Title 16
SUBDIVISIONS*

Chapters:

16.04 Condominium Conversions

Editor’s Note: Provisions on subdivisions not included in this title can be found in the Community Development Guide.

Chapter 16.04
CONDOMINIUM CONVERSIONS

Sections:

16.04.010 Short title.

16.04.015 Purpose.

16.04.020 Definitions.

16.04.030 Application to conversion of condominiums and cooperatives.

16.04.040 Application to tenants.

16.04.050 Notice to tenants of filing of conversion declaration.

16.04.060 Notice to all tenants prior to offering any unit for sale to the public as a condominium or cooperative unit.

16.04.070 Purchase rights of tenant in possession.

16.04.080 Purchase rights of tenants whose units are offered for sale prior to effective date.

16.04.090 Subtenant’s purchase rights.

16.04.100 Rights of tenants in converted buildings to purchase other units in the building.

16.04.110 Evictions only for good cause during notice period.

16.04.120 Tenant’s right to vacate.

16.04.130 Mandatory housing code inspection and repair – Notice to buyers and tenants.

16.04.140 Building Official certification of repairs.

16.04.150 Disclosure requirements.

16.04.155 Repair fund.

16.04.160 Warranty of repairs.

16.04.170 Unlawful representations.

16.04.180 Purchaser’s right to rescind.

16.04.190 Delivery of notice and other documents.

16.04.200 Acceptance of offers.

16.04.210 Administration.

16.04.220 Complaints.

16.04.230 Hardship relief – Waiver.

16.04.235 Violations.

16.04.240 Penalties.

16.04.010 Short title.

The ordinance codified in this chapter may be cited as the "condominium conversion ordinance." (Ord. 858 § 1.1, 1979).

16.04.015 Purpose.

The purpose of this chapter is to promote the general public interest in providing purchasers and tenants with adequate information upon which to base decisions concerning dwelling units governed by this chapter. This chapter is not intended to benefit any specific class of individuals nor to create any legal right of action against, or liability on the part of the City of Redmond or any other governmental entity for failure to properly enforce the provisions hereof, or of any Housing, Building, or Fire Code requirement. (Ord. 1569 § 3, 1990).

16.04.020 Definitions.

The following words and phrases used in this chapter shall have the meanings set forth below:

(1) "Acceptance of offer of sale" means a written commitment for the purchase of a condominium unit or interest in a cooperative at a specific price and on specific terms.

(2) "Agent" means any person, firm, partnership, association, joint venture, corporation or any other entity or combination of entities who represents or acts for or on behalf of a developer in selling or offering to sell any condominium or cooperative unit or interest in a cooperative.

(3) "Building" means any existing structure containing one or more dwelling units and any grouping of such structures which as rental units were operated under a single name and as converted buildings are the subject of a single declaration or simultaneous declarations filed pursuant to the Horizontal Property Regimes Act (RCW Chapter 64.32).

(4) "Condominium" means real property, containing three or more units as defined in the Building Code (Chapter 15.04*), portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions. Real property is not a condominium unless the undivided interests in the common elements are vested in the unit owners, and unless a declaration and a survey map and plans have been recorded pursuant to the state statute.

(5) "Condominium unit" means any dwelling unit in a condominium.

(6) "Cooperative" means any existing structure, including surrounding land and improvements, which contains one or more dwelling units and which: (A) is owned by an association organized pursuant to the Cooperative Association Act (RCW Chapter 23.86); or (B) is owned by an association with resident shareholders who are granted renewable leasehold interests in housing units in the building.

(7) "Cooperative unit" means any dwelling unit in a cooperative.

(8) "Conversion of condominiums" means the filing of a declaration pursuant to the Horizontal Property Regimes Act or the sale by a developer of condominium units that were previously rental units.

(9) "Conversions of cooperatives" means the execution of a lease agreement by a member of a cooperative association.

(10) "Converted building" means any condominium or cooperative which formerly contained rental dwelling units.

