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HomeMy WebLinkAboutOrdinance No. 19469ORDINANCE NO, 19469 AN ORDINANCE CONCERNING CONDOMINIUM CONVERSION; AMENDING SECTIONS 2.1060, 2.1062, 2.1064, 2.1066, 2.1010, 2.1014, 2.1076, 2.1078, 2.1080, 2.1082, 2.1084, AND 2.1990 OF THE EUGENE CODE, 1971; AND REPEALING SECTIONS 2.1068 AND 2.1072 DF THAT CODE. THE CITY OF EUGENE DDES ORDAIN AS FOLLOWS: Section 1. Sections 2.1060, 2.1062, 2.1064, 2.1066, 2.1070, 2.1014, 2.1076, 2.1078, 2.1080, 2.1082, 2.1084, and 2.1990 of the Eugene Code, 1971 are amended, and Sections 2.1068 and 2.1072 of that Code are repealed, to read and provide: 2.1050 Condaminium Conversion -Definitions. In sections 2.1060 to 2.1084 of this code, the following words and phrases mean: Affected tenant. Any tenant who resides in a building to be converted at the tine of notice of planned conversion. A ec~nt. A person who represents Or acts for or on behalf of a developer in selling or offering to sell a condominium, or stack coaperative unit, but such term does not include an attorney at law whose representation of another person consists solely of rendering legal services. Association of unit owners. The association of owners of units of a condominium formed far controlling the administration management and operation of a condominium or the resident board of directors of any cooperative housing unit project. Building. A multiple unit building ar single unit building, or any comb~nat~on thereof comprising apart of property. Cit mono er. The city manager or his/her designee. Common elements. The general common elements existing for the benefit of common use of more than two unit or share owners which sha11 include, where applicable: ~ a} The 1 and whether 1 eased or i n fee s i mp1 e upon which a building is located, except any portion thereof included in a unit or made a limited common element by the declaration of unit ownership; fib} The foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, fire escapes, entrances and exits of a building; ~c} The basements, yards, gardens, parking areas and outside storage spaces; ~d} Installation of central services such as power, light,.gas, hot and cold water, heating, refrigeration, air cond~t~on~ng, waste disposal, and incineration; fie} The elevators, tanks, pumps, motors, fans, compres- Ordinance ~ 1 sors, ducts, and in general all apparatus and installations existing for common use; ~f} The premises for the lodging of janitors or care- takers of property; and fig} All other elements of the building convenient or necessary to its existence, maintenance, and safety and nor- mally ~n common use. A component of a common element is any identifiable part of a common element which may be separately purchased and which has an expected useful life which is different than other parts of the common element . Com arable hausin . Housing which is decent, safe, and sani- tary, i n compliance with al 1 applicable municipal codes and open to all persons regardless of race, creed, national origin, ancestry, religion, marital status, or gender. Housing is comparable if it is provided with facilities reasonably similar or equivalent to that provided by the landlord in the dwelling unit in which the tenant then resides in regard to each of the following: ~a} Apartment size, being no less than 8o percent of the area square footage of the dwelling unit in which the tenant then resides; fib} Rented for an amount no more than 12o percent of the last month's rent paid by the tenant to the owner of the property to be converted. Rent shall not include money paid or charges collected by the lessor for the provision of utility services; ~c} The same number of bedrooms; ~d} Simi 1 ar kitchen and bath foci 1 i ti es; fie} Similar special facilities for the particular ten- ant's needs ~f that tenant is handicapped or elderly, includ- ing but not limited to elevators and security features; ~f} Similar cooling and heating systems; fig} Similar accessibility in terms of time and travel and distance from public transportation routes to the tenant's place of employment, community and commercial facilities, schools, medical services, and transportation; and, ,~h~ Such other factors as may be identified in adminis- trat~ve rules issued hereunder. A unit is not comparable if it is located in a building for which a notice of planned con- version has been given or for which reasonable evidence exists that the owner of such building is contemplating conversion to condominium ar cooperative units. "Comparable housingrr does not include: any hotel, motel, or other similar struc- ture or room therein used primarily for transient occupancy, in which at least 60 percent of the rooms is devoted to liv- ing quarters far short-term tenants or guests or used for transient occupancy; any rental unit in an establishment which has as its primary purpose the providing of diagnostic care and treatment of diseases, including but not limited to has i- tals convalescent h p omes, nursing homes, and personal care homes; or any dormitory or institute of higher education or private bearding school dwelling unit which is rovided for p student occupancy. Ordinance - 2 Condominium. Land, whether leasehold or in fee simple, whether contiguous or noncontiguous, and all buildings, improve- ments, and structures thereon, and all easements, rights and appur- tenances to the property where the ownership of such land is shared in undivided interests except for exclusive and separate ownership or right of residency of each residential unit located on the land. '!Condominium" shall include all property subject to the provisions of state law on condominium conversion and cooperative housing units. Condominium instruments. The declaration of unit ownership required to be recorded under state law, any supplementary declara- tions and plats,,bylaws for the association of unit owners, the notice of ~ntent~on or disclosure statements filed pursuant to state law, the condominium public report or examination issued pur- suant to state law, the building code inspection report and certi- ficate of repairs required under section ~.