Chapter 17.22

MOBILEHOME RENT ORDINANCE

Parts:

• 1 Purpose 2 Definitions 3 Exemptions 3.5 Firm Offer Base Rent 4 Allowable Rent Increases 4.5 Interim Regulation of Rent Increases Upon In-Place Transfers of Mobilehomes

• 5 Rent Increase Limitations 6 Landlord Rent Petition 7 Administrative Hearing 8 Fees

The council of the City of San José finds and declares as follows:

• A. There is a shortage of and an increasing demand for all types of housing in the City of San José. This circumstance, coupled with the rising cost of developing new housing, the unavailability of land, and other factors, has put substantial upward pressure on residential rents.

• B. The City of San José contains a limited number of mobilehome parks that rent mobilehomes or mobilehome lots to a significant number of the city's population. The vacancy rate among these mobilehome parks is very low and there is also a shortage of available mobilehomes and mobilehome lots in neighboring communities.

• C. A substantial majority of mobilehome residents in the city own their own mobilehomes and virtually all mobilehome owners have made a substantial financial investment in their mobilehomes.

• D. The cost and risk of potential damage in moving mobilehomes is great, as is the cost of preparing a new site and meeting the code requirements for installing a new mobilehome.

• E. Recent changes in state law regarding mobilehomes have imposed substantial

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limitations on the ability of owners of older mobilehomes to relocate such mobilehomes.

• F. A significant proportion of mobilehome park residents are senior citizens, many of whom live on limited or fixed incomes.

• G. This chapter is a necessary measure to protect the health, safety and welfare of the citizens of San José.

(Ords. 22020, 22053, 22284.)

The purpose of the city council in enacting this chapter is to prevent excessive and unreasonable rent increases to mobilehome park residents, to prevent an exploitation of the shortage of available mobilehome lots in the city, to permit mobilehome park owners to receive a fair and reasonable return, and to establish a process for rent dispute resolution.

(Ord. 22284.)

• 17.22.120 Costs of operation and maintenance.

17.22.135 Dealer pullout.

17.22.136 Department.

17.22.138 Director.

17.22.140 Housing services.

17.22.145 In-place transfer.

17.22.150 Landlord.

17.22.155 Maximum standard annual percentage increase.

17.22.160 Mobilehome.

17.22.170 Mobilehome lot.

17.22.180 Mobilehome owner.

17.22.190 Mobilehome park.

17.22.200 Mobilehome resident.

17.22.210 Mobilehome tenant.

No provision of Chapter 17.22 of Title 17 of this Code shall be applied so as to prohibit the administrative hearing officer from granting a rent increase that is demonstrated necessary to provide a mobilehome park owner with a fair return on investment.

(Ord. 25996.)

Part 2

DEFINITIONS

17.22.220 Owner.

17.22.230 Party.

17.22.235 Recreational vehicle.

17.22.240 Rent.

17.22.250 Rent increase.

17.22.270 Rental unit.

17.22.280 Service reduction.

17.22.290 Tenant.

17.22.300 Working day.

Sections:

17.22.060 Affected rental unit.

17.22.070 Anniversary date.

17.22.080 Base rent.

17.22.100 City rental rights and referrals program.

For purposes of this chapter, certain words and phrases are defined in this part and shall be construed as set forth herein unless it is apparent from the context that a different meaning is intended.

(Ords. 22020, 22053, 22284.)

"Administrative hearing officer" means a person who, pursuant to a written agreement approved

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by the city council or the city manager, serves as the hearing officer at a hearing to resolve a rent dispute pursuant to the provisions of this chapter. (Ords. 22053, 22284.)

been in compliance from the time of its original construction or installation and such provision was in effect at the time of such construction or installation. (Ords. 22020, 22053, 22284.)

"Affected rental unit" means a rental unit which is benefitted by a particular capital improvement or rehabilitation.

(Ord. 22284.)

"Anniversary date" means the date on which a rent increase becomes effective. (Ord. 22284.)

"Base rent" means the rent charged by a landlord on the effective date of this chapter, plus any rent increase allowed under this chapter. (Ord. 22284.)

"Capital improvements" means the addition or replacement of any improvement to a unit or property within the geographic boundaries of a mobilehome park which meets the following conditions:

• A. The addition or replacement has a useful life of at least five years: and

program.

"City rental rights and referrals program" means the section of the department of housing that provides staff services to the commission. References in any previous ordinance to the "Rental Dispute Program" shall be deemed as references to the city rental rights and referrals program. (Ords. 22284, 22802, 24400, 26792.)

"Commission" means the mobilehome advisory commission as established in Part 26 of Chapter 2.08 of Title 2 of this Code. (Ord. 22284.)

For the purposes of this chapter, Consumer Price Index means the Consumer Price Index for all urban consumers in the San Francisco-Oakland all items index (1982-84 equals 100), as reported by the Bureau of Labor Statistics of the United States Department of Labor. (Ords. 22284, 24400.)

