06/09/1980 Meeting - Laserfiche WebLink

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e conversion; reduction of the impact of conversion; purchaser protec- tion; building inspection; a reasonable balance between rental and owned housing; to encourage the construction of multi-family housing; and to maintain housing for special category tenants. The Condominium Task Force met from December 1979 through May 1980. The ordinance protects existing tenants, special category tenants, and purchasers of converted units through mandatory disclosure of the condition of the building. Protection for existing tenants includes disclosure of conversion intent by the developer, the affected tenant has a right to stay in his/her housing unit for six months after notice of planned conversion, no conversion or tenant displacement will occur if demand for rental housing seriously exceeds the supply under the formula, and special category tenants will not be evicted unless two independent offers of comparable housing units are given to each such tenant which would be offered through a housing counselor paid for by the developer. Moving expenses would also be paid by the developer. Purchasers are protected in the following ways: the unit must be in compliance with the housing code at the time of sale; the developer is required to warrant or guarantee that the common elements of the building and its components will operate for two years which will be backed by bond or cash escrow account; the developer must fund the initial replacement reserve account of the unit owners association; the purchaser must be informed of the condition of the building prior to sale through a certified report of a licensed engineer or archi- tect; and no developer will be allowed to negotiate for the sale of condominium units or cooperative shares for respective tenants until issuance of a preliminary permit to convert is issued by the City of Eugene. No developer is allowed to transfer ownership of any condo- minium unit or cooperative share until he/she has obtained a final permit for condominium conversion by the City of Eugene. The ordinance requires two permits--a preliminary permit and a final permit. In order to obtain a preliminary permit a developer must: 1) have the building to be converted inspected for code compliance; 2) obtain a certified report from a qualified, licensed engineer describing the condition and expected useful life of the components of all the common elements of the building; 3) notify all tenants of their rights under the ordinance and provide them with information on the condominium conversion process; 4) provide information to the City on the condition of the building, the rental history of the building for the previous three years, and information on the tenants' partic- ular needs; and 5) provide moving expenses, a housing counselor, and comparable housing units offers to special category tenants. To obtain a final conversion permit, the developer must: 1) execute a warranty guaranteeing the good condition of each component of the common elements in a building for a period of two years; 2) set up a cash reserve escrow account with benefits of the unit owners associ- ation; 3) repair all housing code violations; and 4) pay the conversion fee. . e 6/9/80--7