HomeMy WebLinkAbout04/14/1987 Item 1 - Consideration of recommendations by the Mobilehome Rent Review Boarde t L ary of san Luis oBispo AU11A��MBER y
i COUNCIL AGENOA REPORT
"L"JECTConalderatlon of recommendations by the Mobllehome Rent Review Board
GA tECOMMFJJOATMW:
Review the recone ndations of the KHRR8, and by melon, direct staff to
modify the existing ordinance by replacing the Board with an arbitrator.
Council should direct staff to make revisions to the existing ordinance
which reflect local characteristics.
As a result of a joint meeting between the City Council and the Mobliehome Rent
Review Board In November 1988. the Council asked that there be revision% and
adjustments to the Motellehome Rent Stabilization Ordinance. (SIUMC 5.44) In
addition to be administrative and procedural adjustments, the modifications could be
substantive in nature as long as they encouraged long-term leases between perk
owners and residents. The Council asked the Board to forward their recommendations
to them assoon as possible.
The Board wea to consider. but not Ilaited to:
A) Establish4ng Are methodology for determining a fair rate of return
A) Detlning sobilehoses versus recreational vehicles
C) Meter/Otilltles allowances
D) Safe Harbor.
The Board was also asked to make recommendations regarding other Issues of Concern
In en attempt to secure long-term leases within seddlehome parks In the City.
the Board held a series of public hearings and received testimony from residents.
perk owners and legal representatives. The meetings were held on Decesber 18. 1986:
January 22: February 5 and 29: and March 5 and 19. 1987. The Hoard also met In two
mob Ilehase park* March 26. 1987. The Board felt It "a necessary to share
Information and recommendations with residents and owners prior to the City Council
meeting.
Early In the process, the Board established a list of Issues which warranted
discussion, feel am and recommendations. date Issues were:
I) sate Harbor
21 vacancy Dlcontrel/Change of Occupancy
31 Methodology tar determining a reasonable rate of return
41 Meter Metering/Utility Allowance
5) Consumer Price Index
6) Definition of a recreational vehicle
T) staff support to the MHRRB
0) Rent Central based on economic .need
9) Leases
10 New Approaches.
T r�
:. 16' �a
City O�n luls OBISPO
Si COUNCIL AGENDA REPORT
Under the aUSPICes of -New Approaches:the Board voted a 0 set owmend to the City
CQSPcII that 1; The Council repeal the existing Rent Sttn,*llratlan regulations and
adopt an Well mace which establishes arbitration as a of resolving rent
disputes. or 2) if the Cruneil chooses wt td use arbltre a t, they approve the
Other recommendations guide by the board.
CURRENT RENT STAB ILIUTIM ORDINANCE
The current BERSIS bag five sexters. None 21 the boardsembers My be mobllehsme
Owners or have any financial Interest In hllehoxe or park.
The Board is authorised to hold aeetlng.. 1nfeetlgate and hold hearings related to
rents or any decreases in. Or charges for, services or facilities. The Board My
conduct Independent hearings as applicable and can Increase or decrease saxlsuat
rents upon the completion of the hearings.
Presently, the MAfmum Mnthly apace rent any be Increased no more than once a year
by the ieeser of the following two amounts: I(
1. Eight Percent of the existing Shape rent
2. Seventy-!1ve percent of the Consumer price index.
No park shall effect a pent Increase by the reduction of facilities or services.
If park Owners wish to Increase the Ease space rents above the allowable vaodnt or
would Ilk* :o charge for additional certain services or facilities. they sust submit
am a➢PIJCAtIoA to the Rent RSvlaw Board, Me Board Most then Set a hearing date on
tie apallcatim within thirty days of receipt of ti:e subalttel.
Iwt .w the hpa&rIng procedure, owners and residents are allowed to have legal
i raprase•'s; inu or the aaslatenee Of any person or expert. Bath party is allowed to
t lof"a '- .a :.ls r,F and msa
y relevant evidence. "a Board y request additional
.afo'Mtla.'ef J the owarra or the residents,
Any dac:alaD of the Board shall bm final unless• witbin lE days after we1V g +t the
declaim and findings, the Omer or any effected resident appeals the decbst'w to
the Council. he an appeal the Council shalt review and tmalder it, r CAW of tl
hearings and the dectslon and flndings of the Boats. After review .,.i coratac�
the Council my either it) dutenine ttot a further het Ing •haA be bold. z
ratify and .dopt the declaim and findloga of the Boars
Any
decision by the city Council
can be appealed
t- th-
RECEINMENDATION
OF ARBITRATID't
On January 22. 1907 the Board directed a Bubcomit tee to 1nv.et1y4te a number of
clues Aiph use alternative approaches of administering rent scaalilratloa. She
vubeomlttee and staff conducted dozens of telephone Interviews and survayg with
May cities In the state, Us enbCOOlttee discovered two new and popular
approaches had been Spatted In sevgnl Comanitles. These local ordlnances Included
elements of mediation anC arbitratior. // J
;, Er8 +i • • � g •saw
Subsequently, the subcommittee visited the city or Lancaster and Interviewe
residents. park owners. OSHOL members and the past City Attorney who wrote d the
existing Lancaster ordinance. The City Of Lancaster was selected because of its
proximity to Sea Lulo Oblepo add because Its ordin"Ce had been In existence for two
years.
The Board Ms investigated -viability Of the arbitration method using the
Lancaster ordinate in a ampl. However, the Board Is not recommending adoptloa of
the Lancaster ordinance: rather. the Board Is recommending that an ordinance be
adopted which requl rem bidding arbitration between perk owners and residents.
The Board agreed on a 4-0 vote Nat arbitration would best encourage the singing of
long-term leases. There are certain provisions Of the Lancaster Ordinance Mich the
..cord round helpful. They were:
1. The establishment of temnt aasoclatlons that reflect She plus can of the park
residents. The association aunt notify the park caner of association officials.
representatives and members.
2. The park owner. by CertlfInd sell. must give tenants In the association do -days
notice prior to a rent lncreaee.
3. The asset lotion than Rust notify Mosoaners of the increase request. A written
ballot will de --ermine whether the residents accept or reject the notice of rent
change. If a majority of the home owners reject the request for rent Increase.
reDraaA I tAticee of the teRML-9 association and the park owner must meet and
negotiator. If a subsequent alternative proposal Is negotiated. mother ballot must
M taken.
A. Zr the alternative prapumal is rejected. arbltmetled (allows antler the rules,
regulations one suspleme Of my aeepsr of ae0t141 a•eltcat!m associations.
3. A mutualaCrw.;,aa a mr..e... tI asleetlen, of m arbitrator. A selection
will be made :roe a nuher of expprIUMAt erbltratar•- whose aiallficat.lns and
Mckgraunds arm .mown to both pmrtles.
6. no deciding by Lot arbitrator is binding and fine 1.
1M Callowinn factors. among other relevant factors as the arbitrator say determine.
MY M Considered In determining whether a rent increase yields a just and
reasonable rate of return:
I. lncrem•:e Or decreases in property taxes.
2. Unavoidable Increases or any decreases in maintenance and operating expenses.
3- Cast Of planned capital Improvements Other than ordinary repair. maintenance and
replacement.
e. increases or decreases In the oast of utilities or other housing services.
S. Substantial deterioration other than normal .wear and fear.
F
i,, tl city o f san Luis o¢ispo
is COUNCIL AGENDA REPORT
B. failure an the Part of the landlord to provide adequate housing services, or
Comply with state and local codes, or the rental agreement.
T. Failure to Perform ordinary repair, reylacesent and ma lntenance.
B. A reasonable rate of return on the present value of the Omer's Investment.
PEMMEHBATIONS AHO MODIFICATIONS TO E%ISTinG REHr STABILIZATION ORDINANCE
If the Council chooses not to substitute an ordinance requiring binding arbitration
In the place of the existing rent stabilization ordinance, the Board has recommended
a osier of emulsions to the Current ordinance. These sod iricatione are an effort to
encourage owners and residents to enter into long term leases.
1 CONSUMER PRICE IMBF%
Two elements of the Consumer Price Index were discussed by the Board. The first vas
whether Or not a Park owner say apply the CPI annual increase every two years,
rather than each and every twelve months. Second, the Board discussed changing the
Allowable Increase of 'Ina of the CPT to a "aliding scale- increase, based on the
current CPT figure.
The Board agreed by consensus that a Park owner say apply the CPI every twelve
months. Or on the anniversary date of the previous CPT increase. Thls Is a
-use-it-or-lose-It" Interpretation o1 SLOMC 5.44.00. B. A correspondence me sent
from the Board to the Park owners Informing them of the Board's recommendation.
This was done because the anniversary dates of a number of pa rkm were nearing and
the Board felt the recommendation should be $bared .with park owners as soon as
possible.
The Board also agreed to modify 5.44.060. 8.2 of the SLOMC, which permits an
allowable Increase over the existing base space rents equal to theca -fourths I76%1
Of the CPI. The Board agreed to sake a recommendation to the Council net allows a
OPT Increase base on the following allot at mcale:
0% - 5s CPI allows for a India of the CPT Increase.
5% or were CPI allows for 5% plus 75% of the Cpl over 5%.
The Board felt "to sliding scale waa equitable to both residents and owners and
represents a balance between what the owners and residents want". Testimony na
given by Park owners who Complained that 75% of the current CPI was Inadequate and
man In not be Inclined to Offer a lease with that Calculation.
2. SAFE HARBOR
The safe harbor concept holds that if a certain percentage of park iesldcats have
signed long-term leases. then the Park Is exempt rroa the provisions of rent
stabilization. presently. our Ordinance requires a mobllehome park to have 10" of
the residents on long -ten leases In order to be exempt from rent stabilization.
'"L= A' - CIW Of Sall WIS OBISp0
i:+ COUNCIL AGENDA REPORT
The Board voted 3-2 to recommend that the acre harbor concept or Included In the
ordinance. And 66 2/0a of residents be on long-term leases before a park is exempted
from rent stabilize lion
By state law. California Civil Coda 788.18. the Nubllehae Residency Law, protects
the remaining one-third of the residents for a period of twelve months. while
residents have access and the right to sign the same lease.
The specific language may be placed In SLORC SA4.050. Exemptions.
D. VACANCY ➢ECONTROL/CHANGE OF rLCCURANCY
Essentially, vacancy decontrol or a Change of occupancy all "a the perk owner to
Increase the base Apace rent after a coach sells. This precludes the existing
tenant from transferring his/her base space rent rate to the new purchaser.
The Board voted 3-2 favoring Vacancy Oeaontrol/Change of OCculnncy he Included In
the ordinance. The Board agreed that a cap of 15% $ball be pert of the provision.
In additlnn, the & Ard agreed that a clause excluding cases In which a canon changes
ownership because of the death of a spnbse be Included in the provision.
This action means en Owner say Increase the base space rent by no more then 15> only
when a coach sells. This data not Include a each that has Changed ownership by
reason of the death of a spouse.
The Ran" felt Implementing a vacancy decontrol/cl "e of Occupancy provision was
Canals cant with the purpose and Intent of the regulations. SpeclflCaliy. protecting
"at and present residents from unreasonable rent Increases and reductions in
services.
Language for Vacancy Decontrol may he Included In the SLORC 5.44.060. All
Increases.
4. RECREATIORAL VEHICLES
The Board agreed on a 5-o vote that It was Me purpose and Intent of the Rent
S tebllizatlbn Ordinance to protect recreational vehlclda located In aahllehoss parka
as residences.
The Board le recommending to the City Council that the ordinance he modified to
clarify that the Intent of the ordinance was to protect apace$ which any house
recreations vehicles.
5. WATER/UTIILITY ALLOWANCE
The Board reached a consenans of Me aesbers present supporting the Individual
calculation of utilities. In other words. and consistent with Stellar
recountdatlons on Creekside and Silver City, park owners any separate water from
the base space rent providing a reasonable allowance Is deducted it" the base apace
rent. The Bard also held that Oner utility separations Day be accomplished so
long as there Is reasonable allowance to residents. -Utility substitution- (for
ample. free SonIC Cable TV to satellite dish) Is also considered a park management
decision providing the substitution does not "net a reduction In services.
7kk J, atu of San Luis 0e1sp0
011Gs COUNCIL AGENDA REPORT
8_TENANT RENT STABILl"TION USED 04 ECONOMIC NEEO
The Board agreed by consensus not to recommend a rent stabilization ordinance based
on economlC need. The Board felt It could become an administrative nightmare and
would not uphold the Intent and purpose of the existing rent stablll nation
ordinance.
T. PAIR AND REASONABLE RATF. OF RENRN
The Board agreed by consensus and recommends Nat the fleintenence of Set Operating
Income IXN01) be adopted as the formula to determine the fair and reasonable rate of
return.
The Boo rd would use the MOT as a primary tool In determining whether or not a park
owner was making a Just rate of return. BOWOvOr. owners could he allowed to submit
applications With apeclnl or unique circumstances for Consideration by the Board
using a different formula.
It is Important to emphasize that Me Board urged flexibility In the application of
this formula when deteralnlog a rate of return. the 02101 may be applied In many
ways and the applicant and the Board my consider various methods. The MOT
Application would allow for adjustments In base year computations and for an
Inflation factor.
The Use Year. for the purposes of the MOT. would be Computed as the year ending
December 31. 1981.
