Redlands Municipal Code Ch. 5.48 Rent Stabilization for Mobilehome Parks

A. On December 15, 1981, the city council of the city of Redlands determined that a serious shortage of mobilehome rental spaces within the city had created a virtual monopoly in the rental of mobilehome park spaces. In response to this lack of available rental space, the city declared it necessary to protect the owner-occupants of mobilehomes from unreasonable rent increases while recognizing the need for mobilehome park owners to receive a just and reasonable return on their property. Accordingly, this chapter was adopted to provide for mobilehome park rent stabilization within the city.

B. Mobilehome owner-occupants, unlike apartment renters or residents of other rental stock, are in a unique position of having made a substantial investment to purchase a mobilehome for which they must rent a space in a mobilehome park. They also make investments in maintaining and improving their homes as well as in landscaping the rental space. Alternative sites for the relocation of mobilehomes are difficult to find due to the shortage of vacant spaces, restrictions on age, size or style of mobilehomes permitted in many parks and the requirements related to the installation of mobilehomes, including permits, landscaping and site preparation. Additionally, the cost of moving a mobilehome is substantial and the risk of damage is significant. Thus, moving a mobilehome is rarely a feasible option if the rent for a mobilehome park space becomes excessive. The result of these conditions is the creation of a captive market of mobilehome owner-occupants. The immobility of mobilehomes and the shortage of rental spaces, in turn, creates an imbalance in the bargaining relationship between mobilehome park owners and mobilehome owner-occupants. Because mobilehomes are often owned by senior citizens, persons on fixed incomes and persons of low and moderate income, excessive rent increases fall upon those individuals with particular harshness. (Ord. 2458 § 1, 2000: Ord. 2207 § 1, 1993)

As used in this chapter the following words shall have the meaning ascribed to them:

ADJUSTED CPI: The percent of the CPI used for determining rent increases or decreases pursuant to subsection 5.48.060B of this chapter.

ARBITRATOR: A professional arbitrator by virtue of his or her training or experience or combination of such training and experience.

CPI OR CONSUMER PRICE INDEX: The index commonly known as the "consumer price index for all urban wage consumers for the Los Angeles-Anaheim-Riverside area" (base year 1982–1984), published by the United States department of labor, bureau of labor statistics.

COMMISSION: The city planning commission established by title 2, chapter 2.36 of this code (sometimes herein called the "commission").

DISCRETIONARY RENT DECREASE: A rent decrease granted pursuant to section 5.48.100 of this chapter.

DISCRETIONARY RENT INCREASE: A rent increase granted pursuant to sections 5.48.070 and 5.48.080 of this chapter.

FORMULA RENT ADJUSTMENT: A rent adjustment granted pursuant to subsection 5.48.060B of this chapter.

MOBILEHOME: A structure designed for human habitation as defined in California Civil Code section 798.3. Structures defined in California Civil Code section 799.24 are not mobilehomes.

MOBILEHOME OWNER-OCCUPANT: Any person who owns a mobilehome and occupies that mobilehome as his or her principal residence within a mobilehome park located within the city.

MOBILEHOME PARK: An area of land where two (2) or more mobilehome spaces are rented or held out for rent to accommodate mobilehomes used as human habitation.

MOBILEHOME PARK OWNER: The owner, lessor, operator or manager of a mobilehome park located in the city.

PARK FACILITY: A facility or amenity which provides for the recreation or convenience of any mobilehome tenant.

SPACE RENT: The consideration, including any security deposits, bonuses, benefits or gratuities, demanded or received in connection with the use and occupancy of a mobilehome space in a mobilehome park, but exclusive of any amount paid for the use of a mobilehome dwelling unit.

