A.
Limited Manufactured Home Park Space. There is presently, within the City and surrounding communities, a shortage of rental spaces for the location of manufactured homes relative to the demand therefor. This limited market situation has resulted in low vacancy rates and contributes or threatens to contribute to rapidly escalating rents. This situation has resulted or threatens to result in financial hardship, serious concern, anguish and stress among a significant portion of Santee residents living in manufactured home parks.
B.
Inability to Relocate. Alternative sites for the relocation of manufactured homes are difficult to find due to the shortage of vacant spaces, the restrictions on the age, size or style of manufactured homes permitted in many parks, and requirements related to the installation of manufactured homes, including permits, landscaping and site preparation. Additionally, the cost for moving a manufactured home is substantial, and the risk of damage in moving is significant. The result of these conditions creates a captive situation for manufactured home owners. This immobility, in turn, contributes to the creation of a monopolistic market and great imbalance in the bargaining position of the park owners and manufactured home owners in favor of the park owners.
C.
Unreasonable Rent Increases. Manufactured home owners are property owners with sizeable investments in their manufactured homes and appurtenances. Collectively, the manufactured home owners often have a greater investment than does the manufactured home park owner. The continuing possibility of unreasonable space rental increases in manufactured home parks threatens to diminish the value of the investment of the manufactured home owners. Further, existing State law permits manufactured home park owners to require manufactured home owners to make reasonable modifications to their homes or spaces for safety purposes, landscaping or conformity to park maintenance standards that amount to capital improvements which accrue to the benefit of the park owner by potentially increasing the market value of the park itself.
D.
Facilitation of Bargaining. The people of the City of Santee find and declare it necessary to facilitate and encourage fair bargaining between manufactured home owners and park owners in order to achieve mutually satisfactory agreements regarding space rental rates in manufactured home parks. Absent such agreements, the people further find and declare it necessary to protect the owners of manufactured homes from unreasonable space rental increases while simultaneously recognizing and providing for the need of the park owners to receive a just and reasonable return on their property.
(Ord. 555 § 3, 2019)
includes enforcement of this chapter.
means the Manufactured Home Fair Practices Commission established by this chapter.
means the San Diego Consumer Price Index-Urban Consumers, (CPI-U) published by the U.S. Bureau of Labor Statistics. The CPI-U base period shall be 1982-84 = 100.
For the purposes of this chapter, the term "manufactured home" shall be synonymous with the term "mobile home."
means any person entitled to occupy a manufactured home as the owner thereof. Also referred to herein as a "home owner."
means an area of land where two or more manufactured home sites are rented, or held out for rent to the public by the same person or entity, to accommodate manufactured homes used for human habitation. Also referred to herein as a "park."
means the owner, lessor, operator or designated agent thereof of a manufactured home park. Also referred to in this chapter as a "park owner."
means a contractual agreement between the manufactured home park owner and a manufactured home owner pertaining to leasing a space for the manufactured home within a manufactured home park and establishing the terms and conditions of such tenancy including month to month tenancy agreements.
means the area or site in a manufactured home park, within the legal lot lines designated for the location of a manufactured home.
means the consideration, including any bonus, benefits or gratuities, demanded or received for and in connection with the use or occupancy of a manufactured home space within a manufactured home park or the transfer of a rental agreement of such a manufactured home space. Consideration shall include the right of occupants of the manufactured home on the space covered by the rental agreement to use all facilities, services and amenities accruing to the residents of the park for which a separate fee authorized by the Mobile Home Residency Law (California Civil Code Section 798 et seq.) is not charged. Nothing in this chapter shall be construed to prevent a park owner from establishing such fees as may be authorized by the Mobile Home Residency Law. "Space rent" shall not include utility charges for utility services, including gas, electricity, water, trash and/or sewer service, provided to an individual manufactured home residence (as opposed to the park in general) where such charges are billed to such a residence separately from the space rent and such charges are limited to the actual value of the utility services provided to the individual residence. Charges can only be made for services actually rendered.
A vacancy in a manufactured home park is a site that is not occupied by a manufactured home. Vacancy does not include any space not available for rental by the public for placement of a mobile home.
(Ord. 555 § 3, 2019)
A.
Chapter Applies to all Parks Except Those Specifically Exempted. The provisions of this chapter shall apply to all manufactured home parks as defined in Section 2.44.020 and to all spaces in such parks and to all tenancies in such parks including tenancies and/or space established or covered by pre-existing leases including month to month and/or one year rental agreements unless otherwise exempted by subsection B or C of this section or any other provisions of this chapter.
B.
Exemption of Tenancies Subject to Rental Agreements and Rent Schedules. The provisions of this chapter shall not apply to any tenancy in a manufactured home park that is covered by a rental agreement but only if the status of the parties to the rental agreement, as well as the form of the rental agreement, comply with the requirements of Section 798.17 of the California Civil Code to the extent necessary to exempt the rental agreement from rent control. Space rent agreements which meet the criteria of Section 2.44.080 of this chapter are also exempt. These exemptions shall not negate the registration requirements of this chapter as provided in Section 2.44.050 of this chapter. The exemptions shall apply only for the duration of the rental agreement or only so long as Section 798.17 of the California Civil Code or an equivalent statute remains in effect. Upon the expiration or other termination of above-defined space rental agreement, this chapter shall automatically become applicable to the tenancy.
C.
Regulation of Rental Agreements for Spaces Which Contain Park-Owned Coaches. Residents who lease or rent a manufactured home and the space from the manufactured home park owner do not come within the purview of this chapter, as the conditions listed in Section 2.44.010 do not apply. However, a park owner shall register with the Commission, a rental agreement between it and a tenant who occupies a park owned coach, which registration discloses the allocation of rent between rent for space owned by the park and coach owned by the park. The allocation for space rent shall be designated as the controlled rent. Upon transfer of ownership of the manufactured home, the controlled rent shall apply. The space rent ceiling date of provisions of Section 2.44.090 of this chapter shall apply. Park-owned coaches are exempt from any application of Section 2.44.080 of this chapter, effective from the space rent ceiling date of December 31, 1989.
D.
Exemption for New Construction. This chapter shall not apply to any "new construction" as defined in Civil Code Sections 798.7 and 798.45.
(Ord. 555 § 3, 2019)
A.
Establishment. The Manufactured Home Fair Practices Commission of the City is established.
B.
Membership.
1.
Qualifications. The Commission shall consist of a total of five regular members. All members shall be resident electors of the City. No member shall be:
a.
A manufactured home owner or resident;
b.
An owner, operator or manager of a manufactured home park;
c.
Any person owning or possessing any interest in, or operating or managing, any other rental property totaling four or more dwelling units, whether such four units are located on one parcel or lot, or are spread among several parcels or lots. As used in this section, "dwelling unit" shall mean an apartment unit, a condominium unit, or a single-family residence;
d.
