The city desires to harmonize relations and to resolve disputes
which may exist between residents and owners of mobilehome parks or
which may arise in the future from the failure of any party to recognize
the property rights of another or from the engaging in acts or practices
which might jeopardize the public health, safety or welfare.
(Ord. 140 § 1.2, 1987)
A.
The
city council has conducted extensive public hearings during which
residents of mobilehome parks and owners of mobilehome parks and their
representatives have expressed and the city council has considered,
all of the expressed points of view concerning property rights and
the protection of the public health, safety and welfare.
B.
Residents
of mobilehome parks, unlike apartment tenants or residents of other
rental properties, are in a unique position in that they have made
a substantial investment in a residence for which space is rented
or leased, and that the removal or relocation of a mobile-home from
a park space is generally accomplished at substantial cost, and that
such removal or relocation may cause extensive damage to the mobilehome.
C.
Rents
have been for several years, and are presently, rising in mobilehome
parks within the city, rapidly causing hardship to a substantial number
of mobilehome owners and residents in such parks, many of whom are
elderly persons on fixed incomes or persons with low incomes.
D.
It
is necessary to protect owners and residents of mobilehomes from unreasonable
rent increases while at the same time recognizing the right of mobilehome
park owners to maintain their property and to receive a just and reasonable
return on their investment.
E.
The
enactment of this chapter will not have a significant impact on the
physical environment of the community in that there will be no deviation
from the general plan and there will be no change in the present use
of property within the city on account of enactment hereof.
F.
The
enactment of this chapter is in consideration of the foregoing findings.
(Ord. 140 § 1.2, 1987)
Whenever in this chapter the following terms are used, they
shall have the meanings ascribed to them in this section.
means either: (a) a professional arbitrator or mediator by
virtue of his or her training or experience or combination of such
training and experience; or (b) any other person, whom all parties
to a dispute agree may determine whether or not a park owner is entitled
to an extraordinary rent adjustment.
means the space rent which is validly in effect at the time a notice of increased rent is issued by a park owner pursuant to Section 13.01.070.
means the year which commenced on July 1, 1986 and ended
on June 30, 1987.
means the sum of park operations expenses plus capital replacement
costs of the prior year, increased by the percentage rate of any intervening
rent increase, and reduced by the amount of all pass-throughs for
the applicable year.
means a percentage of the gross rental income from spaces
within a mobilehome park for the 12 months prior to a calculation,
as follows: for the calendar year 1987, five percent; for calendar
year 1988 six percent; for calendar year 1989, seven percent; for
each calendar year thereafter, eight percent.
means any addition or betterment made to a mobilehome park
which consists of more than mere repairs or replacement of existing
facilities or improvement, and which has a useful life of five or
more years.
means a replacement required to maintain the common facilities
and areas of the park in a safe and sanitary condition and to maintain
the existing level of park amenities and services and to comply with
the law.
means the city of Moreno Valley.
means the city manager of the city of Moreno Valley or the
designated representative of such person.
means the Consumer Price Index for all urban consumers in
the Los Angeles-Anaheim-Riverside area (Base = 1967).
means any contention, problem, issue or any other unresolved
concern related to the subject matter of this chapter within a mobilehome
park.
means a mobilehome as defined in Section 18008 of the California
Health and Safety Code.
means any person, other than the park owner, who owns a mobilehome
dwelling unit which is located in a mobilehome park pursuant to a
rental agreement either oral or written, with the park owner.
means any area of land within the city where two or more
mobilehome spaces are rented, or held out for rent, to accommodate
mobilehomes and/or recreational vehicles used for human habitation.
means the site within a mobilehome park intended, designed
or used for the location or accommodation of a mobilehome and any
accessory structures or appurtenances attached thereto or used in
conjunction therewith, or the location or accommodation of a recreational
vehicle.
means a mobilehome park that rents spaces or sites for two
or more mobilehome dwelling units.
means the owner, lessor, operator or manager of a mobilehome
park or the designated representative of such person.
means that amount in addition to the basic rent that is paid
by residents in consideration of certain capital expenditure incurred
by the park owner.
means a recreational vehicle as defined in Section 18010
of the California Health and Safety Code.
means any person, whether or not a mobilehome owner, lawfully
occupying a mobilehome dwelling unit in a park.
means the consideration received by a park owner for the
use and occupancy of a mobilehome space or site in a park. Space rent
includes charges for services, amenities, and utilities unless billed
separately to mobilehome residents or owners. No service, amenity
or utility, not billed separately prior to July 1, 1986, may be billed
separately to mobilehome residents or owners unless space rent is
reduced by the same or a larger amount.
