Woodland Municipal Code Ch. 5.36 Manufactured Home Space Rent Control

A. There is presently, within the City of Woodland and surrounding communities, a shortage of rental spaces for the location of manufactured homes commensurate with the demand therefor. This inequitable market situation has resulted in low vacancy rates and contributed or threatens to contribute to rapidly escalating rents. This situation has resulted or threatens to result in serious concern, anguish and stress among a significant portion of Woodland residents living in manufactured home parks.

B. Alternative sites for the relocation of manufactured homes are difficult to find due to the shortage of vacant space, the restrictions on the age, size or style of manufactured homes permitted in many parks, and requirements related to the installation of manufactured homes, including permits, landscaping and site preparation. Additionally, the cost for moving a manufactured home is substantial, and the risk of damage in moving is significant. The results of these conditions are the creation of a captive market of manufactured home owners. This immobility, in turn, contributes to the creation of a great imbalance in the bargaining position of the park owners and manufactured home owners in favor of the park owners.

C. Manufactured home owners are property owners with sizable investments in their manufactured homes and appurtenances. Collectively, the manufactured home owners have a greater investment than does the manufactured home park owner. The residents of manufactured home parks consider their relationship with the park owners as a joint housing venture. The continuing possibility of unreasonable space rental increases in manufactured home parks threatens to diminish the value of the investment of the manufactured home owners. Further, existing State law permits manufactured home park owners to require manufactured home owners to make modifications to their homes for reasons of aesthetics or conformity to park standards that amount to capital improvements which would accrue to the benefit of the park owner by potentially increasing the market value of the park itself.

D. It is necessary to facilitate and encourage fair bargaining between manufactured home owners and park owners in order to achieve mutually satisfactory agreements with regard to space rental rates in manufactured home parks. Absent such agreements this Council further finds and declares it necessary to protect the owners and residents of manufactured homes from unreasonable space rental increases while simultaneously recognizing and providing for the need of park owners to receive a just and reasonable return on their property.

(Prior code § 16B-1)

Commission.

The manufactured home fair practices commission established by this chapter.

Manufactured home.

For purposes of this chapter, the term "manufactured home" shall be synonymous with the term "mobile home."

Manufactured home park.

An area of land where two or more manufactured home sites are rented, or held out for rent to accommodate manufactured homes used for human habitation. Also referred to herein as a "park."

Manufactured home park owner.

The owner, lessor, operator or designated agent thereof of a manufactured home park also referred to herein as a "park owner."

Manufactured home resident.

Any person entitled to occupy a manufactured home as the owner thereof or pursuant to a rental or lease agreement with the owner of a manufactured home. Also referred to herein as a "resident."

Rental agreement.

An agreement between the manufactured home park owner and a resident establishing the terms and conditions of a tenancy. A lease is a rental agreement.

Space rent.

The consideration, including any bonus, benefits or gratuities, demanded or received for and in connection with the use or occupancy of a manufactured home within a manufactured home park or the transfer of a rental agreement of such a manufactured home. The use and occupancy of a rental unit shall induce the exercise of all rights and privileges and use of all facilities, services and amenities accruing to the residents thereof for which a separate fee authorized by the Mobile Home Residency Law (California Civil Code Section 798 et seq.) not charged. Nothing herein shall be construed to prevent a park opener from establishing such fees as may be authorized by the Mobile Home Residency Law.

Vacancy control.

The occurrence of a vacancy in either a space within a park or a mobile home unit on a space within a park shall not result in a space rental increase in excess of the percentage increase allowed once during any 12-month period.

(Prior code § 16B-2)

A. The provisions of this chapter shall apply to all manufactured home parks as defined in Section 5.36.020, and to all tenancies in such parks unless otherwise exempted by this section or any other provision of this chapter.

B. The space rent ceiling provision of this chapter shall not apply to any tenancy in a manufactured home park that is covered by a rental agreement meeting all of the requirements of Section 798.17 of the California Civil Code for the duration of such agreement. All other provisions, including, but not limited to, the registration provisions of Section 5.36.050, shall be applicable to such tenancies unless specifically exempted by a provision of this chapter or State law.

C. The provisions of this chapter shall not apply to any space occupied by a resident who, throughout the duration of his or her tenancy, owns both the manufactured home in which he or she resides and an ownership interest in the subdivision, cooperative, condominium for mobile homes, or other residentowned manufactured home park in which the space is located.

D. The provisions of this chapter shall not apply to spaces in manufactured home parks that are subject to recorded affordable housing covenants which restrict tenancies to low-and very low-income households and require rents affordable to residents at those income levels.