A person with an identifiable economic or professional interest in the rights of park owners or residents.
2.
Attendance at Meetings. All members of the Commission shall be required to attend all Commission meetings and hearings unless such member has been disqualified from participation.
3.
Absences. When a regular member is absent from a meeting, the meeting shall be governed by rules adopted by the Commission.
C.
Nomination and Appointment. Council members may make recommendations to the Mayor for nominations to the Commission. The Mayor shall nominate persons for appointment to the Commission. Each such nomination shall be subject to the approval of the City Council by majority vote.
D.
Term.
1.
Terms of Office. Each regular member of the Commission shall serve for a term of two years except as otherwise provided in this chapter. For the first Commission, the Mayor shall designate which three regular members shall serve two-year terms and two regular members for one-year terms. Thereafter, the successors of these members shall be appointed for terms of two years. Each regular member shall hold office until a new member has been duly appointed.
2.
Vacancies on Commission. If a vacancy shall occur otherwise than by expiration of the term, it shall be filled by appointment for the unexpired portion of each member's term.
3.
Removal of Commissioners. The provisions of this subsection notwithstanding, a member may be removed, at any time, with or without cause, by a majority vote of the City Council.
4.
Unexcused Absences. Any member who is absent, without sufficient cause, from three successive meetings of the Commission which such member was required to attend shall be deemed to have vacated that office.
E.
Meetings. Except as expressly provided in this chapter, the Commission shall establish the time and place of its meetings. All meetings of the Commission shall be conducted in accordance with the provisions of the Brown Act (Government Code Section 54950 et seq.).
F.
City Council Guidelines Commission Rules and Regulations.
1.
The City Council shall from time to time adopt by resolution such guidelines as it deems necessary to assist and direct the Commission in the accomplishment of its duties.
a.
The City Council shall not delegate the responsibilities for legal defense of this chapter to the Commission.
2.
The Commission may make and adopt its own rules and regulations for conducting its business consistent with the laws of the State, this chapter, and any guidelines adopted by the City Council. Any such rules and regulations shall be reduced to writing and be on file with the secretary of the Commission at all times.
G.
Officers. The Commission may appoint such officers as it may deem necessary to carry out its duties hereunder.
H.
Records. The Commission shall keep a record of its proceedings, which shall be open for inspection by any member of the public.
I.
Appointment of Committees and Hearing Officers. The Commission may appoint committees or hearing officers, subject to the provisions of subsection (B)(1), to hear matters on which testimony must be taken, which committees and officers shall report to the Commission the findings and results of any such hearing on a matter referred to such committee or person.
J.
Compensation. Each member of the Commission shall be entitled to such compensation as may be set by the City Council. Such members shall be entitled to reimbursement for expenses incurred in the performance of their official duties. The Commission shall not have any authority to expend or authorize the expenditure of any public funds, except with the prior expressed approval of the City Council.
K.
Staff. The City Manager shall provide all administrative staff necessary to serve the Commission. The City Manager (or designee) shall serve as the secretary of the Commission and shall be responsible for the maintenance of all records of the Commission. The City Attorney or designee shall act as legal counsel to the Commission for the administration of this chapter.
L.
Duties. The Commission shall undertake and have the following duties, responsibilities and functions, together with all powers reasonably incidental thereto:
1.
a.
To meet on a regular basis as may be specified by the rules and regulations of the Commission in order to carry out its duties;
b.
To notify the designated representatives of the resident homeowner associations and other associations representing park residents of all such meetings;
c.
To require such registration of manufactured home parks as the Commission may deem necessary to enable it to carry out its duties;
d.
To make adjustments in space rent ceilings as provided for in this chapter;
e.
To make such studies, surveys and investigations, including the establishment of a uniform system of reports, conduct such hearings necessary to carry out its powers and duties;
f.
To adopt, promulgate, amend and rescind such administrative rules as may be necessary to effectuate the purposes and policies of this chapter and to enable the Commission to carry out its powers and duties thereunder;
g.
To render at least semiannually a comprehensive written report to the City Council concerning the Commission's activities, decisions, actions, results of hearings, and all other matters pertinent to this chapter;
h.
The Commission has the authority to ignore, for purposes of this chapter, a contractual rental agreement when in its opinion it is illegal, when it is procured by fraud, duress, coercion or other improper conduct or if it is not exempt under Section 798.17 of the Civil Code. Prior to ignoring a contractual rental agreement, the Commission shall cause a hearing to be conducted by a neutral hearing officer, licensed by the State to practice law. The hearing official's decision shall be final unless the Commission finds, by a preponderance of the evidence, that the decision is in error;
i.
To undertake such other related duties as may be assigned by the City Council.
2.
The decisions of the Commission shall be final unless the City Council shall find by preponderance of the evidence that the decision is in error, the Commission violated the Brown Act (Government Code Section 54950 et seq.) or provisions of subsection (B)(1) of this section.
3.
The City Council shall conduct a hearing and issue a finding on any alleged error made by the Commission within a period of not more than 30 days after the Commission decision.
4.
The Commission shall cause a re-hearing to be conducted within 30 days of any findings of error or if a previous decision is in violation of any provision of this amended chapter.
(Ord. 555 § 3, 2019)
A.
Time Limit to Register. Within 90 calendar days after the date any manufactured home park, or manufactured home space, initially becomes subject to the provisions of this chapter, the owner of the park shall register the park.
B.
Initial Registration. The initial registration shall include the name(s), business address(es), business telephone number(s) of each person or legal entity possessing an ownership interest in the park and the nature of such interest; the number of all manufactured home rental spaces within the park; a schedule of all space rents within the park in effect on the "space rent ceiling date" specified in Section 2.44.090(A) of this chapter; a schedule of space rents within the park on the effective date of this chapter; a copy of all rental agreements then in effect in the park; a listing of all other charges, including utilities not included in space rent, paid by manufactured home residents within the park and the amount of each such charge; the name and address to which all required notices and correspondence may be sent; and any other information deemed relevant by the Commission.
C.
Subsequent Registration. The Commission is hereby empowered to require such re-registration as it deems necessary, including, but not limited to, any change in the terms of the rental agreement or occupancy of a space pursuant to the provisions of subsection B of this section.
D.
Registration Must Be Current. No park owner shall be eligible to receive any rent ceiling adjustment, with the exception of the initial permissive adjustment provided for in Section 2.44.100(B)(1) of this chapter, unless such current registration is on file with the Commission.
E.
All Parks Must Register. The registration requirements provided for in this section or which may be established by the Commission shall apply to all manufactured home parks and park spaces, including those exempt from the space rent ceiling limitation by reason of the existence of a valid park rent schedule exemption or an exemption based on Civil Code Section 798.17.
(Ord. 555 § 3, 2019)
A.
