The URL can be used to link to this page

Home My WebLink About07/17/1984 Item 9 - Amendment to Mobilehome Park Rent Stabilization Regulations and consideration of referral to Rent Review Board for review and recommendationscity of SAn tLA OBitil�c? Mme COUNCIL AGENDA REPORT Prams "r Pic¢uet MiS��ub��ects Arsr4ment to Dbbilehame Park Feat Stabulurat dregulations and TcZratim of referral to Pelt Revrew gird for revise and recoamaxdatims. Opp P¢ca rmhdation: (A) Adopt cote ion. mat y motion, re adjusted base space rent as psr staff recanma'wiatim. (8) 9f motion, refer Oa{xsr 5.44 of the S.L.O.M.C. to the Rent Revuaw Hoard for review of minor administrative and procedural mutters. BackgrOundIn mid 1982, the tbbilehone Park Pent Stabilization ordinance onus ad (SUM chapter 5.44). , ese regulatiae stablisn 1lmrtati 0 on the errant of rant that may be elhar9ed for a : obilehass space and Provides several eecnani®ms by which rent may be raised. The provisiona were originally cn expire ("sunset") after three (3) years. Recahtly, the COuncii eliminated the exp Lratim aectim and made the ordinance permanent. Since its .�icption several issues have arisen regarding interpretation of the ordnance .and staff recanrtands "fire -tuning" at this time. A. Deter, tiah of base space rent upm terainnatim of lases- lte existing prwisima established the base space rant as "the ninthly space rent charged as of March 15, 1982" (Section 5.44.060(A))• Spaces under long-term leases, defined ae me greater than a monthrto-south tenancy, are exempt from the entire Ordiran:ca (section 5.4t.030(0)). tYmever, the ordinance does not address what the appropriate space rant should be when a lease eds. Conceivably, it could result in a rent "roll -back" to the rant in effect m Marm 15, 1982. Amrg other things, this would act as a disincntive for park residents to enter into a n long term Lease. Such a result is coaster productive to the obvious goals '.. and purposes of the ordinance. TR possible solutions have been proposed: (1) Set the "neJ' space rent site"" 1 at an amount %hick reflects what the space rent would have been withexut a lease. In other cards, the base space rent for the space on March 15, 1982 plus any rent increases (autemstic "C?I" and those granted pursuant to the "hardship"provisions) applicable to the nardaaae spaces at the lark, woul9 became the new or adjusted bass space rent. (2) Set the mew base space rent at an amount which reflects the last months rent under the lease. For example, if the space rent under a lease was $195 a tenth and the lease expired, the rent would mntinse at $195 until either a lease was negotiated or 'nail an automatic CPS and/or hardship increase were applicable. Pram a practical point of view, there pr6u&ly would not be a significant rent difference under either approach. Staff notes that the latter approach is susceptible to manipulation in that the last month of a lease terra could be set unusually high in order to set a high bass rent upon expiration. Staff reoamards solution !1, and a code amendsnt is attached reflecting this recaneax°atim. /_/ J • CCNJNCXL A NOA REPORT S. ,Nainistrat3vw procedural eattwrs. Since the adoption of these regulations there haws ] es only three is) requests for n arddup" rent increases frta perk Deers; (71441010h, Angst, 1983, Rartc3o San Luis, May, Mot: and Mission, July, 1984. Staff and the boardmesbers have identified several a±-,:n3straiive and pra::edisal issues that need rwi~. Sme of these are as follorh The Board is cogzised of three req:ilar m ubers acid bn alienates. A q or a is tmao manners. This means the, boardnewbere may not disuv s wbileh me related issues, parucvlar Ly specific rant increase applications, withoht possibly violatirsg the boat Act. Boardme.Eers haw indicated loot this restriction haspers their effectly s and makae thes feet isolated frmk each other. 2. Boartt m rs are appointed at the same time (w steggered tens). Staff feels an appointsanu process and sriedule m:e ®osiataht with the procedures set forth in the Adviscay body i0n2mok aught be desirable and alleirate the potartial ffir oonfusian in admutistratitn. 3. Appeal of a Board decision to the O t ii does not require the padmsett of a fee. Ttis is irs>Qeistsnt with appeals firm other boards and aawissions. Staff nrpeecs that n appeal fee oven if nnsdnal, is appropriate. pursuant to SsC!t . 