ITEM 7-A

Council Mtg:  August 7, 1990

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Tenant Participating Conversion (TPC) 108 To Allow  The
          Conversion  of  An  Eight  Unit  Apartment  Building To
          Condominiums at 1518 Yale Street.   It  Was  Determined
          That The Planning Commission Did Not Have The Authority
          To Act on The Conversion Due To The Presence of One  of
          The Building's Owners on The Planning Commission.

INTRODUCTION

This report recommends that the City Council approve the proposed
eight   unit  tenant  participating  conversion  subject  to  the
findings and conditions contained herein.

BACKGROUND

This application for conversion was originally scheduled for  the
June  6,  1990, Planning Commission public hearing.  Prior to the
public hearing, it was determined that  since  an  owner  of  the
building  was  a  member of the Planning Commission, the proposed
conversion should be brought before the City Council  for  public
hearing.   The  City  Council  is  therefore required to hear the
subject request, and make the findings and  conditions  necessary
to approve, conditionally approve or deny the subject conversion.

This is an application for  approval  of  a  Tenant-Participating
Conversion  (TPC)  submitted  under  the provisions of the Tenant
Ownership Rights Charter Amendment (TORCA) approved by the voters
of  the  City  of  Santa Monica in June 1984.  As required by the
provisions of TORCA, the public  hearing  held  by  the  Planning
Commission,  or  City  Council,  on  the  TPC application is held
simultaneously with the hearing on  the  tentative  map  for  the
conversion.

The subject site contains  a  two  story,  eight  unit  apartment
building constructed in August of 1947.  There are 4 two bedroom/
one bathroom units, and 4 one bedroom/one  bathroom  units.   The
building meets parking standards in effect at the time of the its
construction  with  the  provision  of  6  parking  spaces.   The
application for conversion was accepted for filing by the City on
February 2, 1990.

Under a March 23, 1990 opinion issued by the  City  Attorney,  an
apartment  building owner who resides in an apartment building of
which they are  an  owner,  cannot  be  considered  a  "cosigning
tenant" (a tenant agreeing to the conversion) or an "intending to
purchase" tenant (a tenant who has an intent  to  purchase  their
unit)  in  a  tenant  participating  conversion  filed  under the
provisions of TORCA.  Owners who are living  in  their  buildings
are  therefore  precluded  from  voting  for  a  conversion.  The
subject conversion is the first tenant  participating  conversion
to  be  reviewed  under the aforementioned interpretation, and is
adversely impacted by said interpretation.

Under Charter Section 2001(n), a tenant is defined as "any person
who  is  an authorized tenant of an owner of a residential rental
building for which a Tenant Participating Conversion  Application
has  been  filed".  A cosigning tenant is further defined as "any
tenant agreeing to the conversion by his or her signature on  the
Tenant-Participating  Conversion  Application  who has personally
occupied his or her unit continuously for a period  of  at  least
six   (6)   months  prior  to  the  date  he  or  she  signs  the
Tenant-Participating Conversion Application".    Under  the  City
Attorney's opinion, an owner of residential property could not be
considered a tenant since the owner is not occupying the property
under  the  terms  of  a  rental housing agreement, and is not an
authorized tenant of the owner.  The only exception would  be  if
an  "owner"  does  not actually hold an ownership interest in the
property, but holds an interest in some other entity, such  as  a
corporation  or partnership, which owns the building.  Even under
this situation, the owner  must  demonstrates  a  landlord/tenant
relationship with the corporation or partnership.

Under the subject proposal, the owners constitute two of the  six
tenants  agreeing  to the conversion, and two of the four tenants
agreeing to purchase their units.   The  title  report  indicates
that  Paul  Rosenstein,  Carol Nolan and Diane Perlov are in fact
owners of the 1518 Yale Street property.  Records supplied by the
applicant, however, indicate that rent payments were made to 1518
Yale Street Associates, which in turn made the mortgage payments.
While the 1518 Yale Street Associates is not a formal corporation
or  partnership,  it  would   appear   that   a   tenant/landlord
relationship is in existence.

By not allowing the owners of the  subject  building  to  act  as
"cosigning" tenants or "intending to purchase" tenants, the votes
needed to process a tenant participating conversion are not met.

