Loading...
HomeMy WebLinkAboutNB 4a PURCHASE PLAN 07-19-82DATE: July 19, 1982 NEW BUSINESS NO. 4 Inter-eom TO: FROM: SUBJECT: Honorable Chairman & Planning Agency Members Community Development Department Relocation & Purchase Plan Applicant: Location: Request: Cai-State Associates Windsor Garden Apartments, 1651 Mitchell Approve relocation and purchase plan for Windsor Garden Condominium Conversion BACKGROUND & DISCUSSION On November, 1980, the Planning Agency approved Use Permit 80-21 which authorized the conversion of the Windsor Garden Apartments to condominiums. Since then, the Use Permit has been extended to comply with City regulations. One of the conditions of approval was that a tenant relocation and purchase plan be approved. Enclosed is that plan which was modeled after Cai-State Associates's other condominium conversion plan, the Californian. RECQI~qENDED ACTION Approve as submitted. MAC:ih 7-14-82 RELOCATION AND PURCHASE PLAN FOR THE WINDSOR GARDEN CONVERSION In accordance with Tustin City Code Section 9274e(4) Cal State Associates, Inc. will implement the following tenant relocation/purchase plan. Each plan is mutually exclusive o£ the other and participation in one disquali- fies the tenant for participation in the other. RELOCATION/PURCHASE COORDINATOR A coordinator has been appointed to assist tenants with their individual relocat.ion or~ purchase efforts during the conversion process. The cQordinator will have the pri- mary responsibility o£ assisting the tenants with their re- location or purchase ~lan and will handle all communications between the tenants a££ected by the conversion process and Cal State Associates, Inc., the developer of the project. The coordinator will be available to assist tenants who elect the "tenant relocation plan" by: 1 Overseeing that prompt payment of all relocation monies due under this program is paid to the tenants. 2. Providing tenants with a directory o£ available rental housing units. 3. Advising tenants of reliable moving companies who will discount their regular prices by 15~ to Windsor Garden relocation tenants. 4. Supervising the ~rompt refund of security and damage deposits to tenants as provided for in Section 1950.5 o£ the California Civil Code. 5. Coordinating notification to tenants of repair or improvement work, inspections and showing of the units to prospective purchasers or mortgagees. The coordinator will also assist the tenants electing to participate in the "tenant purchase program" by: 1. Providing explanation of the methods for purchase available to each tenant if requested. 2. Providing information concerning lending in.stitutions and'their rates and charges. 3. Advising tenants of all price discounts for which they may qualify under this plan. TENANTS ELIGIBILITY REQUIREMENTS All entitlement~ due under this Relocation and Purchase plan will be on a per'unit basis, not per person. "Tenant" refers to' the apart.ment's occupants collectively as one unit rather than any one individual.. Where more than one person occupies an apartment 'and each person has signed the rental agreement, the benefits of the plan will be distributed to the individuals on a prorata basis in equal shares. One must be a signatory on the rental agreement in order to qualify as a "tenant". In order to qualify for participation in the "tenant relocation plan" or the '~tenant purchase plan" the tenant as previously defined must meet certain minimum eligibility re- quirements. Those requirements are: 1. The person or persons must have been a tenant of Windsor'Garden on November 17, 1'980 (the date the conversion was approved by the Tustin City Council) and 2. They must have either: (a) remained a tenant for 120 days thereafter, or (b) remained a tenan~t until required to vacate their apartment without cause being stated (i.e. given a 30'day notice without s~ating the reason) or (c) remained a tenant until the time of issuance of building permits by the Ci.ty allowing the commencement of con- struction f.or the conversion (excluding permits issued to "repair" or do other non-conversion related work). -2- .3. A tenant who moves into his/her apartment after November 17, 1980 with the written consent of Cal State Associates, Inc. and who did not prior to becoming a tenant receive written notification of the 'intended conversion is exempt from the qualification requirements as stated in Paragraphs 1 and 2 above and shall receive bene£its as i£ those requirements and been satisfied in full. A~though people who move into the Windsor Garden Apart- ments after November 17, 1980 and who received written notice are not eligible to participate in these plans, Cal State Associates, Inc. does reserve the right to waive these qualification requirements and allow a "new" tenant to receive benefits under either of these plans should it choose to do so. ELIGIBILITY DISQUALIFICATION A tenant may be otherwise eligible but will receive no benefits from this plan if he/she: 1. Fails to voluntarily vacate on or before the date requested in writing by Cal State Associates, Inc. provided the tenant is given at least 180 days written notice of intention to convert prior to any termination of a tenancy due to the condominium conversion. 