Chino Municipal Code Ch. 2.68 Mobilehome Park Rent Regulation

A. In 1978, the residents of the City of Chino adopted the current mobilehome park rent stabilization ordinance, as Chapter 2.68 of the Chino Municipal Code. In adopting the ordinance, the residents made the following findings: (1) that there was a shortage of spaces for the location of mobilehomes resulting in a low vacancy rate and rising space rents for mobilehome owners, (2) that mobilehome owners have invested substantial sums in their mobilehomes and appurtenances, (3) that alternate sites for the relocation of mobilehomes are difficult to find, (4) that moving and installation of mobilehomes is expensive with possible damage to them, (5) that the purpose of that chapter is to protect the owners of mobilehomes from unreasonable space rent increases but recognizing the owners of mobilehome parks were entitled to receive a fair return on their investment, (6) and that another purpose of the ordinance is to encourage mobilehome owners to maintain and improve their mobilehomes and to assure that space rent increases do not deter such owners from so doing.

B. The residents of the City of Chino find that there continues to be a shortage of mobilehome spaces in the City of Chino. In the past twenty years, no new mobilehome parks have been built in the City of Chino while other housing type has continued to be constructed. Further, the population of the City of Chino has increased by twelve and one half percent from the 1990 to the 2000. Because of this shortage, there is a low vacancy rate and rents are presently rising and causing concern among a substantial number of mobilehome park residents. Because of the high cost of moving mobilehomes and related potential damage to them; the requirements relating to the installation of mobilehomes including permits, landscaping and site preparation; the lack of alternative sites for mobilehomes and the substantial investment of mobilehome owners, there is an imbalance in the supply of mobilehome park spaces compared to the demand for such spaces resulting in pressure to increase space rents.

C. Mobilehome owners are in the unique position of having made a substantial investment in a mobilehome that is situated on land that is rented or leased. Therefore, both the park owner and the mobilehome owner have a financial stake in the relationship. Additionally, because mobilehome park spaces are virtually unavailable and relocating difficult and costly, the closure of a mobilehome park or its change of use has serious consequences for mobilehome owners, who may find it impossible to relocate a comparable park.

D. The current mobilehome park rent stabilization ordinance has become difficult to administer for a number of reasons including the unwillingness of mobilehome park owners and mobilehome owners to serve as members on the mobilehome park review committee, as currently required, delays in the hearing process due to the inability to constitute the committee, an absence of more clear definitions and standards and the prohibition against amending the ordinance without a vote of the residents of the City of Chino.

E. For these reasons, among others, the residents of the City of Chino find and declare the necessity to protect mobilehome owners from unreasonable space rent increases, while at the same time recognizing the need of park owners to receive a fair return on their investment in their mobilehome parks. In addition, the residents of the City of Chino find that it is necessary to permit the city council to amend this ordinance from time to time depending on changes in circumstances that are not now foreseeable.

(Ord. 2001-07 § 2 (part), 2001.)

A. "Allowable legal expenses" means attorney's fees and costs incurred in connection with successful good-faith attempts to recover rents owing, and successful good faith unlawful detainer actions not in derogation of applicable law, to the extent such fees and costs are not recovered from homeowners. Attorney's fees and costs incurred in proceeding before the commission, or in connection with civil actions against the commission, are not allowable as operating expenses.

B. "Base rent" means either (1) for spaces not subject to a long-term lease that complies with the provisions of Civil Code section 798.17, the space rent charged on the last date on which the rent for the particular space was raised before December 31, 2000; and (2) for spaces that on or after December 31, 2000, were subject to valid long-term leases that comply with the provisions of Civil Code section 798.17, and upon the expiration of such long-term lease no extension or new long-term lease was entered into, the space rent charged on the last day of the long-term lease, whichever is later.

C. "Base year" means, for the purposes of this chapter, the calendar year 2000.

D. 1.

"Capital improvement" means the park owner's cost of constructing or installing new improvements or amenities, subject to the following limitations:

a. The improvement must have a life expectancy of five years or more, must not be treated as a repair for federal income tax purposes, and may not be deducted as an expense for federal income tax purposes.

b. Normal routine maintenance and repairs are not capital improvements.

c. Insured repairs and replacement are not capital improvements.

d. The improvements must be permanently fixed in place or relatively immobile.

2. "Capital improvement" includes construction or installation of a new amenity, including but not limited to a clubhouse; laundry facility, or other common area facilities; a swimming pool, sauna, hot tub, or other recreational amenity; streets, security gates, outdoor or common area lighting; retaining walls; or sewer, electrical, plumbing, water or television reception systems; and sprinkler systems.

E. "Commission" means the mobilehome park rent stabilization commission, as established by this chapter.

F. "CPI" means the Consumer Price Index (all items) prepared by the bureau of labor statistics for the Los Angeles-Anaheim-Riverside area relating to all urban consumers. If the method of calculating the CPI is substantially revised after the codification of the ordinance in this chapter, the method in effect upon adoption of such ordinance shall continue to be used, or the revised CPI shall be adjusted by the city manager to correspond to that method.

