Chapter 6.50 — MOBILEHOME PARK SPACE RENT STABILIZATION PROGRAM

Code reviser’s note: Ordinance 2857, adopted July 17, 2023, amended this chapter in its entirety. The sections,

beginning with Section 6.50.130, have been renumbered to account for the addition and deletion of sections in

the ordinance.

A. For several years, mobilehome tenants have requested that the city of Petaluma enact a mobilehome park

space rent stabilization ordinance. Various meetings have been held with mobilehome park owners and

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mobilehome park tenants to address concerns raised by both groups regarding rental increases, vacancy control,

and other issues.

B. In March 1993, the city council was presented with a request for consideration of a fair mobilehome rent

ordinance. In April 1993, the city council appointed to the existing mobilehome rent review committee which

consisted of councilmembers, three mobilehome park owner representatives, and three mobilehome park

tenants. After several meetings, it was reported to the city council in July 1993 that it did not appear that an

agreement could be reached and that further discussions would not be fruitful.

C. Subsequent city council meetings were held in which various issues were discussed and from which input was

received from both mobilehome park owners and mobilehome park tenants and their representatives.

D. Because of the inability of the park owners and park tenants to reach a resolution of their diUerences, the city

council retained the services of Connerly & Associates, Inc., an experienced consultant, to conduct a mobilehome

park survey. The purpose of the survey was to collect relevant information on mobilehome park resident

characteristics, space rents, and the mobilehome parks in Petaluma.

E. On November 15, 1993, Connerly & Associates, Inc., submitted to the city council a written report detailing

their Rndings, which included the following:

1. Nearly sixty percent of the survey respondents were single adults, while virtually all the remaining

respondents comprised two-person households. There were only four respondents who reported having

three household members.

2. Most of the respondents, nearly eighty percent, reported being age sixty-two or more.

3. The majority of respondents at all the mobilehome parks reported being "low income," meaning they

earned less than twenty-three thousand eight hundred Rfty dollars per year for a single person, or twenty-

nine thousand Rve hundred dollars per year for a two-person household. For all the parks, nearly ninety

percent of the survey respondents are low income.

4. Over Rfty percent of the residents in all but one mobilehome park reported their income as being within

the "very low income" range, sixteen thousand one hundred Rfty dollars for a single person or eighteen

thousand seven hundred dollars for a two-person household. About sixty percent of the survey respondents

in all the parks reported their income as being at the "very low income" level or less.

5. Just over half the respondents in all the mobilehome parks reported they pay more than thirty percent of

their income for housing expenses (space rents; mortgage, if any; utilities; property taxes or registration fees;

and homeowner’s insurance). About forty percent of the residents reported paying more than thirty-Rve

percent of their income for housing expenses.

6. The average rents in the parks, as reported by residents responding to the surveys, range from a low of

one hundred ninety-eight dollars per month to three hundred seventy-Rve dollars per month. The average

monthly rental reported by respondents for all the parks was two hundred eighty-four dollars per month. By

comparison, the average space rent reported by respondents for all the parks was two hundred two dollars in

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1986. The average space rents reported by residents were within Rve dollars to ten dollars per month of

those reported by the park owners.

7. The average rental space rent increase was Rve percent per year between 1986 and 1993.

8. None of the park owners responding to the survey reported vacant mobilehome spaces.

F. The city council has discussed and reviewed the above Rndings and conclusions, and has received

information through public hearings and concludes, based on said information and the Rndings herein, that it is

necessary and in the public interest to establish a mechanism to assist in the resolution of disputes that may arise

from time to time between residents and park owners regarding the rates charged for rental or lease of space as

well as instances where there is a sale or transfer of the mobilehomes by the mobilehome residents. In addition,

the city recognizes the right of the park owners to obtain a fair and reasonable rate of return and for their

property to generate income to cover costs of operation and servicing of reasonable Rnancing and to have under

the auspices of the city an administrative procedure which will operate eUectively and expeditiously to approve

rent increases as are reasonable to meet said ends. At the same time there is a need to establish a means which if

followed can provide protection to tenants from unreasonable rent increases resulting in loss of value to their

property.

G. Program 19 of the 2023-2031 Housing Element, part of the city’s General Plan 2025, which the city council

adopted on March 20, 2023, and the State Department of Housing and Community Development found to be in

substantial compliance with the State Housing Element Law on May 18, 2023, lists programs for promoting the

long term aUordability of mobilehome units in the city, including: mobilehome land use designations that apply to

the city’s seven mobilehome parks; supporting the administration of the city’s mobilehome rent stabilization

program that was implemented to provide rent stabilization for over three hundred seventeen lower income

mobilehome park tenants, most of whom are elderly; continuing to support the aUordability of mobilehome parks

by working with residents and property owners to monitor rents and ensure rent increases are economically

feasible; annually monitoring mobilehome park rents to ensure compliance with the city’s rent stabilization

ordinance; as requested, conducting mediations between tenants and mobilehome park owners for rent

increases; and updating the mobilehome rent stabilization ordinance.

H. A signiRcant majority of the residents of mobilehome parks in the city of Petaluma are older individuals or

couples living on Rxed incomes. These residents qualify as "low" and "very low" income households and typically

expend more than thirty percent of their income on housing related expenses.

I. Nearly all mobilehome park residents own and occupy their mobilehome and have made a substantial

monetary investment to live in a mobilehome park.

J. Residents of a mobilehome park have very limited mobility due to the diTculty and expense of relocating a

mobilehome.

K. There is a limited amount of alternative housing aUordable to and suitable for the typical mobilehome park

resident and mobilehome parks are a valuable resource of aUordable housing for low and very low income

individuals and families.

The Petaluma Municipal Code is current through Ordinance 2916 NCS, passed December 1, 2025.

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L. The city of Petaluma is committed to assisting in the preservation of decent, safe and sanitary housing

aUordable to all economic segments of the community, especially mobilehome lots aUordable to low and very low

income individuals and families.

M. The city council Rnds there is a shortage of spaces for the location of mobilehomes in the city, a condition

which results in low vacancy rates and tends to prevent normal competition between the owners and tenants of

mobilehome parks. Rents have been for several years and are presently rising at rates in some instances greater

than increases in the CPI, which has caused concern to a substantial number of mobilehome owners. The city

council Rnds that a substantial number of mobilehome owners in the city have for a long time asserted a need for

rent control and that eUorts of the city council in the past to mediate diUerences between park owners and their

tenants have been notably unsuccessful.

N. As a practical matter, many of the mobilehomes in the city’s mobilehome parks are not mobile. A large

percentage of the mobilehomes were manufactured before 2000. Very few mobilehome parks will accept

mobilehomes that are more than a few years old. The cost of moving and installing a mobilehome in a park is

substantial. Many of the mobilehomes are "doublewide" structures that consist of two ten- or twelve-foot-wide

sections joined together when installed on top of a simple foundation. Mobilehomes are rarely moved after they

are placed in mobilehome parks. When mobilehome park residents move they typically sell their mobilehomes "in

place" on the rented space.

O. Court opinions and academic reviews have repeatedly noted the captive nature of mobilehome park

tenancies. In 2001, the California Supreme Court concluded:

THE MOBILEHOME OWNER-MOBILEHOME PARK OWNER RELATIONSHIP: This case concerns the

application of a mobilehome rent control ordinance, and some background on the unique situation of

the mobilehome owner in his or her relationship to the mobilehome park owner may be useful. The

term “mobilehome” is somewhat misleading. Mobile homes are largely immobile as a practical matter,

because the cost of moving one is often a signiRcant fraction of the value of the mobile home itself. They

are generally placed permanently in parks; once in place, only about 1 in every 100 mobile homes is ever

moved. [Citation.] A mobile home owner typically rents a plot of land, called a “pad,” from the owner of a

mobile home park. The park owner provides private roads within the park, common facilities such as

washing machines or a swimming pool, and often utilities. The mobile home owner often invests in site-

speciRc improvements such as a driveway, steps, walkways, porches, or landscaping. When the mobile

homeowner wishes to move, the mobile home is usually sold in place, and the purchaser continues to

rent the pad on which the mobile home is located. (Yee v. Escondido (1992) 503 U.S. 519, 523.) Thus,

unlike the usual tenant, the mobilehome owner generally makes a substantial investment in the home

and its appurtenances— typically a greater investment in his or her space than the mobilehome park

owner, [cite omitted] The immobility of the mobilehome, the investment of the mobilehome owner, and

restriction on mobilehome spaces, has sometimes led to what has been perceived as an economic

imbalance of power in favor of mobilehome park owners. (Galland v. Clovis, (2001) 24 Cal.4th 1003,

1009).

