Note: Editor's Note: Measure H, codified in this chapter,
was passed by the voters on 4-10-90 and certified by the city council
on 4-17-90 (Resolution No. 17092).
The provisions of this chapter shall apply to all residential rental units located within the city which rented for less than four hundred fifty dollars per month as of September 1, 1979, except as provided in Section 4.08.030.
(Measure H, 1990)
In construing the provisions of Chapter 4.08, the following definitions shall apply:
means that portion of the Consumer Price Index published
by the United States Department of Labor for the Los Angeles-Anaheim-Riverside
Metropolitan Area, designated as urban consumers, all items, 1967
= 100, or if discontinued, such other index which, subject to adjustment,
is mostly nearly analogous to said index.
means any owner, lessor, operator or manager of apartments,
condominiums or mobile home parks. The term "landlord" shall also
include the owner, lessor or manager of any single-family residence
which is occupied by a renter.
means the consideration, including any bonus, benefit or
gratuity, demanded or received by a landlord for the use and occupancy
of a residential rental unit, including services, amenities and security
deposits.
means any mobile home space, apartment, condominium or single-family residence, except units in any hotel, motel, inn, tourist home or boardinghouse rented for periods of thirty days or less, occupied by any person other than the owner for payment of rent pursuant to an oral or written lease, or other form of rental agreement. The term "residential rental unit" shall not include any unit which is subject to the transient occupancy tax of the city or would be subject to the transient occupancy tax of Chapter 3.24 if the Palm Springs Municipal Code in effect on November 1, 1988 were applicable.
means any person entitled to occupy such apartment, mobile
home, condominium or other residential rental unit pursuant to an
oral or written lease with the owner thereof, or pursuant to some
other rental agreement with the owner, lessor, operator or manager
thereof.
(Measure H, 1990)
The following rental units shall be exempt from the provisions
hereof:
(1)
Units
used primarily for commercial purposes;
(2)
Units
in buildings, mobile home parks, or developments of four units or
less, while one unit is occupied by the owner;
(3)
Units
upon which construction began on or after April 1, 1979;
(4)
Spaces
in any recreational vehicle park;
(5)
Units
in nonprofit cooperatives, unless rented or leased to a tenant;
(6)
Units
in any hospital, medical care facility, asylum, or nonprofit home
for the aged;
(7)
Units
owned, managed, or operated by any government agency;
(8)
Units
whose rent is subsidized by any governmental agency, if federal or
state law or regulation specifically exempts such units from rent
regulation.
(Measure H, 1990)
(a)
From the effective date of the measure codified in this chapter, no landlord of any unit covered by this chapter shall request, demand or retain from any tenant or prospective tenant a rent increase in excess of three-fourths of the increase in cost of living as indicated by the Consumer Price Index, since September 1979. No landlord shall be entitled to more than one such rent increase in any 12 month period, for any unit. Rent increases pursuant to Section 4.02.040 shall be taken into account in determining the increases permitted pursuant to this section.
(b)
Computation
of rent increases allowable by this chapter shall be computed according
to the following formula:
(1)
The cumulative allowable percentage rent increase (I) expressed as
a decimal figure may be calculated as follows:
I = (A/B - 1) × .75
where A is the latest available consumer price index, and B
is the consumer price index for the base rent month (CPI for September,
1979 is 220.7)
(2)
Multiply the cumulative allowable percentage increase by the base rent as determined in Section 4.08.050. The resulting figure (allowable cumulative increase) added to the base rent is the maximum allowable rent.
(3)
Subtract the current rent from the maximum allowable rent. The resulting
figure is the maximum current increase in the rent.
(4)
At the landlord's option, the rent (base rent plus allowable cumulative
increase) may be rounded to the nearest dollar, provided such adjustment
is made for all rental units.
(Measure H, 1990)
The base rent, for the purposes of this chapter, and for the
computation of allowable rent increases, shall be the monthly rent
charged on September 1, 1979, except:
(1)
If
the unit was held as of September 1, 1979, under a lease which provided
for monthly rental payments of unequal amounts, the monthly rent charged
on September 1, 1979, shall be deemed to be the total rent due under
such lease divided by the number of months of said lease; and
(2)
If
the unit was vacant, or not yet completed, or otherwise exempt from
application of this chapter, as of September 1, 1979, the base rent
shall be the monthly rent charged when the unit first became occupied
as a rental unit or the exemption terminated after September 1, 1979,
and the base rent month shall be the month when such unit first became
occupied.
(Measure H, 1990)
Landlords may obtain individual rent adjustments pursuant to
the standards established in this section in order to permit rents
to be established at a level which will avoid a confiscatory taking
of the landlord's property, consistent with the Rent Control Ordinance
and the laws of California and the California and United States Constitutions.
(a)
Presumption
of Fair Base Year Net Operating Income (NOI).
Except as provided in Section 4.08.060(b), it shall be presumed that the net operating income produced by the property during the base year provided a fair return on property. Landlords shall be entitled to maintain and increase their net operating income in accordance with Section 4.08.060(c).
(b)
Adjustments
of Fair Base Year Net Operating Income.
If the commission determines that the base year NOI yielded
other than a fair return, it shall adjust the base year NOI in accordance
with this section. The commission shall not make such a determination
unless it has first made at least one of the following findings:
(1)
That the landlord's operating expenses in the base year were unusually high or low. In such instances, the operating expenses for each of the three years last preceding the base year shall be adjusted in accordance with Section 4.08.060 and the average of such adjusted expenses shall be substituted in calculating the base year NOI. Such average shall be presumed to reflect reasonable average annual expenses; such presumption may be rebutted by clear and convincing evidence.