~o7o~a} of this code, the ~nformat~onal brochure described in section 2.1070~c}2 of this code, the engineer's certificate required under section 2.1o7o~b} of this code, the TaP contract required under section ~.~070~e} of this code, and any other document defined as a condominium instru- ment 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 con- tracts, management plans, and applications for mortgage insurance of the cooperative corporation. Condominium unit. The part of the property consisting of a building or one or more rooms intended for any type of independent residential ownership, the boundaries of which are described in a declaration of unit ownership under state law and which has a direct exit to a public street or highway or to a common area or areas leading to a public street or highway. Conversion. The process whereby more than two rental housing units sharing one or more common elements are converted from owner- ship in whole by a person or group of persons to ownership by several persons whose ownership interests are separate as to resi- dent~al or cammerc~al units located on the real property. "Condo- minium conversion" includes the process prescribed by state law for issuance of a declaration of unit ownership, and the process of converting rental units to cooperative housing units, but does not include the process of converting non-residential commercial or industrial buildings to residential condominiums or cooperative housing units. Coo erative housin . improved real property owned ar leased by a cooperative housing corporation yr by any other car oration p } partnership, trust or assoc~at~on ~n which all or substantially all of the shareholders of the corporation, partners of the partnership, beneficiaries of the trust or members of the association receive a right of exclusive occupancy in a rental unit of the building, which right of occupancy is transferable only concurrently with the transfer by any means of the stock, partnership interests, benefi- ci al interest, or membership held by the person having such right of occupant'. Ordinance - 3 Declaration of unit awnershi The document submitting prop- erty to the state unit ownership law filed pursuant to state law. Devel offer, A "declarant" under state condominium 1 aw, or any person who plans to submit property legally or equitably owned in whole or in part by him or her to the provisions of state condomin- ium law, or any person who purchases an interest in a condominium from a declarant or subsequent developer for the primary purpose of resale, including any person, entity, or group who purchases or is negotiating a purchase of a building for use as cooperative apart- ments. Disabled erson. A person who has, at the time of issuance of a condominium conversion permit, a mental, emotional, or physi- cal disability ar illness of more than a temporary duration that: .~a} substantially impairs his/her ability to move about to find or ma~nta~n a housing unit without the use of external aids ~e.g., wheelchair, cane, walker, guide dog} or without another person's assistance, ar without pain; or fib} Involves the loss of sight or hearing ability, pre- vents normal walking or climbing of stairs, or requires a spe- cial life support system; or ~c} Affects his/her ability to make decisions or manage his/her awn financial affairs without assistance. A disability must prevent or make it difficult for the person to carry out regular activities,of daily living ~e.g., housework, shop- p~ng,,laundry,,meal preparation, personal care such as bathing and dressing}. Evidence that would determine the status of disability would include a doctor's certificate, a statement from a health care specialist attesting to the above criteria, a governmental determination of disability, or a worker's compensation determina- tion of greater than 50 percent disability. Elderl ersvn; A person who is 10 years of age or over at the time of the notice of planned conversion. Goad cause for eviction, An eviction for one or more of the following reasons: ~a} The tenant has failed to pay rent to which the land- lord ~s entitled within IO days after it is due; fib} The tenant has violated a written obligation or cov- enant of the tenancy other than the obligation to surrender possession upon proper notice, and has failed to cure such violation for 14 days after receiving written notice thereof from the 1 andl ord; ~c} .The tenant has permitted or is permitting a nuisance to exist ~n or ~s causing damage to, the rental unit or to the appurtenances thereof, or to the common area to the property containing the rental unit; ~d} The tenant is creating an unreasonable interference with the comfort, safety, or enjoyment of