San Rafael Municipal Code Ch. 20.04 General Provisions

The city council finds as follows:

A. There is presently within the city and the surrounding areas, a shortage of lots for the placement of mobilehomes.

B. Mobilehomes presently constitute an important source of housing for persons of low and moderate income.

C. A large number of persons living in mobilehomes are elderly, some of whom live on small fixed incomes. These persons may expend a substantial portion of their income on rent and may not be able to afford other housing within the city.

D. There is an extremely low vacancy rate in mobilehome parks within the city, with no lots presently available in some or all of the mobilehome parks within the city.

E. Rents for lots within mobilehome parks have, in the few years preceding adoption of the Rent Stabilization Ordinance codified in this title by the city, increased substantially, in parks within the city and other areas of the state.

F. Homeowners residing in mobilehome parks have very limited mobility because it is difficult and costly to move mobilehomes; therefore, such homeowners are forced to accept and pay substantially increased rents.

G. There is a potential for damage while moving mobilehomes from one site to another and a considerable amount of cost for landscaping, awning installations, and site preparation after such a move.

H. The San Rafael general plan 2000 housing policy H-8 recommends maintaining the city's existing stock of lower cost units of which the Contempo Marin Mobilehome Park is an example.

I. Owners and/or operators of mobilehome parks provide an important housing source for residents of the city. Unduly restrictive rent review ordinances can operate to discourage the establishment of new and the expansion of existing mobilehome parks in the city; to encourage owners to convert their mobilehome parks to other uses; and adversely affect the maintenance and other services offered by mobilehome parks, thereby exacerbating the shortage of mobilehome lots and the quality of life in mobilehome parks.

J. It is the purpose of this title to establish a speedy and efficient method of reviewing rent increases in mobilehome parks to protect homeowners from arbitrary, capricious or unreasonable rent increases while insuring owners and/or operators and investors a fair and reasonable return and encouraging competition in the provision of mobilehome lots.

K. Vacancy Control. The initial Mobilehome Rent Stabilization Ordinance, No. 1564, contained vacancy control provisions at its first reading; and

Said ordinance was thereafter revised to exempt from coverage space rent or space rent increases upon the transfer of ownership of a mobilehome where the mobilehome remains in the park, sometimes referred to as "vacancy decontrol"; and

Said revisions were made in response to the decision of the United States Court of Appeal for the Ninth Circuit in Hall v. City of Santa Barbara; and

The decision of the United States Supreme Court in Yee v. Escondido effectively overruled Hall v. City of Santa Barbara, and the Yee opinion found that vacancy control of rents on in-place transfers of mobilehomes does not constitute a physical taking of property without just compensation; and

The council finds that the city's policy to continue rent control protection for all mobilehome parks in the city, has proven useful in stabilizing rent in mobilehome parks; and

Establishment of rent regulations on spaces where ownership of the mobilehome is transferred but the mobilehome remains, sometimes referred to as "vacancy control," is an important part of rent control policy as it protects mobilehome owners from excessive space rent increases and permits sales of mobilehomes without "unconscionable" rent increases to the new owner; and

Rent control regulations, including vacancy control can assist in protecting affordable housing in combination with city programs and actions to help provide a variety of housing types within a range of costs affordable to the low and very low income households; and

A significant number of residents have become residents following the effective date of Ordinance No. 1564 on October 16, 1989, and were required to pay a rental rate substantially higher than comparable spaces; and

Many residents of such spaces are senior citizens on fixed incomes and have been forced to pay unnecessarily high rents and/or have been constrained in their ability to sell their mobilehomes.

This city council desires to enact a measure that would regulate rent increases upon in-place transfers of mobilehomes.

L. The city council has reviewed the findings above set forth in subsections A through K of this section and finds them to be still true and correct and continues to find a profound need for continued mobilehome rent stabilization.

(Ord. 1654 (20.01.010), 1993).

A. "Arbitration" is a process much like a trial where the arbitrator listens to both sides and makes a decision (called an award) for the disputing parties.