In the event that the property was not continuously operated
as a rental unit for three years last preceding the base year, the
base year operating expenses shall be adjusted to reflect average
expenses over a period of time deemed reasonable by the commission.
In determining whether the landlord's operating expenses were
unusually high or low, the commission shall consider whether:
(i)
The landlord made substantial capital improvements during the base
year, which were not reflected in the rent levels on the base date.
(ii)
Substantial repairs were made due to uninsured damage caused
by fire, natural disaster or vandalism.
(iii)
Maintenance and repair were below accepted standards so as to
cause significant deterioration in the quality of housing services.
(iv)
Other expenses were unreasonably high or low notwithstanding
the following of prudent business practice. In making this determination,
the fact that property taxes prior to 1978 may have been higher shall
not be considered.
(2)
That the rent was disproportionate due to one of the enumerated factors
below. In such instances, adjustments shall be made in calculating
Gross Rents consistent with the purposes of these standards:
(i)
The rent on the base date was established by a lease or other formal
rental agreement which provided for a substantially higher rent at
other periods during the term of the lease;
(ii)
The rent on the base date was substantially higher or lower
than at other times of the year by reason of seasonal demand or seasonal
variations in rent;
(iii)
The rent on the base date was substantially higher or lower
than preceding months by reason of premiums being charged or rebates
given for reasons unique to particular units or limited to the period
determining the base rent.
(iv)
The rent on the base date was exceptionally high or low due
to the fact that the rent was not established in an arms-length transaction.
(3)
The net operating income was less than fifty percent of gross income
in the base year, after making adjustments as permitted by subdivisions
(1) and (2) of this subsection (a). In such a case, for purposes of
determining base year net operating income, gross income shall be
adjusted upward to twice the amount of adjust base year operating
expenses.
(c)
Allowable Rent Increases. Upon filing of an individual hardship petition by a landlord, the commission shall permit rent increases, unless otherwise prescribed by law, such that the landlord's net operating income for the year of application as defined in Section 4.08.060(d) will be increased by fifty percent of the increase in the Consumer Price Index over the base year. The increase in the CPI shall be calculated by dividing the most recently reported monthly figure at the time of the close of the hearing by the monthly figure for September of the base year.
In making any adjustment pursuant to this section, the rent review commission shall consider the effects of rent adjustments pursuant to Section 4.08.040.
(d)
Definitions.
For purposes of hardship rent adjustment proceedings, the following
definitions shall apply:
(1)
Net Operating Income (NOI) equals gross income less allowable operating
expenses.
(2)
Gross Income equals:
(i)
Gross Rents, computed as gross rental income at one hundred percent
paid occupancy, plus
(ii)
Interest from rental deposits, unless directly paid by the landlord
to the tenants (interest shall be imputed at the rate of five and
one-half percent of all deposits unless such deposits actually earn
greater interest), plus
(iii)
Income from laundry facilities, vending machines, amusement
devices, cleaning fees or services, garage and parking fees, plus
(iv)
All other income or consideration received or receivable for
or in connection with the use or occupancy of rental units and housing
services,
(v)
Minus uncollected rents due to vacancy and bad debts to the extent
the same are beyond the landlord's control. Uncollected rents in excess
of three percent of gross rents shall be presumed to be unreasonable
unless established otherwise by the landlord by clear and convincing
evidence. Where uncollected rents must be estimated, the average of
the preceding three years' experience shall be used, or, in the discretion
of the commission, some other comparable method.
(3)
Operating expenses shall include the following:
(i)
Real property taxes,
(ii)
Utility costs, not paid by the tenants,
(iii)
A management fee which includes the costs of both onsite and
offsite management (contracted or owner performed) and is five percent
or less of gross income is presumed to be reasonable. A management
fee in excess of five percent of gross income is presumed to be unreasonable.
Such presumption may be rebutted by clear and convincing evidence.
(iv)
Other reasonable management expenses including but not limited
to necessary and reasonable advertising, accounting fees, and insurance.
(v)
Owner-performed labor, at hourly rates established by commission
regulations.
(vi)
License and registration fees required by law to the extent
same are not otherwise paid by tenants.
(vii)
Any other operating expense which
is ordinary, necessary and reasonable, and which recurs on an annual
basis, irrespective of the amount, should be expensed in the year
in which it occurs. Any operating expense in excess of five hundred
dollars which does not recur on an annual basis must be capitalized,
provided, however, that:
(1)
Expenditures to upgrade facilities or increase amenities shall
be allowable expenses in cases involving mobilehome parks only if
the park owner has consulted with the park residents regarding the
nature and purpose of the improvements and the estimated cost of the
improvements, prior to initiating construction of the improvements
and has obtained the prior written consent to include the cost of
the improvement as an operating expense of at least one adult resident
from a majority of the mobile home rental spaces. The commission shall
not consider evidence of such consent which is not presented in writing
at the time of filing the application which seeks to include such
capital improvement expenditures as operating expenses.
Allowable annual expense calculations under this subsection shall be computed in accordance with the amortization schedule set forth in Section 4.08.190 or if not itemized therein, in accordance with the actual useful life of the maintenance or capital improvement.
(viii)
Reasonable attorneys fees and costs incurred as normal and reasonable
costs of doing business, including but not limited to good faith attempts
to recover rents owing and good faith unlawful detainer actions not
in derogation of applicable law, to the extent that the same are not
recovered from tenants.
