There is presently within the city of Glendora a shortage of
spaces for the location of mobilehomes. Because of this shortage,
there is a low vacancy rate and rents have for several years risen
rapidly in some mobilehome parks causing concern among a substantial
number of city residents. Because of the high cost of moving mobilehomes,
the potential damage resulting therefrom, the requirements relating
to the installation of mobilehomes, including permits, landscaping
and site preparation, the lack of alternative home sites for mobilehome
residents and the substantial investment of mobilehome owners in such
homes, a virtual monopoly exists in the rental of mobilehome spaces,
creating a situation where park owners have unbridled discretion and
ability to exploit mobilehome park tenants. For these reasons, among
others, the city council finds and declares it necessary to protect
the owners of mobilehomes from unreasonable rent increases, while
at the same time recognizing the need of park owners to receive a
fair return on their property and rental income sufficient to cover
increases in the cost of repairs, maintenance, insurance, employee
services, additional amenities, and other costs of operation.
(Ord. 1642 § 2A, 1995)
For the purposes of this chapter, the terms set forth in this
section have the following meanings:
"Accurate"
means correct mathematically on the rent schedule form and
any supplement application material.
"Capital improvement"
means any addition or betterment made to a mobilehome park
which has a useful life of five or more years, which add to the value
of the property and appreciably prolongs its useful life, and which
may be amortized in accordance with applicable Internal Revenue Code
regulations. "Capital improvement" does not include mere repair or
replacement of existing facilities or improvements.
"City"
means the city of Glendora.
"Complete"
means rent schedule forms as required by this chapter are
filled out properly.
"Compliance"
means the submittal of rent schedule forms and other requested
material, documentation, information and responses to staff questions
to comply with this chapter.
"Consumer Price Index" or "CPI"
means the "Cost of Living Index for Urban Consumer of the
Los Angeles— Anaheim—Riverside Area" (all items) based
on the year 1982 = 100, as published by the United States Department
of Labor Bureau of Statistics, as of the twelve-month period ending
four months prior to the effective date of the proposed rent increase
(e.g., November effective date would be for twelve-month period ending
June 30th).
"Fair return" or "reasonable expense"
means that space rent permitted for occupancy of a space
or for operation and maintenance costs, or charges for capital improvements
or rehabilitation work as determined by the factors set forth in Civil
Code Section 1947.15.
"Gross income"
means the sum of the gross space rent plus other income generated
as the result of operating a mobilehome park (e.g., laundry facilities,
recreational vehicle storage, etc.) plus revenue received from the
sale of utility services (e.g., gas, water, electricity, cable TV,
refuse, etc.) where such utilities are billed individually to the
tenants by the owners.
"Mobilehome"
means a structure with dimensions larger than eight feet
by forty feet or size larger than three hundred twenty square feet
designed for human habitations, transported over streets and highways
to a permanent occupancy site, and installed on the site either with
or without a permanent foundation.
"Mobilehome park" or "park"
means a manufactured housing community as defined in Health
and Safety Code Section 18801 or an area of land in the city of Glendora
where five or more mobilehome spaces are rented or leased out for
mobilehomes used as residences. Mobilehome park does not include developments
which sell lots for mobilehomes or manufactured housing, or which
provide condominium, community apartment or stock cooperative ownership,
even if any homes in the development are rented or leased out. Mobilehome
park includes trailer park.
"Mobilehome park rent mediation committee," "mediation committee"
or "committee"
means that group selected from time to time by the affected
mobilehome park owners and affected tenants to review rent increases
as provided in this chapter. A committee convened for the purposes
set forth in this chapter shall be composed of the following membership:
(A)
Two representatives for the owners of the affected mobilehome
park, appointed by the owner or the manager of said mobilehome park;
and
(B)
Two representatives for the tenants of the affected mobilehome
park selected by all of the affected tenants through secret ballot;
and
(C)
A mediator selected by a majority of the other four members
of the mediation committee;
(D)
The mobilehome park rent review officer or his or her designee
who shall not have a vote.
