Fontana Municipal Code Art. III Mobile Home Park Space Rent Stabilization

Footnotes:

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Cross reference— Licenses, permits and business regulations, ch. 15.

This article is to be known as the Fontana Mobile Home Park Space Rent Stabilization Ordinance.

(Code 1968, § 35-00; Ord. No. 1040, § 2(35.00), 12-3-91)

(a) In August of 1982, in response to a severe shortage of rental spaces for mobile homes, escalating rents and the unique difficulties and high costs involved in relocating a mobile home, the city adopted Ordinance No. 732, amended by Ordinance No. 742, to stabilize rents. In 1985, the city found it necessary to adopt Ordinance No. 797, an interim moratorium on rent increases, pending adoption of a revised rent stabilization ordinance. In May, 1985, the city adopted Ordinance No. 804, amended by Ordinance No. 851, to encourage voluntary agreements between park owners and tenants, to stabilize rents and to provide a fair return to park owners.

(b) Pursuant to Ordinance Nos. 804 and 851, the city monitored vacancies in the mobile home parks in the city. In 1988 the city found that the vacancy rate, including mobile homes moved out of the parks, had increased and that Civil Code § 798.17, which provided a mechanism for long-term leases to stabilize rents and protect both park owners and residents, had been adopted and became effective after the adoption of Ordinance No. 804. Based on these facts, the city determined that a mobile home park space rent stabilization ordinance no longer appeared to be necessary, and the city adopted Ordinance No. 912 on May 3, 1988, repealing the rent stabilization ordinance amending this article to provide for monitoring of space rents and vacancies and to provide a voluntary space rent mediation service.

(c) In August of 1988, it came to the city's attention through rent increase notices given by certain mobile home park owners and petitions and letters from mobile home park residents that some park owners had given notice of excessive space rent increases to take effect the next month. In some cases, those increases were as high as $100.00 per month, per space, and notice had also been given of additional increases to be imposed by these owners in the near future. As a result, the city determined that a moratorium was needed to allow more time for resolution through mediation, and to study the need for new rent stabilization regulations. The city therefore adopted Ordinance No. 922 on August 30, 1988, imposing a moratorium on space rent increases to prevent the immediate imposition of excessive rent increases which would have interfered with the then pending voluntary mediations, would have defeated the purpose of the new rent stabilization regulations being studied and would have subjected park residents to severe hardships due to the shortage of affordable rental spaces in the city and surrounding areas and the risk of damage and high costs involved in moving a mobile home.

(d) The city council hereby finds that neither voluntary mediation nor Civil Code § 798.17 providing for long-term leases have been sufficient to prevent excessive rents. Mobile home owners, unlike apartment tenants or residents of other rental stock, are in the unique position of having made a substantial investment in a mobile home for which they must rent a space in a mobile home park. Alternative sites for the relocation of mobile homes are difficult to find due to the shortage of vacant spaces; the restrictions on the age, size, or style of mobile homes permitted in many parks; and requirements related to the installation of mobile homes, including permits, landscaping and site preparation. Additionally, the cost of moving a mobile home is substantial, and the risk of damage in moving is significant. The result of these conditions is the creation of a captive market of mobile home owners and tenants. Their immobility, in turn, contributes to the creation of a great imbalance in the bargaining relationship between park owners and mobile home park tenants in favor of the park owners. Because mobile homes are often owned by senior citizens, persons on fixed incomes, and persons of low and moderate income, exorbitant rent increases fall upon these individuals with particular harshness.

(e) After reviewing and considering whether and what type of mobile home rent regulation ordinance is needed in the city, the city council finds and declares it necessary and in the public interest to facilitate and encourage fair bargaining between mobile home park tenants and park owners in order to achieve mutually satisfactory agreements regarding space rental rates in mobile home parks. Absent such agreements, the city council further finds and declares it necessary to protect the mobile home owners from excessive rental increases and at the same time provide a just and reasonable return to mobile home park owners.