In processing an application for conversion, the  first  step  is
filing  a  request  for  submittal  appointment with the Planning
Division.  Preliminary research is  conducted  by  staff,  and  a
formal  appointment  is  scheduled  with  the  applicant.  At the
submittal meeting, the application is  reviewed  for  conformance
with  the submittal requirements of Article XX, Section 2002.  If
all required items are provided, the application is  accepted  by
the   City  pursuant  to  Section  2003.   If  there  is  missing
information, the application is not accepted, and an  explanation
of what is needed is given by staff.

The subject application for conversion was  submitted  for  staff
review and accepted for filing on February 2, 1990.  No objection
letters were received by the City during  the  25  day  objection
period.  The application for subdivision was accepted as complete
on  April  2,  1990.   Section  2004(a)  states  that  a   Tenant
Participating  Conversion  Application,  along  with any required
subdivision map or tentative parcel map, shall be denied  if  the
Tenant Participating Conversion Application fails to the meet the
requirements  of  Article  [XX],  was  the   result   of   fraud,
misrepresentation,  or  threat  of  similar coercion, or fails to
meet the requirements of the Subdivision Map Act of the State  of
California.    Through   staff's   acceptance   of   the   tenant
participating conversion application and tentative tract map, the
grounds  for  denial of the subject application would be if there
were any allegations of fraud, misrepresentation, ect., or if  it
is  determined  that  the  requisite  number  of  votes  were not
obtained.

The applicant argues that since the  tentative  tract  map  is  a
vesting  tract map, then the application for conversion should be
reviewed under the Charter amendment as it was interpreted  prior
to the City Attorney's opinion.

Until the March 23, 1990 memorandum from the  City  Attorney  was
issued,   the  City  had  processed  and  approved  a  number  of
conversion projects in which resident owners were  considered  as
"cosigning   tenants"   and   "intending  to  purchase"  tenants.
Research by the applicant's attorney indicates  that  there  have
been  27  projects  where owners have been considered as tenants,
all of which have been accepted by  the  City,  approved  by  the
Planning  Commission  and  with various documents relating to the
conversions reviewed and approved by the City Attorney's  office.
Given  this  precedent,  and  the  applicant's reliance on it, it
would seem to be  unfair  to  apply  the  new  interpretation  to
project's  submitted  prior  to  City  Attorney's March 23, 1990,
memorandum.  One other project, a three unit conversion, would be
affected.

Staff  is  prepared  to  enforce   the   recent   City   Attorney
interpretation  of the definition of "tenant" on all applications
submitted after March 23, 1990.  The owner/signatory issue aside,
The City Council, may, however, deny this application ONLY upon a
specific finding that the proposed conversion fails to  meet  the
requirements  of  Article  XX  of the City Charter (TORCA) or the
State  Subdivision  Map  Act  or  is   the   result   of   fraud,
misrepresentation, or threat or similar coercion.  The conversion
meets the requirements of Article XX as they were interpreted  at
the  time  of  application  submittal,  and  as  such  should  be
approved.  This recommendation  is  at  variance  with  the  City
Attorney's  opinion  and  recommendation on this matter.   Should
the Council wish to apply the City Attorney's opinion to this and
the  other  affected  project,  staff  will  prepare  appropriate
findings for denial based upon the Council action.

With the application of the previous interpretation regarding the
owner/tenant  issue,  staff  finds  no  basis  for denial of this
application and therefore recommends approval with  the  findings
and  conditions  set  forth below.  If the City Council, however,
determines that in this particular situation owners should not be
considered  tenants,  the application must be denied based on the
applicant's failure  to  obtain  the  required  number  of  votes
agreeing to the conversion and intending to purchase.  If this is
the case, staff will return to the City Council at a  later  date
with negative findings.

As the Council knows, it approved revised  Charter  language  for
voter consideration which would specifically address the issue of
owner/tenant eligibility to sign as a co-signing and intending to
purchase  tenant.   It seems clear that the intent of the Council
is to allow projects such as this one to move forward.

Summary Information

       Number of Total Units             8

       Units with Cosigning Tenants      6 (75% of total units)

       Units with Tenants Signing        4 (50% of total units)
       Intent to Purchase

       Units with Senior or
       Disabled Tenants                  2 senior citizens

       Estimate of Conversion Tax        $43,300.00  on  sale  of
                                         all units

       Owner(s)                          Carol Nolan, Diane  Per-
                                         lov and Paul Rosenstein

       Last Hearing Date
       per Sub. Map Act                  June  6, 1990 w/ ext. of
                                         time     granted      by
                                         applicant.

