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HomeMy WebLinkAboutEmail Last Batch1 From:Francis, Emily Sent:Saturday, May 30, 2026 9:51 PM To:Nick Pardo Cc:Dietrick, Christine Subject:RE: URGENT CLARIFICATION: State Law AB 2782 and Municipal Code 5.44.030(E) Nick, Thank you for the follow up email. Apologies for the delayed response. We had a great deal of correspondence over the last two weeks. I appreciate you bringing this back to the top of the inbox. I will connect with the City Attorney’s office and ensure that our intent is clear in the updates that were made during the May 5 th hearing. Take care and thank you for your advocacy for residents of the mobile home parks. Emily From: Nick Pardo < Sent: Saturday, May 30, 2026 9:00 PM To: E-mail Council Website <emailcouncil@slocity.org>; City_Attorney <City_Attorney@slocity.org>; CityClerk <CityClerk@slocity.org>; City_Attorney <City_Attorney@slocity.org>; CityClerk <CityClerk@slocity.org>; Stewart, Erica A <estewart@slocity.org>; Shoresman, Michelle <mshoresm@slocity.org>; Marx, Jan <jmarx@slocity.org>; Boswell, Mike <MBoswell@slocity.org>; Francis, Emily <EFrancis@slocity.org> Subject: Re: URGENT CLARIFICATION: State Law AB 2782 and Municipal Code 5.44.030(E) Dear Mayor Stewart, City Council Members, and City Attorney Dietrick, I am writing to follow up on the email I sent earlier this month regarding the proposed amendment to Municipal Code Title 5, Chapter 5.44.030(E). I have not yet received a response or confirmation regarding this critical legal clarification. To briefly reiterate, during the May 5th Open Session, the Assistant City Attorney stated that state law rent control exemptions apply to older long-term leases. This is factually incorrect. As of January 1, 2025, the sunset provision in Assembly Bill 2782 took full effect, completely repealing California Civil Code § 798.17. There is no longer any state-level exemption from local rent stabilization for long-term leases, regardless of the date they were signed. I am pressing this issue because the ambiguity matters. Corporate park owners, such as Harmony Communities, have a documented history of aggressively exploiting any silence in local ordinances to push through unauthorized rent increases that far exceed CPI. By simply deleting the exemption from the municipal code without adding a declaratory statement, the city leaves a vacuum of legislative intent. Park owners will inevitably claim that the amendment only applies to new leases, forcing vulnerable residents into expensive legal battles to prove otherwise. We can prevent this entirely by ensuring the ordinance explicitly states one of the following: * "The provisions of this chapter shall apply to all existing and future tenancies, regardless of the date of lease execution." * A direct reference to the updated state statutes for rent control exemptions, ensuring automatic compliance with state law moving forward. 2 Could the City Attorney's office please confirm receipt of this correspondence and clarify that the current amendment does in fact apply protection to *all* long term leases, consistent with State Law intent, and also if the city intends to add explicit protective language to the ordinance moving forward? Thank you for your time, your service to our city, and your dedication to protecting San Luis Obispo's mobilehome residents. Sincerely, Nick Pardo On May 12, 2026, at 20:58, Nick Pardo < wrote: Dear Mayor Stewart, City Council Members, and City Attorney Dietrick, I am writing to provide an urgent factual correction regarding the proposed amendment to Municipal Code Title 5, Chapter 5.44.030(E) regarding Mobilehome Rent Control which was discussed during Open Session on May 5th, 2026. During the meeting (around 1:38 in the recording), Councilwoman Marx raised a question regarding whether the proposed ordinance would apply retroactively to existing leases. Assistant City Attorney Kersten responded that as written, it would not, but minimized the impact, stating the state law only applies to leases signed after February 13, 2020, and not to older leases. Under current California state law, this is no longer accurate. While Assembly Bill 2782 did initially target leases signed on or after February 13, 2020, the legislation included a strict sunset provision for all older leases. As of January 1, 2025, California Civil Code § 798.17 was completely repealed. Consequently, state law no longer provides an exemption from local rent stabilization ordinances for any long-term leases, regardless of whether they were signed decades ago. While I understand the legal distinction that removing Section 5.44.030(E) from our municipal code is not "retroactive" in the sense of recovering past rent increases, the critical point is that removing this loophole will allow the city's rent stabilization protections to apply prospectively to all existing leases moving forward. I urge the city to clarify this, correct the record, and ensure that all existing leases are covered by this provision moving forward. I believe (City Attorney, please confirm) the simple removal of the exemption, coupled with state law already covers all leases moving forward, regardless of when they were signed. However, leaving any ambiguity on this issue leaves long-term mobilehome residents in San Luis Obispo vulnerable to unauthorized rent increases that contradict the current protections guaranteed by state law. To remove any ambiguity, I strongly urge the city council to amend the ordinance to include one of the following: 1. A statement to the effect of: "The provisions of this chapter shall apply to all existing and future tenancies, regardless of the date of lease execution." 3 2. A statement directly referencing/deferring to the state statutes regarding required rent control exemptions (preferred). This method will prevent the need to update the ordinance again the next time state law changes. The current state law went into effect in 2021 but there has been a 5 year lag time to update the local statue that has put residents at risk. Thank you for your ongoing work to align our city ordinance with state law and protect our community's residents. Sincerely, Nick Pardo 6 From:Nick Ubaldi <nick@harmonycom.com> Sent:Thursday, May 28, 2026 11:47 AM To:McDonald, Whitney Cc:Stewart, Erica A; E-mail Council Website; Symens, Sadie; Dietrick, Christine; Tway, Timothea (Timmi) Subject:Re: SLO Mobile Home Park RSO Follow Up Flag:Follow up Flag Status:Completed Hello everyone, I am writing to follow up on my previous email. To date, I have not received any requests for meetings. As a local business owner and one of the stakeholders who will be directly impacted by the proposed change to the ordinance, I remain fully available and would welcome the opportunity to meet with any interested parties. I believe it would be highly valuable for decision-makers to hear firsthand from a local stakeholder on how this proposal will affect businesses like mine, as well as its potential negative impact on affordable housing in our city. Please feel free to reach out if you would like to schedule a discussion at a time that is convenient for you. I am happy to coordinate at your earliest convenience. Thank you for your attention to this important matter. Best regards, -Nick 6653 Embarcadero Dr. Ste C Stockton, CA 95219 Main: (209) 932-8747 nick@harmonycom.com From: Nick Ubaldi <nick@harmonycom.com> Date: Friday, May 22, 2026 at 3:43 PM To: Whitney McDonald <WMcDonal@slocity.org> Cc: Erica A Stewart <estewart@slocity.org>; E-mail Council Website <emailcouncil@slocity.org>; Sadie Symens <ssymens@slocity.org>; Christine Dietrick <cdietric@slocity.org>; Timothea Tway <TTway@slocity.org> Subject: Re: SLO Mobile Home Park RSO 7 Dear Mrs. McDonald, Thank you for your prompt reply. I have never had any issues with police response during my years of ownership. I have had several positive interactions with city officers, who have always been professional and pleasant to work with. In fact, those officers complimented us on the significant improvements at South Peak and Mathews. They expressed amazement at the transformation that has taken place and noted how challenging those parks were a decade ago. Those same officers are the ones who shared with me that they often would not respond to certain calls in those locations in the past. I am very proud of the substantial financial and operational investment we have made to turn these parks around and I appreciated their recognition of that fact. In turn, I want to acknowledge that the city has done an excellent job cleaning up the streets and creek embankments surrounding these properties. The removal of tent cities, encampments, and derelict RVs, which had been associated with repeated vandalism and burglaries impacting residents, is greatly appreciated. I had hoped the progress we have made with these parks would be recognized at the city level, which is why I requested a meeting to discuss the challenges we currently face. I believe it is important to include all stakeholders in these conversations, particularly those providing much-needed affordable housing. I did not see any mention in your email of whether you would be willing to meet. Would you be available for a discussion? I’m ready and available to meet with anyone at the city who would be willing. If the council or any city staff would like to meet please reach out to me directly at this email address. Thank you, -Nick On May 22, 2026, at 12:59 PM, McDonald, Whitney <WMcDonal@slocity.org> wrote: Good afternoon, Mr. Ubaldi. I am forwarding your email to our entire City Council, as this matter involves an item on the June 2, 2026 City Council agenda that our entire City Council will consider. While I do not believe our staff have misinterpreted or misled the City Council in any way concerning the Municipal Code amendments proposed for adoption, I have also copied our City Attorney and Community Development Director for their review of the information you have provided below in case any additional clarifications are needed for the Council’s consideration of this item on June 2nd. Finally, I would like to respond to one particular claim raised in your email. To be clear, in no event do San Luis Obispo Police Officers ever refuse to respond to calls for service. This is true of calls for service to your park and of every other street and neighborhood in our City. Sincerely, Whitney McDonald pronouns (she/hers) City Manager City Administration 990 Palm, San Luis Obispo, CA 93401-3934 8 E WMcDonal@slocity.org T 805.781.7114 C 805.550.8349 slocity.org Stay connected with the City by signing up for e-notifications From: Nick Ubaldi <nick@harmonycom.com> Sent: Friday, May 22, 2026 9:27 AM To: Stewart, Erica A <estewart@slocity.org>; McDonald, Whitney <WMcDonal@slocity.org> Subject: SLO Mobile Home Park RSO Dear Mayor and City Manager, I am writing with urgent concern regarding the proposed amendments to the City’s mobile home park rent stabilization ordinance, specifically the elimination of the long-term leasing provision. As a long-standing business owner in both the City and County of San Luis Obispo, I strongly believe this change would be detrimental. City staff appears to be misinterpreting what AB 2782 did . That legislation removed the long-term lease exemption from state law; it did not outlaw it. The state returned full discretion to local jurisdictions. The City is not required to remove long-term leasing; the decision remains yours. Long-term leases are not a loophole, as City staff has characterized them. This is a talking point advanced by resident activists that is misleading the Council. Rather, they serve as an essential safety valve within the ordinance. They function as mutually agreed-upon rent controls that