HomeMy Public PortalAbout19-1933 - Amending the Carson Municipal Code to Repeal the Residential Property Report (RPR) Requirement for all Residential Real Property SalesORDINANCE NO. 19-1933
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA,
AMENDING ARTICLE V (SANITATION AND HEALTH), CHAPTER 9, (RESIDENTIAL
PROPERTY REPORT) SECTION 5902 (REQUIRED) OF THE CARSON MUNICIPAL
CODE TO REPEAL THE RESIDENTIAL PROPERTY RERPORT (RPR) REQUIREMENT
FOR ALL RESIDENTIAL REAL PROPERTY SALES
WHEREAS, on April 20, 1999, the City established the Residential Property Report (RPR)
Program ("The Program") with the intent to preserve and improve the quality of neighborhoods
in Carson. The report identifies building code and zoning violations of residential properties and
requires the seller to correct violations prior to closing of escrow of residential real property
sales. Building and Safety inspectors create residential property reports during pre -sale
inspections.
WHEREAS, on July 19, 2016, at the direction of the City Council, an RPR Ad Hoc
Committee (Committee) was formed to evaluate the Program and to meet with members of the
South Bay Association of Realtors and other interested parties to gather input, discuss concerns
and return with recommendations to the City Council.; and
WHEREAS, The Committee met several times in the last three years and considered
several options to modify the Program. At the June 12, 2018 meeting the Committee agreed to
end the Program based on the following assumptions:
• Real estate professionals will be responsible for correcting outstanding building and
zoning code violations;
• There will be costs savings to the City realized by eliminating a financially subsidized
program; and
• Ending pre -sale inspections will reduce the City's liability exposure.; and
WHEREAS, on April 2, 2019, based on the recommendation of the Committee, the City
Council directed staff to formally eliminate the Program and bring this matter before the City
Council for decision. At that time, the City Council made the following requests (Exhibit No. 1):
• Notify the South Bay Association of Realtors of the proposed change and public hearing
date before the City Council;
• Meet with the South Bay Association of Realtors prior to City Council public hearing;
• Recommend removing County liens/notes on all properties affected by the Program;
• Create a checklist consisting of a realtor's responsibilities for the sale of residential
properties to ensure all Building and Planning code violations are addressed by the real
estate professionals; and
• The City will continue to be responsible for addressing illegal garage conversions and
additions; and
WHEREAS, the Planning Commission held a duly noticed public hearing on May 28 and
July 9, 2019, and adopted Resolution No. 19-2670 recommending that the City Council approve
the amendments to the Carson Municipal Code as set forth in this ordinance; and
ORDINANCE NO. 19-1933
Page 1 of 5
WHEREAS, the Council now desires and Intends to repeal the RPR program as it pertains
to residential properties generally, while preserving the residential care facility and vacant
foreclosed property RPR program components; and
WHEREAS, the City Council held a duly noticed public hearing on August 6, 2018, to
consider introducing this Ordinance and take public testimony; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, DOES ORDAIN AS
FOLLOWS:
SECTION 1. The City Council public hearing was duly noticed on July 18, 2019; and the
foregoing recitals are true and correct, and are incorporated herein by reference.
SECTION 2. The City Council finds the public health, safety and welfare would not be
adversely affected by approval of the proposed amendment to the Carson Municipal Code,
Article V (Sanitation and Health), Chapter 9 (Residential Property Report) to repeal the
Residential Property Report (RPR) requirement for all residential real property sales. The General
Plan 2004 under Chapter 2, Land Use promotes the elimination of all evidence of property
deterioration throughout Carson.
SECTION 3. Pursuant to Section 15061(b)(3) the proposed ordinance amendment is
exempt from the California Environmental Quality Act (CEQA) since the activity is covered by the
general rule that CEQA applies only to projects which have the potential for causing a significant
effect on the environment. Where it can be seen with certainty that there is no possibility that
the activity in question may have a significant effect on the environment, the activity is not
subject to CEQA.
SECTION 4. Section 5902 (Required) of Chapter 9 (Residential Property Report) of
Article V (Sanitation and Health) of the Carson Municipal Code is hereby amended (deleted
language is StFik�, g„ and additional language is "bold italics with underline):
5902 Required.
"(a) No owner of residential real property shall transfer title and/or convey
ownership'- such pFep of_a residential care facility without first providing
the prospective buyer with a copy of a valid residential property report for the
property.
