Rocklin Municipal Code Art. VII Petitions for Rent Increase—Decisions

A. The rent on any rental unit shall not be increased more than one time in any twelve-month period, except as otherwise expressly allowed under this section or elsewhere in this chapter, or by agreement.

B. A rent increase may be allowed within twelve months of the effective date of the preceding rent increase where the owner can clearly demonstrate that the rent increase is necessary to cover costs of operation and maintenance, capital improvements or rehabilitation that could not have been reasonably foreseen at the time notice of the preceding rent increase was given. The facts supporting the necessity shall be included in the petition, and the question of necessity shall be considered and decided by the administrative hearing officer.

(Ord. 594 § 2 (part), 1988).

A. Whenever a landlord serves notice to a homeowner or tenant of a proposed rent increase which exceeds the amounts specified in Section 2.46.400, said notice shall include all of the following information:

1. The name of the homeowner or tenant occupying the rental unit which is the subject of the rent increase;

2. The mobile home lot or space number where the rental unit is located;

3. Notice that under the provisions of this chapter the landlord is required to file a petition requesting a rent increase in excess of the amounts specified in Section 2.46.400;

4. Notice of the date the petition requesting a rent increase in excess of the amounts specified in Section 2.46.400 was filed with the city manager;

5. Notice that the portion of the rent increase in excess of the amounts specified in Section 2.46.400 will not take effect until approved by an administrative hearing officer and a statement of the rent that will be in effect until such approval;

6. Notice that documentation supporting the proposed rent increase is on file with the city manager, in the Rocklin Public Library, and in the mobile home park office;

7. The name and current address of the landlord to whom notices are to be sent; and

8. A statement of the proposed rent increase expressed both as an actual dollar amount and as a percentage of the then current base rent.

B. A copy of the notice shall be filed with the city manager within five working days of service of the notice on the homeowners or tenants together with an affidavit of proof of service on such homeowners or tenants.

C. No rent increase in excess of the amounts specified in Section 2.46.400 shall be effective unless notice is given in accordance with the provisions of this section and such excess is approved by an administrative hearing officer.

(Ord. 594 § 2 (part), 1988).

A. Any rent increase, taken together with any increase which took effect in the twelve-month period immediately preceding the date the increase is noticed, which is equal to or less than the amount determined by multiplying the base rent by the cost of living factor, and rounded off to the nearest dollar, shall not be subject to review by the administrative hearing process under this chapter. The cost of living factor shall be as follows:

"CPI/C" means the percent change in the consumer price index for California, All Urban Consumers, as published by California State Department of Industrial Relations, Division of Labor Statistics and Research, over the twelve months preceding the date notice of the rent increase is given. The most recently published CPI figure available at the time the rent increase notice is given shall be used for the calculations.

B. Any rent increase charged by a landlord for a mobile home he or she owns or leases in an amount equal to or less than the amount of a rent increase for the lot on which the mobile home is located and approved under Section 2.46.450, 2.46.460, 2.46.480 or 2.46.490, shall not be subject to review by the administrative hearing process under this chapter; provided, that a rent increase taken under this subsection B shall be in lieu of, and not in addition to, an increase taken under subsection A of this section.

C. The rent increases permitted by this section without review are presumed to be sufficient to account for any increased costs of operation and maintenance, debt service, capital improvements and/or rehabilitation incurred by a landlord and to provide the landlord a fair and reasonable return adjusted for inflation.

(Ord. 594 § 2 (part), 1988).

A. Any rent increase not exempt from review under this chapter and in excess of the amount specified in Section 2.46.400 shall be subject to the administrative hearing process set forth in this chapter.

B. That portion of the rent increase in excess of the amount specified in Section 2.46.400 shall not be collectible by the landlord until such time as the excess is approved by an administrative hearing officer under this chapter. That portion of the rent increase that equals the amount specified in Section 2.46.400 shall be collectible as noticed.

(Ord. 594 § 2 (part), 1988).

A. Any landlord whose rental unit is subject to this chapter and who seeks a rent increase in an amount in excess of the amount specified in Section 2.46.400 shall file a petition for rent increase with the city manager under Sections 2.46.450 and/or 2.46.460, or Section 2.46.490.

B. Within five days of filing the petition with the city manager, the landlord shall notify the homeowners and tenants of the filing by mail or personal delivery, and shall place a copy of the petition at a centralized location in the mobile home park and at the Rocklin public library for inspection and copying.

(Ord. 594 § 2 (part), 1988).