clearly establish future rent terms for both parties, allowing park owners to address rising costs the current rent structure does not fully accommodate, while continuing to protect existing residents. Without this provision, sustainable operation becomes extremely difficult and park closures are likely, further straining the region’s affordable housing supply. The current ordinance has operated successfully for over thirty years exactly as prior City Councils intended. It does not require revision. Removing the long-term leasing provision now would reverse commitments that property owners have relied upon since its adoption. South Peak provides a compelling example of its value. Ten years ago, it was a derelict property where police often refused to respond to calls. Through nearly $10 million in private investment, made possible by long-term leases, South Peak was transformed it into a clean, well-maintained community that preserves affordable housing the City might otherwise have lost. Today, ninety percent of our residents hold long- term leases, many of whom received contractual discounts at purchase of up to $35,000 per home in direct reliance on the ordinance. We do not believe the City has authority to terminate these existing, lawfully executed leases mid-term. While the City could decline new long-term leases going forward (despite the negative impact such a policy would have on the City’s affordable housing stock), canceling existing contracts would raise serious legal issues. Market space rents in San Luis Obispo average approximately $1,500 per month. Our existing tenants pay roughly $600 on average, with turnover increases capped at just $60 under the current 10% limit, while our operating costs continue to outpace CPI. We respectfully urge the City to maintain the existing ordinance, including the long-term leasing framework that has benefited both residents and the broader community for decades. I am happy to provide supporting data and am available to meet in person or via Zoom to discuss this matter further. Would you be willing to take a 30 minute meeting? -Nick 9 6653 Embarcadero Dr. Ste C Stockton, CA 95219 Main: (209) 932-8747 nick@harmonycom.com 22 From:Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Sent:Wednesday, May 20, 2026 9:05 AM To:Symens, Sadie Subject:Re: [EXT]RE: Mobile Home rent control, Harmony Thank you, Sadie! Get Outlook for iOS From: Symens, Sadie <ssymens@slocity.org> Sent: Wednesday, May 20, 2026 8:53:30 AM To: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Subject: RE: [EXT]RE: Mobile Home rent control, Harmony Hi Ken, They are attached. Best, Sadie Symens pronouns she/her/hers Deputy City Attorney City Attorney's Office E ssymens@slocity.org slocity.org Stay connected with the City by signing up for e-notifications The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney-client privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with publicly accessible records. If you are not the designated addressee named above or the authorized agent responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT (805) 781-7140. Thank you. From: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Sent: Tuesday, May 19, 2026 9:02 AM To: Symens, Sadie <ssymens@slocity.org> Subject: RE: [EXT]RE: Mobile Home rent control, Harmony 23 Thanks, Sadie! Are you able to share the parties' briefs? Sincerely, Ken Jorgensen Deputy District Attorney San Luis Obispo County 1035 Palm Street │San Luis Obispo, CA 93408 (805) 781-5800 │kjorgensen@co.slo.ca.us From: Symens, Sadie <ssymens@slocity.org> Sent: Monday, May 18, 2026 4:59 PM To: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Subject: RE: [EXT]RE: Mobile Home rent control, Harmony Hi Ken, The administrative hearing officer overturned the citation. That decision is attached. The City is not taking further action on this issue but did recently amend its Mobile Home Park Rent Stabilization Ordinance to remove the long- term lease exemption. That ordinance is on the agenda for second reading on June 2, 2026, and will go into effect 30 days thereafter. Thank you, Sadie Symens pronouns she/her/hers Deputy City Attorney City Attorney's Office E ssymens@slocity.org slocity.org Stay connected with the City by signing up for e-notifications The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney-client privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with publicly accessible records. If you are not the designated addressee named above or the authorized agent responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT (805) 781-7140. Thank you. From: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Sent: Monday, May 18, 2026 4:46 PM 24 To: Symens, Sadie <ssymens@slocity.org> Subject: RE: [EXT]RE: Mobile Home rent control, Harmony Hi Sadie, Could you give me an update when convenient? Our office got another call from an owner trying to sell at Southpeak. My direct line is 781-4494. Sincerely, Ken Jorgensen Deputy District Attorney San Luis Obispo County 1035 Palm Street │San Luis Obispo, CA 93408 (805) 781-5800 │kjorgensen@co.slo.ca.us From: Symens, Sadie <ssymens@slocity.org> Sent: Monday, September 15, 2025 8:06 AM To: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Subject: [EXT]RE: Mobile Home rent control, Harmony ATTENTION: This email DID NOT originate from County Staff. Please proceed with caution when interacting with any embedded links or attachments. Hello Kenneth, We have not received any other complaints from other residents. Our Community Development Department has issued an administrative citation to the owners of South Peak Mobile Home Park for raising the space rent upon sale in violation of SLOMC 5.44.060(C), as to one space within the park. That citation has been appealed, and the appeal is set to be heard on September 29th. Thank you, Sadie Symens pronouns she/her/hers Deputy City Attorney City Attorney's Office E ssymens@slocity.org slocity.org Stay connected with the City by signing up for e-notifications The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney-client privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with 25 publicly accessible records. If you are not the designated addressee named above or the authorized agent responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT (805) 781-7140. Thank you. From: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Sent: Wednesday, September 10, 2025 2:54 PM To: Symens, Sadie <ssymens@slocity.org> Subject: Mobile Home rent control, Harmony Hi Sadie, I have received a couple more complaints from residents contending that Harmony is raising base rents when owners are in escrow, trying to sell their units to a new prospective tenant in the park. Are there any updates you can share with me regarding complaints the City has received from other residents? My direct line is 781- 4494. I will be working from my desk for the remainder of the day if you are available for a call. Sincerely, Ken Jorgensen Deputy District Attorney San Luis Obispo County 1035 Palm Street │San Luis Obispo, CA 93408 (805) 781-5800 │kjorgensen@co.slo.ca.us 26 From:Symens, Sadie Sent:Wednesday, May 20, 2026 8:54 AM To:Kenneth Jorgensen Subject:RE: [EXT]RE: Mobile Home rent control, Harmony Attachments:20250923_City Attorney Brief_ADM00040264.pdf; Citation Appeal_FINAL.pdf Hi Ken, They are attached. Best, Sadie Symens pronouns she/her/hers Deputy City Attorney City Attorney's Office E ssymens@slocity.org slocity.org Stay connected with the City by signing up for e-notifications The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney-client privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with publicly accessible records. If you are not the designated addressee named above or the authorized agent responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT (805) 781-7140. Thank you. From: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Sent: Tuesday, May 19, 2026 9:02 AM To: Symens, Sadie <ssymens@slocity.org> Subject: RE: [EXT]RE: Mobile Home rent control, Harmony Thanks, Sadie! Are you able to share the parties' briefs? Sincerely, Ken Jorgensen Deputy District Attorney San Luis Obispo County 27 1035 Palm Street │San Luis Obispo, CA 93408 (805) 781-5800 │kjorgensen@co.slo.ca.us From: Symens, Sadie <ssymens@slocity.org> Sent: Monday, May 18, 2026 4:59 PM To: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Subject: RE: [EXT]RE: Mobile Home rent control, Harmony Hi Ken, The administrative hearing officer overturned the citation. That decision is attached. The City is not taking further action on this issue but did recently amend its Mobile Home Park Rent Stabilization Ordinance to remove the long- term lease exemption. That ordinance is on the agenda for second reading on June 2, 2026, and will go into effect 30 days thereafter. Thank you, Sadie Symens pronouns she/her/hers Deputy City Attorney City Attorney's Office E ssymens@slocity.org slocity.org Stay connected with the City by signing up for e-notifications The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney-client privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with publicly accessible records. If you are not the designated addressee named above or the authorized agent responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT (805) 781-7140. Thank you. From: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Sent: Monday, May 18, 2026 4:46 PM To: Symens, Sadie <ssymens@slocity.org> Subject: RE: [EXT]RE: Mobile Home rent control, Harmony Hi Sadie, 28 Could you give me an update when convenient? Our o Ưice got another call from an owner trying to sell at Southpeak. My direct line is 781-4494. Sincerely, Ken Jorgensen Deputy District Attorney San Luis Obispo County 1035 Palm Street │San Luis Obispo, CA 93408 (805) 781-5800 │kjorgensen@co.slo.ca.us From: Symens, Sadie <ssymens@slocity.org> Sent: Monday, September 15, 2025 8:06 AM To: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Subject: [EXT]RE: Mobile Home rent control, Harmony ATTENTION: This email DID NOT originate from County Staff. Please proceed with caution when interacting with any embedded links or attachments. Hello Kenneth, We have not received any other complaints from other residents. Our Community Development Department has issued an administrative citation to the owners of South Peak Mobile Home Park for raising the space rent upon sale in violation of SLOMC 5.44.060(C), as to one space within the park. That citation has been appealed, and the appeal is set to be heard on September 29th. Thank you, Sadie Symens pronouns she/her/hers Deputy City Attorney City Attorney's Office E ssymens@slocity.org slocity.org Stay connected with the City by signing up for e-notifications The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney-client privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with publicly accessible records. If you are not the designated addressee named above or the authorized agent 29 responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT (805) 781-7140. Thank you. From: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Sent: Wednesday, September 10, 2025 2:54 PM To: Symens, Sadie <ssymens@slocity.org> Subject: Mobile Home rent control, Harmony Hi Sadie, I have received a couple more complaints from residents contending that Harmony is raising base rents when owners are in escrow, trying to sell their units to a new prospective tenant in the park. Are there any updates you can share with me regarding complaints the City has received from other residents? My direct line is 781- 4494. I will be working from my desk for the remainder of the day if you are available for a call. Sincerely, Ken Jorgensen Deputy District Attorney San Luis Obispo County 1035 Palm Street │San Luis Obispo, CA 93408 (805) 781-5800 │kjorgensen@co.slo.ca.us City of San Luis Obispo, City Attorney’s Office, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7140, slocity.org September 23, 2025 TO: Hearing Officer Alex Karlin FROM: J. Christine Dietrick Sadie Symens Re: City Attorney Brief in Support of #ADM00040264 On June 24, 2025, City Code Enforcement issued a Notice of Violation of the City of San Luis Obispo Mobile Home Park Rent Stabilization Ordinance (the “Ordinance”) (SLOMC §5.44.060(C)) to the property owner of South Peak Mobile Home Park, Village Properties LLC, after the City was made aware that South Peak Mobile Home Park imposed a 108% increase in space rent of Space A28. Matt Davies (as purported property manager) promptly sought a director’s review of the NOV. Community Development issued a decision on the Director’s Review on July 10, 2025, affirming the NOV. Code Enforcement then issued an Administrative Citation on July 23, 2025. Mr. Davies timely appealed the citation on July 31, 2025, on behalf of Harmony Communities Inc/South Peak MHP, LLC (“Appellant.”) SLOMC §5.44.060(C) states: The maximum monthly space rent of a tenant may be increased by the owner when there is a change of ownership affecting a mobile home. However, such increase shall not exceed ten percent of the then existing space rent and may not be relied upon any more often than once in any thirty-six-month period as the basis to increase rent. In the event of change of ownership resulting from subletting of the mobile home space as may be allowed by state law, should such become state law, then upon any such subletting the space rent may be increased up to ten percent of the then existing space rent. In the event of change of ownership resulting from vacation of the space, then the space rent may be adjusted to fair market rent in the community. Nothing in this paragraph shall preclude an adjustment as may otherwise be provided for in this chapter. Appellant raises four arguments in their appeal filed on July 31, 2025, which were supplemented by the Appellant’s Administrative Appeal submitted September 19, 2025. The City Attorney’s Office herein summarizes and responds to each argument. Page 2 1. There is no violation of SLOMC 5.44.060(C) because this is a “change of ownership resulting from vacation of the space,” in which case the space rent may be adjusted to fair market rent. It is the City's position that the phrase “In the event of change of ownership resulting from vacation of the space, then the space rent may be adjusted to fair market rent in the community” in SLOMC 5.44.060 refers to the occasion in which the mobile home is removed from the space, the space is vacant (vacation of the space), and a new unit is moved into the space and owned by a new owner. The change in ownership relevant here is instead described in this part of that section: “The maximum monthly space rent of a tenant may be increased by the owner when there is a change of ownership affecting a mobile home. However, such increase shall not exceed ten percent of the then existing space rent and may not be relied upon any more often than once in any thirty-six-month period as the basis to increase rent.” Appellant entered into a settlement agreement of an unlawful detainer (eviction) action brought against former resident Linda Valentine that permitted the unit to remain and be sold in place. Specifically, under the stipulation, signed on March 11, 2025, Ms. Valentine was required to personally vacate the mobile home by June 30, 2025, and has until November 30, 2025, to sell it “onsite.” Appellant has provided no indication that the mobile home is being removed from space A28. Therefore, there is no “vacation of the space” as contemplated by SLOMC 5.44.060(C). The Purpose and Intent statement in SLOMC 5.44.010(E) identifies the precise problem at hand (“Tenants in mobile home parks desiring to sell their mobile homes may have difficulty finding buyers because, upon a change of ownership, the park owner is able to raise the rent without regard to the city’s mobile home rent stabilization ordinance”), and section 5.44.060(C) addresses that problem. Appellant argues that “the City's interpretation would render the provision meaningless, as a ‘new unit... owned by a new owner’ means there could never be a ‘change of ownership resulting from vacation.’” This conclusion appears to disregard the situation in which a mobile home is removed from a space (the space is vacated) and a new mobile home (with a new owner) is moved into that space (in which case the space rent could be adjusted to fair market.) On the contrary, Appellant’s interpretation would render the provision meaningless - if “vacation of the space” referred to the resident vacating the space, that would be the case every time a mobile home was sold to a new owner (since owner occupancy is a requirement of the standard lease terms; see, e.g., Paragraphs 10.1 and 13.2 of the lease agreement attached as Exhibit A to Appellant’s Administrative Appeal), and the limitation on space rent increase upon sale in 5.44.060(C) would be useless. 2. The space A28 unit is an RV, not a mobile home, so 5.44.060(C) does not apply to the space rent of A28. Chapter 5.44 does not define “mobile home,” nor does it exclude RVs (or “trailers,” as is indicated on the unit’s 2018 DMV registration as provided by South Peak) from that definition. The Purpose and Intent statements in Section 5.44.010 make it clear that the Page 3 Ordinance is intended to apply broadly to protect “mobile home tenants,” and, even if the unit was an RV (which the CAO contests, discussed below), it has the characteristics of a mobile home which motivated the City Council to enact the Ordinance: “high cost and impracticability of moving mobile homes, the potential for damage resulting therefrom, the requirements relating to the installation of mobile homes, including permits, landscaping and site preparation, the lack of alternative homesites for mobile home residents, and the substantial investment of mobile home owners in such homes.” Additionally, South Peak has treated the unit as a mobile home since at least 2023, when Linda Valentine purchased the unit from California MHP Investors 3, LLC (which appears to be South Peak’s predecessor) and signed a twenty-year rental agreement for Space A28. The rental agreement refers to the unit as a mobile home throughout. The unlawful detainer stipulation between the parties further refers to the unit as a “mobile home” in Paragraphs 2, 7, and 8, including a statement in Paragraph 8 that rents due between September 2024 through date of sale will be taken out of sale proceeds and paid to park. Finally, an “Information for Prospective Homeowners” document provided by South Peak (the document which reflects the >100% space rent increase) refers to the Mobilehome Residency Law several times (see Attachment A.) Finally, South Peak Mobile Home Park is a mobile home park subject to the Mobilehome Residency Law (MRL) and regulatory oversight by the Department of Housing and Community Development (HCD.) According to the HCD Mobilehome/RV Parks Search, South Peak Mobile Home has 75 mobile home space and zero RV spaces (see Figure 1.) “Mobilehome” under the MRL is defined as “a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code” and also includes “trailers and recreational vehicles of all types...which are used for human habitation if...the trailer or other recreational vehicle occupies a mobile home site in the park for nine or more continuous months commencing on or after November 15, 1992.” Although the unit does not appear to meet the definition of an RV under Health & Safety Code 18010, even if it did, it would still be considered a “mobile home” since it has continuously occupied Space A28 since at least July 2023 when Linda Valentine signed her lease. Figure 1: Search result for South Peak Mobile Home Park on HCD’s website In sum, this unit (see Figure 2 below) does not appear to meet any relevant definition of an RV, is otherwise considered a mobile home under the MRL, and, in any case, is not exempt from the Mobile Home Park Rent Stabilization Ordinance which was clearly intended to protect all residents in tenancy at a mobile home park, which South Peak unequivocally is. Page 4 Figure 2: Linda Valentine’s mobile home parked in Space A28 of South Peak Mobile Home Park 3. Linda Valentine’s tenancy in space A28 was the product of a twenty year lease, so the tenancy is exempt from the Mobile Home Park Rent Stabilization Ordinance under Section 5.44.030(E). The Ordinance exempts long-term leases (longer than 12 months) from its annual rent increase limitations: The provisions of this chapter shall not apply to the following tenancies in mobile home parks: … E. Tenancies covered by leases or contracts which provide for a tenancy of more than a year, but only for the duration of such lease or contract. Upon the expiration of or other termination of any such lease or contract, this chapter shall immediately be applicable to the tenancy. No rent increases other than that allowed under the provisions of the lease shall be allowed during the duration of such a lease or contract. (SLOMC 5.44.030(E).) Ms. Valentine’s eviction settlement agreement does not stipulate as to final date of tenancy, but, based on the timing of relevant events, South Peak initiated a “short term” tenancy by compelling Ms. Valentine (and her daughter) to vacate the unit, Page 5 allowing Ms. Valentine to maintain the unit in place (and to occupy it until June 30, 2025) and to sell the mobile home in place by November 30, 2025. The park served a notice of termination of tenancy based on violation of park rules and regulations on August 20, 2024. Under the Mobilehome Residency Law, a tenancy cannot be terminated upon fewer than 60 days. (Civ. Code § 798.55.) Assuming the park served a 60-day termination notice, Ms. Valentine’s tenancy would have terminated on October 19, 2024. However, the settlement agreement, executed on March 11, 2025, allowed Ms. Valentine to personally remain in the mobile home until June 30, 2025. If Ms. Valentine timely vacated by that date (which the City is informed she did), she would be permitted to conduct an onsite sale of “Defendant’s mobilehome” through November 30, 2025. The agreement stipulated that “as a further condition of the on-site sale, all rents from September 2024 to and through the date of sale of the mobilehome shall be paid out of the sale proceeds of the mobilehome to a park approved buyer.” Ms. Valentine was therefore permitted to occupy the mobile home on a short-term basis between October 2024 and June 30, 2025, and continued to have the right to sell (although not the right to occupy) the mobile home between June 30, 2025, and November 30, 2025. Those terms are quite different from those in the original 20 year lease. Appellant’s termination of the long-term lease removed Ms. Valentine’s mobilehome tenancy in Space A28 from the long-term lease exemption, since that exemption, by its terms, no longer applies “upon the expiration of or other termination of any such lease or contract,” at which point the chapter “shall immediately be applicable to the tenancy.” Per the stipulated agreement, the original long-term tenancy was re-negotiated out of the long-term lease and is currently comprised of Ms. Valentine’s right to maintain the unit on the existing space from the date of the agreement (March 11, 2025) until sale in place by November 30, 2025, to a buyer approved by the park who will, presumably, enter into a subsequent lease with the new owner. So, in effect, the settlement agreement, following the notice of termination of tenancy, established new short term lease terms running from March to November 2025, and was not of a duration to