(b) No person shall commence operation of a residential care facility on
residential real property without first obtaining a residential property report for
such property.
(c) No person shall renew a business license for an existing residential care
facility operating on residential real property without first obtaining a
residential property report for such property; provided, however, that this
paragraph shall not apply to any residential care facility that has previously
obtained a residential property report for such property.
(d) Foreclosed Vacant Residential Property.
A. The beneficiary or its agent shall register the property with the Chief Building
Official, on forms provided by the City, within ten (10) days from the earlier of
the following dates: (i) the date a notice of default is recorded on a property; or
(ii) the date of a default inspection which indicates that the property is vacant or
abandoned. The provisions of subsection (d)(A)(i) of this Section shall apply to
each property for which a notice of default is recorded on or after July 31, 2010.
ORDINANCE NO. 19-1933
Page 2 of 5
B. Property which is acquired by a beneficiary following the recordation of a
notice of default, whether acquired by such beneficiary by foreclosure, deed in
lieu of foreclosure or judgment of foreclosure, shall also be subject to
compliance with the provisions of this Section, upon the sale, exchange, transfer
or other conveyance of such property by the beneficiary to a third person.
C. Property which is vacant or abandoned at the time of acquisition by a
beneficiary, whether acquired by such beneficiary by foreclosure, deed in lieu of
foreclosure or judgment of foreclosure, shall also be subject to compliance with
the provisions of this Section, prior to the earlier date of either: (i) re -occupancy
of such property by any tenant of the beneficiary; or (ii) sale, exchange, transfer
or other conveyance of such property by the beneficiary to a third person.
a. Property which is occupied by either the trustor or a tenant of the trustor at
the time of acquisition by a beneficiary, whether acquired by such beneficiary
by foreclosure, deed in lieu of foreclosure or judgment of foreclosure, shall also
be subject to compliance with the provisions of this Section prior to the earlier
date of either: (i) the re -occupancy of such property by any successor tenant to
the trustor or such other successor tenant to the tenant in possession of the
property at the time of the beneficiary's acquisition of the property; or (ii) sale,
exchange, transfer or other conveyance of such property by the beneficiary to a
third person.
(e) Re -Registration of Property Subject to This Chapter.
A. The beneficiary or its agent shall annually renew a registration of each
property which the beneficiary has previously registered with the City under this
Chapter, and in which such beneficiary retains either an equitable or legal
interest as of the first anniversary of the registration of such property with the
City. The beneficiary or its agent shall re -register the property on forms
provided by the City.
B. The provisions of this subsection (e) shall apply to each property for which a
notice of default was recorded on or after October 1, 2009.
(f) Special Provisions Where Property Is Encumbered with the Security Interests
of Multiple Beneficiaries.
A. In the event that a property is encumbered by the security interests of more
than one beneficiary at the time when a notice of default is recorded, the
beneficiary who causes a notice of default for its security interest to be
recorded shall be responsible for registering the property with the City as
provided in this Section and CMC 5910.
B. Upon the recordation of a notice of default on a property by any beneficiary,
regardless of the security lien interest priority of such beneficiary in the
property in relation to the priority of the security interests of the other
beneficiaries in the same property, the City in its discretion may elect to enforce
the provisions of this Chapter against one (1) or more beneficiaries who have
not separately recorded a notice of default against the property.
(g) Notice by Beneficiary to City of Disposition of Registered Property.
A. Within ten (10) days following the release of a notice of default and the
reinstatement of the loan of the trustor, the beneficiary or its agent shall give
the City written notice of such release and reinstatement.
B. Within ten (10) days following the sale, transfer or their conveyance to a third
person of a property registered with the City under this Chapter, the beneficiary
or its agent shall give the City written notice of such sale, transfer or other
ORDINANCE NO. 19-1933
Page 3 of 5
conveyance together with current contact information for such bona fide
purchaser/successor in interest to the beneficiary in such property."
SECTION S. If any one or more of the provisions contained in this Ordinance shall for any
reason be held to be invalid, illegal or unenforceable in any respect, then such invalidity, illegality
or unenforceability shall not affect any other provision hereof, and this Ordinance shall be
construed as if such invalid, illegal, or unenforceable term or provision had never been contained
herein.
SECTION 6. This Ordinance shall be in full force and effect thirty (30) days after its
adoption.
SECTION 7. The City Clerk shall certify to the adoption of this Ordinance, and shall cause
the same to be posted and codified in the manner required by law.
PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on this 20'" day of
August, 2019.