8. LEASES
The Board agreed not to consider this issue directly because they felt far too much
time would be spent on It without success. The Board felt that the most
constructive approach to stimulate the slgnlAg of long-term leases would be the
council adopting the previously mentioned modifications to the present rent
stabilization regulations.
9. XEOIATION
"a Board felt strongly that mediation could play a key role in Successful attempts
In *solving disputes. Me Board voted 4-0. to require tenants and Owners to seek
mediation In The Case Of a contested rent Increase. For .example. a majority of
residents disagree with t proposed Increase. tenants must respond within a short
period Of time and Indicate they wish to discuss the Increase. A Mediation would
then take place within a specified number of days not to axes" twenty.
The Board .would hope the mediation process will substantially decrease the number Of
formally filed complaints.
1 city of san Luis oeispo
MiS COUNCIL AGENDA REPORT
OTHER ITER OF INTEREST
The Board voted 4-0 to recommend additional staff be made available for their
assistance. The Board would strongly encourage Net the Council. during its budget
process. consider Contracting with a financial analyatteccountant to act in an
advisory Capacity during application review.
It Is Imperative that the Board fully understand the financial aspects of each
application. The Board Testa that it is absolutely necessary to shipment their
efforts through the use of a professional.
The Board also agreed to recommend additional clerical Assistance to Improve the
timeliness of the application process and subsequent recommendations.
ALTERNATIVES
1. The Council mmy choose to accept the primary recommendation of the WNARB to
repeal the current rent stablilw tied ordinance with an ordinance which would
require arbitration. In doing so. the Council would direct staff to prepare an
ordlnance featuring arbitration to bring back for further consideration. The
Council say Choose to adopt an ordinance similar to the City of l Cmster's
Arbitration Ordlnance and direct staff to prepare additional Criteria and provisions
wblCh take Into consideration local characteristics.
2. The City Council may with to retain the framework of the existing rent
stabilization ratio latioas tax it may be modified) but, substitute an arbitrator or
hearing officer for the MIIRRB and the Council for appeals.
O. The Council Amy Choose not to consider any arbitration style ordinance and
accept the recommendations at the Bent Review Board modifying the existing rent
stabillzaclun Ordinance.
3. The Council may Choose to accept some Of !Re KHRRB recommendations and to
delete. add or sake changes to other revision& and modifications the Board has
suggested.
CONCURRENCES
The City Attorney adolses that the recommendations of the Board are generally
Consistent with existing statutes and Cave law regarding municipal authority in this
field. With respect to btading arbitration. he notes dull earlier appellate Case
Involving the City of Westminster, which had held that binding arbitration the
takes away an indivldual's rights of access to the court was not legally valid. has
been -de-published' by the Cat lfornia Supreme Court. The net result to that this
Issue of law few Ins unresolved, .with no case saying that such a prevision is either
permissible.
City of san Luis osispo
AW1111:0 COUNCIL AGENDA REPOPM
FISCAL IMPACT
If the City Council choomes to lapi"ant an arbitration style Ordinance. the City
would reduce its existing Mobilehose Rent Review Board budget of aDproxiee tely
$10.000, to a flanre less than S1.000. Thin remmlning money would be used to assist
In phasing -Out the exlatlng ordinance and to provide for annual clerical
reapanslbllltles to perk owners and residents.
If an arbltratl an Style ordinance IS approved. costs for the parties Involved Could
be approximately $250.00 each per day.
If the Council Modest to modify the exlxting rent stabillxa elan ordinance. they
will be considering a request of nearly $25,000 from the City Adelnlstrative Officer
during the 1957-1280 budget herrings to Support the Board and the ordinance.
SUPS RECOMMEg0AT10R
Staff would recommend accepting the recommendation of the Mobilehose Rent Review
Board to consider an arbitration type oriinance. Staff would also recommend that he
arbitration Style of rent xtablllxatton Say ow Implemented within the framework of
the OxiSting ordinance. Local provisions and particular aleatory to insure
Prevention Or numerous rent increases any be added to an arbitration type ordinance.
ATTACNMENfS: Mobllehome Rent Review board Minutes
Mobllehome Rent Stabilization Ordinance
Binding Arbitration Ordinance. City of Lancaster
AEETING AGENDA
RE C f 1 \I t DATE wen ei ITEM $
APA I01901 cc: 06vrL4/
To. Moss
San Luis Obispo. CA ri A/c�.vef
April 4, 3987 CUV CLERK /��/�,�
SAN LUIS OBISPO, G S / (�;oye ` o
To, The Honorable Mayor Dunin and the Councilmembera of San
Luis Obispo City
The San Luis Obispo Rent Review Board has recommended cer-
tain changes and additions to the Rent Stabilization Ordin-
ance for the City of Son Luis Obispo. These changes and ad-
ditiona, (not necessarilly in this order) include the addition
of vacancy Decontrol, Safe Harbor, Definition of a Mobile Nome
versus Recreational Vehicle and changing of the C.P.I. escal-
ator clause.
Taking these items as listed, Vacancy Decontrol could be dan-
gerous. In a University *Town" such as oura, student's par-
ents and students purchase mobile homes as an inexpensive
housing program for these young, people Be they attain their
goals. This is a short lived situation and the house Is re-
sold quite often to other students. And, here is the danger.
The manager/owner of tha park has the option to accept or
reject prospective homeowners. The obvious long term pros-
pecto could be rejected and the short term prospects accepted.
As with Vacancy necontrol each time a home is sold the owner
has authority (as proposed) to rslse the rent for the new owner
a whopping 155. On the average student unite are resold every
three years. Suppose a sophomore student bought a single wide
house today at $176.00 per month, and in 1990 sold the Rome,
the rent for the new owner would be $208.00. The home is then
sold again in 1993• The then new owner would pay $239.00 In
1996 a new occupant of this home would pay $275.00 per month.
In less than 10 years this new owner of a single wide mobile
home would be paying $75.00 per month more than would his next
door neighbor wlm lives in a double wide home and on a larger
lot.
In fact one home in the park was sold and resold a total of
3 times in one year. The whole concept of Vacancy Decontrol
is absurd and unfair. This concept was submitted to the Rent
Review Board by the Fork Owners as another way to transfer
money from the homeowner's pocket to theirs without providing
a product or a service. My ancestors would have called this
'Highway Robbery.- As Chairman of the Board of Directors of
Creekside Homeowners Association, I strongly urge you, Mr.
Dunin and the members of the City Council to reject Vacancy
Decontrol. It is unfair and has the potential for manipula-
tion by the park owners.
April 9, 1987 page 2
For the case against "Safe Harbor' as recommended by the Rent
Review Board,, the language and the numbers are bothersome. I
feel the concept of "Safe Harbor" is not really necessary, but
I am also not completely opposed. If the figure of 66 2/99
were changed to 80,4 and the wording was changed to say that
the remaining 20% shall fall under the terms of the lease",
this part of additions to the Ordinance might be acceptable.
Eighty percent of the Rent Stabilization Ordinances In Calif.
use the figure 754 (or less) of the current C.A.I. for escal-
ation yurposes. It is beyond the realm of realization why the
San Luis Obispo Rent Review Board is suggesting a complicated
sliding percentile formula that has absolutely no rationale
for its existence. We also urge that this ill-conceived Idea
be rejected.
I do, however, feel that the Rent Review Board adequately ad-
dressed the Mobilr Rome versus the Recreation Vehicle and do
urge that this concept be adopted.
The San Luis Obispo Rent Stabilization Ordinance was written
to protect the Homeowner from unreasonable rent increases until
such time that mutual leases could be agreed upon by both par-
ties. Very few leases have been signed by both homeowners and
park owners because the few leases offered were outrageous
documents. The obvious solution to the problem is the sale
of the park to the residents. In most cases, this solution
Is not a possibility. The next best solution Is long-term
leases (9-year minimum, 10-year maximum). It Is my belief
that adoption of the Rent Review Board's proposals will give
the paex owners an unfair advantage over the homeowners in
any lease negotiations. The Rent Stabilization Ordinance as
originally adopted was a document to protect the mobile home
owner and this concept should not be wantonly discarded.
Yours Truly,
Paul Beauvais, Cbalrman
Creekside homeowners
Association
City of Sdn luis oBispQ
980 asim Slrpt�^ w011lcs Box B199.5an Wla OOhpo, CA 93101Bt09
April 3. 1987
"MusNWN
TO: City Foq'ctl
yRON: Paw V
SUBJECT: Council Meetinv of 9/19/9) - Rm t Regulations Review
The staff report for the City Council meeting to review the rent stabl-
llsation ordinance should be forwarded to you by Tuesday or Wednesday of
next week. Steve forwarded several mabllehose rent control ordinances
from other cities that the Rent Review goo rd ties previously reviewed.
These are in the councll Office for your review. "eoe ordinances case
from the cities or:
1)
Oceanside
61
Santa Barbara
2)
Simi Valley
T)
La Verne
31
Rocklin
B)
Oxnard
91
San Jose
91
Xorra Bay
51
Escondido
30)
present
Also Included is a resolution establishing a sobllehome rent mediation
board and procedures for the City of Simi Valley and a long-term lease for
Los Angeles County. Because he material Is lengthy and the agenda Racket
t0 be forwarded to you next week Is also lengthy. you say Wish to peruse
Mesa other ordinances at your leisure.
Give se a call If you have any questlons.
PV:skl
cc: T. Rosa
R. P(cquet
S. Ronderson
5,40.170—SA1.010
15si8wtion. procuration, or obscene or baronful
mmec nor shall the use of such language be
intertwined to legalim Nose lypq of businesses
which. hom dame to time have been regarded
"Per se' moral public nuisance (Ord 925 § 1
(part). 1982: prior code §a815)
5,10,170 Applicability of provisions to
adult thgters and adult
boukstorea.
With resistant
applying for a became and permit under
the termaorthis chapter, thecouncil shall make
no determination on such application without
that considering a report of the city anomey
convening the appropriatepns of applying the
nandardssetoutill this ehapts Usoadvised by
tbedtYaz meythat"Yotall stavdmdsset out
in this chapter maY not properly be applied to
the adult bookstore or adult Ngterappligtion,
the co"cil shall 1101314)1Y ouch aundards. (Ord.
967 § 1, 1983: prior code § 4816)
Chapter S."
MOBILE HOME PARR
RENT STABILIZATION
Sections:
5.41.1.010
Parposeand lnse0t.
5.L1.020
Definitions.
S.4a.030
Exemptions.
5-ad"
Mobile home mat review
board —Established —
Membership —Terms.
5AaA50
Mobile home rent review
board —Powers and duties.
5.4.1.060
Base spacerem-
13etermisition—A Ilowable
increase.
5.a4.070
Application (of mntincrease—
Fee—Contents—tiotice of
a9ual—firming.
5.44.030
Application for ever increase —
Conduct of hearing.
234
5.4a.090 Application far time inceasse—
�,
Ealuadan—Reteraos factors.
�5:M.100
Appliationfor net lnmcase—
Heariag-13e
5.N.1fB
rrm t Incre
AppO rant l0equ
Hnriog—Appeal.
sur—Ap
S.d4.120
Rent increases net made in
conformity with prodsmes—
Tenser's right to refuse to pry•
Saa.lM
Actions brought to recover
limitations of mobile home
f poet—RelilittOry eviction
grounds for denial.
5.44.40
Owner to provide reoams with
copy, of this chapter.
5A 410 Purpose = it Wine.
A. Thee is presently withers Netity and the
wmounding areas a shortage of spaces for the
location ormobilehomes, Because orthisthen-
age. then is a very low vacancy ate, good rents
have been for several years, and are presently.
risingmpidiy andcausivgconcernamongasub-
startual number of San Luis Obispo residents.
S. Mobile home lemants, forced by the lack
ofsultable altcmadvehousing, have had to pay
the rent increase: and thereby suffer a further
reduction in their standard of living.
C. Because of the high coat and improc-
ticabilityofmoving mobile home the potential
for damage restating therefrom, the rcouim.
menu 1e121101 to the installation of mobile
homes. including perm¢ landuaping and site
peparation. the1260folCrestivehomeites for
mobile home residents. and the substantial
investment of mobile homeowners in such
homes, this council Gads and declares it netts
say, to protect the awri and occupiers of
mobile homy from unregsotsvblemvtincrearts,
while at the same time recognizing be need of
park owners to receive a suitable profit on their
1
%.y
propeay with rental income cuff mein q ..
increases in costs ofrespair, maintenance. friar.
AMC, utilities, employce'services, addirnna.
ameaitica and other cortf of operation, zz�
receive fair return on their property.
D. This council finds that the present low
vacanryakand frtquent arm inaaysam par.
tindady hard upon and unfair to cements of
mobile home parks within eM sty targe�num,
ben of these residents am senior ciaserts un,'
others on fixed Amara who imtalled their
mobilehoma in thecitywhm the present in0a•
tionary rev[ incrattsmuM not reasonably have
been foresees.
E. However. this council nvogames that a
ten, atabihrstion ordinance must be fair an.:
NuinFtefm all asrdes and muIIprovide zr qro
priatelamntiva fn T Chile home park operamn
to continue their parks psylitably. a well as to
mnaa additional invention for new parks. (Ord.
923 § I (pant. 1982: prior code § 48001
5. aXW Deliaidaws.