constitute an exempt long-term lease under the City’s regulations. The long- term lease has been terminated and no longer operates as an exemption to the City’s ordinance limiting increases upon sale or transfer in place. In their Administrative Appeal, Appellant argues that upon sale of the unit, the “Lease is assigned to the buyer, continuing the same 20-year agreement without creating a new tenancy.” Appellant cannot have it both ways – either the long-term lease remains in place and binding on the subsequent owner, limiting the permissible rent increase to those amounts set forth in the lease for the 20 year term, or the long-term lease has been terminated and no longer operates as an exemption to the City’s ordinance limiting increases upon sale or transfer in place. Appellant has argued that the exemption for long-term leases under SLOMC § 5.44.030(E) was a “deliberate policy choice.” However, this exemption was a requirement under state law (Civ. Code §798.17.) California Assembly Bill 2782 modified Civil Code section 798.17 and, as of January 1, 2025, no longer requires that cities with local mobile home stabilization ordinances exempt long-term leases from their ordinance. Page 6 4. “Pursuant to Cal. Civ. Code section 798.73, the Park may require the removal of an RV upon sale.” Although Appellant has not elaborated on this statement or explained its relevance, the City Attorney’s office interprets it to assert that the park could require removal of an RV from the park upon sale under the Mobilehome Residency Law, in which case the space would be “vacated,” and the rent increase limitations of SLOMC 5.44.060(C) would not apply. However, the basis for removal apparently relied upon by the Park (Civ. Code 798.73(a)) only allows removal if the mobile home “is not a ‘mobilehome’ within the meaning of Section 798.3.” Section 798.3 (of the Civil Code) includes in the definition of “mobilehome” a “trailer or recreational vehicle [that] occupies a mobilehome site in the park for nine or more continuous months commencing on or after November 15, 1992.” This unit has occupied the space continuously since at least 2023. So, even accepting Appellant’s argument that the unit is an RV, it is a “mobilehome” for the purposes of the Mobilehome Residency Law, and the park’s argument that they could remove it upon sale therefore fails under their own cited authority. CONCLUSION Appellant violated SLOMC 5.44.060(C) by raising the monthly space rent for Space A28 from $767.91 to $1,595. The space rent increase provisions at issue regulate the amount the Appellant may charge for the space upon a change in ownership of the unit occupying the space, not on who is occupying that unit at the time of sale. SLOMC 5.44.060(C) limits the permissible increase in rent for the space where Appellant expressly agreed the unit could be sold in place, notwithstanding the contemplated change of the resident who will ultimately be entitled to occupy the unit in Space A28. The space itself is not being “vacated,” so the rent cannot be increased to market rate. The unit – whether a mobile home (which it appears to be) or an RV – occupying space A28 is not exempt from the provisions of the Ordinance, nor does the long-term lease exemption apply because Appellant created a new, short-term tenancy when Appellant terminated Linda Valentine’s lease effective October 2024, executed a settlement agreement in March 2025 permitting her to stay in the mobile home for a period of approximately three months, and to sell the mobile home within approximately five months thereafter. The limitation on increase upon change of ownership in SLOMC 5.44.060(C) applies, and the maximum increase Appellant could have charged was ten percent of the then-existing space rent. Appellant issued a 108% space rent increase, and the administrative citation should be upheld. Attachments A – Information for Prospective Homeowners (May 1, 2025) Attachment A U.S. Postal Service™ C E R TIF IED MAIL® RECEIPT Domestic Mail Only er cO .:r- ,--'I ~ _! S E. rn 006 Y D 2 lL>t.\ □ >-=$~~~-~~~-------~-. LO Extra Services & Fees (check box, add fee as appropriate) ,--'I D Return Receipt (hardcopy) $ _ D Return Receipt (electronic) $ _ □ D Certified Mail Restricted Delivery $ _ I"'- D Adult Signature Required $ ---~-- ru D Adult Signature Restricted Delivery. $ Ul - __ F_c>_r delive!y information, visit our website at www.usps.com®. Postmark Here □ ,--'I ci :Village Properties LLC a CA LLC/Harmony Communities '6653 Embarcadero Dr. Suite C ~ .stockton, CA 95219 Ul er ( PS Form 3800, January 2023 PSN 7530-02-000-9047 See Reverse for Instructions 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 APPELLANT’S ADMINISTRATIVE APPEAL Jason Dilday SBN: 215968 6653 Embarcadero Drive, Ste C. Stockton, CA 95219 (209) 653-7575 jason@harmonycom.com Attorney for Appellant CITY OF SAN LUIS OBISPO ADMINISTRATIVE HEARING In the matter of: Village Properties LLC, a California limited liability company/Harmony Communities Administrative Citation Appeal Administrative Citation: ADM 00040264 APPELLANT’S ADMINISTRATIVE APPEAL INTRODUCTION Village Properties LLC, a California LLC / Harmony Communities (the "Park" or "Appellant"), hereby submits this written appeal of Administrative Citation #ADM 00040264 issued by the City of San Luis Obispo (the "City") on or about July 2025. This appeal is submitted pursuant to Chapter 1.24 of the San Luis Obispo Municipal Code ("SLOMC") and the Notice of Hearing Officer Review dated September 4, 2025. As elected in our initial appeal filing on July 31, 2025, we request a review on the record without a live hearing. The citation alleges a violation of SLOMC Chapter 5.44 (Mobile Home Park Rent Stabilization Ordinance, or "Ordinance") based on the Park's proposed rent adjustment for Space A28 upon the anticipated change of ownership of the recreational vehicle ("RV") located there. Specifically, the City claims the proposed adjustment to fair market rent (approximately 108% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 APPELLANT’S ADMINISTRATIVE APPEAL above the prior rent) violates SLOMC § 5.44.060(C), which limits increases to 10% upon a change of ownership of a "mobile home" that does not result in vacation of the space. For the reasons set forth below, the citation is without merit and should be reversed and dismissed in full. The proposed rent adjustment complies with the Ordinance and applicable law. The unit on Space A28 is an RV, not a "mobile home" subject to the Ordinance. Further, Ms. Linda Valentine (the current owner) has vacated the space, triggering the fair market rent provision of SLOMC § 5.44.060(C). Finally, the tenancy is governed by a long-term lease that expressly exempts it from the Ordinance under SLOMC § 5.44.030(E). Supporting evidence, including the lease agreement, correspondence, and DMV registration, is attached as Exhibits A– F. FACTUAL BACKGROUND South Peak Mobile Home Park is a mobile home park within the meaning of SLOMC § 5.44.020(B). Space A28 is subject to a Long Term Rental Agreement (the "Lease") dated July 13, 2023, between the Park and Ms. Valentine (and her co-owner, Vanessa Valentine). (Exhibit A: Lease.) The Lease is for a 20-year term and expressly states on its first page that it "WILL BE EXEMPT FROM CITY OF SAN LUIS OBISPO MOBILE HOME PARK RENT STABILIZATION ORDINANCE TITLE 5, CHAPTER 5.44." The RV on Space A28 is a 1995 Fleetwood Terry Resort trailer, registered as a vehicle with the California Department of Motor Vehicles ("DMV") (not the Department of Housing and Community Development ("HCD")), and designed for mobility. (Exhibit B: 2018–2019 DMV Registration Card; Exhibit C: Purchase Agreement.) Ms. Valentine has vacated Space A28 and is selling the RV. Her attorney confirmed this in writing on June 25, 2025: the RV is to "remain vacant until sold," and Ms. Valentine is no longer entitled to occupy it. (Exhibit D: June 25, 2025 Email from Counsel.) Upon sale, the new owner will assume the long-term lease adjusted to fair market rent, as permitted by section 5.2 of the Lease. The City's May 30, 2025 letter (Exhibit E) asserted a potential violation, claiming the RV qualifies as a "mobile home" under the Ordinance and California Civil Code § 798.3(b) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 APPELLANT’S ADMINISTRATIVE APPEAL (Mobilehome Residency Law, or "MRL"), and that the 10% limit applies. The Park responded on July 19, 2025, explaining why the Ordinance does not apply. (Exhibit F: Park's Email Response to Sadie Symens.) Despite this, the City issued the citation. LEGAL ARGUMENTS The Ordinance does not apply to the facts here for at least three independent reasons. The Hearing Officer should reverse the citation on any one of these grounds. A. The Unit on Space A28 Is an RV, Not a "Mobile Home," and Thus Not Subject to the Ordinance The Ordinance regulates "mobile home parks" and "mobile homes" but does not define "mobile home." SLOMC § 5.44.020. Courts interpret undefined terms based on their ordinary meaning and the Ordinance's purpose. (See SLOMC § 5.44.010 (Purpose and Intent).). Courts interpret undefined terms based on their ordinary meaning and legislative purpose (see Yee v. Mobilehome Bd. (1992) 503 U.S. 519, 528). The Purpose and Intent (§ 5.44.010(C)) emphasize protections for structures with "high cost and impracticability of moving mobile homes, the potential for damage resulting therefrom, the requirements relating to the installation of mobile homes, including permits, landscaping and site preparation, [and] the lack of alternative homesites for mobile home residents." RVs like the one on Space A28 do not share these characteristics: they are designed for easy relocation, registered with the DMV as vehicles (not HCD as structures), and lack permanent installation requirements. Moving an RV incurs minimal cost or damage risk compared to a true mobile home, which is installed on the site. The City's reliance on MRL § 798.3(b) is misplaced. The Ordinance, last amended in 1992, predates § 798.3(b) and does not incorporate it. Local ordinances are not automatically amended by subsequent state law absent explicit adoption. At enactment, the MRL definition explicitly excluded RVs: “Mobilehome… does not include a recreational vehicle” (Cal. Civ. Code § 798.3 (1988 version)). Even under current § 798.3(b), RVs receive only limited protections after nine months’ occupancy, and § 798.73 expressly allows parks to require RV removal upon sale. The Ordinance’s silence on RVs cannot override this distinction. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 APPELLANT’S ADMINISTRATIVE APPEAL The 10% limit in SLOMC § 5.44.060(C) applies only to "change of ownership affecting a mobile home." Without a mobile home, the limit does not apply, and the Park may set fair market rent upon turnover. B. Ms. Valentine Has Vacated the Space, Triggering Fair Market Rent Under SLOMC § 5.44.060(C) Even assuming arguendo the RV qualifies as a mobile home, the 10% limit does not apply. SLOMC § 5.44.060(C) states: "In the event of change of ownership resulting from vacation of the space, then the space rent may be adjusted to fair market rent in the community." Ms. Valentine has "permanently vacated the space" by agreement with her counsel, leaving the RV vacant pending sale. This is a “change of ownership resulting from vacation of the space,” allowing adjustment to fair market rent. The Director’s contrary interpretation—that “vacation of the space” requires physical removal of the unit—renders the text meaningless. If a unit is removed, there is no “change of ownership” of that unit in the space. Statutes must be interpreted to avoid surplusage (see Kaanaana v. Barrett Business Services, Inc. (2021) 11 Cal.5th 158, 168–170). The only reading that gives effect to both clauses is that “vacation” refers to the tenant vacating, not physical removal. The City's interpretation would render the provision meaningless, as a "new unit... owned by a new owner" means there could never be a "change of ownership resulting from vacation." The Ordinance's intent (§ 5.44.010(F)) supports vacancy decontrol to protect sales in place, but only where the space is not vacated. Here, it is vacated, so fair market rent applies. C. The Long-Term Lease Exempts Space A28 from the Ordinance SLOMC § 5.44.030(E) expressly exempts from the Ordinance’s rent stabilization provisions: “Tenancies covered by leases or contracts which provide for a tenancy of more than a year, but only for the duration of such lease or contract.” This is a deliberate policy choice balancing tenant security with incentives for long-term stability (see Guggenheim v. City of Goleta (9th Cir. 2010) 638 F.3d 1111, 1120). The Lease for Space A28 qualifies unequivocally under this exemption. Executed on July 13, 2023, it establishes a 20-year initial term, far exceeding the "more than a year" threshold 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 APPELLANT’S ADMINISTRATIVE APPEAL (Exhibit A, Lease, p. 1 and § 1.1, defining the "Initial Term" as 20 years from commencement). The Lease prominently features a boldface notice on its first page stating: "THIS LONG TERM RENTAL AGREEMENT WILL BE EXEMPT FROM CITY OF SAN LUIS OBISPO MOBILE HOME PARK RENT STABILIZATION ORDINANCE TITLE 5, CHAPTER 5.44, A COPY OF WHICH IS ATTACHED." Ms. Valentine (and co-owner) signed the Lease, acknowledging its terms, including the attachment of the full Ordinance text for her review. This notice and structure align with best practices for long-term agreements, ensuring transparency and informed consent. The proposed rent adjustment upon change of ownership is explicitly authorized by the Lease and falls within the exemption's scope. Section 5.2 provides: "the rent shall be increased effective upon the transfer of this Agreement and/or one month before the expiration of the Initial Term of this Agreement to an amount determined by Park to be the fair economic rental value ('Market Rental Value') for the Site." Additionally, § 21.1 mandates assignment of the Lease upon sale: "This Agreement is subject to a mandatory assignment…" Upon Ms. Valentine's sale of the RV, the Lease is assigned to the buyer, continuing the same 20-year agreement without creating a new tenancy. The exemption applies "for the duration of such lease or contract," meaning it persists through the assignment, covering the rent adjustment as a term of the ongoing Lease. This is not a circumvention of the Ordinance but a direct application of its exemption, allowing park owners to negotiate market-based adjustments in long-term arrangements while providing tenants with extended security. The City's position ignores this clear exemption. The SLO Ordinance retains § 5.44.030(E) without amendment. Absent a local amendment removing the exemption—none of which has occurred based on available records—the provision remains in full force. The Leas e, signed in 2023, is thus exempt under local law. This interpretation advances the Ordinance's equitable goals (§ 5.44.010(G)), encouraging long-term leases that provide predictability for residents while enabling owners to recover fair returns upon turnover. Enforcing the 10% limit here would contravene the plain language of § 5.44.030(E), discourage long-term investments, and retroactively undermine 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 APPELLANT’S ADMINISTRATIVE APPEAL agreements entered in reliance on the exemption. The Hearing Officer should uphold the exemption and find no violation, as the proposed adjustment complies with the Lease terms during its exempt duration. THE CITATION SHOULD BE REVERSED TO AVOID BROADER HARM Reversing the citation aligns with the Ordinance’s equitable goals. If the City’s expansive interpretation is upheld, park owners will be compelled to enforce stricter policies—such as requiring RV removal upon turnover, as authorized by Civil Code § 798.73—which would reduce flexibility for in-place sales and likely harm residents. A faithful reading of Chapter 5.44 avoids these unintended consequences. REQUEST FOR RELIEF The Appellant respectfully requests that the Hearing Officer reverse the citation, find no violation of SLOMC Chapter 5.44, and dismiss Administrative Citation #ADM 00040264 in full. No fines, penalties, or further action should be imposed. If additional information is needed, we are available at the contact details above. Dated: September 19, 2025 Jason Dilday Attorney for Appellant EXHIBIT A r r THIS LONG TERM RENTAL AGREEMENT WILL BE EXEMPT FROM CITY OF SAN LUIS OBISPO MOBILE HOME PARK RENT STABILIZATION ORDINANCE TITLE 5, CHAPTER 5.44, A COPY OF WHICH IS ATTACHED. Lot: A28 SOUTH PEAK MHP LONG TERM RENTAL AGREEMENT THIS RENTAL AGREEMENT IS AN IMPORTANT DOCUMENT THAT HAS LEGAL CONSEQUENCES. IT IS RECOMMENDED THAT HOMEOWNER HAVE IT REVIEWED BY AN ATTORNEY PRIOR TO EXECUTING THE DOCUMENT. This Park is an Equal Housing Opportunity Provider We do business in accordance with the Federal Fair Housing Law (!) ~ IT IS ILLEGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, NATIONAL ORIGIN, RELIGION, SEX, HANDICAP OR DISABILITY, FAMILIAL STATUS, MARITAL STATUS, SEXUAL ORIENTATION OR ANY OTHER PROTECTED CLASS. South Peak LONG-reRM R£KTAL.AOREEMENT This RENTAL AGREEMENT (hereinafter "Agreement'') is made and entered into this 13th day of July, 2023 or upon escrow closing, by and between the owner of South Peak MHP (hereinafter the "Owner") and those persons who have signed this Agreement, Linda Valentine & Vanessa Valentine as the homeowner(s) (hereinafter collectively the "Homeowner''). HOMEOWNER ACKNOWLEDGES AND REPRESENTS : HOMEOWNER EITHER OWNS OR IS PURCHASING THE MOBILEHOME ON THE LOT AND ANY ACCESSORY STRUCTURES BUT IS NOT PURCHASING THE LOT OR LAND WITHIN THE PARK. OWNERSHIP OF THE LOT AND LAND REMAINS WITH THE OWNER. ADJACENT PROPERTY IS, OR MAY BE, CAUSING ENVIRONMENTAL HAZARDS SUCH AS NOISE, DUST, ODOR, NOXIOUS FUMES, ETC. HOMEOWNER FOREVER RELEASES AND DISCHARGES OWNER FROM ANY DAMAGE OR INJURY WHICH HOMEOWNER HAS SUFFERED, OR MAY SUFFER, TO THE FULLEST EXTENT PERMITTED BY LAW. HOMEOWNER HAS CONDUCTED AN INDEPENDENT INVESTIGATION OF THESE MATTERS. HOMEOWNER ASSUMES ALL RESPONSIBILITY FOR THE MOBILEHOME, INCLUDING, BUT NOT LIMITED TO, TITLING AND REGISTRATION, PAYMENT OF TAXES, INSURANCE, GOVERNMENT FEES, AND MAINTENANCE OF THE MOBILEHOME AND ACCESSORY EQUIPMENT. OWNER MAKES NO REPRESENTATION RESPECTING HOMEOWNER'$ ABILITY TO SELL THE MOBILEHOME FOR THE PRICE PURCHASED OR FOR ANY OTHER PRICE. OWNER HAS NO OBLIGATION TO TAKE ANY ACTION TO PRESERVE THE VALUE OF HOMEOWNER'S MOBILEHOME. HOMEOWNER AGREES THAT OWNER IS NOT RESPONSIBLE FOR ANY CONDITION THAT AFFECTS MOBILEHOME SALES PRICES INCLUDING RENT TO BUYER, LEASE TERMS OFFERED TO BUYER OR CONDITION OF OTHER MOBILEHOMES IN PARK, OTHER THAN IMPOSED BY LAW OR NOT WAIVABLE LEGALLY. HOMEOWNER'S TENANCY WITH OWNER IS SUBJECT TO TERMINATION UNDER ANY AND ALL PROVISIONS OF THE CALIFORNIA MOBILEHOME RESIDENCY LAW. South Peak LOH~ TERM RENTAL AGREEMENT PAMZ 1. SPECIFIC INFORMATION. 1.1 Lot: Owner agrees to rent to Homeowner and Homeowner agrees to rent from Owner the Lot No. A28 {hereinafter the "Lot") in South Peak MHP. 1.2 Term: The tenancy created under this Agreement shall be for the following term : (Check one:) Ten (10) year lease commencing on ___ and ending on ___ _ X Twenty (20) year lease commencing on 07/13/2023 and ending on 6/30/2043 The term of this Agreement will automatically renew for the same term {i.e. 10 years or 20 years) unless terminated prior to expiration. 1.3 Rent and other Charges: Base Rent Guest Fee Late Rent Charge Check Handling Charge Security Deposit 1.4 Utilities: The beginning rent shall be $695.00 per month. Thereafter, unless otherwise prohibited by law, the Base Rent will be increased annually pursuant to paragraph 5. 1. $ ________ per month . $50 $35 $695.00 1.4.1 Provided and separately billed to Homeowner, or paid by Homeowner to Utility: Utility Paid by Homeowner to Park Will Bill Monthly Utility Natural Gas X Electricity X Water X Telephone X Cable 1V X Sauth Peak LONG-TERM RElfTALAGREEMENT PAOE3 r r Internet X Trash X Sewer X 1.4.2 Provided without separate charge to Homeowner: Utility Provided without charge by Park Natural Gas Electricity Water Telephone Cable TV Internet Trash Sewer 1.5 Occupants of mobilehome upon the commencement date of this Agreement: 1.5.1 Homeowner(s) as listed on the last page of this Agreement. 1.5.2 ADDITIONAL RESIDENTS: XNone Names: 1.5.3 ADDITIONAL OCCUPANT($) WITH NO RIGHTS OF TENANCY PURSUANT TO CALIFORNIA CIVIL CODE SECT. 798.34(e): XNone One (1} companion:. ______________ _ Live-in caregiver: _______________ _ Family member under care of senior: ________ _ 1.6 The specific information provided in this paragraph 1 is only a summary and is more fully detailed in this Agreement. South Peak LONIP TERM RENTAi. AGREEMENT r 2. DEFINITIONS. The definitions set forth below shall apply unless more specifically defined within another provision of this Agreement. Note, unless otherwise stated, the terms defined herein are not the definitions set forth in the Mobilehome Residency Law (California Civil Code §§ 798 et seq.). 2.1. "Park" means South Peak located at 145 South Street, San Luis Obispo, CA 93401. 2.2. "Homeowner," encompasses the definition set forth in the Mobilehome Residency Law and means, that person(s) who has/have a tenancy in the Park pursuant to this Agreement. 2.3. "Owner" means the legal owner{s) of the Park, except for the following: For those provisions of this Agreement that are for the protection or benefit of Owner (including, but not limited to, provisions that waive Homeowner's claims or rights, release or discharge Owner, or acknowledge, represent or warrant to Owner), "Owner" includes Owner's past, present and future principals, and representatives including but not being limited to Owner's professional management companies, independent contractors, employees, agents and attorneys. The parties agree that this definition provides more protection to these managers and other representatives than they would otherwise enjoy, but the parties acknowledge that said managers and representatives have such protections here. 2.4. "Resident," as defined in the Mobilehome Residency Law is a homeowner or other person who lawfully occupies a mobilehome. 2.5. "Additional Occupant" includes persons sharing the Lot pursuant to California Civil Code§ 798.34, such as a guest, companion, live-in caregiver, or family member under the care of a senior. 2.6. "Common Facilities of the Park," "Park Facilities" and "Common Areas" mean those facilities of the Park generally available for use by Resident(s) and their [accompaniedJ guests. 2.7. "Lot" means the real property portion of the Park designated or used for the occupancy of one mobilehome, which real property is rented to Homeowner by Owner, and the area one foot below and 16 feet above grade. The boundaries of the real property rented to Homeowner shall be the lesser of either (1) the lot lines as determined by a governmentally approved survey or by a recorded plot plan, if applicable, or (2) the apparent physical boundaries of the Lot as they exist at the time of execution of this Agreement. However, if the area necessary to comply with setback requirements of state and local agencies comprises a smaller area than stated above, then this smaller area shall comprise the "Lot." 2.8. "Mobilehome Residency Law" means those provisions of the California Civil Code §§ 798 et seq. which are known as the "Mobilehome Residency Law" (induding any future changes to it, except to the extent such change operates to the South Peak LONG-TERN RENTAL AOREENENT PAGES r detriment of Owner, in which case such change shall be recognized only to the extent required by law). 