Colton Municipal Code Ch. 15.48 MOBILEHOME PARK Rent STABILIZATION

This chapter May be cited as the "Mobilehome Park Rent Stabilization Ordinance of the City."

(Ord. 0-19A-89 § 1.00, 1989)

A. Mobilehome Owners have a substantial investment in a residence for which space is Rented or leased. Alternate sites for relocation of Mobilehomes are difficult to find due to the shortage of Vacant spaces, the restrictions of age, size, or style of Mobilehomes Permitted in many Parks, and related to the installation of Mobilehomes, including Permits, Landscaping and site preparation. Additionally, the cost of moving a Mobilehome is substantial and the risk of damage in moving is significant.

The result of these conditions is the creation of a captive market of Mobilehome Owners and Tenants. This immobility, in turn, contributes to the creation of a great imbalance in the bargaining relationship between Park Owners and Mobilehome Park Tenants in favor of the Park Owners.

B. Because Mobilehomes are often occupied by senior citizens, Persons on fixed income and Persons of low or moderate income, exorbitant Rent Increases fall upon these individuals with particular harshness.

C. While this chapter is designed to protect Mobilehome Owners from unreasonable Rent Increases, it recognizes the need of Mobilehome Park Owners to receive a just and reasonable return on their investment and Permits Rental increases sufficient to cover the increased cost of repairs, taxes, maintenance, insurance, upkeep and additional amenities.

D. Administration of this chapter Shall be under the general direction of the Community Development Director.

(Ord. 0-19A-89 § 1.01, 1989)

For the purpose of this chapter the Following words, terms and phrases Shall have the Following meaning:

"Base Date" means January 1, 1987, unless otherwise specified.

"Base Year" means calendar Year 1986.

"Capital Improvements" means those Improvements which Materially add to the value of Property, appreciably prolong its Useful life, or adapt it to new Uses, which are claimed by the Owner as capital expenses for Internal Revenue Code purposes and are required to be amortized over the Useful life of the Improvement pursuant to the Internal Revenue Code, and the regulations issued pursuant thereto.

"Commission" means the Rent Review Commission established under this chapter.

"Consumer Price Index" or "C.P.I." means the index known as the "Consumer Price Index for all Urban Wage Consumers: for the Los Angeles - Long Beach - Anaheim Area," (Base Year, 1967), and if published for the San Bernardino - Riverside - Ontario Area for the Year 1984, and thereafter. These documents are published by the United States Department of Labor Bureau of Labor Statistics.

"Current Year" means the last calendar Year or fiscal Year. Upon a showing of good cause, the Commission May Permit the Use of a different twelve-month period for the Current Year.

"Housing Services" means those services provided to Tenants by Mobilehome Park Owners associated with the Use or Occupancy of a Mobilehome Park space, including but not limited to repairs, insurance, maintenance, replacement, painting, light, heat, water, laundry facilities and privileges, Refuse removal, parking, recreation facilities, security services, and any other benefits, privileges or facilities included in any Rental Agreement or lease.

"Mobilehome" means a Structure designed for human habitation and for being moved on a Street or Highway under Permit pursuant to Section 35790 of the Vehicle Code. Mobilehome does not include a "Recreational Vehicle" as defined in Section 799.24 of the Civil Code or a "commercial Coach" as defined in Section 18218 of the Health and Safety Code.

"Mobilehome Owner" or "Resident" means any Person entitled to occupy a Mobilehome Dwelling Unit pursuant to ownership thereof or a Rental or lease agreement with the Owner thereof.

"Mobilehome Park" or "Park" means a Parcel or Parcels of land upon which two or more Mobilehomes sites are Rented, or held out for Rent, or held out for Use to accommodate Mobilehomes Used for human habitation.

"Mobilehome Park Owner" or "Park Owner" means the Owner, lessor, Operator, manager or Designated agent thereof of a Mobilehome Park, sometimes referred to as "Owner."

"Mobilehome Space" or "Space" means 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.

"Party" means a Park Owner or his or her Representative(s), a Mobilehome Park Tenant, a group or Mobilehome Park Tenants and/or their Representatives either singly or by means of a Committee or association.

"Rental Agreement" means an agreement between a Mobilehome Park Owner and Tenant or a prospective Tenant establishing the terms and conditions of a Tenancy in a Mobilehome Park. A lease is a Rental Agreement.

"Rent Increases" means any additional Rent demanded of or paid by a Tenant, including any reduction in Housing Services without a corresponding reduction in the moneys demanded or paid for Rent.

"Space Rent" means the consideration, including any bonuses, benefits, or gratuities demanded or received for and in connection with Use or Occupancy of a Mobilehome Space within a Mobilehome Park, or for Housing Services provided, and security deposits, but exclusive of any amounts paid for the Use of the Mobilehome as a Dwelling Unit. The Use or Occupancy of a Mobilehome Space Shall include the exercise of all rights and privileges and the Use of facilities, services and amenities accruing to the Residents thereof.

"Tenancy" means the right of a Tenant to the Use of a Mobilehome site within a Mobilehome Park on which to locate, maintain and occupy a Mobilehome, site Improvements and Accessory Structures for human habitation, including the Use of the services and facilities of the Mobilehome Park.

"Tenant" means a Mobilehome Owner, Resident, prospective Tenant who later obtains Tenancy or any other Person who has a Tenancy in a Mobilehome Park under a Rental Agreement.

"Vacancy" means the condition deemed to have occurred upon the removal of any Mobilehome from a Mobilehome Park or upon Sale of a Mobilehome in place to a third Party.

