Scotts Valley Municipal Code Ch. 9.16 Mobile Home Park Rent Stabilization

The city council finds, declares and determines that:

A. There exists within the city and the surrounding areas a serious shortage of mobile home rental spaces, which has resulted in low vacancy rates and the potential for rising space rents;

B. Because of the high cost of moving mobile homes, the potential for damage resulting therefrom, the requirements relating to the installation of mobile homes, including permits, landscaping and site preparation, the lack of alternative home sites for mobile home residences and the substantial investment of mobile home owners in such homes, there exists a shortage of mobile home park spaces;

C. It is necessary to protect the residents of mobile homes from unreasonable space rent increases, while at the same time recognizing the need for mobile home park owners to receive a just and reasonable income sufficient to cover the costs of repairs, maintenance, insurance, employee services, additional amenities and other operations, as well as a just and reasonable return on investment; and

D. It is the intent of this chapter to protect mobile home park residents from unreasonable space rent adjustments and mobile home park owners from infringement upon property rights.

(Ord. 98.12 § 2 (part), 1998)

For purposes of this chapter, the following words and phrases shall have the meanings hereinafter stated:

A. "Annual rent adjustment" means the rent adjustment made to the base rent not more frequently than once every three hundred sixty-five days.

B. "Base rent" means that rent charged by the mobile home park as of the effective date of the ordinance codified in this chapter, and recalculated thereafter each year according to any increase only for changes in the Consumer Price Index and shall not include any additional increases other than CPI except as provided in Sections 9.16.080 and 9.16.100 of this chapter.

C. "Capital project" means a project which includes the construction of (i) new improvements mandated by a public entity for health or safety purposes or (ii) the replacement of old improvements in a mobile home park including, but not limited to, construction, installation or replacement of a clubhouse or portions thereof, common area facilities, swimming pool, sauna or hot tub, or other recreational amenities, streets and driveways, security gates, outdoor or common area lighting, retaining walls, sewer, electrical plumbing, water, or television reception systems, sprinkler systems, or any similar improvement. Capital projects are improvements defined herein which have a life expectancy of five years or more, which are treated as capital improvements for federal and state income tax purposes, which may not be deducted for such tax purposes as expenses and which have a minimum value of at least ten thousand dollars for each project in a park with fifty mobile homes or more and at least five thousand dollars for each project in a park with less than fifty mobile homes. Capital projects do not include normal repairs or maintenance or insured repairs or replacements. Further, capital projects do not include improvements required due to owner's failure to provide reasonable and sound maintenance of a facility or facilities.

D. "Commission" means the mobile home rent review commission established by this chapter.

E. "Consumer Price Index (CPI)" means the Consumer Price Index for Urban Consumers (CPI-U) as published for the San Francisco-Oakland area by the U.S. Department of Labor, Bureau of Labor Statistics.

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

G. "Mobile home park" means any area of land within the city where two or more mobile home spaces are rented, or held out for rent, to accommodate mobile homes used for human habitation.

H. "Mobile home space" means the site within a mobile home park intended, designed or used for the location or accommodation of a mobile home and any accessory structures or appurtenances attached thereto or used in conjunction therewith.

I. "Owner" means and includes the owner or operator of a mobile home park or an agent or representative authorized to act on such owner's or operator's behalf in connection with the maintenance or operation of such park.

J. "Rent" means the money paid in consideration of the use and occupancy of a mobile home space, including services, amenities and benefits in connection therewith.

K. "Resident" means any person entitled to occupy a mobile home pursuant to ownership thereof or rental or lease arrangement with the owner of the mobile home or as authorized pursuant to the Mobile Home Residency Law (California Civil Code Section 798 et seq.). However, "resident" shall not include any owner or employee of owner.

L. "Voluntary vacancy" means any one of the following: a sale or resale of a mobile home to a new resident(s); a removal of the mobile home from the space; or a termination of tenancy pursuant to the Mobile Home Residency Law. A sale, resale or transfer of interest between members of the same immediate family (defined as the homeowner's legal spouse, the homeowner's legal parents or the homeowner's legal children) or to a beneficiary of a valid will or trust of the tenant shall not constitute a voluntary vacancy under this provision.

