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HomeMy WebLinkAboutOrdinance No. 18655ORDINANCE N0. (7S~ AN ORDINANCE RELATING TO THE CONVERSION OF APARTMENT BUILDINGS TO COrdDOMINIUMS; AND DE- CLARING AN EMERGENCY. Gn the basis of staff reports, written and oral testimony and submissions, and its own investigations, both. in the matter of the adoption of this Crdinance and Crdinance No, 18535 ~Condo- minium Conversion Moratorium} as well as the submissions, staff reports, written and oral testimony before the Condominium Con- version Task Force, the City Council of the City of Eugene makes the fallowing specific findings ; 1. The conversion of rental housing units to condominium or cooperative units has been, and is occurring, locally and nationwide, widespread concern associated with the issues of tenant displacement and depletion of rental housing stock has re- sulted in numerous municipal ordinances and state statutes res- tricting the conversion process. ~. Inadequate production of new multiple family residential units has increased pressure for condominium conversions. This decrease in multiple family building starts has occurred locally. In 1977, building permits far 959 multiple family units including duplexes} were issued in Eugene; in 1978, 9l5 were issued; and in 1979, 389 were issued. Rapidly increasing construction costs and interest rates, together with depressed rent levels, have contri- '~uLed to this decline. Rents have not kept pace with inflation, ~r~~ile home ownership costs have increased at a higher rate than inflation. The Portland, Oregon Consumer Price Index for July, 1979, shows a rent index of 189.6, a home ownership mortgage} index of 311.1, and an all items index of 227.9. This inadequate production of multiple family housing units has contributed to a low vacancy rate for that type of housing. The May, 1979 vacancy rate for all housing units in Eugene was 1.90, combining a rate of 1.4o in single family units and 3.Qo in multiple family units. Housing market analysts recognize the desirability of maintaining vacancy rates in the rental housing stock of approximately 5o to 7o to maintain an adequate choice in housing price, location, and quality. 3. Using data current as of September, 1979, Eugene had a housing stock of 42,323 dwelling units. Cf this amount, 45.8 are occupied by renters. 3Qo X12,640 units} of this stock are multiple family units. Most t„95.1 a} of the multiple family units are rented and a good portion ~ 3 5 0 ox 4 , 4 6 6 units } of the mul t.ip le family units are located in the central city's census tracts. Crdinance - 1 18655 4. Condominium or cooperative conversions produce an in- crease in owner--occupied housing stock and a decrease in the renter-occupied housing stock. Tf demand for rental units does not decrease concomitantly with~the decrease in. the number of rental units, lower income, handicapped, or elderly households which typicall~r rent, will face a reduction in housing choice. 5. There will likely be a large ,umber of condominium and cooperative conversions in this area in the near future because of the diminishing size of the average household, the financial advantages of hone ownership, the relative expense of single fam- ily structures, and because the financial return to condominium developers, for properties in relatively new and adequate condi~- tion and with acceptable operating cost limits, is more attractive than the comparable return on rental property. 6. The national experience suggests that condominium con- version rates increase in areas, such as here, where the rental vacancy rate is extremely low. Since 1977, 240 Eugene residen- tial rentals in multiple family structures have been converted to condominium ownership. There have been additional conversions since the imposition of the moratorium on November 28, 1979, Since the institution of the moratorium, 91 rental units in the Willamette Towers have been allowed to convert and exemptions were granted for an additional 8~ units in other projects. 7. Although there are positive local effects for condo- minium conversions, the negative effects of such conversions a,re serious and partcu~,arly acute in.areas, such as here, with low rental vacancy rates. These negative effects include forced displacement of those renters unable or unwilling to purchase con- dominium units from the owner, a disproportionate burden on older, handicapped, or low income renters, an exacerbation of rental unit shortages, and a short term and possible long term .increase in housing cysts and rents. The impact of that displacement is more significant in large structures than in small ones.. H. ~ The impact of conversions of rental units to stock co- operatives has similar negative effects. Regulat~.on of stock co~ operative housng~conuersions is necessary for effective regulation of condominium conversions. Those housing cooperatives subject to federal or state regulation require less local regulation. 9. The City of Eugene has legal authority to take action to preserve available housing opportunities within the community and to prohibit community uses therein which are detrimental to the health, safety and welfare of the residents of the city. 1Q. The City Council finds it necessary to establish re- quirements and procedures for the control and approval of the con- version of existing multiple family rental housing structures to residential condominis or cooperatives. Ey their unique char- acter and requirements, conversion projects differ specifically ordinance - 2 f8655 from other subdivisions and apartments. The un~,que status of such projects tends to magnify the effects associated with higher urban densities to a point where they may lead to conditions. of mismanagement, neglect, and blight and adversely affect the public health, safety., welfare, and economic prosperity of the City of Eugene. Such projects nay canf list with the policies of the City of Eugene to provide a reasonable balance of rental and ownership housing within the City and within the City's neighborhoods, to provide a variety of individual choice of tenure, type, price and location of housing, and to insure an~adequate supply of rental housing for low ~,nd moderate income persons and families. To insure that the problems are avoided in both the short and long term, while maximizing the benefits of such projects, it is the express intent of the City of Eugene to treat such projects differently from the multi-family dwellings and other structures which are not candamin-- ium conversions or cooperative ownership housing projects in the City of Eugene. This Qxdinance is intended to insure that residen- tial condominium conversions and stock cooperative conversions are approved consistently with policies and objectives of the City of Eugene, particularly the following: the 19?~ Eugene Community Goals and Policies, which sets as a policy to "endeavor tQ provide a maximum choice of housing for all citizens"; ands the 1990 Plan, which sets as objecti~res to "provide a range and choice of housing types and densities", "'encourage a variety of residential develop- ment types fox all income and age groups where consistent with de~ signated density and character vf~the area", and "increase the supply of reasonably located, sound housing for law to moderate income people, students, and minority groins." On the basis of the abo~'e findings , the staf f reports , and written and oral testimony, the City Council of the City of Eugene concludes that: 1. Because of an increasing rate o~f condominium conversions within the City and the liklihovd of a great number of such conver- sions ar cooperative conversions in the~near future, all of which will result in a decreased supply of rental housing, the fgrced displacement of a substantial number of tenants, a short-term and possible long-term increase in~rents, with a disproportionate im- pact on the elderly, the handicapped, and low~inc4me persons, the City of Eugene is confronted with an emergency regarding its supply of housing, particularly housing for elderly persons, the handicapped, and persons of low income. ~~ithout local regulation of the conversion process, the rental housing supply in this area will not meet projected future demands. 