Condo Conversion Zoning and Subdivision Tips
The process of obtaining condo conversion zoning and other necessary permissions from a municipal government should be tough enough to assure that the conversion actually serves the public interest. Too often governing bodies see the creation of homeownership and higher tax base as such noble goals that they overlook less pleasant aspects of the project, such as displacement of long-term tenants. It's really something of a misnomer to talk about condo conversion zoning, but we were asked to write a page to help answer important questions. Often the zoning ordinance is fairly silent about condo conversion. In fact, condominium conversion is more appropriately viewed as a sub-set of subdivision.
Instead of subdividing each part of one parcel of land into a lot for sale, a developer is subdividing the airspace into different ownerships, and sometimes apportioning patios and other outdoor space to particular units. However, the land is held in common, and there may well be common spaces of the building as well. So for our two cents, you should govern condo conversions under the subdivision regulation rather than the zoning ordinance. But we'll just be optimistic and assume that you've combined all your ordinances related to real estate development into one development code. That's a sometimes tedious, but really worthwhile process. The Checklist for Condo Conversion ZoningRegardless of whether these rules are contained in the zoning, subdivision, or development codes, or whether the city enacts a stand-alone ordinance, these matters should be addressed: • Review to ensure that the resulting condominiums will meet current zoning standards in all respects. If this is not possible, due to the building design and a reasonable allocation of space within the condo framework, the applicant should be required to apply for a zoning variance. Further, the variance should not be granted unless the standards in the zoning ordinance are met. • Assurance that the separate units will meet existing building, fire, property maintenance, and other codes after the conversion. Site plan review should be required, but you may also require building review. If you want to be extra tough and discourage condominium conversion as a matter of public policy, you can require that these codes be met before the conversion is made also. • Provision for review of the CC&Rs, which govern everything from land and building use to aesthetics, either by the city attorney and/or a private attorney. This review should be quite aggressive in assuring that the assignment of property rights is clear. • Assurance of adequate parking arrangements. • Provision preserving the public interest in the maintenance of common amenities. If common areas are not maintained at some point in the future because residents don't want to increase their homeowners association fees, we think that the city government should have the right to place liens or assessments on the property, make assessments, as allowed by state law, in order that the city can perform the necessary maintenance and have a method of collecting that money eventually. • Addressing sign regulation, if the condo conversion zoning pertains to industrial or commercial land uses. • Provisions for allowing existing tenants a "first right of refusal" on the purchase of the unit they are currently occupying. This means that before the unit is offered for sale to anyone else, the tenant must be given notice of the conversion and a reasonable time period to purchase the unit he or she is now occupying. If they "refuse" to purchase, then the unit can be offered for sale to others. Be aware that many states now regulate this aspect of condo conversion. • If desired, other matters regulated might include provision for a public hearing, requirements for upgraded soundproofing, and proof of financial capability to carry out the project. Another option for some cities is an inclusionary zoning provision requiring that low-income, elderly, or disabled residents be able to stay in place permanently or for a designated number of years. We're assuming that state law will provide for adequate fire protection, which is commonly much more strict for condos than for apartments, but if there are no applicable state or local laws otherwise, that area should be covered as well. Return from Condo Conversion Zoning to Zoning
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