(Ord. 98.12 § 2 (part), 1998)

A. The provisions of this chapter shall apply to all mobile home parks and all mobile home spaces owned by owner within the city, except as provided in subsection B of this section.

B. This chapter shall not apply to mobile home spaces covered by leases at the effective date of the ordinance codified in this chapter, which provided for more than month-to-month tenancy, but only for the duration of any such lease. Upon the expiration or other termination of any such lease, all provisions of this chapter shall immediately be applicable to the mobile home space, unless and until such space is again leased for more than a month-to-month tenancy.

C. None of the provisions of this chapter shall preclude a resident from entering into a written lease with an owner.

D. Owner shall inform any prospective resident of the applicability of this chapter to the prospective mobile home space and shall supply a copy of this chapter to such prospective resident prior to executing a written lease with such prospective resident.

(Ord. 98.12 § 2 (part), 1998)

A. There is created within the city of Scotts Valley (hereinafter the "city") a mobile home rent review commission (hereinafter "the commission") which shall consist of five members who shall be residents of the city. Each city council member shall appoint one member of the commission. All appointments shall be confirmed by majority vote of the city council. Each commission member shall serve the same term as the council member making the appointment. The members of the commission at the time of the effective date of the ordinance codified in this chapter shall serve the remainder of their respective terms.

B. Commission members shall not be mobile home park tenants or have any financial interest in any mobile home park.

C. Commission members may not be removed from the commission except for reasons of incapacity, death, resignation, mobile home park tenancy, financial interest in any mobile home park, and/or conviction of a crime involving fraud, dishonesty or moral turpitude.

D. Each member of the commission shall be entitled to such compensation as may be set by the city council. Such costs shall be borne by the city. If established, compensation shall be only for hearings attended by the commission members in the performance of their duties as set forth in Section 9.16.090.

E. The commission shall not have any authority to spend or authorize the expenditure of any public funds.

(Ord. 98.12 § 2 (part), 1998)

The duties of the commission include:

A. To meet upon the filing of a request for a rent adjustment pursuant to Section 9.16.070, 9.16.080 or 9.16.090;

B. To receive, investigate, hold hearings on and pass upon the subject request;

C. To continue the space rent charges as they exist or to adjust rents either upward or downward upon completion of their hearings or investigations of requests for rent adjustments pursuant to Section 9.16.070, 9.16.080 or 9.16.090;

D. To maintain and keep at City Hall rent review hearing files and documents listing the time, date and place of hearings, the parties involved, the addresses involved, and the final dispositions of the request;

E. To prepare rent registration statements for each mobile home space affected by this chapter as required by Section 9.16.060 and rent increase petition forms as required by Section 9.16.090;

F. To determine the percentage change in the Consumer Price Index no later than June 30th of each year which shall be used to calculate rent adjustments pursuant to Section 9.16.070;

G. To promulgate procedural regulations relating to the conduct of hearings.

(Ord. 98.12 § 2 (part), 1998)

Within the month of January of each year, owner shall be required to file with the commission a rent registration statement for each mobile home space affected by this chapter. The commission shall devise such registration forms so as to call for information reasonably necessary to carry out the purposes and policies of this chapter, and shall mail such forms to owner in sufficient time as to allow owner to file the registration statements.

(Ord. 98.12 § 2 (part), 1998)

A. At least ninety days prior to the effective date of a rental adjustment, owner shall serve all affected residents, either personally or by mail, with notice of the proposed adjustment in accordance with state law and justification for such increase. Within five days prior to any notice to residents of a rent adjustment, owner shall provide the commission with the following information:

1. The effective date of the noticed adjustment;

2. Identification of the mobile home spaces affected;

3. The amount of the rent prior to the effective date of the notice for each of those mobile home spaces;

4. The amount of the increase (in dollars) for each of those mobile home spaces and the basis for the increase with supporting data and calculations;

5. The identity of spaces under lease.

B. No adjustment to the base rent for a mobile home space shall be noticed or permitted or enforced more frequently than once every three hundred sixty-five days, except as provided in Sections 9.16.080, 9.16.090 and 9.16.100 of this chapter.