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P. The Florida Supreme Court concluded that mobilehome owners face an "absence of meaningful choice" when

space rents increase:

Where a rent increase by a park owner is a unilateral act, imposed across the board on all tenants and

imposed after the initial rental agreement has been entered into, park residents have little choice but to

accept the increase. They must accept it or, in many cases, sell their homes or undertake the

considerable expense and burden of uprooting and moving. The ’absence of meaningful choice’ for these

residents, who Rnd the rent increased after their mobile homes have become aTxed to the land, serves

to meet the class action requirement of procedural unconscionability. (Lanca Homeowners, Inc. v.

Lantana Cascade of Palm Beach, Ltd., 541 So. 2d I121,1124 (Fla.), cert, denied, 493.)

Q. In response to the special situation of mobilehome park residents, California has adopted the Mobilehome

Residency Law, a landlord-tenant law that provides special protections for mobilehome park tenants. (California

Civil Code Section 798 et seq. ) In addition, approximately one hundred twenty jurisdictions in California have

adopted some type of rent control of mobilehome park spaces. Typically, local rent control ordinances tie annual

allowable rent increases to the percentage increase in the consumer price index. Most local ordinances do not

permit additional rent increases or limit rent increases to ten percent or less when a mobilehome is sold in place.

Local ordinances generally permit park owners to petition for additional rent increases in order to obtain a fair

return.

R. Mobilehome owners, unlike apartment tenants or residents of other rental units, are in the unique position of

having made a substantial investment in a residence which is located on a rented or leased parcel of land. The

mobilehome owner’s investment commonly includes the purchase of the mobilehome and the cost of installing

the mobilehome on its space along with related improvements such as a foundation, carports, and integrated

landscaping. Excessive rent increases may lead to relocations, drastically reducing or eliminating mobilehome

owners’ equity in their mobilehomes, and causing mobilehome owners to lose a substantial portion or all of their

investment.

S. Due to their limited incomes, the large investment in their mobilehomes, the immobility of mobilehomes, and

the shortage of spaces for mobilehomes, mobilehome owners generally have very limited economic bargaining

power concerning rents charged for mobilehome lots.

T. A number of residents of Petaluma mobilehome parks have expressed the concern that they could become

homeless if mobilehome park owners were to impose signiRcant rent increases.

U. Increasing the number of homeless residents in Petaluma, particularly elderly residents who may be in need

of medical or other care, would create public health and safety risks.

V. The Mobilehome Residency Law expressly authorizes cities to regulate the setting and/or increasing of rents

for the use and occupancy of a mobilehome space, subject to certain exceptions. This chapter is intended to

comply with the Mobilehome Residency Law and all other applicable state and federal laws and regulations.

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W. The city council intends that this chapter be interpreted and enforced fairly and equitably, in a

nondiscriminatory manner, and in accordance with constitutional requirements. For these reasons it is intended

that the respective provisions of this chapter be liberally construed and be considered severable, and that if any

portion of it is declared unconstitutional or unenforceable, the remaining portions shall remain valid and in eUect.

X. The purposes of this chapter include:

1. Preventing the imposition of exploitive, excessive and unreasonable mobilehome space rent increases;

2. Assisting in alleviating the unequal bargaining power which exists between mobilehome park residents

and mobilehome park owners;

3. Providing mobilehome park owners with a guaranteed rate of annual space rent increase which over

time adequately adjusts mobilehome space rents to account for the impact of inSation on park owner rates

of return;

4. Providing an eTcient and speedy process to ensure mobilehome park owners receive a fair, just and

reasonable rate of return in cases where the guaranteed annual space rent increases provided by this

chapter prove insuTcient to realize a reasonable rate of return;

5. In the absence of a lawful vacancy, preventing excessive or exploitive rent increases upon the transfer of

a mobilehome-on-site (i.e., on the mobilehome pad) to a new mobilehome owner while at the same time

providing a process whereby mobilehome park owners are assured of receiving a fair and reasonable return.

(Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.)

For purposes of this chapter, the following terms are deRned as follows. Any reference to statutes includes any

regulations promulgated thereunder as the courts have construed such statutes and regulations, as such statutes

and regulations may be amended from time to time, and any successor statutes and regulations.

A. "AUected tenants" means those tenants who qualify for the rent control and other protections of this chapter

in accordance with the provisions of this chapter and other applicable law.

B. "Arbitrator" shall mean a person (1) who is neither a tenant as that term is deRned in this chapter nor who

has an interest in a mobilehome park of a nature that would require disqualiRcation under the provisions of the

Political Reform Act if the person were a public oTcial subject to that act, (2) who has experience in analysis of

Rnancial records, and (3) who the clerk determines meets one of the following criteria:

1. Completion of a Juris Doctor or equivalent degree from a school of law and completion of a formal

course of training in arbitration which, in the sole judgment of the clerk, provides that person with the

knowledge and skills to conduct a space rent dispute arbitration in a professional and successful manner; or

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2. Completion of at least three arbitration proceedings for a Superior Court or other public entity that

involved issues the clerk Rnds similar to those raised in space rent dispute arbitrations; or

3. Having served as a California Superior Court judge, administrative law judge, appellate judge, or judge

pro tempore.

C. "Base rent" means the authorized rent, calculated pursuant to the provisions of Section 6.50.030, plus any

rent increase allowed under this chapter or any rent adjustment as provided in Section 6.50.220.

D. "Base year" means the 1993 calendar year.

E. "Clerk" means the clerk of the Petaluma mobilehome space rent stabilization program, who shall be the city

manager or their designee.

F. "Capital improvements" are those improvements that directly and primarily beneRt and serve the existing

mobilehome owners by materially adding to the value of the property and appreciably prolong its useful life or

adapt it to new uses, and which may be amortized over the useful remaining life of the improvement to the

property pursuant to the IRS Code and its regulations. "Capital improvements" exclude ordinary maintenance and

repairs.

G. "Consumer price index" or "CPI" means the consumer price index for all urban consumers, San Francisco-

Oakland Area, published by the U.S. Department of Labor, Bureau of Labor Statistics.

H. "Current year" means the calendar year that precedes the year in which the petition is Rled.

I. "Housing service" means a service provided by the owner related to the use or occupancy of a mobilehome

space, which is neither a capital improvement nor substantial rehabilitation as those terms are deRned herein,

including but not limited to repairs, replacement maintenance, painting, lighting, heat, water, laundry facilities,

refuse removal, recreational facilities, parking, security service, and employee services. Housing services include

those services that the mobilehome park owner is required to provide pursuant to:

1. California Civil Code Sections 1941.1 and 1941.2.

2. The Mobile Home Residency Law, California Civil Code Section 798 et seq.

3. The Mobile Home Parks Act, California Health and Safety Code Section 18200 et seq.

4. The landlord’s implied warranty of habitability, which cannot be contractually excluded or waived.

5. An express or implied agreement between the mobilehome park owner and the tenant.

"Housing services" do not include legal fees, mortgage payments whether for principal, interest, or both, bonuses

of any nature paid to mobilehome park employees, penalties, damages, or interest assessed or awarded for

violations of this chapter or any other law, or any expenses for which the mobilehome park owner has been

reimbursed by any security deposit, insurance settlement, judgment for damages, settlement, or any other

method.

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J. "Initial rent increase" means the Rrst rent increase imposed by a mobilehome park owner after the eUective

date of the ordinance codiRed in this chapter.

K. "Mobilehome" means a structure designed for human habitation and for being moved on a street or highway

under permit pursuant to California Vehicle Code Section 35790 in accordance with California Civil Code Section

798.3. "Mobilehome" includes a manufactured home, as deRned in California Health and Safety Code Section

18007, and a mobilehome, as deRned in California Health and Safety Code Section 18008, but does not include a

recreational vehicle, as deRned in California Health and Safety Code Section 18010 , or a commercial coach, as

deRned in California Health and Safety Code Section 18001.8 except when such a vehicle has continuously

remained within a mobilehome park for a period in excess of nine months.

L. "Mobilehome park" means any area of land within the incorporated areas of the city of Petaluma where two

or more mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes used for human

habitation subject to and in accordance with all applicable land use regulations.

M. "Mobilehome park owner" or "owner" means any owner, lessor, sublessor, operator or manager of a

mobilehome park in the incorporated areas of the city of Petaluma who receives or is entitled to receive rent for

the use or occupancy of any mobilehome space thereof, and the representative, agent or successor of any of the

foregoing who reports to the Internal Revenue Service any income received or loss of income resulting from such

ownership or claims any expenses credits, or deductions because of such ownership.

N. "Mobilehome space" means any site within a mobilehome park located in the incorporated areas of the city

of Petaluma 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 subject to all applicable land use

regulations except (1) sites rented together and concurrently with a mobilehome provided by the mobilehome

park owner and (2) "new construction" as deRned by California Civil Code Section 798.7. The term "mobilehome

space" shall also include, for purposes of this chapter, rentable spaces within mobilehome parks which have been

occupied by a "recreational vehicle" as deRned by California Health and Safety Code Section 18010 for a period of

nine months or more.