any of the other residents of the same or any adjacent building; fie} The tenant is using or permitting the rental unit tv be used for any illegal purpose; ~f} The tenant, under a terminated written lease ar rental agreement, has refused, after receiving written request ar demand from the landlord, to execute a written extension or ordinance - 4 renewal thereof far a further term of like duration with simi- lar provisions and at such terms as are not inconsistent with or violative of any provision of sections 2.1060 to 2.1084 of this cade; fig} The tenant has refused the landlord reasonable access to the unit for the purpose of making repairs or improvements or for the purpose of inspection as permitted or required by the lease or by law or for the purpose of showing the rental unit to any prospective purchaser or mortgagee; ~h} The person in possession at the end of the lease term is a subtenant not approved by the landlord; or ~i} The tenancy is conditioned on and in consideration of the tenant's employment as superintendent, manager, janitor or in some other capacity and such employment is terminated, Hearings officer. A person appointed by the city manager to decide contested issues arising under sections 2.1060 to 2.1084 of this cade, Lifetime lease. A lease containing the following provisions: ~a} The tenant shall have the option of cancelling the lease at any time upon 3o days written notice to the owner; fib} The tenant cannot be evicted except for good cause; ~c} Right of occupancy shall be nontransferable; ~d} The rent for the unit shall be set at no more than the rent existing on comparable housing in the same building if such comparable housing exists; and 4e} Except as provided above, other terms and conditions are the same as those contained in the tenant's current lease, or rental agreement. . Low income erson. A person who, at the time of notice of planned conversion, has a current income equal to or less than 80% of the median income on a yearly basis determined far Lane Count b the De artme y y p nt of Housing and Urban Development. Moving expenses. A sum of money representing the actual costs for mav~ ng the tenant's possessions to another 1 ocati on within the city, exclusive of expenses attributable to packing and unpacki n . For e1 derl or d ' ~ g y ~sabled tenants the reimbursement shall include packing and unpacking expenses. The maximum amount of movin ex- enses shall be s g p et by adm~n~strat~ve rules issued hereunder. Permit. A condominium conversion permit issued by the city manager under section 2.1066 of this cade, Rental hous i n unit . A 1 eased residential unit for individual occupancy containing separate kitchen facilities which has a direct exit to a public street or highway ar to a common area or areas leading tv a public street ar highway. Sale. Every final disposition or transfer of a condominium unit or purchase of a cooperative share by a developer, including the offering of the property as a prize or gift when a monetary change or consideration for whatever purpose is required by the developer or his agent. Share. A certificate of interest, participation, or ownership in a cooperative corporation including any subscription, membership, or occupancy agreement. p . _tegory,,,,,ten.ants . Any person why i s elderly, disabled, -- ec ~ a .~, ca.. ~,~ _, or low income. Ordinance - 5 Unit Owner. A developer who owns a unit or share, a person to whom ownership of a unit or share has been conveyed, ar a lessee of a unit in a leasehold condominium whose lease expires simultane- ously with any lease the expiration or termination of which will remove the unit from the condominium, but not a person having an interest in a unit or share solely as security for an obligation. 2.1062 Condominium Conversion - Sco a of Re ulations. Sections 2.1060 to 2.1084 of this code shall be applicable to all conversions of rental housing units to condominiums for which a declaration of unit ownership under state law is filed after June 16, 1980. Sections 2.1060 to 2.1084 of this code apply to the conversion of rental housing units to cooperative apart- ments, including limited equity stock cooperatives and market stack coopera- t~ve units, where articles of incorporation are filed and shares are sold after June 16, 1980. Sections 2.1060 to 2.1084 of this code d0 not apply to any condominium conversion granted an exemption from the operation of the moratorium under Ordinance No. 18535 and for which project either a public report issued under Oregon Laws, 1977, ch. 484, section 6 or a waiver thereof issued under Oregon Laws, 1977, ch. 484, section 9. 