G. "CPI Adjustment Period" means the last available twelve-month period for which information is available from the bureau of labor statistics prior to the date on which the base rent is determined for each space, or prior to the date on which notice of a space rent increase must be provided to the mobilehome owners. The city manager shall calculate and furnish a figure constituting the CPI change for use as the basis of rent adjustments. Such figure need only be based upon available data and based on the changes in the CPI during the applicable twelve-month period. In the event that a space rent must be adjusted for a period of less than twelve months, then the change in the CPI shall be applied in the same proportion as the number of months for which the change is contemplated is a proportion of twelves.

H. "Gross income" means and includes the following:

1. Gross rent, computed as gross rental income at one hundred percent paid occupancy; plus

2. Interest from rental deposits, unless directly paid by the park owner to the homeowner; plus

3. Income from laundry facilities, cleaning fees or services, garage and parking fees attributable to mobilehome spaces; plus

4. All other income or consideration received or receivable for, or in connection with the housing services.

I. "Housing services" means services provided by the park owner related to the use or occupancy of a mobilehome 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, governmental assessments, and other costs reasonably attributable to the operation of the mobilehome park. The term "housing services" shall not include legal fees or mortgage payments, whether for principal, interest, or both.

J. "Mobilehome" means a structure designated or designed for human habitation, transported over the highways to a permanent occupancy site, and installed on the site either with or without a permanent foundation. "Mobilehome" includes a manufactured home, as defined in the Health and Safety Code, but does not include either a recreational vehicle or a commercial coach, as they are defined in the Health and Safety Code.

K. "Mobilehome owner" means any of the following persons:

1. Any person who holds legal or equitable title to a mobilehome that is located within a mobilehome park in the City of Chino;

2. Any person who is the spouse or common-law spouse of a person described in subsection (K)(1) of this section;

3. Any person who is the child, sibling, or parent of a person described in subsection (K)(1) of this section;

4. Any person who, with the permission of the park owner, is a subtenant or sublessee of a person described in subsection (K)(1) of this section.

L. "Mobilehome park" means an area of land where two or more mobilehome spaces are rented or leased for mobilehomes used as residences. "Mobilehome park" does not include developments that sell lots for mobilehomes or which provide condominium ownership of such lots, even if one or more homes in the development are rented or leased out.

M. "Mobilehome park owner" or "park owner" means the owner, lessor, operator or manager of a mobilehome park in the City of Chino.

N. "Operating expenses."

1. "Operating expenses" shall include the following:

a. Real property taxes;

b. Utility costs;

c. Management expenses (contracted or park owner-performed) including necessary and reasonable advertising, accounting, insurance and other managerial expenses, and allowable legal expenses but none in excess of five percent of gross income shall be allowed;

d. Necessary infrastructure maintenance (such as replacement of a necessary component of a system or improvement other than normal maintenance or repair) of streets, electrical, gas, plumbing, sewer or water systems, except that costs of replacement or repair incurred or required as a result of the park owner's negligence;

e. Normal repair and maintenance expenses, including painting, normal cleaning, fumigation, landscaping, and repair of all standard services, including electrical, plumbing, carpentry, furnished appliances, drapes, carpets and furniture;

f. Park owner performed labor, which shall be compensated at a reasonable hourly rate, based upon documentation being provided, showing the date, time and nature of the work performed;

g. License and registration fees required by law, to the extent such fees are not otherwise paid by mobilehome owners;

h. Capital expenses with a total cost of less than one hundred dollars per year, benefiting a space, and the amortized portion of other capital expenses otherwise allowed by regulation.

2. "Operating expenses" shall not include:

a. Avoidable and unnecessary expenses since the base year, including refinancing costs;

b. Mortgage principal and interest payments;

c. Any penalty, fees or interest assessed or awarded for violation of this or any other law;

d. Legal fees, except allowable legal expenses as defined in subsection A of this section;

e. Depreciation of the property;

f. Any expense for which the park owner has been reimbursed by any security deposit, insurance settlement, judgment for damages, settlement or any other method;

g. Land lease payments;

h. Cost of replacement or repair incurred or necessary as a result of the park owner's negligence or failure to maintain.

O. "Premium" means the amount by which the sales price of a mobilehome exceeds the fair market value of the mobilehome whenever the excess amount is paid by the purchaser of the mobilehome solely because of the space rent payable for the space on which the mobilehome is located.

P. "Space rent" means the consideration on a monthly basis, including any bonuses, benefits or gratuities, demanded or received in connection with the use and occupancy of a mobilehome space in a mobilehome park, or for housing services provided, but exclusive of:

1. Any amount paid for the use of a mobilehome;

2. Security deposits and special and limited rent increases;

3. User fees for services or facilities which may be utilized at the option of the mobilehome owners and are not included in monthly space rent; and

4. Utility charges for those mobilehome parks which bill mobilehome owners separately whether or not the mobilehomes are individually metered.