(Ord. 0-11-91 § 1, 1991: Ord. 0-19A-89 § 1.02, 1989)

The provisions of this chapter Shall not apply to the Following:

A. New Space or First Time Space Exemption. Space Rent or Space Rent Increases for new Mobilehome Spaces whether in newly constructed Parks or such spaces first Rented after the effective date of the Ordinance codified in this chapter Shall be exempt from the provisions of this chapter to the extent that those Rents would have been controlled had the spaces been previously occupied. There Shall be no prospective exemption in such circumstances, however, as to Rents that May be increased annually under this chapter after a space is first Rented. In such cases, the Base Date for purposes of determining permissible future Rent Increases Shall be the date of first Rental or conveyance.

B. Vacancy. Whenever a Vacancy occurs, the initial Rent charged to the subsequent Tenant who moves a Mobilehome onto the space left Vacant by the previous Tenant, or charged to the subsequent Owner of a Mobilehome left in place, or charged to a sublessee Tenant subleasing the Mobilehome from a Mobilehome Owner as sublessor, Shall be exempt from the Space Rent ceiling provisions under this chapter. Such Rent Shall be prospectively controlled, however, using the Rental amount charged to the new Tenant at the date of the transfer as the base Rental amount subject to increase after expiration of at least twelve Months as provided in Section 15.48.220 under this chapter, subject to the provisions of subsection C of this section. For purposes of this subsection, "Vacancy" means the condition deemed to have occurred when (1) a subsequent Tenant has the right to move his or her Mobilehome onto the Vacant space, (2) a subsequent Owner of a Mobilehome left in place has the right to move into the Mobilehome, or (3) a sublessee Tenant has the right to move into the Mobilehome. Notwithstanding the provisions of this subsection, the exemption provided herein Shall not apply in the case of a sublease if the exemption would abrogate either a contractual relationship between the Mobilehome Owner and the Mobilehome Park Owner or an interest between the Mobilehome Owner and the Mobilehome Park Owner protected by the Contract Clauses of the United States and California Constitutions.

C. Space Rent Agreement Exemption. Any Rental Agreement in excess of twelve Months' duration which also meets all criteria specified by Section 798.17 of the California Civil Code, including, but not limited to, the Tenant notification requirement within the first paragraph of such Rental Agreement, Shall be exempt from the Space Rent ceiling provisions of this chapter, but only during the term of such Rental Agreement or one or more uninterrupted, continuous extensions thereof. If such Rental Agreement is not extended and no new Rental Agreement in excess of twelve Months' duration is entered into, then the last Rental rate charged for the space under such previous exempt Rental Agreement Shall be the base Rent for purposes of this chapter.

D. Any lease or other Rental Agreement obligations between any existing Tenant and a Park Owner at the time a Vacancy occurs Shall remain the obligation of the existing Tenant unless such obligations are specifically and voluntarily assumed by any prospective Tenant.

(Ord. 0-23-01 § 1, 2002; Ord. 0-12-98 § 1, 1998; Ord. 0-18-92 §§ 1, 2, 1992; Ord. 0-19A-89 § 1.03, 1989)

The City Council Shall review the provisions of this chapter one Year Following the date of adoption thereof, and at any other time deemed appropriate, in order to consider the Following:

A. Whether Rent control continues to be necessary to protect the public health, safety, and welfare;

B. Whether the implementation of the provisions of this chapter have been adequate; and

C. Whether the provisions of this chapter should be amended to provide more effective regulations or to avoid unnecessary Hardship.

(Ord. 0-19A-89 § 1.11, 1989)

The Rent Review Commission of the City is established.

(Ord. 0-19A-89 § 1.04(A), 1989)

The Rent Review Commission Shall be appointed in accord with the provisions of Chapter 2.30 of this Code. In addition to the qualifications set forth in Section 2.30.060, members of the Rent Review Commission Shall be appointed in such a manner that no more than one member of the Rent Review Commission Shall be a Mobilehome Park Owner, Operator, manager or Designated agent of a Mobilehome Park located in the City and at least one member Shall be a Mobilehome Tenant who resides in the City. The Tenant member of the Rent Review Commission Shall not reside in the same Mobilehome Park as any Owner member of the Rent Review Commission. Candidates for membership of the Rent Review Commission Shall submit a verified statement listing all interests in any Real Property or Mobilehome as defined in Section 798.3 of the California Civil Code including ownership, individually, jointly, legal or equitable and all Sales of such Property, or instruments Secured by such Property within thirty Days of seeking appointment to the Commission.

(Ord. 0-21-93 § 1 (part), 1993: Ord. 0-4-93 § 1 (part), 1993: Ord. 0-19A-89 § 1.04(B), 1989)

To fulfill its function, the Commission Shall meet as often as it deems necessary, but ordinarily at least one regularly scheduled public meeting Shall be held every ninety Days if needed; or within thirty Days of any hearing or arbitration held hereunder, whichever is earlier. All members of the Commission Shall be required to attend all Commission meetings and hearings unless such member has been disqualified from participation or otherwise excused. Except as expressly provided herein, the Commission Shall establish the time and place of its meetings. All meetings of the Commission Shall be conducted in accordance with the provisions of the Ralph M. Brown Act.

(Ord. 0-21-93 § 1 (part), 1993: Ord. 0-4-93 § 1 (part), 1993: Ord. 0-19A-89 § 1.04(E), 1989)

The affirmative vote of a majority of those Commissioners present and voting is required for a Decision, including all motions, regulations and orders of the Commission.

(Ord. 0-21-93 § 1 (part), 1993: Ord. 0-4-93 § 1 (part), 1993: Ord. 0-19A-89 § 1.04(F), 1989)

A majority of the Commission Shall constitute a quorum.