(Prior code § 16B-3)

A. Establishment. The manufactured home fair practices commission of the City of Woodland is hereby established.

B. Membership.

1. The Commission shall consist of a total of five regular members and two alternate members. All regular and alternate members shall be resident electors of the City of Woodland. No member shall be a manufactured home owner or resident; an owner, operator or manager of a manufactured home park; own or possess any interest in; or operate or manage, any other rental property totaling four or more dwelling units, whether such four units are located on one parcel or lot, or are spread among several parcels or lots. As used in this section, "dwelling unit" shall mean an apartment unit, a condominium unit, or a single-family residence.

2. All members of the Commission, regulars and alternates, shall be required to attend all Commission meetings and hearings unless such member has been disqualified from participation.

3. When a regular member is absent from a meeting, an alternate member shall participate in the Commission proceedings in place of the absent regular member. An alternate member shall have voting privileges only when acting in the stead of an absent regular member.

C. Nomination and Appointment. Each member of the City Council shall nominate one regular member and the Mayor shall nominate one regular member and two alternate members for appointment to the Commission. Each such nomination shall be subject to actual appointment by the Mayor with the approval of the City Council.

D. Term.

1. Each regular member of the Board shall serve for a term of three years except as otherwise provided herein. For the first Commission, the Mayor shall appoint three regular members for three-year terms and two regular members for two-year terms. Thereafter, the successors of these members shall be appointed for terms of three years. Each regular member shall hold office until a new member has been duly appointed.

2. Each alternate member of the Board shall serve for a term of two years except as otherwise provided herein. Each alternate member shall hold office until a new alternate member has been duly appointed.

3. If a vacancy shall occur otherwise than by expiration of the term, it shall be filled by appointment for the unexpired portion of such member's term.

4. The provisions herein above notwithstanding, a member may be removed, at any time, with or without cause, by majority vote of the City Council.

5. Any member who is absent, without sufficient cause, from three successive meetings of the Commission which such member was required to attend, shall be deemed to have vacated his or her office.

E. Meetings. Except as expressly provided herein, the Commission shall establish the time and place of its meetings. All meetings of the Commission shall be conducted in accordance with the provisions of the Ralph M. Brown Act (Government Code Section 54950 et seq.).

F. City Council Guidelines—Commission Rules and Regulations.

1. The City Council may from time to time, adopt by resolution, such guidelines, as it deems necessary to assist and direct the Commission in the accomplishment of its duties.

2. The Commission may make and adopt its own rules and regulations for conducting its business consistent with the laws of the State, this chapter, and any guidelines adopted by the City Council. Any such rules and regulations shall be reduced to writing and be on file with the secretary of the Commission at all times.

G. Officers. The Commission may appoint such officers, as it may deem necessary to carry out its duties hereunder.

H. Records. The Commission shall keep a record of its proceedings, which shall be open for inspection by any member of the public.

I. Appointment of Committees and Hearing Officers. The Commission may appoint committees or hearing officers to hear matters on which testimony must be taken, which committees and officers shall report to the Commission the findings and results of any such hearing on a matter referred to such committee or person.

J. Compensation. Each member of the Commission shall be entitled to such compensation as may be set by the City Council. Such members shall be entitled to reimbursement for expenses incurred in the performance of their official duties. The Commission shall not have any authority to expend or authorize the expenditure of any public funds, except with the prior express approval of the City Council.

K. Staff. The City Manager shall provide all administrative staff necessary to serve the Commission. The City Clerk shall serve as the secretary of the Commission and shall be responsible for the maintenance of all records of the Commission. The City Attorney or designee shall act as legal counsel to the Commission.

L. Quorum. Three commissioners shall constitute a quorum. A majority vote of all commissioners, i.e., three votes is required for the adoption of any findings and/or order pertaining to an application filed hereunder and for the adoption, amendment or repeal of any rules and regulations of the Commission. A majority vote of the quorum of the Commission is required for the Commission to take action on any other matter.

M. Duties. The Commission shall undertake and have the following duties, responsibilities and functions, together with all powers reasonably incidental thereto:

1. To meet from time to time as may be specified by the rules and regulations of the Commission in order to carry out its duties;

2. To require such registration of manufactured home parks as the Commission may deem necessary to enable it to carry out its duties;

3. To make adjustments in space rent ceilings as provided for in this chapter;

4. To make such studies, surveys and investigations, conduct such hearings, and obtain such information as is necessary to carry out its powers and duties;

5. To adopt, promulgate, amend and rescind such administrative rules as may be necessary to effectuate the purposes and policies of this chapter and to enable the Commission to carry out its powers and duties thereunder;

6. To render at least semiannually a comprehensive written report to the City Council concerning the Commissions activities, holdings, action, results of hearings, and all other matters pertinent to this chapter; and

7. To undertake such other related duties as may be assigned by the City Council.

(Prior code § 16B-4)

A. Within 60 calendar days after the date any manufactured home park, or manufactured home space, initially becomes subject to the provisions of this chapter, and annually thereafter, the owner of such park shall register the park, inducing all manufactured home spaces within the park that are subject to this chapter.