"Mobilehome park rent review officer" or "officer"
means the deputy city manager or such other staff person
designated by the city manager from time to time whose duties shall
be to receive on behalf of the mobilehome park rent mediation committee
all notices filed by an owner or tenant pursuant to this chapter,
to set or conduct all hearings required to be held by the mediation
committee or him or her pursuant to this chapter, to make all determinations
required of him or her by this chapter, to act as staff liaison to
the mobilehome park rent mediation committee, to take those other
actions or assume those other duties assigned to him or her by the
mediation committee and to make all determinations required of the
officer by this chapter.
"Mobilehome tenant" or "tenant"
means any person entitled by written or oral agreement or
by sufferance to occupy a mobilehome park space to the exclusion of
others. Mobilehome tenant includes trailer park tenant.
"Operating expenses"
means those costs to operate and maintain a mobilehome park,
as defined in the rent schedule forms required by this chapter.
"Operation and maintenance"
means services provided by the mobilehome park owner related
to the use or occupancy of a mobilehome park space, including, but
not limited to, water and sewer, cable television, natural gas, electricity,
refuse removal, management and administration (including employee
salaries and fringe benefits), maintenance and repairs, supplies,
advertising, recreation facilities, laundry facilities, parking, security
services, insurance, property taxes, other governmental assessments,
and other costs reasonably attributable to the operation and maintenance
of the mobilehome park. The term "operation and maintenance" does
not include legal fees related to rent stabilization or tenant relations,
costs incurred in proceedings related to this chapter, or mortgage
payments, whether for principal or interest, or both.
"Rehabilitation work"
means work done on or in a mobilehome park in order to comply
with an order issued by the city, county or other public agency, or
to repair damage resulting from fire, earthquake or other natural
disaster.
"Rent schedule forms"
means forms, including any accompanying instructions, provided
by the city and required by this chapter to be filed by the mobilehome
park owner for a proposed rent increase.
"Space rent"
means the consideration, including any bonuses, benefits
or gratuities, demanded or received in connection with the use and
occupancy of a space in a mobilehome park, or for the services provided,
but exclusive of any amount paid by the tenant or tenants for the
use of a mobilehome or trailer or utility charges or trash charges
which are billed separately whether or not the units are individually
metered. "Space rent" does not include (a) reasonable user fees for
services actually rendered to some, but not all, of the tenants of
the park, (b) any amount paid as a result of committee-approved capital
improvement or rehabilitation work, or (c) rent paid for occupancy
of a mobilehome owned by a mobilehome park owner.
"Space"
means that portion of a mobilehome park designated for the
location of one mobilehome for the purposes of leasing said portion
by the owner to a mobilehome tenant.
"Space transfer charge"
means any one-time charge permitted by this chapter at the
time that a mobilehome in a mobilehome park or the space occupied
by such a mobilehome is vacated voluntarily, or as a result of an
eviction action, or a transfer or resale of the mobilehome; provided,
however, that a space transfer charge may not be charged when a transfer
occurs by reason of the death of a spouse, a transfer between spouses
or co-owners, a transfer to a conservator of a person and/or the estate
of the tenants, or a settlement agreement reached between spouses
upon a dissolution or separation of their marriage.
"Trailer"
means a structure with dimensions of eight feet by forty
feet or less, or a size of three hundred twenty square feet or less,
designed to be drawn by a motor vehicle and to be used for human habitation
or for carrying persons and property, including, but not limited to,
a trailer coach or a house trailer.