2. Citizen in~'olvement has occurred in the adoption of this Ordinance through the apportun%ty to testify before the City Council in the adoption of this Ordinance and Ordinance No. 18535 and public participation before the Condominium Conversion Task Force ~LCDC Goal 1~.. LCDC Goals 2~ 3, 4, 5, G, 7, 8, ll, 12, 13, 14, 15, 1,6, l7, 18, and 19 are deemed inapplicable. The operation of this Ordinance will not prohibit or seriously impair condominium Ordinance -- 3 18655 or cooperative conversions or impair the health of the current local ar state economic base ~LCDC Goal 9}.. No violation of LCDC Goal l0 occurs by reason of these regulations because the purpose of the Ordinance is to preserve the availabilty of an adequate number of rental units at rent levels commensurate with the financial means of a substantial number of Eugeneans and to allow for continued flexibility of rental types, locations, and densities. This Ordinance is a harmonization of the policies applicable to housing as they relate to condominium or stack cooperative con- versions, as set forth in the LCDC Goals, the Eugene--Springfield Metropolitan Area 1990 General Plan, Eugene Housing Policy Reso- lution No. 2547, the Eugene Community Goals and Policies, the. City of Eugene Housing Assistance Plan, and the City of Eugene Housing Dispersal Policy Plan, the Eugene-Springfield Area Transportation Plan ~T2000}., and applicable neighborhood plans,. 3. Recognizing that, by their unique character and a,mpact an the City's population and housing stock, condominium or stock cooperative conversions differ from other property transfers,~this Ordinance requires the adoption of special, requirements for con- versions of housing units to condominium or cooperative ownerships, the purposes of which are: ~1} to preserve a reasonable balance of ownership and rental housing within the City; {2} to promote the meaningful expansion of home ownership opportunities and to reduce the displacement of tenants in buildings proposed far con- vers ions ; ~:3 } to reduce the impact of such cc~nvers ions on non- purchasing tenants who nay be required to relocate by providing .for procedures for notification and adequate time and assistance far relocation and providing far the reimbursement of costs re- sulting from such relocation; ~4} to prevent the displacement of elderly, low-income and disabled tenants by assuring them of the availability of comparable housing prior to displacement; ~5} to assure that purchasers of converted housing have been properly notified as to the physical condition of the structure which is offered for purchase; and, ~6} to provide far control of rents during conversion process and limitation an right to evict tenants during such period; and ~7} to encourage the con- struction of new housing; and. ~8} to provide that adequate ini- tial reserves for the repair or replacement of common elements be funded by the developer. Now, therefore, based on the findings aid conclusions set forth above, THE CITY OF EUGENE DOES ORDAIN AS FOLI,QwS: Section 1. Definitions. In this Ordinance, the following words and phrases,mean. Affected Tenant- any tenant why resides in a building to be con~rerted at the time of not.~ce of planned conversion. Ordinance - 4 18655 Agent - any person who represents or acts for or on behalf of a developer in selling or offexing~ to sell a condominium, yr stock cooperative 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 provided for under SRS 91.527 or the of any cooperative housing resident board of directors unit project. Building -- a ~aultiple unit building or single unit building, or any combination thereof comprising a part of property. Camman Elements - the general common elements exist ing far the benefit ox common use of more than two unit or share owners which shall .include, where applicable: {.a~ the land whether leased or in fee simple 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;.{b~ the foundations, columns, girders, beams, supports, main wa11s, 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 conditioning, waste disposal and incineration; {e~. the elevators, tanks, pumps, motors, fans, compressors, ducts, and in general all apparatus and installations existing for common use; {_f ~ the premises for the lodging of janitors or caretak~ ers of the property; and {.g} all other elements of the building convenient or necessary to .its existence, main- tenance and safety and norr~ally in common use. A "com- ponent" 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 coanmon element. Cam~able Housing ~ housing which is decent, safe and sanitary, in compliance with all applicable housing codes and open to all persons regardless of race, creed, national origin, ancestry, religion, marital status or gender. dousing is comparable if it is provided with facilities reasonably similar or equivalent to that pro- vided by the landlord in the dwelling unit in which the tenant then resides in regard to each of the following: 1. apartment size, being no less than eighty percent ~8a o} of the area square footage of the dwelling unit in which the tenant then resides. ordinance ~ 5 I$655 2. Rented for an amount na more than one hun- dred twenty percent [1200 of the last month's rent paid by the tenant to the owner o~ the property to be converted. Rent shall not include money paid or charges collected by the lessor for the provision of utility services. 3. The same number of bedrooms. 4. Similar kitchen and bath facilities. 5. Similar special facilities for the particular tenant's needs if that tenant~is handicapped or elderly, including but not limited to elevators and security features. 6. Similar cooling and heating systems. 7. Similar accessibility in terms of time of travel and distance from public transportation routes to the tenants place of employment, community and commercial facilities, schools, medical services and transportation. 8. Such other factors as may be identified in administrative rules issued hereunder. A unit is not comparable if it is located in a building for which a notice of planned conversion has been given or for which reasonable evidence exists that the owner of such building is contemplating conversion to condominium or cooperati~re units. "Comparable housing" does not include: any hotel,~motel or other similar structure or room therein used primarily for transient occupancy, in which at least 60n of the rooms is devoted to living quarters for 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 diag- nostic care and treatment of diseases, including but not limited to hospitals, convalescent homes, nursing homes and personal care homes; or any dormitory or in- stitute of higher education, or private boarding school dwelling unit which is pro~rided for student occupancy. Condominium -- land, whether leasehold or in fee simple and all buildings, improvements, and structures thereon, where the ownership of such land is shared in undivided interests except far exclusive and separate ownership ar right of residency of each residential unit located an the land. "Condominium" shall include all property subject to the provisions o~ Cregon Z,aws, 1979, Chapter 650, and co- operative housing units. Condominium Tr~struments ~- the declaration of unit own ership as described in CRS 91.509 any supplementary a~nfor- Ordinance - 6 18655 motion required for additional development and annexa- tion of property as detailed in CRS 92.518, the unit association by-laws given pursuant to CRS 91.531, the notice of intention filed pursuant to CRS 91.642, the condominium public report issued pursuant to CRS 91.614, the housing code inspection report required under Sec- tion 6~a} of this Ordinance, the informational brochure described at Section 6 ~c} ~2 } of this ordinance, the engineer's certificate required under Section 6~b} of this Ordinance, the building history report required under Section 6 ~.d} ~2 } of this Ordinance, the TAP con- tract required under Section 6 fie} of th~,s Ordinance, and any other document defined as a condominium instrument under administrative rules issued hereunder. "Condominium instrument" as applied to cooperative housing unit pro- jects 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. Condominium Unit - that part o~ the property consist- ing of a building or one or mope rooms intended far any type of independent residential ownership, the boundaries of which are described pursuant to paragraph Vic} of sub- section ~l} of CRS 91.509,. 