HomeMy WebLinkAbout08/07/1984 Item 2 - Amendment ot Mobilehome Park Rent Stabliziation RegulationsWETING AGENDA
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COUNCIL AGENDA REPORT
Fran: Roger Pioquet -
Subject: Amendment to Mobilehane Park Rent Stabilization Regulations.
CAO Rec mrendat.ion: Adopt code anent establishing adjusted base space
rent as per sta recam�endation.
Background: In mid 1982, the Mobilehome Park Rent Stabilization Ordinance
was adopted (SLO C Chapter 5.44). these regulations establish limitations
on the amxmt of rent than may be charged for a mobileho me space and
provides several mechanisms by which rent may be raised. The provisions
were originally to expire ("sunset") after three (3) years. Recently, the
Council eliminated the expiration provision and made the ordinance
permanent. Several issues have arisen regarding interpretation of the
ordinance and staff reoamwxis "fine-tuning" at this tine.
Determination of base space rent upon termination of lease.
The existing provisions establish the base space rent as "the monthly
space rent charged as of March 15, 1982" (Section 5.44.06O(a)). Spacess
under a long-term lease, defined as one greater than a month -to -month
tenancy, are exempt from the entire Ordinanace (Section 5.44.030(e)).
However, the ordinance does not address what the appropriate space rent
slxx ld be when a lease ends. Oonceivably, it could result in a rent
"roll -back" to the rent in effect on `-Larch 15, 1982. Amoral other things,
this :mild act as a disincentive for park residents to enter into a new
long team lease. Such a result is counter productive to the obvious goals
and majx ses of the ordinance.
At the July 17, 1984 Council meeting several possible solutions were
discussed. They are as follows:
(1) Set the "new" space rent at an --count which reflects what the space
rent would have been without a lease. In other words, the baa, space
rent for the space on March 15, 1982 plus any rent increases
(automatic "CPI" and these granted pursuant to the
"hardship"provisions) applicable to the non -lease spaces at the park,
would became the new or adjusted base space rent. (proposed by su _`f)
(2) Set the new base space rent at an amount which reflects the last
month's rent der the lease, with a limitation that the rent would
ro'tt be set at an amount greater than the average rent paid either
under the entire life or the last six months of the lease, whichever
amount is greater (proposed by attorney Jim Buttery).
From a practical point of view, there wound not be a significant rent
difference to an individual space under either approach. The decision
really has to be made based on other considerations such as ease of
administration or other similar factors. Of course, evaluating the
relative strengths of such factors is saoewhat a speculative exercise,
staff believes proposed solution t1 offers a slightly better resolution of
the problem since it relates the adjusted base space rent to the
underlying rent stabilization ordinance rather than a lease. l
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city of san .ais osispo ^-
j CILAOENOAI� OpT
Attached to this report is a draft oriinance a mviin.3 the re3ulations as
per staff's proposal (11). Also attocherl is the 1anq•Lsaye of the
alternative ama tent Far -posed bn Mr. Buttery. Also shown is Mr.
But tery' s ,A-1 as nnxii f i e i by Cotu is ilman Griffin.
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ORDWOM NO. (1984 Series)
EE rf OF UNED by the Council of the City of San V, Obispo as
follows:
SWMCH 1. Section 5.44.060 of the San Luis Obispo Mmicipal Nde is
an angel to read as follows:
5'"'%0 flaw SPeos Pent - Detmsinatim - Allowable increasas
A. The "have apses rent" for pub of this chapter shall be the
monthly specs rent charged as of March 15, 1982. The na =n +ninthly
space rent for any space order a lease, upon exp' ti of the lease
shall be m Mrs than the base space rest m March 15 1987 pl any
inxseases otherwise allowed pursuant to the provasi of this Chapter
e. E cept as otherwise Pt ided in this Chapter, the maxis hmnthly
space rent may be inpraased m nee than once a year by the lesser of the
too following amens:
1. Eight percent of the then existing space rent;
2. An 'n aase omr the than existing space rent equal to
throe fourths (seventy-five percent) of the cost of living in¢easa
(Bureau of Labor Statistt®, Q. S. National Consunar price Index) for the
Preceding twelve-month period.
C. Calculation of the she -year L=tatim on rental increases as
Provided in this section shall be from the date the last in3eave harems
effective at the park.
02-
D
Proposal SOlutim R2 (Buttery)
S.44.060 Base Space Rent . . .
A. 'fie '"piss space rent" for purpoxes Of this daptsr stall he the
smthly spacce rent camel as of Marco 15, 1482, lsa , if a spios is
exeePt P.ususnt to 5.44.939(e) Of '119 d%apter, then, upon expiratim of
the lease or mntmmR the maxlmss nonthay space rant shall W no see
than the last south's rent urrder the lease or oontractr except that In
nc a 't shall the reset exceed the average rent darged during the tors
of the Jesse w cmtraa or the aysrsgs rent darga9 droning the last sit
kith's of such lease or contract, rihicever a t is grsstsr.
Buttery !ss nrdtfied by Griffin)
5.44.060 h3ase Spats Rent . . .
A. 71e 'Was spit$ rent' for purposes of this captor stall be the
sbnC y apsos rant rlarged as of March 15, 1982. tbever, if a spa® ie
ssahpt Phrsuent to SBCtim 5.44.030(e) of this chapter, than, upon
mghirstim of the lease or contract the base spice rent steal be no more
then the ssourt ctLdrgsd for tie Isat v th xxier the lea,a or omtract.
Tn oo eVaht ahali the base space rent exceed the average sao s t darged
hmnthly dhchng the term of the lease or oontract for a space or the
avarags ssa t charged mvhthly duriry the last six rmths of such lease
Cr mhtract, +whichever ammt is greater.
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