(Code 1968, § 35-01; Ord. No. 1040, § 2(35.01), 12-3-91)

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Arbitrator means an attorney duly admitted to practice before the courts of the state selected by the rent administrator to hear and determine rent increase applications pursuant to section 14-65(h).

Capital improvement means the installation of new improvements and facilities and/or the replacement or reconstruction of existing improvements and facilities which consist of more than ordinary maintenance or repairs and have a useful life of at least five years.

Consumer Price Index (CPI) means the CPI published by the bureau of labor statistics for the Los Angeles-Anaheim-Riverside metropolitan area.

Housing services means services connected with use or occupancy of a rental space in a mobile home park which are provided to residents for the rent charged for the space including, but not limited to, utilities, ordinary repairs, replacement and maintenance, laundry facilities, recreational facilities, a resident manager, refuse removal, parking, street cleaning and maintenance, and other benefits, privileges, facilities or terms and conditions of the tenancy.

Mobile home means a vehicle, designed or used for human habitation, including a camping trailer, travel trailer, motor home, and slide-in camper, when used as the principal place of habitation for the occupants thereof as well as mobile homes as defined by Civil Code § 798.3.

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

Owner means a person or entity who receives or is entitled to receive rent for the use or occupancy of a mobile home space or an agent or representative authorized to act on behalf of such person or entity in connection with use or occupancy of mobile home space.

Rent means the consideration paid for use or occupancy of a mobile home space and the provision of related housing services.

Rent administrator means the person designated by the city manager to administer the provisions of this article.

Residency means the right or entitlement of a mobile home owner to use, occupy and place a mobile home on a rental space in a mobile home park and to related housing services.

Resident means an owner of a mobile home who has a residency.

Vacancy means a vacant space or the sale by a resident of a mobile home in place in a mobile home park to a new owner.

(Code 1968, § 35-02; Ord. No. 1040, § 2(35.02), 12-3-91)

Cross reference— Definitions and rules of construction generally, § 1-2.

(a) Initial registration. Every mobile home park shall file an initial registration statement on a form provided by the city, which sets forth the rent charged for each space in the park, the services included in that rent, and each space which is subject to a long-term lease pursuant to Civil Code § 798.17, including the rent specified therein and any provisions for periodic increases in rent in such lease, within 30 days after the effective date of the ordinance codified in this article. Any mobile home park which begins doing business after the effective date of the ordinance codified in this article shall file an initial registration statement no later than 60 days after it begins renting, or holding out for rent, spaces for mobile homes. Any mobile home park which filed such a statement pursuant to Ordinance No. 927 during 1988 prior to the effective date of the ordinance codified in this article shall not be required to file another initial registration statement.

(b) Annual registration. Every mobile home park shall file an annual registration statement on a form provided by the city, setting forth the same information as described in subsection (a) of this section, no later than January 31 each year.

(Code 1968, §§ 35-06, 35-07; Ord. No. 1040, § 2(35.06, 35.07), 12-3-91)

The city council shall adopt fees for the following by resolution:

(1) Annual registration fees shall be based on the number of spaces in the mobile home park to be used for the costs of administering this article. Such fees shall be paid by each park owner to the city at the time the initial and annual statements are filed. Half of the fee may be apportioned equally among the spaces in the mobile home park and charged by the owner to the residents according to the apportionment by a single annual bill which shall be sent to each resident within 30 days after the fees have been paid to the city. Such fees shall not be included in the rent.

(2) Arbitration fees to cover the costs of arbitration shall be paid by the owner requesting arbitration.

(Code 1968, § 35-08; Ord. No. 1040, § 2(35.08), 12-3-91)

The rent administrator shall adopt rules and guidelines to govern the applications, notices and registration required by this article, including any forms required in connection therewith, and for the review of rent increase applications and the conduct of arbitration hearings. The rules and guidelines shall be submitted to the city council for review and approval.