(ix)
Where the landlord holds the property
pursuant to a ground lease, master lease or similar arrangement, the
portion of the rental paid pursuant to such ground lease which exceeds
the rental paid pursuant to such ground lease during the accounting
year which includes September 1, 1979, where:
(4)
Operating expenses shall not include:
(i)
Avoidable and unreasonable or unnecessary expenses:
(ii)
Mortgage principal and interest payments;
(iii)
Lease purchase payments and rent or ease payments to landlord's
lessor except as provided in Section 4.02.060(d)(3)(xi);
(iv)
Any penalties, fees or interest assessed or awarded for violations
of this or any other law;
(v)
Attorneys fees and other costs incurred for proceedings before the
commission or in connection with civil actions or proceedings against
the commission;
(vi)
Depreciation of the real and personal property;
(vii)
Any expense for which the landlord has been reimbursed by any
security deposit, insurance settlement, judgment for damages, settlement,
or any other method.
(5)
Base year for purpose of the section shall mean the calendar year
1979. In the event that the landlord has previously applied for a
rent increase under this section or under any other rent regulation
in effect since 1980, then the base year shall be the base year that
was adopted by the commission in that prior proceeding.
(6)
"Year of application" for purposes of this section shall mean the petitioner's/applicant's normal fiscal year immediately preceding the commencement of the hardship application period as defined in Section 4.08.060(g) within which the petition/application for a hardship rent increase is filed, unless another period is found by the rent review commission or any designated hearing officer to be more appropriate.
(e)
Determination
of Base Year Net Operating Income.
Base year net operating income shall be determined by deducting
from gross income for the base year the actual or adjusted operating
expenses for the base year, except that in the event that the landlord
did not own the subject property at the beginning of the base year,
the operating expenses for 1979 shall be determined in accordance
with one of the following:
(1)
A previous owner's actual operating expenses in 1979 as defined in Section 4.08.060(d)(5); or
(2)
Where petitioner has established to the satisfaction of the commission that records of 1979 expenses are unavailable, actual operating expenses for the first calendar year of ownership, adjusted to 1979, in accordance with Section 4.08.060(f).
(f)
Schedule
of Increases in Operating Expenses.
Where calculations which are necessary to effectuate this section
require estimations of income or expenses, it shall be presumed that
operating expenses have increased at the same rate as the CPI and
that rents have increased at three-fourths of the rate of increase
in the Consumer Price Index. It shall be presumed that management
expenses were the same percentage of gross rents in the base year
and the current year. Actual base year expenses shall be used for
property taxes and other expenses which are public record or are otherwise
available to the landlord.
(g)
Hardship
Application Period.
Applications under this section may only be filed in September,
October, November, December, or January, unless the landlord demonstrates
exceptional circumstances beyond his or her control that justify a
waiver of this rule.
(h)
Frequency
of Petitions.
Only one petition may be filed during any continuous 12 month
period for a property.
(i)
Vacancy
Decontrol.
Except as otherwise provided in Section 4.08.060(j), and notwithstanding any other provision of this Chapter 4.08 to the contrary, in the event any tenancy in any residential rental unit, excluding any tenancy in any mobile home space as defined in Civil Code § 798.12, is terminated as the result of consensual action of a landlord and tenant, or as the result of a lawful involuntary eviction or termination by a landlord, the maximum allowable rent for any such residential rental unit, excluding any mobile home space, may be adjusted without regard to the provisions of this Chapter 4.08, and such residential rental unit shall no longer be subject to the provisions of this Chapter 4.08.
(j)
Prohibited
Landlord Conduct.
The foregoing Section 4.08.060(i) shall not apply, and there shall be no decontrol of rents upon the termination of any tenancy in any residential rental unit, excluding any tenancy in any mobile home space as defined in Civil Code § 798.12, in any of the following circumstances:
(1)
The termination of any tenancy with respect to any residential rental
unit, excluding a tenancy in any mobile home space as defined in Civil
Code § 798.12, as the result of the termination of any rental
assistance paid to any tenant pursuant to any federal or state program
of rental assistance;
(2)
The termination of any tenancy with respect to any residential rental
unit, excluding a tenancy in any mobile home space as defined in Civil
Code § 798.12, by a landlord on any ground other than (i) a default
in the payment of rent on the part of the tenant, (ii) a breach of
any provision of any lease or rental agreement by the tenant, (iii)
a nuisance committed by or permitted to exist by any tenant, (iv)
where a residential rental unit is utilized by or permitted to be
utilized by the tenant for any illegal purpose including, but not
limited to, the purchase and sale of controlled substances, or acts
of prostitution, or (v) where the landlord in good faith seeks to
recover possession of the residential rental unit to be occupied by
the landlord, or the children, parents, siblings, grandparents, father-in-law,
mother-in-law, son-in-law, or daughter-in-law of such landlord for
residential purposes.
(3)
The termination of any tenancy with respect to any residential rental
unit, excluding a tenancy in any mobile home space as defined in Civil
Code § 798.12, where the landlord has engaged in a course of
conduct resulting in an unreasonable interference with the tenant's
comfort, safety, or enjoyment of such residential rental unit.
(Measure H, 1990; Ord. 1390 § 1, 1991; Ord. 1395 §§
1, 2, 1991; Ord. 1397 §§
1, 2, 1991; measure KK § 1 (a), (b), 1994)
(a)
Creation.
There is hereby created within the city a rent review commission,
consisting of five members, to be appointed by the city council. A
commissioner can only be removed by a vote of the majority of the
membership of the city council.
(b)
Qualifications.
Persons selected to serve on the rent review commission shall
be residents of the city, able and willing to render fair and impartial
decisions in matters pertaining to the administration of this chapter.