For she Wrpoec of this chaplet, ceretin wards
and phtasa used herein ate defined a follows:
-- --—�^'Cspitativfprdvements"mems-Inose
improvementschit preeriaily addtotheauateof
life pmpen) and appreciably prolong its useful
life m adapt e t new seta, and which may e.
a eta) in accordance ova the useful lift to the improve
mart in dmaul with the Internal Revenue
Code ed. regulations sawed pursuant tMrto:
provided. that this definition shall ix limited to
CWW improvemenu either approved by more
than fifty percent of the tenants in the mfeend
Park: ormnstmcted toad with the direction
Ufa public neat
B. 'Mobile home park" mans an area of
land which tents sperm for mobile Mare dwell.
ingunib
C. 'Mobile home park owner or'owmr"
mom the owner. kssor. open for or manager of
a mobile home park
O. 'Mobile home park tent review beard"or
"beard" mans the mobile home park rent
review board ambt:rhed in Section S.Sa.WU.
W
F: ..tnuc Home Uoant'u. ..::tua mom
any mason =tided to occupy a mobile home
within a mobile home park pursuant to
ownership orthc mobile home or vaQera rang
or lesson Wourirnt with the owumot x mobile
hams.
pestabdiutim wary" -uanyrenova-
..,, rpairwarkoompla n.r•np mobile
rt park pecfurme6 in l - a -..� .�.
:he Aremoa:w Ueda of a. _ y. >:to
r:aavdamagerrwlnog from �:<. cu::Vuak<or
odw ammry.
G. "Spaces mat' mans she consideration.
ixiudin8 any security damsi¢ Mnn.m. bens.
Bunt--aTauesdemandedorm allnenn.
neesnuw = ...se amlosvpr... :fa n. cue
hw•w rice set a n..aik home park. a tt mw-cou4
g nicamar do
pvtQed. bes usiva. of ant
amount paid forft use of a mobik Mmedwell-
im8 unit. fOrLL 923 § 1(part). 1982: prior code §
a8o11
5.aa.030 Eumptlms.
The provisions of that rdapn<s shall WE apply
m the folio W vg tcnanda in mobik home parkin
a: nfiahometsukspxvrensd farnoe-- _. __
residential uses:
B. Mobile come parks managed or opensM
by the United Stares Government. the sure of
California. or the crunry of San Luis Obispo:
C. Tenancia which do not eased ant occu.
panty, of twen ty days and which do oar mmam
plate an occupancy ofmom than twenty dam
D. Tamncies for .which any federal or sure
law at regulation specifically prohibits mat mg.
ulautim ^
E. Tenancies :ova:d by leases or contracts
which pmv de for greater than a year's tcmncy.
but only for the dumuon of such lease or con.
tract Upon the expiration of or other urmina.
bon of any such Insc or contras, thin chapter
shall immediately be applicable to the tetmnry:
F. Mobile home parks which sell lots for foe
tornbmlt or manufactured housin& or which
provide condominium ownership of such !oat.
even if one or mom homes in the development
/—I D
5.44 sari--t..t-t.0bo
arc rented or !rased cut_ (Ord. 1077 § 1, 1986;
Ord 923 § I (part), 198:: prior code § 4802)
5.44.040 Mobile home rent review boud—
Es t a b 1 is b ed —,tit e m bers hi p—
Terms.
A. Theft is estahii5hcd a mobile .:or.e rent
review board consisting of five members who
shall be appointed by and serve at the pleasure of
the council.
B. The board members shall not be tenants of
or have any financial interest (as defined by state
law) in any mobile home or mobile home park
The members shall CAA a declaration to this effect
with the city clerk in a form approved by the city
attorney.
C. Board members shall not be compensated
for tneir services as such, bu, may receive rcrm-
burcmentsas provided by the council for trwvel-
ing and other c.cpen;es incurred while on olftc.al
duty-
D. Terms of uffice shall be two years. Aboard
member may serve no more than four con-
secutive full terms (eight years). Terms shall be
staggered and shall commence on April 1st.
Appointment to a partial term ofofFice following
an unscheduled vacancy shall not preclude the
appointee from serving four consecutive full
tents following completion of the partial term.
provided the partial term is !ess than one year.
Vacancies shall be :filled for unc%pirad terms. All
of the procedures and requirements contained in
the council adopted "Handbook for Advisory
Bodies" shall be incorporated in this section by
reference. (Ord. 1030 § 1. 1984: Ord. 1025 § 1.
1984: Ord. 923 § 1( part). 1982: prior code § 48031
5 44.050 Mobile home rent review board —
Flowers end duties.
Whir., the limitations provided by law. the
boars shall have the following powers and duties, -
A. To meet from time to time as required b%
ttic count! and to utilize the city offices. facilaics
and per. onnei as needed:
B. To receive. investigate, hold hearings on.
and pass -iDon the issues relating to mobile home
.Saw L.,%f'rspo 14',
1 3t,
;-ark rent stabilization as s ct forth in this chapter.
or to any decreases in. or charges for, ser-ices or
facilities:
C. To crake or conduct such independent
hearings or invtstigauons as may be appropnalc
to obtain such :nf,-rrtat;on as is necessary to
carry out its duties:
D. Te, ..icrease or decrease maximum rents
upon completion of its heanno;s and investiga-
tions:
E. To render following every rent review near-
ing a written report to the council concerning its
activttie& holdings, actions, results of hearings.
and all other matt-rs pertinent to this chapter
which may be of interest to the council:
F. To adopt, promulgate, amend and rescind
administrative rules.:.: it deems appropriate to
effectuate the purposes and policies of this chap-
ter. (Ord. 923 § I (pan). 1982: prior code § 4804)
5.44.060 Base space rent— Determination —
Allowable increase%.
A. The "base space rent" for purpvs_s ul h►s
chapter shall he the monthly space rent cha.ged
as of Starch 15. 1982. The maximum monthl-
space rent for any space under a lease, upon
expiration of the lease, shall be no more than the
base space rent on Slarch 15. 1992 plus an%
increases otherwise a!lawed pursuant to the
provisions of this chapter.
B. Except as otherwise provided ,n this chap-
ter. the inaximum monthly space rent may be
increased no morr than once a -ear by the lesser
of the two following amounts:
1. Eight percent of the then existing spacr
rent.
2. An increase ov-r the thee. existing space
rent egaal to three -fourths (seventy-five- percent)
of the cost of living increase (Bureau of Labor
Statistics. U.S. National Consumer Price lnjcx.
Los Angeles/Anaheim/Long Beach CPl-U► fnr
the preceding twelve-month pent'_
C. Calc ation )f the one-year ►imitation on
rental increases as provided in this section sha!l
be from the date the last increase became effec-
tive at the park.
5.44.070-5Aa.090.
D. No owner shall either(1) demand. accept
Comeai: a rentofmfmm atenmtin eosin oCee
maximum man Permitted by this chipta. be(Z)
e0'at a proWZitud seat increase by a reduction of
SenerA parkfielitimandservittt,(Or& 107911.
1986; Ord. 1020 § 1. 1984: Or(L 923 11 (tort).
1982. prim cock § 4805)
S.WA70 Feo-C fe mr,Nodos of
Few Contevm--Notltt of
rtawho tou been
A. An owoa who ncurr rzy cooks
o realm
expenditures; or has incurred coats j such
amo U2b1a mountm beuyblemmive the aed
ra*ooabl<retwo ao his property given the mu.
imam a with the
eboartted ap licction for
060,
sent
marefile withthermorasape6atipofini n:et
rotates% fin one m more ainCm vi tr or la 4nn tp
eedum.ovean referred certain hereinafter
as fappliia,
isehbaeaplreti on mmetmem ere"Ppplia-
uan" or "application for ere[ ipercuc"
B. AnYapPliationforarermadjunmen[pw-
mantmthbseedoosbaBbex maniedbythe
paymat cafes fee ss mare beeuablished from ume
In time by eouncl eesc:ution- The appliauon
s�u1 s1eCY. u a stitile. 13e adders or the
mobile home park. the spsce number of flum-
bers for which rot is memesei to he adjusted,
the amountoftb<ee9uatedrzn[adius®ent. me
creamed effective dam ofsuch adjuament and
We Lets supporting the apphation. The amph.
mptshallpmdueeat the requatof[beboartlanv
records, receipts, reports or other documents
dom the beard=Ydeem necessary forme board
m makes determination whmha on approve the
application.
C. Thevwnershall fern<eachasfatedtepana
in writing either personally or by mail. wire
aoticeofrequested at d wulti ha6M that:tppaor
don (at requested and rem notice rem aph the
boa fat approval ti areas being filed with the
board Pmofofsuehservimshall4 filedviththe
board concurrent with the Fling of the applies.
lion. Cr pia Of the appliation$halt be available
free of charge 10 nay affected tenants requesting
same at the burin sa office in the affected park.
137
D. The board shall set a hearing on the
application complying with the mauiteemats of
this section no less than ten days and no more
than thirty days after reccpt of the application
and proof ofserviee. The bard shall notify the
owner and on, r m in writing, of the time place
and data set for the heating No hearing or any
part thereof may be continued beyond thirty
days after the iultial hearing date, without the
owner's consent. If the board approves in
apPBacanasrequm[edormmodMed, tbesame
shall take effect as noticed by the owner m as the
board may Otherwise direct (Ord. 10"§2,1986:
Ord 923 § 1(wrtk 1982: prior code § 4K,6)
S.iaABO ApPBadon for rcat review A. All review bearings conducted it the
bosh shallro nAMit inaccordance
54950Vactthe
RalphlBrownAMmSection Sa450afry.of
the CaliforniafGovernment Code.
B. ARinteeaLLd partiamahcuingwYhave
assiseanee fmm ananomry msueh otherpersoo
manbn atedbythe partiesiu
evidence or in semae 2rth by argument
tdrm
Wdtlim.WlzswatrriR amda_
sesim(nY
shall be under penally of perjury.
C. In the event that eitha the owner or the
tenmds) should fad m appear at the hearing err
the sPedited time and plate, the board may hen
and review such evidence ss mare be presented
and make such decivon ss 'tag patua had been
present.
D. Applicant and affected tenants may offer
My taummY, documents, written declartumns
or other relevant evidence:""
E. Formal rulesefevidence shall not apply.
F. kimmea shall be taken at all renew hem-
ings. (Ord.923§ 1(part). 1982: priorcode§a8071
S.Ja.090 APPliatlort for rea[inerease—
Evalntfoo—ReI<amt factors.
In evaluaung the application [he board may
consider. along wire all other fieron it considers
relevant, changes in costs to utcowner muibuu.
ble to increases ordeceevus in muter LrA and{
'`, Z
5.44.100-5.44.140
or facilities lease rents utility mom, pmpcny
mxm, iunaanm. advertising. variable mortgage
inUmuslitn, mplmeecoas normal repair and
malmemenr:, and other comideradovis, inCud-
iog but not limited to, miciti )iration work, et,ss
it'll imvrovemenq upgrading and addition of
amenities or services, net operating income, and
•he level of met necessary to permit a just and
reasonable rmum on the owner's pmfaty. (Ord.
923 § 1(pars), 1982: prior code § 4908)
'S.4i.t00 App0otionfm «v[inereat—
Harieg—Determination.
A The wend shall motto 3 (Coal ;union P no
Imerthantwenty daysafter the comle Conclusion of its
hearing ran bond•: decision shall be based o0
the pepondmnce ofthe evidence submitted at
dishearten Tsbcderisiousha0bebaud oofiw^-
ings.AO panimus the hearing shall the advi ed by
Mail of the board's decision and findings.
R. Puesuam to its fndinµ the board may;
1. Permit the nyuested rent increase to
become effective, in whole or in pan; or
2. Deny the rcoummil rent increase; or
3. permit or deny, in whole or in pan,
rem ested reductions. of or charges for, facilities
orserviCm
C. Any decision of the board shall be final
unless, within filleeo days after mating of the
decision and finding the owner or any affected
tenant appeals the decision to the council. lord.
923 11 (peril. 1982: prior code § 48091
5.44.110 Application for rent innease—
Heuing—Appel.
A. Any appal farm clopn of the hoard
shall be filed with the city clerk. The dot for
cleft
Im ICSthan Uappem Per oar than thurry
clerk m test than ten don nor more than thirty
days after the" expiration dam for filing at an
he
given Notice ofthedare,time and nor and be
given by the city clerk to the owner all all
affected ¢nano
R. Ar the time set for consideration of the
appeal the council shall review and consider the
record of the board hearing and the di ctuom and
138
finding of lot Ward After review and considur.
tine the council may either (1) determine that a
fuller hearing shall be holds to be conducted
before the council no later than the peas regular
meeting, or ratify and adopt the decision and
6rvlingsoftheboud Ifsfurther bearing iscon-
dunrd, themuncil mayupoamodusionofthm
hearing, and in no event mom than thirty days
thereafter, modify or reverse the decision of the
board, and shall make findings in support
thereof. (Ord 923 § I (put). 1982: prior code §
4810)
SA4.120 Rem ioermn not nude @
msdamlty with prnvuiom--
T oant•s right to rebut to pay.
A tenant may reef use to pay any i neap. in rent
Am made in confemily with this chapter. Such
refusal to WY shag be a defense in any action
bmught in Ittovmpossession ofs mobile home
Siri WCOUCCa the tent increase. (Ord.923 § I
(pan). 1982; prior code § 4811)
5A4.130 Ac-,mbroughtrorecover
p..ettba of nubile home spays—
Reuliatmyevictios grounds for
denial.