C. Maximum Allowable Adjustment to Rent.

1. Owner shall be permitted to increase the rent for a mobile home space in excess of that which was lawfully charged during the previous year based upon all or any of the following bases:

a. Once every three hundred sixty-five days, owner may adjust the base rent in an amount not to exceed that amount derived by multiplying the base rent by one hundred percent of the change of the CPI, as defined herein and as established by the commission. In no event shall the increase be less than three and one-half percent of the base rent nor greater than seven percent thereof.

b. Owner may be granted an increase in rent spread across all mobile home spaces in the mobile home park on a prorata basis in the event of an increase in the taxes (except any increase in property taxes due to a change in ownership), assessments, or levies imposed upon the mobile home park by local, state or federal government agencies, as permitted under the Mobile Home Residency Law (Civil Code Section 798 et seq.). Owner shall so decrease rent in such manner in the event of a decrease in such costs to owner. Any such increase may be made and any such decrease shall be made at the time when owner incurs the same, subject to the notice requirements of this chapter.

c. Owner may be granted an increase in rent spread across all mobile home spaces in the mobile home park on a prorata basis in the event a capital project, as defined in this chapter, is made within the mobile home park. The amount allowed as increased rent shall be equal to fifty percent of the costs of the capital project, including design, permits, construction and financing costs. The increase in rent may be made at the time when the capital project is completed as determined by final inspection of all governmental entities, if any, having jurisdiction over the capital project, subject to notice requirements applicable thereto. Such increase in rent shall be evenly spread over a period of time equivalent to either the Internal Revenue Service amortization period applicable to the capital improvement or a shorter period agreed to by owner and the resident committee in the subject mobile home park.

2. Notwithstanding anything to the contrary stated in this chapter, prior to installing any new amenity in a mobile home park, a vote of all owners of mobile homes, excluding those mobile home owners who are the owner, must be taken to approve the installation of such new amenity. Each mobile home space, excluding those mobile home spaces which are owned by owner, shall be given one vote. The installation of any new amenity shall only be permitted if approved by a vote of fifty percent plus one vote of all votes cast.

3. Owner and the residents of a mobile home park shall in good faith negotiate the sharing of costs of repairing or replacing facilities incurred due to any acts of God for which damages are not covered by prudent insurance coverage.

D. In the event an owner attempts to increase rent without complying with the provisions of this chapter or the residents question the validity of a request to increase or decrease rent, the residents may challenge the proposed increase or decrease in rent by complying with the provisions of Section 9.16.090.

(Ord. 98.12 § 2 (part), 1998)

A. Purpose. Notwithstanding the general space rent adjustment contained in this chapter, an owner having exhausted his rent adjustment remedies under Section 9.16.070, shall be allowed to make an application and present a rent adjustment formula approach to the commission in the manner provided in Section 9.16.090, which will allow the owner a just and reasonable return on his/her investment, provided that the owner can prove by a preponderance of the evidence, that he or she will not receive a just and reasonable return under Section 9.16.070.

B. Consideration of Relevant Factors. The commission shall approve such rent increases under this section as it determines to be just and reasonable by considering any factors the commission deems relevant in the manner provided in Section 9.16.090.

(Ord. 98.12 § 2 (part), 1998)

In the event (i) owner attempts to increase the rent without complying with the provisions of this chapter, (ii) the residents question the validity of a request to increase or decrease rent, or (iii) the owner believes he/she is not earning a just a reasonable return on his/her investment, the following provisions shall apply:

A. Meet and Confer. The owner and residents shall meet, confer and attempt to resolve any disputes set forth in (i), (ii) or (iii) above, as a condition precedent to filing a petition with the commission as outlined in subsection B of this section.

B. Petition to Commission. In the event the owner and residents are unable to resolve their disputes through the meet and confer process, either party may file a written request with the commission asking the commission to resolve the dispute (the "petition"). The petition shall include a summary of the attempts to meet and confer and the results of those attempts.

