HomeMy WebLinkAboutG42-06 Ordinance No. G42-06
AN ORDINANCE
CREATING CHAPTER 16.46, ENTITLED
"RESIDENTIAL CONDOMINIUM CONVERSIONS,"
IN TITLE 16 OF THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED
WHEREAS, the City Council of the City of Elgin has determined that it is necessary and
desirable to create Chapter 16.46 of the Elgin Municipal Code to prescribe reasonable standards
and criteria regulating the conversion of existing multiple-family dwellings to condominiums;
and
WHEREAS, the City of Elgin is an Illinois municipal corporation and a home rule unit
pursuant to Article VII, Section 6(a) of the 1970 Constitution of the State of Illinois; and
WHEREAS, subject to Article VII, Section 6(a) of the 1970 Constitution of the State of
Illinois, a home rule unit may exercise any power and perform any function pertaining to its
government and affairs for the protection for the public health, safety, morals and welfare; and
WHEREAS, a home rule unit may exercise any power and perform any function
pertaining to its government and affairs; and
WHEREAS, the establishment of reasonable standards and criteria regulating the
Tm g
conversion of existing multiple-family dwellings to condominiums are matters pertaining to the
government and affairs of the City of Elgin.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ELGIN, ILLINOIS:
Section 1. That Chapter 16.46 of the Elgin Municipal Code, 1976, as amended, entitled
"Residential Condominium Conversions"be and is hereby created to read as follows:
"CHAPTER 16.46
RESIDENTIAL CONDOMINIUM CONVERSIONS
SECTION:
16.46.010: Definitions
16.46.020: Property Condition Report; Contents
16.46.030: Property Condition Report; Disclaimer
16.46.040: Warranty Provisions
16.46.050: Code Inspection
16.46.060: Notice Requirements
16.46.070: Code Requirements
16.46.080: Violations; Penalties
16.46.090: Compliance With Illinois Condominium Act
16.46.010: DEFINITIONS:
The following words and phrases shall have the meanings, and are hereby defined, as follows:
AGENT: Any person, firm, partnership, joint venture, corporation or any other entity or
combination of entities who represents or acts on behalf of a developer in selling or offering to
sell any condominium unit.
BOARD OF MANAGERS: The Board of Managers provided for and referred to in the Illinois
Condominium Property Act, as amended.
CERTIFICATE OF CONDOMINIUM COMPLIANCE: A written instrument issued by the City
as evidence of a condominium project's compliance with applicable building code, property
maintenance code and zoning ordinance standards of the City.
CLOSING OF A SALES CONTRACT: The operation of transferring ownership of a
condominium unit to the purchaser from the developer.
CODE INSPECTION REPORT: A written report issued by the City as evidence that all units
and common elements in a condominium project have been inspected for compliance with
applicable building code, property maintenance code and zoning ordinance standards of the City.
COMMON ELEMENTS: All portions of a condominium property except the condominium units
unless otherwise specified. Common elements shall also include limited common elements.
CONDOMINIUM: A form of property established pursuant to the Illinois Condominium
Property Act, as amended.
CONDOMINIUM PROJECT: A plan by a developer to sell residential condominium units in an
existing building or building to be constructed or under construction.
CONDOMINIUM UNIT OR UNIT: A separate three-dimensional (3-D) area identified as such
in the declaration and on the condominium plat. A condominium unit shall include all
improvements contained within the unit area except those excluded in the declaration.
CONVERSION: The offering for sale by a developer or his agent of a condominium unit that
was rented by any person prior to the commencement of a condominium project.
DECLARATION: An instrument by which a property is submitted to the provisions of
the Illinois Condominium Property Act, as amended.
DEVELOPER: Any person or successors who undertake to develop a condominium project
either by conversion or new construction.
2
DIRECTOR: The Community Development Group Director of the City of Elgin, as provided for
under Chapter 2.18 of the Elgin Municipal Code, 1976, as amended, or his or her authorized
representative may be hereinafter referred to as the Director.
DWELLING UNIT: One or more rooms within a condominium unit which are designed,
intended and used exclusively for human habitation within a common household. Each dwelling
unit shall have individualized and independent entrance, cooking, sleeping and sanitary facilities.