TRAILER: A structure eight feet by forty feet (8' x 40') or less designed to be drawn by a motor vehicle and to be used for human habitation or for carrying persons and property, including a trailer coach or house trailer. (Ord. 2751, 2011: Ord. 2532 § 1, 2003: Ord. 2458 § 2, 2000: Ord. 2243 § 1, 1994: Ord. 2207 § 1, 1993)

This chapter shall not apply to the following tenancies in mobilehome parks located in the city:

A. Mobilehome park spaces rented for nonresidential uses;

B. Mobilehome parks constructed after October 1, 1981. For the purpose of this subsection, the term "constructed" means the initial erection of structures;

C. Tenancies which do not exceed an occupancy of twenty (20) days and which do not contemplate an occupancy of more than twenty (20) days;

D. Tenancies for which any federal or state law or regulation specifically prohibits rent regulations;

E. Trailer parks which are occupied by less than fifteen (15) mobilehomes;

F. Tenancies covered by leases or contracts which provide for more than a month to month tenancy. However, upon the expiration or other termination of any such lease or contract, the monthly space rent or its equivalent provided in such lease or contract shall become the base rent for such space. Any increase or decrease in the monthly space rent shall be determined in accordance with this chapter, provided that any increase in monthly space rent which had been allowed under the expired or terminated lease during the preceding twelve (12) months, when added to any monthly rent adjustments permitted under this chapter, shall not exceed the increases permitted under section 5.48.060 of this chapter; provided further that nothing in this subsection is intended to require a reduction in rent below that charged under the expired or terminated lease;

G. Mobilehome parks which sell lots for factory built or manufactured housing, or which provide condominium ownership of such lots, even if one or more homes in the development are rented or leased out;

H. Any mobilehome not occupied by a mobilehome owner-occupant. (Ord. 2532 § 2, 2003: Ord. 2458 § 3, 2000: Ord. 2207 § 1, 1993)

Within the limitations provided by law, the commission shall have the following powers and duties:

A. To receive evidence and testimony, investigate, conduct meetings and public hearings and pass upon the issues relating to mobilehome park rent stabilization as set forth in this chapter;

B. To make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary to carry out its duties;

C. To render, at least annually, a written report to the city council concerning its activities, holdings, actions, results of hearings and all other matters pertinent to this chapter which may be of interest to the city council;

D. To recommend administrative rules to the city council to effectuate the purposes and policies of this chapter;

E. To assist the arbitrator in arbitrating an application for a discretionary rent adjustment, as set forth in this chapter;

F. To assist the park owner and the mobilehome owners-occupants of a mobilehome park in negotiating a lease agreement as provided for in this chapter;

G. Except as otherwise provided for in this chapter, to review and approve any application for a rent adjustment, whether it be from a mobilehome park owner or a mobilehome owner-occupant. (Ord. 2532 § 4, 2003: Ord. 2458 § 5, 2000: Ord. 2207 § 1, 1993)

No adjustment in space rents in a mobilehome park shall be effective unless authorized as set forth in this chapter. (Ord. 2532 § 5, 2003: Ord. 2207 § 1, 1993)

A. The base rent for purposes of this chapter shall be the last space rent approved pursuant to ordinance 1783 of the city. Base rent or space rent may be adjusted no more than once each year, and the effective date of the adjustment may not be sooner than twelve (12) months after the effective date of previously approved rent adjustment. Except as hereinafter provided, no park owner shall demand, accept or retain rent for a mobilehome space exceeding the base rent in effect for such space.

B. Each year, a mobilehome park owner, or a majority of mobilehome owners and mobilehome owner-occupants within a mobilehome park and represented by signed petitions, may submit an application on the city's form for an adjustment in space rent in an amount equal to the proportional increase or decrease in the CPI The CPI shall cover the period of time beginning on the first day of the month which is five (5) months prior to the effective date of the last rent adjustment and ending on the last day of the month which is five (5) full months prior to the month of the date noticed for the requested rent adjustment; provided, however, that such increase or decrease shall be limited to three-fourths (3/4) of any percentage in excess of four percent (4%) through nine percent (9%) and twenty five percent (25%) of any percentage in excess of nine percent (9%). Each such application must be accompanied by evidence that notice of the proposed adjustment has been served to each affected mobilehome owner-occupant at least sixty (60) days prior to the proposed effective date. This subsection shall not be construed to relieve the mobilehome park owner of the duty to provide notice of a rent increase or to perform any other duty imposed by state law.

C. City staff shall calculate and approve the formula rent adjustment in the amount requested, not to exceed the amount authorized herein.