Q. "Vacancy" means any transfer of a mobilehome from one person to another, when the mobilehome remains in the same mobilehome park, or a removal of a mobilehome from a space in a mobilehome park, except that it shall not include:

1. Transfers among immediate relatives, defined as spouses, fathers or step-fathers, mothers or step-mothers, sons or step-sons, and daughters or step-daughters; brothers or step-brothers; sisters or step-sisters; or

2. Transfers between co-tenants when both co-tenants have occupied the mobilehome for at least one year; or

3. A replacement of an existing mobilehome on the same space by another mobilehome that is owned by the same person or persons.

(Ord. 2003-12 §§ 1—4, 2003: Ord. 2003-05 § 1, 2003; Ord. 2001-07 § 2 (part), 2001.)

The provisions of this chapter shall not apply to the following tenancies in mobilehome parks located in the city, except that all tenancies in mobilehome parks shall be subject to the registration provisions of sections 2.68.040 and 2.68.050:

A. Mobilehome park spaces rented for nonresidential uses;

B. Mobilehome parks managed or operated by the United States Government, the state of California, the county of San Bernardino or the City of Chino;

C. Tenancies which do not exceed an occupancy of twenty days and which do not contemplate an occupancy of more than twenty days;

D. Tenancies for which any federal or state law or regulation specifically prohibits rent regulations;

E. Tenancies subject to rental agreements exempt from local ordinances pursuant to Civil Code section 798.17; and

F. Tenancies covered by leases or rental agreements existing at the effective date of the ordinance codified in this chapter which are not exempt pursuant to subsection (E), above, but only for the duration of such leases or rental agreements. Upon the expiration or other termination of such lease or rental agreement, this chapter shall immediately be applicable to the tenancy, unless that lease or rental agreement immediately succeeded by a lease or rental agreement referred to in subsection (E) of this section.

(Ord. 2001-07 § 2 (part), 2001.)

A. Registration Required. Within sixty calendar days after the effective date of the ordinance codified in this chapter, park owners shall register all mobilehome park spaces with the director of community development. No park owners shall be eligible to receive any rent increases as provided for in this chapter unless current registration information is on file with the director of community development.

B. Initial Registration. The initial registration shall include the names, business addresses and business telephone numbers of each person or legal entity possessing an ownership interest in the park and the nature of that interest, and all lienholders (no later than thirty days after acquiring such interest); the number of mobilehome spaces within the park; the name and address of each resident; a rent schedule reflecting space rents within the park on December 31, 2000, for all spaces not exempt from this chapter pursuant to section 2.68.030; a listing of all other charges, including utilities, now included in space rent, paid by mobilehome owners and the approximate amount of each such charge; a list of all spaces exempt from this chapter pursuant to section 2.68.030 and the reason for the exemption and, for those exempt pursuant to leases or rental agreements, the date of the expiration of the lease or rental agreement and the amount of the rent; and the name and address to which all required notices and correspondence may be sent.

C. Determination of Base Rents. The city manager or his designee shall determine the base rent for each mobilehome space that is subject to rent control under the ordinance codified in this chapter. The decision of the city manager may be appealed to the commission. The decision of the commission on appeal shall be final. Any party disputing the final decision and findings of the commission may seek review thereof pursuant to sections 1094.5 and 1094.6 of the California Code of Civil Procedure.

D. Re-registration.

1. The city manager or his or her designee may require re-registration as deemed necessary.

2. The registration requirements provided in this section, or those that may be established by the city council, shall apply to all mobilehome parks and mobilehome park spaces, including those exempted from the provisions of this chapter by reason of the existence of a valid rental agreement.

(Ord. 2003-05 § 2, 2003; Ord. 2001-07 § 2 (part), 2001.)

A. Establishment of Registration Fee. At the time of initial registration or any subsequent registration, park owners shall pay to the City of Chino such registration fee for each mobilehome rental space within the park that is subject to rent control under section 798.17 of the California Civil Code as may be established by resolution of the city council (not to exceed the reasonable and necessary costs of administration of this chapter). No fee, whether an initial registration fee or a subsequent fee, shall be due or payable until it has been established by resolution of the city council. The city council may also provide that up to fifty percent of that fee may be passed through to mobilehome owners if apportioned equally among the spaces and charged in twelve equal consecutive installments. No registration fee shall be charged for mobilehome spaces that are not subject to rent control under section 798.17, but those spaces shall be registered for purposes of providing relevant information to the department.

B. Late Charge. If a park owner does not pay the fee provided for in subsection (A), above within the time period established by the city council, a late charge shall be assessed in an amount established by resolution. No late charges may be passed through to mobilehome owners.

