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HomeMy WebLinkAboutOrdinance No. 20371 -~ COUNCIL ORDINANCE NUMBER 20371 COUNCIL BILL NUMBER 4928 AN ORDINANCE CONCERNING CONDOMINIUMS;AMENDING SECTIONS 2.1060, 2.1064, 2.1070, AND 2.1074 OF THE EUGENE CODE, 1971; AND DECLARING AN IMMEDIATE EFFECTIVE DATE. ADOPTED: July 10, 2006 PASSED: 7:0 REJECTED: OPPOSED: ABSENT: Papa EFFECTIVE: July 11, 2006 ORDINANCE NO. 20371 AN ORDINANCE CONCERNING CONDOMINIUMS; AMENDING SECTIONS 2.1060, 2.1064, 2.1070, AND 2.1074 OF THE EUGENE CODE, 1971; AND DECLARING AN IMMEDIATE EFFECTIVE DATE. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. The definitions of "Condominium instruments" and "Moving expenses" set forth in Section 2.1060 of the Eugene Code, 1971, are amended to provide: 2.1060 Condominium and Manufactured Dwellina Park Conversion - Definitions. In sections 2.1060 to 2.1086 of this code, the following words and phrases mean: Condominium instruments. The declaration of unit ownership required to be recorded under state law, any supplementary declarations and plats, bylaws for the association of unit owners, the notice of intention or disclosure statements filed pursuant to state law, the condominium public report or examination issued pursuant to state law, the common elements report required under section 2.1 070(a) of this code, the informational brochure described in section 2.1 070(b)2 of this code, the TAP contract required under section 2.1 070(d) of this code, and any other document defined as a condominium instrument under administrative rules issued hereunder. "Condominium instrument" as applied to cooperative housing unit projects shall include any document equivalent to those identified above as well as the articles of incorporation, by-laws, executed regulatory agreements, occupancy or subscription agreements, management contracts, management plans, and applications for mortgage insurance of the cooperative corporation. Moving expenses. For condominium tenants, a fixed sum of money based on the number of rooms of furniture that is intended to cover the cost of moving the tenant's possessions to another location within the urban growth boundary exclusive of expenses attributable to packing and unpacking. For elderly or disabled tenants moving expenses include an additional fixed sum of money intended to cover the costs of packing and unpacking. For manufactured dwelling tenants, a sum of money representing the actual costs for moving the tenants possessions and a tenant's manufactured dwelling to another location within the urban growth boundary. In the case of Ordinance - 1 manufactured dwelling moving expenses, eligible expenses also include removal and reinstallation of skirting, disconnecting utilities, disconnecting and removing awnings and decks from the manufactured dwelling, trip permit and public inspection fees, transportation costs, set up charges, utility connection expenses and fees, unit improvements to meet destination park standards, unit improvements to meet state structural specialty codes, and temporary housing and meals for the tenant and permanent occupants during unit relocation and set up. The amount of moving expenses shall be set by administrative rules issued hereunder. Section 2. Subsection (3) of Section 2.1064 of the Eugene Code, 1971, is amended to provide: 2.1064 2.1070 Condominium Conversion - Limitations. (3) After the notice of planned conversion is given and prior to renting any unit, any prospective tenant shall be notified by the developer or his or her agent, in writing, of the intent to convert and advised that no TAP benefits allowed under section 2.1 070(f) of this code will be provided to that tenant. Section 3. Section 2.1070 of the Eugene Code, 1971, is amended to provide: Condominium Conversion - Permit Approval. In order to obtain approval by the city manager of an application for a condominium conversion permit, the applicant must satisfy the following conditions and provide the following documents as part of the permit application: (a) Common elements report. The applicant shall supply to the city manager a report prepared by a reserve specialist or other professional approved by the City describing the condition and expected useful life of all common elements including the roof, foundation, external and supporting walls, mechanical, electrical, plumbing, heating, all other major mechanical and utility systems, together with an estimate at current market prices of repair or replacement costs for those items requiring immediate major repair or eventual replacement. The report shall separately list the condition and expected life of all components of common elements and shall include the approximate dates of installation of the common elements and components and the dates and description of major repairs or renovations of the common elements and components. The report shall show on each page the date of preparation of the report. It shall clearly disclose which common elements could not be physically inspected and which estimates for these common elements were not made on the basis of a physical inspection. The report shall identify the sources used in the provision of all information, including the condition of common elements, the Ordinance - 2 estimates of expected useful life and repair and replacement costs. The report shall also contain a summary of all city building official records pertaining to each building's major repairs or renovations. The definition of "major repair" and "major renovation" shall be set by administrative rules issued hereunder. (b) Applicant's affidavit. The applicant shall file an affidavit attesting to the truth of the following: 1. That the applicant has notified all tenants residing in the building to be converted and any affected neighborhood group of the permit application. The affidavit shall also state that the applicant has kept signed receipts from all affected tenants certifying that each tenant has received copies of the notice of planned conversion and the proposed tenant assistance plan contract. The applicant shall state in the affidavit that such receipts shall be kept on file in this city by the developer or the developer's agent subject to inspection by the city manager at any reasonable time for a period of three years from the date the receipt is taken. For the purpose of this provision, a refusal to accept notice of intent to convert or the tenant assistance plan contract shall constitute receipt by any affected tenant. 