D. For the purpose of consolidating anniversary dates for rent increases permitted under this chapter for leases expiring pursuant to subsection 5.48.030F of this chapter, the mobilehome park owner may file a petition with the commission to increase rents in accordance with the following table:

The burden of proof to show that the rent increases set out above for the purposes of consolidating anniversary dates and the number of months since the last rent increase is accurate shall be upon the mobilehome park owner and shall be filed on the city's forms. Where there is an anniversary date for at least twenty five percent (25%) of the spaces in an affected park, the mobilehome park owner shall consolidate all leases expiring after January 1, 1993, to that date within twenty four (24) months of the expiration of the lease. For determining whether twenty five percent (25%) of the spaces share an anniversary date, only those spaces subject to this chapter shall be counted. (Ord. 2532 § 6, 2003: Ord. 2458 § 6, 2000: Ord. 2243 § 2, 1994: Ord. 2207 § 1, 1993)

A. An owner who seeks a rent increase not authorized in subsection 5.48.060B of this chapter shall submit an application for a discretionary rent increase on the city's form, together with such supporting documentation as the commission may require, within fifteen (15) days after serving notice of the proposed discretionary rent increase to all affected mobilehome owner- occupants. The notice for each mobilehome owner-occupant shall indicate the new rent proposed for his or her space, shall advise the mobilehome owner-occupant that an application for a discretionary rent increase has been filed with the city, and shall state that a copy of the application and all supporting documentation is on file at the owners office in the affected park and may be photocopied at the mobilehome owner-occupants expense. The application for a discretionary rent increase will not be effective unless accompanied by proof satisfactory to the commission that the mobilehome park owner has, within the preceding fifteen (15) days, served each affected mobilehome owner-occupant, either personally or by mail, with the notice required herein. If approved, the discretionary rent increase shall take effect no sooner than one year after the date of the last rent increase within the mobilehome park.

B. Upon the filing of an application for a discretionary rent increase which satisfies the requirements of this chapter, the commission shall conduct a public meeting within thirty (30) days. At that meeting, if the commission is persuaded upon the testimony of any affected mobilehome owner-occupant that the mobilehome owner-occupant has been refused the opportunity to review and photocopy background documentation which the mobilehome park owner intends to submit in support of the application, the commission shall adjourn the meeting for a reasonable period of time, not to exceed thirty (30) days, and instruct the mobilehome park owner to permit full review and reproduction of the documentation as required by this chapter. At any such meeting, if the commission is persuaded upon written proof or oral testimony that the majority of the affected mobilehome owner-occupants in the park agree to the proposed discretionary increase, the commission shall authorize the increase as proposed and such determination shall be final.

C. In the event the commission determines that an application for a discretionary rent increase shall be submitted to arbitration pursuant to the provisions of this chapter, the applicant for the discretionary rent increase shall, within ten (10) days of the commissions determination, pay to the city the sum of three thousand dollars ($3,000.00) as a deposit towards the city's actual costs in retaining an arbitrator and holding the arbitration proceedings. The deposit shall be replenished, from time to time, as deemed necessary by city staff to ensure that the city's actual ongoing costs are paid. In the event payment of the deposit is not made, or the applicant for the discretionary rent increase fails to make a required replenishment of the deposit, the city may, in its sole discretion, cease the arbitration proceedings and have no further obligation or any liability to the applicant for the discretionary rent increase. (Ord. 2532 § 6, 2003: Ord. 2458 § 7, 2000: Ord. 2420 § 1, 1999: Ord. 2207 § 1, 1993)

A. Upon considering an application for a discretionary rent increase, if the commission is persuaded that a majority of the tenants do not agree to the proposed increase, the commission shall within ten (10) days select an arbitrator from a list of arbitrators approved by the city council to conduct arbitration of the disputed application for a discretionary rent increase. If possible, the commission should select from the list a retired judge to serve as arbitrator, but the commission shall not be bound to do so.

B. Upon selecting an arbitrator, the commission or its designee shall transmit copies of the application for a discretionary rent increase and any other supporting documentation filed by the mobilehome park owner to the arbitrator for his or her review, and shall mail notice of the selection of an arbitrator to all affected parties as set forth in the application. The owner shall produce, at the request of the arbitrator, any additional records, receipts, or other documents that the arbitrator may deem necessary for a decision on the disputed application. The owner shall supply duplicate copies of such documents to the city, shall keep copies at the owner's office within the park for review and duplication by the affected tenants, and shall provide notice to each affected tenant that the copies are available for review and reproduction at the tenant's expense.