Building Qualification:  The subject  building  is  a  Qualifying
Building  per Sec. 2001 (l) of Article XX of the City Charter, as
declared by the applicant and confirmed by the City Planning  Di-
vision,  the  Building  and  Safety Division and the Rent Control
Administration office.

Objections:  No objections to this  Tenant-Participating  Conver-
sion  were filed with the City within the 25 day objection period
following notification to all building  tenants  of  the  Tenant-
Participating  Conversion  Application,  nor  were any objections
received prior to the time of  distribution  of  this  report  to
Planning Commissioners.

Additional Information:  Additional information may be  found  in
the  attached portions of the Tenant-Participating Conversion Ap-
plication and Tentative Map Application.

BUDGET/FINANCIAL IMPACT

The recommendation presented in this  report  does  not  have  an
immediate  budget  or  fiscal  impact.   As  each  unit is sold a
conversion tax per Section 2008 of Article XX is due in an amount
equal to twelve times the monthly maximum allowable rent for that
unit.  These taxes will be used to assist low and moderate income
households   to  purchase  or  improve  their  units  subject  to
affordable repayment per Section 2009 of Article XX.

RECOMMENDATION

A  Tenant-Participating  Conversion,  along  with  any   required
tentative  map,  may  only  be  denied  if  it  fails to meet the
requirements of Article XX of the City Charter, is the result  of
fraud,  misrepresentation,  or  threat  or  similar  coercion, or
fails to meet any mandatory requirement of  the  Subdivision  Map
Act.

In that this application meets the requirements of Article XX and
all  mandatory  requirements of the State Subdivision Map Act, it
is respectfully recommended that Tenant-Participating  Conversion
108  and  vesting  tentative tract map 49372 be approved with the
following findings and conditions:

Tenant-Participating Conversion Findings

1.     This Tenant-Participating Conversion Application meets the
       requirements of Article XX of the City Charter of the City
       of Santa Monica along with all mandatory  requirements  of
       the  Subdivision  Map  Act  of  the  State  of California.
       [reference Sec. 2004 (a), Article XX]

2.     The Tenant-Participating Conversion Application  has  been
       deemed  complete  and accepted for filing.  At the time of
       filing it met the requirements of Section 2002 of  Article
       XX  of  the  City Charter for a complete application.  The
       subject application:

       (a) Identifies the building, its owner and its tenants and
          contains a declaration that such building is a Qualify-
          ing Building, the specific details of which are  incor-
          porated into these findings by reference.

       (b) Sets forth, for each tenant occupied unit, the follow-
       ing  sales  information,  which is incorporated into these
       findings by reference:

                    1) The maximum sales price for each unit.
                    2) The minimum down payment for each unit.
                    3)  If  seller  financing  is  offered,   the
                    minimum  amount  to  be financed, the maximum
                    rate of interest and the minimum term of  the
                    loan offered by the seller.

       (c) Sets forth, for each unit, the following common  area,
       maintenance  and budget information, which is incorporated
       into these findings by reference:

                    1) The plan for the assignment and use of all
                    parking spaces.
                    2) The plan for the use of  all  common  area
                    facilities.
                    3) The occupancy  and  management  plans  and
                    policies.
                    4) A list of all repairs and alterations,  if
                    any, which will be performed before the close
                    of the first escrow.
                    5) The plan for allocating costs and expenses
                    for the building.
                    6)  A  prepared  monthly  maintenance  budget
                    based upon actual maintenance expenses for at
                    least  the preceding two years plus a reserve
                    fund which  states  the  monthly  maintenance
                    assessment for each unit.
                    7) The procedures for the allocation and  use
                    of such reserve funds.

       (d) Contains a declaration with the following information:

             1) That there has been a building inspection  report
                of  the  accessible portions of the entire build-
                ing, including but  not  limited  to,  the  roof,
                walls,  floors, heating, air conditioning, plumb-
                ing, electrical systems or components of a  simi-
                lar   or   comparable  nature,  and  recreational
                facilities of the building prepared by a Building
                Inspection  Service  or similar agency within the
                preceding three (3) months.

