Arcata Municipal Code Art. 1 General Provisions

For purposes of this Chapter, the following words, terms and phrases shall be defined as follows:

A. "Affected mobilehome owners" means those mobilehome owners whose space is not covered by a valid lease meeting the requirements of California Civil Code Section 798.17(b) of the Mobilehome Residency Law, or otherwise legally exempt from local rent stabilization regulation.

B. "Base rent" means the rent in effect for that space on July 1, 2017, as adjusted in accordance with this Chapter.

C. "Base year" means the 2017 calendar year or, if a fair return application subsequently establishes a new base rent, the calendar year preceding the year the application is made.

D. "Capital improvement" means the installation of new improvements and facilities. Capital improvements are required to be amortized over the useful life of the improvements pursuant to the provisions of this Chapter and the United States Internal Revenue Code.

E. "Capital improvement costs" means all costs reasonably and necessarily related to the planning, engineering and construction of capital improvements and shall include debt service costs, if any, incurred as a direct result of the capital improvement. Capital improvement does not include ordinary maintenance or repairs or capital replacement costs.

F. "Capital replacement" means an improvement required to maintain the common facilities and areas of the park in a decent, safe and sanitary condition or maintain the existing level of park amenities and services. A capital replacement is an expenditure as defined by the United States Internal Revenue Code which replaces, upgrades or repairs an existing improvement, such as, but not limited to, an on-site water or electrical distribution or sewage collection system, a street, a parking area, or common facility, such as a laundry, community kitchen or meeting room. If the expenditure qualifies for treatment as a capital expenditure which must be depreciated under the Internal Revenue Code, it is a capital replacement. If it can be fully deducted in one (1) year as a business expense, it does not qualify as a capital replacement.

G. "Capital replacement costs" means all costs reasonably and necessarily related to the planning, engineering and construction of capital replacement and shall include debt service costs, if any, incurred as a direct result of the capital replacement. Capital replacement does not include capital improvement costs.

H. "City Manager" means the City of Arcata City Manager or its designee.

I. "Consumer price index or CPI" means the monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. For purposes of this Chapter, the "consumer price index" is defined follows: all urban consumers, west region all items, 1982 through 1984 = one hundred (100), as published by the United States Bureau of Labor Statistics of the United States Department of Labor.

J. "Fair return application" means an application made to the City seeking to increase space rents beyond one hundred percent (100%) of the CPI to provide a fair return to the park owner.

K. "Interest allowance on amortized expenses" means the interest rate on the cost of the amortized expense equal to the "average rate" for thirty (30) year fixed rate home mortgages plus two percent (2%). The "average rate" shall be the rate Freddie Mac last published in its weekly Primary Mortgage Market Survey (PMMS) as of the date of the initial submission of the petition. In the event that this rate is no longer published, the index which is most comparable to the PMMS index shall be used.

L. "Legal expenses" means reasonable attorney’s fees and expert witness’ fees.

M. "Mobilehome Residency Law" means the California Mobilehome Residency Law codified in California Civil Code Section 798 et seq. as now enacted and hereafter amended.

N. "Mobilehome" has the meaning set forth in Section 798.3 of the Mobilehome Residency Law, which is defined as of the date of enactment of this Chapter as follows:

1. A structure designed for human habitation and for being moved on a street or highway under permit pursuant to Vehicle Code Section 35790, including a manufactured home, as defined in Health and Safety Code Section 18007, and a mobilehome, as defined in Health and Safety Code Section 18008, but, except as provided in subsection (N)(2) of this Section, does not include a recreational vehicle, as defined in Civil Code Section 799.29 and Health and Safety Code Section 18010 or a commercial coach as defined in Health and Safety Code Section 18001.8.

2. "Mobilehome" for purposes of this Chapter also includes trailers and other recreational vehicles of all types defined in Health and Safety Code Section 18010, other than motor homes, truck campers, and camping trailers, which are used for human habitation, if the occupancy criteria of either subsection (N)(2)(a) or (b) of this Section, are met:

a. The trailer or other recreational vehicle occupies a mobilehome site in the park, on November 15, 1992, under a rental agreement with a term of one (1) month or longer, and the trailer or other recreational vehicle occupied a mobilehome site in the park prior to January 1, 1991.

b. The trailer or other recreational vehicle occupies a mobilehome site in the park for nine (9) or more continuous months commencing on or after November 15, 1992.

"Mobilehome" does not include a trailer or other recreational vehicle located in a recreational vehicle park subject to Civil Code Chapter 2.6 (commencing with Section 799.20).

O. "Mobilehome owner" means a person who is the owner of a mobilehome and legally occupies the mobilehome within a mobilehome park.

P. "Mobilehome park" or "park" has the meaning set forth in Section 798.6 of the Mobilehome Residency Law, which is defined as of the date of enactment of this Chapter as any area of land within the City of Arcata where two (2) or more mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes used for human habitation.

Q. "Mobilehome space" or "space" is the site within a mobilehome park intended, designed or used for the location or accommodation of a mobilehome and any accessory structures or appurtenances attached thereto or used in conjunction therewith.

R. "Mobilehome park owner" or "park owner" means the owner or operator of a mobilehome park or an agent or representative authorized to act on said owner’s or operator’s behalf in connection with the maintenance or operation of such park.

S. "Party" means any affected mobilehome owner and/or park owner involved in proceedings under this Chapter.

T. "Prospective mobilehome owner" means a person who is in the process of negotiating a tenancy in a mobilehome park.

U. "Rent" means any consideration, including any bonus, benefit or gratuity demanded or received by a park owner for, or in connection with, the use or occupancy of a mobilehome space, or in connection with the assignment of a lease, or in connection with subleasing of the space. Rent shall not include:

1. Utility charges for charges for submetered gas and electricity.

2. Charges for water, refuse disposal, sewer service, and/or other services, which are either provided and charged to tenants solely on a cost pass-through basis and/or are regulated by state or local law.

3. Any amount paid for the use and occupancy of a mobilehome unit (as opposed to amounts paid for the use and occupancy of a mobilehome space).

4. Charges for laundry services.

5. Storage charges.

V. "Rent increase" means any increase in base rent charged by a mobilehome park owner to a mobilehome owner or offered to a prospective mobilehome owner.

W. "Rent stabilization administration fee" means the fee established by this Chapter and amended from time to time by resolution of the City Council in accordance with the provisions of this Chapter.

X. "Service reduction" means a decrease or diminution in the basic service level provided by the park occurring at any time since January 1, 2018, including but not limited to services the park owner is required to provide pursuant to:

1. California Civil Code Sections 1941.1 and 1941.2.

2. The Mobilehome Residency Law, California Civil Code Section 798 et seq.

3. The Mobilehome Parks Act, California Health and Safety Code Section 18200 et seq.

4. An express or implied agreement between the park owner and the tenant. (Ord. 1487, eff. 12/1/2017)