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 ~2} rental housing units sharing one or more common elements are con~rerted from ownership in whole by a person or group of persons to ownership by several persons whose ownership interests are separate as to residential or commercial units located on the real property. "Condo-- minium conversion" includes the process prescribed by Oregon Laws, 1979 Chapter 650, Sections one through five, and the process of converting rental units to co- operative housing units, but not including the process of converting non-residential commercial or industrial buildings to residential condominiums or cooperative housing units. Cooper five pausing - improved real property owned or leased by a cooperative housing corporation or by any other corporation, partnership, trust or association in which all or substantially all of the shareholders of the corporation or partners of the partnership or bene- ficiaries of the t~'ust ar 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, beneficial interest, or Ordinance - 7 18655 membership held by the person having such right of occupancy. Declaration of Unit Ownershi -the document sub- mitting property to the state unit ownership law filed pursuant to ORS 91.506. Developer - a "declarant" under Oregon Laws, 19?9, Chapter 650, or any person who plans to submit property legally or equitably owned in whole or in part by him to the provisions of Oregon Laws, 199, Chapter 650, 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 negatiatirig a purchase of a building far use as cooperative apartments. Director ~- the director of the Department of Housing and Community Conservation of the City of Eugene. Good Cause for Eviction an eviction for one or more of the Following reasons: Via} the tenant has fail- ed to pay rent to which the landlord is entitled within 10 days after it is due; fib} the tenant has violated a written obligation or covenant of the tenancy other than the obligation to surrender possession upon proper notice, and has failed to cure such violation for fourteen days after receiving written notice thereof from the landlord; ~c} the tenant has permitted or is permitting a nuisance to exist in or is causing damage for 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~en~oyment of any of the other residents of the same or any adjacent building; fie} the tenant is using or permitting the rental unit to be used for any illegal purpose; [~} the tenant, under a terminated written lease or rental, agreement, has refused, after receiving written request or demand from the landlord,, to execute a written extension or renewal, thereof for a further term of like duration with similar provisions and at such terms as are not inconsistent with or ~riolative of any provision of this Ordinance; ~:g}_ the tenant has refused the landlord reason able access to the unit for the purpose of making repairs or improvements or for the purpose of inspection as per- mitted or~required by the lease or by law ar for the pur~ .pose of showing the rental, unit to any prospective pur- chaser or mortgagee; ~k} the person in possession at the end of the lease term is a subtenant not approved by the landlord; ar ~i} the tenancy is conditioned on and in con sideration of the tenant~~ s employment as superintendent, manager, janitorr or in some other sagacity and such em-~ ployment is terminated. Ordinance - 8 18655 Hearings Cf f icer ~- a person appointed by the city manager to decide contested issues arising under this ordinance. Lifetime lease - a lease containing the following provisions: Via} the tenant shall have the option of cancelling the lease at any time upon 34 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 first year's base monthly rent for the unit shall be set at no more than the rent existing on the unit one year prior to the filing of the application far a condominium conversion permit, increased by no more than 1D4Q of the percentage increase in the All Items Consumer Price Index in the Portland Metropolitan .Area, Portland CPI} from the date one year prior to the filing of the application for the condominium conversion permit to the effective date of any lifetime lease; fie} subsequent rent adjustments, if any, may be made no sooner than one year f ron~ the effective date of the lifetime lease, shall be limited tv no more than one per year, and the percentage increase in rent shall not exceed 1Q4~ of the percentage increase in the Portland CPI for the most recent 12-month period; ~f} except as provided herein above, terms and conditions of the lifetime lease shall be the same as those contained ~.n the tenant's current lease, or rental agreement. Mooing Expenses - A fixed amount set by administra- tive ruses issued hereunder which represents an estimate of the average. moving expenses for a move within the City of Eugene. A separate amount for elderly and handicapped tenants shall be set which shall include moving expenses attributable to packing and unpacking. Negotiation - any activity preliminary tq the execu- tion of a binding agreement for the sa~.e or lease of a condominium unit or cooperative share or subscription agreement, including but not limited to advertising, soli- citation, and promotion of the sale or lease of such a unit or share. Off~erin -- any advertisement, inducement, solicita- tion or attempt to encourage any person to acquire an interest in a condominium unit or cooperative share or subscription agreement, other than as security for an ob~- ligation. Rental Housin Unit - a leased residential unit for individual occupancy containing separate kitchen facilities 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. Ordinance - ~ 18655 Sale - every final disposition pr transfer of a condominium unit or purchase of a cooperative share by a developer or his agent, yr by a purchaser from that 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 owne sr hip in a cooperative corporation includin an g y subscrlptian, membership or occupancy agreement. Special Categor Tenants - any person who is elderly, handicapped or how income. ~"Elderly" means any person who is sixty-two ~62~ years of age ar over at the time of the notice of planned conversion. "Handicapped" means any individual who, at the time of final conversion per- mit issuance, has a physical or mental impairment which substantially limits one or more of such personrs acti- vities relating to housing. "Low-income" means any per- son who, at the time of notice of planned conversion, has a current income of less than $no of the median income on a yearly basis determined for Lane County by the Department of Housing and Urban Development. Unit owner - a developer who awns a snit or share, a person to whom ownership of a unit or share has been conveyed, or a lessee of a unit in a leasehold condominium whose lease expires simultaneously 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. Section Z. Scope of Re~,u~.ations. This ordinance shall be applicable to all conversions of rental units to condominiums for which a declaration of unit ownership under oRS 91.506 is filed after the effective date of this ordinance. This Ordinance applies to the conversion of rental units to cooperative apart- ments, including limited equity stock cooperatives and market stock cooperative units, where articles of incorporation are filed and shares are sold after the effective date of this ordi- nance. This ordinance does not apply to any condominium conversion granted an exemption from the operatign of the moratorium under ordinance No. 15535 and for which project either a public report has issued under oRS 91.614 or a waiver thereof has issued under oRS 91.623. Section 3. Limitations ~n Condominium Conversions. t.a~ Nothwithstanding any other provision of law, no person may convert nor shall the~City of Eugene permit the con- version of any rental unit in the City of Eugene into a condo- Ordinance -- 10 18655 minium or cooperative housing unit except as provided in this Ordinance. Any developer or other person seeking to convert an existing structure to condominium or cooperative ownership shall first apply for and~obtain~from the Housing and Community Conser- vation Department condominium conversion permits, Such condo- minium conversion permits shall be issued only upon the approval of the Director, or heara.ngs of f leer upon appeal or review, after it has been determined that the existing structure and plans con- form to all applicable provisions of law and this Ordinance, A preliminary or final conversion permit may not.be transferred or sold unless such transfer or sale is first approved by the Director. ~b~ No earlier than thirty ~30~ days prior to the formal filing of an application for a condominium conversion preliminary permit and concurrently with its delivery to the tenants,,the developer shall, deliver to the City'of Eugene a copy of a nota.ce of planned conversion and an offldavit providing a list of tenants who received the notice and