HomeMy WebLinkAbout06/02/1987 Item 3 - Consideration of amendments to Mobile Home Park Rent Stabilization Regulations replacing the Rent Review BoardMEETING DATE.
o sAn LUIS OBISPO .Tune Z, 1987
ITEM WJJBER
COUNCIL AGENDA REPORT -- - - -
FROM:
Steve Henderson Assistant to the City Administrative Officer
SUBJECT:
Consideration of amendments to Mobile game Nark Rent St;tbi t ir.;ition Regulations
replacing the Rent Review Board with the City Council and review of additional
modifications to the existing ordinance.
CAO RECOMMENOATiON:
Adopt ordinance amending the Mobile Home Paris Rent Stabilization Ordinance to
substitute the City Council for the Rent Review Board. Direct staff to return
with specific recommendations concerning other modifications to the Rent
Stabilization Ordinance.
P.00 . el l/Il Id
On April 14, 1987, the City Council reviewed the recommendations by the Mobile Home
Rent Review Board. Staff was directed to prepare amendments to the Mobile Home Rent
Stabilization ordinance replacing the Rent Review Board with the City Council on an
interim basis. Staff was also asked to explore further issues including: 1)
Methodologies for determining a reasonable rate of return; 2) Water meterini;turility
allowance; 3) Consumer Price Index; 4) Definition of recreational vehicle; 5) Rent
Control based on economic need; 6) Mediation; and 7) Hearing officq•r procedures.
Staff has explored four of thest issues and has presented them for the Council's
review and recommendations. Staff will return to thL Council with the remaining
three considerations and modlfi,�atlons to the ordinance.
The four issues the Council is presently being asked to consider are: 1)
Rethodolcg'.es for determining a reasonable rate of return; 2) Nearing officer; 3)
Consumer Price Index; and 4) definition of recreational vehicle.
The three remaining issues to be returned to the Council are 1) Rent Control based
on economic need; 2) Mediation; and 3) water metering/i'tility allowance.
The City Council will find attached to the staff report an analysis of nine local
jurisdictions with rent stabilization. This attachment was intended to assist the
Council in exploring further matters of local concern with other cities and
counties. The entire text of each rent stabilization ordinance is in the Counc.il's
reading file.
Amendment to the Mobile Home Park Rent Stabilization Ordinance replacing the Rent
Review Board with the City Council
;s,, -.- Council meeting of April 14, staff was directed to prepare amendments to the
mobiit Home Rent Stabilization ordinance replacing the Rent Review Board with the
City Counci- on an interim basis. Attached is the ordinance amending the Mobi12
Home Park Rent Stabilization Ordinance as requested.
t;ii�q►'w ii!hljli►ai 9; city of san luis owpo
COUNCIL AGENDA REPORT`
Staff emphasizes these amendments are intended to be an interim measure for use
until the Council reviews additional modifications of the rent stabilization
regulations including consideration of a hearing officer.
Methodology for Determining a Reasonable Rate of Return
There are five major fair return standards for determining a fair and reasonable
rate of return. Each hay advantages and disadvantages. The most commonly used fair
return standards are: Return on Value, Return on Equity, Return on Gross Rent.
Percentage Net Operating Income, Cash Flow, and Maintenance of Net Operating Income.
An article published in the Rutgers Law Review and authored by Mr. Ken Barr is
available in the Council reading file.
Cash Flow Standard
Essentially, the Cash Flow stai.-iard maintains that a landlord is entitled to rents
which are sufficient to cover operating expenses and mortgage payments. The formula
would read as follows: gross rent equals operating expenses plus mortgage
payments. The variables considered in the Cash Flow standard include operating
expenses and mortgage interests.
Under the Cash Fiw standard, fair rent is largely determined by the owners'
financing arrangements, since mortgage payments are included as a variable. when
such formulas are used, owners of parks of 'equal value" who were charging
comparab_!, rents prior to the adoption of at controls may be allowed to charge
differing rents because of the differences :n their mortgage payments.
:cities of the Cash Flow standard feel that if the purpose of rent control is to
regulate rents, then the use of the formula opens the rent setting process to
manipulation by those who are regulated. Formulas which include debt service as an
expense in effect let sellers, purchasers, and lenders determine what rents shall be
permitted. To this extent, Cash Flow standards defeat the regulatory purposes of
rent control.
Despite shortcomings, the Cash Flow standard has had appeal to legislators and trial
courts, because it guarantees that no landlord will be forced to operate at a loss.
Return on Equity
When the Return on Equity standard is used, equity is usually defined as cash
investment. The cash investment includes the initial down payment plus principal
payments. The Return on Equity standard formula reads as follows: gross rent
tequals operating expenses plus mortgage payments plus return on cash investment.
The variables considered in the Return on Equity included operating expenses.
mortgage interest and cash investment.
city of San Luis OBISPO
Nftrmi COUNCIL AGENDA REPORT
The Return on Equity standard goes beyond the Cash Flow and Return on Gross Rent
standards by providing for a return on the owner's investment. as well as covering
operating expenses rnd mortgage payments.
Because the Return on Equity formula takes into consideration both the mortgage
financed and cash investment portions of a property owner's investment, fair rents
for landlords who pay the same price for a park will be comparable. even if the
sizes of their down payments vary substantially
By assuming that rents will be adequatt to cover mortgage payments and provide for a
return on equity, the Return on Equity standard in effect guarantees that any
investment will be reasonable. Owners who pay the most and get the high 4t interest
rate mortgages are permitted to charge the highest rents. This may be pe reived as
defeating the purpose of rent control regulation.
Despite its serious shortcomings, the Return on Equity formula has ha,' widespread
appeal. Both tenants and landlords often believe that the landlord is entitled to a
fair return on cash invested, and investors tend to measure their rate of return in
terms of return on cash investment.
Return on Value
Under a Return on Value standard, an owner is entitled to rents which are adequate
to cover operating expenses and yield a specified rate of return on value. Mortgage
interest is not considered a!- an expense, since the rate of return is calculated on
the full value of the property, rather than on the owner's equity.
The formula for the Return on Value is as follows: gross rent equals operating
expenses plus return on value. The variables considered by the Return on Value
standards are operating expenses and value
The chief conceptual failing of the Return on Value standard lies in its
circularity. The use of a Return on Value standard in a rent control context is
circular because the value of a mobile home park is normally determined by its
projected income. Therefore, when rent controls govern what rents may be charged,
they determine the value of the property.