(Ord. 1642 § 2A, 1995)
The provisions of this chapter shall not apply to the following:
(1) Mobilehome
park spaces rented for nonresidential uses;
(2) Mobilehome
parks owned, leased, managed or operated by the United States government,
the state of California, the county of Los Angeles or the city;
(3) Mobilehome
or trailer parks wherein individual tenancies do not exceed twenty
successive days in the same or different locations within the same
mobilehome park and which do not contemplate occupancy of more than
twenty successive days by any one tenant;
(4) Mobilehome
parks which currently, or may in the future, charge less than three
hundred fifty dollars per month for space rent shall be exempt unless
the proposed increase exceeds fifteen percent of then current space
rent at the time of any proposed increase;
(5) Tenancies
covered by leases or contracts which provide for more than a month-to-month
tenancy; provided, however, that such exemption shall be only for
the term of any such lease or contract. Upon the expiration or other
termination of the term of any such lease or contract, this chapter
shall immediately be applicable to the tenancy. This exemption is
not intended to preclude the extension or commencement of any lease
or contract. Any extension of a lease or contract or commencement
of a new lease or contract by and between a park owner and a tenant
shall be exempt from this chapter;
(6) Mobilehome
parks or spaces exempt pursuant to
Civil Code Section 798.17;
(7) Rents
charged for a mobilehome owned by a mobilehome park owner.
Space rent charged to a tenant or tenants who occupy a space
in an area created in an existing mobilehome park by the installation
of additional mobilehome rental spaces is not exempted from the provisions
of this chapter.
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(Ord. 1642 § 2A, 1995)
An owner shall request that a mediation committee be convened when he or she seeks a discretionary space rent increase otherwise not based upon, or allowed by, Section
5.36.050 or
5.36.060 when he or she contends that the facts and circumstances of the particular case warrant such an increase. It is not the intent of this section to require the owner to justify space rent increases previously approved by the committee.
(1) Basis
for Determination.
(A) In order for a discretionary space rent increase to be approved, in whole or in part, it shall be the responsibility of the owner to provide sufficient supporting documentation to justify a requested increase by demonstrating that, as a result of one or more factors, the space rent increase not otherwise permitted by Section
5.36.050 or
5.36.060 is necessary to permit a fair return and sufficient rental income in accordance with the purpose and intent of this chapter. The owner shall comply with any staff request for additional documentation to permit evaluation of the requested increase.
(B) No increase in space rent shall be approved because of increased
principal, interest or other expenses resulting from:
(i) The refinancing of the affected mobilehome park;
(ii)
The sale of the mobilehome park, except for changes to property
taxes and/or other governmental assessments as a result of the sale;
(C) The mediation committee shall, with respect to a discretionary space
rent increase noticed by the owner (a) approve the increase, in whole
or in part, based upon a finding that the increase, as approved, permits
a fair return and sufficient rental income in accordance with the
purpose and intent of this chapter, or (b) deny in total the increase,
based upon a finding that an increase is not necessary for the owner
to receive a fair return and sufficient rental income in accordance
with the purpose and intent of this chapter.
(2) Procedure for Obtaining Discretionary Increase. The procedures set forth in subsections
(b) (1) through (4) of Section
5.36.060 of this chapter shall be applicable to discretionary space rent increases, except that the initial deposit fee shall be a minimum of one hundred twenty-five dollars for the first space and thirty-five dollars for each additional space.
(Ord. 1642 § 2A, 1995)
All meetings and hearings conducted by the mediation committee
pursuant to this chapter shall be conducted in accordance with the
following:
(1) Except
as authorized by state law, all meetings and hearings shall be open
to the public.
(2) All
parties to a hearing may have the assistance of an attorney, or such
other person as may be stipulated by the parties in writing, in presenting
evidence or in setting forth their position by oral or written argument.
All witnesses shall be sworn and all testimony shall be under penalty
of perjury under the laws of the state of California.
(3) In
the event that either an owner or an affected tenant or tenants shall
fail to appear at the hearing at the time and place specified in notice
thereof, the mediation committee may hear and review such evidence
as may be presented and make determinations as if all parties had
been present.
(4) All
hearings shall be tape recorded and all tapes shall be preserved for
two years, or longer if requested, in writing, by any party affected
by the hearing.
