HomeMy WebLinkAbout1979-04-17; City Council; 5820; Condominium Stock CooperativesCITY OF CARLSBAD
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AGENDA BILL NO: ST JT£. Q _ _ ; _ Dept. Hd.
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DATE: _ Apr<1 „. ,„„ _ _ <**•
Cty. Mgr
DEPARTMENT: Planning
SUBJECT:
ZCA-108, CONDOMINIUM STOCK COOPERATIVES
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Statement of the Matter
Presently the condominium regulations identifies condominiums as
those projects as defined by the State as either a condominium or
a community apartment. When drafting the regulations, staff con-
sidered stock cooperatives as being identical to community apart-
ments. Unfortunately recent opinions indicate that the State
considers stock cooperatives as distinct from community apartments.
Therefore, stock cooperatives could be constructed, or rental units
converted, without processing as condominiums.
Although the State may amend their definitions of condominiums to
include stock cooperatives, many cities are amending their local
ordinance to bring stock cooperatives in as condominiums. Staff
suggests that Carlsbad do the same.
Planning Commission agreed and recommended approval of ZCA-108 which
considers stock cooperatives as a condominium and therefore requiring
a condominium permit.
Exhibits
Planning Commission Resolution No. 1506
Staff Report dated March 28, 1979
Recommendation
If the City Council concurs with the Planning Commission, it is
recommended that you direct the City Attorney to prepare documents
approving ZCA-108 as per Planning Commission Resolution No. 1506.
Council Action:
4/2/79 4-17-79 Council directed the Attorney to prepare the
' ' necessary documents approving ZCA-108 as per
Planning Commission Resolution 1506.
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PLANNING COMMISSION RESOLUTION NO. 1506
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF CARLSBAD RECOMMENDING APPROVAL OF A ZONE CODE
AMENDMENT TO TITLE 21, CHAPTER 21.44, SECTION
21.44.020 TO DEFINE STOCK COOPERATIVES AS CONDO-
MINIUM STANDARDS.
CASE NO.:
APPLICANT:
ZCA-108
CITY OF CARLSBAD
WHEREAS, the Planning Commission of the City of Carlsbad
did hold^a. duly noticed public hearing on March 28, 1979, to
consider the subject amendment; and
WHEREAS, the Planning Commission received all testimony and
arguments, if any, of all persons who desired to be heard, and
upon hearing and considering all factors relating to Zone Code
Amendment 108, found the following facts to exist:
1. Stock cooperatives are not presently considered as condo-'
miniums in the Zone Code.
2. Stock cooperatives function, for all practical purposes, as
condominiums.
3. It is necessary to consider stock cooperatives as condo-
miniums to provide consistent regulations in commonly owned
housing projects such as stock .cooperatives.
WHEREAS, the Planning Commission, by the following vote,
recommended approval of ZCA-108, to read as follows:
Amend Title 21, Chapter 21.44, Section 21.47.020 to include
stock cooperatives as follows:
"21.47.020 Application. The -provisions of this chapter
shall apply to condominiums as defined in Seciton 783 of
the Civil Code and community apartments and stock
cooperatives as defined in Section 11004 and 11003.2 of
the Business and Professions Code and to the conversions
1 of existing structures to condominiums, community
apartments or stock cooperatives."
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L'Heureux, Rombotis
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NOES: None
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AYES: Marcus, Larson, Jose, Schick, Wrench,
NOW, THEREFORE, BE IT HEREBY RESOLVED, that the foregoing
recitations are true and correct.
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ATTEST :
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STEPHENM. L'HEUREUX, Chairman
CARLSBAD PLANNING COMMISSION
JAMES C. HAGAMAX Secretary
/M?ARLSBAD PLANNlNG/COMMISSION
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ZCA-108
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Commission of the City of Carlsbad, California, do
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hereby certify that the foregoing resolution was duly
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introduced, approved and adopted by the Planning
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Commission of the City of Carlsbad at a regular meeting
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of said Commission held on the llth day of April, 1979,
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by the following roll call vote:
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STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CARLSBAD ) SS
I, JAMES C. HAGAMAN, Secretary to the Planning
AYES: Rombotis, Schick, Wrench, Marcus, Jose,
Larson, L'Heureux
NOES: None
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ABSTAIN: None
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ABSENT: None
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:AMES C. HAGAMANt "Secretary
CARLSBAD PLANNING COMMISSION
ZCA-108
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PLANNING COMMISSION MINUTES
March 28, 1979
Page Four (4)
E. ZCA-108, City of Carlsbad, Zone Code Amendment to Section
21.17.020 of the Carlsbad Municipal Code to insert stock
cooperatives in condominium standards.