Monthly Assessment.
1.
Each park shall be assessed the amount of three dollars per month per manufactured home space to help defray the reasonable and necessary costs associated with the administration of the regulations contained in this chapter. For the purposes of this chapter, the annual administration assessments paid by each park shall be treated as reasonable operating expenses, recoverable as allowed under Section 2.44.150 of this chapter. The assessment is payable quarterly in advance beginning with the first day of the month following the effective date of the ordinance codified in this chapter.
2.
Each park shall be assessed the amount of two dollars per month per manufactured home space to help defray the reasonable and necessary costs associated with the defense of the regulations contained in this chapter. The monthly assessment may be recovered, at the option of the park, as a "pass-through" payment by park tenants to be added to the monthly space rent allowed under the chapter. The assessment is payable quarterly in advance beginning with the first day of the month following the effective date of the ordinance codified in this chapter.
B.
Administration of Assessment Funds.
1.
Administration Assessment. The revenue generated from the assessment pursuant to subsection (A)(1) of this section shall be deposited with the City Treasurer in a separate fund identified as the "park administration fund." The revenue shall be utilized only for the purpose of paying the reasonable and necessary expenses for the administration of the provisions of this chapter.
C.
Periodic Review.
1.
A review shall be conducted by the Commission annually of funds collected from park owners pursuant to subsection (B)(1) of this section. The Commission, jointly with the City Manager, shall advise and recommend to the City Council any changes in the park assessment amount.
2.
The City Council shall seek to maintain a legal defense fund pursuant to subsection (B)(2) of this section in an amount not less than $50,000.00 nor more than $150,000.00 giving consideration to current and anticipated legal expenses to defend the validity of the provisions of this chapter; and shall have the power to suspend this monthly assessment by reasonable notice to the park owners and manufactured home owners when such limit has been attained.
D.
Accounting Responsibility. The City Manager is directed to maintain a separate and accurate accounting of all direct costs of legal defense and administering the regulations contained in this chapter. The City Manager shall submit a report to the Commission and City Council of such costs at least annually. The report shall be available to the public at the cost of a reasonable copying charge.
E.
Late Charges. If a park owner does not pay the amount of the assessment provided for in subsection (A)(1) and (2) of this section within the time period established therein, a late charge shall be assessed in an amount equal to one dollar for each manufactured home space within the park for each month or fraction thereof that such payment is delinquent, and shall be deposited pursuant to subsection (B)(1) and (2) of this section. The delinquency payment shall not be considered a governmental assessment within the meaning of this chapter.
F.
No Petitions Accepted. For any manufactured home park for which there is an unpaid assessment bill, no petition will be accepted from any park owner for any space rent ceiling adjustment, no hearing or other proceeding shall be scheduled or take place, and no space rent ceiling adjustment shall be granted or take effect; with the exception of the initial permissive adjustment provided for in Section 2.44.100(B)(1) of this chapter.
G.
Exemption from Assessment. Assessments made under this section shall not be applicable to park spaces which are exempt from such charges pursuant to the California Civil Code, Section 798.17.
(Ord. 555 § 3, 2019)
A.
Generally. Any manufactured home park in which all available rental spaces are 90% occupied by manufactured home owners with rental agreements not exempted, pursuant to Section 2.44.030(B) and (C) of this chapter, may elect to be subject to a space rent agreement. An agreement meeting the criteria set forth in this section shall be exempt from the space rent ceiling provisions of this chapter for the duration of such agreement.
B.
Space Rent Agreement Criteria. An exemption as provided for in subsection A of this section shall be effective only if the space rental agreement meets the following criteria:
1.
Space Rent Agreement Duration. This agreement between the park owner and the residents there-of must establish a space rent schedule for the park for a minimum period of two years and for a maximum period of four years from the date of commencement of the agreement.
2.
Minimum Number of Consenting Manufactured Home Owners. The agreement must be voluntarily consented to by at least one adult manufactured home owner from 67% of the occupied manufactured home rental spaces within the park which are not exempted from the provisions of this chapter pursuant to the provisions of Section 2.44.030(B) and (C). This consent shall be evidenced by the signature of such manufactured home owner, heir or assignee, on such consent form as may be required by the Commission. The form shall show the date each such signature was affixed. Any signature over 60 days old may not be counted in determining whether the required 67% majority has been achieved. The consent form shall be circulated or provided for signature only in accordance with such rules and regulations as may be established by the Commission.
3.
Approval by Commission. Upon approval by the Commission, the park rent schedule shall apply to all home owners in the park not exempt under Civil Code Section 798.17 including those manufactured home owners not consenting to the park rent schedule.
C.
Procedure for Obtaining a Park Rent Schedule Exemption.
1.
Exemption. The exemption provided for in subsection A of this section is only available with respect to those manufactured home parks which are not less than 90% occupied by manufactured home owners and which have formed a homeowner association. The homeowner association shall have a board of directors elected by a majority of the home owners in the park. Such association shall be organized and governed by guidelines as suggested by the California Department of Real Estate for homeowner associations. No member of the board of directors shall be an owner, an agent for the owner, operator, manager or employee of the manufactured home park. Nothing contained in this section is intended to suggest that residents and/or manufactured home owners may not form associations for other purposes, including, but not limited to, mutual benefit and entertainment.
2.
Park Rent Schedule. If a manufactured home park has a homeowner association as described in subsection (C)(1) of this section, the park owner shall, before submitting to the Commission an application for this exemption, first submit to the homeowner association a proposed park rent schedule form, as provided by the Commission. The homeowner association shall have not less than 10 days after receipt of such form to respond to same and/or comment regarding the same.
3.
Park Rent Schedule Contents. The park rent schedule shall indicate: (a) the proposed park rent schedule; (b) the proposed duration of the rent schedule; and (c) any other provisions or conditions related to the proposed park rent schedule. The park rent schedule shall be signed by the park owner, or an agent of the park owner and receipted for by the homeowners association.
4.
Delivery to Home Owners. The park owner shall hand deliver, or mail by first class mail postage prepaid, a copy of the completed park rent schedule form to all of the affected manufactured home owners in the park. Included with the park rent schedule form shall be any comments, criticisms or recommendations of the homeowner association, a consent form, as provided by the Commission, and stamped envelope pre-addressed to the City Manager of the City.
5.
Consent of Home Owners to Schedule. In order for any park owner to receive a park rent schedule exemption, as provided in this section, the City Manager must receive a completed consent form, indicating consent to the park rent schedule, signed by a manufactured home owner from at least 67% of the eligible spaces in the park. Such consent must be received by the City Manager within the time period determined by the Commission.
6.
Application of Schedule to Future Homeowners. Any park rent schedule approved in accordance with the provisions of this section shall apply to all persons who became residents after adoption of this schedule until expiration of the schedule.
7.
