Loading...
HomeMy WebLinkAboutR-6400 Calling a Special Election on Tuesday June 7, 1988 to Vote Upon Proposed Ordinance Concerning Mobilehome Rent Regulationsi o RESOLUTION NO. 6400 (1988 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO CALLING A SPECIAL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON TUESDAY, JUNE 7, 1988, AND TO BE CONSOLIDATED WITH THE STATE -WIDE PRIMARY ELECTION TO BE HELD ON SAID DATE FOR THE PURPOSE OF VOTING UPON PROPOSED ORDINANCE CONCERNING MOBILEHOME RENT REGULATIONS WHEREAS, the Charter of the City of San Luis Obispo and state law provide for the City Council to place an ordinance before the voters for consideration; and WHEREAS, the City Council desires to submit to the voters at the election a question relating to mobilehome rent regulations. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. There is hereby called and ordered in the City of San Luis Obispo, State of California, on Tuesday, June 7, 1988, a Special Municipal Election of the qualified electors of the city, to be consolidated with the Statewide Primary Election, to vote upon an ordinance to establish mobilehome rent regulations. SECTION 2. That the City Council pursuant to its right and authority does order submitted to the voters at the Special Municipal Election the following question: CITY MEASURE "D" Shall the Mobilehome Ad Hoc Committee's YES 0, recommended ordinance establishing NO Q" Mobilehome Rent Regulations be adopted? SECTION 3. That the proposed measure submitted to the voters is as follows: "BE IT ORDAINED by the People of the City of San Luis Obispo as follows: R6400 C Resolution No. 6400 (1988 Series) Page 2 SECTION 4. The Proposition shall pass only if a majority of the votes cast by voters for the proposed ordinance are "YES votes. SECTION 5. That the City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 6. That the polls for the election shall be open at seven o'clock a.m. of the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, except as provided in Section 14301 of the Elections Code of the State of California. SECTION 7. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for provided by law for holding municipal elections. SECTION 8. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 9. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion of Councilman Settle , seconded by Councilwoman Pinard , and on the following roll call vote: Resolution No. 6400 (1988 Series) m Page 3 AYES: Councilmembers Settle, Pinard, Rappa, Reiss and Mayor Dunin NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 23rd day of February, 1988. ATTEST: V CITY CLERK PAM VIDES s s s s APPROVED: City A ministrative Officer City —At rney CitV Clerk Z?a /d 4e �� C, o January 28, 1988 Chapter 5.44 MOBILE HOME PARK RENT STABILIZATION Sections: 5.44.010 Purpose and intent. 5.44.020 Definitions. 5.44.030 Exemptions. 5.44.040 (Repealed.) 5.44.050 City Council -- Powers and duties. 5.44.060 Base space rent -- Determination -- Allowable increases without hearing 5.44.070 Application for rent adjustment-- Fee== Contents-- Notice of request -- Hearing.. 5.44.080 Application for rent adjustment -- Conduct of hearing. 5.44.090 Application for rent adjustment-- Evaluation -- Relevant factors. 5.44.100_ Application for rent adjustment -- Hearing- - Determina - tion. 5.44.110 Application for rent increase -- Hearing -- Appeal. 5.44.120 Rent increases not made in conformity with provisions -- Tenant's right to refuse to pay. 5.44.130 Actions brought to recover possession of mobile home space -- Retaliatory eviction grounds for denial. 5.44.140 Owner to provide tenants with copy of this chapter. 5.44.141 Amendment. 5.44.142 Severability. 5.44.010 Purpose and intent. A. There is presently within the city and the surrounding areas a shortage of spaces for the location of mobile homes. Because of this shortage, there is a very low vacancy rate, and rents have been for several years, and are presently, rising rapidly and causing concern among a substantial number of San Luis Obispo residents. 0 0 B. Mobile home tenants, forced by the lack of suitable alternative housing, have had to pay the rent increases and thereby suffer a further reduction in their standard of living. C. Because of the high cost and impracticability 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 homesites for mobile home residents, and the substantial investment of mobile home owners in such homes, this council. finds and declares it necessary to protect the owners and occupiers of mobile homes from unreasonable rent increases, while at the same time recognizing the need of park owners to receive a suitable profit on their property with rental income sufficient to cover increases in costs of repair, maintenance, insurance, utilities, employee services, additional amenities, and other costs of operation, and to receive a fair return on their property. D. This council finds that the present low vacancy rate and frequent rent increases are particularly hard upon and unfair