There is presently within the city 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 and
caused concern among a substantial number of city residents. Because
of the high cost of moving mobilehomes, the potential for 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 costs of repairs, maintenance,
insurance, employee services, additional amenities and other costs
of operation.
(Ord. 171 § 1, 1993)
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 supplemental application material.
"Capital improvement"
means any addition of betterment made to a mobilehome park
which consists of more than mere repair or replacement of existing
facilities or improvements which has a useful life of five or more
years, adds 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.
"Complete"
means rent schedule forms filed are filled out properly.
"Compliance"
means the submittal of rent schedule forms as approved by
the city, the payment of an administrative fee, as established by
resolution of the city council, for the submission of mobilehome space
rent increase applications, and other requested material, documentation,
information and responses to staff questions to comply with this chapter.
"Consumer Price Index"
means the percentage change in the Consumer Price Index for
the U.S. City Average, All Urban Consumers, All Items, for the 12
month period ending four months prior to the effective date of the
proposed rent increase (e.g., November effective date would be for
12 month period ending June 30th).
"Mobilehome"
means a structure with dimensions larger than eight feet
by 40 feet or size larger than 320 square feet designed for human
habitation, 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 an area of land in the city where two 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 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.
"Net operating income"
means gross income less operating expenses. "Gross income"
includes the sum of the gross space rent plus other income generated
as a result of operating the park (i.e., laundry facilities, recreational
vehicle storage, etc.) plus revenue received from the sale of utility
services (gas, water, electricity, cable TV, refuse, etc.) where such
utilities are billed individually to the tenants by the owners. Operating
expenses include the costs of operation and maintenance, as defined
on the rent schedule forms.
"Operation and maintenance"
means services provided by the owner related to the use or
occupancy of a mobilehome park space, including, but not limited to,
water and sewer, 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 or maintenance of the park. The term operation and
maintenance shall 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, 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 to be filed by the 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 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
(1) reasonable user fees for services actually rendered to some, but
not all, of the tenants of a park, or (2) any amount paid as a result
of board-approved capital improvements or rehabilitation work.
"Space rent occupancy change"
means any 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 resale of the mobilehome. No
space rent occupancy change shall be deemed to have occurred if an
existing tenant removes an existing mobilehome from the space that
tenant rents in a mobilehome park, in order to replace that mobilehome
with another mobilehome, to be installed on the same space.
"Trailer"
means a structure with dimensions of eight feet by 40 feet
or less, or a size of 320 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 a trailer coach or house trailer.
(Ord. 171 § 1, 1993; Ord. 242 § 1, 1998)
The provisions of this chapter shall not apply to the following:
A. Mobilehome
park spaces rented for nonresidential uses;
B. Mobilehome
parks, the construction of which began after September 1, 1982; provided,
however, that additional spaces created by the expansion of existing
parks are not exempted from the provisions of this chapter. For the
purposes of this section, "construction" means the erection of structures;
C. Mobilehome
parks owned, leased, managed or operated by the United States government,
the state, the county or the city;
D. Tenancies
which do not exceed an occupancy of 20 days and which do not contemplate
an occupancy of more than 20 days;
E. Mobilehome
parks which are occupied by less than five mobilehomes or trailers;
F. Tenancies
covered by leases or contracts which provide for more than a month-to-month
tenancy. This exemption is only for the duration of such lease or
contract. Upon the expiration or other termination of any such lease
or contract, this chapter shall immediately be applicable to the tenancy;
G. Any
mobilehome park which has entered into a contractual obligation with
the city to provide for rent stabilization within that park.
(Ord. 171 § 1, 1993; Ord. 268 § 1, 2000)
A. Compliance
with Chapter. On and after the effective date of the ordinance codified
in this chapter, it is unlawful for any owner to (1) increase any
space rent, and no increase in space rent shall be effective, unless
the increase is made in compliance with the provisions of this chapter,
or (2) fail to comply with any provision of this chapter.
B. Effect
on Leases. In any application for a space rent increase under this
chapter, the owner shall indicate which, if any, of the mobilehome
park spaces are covered by leases or contracts which provide for more
than a month-to-month tenancy, together with the expiration date of
each such lease or contract. Any space rent increase approved by the
board under this chapter shall not be applicable to spaces covered
by such leases or contracts during the terms of such leases or contracts.
Upon the expiration of each such lease or contract the space rent
contained in that lease or contract shall remain in effect until the
next rent adjustment for the particular mobilehome park is decided
by the board. This subsection is not intended to preclude the extension
or commencement of any lease or contract.
C. Effect
on Space Rent Occupancy Change.
1. Upon a space rent occupancy change that occurs on or after November 6, 1992, that results from a mobilehome in a mobilehome park being vacated voluntarily or involuntarily, leaving the mobilehome in place upon the space, the mobilehome park owner may increase the space rent in effect for that particular space at the time of the change by an amount not to exceed the lesser of 5% or the Consumer Price Index. Such an increase shall not be applied more than once in a 12 month period and not more than two times in any five year period. Nor shall such an increase constitute a space rent increase for the purpose of determining when the last space rent increase became effective under Section
5.52.050A(2) or Section
5.52.060A(1).