Notwithstanding Section 5.a4.120. in any
action brought to recover possess on ofs mobile
home space, the Wort may consider as priundt
for denial any violation of any provision of this
Chapter. further, the demmination that the
action wm brought in rmlution for theca rcit
of any rights confessed by this chapter shall he
grounds for denial. (Ord. 923 $ 1 (pant. 1982;
Prior code §4812)
$.44.140 Owner to provide miums with copy
of this chapter.
Any tenant offered a lean or contract which if
accepted and fully executed would be exempt
from the provisions of this chapter fSemion
5.44.030E) that at the time of the offer afro he
provided with a copy ofthschumer. toed. 9231 1
(parr). 1982: prior code § 4313)
/-13
5.44A60
Smtiai4 U.S. National Consumer Pries Index)
for the preceding aMvamoath period.
C. Calculation of the oncyear lizl :melon on
rental increases as provided in this secsioa shall
be fmm the date the last incase beome eRee.
tine at the park.
D. No owns shall eiNer(1) demand, accept
orrealn a neat oror fmm a tenant in uces orme
maximum teat permitted by this tempter, or
effm a prohibited mat i nasase by a reduction of
general park facilities and services./Drd. 1020 § I.
1994:Otd.923§ I(part). 1982: pnorcodc§4905)
136.1
ORDINANCE NO. -
AN ORDINANCE OF THE CITY ' REPEALING ORDINANCE NO. 165 A CA •!SC•N4j♦ti 'CALIFORNIA,
01p1ES
FOR MOBILE HOAE PARR RENTAINCR 5 AND REQUIRING BINDING
ARBITRATION OF ALL DISPUTES INYOLyING SAIO INCREASES.
WHEREAS, A shortage of mobile home rental spaces existing In the City of
Lancaster has resulted in rising rents; and
WHEREAS, said rising rents are causing citizens on fixed InOOOMS and primarily
the aged to pay an excessive and burdensome Portion of their Income }Or rant; and
WHEREAS, these circumstances constitute a serious housing Problem afflicting Public health and welfare of many of the People In the City Of Lancaster, the
NOW
Ti
"THEREFORE, the City Council
oraf ardaln as the of the City of Lancaster, California, does
Section i, purpose. it Is the Purpose of this Ordinance to Protect the tenants
Of mobf!e boot parks in theCity
time, frown unreaonable rent increases by stabilizing
rent Increases and, at the s
their property and rental income z,fficlensOlandlords both a fair return on t to
operating expenses as well as the <eati Of capital cost Of maintenance and
property, p al Improvements to }heir rental
Section i. Oefinitlon.
a. "Association" means an organization at mobile Mae owners representing
mare than fifty percent (50%) of the mobile home Owners.
. b. wA"Itratlone the submission for determination of a disputed proposed
rent increase to.persons , a Person as prwldct in Section B,
c, rlrpltratOr^ mans a person r persons selected Jointly by the parties
or as otherwise provided In Section B,
d. "Park owners" means the owner of a mobile ham, park Or the unapes
designated agent.
e. wParkw means a mOblia tone Prk pna which rents spaces far mobile hone dwilliang unitst.lntng more than }arty 1401 spaces
I.
dwelling unit ftMobile home owner' means any person Or persons Occupying a mobile Met
Ooblle 4 pursuant to ownership Or rental inereof. For purposes at voting, each
home dwelling dolt snail be considered fo have only one owner, so that, for
exempla.. a be bandanti and mile and any vote.
we$ Occupying such mob lie home dwelling
unit shall De entitled to only one vote.
9. "Rant^ means the consideration, includlng fees and assess
services, a-enitief and banal Its In connection with thecents
for
use and occupancy of a
mobile hares space la a park.
Section 3. Farmafion of Association, the tenants of any reblle hom. park
subject to this Ordinance must fare an Assaclatlon of mobile home Owners to be
subject to this Ordinance. Upon formation. the Association shall
Owner 1n writing of the following; easily the park
/5
a. The Assoc l at l on Is nave and ml l l ng address as Yell as the names and
Stores sae of the Assoc l at ton is of f icI a I and designated rape sentat l ves fn all
negotiations.
A. Amembership list.
Section a. Notice of Rent Increases. Park Owners shall suPP)Y to Assoclatlon a
certified record of the mrrhiy rental rates charged within the mobile hone park
during the preceding two 12) year period within thirty (50) days of receipt by the
park owners of the Information contained In Section 3 heraof. Prior to the
Irgosltlon of any rant Increase by bark Owners over the rates shown in the record
provided for above, park owners shall provide written notice to the ASSP:latim of
the Intended Increase. Said notice shall be delivered to the Assoclat(on by
certified mall, return receipt requested. a minimum of sixty (601 days prior to the
proposed date of commencement of the Increase in order to be effective.
Ia2
Section 5. Association Response. Association z4aaYrno'1111f
all mobiim home
owners of Me proposed rant Increase by providing scopy of the written
proposal. Association shall conduct a poll which Sritten ballot of the
aoblla hone Owners of their acceptance or rejectionosed rent Increase.
Association shall notify park owners within twenty the receipt of the
notice specified In Section A hereof of the results of the poll and if the majority
of mobile hove owners casting a ballot accept the increase, It shall becom
effective on the date desigmted 10 the notice required In Section A.
Section 6. Negotiation of Rent Increase. If a Majority of the mbile home
owners casting a ballot reject the proposed rent Increase, said rejection Snell be
delivered to park owners within five (5) days and the Associations designated
representative and the park owners shall meet within ten (10) days of receipt of b
notice of the rejection to negotlate the proposed rent Increase. If an agreement Is
reached by the Association representative and the park owners, the new Proposal
shall be submitted to the mobile tare owners and the Assmiatlon. Association shall
conduct a poll by written ballot within ten (10) days of the receipt of the proposal
and Imndiately notify park owners of the results.
Section 7. Rejection of Proposal. If the new proposal Is rejected by a
majority of the mobile bee owners casting a ballot, or If no agreement is reached
by the As5mlatlonms representative and the park owners. then Me parties shall
Immediately commence the arbitration proceedings as Indicated in Section 8.
Section B. Arbitration. Within five (51 days of rejection of the new proposal
by the mobile name owners or rettfication of the Inability to reach a new proposed
agreement, the Association and the park owners Shall refer the miter of the rant
Increase to arbitration which shall be conducted according to the applicable rules
of arbitration of the American Arbitration Association and under the auspices of the
American Arbitration Association. The decision of the arbltrator shall be binding
upon the parties and may be enforced by application to the appropriate Superior
Court.
Section g. Relevant factors. The following factors. Among other relevant
factors as the arbitrator may cetormine, may be considered in determining whether a
rant Increase yields a just and roasomole reurn;
a. Increases or decreases in property taxes;
Pan. wT
b. Unavoidable Increases or any decrsases in maintenance and operating
axpensas;
C. The cost of planned capital Imrovements to the mMlie home park, as
distinguished fret ordinary repair, replacement and maintenance;
d. Increeses or decreases In the cost of operating the mobile home park in
Providing utll[ties, or other housing services, or occupancy rules;
a. SubstantI a dater l or atl on of the mbIie tome park other than as a
result of ordinary wear and tear;
f. Failure on the part of the landlord to provide adequate Musing
services, or to comply substantially with applicable state rental laws, local
Musing, health and safety codes, or the rental agreement;
g. Failure to perform ordinary repair, replacement and maintenance;
h. A reasonable rate of return on the present value of Me ownerts
Investment In the park.
Section 10. Severability. It any provision or clause of this Ordinance or the
application thereof to any person or clectmstance shall be held to be
unconsr;tutional or otherwise Invalid by a court of competent Jurisdiction, such
Invalidity shall net affact other provisions or clauses or appi icatlons thereof
which can Le 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.
Section 11. The City Clerk shall certify to the adoption of this Ordinance and
shall cause It to be posted our published In the manner required by law.
PASSED, APPROVED and ADOPTED this _ day of , 19115, by Me
following vote:
AYES;
hOM
ABSENT:
BA ABA LITTLE, Mayor
City of Lancaster
ATTEST:
QIRISTIRE ROOT, City Clerk
City of Lancaster
TAPE Mi
t G ty Of sL UsC�1315p4
M I N I1 T E S
MOSILEHOME REWT REVIEW BOARD
DECEMBEP 19, 19Gp
WE_CGME' _t: fR_LiNf-_GFfc
rhalrparson Pat Barlow declared file r "U:ar ffleoz.r,l; .. the
obr:enone Rent Review Board -a;Ae ..o Jr O(P at Zl 11 P.I. wt.n till
r ui: pw: ny in a.".andanwi
C,GARDMEMBERS: Pariow. Crdan. Label. Wheeler. Wriq^t
STAFF: Henderson.. lamper
.i. FfEy;5a Cc F'>C1 �_
Mr. Henderson reA awed the paclet GreSaf.tel to the POdrd, whi Cl.
.ncludadi A.
minutes and agenJa: . awaO frOO Stele Henderson io
the Board.;Adole Palloond ducaeaht u+ncarn:ng CP1. 7. letter
£roam Steve Henderson to Deems Law. rei Findings or. Silver City
ipPl tcatacr..
lilt aFF3nya4_gf *FIE nitlurE� n �E[�tlHEc a>___oaa
Tta minutes of the a.aeting Alt r.xlcabar - were apposed w:,h the
request that one lira be added nCar Tape aa, Page :. ConOrnifg
the li a:labilit,, of leases.
11. FAR cEL'FT10t1_ Fai[ and__PeASpn_ble N_;p ui Refyu!n__ r[y_1_giJ_Fiarr
M 1'sn Barr, author Of the Putger's Law Review article
conc..xnang rent stob.litation and practices and c.atnods to
Jetermiwe fair and reasonable rate Of retw•-n, ge'? a }nOur
presentrti On on the abov± topics.
Cinc+r.rs - Petvrgs.' He
1. Hcw5Real Estate
Cc.urr T•ecistons Dealary wita the
r., ..r _ r.• .'. i.:...-.. e= the Fair Return for.nul as -
I't eny11.s any ...a_a..
I —S
HM Fd)
Minutes - 12/18/ab
page
IV. Pagt SEU TNT I ONi Fair
nuana keesOnaolg (:a te_8f Fc'LYCe_] !'�_ 1'en iyrr
lcontiedi
The full owing outline notes the general points of the
presentation:
1. How Peat Estate tnve34*ent Wo_4_
A. real estate investments wort differently than otndr
investments
P. comparing real "tate with ctner i nvestmunt6 Is
impossible - they Co no. compare
1. apprrx i at a On
2. au laws
. leveraging *actors
4.agyra vat ian:hebacbe of manaq,ny /own+ng real ascace
S. liquimty
h. risl factors
C. different types o
1. beforelafter .1,'. pf return
. before after t, I I ....
aPPreci.tianlnom -aP['T ..[: o:. rate of return
a. rate Of return On reali estate .arles aver the l.re O
the tn.e9tment
D. sal .estate .: an anti-inflation in.estment
1. tax benefits
E. real estate industry methoaolagy-interr.ai Rate Of Feturrn
1. accounts for time facto-
Z. present vol;w vs. future w,rth
_. Htstgry of Courts' UgaliOo with Fair Retgrn I224e
a. constitutional lssue"
L. fair return , what Juogas Say .t +4 - .uS,cal C,ctri.-v
c. soc tal doctrine
d. Court ePln,cns are Intarnal:+ ncOu 614t e:.t. vague. and
often reversed
e. .,:.p between how l eC o fra...ad bfo,e the u't (the
legal ar-gunent Presented, and what's actuallY hACPeniPq
n the aaa,,:., str at,an on the taw
1. courts do not want to legislati but do want to uPhold
the cnnzt.•tut,o-+
Fs , Put... nin VelY 1:. a +aloe of P. OPar•r
retur + Or. value 15 Circular
what of prep=rti-
whi at :f -tiO4. eturn .'
-1 !
MHRRP
-Manutes - I]/:3: E6
Page
HL.gtort g _____ C. ri y_.r watt. FnCotoIs___
ac out muam
_ Fa lr Return value of pr -tr
A. 4. value
- on Vsval = IV:. of ��-+
4. value as � (o assessed value
S. 1940's - WWI' Rent Con Oral
I. na4onal rant '(Antral law
1.1949-ma: r. i �a,n fair net operating
C. M.74.0. 11 ".out A.
of la(i an adjustment AccIt a.'�e nCroa., onII
., 194, - M.':.O. i.challenges In eCurt
1, fair -et,vn an Investment standard was
wiaW e -
Clff. - ng Jiff. % R. af. .. ..
e. rA,jM
,Joe standard w anpproprlart
rc •,t
u nau. ai w-n VContet becausea5uam aiwere rlgn,re,loct
the shortage durwr.g the war
F. w.11t - boy tononts in U.S. -- toomV. 66%
-110.1. fa aril. adapted under federal it a. cont, o -
H. post WWII - m an'states f_lttes adopt rest Cat.try:
1. t controlu wful Wr: e s justafted br '
J. 1970'z -rent ^a.ol re-emerged in the S.e-
I. first peacetic
me ren. corittols in U.S.