B. The initial registration shall include the name(s), business addresses, business telephone number(s) of each person or legal entity possessing an ownership interest in the park and the nature of such interest; the number of manufactured home rental spaces within the park; a rent schedule reflecting space rents within the park on the effective date of this chapter; a listing of all other charges, including utilities not included in space rent, paid by manufactured home residents within the park and the approximate amount of each such charge; and the name and address to which all required notices and correspondence may be sent.

C. The Commission is hereby empowered to require such re-registration as it deems necessary.

D. No park owner shall be eligible to receive any rent ceiling adjustment as provided for under the provisions of this chapter unless such current registration as may then be required for the manufactured home park is on file with the Commission at the time the petition for the rent ceiling adjustment is filed.

E. The registration requirements provided for in this section or which may be established by the Commission shall apply to all manufactured home parks, and park spaces, including those exempt from the space rent ceiling limitation by reason of an exemption based upon Civil Code Section 798.17.

(Prior code § 16B-5)

A. At the time of initial registration or any subsequent re-registration, manufactured home park owners shall pay to the City of Woodland a registration fee for each manufactured home rental space within the park, as established by resolution of the City Council, except such spaces that are exempt from such fee because of a space rental agreement that meets the requirements of Section 798.17 of the California Civil Code.

B. If a park owner does not pay the fee provided for in subsection A within the time period established therein, a late charge shall be assessed in an amount equal to one dollar for each manufactured home rental space within the park for each month or fraction thereof that such payment is delinquent.

C. No petition will be accepted from any park owner for a space rent ceiling adjustment of any kind, no hearing or other proceeding shall be scheduled or take place, and no space rent ceiling adjustment shall be granted or take effect for any manufactured home park for which there is an unpaid registration fee.

D. The registration fee provided by this section is intended to defray costs associated with the administration of this chapter except those costs associated with net operating income and special adjustment hearings, which costs are provided for under Section 5.36.140(F) of this chapter

E. The City Manager is hereby directed to maintain an accurate accounting of all direct and indirect costs of administering the regulations contained in this chapter. The City Manager shall submit a report to the Commission and City Council of such costs and any recommendation for a change in the registration fee at least annually from and after the effective date of this chapter.

(Prior code § 16B-6)

A. Beginning the first month which commences following the effective date of the ordinance codified in this chapter, no owner of a manufactured home park shall charge space rent for any manufactured home space in an amount greater than the space rent in effect on January 1, 1996. This date shall be known as the "space rent ceiling date." The space rent in effect on that date, and as thereafter adjusted in accordance with this chapter, shall be known as the space rent ceiling.

B. When no space rent in effect. If there was no space rent in effect on the space rent ceiling date, the space rent ceiling shall be the space rent that was charged for that space on the last date that space rent was charged for the space prior to the space rent ceiling date.

C. Exemptions. If a manufactured home space is exempted from the space rental ceiling provisions of this chapter by reason of the existence of a space rent agreement that meets the requirements of Civil Code Section 798.17, and the agreement expires, the space rent ceiling for the space shall be the space rent in effect for that space before the agreement expired.

(Prior code § 16B-7)

A. Increase Prohibited. No increase in space rent ceiling shall be permitted except as provided for herein.

B. Initial Adjustment.

1. Permissive Adjustment. A park owner shall be entitled to an initial permissive adjustment of gross space rental income equal to the lesser of the three percent increase per annum since the base year or an increase equal to the percentage increase in the Consumer Price Index (CPI) from the end of the base year to the date of application for the adjustment.

2. NOI Adjustment. In the event a park owner does not receive a just and reasonable return on the park property after receiving the maximum permissive adjustment provided for above, a park owner may file an application with the Commission for an initial adjustment of the space rent ceiling.

A park owner shall be entitled to an adjustment of the space rent ceiling so as to enable the park owner's base year net operating income (NOI) to be increased by a rate equal to the lesser of: (a) the percentage increase in the CPI since the end of the base year multiplied by that percentage of the CPI which composes the expenditure category of housing or the equivalent thereof; or (b) 40% of the percentage increase in the CPI since the end of the base year. The percentage increase in the CPI shall be calculated by using the procedure set forth in subsection (B)(1) of this section.