(11) "Developer" means any person, firm, partnership, association, joint venture or corporation or any other entity or combination of entities or successors thereto who: (A) undertake to convert, sell, or offer for sale condominium units or (B) undertake to convert rental units to cooperative units or sell cooperative shares in an existing building which contains housing units or lease units to a cooperative association’s shareholders. The term "developer" includes the developer’s agent and any other person acting on behalf of the developer.

(12) "Eviction" means any effort by a developer to remove a tenant from the premises or terminate a tenancy by lawful or unlawful means.

(13) "Housing code" means the Redmond minimum housing code adopted by Chapter 20E.40 of the Redmond Community Development Guide.

(14) "Offer of sale to tenant" means a written offer to sell a condominium or cooperative unit to the tenant in possession of that unit at a specific price and on specific terms.

(15) "Offer for sale to public" means any advertisement, inducement, solicitation, or attempt by a developer to encourage any person other than a tenant to purchase a condominium or cooperative unit.

(16) "Owners’ association" means the association formed by owners of units in a condominium or cooperative for the purpose of managing the condominium or cooperative.

(17) "Person" means any individual, corporation, partnership, association, trustee or other legal entity.

(18) "Rental unit" means any dwelling unit, other than a detached single-family residential dwelling, which is occupied pursuant to a lawful rental agreement, oral or written, express or implied, which was not owned as a condominium unit or cooperative unit on the effective date of the ordinance codified in this chapter. A dwelling unit in a converted building for which there has been no acceptance of sale on the effective date of the ordinance codified in this chapter shall be considered a rental unit.

(19) "Subtenant" means a person in possession of a rental unit through the tenant with the knowledge and consent of the owner.

(20) "Tenant" means any person who occupies or has a leasehold interest in a rental unit under a lawful rental agreement whether oral or written, express or implied.

(21) "Conversion condominium" means a condominium (a) that at any time before creation of the condominium was lawfully occupied wholly or partially by a tenant or subtenant for residential purposes pursuant to a rental agreement, oral or written, expressed or implied, for which the tenant or subtenant had not received the notice described in (b) of this section; or (b) that at any time within 12 months before the conveyance of or acceptance of an agreement to convey any unit therein other than to a declarant or any affiliate of a declarant was lawfully occupied wholly or partially by a residential tenant of a declarant or an affiliate of a declarant and such tenant was not notified in writing prior to lawfully occupying a unit or executing a rental agreement, whichever event occurs first, that the unit was part of a condominium and subject to sale. "Conversion condominium" shall not include a condominium in which before July 1, 1990, any unit therein had been conveyed or been made subject to an agreement to convey to any transferee other than a declarant or an affiliate of a declarant.

(22) "Conveyance" means any transfer of the ownership of a unit, including a transfer by deed or by real estate contract and, with respect to a unit in a leasehold condominium, a transfer by lease or assignment thereof, but shall not include a transfer solely for security.

(23) "Declarant" means any person or group of persons acting in concert who (a) executes as declarant a declaration as defined herein, or (b) reserves or succeeds to any special declarant right under the declaration. The word "declarant" and "developer" may be interchanged in this chapter.

(24) "Declaration" means the document, however denominated, that creates a condominium by setting forth the information required by RCW 64.34.216 and RCW Chapter 64.32 and any requirements to those documents.

(25) "Real property" means any fee leasehold or other estate or interest in over or under land, including structures, fixtures and other improvements thereon and easement rights and interests pertinent thereto which by custom, usage or law pass with a conveyance of land although not described in the contract of sale or instrument of conveyance. "Real property" includes parcels with or without upper or lower boundaries and spaces that may be filled with air or water.

(26) "Residential purposes" means use for dwelling or recreational purposes or both. (Ord. 1744 §§ 1, 2, 1993; Ord. 1569 § 4, 1990; Ord. 858 § 1.2, 1979).

Editor’s Note: Ch. 15.04 was repealed by Ord. 875. The Building Code is codified in the Community Development Guide in Chapter 20E.