C. Unpaid Fee. No hearing or other proceedings shall be scheduled to take place, and no rent increase will be granted or will take effect for any mobilehome park for which there are unpaid registration fees.

D. Purpose of the Fee. The registration fee provided for by this section is intended to defray the reasonable and necessary costs associated with the administration of this chapter and the regulations promulgated pursuant thereto.

E. Other Administrative Fees. The city council may set by resolution other administrative fees to cover the reasonable costs of processing various requests and appeals, as it deems necessary.

(Ord. 2003-08 § 1, 2003: Ord. 2003-07 § 1, 2003: Ord. 2003-05 § 3, 2003; Ord. 2001-07 § 2 (part), 2001.)

A. The mobilehome park rent stabilization commission is hereby created. The commission shall be comprised of three residents of the City of Chino including any existing member of the planning commission or community services, parks, and recreation commission. The members of the commission shall be appointed and removed by the city council by a majority vote of the city council. No member of the commission shall be or, at any time during the immediately five years, have been a park owner or mobilehome owner.

B. Each member of the mobilehome park rent stabilization commission shall serve a four year term.

C. The city manager shall provide all administrative staff necessary to serve the commission. The director of community development, or designee, shall serve as secretary of the commission and shall be responsible for the maintenance of all records of the commission. The secretary shall keep a record of its proceedings, which shall be open for inspection by any member of the public. The city attorney or designee shall act as legal counsel to the commission.

(Ord. 2001-07 § 4, 2001.)

(Ord. No. 2023-016, § 4, 2023.)

Within the limitations provided by law, the commission shall have the following powers and duties:

A. To receive, investigate, hold hearings on, and pass upon all issues relating to mobilehome park rent stabilization, as set forth in this chapter;

B. To make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary to carry out its duties;

C. To adjust space rents either upward or downward upon completion of its hearings and investigations; and

D. To adopt, promulgate, amend and rescind administrative rules to effectuate and clarify the purposes, policies and provisions of this chapter subject to the limitations imposed by law or by the city council.

(Ord. 2003-05 § 4, 2003; Ord. 2001-07 § 5, 2001.)

No increase in space rents in excess of the amounts permitted pursuant to section 2.68.090(A) and (B) shall be effective unless approved by the commission as set forth in this chapter.

(Ord. 2003-05 § 5, 2003; Ord. 2001-07 § 2 (part), 2001.)

A. Formula Increases. Space rents shall be increased annually by no more than sixty-six percent of the total percentage change in the CPI for the applicable CPI adjustment period as determined by the city manager pursuant to this chapter, unless a park owner chooses not to impose a formula increase on any spaces in his or her park, except that the formula increase must be imposed on all spaces in the park that are subject to rent control, or not be imposed on any spaces at all. Calculation of the one-year formula increases shall be from the 1st of January to the 31st of December of each calendar year. Formula increases for any part or all of calendar year 2001 shall be from the date of the last increase before January 1, 2001, to the anniversary date in 2001, then adjusted again for the remainder of 2001, using the last available CPI data before the date on which the determination must be made. In the event that a space rent must be adjusted for a period of less than twelve months, then the change in the CPI shall be applied in the same proportion as the number of months for which the change is contemplated is a proportion of twelve.

1. Any park owner or mobilehome owner who wishes to challenge any formula increase must do so by filing an appeal of the city manager's decision within thirty days of the decision.

2. The appeal shall be on a form prepared by the director of community development. Failure to file the appeal in a timely manner shall waive any grounds for the appeal, and the appeal shall be rejected by the commission.

3. The date of filing the appeal shall be determined by the postmark, if mailed, or by the date of delivery, if presented to the office of the director of community development in person or by messenger.

4. The appeal shall be referred to the rent stabilization commission, which shall hold a hearing in accordance with section 2.68.100(C) of this code. The decision of the commission shall be final.

B. Vacancy Increases. Notwithstanding the provisions of subsection A of this section, upon vacancy, space rent may be increased up to twenty percent of the then-current maximum allowable rent permitted by this chapter prior to the vacancy; except that if the space becomes vacant because the mobilehome owner renting that space is evicted by court order or abandons the space, the rent on the space may be increased one time to the amount of rent the park charges on spaces exempt from rent control under section 2.68.030 of this chapter. After that increase, future increases of that space's rent shall be limited to those permitted by sections 2.68.080 and 2.68.090.

C. Adjustments to Assure a Fair Return on Investment. A park owner may file an application, as required by the administrative rules adopted by the commission, to adjust the rent for one, some or all the spaces in a mobilehome park in order to achieve a fair return on the owner's investment in the park. In connection with any such adjustment, all relevant evidence shall be considered including, but not limited to the following:

1. The rent being charged by comparable mobilehome parks;

2. The amount of investment by the park owner in the mobilehome park, including without limitation, acquisition costs;

3. The rate of return on investment earned by the park owner in previous years;

4. The rate of return on investment earned by other mobilehome parks in the city and surrounding or comparable areas;

5. The mobilehome park's pattern of income and expenses over each of the past five years;

6. The quality of the services, amenities and maintenance provided at the mobilehome park and any decrease or increase in services, maintenance and amenities in the current year.