(Ord. 140 § 1.2, 1987; Ord. 371 § 1.1, 1992)
A.
In
the event a park owner is not receiving a just and reasonable rate
of return on the park owner's investment in the park after receiving
the maximum permissive rent increase otherwise allowed by this chapter,
the park owner may file an application with the city manager requesting
that a park committee be elected if such a committee is not already
in existence, and that an arbitrator be appointed to determine if
the park owner is entitled to put into effect an extraordinary rent
adjustment. The park owner shall send a copy of the application by
certified mail to each mobilehome owner within the park who would
be affected by the requested extraordinary rent adjustment.
B.
The
park committee, or its designated representatives, may be a party
to arbitration proceedings under this section but shall have no burden
of proof.
C.
The
park owner shall have the burden of proving all facts necessary to
establish that a just and reasonable return on the park owner's investment
is not being provided by the rental rate then effective within the
park.
D.
The
park owner shall pay all costs and fees associated with any arbitration
proceedings conducted under this section.
E.
No
rent increase may be granted pursuant to this section except to provide
a just and reasonable return to the park owner commencing as of the
effective date of an arbitrator's decision allowing an extraordinary
rent adjustment.
(Ord. 140 § 1.2, 1987)
A.
The
provisions of this chapter shall apply to every park within the city,
except that the provisions hereof shall not apply to mobilehome spaces
which are subject to written leases, which leases provide for more
than a 12 month tenancy. The exception provided hereby shall be effective
only until the expiration or other termination of the lease, whereupon
all provisions of this chapter shall immediately be applicable to
the mobilehome space, unless such leases meet the criteria of Civil
Code Section 798.17(b).
B.
Before
any rental agreement or lease in excess of 12 months is executed by
the tenant the owner must: (1) offer any existing tenant, or any person
who has purchased or is in the process of purchasing or otherwise
acquiring a mobile home that will remain at the park, the option of
a rental agreement for a term of 12 months or less; (2) provide the
tenant with a copy of the mobilehome park rent stabilization ordinance;
and (3) inform the tenant both orally and in writing that if the tenant
signs a lease or rental agreement with a term in excess of 12 months
if the lease complies with Section 798.17 Civil Code, the lease or
rental agreement is not subject to the terms and protections of the
mobilehome park rent stabilization ordinance. A lease or rental agreement
in excess of 12 months executed by a tenant shall not be exempt from
the mobilehome rent stabilization ordinance unless it complies with
each and every requirement in California Civil Code Section 798.17(a)
through (c) for exemption for such leases or rental agreements offered
to "homeowners."
C.
None
of the provisions of this chapter, nor the resort by mobilehome owner
in a park to any of the remedies contained herein shall preclude such
mobilehome owner from entering into a written lease with the park
owner which, by its terms, provides for rental increases greater than
would be allowed pursuant to the exercise of such remedies.
D.
A copy
of Section 798.17(b) Civil Code or a summary of the rights it gives
to the tenants, shall be posted in a public place in each mobilehome
park.
(Ord. 140 § 1.2, 1987; Ord. 371 § 1.2, 1992)
A.
If
not already in existence, a park committee shall be established in
each mobilehome park within 60 days after the effective date of this
chapter.
B.
The
resident committee shall be composed of three to five members, each
of whom shall be a resident or owner of a mobilehome within the park.
The members shall be chosen by secret ballot of the affected mobilehome
owners. The election shall be conducted, and the results thereof tabulated,
by two persons designated by the residents and two persons designated
by the park owner.
C.
