Chapter 5.36 — RENT CONTROL IN MOBILE HOME PARKS

RENT CONTROL IN MOBILE HOME PARKS

• A. Mobile home spaces represent a significant portion of the affordable housing supply within the city of Cloverdale. This chapter is a comprehensive mobile home rent control ordinance intended to help preserve mobile home parks as an affordable housing option and prevent displacement of mobile home park residents, many of whom are seniors, low income or otherwise potentially vulnerable to homelessness if displaced.

• B. The purpose of this chapter is to establish an efficient method for regulating space rent increases in mobile home parks in order to protect mobile home owners from arbitrary, capricious or unreasonable rent adjustments while enabling park owners and/or operators and investors to earn a fair and reasonable return on their investment in their mobile home parks.

• C. This chapter provides space rent stabilization protection to residents of recreational vehicles occupying spaces in mobile home parks for more than nine months in recognition of the special status conferred by the recreational vehicle park occupancy laws to such long-term residencies under California Civil Code Section 799.45(b) and their similarity to mobile home tenancies.

• D. The city council intends that this chapter be interpreted and enforced fairly and equitably, in a nondiscriminatory manner, and in accordance with constitutional requirements.

• (Ord. 755-2024 § 2 (Exh. A), 2024)

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

"Administrator" shall mean the city manager of the city of Cloverdale, or the city manager's designee.

"Affected mobile home owners" means those mobile home owners whose space is not legally exempt from this chapter.

"Arbitrator" means a person who is:

1. Neither a mobile home owner nor has an interest in a mobile home park of a nature that would require disqualification under the provisions of the Political Reform Act if the person were a designated city employee;

• Has experience in analysis of financial records; and

• Meets one of the following criteria:

• a. Licensed attorney or certified public accountant in good standing who has experience in rental dispute hearings as an arbitrator or neutral fact finding; or

• b.

• Retired judge.

"Base rent" means the authorized rent pursuant to Section 5.36.040, as adjusted in accordance

with this chapter.

"Capital improvements" means those improvements that materially add to the value of the mobile home park and appreciably prolong its useful life or adapt it to new uses, and which may be amortized over the useful remaining life of the improvement to the park pursuant to the provision of the Internal Revenue Code. The term "capital improvements" does not include those costs associated with the normal maintenance and upkeep of facilities and premises which were reasonably intended to be part of consideration provided by the park for rent.

Substantial rehabilitation of the park that is necessitated as a result of the park owner's neglect, permissive waste, or deferred maintenance or acts of God shall not be regarded to be capital improvements. Proposed capital improvements claims must set forth an amortization table spreading the cost of the improvement over its proven useful life. Such costs must be separately itemized, if approved, on the monthly rent invoice. Monthly rent shall be decreased for such amortized capital improvement expenses at the end of the amortization period. Failure to do so shall be regarded to be an unauthorized increase in rent. Capital improvements must be for the primary benefit, use and enjoyment of the residents of the entire park, and costs must be allocated over all beneficiaries of the improvement.

"City" means the city of Cloverdale, California.

"Consumer price index" or "CPI" means the Consumer Price Index for All Urban Consumers, San Francisco-Oakland-Hayward, CA Area, as published by the United States Bureau of Labor Statistics of the United States Department of Labor.

"Mobile home" means a structure, designed for human habitation and for being moved on a street or highway under permit pursuant to California Vehicle Code Section 35790. "Mobile home" includes a manufactured home, as defined in California Health and Safety Code Section 18007, and a mobile home, as defined in California Health and Safety Code Section 18008, but does not include a recreational vehicle, as defined in California Civil Code Section 799.24 and California Health and Safety Code Section 18010, or a commercial coach, as defined in California Health and Safety Code Section 18001.8 except when such a vehicle has continuously remained within a mobile home park for a period in excess of nine months.

"Mobile home park" or "park" means any area of land within the city of Cloverdale where two or more mobile home spaces are rented, or held out for rent, to accommodate mobile homes used for human habitation.

"Mobile home owner" or "resident" means a person who is the owner of a mobile home and legally occupies the mobile home within a mobile home park.

"Mobile home park owner" or "park owner" means the owner or operator of a mobile home 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.