2. Upon a space rent occupancy change that occurs on or after July 1, 1998, that results from the complete removal of a mobilehome coach from the space it formerly occupied in a mobilehome park, that same space shall no longer be subject to the provisions of this chapter, except Section
5.52.120.
(Ord. 171 § 1, 1993; Ord. 242 § 1, 1998)
A. Basis for Determination. The procedures and fees set forth in Section
5.52.060 shall not apply to any proposed space rent increase which does not exceed the adjusted Consumer Price Index ("CPI") of the total space rent of each affected mobilehome park space, provided that:
1. The
adjusted Consumer Price Index means the full CPI up to and including
7% and 2/3 of the CPI above the 7% up to and including 18% for a maximum
total increase of fourteen point thirty-three percent (14.33%).
2. The
proposed space rent increase is to become effective no sooner than
one year from the date the last increase became effective at the particular
mobilehome park.
3. Not
less than 90 days prior to the effective date of the proposed increase,
the owner or property manager shall file with the board a rent schedule
form and supporting documentation together with a copy of the written
notice of the proposed increase and proof that the owner or property
manager has served each affected tenant, personally or by mail, with
the notice. The notice shall state: (a) the number of the space or
other means by which the space is routinely identified; (b) the proposed
rent for the space and the effective date thereof; and (c) that a
copy of the rent schedule form and supporting documentation is available
to any affected tenant, free of charge, upon request at the owner's
office in the particular mobilehome park. Mailed notice shall be deemed
served as of the second day after deposit in the U.S. mail, postage
prepaid. The rent schedule form shall show the existing rent and proposed
new maximum rent for each affected space together with the percentage
increase and shall include the Consumer Price Index together with
documentation thereof.
4. If a space rent increase exceeds subsection
A of this section, the proposed increase may not be implemented by the owner unless and until approved by the board in accordance with Section
5.52.060.
B. Procedure. The proposed rent increase shall become effective as of the date specified in the notice to affected tenants described in subsection
A of this section.
(Ord. 171 § 1, 1993; Ord. 191 § 1, 1994; Ord. 242 § 1, 1998)
A. Basis
for Determination.
1. The
proposed space rent increase shall become effective no sooner than
one year from the date the last increase became effective at the particular
mobilehome park.
2. For
purposes of determining allowable increases, the space rent shall
be divided into two components as follows:
a. Operation and Maintenance. The portion of the space rent attributable
to the cost of operation and maintenance. This component shall be
increased as necessary to cover documented increases in this component.
Increases in income from other park-related sources shall be deducted
in determining the amount of increase in costs. In the event a mobilehome
park owner who does not separately bill utilities converts from a
commonly shared metered system to each space, or when the owner initiates
a segregated charge or a separate trash or utility billing to the
space, the owner shall file a written report of such change with the
board on or before the effective date of the charge. The board shall
determine the amount to be deducted from the space rent as a result
of such separate charges or billing. Thereafter, such charges or billings
shall not be a part of space rent;
b. Remainder. The remainder of the space rent. This component may be
increased by not more than the Consumer Price Index. In no event,
however, shall the increase exceed 5%. Supporting documentation shall
be filed to justify the requested increase.
3. Calculations
of space rent increases for the particular mobilehome park, as provided
in this section, shall be based upon the consecutive 12 month period
ending four months prior to the effective date of the proposed increase.
In no event, however, shall the operation and maintenance component
for any month, or portion thereof, be used in the calculations for
more than one space rent increase.
B. Procedure.
1. Not less than 90 days prior to the effective date of the proposed increase, the owner or the property manager shall file with the board a rent schedule form and supporting documentation together with proof that the owner or property manager has served each affected tenant, personally or by mail, with written notice of the proposed increase. The written notice shall state: (a) The proposed rent and effective date thereof; and (b) that a copy of the rent schedule is available to any affected tenant, free of charge, upon request at the owner's office in the particular mobilehome park. Mailed notice shall be deemed served as of the second day after deposit in the U.S. mail, postage prepaid. The rent schedule form shall show the existing rent and proposed new maximum rent for each affected space, calculated according to subsection
A of this section, and shall include documentation supporting the requested increase in the remainder component.
2. The
owner shall deposit $1,000 as a fee to cover the costs of processing
the proposed space rent increase. Upon conclusion of such processing,
the balance of the deposited processing fees, if any, shall be refunded
to the owner. If additional costs are incurred, the owner shall be
billed for, and shall be liable for, payment of such additional costs.
3. The
board shall hear any request complying with the requirements of subdivisions
1 and 2 of this subsection not later than 45 days after receipt thereof.
At least 10 days prior to the hearing, the board shall give written
notice of the time and place set for the hearing to the owner, the
tenants' representative and any person who has filed with the city
clerk a written request to be notified. No hearing or any part thereof
may be continued beyond 20 days after the initial hearing date without
the owner's consent. If the board approves the increase as requested,
or lower than requested, the same shall take effect as noticed by
the owner or as the board may otherwise direct.