Notice
of the election shall be given in writing to each affected mobilehome
owner at least five but not more than ten days prior to the deadline
for submission of ballots. A ballot containing the names of the nominees
for membership on the committee, directions for casting the ballot
in favor of the appropriate number of nominees, and directions for
returning the same shall be sent with the notice of election. The
ballots shall be returnable in a sealed, plain envelope, which in
turn shall be inserted in a sealed outer envelope which shall identify
the voter and the space occupied by the mobilehome which makes the
voter eligible to participate in the election. A person who owns more
than one affected mobilehome may cast one ballot for each such mobilehome
owned.
D.
Within
three days after tabulation thereof, the designated representatives
of the mobilehome residents and of the owners shall give notice of
the results of the election to each resident and mobilehome owner.
E.
The
committee shall establish for the conduct of its affairs procedures
which the committee deems appropriate therefor, except that such procedures
shall not be in any material way in conflict with the provisions of
this chapter, and except that the number of affirmative votes it may
require to approve or disapprove a proposal for resolution of a dispute
shall not be established at less than a majority of the total membership
of the committee.
F.
In
any park in which there exists a park committee of at least three
but not more than seven members, elected entirely from residents of
such park, and whether elected pursuant to this chapter or not, such
committee, if willing to so function, shall be the park committee
for all purposes of this chapter, and no other or additional park
committee need be formed for such purposes.
G.
The
resident committee shall be responsible for furnishing the current
names, addresses and telephone numbers of its members updated when
necessary to the city council representative, the city manager and
the park owner.
H.
In
the absence of a duly formed resident committee, each park resident
shall be entitled to all the protection and remedies of this chapter.
(Ord. 140 § 1.2, 1987; Ord. 371 § 1.3, 1992)
A.
Not
later than 60 calendar days before an increase in rent is to become
effective in any given park, the park owner shall give, or cause to
be given, notice thereof in writing to each mobilehome owner therein.
B.
Notice
of the proposed rent increase shall also include the applicable consumer
price index as established by the city manager. Within three days
of notice to park residents of a rent adjustment, the park owner shall
provide the city clerk with the following information:
1.
The
effective date of the noticed adjustment;
2.
The
total number of spaces within the park;
3.
Identification
of the mobilehome spaces affected;
4.
The
amount of the rent prior to the effective date of the notice for each
of those mobilehome spaces;
5.
The
amount of the increase (in dollars) for each of those mobilehome spaces;
6.
The
quantity and identity of spaces under lease.
C.
No
rental adjustment for a mobilehome space shall be noticed or permitted
or enforced more frequently than once every 12 months. It is intended
that the rental adjustment refers to the space and not to the tenant
of the space and that the rental adjustment may be permitted even
though a particular tenant has not occupied the space for the full
12 month period immediately prior to the proposed rental adjustment.
D.
Once
each year a park owner may increase base rents by an amount equal
to the sum of the following:
E.
If
a park owner bills separately for utility services (gas, electricity,
water or sewer), owner may increase the amount charged for such utility
services as permitted by regulations promulgated by the California
Public Utilities Commission or other regulatory agency of competent
jurisdiction. In no event shall the cost of the utility to the resident
exceed the amount which would be charged to the resident if the utility
service was provided directly to the resident by a public or private
utility company providing similar services within the city. Decreases
in the cost to the park owner of such utility services shall be passed
on to park residents effective at the same time at which the decrease
becomes effective as to the park owner.
F.
If
an owner separately bills for other services (such as trash), and
owner has incurred an increase in such charges by the company providing
the service, the owner may adjust the charges to the residents pro-rata
effective at the time such increase becomes effective as to the owner.
In no event shall the cost of the service to the resident exceed the
amount which would be charged the resident if the service was provided
directly to the resident by a public or private company providing
similar services with the city.
G.
Monthly,
beginning on the effective date of this agreement, the city manager
shall determine the most recently published CPI which the city clerk
shall record. The city clerk, upon request, shall notify an owner
of such maximum allowable percentage change involved in a rent adjustment,
as of the date of the request.
H.