Commission Procedures. The Commission may supplement the procedures and requirements provided in this chapter in order to effectuate the purpose and intent of this section.
D.
Expiration of Space Rent Agreement.
1.
Termination of Rent Schedule Exemption. The exemption as provided for in subsection A of this section shall terminate upon the expiration of the space rental agreement unless such agreement is renewed or extended by mutual agreement of the park owner and requisite number of home owners in the park. Any such renewal or extension of such agreement must meet the criteria set forth in subsections B and C of this section and shall expire on the same date for all spaces.
2.
Rent Upon Termination of Exemption. Upon termination of the exemption, the manufactured home park shall be subject to the space rent ceiling in effect at the date of termination in accordance with the provisions of this chapter.
(Ord. 555 § 3, 2019)
A.
Space Rent Ceiling Date. Except as otherwise provided in this chapter, no owner of a manufactured home park, or agent of such owner, shall demand, accept or retain space rent for any manufactured home space subject to the provisions of this chapter as provided in Section 2.44.030, in an amount greater than the space rent in effect on December 31, 1989. This date shall be known as the "space rent ceiling date." The space rent in effect on that date shall be known as the "space rent ceiling."
B.
Space Rent Ceiling for Spaces Later Rented. If there was no space rent in effect on the space rent ceiling date, the space rent ceiling shall be the space rent that was charged for that space on the first date that space rent was charged for that space subsequent to the space rent ceiling date.
C.
Space Rent Ceiling Upon Expiration of Exemption. If a manufactured home space is exempted from the space rental ceiling provisions of this chapter by reason of the provisions of Civil Code Section 798.17, or is exempt as part of a park rent schedule exemption as provided in Section 2.44.080 of this chapter, and the agreement applicable to that space expires, the space rent ceiling for that space shall be the space rent in effect for that space on the expiration date of the agreement.
(Ord. 555 § 3, 2019)
A.
Increase Prohibited. No increases in space rent ceilings shall be permitted except as provided for in this section.
B.
Initial Adjustments.
1.
Permissive Adjustment. For spaces which were charged a monthly space rental, park owners shall be entitled to a percentage adjustment in the space rents in effect on December 31, 1989 equal to 100% of the increase in the San Diego Consumer Price Index (CPI-U: All Items) for the period from December 31, 1989 to June 30, 1994, adjusted further by projections to September 1, 1994 starting with the last published Consumer Price Index Value that is available for the period ending December 31, 1989. If Consumer Price Index data is not available for the entire period to be covered, projections may be made based upon the published information available from the Bureau of Labor Statistics. The initial permissive percentage adjustment factor shall be calculated by the City Manager and reported, by letter, to park owners. The initial adjustment in space rents shall be effective upon receipt of the notice of allowable initial permissive percentage adjustment figure from the City Manager, with CPI projected to September 1, 1994. The park owner may notice an initial permissive adjustment in accordance with the provision of this section and the California Mobile Home Residency Law upon receipt of the allowable initial permissive adjustment factor from the City Manager. The park owner shall report any permissive adjustment to Commission within 10 days of implementing the adjustment. The report shall be on a Commission prepared form.
2.
Net Operating Income (NOI) Adjustment. In the event a park owner believes he or she will not receive a just and reasonable net operating income after receiving the maximum permissive adjustment provided for above, a park owner may file an application with the Commission for an initial adjustment of the space rent ceiling based upon the park net operating income (NOI). Park net operating income (NOI) shall be determined by substituting a schedule of rent (rent based on the initial permissive adjustment for a 12-month period) and deducting actual operating expenses for the 12-month period ended December 31, 1993 or June 30, 1994 depending upon the availability of accounting records. A park owner shall be entitled to an adjustment of the space rent ceiling so as to enable the park owner's base year net operating income (NOI) to be increased by a rate equal to 100% of the percentage increase in the San Diego Consumer Price Index (CPI-U: All Items) measured from the end of the base year to the last reported CPI-U index number available on July 1, 1994, projected to August 31, 1994. The base year for the purposes of this NOI adjustments shall be the 12 months ending December 31, 1989. Park owner shall be entitled to collect from park tenants, as "back rent," the difference between the rent determined by the initial permissive adjustment and the rent determined by the initial net operating income (NOI) adjustment. The "back rent" period shall start from the effective date of the initial permissive adjustment and end on effective date of the initial net operating income (NOI) adjustment.
3.
Filing of Application. An application for an initial NOI adjustment may be filed with the secretary of the Commission no sooner than September 1, 1994 and no later than January 1, 1995. The application shall be submitted on such form as may be provided by the Commission. The Commission shall review any such application in accordance with the provisions of this chapter.
C.
Annual Adjustment.
1.
Permissive Adjustment. A park owner shall be entitled to an annual permissive adjustment of gross space rental income equal to: 100% of the average rate of change in the San Diego CPI-U: All Items Index, for the prior year whenever that rate of change is five percent or less; plus 70% of that portion of the CPI increase which is greater than five percent.
The first annual adjustment shall occur September 1, 1995, and shall continue thereafter on September 1st of each subsequent year, until September 1, 1998, and further projected to December 31, 1998. Thereafter on January 1, of each subsequent year the annual permissive adjustment of gross space rental income shall be equal to: 70% of the average rate of change in the San Diego CPI-U: All Items Index, based on the most recent 12-month period for which the CPI is published, whenever that rate of change is three percent or less; plus 40% of that portion of the CPI increase which is greater than three percent but no greater than eight percent. The City Manager shall notify the park owners of the permissive adjustment figure by the prior September 1. The notice shall be on a Commission prepared form and attached to any notification of a rent adjustment. In order for the rent ceiling adjustment to become effective on January 1, the park owner must notify the home owners in writing no later than the prior October 1 pursuant to the provisions of Section 798.30 of the California Civil Code.
2.
Annual NOI Adjustment. In the event a park owner believes that the net operating income will be less than provided for in Section 2.44.110(C)(1) a park owner shall be entitled to elect instead of the annual permissive adjustment, to file an application with the Commission for an annual adjustment of the space rent ceilings so as to enable the park owner's net operating income (NOI) for the subsequent year to be increased by a rate equal to the allowable percentage increase in the CPI for the most recent 12-month period for which the CPI is published prior to the effective date of the annual adjustment.
3.
In the event the park owner elects to seek an NOI adjustment in lieu of a permissive adjustment and if Commission in awarding such NOI adjustment fails to give the park owner a rent increase in excess of the increase he or she would have been entitled to under the permissive adjustment provisions, the Commission shall order that the park owner pay reasonable attorneys' fees and related costs incurred by home owners of the park or the homeowner association in opposing the park owner's NOI adjustment claim. The NOI adjustment awarded by the Commission to the park owner shall be effective subject to the provisions of subsection (C)(4) of this section as of the first day of the year to which it pertains, but the park owner shall be entitled to no increase of the rent until he or she has paid all fees and related expenses, if any, awarded by the Commission to a home owners association or a home owner opposing the application.