"Mobile home space" or "space" means the site within a mobile home park intended, designed or used for the location or accommodation of a mobile home and any accessory structures or appurtenances attached thereto or used in conjunction therewith. "Mobile home space" shall also include, for purposes of this chapter, rentable spaces within mobile home parks which have been occupied by a "recreational vehicle" as defined by California Civil Code Section 799.24 for a period of nine months or more.

"Party" as used in this chapter refers to any affected mobile home owner and/or owner involved in proceedings under this chapter.

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

"Rent increase" means any increase in base rent charged by an owner to a mobile home owner or offered to a prospective mobile home owner.

"Rent stabilization administration fee" means the fee established from time to time by resolution of the city council in accordance with the provisions of the chapter.

"Space rent" or "rent" means the 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 mobile home space, or in connection with the assignment of a lease, or in connection with subleasing of a space. Rent shall not include:

• Utility charges for sub-metered gas and electricity.

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

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

• Charges for laundry services.

5. Charges for the use of storage areas which the mobile home owner is not entitled to use as part of the rental of a mobile home space.

"Substantial rehabilitation" means that work done by an owner to a mobile home space or to the common areas of the mobile home park, exclusive of a capital improvement as that term is defined herein, the value of which exceeds two hundred dollars and which is performed whether to secure compliance with any state or local law or to repair damage resulting from fire, earthquake, or other casualty or natural disaster, to the extent such work is not reimbursed by insurance.

(Ord. 755-2024 § 2 (Exh. A), 2024)

This chapter is applicable to all mobile home spaces within the city of Cloverdale except for the following exemptions:

• A. Spaces that are subject to a written lease of greater than one year, and which is voluntarily entered into between a mobile home owner and park owner. At least seven days prior to the execution of the such lease, the park owner shall provide the mobile home owner with a copy of this chapter (even if a copy was previously provided to the mobile home owner when they were a prospective mobile home owner).

• B. Spaces that are not the principal residence of the mobile home owner.

• C. Any mobile home space exempt from this chapter under state or federal law. (Ord. 755-2024 § 2 (Exh. A), 2024)

City of Cloverdale, CA § 5.36.040 BUSINESS TAXES, LICENSES AND REGULATIONS

§ 5.36.060

Except as provided in this chapter, a park owner shall not demand, accept or retain rent for a mobile home space exceeding the base rent. The base rent shall be determined as follows:

• A. If a mobile home space was first rented by the mobile home owner occupying the space prior to January 1, 2024, then the base rent shall be the rent in effect on January 1, 2024, as adjusted pursuant to this chapter.

• B. If a mobile home space was first rented by the mobile home owner occupying the space on or after January 1, 2024, then the base rent shall be the rent in effect on the first date of the tenancy, as adjusted pursuant to this chapter.

• C. The base rent for a mobile home space that becomes subject to this chapter upon the expiration of an exempt lease shall be the rent in effect under the exempt lease as of the date of its expiration.

• (Ord. 755-2024 § 2 (Exh. A), 2024)

• A. A mobile home park owner shall be permitted to charge a new base rent for a mobile home space whenever a lawful space vacancy occurs. For purposes of this section, a lawful space vacancy is defined as follows:

  1. A vacancy of the mobile home space arising from the voluntary removal of a mobile home from the mobile home space by the affected mobile home resident. A removal of the mobile home from the space for the purpose of performing rehabilitation or capital improvements to the space or for the purpose of upgrading the mobile home shall not constitute a voluntary removal of the mobile home.

• B. When a new base rent is established following the vacancy of a mobile home space pursuant to this section, the park owner shall give written notice to the new affected mobile home resident of the twelve-month anniversary date for rent increases allowed under this chapter and shall give written notice to such affected resident that the space rent may be subject to stabilized rent increases pursuant to the provisions of this chapter.

• C. Upon an in-place sale of a mobile home on site to a resident-to-be or current resident, the park owner may increase the rent by an amount that does not exceed five percent of the then current base rent.