No further space rent ceiling adjustment shall be permitted in calendar year 2002, with the exception of any applicable pass-through adjustment provided for herein.

3. Filing of Application. An application for either an initial permissive or NOI adjustment may be filed with the secretary to the Commission no sooner than 60 days following the effective date of the ordinance codified in this chapter. The application shall be submitted on such form as may be provided by the Commission.

The Commission shall review any such application in accordance with the provisions of this chapter.

C. Annual Adjustment. Commencing on April 1st in the year following the date any manufactured home park initially becomes subject to the provisions of this chapter, and every subsequent year thereafter, any park owner subject to this chapter shall be entitled to the following annual adjustments:

1. Permissive Adjustment. A park owner shall be entitled to an annual permissive adjustment of gross space rental income equal to the lesser of a three percent increase or an increase equal to 75% of the percentage increase in the CPI during the full 12 calendar months immediately preceding the date of the application as reported by the Bureau of Labor Statistics. The percentage increase in the CPI during the 12-month period shall be calculated by comparing the CPI reported for the last month of the 12-month period with the CPI reported for the month immediately preceding the 12-month period.

2. NOI Adjustment. In the event a park owner believes he or she would not receive a just and reasonable return on his or her investment in the park after receiving the maximum permissive adjustment provided for above, a park owner may file an application with the Commission for an alternative adjustment of the space rent ceiling based upon the park's net operating income (NOI).

A park owner shall be entitled to an adjustment of the space rent ceiling so as to enable the park owner's net operating income (NOI) during the full 12 calendar months immediately preceding the date of the application to be increased by a rate equal to the lesser of: (a) the percentage increase in the CPI during the full 12 calendar months immediately preceding the date of the application multiplied by that percentage of the CPI which composes the expenditure category for housing; or (b) 40% of the percentage increase in the CPI during the full 12 calendar months immediately preceding the date of the application. The percentage increase in the CPI during the 12-month period shall be calculated in the same manner described in subsection (C)(1) of this section.

3. Effect of Previous Annual Adjustment. No annual adjustment shall become effective if a previous annual adjustment became effective within the previous 12 months. An annual adjustment may, however, be approved by the Commission within such 12-month period provided that such an adjustment shall not become effective within such 12-month period.

D. Pass-Through of Government Assessments.

1. A manufactured home park owner may file an application with the Commission to pass through to the residents of the park governmental assessments related to the operation of the park. The application shall be submitted in such form, and at such time, as may be provided by the Commission.

2. For governmental assessment increases of a continuing nature, the Commission shall permit the park owner to adjust the space rent ceiling by an amount deemed necessary to cover the increase in such assessments. The space rent ceiling for each manufactured home rental space shall be adjusted equally in an amount necessary to cover increases in such costs.

3. Government assessments representing a single one-time payment, or a single assessment payable over a fixed period of time, shall not affect the space rent ceiling for the park. Park owners may pass through such assessments to the residents of the park upon terms and conditions as approved by the Commission.

4. For the purposes of this chapter, government assessments shall not include Federal, State or local taxes, governmental license or registration fees, or fees paid and costs incurred pursuant to the requirements of this chapter.

F. Distribution of Space Rent Ceiling Adjustments. In the event the Commission grants any adjustment or pass-through pursuant to any provision of this chapter, the amount of the gross adjustment or pass-through shall be distributed to each individual space in the park based upon the percentage increase in the gross space rents of all manufactured home spaces in the park subject to this chapter. The individual space rent shall thus increase by the same percentage increase as the increase allowed to the gross space rents in the park.

The park owner shall adjust the space rent ceiling for each such manufactured home rental space within the park accordingly and impose this adjustment simultaneously to all manufactured home rental spaces in the park.

G. Consumer Price Index (CPI). The Consumer Price Index utilized herein shall be the Consumer Price Index for all urban consumers in the west urban area, including all items and not seasonally adjusted, as reported by the U.S. Department of Labor, Bureau of Labor Statistics, with an index measure of 100 for the base period of 1982-84 or such other prevailing base period as may be adopted from time to time by the Bureau of Labor statistics. In the event that the Consumer Price Index as defined in this section is discontinued, the Commission shall use in its place the substantially similar index thereafter employed by the Bureau of Labor Statistics in lieu of the Consumer Price Index to report the increase in the cost of living of urban consumers in the western United States. As used in this section, "Bureau of Labor Statistics" shall mean that agency or its successor agency of the United States Government.

(Prior code § 16B-8)

A. Except as provided herein below, it shall be presumed that the net operating income produced by a manufactured home park during the base year provided the park owner with a just and reasonable return. Park owners shall be entitled to maintain and increase their net operating income from year to year in accordance with the adjustment procedures contained in this chapter.

