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)
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).
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)(iv); and 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)