• (Ord. 755-2024 § 2 (Exh. A), 2024)

• A. An owner may increase the rent payable for a mobile home space no more than once in any twelve-month period. Such rent increase shall not exceed the lesser of:

  1. Seventy percent of the annual percentage change, as measured from December to December of successive years, in the CPI; or

  2. Three percent.

• B. If the city council adopts a rent stabilization administration fee, a park owner may choose to apportion to each mobile home space up to fifty percent of the fee attributable to the space, in addition to any increase in the space rent in accordance with subsection A of this section, subject to the following:

  1. The owner shall provide to all affected mobile home owners documentation supporting the allowable amount to be collected in order to recover a portion of rent stabilization administration fees. At a minimum such documentation shall include: billing notices or other equivalent documents from the city imposing the rent stabilization administration fee; a copy of this section which authorizes the apportionment of rent stabilization administration fees; the calculations used by the owner to apportion the cost of the allowable percentage among the affected mobile home owners.

  2. The apportionment of the rent stabilization administration fee shall not be considered part of the rent base upon which future rent increases can be made.

• C. Notice of rent increases pursuant to this section shall be provided to affected mobile home owners at least ninety days before any increase is to take effect, or such longer period of time required by state law.

• (Ord. 755-2024 § 2 (Exh. A), 2024)

• A. Whenever the owner desires to increase the rent by more than the amount authorized by Section 5.36.060, the owner shall at the same time and in the same manner serve the affected mobile home owners with a notice that sets forth all of the following information:

  1. The amount of the rent increase both in dollars and as a percentage of existing rent and documentation supporting the level of increase desired, including at a minimum: a summary of the unavoidable increases in maintenance and operating expenses; a statement of the cost, nature, amortization, and allocation among mobile home spaces of any substantial rehabilitation or capital improvement; a summary of the owner's net operating income of the preceding twenty-four months and other relevant information that supports the level of rent increase desired;

  2. The identity of all other affected mobile home owners and the spaces which they rent and a roster of residents in the park occupying recreational vehicles in place for more than nine months;

  3. The address and telephone number of the administrator and:

     • a. The fact that the resident is encouraged to contact the administrator for an explanation of the provisions of this section;

     • b. Documentation supporting the level of increase is on file with the administrator;

  4. A copy of the official petition form as prepared and provided by the administrator which initiates the process established by this section;

  5. In addition, park owner shall place on file with the administrator two copies of: documentation supporting the level of increase desired, including at a minimum: a summary of the unavoidable increases in maintenance and operating expenses; a statement of the cost, nature, amortization, and allocation among mobile home spaces of any substantial rehabilitation or capital improvement; a summary of the increased cost of the owner's debt service and the date and nature of the sale or refinancing transaction; a summary of the owner's net operating income of the preceding twentyfour months and other relevant information that supports the level of rent increase desired. These documents will be available for inspection at City Hall;

  6. If applicable, notification that the proposed rent increase exceeds three hundred percent of the change in the CPI, and that arbitration is deemed automatically required by the provisions of this chapter, without any need to file an arbitration petition. Such notices shall bear the following language: "Arbitration of the proposed increase is automatically required in this matter by operation of law." Erroneous use of this notice shall be regarded as an irrevocable stipulation to the jurisdiction of the arbitrator.

• B. An owner failing to provide an affected mobile home owner with the information, documents, and notices required by this section shall not be entitled to collect any rent increase otherwise authorized by this chapter from that mobile home owner nor to any rent increase that might otherwise be awarded by an arbitrator. Such failure by the owner shall be a defense in any action brought by the mobile home owner to recover possession of a mobile home space or to collect any rent increase from the resident.

• (Ord. 755-2024 § 2 (Exh. A), 2024)

• A. Mandatory Meet-and-Confer Meeting. Whenever the park owner desires to increase the rent by more than the amount authorized by Section 5.36.060, the residents and park owner must meet and confer with each other (or their authorized representatives) at a location in the mobile home park or otherwise accessible within the city of Cloverdale. Such meeting shall occur at least seven days, but not longer than fourteen, after the notice is sent. Written notice of the time, place and date of the meeting should be provided by the park owner to all affected mobile home owners at least seventy-two hours before the meeting. If the park owners or residents fail to agree on the time, place and date of the hearing within seventytwo hours of when the rent increase notice is sent, the park owner shall notify the administrator, who shall set the time, date, and place of the meeting.