Computation
of rent increases allowable under this section shall be according
to the following formula:
Multiply the base rent times 0.05 or times the allowable percentage adjustment in the CPI as provided herein, which ever is greater, to determine the maximum allowable rent adjustment, to which shall be added any additional increases as set forth in Sections 13.01.070(D)(2) and (3).
I.
Each park owner shall provide to the city a certificate of compliance and commitment that the park is in compliance with all applicable health and safety laws and regulations, and with the applicable provisions of Chapter 2.5 and 2.6 of Title 2 of Part 2 of Division 2 of the Civil Code (Mobilehome Residency Law and Recreational Vehicle Park Occupancy Law). This certification shall be filed with the city manager within 60 days after the effective date of this chapter, and shall be renewed prior to the first day of March in each year commencing with 1988. No rent increase may become effective unless the owner of the park is in compliance with this provision. At the time of filing with the city a copy of the certification shall be provided to the park's resident committee.
(Ord. 140 § 1.2, 1987; Ord. 371 §§ 1.4, 1.5, 1992)
A.
The
pass-through of capital expenditures for new improvements shall be
computed pursuant to this section. Capital improvements which could
lead to pass-throughs may be proposed by park owners or residents.
B.
Expenditures
by the park owner for capital improvements may be passed-through to
the mobilehome owners only if the amount of the pass-through and the
exact specification of the capital improvement are agreed upon between
the park owner and the resident committee, and subsequently approved
by 60% or more of the registered owners of all mobilehomes located
within the park in an election called to consider such matter. Registered
owners of mobilehomes located on each space shall cast one vote. A
list of the names of the mobilehome owners who have approved the pass-through
shall be made available to the residents of the mobilehome park and
the park managers. The amount of such pass-through and the method
for implementing the pass-through will be decided by negotiations
between the park owner and the resident committee, and will not be
a matter for consideration outside of the park.
(Ord. 140 § 1.2, 1987; Ord. 371 § 1.6, 1992)
A.
The
pass-through of capital expenditures for replacements shall be computed
pursuant to this section. Capital replacements which could lead to
pass-throughs may be proposed by park owners or residents.
B.
Expenditures
by the park owner for capital replacements may be passed through to
the mobilehome owners only if, such expenditures, in combination with
other capital replacements and park operating expenses, exceed the
park's basic operating cost.
C.
In
the event that a capital replacements expense which is proposed for
pass-through is approved or required at a time other than the end
of an annual accounting period, the park owner with the concurrence
of the resident committee, may estimate the amount of the permitted
pass-through. Such estimate shall be based on projections of the basic
operating expense compiled by the park owner. At such later time as
the actual expense becomes known, not later than one year after commencement
of the pass-through, the pass-through shall be adjusted upward or
downward to reflect the actual allowable recovery. Reconciliation
of the monthly pass-through amount shall be accomplished by the monthly
payments as indicated over the remaining allowable period of the pass
through. Only the amount of excess over the basic operating cost (the
excess capital replacement cost) may be passed through to the mobilehome
owners.
D.
No
portion of the excess capital replacement cost may be passed-through
unless and only to the extent that, the excess capital replacement
cost exceeds the capital expense deductible amount.
E.
Capital
replacements expenditures may be passed-through only if the pass-through
is not opposed by a vote of the owners of a majority of the affected
mobilehomes located within the park in an election conducted by the
residents committee to consider the question.
F.
Notwithstanding subsection E of this section, upon the written request of the park owner or the resident committee accompanied by a current certificate of compliance and commitment, the city manager may approve a capital replacements expenditure for pass-through to the mobilehome owners in an amount not greater than is otherwise permitted by this section, even though the pass-through has been duly disapproved by a majority of the affected mobilehome owners within the park. The city manager will within five working days after receipt of such request notify the resident committee and park owner of the request. The city manager may exercise this right of approval only after determining that the capital replacement to which the pass-through is related is required by applicable law, by order of a court or a regulatory officer or agency of competent jurisdiction, or for health or safety reasons; providing however, that this approval shall not be granted if the capital replacement to which the pass-through is necessary is required due to the negligence or failure to act of park owner or his agents or employees.
G.