Estimates of fair market value by appraisers, assessors, or rent control boards are
highly subjective. Because such valuation prohlems exist, fair return hearings
become expensive debates over value.
Federal courts have concluded that the Return on Value standard is conceptually
unsound in a rent control context and have rejected the view that a fair return on
value is constitutionally required. In the past few years, however, several
California trial courts have held that owners are constitutionally entitled to a
fair return on the market value: of their properties.
ity of San Luis OBISPO
0111ING8 COUNCIL AGENDA REPORT
Percentage Net Operating Income
Under the Percentage Net Operating Income standard. a rent increase is warranted if
the net operating income from a property is less than a designated percentage of its
gross rental income. The purpose of this standard is to provide landlords with a
guaranteed minimum net -operating -income -to -gross -rent ratio which will provide
adequate income for debt service and profit.
The formula reads as follows: gross rent equals operating expenses times i fixed
factor representing an established rental income. The variables considered in the
Percentage Net Operating Income standard include only operating expenses.
There are major advantages to the Percentage Net Operating Income standard in that
it avoids the circularity associated with Return on Value standards and avoids the
owner's particular purchase price and other financing arrangements.
The primary disadvantage of this standard is that it establishes a uniform
net -operating -income -to -gross -rental -income ratio as fair, when., in fact,
net -operating -income -to -gross -rental -income ratios vary widely among "classes" of
properties.
Maintenance of Net Operating Income M01
Under the Maintenance of Net Operating Income standard, owners may obtain rent
increases which are adequate to cover increases in operating expenses. Fair net
operating income is defined as the net operating income that a property yields
during a base period.
The MNOI standard formula reads as follows: gross rent equals base date gross rent
plus current operating expenses minus base date operating expenses. Variables
considered in this standard include operating expenses. base date gross income and
base date operating expenses.
From a conceptual point of view the MNOI appears to be the only return standard
which is consistent with the general policy of tying rent increases to landlords'
increases in operating costs.
The MNOI avoids circularity as-ociated with Return on Value standards and it does
not base fair return le%-els on the particular purchase price, investment or
financing arrangements of the owner. It also offers the most reasonabie type of
incentive for increased operating and maintenance expenditures, a dollar -for -dollar
passthrough.
����4 i►lliUl �'"'� III city of sari WIS OBISpo
COUNCIL AGENDA REPORT
Indexing Net Operating Incocae
The principal issue associated ,lith t.ie use of the MNOI standards ha-. been the
question of what types of adjusta.�nt_, if any, shp,ild be made for inflation in
defining fair net operating income Some MNOI standards provide for maintenance of
base period dollar net operating incomes, without any adjustment for inflation
subsequent to the base period. Other jurisdictions have adopted MNOI to
gross -income -ratio -standards. or have provided for full inflation adjustments to the
base period net operating income.
An intermediate choice to the foregoing alternatives would be to adjust Dase date
operating income by a fraction of the inflation rate. Despite the fact that a
partial inflation adjustment may be the most reasonable approach consistent with the
purposes of rent control, most jurisdictions which have used the MNOI standard have
either made no adjustment for inflation or have provided for a 100% adjustment.
Some mobile home rent control ordinances have adopt^d a fair return standard under
which net operating income is permitted to increase at 40% of the inflation rate.
Some allow up to two-thirds of the inflation rate.
One criticism of the MNOI standard is that the presumption that base period rents
yielded fair net operating incomes penaliza owners who have been charging below
market rents by establishing a low base -period -net -operating -income level. A common
approach to dealing with the inequities caused by this presumption is the
establishment of exceptions to the presumption.
Exceptions are typically made for situations in which capital improvements made in
the year prior to the base period were not reflected in the base period rent. Other
peculiar factors may also be considered as a basis for an excepticn/adjustment
Summary
The Council will need to review the five major fair return standards and
determine whicn formula they would like to see utilized when hearing an
application for a rent increase.
Presently, applicants have presented several or all of the fair return
standards to the Board. This method was time consuming and often times
confusing.
The Mobile Home Rent Review Board has recommended that the MNOI standard
be adopted as the formula to determine a fair and reasonable rate of
return.
The Board has also recommended flexible usages of the MNOI and
consideration of adjustments to the base year computations and the
addition of an inflation factor.
5
•I RKIOW
0♦
■� =1 a
Consumer Price Index
Section 5.44.060, B.2 of the SLOMC permits an allowable increase over the
existing base space rents equal to three -fourths (75%) of the CPI.
The Mobile Home Rent Review Board has recommended to the Council the
following "sliding scale" increase based on the current CPI figure:
A 0% - 5% CPI allows for a 100% of the CPI increase;
A 5% or higher CPI allows for 5% plus 75% of the CPI over 5%.
The Board feels this sliding scale is equitable to both residents and
owners and represents a balance between what the park owners and residents
wanted.
j
Local jurisdictions throughout the state and the county apply the CPI in
many varied fashions. Many allow for a 75% computation and a few have
language which incorporates a 100% CPI calculation.
Some local governments have replaced use of a 75% CPI with either a
sliding scale or 100% of CPI.
Section 5.44.060, B2 also states the CPI adjustments will depend upon the
preceding twelve month period. This language does not clearly define
whether or not a park owner may pass on the CPI adjustment every two years
or every twelve months.
The Board has recommended that the CPI increase be allowed annually and based upon
the preceding twelve month period.
Summary
The Council may choose to apply the CPI computations differently than they presently
appear. This may be done by a CPI computation based on a sliding scale or by
including language in the ordinance which allows for 100% of the CPI.
The Council may choose to not modify the CPT allowable increases.
The Council additionally needs to direct staff as to the frequency with which the
CPI may be applied: The Board has recommended the CPI be increased once a year only
and on a particular anniversary date. Staff would return with specific language to
amend the existing regulations.
Hearing Officer
The Council has directed staff to investigate further the concept of a hearing
officer as one potential method of reviewing matters concerning mobile home rent
stabilization regulations.
A hearing officer approach on issues relating to mobile home rent control has proved
effective in cities and counties throughout the state. Essentially, the hearing
officer acts as the "body" in place of a rent control board or the legislative
authority such as the City Council.
2—
,l lii1 Gity of san Luis OBISpo
COUNCIL AGENOA REPORT
The hearing officer assumes all of the powers and duties once delegated to the rent
review board. The hearing officer would receive, investigate, hold hearings and
make determinations upon the issues relating to mobile home park rent stabilization.