No person shall be eligible to serve on the rent review commission
who is a landlord or a tenant of a rental unit or units subject to
the provisions of this chapter.
(c)
Term—Vacancies—Vote.
Members of the commission shall serve for the term provided by Chapter 2.06 of this code, except that commissioners appointed pursuant to former Section 4.04.030 shall be deemed to have been reappointed pursuant to this section and shall serve the remainder of their terms as if Section 4.04.030 had not been superseded. A vacancy in the commission shall not impair the right of the remaining members to exercise the powers of the commission pursuant to this chapter.
(d)
Disclosures.
All candidates for appointment to the rent review commission
shall disclose in a verified statement all present holdings and interests
in real property, including interests in corporations, trusts or other
entities owning any interest in real property within this jurisdiction.
(e)
Compensation.
Members of the commission shall receive no compensation for
their services on the commission as such, but shall be entitled to
receive thirty dollars per member per hearing session with a maximum
of sixty dollars per day for the conduct of hearings on petitions
for rent adjustments.
(f)
Powers
and Duties of the Commission.
Within the limitations provided by law, the rent review commission
shall have the following powers and duties:
(1)
To meet at such times as may be regularly scheduled by the commission,
or from time to time at the call of the chairman to hear and determine
petitions filed hereunder, at the request of the city manager, or
otherwise to conduct business of the commission, and to utilize city
offices or facilities as needed as available.
(2)
To receive, hear and determine petitions or other requests of tenants, landlords, or other interested persons for interpretations of this Chapter 4.08, or for a review of a landlord's actions, proposed actions, or alleged violations of Section 4.08.060(i) and/or (j) of this Chapter 4.08. In hearing such petitions or requests of tenants, landlords, or other interested persons, except as authorized by subdivisions 4 of this subsection (f), the commission shall have no authority to fix or award civil penalties, damages, or the attorney's fees of any tenants, landlords, or other interested persons, but shall have the authority to assess against a landlord appearing in such proceedings the actual costs, in whole or in part, including the attorneys' fees incurred by the commission in the conduct of such proceedings in those cases where the commission shall find and determine the landlord has violated any of the provisions of this Chapter 4.08. The findings and determinations or decisions of the commission shall be available in written form for use in any judicial proceeding which may be brought pursuant to Chapter 4.08.
(3)
To receive, investigate, hear and determine petitions of landlords for hardship adjustment of rent pursuant to Section 4.08.060. Any hardship rent increase granted shall be limited to that period of time necessary to alleviate any demonstrated hardship. It shall be the obligation of the landlord, in any petition brought pursuant to Section 4.08.060, to establish, by a preponderance of the evidence, that a hardship increase should be granted for a period of time greater than three hundred sixty-five calendar days from and after the effective date of the determination of the commission, pursuant to Sections 4.08.080(e), (f)(2) and 4.08.110(a). Adjustments or increases may take the form of a redetermination of base rent, a surcharge for utility or other services, or such other adjustment or increase as the commission shall find to be either necessary or appropriate. No hardship increase shall be granted without the affirmative vote of at least three commissioners.
(4)
To make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary to carry out its duties, and to delegate its power to hear individual rent adjustment petitions to such hearing examiners as may be appointed by the commission. All decisions of the commission shall be prospective, not retrospective, in operation and application. The commission shall have no power or authority to authorize any landlord to impose retroactively any increase in rent. If the commission shall find that a landlord has accepted, received or retained any rent payment in excess of the amounts permitted in Chapter 4.08, the commission may order such overpayments be offset against future rent.
(5)
To render an annual written report concerning its activities, rulings,
actions, results of hearings, and other matters pertinent to the operation
of this chapter.
(6)
To adopt, promulgate, amend and rescind administrative rules.
(7)
To maintain at City Hall, records of commission decisions and files
and dockets listing the time, date and place of hearings, the parties
involved, the addresses of said parties and final disposition of each
such petition.
(8)
To set such fees and charges as appear necessary or desirable to
defray in whole or in part the cost of administration of the commission
and the conduct of its assigned duties.
(Measure H, 1990; Ord. 1392 § 1, 1991; measure KK § 1(c), 1994)
(a)
Each
party to a hearing may have assistance in presenting evidence or in
setting forth by argument his position, from an attorney or such other
person as may be designated by said party.
(b)
In a hardship case pursuant to Section 4.08.060, petitioner shall submit all nontestimonial evidence supporting the petition to the commission and make it available to the opposing party at least fifteen days prior to the hearing. Failure to comply with this requirement shall render the evidence inadmissible. Said evidence shall clearly set forth the income and expenses for the subject property for both the base year and the year of application.
(c)
Formal
rules of evidence shall not apply in commission proceedings; however,
all oral testimony offered as evidence shall be under oath.
(d)
In
the event that any party fails to appear at the time and place set
for hearing of a petition, the commission may hear and review such
evidence as may be presented, and may make such findings and decisions
as shall be supported by the evidence presented.
(e)
The
commission, or designated hearing officer, shall make findings based
on the evidence as to each fact relevant to the commission's decision
on the petition. The decision of the commission shall be based upon
the findings, and shall:
(2)
Determine whether the action or proposed action of the landlord is valid, permitted, and in conformity with Chapter 4.08; and/or
(3)
Determine whether a hardship exists, and if so, the nature and amount
of relief to be granted or authorized to the landlord.
(4)
The findings and decisions of the commission shall be final administrative
action. There shall be no right of appeal to the city council. Such
findings and decisions shall be public records, and may be certified
by the secretary of the commission, if any, or by the city clerk.