LIMITED COMMON ELEMENTS: A portion of the common elements to be reserved for the
use of a certain number of condominium units. Limited common elements shall include, but not
be limited to,balconies, terraces,patios and parking spaces or facilities.
OFFERING: Any inducement, solicitation, advertisement, publication or announcement by a
developer to the general public to encourage the purchase of a condominium unit or prospective
condominium unit.
ORIGINAL RESIDENTIAL USE: The lawfully conforming use of a property, including the
original number of dwelling units established on a property, when the property was originally
constructed and first approved for occupancy.
PERSON: Any natural individual, partnership, co-partnership, firm, company, association,joint
stock company, trust, estate, trustee or other legal entity capable of holding title to real property.
PLAT: A plat or plats of survey of all the units and common elements in a property submitted to
the provisions of the Illinois Condominium Property Act, as amended.
PROPERTY CONDITION REPORT: A property report required by this chapter and in
accordance with the Illinois Condominium Property Act, as amended.
PROSPECTIVE PURCHASER: A person who visits the condominium project site for the
purpose of inspection for possible purchase or who requests the property report.
TENANT: A person who pays rent for the privilege of occupying an apartment.
16.46.020: PROPERTY REPORT; CONTENTS:
At least thirty (30) days prior to closing a sales contract on any condominium unit in a
condominium project, a developer shall prepare and file with the Director a property condition
report and shall certify by affidavit that all disclosures are true to the best of his knowledge and
belief. Said report shall contain at least the following information about the condominium
project:
A. A statement indicating the name and address of the developer of the condominium
property.
B. A plat of survey showing the size and dimensions of the condominium property.
3
C. A legal description of the condominium units offered and the proportionate percentage of
individual ownership of said units.
D. A description of the common elements and a statement of the percentage ownership of
the common elements applicable to the condominium units offered.
E. A description of all existing and proposed facilities not included, or not to be included, as
part of the common elements.
F. A statement of the following, in capital letters, when parking facilities are not:
1. Part of the common elements, or
2. Divided as individual parking spaces among and designated as part of the units of a
condominium property:
PARKING FACILITIES ARE NOT OWNED BY THE UNIT OWNERS. IT
SHALL BE THE RESPONSIBILITY OF CONDOMINIUM UNIT OWNERS
TO OBTAIN THEIR PARKING FACILITIES.
G. An identification of all drawings, architectural plans and other suitable documents,
including "as built" drawings, setting forth information for the location, maintenance and
repair of condominium facilities and equipment. Said identification shall be made to the
extent these documents exist and are available to the Condominium Board of Managers.
H. Projected initiation and completion dates for any proposed construction, renovation or
conversion.
Copies of the following legal documents that are binding or are to be binding upon the
condominium:
1. The declaration and plat of survey. Prior to the recordation of the declaration, however,
a preliminary declaration and plat may be supplied, provided they are accompanied by a
written statement that the description of units and percentage of ownership interest in
common elements is preliminary and may be changed in material respects upon the
recording of the declaration and plat.
2. The articles of incorporation or charter of the condominium association, if any.
3. The bylaws and regulations of the condominium association.
J. Disclosures of the existence of other legal documents that are binding upon the
condominium, including:
1. Any leases on real or personal property applicable to the condominium.
4
2. The coverage and amounts of property insurance policies maintained on the
condominium building.
3. Any management contract, employment contract or any other contract affecting the
use, maintenance or access to all or any part of the condominium. Said disclosures under
this subsection shall include:
a. The name of the management agency, if any, and the services the agent will
perform;
b. The length of term of any management contract and the charges and
circumstances, if any, under which the charges may be increased;
c. The conditions, if any, under which the contract may be cancelled or
terminated; and
d. A statement disclosing any relationship between the developer and the
management firm.
K. A statement of sale prices, terms and options for condominium units.
L. A floor plan of the condominium unit offered for sale.
M. A description of any appliances and other personal property included with a unit offered
for sale.