The hearing officer may be selected by the Council or the City Administrative
Officer and should have no link with city government. The hearing officer may, in
fact, be a "pool" of individuals who conduct reviews of applications. This system
of analysis on rent disputes allows for a variety of hearing personnel and avoids
any perception of bias.
The hearing officer must be knowledgeable in the rules of evidence and may have
demonstrated experience in rent disputes, conflict resolution or mediation.
Costs
The financial considerations and impacts are substantially varied. Most local
governments are responsible for the entire costs of rent control disputes managed by
a hearing officer.
Few jurisdictions share the costs with park owners and residents. There are rare
circumstances in which owners and residents pool funding based on a per mobile home
space basis to assist in the hearing officer's costs.
Costs of hearings may also be borne by each party to the hearing in such amounts as
determined by the City, or the hearing officer, exclusive of individual expenses and
attorneys' fees incurred by either or both the tenants and management.
Nevertheless, costs for professional hearing officers are expensive and can range
from $60.00 per hour to $125.00 per hour. The actual amount of time spent hearing
rent stabilization matters depends on the number of applications before the hearing
officer or pending.
One major advantage of a hearing officer approach to matters of rent stabilization
is that of time. The hearing officer may be directed to hear pending applications
within a relatively short period of time. A decision may come as soon as ten days
subsequent to the actual hearings.
Summary
At some point in the future, the Council may decide to be replaced by a hearing
officer form of rent stabilization regulation on matters of rent disputes and
applications.
If a hearing officer style of reviewing rent increase applications seems a
possibility, staff should be directed to explore additional specific information for
Council consideration.
2-7
j)N)) City of san luis 4BIspC
MiN COUNCIL AGENDA REPORT
Definition of "Recreational Vehicle"
For more than a year, the rent review board heard testimony concerning increases
applied to recreational vehicles or recreational vehicle spaces inconsistent with
1 the rent stabilization regulations. The Board agreed that it was the purpose and
intent of the rent stabilization ordinance to protect recreational vehicles located
in mobile home parks as residences. The Board recommended that the Council protect
spaces which may house recreational vehicles.
Spaces and recreational vehicles in most local ,jurisdictions are protected by rent
stabilization regulations. Considerations are often made for actual time spent in a
particular space.
Alternatives
1. Council may choose to adopt the ordinance amending the Mobile Home Rent
Stabilization Ordinance to replace the Rent Review Board with the City Council,
and may direct staff to return with specific recommendations concerning other
modifications to the Mobile Home Rent Stabilization Ordinance.
2. Council may choose to implement Alternative *i and additionally direct staff as
to which fair return standard and/or CPI calculation Council wishes used in any
future modifications to the Mobile Home Rent Stabilization Ordinance.
3. Council may choose to implement both Alternatives *1 and *2 and further direct
staff to explore specific information regarding establishment of a hearing
officer style of rent review.
4. Council may choose to adopt the ordinance amending the Mobile Home Rent
Stabilization Ordinance with no further modifications intended.
5. Council may choose to direct staff to return with a different amendment and may
specifically direct staff as to the contents of that amendment.
Summary
The Council°s intention is to protect recreational vehicles and all spaces
in mobile home parks. Staff should be directed to return with specific
language for consideration. This language may be included in 5.44.020 of
the SLOMC and be similar to the following examples:
"Mobile Home Dwelling Unit" A structure designed for human habitation as
defined by Section 798.3 of the California Civil Code.
"Space" The lot upon which a mobile home, as defined by Section 79113 of
the California Civil Code, is placed and for which rent is charged.
"Mobile Home Space" The site within a mobile home park intended,
designed, or used for the location or accommodation of a mobile home as
defined by Section 798.3 of the California Civil Code.
Staff Recommendation
The Council should adopt the ordinance amending 5.44 of the SLOMC
replacing the Rent Review Board with the City Council. Staff should be
directed to return with specific amendments to the ordinance regarding a
fair return standard, the Consumer Price Index, and a definition of a
recreational vehicle. Staff will alsa return with additional information
on Mediation, Water metering/Utility allowance, and rent control based on
economic need for Council consideration.
Attachments: Analysis of lO Local Governments' Ordinances
Ken Barr Article; "Pair Return Standards"
lO Local Governments' Ordinances (Council Office)
9A
ORDINANCE NO. s SERIES)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING
THE MOBILE HOME PARK RENT STABILIZATION
ORDINANCE SLOMC CHAPTER 5.44
BE IT ORDAINED by the Council of the City of San Luis Obispo as
follows:
SECTION 1. Subsection 5.44.020(D), Section 5.44.040 and Section
5.44.110 are hereby repealed.
SECTION 2. Subsections 5.44.020(E), 5.44.020(F) and 5.44.020(G) are
hereby amended to read as follows:
5.44.020(D) "Mobile home tenant" or "tenant" means any person entitled to
occupy a mobile home within a mobile home park pursuant to ownership of
the mobile home or under a rental or lease agreement with the owner of the
mobile home.
5.44.020(E) "Rehabilitation work" means any renovat!on or repair work
completed on or in a mobile home park performed in order to comply with
the direction or order of a public agency, or to repair damage resulting
from fire, earthquake or other casualty.
5.44.020(F) "Space rent' means the consideration, including any security
deposits, bonuses, benefits or gratuities, demanded or received in
connection with the use and occupancy of a mobile home space in a mobile
home park, or for housing services provided, but exclusive of any amount
paid for the use of a mobile home dwelling unit.(0rd.923&1(part),
1982:prior code & 4801)
3 1a
SECTION 3. Sections 5.44.050, 5.44.070, 5.44.090, and 5.44.100
shall be amended to read as follows:
5.44.050 City Council powers and duties regarding
Mobile home rent review
Within the limitations provided by law and in addition to any other
powers and duties the Council has, the City Council shall have the
following powers and duties:
A. To meet from time to time as required to receive, investigate.
hold hearings on, and pass upon the issues relating to mobile home park
rent stabilization as set forth in this chapter, or to any decreases in,
or charges for, services or facilities;
B. To direct staff to make or conduct such independent hearings or
investigations as may be appropriate to obtain such Information as is
necessary for Council to carry out its duties:
C. To increase or decrease maximum rents upon completion of Its
hearings and investigations;
D To adopt, promulgate, amend and rescind administrative rules, as
it deems appropriate to effectuate the purposes and policies of this
chapter.(Ord.923 & 1 (part), 1982: prior code & 4804)
Section 5.44.070 Application for rent increase -
Fee - Contents - Notice of
request - Hearing.
