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HomeMy WebLinkAboutR-6392 Calling a Special Election to be Held June 7, 1988, Consolidated with the State-Wide Primary Election to Vote on Proposed Ordinance - Mobilehome Rent Regulations9 0 RESOLUTION NO. 6392. (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 Shall the proposed initiative ordinance YES establishing new ! mobilehome lent regulations NO Q 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: R 6392 OrdinanC\ 'of the City of San Luis Obisp.A. to establish Mobile Home Rent Stabilization The People of the City of San Luis Obispo do ordain and enact as follows: This Mobile Home Park Rent Stabilization Ordinance rescinds the Mobile Home Park Rent Stabilization Ordinance Chapter 5.44,.00 through 5.44.140 along with amendments for Section 5.44 Subsection 5.44.36 (E), Subsection 5.44.70 (B and C) Subsection 5.44.60 (B. 2), as well any and all City Ordinances which are inconsistent with this initiative Ordinance and replaces it with the followings Sections: 1. Purpose and intent 2. Definitions 3. Exemptions 4. Hearing Officer - Established '•5. Duties of Hearing Officer 6. Allowable increases - Allowable decreases - base space rent - determination of current rent 7. Application for "rent increase - descrease - fee - contents - notice of request - hearing 8. Conduct of hearing - Application for rent increase - decrease 9. Evaluation- Relevant factors - Application for rent increase - decrease 10. Hearing - determination - Application for rent increase - decrease 11. Application for rent increase - decrease - hearing - appleal 12.. Rent increases not made in conformity with provisions - homeowners right to refuse to pay 13. Actions brought to recover possession of mobile.home space - Retaliatory eviction grounds for denial 14. Recreational vehicles as residences 15. Civil Remedies 16. Owner to provide homeowners with a copy of this ordinance 17 • Safe Harbor 18. Vacancy decontrol 19. Severability 20. Miscellaneous 210 Majority vote needed to make changes in this ordinance 1. Purpose and Intent A. There is presently, within the City of San Luis Obispo 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, rising rapidly and causing concern among a substantial number of San Luis Obispo residents. B. Mobile home owners, 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 difficulty 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, it is necessary to protect the owners and occupiers of mobile homes from unreasonable rent increases, while at the same time recogniz- ing the need of prudent park owners to receives, suitable return on their investment, with rental income sufficient to cover necessary and reasonable increases, including but not limited to, insurance, employee expenses and additional amenities provided to residents. D. It.has been found low vacancy rates and frequent rent increases are particularly hard on residents of mobile home parks within the City of San Luis Obispo. Large numbers of these residents are senior cit- izens and others on fixed incomes who installed their mobile homes in the'city when inflationary rent increases could not reasonably have been forseen. E. It is recognized that a rent stabilization ordinance should be fair and equitable for all parties. The Consumer Price Index:(C.P.I.) as a guide for a cost -of- living increase is incorporated in this ordin- ance to accomplish that equitability. 20 . Definitions For the purpose of this ordinance, certain_ words and phrases used,herein are defined as follows: A. "City" means the City of San Luis Obispo, California and any of its officers and employees who will be involved in the application or enforce- ment of the provisions of this ordinance. B. "Capital improvements" are.those improvements that materially add to the value of the property and which may be_ amortized over the useful life of the improvement in accordance with the Internal Revenue Code and regula- tions issued thereto; provided that this definition shall be limited to capital improvements either approved by more than 51% of the.tenants in the affected park or constructed to comply with the direction of a public agency.. C. "Mobile home park" means an area of land in which are rented spaces and amenities of the common areas for mobile home dwelling units. D. "Mobile home park owner" or "owner" means: the owner, lessor, operator or manager of a mobile home park. E. "Hearing officer" or "Officer"means an individual appointed by the City to conduct meetings between park owners and homeowners and to perform other related activities. C V. F. "Mobile home owner" or "homeowner" means any person entitled to occupy a mobile home within a mobile home park by ownership of a mobile home or under a rental or lease agreement with the park owner. G. "Maintenance expenses" are those expenses required to suitably repair all facilities, services and amenities which have deteriorated beyond the state of acceptable usage and which are owned solely by the park owner, in compliance with the California Civil Code Provision 798.87 of the Mobilehome Residency Law. H. "Space rent" or "Rent" means the charges.for the mobile home space and all amenities, facilities, utilities, or services that are provided, including use'of the common areas in a mobile home park. I. "Investment" means the actual cost to the park owner excluding the cost to the owner of all borrowed funds or loans for the purchase of the park at the close of escrow. J. "Recreational vehicle" means any recreational vehicle used for residency in a mobile home park longer than nine (9) consecutive months for the, purpose of a residency. 