C. Upon receipt of the application and all requested documentation, the arbitrator shall schedule a hearing on the application within sixty (60) days. The commission or its designee shall send notice of the time, date and place of the hearing to all affected parties at least thirty (30) days prior to the hearing. The notice shall state that copies of the application and supporting documentation are on file with the city and are available for review by any affected party, and that responding parties may submit written statements or documents to the arbitrator no later than ten (10) days before the hearing. All statements or documents submitted by responding parties shall be signed and verified under penalty of perjury, and duplicate copies thereof shall be filed with the city for review by any affected party.

D. At the hearing, the mobilehome park owner and any affected party may offer any testimony that the arbitrator deems relevant to the requested rent adjustment. The owner shall produce any records, receipts, or other documents that the arbitrator may deem necessary to approve the requested adjustment. The owner and affected parties may offer documents, written declarations, or other written evidence for the first time at the hearing only if good cause is shown why such evidence was not filed prior to the hearing. Formal rules shall not be applicable to such proceedings. In addition, members of the rent review commission shall be available as required by the arbitrator for testimony regarding previous rent adjustments in the park. Within fifteen (15) days after close of the hearing, the arbitrator shall make his or her determination, pursuant to the standards hereinafter set forth, approving or disapproving a rent adjustment for the mobilehome spaces specified in the application for a discretionary rent adjustment.

E. The arbitrator shall approve such rent adjustment as he or she determines to be just, fair, and reasonable, while assuring the park owner a just and reasonable return on his or her property. Such rent adjustment may be either below or above the proportional change in the consumer price index. The arbitrator shall consider, but not be limited to, the following factors in making such determinations:

1. Changes in the CPI;

2. The rent lawfully charged for comparable mobilehome spaces in the city and surrounding areas;

3. The history and pattern of all prior rent adjustment of the park, and any prior arbitration proceedings;

4. The completion of any capital improvements or rehabilitation work related to the mobilehome spaces specified in the application, and the cost thereof, including the cost of materials, labor, construction interest, permit fees, and such other items as the arbitrator deems appropriate;

5. Changes in property taxes and other taxes related to the park;

6. Changes in master land or facilities lease rent, or mortgage payments incurred in financing the purchase or improvement of the park or incurred in an involuntary refinancing;

7. Changes in the utility charges for the park and the extent, if any, of reimbursement from the tenants;

• 8. Changes in reasonable operating and maintenance expenses;
• 9. The amount and quality of services provided by the owner to each affected tenant;
• 10. The need for rehabilitation work;
• 11. Employee and incidental expenses.

F. Pursuant to its determination, the arbitrator may order any adjustment in rent which he or she deems appropriate or consistent with this chapter, and such order shall be final. There shall be no appeal to the city council. The arbitrator may also order an adjustment for a limited time only when it is apparent that capital expenses or any other relevant factor will change after a determined period of time.

G. The total cost of the arbitration and the city's administrative costs shall be borne by the owner if the arbitrator approves a rent adjustment equal to or below the formula rent adjustment authorized by section 5.48.060 of this chapter. The total cost of arbitration and the city's administrative costs shall be borne by the affected tenants if the arbitrator approves a rent adjustment equal to the amount requested by the owner as a discretionary adjustment. If the arbitrator approves an adjustment which is less than the requested discretionary adjustment, the owner and tenants shall share the total costs in accordance with the ratios set out in table 5.48.080(G) of this section.

TABLE 5.48.080(G)

For the purpose of these ratios, the formula adjusted rent shall be based on a time period beginning on the month of the effective date of the last rent adjustment and ending on the date of the first available release of the consumer price index which has been received by the city prior to the application for a discretionary adjustment. The city shall establish fees based on an hourly basis to provide for its administrative costs. (Ord. 2532 § 7, 2003: Ord. 2207 § 1, 1993)

A. Upon request by both a mobilehome park owner and at least fifty percent (50%) of the tenants of an affected park, the commission shall act as mediator in the negotiation of any lease having a term of at least one year. However, the failure to successfully negotiate such a lease shall not deprive any person of any remedy or recourse set forth in this chapter.

