Chapter 99 MOBILE HOME FAIR PRACTICES

Until such times as this chapter is no longer deemed necessary by the City Council, and approved by the majority of the voters of the city, no landlord of any mobile home space covered by this chapter shall request, demand or receive a rent increase in excess of three-fourth of the increase of the cost of living as indicated in the Consumer Price Index. The increase shall be calculated from the base rent date, which is defined for the purposes of this chapter as the monthly rent charged on April 1, 1983, except if the space was vacant or not yet completed as of April 1, 1983, the base rent shall be the monthly rent charged when the unit first became occupied after April 1, 1983. No landlord shall be entitled to more than one such rent increase in any 12-month period. As used herein the term "consumer price index" shall mean that portion of the Consumer Price Index published by the United States Department of Labor for the Los Angeles-Long Beach-Anaheim Metropolitan Area, designated as “All Urban Consumer, All Items, 1967=100.” Computation of rent increases allowable by this chapter shall be in accordance to the following formula:

STEP 1. Multiply the “annual percentage change in the Consumer Price Index” by .75. The resulting figure is the allowable annual percentage rent increase, expressed in decimal figures.

STEP 2. Multiply the allowable annual percentage rent increase by the base rent. The resulting figure is the allowable monthly rent increase for the coming year, expressed in dollars.

(3)

STEP 3. To obtain the maximum allowable monthly space rent, add the allowable monthly rent increase (expressed in dollars) to the current rent. The resulting figure is the maximum allowable monthly space rent that the mobile home park owner may charge for the following 12 months on any mobile home space covered by this chapter.

Beginning 90 days after this chapter becomes effective, no landlord shall request, demand or receive any rent in excess of the base rent plus any increase allowable under this section calculated from the base rent date which is April 1, 1983.

At the landlord's option, for bookkeeping convenience, the rent (base rent plus allowable increase) may be rounded to the nearest dollar, provided such adjustment is made for all mobile home spaces included in any group of mobile home spaces.

§ 99.03 Applicability.

[Ord. 892, 4-4-1984; Ord. 896, 5-16-1984]

The provisions of this chapter shall apply to mobile home parks located within the city and to those rental spaces in a mobile home park which are located entirely with the city limits.

Nothing in this chapter shall apply to any rental increase agreed to in a lease executed subsequent to the adoption of this chapter.

§ 99.04 Extraordinary hardship increases.

If a space in a mobile home park is voluntarily vacated by the homeowner on or after the effective date of this chapter and while this chapter is in effect, the rent may be increased upon the re-rental of the space to an amount which does not exceed the average rental rate for comparable space rent in the park. If the space is not rented to one or more of the same homeowners, the rent in effect on the re-rental shall be base rent for the purpose of the Mobile Home Fair Practices Commission's review of any rental rate increases after the date of re-rental. For the purposes of this division, the vacation of a space is voluntary if it was not the result of an eviction, whether for just cause or otherwise or the result of owner's refusal to renew a periodic tenancy or lease agreement.

[Ord. 892, 4-4-1984; Ord. 896, 5-16-1984; Ord. 1298, 7-5-2001]

Fair return. It is the intent of this chapter to permit rents to be established at a level which will provide landlords with a fair return on their property, consistent with this chapter and the law and Constitution of the state.

Definitions for this section on hardship increases only.

Net operating income (NOI) equals gross income less allowable operating expenses.

Gross income equals:

Gross rents, computed as gross rental income at 100% paid occupancy, plus.

Interest from rental deposits, unless directly paid by the landlord to the tenants (interest shall be imputed at the rate of 5½% of all deposits unless such deposits actually earn greater interest), plus.

(c)

Income from laundry facilities, vending machines, amusement devices, cleaning fees or services, garage and parking fees, plus.