2.1064 Condominium Conversion - Limitations. ~1} Notwithstanding any other provision of law, no person may con- vert nor shall the city permit the conversion of any rental housing unit in the city into a condom~n~um or cooperative housing unit except as provided in sections 2.1060 to 2.1084 of this code. Any developer or other person seek- ing to convert an existing structure to condominium or cooperative ownershi shall first a 1 for and ~ ~ p .pp y obtain from the city a condominium convers~an per- m~t. A permit shall be issued by the city manager, or hearings officer upon appeal or review, after it has been determined that the existing structure and plans conform to all applicable provisions of law and this code. A er- mit ma not be transferee p y d or said unless such transfer or sale is first approved by the city manager. ~2~ No earlier than 34 days prior to the formal filing of an appli- cat~on for a permit, and concurrently with its delivery to the tenants, the developer shall deliver to the city a copy of a notice of planned conversion and an affidavit providing a list of tenants who received the notice and showing the date or dates of delivery or intended delivery of the notices to the tenants. The notice shall contain written information describing in general: ~a} What steps and actions the developer and others, includ- ing governmental agencies, will or must take in order for the building to be converted to a condominium ar stock cooperative; ~b~ How the tenant will be involved, informed, and assisted at each step in the process; and ~c} What rights the tenants have, whether mandated by law or voluntarily provided by the developer. The not ~ ce shall be ~ n pl a~ n and simple 1 anguage, and contain any additional or specific information required by the city under administrative rules issued hereunder. ~3} After the notice of planned conversion is given and prior to renting any unit, any prospective tenant shall be notified by the develo er p Ordinance - 6 or his or her agent, in writing, of the intent to convert and advised that no TAP benefits allowed under section 2.~070~g} of this code will be provided to that tenant. ~4} No developer or his or her agent shall sell any converted condom~n~um units or coaperat~ve shares until issuance of a permit by the city. This restriction shall not preclude the entering into of lease-purchase agreements between the developer and prospective purchasers after submission of an application for a permit. 2.106G Condominium Conversion - Permit Process. ~~~ A~p_lication. No later than 60 days after the filing of notice of planned conversion, the developer or his or her agent shall apply for a permit on a form prescribed by the city manager and shall submit as part of this application the information and documents set forth below, together with an application fee in an amount set by the city. The applicant promptly shall pest a copy,of the entire application in a conspicuous place in the bu~ld~ng or buildings to be converted. ~2} Staff review. Within 30 days from the time of a completed application the city shall issue a staff report on the applicant's compliance with conditions for approval of the permit. The staff report shall be sent to the applicant who shall have 7 days after receipt to submit additional ~nfarmat~on or material. The applicant promptly shall post a copy of the staff report in a conspicuous place in the building or buildings to be con4 vented. ~3} Permit„approval. Within 14 days after the issuance of the staff report the city manager shall approve or deny the permit and shall notify the applicant of the decision in writing. The applicant or developer promptly shall notify each affected tenant in writing of the decision of the city manager on the permit application. ~4} Areal of ,,,permit decision. Within IO days of the permit deci- sion by the city manager, any interested person may appeal that decision to the hearings officer. Such appeal shall be instituted by filing a notice of appeal on a form to be provided by the city. Within 14 days of the notice of appeal, the hearings officer shall conduct a contested case hearing on the permit approval or disapproval action of the city manager. Such appeal shall be limited to the issues of whether the applicant has satisfied the conditions and obligations of the permit approval, whether approval or denial of the permit was an abuse of discretion by the city manager, and whether the information supplied by the applicant in connection with the application is true and correct. The decision of the hearings officer on the permit approval or disapproval decision shall be given in writing no later than IO days after the hearing, and such decision shall be final. ~5} Good faith. It shall be grounds for denial of a permit that the owner of the bu~ld~ng to be converted has evicted mare than one elderly or disabled tenant without good cause during the three years preceding the date of application for conversion permit, ~6}, Reap lication. No person, or his or her agent, who has been denied a permit for conversion may reapply for a permit governing the same condom7n~um or cooperative project within one year of the date of the denial of the application fvr condominium conversion permit unless there exists a substantial change in conditions which formed the basis of the permit dis- approval decision. Ordinance - 7 2.1070 Condominium Conversion - Permit A royal. 