A. An owner who has been required to make expenditures or has
Incurred costs of such amounts that he will be unable to make a just and
reasonable return on his property given the maximum increase permitted by
Section 5.44.050, may file with the Council an application for a rent
increase for one or more spaces or application to reduce, or charge for,
certain services or facilities, in either even referred to hereinafter as
"application" or "application for rent increase."
B. Any application for a rent adjustment pursuant to this section
shall be accompanied by the payment of a fee as may be established from
time to time by council resolution. The application shall specify, as
applicable, the address of the mobile home park, the space number Gr
numbers for which rent is requested to be adjusted, the amount of.the
requested rent adjustment, the proposed effective date of such adjustment,
and the facts supporting the application. The applicant shall produce at
the request of the Council any records, receipts, reports or other
documents that the Council may deem necessary to make a determination
whether to approve the application.
C. The owner shall serve each affected tenant, in writing, either
personally or by mail, with notice of the rent increase or change in
services or facilities requested and with notice that application for
approval of same is being filed with the Council. Proof of such service
shall be filed with the Council concurrent with the filing of the
application. Copies of the application shall be available free of charge
to any affected tenants requesting same at the business ofi'ice in the
affecced park.
D. The Council shall set a hearing on the application complying with
the requiremens of this section no less than ten days and no more than
F
days after receipt of the application and proof of service. The
Council shall notify the owner and tenants, in writing, of the time, place
and date set for 4��e
ring. No hearing or any part thereof may be
continued beyondays after the initial hearing date, without the
owner's consent. Council approves an application as requested or
as modified, the same shall take effect as noticed by the owner or as the
Council may otherwise direct. (Ord 1077 & 2, 1986; Ord. 923 & I (part),
1982: prior code & 4806)
Section 5.44.090 Application for rent increase -
Evaluation - Relevant factors.
In evaluating the application the Council may consider, along with all
other factors it considers relevant, changes in costs to the owner
attributable to increases or decreases in master land and/or facilities
lease rent, utility rates, property taxes, insurance, advertising,
variable mortgage interest rates, employee costs, normal repair and
maintenance, and other considerations, including, but not limited to,
rehabilitation work, capital improvements, upgrading and addition of
amenities or services, net operating income, and the level of rent
necessary to permit a just and reasonable return on the owner's property.
(Ord.923 &1(part), 1982:prior code & 4808)
IJA
Section 5.44.100 Application for rent increase -
Hearing - Determination
(A
A. The Council shall make a final decision no later than twenty days
after the conclusion of its hearing. ffhe decision shall be based on the
a submitted at the hearing. The decision G
shall be based on findings All parties to the hearing shall be advised
by mail of the Council's del sign and findings.
B. Pursuant to its findings, the Council may:
1. Permit the requested rent increase to become effective, in whole
or in part; o:,
2. Deny the requested rent increase; or
3. Permit or deny, in whole or in part, requested reductions, of or
charges for, facilities or services.
C. Any .recision of the Council shall be final.
SECTION 4. A summary of this ordinance, approved by the City
Attorney, together with the ayes and noes, shall be published at least
five (5) days prior to its final passage in the Telegram -Tribune, a
newspaper published and circulated in said city, and the same shall go
into effect at the expiration of thirty (30) days after its said final
passage. A copy of the full text of this ordinance shall be on file in
the office of the City Clerk on and after the date following introduction
and passage to print and shall be available to any interested member of
the public.
INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis
Obispo at a meeting held on the 2nd clay of June, 1987, on motion
M
the following roll call vote:
AYES:
NOES:
ABSENT:
seconded by
Mayor lion Dunin
ATTEST:
City Clerk Pamela Voges
APPROVED:
Acting City Administrative Officer
City J-rney —
W
City of Simi Valley
DEFINITION OF MOBILE HOME OR RECREATIONAL VEHICLE
------------------------------------------------------
L'TILITIESISERVICES
------------------
% reduction in services may jnst.ify a r• hii t in t, r�•..
allowable rent increase to •.he? xte ,T of ich —I I;, t ;rtn
services.
METHODOLOGY FOR DETERMINING A FAIR AND REASONABLE RATE OF RETt'I2\
----------------------------------------------------------------
Adjustments on tht• Reasonable Rate• of Retatr:i ,as,• I,,.,W ,
operating expenses. capital improvements. lncrea.;,<,, .. 0I,-cr• }t
in living space, services and other amenit ies. I,.alastant 1,11
deterioration of the controlled re,ital space (not inc iuditiv,
normal wear and tear ) . fai lure of the management tet pt—l'Of nt
ordinary repair, replacement, and maitit enance, ind comltli•_is,-
witit state anti local housing and health regulations ;as we•it as
compliance with rent mediation regulations.
CALCULATION nF CPI
—
------------------
None.
Mediation is accomplished by a Mubile Home Rent Mt•diation floard
selected by the Mayor and serving at tiae pleasure of the Ci,y'
Council. If the Board's decision is unacceptable tit •t:iy party,
the matter may be submitted to a hearing officer
Hearing Officer
The hear _ing,_afficer is selected by the City, and if ei€lie•r part;
rejects him/her upon good cause, the City will se1er:t in
alternate. The hearing officer must be knowledge.ltl,- in the
rules of evidence, and will huld an evidentiary heor inx t„ hear
and request further evidence.
The hearing officer's decision is subject tit ievie,w by t!I, court:.
on matters of law. not fact.
The costs of the hearing are borne by each piirty to tht• h.1,triIle
in such amounts as determined by the hearing officer, not
including individual expenses and individual fattoriiet;s' ft-es
None
go
City of Rocklin
DEFINITION _OF_ MOBILE _ HOME_ OR RECREATIONAL_ VEHICLE
None.
UTILITIES/SERVICES
Park owners must s►multaneousiy reduce rent t)r .t pr41v111e .# :,•ttt
increase in an amount prupurttonal to the dec-reas+• in t-1 v,--
METHODOLOGY_FOR_DETERNINING_F,AIR_AND_REASONABLE_RATE _OF_RETURN
Determined by a mediator or arbitrate►•, based ort: debt vt rv�
costs, rental history, physical condition. increase or
reduction in services during last 12 months. other financial
information, and existing market value of rents.
