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Home My WebLink AboutRPT 2 CONDO CONVER. 10-05-83DATE: October 5, 1983 REPORTS NO. 2 10-5-83 Inter-Corn FROM: SUSJ ECT: Honorable Mayor and City Council Members Community Development Department Californian/Windsor Gardens Apartments Condominium Conversion Status BACKGROUND The City Council previously received communications from Cai-State Associates, 1nc., owner of two apartment projects in the City approved for conversion to condominiums. Specifically, Cai-State requests that the relocation agreements be amended removing requirements to pay relocation benefits for voluntary tenant move-outs and to permit rent increases for those units with pre-conversion frozen rents. Cai-State has experienced substantial financial setbacks which have jeopardized both projects. The Californian at 14882 Newport Avenue has had severe water damage from plumbing failure and rain damage. The Windsor Gardens at 1651 Mitchell was also impacted by severe weather conditions and contractor disputes. When presented with Cai-State's requests, Council directed staff to analyze both projects in light of tenant concerns. The majority of problems at both projects surround: a) partially completed construction being an inconvenience for tenants; b) safety and other code violations; and c) non-payment of relocation assistance according to agreements. City and County staff inspected both projects and provided the property owner with thirty (30) days to make necessary corrections. Staff also recommended that the owner's request for rent increase and relocation relief not be considered until minimum code violations were corrected. Notices were sent to Cai-State Associates by certified mail on August 19, 1983 concerning corrections at the Californian apartments. Again, following inspections of the Windsor Gardens apartments, notice was sent to Cai-State on August 25, 1983 outlining necessa~ corrections. A~YSIS OF CORRECTIONS The following generally describes corrections necessary at both projects and the status of said corrections following the 30-day compliance period: CAI. IFORNIAli APARll~ENTS 1. Correct code violations which include: removal of combustible debris from vacant units; disconnect utilities in vacant units; secure all vacant units; replace all missing fire extinguishers throughout the complex; provide, all weather access around rear of complex and replace missing building addresses. Condominium Conversion Status October 5, 1983 Page 2 Correction status: Most units secured; however, two at-random inspections after thirty-day period revealed at least four units un-locked, doors open, combustible material in some as well as gas and electricity on in others. Fire extinguishers have been replaced throughout complex yet the Fire Department is not accepting dirt access road to the rear of the project. 2. Removal of all construction debris and abandoned vehicles in carports. Correction status: The majority of all construction debris has been properly stored and removed from public view. Property has been cleaned and appearance is improved. Inspection did reveal at least two abandoned cars remaining in carports. 3. Provide hot and cold running water and space heating in all units. Correction status: Without physically knocking on doors, staff has not been able to determine compliance. A boiler unit may have broken during the last thirty days which caused a temporary loss of hot water, but not permanent. On the contrary, some tenants previously reported having only hot water; no cold. 4. Repair all damaged roof surfaces. Correction status: Coincidentally, it rained in the last thirty days. A tenant called to report water leaking through an electrical ceiling fixture. Also, a vacant unit inspected by staff indicated extensive water damage to walls and electrical fixtures. Roofs otherwise appear sound. 5. Proceed with construction of conversion. Correction status: Construction was terminated months ago, and owner indicates it will not commence without economic relief from the City. WINDSOR GARDENS 1. Correct all code violations as detailed by City and County inspectors including an unobstructed access to fire hydrants, removal of debris, and installation of security fencing to isolate construction area. Correction status: One violation has been corrected while others have not. Generally, no further action is being taken by property owner. Condominium Conversion Status October 5, 1983 Page 3 2. Renew building permit for project conversion. Correction st4tus: Permit has not been renewed to date. 4. Proceed with conversion construction. Correction st~t~s: No evidence of recent construction activity. Security guard previously hired to patrol site was not found during either of staff's two follow-up inspections. While Cai-State has made some attempts to comply with the City's requests, the Californian has not been adequately corrected to satisfy staff. On every inspection occasion, staff found unlocked, if not wide open, apartment units, some of which still have gas and electricity turned on. A child in the complex could easily be injured in one of these units if not cause a major accident. Cai-State believes a tenant may have a master key and is opening the units. Regardless, these units must be secured or the Building Department will take the initiative to have them secured and posted appropriately. Concerning Cai-State's request for amendment of the relocation agreements, staff agrees that voluntary move-out, not related to the need for a particular unit for conversion, should not be grounds for pa)qnent of relocation assistance benefits. If the tenant chooses to leave for reasons unrelated to conversion, that is their choice. However, in these two projects, it is difficult to determine which are voluntary move-outs unrelated to the conversion since inconvenience has surely played a part in several departures. At the Windsor Gardens, the existence of an~xcavation area consuming most available parking, noise, and dust surely affects tenants. The ideal situation would have been for the original relocation agreement to either freeze rents for tenants accepting the inconvenience of construction or receive normally scheduled rent increases '~lk :--ciew relocation assistance upon eviction. ~ ~ Regardless of the economic plight of the property owner, the City is obligated to ensure safe living conditions at both apartment projects. Staff will continue to pur~e the corrections dictated by the appropriate City and County inspectors. RECOBI~ENDATIONS Windsor Gardens In staff's opinion, the Windsor Gardens could be substantially completed and marketed as condominiums within a short period of time. The subdivision map has been recorded and substantial construction has occurred. The City should encourage this project to be swiftly completed. Council may wish to give consideration to rent adjustments and modification of the relocation assistance agreement. Condominium Conversion Status October 5, 1983 Page 4 Californian Apartments The Californian has been plagued with structural design problems including roof leaks and hot water plumbing leaks in ceilings. Since conversion construction has not substantially commenced and the subdivision map has not be recorded, the property owner should concentrate on property maintenance expenses and resolve structural design problems. This property should not continue to exist in a disrupted condition with a high vacancy rate of damaged units. Therefore, the conversion process should be terminated through either voluntary relinquishment of conversion rights or revocation of the project variance. Relinquishment or revocation of Variance No. 81-8 would terminate Cai-State's obligation to pay any future relocation assistance and also remove rent controls on apartments rented prior to variance approval on January 18, 1982. At such time Cai-State Associates is financially prepared to proceed, the City could again consider their application for conversion approval. Director of Community Development DDL:jh