showing the date or dates of delivery ar intended delivery of the notices to the tenants, The notice shall contain written information describing, in general: what steps and actions the developer and others, including governmental agencies, will or must take in order for the building to be converted to a condominium ar stock cooperative; how the tenant will be involved, informed, and assisted at each step in the process, and, what rights the tenants have, whether mandated by law yr voluntarily,prvvided by the developer. The notice shall be in plain and simple language, and contain any additional or 5peclflC information required by the City under administrative rules issued. hereunder, ~c~ After th.e notice o~ planned ~cn~rers~.onis given and prior to leasing any unit, any prospective tenant shall be notified in wri~tin~ of the intent to convert and advised that no TAP benefits allowed under Section ~~f~. of this ordinance will be provided to that tenant: ~d} No de~re~.oper or his or her agent shall negotiate for the sale of converted condominium units or cooperative shares to prospective purchasers until issuance of a preliminary permit to convert by the City of Eugene. ~~e~ No developer or his or her agent shall sell any converted condominium units or cooperative shares until issuance of the final permit far condominium conversion by the City of Eugene. Na f.inal conversion permit shall be issued by the City any earlier than l80 days after the filing of the notice of planned conversion with the City. This lS0 day time period may be waived by the Director if all tenants of the building to be converted have moved, executed lifetime leases, or have executed binding agree~.ents to purchase their units or shares prior to the expiration of the 180 day period. This restriction shall not preclude the entering into of lease-purchase agreements between Ordinance - ll 18655 the developer and prospective purchasers after issuance of the preliminary permit to convert, Section 4. Permit Process - Preliminary Permit. ~a} Application. ~o later than. 60 days after the filing of notice of planned conversions the developer or his or her agent shall apply for a preliminary conversion permit on a form prescribed by the Director and shall submit as part of this application: ~1~ an affidavit attesting to the fact that all tenants who reside in the building to be converted and any affected neighborhood organizations have been notified of the application; and ~.2~ an application fee in the amount of $5?5.00 for conversions of 25 units ar less or $300.00 plus $11.00 for each unit far conversions of 26 units or more. The amount of the application fee may be varied by resolution of the Eugene City council. The applicant promptly shall past this application. and affidavit in a conspicuous place in the building or buildings to be converted. ~b 7 Staf f review. Within thirty ~3 0 } days from the time of a completed application the Housing and community Canser- vatian staff shall issue a staff report on the applicant's com- pliance with conditions for approval of the preliminary permit. Upon completion, the staff report shall be sent to the applicant who shall have seven ~7} days thereafter to submit additional information or material, The applicant promptly shall post the staff report in a conspicuous place in the building or buildings to be converted. ~c~._ Permit approval. ~'ithin fourteen ~..14~ days after the issuance of the staff report the Director shall approve with or without conditions} or deny the permit and shall notify the applicant of his decision in writing. The applicant or developer promptly shall notify each affected tenant in writing of the decision of the Director on the preliminary permit application. 4_a~ Appeal of ermit decision. within ten ~10~ days of the permit decision by the Director any interested person may appeal that decision to the hearings officer. Such appeal shall be instituted by filing a notice of appeal an a form to be provided by the City. ~~lithin fourteen X14 ~ days of the notice of appeal the hearings officer shall conduct a hearing on the permit approval or disapproval, action of the Director. Such appeal shall be limited to the issues of whether the applicant has satisfied the conditions of the preliminary permit approval and whether the information supplied by the applicant in connection with the application process is true and correct. The decision of the hearings officer on the permit approval or disapproval decision of the Director shall be given in writing no ~,ater than ten ~.1Qa days after the hearing, and such decision shall be final. Any preliminary permit approval decision of the Director or the hear- ings officer shall be an intermediate and nonfinal order for pur- poses of judicial review under C,RS 34.010 et sue. ordinance - 12 18655 fie} Reapplication. No person or his or her agent who has been denied a preliminary permit for conversion may reapply for a permit governing the same condominium or cooperative project within one year of the date of the Genial of the application for condominium conversion permit unless there exists a substantial change in conditions which formed the basis of the permit dis- approval decision. ~,f~ Expiration of Preliminar Permit. Any preliminary permit to convert shall expire and be no longer valid unless the applicant applies for a final permit to convert within one year of the date of issuance of the preliminary permit. section 5. Permit Process - Final. Permit. [a~ Application. The permit process for final permit far condominium conversion shall be the same as the process for the preliminary permit, The developer or his authorized agent shall apply for such permit at the Department of Housing and Com- munity Conservation on a form to be provided by the City. The applicant shall pay a f final permit application fee of $ 3 75.00 for conversions of 25 units or less, or $200.40 plus $7,00 for each unit for conversions of 2~ units or more. The amount of the appli- cation fee may be varied by Resolution of the Eugene City Council. At the time of application the applicant shall supplement, if necessary, any information required for .issuance of a preliminary permit for conversion. The Housing and Community Conservation staff shall issue a staff report on the permit within thirty ~30~ days from the time of a completed application, The developer shall have seven ~_7 } days after receiving the staf f report to submit additional, information ar material.. The applicant promptly shall conspicuously post copies of the final permit application and the staff report in the building or buildings to be converted. The Director shall approve with or without conditions or deny the permit within fourteen ~14~ days of the issuance of the staff report. The applicant promptly shall notify in writing all tenants of the Director's decision. An appeal of the Director's decision ray be made to the ,hearings officer upon filing of a notice of appeal on a form provided by the City. ~.b~ Appear ri hts . within ten x_10 ~ days of the permit decision by the director, any interested person may appeal the decision to the hearings officer, The issues of such an appeal shall be limited to whether the developer complied with the con- ditions and contractual obligations agreed to as part of the approval of the preliminary permit, whether there exists sub- stantial evidence to support the Director's final permit deci- sion, and whether information supplied by the developer in can~- nection with the ~ina1 permit to the Director is true and correct. The timing of such appeal and hearings officers decision shall be the same as in the preliminary permit process. Ordinance - 13 r86ss Vic} Hearin, . The hearing by the hearings officer shall be a contested case hearing and a determination of the hearings officer shall be final. No applicant or his or her agent who has been denied a final conversion permit for a condo- minium or cooperative project may reapply for a permit for the same within one year of the date of denial of the application for final condominium conversion permit unless there exists a substan- tial change in conditions which formed the basis of the permit disapproval decision. Section 6. Preliminary Permit Approval. In order to obtain approval by the Director of an application for preliminary condo- minium conversion per~it, the applicant must satisfy the following. conditions: ~a} Housing Code Ins ection. Prior to the application for preliminary condominium conversion permit the developer, at his expense, shall request the City of Eugene Housing and Community Conservation Department to inspect the building or buildings to be converted for compliance with the housing code, Eugene Code, l9?l, Sections S.2G5 through 8.35. The inspection shall be com- pleted within 7 days of a developer's request unless the developer fails to provide or refuses access to the housing code inspector. A copy of the housing inspector's inspection report shall be pro- vided by the developer to the Director as part of the application far a preliminary permit for condominium conversion. {b} Provision of an ~ En ineer/Architect' s Certificate. The applicant shall supply to the Director a certified report from a qualified licensed engineer or registered architect describing the condition and expected useful life of all common elements in- cluding the roof, foundation, external and supporting walls, mechanical, electrical, plumbing, heating, all other major mech- anical 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 approxi- mate dates of insta~,lation of the common elements and components and the dates and description of major repairs or renovations of the com~rton elements and components. The report shall identify the sources used in the estimates of expected useful life. ~c} App~.