O. "Mobilehome tenant" or "tenant" means a tenant, subtenant, lessee, or sublessee, or any other person

entitled to the use or occupancy of any mobilehome space not otherwise a party to a rental agreement exempt

from regulation under this chapter or other applicable laws or regulations.

P. "Net operating income" means net operating income as deRned in Section 6.50.110(A).

Q. "Party" as used in this chapter refers to any aUected mobilehome tenant and/or owner involved in

proceedings under this chapter.

R. "Percent change in consumer price index" means the annual percent change in the CPI, calculated to the

nearest tenth. For the Rrst percent change in CPI, it shall be calculated using the CPI published for the month of

March, issued in the month of April. In the event an index is not published for the month of March, the closest

preceding month for which an index is published shall be used. Subsequent yearly percent changes in CPI shall be

calculated to the nearest tenth, published for the month of July, issued in the month of August. In the event that

an index is not published for the month of July, the closest preceding month for which an index is published shall

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be used. It is the intent of this chapter to Rx the CPI in the beginning of the Rscal year, for the rest of the Rscal year

barring an unforeseen failure to publish a CPI for the month of July.

S. "Rent," "mobilehome space rent" and "space rent" mean the total consideration, including any bonus, beneRt,

or gratuity, demanded or received by a mobilehome park owner for or in connection with the use or occupancy of

a mobilehome space or any housing services provided with the mobilehome space. Space rent shall not include

any amount paid for the use or occupancy of a mobilehome dwelling unit, unless the amount paid for the use or

occupancy of a mobilehome is or includes consideration paid to a mobilehome park owner under a rental

agreement or other document evidencing tenancy of the mobilehome.

T. "Rent increase" means any additional space rent demanded of or paid by a tenant for a mobilehome space

including any reduction in housing services without a corresponding reduction in the amount demanded or paid

for rent. Said increase shall be (1) uniform in percentage rate relative to current base rent; or (2) uniform in dollar

amount relative to base rent.

U. "Rent stabilization administration fee" means the fee established from time to time by resolution or

ordinance of the Petaluma city council in accordance with the provisions of Section 6.50.170.

V. "Service reduction," for purposes of calculating reductions in housing services without a corresponding rent

reduction and that therefore constitute rent increases pursuant to subsection T of this section, means a decrease

or reduction of services provided by a park owner after the eUective date of this chapter, including, but not limited

to, services the park owner is required to provide pursuant to:

1. California Civil Code Section 1941.1.

2. The Mobilehome Residency Law, California Civil Code Section 798 et seq.

3. The Mobilehome Parks Act, California Health and Safety Code Section 18200 et seq.

4. The park owner’s implied warranties, including the implied warranty of habitability.

5. An express or implied agreement between the park owner and tenant.

6. Applicable provisions of this code, or the Petaluma Implementing Zoning Ordinance, Ordinance 2300

N.C.S.

7. Other reductions in services provided to tenants within a park compared with services previously

provided to tenants within the park.

The term "service reduction" expressly includes, but is not limited to, reductions in parking spaces provided to

tenants within a park compared with parking spaces previously provided to tenants within the park.

W. "Substantial rehabilitation" means that work done by an owner to a mobilehome space or to the common

areas of a mobilehome park, exclusive of a capital improvement as that term is deRned in this chapter, the value

of which exceeds two hundred dollars and which is performed to secure compliance with any state or local law or

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to repair damage resulting from Rre, earthquake, or other casualty or natural disaster, to the extent such work is

not reimbursed by insurance.

X. "Tenant-to-be" means a person who is not currently a tenant in a mobilehome park but is a prospective

mobilehome space tenant who desires the use of a mobilehome space as deRned in this chapter and has

presented themself to the park owner as such.

(Ord. 2909 NCS §3, 2025; Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.)

A. Except as hereinafter provided, an owner shall not demand, accept, or retain rent for a mobilehome space

exceeding the rent in eUect for said space on the eUective date of the ordinance codiRed in this chapter. If a

previously rented mobilehome space was not rented on the eUective date of the ordinance codiRed in this

chapter, the owner shall not, except as hereinafter provided, demand, accept or retain rent for said space

exceeding the rent in eUect during the last month the space was rented prior to the eUective date of the ordinance

codiRed in this chapter.

B. Any mobilehome park owner who disputes that the initial base rent established by subsection A of this

section is suTcient to cover operation and maintenance costs, rehabilitation costs, and capital improvement costs,

and still provide the owner a fair and reasonable return, may seek adjustment to said initial base rent by

submitting a written request to the clerk requesting an opportunity to adjust said initial base rent and shall supply

both the clerk and each aUected tenant with the notice of request along with the grounds for any such request.

The matter shall be submitted to arbitration as prescribed in Section 6.50.060(E) through (G).

(Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.)

A. The space rent payable for use or occupancy of any mobilehome space shall not be increased within twelve

months of the eUective date of the preceding rent increase. Rent increases permitted under this chapter may not

exceed the lesser of:

1. Seventy percent of the percent change in the CPI; or

2. Four percent,

except pursuant to subsection D or E of this section and in accordance with the procedures in Sections 6.50.050

and 6.50.060. If the change in the CPI is negative, no rent increase is permitted.

B. 1. Notice by Clerk. The allowable rent increase shall be annually calculated by the clerk and posted by August 15th of each year or as soon thereafter as is reasonably practicable in the Petaluma City Hall and on

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the city’s website, and shall be provided to any mobilehome park owner or tenant who requests the annual

rent increase limit.

2. Notice by Mobilehome Park Owners. A copy of the clerk’s notice of the allowable rent increase for that year

shall be posted in a prominent place by each park owner in each mobilehome park or provided to the tenants

within Rve working days after it is received by the mobilehome park owner.

C. An increase in a space rent pursuant to subsection A of this section may only be imposed upon registration of

the mobilehome space in the city’s registry system, pursuant to Section 6.50.230, payment of the required annual

rent stabilization administration fee pursuant to Section 6.50.170, and otherwise subject to and in compliance with

all applicable requirements of this chapter and other applicable federal, state, and local laws and regulations,

including the requirements that apply to notices of rent increase pursuant to this chapter and the Mobilehome

Residency Law.

D. If a park owner wishes to apportion to each space on a pro rata basis the allowable percentage of any current

rent stabilization administration fee, in addition to any increase of space rent in accordance with subsection A of

this section, the following provision shall apply:

1. The owner shall provide to all aUected tenants documentation supporting the allowable amount to be

collected in order to recover a portion of rent stabilization administration fees. At a minimum such

documentation shall include: billing notices or other equivalent documents from the city imposing the rent

stabilization administration fee; a copy of Section 6.50.170 which authorizes the apportionment of rent

stabilization administration fees; and the calculations used by the owner to apportion the cost of the

allowable percentage among the aUected tenants. In addition, the owner shall provide all aUected tenants

with the address and telephone number of the clerk and the fact that aUected tenants are encouraged to

contact the clerk for an explanation of the provisions of this chapter.

2. A rent increase in accordance with the provisions of this subsection and the procedure set forth in

Section 6.50.170 for applying a portion of the rent stabilization administrative fee shall not be considered part

of the rent base upon which future rent increases can be made.

E. In the event an owner wishes to increase the rent payable for any mobilehome space within a twelve-month

period in excess of the amount permitted in subsection A of this section for any reason other than that stated in

subsection D of this section, the procedures set forth in Sections 6.50.050 and 6.50.060 shall be followed to

establish why such an increase is necessary. The arbitrator may reduce the proposed increase to a Rgure (which

may be zero) determined based upon the preponderance of the evidence submitted to be reasonably necessary

to result in the park owner receiving a fair return upon investment.

F. A notice of rent increase given by an owner pursuant to subsection B, C or E of this section shall be given in

writing at least ninety days before any rent increase is to take eUect.

G. The initial rent increase as deRned by Section 6.50.020(I) may be allowed within twelve months of the

eUective date of the preceding rent increase if the mobilehome park owner can clearly establish to an arbitrator

based on the preponderance of the evidence submitted that extraordinary circumstances exist which require an

increase to result in the mobilehome park owner receiving a fair and reasonable return. In the event an owner

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wishes to increase rent payable for any mobilehome space under this subsection, the procedures set forth in

Sections 6.50.050 and 6.50.060 shall apply.

H. A mobilehome park owner who does not impose an annual rent increase or a portion of the permitted

annual rent increase in any twelve-month period, as provided in this section, waives the permitted annual rent

increase or the remaining portion of the permitted annual rent increase, for the remainder of the tenancy.

(Ord. 2909 NCS §3, 2025; Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.)

A. Within thirty days after the operative date of this chapter and any amendments to this chapter and upon

rerenting of any mobilehome space thereafter, the owner shall supply each aUected tenant or tenant-to-be with a

current copy of this chapter, and such other information as the clerk may prescribe.