(f)
Priorities—Timeliness
of proceedings.
(1)
The rent review commission shall establish categories of petitions
or requests, and may set priorities for those categories deemed most
urgent. In view of the protections provided for tenants elsewhere
in this title, the highest priority for the proceedings of the commission
shall be given to petitions based upon hardship alleged to be created
by cost increases incurred by landlords in the course of providing
necessary services to their units.
(2)
The commission shall so arrange its affairs so that each petition
filed by a landlord seeking a hardship rent increase shall commence
hearing not later than forty-five days following the filing of such
petition and shall be determined not later than thirty days following
the close of evidence. The commission may appoint one or more hearing
officers to hear such cases, make findings thereon, and recommend
disposition thereof to the commission. In any case in which a verified
petition penalty has been filed by a landlord stating facts which
prima facie constitute a hardship, if such petition is not heard and
determined within the time limits of this section, exclusive of any
delays requested, consented to or caused by the landlord or his representative,
no fees, charges or costs shall be charged or assessed against said
landlord for any of the hearing costs of said commission.
(Measure H, 1990)
The proceedings of the rent review commission are mandatory
and exclusive. There shall be no appeal, as such, from a final determination
of the commission. A party not satisfied with a decision of the commission
may seek any judicial remedy provided by law.
(Measure H, 1990)
(a)
No
landlord shall reduce or eliminate any service to any rental unit
so long as this chapter is in effect, unless and until a rent reduction
is granted equal to the value of the service.
(b)
Utilities.
If a landlord who provides services to a rental unit in the
nature of utility services shall reduce or eliminate such service
by separate metering or other means of transferring from the landlord
to the tenant the obligation for the payment for such services, the
cost savings, if any, resulting from such reduction or elimination
shall be passed on to the tenant in the form a rent decrease. Said
decrease shall be equal to the average cost of said service to the
landlord during the twelve months immediately preceding the transfer.
For the purposes of this section, in determining cost savings to be passed on to the tenant in the form of decreased rent, the cost on installation of separate utility meters, or similar or analogous costs to the landlord to shift the obligation for payment of utility costs to the tenant, shall not be considered either under this section or Section 4.04.060 of this chapter.
(c)
Any
landlord who violates this section shall be liable to the tenant in
a civil action for all of the following:
(1)
Actual damages of the tenant;
(2)
An amount not to exceed one hundred dollars per day for properties
with twenty-five units or fewer rental units and not to exceed five
hundred dollars per day for properties with more than twenty-five
units, for each day the landlord remains in violation of this section.
In determining the amount of such award, the court shall consider
proof of such matters as justice may require and shall consider the
overall circumstances, including but not limited to the landlord's
past history of violations, wilfulness, good faith or lack thereof,
the number of units affected, and the extent to which the habitability
of the units was affected.
(Measure H, 1990)
(a)
A
notice of rent increase allowable by this chapter may be served at
any time. Any such increase shall become effective not less than sixty
days after service of notice by the landlord on the tenant. All notices
of rent increase shall be served in the manner prescribed by law.
(b)
On or before September 1, 1989, landlords shall register each rental unit subject to the provisions of this chapter with the rent review commission. Any units previously registered pursuant to former Palm Springs Municipal Code Section 4.02.080 shall be deemed to be registered pursuant to this section.
(c)
No
landlord shall increase rent for any rental unit subject to the provisions
of this chapter without first:
(1)
Having registered said unit at least thirty days earlier with rent
review commission; and
(2)
Notifying the tenant or prospective tenant in writing of the base
rent of said unit, the present rent of said unit, the date of the
last previous rent increase, and the current allowable percentage
of increase over the base rent, and
(3)
Paying to the rent review commission the initial registration fee
as provided in subsection (d) of this section and such periodic registration
renewal fees as the city council may establish from time to time by
resolution.
(d)
On
or before September 1, 1989 and on or before September 1st of each
year thereafter, the landlord shall pay a registration fee of twelve
dollars per rental unit.
(e)
A
copy of said registration shall be posted in a prominent location
in the property and each tenant shall be notified in writing annually
and at the beginning of a new tenancy of the location of the posting.
(f)
The
commission is hereby empowered to require such reregistration as it
deems necessary.
(g)
No
landlord shall be eligible to any hardship adjustment as provided
for under the provisions of this chapter for any unit which is not
registered or for which the registration fee has not been paid.
(h)
Annual
Registration/Renewal Pass-Through to Tenants.
|
Notwithstanding the above provisions concerning maximum rental
increases, a landlord may assess a fee on any controlled unit for
which the annual registration/ renewal fee has been paid in accordance
with the provisions of this regulation, in the amount of one-twelfth
of fifty percent of the registration/renewal fee per month; provided,
that all past registration/renewal fees have been paid prior to the
pass-through notice being given by landlord to tenant, as outlined
below. The pass-through provided in this subsection may be implemented
sixty days following written notice given by landlord to tenant, which
notice shall provide specific reference to this subsection. Such registration
fee passthrough shall not, in any twelve month period, cumulatively
exceed fifty percent of the amount of the registration/renewal fees
paid by landlord for the year at issue. The registration/renewal fee
pass-through shall not be considered part of the rent in calculating
any rent increase to which a landlord is entitled pursuant to this
chapter and shall not be included in the amount listed as rent on
the annual registration form. Any pass-through as permitted by this
section shall be initiated within twelve months from the date the
registration/renewal fee is paid by the landlord, but not for periods
preceding September 1, 1993.
|
(Measure H, 1990; Ord. 1389 § 1, 1991; Ord. 1453 §
1, 1993)
(a)
If the landlord demands, accepts, receives, or retains any rent payment in excess of the amounts permitted by this Chapter 4.08, the tenant may recover said sum from the landlord as actual damages, together with a civil penalty of up to five hundred dollars per violation, together with reasonable attorneys' fees all as determined by a court of competent jurisdiction.