~,cant ~ s Affidavit. The applicant shall supply an affidavit of the applicant attesting to the truth of the following: 1. That the applicant has kept signed receipts from all affected tenants certifying that each such tenant has received copies of the notice~vf planned conversion and the proposed tenant assistance program contract. The applicant shall state in the affidavit that such receipts shall be kept on file in this City by the de~reloper or his or her agent subject to inspection by the Director or his designee Ordinance -~ l4 18655 at any reasonable time for a period of three years from the date the receipt is taken. For the purposes of this provision, a refusal to accept notice of intent to convert or the tenant assistance program contract shall constitute receipt by any affected tenant. 2, That the informational brochure on condominium conversion provided by the department of Housing and Com- munity Conservation has been distributed to all tenants who reside in the building proposed to be converted and that sufficient brochures have been purchased by the developer for distribution to prospective purchasers. 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. 4. That no rent increase since the notice of planned conversion for any affected tenant has occurred except in a proportional amount equivalent to the rise in the All Items Portland Consumer Price Index since the date of the last rent increase .for the unit in which that tenant resides. ~.d~ provision of Informational Documents . The follow- ing documents sha~.l be provided with the application for a prelimi- nary permit for condominium conversion: 1. Information to State. All issued condominium instruments. ~. Building History. A building history report showing, if such information is reasi~nably available, the date of construction of all cox~u~on elements and components thereof of the building, a statement of the major uses of such building since construction, the date and description of each major repair of any con~on elements since the date of construction, the date and description of each major renovation of any element since the date of construction, and the names and addresses of the current owners of all improvements and the underlying land of the building proposed to be converted. The definition of "majar repair" and "majar renovation~T shall be set under administrative rules issued hereunder. 3. Rental Histo~rr. A rental history report detail- ing, if such .information is reasonably available, the size and square footage of the units in each building, the current or last rental rater the names and addresses o~ each present and each affected tenant, the monthly rental rates for the preceding three years for each un%t, the monthly vacancy over the preceding three years, the number of evictions over the preceding three years, the name o~ each special category Ordinance - 15 18655 tenant presently residing in the project, and the number and type of special category tenants over the preceding three years. For any such information not reasonably avail- able, the applicant shall state what steps were taken to secure such information. 4. Tenant Survey. A survey of all affected tenants in ~,~~ the conversion project indicating how long each tenant has been a resident of the project, why each tenant moved into the project, how long each tenant had planned to live in the project, whether each tenant would be interested in purchasing the unit, where each tenant would prefer to relocate if the conversion took place and the tenant did not purchase a unit, the extent of tenant approval and disapproval of the conversion, and any other information deemed relevant by the Director, To comply with this provision the applicant shall provide a questionnaire in a form approved by the City to each affected tenant with an envelope, postage prepaid, addressed to the City Housing and Community Conservation Department. The questionnaire shall direct the tenant to return the coampleted fc~rrq, directly to the City Housing and Community Conservation Department. fie} Tenant Assistance Plan. Each appl~,cant for prelimi-~ nary permit for condominium conversion shall prepare and supply to .the City a Tenant Assistance Plan ~~'~P~. No TAP need be pre- pared where all of the affected tenants have executed binding con- tracts to purchase their units or shares or have permanently relo- cated at the time of the preliminary 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 preliminary permit approval. Each TAP contract shall contain the following: 1. An obligation on the part o~ the developer to pay moving expenses~to special category affected tenants. The amount of moving expenses to be paid shall be set by admin- istrative rules issued hereunder. Any such moving expense reimbursement shall be paid no later than twenty-four ~24~ hours prior to the date the apartment unit is to be vacated by the tenants or subtenants if the developer has received at least ten ~.1~~ days advance written notice of the date upon which the apartment unit is to be vacated. If no such notice has been received, the reimbursement shall be paid within thirty X307 days after the rental apartment unit is vacated.. 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 repre- senting hous~.ng 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 sha~,l require the counselor to use his or her best Qrdinance -- 16 18655 efforts to obtain replacement housing wh~,ch meets the articulated special needs of each special category tenant in addition to being comparable as defined in this Ordi- nance. 3. An agreement by the developer to offer independ- ently two comparable housing units tQ each special cate- gory tenant prior to giving any notice of tenancy termina- tion to that tenant. If the status of the offered unit as comparable is contested by the tenant, it shall not consti- tute such an offer until the decision of the hearings officer on its compatibility. An independent offer is one which is not an outstanding offer tv 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 issu- ance of the final permit for condominium conversion. 5. An agreement by the developer not to raise the rent of any affected tenant prior to issuance of the final permit for cvndominiu~m conversion except in a proportional amount equivalent to the percentage rise. in the All Items partland Consumer price Index since the date of the last rent increase for the unit then occupied by the .affected tenant. 6. A provision that the favor of all affected tenants party beneficiaries. 