D. Special and Limited Rent and Rent Increases.

1. Government Required Services. The mobilehome owner shall pay to the park owner, on the herein described terms, no less than ninety days after the park owner has notified the mobilehome owner in writing, the increased costs to the park owner of government required services, which are to be included as part of the mobilehome owner's rent but separately listed items on the monthly statement.

a. For the purposes of this chapter, "government required services" shall be defined as services required by governmental agencies which are new or in addition to those services legally required to be provided by the park owner to mobilehome owners or to the mobilehome park on December 31, 2001.

b. Such services include fees and charges legally levied by an agency of federal, state or local government upon the park owner. Such services do not include predictable expenses for operation of the mobilehome park, such as common-area utilities expenses or expenses that maintain the safe and healthful use of mobilehome park facilities.

c. The park owner's actual out-of-pocket costs of providing government required services may be charged to the mobilehome owner upon sixty days' written notice, using the following formula: amount actually paid by the park owner, divided by the total number of spaces in the mobilehome park, divided by twelve months, equals the sum for government required services to be charged to the mobilehome owner. Notwithstanding the formula described above, only those costs of providing governmental required services in the twelve months immediately preceding the proposed charge shall be reimbursed to the park owner by the mobilehome owner in the manner herein described. The park owner shall charge the mobilehome owner only those costs for government required services that are not reimbursed to the park owner by insurance or other sources.

2. Sublease Surcharge. Notwithstanding the provisions of subsection A of this section, upon sublease of a space and/or lease of a mobilehome, the space rent may be increased up to ten percent of the rent otherwise permitted under this chapter. This rent surcharge shall be effective only for the duration of the sublease and shall be eliminated when and if the sublease is terminated. A sublease surcharge shall not become effective until twelve months after the last vacancy increase pursuant to subsection B of this section. The sublease surcharge rent amount shall be calculated separately and shall not be included in the maximum allowable rent for the purposes of calculating formula increases pursuant to subsection A of this section. The provisions of this subsection shall not apply to those spaces granted hardship exemptions pursuant to subsection E of this section for as long as the space is eligible for such exemption.

E. Sublease Hardship Exemption. Upon application, the city manager may grant a hardship exemption in connection with the sublease surcharge, which exemption shall last for a term of one year. At the expiration of any particular term of the exemption, the applicant may apply to renew the one year term by again establishing qualification for the exemption. The application and renewal application shall be in the forms provided by the city manager with a copy to the park owner and, shall include sufficient evidence to establish whether the applicant qualifies for an exemption pursuant to this section and shall be signed by the applicant under penalty of perjury. The city manager shall grant the exemption for any qualified applicant.

1. Qualification. To qualify for the sublease hardship exemption, the applicant must satisfy all of the following criteria:

a. The applicant must own a mobilehome at the applicable park, and must have occupied said mobilehome as his or her primary residence for a minimum of three years prior to applying for this exemption.

b. The applicant must present adequate evidence that he or she would qualify for the other city low or very-low income assistance program.

c. The combined value of assets owned by the applicant must not exceed one hundred fifty thousand dollars excluding the value of the mobilehome itself.

d. No person other than the applicant can declare the applicant as a dependent for purposes of federal or state taxes.

In the event that the applicant, after receiving the hardship exemption, at any time ceases to satisfy all of the foregoing criteria, from that point on, the applicant will not be qualified to receive, and shall not receive, the hardship exemption.

2. Effect of Exemption. Each applicant who qualifies for the hardship exemption shall be exempt from the sublease surcharge provided in section 2.68.090(E) of this chapter.

(Ord. 2004-12 § 1, 2004; Ord. 2003-05 § 6, 2003; Ord. 2001-07 § 2 (part), 2001.)

A. 1. In order to implement a rent increase as permitted under section 2.68.090(C) of this chapter or a rent decrease based on a reduction of housing services, the applicant must file with the director of community development an application and all supporting documents in accordance with the administrative rules adopted by the commission.

2. Where the park owner is the applicant, the park owner shall serve each affected mobilehome owner, either personally or by mail, with written notice of the proposed increase, in accordance with state law, and with notice that a request for approval of the increase is being filed with the director of community development. Where a mobilehome owner (or mobilehome owners) is the applicant, the mobilehome owner shall served the affected park owner by mail or personally at the address and to the person designated in the registration form submitted by the park owner to receive notices on behalf of the park owner. The applicant shall file proof of such service with the director of community development concurrent with the filing of the rent increase or decrease application. Copies of the application requesting the increase and all required supporting documentation shall be available to each mobilehome owner requesting same at the park owner's office at the mobilehome park.