2.9. "Owner's approval" or "approval of Owner," "Owner's consent" or "consent of Owner" or other similar terms as used in this Agreement or in other documents referred to in this Agreement, means that the Owner's prior written approval must be obtained by Homeowner before Homeowner commences any such action requiring Owner's approval. If Owner's prior written approval is required, Homeowner shall submit a written request to Owner, which describes the action Homeowner proposes to take and for which Owner is requested to give prior written approval. Without limiting the foregoing, Homeowner agrees that if Homeowner does commence any construction, alterations and/or improvements without Owner's approval, Homeowner will remove such unapproved items immediately upon notice by Owner. 2.10. "Rules and Regulations" or other similar terms as used in this Agreement or in other documents referred to In this Agreement, means those rules described in Civil Code§ 798.15(b) and§ 798.25 (as may be amended). 3. PAYMENT OF RENT1 UTILITIES, INCIDENTAL REASONABLE SERVICE CHARGES AND SECURITY DEPOSIT. 3.1. Homeowner shall pay in advance (without deduction or offset to the fullest extent of the law) to Owner on the first day of each month: 3.1.1. The Base Rent as defined in paragraph 1.3. 3.1.2. All utility charges billed to Homeowner by Owner during the month. 3.1.3. The guest fee listed in paragraph 1.3 above shall be assessed for each calendar month or any portion thereof. for each guest who has stayed more than a total of twenty (20) consecutive days or a total of thirty (30) days in any calendar year. Such guest fee shall commence the day after a guest has exceeded the grace time specified in the preceding sentence and shall be payable in full for each calendar month or portion thereof. 3.1.4. Such other amounts and charges as are set forth herein, authorized or required by law, or added or increased as provided by law or this Agreement or amendments thereto. Utilities, late charges, and incidental reasonable service charges may be adjusted by Owner at any time to the fullest extent permitted by law. 3.2. Rent. The Rent shall include the Base Rent, defined in paragraph 1.3, and all additional rent as set forth in this Agreement. 3.3. Rent shall be paid by check, cash or money order at the Park Office located at 145 South Street, San Luis Obispo, CA 93401, or such other address as provided by Owner upon notice to Homeowner. If any tendered payment of Rent is dishonored by the bank for Non-Sufficient Funds (NSF) or Stop Payment, Owner may, upon at least ten (10) days' written notice to Homeowner, require payment to be made in cash or equivalent for a period not to exceed three (3) months after the date of notice South Peak LON~ TERM REHTAL AORliEMENT PAGE6 r from the Owner as provided by law. If the rent is not paid to the office by 5:00 p.m . on the sixth (6th) day of the month, the late charge specified in paragraph 1.3 above shall be charged. The acceptance by Owner of any late or partial payment shall not constitute a waiver of any breach of any term or provision of this Agreement. 3.4. Security Deposit. Any new Homeowner moving into the Parle shall be required to, upon execution of this Agreement, deposit the amount specified in paragraph 1.3 above as a security deposit for the performance by Homeowner of the provisions of this Agreement. In the event Homeowner defaults on any provision of this Agreement, Owner may use the security deposit, or any portion of it, to cure any default on any of the provisions of this Agreement. In addition, Homeowner shall, on demand, immediately pay to Owner a sum equal to the portion of the security deposit expended or applied by Owner in this paragraph, so as to maintain the security deposit in the sum initially deposited by Owner. In no event shall the security deposit held by Owner exceed twice the initial Base Rent. Owner may maintain the security deposit with Owner's general and other funds. Owner will not be required to pay to Homeowner interest on the security deposit. 3.5. If Homeowner is not in default upon the expiration or termination of this Agreement, Owner shall return the security deposit or any balance thereof, to Homeowner within twenty-one (21) days after termination of tenancy. If Homeowner is in default, Owner shall refund the full amount of the security deposit less any amounts owing to Owner by Homeowner for rent, utilities, or other charges due, but unpaid by Homeowner at the time Homeowner vacates the Parle. 4. UTILITIES. 4.1. Owner shall provide and separately bill to Homeowner for the utilities set forth in paragraph 1.4.1. above. Upon sixty (60) days· prior written notice to Homeowner, Owner may require Homeowner to contract with the appropriate utility provider for service and to pay directly for one or all of the utilities which have previously been separately billed to Homeowner. In such event, Homeowner may be required to pay a deposit to the utility provider and/or may be charged at a rate for the utility or service which differs from the rate then currently charged by the Park. 4.2. Utilities will be billed monthly, in arrears. Utility rates charged by Owner which are governed and set by law (such as electricity, gas) shall be billed at the maximum rate as allowed by law. Utilities not so governed shall be charged by Owner to Homeowner by, at the election of Owner, one of the following: 4.2.1 . The rate and fees charged by the servicing utility or utility provider in the area in which the Park is located for delivering said utility and utility services to single family detached residences. 4.2.2. The amount billed to Owner by the providing utility and utility service for the entire Park, divided by the number of spaces in the Park . In determining these amounts, the charges may, at the election of Owner, be annualized and be considered on a full twelve (12} month basis. South PPk LONG, TERM RENTAL AGREEMENT PAGE7 r 4.2.3. Any method reasonably determined to be fair by Owner. Homeowner shall contract with the appropriate utility company or provider and pay directly for all other utilities and/or services, such as telephone, cable T .V. and Internet, as required or desired by Homeowner. 4.3. Owner shall not be liable for any loss or injury, and Homeowner shall not be entitled to any abatement or reduction of Rent by reason of Owner's failure to furnish any of the foregoing utilities when failure is caused by accident, breakage, repairs, strikes, or other labor disputes or by any other cause, similar or dissimilar, beyond the reasonable control of Owner. Homeowner acknowledges that any interruption of any utility service beyond control of Owner is not cause for non-payment or deduction of any amount billed to Homeowner by Park. (Please Note: The provisions of the paragraph below entitled "INDEMNIFICATION" apply to this paragraph.) 4.4. Utilities are provided by utility companies and other service providers to the Park, and Owner is not responsible for any variances or problems in the quality of utilities provided by utility companies and/or service providers. Such variances include, but are not limited to, the condition, taste, color or smell of water; interruption of gas or electrical service; or problems with gas, electrical, water or sewer systems on Homeowner's side of the meter or hookup or outside of Owner's side of its meter or hookup to the serving utility. 4.5. Homeowner shall not connect, except through existing electrical or natural gas outlets or water pipes on the Lot, any apparatus or device for the purposes of using electric current, natural gas, or water. 4.6. Homeowner is responsible for detennining that Homeowner's mobilehome as well as all appliances and additional equipment used on or at the Lot is compatible with the electric service of the Park, and Homeowner agrees and acknowledges that Park has no liability or responsibility to Homeowner if the available electrical supply is not compatible. In such instance, Homeowner shall reduce draw on the electrical system to compatibility. 4.7. Homeowner is responsible for maintenance and repair of all utility lines (including, but not limited to, wiring, cabling, gas lines, water pipes, sewer pipes or conduit) between the Park's utility connection for the Lot and Homeowner's mobile home. 4.8 . Whenever it is necessary for Owner to make repairs or improvements to the Park's utility systems, Owner will have the right to suspend temporarily the delivery of the affected utility/utilities. However, a reasonable notice will be given to Homeowner as c ircumstances permit. All such repairs and/or improvements will be completed as rapidly as may be practical and, if possible, at such times which will cause the least inconvenience to Homeowner. 4.9. Homeowner agrees to review all utility billing statements and to notify Owner in writing of any issues detected within thirty (30) days of receipt thereof. 4.10. Homeowner agrees to cooperate with Owner in all matters affecting the Park and its operation, including, but not limited to, any effort by the Park to install solar South Peak LOIIIG-TERN RENTAL AGI\EEMENT PAGE 8 r energy and/or tum over the natural gas and electrical systems to the serving utility or its affiliates, and any efforts to comply with drought compliance regulations and fire prevention efforts. 4.11. Proposition 65 Warning: The Lot as well as the Common Areas in and around the Park contain at least one of the chemicals known to the State of California to cause cancer or reproductive toxicity and for which warnings are now required. These chemicals include, but are not limited to: tobacco, smoke, lead and lead components, asbestos, chlorine, carbon monoxide and gasoline components. For more information, go to www.P65Warnings.ca.gov. 5. RENT ADJUSTMENT NOTICES. 5.1. On January 1 of each subsequent year (hereinafter the "Anniversary Date"), and each year thereafter, the Base Rent then in effect shall be Increased by an amount determined by multiplying the rent then in effect by the percentage increase in the Consumer Price Index (uCPI") for All Urban Consumers for San Jose-Sunnyvale- Santa Clara. CA as published by the United States Department of Labor, Bureau of Labor Statistics, plus two percent (2%), during the twelve (12) month period between August of the prior year and August of the current year. However, in no event shall the increase adjustment under this paragraph be less than four and ninety-five hundredths percent (4.95%) or greater than eleven percent (11 %) over the prior year's rent if the term of the Agreement as set forth in paragraph 1 .2 above is a 10-year term or three and ninety-five hundredths percent (3.95%) or greater than nine percent (9%) over the prior year's rent if the term of the Agreement as set forth in paragraph 1.2 above is a 20- year term. In the event the foregoing Consumer Price Index is discontinued or revised, another governmental index then in existence may be selected by the Park and used to obtain substantially the same result as if the foregoing index had not been discontinued or revised. 5.2. Notwithstanding anything contained herein to the contrary, the rent shall be increased effective upon the transfer of this Agreement and/or one month before the expiration of the Initial Term of this Agreement to an amount determined by Park to be the fair economic rental value ("Market Rental Value") for the Site. Park's determination of that amount shall be final and binding and conclusive for all purposes unless and until determined by a court or final binding arbitration award to have been determined to be both made in bad faith and objectively unreasonable. Park may utilize a land residential approach. highest and best use, existing use, or any other methods, factors, or combination thereof, to make that determination, including, but not limited to, multiple factors, so long as it is made in good faith or is objectively reasonable. 