(b)
The failure on the part of any landlord to comply with the provisions of Section 4.08.060(i) or the actions of any landlord in violation of Section 4.08.060(j) of this Chapter 4.08 shall be a defense in any action or legal proceeding to recover possession of a residential rental unit otherwise subject to the provisions of this Chapter 4.08.
(c)
In any action or other legal proceeding to recover possession of a residential rental unit otherwise subject to the provisions of this Chapter 4.08, a landlord shall allege substantial compliance with the provisions of Section 4.08.060(i) and shall further allege that the landlord has not violated any of the provisions specified in Section 4.08.060(j). Failure of the landlord to comply with this subsection (c) shall be an additional defense to any action or other legal proceeding for possession of a residential rental unit otherwise subject to the provisions of this Chapter 4.08.
(Measure H, 1990; measure KK §
1(d), 1994)
Any person who violates any provision of this chapter is guilty
of a misdemeanor.
(Ord. 1409 § 3, 1992)
(a)
Any
mobile home owner who is a mobile home park tenant shall be entitled
to relocation benefits in the event that said tenant is evicted by
virtue of an owner undertaking a change of use. "Change of use" means
a use of a mobile home park for a purpose other than the rental, or
holding out for rent, of two or more mobile home sites to accommodate
mobile homes for human habitation. "Change of use" includes but is
not limited to, a change of the park or any portion thereof to a condominium,
stock cooperative, or any form of ownership wherein spaces within
the park are to be sold, and the cessation of use of all or a portion
of the park, whether immediately or on a gradual basis, or the closure
of the park.
(b)
Any
eviction pursuant to a plan to terminate a mobile home space rental
shall require:
(1)
Eighteen months' notice of the change of use and notice to all new
potential residents that prior notice has been given;
(2)
Payment by the landlord of the following relocation benefits: mobile
home owners who move their mobile homes shall receive six thousand
dollars in relocation benefits for spaces occupied by single-wide
mobile homes, twelve thousand in relocation benefits for spaces occupied
by doublewide mobile homes, and fifteen thousand in relocation benefits
for spaces occupied by triple-wide mobile homes. Said sums shall be
adjusted by the percentage increase in the Consumer Price Index since
January, 1989. Mobile home owners who do not move their mobile home
shall be entitled to the "in-place" value of their mobile homes.
"In-place value" is defined as the value of such mobile home
if it were located in a comparable mobile home park. The landlord
and the tenant shall each select one appraiser who is qualified to
appraise the value of mobile homes, who shall prepare and submit an
appraisal of the value of the mobile home. Each party shall bear the
cost and expense of the appraiser he or she selects. The parties shall
exchange appraisals. If the difference between the two appraisals
is equal to or less than fifteen percent of the average of the two
appraisals, the value of the mobile home shall be established as the
average of the two appraisals. If the higher appraisal exceeds the
lower appraisal by more than fifteen percent, the parties shall select
a third appraiser. If the parties are unable to agree on a third appraiser,
then said appraiser shall be selected by the presiding judge of the
superior court and the value shall be determined by that third appraiser,
subject to the condition that it shall not be higher than the value
set by the landlord's appraiser nor lower than the value set by the
tenant's appraiser.
Nothing herein shall preclude the parties from entering into
a good faith agreement as to the value of the mobile home. For the
purposes of this section a comparable park shall mean a park substantially
equal in terms of park amenities, rent, and desirability of location.
A park shall not be considered comparable if it is not within ten
miles of the subject park.
(3)
The plan shall adequately ensure that the timing of the payment of
relocation benefits do not cause hardship or obstacles to the orderly
relocation of a tenant. Said plan shall be deemed adequate and valid
only after approval by the rent commission. Any notice of termination
of tenancy which is made pursuant to a planned change in use shall
be valid only if it includes a copy of a valid plan.
(Measure H, 1990)
(a)
The
purchaser of an existing mobile home, as defined in Civil Code Section
798.3, located in an existing mobile home park, as defined in Civil
Code Section 798.4, whose purchase has been approved, pursuant to
Civil Code Section 798.74, shall have the same rights as the seller
of the mobile home to a rental agreement, as defined in Civil Code
Section 798.8, pursuant to the terms and conditions of Civil Code
Section 798.17 and/or Section 798.18. Management, as defined in Civil
Code Section 798.2, may not therefore require, directly or indirectly,
that any resident or prospective resident sign a lease or rental agreement
that provides that it shall be exempt from local rent control or provides
for space rent in excess of that permitted by local rent control as
a condition of tenancy in the park and no owner may deny a tenancy
to a prospective purchaser of a mobile home in the park on the grounds
that the prospective purchaser will not sign such a lease or rental
agreement.
(b)
A
notice which conforms to the following language and printed in bold
letter of the same type size as the largest type size used in the
rental agreement shall be presented to any resident or prospective
resident by management at the time of presentation of a rental agreement
creating a tenancy with a term greater than twelve months:
"Important notice to Homeowner regarding the proposed rental
agreement for __________ mobilehome park. Please take notice that
this rental agreement creates a tenancy with a term in excess of 12
months. By signing this rental agreement, you are exempting this mobilehome
space from the provisions of the city of Palm Springs' rent control
law for the term of this rental agreement. The city of Palm Springs
and the state mobilehome residency law (California Civil Code §§
798, et seq.) give you certain rights. Before signing this rental
agreement you may choose to see a lawyer. Under the provisions of
state law, you have a right to be offered a rental agreement for (1)
a term of 12 months, or (2) a lesser period as you may request, or
(3) a longer period as you and the mobilehome park management agree.