(5) Except
as otherwise provided in this chapter, the decision or determination
of the mediation committee shall be rendered in writing and shall
be final unless the affected owner or affected tenant(s) request arbitration
pursuant to Section 5.30.150.
(6) The mediation process shall in no event take longer than thirty days. If at the end of the thirty-day period, the mediation committee has been unable to reach a decision or the decision of the committee has not been ratified by the owner and sixty-six and two-thirds of the affected tenants, the rent increase shall be deemed denied and either party may seek arbitration as provided in Section
5.36.150 of this chapter.
(7) A
decision reached by the committee shall be submitted in writing to
the owner and the affected tenants, with a request to ratify or approve
the decision. The decision of the committee shall be final if, within
ten working days of written notice of the decision to the owner and
the affected tenants, it receives the approval of the park owner and
at least sixty-six and two-thirds percent of the affected tenants.
The committee shall poll the affected tenants after giving written
notice of the decision of the mediation committee, by secret ballot
which shall be tallied by the mediation committee or its designee(s).
(Ord. 1642 § 2A, 1995)
Prior to, or at the time of, agreement to rent a mobilehome
park space to a new tenant, the owner shall provide the new tenant
with a copy of this chapter, as currently in effect.
(Ord. 1642 § 2A, 1995)
A tenant may refuse to pay any increase in space rent which
is in violation of this chapter. Such refusal shall be a defense in
any action brought to recover possession of a mobilehome park space
or to collect the applicable space rent increase.
(Ord. 1642 § 2A, 1995)
Notwithstanding Section
5.36.130 of the chapter, in any action brought to recover possession of a mobilehome park space, the court may consider as grounds for denial any violation of any provision of this chapter. Further, the determination that the action was brought in retaliation for the exercise of any rights conferred by this chapter shall be grounds for denial. Any action brought within three months of the determination of a request for a space rent increase pursuant to Sections
5.36.060 through
5.36.080, inclusive, of this chapter, including a determination made as a result of a hearing by the committee pursuant to Section
5.36.050 shall be presumed to be retaliatory. This presumption affects the burden of proof and is rebuttable by the owner.
(Ord. 1642 § 2A, 1995)
If a proposed rent increase is denied by the mediation committee
or if mediation fails to reach a settlement, the owner or the affected
tenant(s) may file with the mediation committee an application for
arbitration; provided that the applying party has not filed for arbitration
previously in the immediately preceding twelve month period. Arbitration
requests and procedures shall be as follows:
(1) Application.
An application for arbitration shall be on a form provided by the
mediation committee and shall be accompanied by the payment of a fee
of two hundred dollars to cover the cost of the arbitrator. Any funds
remaining from the mediation process may be applied to this fee. Half
of any arbitration fee paid by an owner shall be charged to the tenants
if the arbitration results in a decision favorable to the owner, in
the form of a one-time pro rata pass through by the park owner to
be paid by the affected tenant(s) within sixty days of the decision
or as otherwise agreed between the owner and the affected tenant(s).
If arbitration results in a decision favorable to the tenants, the
owner shall refund half of the arbitration fee paid by the affected
tenants, if any, in the form of a pro rata share applied to the rent
of each such tenant within sixty days of the decision of the arbitrator
or at such time as the owner and the affected tenant(s) may otherwise
agree. Any surplus of the arbitration fee paid shall be returned to
the party who paid it, but in no event shall such refund be a part
of charges from the owner to the tenant or the tenants to the owner.
If the arbitration costs exceed the amount deposited for the arbitration,
the applying party shall pay the amount of those costs above the sum
already deposited within five days of the close of the hearing.
The application shall specify the address of the mobilehome
park, the space numbers for which rent is requested to be increased,
the amount of the requested rent increase and the facts supporting
the request. The application shall be made under penalty of perjury
and supporting documents shall be certified or verified as requested
by the arbitrator.