N. A statement of the operating costs, such as costs for utilities, heating fuels, janitorial
services, trash and garbage disposal, ground and building maintenance, security,
maintenance or recreational and other facilities, building insurance, elevator maintenance,
sidewalk and street maintenance and taxes for the three(3)previous years.
O. A statement of the estimated operating budget for the condominium project, projected for
a period of one year from the expected date that control of the project would pass to the
Board of Managers. The projected operating budget shall include:
1. Operating costs, such as costs for utilities, heating fuels, janitorial services, trash and
garbage disposal, ground and building maintenance, security, maintenance or recreational
and other facilities, building insurance, elevator maintenance, sidewalk and street
maintenance and taxes. Said costs shall at least be shown in the aggregate and identified
as operating costs.
2. Management costs, such as the costs of management fees, accounting and bookkeeping
services and legal services. Said costs shall at least be shown in the aggregate and
identified as management costs.
r
5
•
3. Reserve costs, such as reserves for improvements, unexpected repair work, and
replacement and upkeep of common areas and facilities. Said costs shall at least be
shown in the aggregate and identified as reserve costs.
P. A statement of the provisions the developer has made to cover the proposed operations
and maintenance budget in the event an insufficient number of units are sold.
Q. A report from a professional engineer or architect, licensed by the State, describing the
condition and expected useful life of the following structural elements at least thirty (30)
days prior to closing sales contract:
1. Roof.
2. Foundation.
3. External and supporting walls.
4. Mechanical, electrical,plumbing, heating and structural elements.
5. All other common facilities.
To the extent possible, all said descriptions shall be provided together with an estimate of
repair and replacement costs at current market prices for those elements, which need
repair or replacement.
R. A statement verifying the number of applications of roofing systems existing on the
building. If more than two (2) applications of roofing systems exist, the developer shall
provide an estimate of cost for a complete tear-off of the old roofing systems and the
application of a new roofing system.
S. A statement indicating that the electrical service for each condominium unit is in
compliance with section 16.46.070 of this chapter and a list of condominium units,
identified by number, which indicates the size of the electrical service in ampere for each
unit.
T. A statement indicating that the electrical service for the building, based upon the per unit
electrical service requirements of section 16.46.070 of this chapter, is equal to or greater
than the electrical service requirements set forth in the City's electrical code.
16.46.030: PROPERTY CONDITION REPORT DISCLAIMER:
Each property condition report shall contain on the first page the following statement,
conspicuously shown in capital letters:
THE CITY OF ELGIN MAKES NO JUDGMENT ON THE STATEMENTS IN THIS
PROPERTY CONDITION REPORT. ORAL REPRESENTATIONS ARE NOT
6
BINDING ON THE DEVELOPER. ONLY REPRESENTATIONS MADE IN
WRITING ARE BINDING ON THE DEVELOPER.
16.46.040: WARRANTY PROVISIONS:
A. Any developer of a property submitted subject to the provisions of the Illinois
Condominium Property Act, as amended, shall be required to provide a warranty against
any defects in the following property components:
1. Roof.
2. Foundation.
3. External and supporting walls.
4. Central heating plant.
B. Said warranty shall cover the defects listed in this section for a period of one (1) year
from the date control of the condominium property passes to the Board of Managers.
C. Repair or replacement of the defects listed in this Section shall be performed in a timely
manner by the developer following notification by the Board of Managers.
D. Warranty coverage shall not include the cost of normal, routine maintenance of the
property components listed in this Section or defects caused by fire (not related to any
breach of warranty),force majeure, vandalism or negligence of a unit owner.
E. To assure compliance with this section, the developer shall, at the time of each closing,
procure a performance bond from a surety authorized to do business in Illinois, or other
similar financial security as approved by the corporation counsel, in an amount equal to
one percent (1%) of the total of each unit sale price. Said performance bond or other
similar financial security shall identify the City of Elgin and the Board of Managers as
obligees or beneficiaries, as the case may be, and shall remain in effect for a period of not
less than one (1) year from the date control of the condominium project passes to the
Board of Managers. The developer shall notify the Director by registered or certified mail
that control of the condominium project has passed to the Board of Managers within five
(5) days of the passage of control. At least sixty (60) days prior to the expiration of the
performance bond or other similar financial security, the developer shall notify the Board
of Managers and the affected unit owners by certified mail of the date upon which the
performance bond or other similar financial security will expire.