4.
Effect of Previous NOI Adjustment. No NOI adjustment shall become effective if a previous NOI adjustment became effective within the previous 12 months. An NOI adjustment may, however, be approved by the Commission within such 12-month period provided that such an adjustment shall not become effective within such 12-month period.
5.
Pass Through Adjustments. A park owner shall be entitled to elect to pass through utility expenses and any other expenses expressly authorized by Civil Code Section 798.41; provided, however, if he or she elects to do so, the pass through expenditures shall be excluded in any computation made in connection with the application for an NOI adjustment.
D.
Uniform Space Rent Ceiling Adjustments. In reviewing petitions under subsection B or C of this section, the Commission shall determine the amount of gross space rental income that the park owner will be entitled to receive in order to obtain the appropriate adjustment. In translating this total dollar adjustment into specific space rent ceiling adjustments, the park owner shall be required to adjust the space rent ceiling amount for each manufactured home rental space within the park by an equal percentage. Nothing contained in this section is intended to suggest that the space rent for each space in a park must be the same.
(Ord. 555 § 3, 2019)
A.
Presumption that NOI Provided Fair Return. Given the absence of space rent regulations which could have restricted rent increases prior to the space rent ceiling date of December 31, 1989 it shall be presumed that the net operating income produced by a manufactured home park during the 12 months prior to the space rent ceiling date did, subject to rebuttal, provide the park owner with a just and reasonable return. Park owners shall be entitled to maintain and, as justified, increase their net operating income from year to year in accordance with the adjustment procedures contained in this chapter.
B.
Presumption That NOI Adjustment Under the Chapter Provides a Fair Return. It shall be further presumed that the adjustments provided for in this chapter, including any adjustments to the base year NOI ending December 31, 1989, and any annual adjustments thereafter, provide all adjustments necessary to allow the park owner a just and reasonable return on investment for any given year.
C.
NOI Less Than 50% Percent of Gross Income. It shall be further presumed that where the NOI for the base year ending December 31, 1989, is less than 50% of the gross income in the base year, the park owner was receiving less than a just and reasonable return on the manufactured home park.
D.
Application for Special Adjustment. However, in the event a park owner contends that the initial permissive adjustment and its NOI alternative adjustment, or the annual permissive adjustment and its NOI option, does not result in a just and reasonable return to the park owner, the park owner may apply for an additional "special adjustment." The application for a special adjustment shall be in writing in such form as provided by the Commission and shall be heard by the Commission at a public hearing to be known as a "fair return hearing." The application shall not be deemed complete unless it contains a recital that the park owner has previously received a decision on an application for an NOI adjustment and the date of that decision. Notice of the fair return hearing shall be given to the park owner/applicant and to the residents of the park by first-class mail sent not less than 20 days before the date set for the hearing.
E.
Fair Return Hearing. At the fair return hearing, the park owner shall bear the burden of presenting evidence rebutting the presumption stated in subsection A of this section and the Commission shall consider and hear all relevant evidence, and determine, based upon the evidence presented, whether the adjustments as provided in this chapter are adequate to allow the park owner a just and reasonable return, and whether and to what extent a special adjustment is necessary to realize a just and reasonable return. The Commission shall grant a special adjustment to the extent and only to the extent it finds by clear and convincing evidence such adjustment is necessary to effectuate a just and reasonable return to that park owner/applicant under the law. In applying the standard, the Commission shall consider all relevant factors bearing upon the fair return for the park owner, including, but not limited to: (1) changes in the Consumer Price Index; (2) capital improvements made to the park and the costs for such improvements; (3) changes in property taxes or other assessed taxes to the park; (4) rent paid by park owner/applicant for leased land; (5) change in utility charges or rates; (6) changes in reasonable operating and maintenance expenses; (7) the need for repairs caused by circumstances other than ordinary wear and tear; (8) the amount and quality of services and amenities provided by the park owner/applicant to the home owners of the park; (9) the park owner/applicant's return on investment considering initial cash investment, additional investment, appreciation, depreciation, and possible tax benefits; (10) any particular hardship circumstances of the park owner/applicant or the home owners and residents; (11) the salability and sales price of manufactured homes in the park and whether the same are selling for fair market value or greater or less than a fair market amount; and (12) the quality of management of the park, the fairness and reasonableness of park rules and any other factors which affect the quality of life in the park. It shall be the responsibility of the applicant for a special adjustment to provide the Commission with a financial statement reviewed by a certified public accountant for accuracy and any such evidence available to him or her upon request by the Commission.
F.
Attorney's Fees and Related Costs. In the event the park owner elects to seek an adjustment under Section 2.44.100(B)(2) and this section and if the Commission in awarding such adjustment fails to give park owner a rent increase in excess of the increase he or she was entitled to under the other adjustment provisions of this chapter, the Commission shall order that park owner pay reasonable attorneys' fees and related costs incurred by home owners in the park and/or the homeowners' association in opposing the park owner's special adjustment claim.
(Ord. 555 § 3, 2019)
For the initial permissive adjustment, its optional NOI adjustment, and annual permissive adjustments, the base year period shall be the 12 months preceding December 31, 1989. For annual NOI adjustments thereafter, the base year period shall be the 12 months ending December 31, 1993.
(Ord. 555 § 3, 2019)
For purposes of this chapter, the net operating income (NOI) of a manufactured home park shall equal gross income (GI) less operating expenses (OE).
(Ord. 555 § 3, 2019)
For purposes of this chapter, the gross income (GI) of a manufactured home park shall equal the following:
A.
Gross space rents, computed as gross space rental income of all spaces in the park at 100% occupancy; plus
B.
Other income generated as a result of the operation of the park, including, but not limited to, laundry and recreational vehicle storage; including rents collected from park owned manufactured homes; plus
C.
Revenue received by the park owner from the sale of the gas and electricity to park residents where such utilities are billed individually to the park residents by the park owner, which revenue shall equal the total cost of the utilities to the residents minus the amount paid by the park owner for such utilities to the utility provider; minus
D.
Uncollected space rents due to vacancy and bad debts to the extent that the same are beyond the park owner's control. Uncollected space rents in excess of three percent of gross space rents shall be presumed to be unreasonable unless established otherwise and shall not be included in computing gross income.
(Ord. 555 § 3, 2019)
A.
For the purposes of this chapter, the operating expenses (OE) of a manufactured home park shall include the following:
1.
Real property taxes and assessments;
2.
Utility costs to the extent that they are included in space rent;
3.
Reasonable and necessary advertising to ensure occupancy only, legal and accounting services as permitted herein;
4.
Normal repair and maintenance expenses for the grounds and common facilities, including, but not limited to, landscaping, cleaning, repair of equipment and facilities;
5.
