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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