16.46.050: CODE INSPECTION:
A. A developer submitting a property to the provisions of the Illinois Condominium
Property Act, as amended, shall file a notice of intent to convert with the Director within
three (3) business days from the date said notice is given to the tenants of the property. A
code inspection of the property, including all projected condominium units and common
7
elements and facilities, shall be scheduled by agreement between the developer and the
Director when the notice of intent to convert is received by the Director.
B. Any code violations and deficiencies detected during an inspection of projected
condominium units and common elements and facilities shall be corrected by the
developer at least thirty (30) days prior to the closing of a sales contract on any
condominium unit to provide the Director with adequate time to perform a reinspection
of the premises and prepare the inspection report and certificate for delivery to the
prospective purchaser by the developer at or prior to closing as required by this section.
Said corrections shall be evidenced by a code inspection report and certificate of code
compliance, except as provided in this section, issued by the Director.
C. If substantial rehabilitation is being performed as part of a conversion to condominium,
the Director may issue a partial certificate of code compliance to permit the closing of
sales contracts for those condominium units in which rehabilitation is complete and all
code violations are corrected. Partial certificates also may be issued for common
elements and facilities on which rehabilitation is complete and all code violations are
corrected. However,prior to the issuance of a certificate of code compliance for the entire
property, a reinspection shall be made on all common elements and facilities and units for
which sales contracts have not been closed. Any recurrence of code violations in the
common elements and facilities covered by a partial certificate of code compliance shall
be corrected by the developer at the developer's expense unless control of the building
/► has passed to the Board of Managers.
D. Until such time as all units in a condominium property are sold, the Director shall
conduct annual code inspections of all common elements, all common facilities, and at
least ten percent(10%)(but never less than one unit) of the unsold condominium units.
E. Subsequent to the sale of all condominium units, the Director shall conduct an annual
inspection of all the common elements and facilities of a condominium property. The
condominium building shall be subject to all applicable City ordinances which may be
enforced as to the developer, unit owners, Board of Managers or any other person to
whom the ordinances are applicable.
F. A developer shall be required to provide a prospective purchaser with a copy of a code
inspection report and a certificate or partial certificate of code compliance prior to or at
the closing of a condominium unit sales contract.
16.46.060: CONVERSION NOTICE REQUIREMENTS:
A. Not less than one hundred twenty(120) days prior to recording the declaration submitting
a property to the provisions of the Illinois Condominium Property Act, as amended, a
developer shall give notice of said intent to record to all persons who are tenants of the
property on the date notice is given.
B. Any person who was a tenant upon the date of receiving a notice of intent to record a
declaration of condominium and whose tenancy expires other than for cause prior to one
8
hundred twenty (120) days thereafter shall have the right to extend his tenancy on the
same terms and conditions and for the same rental cost until the one hundred twenty
(120) day period expires.
C. No rental lease shall be executed between an owner or his agent and a prospective new
tenant in a property for which notice of intent to record a declaration of condominium has
been given to existing tenants unless the prospective new tenant initially is notified in
writing of the intended recordation. No lease shall be executed so as to stipulate an
expiration date prior to one hundred twenty (120) days from the date the lease becomes
effective.
16.46.070: CODE REQUIREMENTS:
A. The number of condominium units in any condominium project shall not exceed the
number of dwelling units established in the property's original residential use.
B. Subject to the provisions of this subsection, a condominium project shall conform with all
current and applicable site design requirements established in the City's zoning
ordinance. The Director shall review the proposed condominium project's compliance
with the site design requirements of the City's zoning ordinance. When a proposed
condominium project fails to comply with the zoning ordinance's site design
requirements regarding setbacks, accessory structures and buildings, obstructions in
yards, or landscaping, the Director shall require any such noncompliant site design
elk requirement to comply with the applicable zoning ordinance provisions to the greatest
degree practicable given the existing configuration of the proposed condominium project
within the zoning lot or lots.