You have the right to review this agreement for 30 days before accepting
or rejecting it. If you sign the agreement you may cancel the agreement
by notifying the park management in writing of the cancellation within
72 hours of your execution of the agreement. It is unlawful for a
mobilehome park owner or any agent or representative of the owner
to discriminate against you because of the exercise of any rights
you may have under the city of Palm Springs' rent control law, or
because of your choice to enter into a rental agreement which is subject
to the provisions of that law."
The notice shall contain a place for the tenant to acknowledge
receipt of the notice and shall also contain an acknowledgement signed
by park management that the notice has been given to the tenant according
to this section. A copy of the notice executed by park management
shall be provided to the tenant.
(c)
Absent
an agreement to the contrary pursuant to Civil Code Section 798.17,
the maximum rental fee that may initially be charged to the purchaser
of an existing mobile home, in an existing mobile home park, is a
rental fee which does not exceed the rental fee in force and effect
on the date the title to the mobile home transfers from the seller
to the purchaser.
(Ord. 1396 § 2, 1991)
(a)
Scope
and Intent.
This section requires any subdivider to obtain a certificate, as defined hereinafter, from the rent review commission prior to adjusting the rent payable for any residential rental unit(s) in excess of the amount of such rent allowed by Chapters 4.02, 4.04, and/or 4.08. Except for a subdivider(s) who has/have obtained the certificate required herein, this section bars any rent adjustment following the commencement of sales or offers for sale of any residential rental unit(s) within any rental mobile home park that is the subject of a map, pursuant to Government Code § 66427.5, or other subdivision map or application for conversion to resident ownership. This section is intended to protect non-purchasing residents of residential rental unit(s) within a rental mobile home park from any rent adjustment not authorized by Chapters 4.02, 4.04, and/or 4.08 and to protect from a sham, fraudulent, failed, or other non-bona ride conversions to resident ownership as prohibited by El Dorado Palm Springs, Ltd. vs. City of Palm Springs (2002) 96 Cal. App. 4th 1153.
(b)
Maps
or Applications for Conversion of One or More Residential Rental Units
Within a Rental Mobile Home Park to Resident Ownership.
In addition to any other requirement of state or local law, any subdivider seeking to adjust rents on any residential rental unit(s) in connection with the conversion of a rental mobile home park to resident ownership, pursuant to Government Code § 66427.5 or through any other subdivision map or application, which is otherwise subject to regulation under Chapters 4.02, 4.04, and/or 4.08 of this code, shall first obtain from the rent review commission, prior to adjusting the rent amount for any residential rental unit(s) therein, a certificate of bona fide conversion finding and determining that the conversion to resident ownership is bona fide within the meaning of law, and not undertaken as a sham, fraudulent, or failed conversion to remove any residential rental unit(s) proposed to be converted to resident ownership from the protections of the city of Palm Springs municipal rent control.
(c)
Content
of Application for Certificate of Bona Fide Conversion to Resident
Ownership.
The certificate required herein shall be sought pursuant to a written application filed with the rent review commission under Section 4.08.070(f)(2), which application shall include the following information: (i) a copy of a resident support survey, conducted either in the manner prescribed by Government Code § 66427.5(d)(1), or in some other manner acceptable to both the subdivider and a resident homeowners' association, demonstrating the numerical support or opposition of each occupied residential rental unit to conversion to resident ownership; and (ii) a written appraisal, conducted in accordance with nationally recognized professional appraisal standards, demonstrating the residential rental units to be offered for sale are to be sold for their fair market value; and (iii) a written appraisal, conducted in accordance with nationally recognized professional appraisal standards, establishing monthly rental rates for nonpurchasing residents following the date of conversion and consistent with the requirements of Government Code § 66427.5(f); and (iv) a representation, made in writing and under oath, from the subdivider certifying that the map or other application for conversion is intended to facilitate a bona fide conversion of a rental mobile home park to resident ownership, together with a description of such marketing plans or incentives, if any, or other actions proposed to be undertaken by such subdivider to assure a bona fide conversion of a rental mobile home park to resident ownership.
(d)
Conduct
of Commission Proceedings.
Consideration of an application for certificate of bona fide conversion to resident ownership shall be conducted in the manner and within the time prescribed by Section 4.08.080 for hardship rent increase proceedings. Notice of an application shall be given according to the procedures and practices of the commission then in effect for hardship rent increases, including the giving of notice of the filing of the application, date of pre-hearing conference, if any, and date, time and place of the hearing on the application; which notice shall be delivered to or posted on each residential rental unit within the rental mobile home park which is the subject of an application for conversion from a landlord-tenant form of ownership to resident ownership. Any prospective purchaser(s) of a residential rental unit(s), or current resident, or resident homeowners' association, or city staff shall be entitled to submit information or an appraisal which sets forth what is considered to be the fair market sales and/or rental value of the residential rental units that are the subject of an application.
(e)
Grounds
for Issuance of Certificate of Bona Fide Conversion.