3. Exemptions The provisions of this ordinance shall not apply to the following ten- ancies in mobile home parks: A•. Mobile home park spaces rented solely for nonresidential uses. B. Mobile home parks managed or operated by the U.S. Government, the State of California, the County of San Luis Obispo, or the City of San Luis Obispo. C. Tenancies which do not exceed an occupancy of twenty (20) days and which do not contemplate an occupancy of more than twenty (20) 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 more than a 12 -month tenancy, but only for the duration of such lease or contract. Upon the expiration of or other termination of any such lease or contract, this ordinance shall immediately be applicable to the tenancy. F. Mobile home parks which sell lots for factory -built or manufactued hous- ing. 4. Hearing Officer - .Established A. There is established a qualified Hearing Officer with a background in accounting, to be selected by the City. �i o� B. A Hearing Officer may not be or have been affiliated financially by in- vestment or organizationally for personal gain with the real estate or rental housing industry. Appointee shall not be a mobile home owner or renter in a mobile home park, or have any financial interest (as defined . by State law) in any mobile home or mobile home park. The Hearing Officer shall file a declaration to this effect with the City Clerk in a form approved by the City Attorney. C. The Hearing Officer shall be compensated for his or her time plus re- imbursement for travel and other expenses while on official duty. 5. Duties of the Hearing-Officer A. Shall be directly responsibile for the administration of the Rent Stab- ilization Ordinance subject to reporting and supervision as the City shall direct. B. Determine that a meeting between the park owner and the homeowners has taken place in an effort to come to an agreement before applying to the Hearing Officer for a hearing. C. Obtain and review applications from park owners and homeowners for a - rent increase or rent decrease and ordinance violations: D. Obtain all relevant documents, including Income Tax reports, needed to make findings and conduct an informal hearing. E. Hold hearings with the involved parties to consider the applications and make decisions based on the findings. F. Decisions of the Hearing Officer are appealable to the City Council. Any final decision of the Hearing Officer or the City Council shall be enforced by the city. C. The performance of the Hearing Officer is to be reviewed by the City Council at least every two years. H. All decisions of the Hearing officer shall be in conformity with the .relevant portions of the Civil Code and applicable portions shall be cited in all decisions. 6. Allowable increases - Allowable decreases - base space rent - determi ation of current.rent A. 1. The "base space rent" for purposes of this ordinance shall be the monthly space rent charges as of March 15, 1982. 2. The current rent shall be determined by adding the allowable Con - sumer's Price Index increases each year,.and harship increases as permitted by this ordinance and any preceding ordinance. B. Except as otherwise provided in this ordinance, the maximum monthly. space rent may be increased or decreased no more than.once a year by the lesser of the two following methods: C •� (1) Eight percent (8%) of the ex sting.space rent on (2) Three- fourths (seventy-five percent) (75%) of the cost -of- living increase (Bureau of Labor Statistics, U.S. Cities Nat- tional Consumer.Price Index for the urban consumers), for the e prceding twelve (12) month period ending four (4) months prior to the date of the proposed increase. (3) A. decrease in the existing space rent equal to three - fourths seventy -five percent) (7) of the cost of living decrease Bureau of .Labor Statistics, U.S. Cities National Index for urban consumers), must be given when the Consumers Price Index is reduced. (4) All official Consumer Price Index rent rate increases or de creases are to be issued by the Hearing Officer by September 1. Park owners shall give at least a 60-day notice of the rent in- crease to be effective on January 1. Rent increases cannot be retroactive. C. No owner shall either (l) demand, accept or retain a rent or charge from a homeowner in excess of the maximum rent permitted by this ordinance,- or (2) effect a prohibited rent increase indirectly by a reduction of general park facilities and /or services. D. There shall be no reduction of general park facilities, services, or Amenities except as allowed as a result of a hearing. 