Morgan Hill Municipal Code Art. II Rental Dispute Hearing Process

There is established the Morgan Hill mobile home space rental dispute hearing process ("hearing process").

(Ord. 1356 N.S. § 2, 1997: Ord. 856 N.S. § 1 (part), 1988)

Except as provided in this chapter, any space rent increase after the effective date of the ordinance codified in this chapter, which exceeds an aggregate of seventy-five percent of the increase of the CPI for the twelve-month period ending sixty days before notice of such rent increase is given, or eight percent, whichever is less, shall be subject to review under the hearing process.

(Ord. 856 N.S. § 1 (part), 1988)

The space rent of any mobile home space may not be increased more than once in any twelve-month period except as allowed under Section 5.36.030 of this chapter.

(Ord. 856 N.S. § 1 (part), 1988)

If an owner has not raised space rent for more than twenty-four months prior to the latest increase, rental increases in excess of seventy-five percent of the increase in CPI for the twelve-month period ending sixty days before notice of such rent increase is given shall not be subject to this chapter, provided that such increases satisfy the following criteria: If the last increase was more than twenty-four months prior to the current increase, a rental increase not to exceed that set out in Section 5.36.320 of this chapter shall be allowed.

(Ord. 856 N.S. § 1 (part), 1988)

Any owner whose mobile home park is subject to the provisions of this chapter and who seeks to increase rent in excess of the provisions of this chapter shall be required to invoke the hearing process by a petition filed with the city clerk which shall be processed and heard in the same manner as provided in this chapter for tenant applications, provided that the owner shall notify, in writing, all tenants subject to such rental increase and shall include in his filing with the city clerk a document executed by the person who has deposited into the regular first class mail or has personally served the notice affirming the source of the notice upon the tenants, listing the names and addresses of all such tenants.

(Ord. 856 N.S. § 1 (part), 1988)

A. Upon written petition of more than twenty-five percent whose spaces are subject to the terms of this chapter, the rental dispute hearing process may be invoked.

B. In the petition the tenants shall designate an individual to serve as the tenant representative for the purposes of receipt of all notice, correspondence, decisions and finding of fact required in this chapter. Service of notice upon the designated tenant representative will constitute adequate and sufficient notice to the tenants who signed the petition. Failure to designate a tenant representative will render the petition incomplete and the petition will not be accepted for filing.

(Ord. 1356 N.S. § 3, 1997: Ord. 856 N.S. § 1 (part), 1988)

The application for review must be filed on a petition form prescribed by the city manager and must be accompanied by such supporting material as the city manager shall prescribe including, but not limited to, a copy of the owner's notice of space rent increase. Allegations of service reductions shall be submitted in writing. The burden of proof regarding such service reductions shall be on the person alleging such reductions.

(Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

Except as provided in this chapter, a petition must be filed thirty calendar days prior to the effective date of the increase stated in the notice to tenant; provided however, that a tenant shall have at least ten calendar days after receipt of notice of a space rent increase from the owner in which to file a petition.

(Ord. 856 N.S. § 1 (part), 1988)

As soon as possible after petitions have been filed with respect to mobile home park spaces which are under common ownership or management but in no event more than seventy-two hours following receipt of a petition regarding a mobile home park space rent increase, the city manager shall, to the greatest extent possible, consolidate such petitions.

(Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

Whenever an owner notifies a tenant or tenants of a proposed space rent increase which is subject to review under Section 5.36.050 of this article, the owner shall also notify the tenant by the same type of notice or, at the owner's option, in the same notice in a conspicuous manner of the tenant's right to utilize the rental dispute hearing process and shall provide the following:

A. A summary of this chapter approved by the city attorney;

B. A statement that a copy of the chapter or summary was provided to the tenant; and

C. The address and telephone number of the city clerk.

(Ord. 998 N.S. § 1, 1990: Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

Providing that a completed petition is timely filed, concerning a space rent increase subject to this chapter, that portion of the requested rental increase (and only that portion) which exceeds the seventy-five percent increase in CPI limitation described in this chapter, shall not take effect unless and until such time as a hearing panel has conducted a hearing pursuant to Section 5.36.150 and has approved such increase or portion thereof pursuant to the provisions of this chapter.

(Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

Within ten working days from the date the petition as described in this chapter is received by the city clerk, the city manager shall convene a hearing panel. The hearing panel shall conduct a hearing with all parties within thirty days that a petition is filed and deemed complete by the city manager, or within such additional time as may be mutually agreed upon by all parties to the hearing. The city manager shall give at least five calendar days' notice to the parties prior to the date of the hearing. The notice period shall commence upon deposit of the notice in the regular first class mail to the parties. Materials to be considered at the hearing must be made available to both parties to the hearing at least three working days in advance of the hearing date. Extensions of time for the hearing process may be mutually agreed upon by both parties with the concurrence of the members of the hearing panel.

(Ord. 998 N.S. § 2, 1990: Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

The cost of hearings conducted under this chapter shall be paid by the city from fees collected under the provisions of Section 5.36.380.

(Ord. 856 N.S. § 1 (part), 1988)

The hearing shall be chaired by a member of the hearing panel elected by the members of the hearing panel. Any party or their counsel may appear and offer such documents, testimony, written declaration or other evidence as may be pertinent to the proceeding. A record of the proceedings shall be prepared by the hearing panel and submitted to the city clerk who shall maintain it for a period not to exceed two years.

(Ord. 998 N.S. § 3, 1990: Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

Based upon the evidence presented at the hearing, the hearing panel shall make a determination whether or not, in light of all the evidence presented, the proposed rent increase is reasonable under the circumstances, in accordance with the standards set forth in Section 5.36.250 and following of this chapter. The burden of proof regarding such reasonableness shall be on the owner unless otherwise indicated. The standards set forth in Section 5.36.250 and following are expected to provide for a just and reasonable return to owner in all foreseeable cases. However, an owner shall be permitted to include within the petition additional facts showing that due to unique or special circumstances, the strict application of the formulas set out in Section 5.36.250 and following prevents a just and reasonable return on the owner's property to owner. If the hearing panel concurs, then it may adopt an effective rent schedule or fix an increase thereto up to that required for a just and reasonable return to owner.

(Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

Within thirty working days following the conclusion of the hearing, the hearing panel shall make a determination in writing that the proposed space rent increase is reasonable under the circumstances or not, and shall make written findings of fact upon which such determination is based. Within the thirty-working-day period, the city clerk shall cause copies of the determination and the findings to be mailed by regular first class mail to the parties.

(Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

Any rental or service charge increases which have been collected by mobile home park owners pursuant to an increase which is the subject of a petition for hearing and which is later determined by a hearing panel to be excessive, shall, within ninety calendar days be either returned to the tenants or credited to future rental charges at the option of the mobile home park owner. In no event, shall the time period exceed ninety calendar days for carrying out the decision of the hearing panel.

(Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

The determination of the hearing panel shall be final and shall be delivered to the parties in writing together with written findings of fact supporting such determination by depositing the same in the regular United States mail, first class mail, within thirty working days after the hearing provided in Section 5.36.150. Any party disputing the final conclusions and findings of the hearing panel may seek review of them pursuant to Sections 1094.5 and 1094.6 of the California Code of Civil Procedure.

(Ord. 856 N.S. § 1 (part), 1988)

(Ord. No. 1929 N.S., § 2, 4-22-2009)

The determination made under the provisions of this chapter shall be effective with respect to all mobile home park spaces, unless the tenant of such space has a written lease of a period greater than twelve months meeting the criteria of California Civil Code Section 798.17, subdivision (b), with the park owner which otherwise sets forth the rights and obligations of the parties with respect to rent.

(Ord. 1356 N.S. § 4, 1997: Ord. 856 N.S. § 1 (part), 1988)

For any rent increase approved pursuant to proceedings conducted in compliance with the provisions of this chapter, the mobile home park owner shall, when demanding any space rent which includes such allowed amounts, specify with particularity that amount along with a citation as to the authority for that amount and a demonstration of its calculation. Any notice of termination of tenancy served by the mobile home park owner upon a mobile home park tenant on the basis of a failure to pay rent which includes such allowed charges, shall similarly show such charges and the authority for their imposition.

(Ord. 856 N.S. § 1 (part), 1988)

The city manager, in consultation with the city attorney, may promulgate and issue administrative regulations and procedures in order to implement the provisions of this chapter and assure efficient and fair administration of the requirements of this chapter.

(Ord. No. 1929 N.S., § 2, 4-22-2009)