Two Unit Owner Occupied Bypass Application Process
The application to conversion process for a two unit fully owner occupied property in San Francisco commences with two separate owners each: (i) occupying a separate unit; (ii) having a minimum of twenty-five percent (25%) ownership interest on title; and (iii) owner occupying his/her respective unit for a minimum of twelve (12) months. In the event one owner takes occupancy later, for example by way of an owner move in eviction, the twelve-month occupancy period runs from the later date. While applications cannot be submitted until both owners have occupied for a minimum twelve-month period, there are certain actions owners can do in anticipation of the submittal date including applying in advance for the inspection for condominium conversion.
Submittal
When an application is submitted and accepted by the Department of Public Works it is then circulated to three different departments: the Rent Board, the Human Rights Commission, and the Planning Department. The Subdivision Code provides that the foregoing three departments are to review and approve or disapprove within thirty (30) days of circulation although this period can run two plus months dependent upon the workload of the departments. When all three departments have reviewed and approved the application it is at
Tentative Approval.
The applicant will receive a letter from the Department of Public Works advising of this status and what is required to move the application forward to Map Review.
Map Review
In order for the application to move to Map Review it is necessary that the work cited in the inspection for condominium conversion has been completed and the property has received a Certificate of Final Completion (CFC). When the CFC is submitted to the Department of Public Works and the surveyor for the project the application moves to Map Review.
During the Map Review phase, the surveyor interfaces with the Department of Public Works to finalize the map. This phase can take from several months, but it is dependent upon timing and workload and the surveyor should be consulted at this point for a more definitive timeline. Prior to the recordation of the map the applicant will have to (i) obtain an updated preliminary title report; and (ii) obtain a tax certificate which requires prepayment of property taxes. The amount of property taxes to be paid will be dependent upon the time of the year, however most applicants can expect at a minimum to prepay one installment and if the map will be recorded on or after January 1st of a calendar year, it is considered a new tax year and unbilled taxes will also be due in addition to unpaid installments.
CC&Rs and Refinance
Recordation of the map completes the process with the City, provided, however, until the CC&Rs are recorded the property is not subdivided into separate condominiums. Assuming both owners intend to
refinance the property after the map has recorded that is the appropriate time to commence submittal of loan applications although it is advisable to consult with the lender/loan broker in advance for a definitive timeline and clarification of documentation requirements.
FEES:
NOTE: following does not include compliance work cited in an inspection. DPW fees adjust each July 1st.
Application (as of 07/11/18): $250
Map Review (as of 07/11/18): $10,970
Surveyor: $10,000--$15,000 (dependent upon property)
3R: $160
Inspection: $2139
Attorney: $5000 (approximate)
Title: $900 (approximate)