B. It shall be presumed that where the NOI is less than 50% of gross income in the base year, the park owner was receiving less than a just and reasonable return on the manufactured home park. In such a case, for purposes of determining the base year NOI, gross income shall be adjusted upward to twice the amount of the base year operating expenses.

C. It shall be further presumed that the adjustments provided for in this chapter, including any adjustments to base year NOI and any annual adjustments provides all adjustments necessary to allow the park owner a just and reasonable return on investment for any given year.

D. However, in the event a park owner contends that the application of these adjustments does not result in a just and reasonable return to the park owner for the particular year, the park owner may apply for an additional "special adjustment." The application for a special adjustment shall be in writing in such form as provided by the Commission and shall be heard by the Commission at a public hearing to be known as a "fair return hearing." Notice of the fair return hearing shall be given to the park owner/applicant and to the residents of the park by first class mail sent not less than 20 days before the date set for the hearing.

E. At the fair return hearing, the park owner shall bear the burden of presenting evidence rebutting the presumption stated in subsection C above, and the Commission shall hear such evidence, and consider such evidence as provided in Section 5.36.140(D)(6), and determine, based upon the evidence presented, whether the adjustments as provided in this chapter are adequate to allow the park owner a just and reasonable return, and whether and to what extent a special adjustment is necessary to allow such just and reasonable return. The Commission shall grant a special adjustment to the extent it finds such necessary to effectuate such just and reasonable return to that park owner/applicant.

(Prior code § 16B-9)

Except as otherwise provided herein, the base year for all manufactured home parks shall be the 12-month period immediately preceding the space rent ceiling date applicable to that park.

(Prior code § 16B-10)

For purposes of this chapter, the net operating income (NOI) of a manufactured home park shall equal gross income (GI) less operating expenses (OE).

(Prior code § 16B-11)

For purposes of this chapter, the gross income (GI) of a manufactured home park shall equal the following:

A. Gross space rents, computed as gross space rental income at 100% occupancy; plus

B. Other income generated as a result of the operation of the park, including, but not limited to, laundry and recreational vehicle storage; plus

C. Revenue received by the park owner from the sale of gas and electricity to park residents where such utilities are billed individually to the park residents by the park owner, which revenue shall equal the total cost of the utilities to the residents minus the amount paid by the park owner for such utilities to the utility provider; minus

D. Uncollected space rents due to vacancy and bad debts to the extent that the same is beyond the park owner's control. Uncollected space rents in excess of three percent of gross space rents shall be presumed to be unreasonable unless established otherwise and shall not be included in computing gross income. Where uncollected space rents must be estimated, the average of the preceding three year's experience shall be used, or some other comparable method.

(Prior code § 16B-12)

A. For purposes of this chapter, the operating expenses (OE) of a manufactured home park shall include the following:

1. Real Property Taxes and Assessments.

2. Management expenses, including the compensation of administrative personnel (may include the value of any manufactured home space offered as part of compensation for such services), reasonable and necessary advertising to ensure occupancy only, legal and accounting services as permitted herein, and other managerial expenses. Management expenses are presumed to be not more than five percent of gross income, unless established otherwise.

3. Normal repair and maintenance expenses for the grounds and common facilities, including, but not limited to, landscaping, cleaning, repair of equipment and facilities.

4. Owner-performed labor in operating and/or maintaining the park. In addition to the management expenses listed above where the owner performs managerial or maintenance services which are uncompensated, the owner may include the reasonable value of such services. There shall be a maximum allowance of five percent of gross income unless such a limitation would be substantially unfair in a given case. It shall be presumed that a park owner must devote substantially all of his or her time, i.e., at least 40 hours per week, to performing such managerial or maintenance services in order to warrant the maximum five percent allowance. No allowance for such services shall be authorized unless a park owner documents the hours utilized in performing such services and the nature of the services provided.

5. Operating supplies such as janitorial supplies, gardening supplies, stationery and so forth.

6. Insurance premiums prorated over the life of the policy.

7. Other taxes, fees and permits.

8. Reserve for Replacement of Necessary Capital Improvements. This amount shall not exceed five percent of gross income. The reserve shall be documented. The reserve may be included as an operating expense in a particular annual adjustment only to the extent that additional money is added to any previously approved reserve, up to a maximum of five percent of current gross income.

9. Necessary Capital Improvement Costs Exceeding Reserves for Replacement. A park owner may include the cost of necessary capital improvement expenditures which exceeded reserves for replacement for which the park owner has been given credit under paragraph 8 of this subsection in the current adjustment or in any previously approved adjustment. A necessary capital improvement shall be an improvement required to maintain the common facilities and areas of the park in a decent, safe and sanitary condition or to maintain the existing level of park amenities and services.