NOT based on current fair market value of the park.
CALCULATION_ OF CPI
The City Rocklin uses the Consumer Price Index fur
"California- all urban customers" over the 12 months preceding
the date the rent Increase notice is given. most recent
published figure is used. A sliding scale is used:
100% of CPI where CPI is less than or equal to 5%; or.
75% of CPI or 5%, whichever is greater, where CP1 is greater
than 5% and less than or equal to 10%; or,
66% of CPI or 7.5%, whichever is greater, wirere CPI i•i greater
than 10 0.
MEDIATION/ARBITRATION
In order to increase rents, the park owner mu4t file a petition
with the City Manager. The tenants can respond with another
petition if they feel the increase is in violation of the
ordinance. If disputed, the petition for a rent increase is
referred to a mediator, who is selected by the City Manager.
The mediator meets twice in 30 days with the two parties. or
their representatives, and both sides must provide any
information requested by the mediator. If no mutual agreement
can be reached in 30 days, the mediator wall request a best
offer from each party, and make a determination as to a
reasonable rent increase.
At any time during the process, the mediator may determine that
there is an impasse, a substantial failure to mediate in good
faith by either party, or that further mediation is impr,tctic:ll
or not likely to be of further value. At such a point, the
mediator will issue a fact-finding report and a vecummendation
for a reasonable rent increase to the City Man.tt;er.
3 f15
It Ito agroemeltt €5 resl'hed. tite in ealtar if :' s Ier I) In N.-it Ott , It'
bvcometi effect ive imllledIate ly 'in less ii I'ellU+•ti€ t ,1 tl `,ii£'II"'.,1£'
:S t Iill eI t i ler'.. I t 111) Sit 4:It r e q lleti£ T ilt' I£tr I? ;.t21), S
det: i 5 .i on iS i' i it it 1 .
Arbitration
rb i tritt_ ioit call be relines tell by a p,ti k owner tlt ;tV 0", .I f t il,.
tenants plits one after - exhausting he ndedi.I ion 1-e111+-dv
Additionally. there cite be a ill utuitl rt,ttuf,st ht•tw +tat tltc 1) -1
owners and tenants without going throliOi mediittioil f in
Aity interested person mist' submit a 1 i -.t 11f ;i r tll ft.lt It
nominees. The nominees shill Ito experietice_d pro fea�,iult,tl
arbitrators with particular expertise in rt•£ttill tlit,!"Itf'
tit edIatioit, or experience or tr tininP showing the ciip.tbi 1 1t I
to dent with the issues found in the reittal dispute. To bt-
eligible, the nominee cannot have any interest in any group
concerni tit, the issue.
The CItK_,Manaaet_ reviews the lists. c:ondticts investigations
and/o11 interviews those he/she deems iwcessary. and t—fers tlit!
list to the Commission (their MHRRB).
The Comm _iss_ion _ reviews the Iist, conducts any add it I ona1
inves_igation necessary, and selects all arbitr€itut . -he
Commission's selection does not aseeti to he on eitlier list
submitted, but still must adhere to the qualificistinns rht-
Commission's decision Is final.
The arbitrator conducts a hearing with the pasties or their
representatives, reviews the mediation report. and requests
further necessary information, as well as hears the concerns of
each party. The burden of proof regarding the re:ssonableness
or unreasonableness of the rent increase shall be oil tite Pi►rty
requesting arbitration.
After reviewing the record and any additional evidence
requested of tiie parties, the arbitrator will determine tlit,
amount of an allowable rent increase, based on the
..Determination of Reasonable Rate of Return." The incre,-v is
effective on the original date of notice, uniess the trbitrator
imposes a different effective date. Thf= ai•bitratur's docisioll
is final.
Costs of Mediation and Arbitration
If a park owner requests mediation or arbitration for a rent
increase. he/she pays all costs associated with the selection
and retention of the mediator/arbitrator. But if the owner is
awarded greater than 80% of the requested rent increase, he/she
is allowed to pass the cost through to tilt! ti'natlts. spread lever
to one-year period. in addition to the rent increase :allowed.
if a tenant requests mediation arbitration. lie she they mast
pay all costs. But, again. if they are awards-d 30. of the relit
reduction requested by the tenant, the tr,nant s:an pass th.,
along to the owner in the form of a redaction in rent, srrc-ad
out over a one-year period.
The costs of mediation or arbitration are estimated by tite City
Manager, and payment is expected within 10 days of the City
Manager's request prior to the final retention of a
mediator arbitrator. Failure to make payment in time is
considered a withdrawal of the request for
mediation/arbitration.
If the payment made is insufficient. to pay the full cost. thrr
party who originally made payment must pay the difference -
within 10 working days of receiving notice of amount duv. if
payment exceeds the full cost, the excess will be refunded to
the party who paid after the mediator/arbitrator has been paid
in full.
RENT_ CONTROL_ BASED ON ECONOMIC_ NEED
- ----- - -- - ---- --
,3-17
City of San Jose
DEFINITION OF MOBILE HOME OR RECREATIONAL VEHICLE
-------------------------------------------------
UTILITIES
.vlo1)1 r it ()ill mt° titS .1 5t ritt'tit1 .1115itti; t:l
se c t edits , ales i <<nvd aitd e,1111 i f� is i t o t -n t..1 i1 III its
dwe11inq unit, to he used with nr Witlr,jUt t fuun4irtttteti
system. A mobile Ititlit e pai•!c is any aura or tf�ie.t i.�hrre t1„�
or more mobile }tome lots are reote'l or leased to .te.cu�nrnettl
mobile homes iised For hum:ait habitat t,tit foe !tt•rnt.tnetit t::
apposed to transient. occupanry. No referelltN *�,
coCrt.r�etionitI v+rllicIes.
Utility costs are listed as a "cost of opt -ration •titei
maintenanze" for common areas and for rental units to the
extent that such costs are included in the rent. Pruv is ion
of light, heat, water, etc. is also listed as a "housing
service" and housing services are in turn iucludeil in
"rent." Utility charges for utility servit:es, provided to
an individual mobile home resident, as opposed to utilif,,
services provided to the mobile home park in gener•tI, whe!'�i
such charges :are billed to the mobile home resident
separately from the rent for the mobile home or the lot tr,.
specifically exe lulled from "rent."
