Morgan Hill Municipal Code Art. I General Provisions

A. 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 residence for which space is rented or leased. Removal and/or relocation of a mobile home from a park space is not a practical alternative to accepting an excessive rent increase in that it can only be accomplished at substantial cost, and in many instances may cause extensive damage to the mobile home and loss of appurtenances such as integrated landscaping and supporting structures inconsistent with the new location. 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.

B. The city has sponsored extensive negotiations to eliminate the need for the ordinance codified in this chapter. Only one of the city's mobile home parks achieved a mediated solution as a result of this delay. The remaining parks were unable to reach agreement after extensive negotiation; thus, necessitating the ordinance codified in this chapter.

C. Since approximately July, 1981, a heightened pattern of excessive rent increases has emerged within some of the mobile home parks in the city in disregard of the purposes and intent of the city's previous ordinances. Incorporation of these unduly excessive prior increases within the rate structure of this chapter without provisions for their review would materially defeat the purposes and intent of this chapter and the stability it seeks to bring about.

D. The city council declares that it is necessary in the public interest to establish a means by which to resolve the potentially divisive and harmful impasse between park owners and coach owners. After consideration of numerous factors, among which are the relatively small number of parks located within the city, the level of organization and communication between mobile home owners in each park, and mandates of state law, regulations which best fit the needs of the city have been selected.

E. The regulations which are set forth in this chapter are designed to produce stability in rent increases for mobile home park tenants while recognizing the rights of mobile home park owners to receive a just and reasonable return on their property. The standards, utilizing the concept of net operating income and a 1981 base year, adopted by Sections 5.36.250 through 5.36.320 of this chapter are intended to provide the necessary adjustment mechanism to meet constitutional requirements.

F. The council finds that the adoption of the ordinance codified in this chapter will not have a significant, substantial or adverse effect on the physical environment of the community because enactment of this chapter involves no deviation from the general plan and no change in the present use of any property within the city.

(Ord. 856 N.S. § 1 (part), 1988)

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

A. "Capital improvements" means those improvements which materially add to the value of property, appreciably prolong its useful life, or adapt it to new uses, and which are required to be amortized over the useful life of the improvement pursuant to the straight-line depreciation provision of the Internal Revenue Code, and the regulations issued pursuant thereto.

B. "City clerk" means the city clerk at the city of Morgan Hill or the clerk's designate.

C. "Consumer Price Index (CPI)" means the price index for all urban consumers for the San Francisco/Oakland Bay Area (all items), provided by the U.S. Bureau of Labor Statistics.

D. "Hearing panel" means a five-member ad hoc panel the members of which the city manager shall convene first from members of the planning commission, then, if less than five members of the planning commission are available, then the city manager shall convene remaining needed panel members from members of the parks and recreation commission or the library, culture and arts commission.

E. "Housing services" means and includes those services provided and associated with the use or occupancy of a mobile home space, including but not limited to repairs, insurance, maintenance, replacement, painting, light, heat, water, laundry facilities and privileges, refuse removal, parking, recreation facilities, security service and any other benefits, privileges or facilities.

F. "Mobile home" means a structure designed for human habitation and for being moved on a street or highway, whether commonly referred to as a mobile home or as a trailer.

G. "Mobile home owner" or "tenant" means any person owning a mobile home which is located within a mobile home park in the city.

H. "Mobile home park" means an area of land where two or more mobile home spaces are rented, or held out for rent, or made available for use, to accommodate mobile homes used for human habitation.

I. "Mobile home park owner" or "owner" means the owner, lessor, operator or manager of a mobile home park in the city.

J. "Mobile home space" or "space" means a site within a mobile home park designed and available for the location and use of a mobile home for human habitation.

K. "Net operating income" means that return to an owner as described in Article III of this chapter.

L. "Operating expenses" means those costs to an owner as described in Article III of this chapter.

M. "Space rent" means the consideration, including any bonus, benefits or gratuity demanded or received in connection with the use and occupancy of a mobile home space in a mobile home park, or for housing services provided, and security deposits, but exclusive of any amount paid for the use of the mobile home as a dwelling unit.

N. "Space rent increases" means any additional rent demanded of or paid by a tenant for a mobile home space including any reduction in housing services without a corresponding reduction in the moneys demanded or paid for space rent.

(Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

The provisions of this chapter shall not apply to the following:

A. Space rent or space rent increases during a thirty-day period commencing upon the completion of a new mobile home space or mobile home space first rented after July 1, 1986, where the mobile home previously occupying the space has been removed pursuant to a termination of tenancy.

B. Tenancies or rentals pursuant to agreements providing for a fixed term of a period of greater than twelve months meeting the criteria of California Civil Code Section 798.17, Subdivision (b) during the effective term of such rental agreement.

C. Mobile home spaces constructed and first held out for rent after January 1, 1990, as such "new construction" is defined under California Civil Code Section 798.7.

D. A one-time administrative fee of twenty-five dollars may be imposed for mobile home spaces where the mobile home remains, but ownership of the mobile home is transferred. The aforesaid charge is intended to provide a one-time compensation payment for administrative bookkeeping charges in connection with the ownership transfer.

(Ord. 1356 N.S. § 1, 1997: Ord. 1090 N.S. § 1, 1992; Ord. 940 N.S. § 1, 1989: Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

A rollback related in space rent shall be affected as set forth below for mobile homes transferred between October 4, 1989, and the effective date of the ordinance codified in this section. This section shall only apply to space rent for spaces upon which there was a transfer of the mobile home, the mobile home remained on its space in the park, and the transfer occurred between October 4, 1989, and the effective date of the ordinance codified in this section. The space rent for spaces governed by this section collectable from and after the effective date of the ordinance codified in this section shall be established as that space rent in effect at the time of the first transfer of the mobile home after October 4, 1989, adjusted by the amount authorized by any other rent adjustments applicable under this chapter which were applied to other spaces in the mobile home park during the period October 4, 1989, through and including the effective date of the ordinance codified in this section.

(Ord. 1090 N.S. § 2 (part), 1992)

A. A park owner whose space is subject to the provisions of Section 5.36.035 shall be entitled to invoke the hearing process before the hearing panel over the proposed rent rollback within forty-five days of the effective date of the ordinance codified in this section. A petition under this section may only request review of the applicability and limitations on rents adjusted pursuant to Section 5.36.035 and is intended to afford the owner an opportunity to show that the application of the rollback will create a hardship or deprive the park owner of a fair, just and reasonable return.

B. It is the intent of this section that the space rent charged for any mobile home space by a mobile home park owner shall be no greater than the space rent which would apply if Ordinance No. 940, New Series, had not been adopted. It is the express intent of the city council in adopting this ordinance to reenact, reauthorize and reestablish vacancy control as part of the mobile home rent ordinance.

(Ord. 1090 N.S. § 2 (part), 1992)

(Ord. No. 1929 N.S., § 2, 4-22-2009)