B. If the director of community development determines that the application or supporting documentation is not complete, accurate, or not in compliance with this chapter or administrative rules of the commission, within twenty-one days of the date on which the application was filed, he or she shall give written notice to the application of the deficiencies and advised of the time in which to comply.

C. The director of community development shall set a hearing before the commission on any request complying with the requirements of this chapter no sooner than twenty days and no later than forty days after the application is accepted as complete. The director of community development shall send written notice to the park owner, who shall notice each mobilehome owner sought to be subjected to a rent increase and post such notice in a conspicuous place, of the time and place set for the hearing. If the commission approves an increase as requested, or lower than requested, the same shall take effect as noticed by the owner or as the commission may otherwise direct.

D. In the application for rent adjustment under this chapter, the park owner shall indicate which, if any, of the mobilehome spaces are covered by leases or contracts which provide for more than a month-to-month tenancy, together with expiration date of each such lease or contract. Any rent increase approved by the commission under this chapter shall not be applicable to spaces covered by such leases or contracts during the term of such leases or contracts.

E. Mobilehome owners may initiate commission review of a proposed space rent increase by filing an application with the director of community development. The application shall be in substantially such form and contain such information as may be required by regulations of the commission.

F. The party initiating the rent increase or decrease shall have the burden of proof and the burden of producing evidence on all issues material to that request.

(Ord. 2003-05 § 7, 2003; Ord. 2001-07 § 2 (part), 2001.)

A. All review hearings conducted by the commission shall be open to the public.

B. All parties to the hearing may have assistance from an attorney or such other person as may be designated by the parties in presenting evidence or arguing their position. All witnesses shall be sworn in and all testimony shall be under penalty of perjury.

C. In the event that either the park owner or the mobilehome owner(s) should fail to appear at the hearing at the specified time and place, the commission may hear and review such evidence as may be presented and make such decision as if both parties had been present.

D. All review hearings shall be tape-recorded. Tapes shall be preserved for six months, or longer, if required by either party affected by the hearing.

E. Formal rules of evidence or procedure, which must be followed in court, shall not apply to commission proceedings, except to the extent that the commission shall determine. No action of the commission hereunder shall be held void or invalid or be set aside by any court on the grounds of any 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, including but not limited to those included in this section, 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 complaining or appealing 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.

F. The commission may promulgate regulations to effect the purpose of this section and to assure fair hearings.

(Ord. 2001-07 § 2 (part), 2001.)

A. Factors for Consideration. In evaluating an application on a proposed rent increase, the commission shall consider all relevant factors including, but not limited to, changes in costs to the park owner's income from the operation of the park, utility rates, property taxes, insurance, advertising, variable mortgage interest rates, governmental assessments and fees, incidental services, employee costs, normal repair and maintenance, capital improvements, addition of amenities or service and the level of rent necessary to permit a fair return on the owner's investment in the mobilehome park.

B. Presumption of Fair Rate of Return. Except as provided in subsection C of this section, it shall be presumed that the base rent adjusted pursuant to section 2.68.090(A) and (B) of this chapter provides a fair return to the park owner.

C. Rebutting the Presumption. The commission may determine that the base rent adjusted pursuant to section 2.68.090(A) and (B) yielded other than a fair return on an owner's investment in the park and thereby adjust the base rent accordingly. In order to make such a determination, the commission must make at least one of the following factual findings:

1. The park owner's operating and maintenance expenses in the base year were unusually high or low in comparison to other years. In such instance, adjustments may be made in such expenses so the operating expenses in the base year or subsequent years reflect average expenses for the property over a reasonable period of time. The commission shall consider all relevant factors including the following:

a. The mobilehome park owner made or failed to make substantial capital improvements to the park,

b. Substantial repairs were made due to damage caused by natural disaster and vandalism,

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

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

e. It is not the intent of this chapter to reward inefficient business practices.

2. The return on the owner's investment in the park in the base year was unusually high or low in comparison to other years for that park or in comparison to other parks during the base year. For this purpose, the commission shall consider all relevant evidence.

D. No Pass Through Expenses. No single expenditure or cost of an improvement shall result in a rent increase unless the factors enumerated herein based upon the totality of the circumstances warrant a space rent increase.

E. Availability of a Fair Return of Return. Nothing in this chapter shall be construed to prevent the grant of a rent adjustment upon application by a park owner when required to permit a fair return on the owner's investment in the park. This section is a saving clause, which provides the basis for the city to receive relevant evidence, in accordance with applicable regulations, demonstrating that a park owner is not receiving a fair return on the owner's investment in the park.

(Ord. 2001-07 § 2 (part), 2001.)