B. Whenever an owner serves a notice of rent increase, except a notice of rent increase provided pursuant to

Section 6.50.040(B), the owner shall at the same time and in the same manner serve the aUected tenant or tenant-

to-be with a notice that sets forth all of the following information:

1. The amount of the rent increase both in dollars and as a percentage of existing rent and documentation

supporting the level of increase desired, including at a minimum: a summary of the unavoidable increases in

maintenance and/or operating expenses; a statement of the cost, nature, amortization, and allocation among

mobilehome spaces of any substantial rehabilitation or capital improvement; a summary of the increased

cost of the owner’s debt service and the date and nature of the sale or reRnancing transaction; a summary of

the owner’s net operating income of the preceding twenty-four months and other relevant information that

supports the level of rent increase desired;

2. The identity of all other aUected tenants and the spaces which they rent and a roster of tenants in the

park occupying recreational vehicles in place for more than nine months;

3. The address and telephone number of the clerk and (a) the fact that the tenant is encouraged to contact

the clerk for an explanation of the provisions of this chapter; (b) documentation supporting the level of

increase is on Rle with the clerk; and

4. A copy of the oTcial petition form as prepared and provided by the clerk;

5. In addition, park owners shall place on Rle with the clerk two copies of the same information speciRed in

subsection (B)(1) of this section. These documents will be available for inspection at the oTces of the clerk;

6. NotiRcation that the proposed rent increase exceeds the annual rent increase permitted pursuant to

Section 6.50.040(A), and that arbitration is deemed automatically required by the provisions of this chapter

without any need to Rle an arbitration petition. Such notices shall bear the following language:

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ARBITRATION OF THE PROPOSED INCREASE IS AUTOMATICALLY REQUIRED IN THIS MATTER BY

OPERATION OF LAW. PLEASE CONTACT THE CLERK FOR MORE INFORMATION ON THE ARBITRATION

PROCESS.

C. The park owner shall also serve any tenant-to-be with a separate "RENTAL OPTION" notice which sets forth in

capital letters the notice speciRed in Section 6.50.070, Rights of "tenant-to-be."

D. Any owner failing to provide an aUected tenant or tenant-to-be and the clerk with the information,

documents, and notices required by this section shall not be entitled to collect any rent increase otherwise

authorized by this chapter from that tenant nor to any rent increase that might otherwise be awarded by an

arbitrator. Such failure by the owner shall be a defense in any action brought by the owner to recover possession

of a mobilehome space or to collect any rent increase from the tenant. Any owner may cure the failure to serve

any notice or satisfy the obligation to provide information to a tenant or tenant-to-be that is required under this

chapter by giving such notice or information before initiating an action for possession of the space or collecting

any rent increase or binding a tenant-to-be to a month-to-month rental/long-term lease election otherwise

authorized hereunder.

(Ord. 2909 NCS §3, 2025; Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.)

A. Tenant’s Right to Contact Clerk. Tenants may contact the clerk for an explanation of the provisions of this

chapter.

B. Petition. If an owner seeks to increase space rent above the rent authorized by Section 6.50.040(A), the owner

or their representative must Rle with the clerk a petition for space rent review and a copy of the notice of rent

increase within twenty-one days after the date upon which the rent increase notice is received. Upon the Rling of a

petition, the rent increase is not eUective and may not be collected until and only to the extent it is awarded by an

arbitrator or until the petition is abandoned except for that portion of the rent increase permitted pursuant to

Section 6.50.040(A). As used herein, the term "abandoned" refers to lack of prosecution of the arbitration by the

owner or owner’s representative(s). The clerk shall reject a petition Rled in contravention of the twelve-month

reRling prohibition of subsection (G)(6) of this section.

C. Contents of Petition.

1. Petitions for space rent review must set forth the total number of aUected rented spaces in the

mobilehome park, identify the space occupied by each tenant and state the date upon which the notice of the

rent increase was received by the tenant(s) and include all other information speciRed in the oTcial petition

form as prepared and provided by the clerk.

2. The owner shall deliver the petition or mail it by registered or certiRed mail to the clerk at the following

address: Petaluma City Hall, 11 English Street, Petaluma, California 94952 (or successor address or agency).

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No petition shall be accepted unless it is complete and is received in the oTce of the clerk within the twenty-

one-day period set forth in subsection B of this section. The owner shall provide a copy of the completed

petition form to the arbitrator, and the service providers speciRed in the petition form within seven working

days of Rling the petition with the city.

D. Information Questionnaire. After the clerk has accepted a petition for space rent review, the clerk shall remit to

the owner and tenants an information questionnaire in such form as the clerk may prescribe. The petitioning

owner and aUected tenants must return the completed information questionnaire to the clerk at least Rve working

days prior to the date scheduled for the arbitration hearing. The clerk will provide copies of the completed

information questionnaires to the owner, the aUected tenants and the arbitrator.

E. Assignment of Arbitrator and Hearing Date. Upon receipt of a rent review petition or upon an aUected tenant’s

claim of a vacancy control violation where an unauthorized rent increase has been sought, or upon an owner’s

request to adjust the initial base rent pursuant to Section 6.50.030(B), the clerk shall, within seven working days,

assign an arbitrator. The clerk shall set a date for the arbitration hearing no sooner than fourteen days nor later

than sixty working days after the arbitrator is assigned; except that no arbitration hearing shall be set in December

except in cases of exceptional, unforeseen circumstances upon a showing of good cause by the petitioning owner

as determined in the sole discretion of the arbitrator. The owner and aUected tenant(s) shall be notiRed

immediately in writing by the clerk of the date, time, and place of the hearing and this notice shall be served

electronically and either in person or by ordinary mail. The arbitrator may grant or order one continuance each

not to exceed Rfteen days from the hearing date set by the clerk to the petitioning owner and aUected tenants.

The arbitrator may grant further continuances that are stipulated to by the petitioning owner and the aUected

tenants. The arbitrator may set a schedule for brieRng or other written submissions in advance of the hearing date

and may issue other orders related to prehearing procedure.

F. Meet and Confer. At least ten days before the date of an arbitration hearing, aUected mobilehome tenants and

mobilehome park owners and/or their representatives shall meet and confer. The time, place and date of the

meeting shall be agreed to by the parties to the arbitration or, if the parties cannot agree, shall be determined by

the clerk. At the meeting, the parties and/or their representatives shall exchange the documentary evidence that

they in good faith then know will be used to support their respective positions in the arbitration, and discuss the

issues in dispute. In the case of an owner, all Rnancial data upon which any proposed increase is claimed shall be

supplied to aUected tenants at the meet and confer meeting. The parties may request that the clerk provide a

mediator, applying the proceeds of the fees collected pursuant to Section 6.50.170, to assist with the meet and

confer meeting. The arbitrator may deny a proposed rent increase based on the petitioning owner’s failure to

participate in good faith in the meet and confer process, or may rule as to the admissibility or inadmissibility in the

arbitration of information not provided in the meet and confer meeting as required.

G. Arbitration Hearing.

1. In any arbitration pursuant to this chapter there shall be a rebuttable presumption that the annual net

operating income earned by a mobilehome park owner and rent increases permitted in accordance with

Section 6.50.040(A) provide the mobilehome park owner with a reasonable return. Mobilehome park owners

shall bear the burden to prove to the arbitrator based upon the preponderance of the evidence the

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reasonable necessity of any rent increase sought in addition to that permitted pursuant to Section 6.50.040(A)

to earn a reasonable return.

2. The arbitrator shall determine whether a park owner is earning a reasonable return by applying the

   maintenance of net operating income (“MNOI”) standard. Any decision pursuant to this subsection shall

   include a determination of:

   a. Base year and current year gross rental income;

   b. Base year and current year operating expenses by category;

   c. Base year and current year overall operating expenses;

   d. Base year and current year net operating income;

   e. The percentage change in net operating income between the base period and the current period;

   f. The percentage change in the CPI between the base period and the current period;

   g. The ratio of the percentage change in net operating income to the percentage change in the CPI

   between the base period and the current period;

   h. The rent adjustment required, if any, under an MNOI standard pursuant to Section 6.50.100 and this

   section.

   The allowance or disallowance of any proposed rent increase or portion thereof may be reasonably

   conditioned in any manner necessary to eUectuate the purposes of this chapter.

   3. The owner and tenant(s) may appear at the hearing and oUer oral and documentary evidence. Both the

   owner and tenant(s) may designate a representative or representatives to appear for them at the hearing.

   The hearing need not be conducted according to technical rules relating to evidence and witnesses. The rules

   of evidence and manner of producing evidence shall be those rules set forth in California Government Code

   Section 11513 for the conduct of hearing under the Administrative Procedure Act. These rules may be relaxed

   at the discretion of the arbitrator in the interest of justice. Unless the arbitrator, for good cause shown,

   increases the maximum time for party presentations and cross examination, presentations of each party

   including their witnesses and experts shall be limited to a total of two hours for each party, and each party

   shall be permitted up to a total of one hour for each party to cross examine the other parties’ witnesses and

   experts. For purposes of this subsection, in determining whether the "good cause" standard has been met,

   the arbitrator may consider the complexity of the arguments presented, the number of witnesses to be

   presented, any stipulation of the parties as to the time needed to fairly present the matter, and similar

   factors. Time limitations imposed by the arbitrator shall be applied equally to the parties.