             2) That, for each tenant occupied  unit,  a  written
                statement  setting  forth any substantial defects
                or malfunctions identified in  the  building  in-
                spection report regarding the unit and the common
                areas has been delivered to the unit or a  tenant
                occupying the unit.

             3) That, for each tenant occupied unit,  a  copy  of
                the  complete building inspection report has been
                delivered to the unit or a tenant  occupying  the
                unit.

       (e) Sets forth the form of tenant ownership for which  the
             application is submitted--Condominium.

       (f)   Is signed by cosigning tenants  occupying  75%  (not
             less  than  two-thirds) of all the residential units
             in the building.  (If there is more than one  tenant
             in  a  unit,  the  signature  of  only one tenant is
             required.)

       (g)   Identifies the cosigning tenants and the units occu-
             pied  by  such  tenants  and lists all other tenants
             known to the owner in the  building  and  the  units
             they occupy.

       (h)   Contains a declaration that the  signature  of  each
             cosigning  tenant was obtained only after the deliv-
             ery, in writing, to such tenant of  the  information
             required  in  subsections (a) (b) (c) (d) and (e) of
             this Section.

       (i)   Contains a declaration that all lawful notices  have
             been given of the application for conversion.

       (j)   Has attached to the application Statements of Tenant
             Intent  to Purchase, signed by Intending to Purchase
             Tenants occupying 50% (not less than fifty  percent)
             of  the  total  number  of  residential units in the
             building.  (If there is more than one  tenant  in  a
             unit, the signature of only one tenant is required.)

       (k)   That, for each tenant occupied unit, a Tenant Intent
             to  Purchase  has  been  delivered  to the unit or a
             tenant occupying the unit.

3.     The following procedures have been followed  in  the  pro-
       cessing    of    this    Tenant-Participating   Conversion
       Application:

       (a)   A Tenant-Participating  Conversion  Application  was
             accepted  for  filing  by  the  City  and  meets the
             requirements of Section 2002 of Article  XX  of  the
             City Charter.

       (b)   The Tenant-Participating Conversion Application  was
             filed  by  the  owner  on February 2, 1990, not less
             than forty (40) days prior to the filing of the  ap-
             plication  for  the tentative subdivision/parcel map
             on March 26, 1990.

       (c)   Within five (5) days of the filing  of  the  Tenant-
             Participating  Conversion Application, the City sent
             notice to every tenant in the building stating  that
             a  Tenant-Participating  Conversion  Application had
             been filed and that any objections  thereto  may  be
             filed  with  the  City  within twenty-five (25) days
             from the date of the notice.

       (d)   Upon the filing of the application for the  required
             tentative   subdivision/parcel   map,   the  Tenant-
             Participating Conversion  Application  and  required
             map  were scheduled for hearing and processed in ac-
             cordance with the procedures for the  processing  of
             subdivision maps.

Tentative Map Findings

1.     The proposed subdivision, together with its provisions for
       its  design  and  improvements, is consistent with the ap-
       plicable general and specific plans as adopted by the City
       of  Santa  Monica.   [Reference California Government Code
       Sec. 66473.5 and Santa Monica  Municipal  Code  Sec.  9362
       (a)]

2.     The owner(s) and  each  tenant  on  the  subject  property
       received copies of this staff report and recommendation at
       least three days prior to this public hearing.

3.     Notification of this hearing has been in conformance  with
       Section 9360 of the Santa Monica Municipal Code.

4.     Each of the tenants of the  proposed  condominium  project
       has received, pursuant to Government Code Section 66452.9,
       written notification of intention to convert at  least  60
       days  prior to the filing of the tentative map pursuant to
       Section 66452.  Each such tenant, and each person applying
       for  the rental of a unit in such residential real proper-
       ty, has, or will have, received all applicable notices and
       rights  now  or  hereafter required by the Subdivision Map
       Act.  Each tenant has received or  will  receive  10  days
       written  notification that an application for a public re-
       port will be, or has been, submitted to the Department  of
       Real  Estate,  and  that  such report will be available on
       request.  The written notices to tenants shall  be  deemed
       satisfied  if  such notices comply with the legal require-
       ments for service by mail.

5.     Each of the tenants of the  proposed  condominium  project
       has been, or will be, given written notification within 10
       days  of  approval  of  a  final  map  for  the   proposed
       conversion.