16.04.030 Application to conversion of condominiums and cooperatives.

This chapter shall apply only to the conversion and sale of rental units that have not yet been converted to condominium or cooperative units, and to those units in converted buildings that are not subject to a binding purchase commitment that have not been sold on the effective date of the ordinance codified in this chapter. This chapter shall not apply to condominium or cooperative units that are vacant on February 1, 1979, and which have been offered for sale prior to that date; provided, that any tenant who takes possession of the unit after February 1, 1979, shall be provided the disclosures required by Section 16.04.040 and shall be entitled to the benefits of that section if the required disclosures are not given. (Ord. 858 § 2.1, 1979).

16.04.040 Application to tenants.

This chapter shall apply only to those tenants and subtenants who occupy rental units in converted buildings at the time the notices, offers, and disclosures provided by this chapter are required to be delivered. This chapter shall not apply to tenants who take possession of a unit vacated by a tenant who has received the notices and other benefits provided by this chapter; provided, that developers shall disclose in writing to all tenants who take possession after service of the notice required by Section 16.04.060 that the unit has been sold or will be offered for sale as a condominium or cooperative. This disclosure shall be made prior to the execution of any written rental agreement or prior to the tenant’s taking possession, whichever occurs earlier. A developer’s failure to disclose, within the time specified above, that the unit has been sold, or offered for sale shall entitle the tenant to all the protections and benefits of this chapter. (Ord. 858 § 2.2, 1979).

16.04.050 Notice to tenants of filing of conversion declaration.

Within seven days of the filing of a condominium conversion declaration as provided by the Horizontal Property Regimes Act, RCW Chapter 64.32 and the Condominium Act, RCW Chapter 64.34, but no later than ninety days from the date the tenants or subtenants must vacate, the declarant shall:

(1) Send written notice by registered or certified mail to each residential tenant or subtenant in possession of a portion of a conversion condominium in the converted building, of the conversion and a copy of the Public Offering Statement as defined and outlined in RCW 64.34.405-.418, and 64.34.440 describing the rights of tenants and subtenants. The tenants’ refusal to accept delivery shall be deemed adequate service.

(2) File notice of the filing of such declaration with the City Clerk and a copy with the designated building official, giving the date of filing, file or recording number, office where filed, location and address of the structure and number of dwelling units contained within the structure and the name, address and phone numbers of the owners, managers and persons responsible for the management of the structure. (Ord. 1744 § 3, 1993: Ord. 858 § 3.1, 1979).

16.04.060 Notice to all tenants prior to offering any unit for sale to the public as a condominium or cooperative unit.

At least 90 to 120 days prior to offering any rental unit or units for sale to the public as a condominium unit or cooperative unit, the declarant shall deliver to each tenant in the building written notice of its intention to sell the unit or units. The notice shall specify the individual units to be sold and the sale price of each unit. This notice shall be in addition to and not in lieu of the notices required for eviction by RCW Chapter 59.12 and 59.18, and shall be delivered as provided herein. With the notice the declarant shall also deliver to the tenant a statement in a format to be provided by the City Building Official of the tenant’s rights under this chapter. No tenant or subtenant may be required to vacate upon less than 90 days notice except by reason of non-payment of rent, waste, conduct that disturbs other tenants’ peaceful enjoyment of the premises, or act of unlawful detainer as defined in RCW 59.12.030 and the terms of the tenancy may not be altered during that period. (Ord. 1744 § 4, 1993: Ord. 858 § 3.2, 1979).

16.04.070 Purchase rights of tenant in possession.

With the notice provided in Section 16.04.060, the developer shall deliver to each tenant whose unit is to be offered for sale a firm offer of sale of the unit that the tenant occupies. In the event that more than one tenant occupies a single unit, the developer shall deliver the offer to all tenants jointly or separately. For sixty days from the date of delivery of the offer, the tenant shall have the exclusive right to purchase his or her unit. (Ord. 858 § 3.3, 1979).

16.04.080 Purchase rights of tenants whose units are offered for sale prior to effective date.

Tenants of rental units which were offered for sale as condominium or cooperative units prior to the effective date of the ordinance codified in this chapter, but for which offers there have been no acceptances, shall be entitled to the rights and benefits of this chapter except that those rights provided by Section 16.04.100 shall terminate sixty days from the offer of sale of the unit to the tenant. (Ord. 858 § 3.4, 1979).