The
maximum amount of pass-through for capital replacements expenditures
shall be the excess capital replacements cost, less the capital expense
deductible amount, plus the carrying cost, amortized over a period
of five years or the useful life of the replacement, whichever is
the shorter period of time. Carrying cost shall be the actual carrying
cost to the park owner, or 12% per annum, whichever is less. Computation
of the monthly pass-through amount per affected space shall be made
by application of the following formula:
|
Monthly pass-through dollar amount per space =
|
|
(Excess Capital)
(Replacement Cost)
|
-
|
(Capital Expense)
(Deductible Amount)
|
+
|
(Carrying Cost)
|
|
(Amortization period)
|
x
|
(Number of Affected Spaces)
|
x
|
12
|
The following computation of allowable pass-through
is presented by way of example:
|
Prior year
| |
|
Gross rental income
|
$200,000 per year
|
|
Operating expenses
|
70,000
|
|
Capital replacements
|
5,000
|
|
Year of pass-through
| |
|
Gross rental income
|
$210,000 (5% increase)
|
|
Operating expenses
|
72,000
|
|
Capital replacement
|
50,000
|
|
Useful life
|
5 years
|
|
Number of spaces
|
110
|
|
Basic operating cost
|
(70,000 + 5,000) × 1.05 = $78,750
|
|
Excess capital replacement cost
|
(72,000 + 50,000) - 78,750 = $43,250
|
|
Deductible amount
|
0.05 × 210,000 = $10,500
|
|
Amount subject to pass-through
|
43,250 -10,500 = $32,750
|
|
Carrying cost
|
$12,675 (from table or calculator)
|
|
Annual payment (all spaces)
|
(32,750 + 12,675)/(5 x 12) = $ 9,085
|
|
Monthly payment (all spaces)
|
$757
|
|
Pass-through per space
|
$757/110 = $6.88
|
(Ord. 140 § 1.2, 1987; Ord. 371 § 1.7, 1992)
In the event an owner attempts to increase rent without complying
with the provisions of this chapter such an increase shall be deemed
null and void, and mobilehome owners shall not be required to pay
such increase.
(Ord. 140 § 1.2, 1987)
Notwithstanding the foregoing provisions, no park owner who
has increased rents to any spaces since January 1, 1987, shall be
entitled to any increase for such spaces under the terms of this chapter
until one year after such increase.
(Ord. 140 § 1.2, 1987)
Space rent may be adjusted in the event of a space vacancy or
a change of ownership of a mobilehome on a space in accordance with
the following:
A.
In
the event that a space becomes vacant, that is, with no mobilehome
in place, a park owner may adjust the space rent without regard to
the provisions of this chapter.
B.
If
a mobilehome changes ownership but remains on the same space, the
park owner may increase the space rent to the greater of the following:
(1) the amount it would have been had rents increased at the rate
of the CPI (since January 1, 1987; or (2) to the average rent in the
park for a similar space. If the prior owner of such mobilehome had
been receiving special rent benefits for such mobilehome from the
park owner at and prior to the change of ownership, the rent may,
in addition, be increased in the amount of such benefit.
(Ord. 140 § 1.2, 1987; Ord. 222 § 2.1, 1989; Ord. 371 § 1.8, 1992)
A.
Park owners shall comply with all requirements of the Mobilehome Residence Law as set forth in the California Civil Code and all federal, state, county of Riverside, and city of Moreno Valley requirements. Notwithstanding the foregoing, owners may reduce or eliminate a service within the mobilehome park or to any resident which does not effect the health or safety of any resident; provided, that a proportionate share of the cost savings resulting from such reduction or elimination is passed on to the residents in the form of a decrease in rent. An owner wishing to make such a change is subject to the provisions of Section 13.01.160.
B.
The
owner shall meet and confer in good faith upon reasonable notice with
the resident committee as required by this chapter and by the Mobilehome
Residence Law. There shall be a minimum of two such meetings per year
to discuss park welfare in general or community items of importance,
and one additional meeting within 30 days prior to the sending of
any notice of rent increase to discuss such notice. At least one of
the annual meetings shall be open to all residents who wish to attend.
C.