6.     Each of the tenants of the  proposed  condominium  project
       has  been,  or  will  be, given 180 days written notice of
       intention to convert prior to any termination  of  tenancy
       due  to  the conversion or proposed conversion.  This will
       not alter or abridge the  rights  or  obligations  of  the
       parties  in performance of their covenants, including, but
       not limited by Sections 1941, 1941.1, and  1941.2  of  the
       Civil   Code,  and  set  forth  herein  as  conditions  of
       approval.

7.     Each of the tenants of the  proposed  condominium  project
       has  been,  or will be, given notice of an exclusive right
       to contract for the purchase of his or her respective unit
       upon  the same terms and conditions that such unit will be
       initially offered to the  general  public  or  terms  more
       favorable  to the tenant.  The right will run for a period
       of not less than 90 days from the date of issuance of  the
       subdivision  public  report pursuant to Section 11018.2 of
       the Business and Professions Code, unless the tenant gives
       prior  written notice of his or her intention not to exer-
       cise the right.  This will not alter or abridge the rights
       or  obligations  of the parties set forth herein as condi-
       tions of approval.

8.     This project has been found  to  be  categorically  exempt
       from  the California Environmental Quality Act of 1970 and
       state and local guidelines adopted thereunder.

Note:  Individual findings required for approval  of  non-Tenant-
Participating  Conversions  specified  in  Santa Monica Municipal
Code Sec. 9122F either are inconsistent with  or  redundant  with
the  requirements  of Article XX and therefore are not applicable
to or necessary for approval of Tenant-Participating Conversions.

Conditions

1.     The owner shall agree to each condition imposed in connec-
       tion  with  the approval of a Tenant-Participating Conver-
       sion Application.  Written consent shall be filed prior to
       the  approval of the required final parcel/subdivision map
       and shall be in a form approved by the City Attorney.  The
       filing  of such written consent shall constitute an agree-
       ment, with the City of Santa Monica and each Participating
       Tenant,  binding  upon  the  owner  and  any successors in
       interest, to comply with each and every condition  imposed
       in  connection  with approval of this Tenant-Participating
       Conversion Application.  The City  and  any  Participating
       Tenant  shall  have  the  right to specific enforcement of
       this Agreement in addition to any other remedies  provided
       by law.

2.     The owner shall offer and continue to offer the  exclusive
       right  to purchase each rental unit in the building to the
       Participating Tenant thereof upon the terms set  forth  in
       the  application, without change, for a period of not less
       than two (2) years from the date of final approval by  the
       California Department of Real Estate or the date the first
       unit in the building is offered for sale, if  no  approval
       by  the  California Department of Real Estate is required.
       At the beginning of the second year, the Tenant Sale Price
       may  be  adjusted according to any change reflected in the
       Price Index [as defined in Section 2001(j) of  Article  XX
       of the City Charter] occurring during the proceeding year.
       Upon the written acceptance  of  the  offer  by  the  Par-
       ticipating  Tenant at any time within the two year period,
       escrow shall open within thirty (30) days from the written
       acceptance  by the Participating Tenant.  Unless otherwise
       agreed by the parties, the period of the escrow shall  not
       exceed sixty (60) days.

3.     No Participating Tenant shall at any time  after  the  ap-
       proval of this Tenant-Participating Conversion Application
       be evicted for the purpose of occupancy by the owner,  oc-
       cupancy by any relative of the owner, or for demolition of
       the unit.  In the event the Participating Tenant does  not
       exercise  his  or  her  right  to purchase within the time
       period set forth, the owner may transfer the unit  without
       any  price  restriction to the Participating Tenant or any
       other person.  However, in the event such transfer  is  to
       someone  other than the Participating Tenant, the transfer
       shall be expressly made subject to the rights of the  Par-
       ticipating  Tenant  to continue to occupy the unit as pro-
       vided for in Article XX of the City Charter.   The  provi-
       sions  of  California Government Code Section 7060 et seq.
       ("The Ellis Act") shall not be  used  to  evict  any  non-
       purchasing Participating Tenant.

4.     Each unit shall at all times remain subject to  all  terms
       and  conditions  of Article XVIII of the City Charter, ex-
       cept Section  1803  (t),  before,  during  and  after  any
       Tenant-Participating  Conversion.   If any unit is rented,
       the maximum allowable rent  for  each  unit  shall  be  no
       greater  than the maximum allowable rent allowed under Ar-
       ticle XVIII of the City Charter.