_. +
owners hv ad ,right to operatany ._.pw. + and
gga' ✓ ncraits withic Con z:derat:cn ;cc n e'tment
full CFI : w the standard
A. left Cantr•.l regulattonr became stelcte. - , V% CFi
factol c;.-. eoge
p. regulotn:_,t not confiscatory even If prop. +aiaa
de teases
Z. return on value is circular type approach
L. ordinance limited rent increases to
1. steads decline Of M.0.1. Is confiscatory
. % N.O.I. standard ios 0.4. Igross Income
M. Return on Invest. standard -court dl Gn'tappr0?eCaappr.
I. Investment hosed standards have no theoretical
problems but are cc.fole- to adf4o:star as compared tc
e-based standards
Z. fej) return StandArda ale w type of retu I,. on
Investment standard which tied the r.. a of re. _.n it to
mortyage Interest rate
�.court said the fair return standards C.—nut
dlzcr:minate according to finance arrangements
u. Return On Value standard is
circular
I. could wort baclwardz to determine rent vela - first
determine desired rent. then calca:atlt "s La" redded tc
air n•at .a,,t .o-+ei
rCal•fyrn_a Rer_t goat-c:f
C. 6+.r:.c1, dotted Ist. Calsi. Cetime r._. w i.. :97L
1. no tousln.j a +rgency ordinanca as
-"a t•.ti anal
termah..t;We dale .rdu.anre is, "sLtuti_'ai
•lid Aso! need a erym sdupt I. c. eguiwta Wls as
Icnl .s ihiaj have a ratiuna!' Lostw
/-w
MHRRE
Mlnutes - 17!:F'se
Pave s
of
C. Oyalmy ytcn _ Return s3 _s
--
(Continue a
P.
Owners hire a right to just and reatphafo
r e,- r D, lrl.l.
properti: and. an ad)usLrent mechanism 1
_t. .. -,. ..
necessary to provide for a change in ;-
I..
0.
R.C. ra-emerged after Prop. 1: - mud--:
1. Ecrlely's new ord. -.
-
estmont using weighted '.•.
what otu fat( r n. is
C. City of Carson - fear L r.e., ..._.:r:. ...
.. ...
factors not 'Sec
E.
pied liister urS.-.err
Cures' cl YAre copied Ear-.-1r
y
d
to admiv zter
these a e d:r.ls
all
mesa ar.lsr' ystl F.Uunaliv
'�ayvu
t, Nronlge
Cat, of Sarrl'
..ie
:,
cnu.. said . ar :,ad r. ynt to pas LLv.e carI�w -
spur
tba fa�msed new ch aseru
CM✓as Ya. - i had ri.jpt to cover neyati ie i. asr
flow - Via prznal)ced :Ong -term owners
3. zou�t
v clad retrr. on ialue Standard was conz4 Wtiou-
allv
required
3. court said gnat M.N.O.L iGrmute yeve owner% a fa:•
return in their I Vestment
T. Gregory . City of Son Juar, Capkaityano
1. coort said a • e entitled t return cn value
2. appreclatiuiw+ a part of 'va:ueo
U. Return on value standards are notconstitutionally
required and are circular in the content Of rent
rwgg laticxr
,. N.O.i. s endard5 were upheld
a. Oceantode M_N.P. v. City of Oceanside
b. Pales Vbrdes Mobile Estates .. City df Los Angeles
�. Ootatl r.8so
a. return on investoont standard nuit o.:jus: to
consider the effect inflotign
rent regulations mar not frite:e 4.0.1.
r.. Agencies arr not required to "so a specific forsi.la in
egulating rents. St long a, :he result is constitut.odail.
ceptable
n. r
- oatro: laws that indefinitely Keccc the s Affeunt
C•f14.0.1. a colflscatory oh this a tstltu'lonal
K. a-educticrrlrolue is not r. 11"11catery. put inc.ttwla
wi.n regulatior
The Hoa-d tail a Areal frca. '<C - . a.
J9iRRS
bioute5 - tL:l O/9t
vase 5
'. G IFFEFE'J: S C- FCf Y,t)L:+S
t Pppropr I aty F:ar Fctyrn Form; C_r t.et I, Ivn harms,
ab Ject A ve
... of he ma.kipelatd
..� _ .....
.. __ .., ,.,. tr„. a......,. .In. .r.. a,
p.0 ,J....... .. .... .....
Pet
A.rftr.is ISCmI _ ., .n o reyelu�tocr
eyolate •h.
B. tills ay, slnny-t<
' Many a:f M. aestn•,I.rs- :.,J :AAdto
atl Justiny r .tiler the,•, ait la•ng them
D. ayenciri., .... ... tune up wit, .• /.F.F. that c. tf,11
_ R_ytu-n_____
_.•___
-10- , - di• a•d ny e,.. I
nm
B. a 4f•wr:d rent. bol.1 det<nrm...,e
C. lab�ectl .e ,t,rdarai^•"hat Is
0. . ill have t� daltrmir•e _. rate ..i•r •.. �.. -..
., Maa_r_tonancn of 'jet OneteLLn_ia Inconn
woes no[ Icol a. 4fivastwent
P. does not Ioot .t rate 0; return
C. joedu at the return t1. 0. At i nde r,j
O, th:s I abase Year foriml:a s it perpet..r ... ....
Stec: with ill, base , p,u.:
owner ise
s low, he is penaiited -- if hiebaso r.. m
1.
rewarded
E. the Inherent I :t/ in the n.9.0.1.
addressed by estaGll=hlny n nim nun % base ..
tc
income, Iatim
F, yr owth In the N.r.:. should :e Ilet to
I wane. i ny se,h a. CFI, and should dera:I All th•, % ..I
uSao
foe autumata aa:Ju•.tmen;s
nr. Bier E nei
'1 aC Cdtl Wl - oper.00-up the di GtlASW Cn
to questionsfrOM th✓Po.. di Me Pond re,pondeal with quastionA
lny the fuiluwu y n+p: c:: n h .Jlue approach: wach CFI
to oseo n. 4. o.t fnr11.,1- J E.< hCw rent Comb" affects
new A r. e'a tmer.t- .• . I. Nf ,.r_._ ( I the Cafe Rar bores
pr c':I a en ncn ..
parr .:Ia lrt .t. -. ry t'. Cm at
nM Ang o ent debl l l: tl.n. ordlnanue at oblectirt a ussib:e..
wh: IlirrSider ny .:y .• near IIy OffI raU.er Lh.vl the
Bo..ra, to dell) wlt:l t:'+ r.m4ni3tratl..n of tIe
.. L._JnIIFH: 4:55 p••,..
2Z
j city of sAn leis oi3ispo
bn;t 9,0 Palm SnN11PM1 O14q Box 8100- Sin Luis Odfpo. CA soup 8lM
TAPE *I
M I N U T E 5
MOSILEHOME RENT REVIEW BOARD
JANAURY 22. 1987
j'gLCDHE/INTRODLCTIONS
Chairpin-son Pat Barlow called the regular meeting of
the npbil Mom Rent Review Board to order at 2:410 p.sl
with the fallowing in attendance:
60MOMEHBERS; Barlow. Orden, Wright
STAFF: Henderson. Guyre-Powell
II. APPRQ_VAy,-OF nINUTES
The minutes Af the meeting of December 18, h96A were
approved as mailed by consensus of the Board.
i I I. RFaVICW--OF EKtilT
Mr. Henderson r ,:awed the Contents of the Racist
presented to the Board. including. 1. Report from WA
an 'Fair and Reasonable Return't 2. Oedlnances from
other cities: Z. Minutes: 4. Letter from Mr. and Mrs
Nieces roe status of RV in Oceanatre nisi 5. Letter from.
Leata Rubottan and Paul Beaavahs, b. Correspondence
between City Attorney Piewilt And Mr. Fenderson: 9.
Staff report to Starlit a. Staff report to City Council
can Silver City appeal; 9. Dutlene o: issues An.'
suggested procedure for the current meting.
S'. CONSIDERATIOI_ OF ADJDSTME!..._5 TO_THFtRFa 41 ZABtyI3ATIOw
O RMANN
Chairperson Barlow read the outl)ne of issues
identified by Council es rewiring the Consideration of
the Bo.a"d. Mr. Wends eon Identified this List as i
guideline to be used by the Board in agreeing that
these issues were those that Council had directed the
Board to review. He reminded the Board of the CwhClI *i
f
HOBILEWD BENT REVIEW BOARD
JANAIIARY 22. 1981/PAGE 2
TAPE e2
directive that these !tams be considered and ready fair
presentation to the Council an april. As Such. he Was
.proposing tied addtttonrl meetings of the Board At. order
to meet this deadline: February S L J(• p.m.: and
February t9, Ii�' P.-N. Ha ra,ninded the Board that any
action on their part at this eaetiRg would require
]-g vote, and Mat sia,lw,
of the items or. the list would
merit consideration by th•• full Board.
The Board discussed the items on the list. Boardmember
Orden proposed adding appraaches` at the top of
the list. Baardaeser tat neyht dtsagraed. stating that it
s her understanding that the Counul wished the Board
to clarify the current eminence, and that any furtuer
.work would render the Board unable to meet the
Council's directive within the 90 day deadline.
Boardaembers Barlow and Orden discussed how additional
items might be added to tt'e list. such as 'now
approaches". S it was that, feeling that a new
approach might address the ttM4 on the Council's list
of Istaii,it.. Chairperson earlup suggested a memo to
Councilinviting feedbaei AM the possibility of addtng
consideration of "new .approaches-.
The Board, following cons,derable
discussix.
prloeitt_ed the items or the
list as follows: 1.
F-xmula based on nisei 2.
.-.fv he -bar; '. vacancy
decontrol/change of occur"
-. hethodologyt 5.
Leads tadded of DC3e'di: ,
.I, ties
Consunptt on/Allowance;
support; 8. CFI timing;
9.
:.sue 44 a Heating
Dif-..cer 'nedf aR oe .was added
_.elast informally far
Board study.
At this time. Cholrpersur.
F open.: the meeting for
public input on the .items
.. list.
PAUL-ESav_gts:tcreetside• fill..
,._.ed i vol.a•aeht in
i acititatinyldaal rig with
:.. po tatruig to Mamas
cwhor owned parka. thug a..
mua vy tn._ neec 4or a
Board a ordinance.
gy_yg_@LymgL: <Chu.nsab) L...
nent.d .het safe harbor and
vacancy Jecrntrol Mac tz..e
yctcntiel to destroy the
Ordinance. Distrusts leas.,
that i..ye been previously
presented by part owners.
4R3CLq}_6DDgx Concerned that tenant' not buying will
not be protected under tenant ownership of par.R. He
supports the piotaction of
thuse tenants under the
/a #
MOBILEHOME PENT ASWEW BOAPr
dANUAFv OZ, tgBl/POGE J
ordinance.
irY3Sa Ggba4iom: (Crao slde( Supports tenants Ueing
Protected under the ordtnai:o in torduS and CO -ups.
G.___ MgyT race: IGCeaMlf', SuppNt4 b :1CISion o' AVs
es adwrtified in the State vil Code under the
ordinance. Spoke a1 the v r•i
- of vacancy decontrol he
imposed in his part, prior to rent control. Feats he can
not offer a lease that «Gull provides more tenant
protection than tho ar din auce. so there's no incentive
for tenants to agree co a •ease.
gg_Ffg3npf (Creekside) wisl.ed clari±J cation on .what the
Scar would be considering under CPI taming on the
last. He felt that the issue of percentage of CPI
should be considered, as there was 'taking' of value
of the dollar from the prewar whenever less than 100% of
the CPI as allowed.
The Board recessed for a .a minute treat at Y T
At C:40 when the meetaug reconvened, Davao Evans of the
Western Mobilehone Association Introduced nimseli to
the Board. In response to questions from the Board. be
said that he felt the use of banding arbitration i
Lancaster and Simi Valley had worked to the benefit of
pa,: era. tenants and the cities. He gave a brief
dw scrapt i.±n of the programs, Boaedmembers Groan And
6a:o- as,ad to meet with staff to po-sue further
t uirrr a.ata ua about such programs.
There being no furthw comment from attendees At the
meeting. Chairperson Barlow closed the public hearing
ports on of the meeting. She re -capped her understanding
of what times the and:viduol, testafy.ng had
highlighted as being neussary for Board consideratiur.:
home-nunror o led parts shw.eld Le an�IudW:f aciL tn[ed
undd,tAv ordinance, a•a] tnet parew,tage of CPI should
be c atdered a well . CAI t:,ning. BeardeaMler Groan
rept'a:.A :.36 desire t0 lool At Othar systems for
t ag.l.a.elt nig 'Writ tabl l:: d ern,. and suggested
ontaGttny city m nigdrs IF. LanCa4ler. Simi Yatley and
RUJIu,, F•oar•Lno••arar Wright .riled that a written
.4 the fnf ur mabM gathered tbr'ougn those
salts- us presewteo to the F,aril.
The Board initiated discussaor. w. the :ssuw pf tenant
protection doting condominium cwlverm pn. Mr. Henderson
suggested observang bwe the Planning Commission's
conditions On the Chnmatib Conversion were implemented.
1:25
110811ENOHE RENT REVIEW 8t81RB
JAMWRY Z.. 1907/f'n.E a
TAPE Yi
Given the absence of two Boardmeabers. the Board chose
to proceed with issues which were perhaps lees
complicated than those on the list given higher
priority. The issue of CPI timing was d.sC Gsed both as
it pertained to increases granted during a+ app/icat.e+
procass and to establishing a. sartary Gat+ for
regular rent increases to be givenwithin each pe%i..
W. Henderson suggested that the natter of iCrease%
n
granted pursuant to a application be handled at an
administrative level, most likely 60 days following A
Council decision. or as stipulated by the Bortl during
the application process. It was the consensus of the
Boardmembers p esent that the policy on annual CPI
increases be that if a park ckwner should fail to apply
the allowable rent increase on an established
anniversary date, he/she Could not recapture that
year's increase in a subsequent year.