Although conversion from utilities included to the mitt tt,
utilities billed separately is not specifically dealt with
in this ordinance, there is a statement that considers any
reduction in services provided without a correspondi:tg
reduction in rent to be an increase in rent. It there=fort.
appears that separating utilities out of the rr!nt where they
had previously been included would be considered a rent
increase.
METHODOLOGY FOR DETERMINING FAIR AND REASONABLE RATE OF RETURN
---------------------------------------------------------------
Rent increases made according to the formula (see
Calculation. CPI) are assumed to provide the landlord with a
fair and reasonable rate of return. If a Iitnillord petit. ions
the Administrative Hearing Officer for a larger increase
the determination of "faiir and reasonable rate" is inside
based on the Net Operating Income of the base year ;1985 or
past twelve months for recital units pi ev ious ly exempt elite tie
rental agreement!. If a landlord can .how that the base
year was not typiciil and/or did not provide a fair and
reasonable rate due to extenuating circumstances. the
Hearing' Officer may adjust the base figure.
A fair alld r,.;tSuna1)1e 1,t•tuIif is 1:1,11 I'If .!•,t,. •,in:t. I „!I t..
1 d11d1ot,d to III IIt to itl the 1)'1;o N,e.Ir X e t f)i)Yr,}t
.et] jIts t,•EI for iitf Ii foil. Ttet- iot 1,t, teat ,t .1 it n• tot I t
()1)er t 1 SIFT, 11c01110 Of t 11e b.1se year I it r e a `z•-11 :1J!11n0 1 i - t)t i
iff!rcarlltag (the percI'll t-t1,(, is tie1 1). 1,1e 11 11I• His+n�
Adv; soI,v comfit i ss i on) of t hf- Coils+t;Ier i tt
CALCL'LATInN OF GPI
MEDIATION
Tlie City of San .Jose usrs tilt- Consumer P r I c e iittie�
urban consumers i it tale San l~ ranc i s c o -Oak land i ndex as
reporter) by the Bureau of' Labor Stat. ist. ics of tile r. s
Depit [•tmeat of Labor.
CPI is not used to deLermiuv it lowatlie (aot_ •.ot)jet t tit
review) rent increases, rather base rout is ".Ile
determinant. An increase nut exceledinu 5% of tiro cttl•rt fit
base rent is [lot subject to review. Where the effectiv?
date of the last rent increase was more than 24 months Ill Iol-
to the effective date of the current rent itic :,el;e, i2e is
allowed.
The Mobile Home Advisory Commission is provi{lt,l with staff
services by the "City Rental Dispute Program" which is a
section of the Mousing Division of the City Department, of
Neighborhood Preservation. The City Rental Dispute Program
processes petitions for hearings in regard Lo rent
increases.
The Administrative Hearing Officer coltducts ;,t arini;s
regarding rent disputes and submits written statements of
decision and findings of fact to the City Rental Dispttt.t•
Program which in turn notifies all affected parties. Tl)e
Administrative Hearing Officer's decision is final and
binding (subject to correction of clerical or mathemati,•ai
inaccuracy).
RENT,:ONTROL BASED_ ON ECONOMIC_ NEED
None.
WA
':ity of Escondido
DEFINITION OF MOBILE HOME OR RECREATIONAL VEHICLE
---------------------------------------------------
UTILITIES
A nlobile home i8 defilied to exclll1il•, -,pet ! I i .t.'v i)tl•ti
vtrhicles and c:ummerci;ll cuacitfS. Nn pr,lvi:it iiit lflr It - II .,Tryst
vehicles is made.
Utilities are considered-M'tidiltlrll L:xpvll.,I•s" 'All-i .i-, ';filch
increases ill them "all be passed Oil t') iiJn.lnts .tltll tr" 111I1
Considered rr.nt i ncrf ruses . No spec i f 1 e 1'0, 1. ' ,I , — —r - Ill
from included utilities to separately trilled utilities i> m:tlie.
but the toile of the ordinance suggests t"lat. Escolifligill I 'I Its iItt-1' I
utilities to be an expense of operation which the park iwn. •• i:.in
pass on to the tenant rather than include as part of the wilt.
METHODOLOGY FOR DETERMINING FAIR AND REASONABLE RATE OF RETURN
Standards for determining a fait, rate of return are based on
operating costs, including utility rates (for common are't" of, the
park), property taxes, insurance, advertising, governmental
assessments, normal repair and maintenance, I:.hpital ilnpr()VvMellts
and upgrading and addition of amenities or services.
CALCULATION OF GPI
CPI is not ust-d.
MEDIATION/ARBITRATION
--------- ------ ---
This ordinance is very general. It provides a procedilrle I'll -
landlords and tenants to negotiate proposed rent increases. If
no agreement is reached, the dispute goes to the City Mobile ilomhr
Park Committee fur arbitration which is hinding on all parties
and not subject to appeal to City Council. (Hearings are stilt
public.)
RENT_ CONTROL_ BASED_ ON ECONOMIC_ NEED
---- --- -- ---- ---------- -- -
Not part of the ordinance, but accompanying it, are guidelines
for determining fair rent increases. These vttidelines consider
market rent, which is determined by rents negotiated whit
prospective home buyers (there are no controls on rents for new
space renters). The percentage of the homeowner's income that
the proposed rent would comprise is also considered, and there
are several programs for rent assistance available, including a
means for spreading an increase over a period of time.
4Z
City of Santa Barbara
DEFINITION OF MOBILE HOME OR RECREATIONAL VEHICLE
-
------------------------------------------------
UTILITIES
ii i tenancies in .idly rnobi 10 irwne u[ pd•Cm,l it";t' i'd',dt ,.
vt-hir,Ie park ;irN c:o%*,•rE-�l by thf, o:dinaitrt•. r'•Il.,rl<
both park owner and tear.rift do riot expect t x =pol r.d+. ,
;are exempt. from the ordinance.
t:t_ilities are cons iderd•d1 p.:rt of tldd• 1—i-11.
METHODOLOGY FOR DETERMINING FAIR AND REASONABLE RATE OF RETURN
Not specifically addressed, although indirectly outl:nd=dl.
are the factors an arbitrator is expectt•d to use when m•tk:'n:,
a determination oil a dispute. These include: changes ire
the CPI, the Voluntary Pay and Price Standards promulgated
by the President of the U.S., rent lawfully charged for
comparable spaces in the City, length of time sitld:e for l:ttst
rent increase, proposed capital improvements of,
rehabilitation work, changes in property and ot►lrr park
related taxes, changes in utility charges, changes in
reasonable operating and maintenance expenses, includ►iur;
interest, the need for repairs beyond those consider; -di
normal due to daily wear and tear, and changes in the imodlnt
and quality of services pruvidedl by the park owner to
residents.