5.     Prior to  the  approval  of  the  required  final  parcel/
       subdivision  map  for the Tenant-Participating Conversion,
       each participating tenant shall be informed in writing, in
       a  form  approved  by the City, of his or her rights under
       Article XX of the City Charter.

6.     All non-purchasing Participating Tenants  who  are  senior
       citizens  or  disabled  on  the date of filing the Tenant-
       Participating Conversion Application  and  who  personally
       occupied  a  rental  unit in this qualifying building con-
       tinuously for at least six (6) months immediately  preced-
       ing  the  date  of the filing of this Tenant-Participating
       Conversion Application shall have  a  right  without  time
       limitations  to  occupy  their units subject to the provi-
       sions of Article XVIII of the City Charter  and  shall  be
       given  the  non-assignable right to continue to personally
       reside in their unit as long as they choose to do so  sub-
       ject  only to just cause evictions provided that the evic-
       tion is not for the purpose of  occupancy  by  the  owner,
       occupancy  by any relative of the owner, or for demolition
       of the unit.  In addition, should  the  maximum  allowable
       rent  provision  of  Article  XVIII of the City Charter no
       longer apply, the rent for each such unit may be  adjusted
       annually to allow an increase of no more than the increase
       in the Price Index [as defined in Section 2001(j) of Arti-
       cle  XX  of  the  City Charter] plus a reasonable pro rata
       share of capital replacements for the  buildings's  common
       areas  or  agreed  to  capital  improvements for the unit.
       Within sixty (60) days after the approval of this  Tenant-
       Participating  Conversion  Application, any senior citizen
       Participating Tenant who is entitled to the protections of
       this  provision  may  designate in writing the name of one
       person who is entitled to continue living  in  the  rental
       unit  under  the  same  terms as the senior citizen if the
       senior citizen predeceases him or her and  if  the  person
       designated  is  residing  in  the  unit at the time of the
       death of the senior citizen.  The person designated by the
       senior  citizen  must be a lawful occupant of the unit, at
       least fifty-five (55) years of age  on  the  date  of  the
       filing    of    this    Tenant-Participating    Conversion
       Application.

       All other non-purchasing Participating  Tenants  who  per-
       sonally occupied a rental unit in this qualifying building
       continuously for at least six (6) months immediately  pre-
       ceding  the  date  of  filing of this Tenant-Participating
       Conversion Application shall have  a  right  without  time
       limitations  to  occupy  their units subject to the provi-
       sions of Article XVIII of the City Charter  and  shall  be
       given  the  nonassignable  right to continue to personally
       reside in their unit subject only to just  cause  eviction
       for  a  period  of  five (5) years from the date the first
       unit is offered for sale.  No eviction  shall  be  allowed
       during this time period except for just cause provided the
       eviction is not for the purpose of occupancy by the owner,
       occupancy  by  any relative of the owner, or demolition of
       the unit.  In addition, during this  time  period,  should
       the  maximum allowable rent provisions of Article XVIII of
       the City Charter no longer apply, the rent for  each  unit
       may  be  adjusted annually to allow an increase of no more
       than the increase in the Price Index [as defined  in  Sec-
       tion  2001(j)  of  Article  XX of the City Charter] plus a
       reasonable pro rata share of capital improvements for  the
       building's  common areas or agreed to capital improvements
       for the unit.

       All rights under this condition shall expire upon the ter-
       mination  of  the landlord-tenant relationship between the
       owner  and  the  participating  tenant  entitled  to   the
       protections of this condition.

       For purposes of this condition, "just cause" means one  of
       the  reasons  set forth in subdivisions (a) through (g) of
       Section 1806 of the City Charter.

7.     The requirements of these conditions shall be set forth in
       the  Declaration  of  Covenants,  Conditions, and Restric-
       tions, or equivalent document, and shall specifically name
       the  Participating  Tenants  in  each unit entitled to the
       benefits  and  protections  of  Article  XX  of  the  City
       Charter.   The  City Attorney shall review and approve for
       compliance with Article XX the Covenants, Conditions,  and
       Restrictions,  or  equivalent  documents, prior to the ap-
       proval of the required final parcel/subdivision  map.   To
       the  extent  applicable,  the  requirements  of Article XX
       shall be made a part of the rental agreement with the Par-
       ticipating Tenants.