(2) Selection
of the Arbitrator. The applicant shall submit to the mediation committee
the names of three arbitrators acceptable to him or her. Those names
shall be submitted to the other affected party(ies) who may collectively
select one of the three to serve as arbitrator. In the event that
the other parties do not collectively agree to any of the names submitted,
the arbitrator shall be selected by the mediation committee.
(3) Notice.
Written notice of the request for arbitration shall be given within
ten days of the application for same and shall include: the name and
address of the arbitrator, the amount of the increase requested in
arbitration, a brief summary of the applicant's justification for
seeking arbitration and the increase or relief from the increase,
notice that any supporting documents may be inspected at City Hall,
notice of the other party's(ies') right to submit documents, written
statements or photographs relating to the application within fifteen
days of the notice, and the name and address to whom the documents
should be submitted.
(4) Records,
Receipts or Other Documents Must be Produced as Requested. The applicant
shall produce, at the request of the arbitrator, any records, receipts
or other documents which the arbitrator may deem necessary.
(5) Affected
Tenants May Provide Documents or Other Evidence Supporting Their Position.
The party(ies) affected by the arbitration other than the applicant
may provide the arbitrator with any documents or other evidence, given
under penalty of perjury and certified or verified as the arbitrator
may request, which support their opposition to the rent increase.
(6) Decision
on Completeness of Application. The arbitrator shall determine within
fourteen days after the date by which documentation must be supplied
to him or her whether the application is complete. If the arbitrator
determines that the application is not complete, the arbitrator shall
notify the applicant in writing as to what additional information
is required.
(7) Hearing
and Hearing Notice. Hearing shall be held by the arbitrator within
forty-five days of the date when the application is deemed complete.
Notice of the time, date and location of the arbitration hearing shall
be given by the mediation committee to the affected tenants and the
park owner.
(8) Hearing
Procedures. At the arbitration hearing, the applicant and the affected
tenants may offer any testimony that is deemed relevant by the arbitrator
to the requested rent increases. The applicant shall produce any records,
documents or receipt which the arbitrator deems relevant. The applicant
and the affected tenants may offer documents, written declarations,
or other written or pictorial evidence for the first time at the hearing
only if good cause is shown why such evidence was not filed prior
to the hearing. Formal rules of evidence shall not be applicable to
the hearing. The hearing may be continued from time to time as deemed
necessary by the arbitrator. Within fifteen days after the close of
the hearing, the arbitrator shall make his or her determination approving
or disapproving the rent increase (in whole or in part) for the spaces
specified in the application.
(Ord. 1642 § 2A, 1995)
If any owner demands, accepts, receives or retains any payment
of space rent in excess of the maximum permitted by this chapter,
approved by the committee or through arbitration pursuant to this
chapter, the tenant or tenants affected by such violation, individually
or by class action, may seek relief in a court of competent jurisdiction
for injunctive relief or damages or both. In any such court proceeding,
the prevailing party shall be awarded his or her reasonable attorney
fees and court costs. In its discretion, and in addition to any other
relief granted or damages awarded, the court shall be empowered to
grant to each tenant who is a party to the action or suit, civil damages
in the sum of not more than three times the total monthly space rent
demanded by the owner from each such tenant in violation of this chapter.
(Ord. 1642 § 2A, 1995)
All notices required by this chapter shall be mailed by United
States mail, postage prepaid, or personally delivered. All such notices
shall be deemed served when personally delivered or, if mailed, as
of the second day after deposit in the United States mail, postage
prepaid.
(Ord. 1642 § 2A, 1995)
Any fees established by this chapter may be changed by a resolution
adopted by the city council after hearing.
(Ord. 1642 § 2A, 1995)
If any provision of this chapter or the application thereof
to any person or circumstances is held invalid, such invalidity shall
not affect other provisions or applications, and to that end, the
provisions of this chapter are declared to be severable.
(Ord. 1642 § 2A, 1995)