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Home My WebLink AboutNS-2088 - Adding Article X to Chapter 34 of Santa Ana Municipal Code, Regulating Investment Apartments727 REL: mb: 11/28/90 ORDINANCE NO. NS-2088 AN ORDINANCE OF THE CITY OF SANTA ANA ADDING ARTICLE X TO CHAPTER 34 OF THE SANTA ANA MUNICIPAL CODE, REGULATING INVESTMENT APARTMENTS. THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1: That the Santa Ana Municipal Code is hereby amended by adding a section, to be numbered 34-13.7, which said section reads as follows: Sec. 34-13.7. Investment apartments. "Investment apartments" means a conversion project having five or more dwelling units and a density not exceeding 35 dwelling units per acre, in which the dwelling units are reserved for rental occupancy only, in accordance with a declaration of covenants, conditions, and restrictions approved by the city pursuant to section 34-363. SECTION 2: That section 34-302 of the Santa Ana Municipal Code is amended to read as follows: Sec. 34-302. Applicability. (a) This article applies only to common ownership projects intended for residential use, and for which a final map is required by the State Subdivision Map Act. As used herein, "final map" includes any parcel map required by Section 66426 of the said act. (b) This article shall not apply to any common ownership project which was created as such prior to the effective date of this article, or for which a final map has been approved prior to such effective date. (c) This article shall not apply to any common ownership project for which a tentative map or conditional use permit has been approved prior to the effective date of this article, provided that all requirements and conditions existing at the time of such approval are satisfied and a final map is subsequently approved. (d) This article shall apply to any common ownership project for which a conditional use permit application has been filed prior to the effective date of this article. In such event the application shall be deemed an application for a waiver, and, if approved, any provisions of this article which are inconsistent with the conditions of approval shall be deemed waived. (e) This article does not apply to investment apartments. SECTION 3: That Chapter 34 of the Santa Ana Municipal Code is hereby amended by adding thereto an article, to be numbered X, and consisting of sections to be numbered 34-360 through 34-365, which said article reads as follows: ARTICLE X. INVESTMENT APARTMENTS. Sec. 34-360. Application and purpose. This article applies to investment apartments. It is the purpose of this article to allow a form of ownership of rental multiple family housing combining separate ownership of rental dwelling units with common ownership by the associated unit owners of the land and buildings where such units are located, in the expectation that such form of ownership will promote a higher degree of ownership concern for property maintenance than is commonly associated with multifamily rental housing. It is further the purpose of this article to assure that, prior to their conversion to investment apartments, rental multifamily developments are, to the extent feasible, upgraded to zoning and building code standards applicable to new construction, in order to promote future maintenance of such developments. Sec. 34-361. Application of the general plan. Because the conversion of apartments to investment apartments does not result in a reduction in the city's supply of rental housing, any provision in the general plan of the city which is designed to restrict the conversion of apartments to condominiums or other form of common ownership project shall be deemed not to apply to investment apartments. Sec. 34-362. Tentative map requirements. (a) Any application for approval of a tentative map for investment apartments shall be accompanied by a declaration of covenants, conditions, and restrictions approved in accordance with section 34-363 and an improvement plan approved in accordance with section 34- 2 799 364. Any application for approval of a tentative map for a conversion project which is not accompanied by such documents shall be subject to article IX of this chapter. (b) Every tentative map for investment apartments shall be subject to the condition that the following actions be completed prior to approval of the final map: (1) The improvement of the subject property in accordance with the improvement plan approved by the city in accordance with section 34-364. The applicant shall be responsible for obtaining inspections of the subject property by personnel of the planning and building agency as necessary to determine compliance with this requirement. (2) The filing with the planning and building agency of a current structural pest control report issued by a licensed structural pest control operator, showing the subject property to be free of termites, dry rot, fungi, and damage therefrom. Such a report shall be deemed current for no more than ninety (90) days following the date of the inspection. Sec. 34-363. Requirement of an approved declaration of covenants, conditions, and restrictions. (a) A declaration of covenants, conditions, and restrictions for investment apartments shall comply with the following standards: (1) No owner of a dwelling unit shall be permitted to reside in that unit and no person shall be permitted to own less than two units. (2) The associated owners shall collectively be responsible for maintenance and management expenses of all grounds, buildings, and structures on the project site, excluding only the interiors of the dwelling units and the interiors of any attached garages. As used herein, an "attached garage" means garage space which is immediately adjacent to and accessible from a dwelling unit and which is separately owned by the owner of that dwelling unit. All parking areas other than attached garages shall be owned by the associated owners collectively, although parking spaces may be assigned to the occupants of designated dwelling units. 