5.44.050 of the Municipal l]YU, the Board has the authority to meet as required by the aourcil and to make appropriate recomasiations to the axocil on `saves relating to eobile has park rent stabilization." Accordingly, it is reocaemaded at this time that the On it refer reviwt of the entire ordinance to the Mobilehos Rapt Raviwt board for raw of the abuse Listed and similar aim strative and procedural issues ant to make recamuedations to the oouncil. ALtdchment: Draft ordinance lLP: 1p • CCNJNCXL A NOA REPORT S. ,Nainistrat3vw procedural eattwrs. Since the adoption of these regulations there haws ] es only three is) requests for n arddup" rent increases frta perk Deers; (71441010h, Angst, 1983, Rartc3o San Luis, May, Mot: and Mission, July, 1984. Staff and the boardmesbers have identified several a±-,:n3straiive and pra::edisal issues that need rwi~. Sme of these are as follorh The Board is cogzised of three req:ilar m ubers acid bn alienates. A q or a is tmao manners. This means the, boardnewbere may not disuv s wbileh me related issues, parucvlar Ly specific rant increase applications, withoht possibly violatirsg the boat Act. Boardme.Eers haw indicated loot this restriction haspers their effectly s and makae thes feet isolated frmk each other. 2. Boartt m rs are appointed at the same time (w steggered tens). Staff feels an appointsanu process and sriedule m:e ®osiataht with the procedures set forth in the Adviscay body i0n2mok aught be desirable and alleirate the potartial ffir oonfusian in admutistratitn. 3. Appeal of a Board decision to the O t ii does not require the padmsett of a fee. Ttis is irs>Qeistsnt with appeals firm other boards and aawissions. Staff nrpeecs that n appeal fee oven if nnsdnal, is appropriate. pursuant to SsC!t . 5.44.050 of the Municipal l]YU, the Board has the authority to meet as required by the aourcil and to make appropriate recomasiations to the axocil on `saves relating to eobile has park rent stabilization." Accordingly, it is reocaemaded at this time that the On it refer reviwt of the entire ordinance to the Mobilehos Rapt Raviwt board for raw of the abuse Listed and similar aim strative and procedural issues ant to make recamuedations to the oouncil. ALtdchment: Draft ordinance lLP: 1p OML`Axm qD. (1984 Series) sul lots OB:sw APPRNIDr. AN Ater cr r MM Sm =5 MSSM AMCiPAL amE S=T 5.44.D60 (9aS. SPACE RENT - WrEMUIaTtrN - l-"' UILZ ZJCC.' .ASES) tT ORLlAt11fS1 trf the CanciL of Ur City of San Wia at follows° SWTICK ?. Section 5.44.060 of the San luis ]ciaPo Msiicipsl Coda is ,serried to reed as follwec S.44. W pent - Dstermir tiro - Allowable i=ease^ A. The "lase space rent" for purPogaa of this dnp'rr at. 4y Uwr aonthly apace rent durgei Ace of March 15. 1962, Ihs 41�c"n amnthly qx a rent for WY BOBalcede a Saes° upon aspiration of the lease, atoll be m sor than the bar lew rent for ge[dl 1S, 1 R Dios any inereaaes otTwrvisa ellwsd wrsuwlt to the Provisions of thl_ s CYa$tir e. EYcWt as otherwise provided in this CTaptar, tha mast amthly apace rant may ba increased m more than mcv a wee: ty the leaser of the two fol:oviry a tee 1. rAght percent of Uce than vacating space rent: 2. An increase Over tho then existing Raw rent equal to thre fourtha (seventy-five parent) of the cost of liviN amrswuse (Burro of Labor Statistics, U. S. Natuacal Connnar Prlre lndw) for the l.:tceding twei�th peri.d. C. mlculatlm of Uue ona-ysar limutatu on rental. ircreasr As prwidwd in this section slash ue ftoa the date the last i[n: w bw.vm effective at the park. a Orduarcce No. (1994 Series) D. 5b omen stall either (1) den»!, accept or retain a rent if cr from a tenant i excess of the maxM rant permatted by this 43apter, or (2) effect a prohibited r•nt increase by a reduction of general p-ui facilities and services. SWrlCN 1. 2his ordinance, together vit.i, the ayes and roes, shall be published once i., full, at least three (3) dins prior to its final passage in tree Delegrar.rribune, a nampaper published and circulated in sari City, and the :,ere shd l go into af:a-t at the expiration of thirty (3o) days after its said foal passage. I21f1 aKED AND PASSED TO PR-Wr by the Cxncil of the City cf San Leis 'Oisp a at a a tang hold on the _ day of 199a. on 1mtiar aeooded by and on the `ollo+ing roll call ♦'-tet AYES: ACi C41 : ,1:'P ;