4. The
board shall make a final decision no later than 10 days after the
conclusion of the hearing. The board's decision shall be based on
the preponderance of the evidence submitted at the hearing. The owner
and all tenants requesting written notice shall be advised of the
board's decision and given a copy of the findings upon which the decision
is based. The decision of the board shall be final.
5. The
board may, with respect to:
a. The operation and maintenance component, approve or deny the increase
noticed by the owner. Approval shall be based on a finding that the
relevant portion of the rent schedule form, as originally filed by
the owner or as amended by the owner prior to the close of the hearing,
is accurate, complete and in compliance with this section. A reduction
shall be based on a finding that circumstances, as determined by the
board, justify a lesser increase than that noticed by the owner;
b. The remainder component, (i) approve the increase noticed by the
owner, 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 (ii) deny
in total the increase noticed by the owner, based upon a finding that
an increase shall not be necessary for the owner to receive a fair
return and sufficient rental income in accordance with the purpose
and intent of this chapter.
(Ord. 171 § 1, 1993; Ord. 191 § 2, 1994)
Meetings and hearings of the board shall be conducted in accordance
with the following:
A. Except
as authorized by state law, all meetings and hearings conducted by
the board shall be open to the public.
B. All
parties to a hearing may have assistance from an attorney or such
other person as may be designated by the parties in presenting evidence
or in setting forth by argument their position. All witnesses shall
be sworn in and all testimony shall be under penalty of perjury.
C. In the
event that either the owner or any interested tenant(s) should fail
to appear at the hearing at the specified time and place, the board
may hear and review such evidence as may be presented and make such
decisions as if both parties had been present.
D. All
hearings shall be tape recorded. Tapes shall be preserved for two
years, or longer if requested by any party affected by the hearing.
(Ord. 171 § 1, 1993)
Formal rules of evidence or procedure which must be followed
in court shall not apply to the board proceedings, except to the extent
that the board shall determine. No action of the board shall be held
void or invalid or be set aside by any court on the ground of the
improper admission or rejection of evidence, or by reason of any error,
irregularity, informality, neglect or omission (hereinafter called
"error") as to any matter pertaining to applications, notices, findings,
records, hearings, reports, recommendations, or any matters of procedure
whatever, unless after an examination of the entire case, including
the evidence, the court shall be of the opinion that the error complained
of was prejudicial, and that by reason of such error the party bringing
the action or suit sustained and suffered substantial injury, and
that a different result would have been probable if such error had
not occurred or existed. There shall be no presumption that error
is prejudicial or that injury was done if error is shown.
(Ord. 171 § 1, 1993)
Prior to, or at the time of, agreeing to rent or lease a mobilehome
park space to a new tenant, the owner shall provide the new tenant
with a copy of this chapter, as currently in force, along with a summary
of this chapter's key provisions and projections regarding the effect
such provisions may have on tenants. This summary shall be prepared
and provided by the city to mobilehome park owners for their distribution
to current and incoming new tenants. Within 30 days after receiving
such summary from the city, the mobilehome park owner shall provide
a copy of same to all current tenants, whether tenants are renting
or leasing space.
(Ord. 171 § 1, 1993; Ord. 242 § 1, 1998)
A tenant may refuse to pay any increase in space rent which
is in violation of this chapter. Such refusal to pay shall be a defense
in any action brought to recover possession of a mobilehome park space
or to collect the space rent increase.
(Ord. 171 § 1, 1993)
A. Hardship
Assistance Program. The city may establish, by resolution, a program
for providing hardship financial assistance to tenants of mobilehome
parks located within the city. Such resolution shall establish the
procedures for receipt and review of applications for such program.
B. Statement
from Tenant. If such a program is established, any tenant affected
by a proposed space rent increase or payments resulting from an approved
amortization scheduled (collectively "the adjustment") may file a
statement of unreasonably severe economic hardship with the city not
less than 45 days prior to the effective date of the proposed adjustment.
The statement shall be made on a form that is available from the city
and shall be processed in accordance with the procedures set forth
in the resolution.
C. Unreasonably
Severe Economic Hardship. Any tenant whose household income and monthly
housing expense meet the criteria established by the Housing Assistance
Payments Program under Section 8, existing housing provisions of the
Housing and Community Development Act of 1974 (P.L. 93-383) and the
regulations pertaining thereto, or any successor program, shall be
deemed to be suffering under unreasonably severe economic hardship.
The burden of proof in establishing any other form of unreasonably
severe economic hardship shall be on the tenant.
(Ord. 171 § 1, 1993; Ord. 242 § 1, 1998; Ord. 254 § 1, 1999)
Notwithstanding Section
5.52.130 of this 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 Section
5.52.060 or
5.52.070 of this chapter, including a determination made as a result of a petition filed with the board by a tenant pursuant to Section
5.52.050 of this chapter, shall be presumed to be retaliatory. This presumption affects the burden of proof and is rebuttable by the owner.
(Ord. 171 § 1, 1993)
If any owner demands, accepts, receives or retains any payment
of space rent in excess of the maximum approved by the board under
this chapter, the 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's
fees and court costs. In its discretion and in addition to any other
relief granted or damages awarded, the court shall be empowered to
award 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. 171 § 1, 1993)