A. A park owner shall bear the burden of proof and the burden of producing evidence on its application; and a mobilehome owner shall bear the burden of proof and the burden of producing evidence on its application. The decision of the commission shall be based on the preponderance of the evidence at the hearing. All parties to the hearing shall be advised of the commission's decision and given a copy of the findings upon which the decision is based.

B. Consistent with its findings, the commission may:

1. Permit the requested increase to become effective, in whole or in part.

2. Deny the increase.

3. Order a reduction in rent to a rate determined by the commission, if circumstances justify.

4. Order that the park owner reimburse the applicant(s) the full amount, or any part of the amount, of the application fee where (a) the applicant for a rent reduction was successful; (b) the park owner has not proven that the rent reduction ordered or the award of costs would deprive the park owner of a fair return as defined in this chapter; and (c) circumstances otherwise warrant the award of costs to the applicant.

C. If the commission finds that an increase that went into effect, or any portion thereof, is not justified, the park owner shall refund the amount found to be unjustified to the mobilehome owner within sixty days after the decision of the commission is issued, plus interest at the annual rate of ten percent.

D. If the commission finds that a proposed increase, or any portion thereof, of which mobilehome owners were notified previously, is justified, the commission shall order the mobilehome owner to pay that sum to the park owner, plus interest at the annual rate of ten percent. The park owner shall notify the mobilehome owner in writing of the commission's decision within ten days. The commission shall specify in its order the method of payment of the amount due, either in a lump sum or in monthly installments. If payment is to be in a lump sum, such sum shall be paid no less than ninety days after service of the written notice by the park owner on the mobilehome owner. If payment is to be in monthly installments, no installment shall be due until at least ninety days after service of the written notice by the park owner on the mobilehome owner.

E. The decision and findings of the commission shall be final although the commission may reconsider its decision upon an appropriate written request.

F. Any party disputing the final decision and findings of the commission may seek review thereof pursuant to sections 1094.5 and 1094.6 of the California Code of Civil Procedure.

(Ord. 2003-12 § 5, 2003: Ord. 2003-05 § 8, 2003; Ord. 2001-07 § 2 (part), 2001.)

A. Prior to or at the time of agreeing to rent or lease a space to a new mobilehome owner in a mobilehome park, the park owner shall provide each new mobilehome owner or prospective mobilehome owner with a copy of each of the following documents:

1. The mobilehome park rent stabilization ordinance as currently in force;

2. A current copy of the Mobilehome Residency Law (California Civil Code section 798.17; 798.21 and 798.45);

3. A sample lease with proposed terms;

4. A sample rental agreement with proposed terms, including the protected base rent as calculated under this chapter;

5. All rules and regulations of the park.

B. Prior to or at the time of agreeing to rent or lease a space to a new mobilehome owner in a mobilehome park, the park owner shall provide each new mobilehome owner or prospective mobilehome owner with the following information:

1. The rent charged to the last previous occupant of the space, if the space was subject to rent control under this chapter, along with a copy of the last rent statement payable by the previous occupant;

2. Any anticipated assessments that could affect the new or prospective mobilehome owner;

3. Any past or pending litigation in the past five years involving rent control in the mobilehome park that could affect the new or prospective mobilehome owner.

C. No park owner may require, directly or indirectly, that any mobilehome owner or prospective mobilehome owner sign a lease or rental agreement that provides that it shall be exempt from local rent control or provides for space rent in excess of that permitted by this chapter as a condition of tenancy in the park and no owner may deny a tenancy to a prospective purchaser of a mobilehome in the park on the ground that the prospective purchaser will not sign such a lease or rental agreement.

D. No park owner shall attempt to intimidate or influence a prospective mobilehome owner to sign a long-term lease without advising the prospective mobilehome owner that he or she has the option to sign a month-to-month rental agreement.

E. The park owner shall provide each prospective mobilehome owner who seeks to rent or lease a space in the mobilehome park a written notice stating that the prospective mobilehome owner is entitled to receive, and has received, the documents and information listed in subsections A and B of this section, and listing the documents and reciting the information that are required. The notice shall contain a place for the mobilehome owner to acknowledge receipt of the notice. The park owner shall sign an acknowledgment that the required notice has been given to the mobilehome owner and provide the mobilehome owner with a copy of the executed acknowledgment. If the prospective mobilehome owner signs a rental agreement or a long-term lease and takes a space in the park, the park owner shall maintain a copy of the acknowledgement and a copy of the notice signed by the mobilehome owner, as long as the mobilehome owner remains in the park.

F. If a mobilehome park offers long-term leases to prospective mobilehome owners, the park owner shall post a printed notice in its rental/leasing office, in print no smaller than forty-eight-point, advising prospective mobilehome owners that they have the option to enter into either a month-to-month rental agreement or a long-term lease.