(d)

All other income or consideration received or receivable for or in connection with the use or occupancy of rental units and housing services,

(e)

Minus uncollected rents due to vacancy and bad debts to the extent that the same are beyond the landlord's control. Uncollected rents in excess of 3% gross rents shall be presumed to be unreasonable unless established otherwise by the landlord by clear and convincing evidence. Where uncollected rents must be estimated, the average of the preceding three years' experience shall be used, or in the discretion of the Commission, some other comparable method.

(3)

Operating expenses:

Operating expenses shall include the following:

Real property taxes.

Utility costs. Sub-metering expenses for the provision of electricity or gas to the homeowners shall not be included in calculating operating expenses for purposes of determining NOI. Each park owner shall have the burden to present to the Commission adequate financial records showing to the satisfaction of the Commission that the operating expenses do not include sub-metering expenses. If a park owner does not have sufficient financial records to show the amount of sub-metering expenses to be excluded from the 1982 base year, then such park owner shall present to the Commission and/or the Commission shall request from the park owner other data needed to show what the reasonable amount of sub-metering expenses would have been in the base year 1982. Such data may include, without limitation, financial data showing the average sub-metering expenses for other years, adjusted to reflect 1982 actual costs. After considering all available data, the Commission shall determine, in its discretion, the amount of operating expenses for the 1982 base year, after excluding the appropriate amount of sub-metering expenses.

Management fees (contracted or owner performed) of 5% or less of gross income are presumed to be reasonable. Management fees in excess of 5% of gross income are presumed to be unreasonable. Such presumption may be rebutted by clear and convincing evidence.

Other reasonable management expenses including but not limited to necessary and reasonable advertising, accounting and insurance.

Normal repair and maintenance expenses, including but not limited to painting, normal cleaning, fumigation, landscaping and repair of all standard services, including electrical, plumbing, carpentry, furnished appliances, drapes, carpets and furniture.

Owner-performed labor, which shall be compensated at the following hourly rates upon documentation of the date, time and nature of the work performed:

At the general prevailing rate of per diem wages for the Palm Springs area, for the specified type of work performed as determined and published by the Director of the Department of Industrial Relations of the state pursuant to § 1770 et seq.

If no such general prevailing rate has been determined and published then:

General maintenance - $7.00 per hour.

Skilled labor - $13.00 per hour.

Notwithstanding the above, a landlord may received greater or lesser compensation for self-labor if the landlord proves by clear and convincing evidence that the amounts set forth above are substantially unfair in a given case.

Owner-performed labor in excess of 5% of gross income shall not be allowed unless the landlord proves by clear and convincing evidence that such excess labor expenses resulted in proportionately greater services for the benefit of the homeowners.

License and registration fees required by law to the extent same are not otherwise paid by the homeowners.

Capital expenses of less than $100 per item per unit actually expended in the year of application.

The yearly amortized portion of capital expenses not included in division (B)(3)(a)8. above, computed in accordance with the following schedule; or if not itemized therein, in accordance with any useful life table utilized by the Internal Revenue Service.

Improvement	Years
Air conditioners	10
Appliances:
Dishwasher	5
Garbage disposal	2
Refrigerator	5
Stove	5
Water heater	5
Cabinets	10
Carpentry	10
Door	10
Electrical wiring	10
Elevator	20
Fencing:
Block	10
Chain	10
Wood	10
Fire alarm system	10
Fire escape (metal)	10
Flooring:
Asbestos Tile & Linoleum	5
Carpet	5
Hardwood	10
Furniture	5
Gates:
Chain link	10
Wood	10
Wrought iron	10
Heater:
Central	10
Electric	10
Gas	10
Sauna	5
Water (potable)	5
Water (therapy)	5
Water (swimming)	5
Insulation	10
Landscaping:
Planting	10
Sprinklers	10
Lighting	10
Locks	5
Plumbing:
Fixtures	10
Pipes	10
Painting:
Exterior	5
Interior	2
Pools, swimming	25
Pumps:
Pool	5
Sump	10
Paving:
Asphalt	10
Cement	10
Reslurry	3
Resurfacing	3
Plastering	10
Roofing:
Asphalt shingle	10
Built-up Tar & Gravel	5
Polyurethane	5
Tile	15
Wood shakes	7
Sauna	25
Security entry telephone intercom	10
Sewers	25
Stucco	10
Tennis courts	25
Therapy pools	25
Window:
Awnings	5
Drapes	3
Screebs	3
Shades	5

10.