3 730 (3) Provision shall be made for professional management of the investment apartment complex. This shall include provision for an on-site office staffed on a full-time basis during normal business hours. The associated owners shall be required to maintain the name and mailing address of the manager continuously on file with the Planning Director of the City of Santa Ana. Provision shall be included that the service of any notice, order, or summons by the City of Santa Ana or by any court of competent jurisdiction on the manager on record with the City of Santa Ana, or on any person actually serving as manager, or on any one of the associated owners, shall be valid and binding on all of the associated owners, with respect to the enforcement by the City of Santa Ana of the subject covenants, conditions, and restrictions, or of the improvement plan specified in section 34-364, or of any applicable law or regulation of the City of Santa Ana. (4) As to the above requirements, a power of enforcement to the City of Santa Ana, exercisable in the discretion of the council, and a prohibition against any relinquishment, amendment, or deletion of such requirements without the consent of the council. (b) No declaration of covenants, conditions, and restrictions shall be deemed adequate for the purpose of processing a tentative map for investment apartments until approved as complying with this section by the executive director of planning and building safety or his or her designated representative. The said executive director shall cooperate with the Department of Real Estate of the State of California to assure the covenants, conditions, and restrictions as finally recorded are consistent with those approved by the said executive director with regard to the requirements of this section. Sec. 34-364. Improvement plan. (a) The improvement plan referenced in section 34- 362 shall provide for upgrading the proposed investment apartment complex to the standards then in effect for construction of new buildings, to the extent financially and practically feasible, with regard to the following matters: fire safety, building security, sound 73i transmission, energy efficiency, off-street parking, open space, and landscaping. The improvement plan shall also provide for all existing on-site facilities which are to be retained to be brought into reasonably sound and attractive condition. (b) Any application for approval of an improvement plan shall be accompanied by the following: (1) A site plan showing all existing and proposed structures, including walls and fences, landscaping, irrigation systems, and driveways and parking areas. (2) A statement of the current and proposed ownership of the subject property and its current and proposed use. (3) A description of the property, including acreage, number of existing and proposed dwelling units categorized by the number of bedrooms in each unit. (4) A statement of the current and proposed management program, including structural maintenance and parking assignments. (5) A statement of current and projected rents extending to twelve months after conversion to investment apartments. (6) A statement of proposed assessments and fees to be charged to owners of dwelling units after conversion to investment apartments. (c) No improvement plan shall be deemed adequate for purposes of processing a tentative map for investment apartments until approved by the executive director of planning and building safety or his or her designated representatives as complying with the requirements of this section. The applicant shall be responsible for obtaining an inspection of the subject property by appropriate personnel in the planning and building agency of the city as necessary to determine the improvements to be required on the subject property. In approving any improvement plan the executive director may impose such requirements and conditions as he or she deems appropriate to render such improvement plan consistent with the requirements of this section. Any such requirements or conditions may be appealed by the applicant to the planning commission, which may modify them as such commission deems appropriate, and the 5 732 decision of the planning commission shall be final. Sec. 34-365. Inspections. As a condition to obtaining the inspections of the subject property required by this article, the applicant shall pay such inspection fees as may be established by resolution of the city council. SECTION 4: If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. SECTION 5: Neither the adoption of this ordinance nor the repeal hereby of any ordinance shall in any manner affect the prosecution for violation of ordinances, which violations were committed prior to the effective date hereof, nor be construed as affecting any of the provisions of such ordinance relating to the collection of any such license or penalty or the penal provision applicable to any violation thereof, nor to affect the validity of any bond or cash deposit in lieu thereof, required to be posted, 6 733 filed or deposited pursuant to any ordinance and all rights and obligations thereunder appertaining shall continue in full force and effect. ADOPTED this 7th day of January , 199 1. ATTEST: ~ice C. Guy / .~_ / Clerk of the Coundi~/ COUNCILMEMBERS: Young AYE Acosta ~!AY Griset AYF May AYF McGuigan AYF Norton AYF Pulido AYF Daniel H. Y~z~n~ Mayor -- APPROVED AS TO FORM: city Attorney 7