Management expenses, including the compensation of administrative personnel (may include the value of any manufactured home space offered as part of compensation for such services). In addition to the management expenses listed above, where the owner performs managerial or maintenance services which are uncompensated, the owner may include the reasonable cost of this owner-performed labor in operating and/or maintaining the park. In making an allowance for such services, the Commission shall require reasonable documentation of the hours utilized in performing such services and the nature and extent of the services provided. There shall be a maximum allowance of five percent of gross income for management expenses unless such a limitation would be substantially unfair in a given case. No allowance for such services shall be authorized unless a park owner documents the hours utilized in performing such services and the nature of the services provided, and the value of such services, pursuant to subsection (A)(12) of this section;
6.
Operating supplies such as janitorial supplies, gardening supplies, stationery and so forth;
7.
Insurance premiums prorated over the life of the policy;
8.
Taxes, fees and permits;
9.
The reasonable cost or expenditure for capital improvements to upgrade existing facilities or increase amenities or services, subject to subsection (A)(10) of this section, only if documented and only if the park owner has:
a.
Consulted with the home owners prior to initiating construction of the improvements, regarding the nature and purpose of the improvements and the estimated cost of the improvements,
b.
Obtained the prior written consent, of at least one home owner (co-owners count as one) from 51% of the manufactured home owner rental spaces, to include the cost of the improvement as an operating expense. Evidence of such consent and the fact it was fairly obtained must be presented at the time of filing the application seeking to include such a capital improvement expenditure as an operating expense;
10.
All expenditures for capital improvements shall be subject to the following:
a.
Any capital improvement expenditure shall be amortized over the reasonable life of the improvement or such other period as may be deemed reasonable by the Commission under the circumstances,
b.
In the event that the capital improvement expenditure is necessitated as a result of an accident, disaster or other event for which the park owner receives insurance benefits, only those capital improvement costs otherwise allowable exceeding the insurance benefits may be calculated as operating expenses,
c.
No expense for capital improvements shall be allowed if said expense is necessitated by deferred maintenance of the park as evidenced by physical deterioration and/or lack of expenditures for maintenance, or failure of park owner to obtain adequate insurance for normally covered losses,
d.
Any capital improvement expenditure which is recovered, in whole or in part, by an operating expense allowance, shall not be included as part of the capital investment upon which a determination of a just and reasonable return may be based;
11.
Operating expenses shall not include the following:
a.
All debt service expenses and rental payments made on leases of land,
b.
Depreciation,
c.
Any expense for which the park owner is reimbursed,
d.
Attorneys' fees and costs incurred in proceedings before the Commission, or in connection with legal proceedings against the Commission, or challenging this chapter,
e.
Any late charges incurred by the park owner for failure to pay any assessment fee to the City authorized by this chapter,
f.
Any debt service expense or land lease rent between related parties. For purposes of this provision related parties include persons within one degree of consanguinity, husband and wife, corporations, partnerships and trusts and other entities,
g.
Any interest expense incurred due to the withdrawal of nondebt capital from the park;
12.
All Operating Expenses Must Be Reasonable. Whenever a particular expense exceeds the normal industry or other comparable standard for the Santee area, the park owner shall bear the burden of proving the reasonableness of the expense. To the extent that the Commission finds any such expense to be unreasonable, the Commission shall adjust the expense to reflect the normal industry or other comparable standard in the Santee area. All expenditures for repair and replacement and all other major expenses shall be documented by canceled checks or invoices.
(Ord. 555 § 3, 2019)
A.
Changes in Service or Maintenance. In the event that the landlord reduces services or maintenance the rent may be adjusted by an amount proportionate to the change in value of the premises amenities or premises due to the change in services or maintenance, at the discretion of the Commission.
B.
Home Owner Application for Rent Reduction. The resident home owners in a park may apply to the Commission for a rent decrease proportionate to the reduction in services and/or maintenance in the park. The application shall be submitted on forms supplied by the Commission.
C.
Contents of Application for Rent Reduction. The application pursuant to this section shall include a designation of a "home owner representative" from the home owners association, if any, or the name of a home owner representative for the purposes of receipt of all notices, correspondence, decisions and findings of facts.
D.
No space rent adjustments allowed pursuant to Section 2.44.100(B) will take effect if the Commission finds that the park owner has reduced service or maintenance to the park.
(Ord. 555 § 3, 2019)
A.
Initiation.
1.
In order to initiate an NOI space rent ceiling adjustment, as provided in Section 2.44.100, or a special adjustment, as provided in Section 2.44.110(D) of this chapter, a manufactured home park owner must submit an application for such adjustment to the secretary of the Commission. The application shall be submitted at such time and in such form and with such supporting data as may be required by the Commission. NOI applications shall not be considered complete until the CPI figures required to calculate the adjustment are available from the Bureau of Labor Statistics, or, in the case of initial adjustments, are provided by the Santee City Manager.
2.
NOI applications shall be accompanied by an affidavit from the park owner or authorized designee declaring that copies of the application have either been personally served on each manufactured home owner (service on one adult member of a manufactured home household shall constitute service on each adult member thereof) or mailed first class postage prepaid to each eligible manufactured home within the park.
3.
The application shall be accompanied with three sets of four by 10 envelopes with first class postage affixed and pre-addressed to each manufactured home residence in the park.
4.
The secretary to the Commission shall not accept an NOI or special adjustment application for filing unless it is accompanied by both the affidavit of service or mailing and the required envelopes.
5.
The copy of each application shall not include the supporting data required by Commission, however, a schedule of such data shall be delivered to each home owner and a duplicate copy of supporting data shall be delivered to the president, or the vice president or the secretary of the home owners' association. A second duplicate copy shall be made available for inspection by any home owner in the park office.
B.
Park Inspections and Hearings on Applications for Adjustment.
1.
Upon submittal by a park owner of a complete application for a NOI, or special adjustment, the Commission, or staff, shall request an inspection of the park by the State of California to determine the park's compliance with relevant health and safety standards and lot line provisions as required under California law. If the State of California does not respond to the request for inspection within 30 days, the City of Santee shall perform the inspection.
2.
If after inspection of the park it is determined that the park complies with all health and safety requirements, lot line requirements and the park owner is otherwise entitled to an NOI or special adjustment as provided in this chapter, the Commission shall authorize an adjustment as requested in the application or as determined appropriate by the Commission. The Commission shall notify the park owner by first class mail of its determination. A copy of this notice shall be forwarded by the Commission to all residents.
3.
If after the investigation it is determined that the park owner is not in compliance with the health and safety requirements or lot line requirements of California law, the Commission shall notify the park owner of any and all conditions found at the park that are not in compliance with such requirements. If the Commission determines that the park owner is otherwise entitled to an adjustment as provided in this chapter, the Commission shall grant the adjustment to be effective only upon the park providing satisfactory evidence as required by the Commission, that all unsatisfactory conditions in the park have been remedied.