(Ord. 0-21-93 § 1 (part), 1993: Ord. 0-4-93 § 1 (part), 1993: Ord. 0-19A-89 § 1.04(G), 1989)

The Commission Shall undertake and have the Following duties, responsibilities, and functions together with all powers reasonably Incidental thereto:

A. Adoption of Rules and Regulations. The Commission May make and adopt its own administrative rules and regulations as May be necessary to effectuate the purposes and policies of this chapter and to enable the Commission to carry out its powers and duties thereunder, so long as such rules and regulations are consistent with the Laws of the State, this chapter, and any guidelines adopted by the City Council. Any such rules and regulations Shall be reduced to writing and be on file with the secretary of the Commission at all times.

B. Appointment of Officers. The Commission May appoint such officers as it May deem necessary to carry out its duties hereunder.

C. Maintenance of Records. The Commission Shall keep a record of its proceedings, which Shall be open for inspection by any member of the public.

D. Expenditure of Public Funds. The Commission Shall not have any authority to expend or authorize the expenditures of any public funds, except with the prior express Approval of the City Council.

E. Conduct Studies and Investigations. The Commission Shall have the power to make such studies, Surveys, and investigations, conduct such hearings, and obtain such information as is necessary to carry out its powers and duties.

F. Require Registration and Registration Fees. The Commission Shall require such registration of Mobilehome Parks and establish such registration Fees as the Commission May deem necessary to enable it to carry out its duties.

G. Approve Rent Increases. The Commission May approve such adjustments in Rent ceilings as provided for in this chapter.

H. Evaluation. The Commission Shall render at least semiannually a comprehensive Written report to the City Council concerning the Commission's activities, holdings, actions, results of hearings, and all other Matters pertinent to this chapter.

I. Related Duties. The Commission Shall undertake such other related duties as May be assigned by the City Council.

(Ord. 0-21-93 § 2, 1993; Ord. 0-4-93 § 2, 1993; Ord. 0-11-91 §§ 2, 3, 1991; Ord. 0-19A-89 § 1.04(H), 1989)

Members of the Commission Shall be entitled to such compensation as May be set by the City Council including reimbursement for reasonable expenses incurred in the performance of their official duties. The Commission Shall not have any authority to expend or authorize the expenditures of any public funds, except with the prior express Approval of the City Council.

(Ord. 0-11-91 § 4, 1991; Ord. 0-19A-89 § 1.04(I), 1989)

The City Manager Shall provide all administrative staff necessary to serve the Commission. The City Manager Shall provide a secretary to serve as Secretary of the Commission and Shall be responsible for the maintenance of all records of the Commission. The City Attorney or his/her Designee Shall act as legal counsel to the Commission.

(Ord. 0-19A-89 § 1.04(J), 1989)

Within sixty calendar Days after the effective date of the Ordinance codified in this chapter, Mobilehome Park Owners are required to register all Mobilehome Parks, and Mobilehome Rental spaces within such Parks, with the Commission.

The initial registration Shall include: the name(s), Business address(es), Business telephone number(s) of each Person or legal entity possessing an ownership interest in the Park and the nature of such interest; the number of Mobilehome Rental spaces within Park; a Rent schedule reflecting Rents within the Mobilehome Park on the effective date of the Ordinance codified in this chapter; a listing of all other charges, including utilities not included in the Rent, paid by Tenants and the approximate amount of each such charge; and the name and address to which all required Notices and correspondence May be sent.

The Commission is empowered to establish further registration requirements as it deems necessary to carry out the intent of this article. The registration requirements provided for in this article or which May be established by the Commission Shall apply to all Mobilehome Parks, including those exempt from the Rent ceiling limitations by reason of the existence of a valid Space Rent agreement under Section 15.48.040(C). The Commission Shall develop rules which require all Mobilehome Park Owners to report all vacancies as they occur.

No Park Owner Shall be eligible to receive any Rent ceiling adjustment as provided for under the provisions of this chapter unless such current registration as May then be required for the Mobilehome Park is on file with the Commission at the time the petition for the Rent ceiling adjustment is filed.

(Ord. 0-19A-89 § 1.05(A), 1989)

The provisions of this chapter Shall be self-supporting and financed solely by Fees assessed for that purpose. The Commission Shall finance its reasonable and necessary expenses by charging Park Owners annual registration Fees in amounts deemed reasonable by the Commission. No Part of such Fees May be passed through from Owners to Tenants. The Commission is also empowered to charge reasonable Fees for filing of petitions or complaints pursuant to this chapter.

The Community Development Director is directed to maintain accurate accounting of all direct and indirect costs of administering the regulations contained in this chapter. The Community Development Director Shall submit a report to the Commission and City Council of such costs and any recommendations for a change in the methods of financing at least annually, from and after the effective date of the Ordinance codified in this chapter.

(Ord. 0-19A-89 § 1.05(B), 1989)

The current maximum allowable Space Rent for any controlled space in a Mobilehome Park Shall be the Rent in effect on January 1, 1987, plus any Rent Increases implemented since that date and prior to the adoption of the Ordinance codified in this chapter to the extent such increases would have been lawful under Articles V and VI of this chapter. If there was no Rent in effect prior to the adoption of the Ordinance codified in this chapter, the Space Rent Shall be charged pursuant to Section 15.48.040(A).

(Ord. 0-19A-89 § 1.06(A), 1989)

The maximum allowable Rent at any given time Shall be the current maximum allowable Rent plus any future Rent adjustments allowed pursuant to the provisions of this chapter.

