BILL ANALYSIS
AB 763
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 763 (Saldana)
As Amended June 25, 2007
Majority vote
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|ASSEMBLY: |73-0 |(May 17, 2007) |SENATE: |24-14|(August 30, |
| | | | | |2007) |
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Original Committee Reference: L. GOV.
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 (Map Act).
The Senate amendments require a subdivider to provide tenants
with written notice within five days after receipt of a
subdivision public report that they have an exclusive right to
contract for the purchase of rental units for at least 90 days
after issuance of the subdivision public report.
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.
AS PASSED BY THE ASSEMBLY , this bill:
1)Repealed the existing provisions of the Map Act concerning
tenant notice and exclusive right to purchase in condominium
conversions.
2)Prohibited 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.
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3)Prohibited 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
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.
AB 763
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4)Deemed these written notices to tenants to be satisfied if
those notices comply with the legal requirements for service
by mail.
5)Specified 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)Required 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
tenant's primary language.
7)Required 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)Provided 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)Required the legislative body to render its decision on the
appeal within 10 days following the conclusion of the hearing.
10)Made changes to model notice forms in the Map Act to reflect
the substantive changes in notification made by this bill.
11)Required 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.
FISCAL EFFECT : None
COMMENTS : 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
AB 763
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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.
The author of this bill 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.
This bill 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. This bill 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.
Analysis Prepared by : J. Stacey Sullivan / L. GOV. / (916)
319-3958
FN: 0001628