   4. The arbitrator shall, within fourteen days of the hearing, submit by mail and electronic mail a written

   statement of decision and the reasons for the decision to the clerk who shall forthwith distribute by mail and

   electronic mail copies of the decision to the owner and aUected tenant(s). The arbitrator’s statement of

   decision shall set forth the amount of rent increase, if any, in excess of that permitted in accordance with

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Section 6.50.040(A), that is reasonably necessary to provide the owner a reasonable return in accordance with

subsection (G)(1) of this section and other applicable provisions of this chapter and other applicable laws and

regulations.

5. An arbitrator shall not allow more than one rent increase per park in the twelve-month period following

the eUective date of the preceding rent increase.

6. The decision of the arbitrator, rendered in accordance with this section, shall be Rnal and binding upon

the owner and all aUected tenants. The decision of the arbitrator will be subject to the provisions of California

Code of Civil Procedure Section 1094.5. Upon an arbitrator issuing a decision that denies a rent increase, the

owner is precluded from Rling a subsequent petition for rent increase at the park for a period of twelve

months following the date the denied rent increase would have been eUective had the petition been

successful.

7. Any party may have electronic recording equipment or a court reporter present to record and prepare a

transcript of the hearing before the arbitrator; however, such equipment or reporter shall be provided at that

party’s own expense, and no electronic equipment or court reporter is required to conduct the arbitration.

8. The arbitrator is authorized to modify the time periods set forth in this chapter at their discretion to

promote the purposes of this chapter provided a Rnal decision is rendered within ninety days of the notice of

proposed rent increase.

9. Any procedural or jurisdictional dispute regarding the proceedings set forth in this section may be

decided by the arbitrator.

10. Arbitrators acting pursuant to this chapter shall lack the jurisdiction to award and may not award

attorneys’ fees or experts’ or witnesses’ fees or costs or other costs of the arbitration proceedings brought

pursuant to this chapter, whether pursuant to Galland v. City of Clovis (2001) 24 Cal.4th 1003 or any other

authority. Award of attorneys’ fees or expert witnesses’ fees or costs or other costs of arbitration proceedings

in response to rent increase petitions Rled by park owners pursuant to this chapter may incentivize rent

increase petitions and penalize residents for merely exercising their rights under this chapter, contrary to the

purposes of this chapter. Any such award shall be reversible error in any proceedings brought under Code of

Civil Procedure Section 1094.5 regarding an arbitration decision pursuant to this chapter.

(Ord. 2909 NCS §3, 2025; Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.)

Any person who is a "tenant-to-be" as deRned in Section 6.50.020(V) must be oUered the option of renting a

mobilehome space in a manner which will permit the "tenant-to-be" to receive the beneRts of this chapter which

include, but are not limited to, rental of a mobilehome space on a month-to-month basis, and a new base rent as

set forth in Section 6.50.220(B). "Tenants-to-be" cannot be denied the option of a tenancy subject to the rent

increase and other protections contained in this chapter. Park owners shall provide each "tenant-to-be" with the

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following written notice, along with a copy of California Civil Code Section 798.17, each in all caps and at least ten

point type:

UNDER PETALUMA MUNICIPAL CODE SECTION 6.50.070, YOU ARE LEGALLY ENTITLED TO ELECT A

MONTH-TO-MONTH TENANCY OVER ANY OTHER LONGER PERIODIC TENANCY. YOU ARE ADVISED THAT

YOU MAY NOT BE ENTITLED TO RENT STABILIZATION (RENT CONTROL) PROGRAM BENEFITS IF YOU

ELECT A LEASE OF MORE THAN TWELVE MONTHS IN DURATION IF THAT LEASE MEETS THE

REQUIREMENTS OF CIVIL CODE SECTION 798.17 WHICH HAS BEEN ATTACHED HERETO.

Any eUort to circumvent the requirements of this section shall be unlawful, and a violation of this chapter subject

to the remedies in Section 6.50.200, as well as an unfair business practice subject to enforcement under California

Business and Professions Code Section 17200 et seq. (Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.)

Subpoenas, including subpoenas duces tecum, requiring a person to attend a particular time and place to testify

as a witness, may be issued in connection with any dispute pending before an arbitrator under this chapter, and

shall be issued at the request of the clerk, an arbitrator, the tenant(s) or the owner. Subpoenas shall be issued and

attested by the city clerk. A subpoena duces tecum shall be issued only upon the Rling with the city clerk of an

aTdavit showing good cause for the production of the matters or things desired to be produced, setting forth in

full detail the materiality thereof to the issues involved in the proceedings, and stating that the witness has the

desired matters or things in his or her possession or under his or her control, and a copy of such aTdavit shall be

served with the subpoena. Any subpoena or subpoena duces tecum issued pursuant to the provisions of this

chapter may be served in person or by certiRed mail, return receipt requested, and must be served at least Rve

days before the hearing for which the attendance is sought. Service by certiRed mail shall be complete on the date

of receipt. Any subpoena or subpoena duces tecum issued pursuant to the provisions of this chapter shall be

deemed issued by and in the name of the city council of the city of Petaluma. (Ord. 2857 NCS §3 (Exh. A), 2023;

Ord. 1949 NCS §1, 1994.)

As soon as possible after a petition has been Rled with respect to mobilehome spaces which are within a single

park, the clerk shall, to the extent possible, consistent with the time limitations provided herein, consolidate

petitions. (Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.)

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A. Presumption of Fair Base Year Net Operating Income. It shall be presumed that the net operating income

received by the owner in the base year provided the park owner with a fair return.

B. Fair Return. A park owner has the right to obtain a net operating income equal to the base year net operating

income adjusted by one hundred percent of the percentage increase in the CPI since the base year. It shall be

presumed this standard provides a fair return. The base year CPI shall be the annual average CPI for 1993. The

current year CPI shall be the annual average CPI for the calendar year which is used as the current year in the

application.

C. Adjustment of Base Year Net Operating Income. The parties may present evidence regarding the presumption of

fair return based upon the base year net operating income as set forth in subsection A of this section to establish

or rebut at least one of the following Rndings:

1. Exceptional Expenses in the Base Year. The park owner’s operating expenses in the base year were

unusually high or low in comparison to other years. In such instances, adjustments may be made in

calculating operating expenses so the base year operating expenses reSect average expenses for the

property over a reasonable period of time. The following factors shall be considered in making such a Rnding:

a. Extraordinary amounts were expended for necessary maintenance and repairs.

b. Maintenance and repair was below accepted standards so as to cause signiRcant deterioration in

the quality of services provided.

c. Other expenses were unreasonably high or low notwithstanding the application of prudent business

practices.

2. Exceptional Circumstances in the Base Year. If the gross income during the base year was

disproportionately low due to exceptional circumstances, adjustments may be made in calculating base year

gross rental income consistent with the purposes of this chapter. The following factors shall be considered in

making such a Rnding:

a. If the gross income during the base year was lower than it might have been because some residents

were charged reduced rent.

b. If the gross income during the base year was signiRcantly lower than normal because of the

destruction of the premises and/or temporary eviction for construction or repairs.

c. The pattern of rent increases in the years prior to the base year and whether those increases

reSected increases in the CPI.

d. Base year rents were disproportionately low in comparison to the base year rents of other

comparable parks in the city.

e. Other exceptional circumstances.

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D. Calculation of Net Operating Income.

1. Net Operating Income. Net operating income shall be calculated by subtracting operating expenses from

gross rental income.

2. Gross Rental Income.

a. Gross rental income shall include:

(1) Gross rents calculated as gross rental income at one hundred percent occupancy, adjusted for

uncollected rents due to vacancy and bad debts to the extent such vacancies or bad debt are

beyond the control of the owner. Uncollected space rents in excess of three percent of gross space

rent shall be presumed to be unreasonable and shall not be included in computing gross income,

unless the reasonableness is established to the satisfaction of an arbitrator based on the

preponderance of the evidence.

(2) All other income or consideration received or receivable in connection with the use or

occupancy of the rental unit, except as provided in subsection (D)(2)(b) of this section.

b. Gross rental income shall not include:

(1) Utility charges for charges for sub-metered gas and electricity.

(2) Charges for water, refuse disposal, sewer service, and/or other services which are either

provided and charged to mobilehome residents solely on a cost pass-through basis and/or are

regulated by state or local law.

(3) Any amount paid for the use and occupancy of a mobilehome unit (as opposed to amounts

paid for the use and occupancy of a mobilehome space).

(4) Charges for laundry services.

(5) Storage charges.

3. Operating Expenses.

a. Included in Operating Expenses. Operating expenses shall include the following:

(1) Reasonable costs of operation and maintenance.