Ed Evans suggested to the Board Gnat park Owners be
notifiM in writing of the Board's decision On CPT
timing.
Mr. Henderson introduced the definition of A 'mobile
home- accordinq to state law that .would allow inclusion
of recreational vehicles meeting certain conditions to
be protected by the rent stabilization Ordinance.
Vcn,,Jmvabars Gruen and Wright had no ObJactiun to the
Staff rocnaxen.daGi on, but Chairperson Barlow expressed
c�fvt- about 010 trminOIOq'/. She understood Council
toe
be ,nterastad i spaces ♦n fiCbilehow parts rather
than ul what li resting W the spaces. Et was decl Jed
to. ton.tlnua discussion win WY s until the 101; Board was
present.
Thera was a or fef discussion on the concept of
Tenonl:9wnar Pent Stabali_atiau. Boardm..ntan W fight
e=p•esr-d :ntw, ast .n moro .ni..rmotion on ::n n. Nn.
Henderson rsl:ted this Concept to the Purposes and -
In r.i .A ti,e I."to pro`ect low .come tenants.
Crete. 1. inn eligibility coal.; be astabl2shed by the
Board, staff or the Hpusinq AathwltY, for e.fAmple. it
waY decided to postpone further d:riCu"%Uo Of {M1+s ine--
until tian a was a full comp:emont of the Pour J. w .
Henderson highligbtad the staff r v.P odat.Gn Of
k"lAties Consumption .and Allowau@e.N
The Board, after reading corespondlmce pertainang to
the Nice%' case and the action Of the City Attorney..
f�
MOBI:E11Or,E RENT REVIEW BOGRP
J4NOCRy ] . 1987!PAGE 5
tabled Further discussion Of this in order to See how
it would proceed.
V. NO]OURN
The meeting 'pi the tlobtl Pn Dine Hcnt Nga:ew Board was
adjourned at 4:30 P.M. The ne..t regular meeting will be
February 5, 1987, at 11:0 p.m.
a27
� L City Of Sdn WIS OBISPO
slorms t50 Palm waffimost office Mee Bul • San Luis Olds". CA 23401,0100
TAPE at
M I N U T E S
MORILEHOME RENT REVIEW BOARD
FEBRUARY S. 1087
WELCOMILIH18299911262
Chairperson Pat Barlow declared the regular aeet4mv. of the
M0411ehose Rent Review Board come to order at 1:00 p.m. with the
Following in attendance:
BOAROMEMBERS: Barlow. Orden. Label. Wheeler. Wright
STAFF: Menderson. Kemper
u . dppgov_n E_oE_g1MDTgs OP Ja NUARV 22 �_198T
The minutes of the Meeting of January 22. I987 were approved as
walled.
I I1. REVIEN OP PAC MET
Mr. Henderson reviewed the packet presented to the Board. which
Included: 1. minutes and Agenda: 2. copies of rent control
ordinances from the Cities Of Simi Valley and San Jose: D. list
of Issues priorities established At lest meeting: a. letter from
City Attorney to the Council. re: resolution of diepote in local
mobllehome park concerning the issue, of a recreational vehicle.
IV. CONS]DEMATiON OE ADJUSTMEVTv_19_TME_MgNT STAgI L1ZAT1Dg Ok01NapCE
A subcommittee consisting of staff And to, Boardaeaber8 recapped
for the audience the substance of their phone surveys with the
Cities of Lancaster. Rocklin. and Slat ValleY. This study Came at
the request of the Board at file last meeting. with the Intention
of educating the Board oncernie-O,e• ip: li[Ies experience
with the processes of mediation ano n .. r•t Ica The Board
desired to understand these alternative methods utilized by other
titles In a given rent stabilization program, so that they will
have a broad range of Information As they consider procedural and
MHHHH
Minutes - 2/3/87
Page 2
Iv. CUNStOERAj10N_oP_AOJUBjl1EN;5_jD_ IHE_ ga NT_STA Bl LIZATt OFI OgD1SAN CE
Ini
administrative
adJmmtmen is to the rent Stabilization orafnac :e.
TAPE 02
The board entered Into discussions on the Issues agreed upon at
the last meeting. item at concerned the consideration ur
replacing the present rent stnbillvatlun ordinance with a
w formula based upon tenant eeancale need. Possible guidelines (or
determining whether or not i tenant is ellglule for protection
under such a formula would parallel those standards set forth by
the state and federal government in the provision of their rental
subsidies.
The Board opened up the Issue to public Comment, and a total of
Four speaker* addressed the Board: Lents Bubottaa, ward Spencer.
OJCk Clark. and Jim Buttery. The first three listed ate residents
of various mobilehaae parks and -poke out agalnst the concept of
this new formula. Jim Buttery represents various parkovners In
the area and spoke 1n favor of this new
w formula proposal.
especially as It encourages long-term lease%. The Board closed
the Issue to public comment and began discussion aeons itself
TAPE 93
The Board returned to the matter of establishing Issue priorities
and found there was
et majority support far a new formula based
on tenant economicneed in the proposal's present fore. The Board
did. however. choose to pursue the matter at a letter date after
more Information was avallaale. The Board then moved to Item 22
on Its discussion list. the issue of Sate Harbor.
NOTION: -That the Board go on _re_card as fav_origg the Bafe Harbor
g gonept at a factoro of Of .bdg, plus prtectlen for tge ElIS2191iff
33,33% protegtgd as under Surrent state law." 14heeler. Omen] A
Yptcn vote .was taken with the following record: AYES-3. $AYES-2.
Notion carried.
The Board took a 10 minute recess from 3'. 30 - 3:40 p.m..
TAPE sa
The Board took up Item 03. Vacancy DeControl/Change of Occupancy.
The Board accepted Public comments From the fallowing: Leal&
euboteon. ward Spencer. .Ila Battery, and David Evans. The first
two folks. mabilehone residents. spoke out against the concept of
vacancy ho central being added to the Ordinance. The other two
speakers. representing porkowners. spoke In favor of such a
provision.
NOTION: 'To amend the 91alnano1 ajlawfng YagloCY Oegonfrol/Caanl
of OSSgpanSI at a factor O{ 92% apex thug aslstlng agaca rent,
w_Itn a aagdshtp esgluaton_ fgr agr_v121Bg 122BISJ'.IOrden. wheelerl
I �9
MRRRR
Minutes - 2/5/47
Pepe 3
tY. CONSIDERATION __
OF ADJUSTMENTS TXE_RENT_SjpBlLIZATION 0R03NARCE
(voice mad)
A voice vote Val taken with the following record: AYES-2.
NA YEE-3. Motion defeated
MOTION: -To amend the Ordinance an that any perk that has 20t or
sure
con a__ow_e_Q_
to praghtre
vnraesy neeon___l/ennn
the then ge of OcpupannY Cf<h a Incyor o[ 20t o yer
existing spare rent Ih the exfivalon fnreUrvlywn_
apouea_tOrden. Wheeler) After JUcuoion. notion withdrawn.
MOTION: 'That Rapanry oedanjr Dl/Ch nags aT 2999RSapy be bur In_4o_
flied at sat, wish the explua120 far surylying s_ganaea.'
(Wheeler. Ordent A voice vote was taken with the following
record: AYES-3. RAYES-2. Motion carried.
aMURN
The meeting was adjourned At 3:00 p.:m.. The nest meeting Is
scheduled for February 19. 1987 at 1:30 p.m..
1-30
GIL I of son WIS OBISp0
99g Palm SIMMIFOR OI I¢e Box BIM -San Lon OOnpq CA ISOM SIM
9 1 N O T E S
MOBILEMOME RENT REVIEW BOARD
FEBRUARY 19. 1981
TAPE of
[. wY�LCOM E/fMTj0 eBCiiBMB
Chairperson Pat Barlow declared the regular meeting of the
Mobllehoae Rent Review Board case to order at 1:OOp.m. with the
following in attendance:
BOARBMENBERS: Barlow, Grda.t. Label. Wheeler. Wright
STAFF: Henderson. gemper
[i. AP PROYA4 OP THE MjHUTES OP FEBFf1AgY SaJ98'!
The minutes of the meeting of February S. 1987 were aPProved as
mailed. Chairperson Barlow requested that the Board direct staff
to -clean up the language- of the VAncancy Oeeontrol motion made
At the Previous getting wh n the Board send% its recommendations
to the City Council. Staff was so directed.
1 11. REVI EW_OP TNF._PAc%ET
Mr. Henderson reviewed the Packet presented to the Beard. which
included: I. minutes and agenda. 2. mesa from NBC staff to
Chairperson Barlow. re+ Intone al/glbi/ity levels concerning
Housing Authority rental assistance Programs. 0. reports from
Boardarnbers Barlow and Gross. re: trip to city of Lancaster to
research their experience with mediation and arbitration: a. info
packet forwarded to Board. To: changes In the law affecting
mobl Fehomes/residents.
Iv. CONS IDEEE 5T10H_Oy_494 UBTN F.YTS_TO_TNE_BlNT_ STABI LjZAT10N_O Rp IMANCE
The Board picked -up from where it concluded at the Liat meeting
regarding the issue priority list. The Board began discussing
nethodOInCles. Particularly the Maintenance Of Net Operatlne
Income formula. Staff recommended to the Board this formula. but
e.notionrd then against recommending to the Council a strict
131
MHRRA
Minute" - 2119(07
rage 2
IV. COMSIBERATIOH OP_gOJOSTMFa pT5 -O_TME PENT_ STA RISlZATfBp_Opi1j NA MCE
(continued)
inteipre t a:l an of in is torso In Staff also suggested that the
Board reject the concept of mandating the use of a single formula
In de teratn Ong a fair and reasonable rule of re t ato.
Mr. Jim Buttery, atttorney for various local park u
addressed the Board Concerning in-- M N.h 1, la r au le Y11 Mrs buttery
said he could support the general methodology of tbu formula if
used with a certain degree of flexibility. He favored the idea of
the al -automatic' pass into of certain actual cast Increases
to then residents of apark. This WAY. he reasoned. park owners
would net have to come to the Board with aeherahahlp'
a PPI!cntion every time their tpark owners') operating costa
Increase.
The Board. by consensus. di acted staff to develop language
recommend Ing to the Coupe II that they incorporate the it.N.a.I.
formula, with flexibility. Into the gent Stabilisation Ordinance.
TAPE 22
The next Issue to be discussed by the Board was lane -term leases.
By consensus, the Board decided not to olsauaa the Issue direct
because they felt much time would be spent without success. it
was the Board's fteling that a Bare constructive approach would
be to stimulate the signing of long-term tisanes In an E-direct
manner. That Is. the Board seeks to modify policies which they
find to be Inhibitors to long-term leases
A third Issue to be discussed was the concept of a new formula of
'tenant rent stabilization based on need.- Such a plan would
Involve Implementation only after a certain percentage of the
residents of a given pnrk are on long-term leases. if such a
Provision was met, then Only those residents who meet the income
eligibility requirements would be prntecied or subsidised regard.
their spate rent. The Board asked questions of Mr. George Marlin.
Executive Director of the Mousing Authority of the City of San
Luis Obispo. Mr. Marlin explain the various. programs Inaction e
and voucher) provided by his agency. and stated that a
Significant number of vouchers were available for mObllehome
residents.
TAPE sZ
The fourth Ilea to be discussed by the nuard was the issue of n
utilities consumption allowance. Staff recommended to the Board
to develop language to tie the water Allowance and metering to
the existence of long-term lrasrs The Board opened up the
diseusslnu to public comment. Foot lam speakers uddraxsed the
Board 1. Mr. Bennie Law: 2. Mr Ed Evans: Ms, May Morris: and
Rick Clark The first two speakers nun or rrprexent want "hear,
1--3z
all Beg
Namore h - zr l➢/NT
Page 3
IV. CONSIDERATION of ADJUSTMENTS TO-THE_NENT_STABILi EAl1ON_OBOINANCE
(s and and the other two apeakerz ern Dark residents. The iesrtl
gachedff.l sawed thensuzEas aY how t nr.ey she habout g'ou[ er utllltlpa
stet( nithe eoerd to
they hat about a cone«Board In parks
fraa s of
aestlble T.V. to vCan its a rYleex. The Board 100 a
Mashes cr do aton which Can .n11' he ed vp«cir le
data t Their avalla bla. The Board confer
w itrd Thew twteertrs cants
•rt [hoar right to meet cAndase
n(er eemY the re. ud Sllnx
the ldr by h ndY d. It sta cso sag Agreement astoear this KI.
should by handled. se r also nclude ed That [he sei'v., to
a survey which themselves re conclude the type o. xption and In
channels which they Savor regarding television reception.
TAPE aH
The next Issue to be discussed by the Board was Idea of
contracting with an accountant or financial analyst who could aid
the Board In deciphering and forming conclusions About complex
financial data whim arises In the aPPll<atIOO hearing process.
Staff noted that the County contracts with a C.P.A. to meet their
needs in administering their rent stabilization ordinance. No
final conclusions were drawn. nor recommendations made. concern-
ing this Issue.
The Board took a 10 minute break from 3'40 - 0:50p.s..
