SEC. 1396.7. CONDOMINIUM CONVERSION ASSOCIATED WITH PROJECTS CONSTRUCTED PURSUANT TO PLANNING CODE SECTION 249.94.

(a) Findings. The findings of Planning Code Section 415.1 concerning the City’s inclusionary affordable housing program are incorporated herein by reference and support the basis for charging the fee set forth herein as it relates to the conversion of dwelling units into condominiums.

(b) Definition. “Existing Dwelling Unit” shall mean the dwelling unit in existence on a lot at the time of the submittal of an application to construct a new dwelling unit pursuant to Planning Code Section 249.94.

(c) Notwithstanding Section 1396.4 of this Code and Ordinance No. 117-13, a subdivider of a one-unit building that has obtained a permit to build one or more new dwelling units pursuant to Planning Code Section 249.94, which results in two or more dwelling units, and that has signed an affidavit stating the subdivider’s intent to reside in one of those resulting dwelling units, or in the Existing Dwelling Unit, for a period of three years after the approval of the Certificate of Final Completion and Occupancy for the new dwelling units, shall (1) be exempt from the annual lottery provisions of Section 1396 of this Code with respect to the dwelling units built as part of the Project and (2) be eligible to submit a condominium conversion application for the Existing Dwelling Units and/or include the Existing Dwelling Units in a condominium map application for the project approved pursuant to Planning Code Section 249.94. Notwithstanding the foregoing sentence, no property or applicant subject to any of the prohibitions on conversions set forth in Section 1396.2 of this Code, including but not limited to a property with the eviction(s) set forth in Section 1396.2(b), shall be eligible for condominium conversion under this Section 1396.7. Eligible buildings as set forth in this subsection (c) may exercise their option to participate in this program according to the following requirements:

(1) The applicant(s) for the subject building seeking to convert dwelling units to condominiums or subdivide dwelling units into condominiums under this subsection shall pay the fee specified in Section 1315 of this Code.

(2) In addition to all other provisions of this Section 1396.7, the applicant(s) shall comply with all of the following:

(A) The requirements of Subdivision Code Article 9, Sections 1381, 1382, 1383, 1386, 1387, 1388, 1389, 1390, 1391(a) and (b), 1392, 1393, 1394, and 1395.

(B) The applicant(s) must certify under penalty of perjury that within the 60 months preceding the date of the subject application, no tenant resided at the property.

(C) The applicant(s) must certify under penalty of perjury that to the extent any tenant vacated their unit after March 31, 2013, and before recordation of the final parcel or subdivision map, such tenant did so voluntarily or if an eviction or eviction notice occurred it was not pursuant to Administrative Code Sections 37.9(a)(8)-(12) and 37.9(a)(14)-(16). The applicant must also certify under penalty of perjury that to the extent any tenant vacated their unit after March 31, 2013, and before recordation of the final parcel or subdivision map, such tenant did not vacate the unit pursuant to a Buyout Agreement, pursuant to the requirements of Administrative Code Section 37.9E, as it may be amended from time to time, regardless of whether the Buyout Agreement was filed and registered with the Rent Board pursuant to Administrative Code Section 37.9E(h). If a temporary eviction occurred under Sections 37.9(a)(11) or 37.9(a)(14), then the applicant(s) shall certify under penalty of perjury that the original tenant reoccupied the unit after the temporary eviction.

(3) If the Department finds that a violation of this Section 1396.7 occurred prior to recordation of the final map or final parcel map, the Department shall disapprove the application or subject map. If the Department finds that a violation of this Section occurred after recordation of the final map or parcel map, the Department shall take such enforcement actions as are available and within its authority to address the violation.

(4) This Section 1396.7 shall not prohibit a subdivider who has lawfully exercised the subdivider’s rights under Administrative Code Section 37.9(a)(13) from submitting a condominium conversion application under this Section 1396.7.

(d) Decisions and Hearing on the Application.

(1) The applicant shall obtain a final and effective tentative map or tentative parcel map approval for the condominium subdivision or parcel map within one year of paying the fee specified in subsection (e) of this Section 1396.7. The Director of the Department of Public Works or the Director’s designee is authorized to waive the time limits set forth in this subsection (d)(1) as it applies to a particular building due to extenuating or unique circumstances. Such waiver may be granted only after a public hearing and in no case shall the time limit extend beyond two years after submission of the application.

(2) No less than 20 days prior to the Department’s proposed decision on a tentative map or tentative parcel map, the Department shall publish the addresses of buildings being considered for approval, post such information on its website, post notice that such decision is pending at the affected buildings, and provide written notice of such pending decision to the applicant, all tenants of such buildings, and any member of the public who interested party who has requested such notice. During this time, any interested party may file a written objection to an application and submit information to the Department contesting the eligibility of a building. In addition, the Department may elect to hold a public hearing on said tentative map or tentative parcel map to consider the information presented by the public, other City department, or an applicant. If the Department elects to hold such a hearing it shall post notice of such hearing, including posting notice at the subject building, and provide written notice to the applicant, all tenants of such building, any member of the public who submitted information to the Department, and any interested party who has requested such notice. In the event that an objection to the conversion application is filed in accordance with this subsection (d)(2), and based upon all the facts available to the Department, the Department shall approve, conditionally approve, or disapprove an application and state the reasons in support of that decision.

(3) Any map application subject to a Departmental public hearing on the subdivision or a subdivision appeal shall receive a six-month extension on the time limit set forth in subsection (d)(1) of this Section 1396.7.

(e) Should the subdivision application be denied or be rejected as untimely in accordance with the dates specified in subsection (d)(1) of this Section 1396.7, or should the tentative subdivision map or tentative parcel map be disapproved, the City shall refund the entirety of the application fee.

(f) Conversion of buildings pursuant to this Section 1396.7 shall have no effect on the terms and conditions applicable to such buildings under Section 1385A or 1396 of this Code.