to residents of mobile home parks within the city. Large numbers of these residents are senior citizens and others on fixed incomes -.who installed their mobile homes in the city when the present inflationary rent increases could not reasonably have been foreseen. E. However, this council recognizes that a rent stabilization ordinance must be fair and equitable for all parties and must provide appropriate incentives for mobile home park operators to continue their parks profitably, as well as to attract additional investors for new parks. (Ord. 923 §1 (part), 1982: prior code §4800) 5.44.020 Definitions For the purpose of this chapter, certain words and phrases used herein are defined as follows: A. "Capital improvements" means those improvements, not previously located in the mobile home park, that materially add to the value of the property and appreciably prolong its useful life or adapt it to new uses, and which may -be amortized over the useful life of the improvement in accordance with the Internal Revenue Code and regulations issued pursuant thereto; 2 0 0 provided, that this definition shall be limited to capital improvements approved by more than fifty percent of the tenants in the affected park. B. "Mobile home park" means an area of land which rents spaces for mobile home dwelling units. C. "Mobile home park owner" or "owner" means the owner, lessor, operator or manager of a mobile home park. D. (Repealed) D. "Mobile home tenant" or "tenant" means any person entitled to occupy a mobile home within a mobile home park pursuant to ownership of the mobile home or under a rental or lease agreement with the .owner of the mobile home. E. "Rehabilitation work" means any renovation or repair work completed on or in a mobile home park performed in order to comply with the direction or order of a public agency or public utility, or to maintain existing improvements in a safe and usable condition, or to repair damage resulting from fire, earthquake or other casualty. F. "Space rent" means the consideration, including any security deposits, bonuses, benefits or gratuities, demanded or received in connection with the use and. occupancy of a mobile home space in a mobile home park, or for housing services provided, but exclusive of any amount paid for the use of a mobile home dwelling unit. (Ord. 923 §1 (part), 1982: prior code §4801) G. "Change of ownership" means the sale, rental transfer, or exchange of a mobile home subject to the provisions of this chapter excepting the transfer to tenant's spouse by gift, bequest or devise. H. "Hearing Officer" means the duly appointed hearing officer selected from a panel of qualified hearing officers. A hearing officer shall have no financial interest in either a mobile home park or a mobile home nor have been a resident of nor reside in a mobile home park. I. "Appellate Panel" means a panel of three qualified hearing officers. A panelist shall have no financial interest in either a mobile home park or a mobile home nor have been a resident of nor reside in a mobile home park. 3 O • J. "CPI" shall be'the Consumer Price Index (1967 =100) All Items,, All Urban Consumers, for the Los Angeles /Long Beach /Riverside standard metropolitan statistical area published by the Bureau of Labor Statistics, United States Department of Labor. If the CPI is not hereafter published, then any substitute index, or, if none, then the index most closely resembling the CPI shall become the new CPI. R. "Qualified Hearing Officer ". The City Administrative Officer shall maintain a list of available qualified. hearing officers. Qualified hearing officers shall be persons experienced in financial and accounting methods with knowledge of mediation process and rules of evidence. 5.44.030 Exemptions.. The provisions of this chapter shall not apply to the following tenancies in mobile home parks- A. Mobile home park spaces rented for nonresidential uses; B. Mobile home parks managed or operated by the United States Government, the state of California, or _.the county of San Luis Obispo; C. Tenancies which do not exceed an occupancy of twenty days and which do not contemplate an occupancy of.more than twenty days. D. Tenancies for which any federal or state law or regulation specifically prohibits rent regulation; E. Tenancies covered by leases or contracts which provide for a tenancy of more than a year, but only for the duration of such. lease or contract. Upon the expiration of or other termination of any such lease or contract, this chapter shall immediately be applicable to the tenancy. No rent increases other than that allowed under the provisions of the lease, .shall be allowed during the duration of such a lease or contract. F. Spaces in a mobile home park 66.67% of said spaces are governed initial term of more than one year. G. Mobile home parks which sell built or manufactured housing, 4 in which at least by a lease with an lots for factory - or which provide c l o. condominium ownership of such lots, even if one or more homes