Expenditures for capital improvements to upgrade existing facilities or increase amenities or services shall be an allowable operating expense only if documented and only if the park owner has:

a. Consulted with the park residents prior to initiating construction of the improvements regarding the nature and purpose of the improvements and the estimated cost of the improvements.

b. Obtained the prior written consent of at least one adult resident from a majority of the manufactured home rental spaces to include the cost of the improvement as an operating expense. Evidence of such consent must be presented at the time of filing the application seeking to include such capital improvement expenditure as an operating expense.

10. Involuntary Refinancing of Mortgage or Debt Principal. A park owner may, under the provisions of this subsection, be able to include certain debt service costs as an operating expense. Such costs are limited to increases in interest payments from those interest payments made during the base year which result from one of the following situations or the equivalent thereof: (a) Refinancing of the outstanding principal owed for the acquisition of a park where such refinancing is mandated by the terms of a financing transaction entered into on or before the space rent ceiling, e.g., termination of a loan with a balloon payment; or (b) increased interest costs incurred as a result of a variable interest rate loan used to finance the acquisition of the park and entered into on or before the space rent ceiling.

In refinancing, increased interest shall be permitted to be considered as an operating expense only where the park owner can show that the terms of the refinancing were reasonable and consistent with prudent business practices under the circumstances.

11. Increases in Rental Payments Made on Leases of Land Entered Into On or Before the Space Rent Ceiling. A park owner may, on such terms and conditions as the Commission deems reasonable, include as expenses that portion of the increase in rental payments made by the park owner on a lease of the land occupied by all or a portion of park where such lease was entered into on or before the space rent ceiling, as follows: The park owner may include as expenses an amount not to exceed the increase in such land; lease rental payments occurring since the previous commission-approved rental adjustment for the park when said increase in land lease rental payments is the result of inflation or the increase in the space rental income.

Such increased land lease rental obligations shall be permitted to be considered as an operating expense only where the park owner can show that the terms of the lease are reasonable and consistent with prudent business practices under the circumstances.

B. Operating expenses shall not include the following:

1. All debt service expenses and rental payments made on leases of land, except as provided above;

2. Depreciation;

3. Any expense for which the park owner is reimbursed;

4. Attorney's fees and costs incurred in proceedings before the Commission, or in connection with legal proceedings against the Commission or challenging this chapter; and

5. Any late charges incurred by the park owner for failure to pay any registration fee to the City authorized by this chapter.

C. All Operating Expenses Must Be Reasonable. Whenever a particular expense exceeds the normal industry or other comparable standard, the park owner shall bear the burden of proving the reasonableness of the expense. To the extent that the Commission finds any such expense to be unreasonable, the Commission shall adjust the expense to reflect the normal industry or other comparable standard.

(Prior code § 16B-13)

A. Initiation.

1. In order to initiate an annual permissive or NOI space rent ceiling adjustment, as provided in Section 5.36.080(C), a pass-through adjustment, as provided in Section 5.36.080(D), or a special adjustment, as provided in Section 5.36.090(D), a manufactured home park owner must submit an application for such an adjustment to the secretary of the Commission. The application shall be submitted at such time and in such form and with such supporting data as may be required by the Commission. Permissive and NOI applications shall not be considered complete until the CPI figures required to calculate the adjustment are available from the Bureau of Labor Statistics.

2. NOI and special adjustment applications shall be accompanied by an affidavit from the park owner or designee declaring that copies of the application have either been personally served on each manufactured home resident (service on one adult member of a manufactured home household shall constitute service on each adult member thereof) or mailed first class postage prepaid to each manufactured home residence within the park.

3. The NOI or special adjustment application shall be accompanied with two sets of four-by-ten envelopes with first class postage affixed and pre-addressed to each manufactured home residence in the park.

4. The secretary to the Commission shall not accept an NOI or special adjustment application for filing unless it is accompanied by both the affidavit of service or mailing and the required envelopes.

B. Park Inspections and Hearings on Applications for Adjustment.

1. Upon receipt of a complete application for a permissive, NOI, pass-through, or special adjustment, the Commission or staff shall order an inspection of the park by the City of Woodland Community Development Department to determine the park's compliance with health and safety standards within the enforcement jurisdiction of the City of Woodland, zoning ordinances, and land use permits.

2. If, after inspection of the park it is determined that the park complies with all applicable health and safety requirements, zoning provisions, and land use permits, and the park owner is otherwise entitled to a permissive or pass-through adjustment, as provided in this chapter, the Commission shall authorize a permissive or pass-through adjustment as requested in the application or as determined appropriate by the Commission. The Commission shall notify the park owner by first class mail of such determination.