The sixth Issue to be addressed by the Board concerned CPI
-timing. That is. the specific determination ea to how the Auto-
matic (annual) inflation factor shall be applied. Although the
Ordinance states that an Inflation factor cannot be applied more
than once in a twelve month period. ease argue that this does nut
preclude a park o n
r from passing o n inflation adjustment
twice in a twenty-four month period.if the owner Chooses to 40
At an earlier meeting. the Board concluded that the Intent of
the ordinance was for parks to pass -on the InflAtioll tnCfeaft to
space rent at annual Intervals. The Board will be recommending to
the Council a modification to the Ordinance reflecting this
Intent. specifying the inflation factor to be passed -on to
residents every twelve months or nor At all.
The CPI timing issue evolved Into a discussion concerning the
proper amount or percentage (75% or 100%) of the CPI that park
xBauld be allowed to apply To their space fonts. Two park
owners and three park owner re pre nen[ativaz spoke Ili favor of
modifying the Ordinance. which presently allows 75% of the CP1.
to allow 100% of the CPI to be applied to space rents. The Board.
by eonsenmus. continued the Issue 10 the m•mt seating.
TAPE 65
The next Issue concerning recreational vellcios was concluded
with toe finding that It .was the purpose and Intent of the
MIfRRft
Minutrx - 2.19/R0
Page •1
I V • CO_\S I U%ItAT 1t1M_d) _At1J11ST?IEXTti TU TiIf.RE T STAtt f L I ZAT io,r oRn I. A_C£
1Cnttt inurdI -
Ordinance to pruteet re!crr.ttso#n.tl vrhiCIe% also. Tltes ituard will
be recommending to the Cuunr.it drat the Urdinanrr. he asu#j1fied to
s.tkr it clr.tr that the' tl.te•111 ul tl►a ')rsitnanc•r wits to ptot.•ct
spaces. and tbus t••+cr.•at ittn.t l .I•ti le te%
The last iKxue to be disru>x,•.f w.#% 11►.st ..f 114•w aftproaclte•x Tilt -
Board is Considering mediat iuo and .trf,r t r.it son as methods to
snlve problr.m% aristnp, in the ndministratiun of the rent stabili-
zation ordinance Recently. BoArdmembers Barlow and Grden took a
field trip to the City of Lancaster to talk firsthand .with
various officials there to gain insight and feedback concerning
the success of their mediation/arbitration programs. Each Board -
member reported on their experience and information gained from
the endeavor.
V ADJOURN
The meeting sdjonrned at 5:00p.m.. The next meeting was scheduled
for Thursday. March S. 1987• at 1-90p a in Hearing Room 89.
I:
A n
ui
0 WES OBISI)O
somfl --
990 Palm Streetipost Office Bo: 8100 • San Luis Obispo. CA 93403•b100
ININUT FS
Mobile Home Rent Review Board
March 5, 19B7
WELCOME/INTRODUCTIONS
The meeting of the Nob:lehome Rent Review Board was called to
order at 1745 p.m by Chairperson Barlow with the following in
attendance
MEMBERS: Bar lcw. Grde t. Label
STAFF: Henderson, Guyre-Powall
REVIEW OF PACKET
Steve Henderson reviewed the Board's packet, including: agenda,
minutes, memo to park owners on --PI timing, an article fro, the
Los Angeleg Jour^al, March 3, regarding the San Jose rent law.
MINUTES OF FEBPUAR.Y 19
The Board made the following change7 to the minutes: That it be
clarified that Boardmember Wheeler acknd the park owners and WMA
representative if they warn aware of am4 subsidy orogram that
they could support, and :f so, could they b•-inp 10FL-oration to
the next meeting. They said they would dL• so. Jn Page 3,
paragraph S. that :t be added that tray hocr_s asked that
percentage of the CPI Ce continued to the ne::t meeting, sinze
residents were not prepared to comment on it. On Fage 3,
paragraph 1. that it be clarified that the Board had ccnettinsus
not to tie the utility Issue to long term leases, and that the
term "breaking our." referred to separating charges far ur.il:t:es
from the base space rent, contingent upon a rt.,durtior :•• that
space rent.
C71S i DERAT I ON OF ADJUSTMENTS TO THE PENT STAB I L 17.AT IOi: ORD I tNAN''E
George Moyland, £xecotsve Director of the Aousirg Authority,
spoke about the subsidy program for mobilehome owners. He tiaid
that :t Wa3 undcrutil:zed, and that the reasovi fcr ;hat was not
entirely clear. David Evans of the Westerm Mr,bilehome Association
spo..e to the concept of a par owner subsidy to the etiisting
nobitehnme Pent Review Hoard
Mlnutes(March 5, 1987
Pepe 2
TAPE a2
Section 8 program with the fund being administered by the Housing
Authority, who would establish eligibility. He suggested using
the Section 9 guidelines for income eligibility, as they
represented an accepted community guideline.
In response to Boardmember Label's questions, Mr. Evans said that
he'd like to see the program attempted on a voluntary basis, at
first, and if that didn't work, perhaps a City assessment on park
owners would be necessary. He described a program In Yuklpa.
George Moyland said he would administer the program with the
intarest from the first year's fond. He said that perhaps it
would be necessary For tenants to be surveyed to understand how
many would be interested and/or eligible for subsidV. There was
discussion around the required one year lease that the Housing
Authority requires that tenants enter into in order to receive
Subsidized assistance.
It was the consensus of the Boardmembers present that this
concept be brought in front of the full board as a part of its
overall package.
Kay Morris spoke against increasing the percentage of the CPI
allowable as a rant increase. Earl Ciaister spoke of the )Si
figure as n incentive to negotiation between the tenants and
park owners. Ocrothy Lightfoot objects to compounding the CPI
annually. Leigh W_llard recalled that the 752 figure was
established during a time of double digit inflation.
Boardmember Grden indicated that he favored a sliding scale CPI
based An the prevailing CPI figure. He commented that owners we'e
failing behind economically, and that was why theru were so many
applications. He proposed sliding scale: Where 1rFlation is
1-3%. 100% cf the CPf would be used; 4-5% inflation, 00% CPI;
6-10% inflation, 7S% CPf: 10% inflation or above. 66 2�3% CPI.
Boardmember Label said that he would net Favor 100% of CPI in all
cases, and that he was In favor of a sliding stele. He was not,
however, what scale he would propose.
Chairperson Barlow indicated her agreement with both the concept
or the sliding scale, .and Boardmember Orden's proposal.
It was the consensus of the Board that staff present a
recommendation that a sliding CPI scale be adopted rather than a
flat 75% Figure.
136
Mobile Home Rent Review Board
Minutes/parch S. 1007
Page 3
Chairperson Barlow described the trip to Lancaster. and the
ordinance's provisions For arbitration. She described the process
that the ordinance mandates the parties participate in prior to
going to arbitration. She answered some questions, and staff
noted that the ordinance was available For inspection at the City
Clerk's office.
TAPE a3
Bennis Low. attorney for Silver City, made favorable comments
about the concept of the Lancaster ordinance. He favored
particularly the requirement that tenants be represented by a
rmpresentativa group, that the process was shorter, allowed for
Formalized negotiations, and a step-by-step description of the
process is known by all parties. He Felt that perhaps an
allowance For an appeal to the full Board might be necessary.
Chairperson Barlow said that she'd like to sea the City go beyond
the state requirements for notification of the -tenant's
association is a park is For main. An intact association, as
suggested by the Lancaster ordinance, would Facilitate that.
Kay Morris indicated she'd favor the concept of the ordinance.
David Evans favored a blend of the Lancaster ordinance and a
subsidy program.
Chairperson Barlow read the 'relevant Factors- from the Lancaster
ordinance, and stated that owners and tenants alike thought those
factors were appropriate. Boardmember Label said he was
encouraged with the new direction of this ordinance, but was
concerned with a phasing in process. Boardmember Brden amid he
Favored the Lancaster model, and wouldn't like to sea a drawn out
phasing program. He would strongly rapcmmend that an ordinance
similar to Lancaster's as adopted. Chairperson Barlow recommended
the adoption of a Lancaster type ordinance with timing mechanisms
perhaps adjusted, and with a provision that the owners must
notify tenants or a pending sale of the park.
It was the consensus of the Board to recommend to the Council
that an ordinance similar to Lancaster's be considered as part of
the Board's Package.
TAPE 44 The Board took up discussionChang of a letter from Ladle RobottOm fang and
Paul reference
regarding changing the current r thannce's language
to reference fear return ne , commented
cotter then on gropertha
Roger change
might
City attorney, commenced on the pagainsti tee that
this e.Boe might bring about. Bennis Law spoke against that
problem Boardmember Label indicated that he felt that there were
problems changing the language.
3
mobile Home Rent Review Board
Minutes/March S. 1987
Rage H
Jim Buttery, attarney For park owners, made comments on the use
of the rB1Ol formula. urging Flexibility in its application. Be
Favored more Flexibility in the ordinance, or the Lancaster
approach. He thought a combination might require mediation prior
to coming to the Board.
Chairperson Barlow initiated mention of the surcharge definition,
and asked staff to define it.
U. ADJOURN
The next meeting of the Mobile Home Rent Review Board will be
March 19, and the Board will review its progress. Town Hall
meetings will be established an March 26 at two nobilehoma parks.
The meeting adjourned at Y: iS p.m.
/ 38'
„r city of son luis oBispo
frX,l valm sbeel/Pwl Olfice flog&Ca•san Wu pbbGo, CA aNa]efW
MINUTES
Mobile Nome Rent Review Board
March 14, 15B1
I. WELCOME/INSTRUCTIONS
The meeting of the Mobile Nome Rent Review Board was called to
Order at 1:4O p.m. by Chairperson Barlow with the fallowing in
attandence:
MEMBERS; Barlow, Orden, Label, Wheeler
STAFF: Henderson, WohlFord
II. REVIEW OF PAIDKET
Steve Henderson reviewed the Board's packet, which included the
agenda, minutes, staff report concerning proposed revisions to
the ordinance, and an article from the LCLS An alas DaLlu Journal,
March 12. 1287,0 regarding possible State Laglsiation to overturn
rant controls.
III. MINUTES OF MARCH 5
the Board made the following changes to the minutes: That it be
acknowledged that the wore "sure` was omitted from page 2,
Paragraph ], sentence 2, 1... no was not sure, however,...). on
page 3, paragraph 5, Chairperson Barlow also indicated a desire
to include a phrase which would recommend that park owners agree
to arbitration within a reasonable time frame, The Board asked
for the minutes to refer back to the Lancaster report. The
minutes were approved as amended.
34. CONSWERATioN pF ROJU MENT5.ID THE RENT STa6IL72AT1➢N ORDINANCE
Chairperson Barlow stated that the subcommittee, which included
herself and Uice-chair Orden, discussed the procedure For the
meeting, it was the recommendation of Vice -chair green to
discuss the staff report item by item. The Board agreed by
Consensus to pracmae in this manner.
Chairperson Barlow identified two interesting comments made
concerning the process for the current ordinance. First, the
127
Mobile Rome Rent Ravin. Board
Minutes- march 19, 1987
Page B
current ordinance does not provide any means For mediation before
the formal hearing begins. Second, the Board must determine what
a base rent is, and if that base rent is really reflective of
what the market rates were.
Boardmember Label identified two major issues before the Board.
The first issue is what the Board is proposing for the Rent
Control ordinance as it exists now and what possible changes the
Board is thinking about. the second issue is the new approach
and what other possibilities might exist for handling disputes in
the Future. Re also stated that he did not Foal that it made
much difference which ardor the issues were discussed. The Board
agreed by consensus that the order of dlacwssion of the issues
was not important.
The Board discussed the CF1 Issue. Boardmember Label said that a
sliding scale would be more equitable in some instances. He
recommended leaving it an open issue by rot inserting actual
umbers. He suggested leaving the actual figures up to
negotiation between the owners and tenants.
Boardmember Gcdon stated that the Board should completely change
the warding of the ordinance recommendation to make it clear cc
the City Council what the Board Intended.
$EFvp-Bennarsom encouraged the -Board to make 3 recomman atian-as'
an advisory body. Boardmember Wheeler agreed that the Board
should make a firm recommendation to the City Council.
Chairperson Barlow recalled that one of the major Factors that
was testified before the Board was that the lS% of CPI aspect of
the Sliding scale deterred some people From signing leases. She
also advocated making a specific recommendation to the city
Council.
MOTION: -That the Board recommend that the City Council motet
[he etitl i. g, CPi_Formula based an 100%_increase ug.to 5k of CPt
and over S8 of CPI be 8t 95k." f Crean, Wheeled This was the
Einat Formula listetl in the Staff Report with no changes as is
was written. The Board discussed the motion. Boardmember Groan
hoped that it would prevent increases From coming in Front of the
Board, and Felt it would also protect the tenants From abuses and
high inflation. Boardmember Wheeler demonstrated the two sliding
scale formulas with a hypothetical situation on the chalkboard.
,ape aH
Boardmember Wheeler came to the cc-clue:on that the two sliding
scale models were not much different, but the First model was
eaaiar to work out.
` 7�
Mobile Home Rent Review Board
Minutes- March 19, 1987
Page 3
A voice vote for the motion was taken with the following record:
AYES - 3, HAYES - 1. notion carried.
The Board wished to communicate to the City Council the basic
reasons For Favoring this model. Chairperson Barlow Felt it is
understandable. Boardmember Wheeler stated that it is equitable
and Simple to administer. Boardmember Orden stated that it
addresses the problems that the Board had been encountering.
The Board took up discussion of the Safe Harbor concept.