in the development are rented or leased out. (Ord. 923 §1 (part), 1982: prior code §4802) 5.44.040 (Repealed) 5.44.050 City Council -- Powers and duties. Within the limitations provided by law and in addition to any other powers and duties the Council has, the City Council shall have the following powers and duties: A. To meet from time to time as required to receive, investigate, hold hearings on, and pass upon the issues relating to mobile home park rent stabilization as set forth in this chapter; B. To direct staff to make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary for Council to carry out its duties; C. To adopt, promulgate, amend and rescind administrative rules, as it deems appropriate to effectuate the purposes and policies of this chapter. (Ord. 923 §1 (Part 1952: prior code §4804) 5.44.060 Base space rent - - -- Allowable increases without hearing. A. The "base space rent" for purposes of this chapter shall be the monthly space rent charged as of March 15, 1982 plus any increases otherwise allowed, pursuant to this Chapter. The maximum monthly space rent for any space under a lease, upon expiration of the lease shall be no more than the •rent charged in the last month 'of said lease. In parks where there is an exemption because 66.67% of the spaces are governed by a lease with an initial term of .more, than one year, then the maximum monthly space rent shall be the space rent designated in leases for comparable spaces. A schedule of current rents in the park shall be posted in a conspicuous place in the park. B. Except as otherwise provided in this chapter, the maximum monthly space rent may be increased no more than once a year based on the percentage change in the 5 C� O CPI, or 9 %, whichever is less, calculated as follows: 1. The maximum monthly space rent may be increased at a rate equal to 100 percent (100 %) of the CPI up to 5 percent (5 %) and 75 percent (75 %) of the CPI in excess of 5 percent (5 %) calculated as follows: .a. The change in space rent shall be calculated by dividing the ending CPI index by the beginning CPI index. .b. If the resulting quotient is less than 1.05, then it shall be multiplied by the space rent. The resulting product shall be the new space rent. .c. If the resulting quotient is greater than 1.05, then the difference between the resulting product and 1.05 shall be multiplied by 75 percent. The resulting product shall be multiplied by the space rent and that product shall be added to the sum derived from 5.44.060 B.2 above. The sum shall be the new space rent. .d. The beginning CPI index shall be the index for the month used as the ending index for the last CPI adjustment. .e. The ending CPI index shall be the index •f or the month twelve months after the beginning index. 2. Each month the City Administrative Officer shall publish the percentage change of the CPI allowed "under this Section B for the 12 -month period immediately preceding the month for which CPI information has been most recently published. 3. It is the intention of this paragraph 5.44.060 B to allow for automatic increases in space rent based on changes in the cost of living as measured by the CPI. The limitations on such increases are intended to minimize the immediate impact drastic changes in the CPI might have on residents. The limitations are not intended to prevent ultimate adjustments to allow owners to receive a fair return on their property. C. The maximum monthly space rent of a tenant may be increased by the owner when there is a change of ownership affecting a mobile .home. However, such increase shall not exceed 10% of the then existing space rent and may not be relied upon any more often n C, 0 than once in any 36- month period as the basis to increase rent. In the event of change of ownership resulting from subletting of the mobilehome space as may be allowed by State law, should such become State law, then upon any such subletting then the space rent may be increased up to 10% of the thhen- existing space rent. In the event of change of ownership resulting from vacation of the space, then the space rent may be adjusted to fair market rent in the community. D. No owner shall either (1) demand, accept or retain a rent of or from a tenant in excess of the maximum rent permitted by this chapter, or (2) effect a prohibited rent increase by a reduction of general park facilities and services. However, an owner may modify the nature of park services if reasonable allowance is provided to the tenant. For example, if the owner elects to submeter water so that tenants pay for water consumed by them, then tenants shall receive a reasonable reduction from their base space rent. (Ord. 1079 §1, 1986; Ord. 1020 §l, 1984: Ord. 923 §1 (part), 1982.: prior code §4805) E. Space rent may be automatically adjusted based on increases in expenses for common area utilities; new government mandated services; garbage service and cable television, where applicable. The space rent may be adjusted by dividing the total increase