(Code 1968, § 35-09; Ord. No. 1040, § 2(35.09), 12-3-91)

(a) Any person who demands, accepts or retains any rent in excess of the maximum rent permitted by this article shall be liable in a civil action to the person from who such payment is demanded, accepted or retained in the sum of three times the amount by which the payments demanded, accepted or retained exceed the maximum rent permitted by this article, together with reasonable attorneys' fees and costs as determined by the court.

(b) Any person violating any of the provisions of this article shall be guilty of a misdemeanor and shall be punishable as provided by section 1-7. Each violation of this article and each day during which any such violation is committed or continued shall constitute a separate offense.

(Code 1968, § 35-10; Ord. No. 1040, § 2(35.10), 12-3-91)

This article shall be reviewed by the city council annually to determine whether it is still required and whether there should be any modifications of its provisions.

(Code 1968, § 35-11; Ord. No. 1040, § 2(35.11), 12-3-91)

If the provisions of this article conflict with any code, ordinance or regulation of the city, the provisions of this article shall govern.

(Code 1968, § 35-12; Ord. No. 1040, § 2(35.12), 12-3-91)

(a) Generally. An owner shall not demand, accept or retain rent for a mobile home space exceeding the rent in effect on August 30, 1988, except as provided in this article.

(b) Reduction in housing services. No owner shall reduce the housing services provided for the rent paid on the effective date of the ordinance codified in this article. Any reduction in such housing services shall be deemed a rent increase in violation of this article.

(c) Resident's refusal to pay excess rent. A resident may refuse to pay rent in excess of the maximum rent permitted by this article. The fact that any such unpaid rent is in excess of the maximum rent permitted by this article shall be a defense in any action brought to recover possession of a mobile home space and for nonpayment of rent or to collect the illegal rent.

(d) Annual rent increases. The rent for a mobile home space may be increased by up to 100 percent of CPI once each calendar year, provided that the rent for that space has not been increased during the preceding 12 months, except as permitted by subsections (e), (f), (g) and (h), upon notice to the resident in compliance with state law and notice to the rent administrator at the same time as notice is given to the resident.

(e) Vacancy rent increases. Each owner shall be entitled to one unregulated increase per space upon vacancy. A vacancy should be defined as the time during which the mobile home is sold and vacated or removed by the previous owners. A vacancy should not be defined as a change of title due to the death of one party and the subsequent inheritance of the mobile home by another party. After the rent increase has taken effect, the space is to go back under rent control as stipulated by this article. Notice of any such increase shall be given to the rent administrator by the owner within ten days of renting the space.

(f) Administrative rent increase applications. An owner may obtain an increase equal to the amount of any increase in the cost of the utilities paid for by the owner, and any increase in property tax or the cost reasonably incurred in installing a completed capital improvement by application to the rent administrator. Documentation of the increased utility costs and tax or the costs incurred in completing the capital improvement must be provided as part of the application, and any increase based on such costs must be apportioned equally among all the spaces in the mobile home park on a monthly basis. A capital improvement increase must further be amortized over the useful life of the improvement and shall be calculated by dividing the cost by its useful life, in years, by the number of spaces in the mobile home park and by 12 to arrive at the permitted monthly, per space increase. Any capital improvement increase allowed shall be in effect only for the duration of the useful life period utilized in calculating the increase.

(g) Rent increase pursuant to meet and confer procedures. An owner may seek an increase in addition to the increases permitted by the provisions of subsections (d) through (f) of this section by giving notice of the intent to impose such an increase to each affected resident and to the rent administrator. The notice shall specify the amount of the requested increase, the reasons that the increase is being requested, and shall set a date and time not sooner than ten days and not longer than 15 days after the notice has been delivered to each affected resident for a meet and confer meeting between the residents and the park owner, to be held at the mobile home park. The owner shall provide to the residents documentation of the increase costs or other bases for the requested increase at or before the meeting. If 51 percent of the residents, as determined by the vote of one adult resident 18 years of age or older from each space in the park subject to this article, reach agreement with the owner on the rents to be charged at that meeting, the agreement shall be put in writing and signed by that 51 percent of the residents, and a copy thereof shall be filed with the rent administrator within five days after the meet and confer meeting. Upon filing the copy of the agreement with the rent administrator, the owners may begin charging the agreed rents upon compliance with applicable state law provisions regarding notice and collection of rent increases. If no such agreement is reached, no increase other than those permitted by subsections (d), (e) and (f) of this section shall be permitted unless approved pursuant to the arbitration procedures set forth in subsection (h) of this section.