Boardmember Label was concerned about protections For the
remaining 1/3 of the residents who are net on a long-term lease.
Jim Buttery claimed that state law will protect them for 12
months.
The Board discussed the Section 8 program, and the possible
effects of the proposals an this program.
MOTION: 'That the Board recommends the Safe Harbor concept to
the City Council with a factor of 56 2/3 percent of the tenants
being under lease. and the Board would also recommend that in
datarminInp a b long-term lease a lease with tt local H U 0
ofF)ce would nt d toward the 56 2/3 percent factor of Safe
Harbor.- (Wheeler, Orden) A voice vote was taken with the
Following rscorl: AYES- 2, NAYES- E. notion failed.
Yf+e Beard E aora dS by consensus. -Ea TetdifEt[m-Ch±-dClgIMar- "-----
recommendation.
Upon Boardmember Orden's suggestion, the Board agreed to change
the 66.66k number to 66.67%.
The Board discussed the Vacancy nemntrol/Change of Occupancy
issue. The Board agreed by majority to submit the original
recommendation to the City Council without any Further changes.
The Board took up the Recreational Vehicles issue. Chairperson
Barlow stated that the intent IF the recommendation.was to
Protect Spaces that may contain recreational vehicles when they
are used as a residence, as opposed to recreational vehicles that
are In Storage; and this last part should be added to the
recommendation. The current ordinance says that a space occupied
far twenty (20) days 1e Protected and stated law says nine (S)
months. The Board decided to leave any determination to the City
Council. The Board agreed by consensus to submit the
recommendation concerning recreational vehicles with the change
suggested by Chairperson Barlow.
The Board discussed its request for additional staff support
Mobile Home R Review Board
Minutes- March 19, _SB7
Page 4
Tape M3
ape 04
Steve Henderson informed the Board that the recently submitted
budget for the next two fiscal years includes requests for
allocation for additional staff support, as well as a financial
analyst/accauntant. The Board agreed by consensus to endorse the
recommendation to the City Council.
The Board discussed the Water/Utility Allowance issue.
Chairperson Barlow stressed the meet and confer process. The
Board agreed by consensus to adopt the recommendation to the City
Council.
Chairperson Barlow read alcue the Tenant Rent Stabilization Based
an Need recommendation.
MOTION: "That the Board delete Rent Stabilization Based on Need
from the recommendations to the Citu Council." (Wheeler, Grden) A
voice vote was taken with the following record: AYES-`f, NAYES-0.
The Board discussed the recommendation concerning Fair and
Reasonable Rates of Return. For clarification purposes,
Chairperson Barlow suggested switching the order of the second
and third paragraphs in this section. She also wanted to point
out that there are many different ways of calculating MNOI. The
Board agreed by consensus not to recommend any particular method.
The Board decided to determine a base year for MNOI.
MOTION: "That the base near for purposes of MNOI be the
computations for the wear ending December 31_,1SBi." (Barlow,
Wheeler) A voice vote was taken with the Following record:
AYES-4, NAYES-0. Motion carried. The Board further agreed bg
consensus that the date also applies to new owners.
The Board agreed by consensus to leave the Leases recommendation
as it stands.
The Board took a IS -minute recess from 3:30 - 3:45 p.m.
After the Board reconvened, t:7ere was some discussion about the
time frame For mediation, and whether or not the meet and confer
provision in the Civil Code is adequate. the Board decided not
to make any recommendations.
Boardmember Wheeler suggested adding to the ordinance a statement
which would encourage or mandate mediation prior to bringing an
application before the Board.
MOTION: "That in the case of a rent. ;ncrease,tenants must
respand re uestiM_mediation within_ten (10) daUS bg indicating
that there is a majoritu that.disagre_and want to meet and
confer within ton�(101 more de
ay'_ and no later than twenty (20
days after a_rent increase has been_ppsteC, and only in.case_s_
which exceed the ordinance." (Grden, Label: A voice vote was
taken with the fallowing record AYES-`i, NAYES-0. Motion carried.
Mobile Home Rent Review Board
Minutes- March is. 19e7
Page 5
After acme discussion, the Board directed the staff to develop a
definition of 'surcharge. -
The Board agreed bu unanimous consensus that the recommendations
and changes affected by the Board are acceptable for submission
to the city Council.
U. OTHER BUSINESS
The Board discusned the adoption of a Lancaster type of ordinance
for the City of San Luis Obispo.
Dick Clark voiced opposition to arbitration. Dick Miller
suggested separating CFI from the hardship cases.
Tape a5
Boardmamber label stated he favored a new approach to getting
people on leases. He stated a need far guidelines, and he was
concerned about the costa of attorneys' face. His suggestion was
to restrict or eliminate the use of attorneys in the arbitration
process.
Ed Evens claimed the Lancaster ordinance system forces the park
owners and the residents to work out their issues before it gets
to arbitration. The uncertainty Factor causes this. Each aide
wants to settle it because they are not sure what the outcome
will be. Neither side will risk losing in arbitration for an
"LFfy" case.
The Board Further discussed arbitration and its effects on the
park owners and the tenants. Boarmember Label was concerned with
the costs for both sides. Beardmembers Wheeler and Grden spoke
in Favor of an arbitration ordinance.
MOTION: "That the Board accept tbs recommendation as it is in
writl no end as it Appears _±rt Ghe_a[efF_ report ±A_paregraph 4
unAar Che heeCxag_cE Naw Approaches.'" (Grden, Label) n voice
vote was taken with the following record: AYES-h, NAYES-o. The
motion Carried.
Chairperson Barlow felt that a phasing plan would be difficult
for the Board to administer. She recommended Leaving it up to
the City Council. The Board agreed with her by consensus.
The Board discussed methods to gather larger audiences For the
next meetings.
Tape 46
Wi. AO_'CUPN
The next msetirg will be hold on march 26 at Creekside Mobile
Home Park, and then at Colonial Manor. Chairperson Barlow
adjourned this meeting at S 25 p.m.
-113
:t City Of San WIS OBISPO
Mpalm stumilPpfl Olima BOX Elm.San Lvls OaiPa CA 9NOJ afta
MINUTES
Mobile Rome Rent Review Board
March eS, 1SB7
WELCOME/IN—TM 00CTI9NS
The meeting of the Mobile Home Rent Review Board held at
Creekaide Mobile Home Fork was called to order at 1140 p.m. by
Che irperson Barlow with the following jr. attendance:
MEMBERS: Barlow, Orden, Wheeler, Label, Wright
STAFF: Henderson, Barton, uohlfard
Chairperson Barlow introduced the members of the Board and the
Staff to the audience.
It. APPROUAL OF. MINUTES
T' minutes from the meeting of March IS ware not available to
the board at this time, so they could not be approved.
j 3t. REV (Eb OF RELOMMENO.ATIIYLa/PUBLIC ZEST m00NY- - -
Chairperson Barlow reviewed the history and current problems of
the present ordinance. She stated that tensions between Owners
and tenants are still high and conflicts are increasing. The
current ordinance fasters animosity, because it creates an
adversarial situation between the two groups.
The Board and the City Council held a Joint meeting in December
to discuss the current problems, and as a result of that meeting.
the Board was charges with the task of making recommendations to
the Council. The Board has developed some final recommendations
to submit to the City Council which are major changes to the
current ordinance. The Council can either adopt, amend, or
reject the Board's recommendations.
Chairperson Barlow stated that the purpose of this meeting was tt
share the Board's recommendations with the public and to answer
- any questions concerning them.
Chairperson Barlow pruceeaed to review the current orG.naOCe
clause by clause with visual ai.^.s to assist t" audience.
— / C
Mobile Home Rent Review Board
Minutes- March 26. 1987
Page 2
Chairperson Barlow then outlined the Boa.d's recommendations to
the '-'its Council for the now arbitration ordinance. She
explained the relevant factors involved in arbitration. She
emphasized the importance of change *8 in the arbitration
criteria. "reasonable rate of return."
:n response to a question cram Paul Beavais, Chairperson Barlow
explained the costs of arbitration to the audience. The American
Arbitration Association quoted the Board 5500.00 a day for a two
day period.
chairperson Barlow explained the reasons the Board Favors the
Lancaster ordinance. The length and expense of the hearing
process for both sides would be reduced. The arbitrator has more
expertise than the Board in rent matters. It gives a reason For
dialogue between the two parties. Each side receives equal
opport0nity, and has equal dignity. There is no doubt about
representation of the majority, and no doubt about who speaks
with authority for the coach owners. No city employees or
volunteers are involved in the process, and the decisions are
made by qualified and experienced professionals.
The Board answered many questions and heard concerns from the
audienrp about the ordinance and the proposed recommendations.
In response to a question from Paul Beavais, Chairperson Barlow
and the Board agreed that the adoption of a Lancaster type of
ordinance would end the operation of the Board. Again, to answer
Mr. Beavais, Chairperson Barlow told the audience that copies of
the recommendations would be available to them, and she asked
them to keep checking with Steve Henderson, since they were not
yet ready in their final ."'arm.
Iv. OTHER 2USANESS
Tape n2
Scardmember Wright a<presseC der concern that nut much
information was gathered by the Board on the Lancaster ordinance,
and few members of the audience were given information. Reading
from a report cn the Lancaster trip written by Boardmember Grden,
Buardmember Wright expressed her opinion that the phrase, "The
Council is anti -rent control," indicates that they do not care
about their people. She further expressed her minority opinion
concerning the Lancaster Ordinance in opposition to the remainder
of the Board.
Roardmember Gruen responded tc Boardmember Wright's Comments. He
stated that adequate information was obtained. He also stated
that an anti -rent control stance For the City Council is
irrelevant to their concern For the people. He attempted to
Further refute tier contentions.
1. y5
Minute Rove Reno Review Board
Minutes- March 26, ISBT
Page 3
Chairperson Barlow pointed Out that the cost of arbitration
versus the costs OF the current ordinance is an important issue
For the people to consider. She is concerned that the people get
the best value for their money, and to their own satisfaction.
Boerdmember Wright expressed her concern for the cost of
arbitration. Boardmember Label restated his idea of barring
attorneys From being present at arbitration hearings.
Boardmember Wheeler stated that the existing ordinance sets up an
adversarial situation between the pack owners and the coach
owners. He identified two advantages of arbitration. First of
all, it would Force the two parties to sit down and settle their
differences together, because they would both fear what might
result from binding arbitration. Secondly, it would take the
Politics out of it. No political bodies would be involved.
The Board Fielded more questions and concerns from the audience.
Communication was a common topic. The Board's recommendations
are final, but an opportunity exists for Further public comment
at the City Council meeting April 14.
BOardmember Wheeler discussed his experience as a witness in an
arbitration hearing. He recalled that the issues were quickly
resolved.
U. RECESS
After several more public questions and comments, Chairperson
Barlow recessed the meeting to Colonial Manor Mobile Nome Park.
The meeting was recessed st 3:OS p.m.
Tape 03
WELCOME/INTRODUCTIONS
the meeting of the Mobile Rome Rent Review Board Was reconvened
at 3:30 p.m, at the .Colonial Manor Mobile Rome Park with the
following in attendance:
MEMBERS. Barlow, Orden. Label, Wheeler
STAFF: Henderson, Wah1ford
Chairperson Barlow introduced the members of the Board and the
Staff to the audience.
f!. APPROVAL OF MINUTES
I43ro iM£e n0 alnvtes r0 a00rove.
.r Minutes- March er
ch 26, 1997
Pogo- 4
III. FEVIEW OF RECONN2QATI0NSIPU3LIC TESTIMp1Y
Cheiroerach Harlow again reviswe' the history OF the current
ordinance and tla. proposed recaca.cndstions
Steve Henderson explained the -Utlllties- clause aF the
recommendation to the audience.
Some discussion o^curred between the Board and the audience
concerning the San Luis Obispo Housing authority and the
Section B program For rent assistance to mobile home owners.
There are. some 'slats' open for mobile home owners only.
Park owners have offered to contribute to a fund, which would
be administered by the S.L.O. Housing Authority, to amulet
an a coach owners to peg their rent..
Chalrperson-8nriw concluded that the Lancaster Ordinance is
doing what the city desired. It is bringing peopl.]gather, it
is lessening torsions, It provides a reason and timing For
dialogue, each side has equal opportunity and dignity, and the
arbitrator determines Fair solutions.
IV. OTHER BUSINESS
Boardmember Wheeler stated that the Ray to a Lancaster type OF
Lly_papu
to communicate with each other, and this is an important element
In resolving differences. Each aide will be Forced to meet
because of the uncertainty OF what they might lose.
Bcardmembev Label stated that the Board Is unanimous in their
desire to reduce some of the tensions between park owners and
their tenants. the Lancaster Ordinance provides a new approach
to deal with problems. He Favors adopting a Lancaster type of
ordinance.
Boardmember Orden stated that the Board has done 1.9reat deal OF
research an the issue. In his view, regardless of how enjoyable
the experience of being a Hoard member has been, he feels that
the arbitration .concept to better than the current process. He
Eeeta it is mach cheaper and Faster.
a member of the audience posed a question wandering what to do if
a homeowner association does not exist. Chairperson Barlow
replied for them to form one. It was acknowledged that the
residents at Colonial Manor Park have an agreeable situation
compared tr other parks, Chairperson Barlow assured the audience
that the proposed ordinance would not alter the situation for the
residents or the park owners. The Board ansi•ered several other
questions ern: ;heard comments from the audience.
1-`7