California State Law prohibits cities from requiring a property owner to Rent if he wants to Sell. That is often the heart of the issue when developers in cities like West Hollywood want to build Condo Units For Sale instead of Apartments to Rent.
In West Hollywood, the permit process for building Apartments
is much simpler than the procedure for a Condo permit.
So developers try to simplify their burden
by initiating a permit for an Apartment Project,
and then switching down-the-line to Condo status.
Unfortunately for those factions favoring Apartment Development,
State Law protects property owners from being required to Rent
when they choose to Sell.
You can read about a recent occurrence in West Hollywood at:
http://la.curbed.com/archives/2012/12/weho_officials_do_battle_over_apartmenttocondo_switcharoos.php