(2) Management Expenses. Management expenses including the compensation of administrative

personnel, including the value of any mobilehome space oUered as part of compensation for such

services, reasonable and necessary advertising to ensure occupancy only, legal and accounting

services as permitted herein, and other managerial expenses. Management expenses in excess of

Rve percent of gross income are presumed unreasonable and shall not be included in computing

operating expenses, unless the reasonableness is established to the satisfaction of an arbitrator

based on the preponderance of the evidence.

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(3) Utility Costs. Utility costs except where the consideration of the income associated with the

provision of the utility service is regulated by state law and consideration of the costs associated

with the provision of the utility service is preempted by state law.

(4) Real Property Taxes. Real property taxes, subject to the limitation that property taxes

attributable to an assessment in a year other than the base year or current year shall not be

considered in calculating base year and/or current year operating expenses.

(5) License and Registration Fees. License and registration fees required by law to the extent these

expenses are not otherwise paid or reimbursed by tenants.

(6) Owner-Performed Labor. Owner-performed labor compensated at reasonable hourly rates.

(A) No owner-performed labor shall be included as an operating expense unless the owner

submits documentation showing the date, time, and nature of the work performed.

(B) Owner-performed labor expenses in excess of Rve percent of gross income are presumed

unreasonable and shall not be included in computing operating expenses, unless the

reasonableness is established to the satisfaction of an arbitrator based on the preponderance

of the evidence that the greater services performed a demonstrable beneRt for the residents.

(7) Costs of Capital Replacements. Costs of capital replacements plus an interest allowance to cover

the amortization of those costs where all of the following conditions are met:

(A) The capital improvement is made at a direct cost of not less than one hundred dollars per

aUected rental unit or at a total direct cost of not less than Rve thousand dollars, whichever is

lower.

(B) The costs, less any insurance proceeds or other applicable recovery, are averaged on a per

unit basis for each rental unit actually beneRted by the improvement.

(C) The costs are amortized over a period of not less than thirty-six months.

(D) The costs do not include any additional costs incurred for property damage or

deterioration that result from any unreasonable delay in undertaking or completing any repair

or improvement.

(E) The costs do not include costs incurred to bring the facilities into compliance with a

provision of applicable city code and/or state law where the original installation of the

improvement was not in compliance with then-applicable code requirements.

(F) At the end of the amortization period, the allowable monthly rent is decreased by any

amount it was increased because of the application of this provision.

(8) Legal Expenses. Allowable attorneys’ fees and costs include: those incurred in the course of

successful, good faith attempts to recover rents owing and successful, good faith unlawful detainer

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actions in compliance with applicable law; legal expenses necessarily incurred in dealings with

respect to the normal operation of the park to the extent such expenses are not recovered from

adverse or other parties or other sources; and reasonable fees, expenses, and other costs incurred

in the course of successful, good faith proceedings under this chapter, and regulations adopted

pursuant to the chapter, including such costs incurred in the course of pursuing successful fair

return petitions. Legal expenses incurred in the course of proceedings under this chapter will only

be considered "successful" and thus treated as operating expenses under this section in direct

proportion to the success of the proceedings and in accordance with the following example: If a

park owner petitions for a rent increase in excess of the amount permitted without an arbitration

pursuant to Section 6.50.040, and the arbitrator awards a rent increase that equals ten percent of

the amount of the increase sought, ten percent of the legal expenses incurred may be treated as

operating expenses pursuant to this section in a subsequent rent arbitration proceeding pursuant

to this chapter; provided further, that the percentage of legal expenses incurred that may be treated

as operating expenses pursuant to this section is further reduced by the percentage rent increase

permitted without an arbitration pursuant to Section 6.50.040. For example, in a rent arbitration

where an arbitrator awards a rent increase that equals ten percent of the amount of the increase

sought, and the amount permitted without an arbitration pursuant to Section 6.50.040 in that year

was two percent, then the amount of legal expenses treated as operating expenses in a subsequent

rent arbitration proceeding pursuant to this chapter shall be further reduced by the two percent

rent increase permitted without an arbitration in that year, such that a maximum of eight percent of

the legal expenses incurred in that arbitration may be treated as operating expenses in subsequent

arbitrations pursuant to this chapter. Legal expenses that may be treated as operating expenses

pursuant to this section shall be amortized over a Rve-year period in determining net operating

income.

(9) Interest Allowance for Expenses That Are Amortized. An interest allowance shall be allowed on the

cost of amortized expenses; the allowance shall be the interest rate on the cost of the amortized

expense equal to the "average rate" for thirty-year Rxed rate on home mortgages plus two percent.

The "average rate" shall be the rate Freddie Mac last published in its weekly Primary Mortgage

Market Survey (PMMS) as of the date of the initial submission of the petition. In the event that this

rate is no longer published, the index which is most comparable to the PMMS index shall be used.

b. Exclusions From Operating Expenses. Operating expenses shall not include the following:

(1) Mortgage principal or interest payments or other debt service costs.

(2) Any penalties, fees or interest assessed or awarded for violation of any provision of this

chapter or of any other provision of law.

(3) Land lease expenses.

(4) Political contributions and payments to organizations which are substantially devoted to

legislative lobbying purposes.

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(5) Depreciation.

(6) Any expenses for which the owner has been reimbursed by any utility rebate or discount,

security deposit, insurance settlement, judgment for damages, settlement or any other method or

device, including payment of the expense by tenants on a pass-through basis.

(7) Unreasonable increases in expenses since the base year.

(8) Expenses associated with the provision of master-metered gas and electricity services.

(9) Expenses which are attributable to unreasonable delays in performing necessary maintenance

or repair work or the failure to complete necessary replacements (e.g., a roof replacement may be a

reasonable expense, but if water damage occurred as a result of unreasonable delays in repairing

or replacing the roof, it would not be reasonable to pass through the cost of repairing the water

damage).

E. Assurance of a Fair Return. It shall be presumed that the MNOI standard provides a fair return. Nothing in this

chapter shall preclude an arbitrator from granting an increase that is necessary in order to meet constitutional fair

return requirements providing that all the other requirements of this chapter are satisRed.

(Ord. 2909 NCS §3, 2025.)

For purposes of the arbitrator’s evaluation of a space rent increase proposed by an owner in excess of the

increase permitted in accordance with Section 6.50.040(A), the following shall apply:

A. "Net operating income" of a mobilehome park means the gross income of the park less the operating

expenses of the park.

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

1. Gross space rents, computed as gross space rental income at one hundred percent occupancy; plus

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

services actually rendered; plus

3. Revenue received by the park owner from the sale of gas and electricity to park residents where such

utilities are billed individually to the park residents by the park owner. This revenue shall equal the total cost

of the utilities to the residents minus the amount paid by the park owner for such utilities to the utility

provider; minus

4. Uncollected space rents due to vacancy and bad debts to the extent that the same are beyond the park

owner’s control. Uncollected space rents in excess of three percent of gross space rent shall be presumed to

be unreasonable unless established otherwise to the reasonable satisfaction of the arbitrator based upon the

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preponderance of the evidence, and shall not be included in computing gross income. Where uncollected

space rents must be estimated, the average of the preceding three years’ experience shall be used.

C. "Operating expenses" means:

1. Real property taxes and assessments.

2. Utility costs to the extent that they are included in space rent.

3. Management expenses including the compensation of administrative personnel, including the value of

any mobilehome space oUered as part of compensation for such services, reasonable and necessary

advertising to ensure occupancy only, legal and accounting services as permitted herein, and other

managerial expenses. Management expenses are presumed to be not more than Rve percent of gross

income, unless established otherwise to the reasonable satisfaction of the arbitrator based on the

preponderance of the evidence.

4. Normal repair and maintenance expenses for the grounds and common facilities including but not

limited to landscaping, cleaning and repair of equipment and facilities.

5. Owner-performed labor in operating or maintaining the park. In addition to the management expenses

listed above, where the owner performs managerial or maintenance services which are uncompensated, the

owner may include the reasonable value of such services. Owner-performed labor shall be limited to Rve

percent of gross income unless the arbitrator Rnds based upon the preponderance of the evidence, that such

a limitation would be substantially unfair in a given case. A park owner must devote substantially all of his or

her time, that is, at least forty hours per week, to performing such managerial or maintenance services in

order to warrant the full Rve percent credit of his or her labor as an operating expense. No credit for such

services shall be authorized unless a park owner documents the hours utilized in performing such services

and the nature of the services provided.

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

7. Insurance premiums prorated over the life of the policy.

8. Other taxes, fees, and permits, except as provided in Section 6.50.170.

9. Reserves for replacement of long-term improvements or facilities; provided, that accumulated reserves

shall not exceed Rve percent of gross income.

10. Necessary capital improvement costs exceeding existing reserves for replacement. A park owner may

include the cost of necessary capital improvement expenditures which would exceed existing reserves for

replacement. A necessary capital improvement shall be an improvement required to maintain the common

facilities and areas of the park in a decent, safe, and sanitary condition or to maintain the existing level of

park amenities and services.