The rent review commission shall issue to any subdivider a certificate
of bona fide conversion upon finding, by a preponderance of the evidence,
of each of the following: (i) that not fewer than 50% plus one of
any occupied residential rental unit(s) to be offered for sale pursuant
to a map or application for conversion of a rental mobile home park
to resident ownership support such conversion to resident ownership;
and (ii) that the occupied residential rental units to be offered
for sale and/or rent will be sold and/or rented for an amount not
more than the fair market value of such residential units; and (iii)
that any subdivider has not filed the subdivision map or other application
for conversion of a rental mobile home park to resident ownership
for the sole purpose of removing any occupied resident rental unit(s)
therein from the protections of this chapter. In the event such subdivider,
or a resident, or resident homeowners' association, or city staff
submit(s) a qualified appraisal(s) or other probative information
which determine(s) a fair market sales or rental value of the occupied
residential rental units which, on average, differ by 20% or greater
in fair market sale and/or rental value, the rent review commission
may, as a condition to issuing a certificate of bona fide conversion,
request the parties agree that each party or each party's appraiser
select and jointly provide instructions to a third-party independent
appraiser, and agree to jointly share in the payment for an independent
third appraisal, which third appraisal shall be deemed by the commission
to constitute the fair market sales and rental values of the occupied
residential rental units to be offered for sale. Provided the subdivider
agrees, in writing, to offer each occupied residential rental unit
for sale and/or rent at the appraised fair market value determined
by such third-party appraiser, such agreement shall, standing alone,
entitle such subdivider to the issuance of a certificate of bona fide
conversion without any further showing required hereinabove.
(f)
Effect
of Failure to Obtain Certificate of Bona Fide Conversion.
With respect to any conversion of a rental mobile home park to resident ownership for which any subdivider shall have failed to obtain a certificate of bona fide conversion, as to any non-purchasing resident, the amount of rent to be paid for such residential rental unit(s) so occupied shall be only that rent authorized under Chapters 4.02, 4.04, and/or 4.08, as applicable, of this code.
(g)
Violation
Not a Misdemeanor.
Any violation of this Section 4.08.136 shall not be deemed a misdemeanor, but may result in administrative action by the rent review commission, pursuant to Section 4.08.070(f)(2), or the civil remedies, pursuant to Section 4.080.120, or as otherwise provided by law.
(Ord. 1631 § 1, 2003)
This chapter shall not be construed to prohibit or preempt the
Palm Springs city council from enacting legislation supplementing
this chapter, whether by enforcement, interpretation, or further regulation,
so long as Palm Springs in no way diminishes any protection which
this chapter affords to tenants.
(Measure H, 1990)
No landlord shall in any way retaliate against any tenant for
the tenant's assertion of, or exercise of any right under this chapter.
Such retaliation shall be subject to suit for actual and punitive
damages, injunctive relief, and attorney's fees. Such retaliation
shall also be a defense in an unlawful detainer action.
In any action in which such retaliation is an issue, the burden
shall be on the landlord to prove that the dominant motive for the
act alleged to be retaliatory was in fact other than retaliatory.
(Measure H, 1990)
Any provision, whether oral or written, in a rental agreement
whereby any resident waives the benefits of this chapter shall be
deemed void as contrary to public policy.
(Measure H, 1990)
This chapter shall be effective immediately. During the time that it is in effect, it shall supersede Chapters 4.02, 4.04, and 4.06 which were in effect as of November 1, 1988. In the event that this chapter ceases to be in effect for any reason, Chapter 4.02, 4.04 and 4.06, which include, but are not limited to, the ordinance adopted by the voters on April 8, 1980, "An Ordinance of the City of Palm Springs Limiting Rents on Residential Units" shall be effective.
(Measure H, 1990)
If any provision of this chapter or application thereof is invalid,
such invalidity shall not affect any other provision or application,
and to this end the provisions of this chapter are severable.
(Measure H, 1990)
|
Improvement
|
Years
|
|---|---|
|
Air Conditioners
|
10
|
|
Appliances
|
|
|
Dishwasher
|
5
|
|
Garbage Disposal
|
4
|
|
Refrigerator
|
5
|
|
Stove
|
5
|
|
Water Heater
|
5
|
|
Cabinets
|
10
|
|
Carpentry
|
10
|
|
Doors
|
10
|
|
Electrical Wiring
|
10
|
|
Elevator
|
10
|
|
Fencing
|
10
|
|
Fire Alarm System
|
10
|
|
Fire Escape
|
10
|
|
Flooring
|
|
|
Linoleum
|
5
|
|
Carpet
|
5
|
|
Hardwood
|
10
|
|
Furniture
|
5
|
|
Gates
|
10
|
|
Heater
|
10
|
|
Sauna
|
5
|
|
Water Heater
|
5
|
|
Insulation
|
10
|
|
Landscaping
|
10
|
|
Lighting
|
10
|
|
Locks
|
5
|
|
Painting
|
5
|
|
Paving
|
|
|
Asphalt
|
10
|
|
Cement
|
10
|
|
Reslurry
|
3
|
|
Resurfacing
|
5
|
|
Plastering
|
10
|
|
Plumbing
|
10
|
|
Pools, Swimming
|
10
|
|
Pumps
|
|
|
Pool
|
5
|
|
Sump
|
10
|
|
Roofing
|
|
|
Asphalt Shingle
|
10
|
|
Built-up Tar and Gravel
|
5
|
|
Polyurethane
|
5
|
|
Tile
|
10
|
|
Wood Shakes
|
7
|
|
Sauna
|
10
|
|
Security Entry Telephone Intercom
|
10
|
|
Stucco
|
10
|
|
Tennis Courts
|
10
|
|
Therapy Pools
|
10
|
|
Windows
|
|
|
Awnings
|
5
|
|
Drapes
|
10
|
|
Screens
|
3
|
|
Shades
|
5
|
(Measure H, 1990)