G. All mobilehome park owners shall provide to each prospective mobilehome owner a written notice stating that he or she is not required to sign any agreement on the first visit to the mobilehome park, and that, if he or she wishes, he or she may take up to three days to review a proposed rental agreement or long-term lease, including all of the proposed terms, before signing any document. If the prospective mobilehome owner signs a rental agreement or a long-term lease and takes a space in the park, the park owner shall maintain a copy of the notice referred to in this subsection, signed by the mobilehome owner, as long as the mobilehome owner remains in the park.

(Ord. 2003-12 § 6, 2003: Ord. 2001-07 § 2 (part), 2001.)

A mobilehome owner may refuse to pay any increase in rent that is in violation of this chapter. Such refusal to pay shall be a defense in any action brought to recover possession of a mobilehome space or to collect the rent increase.

(Ord. 2001-07 § 2, 2001.)

A. It is not the purpose of the city to permit the payment of premiums to mobilehome owners upon the sale of mobilehomes that are subject to rent control under the ordinance codified in this section. Therefore, any mobilehome owner who wishes to sell his or her mobilehome must advise the owner of the mobilehome park in which the mobilehome is located within ten days of listing the mobilehome or placing it on the market, whichever is earlier. The mobilehome owner shall also advise the park owner of the listing price of the mobilehome. Upon entering an escrow for the sale of a mobilehome or prior to consummating a sale of a mobilehome, a mobilehome owner shall provide copies of the documents pertaining to the sale of the mobilehome to the mobilehome park owner.

B. Whenever a mobilehome park owner believes that a mobilehome owner is about to sell or has sold a mobilehome at a premium, the mobilehome park owner may petition the mobilehome rent stabilization commission for a hearing to determine whether the mobilehome is being or was sold at a premium.

C. The mobilehome rent stabilization commission shall hold a hearing in accordance with the provisions of this code, and in particular, section 2.68.100 and section 2.68.110. The director of community development shall notify the park owner and the mobilehome owner of the date, time, and location of the hearing. The park owner shall provide to the director of community development for this purpose the current or last known address of the mobilehome owner.

D. If the commission determines that the mobilehome was sold at a premium, the commission shall order the selling mobilehome owner to pay the premium to the park owner within a reasonable time. The decision of the commission shall be final. If the commission determines that a mobilehome was sold at a premium and that the selling mobilehome owner must pay a sum to the park owner, the park owner may file an action in the Superior Court of San Bernardino County to enforce the commission's decision. Such action must be filed within ninety days from the date on which the commission's decision is issued.

E. If the commission orders the selling mobilehome owner to pay the premium to the park owner, and the park owner cannot, for any reason, obtain the premium from the selling mobilehome owner despite good faith reasonable efforts to do so, the park owner may petition the commission for a rent increase on the space where the sold mobilehome is located sufficient to reimburse the park owner for the premium, amortized over a reasonable time to be determined by the commission. If it finds that the park owner could not obtain the premium from the selling mobilehome owner despite good faith and reasonable efforts to do so, the commission shall grant the increase. This rent increase may only be imposed if the purchaser who purchased the mobilehome from that seller is renting the space at the time the rent increase is granted. Once the premium is paid, the rent on the space shall be reduced by the amount of the increase the commission granted to reimburse the park owner for the premium.

(Ord. 2004-12 § 2, 2004; Ord. 2003-12 § 7, 2003: Ord. 2003-05 § 9, 2003.)

Notwithstanding section 2.68.160, in any action brought to recover possession of a mobilehome space, the court shall 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 one year of a petition or complaint filed with the commission by the mobilehome owner pursuant to this chapter shall be presumed to be retaliatory; this presumption affects the burden of proof, and is rebuttable by the park owner.

(Ord. 2001-07 § 2 (part), 2001.)

The city council of the City of Chino is hereby authorized and empowered to amend any provision of this chapter, in its sole discretion, without a further vote of the residents of the City of Chino and to adopt any guidelines to aid in the implementation of this chapter.

(Ord. 2001-07 § 2 (part), 2001.)

A. If any park owner demands, accepts, receives or retains any payment of rent in excess of the maximum lawful space rent, as determined under this chapter, then the mobilehome owners in such mobilehome park affected by such violation, individually or by class action, may seek relief in a court of appropriate jurisdiction for injunctive relief and damages. The prevailing party will recover costs and reasonable attorneys' fees as part of any court judgment.

B. Any person violating any provision, or failing to comply with any requirement of this chapter shall be guilty of a misdemeanor. Any person convicted of a misdemeanor under the provisions of this chapter shall be punished by a fine of not more than five hundred dollars or by imprisonment for a period of not more than six months, or by both. Each violation of any provision of this chapter, and each day during which any such violation is committed, permitted or continued, shall constitute a separate offense.

(Ord. 2001-07 § 2 (part), 2001.)

If any part or provision of this chapter is held invalid by a court of competent jurisdiction, such part or provision shall be considered a separate and distinct provision and such court holding shall not affect the validity and enforceability of the other provisions of this chapter.

(Ord. 2001-07 § 2 (part), 2001.)