C. Subject to the provisions of this subsection, a condominium project shall conform with all
current and applicable off-street parking provisions established in the City's zoning
ordinance. The Director shall review the proposed condominium project's compliance
with the off street parking requirements of the City's zoning ordinance. When a proposed
condominium project fails to provide the required number of off street parking spaces
required under the zoning ordinance, the Director shall require the creation of additional
off street parking spaces in accordance with the zoning ordinance. The creation of any
such additional off street parking spaces shall be required to the greatest degree
practicable given the existing configuration of the proposed condominium project within
the zoning lot or lots.
D. A condominium project shall conform with all applicable provisions established in the
City's property maintenance code.
E. Each condominium unit shall have a 100 ampere, main electrical panel and shall
otherwise comply with all current and applicable provisions of the City's electrical code.
F. A condominium project shall include the following fire safety requirements:
r
9
1. Each condominium unit shall have an accessible route of travel to the ground floor,
including the use of elevators, and shall be in compliance with the provisions of NFPA
Life Safety 101, as amended.
2. Each condominium unit shall conform with the current fire separation requirements for
dwelling units and common areas established in the City's fire prevention code.
3. A condominium project utilizing private water mains and hydrants shall be required to
have such water mains and hydrants hydrostatically tested and looped to the existing
public water main.
4. Any condominium project greater than three (3) stories in height shall comply with all
existing code requirements relating to the fire protection as set forth in Title 16 of this
code.
5. Each condominium project shall provide fire sprinkler protection in accordance with
the provisions of NFPA Life Safety 101, as amended.
16.46.080: VIOLATION; PENALTIES:
A. Any person violating any of the provisions or failing to comply with the mandatory
requirements of this chapter shall be guilty of an offense. Any person convicted of an
offense under this chapter, in addition to other legal and equitable remedies available to
the City, shall be punished by a fine of not less than one hundred dollars ($100.00) nor
more than five thousand dollars ($5000.00).
B. Any person shall he guilty of a separate offense for each and every day during any
portion of which any violation of any provision of this chapter is committed, continues or
permitted by any such person, and he or she shall be punished accordingly.
C. The levy and/or payment of any penalty or fine provided in this chapter shall not be
deemed a waiver of the power of the City to suspend, revoke or refuse to renew any
permit.
D. The rights, obligations and remedies set forth in this chapter shall be cumulative and in
addition to any others available in law or equity. The City or any prospective purchaser,
purchaser, or owner of a condominium unit may seek compliance with any provision of
this chapter and in addition shall have the right to rescind any sale not in substantial
conformance with this chapter or may seek damages therefore.
16.46.090: COMPLIANCE WITH ILLINOIS CONDOMINIUM ACT:
Except where modified or supplemented by this Article, all provisions contained in the Illinois
Condominium Property Act, as amended, shall apply to properties submitted to the provisions of
said Act."
10
Section 2. Severability. If any provision, clause, sentence, paragraph, section or part of
this ordinance or application thereof to any person or circumstance, shall for any reason be
adjudged by a court of competent jurisdiction to be unconstitutional or invalid, said judgment
shall not affect, impair or invalidate the remainder of this ordinance and its application to other
persons or circumstances,but shall be confined in its operation to the provision, clause, sentence,
paragraph, section or part thereof directly involved in the controversy in which such judgment
shall have been rendered and to the person or circumstances involved. It is hereby declared to the
legislative intent of the city council that this ordinance would have been adopted had such
unconstitutional or invalid provision, clause, sentence,paragraph, section or part thereof not been
included.
Section 3. That all ordinances or parts of ordinances in conflict with the provisions of this
ordinance be and are hereby repealed.
Section 4. That this ordinance shall be in full force and effect upon its passage and
publication in the manner provided by law.
Zge:Eallettrite-_
Ed Schock, Mayor
elk Presented: May 24, 2006
Passed: May 24, 2006
Vote: Yeas: 5 Nays: 1
Recorded: May 25, 2006
Published:
Attest:
A1-162a12„da_46_kg.. -
Dolonna Mecum, City Clerk
11