Expenditures for necessary capital improvements to upgrade existing facilities shall be an allowable operating

expense only if the park owner has:

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a. Established upon written veriRcation or by other competent evidence to the satisfaction of the

arbitrator based on the preponderance of the evidence that the cost of the capital improvements

provided to the park tenants, for their general use, is factually correct as claimed.

b. Said capital improvements are wholly compensable to the park owner upon appropriate

amortization of their cost, together with a reasonable return upon the capital improvement investment

made by the park owner as determined by the arbitrator based on the preponderance of the evidence.

c. Any capital improvement expenses shall be amortized over the reasonable life of the improvement

or such other period as may be deemed reasonable by the arbitrator under the circumstances. In the

event that the capital improvement expenditure is necessitated as a result of an accident, disaster, or

other event for which the park owner received insurance beneRts, only those capital improvement costs

otherwise allowable exceeding the insurance beneRts may be calculated as operating expenses.

11. Involuntary reRnancing of mortgage or debt principal. A park owner may, under the provisions of this

subsection, be able to include certain debt service costs as an operating expense. Such costs are limited to

increases in interest payments from those interest payments made during the period from May 1, 1993,

through April 30, 1994, or the Rrst year such payments were made if the owner acquired the park after July 1,

1992, which result from one of the following situations or the equivalent thereof:

a. ReRnancing of the outstanding principal owed for the acquisition of a park where such reRnancing is

mandated by the terms of a Rnancing transaction entered into prior to April 30, 1994, for instance,

termination of a loan with a balloon payment; or

b. Increased interest costs incurred as a result of a variable interest rate loan used to Rnance the

acquisition of the park and entered into prior to April 30, 1994.

In reRnancing, increased interest shall be permitted to be considered as an operating expense only where the

park owner can show that the terms of the reRnancing were reasonable and consistent with prudent

business practices under the circumstances.

D. Operating expenses shall not include the following:

1. Debt service expenses, except as provided in subsection (C)(11) of this section.

2. Depreciation.

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

4. Attorneys’ fees and costs, except printing costs and documentation as required by Section 6.50.050 only,

incurred in proceedings before an arbitrator or in connection with the legal proceedings challenging the

decision of an arbitrator or the validity or applicability of this chapter.

5. The fees and costs incurred by a mobilehome park owner to prepare, Rle or pursue a petition for space

rent increase in excess of the increase permitted in accordance with Section 6.50.040(A).

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E. All operating expenses must be reasonable. Whenever a particular expense exceeds the normal industry or

other comparable standard, the park owner shall bear the burden of proving the reasonableness of the expense

to the reasonable satisfaction of the arbitrator based upon the preponderance of the evidence. To the extent that

an arbitrator Rnds any such expense to be unreasonable, the arbitrator shall adjust the expense to reSect the

normal industry or other comparable standard.

(Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.)

A. If a Rnal decision by an arbitrator Rnds that a proposed increase or any portion thereof that was previously

inoperative is justiRed, the tenant shall pay the amount found justiRed to the owner within thirty days after the

decision is made.

B. If a Rnal decision by an arbitrator Rnds that an increase or any portion thereof is not justiRed, the owner shall

refund any amount found to be unjustiRed, but that had been paid, to the tenant within thirty days after the

decision is made. If such refund is not made within the said thirty days, the tenant may withhold the amount from

the next space rent(s) due until the full amount of the refund has been made. Notwithstanding the foregoing, in

the event that the tenancy of tenant is terminated for any reason prior to full credit against rent, the balance of

the credit due the tenant shall be paid by the owner within thirty days from the date of the termination of the

tenancy.

C. Any sum of money that under the provisions of this section is the obligation of the owner or tenant, as the

case may be, shall constitute a debt and, subject to the foregoing provisions of this section, may be collected in

any manner provided by law for the collection of debts.

(Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.)

A. It shall be unlawful for a mobilehome park owner to demand any rent in excess of the increase permitted in

accordance with Section 6.50.040(A) during the period from the Rling of a timely petition to the date an arbitrator’s

decision approving such excess is rendered.

B. It shall be unlawful for a mobilehome park owner to demand, accept, receive or retain any rent in excess of

the maximum rent allowed by the decision of an arbitrator in accordance with this chapter.

C. It shall be unlawful for a mobilehome park owner to demand, accept, receive, or retain any rent in excess of

the maximum rent allowed in accordance with applicable provisions of this chapter.

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D. In the event an aUected tenant paid rent in excess of that permitted by this chapter, the mobilehome park

owner shall reimburse the aUected tenant the entire amount of overpayment in one lump sum payment, which

must be paid by the time the aUected tenant’s next monthly rent obligation is due.

E. Any violation of the requirements of this section is unlawful and subject to the remedies in Section 6.50.200.

(Ord. 2857 NCS §3 (Exh. A), 2023.)

A tenant may refuse to pay any increase in rent which is in violation of this chapter, provided a petition has been

Rled and either no Rnal decision has been reached by an arbitrator or the increase has been determined to violate

the provisions of this chapter. Such refusal to pay shall be a defense in any action brought to recover possession

of a mobilehome space or to collect the rent increase. (Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.

Formerly 6.50.130.)

No owner or person acting on behalf of an owner may retaliate against a tenant or tenant-to-be for the tenant’s or

tenant-to-be’s assertion or exercise of their rights under this chapter in any manner, including, but not limited to,

threatening to bring or bringing an action to recover possession of a mobilehome space; engaging in any form of

harassment that causes a tenant to quit the premises; attempting to dissuade a tenant-to-be from freely

exercising their legal options to choose a month-to-month or other rental subject to the protections of this

chapter; decreasing housing services; increasing the space rent; or imposing or increasing a security deposit or

any other charge payable by a tenant. Any such retaliation is a violation of this chapter and subject to the

remedies speciRed in Section 6.50.200. In an owner action against an aUected tenant, evidence of the assertion or

exercise by the tenant of rights pursuant to this chapter or under applicable state or federal law within one

hundred eighty days prior to an alleged act of retaliation by or on behalf of an owner shall create a rebuttable

presumption that the owner’s action is retaliatory. Mobilehome park tenants have a right to organize a tenants

association without hindrance from a park owner or person acting on behalf of a park owner to exercise the rights

provided under the provisions of this chapter. This association may be referred to as "the Park Tenants

Association at (Park Name)." (Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994. Formerly 6.50.140.)

without force.

The distribution of a petition or other documents seeking to have mobilehome tenants waive rights, abandon a

Rled petition or in any way aUect the entitlement of the tenants to participate in the rent stabilization process

authorized under this chapter shall be without force or legal eUect. Such documents shall not aUect the rights of

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any tenant to participate in the rights, remedies, procedures and processes set forth in this chapter. EUorts to

utilize such documents to discourage participation in the city’s rent stabilization program may be deemed

retaliatory in accordance with Section 6.50.150. (Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994.

Formerly 6.50.150.)

The costs of administration of this chapter shall be borne by the city subject to reimbursement of the general fund

by imposition of a rent stabilization administration fee chargeable against each mobilehome space in the city. The

costs to which the administrative fee proceeds may be applied include, but are not limited to: the costs of

administering and enforcing the rent stabilization provisions of this chapter; defending the provisions of this

chapter against litigation; providing mediators for rent disputes; providing grants to mobilehome park

homeowners’ associations; and costs of supporting legal and other service providers assisting aUected tenants in

exercising their rights under this chapter. Park owners who pay the city’s mobilehome rent stabilization

administrative fees may pass through to tenants Rfty percent of the fees assessed against and paid for a

mobilehome space only as set forth herein. The fee pass-through must take place no later than twelve months

after the park owner is billed for the program administration fees. Failure to timely pass through Rfty percent of

the fees assessed against a mobilehome space pursuant to this chapter will result in the loss of the park owner’s

right to do so. The remaining Rfty percent of the fees assessed against a mobilehome space shall not be passed on

in any way to tenants. Fees passed through to tenants as herein authorized shall not be considered a part of the

rent base upon which future rent increases can be made.

The fees imposed by this section shall be paid annually. On or before June 1, 1994, of the adoption year of this

chapter and thereafter on or before April 30th of each and every subsequent year, each mobilehome park owner

shall pay to the city clerk of the city of Petaluma a mobilehome park rent stabilization program administration fee

for each mobilehome space as deRned herein, including both occupied and unoccupied mobilehome spaces, in

the owner’s mobilehome park, except for those spaces exempt from the requirements of this chapter pursuant to

California Civil Code Sections 798.17(a) and (b) or other applicable laws or regulations. The city clerk of the city

shall forward mobilehome rent stabilization fee proceeds to the clerk to administer this chapter. Further, the city

clerk shall issue to each mobilehome park owner a receipt for payment of the fees. Any person owing money to

the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the

recovery of such amount. A service fee equal to one and one-half percent per month will be charged on all late

payments of fees pursuant to this chapter. The city council shall adopt the amount of the fee and any changes

thereto by ordinance or resolution. (Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994. Formerly 6.50.160.)