(Ord. 0-19A-89 § 1.06(B), 1989)

A Tenant May refuse to pay any Rent in excess of the maximum lawful Rent Permitted by this chapter. The fact that such unpaid Rent is in excess of the maximum lawful Rent Shall be a defense in any action brought to recover possession of a Mobilehome Space for nonpayment of Rent or to collect the legal Rent. Collection of any amount in excess of the maximum lawful Rent as prescribed by this article Shall constitute a Violation of this chapter and Shall be punishable as set forth in Article IX of this chapter.

(Ord. 0-19A-89 § 1.06(C), 1989)

A. Annual Adjustments. Rents May be adjusted once each calendar Year in the manner provided for in this chapter, by the Owner with Notice, in writing, to the Commission by sending a Copy of the sixty Day Notice of increase of Rents as issued to Tenants.

B. General Rent Increases. A general Rent Increase May be made only Following the passage of twelve Months since the last previous Rent Increase, whether such Rent Increase was a general increase and/or special Rent adjustment granted pursuant to petition as provided in Section 15.48.230.

C. Maximum Annual General Rent Increase. The maximum annual general Rent Increase allowed a Park Owner Shall be an amount equal to sixty percent of the percentage change in the Consumer Price Index per Year.

(Ord. 0-11-91 § 5 (part), 1991: Ord. 0-19A-89 § 1.07(A), 1989)

A. Filing of Petition. An Owner who is dissatisfied with the general Rent Increase May file a petition for special Rent adjustment.

B. Matters to be Considered by the Commission. In authorizing special Rent adjustments, the Commission Shall consider the purposes of this chapter and the requirements of Law. The Commission May consider all relevant factors including: increases or decreases in operating and maintenance expenses, the extent and cost of utilities paid by the Owner, necessary and reasonable Capital Improvement of the Park as distinguished from normal repair, replacement and maintenance, increases or decreases in amenities, equipment or services, substantial deterioration of the Park other than a result of ordinary wear and tear, failure on the Part of the Owner to provide adequate repair, Housing Services or to comply with applicable housing, health and safety codes, Federal and State income tax benefits, the speculative nature of the investment, the Owner's rate of return on investment, the Owner's current and Base Year Net Operating Income, profit and loss statements and any other factor deemed relevant by the Commission or its Officer in providing the Owner a fair return.

(Ord. 0-11-91 § 5 (part), 1991: Ord. 0-19A-89 § 1.07(B), 1989)

In order to effectuate the purpose of Section 15.48.230, the formula set forth in Section 15.48.320 Shall be employed by the Commission in determining whether to grant a petition for special Rent adjustment. Only upon determination of necessity Shall the Commission employ the standards set forth in this Article VI.

(Ord. 0-11-91 § 5 (part), 1991: Ord. 0-19A-89 § 1.07(C) (1), 1989)

It is the intent of this chapter to allow special Rent adjustments that will provide Park Owners with a fair return on their investments consistent with the expressed goal and purpose of this chapter to protect Tenants from unreasonable increases in Rent.

(Ord. 0-11-91 § 5 (part), 1991: Ord. 0-19A-89 § 1.07(C), 1989)

For the purposes of Rent adjustment proceedings, the Following definitions Shall be Used:

A. "Net Operating Income" means Gross Income less Operating Expenses.

B. "Gross Income" equals the Following:

1. Gross Rents, computed as gross Rental income; plus

2. Interest from Rental deposits, unless directly paid by the Owner to the Tenants (interest Shall be computed at the rate of five and one-half percent per annum of all deposits unless such deposits earn greater interests); plus

3. Income from utilities, miscellaneous Fees, and all other Fees charged Tenant; plus

4. All other income or consideration received or receivable for or in connection with the Use or Occupancy of Mobilehome Spaces within the Park;

5. Minus uncollected Rents due to Vacancy and bad debts to the extent that the same are beyond the Owner's control. Uncollected Rents in excess of three percent of gross Rents Shall be presumed to be unreasonable unless established otherwise. Where uncollected Rents Must be estimated, the average of the Preceding three Years experience Shall be Used, or some other equitable formula developed.

C. "Operating Expenses" include the Following:

1. Real Property taxes;

2. Utility costs;

3. Management expenses (contracted or Owner performed) including necessary and reasonable advertising, accounting, insurance, managerial expenses, and Allowable Legal Expenses. Management expenses are presumed to be five percent of Gross Income, unless established otherwise;

4. Repair and maintenance expenses include painting, cleaning, fumigation, Landscaping, and repair of all standard services, including power, electrical, plumbing and carpentry;

5. Owner-performed labor which Shall be compensated at the Following hourly rates upon documentation being provided, showing the date, time and nature of the work performed:

Notwithstanding the above, an Owner May receive greater or lesser compensation for self-labor if it can be shown that the amounts set forth above are substantially unfair in a given case. There Shall be a maximum allowance under this Subdivision of five percent of Gross Income, unless the Owner shows greater services for the benefit of the Tenants;

6. License or registration Fees required by Law to the extent same are not otherwise paid by Tenants, except registration Fees required under Section 15.48.170;

7. Capital expenses with a total cost of less than one hundred dollars per Year per benefited Rental space and the amortized portion of other capital expense;

8. Reserve fund for replacement of long term items, not to exceed five percent of Gross Income and only provided that same actually exists;

9. Necessary Capital Improvement costs exceeding reserves for replacement. An Owner May include such costs if the Owner has consulted with Tenants prior to initiating construction of such Improvements, regarding the nature and purpose of such Improvements and the estimated costs, and has obtained the prior Written consent of Tenants of at least fifty-one percent of the occupied Mobilehome Spaces that the cost of such Improvements May be included as an operating expense.

