, community apartment
project, or stock cooperative project, (2) provides
penalties for failure to provide notice to prospective
tenants of the approval of a final map, and (3) clarifies
that the approval of a tentative map or final map must be
commenced within 90 days after that decision.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/25/07)
Affordable Housing Coalition of San Diego County
American Federation of State, County and Municipal
Employees, AFL-CIO
Asian Americans for Civil Rights and Equality
California ACORN
California Alliance for Retired Americans
California Rural Legal Assistance Foundation
City of San Jose
Conference of Delegates of California Bar Associations
Congress of California Seniors
Gray Panthers California
Protection & Advocacy, Inc.
Western Center on Law and Poverty
AB 763
Page
5
ARGUMENTS IN SUPPORT : According to the author:
"As written, the section describing the required notices
is unclear and difficult to interpret. This can cause
real or perceived violations, which can result in tenants
being improperly notified, as well as costly appeals to
the local [governments and] litigation. Other
discrepancies are language discrepancies, and lack of
clarity on timing [and] content of these notices."
The author's office notes that this bill originated from
affordable housing advocates in San Diego, and advocates
throughout the state have collaborated on this bill. The
Affordable Housing Coalition of San Diego County notes that
"AB 763 helps those being displaced by requiring clear
notices that provide an accurate and understandable message
about the proposed conversion and assures that tenants
rights are protected."
ASSEMBLY FLOOR :
AYES: Adams, Aghazarian, Anderson, Arambula, Bass, Beall,
Benoit, Berg, Berryhill, Blakeslee, Brownley, Caballero,
Charles Calderon, Carter, Cook, Coto, Davis, De La Torre,
De Leon, DeSaulnier, DeVore, Duvall, Dymally, Emmerson,
Eng, Evans, Feuer, Fuller, Gaines, Galgiani, Garcia,
Garrick, Hancock, Hayashi, Hernandez, Horton, Houston,
Huff, Huffman, Jeffries, Jones, Karnette, Keene,
Krekorian, La Malfa, Laird, Leno, Levine, Lieber, Lieu,
Ma, Maze, Mendoza, Mullin, Nakanishi, Nava, Niello,
Parra, Plescia, Portantino, Sharon Runner, Salas,
Saldana, Smyth, Solorio, Spitzer, Strickland, Swanson,
Torrico, Tran, Walters, Wolk, Nunez
NO VOTE RECORDED: Price, Richardson, Ruskin, Silva, Soto,
Villines, Vacancy
RJG:mw 6/25/07 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
AB 763
Page
6