7. A provision that the liabilit~r for the condominium developers actions yr failure contract shall operate in of the building as third City of Eugene assumes no conversion project ar the to act. $. A provision that reasonable trial and appellate court attorney`s fees shall be paid by the non--prevailing party a.n any action or suit an 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. ~~~ Good Faith. It shall be grounds for denial of a preliminary conversion permit that the owner of the building to be converted has evicted more than one elderly or handicapped Qrdinance - 17 18655 tenant without good cause during the three years preceding the date of application for preliminary conversion permit. Section 7. Final Conversion Permit Approval. The following are conditions of final permit approval: ~.a7 V~arrant~. Execution by the developer of a warranty in favor of the unit owners association, purchasers of all condo- minium units, and any remaining tenants in the~buildi.ng, covering and warranting the materials, workmanship, operation, construction and condition of each cannon element and components thereof in the building to be converted fvr two years from the date of conveyance or sale of the first unit or share in the building sold to a con- dominium or cooperative unit purchaser. No common element or com- ponent thereof need be warranted if it is certified in the engineer/ architect's report as having an expected useful life of greater than thirty X30} years or the remaining useful life of the building, whichever is the smaller. The developer shall provide his own warranty whether or not any manufacturer's warranty currently exists. ~'or the purposes of this subsection, no unit shall be deemed conveyed un],ess conveyed to a bona fide purchaser. Na action to enforce the warranty created by this subsection may be brought after one year from the date such warranty period has expired except for structural defects which occurred during the warranty period which were latent and undetected in fact; and in the event of such latent defects , no action shall be brought after six months from the date such defect is detected. 1. Compliance with warranty. To insure compliance .... ~ .. with the warranty set forth in this section, the developer shall set up escrows for other securities? or execute a bond, acceptable tv the City, pursuant to administrative rules promulgated under this Ordinance. Any such escrows or securities shall revert to the sole control of the developer at the expiration of the warranty period unless any warranty claim exists against it. Escrows or other appropriate. securities shall be in an amount constituting 104 a of the estimated replacement cost for all items war- ranted. Any bond given as security shall separately band payment by the developer of warranty claims on each item warranted. 2. Inclusion in Contracts. All sales contracts for the first time sale of any condominium unit covered under this Ordinance and entered into during the warranty period shall contain the above express warranty by the developer. 3, warranty Exclusions, The follo~ring are exempted from the above warranty provided the work was performed in accordance with then existing applicable codes: Ordinance - 18 I8'655 a. Damage caused by the acts o~ unauthorized third parties, i~.cluding ~randal.~sm, negligence, improper maintenance, or improper operation by anyone other than the developer or his employees, agents or subcontractors; b. Acts of Gods and accidents, including but not limited to fire, explosion, smoke, water escape, windstorm, hail, lightning, flood, and earthquake; c. ~~'ormal wear and tear and normal deteriara~-~ ton; and, d. Ordinary maintenance and repairs. 4. DeyelQp__er'_s Warran,t~,,,,,,obli~at~.ons. ~"ollowing timely notification by the unit owners associati~vn, or if control of the building has not been transferred to such association, by three ~.~~ unit owners yr 30~ of the non--developer unit owners, whichever is smaller, .unit owners groups the developer shall promptly make any required repairs or replacements of any item warranted. If the developer fails to comply with the warranty, the unit owners association or group may ratify the developer in writing of its intention to correct the condi- tion at the developer's expense. If the developer fails to comply within 1~ days after being notified by the unit owners association or group or as promptly as conditions require in case o~ emergency, the unit owners association or group may have the work done and shall have recourse to the escrow, security, or bond provided above. Tn order to cause the warranty tv be honored, the unit owners association shall give timely notice of any defect or f al lure of operation to the developer or his successor and shall first seek to en~- f orce any applicable manuf acturer'~ s warranty. 5. Arbitration. Any disputes over any such warranties shall be settled by binding arbitration to be conducted and governed by the provisions of OAS 33.10 et seg. ~b~ Cash Reserve Escrow Account. A cash reserve account shall be established and funded by the developer for the benefit of the unit owners association. Such reserve account shall be for replacement reserves, and shall be non-r-efundable to the developer. The reserve account shall be funded by cash or by an assignment by the developer of all sales proceeds from the sale of condominium units or cooperative shares up to the amount required to be funded. The developer shall be entitled to any accrued interest on the re- serve account at the expiration of the warranty period. The unit owners association shall not be entitled to draw upon such reserve account until tie expiration of the warranty period. Ordinance - lg 18655 The reserve account shall be Funded in an amount equal to two times the replaceament cost of each warranted item divided by the number which is the expected useful life of each such warranted item, as specified in the engineer/architect's report. ~.c~ submission of informational Report on TSP. The developer shall submit to the director informational reports on the tenants relocated since the filing of the notice of planned conversion. This informational report shall show moving assist- ance given to those tenants, shall identa.fy comparable housing units offered to special category tenants and any acceptance or rejection of these offers by the tenants, shall contain a housing counselor report identifying all displaced tenants and the pro- gress, if any, on the relocation of special category tenants, and shall include signed statements fror~ all displaced special cate- gory tenants stating that they understand and have received all benefits allowed under the TAP and this ordinance. ~d~ Ce~ti~icate of Repairs. The developer shall pro- vide a certificate of repairs by the housing inspector showing correction of all housing code violations found in the Code ~.n-~ spection report. The certification shall state that only those defects discovered by the housing code inspector and listed on the inspection report have been corrected and that the certifi- cation does not guarantee that all housing code violations have been corrected. No developer, however, shall use the building de- partment certification in any advertisa.ng or indicate to anyone, in any fashion, for the purposes of inducing a person to purchase a condominium or cooperative unit, that the City of Eugene or any of its departments have ('approved" the building or any unit for sale because the City has certified the building or any unit to be in any particular condition. ~e~ valid Preliminar~r~ Permit. A valid preliminary permit to convert must exist at the tine of final conversion permit approval. section 8. Post-Permit Obligations and Procedures. ~.a~ submission of Information Reports. Within 34 days of the issuance of the final conversion permit, the developer shall submit to the Director informational reports on forms pro- vided by the Directory pertaining to the tenants of the conversion relocated since the granting of the final permit application. The informational reports shall be submitted monthly and shall con- tinue to be submitted until all special category tenants have been successfully relocated or offered ~.if etime leases The developer shall deliver to the C~,ty completed pur- chaser information forms for each purchaser of a condominium unit. These forms shall be provided to the developer by the Director and shall request information on the previous tenure :owner or renter} ordinance -- 2 4 18655 of each occupant of the condon~ini~n unit, and the present tenure status of that occupant's previous dwell%ng. This information may be used in determining the allowable conversion rate. ~b~ Limitation on Eviction or Rent Increases of Re- maining Special Cate or Tenants. No developer shall evict ex- r cept far good cause, any special category tenant prior to the refusal of any such tenant to accept either of two offers of com- parable housing by the developer. To be valid, an such offer of y 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 was an independent offer. ,Fail- ure of any such tenant to accept a~comparable housing offer within five ~.