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 follaw~ng documents as part of the permit application: ~a~ Buildin cede ins ectian and certificate of re airs. Prior to the application fora permit the developer, at his ar her expense, shall request the city to inspect the building or build- ~ngs to be converted for compliance with the Uniform Building Code, 1982 Edition, sections 104 and 203, and section 8.005~Z} of this code. The fee for this inspection sha11 be an amount set by the city building official, The inspection shall be completed within 7 days of a level apex's request unless the developer fai 1 s to pro- vide or refuses access to the inspector. The purpase of the in- spection is to insure that the building complies with the building code in effect at the time of construction of the building and that the building is not otherwise dangerous or unsafe. A copy of the inspector's report shall be provided by the developer to the city manager as part of the application for a permit. If any code vialat~on is found by the inspector, the developer shall provide as part of the application, a certificate of repairs by the inspec- tor showing correction of the violations. No developer, however, shall use this certificate or report in any advertisement ar indi- cate to anyone in any fashion, for the purpase of inducing a pur- chase of a condominium or cooperative unit, that the city or any of its departments has approved the building or unit for sale. ~b~ En ineer architect's certificate. The applicant shall supply tv the city manager a certified report from a qualified licensed engineer or registered architect describing the condition and expected useful life of all common elements including the roof, foundation, external and supporting wails, mechanical, electrical, plumbing, heating, all other major mechanical and utility systems, together with an estimate at current market prices of repair or replacement cysts 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 commas elements and components and the dates and description of major repairs or renovations of the common elements and components. The report shall shave an each page the date of preparation of the report. It shal i clearly disclose which common elements caul d not be physically inspected and which estimates for these common ele- ments were not made 0n the basis of a physical inspection. The report shall identify the sources used in the provision of all infarmativn, including the condition of common elements, the esti- mates of expected useful life and repair and replacement costs. The report shall also contain a summary of all city building offi- cial records pertaining to each building's major repairs or reno- vat~ons. The definition of "major repair" and "major renovation" shall be set by administrative rules issued hereunder. ~c} A~aplicant's affidavit, The applicant shall file an affi- davit 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 Ordinance - S 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 his or her agent subject to inspection by the city manager at any reasonable time far a period of three years from the date the receipt is taken. Far 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 can- versian 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. ~d} Information rovided to state. All issued condominium instruments whose submission is required by administrative rules issued hereunder. fie} Rental his... t„ory. A rental history report containing in- format~on required to be submitted under administrative rules issued hereunder. ~f} Tenant surer. A survey of all affected tenants in the conversion project containing information required to be submitted under adm~n~strat~ve rules issued hereunder. fig} Tenant assistance lan, Each applicant for a permit shall prepare and supply to the city a tenant assistance p]an TAP , ~ } No TAP need be prepared where all of the affected tenants have exe- cuted binding offers to purchase their units ar 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: I. 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. 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 represent- ing 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 his or her best efforts to obtain replacement housing which meets the articulated special needs of each special category tenant in addition to being camparw able as defined in this code. Ordinance - 9 3. An agreement by the developer to offer independently 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 compatibil- ity. 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 ev~ct~on 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 1 i fetime tenancy to that tenant. 4. An agreement by the developer not to evict any affected tenant, except for good cause, prior to the expira- tion of 180 days from the time the tenant receives notice of planned conversion or prior to issuance of the permit, which- ever is later. 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 benefi- ciaries. 1. A provision that the city assumes na liability for the condom~n~um convers~an project or the developer's actions or f a i 1 ure to act . 8. A provision that reasonable trial and appellate court attorney's fees shall be paid by the non-prevailing party in any acts on or sup t 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. ~h~ 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 and replacement costs for the common elements, the developer shall use the estimates set forth in the engineer/ architect's report. 