16.04.090 Subtenant’s purchase rights.

Should a tenant reject an offer of sale, the subtenant in possession at the time the notice provided in Section 16.04.060 is delivered shall be offered the unit on the same terms as those offered the tenant. For thirty days following that offer or until the expiration of the tenants’ sixty-day purchase period as provided in Section 16.04.070, whichever occurs later, the subtenant shall have the exclusive right to purchase the unit. (Ord. 858 § 3.5, 1979).

16.04.100 Rights of tenants in converted buildings to purchase other units in the building.

Should both the tenant and subtenant reject the offer of sale or fail to notify of acceptance of the offer within the time periods set forth in Sections 16.04.070 and 16.04.090 or vacate, the unit shall be made available for purchase to other tenants and subtenants in the building. The right to purchase another unit in the building by tenants and subtenants shall extend to the end of the one-hundred-twenty-day notice period provided the tenant in possession of that unit under Section 16.04.060. Whenever all tenants and subtenants in a building have indicated in writing their intention not to purchase a unit or the one-hundred-twenty-day notice period has expired and that unit is or becomes vacant, then the developer may offer for sale and sell the unit to the public. (Ord. 858 § 3.6, 1979).

16.04.110 Evictions only for good cause during notice period.

No condominium or cooperative unit shall be sold or offered for public sale if, in the one-hundred-twenty-day period immediately preceding the sale or offer for public sale, any tenant has been evicted without good cause. For the purposes of this chapter, "good cause" means:

(1) Failure to pay rent after service of a three-day notice to pay rent or vacate as provided in RCW 59.12.030(3);

(2) Failure to comply with a term or terms of the tenancy after service of a ten-day notice to comply or vacate as provided in RCW 59.12.030(4); and

(3) The commission or permission of a waste or the maintenance of a nuisance on the premises and failure to vacate after service of a three-day notice as provided in RCW 59.12.030(5). (Ord. 858 § 3.7, 1979).

16.04.120 Tenant’s right to vacate.

Tenants who receive one-hundred-twenty-day notices of sale may terminate their tenancies at any time during such period in the manner provided by RCW 59.18.200 and 59.18.220, but will forfeit all rights to purchase a unit. (Ord. 858 § 3.8, 1979).

16.04.130 Mandatory housing code inspection and repair – Notice to buyers and tenants.

(A) Prior to delivery of the 120 day notice described in Section 16.04.060, the declarant shall at its expense obtain an inspection of the entire building by an independent firm or individual inspector regularly engaged in the profession of building inspection and having current certification and/or membership granted by the International Conference of Building Officials, American Institute of Architects, any Washington state licensed structural engineer or FHA certified inspectors. The inspector shall provide within 14 days of the inspection, a written report as to compliance with the housing codes as adopted by Chapter 20E.40 of the Redmond Community Development Guide. The declarant shall install an approved fire detection system if required by Section 20E.80.080 of the Redmond Community Development Guide or other applicable provisions of the Uniform Fire Code as adopted by the city, and as supplemented or modified by other city ordinances. Such regulations shall be applied in the same manner as applied to construction undertaken at the time of the condominium conversion application. The installation of the fire detection system and all violations of the Housing Code revealed by the inspection must be completed and corrected at least seven days prior to the closing of the sale of the first unit.

(B) Such inspection may not be required with respect to any building for which a final certificate of occupancy has been issued by the city within the preceding twenty-four months. (Ord. 1744 § 5, 1993: Ord. 1569 § 1, 1990: Ord. 1480 § 25, 1989: Ord. 858 § 4.1, 1979).

16.04.140 Inspector’s certification of repairs.

Prior to any conveyance of a residential unit within a conversion condominium, other than a conveyance to a declarant or affiliate of a declarant, all violations disclosed in the inspection report provided for above, and not otherwise waived by the city shall be repaired. The independent building inspector retained by the declarant pursuant to Section 16.04.130 shall conduct a reinspection and provide a certification attesting that all defective conditions identified in the initial and any follow up inspection reports have been corrected. Said certification shall be issued within seven days of the inspection. All costs of the reinspection and certificate, etc. shall be borne by the declarant. The declarant shall deliver a copy of the certificate to each purchaser within the time period specified by Section 16.04.130. A copy of the initial and all follow up inspection reports and certification of repairs shall be included in the Public Offering Statement and shall be provided by the declarant to each respective purchaser at least seven days before the signing of any earnest money agreement or other binding purchase commitment. Copies of all inspection reports shall be delivered to the city’s designated building official and tenants in the converted building by the declarant with a notice of sale as provided in Section 16.04.060.