2. That the informational brochure on condominium conversion provided by the city has been distributed to all tenants who reside in the building proposed to be converted. 3. That no evictions of affected tenants except for good cause have occurred between the date of the notice of planned conversion to the city and the date of the permit application. (c) Information provided to state. All issued condominium instruments whose submission is required by administrative rules issued hereunder. (d) Rental history. A rental history report containing information required to be submitted under administrative rules issued hereunder. (e) Tenant survey. A survey of all affected tenants in the conversion project containing information required to be submitted under administrative rules issued hereunder. (f) Tenant assistance plan. Each applicant for a permit shall prepare and supply to the city a tenant assistance plan (TAP). No TAP need be prepared where all of the affected tenants have executed binding offers to purchase their units or shares or have permanently relocated at the time of the permit application. The TAP shall be formalized by a contract between the developer and the city, the execution of which is a prerequisite to city permit approval. Each TAP contract shall contain the following: 1. An obligation on the part of the developer to pay moving expenses of special category affected tenants. The amount of moving expenses to be paid for each type of special category tenant and the time for such payment shall be set by administrative rules issued hereunder. Ordinance - 3 2. An agreement by the developer to contract with a housing counselor approved by the city, to assist special category tenants of the building to be converted in locating housing and to act as the developer's sole agent in representing housing as comparable, to special category tenants. The city may withdraw its approval of the housing counselor at any time. The contract between a housing counselor and a developer shall be subject to approval by the city. Such contract shall require the counselor to use the counselor's best efforts to obtain replacement housing which meets the articulated special needs of each special category tenant in addition to being comparable as defined in this code. 3. An agreement by the developer to offer two comparable housing units to each special category tenant prior to giving any notice of tenancy termination to that tenant. If the status of the offered unit as comparable is contested by the tenant, it shall not constitute such an offer until the decision of the hearings officer on its compatibility. An independent offer is one which is not an outstanding offer to any other tenant and which is, during the period of consideration, an exclusive offer to that tenant. Any such obligation on the part of the developer shall not preclude an eviction of any special category tenant for good cause. The agreement to offer comparable housing to a particular tenant may be satisfied by an offer of lifetime tenancy to that tenant. 4. An agreement by the developer not to evict any affected tenant, except for good cause, prior to the expiration of 120 days from the issuance of the permit. 5. An agreement by the developer not to raise the rent of any special category tenant except to an amount equal to or less than rent for comparable housing in the same building if such comparable housing exists. 6. A provision that the contract shall operate in favor of all affected tenants of the building,as third party beneficiaries. 7. A provision that the city assumes no liability for the condominium conversion project or the developer's actions or failure to act. 8. A provision that reasonable trial and appellate court attorney's fees shall be paid by the non-prevailing party in any action or suit on the contract. 9. Any other provision required under administrative rules issued hereunder. A TAP may include any purchase incentives to existing tenants which are offered by the developer. (g) Cash reserve escrow account. The developer shall submit proof of establishment of a cash reserve account by the developer for replacement reserves for common elements in an amount and in the manner required by state law. In determining the estimated useful life Ordinance - 4 and replacement costs for the common elements, the developer shall use the estimates set forth in the common elements report. Section 4. Subsection (5) of Section 2.1074 of the Eugene Code, 1971, is amended to provide: 2.1074 Condominium Conversion - Post-Permit Obliaations and Procedures. (5) Update of common elements report. The developer shall update the report required under section 2.1 070(a) of this code every three (3) years until control of the condominium is transferred from a developer to an association of unit owners. Such update shall include more current information on repair or replacement costs and any new or supplementary information on the condition and expected useful life of the common elements. Section 5. The City Manager shall establish, by administrative rule, that the condominium conversion developer must pay the moving expenses of all special category tenants in an amount no less than the Federal Uniform Relocation Assistance Real Property Acquisition Policies Act, as amended, Fixed Residential Moving Cost Schedule. Section 6. The City Recorder, at the request of, or with the concurrence of the City Attorney, is authorized to administratively correct any reference errors contained herein or in other provisions of the Eugene Code, 1971, to the provisions added, amended or repealed herein. Section 7. The amendments provided for herein bring those provisions into conformity with requirements of federal and state law and current practices, and it is therefore necessary for the preservation of the public health, welfare and safety for this Ordinance to have immediate effect. This Ordinance shall become effective immediately upon its passage by the City Council and approval by the Mayor, retention Ordinance - 5 by the Mayor for more than ten days, or readoption over a Mayoral veto by two-thirds of all members of the City Council. Passed by the City Council this 10th day of July, 2006. Approved by the Mayor this 11th day of July, 2006. -Jv ~~ ~ Recorder ----- ---- ~~. p(h~ Mayor Ordinance - 6