2.1074 Condominium Conversion - Post-Permit ~b1i ations and Procedures. ~1~ Submission of information re orts. After issuance of the per- m~t, the developer shall submit to the city manager informational reports on forms provided by the city, pertaining tv the tenants of the conversion re- located since the granting of the permit application. The informational reports shall be submitted at the end of any month in which a special cate- gory,tenant has relocated. The informational reports shall continue to be submitted unt~1 all special category tenants have been successfully relocated Ordinance - to or offered lifetime leases. The developer shall deliver to the city completed purchaser infor- mation forms far each purchaser of a condominium unit. These forms shall be provided to the developer by the city and shall request information on the previous tenure downer or renter} of each occupant of the condominium unit, and the present tenure status of that occupant's previous dwelling. ~2} Limitation on eviction of or rent discrimination a ainst remai ni n s eci al cafe or tenants. No developer sha11 evict, except far good cause, any special category tenant prior to the refusal of any such tenant to accept either of two offers of comparable housing by the developer. To be vat id, any such offer of comparable housing shall be made to the tenant by the housing counselor. No comparable housing offer shall constitute one of the two required offers unless it is an independent offer. Failure of any such tenant to accept a comparable housing offer within 5 days of the initial offer shall constitute a rejection. In the event that such special category tenant is temporarily immobile because of sickness or injury, such tenant sha11 have an additional period of 25 days tv accept a comparable housing offer. ~a} No special category tenant residing in the building after issuance of a final condom~n~um conversion permit and prior to the offer to that tenant of two comparable housing units shall be re- quired to pay more rent than the rent charged for comparable housing in the same building or project. ~3} Termination of housin counselor's services. The services of the housing counselor shall no longer be required upon either the complete relocation of all special category tenants or relocation of some but not all special category tenants and the execution of lifetime leases with the remain- ~ng special category tenants. ~4} Disclosure to urchasers. The developer shal 1 make oval l abl e to any prospective purchaser a summary of purchaser protection requirements imposed by the city, together with any disclosures required by state law. The developer shall make available to a purchaser of a condominium, copies of issued condominium instruments within ten days of execution of an earnest money contract or offer to purchase the condominium, or no later than five days before the conveyance. The developer shall keep a receipt signed by each purchaser acknowledging that the person entering into a contract to pur- chase has received ar has had the opportunity to review the condominium instruments, and has completed the purchaser information form. Such receipts are to be kept on f~le,~n this city by the developer or his agent or affili- ate subject to ~nspect~on by the city manager at any reasonable time for a period of three years from the date the receipt is taken. Prior to disclo- sure, the following paragraph must be conspicuously displayed on the first page of each copy of the condominium instrument package: THE CITY OF EUGENE HAS RECEIVED THE CONDOMINIUM INSTRUMENTS FOR FILING ON THE CITY HAS REVIEWED THE CONDOMINIUM INSTRUMENTS FOR COMPLIANCE WITH THE RESIDENTIAL CONDOMINIUM CODE PROVISIONS OF THE EUGENE CODE, 1971, BUT ASSUMES NO LIABILITY FOR THE PROJECT OR THE DECLARANT3S ACTIONS OR FAILURE TO ACT. ~5} U date of en ineer architect's certificate. The developer Ordinance - 11 shall update the engineer's certificate required under section 2.1070~b} of this cade every three ~3} years until control of the condominium is transfer- red from a developer to an association of unit owners. Such update shall include mere current informatian on repair or replacement costs and any new or supplementary informatian on the condition and expected useful life of the common elements . ~6} Revocation of conversion ermit, a permit may be revoked after notice and a contested case hearing before a hearings officer upon a written finding of fact that the developer has: ~a} Failed to comply with the terms of a cease and desist order; fib} Been convicted in any court subsequent to the filing of the permit application for a crime involving fraud, deception, false pretenses, misrepresentation, false advertising, or dishonest dealing ~n real estate transactions; ~c} Disposed of, concealed, or diverted any funds or assets of any person sa as to defeat the rights of unit purchasers; ~d} Intentionally or'repeatedly failed to perform any stipu- lat~an or agreement made with the city as an inducement to grant or reinstate any permit; fie} Made intentional misrepresentations or concealed material facts in an application for a permit; or, ,~f} Intentionally ar repeatedly violated any provision of sections 2.1060 to 2.1084 of this cade. Findings of fact shall be accompanied by a concise and explicit statement of the underlying facts supporting the findings. A determination of a hearings officer on a revocation of a permit shall be final. 