[Signatures on Following Page]
ORDINANCE NO. 19-1933
Page 4 of 5
APPROVED AS TO FOR .
1
Sunny K. Solta ity t f ey
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } ss.
CITY OF CARSON }
CITY OF CARSON:
rt R*Ies, Mayor
ATTEST:
rl i na,MMC, City le� nesia Gause-Ald
�k
I, Donesia Gause-Aldana, City Clerk of the City of Carson, California, hereby attest to and certify
that the foregoing ordinance, being Ordinance 19-1933 passed first reading on the 61h day of
August, 2019, adopted by the Carson City Council at its meeting held on the 201h day of August,
2019, by the following roll call vote:
AYES: COUNCIL MEMBERS: Robles, Hicks, Davis—Holmes, Dear
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
RECUSAL: COUNCILMEMBER Hilton LV f
qq---4)onesia Gause-Aldana, MMC, C ty Clerk
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } ss.
CITY OF CARSON }
I, Donesia Gause-Aldana, City Clerk of the City of Carson, California, do hereby certify that
Ordinance No. 19-1933 has been duly and regularly published according to law and the order of
the City Council of said City and that same was so published in Our Weekly, a newspaper of
general circulation on the following dates):
Adopted Ordinance: ZI U}
In witness whereof, I have hereunto subscribed my na e t is d y of
2019. 1
Donesia Gause-Aldana, MMC, City Clerk
ORDINANCE NO. 19-1933
Page 5 of 5
June 12, 2018 RPR Ad Hoc Committee Minutes
Executive Conference Room
The meeting was called to order at 2:15 p.m.
RPR Ad Hoc Committee Members Present:
Councilmember Lula Davis -Holmes, Chair
Councilmember Cedric Hicks
Community Development Director Naaseh
District Engineer Randal Sancho
RPR Inspector Leidy Cetina
Associate Planner McKina Alexander
Also Present:
Recording Secretary Denise Bothe
Community Development Director Naaseh reviewed the Residential Property Report (RPR) Staff
Recommendations sheet that had been distributed to those present, noting staff has created four
options for consideration of this program.
1) Option 1, RPR 1999 -- Identify and correct unpermitted additions and conversions.
2) Option 2, RPR (2017) -- Identify and correct all deficiencies.
3) Option 3, Deficiency list only— Simplifies transaction process.
4) Option 4, No program -- No obstacles in the transaction process.
*(starts out saying garage conversions/additions) Chair Davis -Holmes expressed her desire that if the
program is to stay in place, that it only deal with basic health and safety issues, only illegal garage
conversions or illegal additions; and stated that the City should not be involved in a private transaction
between a buyer and a seller. She stated that the realtors are required to check for various violations
and the City should not be doubling that effort; and added that a buyer should always protect
themselves by hiring a professional home inspection. Chair Davis -Holmes stated there should be zero
liability on the part of the City. She added by doing this, the City will not be holding up escrow
transactions.
After further discussion, both Chair Davis -Holmes and Councilmember Hicks agreed that the entire RPR
program should be eliminated; and that the County liens/notes should be removed. They agreed that
eliminating this program will save the City funds and will reduce exposure to liability; and stated that the
realtors are already responsible for completing a checklist of violations. *They indicated their concern
still with illegal garage conversions and illegal additions.
Both Chair Davis -Holmes and Councilmember Hicks recommended the following:
1
ORDINANCE NO. 19-1933 (Exhibit 1)
Page 1 of 2
1) Bring this matter before City Council for consideration to eliminate the RPR program in its
entirety and remove any involvement from private real estate sales activities/transactions;
2) Send a letter to the real estate industry of this proposed change and date for when this item will
go before City Council for public hearing, but also meet with realtors before this item goes to
City Council for public hearing
3) Recommend removing County liens/notes on all properties
4) Staff report to provide a checklist of a realtor's responsibilities, wanting to make sure all health
and safety violations are addressed by the real estate professionals
5) *City is still obligated to be responsible for overseeing/managing illegal garage conversions and
illegal additions
Community Development Director highlighted his understanding of the subcommittee's direction that
City staff completely remove themselves from any aspect of a private property sales transaction,
allowing the real estate professionals do their own inspections.
Councilmembers Davis -Holmes and Councilmember Hicks concurred.
This meeting concluded at 2:45 p.m.
2
ORDINANCE NO. 19-1933 (Exhibit 1)
Page 2 of 2