• B. At the meeting, representatives of the parties should exchange documentary evidence that the parties in good faith then know will be used to support their respective positions in an arbitration and discuss the issues in dispute. In the case of a park owner, all financial data upon which any proposed increase is claimed shall be supplied to resident representatives at the time of the meet-and-confer meeting. The arbitrator may deny an application based on the applicant's failure to participate in good faith in the meet-and-confer process.

• C. The park owner has a duty to provide adequate information to the residents regarding the park's net operating income sufficient for a reasonably sophisticated inquiry into the financial status of the park owner's business. This will consist of true and accurate book entries or other competent evidence of gross income including, but not limited to, gross rents, interest upon security and cleaning deposits, income from ancillary services (submetering of utilities, laundry facilities, etc.) and true and accurate book entries or other competent evidence of operating expenses including, but not limited to, license fees, property taxes, utilities, insurance, management expenses, landlord performed labor, building and grounds maintenance, legal fees, auto and truck expenses, employee benefits, permits, refuse removal, ground lease payments, and similar additional expenses.

• D. If discussions between park owner and residents do not resolve the dispute between them, the residents or their representative may file with the administrator a petition for arbitration and a copy of the notice of rent increase, within thirty days after the date upon which the rent increase notice is received. The petition must be signed by individuals representing greater than fifty percent (50%) of all mobile home spaces affected by the proposed rent increase. Upon the filing of a petition, the rent increase is not effective and may not be collected until and to the extent it is awarded by an arbitrator or until the petition is abandoned. As used herein, the term "abandoned" refers to lack of prosecution of the arbitration by the mobile home residents' representative(s). An automatic arbitration based upon a three hundred percent CPI increase will not require active resident prosecution, although such prosecution will not be prohibited. The term "prosecution" refers to actively pursuing necessary steps toward preparing the residents' case for the arbitration hearing.

• E. Contents of Petition for Arbitration.

  1. The petition for arbitration shall set forth the total number of affected rented spaces in the mobile home park, shall identify the space occupied by each resident and shall state the date upon which the notice of the rent increase was received by the resident(s).

  2. After obtaining the required signatures, the resident(s) shall deliver the petition or mail it by registered or certified mail to the administrator at Cloverdale City Hall. No petition shall be accepted unless it is accompanied by the requisite number of signatures and is received in the office of the administrator within the required period set forth above. The administrator shall provide a copy of the completed petition form to both parties as soon as practicable.

• F. Within five business days of notification of the completed petition form, or upon providing the administrator with notice of a rent increase of greater than three hundred percent of CPI, the park owner shall pay the rent control arbitration fee, if one has been established by the city council, to the administrator. The amount of such fee shall be an operating expense to be considered by the arbitrator during any required arbitration.

• G. Information Questionnaire. After the administrator has accepted a petition for space rent review, the administrator may remit to the owner and residents an information questionnaire in such form as the administrator may prescribe. The completed information questionnaire must be returned to the administrator at least five working days prior to the date scheduled for hearing of the petition by the arbitrator. Copies of the completed information questionnaire shall be provided to the arbitrator and the opposing party.

• H. A park owner's failure to provide the minimum information required by this chapter or attend the hearing shall require the administrator to suspend further proceedings under this section. This determination may also be made by the arbitrator during the arbitration process. The park owner's application for a rent increase under such circumstances shall be deemed defective, without force or effect, and deemed withdrawn. Renoticing of the increase shall be required to reinitiate an application for rent increase.

• (Ord. 755-2024 § 2 (Exh. A), 2024)

• A. Upon the receipt of a valid petition pursuant to Section 5.36.080, or notification from the park owner of a rent increase requiring mandatory arbitration, the administrator shall, within ten working days, assign an arbitrator. The arbitrator may, but is not required to be associated with the Sonoma County community development commission.

• B. After the administrator assigns an arbitrator, the arbitrator shall schedule the arbitration hearing for a date at least fifteen days, but no more than thirty days, after the date of selection, unless the parties agree otherwise. The arbitrator shall notify the administrator, who shall immediately notify the park owner and affected mobile home owners of the date, time and place of the hearing and this notice shall be served either in person or by ordinary mail. The arbitration hearing shall occur within the city of Cloverdale.