5.3. Homeowner agrees to review all rent adjustment notices and billing statements and to notify Owner in writing of purported errors or discrepancies within thirty (30) days of receipt thereof. 5.4. Homeowner agrees that no act (including, but not limited to, noticing and collecting of any subsequent rent adjustment), omission, or delay on the part Owner in noticing any Rent adjustment or portion thereof shall excuse, waive, or impair Owner's South Peak LONG-TERM RENTAL AGREEIIIEfll PM&.9 r right to notice and collect any such rent adjustment amount or portion thereof at a later date upon giving the required notice, if any, in this Agreement. 6. TAXES, GOVERNMENT INSURANCE. ASSESSMENTS, CAPITAL EXPENSES, 6.1. Homeowner shall pay directly to the assessing body or party all municipal, county, state and federal taxes, assessments, fees or other charges levied upon Homeowners mobilehome and other property on the Lot. 6.2. Any and all taxes and assessments and installment of taxes and assessments required to be paid by Homeowner under this Agreement shall be paid by Homeowner at least ten (10) days before each such tax, assessment, or installment of tax or assessment becomes delinquent. Upon three (3) days prior written notice from Owner, Homeowner shall deliver to Owner the official and original receipt evidencing the payment of any taxes, assessments, and other charges required under this paragraph "Taxes, Government Assessments, Capital Expenses, Insurance." 6.3. Homeowner shall indemnify and hold Owner free and harmless from any liability, loss or damage resulting from any taxes, assessments or other charges required by this paragraph to be paid by Homeowner and from all interest, penalties, and other sums imposed thereon and from any sales or other proceedings to enforce collection of any such taxes, assessments or other charges. 6.4. Homeowner shall indemnify and hold Owner, Owner's employees, agents and property, including the Park and any improvements now or subsequently located in or on the Park, free and harmless from any liens, liability, loss or damage resulting from any taxes, assessments or other charges required to be paid by Homeowner and from all interest penalties, and other sums imposed thereon and from any sales or other proceedings to enforce collection of any such taxes, assessments or other charges. 6.5. Should Homeowner fail to pay within the time specified in this paragraph, any taxes, assessments or other charges required to be paid by Homeowner, Owner may, without notice to or demand on Homeowner, pay, discharge, or adjust such tax, assessment or other charge for the benefit of Homeowner. In such event, Homeowner shall promptly, upon written demand of Owner, reimburse Owner for the full amount paid by Owner in paying, discharging, or adjusting that tax, assessment or other charge together with interest thereon at the then maximum legal rate from the date of payment by Owner until the date of repayment by Homeowner. This Agreement may create a possessory interest, which possessory interest vests in the Homeowner, and the Homeowner may be subject to payment of property taxes levied on the possessory Interest, If created. Homeowner will be responsible for all such taxes whether they are on the home or the Lot. 6.6. Homeowner shall pay Homeowner's pro rata share (on a per space basis) any increase in Owner's real property taxes or assessments from and after the commencement of this Agreement, which increase in real property taxes or assessments is in excess of two percent (2%) in any given year, not to exceed fifty dollars ($50.00) per month. South Peak LONG-TERM RENTAL AGREEMENT PAGE10 r 6.7. Unless otherwise prohibited by law, Owner may pass through to Homeowner any and all governmental assessments related to the operation of the Park. For governmental assessment increases of a continuing nature, Base Rent may be increased by such amount as is necessary to cover the increase in such assessment. The Base Rent shall be adjusted equally in an amount necessary for each lot in the Park to cover its pro-rata share of the increase in such cost. Government assessments shall not include federal, state or local income taxes. 6.8. Capital Improvement and Capital Replacement Pass Through. 6.8.1. The term "Capital Improvement" refers to anything or item which is new and not before existing in the Park with a useful life of one (1) year or more. Examples of Capital Improvement: Construction of a new swimming pool where none existed before, adding new extensive landscaping where none existed before. 6.8.2. The term "Capital Replacement" refers to replacement of any existing thing or item in the Park with a useful life of one (1) year or more. Examples of Capital Replacements: A roof to replace the old roof on the existing clubhouse; repaving of the streets (as compared with an asphalt patch to the street). 6.8.3. The amount of the increase to the Rent shall equal the total cost of Capital Improvements or Capital Replacements (as defined above) made by the Park during the twelve (12) month period preceding the month in which the current Rent increase notice is given, amortized over the useful life of the improvement, divided by twelve (12) and divided by the number of Homesites in the Park. Owner shall be entitled to receive interest on the cost of such Capital Improvement and/or Capital Replacement, calculated by utilizing a ten percent (10%) interest factor. 6.9. Insurance. If, after taking the costs for insurance (as defined below) during the comparison period and comparing these costs with the costs during that term, the costs for Insurance have increased, the Rent in effect shall be increased by the amount of that increase, divided by twelve (12) and divided by the number of lots in the Park. The term "Insurance" means and includes all amounts paid by the Park for insurance, including, but not limited to, insurance for any claim, loss, damage or injury to property or person, including fire, earthquake, flood, vandalism, burglary, or theft. The term "Insurance" shall also indude premiums paid by the Park for workers' compensation insurances. 6 .1 o. Uninsured Losses. If there have been costs associated with Uninsured Losses (as defined below) during the time this Agreement is in effect, the Rent then in effect shall be increased by the amount of Uninsured Losses divided by twelve (12) and divided by the number of lots in the Park, amortized over a five (5) year period. The term "Uninsured Losses" is defined as either: (1) any losses for which Owner is not fully compensated by insurance or (2) any losses for which the Owner is ordered by any court or arbitrator to pay as damages or to compensate any person or group of persons, because of any claim, lawsuit, arbitration or administrative action brought against the South Peak LONG-TERM RENTAL AGREEMENT PAGE11 r Owner and which is, for any reason, not paid by an insurance company (including, but not limited to, any good faith and reasonable settlement of any claim, with or without litigation or arbitration). Uninsured Losses shall be limited to losses related to, connected with, or concerning the operation, management, maintenance, leasing, or ownership of the Park or management of the Park for a violation of the Mobilehome Residency Law. 6.10. 1. Notwithstanding anything contained above, Owner shall bear the responsibility of two percent (2%) or $2,000.00, whichever is greater, for Uninsured Losses. 6.10.2. When Uninsured Losses necessitate Owner replacing or repairing Park property, the total amount of Uninsured Losses shall include the actual cost incurred by Owner to replace or reconstruct any property, including legal and engineering fees related to said replacement, plus all interest, points and other costs and charges relating to the borrowing of any sums during the period of construction or installation. Such interest, points, fees or other costs and charges shall not exceed an amount equal to that charged by an institutional lender of Owner's choice. 6.10.3. Any and all of the above-mentioned Rent adjustments shall comprise additional rent and be included in Homeowner's Rent. 7. HOLDOVER TENANCY. If Homeowner remains in possession of the Lot after the expiration of the term of this Agreement, defined in paragraph 1.2, and has not executed a new rental agreement with respect to the Lot, said possession by Homeowner shall be deemed a month-to-month tenancy. When Homeowner holds over possession of the Lot, Owner may, upon written 90-Day notice, increase the Rent and other charges of the Park unless otheiwise prohibited by law. 8. RESPONSIBILITY OF THE PARK. 8.1. It is the responsibility of the management to provide and maintain the physical improvements in the Common Facilities of the Park in good working order and condition. Owner shall provide improvements, including streets, and will also provide the following improvements if checked on the list below: Improvement Park Number Provides Provided Non-Restricted Parking Areas Clubhouse Tennis Court Basketball Court Laundry Facility X 1 Restroom Facility South Peak LONG-TERM RENTAL AGREEMENT PAGE 12 r Spa Lake Volleyball Court Beach Greenbelts Dock Picknick Areas BBQ Grills Gym 8.2. Owner may discontinue or modify any service or facility listed, but only upon the giving of lawful notice to Homeowner. The Park provides no services other than utilities. (Please note: Furniture, equipment and other items of personal property located in the Common Facilities which belong to Resident or Resident(s)' clubs, associations or other organizations or services provided by Resident or such organizations, are not the responsibility of the Park to provide or maintain). 8.3. With respect to any sudden or unforeseeable breakdown or deterioration of the physical improvements of the Park, management shall have a reasonable period of time to repair the sudden or unforeseeable breakdown or deterioration and bring the improvements into good working order and condition after management knows or should have known of the breakdown or deterioration. 8.4. Any available heating, cooling and lighting of pools, clubhouse, and other Common Areas will be turned on as required to maintain reasonable accessibility during normal hours of usage to the extent reasonable and permitted by law. 8.5. The Park may, upon the giving of lawful notice, amend, delete, add or modify any of the services or facilities provided. 9. AL TERA TION OF THIS AGREEMENT. This Agreement may be altered by Homeowner only by written agreement signed by both of the parties or by operation of law. This Agreement may be altered by Owner by written agreement signed by both of the parties, by operation of law or in any manner provided for by the Mobilehome Residency Law or other applicable law. Except for the amount of Rent and the duration of this Agreement, each provision of this Agreement shall be deemed to be a Rule and Regulation, as well, and may be amended, modified, or otherwise changed and enforced as a Rule and Regulation under the Mobilehome Residency Law. 10. MOBILEHOME OCCUPANCY AND ADDITIONAL OCCUPANT. South Peak I.OIIG-TERM RENTAL AGREEMENT PAGE13 r 10.1. If Homeowner is living alone and wishes to share occupancy of his or her mobilehome with one (1) other person, Homeowner may do so, and a fee shall not be imposed by Owner for that person as provided in the Mobilehome Residency Law. Such person shall comply with and be bound by the Rules and Regulations of the Park and shall register with the Owner. Homeowner may only designate one person at a time as a companion and shall not designate more than three companions in total during any calendar year, unless otherwise authorized by Owner. Owner may refuse to allow a Homeowner to share his or her mobilehome with a companion if Homeowner does not provide documentation showing the proposed companion meets the age restrictions of the Park, if any. 10.2. Any Additional Occupant. family member or other invitee of Homeowner shall at all times be bound by the Rules and Regulations and any other residency documents, and any conduct by them in violation of such Rules and Regulations or other residency documents shall be deemed a violation by the Homeowner. The Homeowner promises and warrants that each such Additional Occupant, family member or other invitee will at all times comply with all Rules and Regulations. 