D. Operating Expenses Shall not include:

1. Avoidable and unnecessary expense increases since the Base Year;

2. Mortgage principal and interest payments or lease payments under any ground lease except insofar as such payments are contemplated by Section 15.48.330;

3. Any penalties, Fees or interest assessed or awarded for Violation of this or any other Law;

4. Legal Fees, except as provided in subsection (E) of this section;

5. Depreciation of the Property;

6. Any expense for which the Owner has been reimbursed by any security, deposit, insurance settlement, judgment for damages, settlement, or any other means of reimbursement;

7. Registration Fees required by the Commission to finance the operation of this chapter.

E. "Allowable Legal Expenses" Shall include 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 same are not recovered from Tenants.

F. "Allowable Legal Expenses" Shall not include Attorneys' Fees and costs incurred in proceedings before the Commission.

(Ord. 0-11-91 § 6, 1991; Ord. 0-19A-89 § 1.07(C)(3), 1989)

Except as provided in Section 15.48.280, it Shall be presumed that the Net Operating Income produced by a Property during the Base Year provided a fair return on Property. Owners Shall be entitled to maintain and increase their Net Operating Income from Year to Year in accordance with Article VI of this chapter.

(Ord. 0-19A-89 § 1.07(C) (4), 1989)

It May be determined that the Base Year Net Operating Income yielded other than a fair return on Property in which case, the Base Year Net Operating Income May be adjusted accordingly. In order to make such a determination, the Hearing Officer Must make at least one of the Following findings:

A. The Owner's operating and maintenance expenses in the Base Year were unusually high or low in comparison to other Years. In such instances, adjustments May be made in calculating such expenses so the Base Year Operating Expenses reflect average expenses for the Property over a reasonable period of time. The Hearing Officer Shall consider the Following factors:

1. The Owners made substantial Capital Improvements during 1986 which were not reflected in the Rent levels on the Base Date;

2. Substantial repairs were made due to damage caused by natural disaster or vandalism which management has taken appropriate action to reduce;

3. Maintenance and repair was below accepted standards so as to cause significant deterioration in the quality of Housing Services;

4. Other expenses were unreasonably high or low not withstanding the Following of prudent Business measures.

B. The Rental rates on the Base Date were disproportionate due to enumerated factors below. In such instances, adjustments May be made in calculating gross Rents consistent with the purpose of this chapter.

1. The Rental rates on the Base Date were substantially higher or lower than in Preceding Months by reason of premiums being charged or rebates being given for reasons unique to particular units or limited to the period determining the base Rent.

2. The Rent on the Base Date was substantially higher or lower than at other times of the Year by reason of seasonal demand or seasonal variations in Rent.

3. The Rental rates on the Base Date were exceptionally high or low due to other factors which would cause the Application of the Base Year Net Operating Income to result in gross inequity to either the Owner or Tenant.

(Ord. 0-11-91 § 7, 1991; Ord. 0-19A-89 § 1.07(C)(5), 1989)

A. To determine the Net Operating Income during the Base Year, there Shall be deducted from the annualized Gross Income being realized in 1986, a sum equal to the actual Operating Expenses for calendar Year 1986, unless the Owner demonstrates to the satisfaction of the Hearing Officer that some other consecutive twelve-month period is justified by reason consistent with the purpose of Articles V and VI of this chapter.

B. In the event the Owner did not own the subject Property during the Base Year, the Operating Expenses for 1986 Shall be determined by one of the Following methods, whichever the Hearing Officer determines to be more reliable in the particular case:

1. The previous Owner's actual Operating Expenses as defined in Section 15.48.260(C) if such figures were available; or

2. Actual Operating Expenses for the first calendar Year of ownership, discounted to 1986 by the schedule in Article VI of this chapter.

(Ord. 0-19A-89 § 1.07(C)(6), 1989)

To determine the Current Year Net Operating Income, there Shall be deducted from the annualized Gross Income, determined by annualizing the monthly Rents in effect at the time of filing of a petition, a sum equal to the actual Operating Expenses for the last calendar Year, unless the Owner demonstrates to the satisfaction of the Hearing Officer that some other consecutive twelve-month period is justified by reasons consistent with the purposes of this section.

(Ord. 0-19A-89 § 1.07(C)(7), 1989)

Where scheduling of Rental increases, or other calculations, require Projections of income and expenses, it Shall be assumed that Operating Expenses, exclusive of Property taxes, and management expenses, increases at five percent per Year, that Property taxes increase at two percent per Year and that management expenses constitute five percent of Gross Income.

(Ord. 0-19A-89 § 1.07(C)(8), 1989)

The Commission May Permit special Rent adjustments, unless otherwise prescribed by Law, such that the Owner's Net Operating Income will be increased at the rate of sixty percent of the percentage increase in the Consumer Price Index (CPI) over the Base Year. The CPI for the Base Year Shall be determined by Use of the monthly figure for January, 1987 (January, 1987 CPI = 113.4). For purposes of initiating a special Rent adjustment, the percentage increase in the CPI Shall be calculated by dividing the most recently reported monthly CPI figure at the time of receipt of the Owner's petition for increase by 113.4. The percentage increase in the CPI is the amount by which the resulting figure exceeds a base of 1.00.

For example, if the most recently reported monthly CPI figure at the time of receipt of the Owner's petition for increase were 128.4, the percentage increase in the CPI would be thirteen percent (128.4 ÷ 113.4 = 1.13; 1.13 - 1.00 base = 13%) so that the Hearing Officer could Permit, in such instance, an increase in the Owner's Net Operating Income of up to 7.8 percent maximum allowable net income increase.