Any certification or report conducted by the declarant shall clearly state that the inspection and certification has been conducted by private entities, and that the city does not comment on or guarantee that any or all violations have been identified or corrected. No declarant shall indicate or imply to anyone, for the purpose of inducing a person to purchase a condominium unit, that the city has "approved" the premises or any unit for sale. (Ord. 1744 § 6, 1993: Ord. 1569 § 2, 1990: Ord. 858 § 4.2, 1979).

16.04.150 Disclosure requirements.

In addition to the disclosures required by this chapter, the developer shall make available at a place on the premises convenient to the tenants during normal working hours the following information to prospective purchasers at least seven days before any purchase commitment is signed, or, in the case of existing tenants, with the one-hundred-twenty-day notice provided in Section 16.04.060:

(1) copies of all documents filed with any governmental agency pursuant to the Horizontal Property Regimes Act, RCW Chapter 64.32;

(2) an itemization of the specific repairs and improvements made to the entire building during the six months immediately preceding the offer for sale;

(3) an itemization of the repairs and improvements to be completed before close of sale;

(4) a statement of the services and expenses which are being paid for by the developer but which will in the future be terminated, or transferred to the purchaser, or transferred to the owners’ association;

(5) an accurate estimate of the useful life of the building’s major components and mechanical systems (foundation, exterior walls, exterior wall coverings other than paint or similar protective coating, exterior stairs, floors and floor supports, carpeting in common areas, roof cover, chimneys, plumbing system, heating system, water heating appliances, mechanical ventilation system, and elevator equipment) and an estimate of the cost of repairing any component whose useful life will terminate in less than five years from the date of this disclosure. For each system and component whose expected life cannot be accurately estimated, the developer shall provide a detailed description of its present condition and an explanation of why no estimate is possible. In addition, the developer shall provide an itemized statement in budget form of the monthly costs of owning the unit that the purchaser intends to buy. The itemization shall include but shall not be limited to: (A) payments on purchase loan; (B) taxes; (C) insurance; (D) utilities (which shall be listed individually); (E) homeowner’s assessments; (F) the projected monthly assessment needed for replacing building components and systems whose life expectancy is less than five years; and (G) a statement of the budget assumptions concerning occupancy and inflation factors. (Ord. 858 § 4.3, 1979).

16.04.155 Repair fund.

Prior to the conveyance of any residential unit within a conversion condominium, other than a conveyance to a declarant or affiliate of a declarant:

(1) The declarant shall establish and maintain, during the one year warranty period provided under Section 16.04.160, an account containing a sum equal to 10 percent of the actual cost of making the repairs required as a result of the inspection;

(2) During the one year warranty period, the funds in such account shall be used exclusively for paying the actual cost of making repairs required, or for otherwise satisfying claims made, under such warranty;

(3) Following the expiration of the one year warranty period, any funds remaining in such account shall be immediately disbursed to the declarant; and

(4) The declarant shall notify in writing any condominium homeowner’s association and the city as to the location of such account and any disbursements therefrom. (Ord. 1744 § § 7, 1993).

16.04.160 Warranty of repairs.

Each developer shall warrant for one year from the date of completion all improvements and repairs disclosed pursuant to Section 16.04.150. (Ord. 858 § 4.4, 1979).

16.04.170 Unlawful representations.

It shall be unlawful for any developer, agent, or person to make or cause to be made in any disclosure or other document required by this chapter any statement or representation that is knowingly false or misleading. It shall also be unlawful for any developer, agent, or other person to make, or cause to be made, to any prospective purchaser, including a tenant, any oral representation which differs from the statements made in the disclosures and other documents required to be provided tenants and purchasers by this chapter. (Ord. 858 § 4.5, 1979).

