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HomeMy WebLinkAbout12 - Code Update Recommendations Related to Fractional Homeownership (PA2022-0202) - Staff MemoMarch 14, 2023 Agenda Item No. 12 CITY OF NEWP06- COMMUNITY DEVELOPMENT DEPARTMENT 100 Civic Center Drive Newport Beach, California 92660 949 644-3200 newportbeachca.gov/communitydevelopment Memorandum To: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL From: Seimone Jurjis, Community Development Director Date: March 13, 2023 Re: Agenda Item 12- Supplemental Information — Fractional Homeownership Please see the attached draft revisions to Title 20 (Planning and Zoning) of the Newport Beach Municipal Code that would implement the Planning Commission's preferred recommendation to expand the definition of time share to clearly include fractional homeownership. Once defined as a time share, fractional homeownership would be limited to the time share regulations of Municipal Code Section 20.48.220 and would have the following effect: o Prohibited in all residential zoning districts; o Allowed through a Conditional Use Permit (CUP) in certain commercial and mixed -use zoning districts OA, OM, CG, CV, MU-V, MU-MM, MU- CV/15fh St, MU-W1, MU-W2) and subject to the following restrictions: ■ Conversion of existing dwelling units prohibited; ■ Minimum number of units: 100 units, unless part of a resort hotel complex of 300 or more units; ■ Development agreement required; and ■ Approval of a sales plan, operating plan, management plan, and contingency plan required. Attachments: Draft Title 20 — Time Share Regulations SECTION 20.70.020 DEFINITIONS OF SPECIALIZED TERMS AND PHRASES Visitor Accommodations (Land Use) "Accommodation" means any dwelling unit, apartment, condominium or cooperative unit, hotel or motel room. or other or structure constructed for residential use and occupancv. includine. but not limited to. a sinele-unit dwelline. two -unit dwelline. multi -unit dwelli "Time share plan" means any arrangement, plan, scheme, or similar device, whether by membership agreement, bylaws, shareholder agreement, partnership agreement, sale, lease, deed, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives the right to exclusive use of an accommodation(s), or any portion thereof, whether through the granting of ownership rights, possessory rights or otherwise, for a period of time less than a full year during any given year, on a recurring basis for more than one year, but not necessarily for consecutive years. A timeshare plan shall be deemed to exist whenever such recurring rights of exclusive use to the accommodation(s), or portion thereof, are created, regardless of whether such exclusive rights of use are a result of a grant of ownership rights, possessory rights, membership rights, rights pursuant to contract, or ownership of a fractional interest or share in the accommodation(s), or portion thereof, and regardless of whether they are coupled with ownership of a real property interest such as freehold interest or an estate for years in the property subject to the time share plan. "Tome Share P-State" rAP_aRS a Fight ef er=GUPaRGY iR a time share pmjeet that is coupled with aR estate the real ^ or+,, "Time share property" means one or more accommodations subject to the same time share plan, together with any other property or rights to property appurtenant to those accommodations. "Time share interval" means the period or length of time of occupancy in a time share unit. "Time share unit" means each portion of the real property or real property improvement in a time share pFe}eet-property that is divided into time share intervals. "Time share use" means one or more accommodations or any part thereof, as a time share property Dursuant to a time share plan - license er ce.pbractual ^ Y, bershk) r Rht of eccw) Rcy ; a time Share SECTION 20.48.220 TIME SHARE F^�'�" USE This section provides regulations for time share develepments uses. A. Development Standards. 1. Property Development Standards. A timeshare pfejeEt-use shall comply with the standards for the zoning district in which it is located. 2. Conversion of Existing Dwelling Units Prohibited. The conversion of existing residential dwelling units into time share units shall be prohibited. 3. Minimum Number of Units. Each time share pFejeGt-pL perty shall have a minimum of one hundred (100) time share units. Time share projects consisting of less than one hundred (100) units, but developed or converted in conjunction with a resort hotel complex of three hundred (300) or more units, shall be considered to be in compliance with this requirement. B. Required Amenities. Time share pfejects-uses shall be developed with substantial recreational amenities (e.g., golf courses, tennis courts, swimming pools, etc.). C. Permit and Review Requirements. 1. Plan Submittals. In addition to the application requirements in Section 20.52.020 (Conditional Use Permits and Minor Use Permits), an application for a time share project shall include the following documents: a. A sales plan shall address the times, areas and methods that will be used to sell the time share pFejeet-pL perty. Factors to be defined in the plan shall include the location, length, and marketing methods that will be used, distinguishing on -site and off -site marketing and signage; and an estimate of the potential numbers of individuals and automobiles expected during various stages of the sales effort. The plan also shall describe measures that will be implemented to reduce traffic during peak hours. b. An operating plan shall address the terms of the timeshare resort ownership interests, the types of private unit and common amenities, and the general financing, maintenance, and management arrangements of the resort that benefit the unit owners. c. A management plan shall describe the methods employed by the applicant to guarantee the future adequacy, stability, and continuity of a satisfactory level of management and maintenance of a time share prejeEt-property. . d. A contingency plan shall address the actions to be taken by the applicant if the time share project is an economic failure or fails to sell fifty (50) percent of the time share estates ^F uses intervals within two years of receiving a permit to occupy the first unit. 2. Development Agreement. The City and the time share project operator shall enter into a development agreement in compliance with Chapter 15.45 (Development Agreements). 3. Modification or Waiver. The review authority may modify or waive any of the standards contained in this section if strict compliance with the standards is determined to be unnecessary to achieve the purpose and intent of this section.