(Ord. 0-11-91 § 8 (part), 1991: Ord. 0-19A-89 § 1.07(C)(9), 1989)

While the Net Operating Income formula should operate to guarantee a Park Owner a fair return on investment, the Commission considering a request for special Rent adjustments Shall consider all relevant factors in making a determination, as set forth in Section 15.48.230.

(Ord. 0-11-91 § 8 (part), 1991: Ord. 0-19A-89 § 1.07(C)(10), 1989)

A. The Commission May consider increased costs associated with refinancing of mortgage or debt when such costs are limited to increases in interest payments from those interest payments made during the Base Year which result from either:

1. Refinancing of the outstanding principal owed for the acquisition of a Park, where such refinancing is mandated by the terms of a financing transaction entered into prior to January 1, 1987 (e.g., termination of a loan with a balloon payment); or

2. Increased interest costs incurred as a result of a variable interest rate loan Used to finance the acquisition of the Park and entered into prior to January 1, 1987.

B. Special Rent adjustments based upon increased costs associated with refinancing Shall be allowed only where the Owner can show that the terms of the refinancing were reasonable and consistent with prudent Business practices under the circumstances. To the extent that refinancing does not benefit the subject Park, e.g., amounts of money are being Used for the purpose of leveraging other investments rather than benefiting the Park, such amount Shall not be considered.

(Ord. 0-11-91 § 9, 1991)

Notwithstanding any other provisions of this chapter, no special Rent adjustment in a Mobilehome Park Shall be valid during the time that any hearing proceeding is being conducted pursuant to this chapter, nor Shall such a special Rent adjustment be valid during the period in which a Commission Decision for that Park is being reviewed by a Court of competent jurisdiction, except the Tenants Shall be required to pay any general Rent Increase that has been properly Noticed and imposed pursuant to Section 15.48.220.

(Ord. 0-11-91 § 10, 1991: Ord. 0-19A-89 § 1.07(C)(11), 1989)

No Owner Shall be entitled to a general Rent Increase or a special Rent adjustment if the Owner has failed to comply with any provision of this chapter or any implementing regulation issued by the Commission, including any provisions or regulations requiring the payment of registration Fees and registration penalties. Nor Shall any Owner be entitled to a general Rent Increase or a special Rent adjustment if the Owner has failed to comply substantially with any applicable State or Local housing, health or safety Law. No Owner Shall be entitled to a general Rent Increase or a special Rent adjustment unless the Notice increasing Rent contains a statement in substantially the Following form:

The undersigned (Owner) certifies that the Rental space(s) subject to this Rent Increase and the common areas of the Park are not subject to any uncorrected citation or Notices of Violation of any State or Local housing, health or safety Laws issued by any government official or agency.

If an Owner fails to comply with this section, the Tenant May refuse to pay the improperly Noticed increase, May seek administrative or civil remedies under this chapter and May raise the Owner's noncompliance as an affirmative defense in any resulting unlawful detainer action.

(Ord. 0-11-91 § 11, 1991)

A. No Owner Shall reduce the level or kind of services provided to Tenants as of the date of adoption of the Ordinance codified in this chapter or take any other punitive action in retaliation for the exercise by Tenants of any of the rights granted by this chapter.

B. If a Mobilehome Park provides in the Rent, without separate charge, utilities or similar services (including, but not limited to natural Gas, electricity, water, sewer, trash, cable television) and converts to separate metering, separate charge or other lawful means of transferring to the Tenant the obligation for payment for such services, the cost savings Shall be passed through to Tenants by a Rent reduction equal to the actual cost to the Park of such transferred Utility or similar service (less common area usage) based on costs for the twelve-month period prior to Notice to the Tenants of the change.

C. For purposes of subsection (B) of this section, in determining cost savings to be passed on to Tenants in the form of decreased Rent, the cost of installation of separate Utility meters, or similar costs incurred by the Owner to shift the obligation for payment of Utility costs to the Tenants Shall not be considered. However, this Shall not be construed to prohibit or prevent the consideration of inclusion of such costs as an increased operating expense at mediation or arbitration.

D. If a service other than a Utility or similar service as defined in this section is reduced or eliminated, or if a Utility or similar service is reduced or eliminated without a concomitant decrease in Rent as provided for in subsection (B) of this section, any aggrieved Party May petition the Commission for hearing to resolve the Matter provided that:

1. Any petition initiating the hearing process Must be filed within twelve Months of the date on which the service was reduced or eliminated; and

2. The reduction or elimination in services Must continue to exist at the time of the hearing. Rent decreases Shall only be granted prospectively.

(Ord. 0-11-91 §§ 12, 13, 1991: Ord. 0-19A-89 § 1.07(C)(12), 1989)

The Commission may, at its discretion, request Written records or other documentation from any Park Owner regarding the operations of any Park in order to assure compliance with allowable Rents, to respond to any complaint filed by a Tenant, and to properly administer this chapter. Failure to respond in a reasonable period of time to the Written request of the Commission for records or other related documentation regarding the operation of a Park Shall constitute a Violation of this chapter subject to the penalty provisions of Sections 15.48.630 and 15.48.640.

(Ord. 0-11-91 § 14, 1991)

Park Owners and Tenants Shall address all concerns and disputes regarding implementation of this chapter to the Commission through petitions filed in accord with the procedures set forth in this section. The Commission Shall hear Matters raised by petition at Public Hearings scheduled for that purpose and Noticed in accord with the provisions of this article. This process Shall be referred to as the "hearing process." The Commission Shall enact rules and regulations governing the hearing process which Shall include the provisions set out in this article.