Reasonable attorney's fees and costs incurred as normal and reasonable costs of doing business, including but not limited to good faith attempts to recover rents owing and good faith unlawful detainer actions not in derogation, of applicable law, to the extent same are not recovered from the homeowners.

Operating expenses shall not include:

Avoidable and unreasonable or unnecessary expenses;

Mortgage principal and interest payments;

Lease purchase payments and rent or lease payments to landlord's lessor.

Any penalties, fees or interest assessed or awarded for violation of this or any other law;

Attorney's fees and other costs incurred for proceedings before the Commission or in connection with civil actions or proceedings against the Commission;

Depreciation of the real property;

Any expense for which the landlord has been reimbursed by any security deposit, insurance settlement, judgement for damages, settlement or any other method.

(4)

Base year for purposes of this section on hardship increases only shall mean calendar year 1982.

(5)

Consumer Price Index is the same as defined in § 99.02.

Presumption of fair base year net operating income. Except as provided in division (D) of this section, it shall be presumed that the net operating income produced by a property during the base year provided a fair return on property. Landlords shall be entitled to maintain and increase their net operating income from year to year in accordance with division (G) of this section.

Rebutting the presumption.

If the Commission determines that the base year NOI yielded other than a fair return on property, it shall adjust the base year NOI accordingly. The Commission shall not make such a determination unless it has first made at least one of the following findings:

That the landlord's operating and maintenance expenses in the base year where unusually high or low. In such instances, the expenses for each of the three years last preceding the base year shall be adjusted in accordance with division (F) of this section and the average of such adjusted expenses shall be substituted in calculating the base year NOI. Such average shall be presumed to reflect reasonable average annual expenses; such presumption may be rebutted by clear and convincing evidence. In the event that the property shall not have been continuously occupied as a rental unit for three years last preceding the base year, the base year operating expenses shall be adjusted to reflect average expenses over a period of time deemed reasonable by the Commission. In determining whether the landlord's expenses were unusually high or low, the Commission shall consider:

The landlord made substantial capital improvements during the base year, which were not reflected in the rent levels on the base date.

Substantial repairs were made due to damage caused by fire, natural disaster or vandalism.

Maintenance and repair were below accepted standards so as to cause significant deterioration in the quality of housing services.

Other expenses were unreasonably high or low notwithstanding the following of prudent business practice. In making this determination, the fact that property taxes prior to 1982 may have been higher than in the base year shall not be considered.

That the rent on the base date was disproportionate due to one of the enumerated factors below. In such instances, adjustments shall be made in calculating gross rents consistent with the purposes of these standards:

The rent on the base date was established by a lease or other formal rental agreement which provided for substantially higher rent at other periods during the term of the lease.

The rent on the base date was substantially higher or lower than at other times of the year by reason of seasonal demand or seasonal variations in rent.

The rent on the base date was substantially higher or lower than preceding months by reason of premiums being charged or rebates given for reasons unique to particular units or limited to the period determining the base rent.

It shall be presumed that where net operating income is less than 50% of gross income in the base year, after making adjustments as permitted by this division (D)(1)(a) and (b), the landlord was receiving less than a fair return on property. In such a case, for purpose of determining base year net operating income, gross income hall be adjusted upward to twice the amount of adjusted base year operating expenses.

Determination of base year net operating income.

Base year net operating income shall be determined by deducting from the annualized gross income being realized during the base year 1982, the actual or adjusted operating expenses for calendar year 1982, except as provided in this division (E)(2) hereinbelow.

In the event that the landlord did not own the subject property on January 1, 1982, the operating expenses for 1982 shall be determined in accordance with one of the following:

The previous owner's actual operating expenses as defined herein; or, where petitioner has established to the satisfaction of the Commission that same are unavailable.