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 shall have an additional period of twenty-five X25} days to accept a comparable housing offer. ~.l} No special category tenant residing in the buildin g after issuance of a final condominium conversion permit and prior to the offer to that tenant of two comparable hausin g units shall have his or her rent raised except in a pro or-- p tianate amount equi~ralent to the percentage rise in the All, Items Portland Price Index since the date of the last in-~ crease for the unit then occupied by that special category tenant. ~c~ Teramination of Housin Counselor's Services. The services of the housing counselor shall no ion er be re ui g q red upon either the complete relocation of all special category ten- ants or relocation of some but not all special category tenants and the execution of lifetime leases with the remainin s ecial g p category tenants . td~ Disclosure to Purchasers . In addition ~ tQ the dis-~ closure required by the developer to~pur~hasers ursuant tQ ORS P 91.634, the developer shall make availab~.e to the purchaser rior to conve once of the unit b deed p Y y lease, ar contract, copies of issued condominium Instruments. The developer shall keep a re- ceipt signed by each purchaser acknowled in that the ers g g p on entering into a contract to purchase has received or has had the opportunity to review the condominium instruments, and has com- pleted~the purchaser information form. Such receipts are to be kept on file in this City by the developer~or his a ent or ffi- liate ~sub'ect to ins ecti ~ g~ ~ ~' ~ p on by .the Director or his dCsignee at any reasonable time for a period of three years from the date the receipt is taken. Prior to disclosure, the following para ra h must be cons icuvusl dis la ed g p ~ y p y on the first page o~ each copy of the condominium instrument package: THE CITY DF EUGENE HAS RECE~~TED THE CONDoMINLUM INSTRUN~ENTS FQR FILING ON ~ THE CITY H,AS RE~IEwED ordinance -- ~l 18655 THE CONDOMINIUM INSTRUMENTS FQR CQMPLZANCE wITH THE RESIDENTIAL CONDOMINIUM ORDINANCE BUT ASSUMES NQ LIABILITY FOR THE PRO~'ECT OR THE DECLARANT'S ACTIQNS.OR FAILURE TO ACT. fie} Resale of Units. 2n the event of a resale of a unit or share by a unit or share owner, other than a developer, the unit or share owner shall furnish to the purchaser, before execution of any contract for sale of the unit or share or other- wise before conveyance, a copy of the condominium instruments, the declaration, the bylaws, the rules and regulations of the association or cooperative, and a certificate containing: ~1} a statement disclosing the~e~ffect on the proposed disposition of any right of first refusal or other restraint in the free aliena- bility of the unit; ~2} a statement setting forth the amount of the monthly common expense assessment and any unpaid common ex- pense ar special assessment currently due and payable from the selling unit or share owner; ~:3} a statement of any other fees payable by unit or share owners; ~_4} a statement of any capital expenditures proposed by the .association or cooperative for the current and two next succeeding fiscal years; ~5} a statement of the amount of any reserves for capital expenditures and of any portions of those reserves designated by the association or co- operative for any specified projects; ~,6} the most recent regu- larly prepared balance sheet and income expense statement, if any, of the association or cooperative; ~7} the current operating bud- get of the association or cooperative; ~8} a statement of any judgments against the association or cooperative and the status of any pending suits to which the association is a party; fig} a statement describing any insurance coverage provided far the benefit of unit or share owners; Cl0} astatement as to whether the executive board has knowledge that any alteration or improve- ments to the unit or to the limited common elements assigned thereto violate any provision of the declarations; X11} a state ment as to whether the~executve board has knowledge of any vio- lotions of the health or building codes with respect to the unit, the limited common elements assigned thereto, or any other portion of the condominium or cooperative; and x.12 } a statement of the re- maining term of any leasehold estate affecting the condominium or housing cooperative and the provisions governing any extension ar renewal thereof. The Board of Directors of a unit owners assaci- ation ar cooperative corporation shall provide any such seller with the certificate described above within ten X10} workin da s g Y of a request by a seller. and may charge the seller a reasonable fee for the preparation of this information. ~f~. Revocation of Conversion Permit. A condominium conversion preliminary or final 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: Ordinance - 22 1$655 [1} Failed to comply with the terms of a cease and desist order; ~2~ 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 in real estate transactions; ~3} Disposed of, concealed or diverted any funds or assets of any person so as to defeat the rights of unit purchasers; ~:4~ Intentionally or repeatedly failed to perform any stipulation or agreement made with the City as an inducement to grant or reinstate any conversion permit; ~.5~ Made intentional misrepresentations or concealed material facts in an application far a permit; or ~_6~ Intentionally or repeatedly violated any provision of this ordinance. Findings of fact shall be accompanied by a concise and explicit statement of the underlying facts supporting the findings. ~ de- termination of a hearings officer on a revocation of a permit shall be final. fits. Section 9. Dispute Resolution -- Tenant Eli ib.ility for Bene- ~a~. Eligibilit of Tenant as Special Category Tenant. In the event of controversy over whether a~tenant is elderly handicapped or low income and qualifies as a special category tenant, the Director or his designee shall make a determination, which shall be final and nonappealable to a hearings officer. The developer and tenant shall have notice of such request for determination and opportunity to submit written arguments., com- ments and affidavits prior to the determination of eligibility by the Director. ~_b~ Status of ,alternative Rental Unit as Comparable. In the event of a disagreement between~~the tenant and the devel- oper as to whether an~offered alternative dwelling unit is com- parable 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 de- cision of the housing counselor by requesting a hearing with the City. Such hearing shall beyrequested on an application form to be supplied by the City, the contents of which may be governed by administrative rules issued under this Ordinance. The hearing shall be before the hearings officer and shall be conducted within l0 days from the request far a hearing. The determination of the hearings officer shah be final. ordinance -- 2 3 18655 Section 10. Enforcement. ~a~ Cease and Desist Orders. 1~ the City determines that a person has Via} violated any provision of this ordinance; ~b~ directly or through an agent or empiQyee knowingly engaged in any false, deceptive or misleading -adyertising,~promotian or sales method to dispose of a unity ~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 ~e~ ,violated any lawful order or rule of the City, the Director may issue an order requiring the person to cease and desist from the unlawful practice. b General En orcement Powers. If Zt appears that a person has engaged or is about to engage in an act or practice constituting a violation of any provision of this Ordinance or rule, regulation or order thereunder, or failed to faithfully perform any stipulation or agreement made with the City as an inducement to grant or reinstate any conversion permit, the City with or without any prior administrative proceedings may bring an action in the Circuit Court for Lane County to enjoin the acts or practices and to enforce compliance with this Ordinance or any .rule, regulation, ar-der or contract thereunder, ~.c~ Cximinal Proceedings and Penalties. 