in any such expenses incurred during a twelve -month period by twelve, less the percentage in the CPI index for the twelve -month period. The quotient shall be allocated to the space rent for each space in the park based on the amount the space rent relates to total space rent for the park. Notice of the .increase shall be in writing and shall be given as required by law no less than 60 days prior to any such increase being effective. The notice shall state the amount of the rent increase, the new space rent, the amount of the total increase in expenses and the nature of the expense. A copy of the notice shall be given to the City Administrative Officer. The City Administrative Officer shall have the authority to resolve questions regarding computation of the space rent increase based on this section. There shall only be one such increase in any twelve -month period. 5.44.070 Application for rent adjustment-- Fee -- Contents -- Notice of request -- Hearing. A. Except for automatic increases in base rent allowed under Section 5.44.060, an owner or tenant may file with the City Clerk an application for a rent 7 C • adjustment ( "application "). The application shall state the amount of the adjustment for each space affected and the reasons for the adjustment. 1. An application shall be accompanied by the payment of a fee as may be established from time to time by the council. 2. An application filed by an owner shall be accompanied by a statement stating that the tenant for each space affected has been served either personally or by mail with a notice describing the application and the change in rent or services. 3. An application filed by a tenant shall be accompanied with a statement stating that the owner has been either personally or by mail served with the application and with a statement designating not more than three persons to act as representatives for the spaces affected and containing the names and addresses of tenants representing no less than 51% of the spaces affected by the application and supporting the application and established by a secret election. 4. A statement shall accompany the application and shall notify the receiving party_ that he /she has 36 days to file an objection and if one is not filed within the time allowed, then the application will be automatically granted. B. An objection to the application may be filed with the City Clerk within 30 days after the notice of application has been served. The objection shall identify the portions of the application objected to and shall state the grounds of the objection. 1. A copy of an objection filed by an owner shall be mailed to each of the designated tenant representatives. 2. A copy of an objection filed by a tenant shall be mailed to the owner. The tenant's objection shall designate not more than three persons to act As representatives for the objecting tenants. The objection must be accompanied by a statement containing the names and addresses of tenants representing no less than 51% of the spaces affected by the owners application and verifying that they object to the application, established by secret ballot election. 8 0 0 C. If no objection is filed to an application within the time allowed, or if less than 51% of the tenants support an objection to an application, then the application will be automatically granted. D. If an objection is filed within the time provided, then the owner and the tenant representatives shall meet and confer to negotiate in.good faith an agreement regarding the application. Either party may request a mediator of their choice to assist in the negotiations, but this is not required. If an agreement is reached within 60 days, then the tenant representatives shall notify all tenants affected by the agreement. The tenants shall have 10 days to approve or disapprove of the agreement. If tenants representing a majority of the spaces affected fail to disapprove of the agreement then the agreement shall be binding on the owner and all tenants affected. The City Clerk shall be notified that an agreement has been reached. The statements made in negotiations and any agreements reached but not approved shall not be admissible in any subsequent hearings regarding the application. E. If the owner and the tenant representatives fail to reach an agreement within the time provided or if a majority of the tenants disapprove of an agreement reached, then the applicant shall within 10 days notify the City Administrative Officer that an agreement has not been reached. The City Administrative Officer shall obtain a list of no less than five (5) qualified hearing officers. Owners and tenants may each delete one person from the list of qualified hearing officers within seven (7) days and one of the remaining persons shall be selected by the City Administrative Officer as the hearing officer. Appointment of the hearing officer shall be completed no later than twenty -one days after filing of the notice that an agreement has not been reached. F. The hearing