(h) Rent increases pursuant to arbitration.

(1) If the meet and confer procedures set forth in subsection (g) of this section do not result in agreement, an owner may apply for arbitration of the requested rent increase by filing an application with the rent administrator within ten days after the meet and confer meeting. The administrator shall have 15 days to determine whether the application is complete. An application shall be assigned to an arbitrator as soon as it has been accepted as complete. The application may pertain to one, some or all the spaces in the mobile home park.

(2) The arbitrator shall set an application for a hearing within 30 days of the date it is accepted as complete. Notice of the arbitration hearing shall be sent to all affected residents and the owner, informing them of the hearing date at least 25 days prior to the hearing. The notice shall state that any written or photographic materials they wish to submit concerning the application must be submitted to the arbitrator at least ten days prior to the hearing date.

(3) The arbitration hearing shall be recorded either by a certified court reporter or on audio tape. The owner and the residents shall be afforded an opportunity to present their position and may be assisted by counsel; formal rules of evidence shall not apply.

(4) The arbitrator's decision shall be in writing, shall include findings of fact and shall be supported by substantial evidence. The written decision shall be completed and delivered to the owner and the affected residents so that it is in the owner's possession no later than 40 days after the application was accepted as complete. The arbitrator's decision shall be final.

(Code 1968, § 35-04; Ord. No. 1040, § 2(35.04), 12-3-91; Ord. No. 1070, § 1, 12-15-92)

The rent regulation provisions in section 14-65 shall not apply to:

(1) Mobile home spaces rented for the first time after the effective date of ordinance codified in this article.

(2) A mobile home park where 60 percent of the spaces in the park have entered long-term leases exempt from rent control pursuant to the California Mobile Home Residency Law, Civil Code § 798 et seq.

(Code 1968, § 35-03; Ord. No. 1040, § 2(35.03), 12-3-91)

An arbitrator shall grant a rent increase when the maximum rent otherwise provided by this article is not sufficient to permit the owner to receive a just and reasonable return. In reviewing applications for rent increases under this section, the arbitrator shall consider the following factors, in addition to other relevant factors:

(1) The length of time since the last rent increase.

(2) The increase in the CPI since the last rent increase.

(3) The space rents in comparable mobile home parks in the city and surrounding areas.

(4) Increases in the operating and maintenance costs reasonably incurred in operating the mobile home park. Debt service shall be considered an operating and maintenance expense when it was incurred to finance the purchase of the mobile home park prior to the adoption of this article and when it was incurred to perform necessary maintenance and repairs. An increase in debt service, or a portion thereof, incurred to purchase the mobile home park after the adoption of this article may be considered a reasonable operating and maintenance expense only upon a finding that incurring this cost was reasonable under all the circumstances. In this regard, the owner shall be deemed to have purchased the mobile home park with knowledge of this article, and this knowledge shall be considered one of the relevant circumstances to be considered in evaluating the reasonableness of the debt service incurred.

(5) The level and quality of the housing services provided and any change therein since the last increase.

(6) The income (gross receipts minus reasonable operating and maintenance costs) of the mobile home park and changes in income since the last rent increase.

(Code 1968, § 35-05; Ord. No. 1040, § 2(35.05), 12-3-91)

All owners shall permanently post a copy of this article, together with any amendments in the park office or other conspicuous spot. Owners shall notify any resident, prior to entering into a rental agreement with such resident, of the existence of this article.

(Ord. No. 1070, § 3, 12-15-92)