Actual operating expenses for the first calendar year of ownership, discounted to 1982 in accordance with § [pending inquiry].

(F)

Schedule of increase in operating expenses. Where scheduling of rent increases, or other calculations require projections of income or expenses, it shall be assumed that operating expenses, exclusive of property taxes and management fees, increase at 10% per year, the property taxes increase at 2% per year, and that management fees are 5% of gross income.

(G)

Allowable rent increases. Upon filing of an individual hardship petition by a landlord, the Commission shall permit rent increases, unless otherwise prescribed by law, such that the landlord's net operating income will be increased by 50% of the increase in the Consumer Price Index (CPI) over the base year. The increase in the CPI shall be calculated by dividing the most recently reported monthly figure at the time of close of hearing by the Commission by the monthly figure for January, 1982.

(H)

Retroactive effect. In no event shall retroactive rent increases be authorized by application of this chapter, except as permitted by this chapter, and in no event shall any rent increase be retroactive to a date preceding the filing of a petition for hardship adjustment of rent.

§ 99.05 Notices.

[Ord. 1079, 11-21-1990]

If any notice of rent increase served pursuant to this section does not state the actual dollar amount of such rent increase, a supplemental or additional notice which does state the actual dollar amount of such rent increase shall be served upon the homeowner, in the manner prescribed by law, not less than sixty days prior to the effective date of such rent increase.

Service upon a homeowner of a copy of the petition or application to such commission for a hardship adjustment of rent shall be deemed to constitute the notice of rent increase referred to in section A herein; provided, however, that the homeowner shall be entitled to at least sixty days written notice of the actual dollar amount of the rent increase.

§ 99.06 Services.

[Ord. 892, 4-4-1984; Ord. 1154, 5-18-1994]

No landlord shall reduce or eliminate any service to any mobile home space so long as this chapter is in effect, unless and until a proportionate share of the cast savings resulting from such reduction or elimination is passed on to the homeowner in the form of a decrease in space rent. If a landlord who provides services to a mobile home space in the nature of utility services, shall reduce or eliminate such service by separate metering or other lawful means of transferring payment for such services, the cost savings, if any, resulting from such reduction or elimination to be passed on to the homeowner in the form of a decrease of rent, shall be deemed to be the cost of such transferred utility service for the month of April 1, 1983. If April, 1983 is not representative of a normal or usual cost of such utility service at the time, or if either landlord or homeowner shall protest the use of the April, 1983 billing as a measure of such cost savings, then the computation of such cost savings for the period of April, 1983 through May, 1983, inclusive or such other period as the parties shall mutually agree is representative of such cost savings. Notwithstanding the foregoing, to the extent that Cal. Civil Code § 798.41 or any successor section is applicable, the amount of such reduction shall be computed pursuant to Cal. Civil Code § 798.41. Cal. Civil Code § 798.41 provides that the amount of the deduction shall be equal to the average amount charged to the park management for that utility service for that space during the 12 months immediately preceding notice of the commencement of the separate billing for that utility service.

For purposes of this section in determining cost savings to be passed on to the homeowner in the form of decreased rent, the cost of installation of separate utility meters, or similar or analogous costs to the landlord to shift the obligation for payment of utility costs to the homeowner, shall not be considered. Nothing stated herein shall be constructed to prohibit or prevent the consideration or inclusion of such costs, together with other operational costs of a landlord, in any proceedings before a duly appointed board, commission or other appointed body, authorized to hear and determine requests for hardship adjustment.

§ 99.07 Effect on local law.

[Ord. 892, 4-4-1984; Ord. 896, 5-16-1984]

This chapter shall not be construed to prohibit or preempt the City Council from enacting legislation supplementing this chapter, whether by enforcement, interpretation, or further regulation, so long as the City Council in no way diminishes any protection which this chapter affords to homeowners.

§ 99.08 Retaliation.