2. Has had legal proceedings commenced against him/her and Concluded adversely against him/her arising out of acts which constitute a breach of the rental agreement; for example, but not by way of limitation, for failure to .pay rent or fail- ure to comply with a notice to perform covenant or surrender possession, or 3. Fails to grant access to their apartment to Cal State Associates, Inc. upon. two days' notice for purposes of repair, improvements, inspection, £or showing to prospective purchasers or mortgagees. TENANT ASSISTANCE PLAN GENERAL BENEFITS To qualified tenants who elect the relocation plan, Cal State Associates, Inc. offers a cash payment in compliance with Tustin.City Code Section 9274e(4) (a). This payment will be paid on the same day as the tenant vacates his/her apart- ment. The amount pa~d to the tenant will be in accordance with the payment schedule in effect on the date of move out, but in no event will it be less than twice the amount of the last month's rent or $600.00, whichever is greater. -3- INCONVENIENCE BENEFITS In addition to the General Benefits outlined above, Cal State Associates, Inc. will provide its qualified ten- ants with certain payments for their inconvenience. Provided a tenant is (1) not in default of his/her rental agreement, and (2) was a tenant on November 17, 1980, and (3') remains a tenant for 120 days thereafter or vacates earlier at the request of Cal State Associates, Inc. the ten- ant will qualify for a payment, on move-out, of $150.00 to be used as an additional cash payment for moving or inconvenience expenses. Tenants will qualify for this payment even though they move voluntarily provided' t.he other requirements are met. SPECIAL PROTECTION FOR ELDERLY, DISABLED OR HANDICAPPED PERSONS Any tenant who has otherwise met the TENANT ELIGIBILITY REQUIREMENTS, as previously defined and is either: 1. Elderly: A person 60 years of age or older, or 2. Disabled: As defined by U.S. Code, Title 42, Section 423, or 3. Handicapped: As defined by California Healt'h And Safety Code, Section 50072 qualifies for additional benefits. These tenants will receive ALL of the following: 1. Payment of $250.00 of moving company expenses incurred for relocation. 2. Waiver of the rent for the last 30 days before the required move-out date. SPECIAL PROTECTION FOR LONGER TERM OCCUPANCIES: 1. A long term tenant is a person who' has been a tenant of the Windsor Garden Apartments continuousl'y for 84 months prior to move-out or longer. 2. Such a "long term tenant" will receive an additional 30 day notice for a total of 60 days notification. -4- SECURITY OR DAMAGE DEPOSITS Cal State Associates, Inc. will comply with Section 1950.5 of the California Civil Code and refund to tenants all of their security or damage deposits (excepting costs incurred for other than normal wear and tear) within 14 days of the date the affected tenant vacates the premises. RENT RAISES Following approval of any tentative map or use permit there will be no rental increases without prior city council approval for tenants who qualify for the relocation/purchase plan and who continue to occupy the same apartment from November 17, 1980 to date of move-out. All other apartment units may experience rental increases as determined by Cal State Associates, Inc. A tenant who has received his/her relocation benefits will not again qualify for the relocation/purchase plan. If the tenant chooses to relocate in another apartment in the Windsor Garden Apartment complex, the rental ra~e for the tenant at the new apartment will be at the then pre- vailing rate for non-qualifying tenants. REPAIR AND MOVE-OUT NOTICES No tenant shall be unreasonably disturbed during building, remodeling or sales activities and except in. an emergency sit- uation shall be granted two days' notice prior to requiring access for repair., improvements, inspections or showing to prospective purchasers or mortgagees. In addition to the 180 day notice as previously provided, tenants will be notified a minimum of 30 days before their move-' out date. A 60 day notification period is however preferre.d and whenever possible advanced notification of 60 days will be used rather than 30 days. TENANT PURCHASE PLAN Any person who was a tenant at The Windsor Garden Apartment on or before November 17, 1980 and otherwise qualifies under the previously stated paragraph' entitled "Tenants Eligibility Requirements" shall have the- opportunity to purchase their own unit if possible or another unit in the initial, sales phase. Thi~. oppo'rtun_i_t~y · shall be offered 60 days prior to the sale of the units to the general public. The prospective buyers under this plan will be offered: 1. A min~imum 10% discount from the price per unit being offered to the general public. The maximun p~.ge, to~ a qualified tenant shall be $100,000. 2. An interest buy down program where the purchaser may receive loan interest rates as Iow as 12%. The. bu~ . down will vary with the amount of the down payment. A 5% down payment will qualify for a 2% buy down. In other words, if prevailing interest rates are 17% and the tenant. pays a 5% down payment, the unit would be offered at a finance charge of 15% (2% off of prevailing); a 10% down payment would qualify for a 3~ buy down; a 15% down payment would qualify for a ~ buy down; a 20% down payment would qualify for a 5% buy down. No buy downs are to result in an interest rate of less than 12% per annum. Ail interest, rates, are written at the annual percentage rate as of the date of the purchase. The buy down interest rate will be effective for a period of · three (3) years at which time the purchaser may either obtain his/her own financing or assume the exisiing loan which will at that .time revert to the annual percentage rate in existence at the time of the purchase of the condominium unit. 3. In lieu of refurbishment by Cal State Associates, Inc. tenants who purchase will be offered a refurbishment allowance. The choice will be solely that of the tenant/ purchaser. The allowance is $15.00 per square yard for the unit purchased. 4. Tenants who financially qualify Will be offered the opportunity if ~hey wish to participate in a shared appreciation progr~-m'~th an investorZ -6- EELOCATION AND PURCHASE PLAN FOR THE WINDSOR GARDENS CONVERSION Submitted by: Harry. ~.W. Hudson. Vice Preslden CAL STATE ASSOCIATES, INC. Date