8.     The owner shall pay  the  Tenant-Participating  Conversion
       Tax  in  the manner required by Section 2008 of Article XX
       of the City Charter.

       The Tenant-Participating Conversion Tax shall be  paid  by
       the   owner   to   the  City  Treasurer  on  each  Tenant-
       Participating Conversion unit in an amount equal to twelve
       (12) times the monthly maximum allowable rent for the unit
       at the time the tax is due and payable.  If  there  is  no
       monthly  maximum allowable rent, the tax shall be computed
       on the basis of the monthly fair rental value of the unit.

       The Tenant-Participating Conversion Tax shall be  due  and
       payable  at  the  time  of  approval of the required final
       parcel/subdivision map.  Payment of the  tax  may  be  de-
       ferred  until  sale  of  the unit by the owner executing a
       lien in the form approved by the City.   Upon  payment  of
       the  tax,  or  upon  a determination that a unit is exempt
       from the tax in accordance with subdivision (d) of Section
       2008  a  release  of  lien shall be filed by the City with
       respect to each unit for which the tax has  been  paid  or
       which has been determined to be exempt from the tax.

9.     The Declaration of  Covenants,  Conditions,  and  Restric-
       tions,  or  equivalent  document,  shall  contain  a  non-
       discrimination clause in substantially the following form:

       "No unit owner shall execute or file for  record  any  in-
       strument  which imposes a restriction upon the sale, leas-
       ing or occupancy of his or her unit on the basis  of  sex,
       race,  color,  religion, sexual orientation, ancestry, na-
       tional origin,  age,  pregnancy,  marital  status,  family
       composition, or the potential or actual occupancy of minor
       children.  The association shall not discriminate  on  the
       basis  of  sex, race, color, religion, sexual orientation,
       ancestry, national origin, age, pregnancy, marital status,
       family  composition,  or the potential or actual occupancy
       of minor children."

10.    Approval of the Tenant-Participating  Conversion  Applica-
       tion shall expire if the required final parcel/subdivision
       map is not approved within the time period  set  forth  in
       Condition 11.

11.    The  tentative  parcel/subdivision  map  shall  expire  24
       months  after  approval,  except as provided in the provi-
       sions of California Government Code  Section  66452.6  and
       Sections  9380-9382  of  the  Santa Monica Municipal Code.
       During this time period, the final map shall be  presented
       to  the  City of Santa Monica for approval.  If the tenta-
       tive map is a vesting tentative map pursuant to California
       Government  Code  Section 66474.2, the provisions of Santa
       Monica Municipal Code Section 9325 also shall apply.

12.    The applicant shall comply with all requirements set forth
       in Government code Section 66427.1, including notification
       of tenants regarding application for a  public  report  to
       the  Department of Real Estate and notification of tenants
       regarding approval of a final map for the conversion.

13.    The developer/applicant shall provide the Engineering  De-
       partment  of the City of Santa Monica with one Dizal Cloth
       print reproduction and microfilm  of  each  sheet  of  the
       final map after recordation.

14.    The effective date of this action shall be ten (10) calen-
       dar  days  from the date of Planning Commission determina-
       tion or, if appealed per Section 9366 (SMMC), at such time
       as a final determination is made by the City Council.

15.    For information purposes, the following persons are  iden-
       tified   in  the  application  as  participating  tenants:
       Elizabeth paganelli, Diane  Perlov,  William  Bracken  and
       Michelle  Fine,  Carmen  Vasquez,  Carol  Nolan  and  Paul
       Rosenstein, and Marcie Adelsohn.

ATTACHMENTS:  A. Summary Cover Sheet
              B. Unit/Tenant Info.
              C. Seller Financing Info.
              D. Parking Plan
              E. Summary CC+R's
              F. Tenant Notice
              G. Correspondence (if any)
              H. Radius Map
              I. Tract/Parcel Map

Prepared by:  Larry Miner, Associate Planner
              D. Kenyon Webster, Principal Planner
              Paul Berlant, Director of Planning
              Community and Economic Development Department

NOTE:  The attachments are not  available  on  PEN,  but  may  be
obtained from the City Clerk's office.