• B. Either:

  1. The addition or replacement is necessary in order to maintain compliance with applicable local code requirements affecting health and safety; or

  2. The addition or replacement is provided by the mobilehome park owner primarily to benefit the residents of the affected rental units.

• C. Capital improvements do not include additions or replacement made to bring the rental unit into compliance with a provision of the San José Municipal Code or state law where the rental unit has not

• A. "Costs of operation and maintenance" means all expenses incurred in the operation and maintenance of a rental unit and the buildings or complex of buildings of which it is a part together with common areas, but excluding costs of debt service, costs of capital improvements and costs of rehabilitation.

• B. "Costs of operation and maintenance" includes, but is not limited to, real property taxes, business taxes and fees (including fees payable by landlords under this chapter), insurance, sewer service charges, utility costs for common areas, utility costs for rental units to

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the extent such costs are included in the rent, janitorial services, professional property management fees, pool maintenance, building and grounds maintenance, supplies, equipment, refuse removal, and security services or systems. (Ords. 22020, 22053, 22284.)

• A. "Costs of rehabilitation" means the costs of any rehabilitation or repair work done on or in the mobilehome park (but not including such work done on or in an owner-occupied mobilehome) which was done in order to comply with an order issued by the San José building department, the director or the fire department, or to repair damage resulting from fire, earthquake or other natural disaster.

• B. Costs of rehabilitation do not include costs of any rehabilitation or repair work done to bring a rental unit into compliance with a provision of the San José Municipal Code or state law where the rental unit has not been in compliance from the time of its original construction or installation and such provision was in effect at the time of such construction or installation.

(Ords. 22020, 22053, 22284, 24400.)

"Dealer pullout" means a transaction in which: a mobilehome dealer, as such term is defined in Section 18002.6 of the Health and Safety Code, purchases a mobilehome from a mobilehome owner; the mobilehome owner terminates the tenancy and ceases to be a tenant of the mobilehome park; the dealer replaces the old mobilehome on the lot with a new one and pays a storage fee to the park owner; and the dealer transfers the new mobilehome to a new mobilehome owner. (Ord. 24257.)

"Department" means the department of hous-

ing. (Ords. 24400, 26792.)

"Director" means the director of the department.

(Ord. 24400.)

"Housing services" means those services provided in connection with the occupancy of a rental unit including but not limited to repairs, replacement, maintenance, painting, light, heat, water, laundry facilities and privileges, janitorial service, refuse removal, furnishings, telephone, parking, and any other benefits, privileges or facilities.

(Ords. 22053, 22284.)

"In-place transfer of a mobilehome" means the transfer of the ownership of a mobilehome with the mobilehome remaining on the mobilehome lot following the transfer.

(Ord. 23914.)

"Landlord" means a mobilehome park owner, mobilehome owner, lessor or sublessor who receives or is entitled to receive rent for the use and occupancy of any rental unit or portion thereof, and the agent, representative or successor of any of the foregoing.

(Ords. 22020, 22053, 22284.)

"Maximum standard annual percentage increase" means:

• A. For increases effective prior to October 1, 1993, five percent.

• B. For increases effective between October 1, 1993, and September 30, 1994, three percent.

• C. 1. For increases effective on or after October 1, 1994, a percentage equal to seventy-five percent of the increase in the Consumer Price Index measured from the April of the cal-

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endar year preceding the year in which the increase is effective to the April of the calendar year in which the increase is effective, but in no event greater than seven percent nor less than three percent.

2. For increases effective on or after October 1, 1995, if the necessary information is not available to the rental rights and referrals program by May 15 of the calendar year for which the increase is determined, the measurement may be calculated based on the latest available information.

• D. Maximum standard annual percentage increases calculated pursuant to subsection C. shall apply to rent increases effective between October 1 of the calendar year in which the maximum standard annual percentage increase is determined by the city rental rights and referrals program and September 30 of the next calendar year.

(Ords. 24400, 24666, 26792.)

"Mobilehome" means a structure transportable in one or more sections, designed and equipped to contain not more than one dwelling unit, to be used with or without a foundation system. Mobilehome shall include Recreational Vehicles. (Ords. 22284, 31214.)

"Mobilehome lot" means a portion of a mobilehome park designated or used for the occupancy of one mobilehome. (Ord. 22284.)

"Mobilehome owner" means a person who has the right to the use of a mobilehome lot within a mobilehome park on which to locate, maintain and occupy a mobilehome, lot improvements and

accessory structures for human habitation, including the use of the services and facilities of the park. (Ord. 22284.)

"Mobilehome park" means any area or tract of land where two or more mobilehome lots are rented or leased, or held out for rent or lease, to accommodate mobilehomes used for human habitation for permanent, as opposed to transient, occupancy.

(Ord. 22284.)

"Mobilehome resident" means a person, including a mobilehome owner or mobilehome tenant, who occupies a mobilehome. (Ord. 22284.)

"Mobilehome tenant" means a person who rents or leases a mobilehome from a mobilehome owner.

(Ord. 22284.)