• C.

• Arbitration Hearing.

1. The owner and resident(s) may appear at the hearing and offer oral and documentary evidence. Both the owner and resident(s) may designate a representative or representatives to appear for them at the hearing. The arbitrator may grant continuances as he or she deems appropriate. The burden of proving that the amount of rent increase is reasonable shall be on the owner by a preponderance of the evidence.

2. The hearing need not be conducted according to technical rules relating to evidence and witnesses. The arbitrator may establish such rules and procedures regarding the conduct of the hearing, and the introduction of evidence, as long as such rules and procedures comply with this chapter.

3. The arbitrator shall, within fourteen days of the hearing, submit by mail a written statement of decision and the reasons for the decision to the administrator, who shall forthwith distribute by mail copies of the decision to the owner and resident(s). The arbitrator shall determine the amount of rent increase, if any, which is reasonable based upon all the provisions of this section.

4. The arbitrator shall not allow more than one rent increase per park per twelve-month period.

5. The decision of the arbitrator, rendered in accordance with this section, shall be final and binding upon the owner and all affected mobile home owners. The decision of the arbitrator will be subject to the provisions of Code of Civil Procedure Section 1094.5.

6. Any party may have electronic recording equipment or a court reporter present to record and prepare a transcript of the hearing before the arbitrator; however, such equipment or reporter shall be provided at that party's own expense.

7. The arbitrator is authorized to modify the basic time periods set forth herein at their discretion to promote the purposes of this program provided a final decision is rendered within one hundred eighty days of the notice of rent increase.

8. Any procedural or jurisdictional dispute regarding the processes set forth herein may be decided by the arbitrator.

9. The legislative authority of the city council to modify this chapter or otherwise regulate rents in mobile home parks shall not be limited or abridged by any decision of the arbitrator.

   10. The administrator shall provide administrative assistance to the arbitrator as necessary.

   11. Failure of the park owner to attend the arbitration hearing, without good cause as determined by the arbitrator, shall be considered an abandonment of the rent increase.

   12. Failure of the park owner to provide any documents reasonably requested by the mobile home park owners, or their representatives as part of this arbitration hearing, may be considered by the arbitrator in making a decision.

• (Ord. 755-2024 § 2 (Exh. A), 2024)

The park owner shall be entitled to charge rents sufficient to earn a fair and reasonable return. It is presumed that a park's net operating income, as defined in Section 5.36.110, in the calendar year immediately proceeding the enactment of this chapter (2023) provided a fair and reasonable return to the park owner. Furthermore, it is presumed that net operating income adjusted by the percentage increase in the CPI since 2023 will continue to provide a fair and reasonable return to the park owner. The park owner may rebut this presumption by demonstrating unusual expenses or other circumstances during 2023, or subsequent years.

In evaluating the space increase proposed by the owner, the following factors may be considered in evaluating whether the increase in the rent proposed by the owner is justified:

• A. Beneficial increases in maintenance and operating expenses, including but not limited to the reasonable value of the owner's labor and any increased costs for services provided by a public agency, public utility, or quasi-public agency or utility;

• B. The substantial rehabilitation or the addition of capital improvements, including the reasonable value of the owner's labor, as long as such rehabilitation or improvement has been completed and is:

  1. Distinguished from ordinary repair or maintenance,

  2. For the primary benefit, use and enjoyment of the residents,

  3. Permanently fixed in place or relatively immobile and dedicated to the use of the property,

  4. Not one for which a "use fee" or other charge is imposed on residents for its use,

  5. Cost-factored and amortized over the good faith estimate of the remaining useful life of the rehabilitation or improvement, and

  6. Does not constitute maintenance of the infrastructure of gas or electrical lines within the mobile home park for which the public utility has permitted the park owner a special premium with the intent that it be used to replace or otherwise maintain the system within the mobile home park;

• C. The rental history of the space or the park of which it is a part, including:

  1. The presence or absence of past increases,

  2. The frequency of past rent increases, and

  3. The occupancy rate of the park in comparison to comparable parks in the same general area;

• D. The physical condition of the mobile home space or park of which it is a part, including the quantity and quality of maintenance and repairs performed during the preceding twelve months;

• E. Any increase or reduction of housing services since the last rent increase;

• F. Existing space rents for comparable spaces in comparable parks;

• G. Other financial information which the owner is willing to provide;

• H. Any costs incurred as a result of a natural disaster and only to the extent such costs have not been reimbursed to the owner by insurance or other sources; and

• I. Any increase or decrease in the net operating income for the park. (Ord. 755-2024 § 2 (Exh. A), 2024)

In evaluating a space rent increase sought by an owner to maintain the owner's net operating income from the park, the following definitions and provisions shall apply:

• A. "Net operating income" of a mobile home park means the gross income of the park less the operating expenses of the park.

• B. "Gross income" means the sum of the following:

  1. Gross space rents, computed as gross space rental income at one hundred percent occupancy (including any spaces exempt from this chapter); plus

  2. Other income generated as a result of the operation of the park, including, but not limited to, fees for services actually rendered; plus

  3. Revenue received by the park owner from the sale of utilities to park residents where such utilities are billed individually to the park residents by the park owner. This revenue shall equal the total cost of the utilities to the residents minus the amount paid by the park owner for such utilities to the utility provider; minus

  4. Uncollected space rents due to vacancy and bad debts to the extent that the same are beyond the park owner's control. Uncollected space rents in excess of three percent of gross space rent shall be presumed to be unreasonable unless established otherwise and shall not be included in computing gross income. Where uncollected space rents must be estimated, the average of the preceding three years' experience shall be used.

• C. "Operating expenses" means:

  • Real property taxes and assessments;

• Utility costs to the extent that they are included in space rent;

3. Management expenses including the compensation of administrative personnel, including the value of any mobile home space offered as part of compensation for such services, reasonable and necessary advertising to ensure occupancy only, legal and accounting services as permitted herein, and other managerial expenses. Management expenses are presumed to be not more than five percent of gross income, unless established otherwise;

4. Normal repair and maintenance expenses for the grounds and common facilities including but not limited to landscaping, cleaning and repair of equipment and facilities;

5. Owner-performed labor in operating or maintaining the park. In addition to the management expenses listed above, where the owner performs managerial or maintenance services which are uncompensated, the owner may include the reasonable value of such services. Owner-performed labor shall be limited to five percent of gross income unless the arbitrator finds that such a limitation would be substantially unfair in a given case. A park owner must devote substantially all of their time, that is, at least forty hours per week, to performing such managerial or maintenance services in order to warrant the full five percent credit of their labor as an operating expense. No credit for such services shall be authorized unless a park owner documents the hours utilized in performing such services and the nature of the services provided;

6. Operating supplies such as janitorial supplies, gardening supplies, stationery, and so forth;

• Insurance premiums prorated over the life of the policy;

• Other taxes, fees and permits;

9. Capital Improvement Costs. Expenditures for capital improvements to upgrade existing facilities shall be an allowable operating expense only if the park owner has:

   • a. Established upon written verification, or by other competent evidence to the satisfaction of the arbitrator, that the cost of the capital improvements provided to the park residents, for their general use, are factually correct as claimed,

   • b. Such capital improvements are wholly compensable to the park owner upon appropriate amortization of their cost, together with a reasonable return upon the capital improvement investment made by the park owner,

   • c. Any capital improvement expenses shall be amortized over the reasonable life of the improvement or such other period as may be deemed reasonable by the arbitrator under the circumstances. In the event that the capital improvement expenditure is necessitated as a result of an accident, disaster or other event for which the park owner received insurance benefits, only those capital improvement costs otherwise allowable exceeding the insurance benefits may be calculated as operating expenses.

• D. Operating expenses shall not include the following:

  1. Mortgage principal, interest payments or other debt service expenses;

  2. Depreciation;

  3. Any expense for which the park owner is reimbursed;

  4. Expenses attributable to unreasonable delays in performing necessary maintenance or repair work or the failure to complete necessary replacements;

  5. Political contributions and payments to organizations which are substantially devoted to legislative lobbying purposes;

  6. Penalties, fees or interest assessed or awarded for violation of any provision of this chapter or other provisions of law;

  7. Attorneys' fees and costs, except printing costs and documentation as required by this chapter, incurred in proceedings before an arbitrator or in connection with legal proceedings challenging the decision of an arbitrator or the validity or applicability of this chapter.