B. No owner shall force a tenant to sign a lease in an attempt to avoid the provisions of this chapter relating to amounts that may be charged for space rent. (Ord. 2532 § 8, 2003: Ord. 2207 § 1, 1993)

A. The majority of affected mobilehome owner-occupants in a park may, by signed petition, submit an application to the city to request a discretionary decrease in space rents to compensate for an alleged reduction in services, provided that the reduction of services has occurred within one hundred twenty (120) days prior to the date of submittal of the discretionary rent decrease application; or to compensate mobilehome owner-occupants for utility charges which are billed to them separately after having previously been included in space rents.

B. The application for a discretionary rent decrease shall be accompanied by documentation which precisely describes the alleged reduction in services and the date that such reduction occurred, along with the monetary value of the reduction.

C. The application shall be accompanied by written evidence satisfactory to the city that the mobilehome park owner was served with a copy of the application in its completed form at least thirty (30) days prior to the date of submittal of the discretionary rent decrease application to the city.

D. When an application for a discretionary rent decrease is received by the city, the commission shall call a meeting for the purpose of mediating the issue of the alleged reduction of services or separate billing of charges. The mediation meeting shall be held no sooner than ten (10) days nor later than thirty (30) days of the date the completed application is submitted to the city, and the mobilehome park owner and the mobilehome owner- occupants filing the application shall be notified of the time and place of the meeting. Nothing in this chapter shall prevent the meeting from being held in an appropriate location on the premises of the affected park.

E. At the mediation meeting, the commission will hear testimony relating to the matters which are at issue. If the mobilehome park owner agrees to restore an alleged reduction of services, the mediation meeting shall be continued for an appropriate time period as approved by the commission. At the date of the continued mediation meeting the commission will again consider the issues and determine whether there has been a resumption of services. The commission, after considering all evidence shall either approve, reject or modify the proposed discretionary rent decrease request and shall, in compliance with state law, base its decision upon the demonstrated value of any verified reduction of services. Any rent reduction or accumulation of rent reductions approved in accordance with this section shall also serve to reduce space rents as subsequently adjusted by formula rent adjustments, until removed by a discretionary rent increase or as hereafter set forth.

F. An application for a discretionary rent decrease shall be accompanied by a seven hundred dollar ($700.00) deposit as a processing fee to pay the city's actual costs of conducting the mediation meeting. The deposit shall be replenished, from time to time, as deemed necessary by city staff to ensure that the city's costs are covered. Upon conclusion of the hearing, the total cost incurred by the city shall be paid by the mobilehome park owner if the commission approves the requested rent decrease. However, if the commission denies the request for a discretionary rent decrease, the costs incurred by the city shall be paid by the mobilehome park owner-occupants.

G. An owner and any mobilehome owner-occupants in an affected park may voluntarily agree to adjust rents downward for any reason including because of a decrease of services. However, the commission shall be notified within thirty (30) days of the agreement to provide a record of such change. (Ord. 2532 § 9, 2003: Ord. 2458 § 8, 2000: Ord. 2207 § 1, 1993)

A mobilehome park owner shall not increase the rental rate (the amount of rent being paid by the seller of the mobilehome at the time of the sale) of a mobilehome space to a subsequent mobilehome owner-occupant for that space; provided, however, that nothing in this chapter shall prohibit a mobilehome park owner from increasing the monthly space rent for a mobilehome park space when the mobilehome has been removed from the park, where the mobilehome has been abandoned by its owner, or when a legal eviction of a mobilehome owner-occupant is effected by the property owner. (Ord. 2532 § 10, 2003; Ord. 2458 § 9, 2000: Ord. 2207 § 1, 1993)

A. No park owner or representative of an owner shall intimidate, threaten, harm, retaliate, annoy, harass or otherwise interfere in any manner with any mobilehome owner-occupant's exercise of any of the rights conferred by this chapter or the constitutions of the United States and the state of California, or that mobilehome owner-occupant's right to participate in any action or proceeding brought by any interested party pursuant to this chapter, including public participation and the signing of petitions. The city recognizes that many residents in mobilehome parks are elderly and are easily intimidated by threats. The city further recognizes the mobilehome owner-occupant's right to participate, with others, in any matter for the mutual benefit of park residents.

B. In any action brought to recover possession of a mobilehome space, the court may consider as grounds for denial any violation of this chapter. Further, the determination that the action was brought in retaliation for the exercise of any rights conferred by this chapter shall be grounds for denial. (Ord. 2532 § 10, 2003: Ord. 2458 § 10, 2000: Ord. 2207 § 1, 1993)