officer shall set a hearing on the application complying with the requirements of this section no less than ten days and no more than thirty days after his appointment. The hearing officer shall notify the owner and tenants, in.writing, of the time, place and date set for the hearing. No hearing or any part hereof may be continued beyond thirty days after the initial hearing date, without the applicant's consent. If the hearing officer approves an application as requested or as modified, the same shall A N take effect as noticed by the owner or as the hearing officer may otherwise direct. (Ord. 1077 §2, 1986; Ord. 923 §l (part), 1982: prior code §4806) 5.44.080 Application for rent adjustment -- Conduct of hearing. A. All review hearings conducted by, the hearing officer shall be conducted in accordance with the Ralph M. Brown Act, at Section 54950 et seq, of the California Government Code and according to the rules of the American Arbitration Association. B. All interested parties to a hearing may have assistance from an attorney or such other personas may be designated by the parties in presenting evidence or in setting forth by argument their position. All witnesses shall be sworn in and all testimony shall be under penalty of perjury. C. In the event that either the owner or the tenant(s) should fail to appear at the hearing at the specified time and place, the hearing officer may hear and review such evidence as may be presented and make such decisions as if all parties had been present. D. Owner and affected tenants may offer any testimony, documents, written declarations or other relevant evidence. E. Formal rules of evidence shall not apply. F. Minutes shall be taken at all hearings. (Ord. 923 §1 (part), 1982: prior code §4807) 5.44.090 Application for rent adjustment-- Evaluation -- Relevant factors. In evaluating the application the hearing officer may consider, along with all other factors it considers relevant, changes in costs to the owner attributable to increases or decreases in master land and /or facilities lease rent, utility rates, property taxes, insurance, advertising, variable mortgage interest rates, employee costs, normal repair and maintenance, and other considerations, including, but not limited to, rehabilitation work, capital improvements, upgrading and addition of amenities or services, net operating income, and the level of rent necessary to permit a just and reasonable return on the owner's property. 10 C 0 (Ord..923 §1 (part), 1982: prior code § 4808) A. In applying the foregoing factors, the hearing officer shall utilize the maintenance of net operating income (MNOI) formula. Under the MNOI allowable gross .rents are calculated as follows: All operating expenses for the twelve -month period ending December 31, 1981 are subtracted from all operating expenses for the twelve -month period immediately preceding the date of the application for which expense data is available. In the event operating expenses are not available for the period ending December 31, 1981, then expenses for a twelve -month period reasonably close to December 31, 1981 may substituted. The difference shall be added to gross annual rent based on rental rates in effect on March 15, 1982. The sum shall.be the allowable gross annual space rent. The allowable gross space rent shall be fairly apportioned between all spaces in the park. The space rent determined under the MNOI formula shall be adjusted as follows: 1. There shall be an adjustment to allow for inflation calculated as follows. The net operating income (NOI) for the base period shall be calculated by subtracting the park's operating expenses for the twelve -month period ending December 31, 1982, from the park's annual gross space rent based on the space rent in effect• on March 15, 1982. The CPI index for the month most I ecently available prior to filing the application- shall be divided by the CPI index for March, 1982. The resulting quotient shall be multiplied by the base period NOI. This shall be the adjusted NOI. The operating expenses for the twelve - month period immediately preceding the date of the application for which information is available shall be added to the adjusted NOI. The sum shall be the inflation adjusted gross space rent. The allowable space rent shall be the greater of the space rent calculated using the MNOI formula and the space rent adjusted for inflation. 2. In calculating MNOI there shall be an adjustment to the gross space rent in effect on March 15, 1982, if the hearing officer determines that the gross space rent in effect on that date did not allow the owner to receive a just and reasonable return on his property. 3. If the hearing officer concludes that the MNOI formula, and the adjustments thereto, does not provide a just and reasonable return to the owner, 11 C� then the hearing officer may apply any reasonable formula, including a return on investment, a return on fair market value, or return on equity, to determine a space rent which will allow the owner to receive a fair and reasonable return on his property. B. The hearing officer shall not consider income arising from spaces leased in the park pursuant to 5.44.030(E) of this chapter. Likewise, the hearing officer shall not consider a pro rata portion of the expenses of park operation attributable to the leased spaces. 