A. The petition shall be filed in the form prescribed by the city manager and shall include the following:

1. The amount of the proposed rent increase;

2. The names and addresses of all homeowners and tenants who would be subject to the rent increase;

3. The date the rent increase is proposed to be effective;

4. A summary statement of the base rent, itemizing the base rent as of January 1, 1988 and all increases;

5. A summary statement of operation and maintenance cost increases during the fiscal year immediately preceding the filing of the petition if the requested rent increase is for operation and maintenance cost increases;

6. A summary statement of rehabilitation costs incurred during the fiscal year immediately preceding the filing of the petition, if the requested rent increase is for rehabilitation costs;

7. A summary statement of capital improvement costs incurred during the fiscal year immediately preceding the filing of the petition, if the requested rent increase is for capital improvement costs;

8. A summary statement of the reasons for a rent increase to recover a fair and reasonable return, if the requested rent increase is for a fair and reasonable return;

9. Copies of all documentation upon which the landlord relied in determining the proposed rent increase.

B. If the landlord fails to file any of the documentation required by this section, the administrative hearing officer may order production of the documentation. Failure of the landlord to submit the documentation ordered by the administrative hearing officer shall be grounds for the administrative hearing officer to find that a rent increase in the amount specified in Section 2.46.400 will provide the landlord with a fair and reasonable return.

(Ord. 594 § 2 (part), 1988).

A landlord's petition for a rent increase in excess of the amounts specified in Section 2.46.400 shall be filed at least sixty days, but not more than one hundred twenty days, prior to the effective date of the proposed rent increase.

(Ord. 594 § 2 (part), 1988).

A. Where a landlord finds that the rent increase allowed under Section 2.46.400 is inadequate to account for increased costs of operation and maintenance, a petition for a rent increase may be filed under this section in lieu of imposing the increase allowed under Section 2.46.400.

B. The administrative hearing officer shall set the rent increase in the amount necessary to account for actual increased costs of operation and maintenance as found by the administrative hearing officer.

C. Subject to any offsets under Section 2.46.470, the amount of the increase allowed under subsection B of this section shall become part of the base rent, and that new base rent, plus any other increases allowed by the administrative hearing officer in connection with the landlord's petition, shall be conclusively presumed to provide the landlord with a fair and reasonable return.

D. A petition for a rent increase under this section may be filed in conjunction with a petition under Section 2.46.460.

(Ord. 594 § 2 (part), 1988).

A. Where a landlord finds that the rent increase allowed under Section 2.46.400 is inadequate to account for costs of rehabilitation and/or capital improvements incurred in the immediately preceding twelve months, a petition for a rent increase may be filed under this section in lieu of the increase allowed under Section 2.46.400.

B. The administrative hearing officer shall set the increase in the amount necessary to account for the actual increase in costs of rehabilitation and capital improvements in the preceding twelve months, as found by the administrative hearing officer during the hearing, subject to the following:

1. With respect to capital improvements:

a. The capital improvement is made at a direct cost of not less than one hundred dollars per affected rental unit or at a total direct cost of not less than five thousand dollars, whichever is lower.

b. The costs, less any insurance proceeds or other applicable recovery, are averaged and spread on a per unit basis for each rental unit actually benefited by the improvement.

c. The costs are amortized over a period of not less than sixty months.

d. The costs do not include any additional costs incurred for property damage or deterioration resulting from any unreasonable delay in the undertaking or completion of any repair or improvement.

2. With respect to rehabilitation costs:

a. The costs, less any insurance proceeds or other applicable recovery, are averaged and spread on a per unit basis for each rental unit actually benefited by the rehabilitation.

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

c. The costs do not include any additional costs incurred for property damage or deterioration resulting from any unreasonable delay in the undertaking or completion of any repair or improvement.

C. The amount of the increase allowed under subsection B of this section shall not become a permanent part of the base rent, but rather shall be a separately itemized assessment which shall be collectible with rents during the amortization period.

D. Subject to any offsets under Section 2.46.470, the amount of the increase allowed under subsection B of this section, plus any other increase allowed by the administrative hearing officer in connection with the landlord's petition, when added to the base rent, shall be conclusively presumed to provide the landlord with a fair and reasonable return.

E. A petition for a rent increase under this section may be filed in conjunction with a petition filed under Section 2.46.450.

(Ord. 594 § 2 (part), 1988).

A. If the administrative hearing officer finds that service reductions have occurred, the administrative hearing officer shall determine the value of the service reductions and shall offset the rent increase allowed under Sections 2.46.450 and/or 2.46.460 by the value of the service reductions. Service reductions which affect all rental units subject to the proposed rent increase shall be prorated over all such rental units, regardless of the number of residents claiming such service reductions.