• E. All operating expenses must be reasonable. Whenever a particular expense exceeds the normal industry or other comparable standard, or increases significantly in a particular year, the park owner shall bear the burden of proving the reasonableness of the expense. To the extent that an arbitrator finds any such expense to be unreasonable, the arbitrator shall adjust the expense to reflect the normal industry or other comparable standard.

• (Ord. 755-2024 § 2 (Exh. A), 2024)

• A. During the pendency of the arbitration hearing, the park owner may implement the amount of rent increase authorized by Section 5.36.060.

• B. If a final decision by an arbitrator finds that the park owner is entitled to a rent increase above the amount otherwise allowed by Section 5.36.060, the park owner may implement such rent increase upon providing required notice to all affected mobile home park owners. Such increase may be in addition to the rent increase imposed pursuant to subsection A of this section.

• (Ord. 755-2024 § 2 (Exh. A), 2024)

Park owner shall disclose to each prospective mobile home owner the proposed base rent for the mobile home space, any rental agreement options, provide each prospective mobile home owner a copy of this chapter, and that if the prospective mobile home owner signs a lease with a term of more than one year, that lease will be exempt from rent stabilization, in addition to any notice required by the mobile home residency law or any other applicable state law. The park owner shall give the required disclosure and provide a copy of this chapter to the prospective mobile home owner at the time that the park owner, or owner's representative, receives the prospective mobile home owner's application for tenancy. The park owner shall obtain a signature of the prospective mobile home owner on the disclosure form acknowledging receipt of the disclosures. The park owner shall retain the signed disclosure form throughout the entire tenancy of the mobile home owner. This signed form shall be made available to the administrator upon reasonable written notice.

(Ord. 755-2024 § 2 (Exh. A), 2024)

Any notices required to be provided by the park owner pursuant to this chapter shall be provided in both English and Spanish. (Ord. 755-2024 § 2 (Exh. A), 2024)

It shall be unlawful for a park owner to demand, accept, receive, or retain rent in excess of the amounts authorized by this chapter. An affected mobile home owner may refuse to pay any rent in excess of the maximum rent permitted by this chapter. The fact that such unpaid rent is in excess of the maximum rent shall be a defense in any action brought to recover possession of a mobile home space for nonpayment of rent or to collect the illegal rent. (Ord. 755-2024 § 2 (Exh. A), 2024)

• A. It shall be unlawful for a park owner to evict a mobile home owner, or otherwise retaliate against a resident or prospective resident for the resident's or prospective resident's assertion or exercise of rights under this chapter in any manner, including:

  1. Threatening to bring or bringing an action to recover possession of a space.

  2. Engaging in any form of harassment that causes the mobile home owner to quit the premises.

  3. Decreasing housing services.

  4. Unlawfully increasing rent.

  5. Imposing or increasing a security deposit or other charge payable by the mobile home owner.

• B. The residents have a right to organize a residents' association without hindrance from the park owner to exercise the rights provided under this chapter.

• (Ord. 755-2024 § 2 (Exh. A), 2024)

All or any portion of the costs to administer this chapter may be collected by the imposition of an annual rent stabilization administration fee, which may be established by the city council by resolution. The fee, if any, shall be chargeable against every mobile home space in the city subject to rent stabilization. The park owner shall remit any adopted rent stabilization administration fee by September 1st of each year. The fee is intended to cover the full cost of administration and the fee assessment amount may be amended from time to time by resolution of the city council. The city council may adopt by resolution additional fees as necessary to reimburse the city for its costs to implement this chapter, and may allocate specified charges to the respective parties.

(Ord. 755-2024 § 2 (Exh. A), 2024)

Every person who violates any provision of this chapter is guilty of a misdemeanor and shall be subject to the provisions of Title 1.

(Ord. 755-2024 § 2 (Exh. A), 2024)