B. "Capital improvements" means those new improvements which directly and primarily benefit and serve the existing mobilehome park homeowners by materially adding to the value of the mobilehome park, appreciably prolonging its useful life, or adapting it to new uses, and which are required to be amortized over the useful life of the improvements pursuant to the provisions of the Internal Revenue Code and the regulations issued pursuant thereto. "Capital improvements costs" means all costs reasonably and necessarily related to the planning, engineering and construction of capital improvements and shall include debt service costs, if any, incurred as a direct result of the capital improvement.

C. "Capital replacement" means the substitution, replacement or reconstruction of a piece of equipment, machinery, streets, sidewalks, utility lines, landscaping, structures or part thereof of a value of five thousand dollars ($5,000.00) or more which materially benefits and adds value to the mobilehome park. "Capital replacement costs" means all costs reasonably and necessarily related to the planning, engineering and construction of capital replacement and shall include debt service costs, if any, incurred as a direct result of the capital replacement.

D. "Debt service costs" means the periodic payment or payments due under any security or financing device which is applicable to the mobilehome park including any fees, commissions, or other charges incurred in obtaining such financing.

E. "Representative" means a person appointed in writing by an owner, an operator, a homeowner, or a group of homeowners and authorized to represent the interest of, negotiate on behalf of, and bind the appointing party.

F. "Filing" means actual receipt of the item being filed by the person designated in this chapter to receive the item, or by his or her designee.

G. "Maintenance and operation costs" means all expenses, exclusive of costs of debt service, costs of capital improvements, and costs of capital replacement, incurred in the operation and maintenance of the mobilehome park, including but not limited to: real estate taxes, business taxes and fees (including fees payable by landlords under this chapter), insurance, sewer service charges, utilities, janitorial services, professional property management fees, pool maintenance, exterior building and grounds maintenance, supplies, equipment, refuse removal, and security services or systems.

H. "Mobilehome" means a structure as defined in Section 798.3 of the Civil Code as follows:

"Mobilehome" is a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code. Mobilehome includes a manufactured home, as defined in Section 18007 of the Health and Safety Code, and a mobilehome, as defined in Section 18008 of the Health and Safety Code, but does not include a recreational vehicle, as defined in Section 799.24 of this code and Section 18010 of the Health and Safety Code or a commercial coach as defined in Section 18001.8 of the Health and Safety Code.

I. "Mobilehome owner" or "homeowner" means any person legally occupying a mobilehome dwelling unit pursuant to ownership thereof within a mobilehome park and holding a rental or lease agreement with the park owner.

J. "Operator" means the owner, operator, or property manager of a mobilehome park within the city.

K. "Owner" means the owner or lessor of real property used for a mobilehome park within the city.

L. "Rent" means the consideration, including any bonus, benefits or gratuity, demanded or received in connection with the use and occupancy of a mobilehome lot in a mobilehome park, including services and amenities, and for the use of real property used for the operation of a mobilehome park, but exclusive of any amounts paid for the use of the mobilehome dwelling unit.

M. "Rent increase" means any additional rent demanded of or paid by a homeowner for a rental lot and related amenities, including any reduction or elimination of amenities without a corresponding reduction in the moneys demanded or paid for rent, and any additional rent demanded of or paid by an operator for rental of real property used for the operation of a mobilehome park. Any portion of a rent increase assessed for capital replacements or capital improvements shall be separately identified and shall not be included in the base rent.

N. "Rental lot" means a lot rented in a mobilehome park or offered for rent in the city for the purpose of occupancy by a mobilehome with all services connected with the use of occupancy thereof.

O. "Services" means those facilities which enhance the use of the rental lot, including, but not limited to, repairs, replacement, maintenance, painting, heat, hot and cold water, utilities, security devices, laundry facilities and privileges, janitorial service, refuse removal, telephone service, and meeting, recreational, and other facilities in common areas of the mobilehome park in which the lots are located.

(Ord. 1743 § 1, 1999; Ord. 1654 (20.02.020), 1993).

The provisions of this title apply only to mobilehome parks which contain mobilehomes as defined in this title and to the mobilehomes within such parks.

(Ord. 1654 (20.03.030), 1993).

Any owner/operator wishing to claim an exemption from this title based upon Civil Code Section 798.17 shall provide the following notice to any person and in the manner specified in this section.