5.44.100 Application for rent adjustment-- Hearing -- Determination. A. The hearing officer shall make a final decision no later than twenty days after the conclusion of its hearing. The hearing officer's decision shall be based on the preponderance of the evidence submitted at the hearing. The decision shall be based on findings. All parties to the hearing shall be advised by mail of the hearing officer's decision and findings. B. Pursuant to its findings, the hearing officer may: 1. Permit the requested adjustment to become effective, in whole or in part; or 2. Deny the requested adjustment; or 3. Permit or deny, in whole or in part, requested reductions of, or charges for, facilities or services. C. Any decision of the hearing officer shall be final unless, within fifteen days after mailing of the decision and findings the owner or any affected tenant appeals the decision. (Ord. 923 §1 (part), 1982; prior code §4809) D. The hearing officer's charges shall be paid by the r;tv 5.44.110 Application for rent adjustment -- Appeal -- Hearing. A. Any appeal from a decision of the hearing officer shall be filed with the City Clerk. The appellant shall also mail a copy of the appeal to the responding party. The appeal shall state the grounds on which it is based. An appeal filed by a tenant shall be accompanied by a statement containing the names and 12 addresses of the tenants supporting the appeal. The appeal must be supported by at least 51 percent of the tenants affected by the appeal. B. Upon filing of a valid appeal, the City Administrative Officer shall obtain a list of no less than seven (7) qualified hearing officers. The hearing officer who previously acted shall not qualify, Owners and tenant representatives may each delete one person from the list of qualified hearing officers within seven days, and three of the remaining persons shall be selected by.the City Administrative Officer as the Appellate Panel. Appointment of the Appellate Panel shall be completed no later than twenty -one (21) days after filing the appeal. C. At the time set for consideration of the appeal the Appellate Panel shall review and consider the record of the hearing officer's hearing as well as the decision and finding of the hearing officer. After review and consideration the Appellate Panel may either (1) determine that a further hearing shall be held, or (2) ratify and adopt the decision and findings of the hearing officer. If a further hearing is conducted, the Appellate Panel may upon conclusion of that hearing and in no event more than thirty days thereafter, modify or reverse the decision of the hearing officer, only if the Appellate Panel finds that there has been an abuse of discretion or that there is no substantial evidence to support the hearing officer's decision. (Ord. 923 §1 (part), 1982: prior code §4810) The Appellate Panel's decision shall be final and no appeal may be taken to Council. D. If the party filing the appeal is unsuccessful, then that party shall pay the Appellate Panel's charges. If the responding party is unsuccessful, then both parties and the City shall share equally in payment of the Appellate Panel's charges.. 13 G 5.44.120 Rent increases not made in conformity with provisions -- Tenant's right to refuse to pay. A tenant may refuse to pay any increase in rent not made in conformity with this chapter. Such refusal to pay shall be a defense in any action brought to recover possession of a mobile home space or to collect the rent increase. (Ord. 92.3 61 (part), 1982: prior code §4811) 5.44.130 Actions brought to recover possession of mobile home space -- Retaliatory eviction grounds for denial. Notwithstanding Section 5.44.120, in any action brought to recover possession of a mobile home space, the court may consider as grounds for denial any violation.of any provision of this chapter. Further, the determination that the action was brought in retaliation for the exercise of any rights conferred by this chapter shall be grounds for denial. (Ord. 92.3 §1 (part), 1982: prior code 64812) 5.44.140 Owner to provide tenants with copy of this chapter. Any tenant offered a lease or contract which if accepted and fully executed would be exempt from the provisions of this chapter (Section 5.44.030E) shall'at the time of the offer also be provided with a copy of this chapter. (Ord. 923 §1 (part), 1982: prior code. §4813) 5.44.141 Amendment The provisions of this Chapter 5.44 may be amended by a majority vote of the City Council. 5.44.142 Severability If any portion of this Chapter is then that shall in no way affect remaining portions of this Chapter. ord \mobile.rin (01/28/88) 14 found to be invalid, the validity of the