The
cost, if any, of conducting any election required or permitted under
this chapter shall be borne by the park owner, and the park owner
shall make suitable facilities for any such election, such as meeting
rooms, available without charge.
D.
Within
60 days after the effective date of this chapter, each park owner
shall submit to the city manager a list of all physical improvements,
common facilities, common areas, services and amenities which were
provided or available to residents during the base year in consideration
of the base rent. Revisions to the list shall be submitted to the
city manager within 30 days after the effective date of such revision.
The list required hereby shall be substantially in the form attached
as Exhibit A to the ordinance which enacted this chapter. No rent
increase may become effective unless the owner of the park is in compliance
with this provision. Copies of the list and all revisions shall be
sent to the resident committee.
(Ord. 140 § 1.2, 1987; Ord. 371 § 1.9, 1992)
If a park owner makes a new and separate charge to a mobilehome
owner for utility or other services such as gas, electricity, water,
cable television, trash or sewer services, which charges were formerly
included in the space rent, the monthly space rent shall be reduced
by the park owner by an amount to be calculated by taking the total
cost to the mobilehome park of the subject utility or service for
the 12 month period prior to notice to the mobilehome owners by the
park owner of such new and separate charge, and subtracting from that
amount the cost attributable to the common area of the park for such
utility or service for the 12 month period, and then dividing the
resulting amount by the number of spaces in the park, and then dividing
that resulting figure by 12.
(Ord. 140 § 1.2, 1987)
In the event a park owner increases rents without complying
with the provisions of this chapter, such an increase shall be deemed
null and void, residents shall not be required to pay such increase
except as may be otherwise specifically provided in this chapter,
and any resident who is sought to be evicted from the park through
an unlawful detainer action brought by the park owner, shall have
the right to assert the invalidity of such increase as a defense to
the unlawful detainer proceedings and for the failure of the resident
to pay such increase.
(Ord. 140 § 1.2, 1987)
A.
The
primary level of communication between the residents and the park
owner shall exist at the park level, with the legislative intent being
that all problems, disputes, rent increase considerations, and pass-throughs
affecting an individual park shall be resolved at the park level among
the tenant, park committee and park owner; provided, however, that
if a resolution is not reached within 90 days, the parties shall send
a letter to the city manager requesting dispute resolution.
B.
Within
30 days of receipt of the request the city manager shall appoint an
ad hoc committee comprised of three individuals appointed by the city
manager, (none of whom are affiliated with the mobilehome park which
is the subject of the dispute), one of whom shall be a mobilehome
owner, one of whom shall be a park owner, and at least one who is
neither a mobilehome park owner or resident. The committee shall meet
and hear the dispute within 20 days of appointment and render their
decision within ten days of hearing the dispute. The majority decision
of the committee will be forwarded to the city manager as a recommendation
for the resolution of the dispute. The final decision will be made
by the city manager and forwarded to the affected resident, park committee
and park owner within ten days.
C.
The
affected park resident or the park owner may appeal the decision of
the city manager to the city council. The appeal shall be made in
writing and filed with the city clerk within ten working days following
the giving of the notice of the decision of the city manager. Such
appeal shall state the grounds for the appeal. The city clerk shall,
upon receipt of such appeal, set the matter for hearing before the
city council not less than ten nor more than 30 days following the
filing of the appeal.
D.
Problems
or disputes of interest to or affecting more than one mobilehome park
and of city wide importance shall be considered at joint meetings
of the park owners and the resident committees of all parks within
the city. The meetings shall be scheduled and held as necessary. Decisions
and recommendations of this group shall be advisory only.
(Ord. 140 § 1.2, 1987; Ord. 371 § 1.10, 1992)
The provisions of this chapter are to be construed as added
remedies and are not intended to preclude any other actions or proceedings
or remedies otherwise provided by law.
(Ord. 140 § 1.2, 1987; Ord. 371 § 1.11, 1992)
No provision of this chapter, and no action taken or omitted
by or on behalf of the city or any other person pursuant to any provision
of this chapter shall be construed to create any cause of action or
liability on the part of the city or any officer, employer or agent
of the city.
(Ord. 140 § 1.2, 1987)