(Ord. 0-11-91 § 15 (part), 1991: Ord. 0-19A-89 § 1.08 (part), 1989)

Any Owner May file a petition for a special Park Rent adjustment under the provisions of Section 15.48.220 and under Articles V and VI of this chapter. A petition for a special Park Rent adjustment Shall be on the form Approved by the Commission and a list of the names and addresses of all Residents affected by that special Rent adjustment Shall be Attached to the petition. A petition for a special Rent adjustment Shall be considered filed only after the petitioner has provided all of the information requested in the form. No special Rent adjustment Rent Increase May be imposed prior to final Approval of a petition.

(Ord. 0-11-91 § 15 (part), 1991: Ord. 0-19A-89 § 1.08(A), 1989)

Where a reduction in services is claimed, and the Park Owner has failed to substantially comply with Section 15.48.350, a Tenant May file a petition for an individual Space Rent adjustment under the applicable provisions of Article VII of this chapter and regulations adopted pursuant thereto. Where a parkwide reduction in services is claimed, and the Park Owner has failed to substantially comply with Section 15.48.350, a petition for a Park-wide Space Rent adjustment May be filed. Such a petition will be accepted for filing only if it is signed by at least one adult Tenant from ten percent of the Rented spaces within a Park. A petition for Rent decrease Shall be on the form Approved by the Commission and a list of the names and addresses of all Residents affected Shall be Attached to the petition. A petition for Rent decrease Shall be considered filed only after the petitioning Tenants have provided all the information requested on the form. No Rent adjustment for a reduction in services May be claimed by any Tenant prior to final Approval of a petition.

(Ord. 0-11-91 § 15 (part), 1991: Ord. 0-19A-89 § 1.08(B), 1989)

Any petition for a special Rent adjustment or for Rent decrease or for any other dispute or claim of Violation of this chapter Shall be filed with the Community Development Department and Must be accompanied by a filing Fee as established by Resolution of the Commission.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(D), 1989)

Prior to filing a petition, any Party May request an informal meeting with staff to review the contents of the petition, procedures to be followed with regard to Notice and hearing requirements, and any appropriate alternative methods of resolving the Matters raised in the petition. No monetary charges Shall be imposed for any voluntary or informal meeting(s) with staff.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(E), 1989)

A hearing will be scheduled with the Commission no later than thirty Days after filing of any petition. All hearings Shall be conducted by the Commission.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(F), 1989)

A reasonable continuance of the hearing May be granted at the discretion of the Hearing Commission.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(G), 1989)

After scheduling a hearing, the Commission Shall notify all interested parties of the subject Park of the time, date and place of hearing in writing. Notice Shall be accomplished by sending a Copy of the Notice by first class mail. All expenses of mailing Shall be paid by the petitioner for the hearing. Notice procedure Shall be accomplished at least ten Days prior to the hearing.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(H), 1989)

In the event that either the Tenant(s) or the Park Owner(s) or their Designated Representatives should fail to appear at any hearing at the specified time and place, the Commission May hear and review such evidence as May be presented and render a Decision as if both parties had been present. However, the Commission May reasonably delay the hearing date and require additional Notice if, in the discretion of the Commission, such a delay is necessary to assure adequate Notice to any Party.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(I), 1989)

The Commission May require any Party to a hearing to provide it with any books, records and papers pertinent to resolving the Matters raised in any petition.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(J), 1989)

The hearing Shall not be conducted according to technical rules of evidence. Any relevant evidence Shall be considered if it is the sort of evidence upon which reasonable Persons are accustomed to rely in the conduct of Business affairs, regardless of the existence of any common Law or statutory rule that might make improper the admission of such evidence over objection in civil actions. Unduly repetitious or irrelevant evidence Shall be excluded upon order of the Commission.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(K), 1989)

The Decision of the Commission Must be supported by substantial evidence submitted at the hearing. The petitioning Party Shall have the burden of proof in such proceedings.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(L), 1989)

All hearings Shall be open to the public.

(Ord. 0-19A-89 § 1.08(M), 1989)

All parties to a hearing May have assistance in presenting evidence and developing their position from Attorneys, Tenant or Owner organization Representatives or any other Persons Designated by said parties.

(Ord. 0-19A-89 § 1.08(N), 1989)

The Commission Shall make available for inspection and Copying by any Person at his own expense an official record which Shall constitute the exclusive record for Decision on the issues at the hearing. The record of the hearing Shall be obtainable for the cost of Copying. Any Party May have the proceedings tape recorded or otherwise transcribed at his or her expense. The hearing record Shall include:

A. All Exhibits, papers and documents offered either before or during the proceedings;

B. A list of participants present;

C. A summary of all testimony accepted in the proceedings;

D. All findings; and

E. All final Decisions, orders and rulings.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(O), 1989)

The Commission Shall announce its determination of any Matter raised by petition at the conclusion of the Public Hearing after full presentation of evidence and discussion by the Commission.

(Ord. 0-11-91 § 19 (part), 1991: Ord. 0-19A-89 § 1.08(P), 1989)

The Commission Attorney Shall prepare a Written summary of the Commission's Decision in Resolution form within twenty Days Following the hearing and forward it to the Commission for adoption. Staff Shall agendize the Resolution at the next scheduled meeting after the Written summary is received. The Resolution Shall be mailed to all parties within five Days after adoption.

(Ord. 0-11-91 § 19 (part), 1991: Ord. 0-19A-89 § 1.08(Q), 1989)

Notwithstanding the provisions of this chapter that allow Park Owners to petition for special Rent adjustments, the Commission has the authority as Part of its special Rent adjustment Decision to amortize any increase allowed over more than one fiscal Year and to limit a Park Owner's right to petition for special Rent Increases during the amortization period except in circumstances where a Park Owner can demonstrate extreme Hardship.