A notice which conforms to the following language and printed in bold capital letters of the same type size as the largest type size used in the rental agreement shall be presented to any prospective purchaser at the time of presentation of a rental agreement creating a tenancy with a term greater than twelve (12) months:

IMPORTANT NOTICE TO PROSPECTIVE PURCHASER REGARDING THE PROPOSED RENTAL AGREEMENT FOR ________ MOBILEHOME PARK. PLEASE TAKE NOTICE THAT THIS RENTAL AGREEMENT CREATES A TENANCY WITH A TERM IN EXCESS OF TWELVE MONTHS. BY SIGNING THIS RENTAL AGREEMENT, YOU ARE EXEMPTING THIS MOBILEHOME SITE FROM THE PROVISIONS OF THE CITY OF SAN RAFAEL MOBILEHOME RENT STABILIZATION ORDINANCE FOR THE TERM OF THIS RENTAL AGREEMENT. THE CITY OF SAN RAFAEL MOBILEHOME RENT STABILIZATION ORDINANCE AND THE STATE MOBILEHOME RESIDENCY LAW (CALIFORNIA CIVIL CODE SECTION 798 et seq.) GIVE YOU CERTAIN RIGHTS. BEFORE SIGNING THIS RENTAL AGREEMENT YOU MAY CHOOSE TO SEE A LAWYER. UNDER THE PROVISIONS OF THE MOBILEHOME RENT STABILIZATION ORDINANCE, YOU HAVE A RIGHT TO BE OFFERED A RENTAL AGREEMENT FOR (1) A TERM OF TWELVE MONTHS, OR (2) A LESSER PERIOD AS YOU MAY REQUEST, OR (3) A LONGER PERIOD AS YOU AND THE MOBILEHOME PARK MANAGEMENT MAY AGREE. YOU HAVE A RIGHT TO REVIEW THIS AGREEMENT FOR AT LEAST 30 DAYS BEFORE ACCEPTING OR REJECTING IT. IF YOU SIGN THE AGREEMENT, YOU MAY CANCEL THE AGREEMENT BY NOTIFYING THE PARK MANAGEMENT IN WRITING WITHIN 72 HOURS OF YOUR EXECUTION OF THE AGREEMENT. IT IS UNLAWFUL FOR A MOBILEHOME PARK OWNER OR ANY AGENT OR REPRESENTATIVE OF THE OWNER TO DISCRIMINATE AGAINST YOU BECAUSE OF THE EXERCISE OF ANY RIGHTS YOU MAY HAVE UNDER THE CITY OF SAN RAFAEL MOBILEHOME RENT STABILIZATION ORDINANCE, OR BECAUSE OF YOUR CHOICE TO ENTER INTO A RENTAL AGREEMENT WHICH IS SUBJECT TO THE PROVISIONS OF THAT LAW.

The notice shall contain a place for the prospective purchaser to acknowledge receipt of the notice and shall also contain an acknowledgment signed by owner/operator that the notice has been given to the prospective purchaser according to this section. A copy of the notice executed by owner/operator shall be provided to the prospective purchaser.

(Ord. 1654 (20.03.040), 1993).

A prospective purchaser of a mobilehome which is subject to an in-place transfer shall have all the same rights as a homeowner, as defined in Civil Code Section 798.18 including:

A. The right to be offered a rental agreement for (1) a term of twelve (12) months, or (2) a lesser period as the homeowner may request or (3) a longer period as mutually agreed upon by both the homeowner and management.

B. The right to reject the offer of a rental agreement in excess of twelve (12) months and instead accept a rental agreement for a term of twelve (12) months or less from the date the offered rental agreement begins.

C. The owner/operator of any park shall file a standard multiyear residency agreement in the office of the city clerk. A standard form of written rejection approved by the city attorney's office shall also be filed in the office of the city clerk. A prospective purchaser may elect to reject a rental agreement in excess of twelve (12) months by executing the standard form of written rejection which incorporates applicable terms and conditions of the owner's standard multiyear residency agreement on file in the office of the city clerk. The execution of said written rejection shall be deemed to be a rental agreement between the purchaser and the owner with a month-to-month tenancy and with the rent limitations as set forth in this chapter sufficient for compliance with Civil Code Section 798.75(a).

(Ord. 1654 (20.03.050), 1993).

The city manager shall establish administrative procedures for the implementation of this title.

(Ord. 1654 (20.10.260), 1993).