7. Application for t increase - decrease - fee - contents - A. A park owner who has been required to make expenditures as defined in 2G or has incurred costs of such amounts that he will be unable to operate the park given the maximum increase permitted in 6B, -if he seeks relief, shall file with the Officer an application for a rent increase, or ap- plication to reduce, or charge for, certain services or facilities, (in either event referred to hereinafter a"& "application" or "application for rent increase "). B. An application for rent increase or decrease pursuant to this section shall be accompanied by the payment of a fee of $125.00 plus $1.00 per mobile home. The application shall specify, the address of the mobile home park, the space number or numbers,. the proprosed effective date and the facts supporting the application. The applicant shall produce at the request of the Officer any records, evidence including but not limited to re- ceipts, reports or Other documents including income tax. returns as needed and that the Officer may deem necessary to make a determination whether to approve the application. C` O. C. The owner shall serve each affected homeowner either personally,,or by mail, with notice of the change in rent, services or facilities request - ed.at the same time the application for approval of same is being filed with the Officer. Proof of such service shall be filed.with the Officer concurrent with the filing of the application. Copies of the applica- tion shall be available free of charge to any affected homeowner request- ing the same at the business office of the park. i D. The Officer shall set a hearing on the application complying with the requirements of'this section no less than ten (10) days and no more than thirty (30) days after receipt of the application and proof of service and the homeowners have been notified,in writing, of the application to the Hearing Officer, The Hearing Officer shall notify the owner and home- owners, in writing, of the time, place and date set for the hearing. No hearing or any part thereof may be continued beyond thirty (30) days after the initial hearing date, without the consent of both parties. If the Hearing Officer approves an application as requested or as mod - ified,.the order or ruling shall take effect sixty (60) days after the Officer's approval and after the homeowners are notified, in writing, by the owner, subject to any requirements by the Hearing Officer. E. An application for a rent decrease by the homeowners shall be accompanied by documentation showing reduced services, facilities or amentities that are no longer available, or anything that caused a reduction in the value of their homes; for example, the deterioration of streets, It shall show the effective date of the decrease in services, amenities or value . of homes. The application will be accompanied by a nominal fee of twenty - five dollars ($25.00). F. The homeowners or homeowner's association shall notify the owner, in writing, at the same time that an application is filed. C. The Hearing Officer shall set a hearing on the application complying with the requirements of this section no less than ten.(10) days and no more than thirty (30) days after receipt of the application and proof that the park owner has,been notified of the application to the Officer. The Officer shall notify both parties, in writing, of the time,.place and date set for the hearing. No hearing or any part thereof may be continued be- yond thirty (30) days after the initial hearing date, without the consent of both parties. If the Hearing Officer approves an application requested or modified,.the same shall take effect retroactive to the date of the loss of facilities, services, amenity or value of homes. 8, Conduct of Hearing - Application for rent increase - decrease A.. All interested pasties to a hearing may be represented by an attorney or such other persons they designate. All witnesses shall be sworn in. B. In the event the park owner or the homeowner(s) shall fail to appear at the hearing at the specified time and place, the Hearing Officer may 0 0. hear and review such. evidence as may be presented and make such decisions as if all parties had been present. C. Parties may offer any testimony, documents, written declarations or other relevant evidence.. D. Minutes shall be taken at all hearings.. Tape recordings shall also be made and shall be held available for transcription when requested by any party. I 9. Relevant_ factors - Application for rent increase - decrease - evaluation In evaluating the application the Hearing Officer shall consider in con- currence with the Mobile Home Residency law, Civil Code Fro. 798.31 which states in part "A homeowner shall not be charged a fee for other than rent, utilities, and incidental reasonable services actually rendered." 10. Hearing - Determination - Application for rent increase - decrease A. The Hearing Officer shall make a final decision no later than twenty (20) days after the conclusion of the hearing. The decision shall be based on the findings of the Hearing Officer. The findings shall be based on the evidence submitted and obtained at the hearing. All parties or their designated representatives shall be advised by mail of the Officer's decision and findings. B. In carrying out the decisions, the Officer mays (1) Permit the requested rent increase or decrease to become effective, in whole or in part; or (2) Deny the requested rent increase or decrease; or (3) Permit or deny, in whole or in part, requested reductions, of or charges for, facilities, services, or amenities. C. Any decision of the Hearing Officer shall be final unless, within fifteen (15) working days after mailing of the findings and decision, the owner or any affected homeowner appeals the decision to the City Council. Any final decision shall be enforceable by the city. li. Application for Rent Increase - Decrease - .Hearing - Appeal A. Any appeal from a decision of the Hearing Officer shall be filed with the City Clerk. The date for consideration of the appeal shall be set by the City Clerk at a date no less than ten (10) days nor more than thirty (30) days after the expiration date for filing of an appeal. Written notice of the date, time and place shall'be given by the City Clerk to the owner and all affected homeowners or their designated representatives. 