3. If after the investigation it is determined that the park owner is not in compliance with health and safety standards within the enforcement jurisdiction of the City of Woodland, zoning ordinances, and land use permits, the Commission shall notify the park owner of any and all conditions found at the park that are not in compliance with such requirements. If the Commission determines that the park owner is otherwise entitled to a permissive or pass-through adjustment as provided in this chapter, the Commission shall grant the adjustment to be effective only upon the parks providing satisfactory evidence as required by the Commission, that all unsatisfactory conditions in the park have been remedied.

C. Hearings on Application for NOI or Special Adjustment.

1. Upon receipt of a complete application, including the health and safety inspection, for an NOI adjustment, or a special adjustment under Section 5.36.090(D), the Commission shall conduct a hearing to act upon the application in accordance with the provisions of this chapter.

2. The secretary shall notify the park owner, or other person designated on the park's registration, and the park residents of the time, date and place of the hearing. Such notice shall be mailed at least 15 days prior to the scheduled hearing date.

D. Conduct of hearings.

1. All hearings before the Commission shall be open to the public.

2. A scheduled hearing may be continued for a reasonable period of time as determined by the Commission upon stipulation of the parties thereto or upon a finding of good cause for such continuance made by the Commission.

3. The time allotted for any hearing may be reasonably limited by the Commission. The Commission may also reasonably restrict the time allotted to any party or other witness to present evidence or testimony.

4. At the hearing the Commission shall hear all offered testimony and receive all offered documentary evidence relevant to the application.

5. Any party to a hearing may have assistance in presenting evidence and testimony and developing their position from attorneys, experts or such other persons as may be designated by such party.

6. In addition to any testimony and evidence offered at the hearing by any of the parties, the Commission may consider any other relevant evidence, as determined by the Commission.

7. At the fair return review hearing, the Commission shall consider all relevant, available evidence, including, but not limited to:

a. Changes in the Consumer Price Index;

b. Rent for comparable mobile home spaces in the City of Woodland;

c. The length of time since the last rent increase or rent adjustment;

d. Capital improvements made to the park and the costs for such improvements;

e. Changes in property taxes or other assessed taxes to the park;

f. Rent paid by park owner/applicant for leased land;

g. Changes in utility charges or rates;

h. Changes in reasonable operating and maintenance expenses;

i. The need for repairs caused by circumstances other than ordinary wear and tear;

j. The amount and quality of services and amenities provided by the park owner applicant to the residents of the park;

k. The park owner/applicant's investment, additional investments, appreciation, depreciation, and possible tax benefits; and

l. Any particular hardship circumstances of the park owner/applicant or the residents.

E. Determination of allowable adjustment by the Commission.

1. The Commission shall render its written findings and decision on the application within such time period as provided by this chapter.

2. The Commission shall grant such space rent ceiling adjustment as it determines, in its sole discretion, is appropriate based upon its findings.

3. Any space rent ceiling adjustment granted by the Commission shall become effective in accordance with the provisions of this chapter.

4. No NOI or spectral adjustment shall become effective until the park has passed the health and safety inspection provided in subsection (B)(1).

F. Hearing Fees.

1. The City Council shall set appropriate hearings fees by resolution.

2. There shall be no required fee for an annual permissive adjustment or pass-through application.

3. A park owner submitting an application for an NOI adjustment or a special adjustment shall submit with the application a hearing fee as determined by resolution of the City Council. The application shall not be complete unless and until such fee is received by the Commission secretary.

In the event the park owner is granted the NOI adjustment requested in the application, or in the event the park owner is granted any special adjustment at the fair return hearings, the park owner shall be entitled to pass through the hearing fee to the residents of the park along with the adjustment granted, only to the extent, if any, such pass-through is included in the decision of the Commission.

G. Uniform Application Procedure.

1. Beginning January 1, 2003, all applications for annual permissive or NOI adjustments shall be received by the Commission secretary on or before March 1st of each year.

2. Applications that are complete on or before March 15th shall be set for hearing and heard by the Commission no later than April 30th in the year the application is submitted. The decision of the Commission with respect to any such application shall be issued no later than April 30th of that year, and the effective date of any allowable increase shall be no earlier than July 1st of the year.

3. An application shall be deemed complete when: (a) the park is current in all registration and registration fee requirements; (b) the completed application has been submitted to the Commission; (c) all supporting material, as required by the Commission, has been received by the Commission; and (d) the Commission has received the required hearing fee, if applicable.