2.1076 Condominium Conversion - Dis ute Resolution; Tenant Eli ibilit far Benefits. ~1} Eli ibilit of tenant ass ecial cote or tenant. In the event of controversy over whether a tenant is elderly, disabled, or low income and qual~f~es as a special category tenant, the city manager shall make a deter- mination, which shall be final and non-appealable to a hearings officer. The developer and tenant shall have notice of such requests for determination and opportunity to submit written arguments, comments and affidavits prior to the determination of eligibility by the city manager. ~2} Status of alternative rental unit as com arable. In the event of a disagreement between the tenant and the developer as to whether an offered alternative dwelling unit is comparable or is an outstanding offer to another special category tenant, such dispute shall initially be mediated by the housing counselor. The tenant or developer may seek a review of the decision of the housing counselor by requesting a hearing with the city. Such hearing shall be requested on an application farm to be supplied by the city, the contents of which may be governed by administrative rules issued hereunder. The hearing shall be before the hearings officer and shall be conducted within 1o days from the request for a hearing. The determination of the hearings officer shall be final. 2.1018 Condominium Conversion - Enforcement. ~1} Cease and desist orders. If the city determines that a person Ordinance - 12 has: ~a} violated any provision of sections 2.1060 to 2.1084 of this code; fib} Directly or through an agent ar employe knowingly engaged ~n any false, deceptive or m~slead~ng advertising, promvtian, or sales method to dispose of a unit; ~c} Made any substantial change in the plan of disposition or development of condominiums subsequent to the granting of a permit without notifying the city; ~d} Disposed of any units which have not been registered with the city; or fie} vi o1 ated any 1 awful order or rut e of the city, the city manager may issue an order requiring the person to cease and desist from the unlawful practice. ~2} General enforcement ower. If it appears that a person has engaged ~n or ~s,about to engage ~n an act or practice constituting a viola- t~on of any prov~s~on of section 2.1060 to 2.1084 of this code, or rule, regulation, or order thereunder, or failed to faithfully perform any stipu- lation or agreement made with the city as an inducement to grant or reinstate any permit, the city with or.without any prior administrative proceedings may bring an action ~n the C~rcu~t Court far Lane County to enjoin the acts or practices and to enforce compliance with sections 2.1060 to 2.1084 of this code or any rule, regulation, order, or contract thereunder. ~3} Criminal raceedin s and enalties. ~a} Conversion without ermit. Any person converting without a permit shall be guilty of a violation. The penalty for such vio- lation shall be as provided in section 2.19904} of this code. fib} False statements; concealment of facts. Any person who wi 1 ful ly makes an untrue or mi s1~~eadi~ng statement of material facts ar wilfully omits to provide required data on any document prepared pursuant to sections 2.1060 to 2.1084 of this code shall be guilty of a violation, and upon conviction, shall be subject to a fine as pravided in section 2.19905} of this code. ~4} Rulemakin authorit . The city manager is authorized to pro- mulgate any rules necessary for the implementation of sections 2.1060 to 2.1084 of the code which in the discretion of the city manager may be review- ed by the council prior to implementation thereof. Such rules may include, but are not limited to, regulations on the permit application process, elaboration of the necessary conditions far permit approval, contents of a TAP contract, the definition of comparable housing, the selection of a hous- ing counselor, the contents of the housing counselor contract, procedural and substantive rules on dispute resolution and enforcement mechanisms, and rules relating to the revocation of conversion permits. Such rules shall be adopted in the manner provided far in section 3.012 of this code. 2.1080 Condominium Conversion - Waiver b Cit Mana er of Conditions for Permit. . ~1} The city manager may exempt a limited equity cooperative hous- ~ng unit proaect from any provision of section 2.1060 to 2.1084 of this code except far the purchaser disclosures required under sections 2.10744} and 2.10745}, Such exemptions may be for any or all of the provisions of sec- tions 2.1060 to 2.1084 of this code, or any part thereof. Any such regula- Ordinance - 13 tory exemption shall be granted only where the operation of federal or state law or an executed agreement with a federal or state agency requires the cooperative housing unit project to offer equivalent protection to affected tenants and prospective purchasers and equivalent displacement benefits to relocated tenants as that afforded under sections 2.1060 to 2.1084 of this code. ~2} The city manager may grant a complete or partial application fee waver to any such limited equity cooperative housing project if equivaW lent application fees to governmental agencies, reduced city costs in the processing of the project's permit applications, or past city financial support or funding approval for the particular project make the imposition of such fees unreasonable in his or her judgment. ~3} The city manager may issue administrative rules identifying such federal or state regulations, laws, or regulatory programs for housing cooperatives, which duplicate or offer equivalent protection as that afforded under sections 2.1060 to 2.1084 of this code prior to granting any such exemp- tion. Such administrative rulemaking shall solely be initiated upon a peti- tion for rulemaking to the city manager of an interested person. Such peti- tioner must show that the specific benefits under federal yr state regulation are equivalent to the specific benefits granted under sections 2.1060 to 2.1084 of this code, Once these administrative rules have issued, the appli- cation of the rules to any permit application shall be determined and adjudi- cated in the conversion permit process. 