[Ord. 892, 4-4-1984]

No landlord shall in any way retaliate against any homeowner for the homeowner's assertion of, or exercise of any right under this chapter. Such retaliation shall be subject to suit for actual and punitive damages, injunctive relief and attorney's fees. Such retaliation shall also be an available defense in any unlawful detainer action.

§ 99.09 Waivers.

[Ord. 892, 4-4-1984; Ord. 896, 5-16-1984]

Any provisions of a lease agreement, by which the homeowner agrees to modify or waive any right granted under this chapter shall be void as contrary to public policy except as set forth in § 99.03(B). This section shall apply only to rental agreements executed on or after the effective date of this chapter.

§ 99.10 Challenges of validity.

[Ord. 892, 4-4-1984]

If any action in which the validity of this chapter or any part thereof is challenged, reasonable attorney's fees and other costs shall be awarded to the prevailing party or parties.

§ 99.11 Remedies.

[Ord. 892, 4-4-1984; Ord. 896, 5-16-1984]

If a mobile home park owner demands, accepts receives or retains any space rent payment in excess of the amounts permitted by this chapter. The homeowner may recover said sum from mobile home park owner as actual damages, together with a civil penalty of $500 per violation, and reasonable attorney's fees as determined by a court of competent jurisdiction.

In any action for the recovery of space rent, or for unlawful detainer based on nonpayment of rent, the homeowner may defend such action on the ground that the amount of space rented is in excess of the space rent allowed by this chapter. Nothing contained herein shall limit or preclude any other lawful defence, cause of action or claim by either the owner of the mobile home park or homeowner.

In any action involving the validity of any proposed or actual space rent increase, the mobile home park owner shall have the burden of proving all facts sustaining the space rent increase.

Nothing in this section is intended to limit or preclude any other unlawful defense, cause of action or claim of the mobile home park owner or homeowner.

Subchapter 2 Administration and Enforcement

Any homeowner may bring an action for injunctive relief to prevent or remedy any violation of this chapter.

§ 99.20 Mobile Home Fair Practices Commission.

[Ord. 1750, 4-15-2020]

The Mobile Home Fair Practices Commission has been established pursuant to Ordinance 892 adopted by the voters of the City of Indio on March 20, 1984. If there is any inconsistency between this § 99.20 and Ordinance 892, the provisions of Ordinance 892 shall prevail.

The Mobile Home Fair Practices Commission ("Commission") shall consist of five members who are resident electors of the city and who are neither mobile home owners nor tenants nor landlords, operators or managers. Members to the Commission shall be appointed by and serve at the pleasure of the City Council.

Any member of the Commission who is absent without being excused by the Commission from three successive regular meetings of the Commission shall be deemed to have vacated his or her Commission office.

Three members of the Commission shall constitute a quorum. Three affirmative votes are required for a decision, including all motions, orders and rulings of the Commission.

§ 99.21 Powers and duties of the Mobile Home Fair Practices Commission.

The Commission shall serve without compensation. The Commission shall have not have the authority to expend or authorize the expenditure of any public funds except with the prior express approval of the City Council. The City Council shall approve the necessary and reasonable expenditure of funds for the operation of the Commission.

[Ord. 1750, 4-15-2020]

The powers and duties of the Mobile Home Fair Practices shall be those set forth in Ordinance 892, a copy of which is on file with the Office of the City Clerk, and is incorporated herein as if set forth in full.

§ 99.22 Initiation of Commission proceeding.

[Ord. 892, 4-4-1984]

Any homeowner of a mobile home park affected by this chapter, upon payment of such filing fees as shall be duly established, may petition the Mobile Home Fair Practices Commission for an interpretation of this chapter, or for a determination whether a proposed or actual action by the landlord of such homeowner is legal, valid and within the terms of this chapter. If the Commission shall establish forms for such petitions, the petition shall be prepared and submitted upon such form. In the absence of such designated form, the petition shall contain the name, address and telephone number, if any, of the petitioner, and the name, address and telephone number, if known, of the landlord, manager or other person authorized to represent the landlord of the mobile home space, a brief statement of the facts giving rise to the request for interpretation or determination; and a statement that a copy of the petition has been personally served or mailed to the landlord, manager or other person authorize to accept and receive notices of the landlord.

