SB 251 - Modifies Exemption Requirements for Condominium Conversions

Feldsott & Lee
A Law Corporation

Senate Bill 251 (hereinafter “SB 251”) makes technical and non-controversial changes to various sections of the law dealing with housing, including modifying the requirements for exemptions relating to conversion of community apartments and stock cooperatives.

The Subdivision Map Act (hereinafter “Act”) currently contains exemptions for certain conversions of community apartments and cooperatives to condominiums. Under these exemptions, record owners must have occupied at least 75 percent of units in a community apartment project on March 31, 1982, to exempt an association from complying with the Act in a conversion of a community apartment project to condominiums. The Act also requires that stockholders occupied at least 51 percent of units in a stock cooperative on January 1, 1981, in order for the exemption to apply.

Because proving occupancy from so long ago presents problems in that the records are no longer available, SB 251 replaces the requirements to show owner occupancy with requirements to show that no single owner controlled more than 49 percent of the units on the relevant date.