16.04.180 Purchaser’s right to rescind.

Any purchaser who does not receive the notices, disclosures, and documents required by this chapter may, at any time prior to closing of the sale, rescind, in writing, any binding purchase agreement without any liability on the purchaser’s part and the purchaser shall thereupon be entitled to the return of any deposits made on account of the agreement. (Ord. 858 § 4.6, 1979).

16.04.190 Delivery of notice and other documents.

Unless otherwise provided, all notices, contracts, disclosures, documents and other writings required by this chapter shall be delivered by registered or certified mail. The refusal of registered or certified mail by the addressee shall be considered adequate delivery. All documents shall be delivered to tenants at the address specified on the lease or rental agreement between the tenant and the developer or landlord. If there is no written lease or rental agreement, then documents shall be delivered to the tenants’ address at the converted building. In any sublet unit, all documents shall be delivered to the tenant at his current address if known, and to the subtenant in possession. If the tenant’s current address is unknown, then two copies of all documents shall be delivered to the subtenant, one addressed to the tenant and the other addressed to the subtenant.

Delivery of the one-hundred-twenty-day notice of intention to sell required by Section 16.04.060, the developer’s offer to sell, and all disclosure documents shall be delivered to the tenants in a converted building at a meeting between the developer and the tenants. The meeting shall be arranged by the developer at a time and place convenient to the tenants. At the meeting the developer shall discuss with the tenants the effect that the conversion will have upon the tenants. Should any tenant refuse to acknowledge acceptance of the notice, offer and disclosures the developer shall deliver the documents in the manner prescribed in paragraph one of this section. (Ord. 858 § 4.7, 1979).

16.04.200 Acceptance of offers.

Acceptance by tenants or other beneficiaries of offers provided pursuant to this chapter shall be in writing and delivered to the developer by registered or certified mail postmarked on or before the expiration date of the offer. (Ord. 858 § 4.8, 1979).

16.04.210 Administration.

The Building Official is charged with the administration and enforcement of this chapter and is authorized and directed to adopt, promulgate, amend and rescind administrative rules consistent with the provisions of this chapter and necessary to carry out the duties of the Building Official hereunder. (Ord. 858 § 5.1, 1979).

16.04.220 Complaints.

Any person subjected to any unlawful practice as set forth in this chapter may file a complaint in writing with the city’s Building Official. The Building Official is authorized and directed to receive complaints and conduct such investigations as are deemed necessary. Whenever it is determined that there has been a violation of this chapter, the Building Official of buildings is authorized, at the official’s discretion, to follow one or more of the following procedures:

(1) Attempt to conciliate the matter by conference or otherwise and secure a written conciliation agreement;

(2) Refer the matter to the City Attorney for appropriate civil remedies or criminal prosecution. (Ord. 858 § 5.2, 1979).

16.04.230 Hardship relief – Waiver.

The City Council is authorized to waive strict compliance with this chapter in specific individual instances where the developer can show with clear, cogent and convincing evidence that:

(1) The financial burden required to comply would greatly outweigh the benefits and would create an unreasonable hardship upon the developer; or

(2) The units have been offered for sale as condominium units prior to the effective date of the ordinance codified in this chapter and the developer has incurred significant financial obligations with the intention of meeting such obligations with the proceeds of the sale of such units, and the provisions of this chapter will prevent meeting such obligation. (Ord. 858 § 5.3, 1979).

16.04.235 Violations.

(A) Any violations of this code shall not invalidate the creation of the condominium or the conveyance of any interest therein.

(B) The provisions of this chapter are not intended to and shall not be deemed to create any duty on the part of the city to enforce the provisions of this chapter for any particular individual, but are enacted for the general welfare of all residents of the city. (Ord. 1744 § 8, 1993).

16.04.240 Penalties.

Any person who violates any provision of this chapter, fails to comply with the provisions of this chapter, or who deliberately attempts to avoid the application of this chapter shall, upon conviction thereof, be punished as provided in Section 1.01.110 of this code. (Ord. 858 § 5.4, 1979).