Have you looked at buying a condo in Santa Monica and wondered what it means when you see TORCA Conversion listed? TORCA = Tenant Ownership Rights Charter Amendment.Â So What does that mean?
In 1984 Santa Monica voters approved the Tenant Ownership Rights Charter Amendment through which an apartment building could be converted to condominiums ifÂ a sufficient number of tenants approved the conversion and agreed to purchase their units.Â The City of Santa Monica offered shared appreciation loans to qualifying tenants to help themÂ purchase their converted units.Â Â
Note:Â If the seller of the property you are looking at was an original purchaser of a TORCA propertyÂ and if they utilized the shared appreciation program, itÂ should be reflected in the Preliminary Title report and must be addressed by the listing agent and escrow officer.
Note:Â Protections were built in for tenants who did not wish to purchase their units, even today there are still many units with original TORCA Tenants (the listing will say Tenant Occupied by TORCA Tenant).Â These original tenantsÂ are protected by very strict rules under theÂ TROCA Charter.Â Â Once a tenant moves and the unit is bought and owner-occupied the TORCA Tenant rules cease to apply.
The City of Santa Monica has new and improved TORCA Shared Appreciation Loans for low and moderate income households, to assist them to buy condominiums in buildings which have been converted under TORCA.
To find out more go to:Â http://www01.smgov.net/ho ... TORCA.htm