4.
No Inspection Required for Initial Permissive Adjustment. Notwithstanding any other provision of this chapter, a park owner shall be entitled to implement an initial permissive adjustment without obtaining an inspection by the State or City.
5.
Inspection May Be Required for Annual Permissive Adjustment. Notwithstanding any other provision of this chapter, if the Commission receives a request for a health and safety inspection or lot line inspection from the homeowners association, a manufactured home owner, or any manufactured home resident the Commission may require an inspection prior to the park owner implementing an annual permissive adjustment. If after the inspection it is determined that the park owner is not in compliance with State law the Commission shall allow the park owner to implement the annual adjustment only upon the park providing evidence that all unsatisfactory conditions in the park have been remedied.
C.
Notice of Hearings on Applications for NOI or Special Adjustment. The secretary shall notify the park owner, or other person designated on the park's registration, and the park home owner of the time, date and place of the hearing. Such notice shall be mailed at least 20 days prior to the scheduled hearing date. Any home owner or the homeowners association shall be entitled to participate in the hearing.
D.
Conduct of Hearings.
1.
At the time of the hearing on such an application, the Commission shall hear all offered testimony and receive all offered documentary evidence relevant to the petition.
2.
The time allotted for any hearing may be reasonably limited by the Commission. The Commission may also reasonably restrict the time allotted to any party or other witness to present evidence or testimony.
3.
All parties to such a hearing may have assistance in presenting evidence and testimony and developing their position from attorneys, experts or such other persons as may be designated by the parties.
4.
In addition to any testimony and evidence offered at the hearing by any of the parties, the Commission may consider any other relevant factors bearing upon the fair rent in the park including evidence, as determined by the Commission.
5.
A hearing hereunder may be continued for a reasonable period of time as determined by the Commission upon the consent of the parties thereto or upon a finding of good cause for such continuance made by the Commission.
6.
All hearings and deliberations of the Commission hereunder shall be open to the public.
7.
In reviewing an application for a NOI and/or special adjustment, the Commission shall ensure that the application is complete, accurate and in compliance with the provisions of this chapter including the inspection requirements of subsection B of this section. If the Commission determines that the application is complete and accurate and the requested adjustment is justified and complies with the provision of this chapter, the Commission shall grant the adjustment as requested. If the Commission determines that such an application is not complete and/or accurate, or is not justified, it shall deny the application without prejudice based on the deficiency.
8.
No NOI adjustment shall be granted unless supported by the preponderance of the evidence submitted at the hearing.
9.
No special adjustment shall be granted unless supported by clear and convincing evidence.
10.
The Commission shall render its written findings and decision on the application provided in this chapter, within 30 days from the date of the hearing. Thereafter, the clerk shall send a copy of the Commission's findings and decision to the park owner or other person designated on the park's registration and to the homeowners association and such residents as may request such findings and decision.
11.
Pursuant to its findings, the Commission shall grant such space rent ceiling adjustment as is justified thereby.
12.
Permission for any space rent adjustment granted by the Commission shall become effective upon such notice as required by the Mobile Home Residency Law.
E.
Determination of Allowable Adjustment by the Commission.
1.
The Commission shall render its written findings and decision on the application within such time period as provided by this chapter.
2.
The Commission shall grant such space rent ceiling adjustment as it determines, in its sole discretion, is appropriate based upon its findings.
3.
Any space rent ceiling adjustment granted by the Commission shall become effective in accordance with the provisions of this chapter.
F.
Hearing Fees.
1.
The City Council shall set appropriate hearing fees by resolution.
2.
A park owner submitting an application for an NOI adjustment or a special adjustment shall submit with the application a hearing fee as determined by resolution of the City Council. The application shall not be complete unless and until such fee is received by the Commission secretary. In the event the park owner is granted the NOI adjustment requested in the application, or in the event the park owner is granted any special adjustment at the fair return hearing, the park owner shall be entitled to recover such fees as a legitimate operating expense.
G.
Uniform Application Procedure.
1.
All applications for annual NOI adjustments shall be received by the Commission secretary on or before March 1st or September 1st of each year. The first annual NOI adjustment application shall occur no earlier than March 1, 1995.
2.
Applications for annual NOI adjustments that are deemed complete shall be set for hearing and be heard by the Commission no earlier than April 1st and no later than August 1st in the year the application is submitted. The decision of the Commission, with respect to any such application, shall be issued no later than 15 days following the close of the hearing and the effective date of any allowable increase shall be no earlier than January 1st of the following year, subject to the 90 day notification of rent increase pursuant to Section 798 of the California Civil Code.
3.
An application shall be deemed complete when: (a) the park is current in all registration, inspection and fee requirements; (b) the complete application has been submitted to the Commission; (c) all supporting material, as required by the Commission has been received by the Commission; and (d) the Commission has received the required hearing fee if applicable.
4.
Application for a special adjustment pursuant to Section 2.44.110(D) of this chapter may be submitted at any time after a decision on an application for a NOI adjustment. A hearing on the application for a special adjustment shall be held within 90 days from the date the complete application is received by the Commission, and the decision of the Commission issued no later than 90 days from the close of such hearings. The effective date of any allowable adjustment shall be no earlier than 90 days from the date the special adjustment is granted.
(Ord. 555 § 3, 2019)
A.
The mobile home park owner claiming an exemption based upon Civil Code Section 798.17 shall provide the following notices to persons and in the manner specified in this section.
1.
A notice which conforms to the following language and printed in bold letters of the same type size as the largest type size used in the rental agreement shall be presented to home owners as defined in Civil Code Section 798.9 and to prospective home owners at the time of presentation of a rental agreement creating a tenancy with a term greater than 12 months:
IMPORTANT NOTICE TO HOMEOWNERS AND PROSPECTIVE HOMEOWNERS REGARDING THE PROPOSED RENTAL AGREEMENT FOR _______ MOBILE HOME 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 OR MAY BE EXEMPTING THIS MOBILE HOME SPACE FROM THE PROVISIONS OF THE CITY OF SANTEE MANUFACTURED HOME FAIR PRACTICE ACT FOR THE TERM OF THIS RENTAL AGREEMENT. THE CITY OF SANTEE'S ACT AND THE STATE MOBILE HOME RESIDENCY LAW (CALIFORNIA CIVIL CODE SECTION 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 AND/OR THIS ORDINANCE, YOU HAVE A RIGHT TO BE OFFERED A RENTAL AGREEMENT FOR: (a) A TERM OF 12 MONTHS, OR (b) A LESSER PERIOD AS YOU MAY REQUEST, OR (c) A LONGER PERIOD AS YOU AND THE MOBILE HOME PARK MANAGEMENT MAY AGREE. YOU HAVE A 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 MOBILE HOME 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 SANTEE MOBILE HOME FAIR PRACTICES LAW, OR BECAUSE OF YOUR CHOICE TO ENTER INTO A RENTAL AGREEMENT WHICH IS SUBJECT TO THE PROVISIONS OF THAT LAW.