4. If the application is not complete on March 15th, the hearing may be delayed until 30 days after the application is complete. In such instances any rent increase shall be effective 60 days after any adjustment is granted by the Commission.

5. Applications for a special adjustment pursuant to Section 5.36.090(D) may be submitted at any time. A hearing on the application for special adjustment shall be held within 60 days from the date the completed application is received by the Commission, and the decision of the Commission issued no later than 90 days from such date. The effective date of any allowable adjustment shall be no earlier than 60 days from the date the special adjustment is granted.

H. Miscellaneous Additional Provisions.

1. No NOI or special adjustment shall be granted unless supported by the preponderance of the evidence submitted at the hearing.

2. The Commission shall render its written findings and decision on the application within 14 calendar days from the date of the close of the hearing or as otherwise provided in this chapter. The secretary shall send a copy of the Commission's findings and decision to the park owner or other person designated on the park's registration and to such residents as may request such findings and decision.

3. Pursuant to its findings, the Commission shall grant such space rent ceiling adjustment as is justified thereby. The decision of the Commission shall be final.

4. Any space rent adjustment granted by the Commission shall become effective immediately unless otherwise specified by the Commission or provision of this chapter.

(Prior code § 16B-14)

A. Refusal of Manufactured Home Resident to Pay Space Rent. A manufactured home resident may refuse to pay any space rent which is in violation of this chapter. Such a violation shall be a defense in any action brought to recover possession of manufactured home space or to collect the illegally charged space rent.

B. Restraining or Enjoining Violations. The City of Woodland, manufactured home residents thereof, or manufactured home park owners therefor, may seek relief from the appropriate court to restrain or enjoin any violation of this chapter or the rules and regulations or decisions of the Commission.

C. Suspension of Provisions.

1. The provisions of this chapter shall remain in full force and effect unless and until the space vacancy rate of all manufactured home parks regulated hereunder, except as provided below, exceeds five percent. The space vacancy rate shall be calculated by dividing the total number of rental spaces in the applicable parks into the total number of such spaces, which are not occupied by manufactured homes. Parks which have not been in operation for more than two years from the date of occupancy of the first manufactured home, not including manufactured homes occupied by park owners or employees thereof, shall not be included in the vacancy calculation.

2. Upon recognition by the City Council by resolution that the vacancy rate exceeds five percent, the provisions of this chapter shall be suspended. The provisions shall be automatically re-instituted upon the adoption of a resolution by the City Council declaring the vacancy rate to be five percent or less.

D. Civil Code Section 798.17 Exemption.

1. Rental agreements between a park owner and resident, which meet the criteria of Civil Code Section 798.17, are exempt from the rental rate restrictions of this chapter.

2. For all such rental agreements which expire, the last monthly rental rate charged under the rental agreement shall be the space rent ceiling used to calculate the annual adjustment for that space.

3. Any other provision or agreement, whether oral or written, in or pertaining to a rental agreement whereby any provision of this chapter or decision or regulation of the Commission for the benefit of a resident is waived shall be deemed to be against public policy and shall be void.

E. Severability. If any provision or clause of this chapter or the application thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other chapter provisions or clauses or applications thereof, which can be implemented without the invalid provision or clause or application; and to this end the provision and clauses of this chapter are declared to be severable.

F. Subpoenas. The City Council may issue subpoenas requiring the attendance of witnesses and/or the production of books or other documents necessary for evidence of testimony in any action or proceeding before the Commission upon request by the Commission. Said subpoenas shall be signed by the Mayor or designated substitute and attested by the City Clerk. Failure to comply with such a subpoena shall result in contempt proceedings under Government Code Sections 37106 through 37109.

G. Violation of Chapter Prohibited. No person, as defined in Section 1.04.020 of this code, shall own, operate or manage any manufactured home park, as defined in Section 5.36.020, in violation of any provision of this chapter. Violation of any provision of this chapter shall constitute a misdemeanor punishable as provided in this code.

H. Anti-Discrimination Clause. It is unlawful for a mobile home park owner, or any agent or representative of the owner, to discriminate against any tenant because of the tenants exercise of any rights under this chapter. It is also unlawful for any mobile home park owner, or any agent or representative of the owner, to discriminate against any purchaser or prospective purchaser of a mobile home because of the purchasers or prospective purchasers choice to enter into a rental agreement subject to the provisions of this chapter.

I. Remedies. All remedies set forth in this chapter shall be cumulative and nonexclusive.

J. Repeal. Notwithstanding the provisions of subsection C of this section, the City Council may, without voter approval, repeal this entire chapter by a majority vote of its members upon a finding that less than 50 manufactured home park spaces within the City of Woodland are subject to the space rent ceiling.

(Prior code § 16B-15)