"Owner" means a mobilehome owner. (Ord. 22284.)

"Party" means a landlord, mobilehome owner or mobilehome tenant whose rent increase is the subject of the administrative hearing process pursuant to this chapter.

(Ords. 22284, 22802.)

"Recreational Vehicle" means a motor home, travel trailer, park trailer, truck camper, camping trailer or similar type of vehicle, with or without motive power, used for human habitation on a permanent rather than transient basis and occupies a Mobilehome Park.

(Ord. 31214.)

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• A. "Rent" means the consideration, including any bonus, benefit or gratuity, demanded or received by a landlord for or in connection with the use or occupancy, including housing services, of a rental unit or in connection with the assignment of a lease or in connection with subleasing of the rental unit.

• B. "Rent" shall not include utility charges for utility services (including gas, electricity, water, refuse disposal, and/or sewer service), provided to an individual mobilehome resident, as opposed to utility services provided to the mobilehome park in general, where such charges are billed to the mobilehome resident separately from the rent for the mobilehome or mobilehome lot.

(Ords. 22022, 22053, 22284.)

"Rent increase" means any rent demanded of or paid by a mobilehome owner or mobilehome tenant in excess of rent paid for the rental unit immediately prior to such demand or payment. Rent increase includes any reduction in services provided to a mobilehome resident without a corresponding reduction in the moneys demanded for or paid as rent.

(Ords. 22020, 22053, 22284.)

"Rental agreement" means a written agreement between a landlord and a mobilehome owner or mobilehome tenant for the use and occupancy of a rental unit to the exclusion of others. (Ord. 22284.)

pancy of the mobilehome or mobilehome lot. "Rental Unit" shall also mean a Recreational Vehicle defined under 17.22.235 located either within a Mobilehome park or a separately designated section of a Mobilehome park that is used for Recreational Vehicles.

(Ords. 22020, 22053, 22284, 31214.)

"Service reduction" means a decrease or diminution in the basic service level required to be provided by the landlord pursuant to any of the following:

• A. California Civil Code Section 1941.1 and 1941.2.

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

• C. The Mobilehome Parks Act, California Health and Safety Code Sections 18200 et seq.

• D. The landlord's implied warranty of habitability.

• E. An express or implied agreement between the landlord and the resident.

• F. The level of service as implied by the condition of improvements, fixtures, and equipment, and their availability for use by the resident, at the time of the last rent increase.

• G. Applicable rules or regulations of the mobilehome park.

• (Ord. 22284.)

"Rental unit" means a mobilehome or mobilehome lot, located in a mobilehome park in the City of San José, which is offered or available for rent. Rental unit includes the land, with or without a mobilehome, and appurtenant buildings thereto and all housing services, privileges and facilities supplied in connection with the use or occu-

"Tenant" means a mobilehome tenant. (Ords. 22020, 22053, 22284.)

"Working day" means a day the San José City Hall is open for public business. (Ord. 22284.)

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Part 3

EXEMPTIONS

Sections:

• A. The provisions of this chapter shall not apply to rent or rent increases for mobilehome lots for which plumbing, electrical and sewer permits were issued after September 7, 1979. If a plumbing or an electrical or a sewer permit was issued for a mobilehome lot on or before September 7, 1979, the provisions of this chapter shall apply to such mobilehome lot.

• B. The provisions of this chapter shall not apply to rent or rent increases for mobilehomes situated on mobilehome lots which are excluded from coverage pursuant to subsection A. of this section.

  2. The term of the rental agreement is in excess of twelve months' duration. 
  
  3. The mobilehome lot which is the subject of the rental agreement is used for the personal and actual residence of the mobilehome owner. 
  
  4. The first paragraph of the rental agreement contains a provision notifying the mobilehome owner that the mobilehome lot will be exempt from the provisions of this chapter. 
  

  • B. This exclusion shall apply only for the duration of the term of the rental agreement and any uninterrupted, continuous extensions thereof. If the term of the rental agreement is not extended and no new rental agreement meeting the above-stated criteria is entered into, this chapter shall immediately become applicable to the mobilehome lot and the last rental rate charged for the lot under the immediately preceding rental agreement shall be the rent for purposes of determining the base rent under this chapter.

  • (Ord. 22284.)

• (Ord. 22284.)

• A. The provisions of this chapter shall not apply to mobilehomes or mobilehome parks owned or operated by any governmental agency.

• B. The provisions of this chapter shall not apply to any rental unit whose rent is subsidized pursuant to the Housing Assistance Payments Program (Pub. L. 93-383, Section 8, as amended).

• (Ord. 22284.)

• A. The provisions of this chapter shall not apply to any mobilehome lot which is the subject of a rental agreement voluntarily entered into between a landlord and a mobilehome owner where the rental agreement meets all of the following criteria:

  1. The rental agreement was entered into on or after January 1, 1986.

The burden of proving that a mobilehome or mobilehome lot is not subject to this chapter shall be on the landlord.

• (Ord. 22284.)