1. Hearing Process.

a. Prior to the hearing, the party bringing the petition shall submit, on a form prescribed by the commission, a written statement outlining the facts, circumstances and legal basis for filing the petition. The city clerk shall immediately send a copy of the petition and supporting evidence to the party opposing the petition. Thereafter, the opposing party shall have twenty days following receipt of notice of the petition to file with the city clerk a response in opposition to the petition. The clerk shall serve a copy of the response on the petitioner, who shall then have ten days to submit a written rebuttal. The city clerk shall then serve on the opposing party a copy of that rebuttal.

b. The petition shall be accompanied by a cash deposit in a sum equal to ten dollars for each space actually available for rental in the mobile home park affected by the petition. All or any part of the actual costs incurred by the city pursuant to rent review under this chapter, including, without limitation, expenses attributable to city staff time, city attorneys' fees, stenographic fees, city administrative overhead, and the like, shall be assessed against the party challenging the increase or decrease in rent. The balance, if any, shall be refunded to the person or persons who submitted the cash deposit upon the conclusion of the hearing. The petitioner shall, within thirty days of receipt of written notice from the city clerk, pay the difference in excess of the cash deposit and the actual costs of the hearing, if any. Failure to pay the actual costs within thirty days of written notice by the city shall be deemed a violation of this code and enforceable by the city either criminally or civilly as provided in Chapter 1.08 of this code. If the commission determines that a rent adjustment was imposed in bad faith or in violation of this chapter, the commission shall order the owner to reimburse the tenants for the costs incurred, if any, in bringing a petition.

c. The commission shall set a hearing, which shall be open to the public, on the petition at a place and time to be set by the commission, but no sooner than thirty days and no later than sixty days after receipt of the completed petition and the fee. The commission may continue the hearing from time to time.

d. At the hearing, the petitioner, opposing party, affected tenants or other interested persons may offer testimony, documents, written declarations, or other relevant evidence. The commission may refuse to accept any materials submitted in connection with any petition or response thereto which the commission considers irrelevant. The commission may reasonably limit the time allowed for oral testimony and cross-examination. Formal rules of evidence shall not be applicable to such proceedings.

e. No later than ten days before any hearing on a petition, the city clerk shall send notices of the date, place and time of the hearing to the owner and affected tenants.

f. All materials submitted in support of a petition shall be available to the public upon written request to the city clerk. Copies may be made at the cost of the requesting party for the usual copying costs of the city.

2. Decision of the Commission Final.

a. A written decision shall be prepared by or at the direction of the commission no later than forty-five days after the conclusion of the hearing on the petition and following adoption by a majority of the commission, the decision shall be final. All parties to a hearing shall receive a notice of the commission's decision and a copy of the written findings on which the decision is based.

b. Within thirty days after adopting the decision, the commission shall submit to the city council a written report regarding its findings and conclusions.

c. The commission may require the owner to (1) reduce the rental or service charges to a rate to be determined by the commission; (2) continue the rental or service charges as they existed under the former lease or rental arrangement; or (3) increase the rental or service charges to a rate set by the commission.

d. The decision of the commission shall be final and shall provide notice to all parties that the time within which judicial review must be sought is governed by California Code of Civil Procedure Section 1094.6, as now stated or later amended. The provisions of Section 1094.6 of the California Code of Civil Procedure (Judicial Review) as now stated or later amended, shall apply to all final decisions of the commission, including, without limitation, the time in which judicial review must be sought.

(Ord. 98.12 § 2 (part), 1998)

In addition to any other adjustments to rent allowed under Sections 9.16.070, 9.16.080 and 9.16.090 of this chapter, and notwithstanding the limitation providing for only one rental adjustment per year to the base rent pursuant to Section 9.16.070(B), owner shall be permitted to increase the base rent applicable to a mobile home space upon a voluntary vacancy of the space by an amount of ten percent of the base rent for the mobile home space applicable at the time of the voluntary vacancy or thirty dollars, whichever shall be greater. The base rent on a particular mobile home space shall not be increased due to a voluntary vacancy more frequently than once in any thirty-six-month period.

(Ord. 98.12 § 2 (part), 1998)

Nothing in this chapter shall be construed as requiring an owner to adjust rents each year or as preventing an owner from adjusting rents to levels less than those allowed in this chapter. Further, owner shall give good faith consideration to a resident's request to be relieved from an increase in rent allowable under this chapter due to that resident's suffering substantial economic hardship.

(Ord. 98.12 § 2 (part), 1998)