B.
The notice shall contain a place for the home owner and prospective home owner to acknowledge receipt of the notice and shall also contain an acknowledgement signed by park management that the notice has been given to the home owner or prospective home owner according to this section. A copy of the notice executed by park management shall be provided to the home owner or prospective home owner.
C.
At least 24 hours prior to execution of a rental agreement by any prospective home owner, the park owner shall refer that prospective home owner to one of the persons designated by the park's homeowner association for the purpose of reviewing the provisions of the ordinance and its application to that prospective home owner.
(Ord. 555 § 3, 2019)
A.
Refusal of Manufactured Home Owner to Pay Space Rent. A manufactured home owner may refuse to pay any space rent which is in violation of this chapter. Such a violation shall be a defense in any action brought to recover possession of a manufactured home space or to collect the illegally charged space rent.
B.
Restraining or Enjoining Violations. The City or manufactured home residents thereof, or manufactured park owners thereof, may seek relief from the appropriate court to restrain or enjoin any violation of this chapter or the rules and regulations or decisions of the Commission.
In addition, any person who demands, accepts, or retains any payment in violation of any provision of this chapter shall be liable in a civil action to the person from whom such payment is demanded, accepted, or retained for damages in the sum of three times the amount by which the payment or payments demanded, accepted or retained exceed the maximum rent which could lawfully be demanded, accepted, or retained, together with reasonable attorneys' fees and costs as determined by the court.
C.
Suspension of Provisions.
1.
The provisions of this chapter shall remain in full force and effect unless and until the space vacancy rate of all manufactured home parks regulated hereunder, except as provided below, exceeds 10%. The space vacancy rate shall be calculated by dividing the total number of rental spaces in the applicable parks into the total number of such spaces which are not occupied by manufactured homes, but are available for rent. Parks which have not been in operation for more than two years from the date of occupancy of the first manufactured home, not including manufactured homes occupied by park owners or employees thereof, shall not be included in the vacancy calculation.
2.
Upon recognition by the City Council, by resolution, that the vacancy rate exceeds 10%, the provisions of this chapter shall be suspended. The provisions shall be automatically reinstituted upon the adoption of a resolution by the City Council declaring the vacancy rate to be 10% or less.
3.
A vacancy which the park is refusing to rent shall not be counted.
D.
Home Owners Permitted to Sublet. In the event a home owner determines that because of illness or infirmity or because of loss or change of employment, it will be necessary to vacate his or her residence for a period in excess of three months, said home owner may sublet the residence. The heir or personal representative of a decedent home owner shall be entitled to sublease the decedent's manufactured home until sale.
E.
Sale of Mobile Home. A manufactured home may be subleased after it has been offered for sale to the public in good faith, for not less than three months, provided the park manager is notified in writing 30 days in advance. A manufactured home shall be deemed to have been offered for sale in good faith if offered for a price not exceeding market value as is established in writing by a knowledgeable real estate broker or appraiser. No such sublease shall be for a term for less than six months.
1.
Upon sale of a home owner's mobile home, subject to Civil Code Section 798.17 lease, the purchaser may assume all obligations under the rental agreement.
2.
Upon sale of a mobile home, the purchaser may assume all obligations under any rent stipulation entered into between tenants of the park and park management pursuant to Section 2.44.080 with no increase in space rent or other penalties.
3.
Upon sale of a mobile home, the new ceiling for space rent established by this chapter shall continue in full force and effect.
F.
Residency Requirements. Park owners may not require a resident to construct, install, replace or pay for the installation or repair of permanent improvements to the resident space/coach as a condition of residency, other than as expressly permitted by the Mobile Home Residency Law.
G.
Civil Code Section 798.17 Exemption.
1.
Rental agreements between a park owner and a homeowner which meet the criteria of Civil Code Section 798.17 are exempt from rental rate restrictions of this chapter.
2.
For all such rental agreements which expire, the last monthly rental rate charged under the rental agreement contract shall be the space rent ceiling used to calculate the annual adjustment under this chapter for that space.
3.
This chapter shall supersede any contrary provisions of a rental agreement subject to its terms.
H.
Waiver Prohibited. No provision of this chapter can be waived.
I.
Applicability. This chapter is applicable to all rental agreements now in effect or hereafter executed except those exempt under Civil Code Section 798.17.
J.
Severability. If any provision or clause of this chapter or the application thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other chapter provisions or clauses or applications thereof which can be implemented without the invalid clause or provision, or application; and to this end the provisions and clauses of this chapter are declared to be severable.
K.
Subpoenas. The City Council may issue subpoenas requiring the attendance of witnesses and/or the production of books or other documents necessary for evidence or testimony in any action or proceeding before the Commission upon request by the Commission. Said subpoenas shall be signed by the Mayor, City Attorney or his or her designated substitute and attested by the City Manager. Failure to comply with such a subpoena shall result in contempt proceedings under Government Code Sections 37106 through 37109.
L.
Violation of Ordinance Prohibited. No person, or other entity, shall own, operate or manage any manufactured home park, as defined in Section 2.44.020 in violation of any provision of this chapter. A first violation of any provision of this chapter shall constitute a misdemeanor.
M.
Anti-Discrimination Clause. It is unlawful for a manufactured park owner, or any agent or representative of the owner, to discriminate against any home owner because of the home owner's exercise of any rights under this chapter. It is also unlawful for any manufactured home park owner, or any agent or representative of the owner, to discriminate against any purchaser or prospective purchaser of a mobile home because of a purchaser's or prospective purchaser's choice to enter into a rental agreement subject to the provisions of this chapter.
N.
The City reserves its legal options to elect other legal remedies including, but not limited to, the provision that such willful violation can result in a civil fine, not to exceed $10,000.00, for each violation.
O.
Remedies. All remedies set forth in this chapter shall be cumulative and nonexclusive.
P.
The provisions of Civil Code Sections 798.17 and 798.18 are hereby extended to and made applicable to prospective purchasers of mobile homes as well as home owners from and after the effective date of this chapter. The rights extended to prospective home owners by this section include, but are not limited to, the right under Civil Code Section 798.17 to rescind rental agreements within 72 hours of execution and the requirement, as provided in Civil Code Section 798.18 that they be offered rental agreements for a term of 12 months or a lesser term if requested by them to the same extent that home owners have such a right.
Q.
The provisions of the Mobile Home Residency Law (California Civil Code Section 798) are hereby extended and made applicable to the provisions of this chapter.
(Ord. 555 § 3, 2019)