0 0; B. At the time set for consideration of the appeal, the City Council shall review and consider the record of the hearing, findings and decision of the Hearing Officer. After review and consideration, the Council may either (1.) determine that a further hearing shall be held Within a reasonable time, or (2) ratify and adopt the findings and decision of the Hearing Officer. If a further hearing is conducted, the Council shall u n the conclusion of that hearing,.and in no event more than thirty G) days thereafter, affirm, modify or reverse the decision of the Officer, shall make findings and issue rulings and orders consistent with such findings. 12. Rent increases not made in conformity with provisions - Homeowner's A homeowner may refuse to pay any increase in rent not made in conform- ity with this ordinance. Such refusal to pay the owner shall be a defense in any action brought to recover possession of a mobile home space or to collect the rent increase. The disputed funds shall be put aside to be disbursed when a final decision is made under this Ordinance or other legal procedure. 13. Actions brought to recover possession of mobile home space - Retalia Notwithstanding Section 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 ordinance: Further, the deter. mination that the action was brought in "retaliation for the exercise of any rights conferred by this ordinance shall be grounds for denial. 14. Recreational Vehicles as Residences Recreational vehicles in a mobile home park that are used for a resi- dence nine (9) months or longer shall have the same consideration as a mobile home for rent stabilization purposes. 15. Civil Remedies If any park owner demands, accepts, receives or retains any payment of rent in excess of the maximum lawful space rent, as determined under this ordinance, then the homeowner in such mobilehome parks affected by viol- ation individually or by class action, may seek relief individually.or by class action in a court of appropriate jurisdiction for injunctive re- lief and damages, in addition to any enforcement action by the city under this ordinance. 16. Owner to provide homeowners with a copy of-this ordinance Any homeowner$ offered a lease or contract'which, if accepted and fully executed, would be exempt from the provisions of this ordinance (Section o; 3 (E) shall,.#ior to the execution of such lease or contract,,also be provided with a copy of this ordinance. Receipt shall be acknowledged in writing with copies to both parties. 17. Safe Habor In the event that any homeowners in a mobile home park enter into leases with their park owner, homeowners who do not.enter'into such leases shall nevertheless,_ be entitled to rent_ stabilization protections of this ord- inance. 18. Vacancy Decontrol In the event that a homeowner sells, conveys, or otherwise transfers ownership of his or her mobile home,.or the right to occupancy, the park owner shall not be permitted to establish a new base rent for the mobile home space and shall not be entitled to otherwise increase the space rent in contravention of this ordinance. 19. Severability . If any--provision of any clause of this ordinance or the application thereof to any person or circumstances is held to be unconstitutional or to be otherwise invalid by a final judgment of any court of competent jurisdiction, or should be invalidated by any legislation, then,such invalidity shall hot affect other provisions or clauses of applications thereof which can be implemented without the invalid provision or clause or application, and to this end, the provisions and clauses of this ordinance are declared to be severable. 20. Miscellaneous (1) At the termination of a lease, if a new lease is not contract- ed, accepted, and fully executed,.the homeowner comes under the jurisdiction of this rent stabilisation ordinance. (2) Charges and rents shall be based on the provisions of Section 6 of this ordinance. 21. Majority vote needed to make changes in this ordinance This Ordinance for rent stabilization of a space or spaces in a mobile home park cannot be changed or amended in whole or in part without a majorityyvote of the people of the City of San Luis Obispo, California. 0 0 Resolution No. 6392 (1988 Series) 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 Rappa and on the following roll call vote: G 1 Resolution No. 6392 (1988 Series) AYES: Councilmembers Settle, Rappa, Pinard, Reiss and Mayor Dunin NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 2nd. day of February, 1988. VWMMON ATTE T`:-,\ CITY�CLERK PAM VOG L7i23i1%*111 ty A inistrative Officer City_.At rney V VL,d Al City Clerk v ?orviiCiL)d &Conk i