2006.10.17 CC Agenda PacketAGENDA
Community/Development Services Committee
Council Chambers
250 5th Avenue North, Edmonds
October 17, 2006
6:00 p.m.
The City Council Committee meetings are work sessions for the City
Council and staff only. The meetings are open to the public but are
not public hearings.
AM-644
(30
Min)
Discussion regarding conversion of rental apartments to
condominiums.
2.Adjourn
AM-644
Conversion of Rental Apartments to Condominiums
Community/Development Services Committee
Date:10/17/2006
Submitted By:Duane Bowman, Development Services Time:30 Minutes
Department:Development Services
Agenda Memo
Subject
Discussion regarding conversion of rental apartments to condominiums.
Previous Council Action
The City Council was asked September 26, 2006 to look into this topic by a citizen who complained about the
conversion of her apartment to a condominium. The matter was referred to the Community Services/Development
Services Committee for review.
Narrative
The City Attorney's office has prepared a memorandum (Exhibit 1) regarding the City's options for regulating
condominium conversions. They are quite limited. RCW 64.34.440 spells out the special protections for tenants of
apartment houses that are converted into condominiums.
The one thing the City could do would be to adopt an ordinance requiring a landlord to pay relocation assistance (up
to $500) to tenants and subtenants who elect not to purchase, provided the tenant meets the statutory definition of
a low-income household which is less than an amount equal to eighty percent of (i) the monthly median income for
comparably sized households in the standard metropolitan statistical area, as defined and established by the United
States department of housing and urban development, in which the condominium is located.
Recommendation
If the Committee supports creating an ordinance to assist low-income households with relocation costs, the matter
should be referred to the City Council for consideration.
Revenue & Expenditures
Fiscal Impact
Attachments
Link: Exhibit 1- City Atty Condominium Conversion Memo
A Member of the International Lawyers Network with independent member law firms worldwide
1601 Fifth Avenue, Suite 2100 • Seattle, WA 98101-1686 • 206.447.7000 • Fax: 206.447.0215 • Web: www.omwlaw.com
{BFP643603.DOC;1/00006.900150/}
MEMORANDUM
DATE: October 12, 2006
TO: Duane Bowman; Rob Chave; City of Edmonds Community/Development
Services Committee
FROM: Bio F. Park, Office of the City Attorney
RE: Outline of Protection in State Law for Residential Tenants in Conversion
Condominiums.
A. RCW 64.34.440 contains special protections for residential tenants of apartment houses
that are converted into condominium ownership.
1. The owner must give all residential tenants notice of conversion and a copy of the
public offering statement at least 90 days before they will be required to vacate. In addition
because the terms of the tenancy may not be altered, tenants cannot be evicted before the
expiration of the their current lease agreement.
2. During that 90 days a periodic (month to month) tenant cannot be evicted upon
the normal 20-day notice, nor may a tenant at will be evicted without notice, but either may be
evicted only upon the 90-day notice.
3. For 60 days after the notice is mailed or delivered, the tenant of a residential
apartment has an exclusive right to purchase it on such terms as it is offered.
October 12, 2006
Page 2
4. For another 180 days, if the declarant offers the unit for sale on more favorable
terms, the tenant has a pre-emptive right to purchase on those terms (although the declarant may
force the tenant to exercise that right or lose it upon 10 days' notice).
B. Although RCW 64.34.050 prohibits cities and counties from adopting zoning,
subdivision, building code, or other real property ordinance from imposing any requirement upon
a condominium which it would not be equally imposed upon a physically identical development
under a different form of ownership, RCW 64.34.440(6) permits cities and counties to adopt
ordinances requiring the landlord to pay relocation assistance (up to $500 per unit) to tenants and
subtenants who elect not to purchase, if the tenant meets the statutory definition of a low-income
household.
C. Additional regulation/protection, if implemented, must comply with RCW 64.34.050 (see
above) and must not conflict or be preempted by state law (primarily the Condominium Act and
the Residential Landlord Tenant Act) on the subject.
BFP:
{BFP643603.DOC;1/00006.900150/}