B. In determining the value of any service reductions, the administrative hearing officer shall consider the following factors:

1. The area affected by the service reduction;

2. The length of time the resident has been subjected to the service reduction;

3. The degree of discomfort the service reduction imposes on the resident;

4. The extent to which the service reduction causes the rental unit or rental units to be uninhabitable;

5. The extent to which the service reduction causes a material reduction in the usability of the rental unit;

6. Other similar factors deemed relevant by the administrative hearing officer.

(Ord. 594 § 2 (part), 1988).

Where the administrative hearing officer allows a rent increase under Sections 2.46.450 and/or 2.46.460, an additional three percent of the base rent before the allowed increase shall also be allowed.

(Ord. 594 § 2 (part), 1988).

A. Where a landlord finds that the rent increase allowed under Section 2.46.400, and any increase that would be allowable under Section 2.46.450 for operation and maintenance and Section 2.46.460 for rehabilitation and capital improvement costs, plus the adjustment allowed under Section 2.46.480, would be inadequate to provide the landlord with a fair and reasonable return, or where the landlord disputes the base rent presumption in Section 2.46.360, the landlord may file a petition for a rent increase under this section in lieu of the increase allowed under Section 2.46.400 and in lieu of a petition under Sections 2.46.450 and/or 2.46.460.

B. The notice of hearing given under Section 2.46.520 on a petition filed under this section shall direct the landlord and the affected homeowners and tenants to submit to the administrative hearing officer at the hearing one or more names of qualified appraisers they wish to nominate to determine fair market rents for the mobile home park.

C. 1.

Upon submission of the names at the hearing, the administrative hearing officer shall divide the names into two lists, one list being those nominated by the landlord and the other list being those nominated by the homeowners and tenants.

2. The administrative hearing officer shall then review the lists and shall select as the appraiser anyone who appears on both lists.

3. If no name appears on both lists, the administrative hearing officer shall select a name from each list.

4. If one list contains no names, the administrative hearing officer shall select a name at random from the names submitted.

5. If no names are submitted, the petition shall be dismissed.

6. At the hearing and prior to selection of the appraiser or appraisers by the administrative hearing officer, any party may move to disqualify a nominee on the grounds he or she is not a qualified appraiser. The administrative hearing officer shall hear the motion at that time or continue the hearing on the motion and the petition for no more than ten days. At the conclusion of the hearing on the motion, the administrative hearing officer shall rule on the motion, and the ruling shall be final. The hearing on the petition shall then resume.

D. Once the appraiser or appraisers are selected, the administrative hearing officer shall direct the landlord to retain the appraiser or appraisers. If one appraiser has been selected, one appraisal and appraisal report shall be prepared. If two appraisers are selected under subsection C3 of this section, each shall independently make an appraisal and prepare an appraisal report. Notwithstanding Section 2.46.550, the hearing shall be continued until the appraisal(s) is completed. The appraiser(s) shall be directed to determine fair market rents for the mobile home park in issue, taking into consideration the following:

1. Whether or not and the extent to which rents in the mobile home park are depressed due to the past effects of rent control, historically low rents, and any other factors which have artificially depressed rents in the mobile home park or the mobile home rental market in the region;

2. Whether or not and the extent to which rents in the mobile home park are elevated due to the scarcity of mobile home lots in the region in relation to demand, the difficulty in relocating mobile home units, and any other factors which have artificially elevated rents in the mobile home park or the mobile home rental market in the region;

3. The existence or nonexistence of unreimbursed capital improvements or rehabilitation work; the extent and quality of park amenities and services; location and setting; aesthetic value; operation and maintenance costs; and quality of management and maintenance.

E. The appraisal report(s) shall include, as an appendix, all background and backup data considered by the appraiser(s) in reaching the conclusion.

F. When the appraisal report(s) is completed, the landlord shall file two copies of the appraisal report(s) with the administrative hearing officer. The administrative hearing officer shall then notify the homeowners and tenants that the appraisal report(s) is available for inspection and copying and shall schedule the hearing to resume no sooner than ten working days from the date of the notice.

G. At the hearing, the administrative hearing officer shall receive the appraisal report(s) into evidence and otherwise conduct the hearing in accordance with Article VIII of this chapter; provided, that the subject matter of the hearing shall be limited to the appraisal(s) and the determination of fair market rents.

H. The administrative hearing officer shall set rents at the level(s) he finds to be fair market rents and that will provide the landlord a fair and reasonable return.

I. The rent allowed under subsection H of this section shall become the base rent and shall be conclusively presumed to provide the landlord with a fair and reasonable return.

J. Once a petition for rent increase is filed under this section and a decision is made, another petition under this section for the same lots in the same park may not be filed for four years, provided a petition under this section may be filed more frequently upon a showing of hardship.

(Ord. 594 § 2 (part), 1988).