Mr. Bud Plender presented the staff report.
THE PUBLIC HEARING OPENED AND CLOSED AT 8:00 P.M. WITH
•NO PUBLIC TESTIMONY.
A motion was made approving ZCA-108 under the terms and
conditions as contained in the staff report dated March
28, 1979.
APPROVED
MOTION: Jose
SECOND: Marcus
AYES: Marcus, Larson, Jose, Schick, Wrench,
L'Heureux, Rombotis
MEMORANDUM
Date: March 28, 1979
To: Planning Commission
From: Planning Staff
Subject: ZCA- 108 , Definition of Condominium:
Stock Cooperative.
When drafting the regulations for the condominium ordinance,
staff based the definition of a condominium on State Regulations
for those community projects that require a subdivision map.
This was considered sufficient because the only other possible
community type ownership was stock cooperatives, which were
at that time impractical because of laws regulating how such
cooperatives can be financed and that the State Coastal
Commission considered stock cooperatives a condominium.
Since then however, the State has changed financing regulations
for stock cooperatives and the Coastal Commission has
encountered some opposition to their inclusion of stock cooper-
atives as condominiums.
Therefore, most cities that are presently developing ordinances
regulating condominiums have included the definition of stock
cooperatives as a condominium. Presently the State Legislators
are considering a Bill that would change State Law making
stock cooperatives condominiums. To insure compliance however,
our City Attorney has suggested that Carlsbad's definition of
a condominium be modified to include stock cooperatives.
In the State Business and Professions Code stock cooperative
is defined as:
"A corporation which is formed or availed of primarily
for the purpose of holding title to, either it be
simple or for a term of years, improve real property,
if all or substantially all of the shareholders of
such corporation receive a right of exclusive
occupancy in a portionof the real property, title
to which is held by the corporation, which right
of occupancy is transferable only concurrently with
the transfer of the share or shares of stock in a
corporation held by the persons having such right
of occupancy."
Stated more simply, cooperatives residents own shares in a
corporation which owns a housing project, and the shareholder -
owners automatically are entitled to inclusive long - term
leases in specific individual units in the project. The common
v.,
MEMORANDUM - Planning Commission
March 14, 1979
Page 2
areas are also owned by the corporation, rather than the resident,
but with rights of use by the shareholder/owners.
A community apartment project is defined as follows:
A project in which an undivided interest in the land is
coupled with a right of exclusive occupancy of any
apartment therein.
A community apartment project is essentially identical to the
stock cooperative. In both, the purchaser obtains an un-
divided interest in the real property, directly or indirectly.
Each form of ownership includes rights of use of the common
areas, each includes exclusive occupancy rights of the individual
units, and each includes certain additional rights and privileges^
They differ primarily in that the residents, as a group, own
the premises in the community apartment project, rather than
a cooperative in the stock. In addition, the community
apartment project is specifically mentioned in the Subdivision
Map Act.
A condominium is an ownership formed similar to stock cooperatives
and community apartment projects except that residents directly
own rather than have an exclusive lease to their apartment units,
and also direct co-ownerhsip of the land and improvements thereon.
It is specifically defined as follows:
A condominium is an estate in real property consisting
of an undivided interest in common and a portion of a
parcel of real property together with a separate interest
in space in a residential, industrial, or commercial
building on such real property, such as an apartment,
office, or store. A condominium may include in addition
a separate interest in other portions of such real property.
Now that the State has changed the laws to provide relatively
easy means to finance stock cooperatives, the desire for
stock cooperatives is growing. Since by definition stock
cooperatives are very similar to community apartments and
condominiums they will in effect function the same. Therefore,
staff recommends that the definition of condominium be
expanded to include stock cooperatives.
MEMORANDUM - Planning Commission
March 14, 1979
Page 3
Recommendation: It is recommended that the Planning Commission
forward to the City Council for their adoption of ZCA- 108 , which
amends Section 21.47.020 as follows:
AMEND TITLE 21, CHAPTER 21.44 AMENDMENT OF SECTION 21.47.020 TO
INSERT STOCK COOPERATIVES TO CONDOMINIUM STANDARDS.
"21.47.020 Application. The provisions of this chapter
shall apply to condominiums as defined in Section 783 of the
Civil Code and community apartments and stock cooperatives as
defined in Section 11004 and 11003.2 of the Business and
Professions Code and to the conversions of existing structures
to condominiums, community apartments or stock cooperatives."
BP:ar
3/8/79