1. Conversion without hermit. Any person converting without a permit shall be guilty of a violation, The penalty for such violation shall be not mare than $5.00 for- each unit with respect to which the ~riolation has ocourred, 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. ~, False Statements; Concealment of Facts. any person who wilfully makes an untrue or mislead- ing statement of material facts or wilfully omits to provide required data on any document prepared pursuant to this Ordinance shall be guilty of a violation,. and upon conviction, shall be subject to a f ine of not more than $ 50 0 for each day of con- tinuing violation. ~a~ Rulemakin~ authority. The Director is authorized to promulgate any rules necessary fox the implementation of this ordinance, which in the .discretion of the Director may be review- ed by the Council prior to i~plementation thereof, Such rules may include, but are not limited ta, regu~.ations on the permit ordinance - 24 1865s application process, elaboration of the. necessary conditions for permit approval, contents of a TA,P contract, the definition. of comparable housing, the selection of a housing counselor, the con- tents of the housing counselor contract, procedural and substantive rules on dispute resolution and enforcement mechanisms, and rules relating to the expiration and revocation of final conversion per- mits Section 11~ ~aiyer b Director of Conditions ~for~Preliminary and k~inal Permit, the Director may exempt a cooperative housing unit project from the pro~risions of this ordinance requiring the provision of a housing code inspection reports the provision of the engineer/architects certificate, and the obligation to exe- cute a TAP contract as conditions for a preliminary permit as well as the provisions of this Ordinance requiring a warranty, warranty security, cash reser~re account, TAP informational reports and certificate of repairs as conditions for a final conversion permit. Such exemptions shall be for any or all o~ the above obligations or conditions. Any such exemption shall be granted only where the operation of federal or state law or an executed regulatory agreement with a federal or state regulatory 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 this Ordinance. The Director may issue administrati~re rules ~.dentifying such federal or state regulations, laws, or regulatory programs for housing cooperatives, which duplicate or~offer equivalent protec- tion as that afforded under this Ordinance prior to granting any such exemption. Such administrative rulemaking shall solely be initiated upon a petition for rulemakng to the Director of an interested person. Such petitioner must show that the specific benefits under federal. or state regulation are equivalent to the specific benefits granted under this Ordinance. Once these admn- istrative rules have issued, the application of the rules to any preliminary or final permit application shall be determined and adjudicated in the conversion permit process. Section 12. General Provisions. ~:a} Anti-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 con- version of such building to a candon~inium. ~b~ Variation b Agreement. Provisions of this Ordi- nonce may not be varied~~~~by agreement and rights conferred by this Ordinance may not be waived prior to the giving of notice of plan- ned conversion. Any tenant benefits allowed under this Ordinance may be waived in writing by a tenant after notice of planned con- Ordinance - 25 )8655 version 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 agree- ment are clearly and fairly disclosed, and adequate considers-~ tion for the agreement is specifically stated. A developer may not act under a power of attorney or use any other device to~ evade the limitations or prohibitions of this ordinance or the permits thereunder. ~c~ Obligation of Oood. Fa~.th. Euery contract or duty governed by this Ordinance ~:~nposes an obl%gation of good faith in its performance or enforcement. ~d~ Retaliation Evictions Zf a developer has as his dominant purpose retaliation against a tenant because of the exercise by the tenant of rights under this Ordinance, or for expressing any opinion on any matter relating thereto, or because of the tenant's denial or refusal to consent to conversion, and if the tenant is not in default in payment of his rent or other- wise in breach of the rental agreement, the developer may not re- cover possession of the rental unit in any action or proceeding, cause the tenant to quit involuntarily, increase the rent or de~- crease any services for one year from the date the developer's application for final or preliminary condominium conversion per- mit is denied. ~e}. Deliver of Notice and Other .Documents . Unless otherwise provided, all notices, contracts, disclosures, docu- ments and other writings required by this Ordinance to be delivered, shall be delivered personally or by registered or certified mail. A refusal of registered yr certified mail by the addressee shall constitute adequate delivery. All documents shall be delivered to the tenant at the address specified in the lease or rental agreement between the tenant and the developer or landlord. If there is no written lease or rental agreement, then the documents shall be delivered to the tenants address at the converted bu~,ld- ing. In any sublet unit all documents shall be delivered to the tenant at his current address and to the subtenant in possession, Tf the tenant`s current address is unknown, two copies of all documents shall be delivered to the subtenant, one addressed to the tenant, the other addressed to the subtenant. ~_f~ Liberal Construction, This Ordinance shall be liberally construed and applied to promote its purposes and policies. ~g~_ Seyerability. zf any provis, or the application, thereof to any person or invalid, the invalidity does not affect the applications of this Ordinance which can be the invalid provisions or applications, and provisions of this Ordinance are severable. ion of this Ordinance circumstance is held other provisions ar given effect without to this end the Ordinance 26 1865s Section 13. Conversion Rate Re ort. The Director shall report to the City Council by January i of each year on the num- ber and rate of conversions for the previous calendar year. Such report shall note whether the issued conversion permits exceed the level allowed under the advisory conVexsgn rate formula as set forth hereunder. The current year's units alloyed to convert under this advisory formula shall be equal to the estimated supply of new multi family units minus the expected demand due to popu- lation increases, adjusted for the estimated ~.oss of rental units due to conversion. The estimated supply shall be the annual aver age of issued building permits for multi--unit and duplex housing units for the preceding three calendar years. The expected de- mand shall be the average annual population increase minus new population due to annexation already haused~ and minus any new population housed in group quarters. Such demand figu~~e shall be divided by the avexaae household -size to determine the additional housing units needed. The additional needed housing unit figure shall be multiplied by the estimated percentage of occupants who rent to determine the number of needed rental .units. This number of .needed rental units shall be subtracted from the supply figure to determine the current years units allowed to be converted, The total units allowed to convert in the current calendar year shall be equal to the current year's units divided by the percent of units expected to be occupied by former homeowners plus any carryover in units allowed to be converted in prior years. The carryover shall be a carry forward for up to three years of any unused allocation of allowable condominium conversions under this formula. No carryover shall be allowed for any year preceding the effective date of this Ordinance. The surplus to be carried aver from one year to the next shall be equal to the units allowed to convert far that year minus the actual number of units for which a final condominium permit is issued during that year, The average annual population growth, average annual growth due to annexation, average annual growth in group quarters population, percentage of households which are renters., and per- centage of converted units expected to be occupied by former owners shall be set~by administrative rules issued hereunder. Section 14. This Ordinance is hereby declared to be an emergency measure to take effect immediately. The facts consti-- tuting an emergency are the expiration of the existing moratorium on the conversion of residential structures to condominium owner- ship, the existence-of numerous residential structures within the City of Eugene which have been proposed for conversion to condo- minium ownership, the need to insure, in the interest of the public health, safety and welfare, that the regulations contained in this ordinance take effect before the expiration Qf the mora-~ toriurn and be made applicable to all proposed residential condo-~ minium conversions. Pas ed by the C~,ty Council this day of ~ ~~.v1 ~ , 19 8 Q _ _ _ _ ~ .. ~/ ~'L~. City Recor er Appr ved by the Mayor- his of ~~~ ~ 198D Mayor ordinance ~- 2 7 .