CALCULATION OF CPI
The City of Santa Barbara uses the Urban W,i,;d• Earners .and
Clerical Workers Index. Los Angeles -Lon; Beach -Anaheim
average, as published by the Bureau of Labor Statistics of
the U.S. Department of Labor, or such other index as laa�y 'ae
approved by City Covncil.
A rent increase may be made no more frequently than once a
year and may not exceed (without arbitration) the greater of
750 of the percentage increase in the Consumer Price Index
since the date of the last rent increase, of- 3% tirnd�s tho
number of complete months since the date of the last rent
increase divided by twelve.
NFRMV�•M
A rent increase greater than the amount aliot%edl above must
be approved by either the tenants or an arbitrator. .%If
impartial, qualified arbitrator is selected by The Commutrity
Development Department. Costs of arbitration are paid:( by
the park owner~ in(] are considered as reasonable operattin8
expense (and therefore would be considered( us ta. rt .f t:re
justification for rent inereaase) if the arbitrator ipprovei
the requested increase or, any portion of Decisions nladle.
are final and binding.
RENT CONTROL BASED ON ECONOMIC NEED
-----------------------------------
Et;tinom i s itet-d i s not sltt•t; i f i t.it1 1 y addr• sir t t tilt"t , l
'lt tiff ill tItv d i nln (: t'_ HOwv vt'i' Cit r• 1) tl'totit' u:' h•
I'd naiwe is zu mIIigitte both tiie Critical shot- rdt?t- of iva
and moderate income housing within tht• City ,t!id !:)t' i!Ii tt,
of space rental increases on low income and fixed ins m -
r.itir.ens living in mobile homt's.
City of La Verne
DEFINITION OF MOBILE HOME OR RECREATIONAL VEHICLE
-------------------------------------------------
UTILITIES
Mobile hor^e is defined by the Mobile home Kvsidency '.tH p:
California Civil Code Section 798.3. No refere-nce to
recreational vehicles is made.
If a•park owner converts from utiIit. ies incIudod in ivnt to a
separate billing or metered system which transfers the cost
of the utilities to the tenant, :t correspond in,, re•eiuction in
rent based on the cost of the utilities for the past twei ?
months is required. The cost of installation of the +no•tor�
to shift the obligation of payment for utilities to the-
tenant may not be passed on to the tenants without an
application for arbitration.
METHODOLOGY FOR DETERMINING FAIR AND REASONABLE RATE OF RETURN
Standards for arbitration include: granges in the CPI, rent
charged for comparable spaces in the City of La Verne,
history and pattern of all prior rent increasers of the park
and prior arbitration proceedings, capital improveme^ts or
rehabilitation work, changes in property and other t-txeti,
changes in the rent paid by the landlord for the 1+.: z_-c of the
land on which the park is located, changes in the utility
charges paid by the landlord, changes in reasonable opRrntinq
and maintenance expenses, amount of services Provided by the!
landlord, the need for rehabilitation work, and tenant
comments regarding the proposed increase.
CALCULATION_ OF CPI
The City of Lc, Verne uses the Consumer Price Index for the
Los Angeles -Long beach Metropolitan Area published by the
Bureau c.f Labor Statistics of the U.S. Deptartme•nt of Labor
for the twelve month period ending 90 days prior to the rent
increase.
Increases may only take place once a year. Without mediation
or arbitration, a rent increase of 70 of the base rent or the
increase in the CPI, whichever is lesser, is permitted.
MEDIATION/ARBITRATION
Increases greater than the allowed amount go to mediation.
Two owner representatives, two residents, and a mediator paid
by both parties attempt to negotiate a mutually agreeable
rent increase. Any agrt,,ment requires both the uwiler anei
two-thirds of the park residents' approval Mediation max, be
repeated if approval is not gained.
if fit ediatioil is unsuccessful, arbitr.ltiu❑ tic 4:urs. A pail!
atrllitrsttur dutertnines the a!lowatl't• iut:teast al"i 11i•s ht•r
deC.isio11 iS final. Casts of the .11•1)itrarion are shag-ld a�
the City, park owner and teuallt s . Tilt, ,11L i t.1 ;1tu[' is st• t(t4 t t•11
1)y the Rt-nt Arbitration Administt—a o1 19114) is rite C,rS ?i•1na?er
or his d=-sigitee.
RENT —CONTROL—BASED_ON_ECONOMIC_ NEED
----------- ----- ---------- ----
`4,1i e .
3 C*
City of Oxnard
DEFINITION OF_MOBILE _HOME _OR_RECREATIONAL _VEH1CLE
UTILITIES
A mobs I It -i ill t' i5 .2 5 i_ t' 11 C is ii I' e d t' S i g 11. t t r':? t 3 - ,i t' t iV r
human h.lhitJt.ioit. trarisIto rter,l Uvv1, t_h+• It:;:Iti:.
permanent occupancy site . and instal led i-) it = lie _, i : i . tit•
with or without a permanent foitndation .
Tenancies which do not exceed an occupancy ot ?ti
which do not cuartemplate an ncr:ltpanc-y of more• t!i.tn 21i
are exempt from tlae ordinance. No spt. cifi. ieft'renc ri,
recreational vehicies is made.
Utility charges are not considered part of -spare refit"
where owners bill residents separately for those utilltl•'s.
whether or .tot the dwelling units are individually meterrtl.
If a park owner who does not separately bill utilities
converts to a method of separately billing tenants t•oi
utilities, such a change shall be renewed for accuracy in
its calculations and subsequently approved by the Rent
Review Board. The approved amount shall then be deduct-d
from the space rent. This deduction shall be equai to tits•
cost of the passthrough item.
Passthrough Items
An owner may segregate and separately bill the actual cost
of any utility u.- trash charges not metered to the
individual tenant's unit and may pass on any increase or
decrease in such charges as they occur. Such assessments
and charges shall thereafter not be partof tlit space rent
There is a procedure established for Bo:irct review of
disputed passthrough charges.