Any park owner who believes that they may be entitled to a space fee exemption pursuant to California Civil Code

Section 798.17(b) or other applicable laws or regulations shall provide the clerk with the following documentation:

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A. A copy of the executed lease for each exempt space claimed;

B. Copies of amendments to said exempt lease if any;

C. For a newly constructed space, proof that the space was constructed after January 1, 1990 (building permits,

etc.).

The clerk’s decision to grant a space fee exemption shall be Rnal. (Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS

§1, 1994. Formerly 6.50.170.)

Any provision, whether oral or written, in or pertaining to a rental agreement whereby any provision of this

chapter is waived or modiRed, is against public policy and void, and a violation of this chapter subject to the

remedies in Section 6.50.200, except with respect to any rental exempt from the requirements of this chapter in

accordance with California Civil Code Section 798.17 or other applicable laws or regulations. (Ord. 2857 NCS §3

(Exh. A), 2023; Ord. 1949 NCS §1, 1994. Formerly 6.50.180.)

In addition to those penalties and remedies set forth elsewhere in this chapter, and that may be available under

other applicable law or regulations, the following remedies shall apply:

A. Liability for Unlawfully Retained Funds. Any owner who demands, accepts, receives, or retains any money as

rent from a tenant to which the owner is not entitled under the provisions of this chapter shall be liable to the

tenant for any actual damages, attorney’s fees, and costs incurred by the tenant as a consequence thereof plus a

penalty in the sum of three times the amount of money the owner accepted, received, or retained in violation of

the provisions of this chapter or Rve hundred dollars, whichever is greater.

B. A7rmative Defense. A park owner’s failure to comply with the requirements of this chapter shall be an

aTrmative defense to an owner action to recover possession of a mobilehome space of an aUected tenant.

C. City Authority To Enforce This Chapter.

1. The city shall have the right and authority, but not the duty, to enforce the requirements of this chapter

by bringing actions for injunctive relief on behalf of the city or aUected tenants to which this chapter applies,

and by seeking compliance by park owners with the requirements of this chapter through administrative

remedies or by citation.

2. The city in its sole discretion may choose to enforce the provisions of this chapter through administrative

Rnes and any other remedies provided in Chapters 1.10 through 1.16. The city’s decision to pursue or not

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pursue enforcement of any kind shall not aUect the rights of aUected tenants to whom this chapter applies to

pursue civil remedies for violations of this chapter.

D. No Cause of Action Against the City. To the maximum extent permitted by law, nothing in this chapter may be

construed to create a cause of action against the city, or a basis for seeking an award of attorney’s fees against the

city pursuant to the private attorney general’s statute in California Code of Civil Procedure Section 1021.5, or on

any other basis arising from or related to an alleged violation of the requirements of this chapter, and/or based on

or related to the city’s prosecution or enforcement or alleged failure to prosecute or enforce any such alleged

violation, and/or based on or related to the city’s implementation or alleged failure to implement the requirements

of this chapter.

E. Violations of this chapter may be civilly enforced as unfair business practices by any competent authority,

including, but not limited to, the city attorney, in accordance with California Business and Professions Code Section

17200 et seq.

F. Remedies provided by this section are in addition to any other legal or equitable remedies and are not

intended to be exclusive.

(Ord. 2909 NCS §3, 2025; Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994. Formerly 6.50.190.)

This chapter shall not be construed to limit or curtail any other action or proceeding which may be pursued by an

aUected tenant against an owner before any court or other body having jurisdiction thereof. (Ord. 2857 NCS §3

(Exh. A), 2023; Ord. 1949 NCS §1, 1994. Formerly 6.50.200.)

A. A mobilehome park owner shall be permitted to charge a new base rent for a mobilehome space whenever a

lawful space vacancy occurs. For purposes of this chapter, a lawful space vacancy is deRned as follows:

1. A vacancy occurring because of the termination of the tenancy of the aUected mobilehome tenant in

accordance with the Mobilehome Residency Law pursuant to Civil Code Section 798.56. Notice given by a

tenant to the manager or owner of a mobilehome park sixty days prior to vacating a tenancy pursuant to Civil

Code Section 798.59 does not create a lawful vacancy permitting the charging of a new base rent pursuant to

this section.

2. A vacancy of the mobilehome space arising from the voluntary removal of a mobilehome from the

mobilehome space by the aUected mobilehome tenant. A removal of the mobilehome from the space for the

purpose of performing rehabilitation or capital improvements to the space or for the purpose of upgrading

the mobilehome or relocating the mobilehome to a diUerent space within the same park shall not constitute

a voluntary removal of the mobilehome.

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B. When a new base rent is established following the vacancy of a mobilehome space pursuant to this

subsection, in addition to providing the required notice for tenants to be in accordance with Sections 6.50.050 and

6.50.070, the park owner shall give written notice to the new aUected mobilehome tenant of the twelve-month

anniversary date for rent increases allowed under Section 6.50.040, and shall give written notice to such aUected

tenant that the space rent may be subject to stabilized rent increases pursuant to the provisions of this chapter.

C. In the absence of a lawful vacancy, a park owner is prohibited from raising rent upon a sale of a mobilehome

on site to a tenant-to-be or current tenant.

D. No increase may be imposed pursuant to this section where title to the mobilehome passes to one or more

person(s) who, at the time of the title transfer, (1) was/were also lawful, authorized resident(s) of the mobilehome,

or (2) were/are parents, siblings, children, nieces, or nephews of the mobilehome owner and the mobilehome

remains in the same space.

E. No increase may be imposed pursuant to this section if a space rent increase was imposed pursuant to this

section within the twenty-four-month period preceding the current lawful vacancy.

F. It shall be a violation of this chapter for a park owner to condition an in-place transfer of a mobilehome or to

condition assignment of an existing lease on an aUected tenant’s or tenant-to-be’s acceptance of an increased

space rent in excess of that permitted in accordance with Section 6.50.040(A) or on an aUected tenant’s or tenant-

to-be’s acceptance of a rental agreement exempt from the requirements of this chapter.

(Ord. 2909 NCS §3, 2025; Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994. Formerly 6.50.240.)

A. On or before June 1, 1994, each mobilehome park owner must register the parks which they own or operate

with the city clerk by Rling with the city clerk a letter or other instrument in writing which identiRes the park and

which furnishes:

1. The current mailing address of owners and operators;

2. The number of spaces in the park;

3. The number of spaces under construction, if any, or planned for construction;

4. The identity of present tenants and lessees, and their mailing addresses;

5. The rental, lease payments and other considerations charged for the use of the spaces; and

6. A description of the park and the services, amenities and other considerations to the tenants and lessees

which the owner or operator may consider as bearing on the question of fair rental amounts.

7. Such other information as the clerk may prescribe.

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B. On or before April 30th of each year subsequent to the adoption year, each mobilehome park owner in the

city of Petaluma, as long as the city council for the city of Petaluma may so authorize and/or allow, shall register

with the city clerk of the city of Petaluma by providing, in writing, on a completed city registration form, if the clerk

has provided a registration form:

1. The current name, address and telephone number of each such mobilehome owner;

2. A statement of the number of mobilehome spaces, including both occupied and unoccupied spaces,

contained in each such park, and a statement of the number of recreational vehicle spaces in the park;

3. The number of spaces under construction, if any, or planned for construction;

4. The number of spaces in the park subject to the requirements of this chapter;

5. The rental, lease payments and other considerations charged for the use of the spaces;

6. A description of the park and the services, amenities and other considerations available to the tenants

and lessees which the owner or operator may consider as bearing on the question of fair rental amounts;

7. Whether there are lawfully vacant spaces in accordance with Section 6.50.220 in the park; and

8. Such other information as the clerk may prescribe.

C. Notice of Sale or Transfer of a Mobilehome Park. Reregistration and provision of the information speciRed in

subsection B of this section must also be made upon change of ownership of the mobilehome park or an increase

or a decrease in the number of spaces. Upon the sale or transfer of a mobilehome park, the seller or transferor

shall notify the clerk of the sale or transfer and the name and address of the buyer or transferee. The buyer or

transferee shall provide the clerk a new registration form in accordance with this section within fourteen days of

the sale or transfer.

D. Certi6cation of Registration Forms. All registration forms required pursuant to this section, and any

documentation accompanying any registration forms, shall contain an aTdavit or declaration, signed by the park

owner or a designated agent under penalty of perjury, certifying that the information contained therein is true,

correct, and complete.

(Ord. 2909 NCS §3, 2025; Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1, 1994. Formerly 6.50.260.)

The clerk may develop and publish procedures and guidelines to aid in the implementation of this chapter. (Ord.

2857 NCS §3 (Exh. A), 2023.)

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