(Ord. 0-11-91 § 17 (part), 1991: Ord. 0-19A-89 § 1.08(R), 1989)

The Decision of the Commission on Appeal Shall be final and binding.

(Ord. 0-19A-89 § 1.08(W), 1989)

An Owner or Tenant aggrieved by any action or Decision of the Commission May seek judicial review by Appealing to the appropriate Court within the jurisdiction. In order to allow an aggrieved Party the opportunity to seek appropriate judicial review, enforcement of the orders and Decisions of the Commission on Appeal Shall be stayed for a period of not less than thirty Days from the date of adoption of the Resolution required in Section 15.48.530.

(Ord. 0-11-91 § 21, 1991: Ord. 0-19A-89 § 1.08(X), 1989)

All parties involved in disputes Shall be individually responsible for any legal services Used in connection with their complaint(s) or petition(s) except as May be determined in Section 15.48.630.

(Ord. 0-11-91 § 22, 1991)

A Tenancy which is not subject to the provisions of the Mobilehome Residency Law (Civil Code Sections 798—799.6) Shall not be terminated nor Shall its renewal be refused, except for one or more of the Following reasons:

A. Failure of the Tenant to comply with a Local Ordinance or State Law or regulation relating to Mobilehomes within a reasonable time after the Tenant receives a Notice of noncompliance from the appropriate governmental agency;

B. Conduct by Tenant, upon the Mobilehome Park Premises, which constitutes a substantial annoyance to other Tenants;

C. Failure of the Tenant to comply with a reasonable rule or regulation of the Mobilehome Park. No Act or omission of the Tenant Shall constitute such a failure to comply unless and until the Owner has given the Tenant Written Notice of alleged rule or regulation Violation and the Tenant has failed to adhere to the rule or regulation within seven Days;

D. Nonpayment of Rent, Utility charges or reasonable Incidental service charges;

E. Condemnation of Mobilehome Park;

F. Change of Use of the Mobilehome Park, provided that the provisions of subsection (f) of Section 789.56 of the California Civil Code are followed.

1. The Owner gives the Tenant Written Notice of the proposed change twelve Months or more before the date of the proposed change;

2. The Owner gives each proposed Tenant whose Tenancy will commence within twelve Months of the proposed change, Written Notice thereof prior to the inception of his Tenancy.

(Ord. 0-19A-89 § 1.09(A), 1989)

Notice of termination or refusal to renew Must be given in the manner prescribed by Section 1162 of the Code of Civil Procedures at least sixty Days prior to the termination date of the Tenancy; said Notice Shall state the date the Tenancy terminates, the reason for the termination or refusal to renew, and the specific facts upon which the Owner is relying.

(Ord. 0-19A-89 § 1.09(B), 1989)

Any Person who demands, accepts or retains any payment in Violation of the provisions of this chapter Shall be liable in a civil action to the Person from whom such payment is demanded, accepted or retained for damages in the sum of three times the amount by which the payment or payments demanded, accepted or retained exceed the maximum Rent which could lawfully be demanded, accepted or retained together with reasonable Attorney's Fees and costs as determined by the Court.

(Ord. 0-19A-89 § 1.10(A), 1989)

Any Owner who wilfully and knowingly violates any of the provisions of this chapter or the orders of the Commission Shall be guilty of a misdemeanor and on conviction Shall be punished by a fine of not more than one thousand dollars for each substantive Violation per space, or by imprisonment for not more than six Months per substantive Violation per space, or by both such fines and imprisonment.

(Ord. 0-11-91 § 23, 1991: Ord. 0-19A-89 § 1.10(B), 1989)

The Commission, the City, and the Tenants and Owners May seek relief from the appropriate Court within the jurisdiction within which the Rental unit is located to enforce any provisions of this chapter or its implementing regulations or to restrain or enjoin any Violation of this chapter and of the rules, regulations, orders and Decisions of the Commission.

(Ord. 0-19A-89 § 1.10(C), 1989)

Any waiver or purported waiver by a Tenant of rights granted under this chapter prior to the time when such rights May be exercised, whether oral or Written, Shall be void as contrary to public policy.

(Ord. 0-19A-89 § 1.10(D), 1989)

All rights and obligations imposed by the California Civil Code Section 798.17 and this chapter Shall also apply to prospective Tenants of Mobilehome Parks, and no Park Owner Shall be entitled to require, as a condition of Tenancy, that a prospective Tenant enter into a long-term lease or long-term Rental Agreement.

(Ord. 0-18-92 § 3 (part), 1992: Ord. 0-11-91 § 24, 1991)

A. No prospective Tenant Shall be required to accept a long-term Rental Agreement as a condition of Tenancy.

B. Every Rental Agreement with a term in excess of twelve Months Shall provide the Park Owner and the Tenant a minimum termination Notice period of sixty Days prior to termination of the Rental Agreement.

C. All prospective Tenants Shall be entitled to the same protections with regard to Rental Agreements afforded existing Tenants under the California Mobilehome Residency Law, as it currently exists or is hereafter amended.

D. All Park Owners meeting the standard set forth in California Civil Code Section 798.22 Shall be prohibited from entering into any Rental Agreement for any period of time for the Rental of a Mobilehome Rental space for Use by a Recreational Vehicle, as defined in California Health and Safely Code Section 18010, unless a special area within the Mobilehome Park has been specifically Designated for such Use and all such Recreational Vehicles are located only in such Designated area.

(Ord. 0-23-01 § 2, 2002: Ord. 0-18-92 § 3 (part), 1992)