METHODOLOGY _FOR _DETERMINING _FAIR _ AND REASONABLE_ RATE_ OF RETURN
The Board considers changes in costs io the uwuer
attributable to increases or decrea_;t-s in land or fit, ilities
lease rent, utility rates, property taxes, insuratice
advertising, variable mortgage interest rates. governmental
assessment and fees, incidental services, employee costs,
normal repair anu maintenance, capital improvements,
upgrading or addition of amenities or services, net
operating income, and level of rent necessary Lra permit a
just and reasonable return on the owner's investment..
CALCULATION OF CPI
-----------------
The Cit'; of Oxnard uses the Consumer ?rice Index cis pt t'i�•1; t^ti
by Bureau of Labor Statistics of the U.S. Department of
Labor fol' the Los Angeles -Long Beach -Anaheim area.
t ht• C 11 1 cliatryv I ur 11Sv :rs ht'
Tilt- al lowahie inrre rs: t',it! rrt,t ',t- i€it,t t• r;t.,t,
change in the ('111 far Lire ;tpt)1 i,-.111 .,ti It
less than 3:, nrtr more than 8",. Iit-r
for rent increases may be suomi t ted nu m, re I t— it ttt i t t€,tn It r
a year.
MEDIATION/ARBITRATION
--- — -- — ---- ---
CPI Formula Increase: AppI it';it ions rti v tr.ti.If-wrri h,- t - ,; ' t.,I
accuracy. if findings are tIto t t11" .1p13licittit,r€ rs ,''ttr,., € tist
tenants are not i f ied of the increase wit It ant unta t i ca i ; >s
effect in a minimum of 13 stays. If 2,5% of 1 11 e Itannnts Ii-r,s+,)n
the Board, a hearing is scheduled. If art indix•itivaI it—ti.€nt
objects to the increase on the basis of error in the CPI Formula.
City staff reviews It is information and determines the a lowilbIf-
increase for his space.
Discretionary Applications (increases great4ir than allowt•d by CPI
Formula) are heard by the Rent Review Board. Decisions t' t!tr.
Board are based on the preponderance of the evidence submitted at
the hearing. The conclusions =ind findings of the fluard are fina:
and there are no appeal rights to the City Connc:iI.
RENT_ CONTROL_ BASED_ ON_ECONOMIC NEED
None.
i !„
City of Morro Bay
DEFINITION _OF_MOBILE _HOME _OR RECREATIONAL _VEHICLE
---------- -- ------ -- - --------- --- -------
UTILITIES
A mobile iloml• is .i titrurtill � +i,•siiu a is itlr,'atr ,l ! I'
ti�f i lled by Sv(, . 798,31 t),` tilt. Ca 1 I hu€ ll [ a
Recreational vehicles which have orrupieei tit,• s.tv,*� s;r,
colit lnuously for Illtle IIIOnt.115 a",-' , ,anti I,i,':'t�,l tll"hi
This ordinance applaPs tU spaj,s It) €'eCreal loo,lt l'e.It;� :�• :e.l i'i. ',
that are milt intiolls ly occlip red by t tie• 1 sl�� t •,t r „il.i 1, :
for past. dine IllontAls.
There is no specific men"ion of ut i l it i—• or. itltiivi,ival mt•t, ';lt.•
but airy reduction in services or amen i t ies ;hill I l -.it! I t ,
corresponding decrease in base rents.
METHODOLOGY FOR _DETERMINING FAIR AND REASONABLE RATE OF RETURN
No specific determination of what. constitutes ",just anti
reasonable rate of return" is mentioned in t`he ordinance•
In evaluating any rent increase request, the Mubile Home R--,ti•w
Board may consider any factors it considers relevant . in, Iu,iillu
changes in costs to the owner attributable to ;ill increase or
decrease in utility rates, property taxes, inr.etriinc.e.
advertising, variable mortgage interest rates. employee costs.
normal repair and maintenance, mastrc' Ian€1 and/or far I it ie!-.
lease rent, rehabilitation work, capital improvements, upgi-aditln
and addition of amenities or services. net operating income.
the level of rent necessary to permit a just and reasonable rat -
of return on the owner's property.
CALCULATION OF CPI
The City of Morro Bay uses the Consumor Price Intit•x ;Is p•eleare(I
by the Bureau of Labor Statistics of the U.S. Oepartm,ent of Labor
for the Los Angeles -Lone; Beach -Anaheim area.
Rents can be increased every year not to exceed ';ie of the Cpt
increase for the 12 month period from Septembt•l• throtlg;It August
Some exceptions exist for Vacancy Decontrol, t-c. .
MEDIATIONIARBITRATIoN
None. Morro Bay uses a Mobile Home Review Board consistini; of
City Council Members.
RENT_ CONTROL_ BASED_ ON ECONOMIC_ NEED
None.
�i
City of Fremcnt
DEFINITION OF MOBILE HOME OR RECREATIONAL VEHICLE
UTILITIES
Defined as a structure designed for human habitatio+a and capable of being
transported on a street or highway. It includes manufactured homes, but
not recreational vehicles. commercial coaches or factory built housing
(Cal. Civil Code & Health and Safety Code).
Not specifically mentioned.
METHODOLOGY FOR DETERMINING FAIR AND REASONABLE RATE Of RETURN
A reasonable rate of return is not discussed; instead, the ordinance
refers to a "Net Operating Income."
Net Operating Income is the gross income of the park less the operating
expenses of the park.
CALCULATION OF CPI
The City of Fremond uses the Consumer Price Index for "All Urban
Consumers," San Francisco -Oakland area, as published by the Bureau of
Labor Statistics, U.S. Oepartment of Labor.
Annual rent increases can be the greater of three amounts: 3%, $10. or
60% of CPT increase, provided that no rent increase is more than 6%.
MEDIATIONIARBITRATION
The Rent Review Officer is not a hearing officer. He is merely
responsible for the administration of the ordinance.
As far as mediation is concerned, the park owners are required to make
the,aselves available to meet with the tenants for an informal mediation
meeting. If the mediation session does not resolve the dispute, the
tenants may file a ptrition for arbitration, provided that they represent
at least 51% of the affected spaces. The Rent Review Officer assigns an
arbitrator and sets a date for the hearing.
Within 15 days of the hearing, the arbitrator must make a decision as to
the amount of the rent increase, if any, and the effective date of the
increase. The arbitrator's decision is final and binding upon the owner
and all affected tenants.
The burden of proving the reasonableness of the rent increase is on the
landlord, while the burden of proving service reductions is on the mobile
home owners or mobile home tenants who allege that service reductions
have occurred.
jawymmem,� t t r
�' •ITS