Any landlord of a mobile home park affected by this chapter may, upon payment of such filing fee as shall be duly established, petition the Commission for an interpretation of this chapter, or for a determination whether a particular proposed course of action by the landlord is allowable, valid and in conformity with this chapter. The Commission may designate forms for the filing of such petitions. In the event that no such form has been designated, the petition shall be in writing, and shall contain the name, address and telephone number, if any, of the person requesting the interpretation or opinion; the name and address of each homeowner of a mobile home space owned or managed by the person requesting the interpretation or opinion, if it is intended that such interpretation or opinion affects such mobile home space; a brief statement of the facts giving rise to the request for interpretations or opinion; and a statement that a copy of such petition has been personally served upon or mailed to each such homeowner who might be affected there.

A landlord or any representative of the landlord, operator or manager of a mobile home space affected by this chapter, upon payment of such filing fee as shall be duly established, may petition the Commission for a hardship increase of the maximum rent permitted to be charged pursuant to this chapter. If the Commission shall designate a form for the filing of such petition, such petition shall be filed upon such form. If no such form shall be designated, such petition shall be in writing, verified by the applicant, and shall contain the name, address and telephone number of the applicant; the name and address of the homeowner of each mobile home space which would be affected if the petition were granted; a statement of the facts giving rise to the petition for hardship increase, in sufficient detail that if established, such facts would demonstrate the existence of a hardship upon the landlord warranting such hardship increase; a statement that a copy of the petition has been served upon or mailed to each homeowner of a mobile home park space which would be affected by the hardship increase if granted.

§ 99.23 Conduct of Commission proceedings.

Filing fees charged for individual petitions shall not be so high as to violate an individual's due process right to a hearing.

[Ord. 892, 4-4-1984]

Each party to a hearing may have assistance in presenting evidence or in setting forth by argument his position, from any attorney or such other person as may be designated by such party.

Formal rules of evidence shall not apply to Commission proceedings; however, all oral testimony offered as evidence shall be under oath.

In the event that any party shall fail to appear at the time and place set for hearing of a petition, the Commission may hear and review such evidence as may be presented, and may make such findings and decisions as shall be supported by the evidence presented.

The Commission, or designated hearing officer, shall make findings based on the evidence as to each fact relevant to the Commission's decision on the petition. The decision of the Commission shall be based upon the findings, and shall interpret this chapter; determine whether the action or proposed action of a landlord if valid, permitted and in conformity with this chapter; and/or determine whether a hardship exists, and if so, the nature and amount of relief to be granted or authorized to the landlord.

§ 99.25 Priorities, timeliness of proceedings.

Nothing in this section is intended to limit or preclude any other lawful defense, cause of action, or claim of the landlord or homeowner.

§ 99.24 Mandatory procedure.

[Ord. 892, 4-4-1984]

The proceedings of the Mobile Home Fair Practices Commission are administrative proceedings, and are mandatory. Every person, whether landlord or homeowners, is required to file a petition, and to carry proceedings from the Commission to conclusion before exercising the right to seek judicial relief. There shall be no appeal, as such, from a final determination of the Commission. A party not satisfied with such decision may then seek judicial remedy provided by this chapter or otherwise provided by law.

[Ord. 892, 4-4-1984; Ord. 896, 5-16-1984]

The Mobile Home Fair Practices Commission shall establish categories of petitions or request, and may set priorities for those categories deemed most urgent. In view of the projections provided for homeowners elsewhere in this chapter, the highest priority for the proceedings of the Commission shall be given to the category for petitions of landlord for hardship increase, and among such petitions, the highest priority shall be given to petitions based upon hardship alleged to be created by landlord's payment of utilities or other necessary services used in mobile home spaces.