2.1082 Condominium Conversion - General Provisions. ~1} Rnti-discrimination clause. The developer or owner of any condominium unit within a project shall not discriminate in the sale, or in the terms and conditions of sale of any dwelling unit against any person who was or is a tenant of the building to be converted because such tenant opposed in any manner the conversion of such building to a condominium. ~2} variation„~by,agreement. Provisions of section 2.1060 to 2.1084 of this Code may not~~~~be v~ar~~ed by agreement and rights conferred b y those sections may not be waived prior to the giving of notice of planned conversion. Rny tenant benefits allowed under those sections may be waived in writing by a tenant after notice of planned conversion is given if such waiver is entered into in good faith and not for the purpose of completely evading the obligations of the developer, the terms and conditions of the waiver agreement are clearly and fairly disclosed, and adequate consideration for the agreement is specifically stated. R developer may not act under a power of attorney or use any other device to evade the limitations or prohibi~ tions of sections 2.1460 to 2.1084 of this code, or the permits thereunder. ~3} Obli anon of ood faith. Every contract or duty governed by sections 2.1060 to 2.1084 of this code imposes an obligation of good faith in its performance ar enforcement. ~4} Retaliation evictions. If a developer has as his or her domi- nant purpose retaliation against a tenant because of the exercise by the tenant of rights under sections 2.1060 to 2.1084 of this code, because the tenant has expressed an opinion on any matter relating thereto, because of the tenant's denial or refusal to consent to conversion, or because the ten- ant is a special category tenant, and if the tenant is not in default in payment of his or her rent or otherwise in breach of the rental agreement, the developer may not recover possession of the rental unit in any action or Ordinance - 14 proceeding, cause the tenant to quit involuntarily, ar increase the rent or decrease any services to that tenant. ~5} Deliver of notice and other documents, Unless otherwise pro- vided, all notices, contracts, disclosures, documents and other writings required by sections 2.1060 to 2.1084 of this code to be delivered, shall be delivered personally or by registered or certified mail. A refusal of regis- tered ar certified mail by the addressee shall constitute adequate delivery. All documents shall be delivered to the tenant at the address specified in the lease ar rental agreement between the tenant and the developer or landw lord. If there is no written lease or rental agreement, then the documents shall be delivered to the tenant's address at the converted building. In any sublet unit all documents shall be delivered to the tenant at his or her current address and to the subtenant in possession. If the tenant's current address is unknown, twv copies of all documents shall be delivered to the subtenant, one addressed to the tenant, the other addressed to the subtenant, ~6} Liberal construction. Sections 2.1060 to 2.1084, of this code shall,be liberally construed and applied to promote the purposes and policies contained therein. ~7} Severabilit . If any provision of sections 2.1060 to 2.1084, or the appl~cat~on thereof to any person or circumstance is held invalid, the inval~d~ty does not affect the other provisions or applications of such sec- tions which can be given effect without the invalid provisions or applica- tions, and to this end the provisions of sections 2.1060 to 2.1084 of this code are severable. 2.1084 Condominium Conversion - Re ort on Activit , The city manager shall report to the council by March 30 on any condominium conver- sion activity during the previous calendar year, The report shall contain available data and analysis an the following: information on specific pro- jects, data on the neighborhood, city and metropolitan housing market includ- ~ng vacancy rates, new construction, demolitions, household characteristics, issued building permits, and housing costs, analysis an the operation of sec- tions 2.1060 to 2.1084 of this code, demographic data, and such other infor- mation that the city manager deems relevant. 2.1990 Penalties - S ecific. ~4} A violation punishable under sectian 2.10783}~a} is punish- able by a fine not to exceed $504 far each unit with respect to which the violation has occurred. Each day during which any unit has been advertised or offered or sold and such advertisement or offer or sale has not been withdrawn shall constitute a separate offense. The city attorney's office may apply to any court of competent jurisdiction to enjoin a conversion without a permit found to exist by the city. ~5} A violation punishable under sectian 2.10783}fib} ar 2.10824} is punishable by a fine not to exceed $500 for each day of continuing viola- t~on. Section 2. The City Recorder, at the request of or with the concurrence of the City Attorney, is authorized to administratively change any references ordinance - 15 in this Ordinance or in other provisions of the Eugene Code, ~97~ to sections amended, added or repealed herein. Passed by the City Council this 27th day of April, X987 ~ City Record Approved by the Mayar t is 27th dayApr~l, 7 aya Ordinance - 16