10.3. For any guest who stays more than a total of twenty (20) consecutive days or a total of thirty (30) days in a calendar year, such guest must register with the Owner. Homeowner will be charged an Additional Occupant fee as referenced in paragraph 1.3 of this Agreement. However, no such charge will be imposed if the occupant is a member of Homeowner's immediate family as defined in the Mobilehome Residency Law. 11 . INCORPORATED DOCUMENTS. The following documents, as they may be amended, modified, or otherwise changed from time to time, as permitted by the terms of this Agreement, are attached as exhibits to this Agreement and incorporated herein by this reference, and Homeowner acknowledges receipt of a copy of the same: 11.1. California Civil Code provisions known as the "Mobilehome Residency Law" attached hereto as Exhibit A; 11 .2 . The Park's Rules and Regulations attached hereto as Exhibit B; 11.3. Estoppel Certificate attached hereto as Exhibit C; 11.4. Pet Agreement attached hereto as Exhibit D; 11 .5. Waiver and Release of Liability attached hereto as Exhibit E; 11.6. "Protect Your Family from Lead in Your Home" attached hereto as Exhibit 11.7. Mold and Ventilation Requirements attached hereto as Exhibit G; 11 .8. Mobilehome Park Rental Agreement Disclosure Form Pursuant to Civil Code (Section 798.75.5) attached hereto as Exhibit H; South Peak LONG-T£RIII RENTAL AGRU:MENT PAGl!14 r r 11.9. Notice of Additional Disclosures attached hereto as Exhibit I; 11.10. Important Notice to All Manufactured Home/Mobilehome Owners attached hereto as Exhibit J: 11.11. Incoming Mobilehome Installation and Remodeling Standards attached hereto as Exhibit K; 11.12. City of San Luis Obispo Mobile Home Park Rent Stabilization, Title 5, Chapter 5.44 attached hereto as Exhibit L. 11.13. There is a separate Arbitration Agreement attached as Exhibit M which is not incorporated by reference but attached. 11.14. In the event of any inconsistency between the terms of this Agreement and the terms of any exhibits to this Agreement, the terms of the Agreement shall control to the fullest extent permitted by law, provided that Owner may correct any such inconsistency when identified through reasonable amendmentnnde)i_s,i:h terms cons,stent. ~ V 1v Homeowner's Initials 12. HOMEOWNER'$ WARRANTIES. 12.1. If, on the date of this Agreement, there is not presently a mobilehome located on the Lot, or if Homeowner is to remove the mobilehome presently located on said lot and replace it with another mobilehome, Homeowner acknowledges and agrees that certain representations have been made by Homeowner to Owner as to the make, model, type, size, age and condition of the mobilehome which will occupy the lot and the accessory equipment and structures which will be a part of or installed with the mobilehome. Homeowner warrants to Owner that all representations made regarding the mobilehome and all accessory equipment and structures are true and accurate. Owner may inspect the mobilehome and the accessory equipment, and Homeowner agrees not to substitute another mobilehome or other accessory equipment and structures for the ones approved by Owner unless they meet all of Owner's requirements and specifications and Homeowner has obtained prior written approval of Owner. If Owner determines that said representations are not true and accurate, then Owner may refuse to accept the mobilehome or the accessory equipment and structures for installation, or, if installed without Owner's approval, will be removed by Homeowner. 12.2. Within thirty (30) days of execution of this Agreement, Homeowner shall provide the decal number for the mobilehome located on the lot to the Park's management office. 12.3. [Alternative] Homeowner represents and warranties to Owner that at least one occupant who has signed this Agreement is at least fifty-five (55) years of age, all other Residents are a minimum of L------( )1 of age or older, and any occupant of the Lot will present proof of age within 1 O days of written request. South Peak LONCr TERM RENTAL AGREEMENT PAOE15 13. USE OF LOT AND PARK. 13.1. The Lot shall be used only as a site to locate, maintain and occupy a mobilehome for private residential purposes. Except as otherwise set forth in the Park's Rules and Regulations, no business or commercial activity of any nature shall be conducted on the Lot including, but not limited to: 13.1.1. Any activity requiring the issuance of a business license or permit by any governmental agency, except as otherwise allowed under the Park's Rules and Regulations or California law. 13.1.2. The leasing, subleasing, sale or exchange of mobilehomes. 13.2. At all times at least one of the persons listed on the last page of this Agreement as Homeowner must be a "registered" owner of the mobilehome who at all times occupies the Lot as his/her personal and actual residence. 13.3. Homeowner shall give Owner at least thirty (30) days advance written notice (and request Owner's approval) of the date a mobilehome or any accessory structure will be installed on the Lot, or any change to mobilehome, accessory structure, or Lot in which a permit is required. Homeowner shall obtain the required permit and shall otherwise cause the installation or change to comply with all applicable laws and regulations then in effect, including the Park's Rules and Regulations. Any inspection or approval by Owner, however, is made for the sole benefit of Owner, and Homeowner may not rely upon such inspection or approval to ensure that the item has been installed or constructed correctly or that the work has otherwise been done as required. 13.4. Homeowner shall not make any improvements, alterations, or additions to the Lot or remove or change any existing improvements or landscaping without the prior written consent of Owner. Should Homeowner not obtain Owner's prior written consent, such additions or alterations shall, upon demand of Owner, be promptly removed by Homeowner at Homeowners sole expense. 13.5. No use shall be made or permitted to be made on the Lot, nor acts done, which will increase the existing rate of insurance upon the Park, or cause the cancellation of any insurance policy covering the Park or any part thereof. 13.6. Homeowner shall not commit, or suffer to be committed, any waste upon the Lot, or any nuisance or any other act or thing, including offensive odors, which may disturb the quiet enjoyment of any other Homeowner. 13.7. Homeowner agrees to reasonably cooperate with Owner in all matters affecting the Park and its operation, including, but not limited to, any effort by the Park. to install solar energy and/or turn over any natural gas and electrical systems to the serving utility or its affiliates. 14. COMPLIANCE WITH LAW AND RULES AND REGULATIONS. South Peak LONG-TERM RENTAL AGREEMENT PAoe16 14.1. Homeowner agrees to abide and conform with all applicable laws and ordinances, all terms and conditions of this Agreement, the Rules and Regulations, all rules, regulations, terms and provisions contained in any document referred to in this Agreement. and said rules, regulations, terms and provisions as may, from time to time, be amended, modified or otherwise changed by Owner as permitted by the terms of this Agreement. Any substantial violation of the Rules and Regulations shall be deemed a public nuisance. Homeowner agrees that a breach of this Agreement or any violation of the Rules and Regulations cannot reasonably or adequately be compensated in damages and, therefore, Owner shall be entitled to injunctive relief including, but not limited to, restraining Homeowner from continuing to breach the Agreement or continuing to violate any rules or regulations, term, or condition, or to allow a condition violative of a rule or regulation, term or condition to exist or continue to exist. 14.2. Homeowner is responsible for the actions and conduct of all other occupants, Residents or Additional Occupants of Homeowner's mobilehome and for 1he actions and conduct of Homeowner's guests, licensees and invitees. Homeowner agrees and acknowledges that any violation of the Rules and Regulations by any person residing with Homeowner, or any guest of Homeowner, shall be deemed a failure by Homeowner to perform an express term of this Agreement, and Owner may terminate this Agreement pursuant to the Mobilehome Residency Law as a consequence of such default. 15. MAINTENANCE OF LOT. 15.1. Homeowner shall at all times maintain Homeowner's mobilehome and the Lot in a clean and sanitary condition, and shall cause all rubbish and other debris to be removed from Homeowner's mobilehome and lot on a regular basis. Landscaping on the Lot shall be watered and maintained by Homeowner, at Homeowner's expense. Homeowner agrees not to unreasonably use water to water the landscaping to be used on the Lot, and not to permit standing water, mud or other similar conditions to be created on the Lot, and not to permit excessive water runoff on the Lot or outside the Lot. In addition, Homeowner shall comply with all Park Rules and Regulations pertaining to the maintenance of the Lot by Homeowner. 15.2. In the event Homeowner fails to maintain Homeowner's Lot as provided in the Rules and Regulations, management may, upon giving prior written notice to Homeowner, perform the required maintenance and charge Homeowner a reasonable fee for said maintenance. The written notice shall state the specific condition to be corrected, that management will perform the maintenance if Homeowner does not perform such within fourteen (14) days of the written notice, and an estimate of the charges to be imposed by management if the services are performed by management or its agents . 16. ENTRY UPON HOMEOWNER'S LOT. Except as otherwise provided by law, Owner, management and their agents and employees shall have a right of entry upon the Lot for inspection for compliance with the Rules and Regulations, maintenance and reading of utilities, maintenance of trees and driveways and for maintenance of the Lot where Homeowner fails to maintain the Lot in South Peak LONG-lEW REHTAt.AG"£E'-'EH'J l'AGI! 17 accordance with the Rules and Regulations, and for the protection of the Park at any reasonable time and as allowed by law. The Management may enter a home without the prior written consent of the Homeowner in the case of an emergency or when Homeowner has abandoned the home. 17. WAIVER OF DEFAULT. No delay or omission in the exercise of any right or remedy of Owner on any default by Homeowner and/or any other person shall impair any such right or remedy or be construed as a waiver. No waiver by Owner of Owner's right to enforce any provision hereof after any default on the part of Homeowner shall be effective unless made in writing and signed by Owner, nor shall it be deemed a waiver of Owner's right to enforce each and all of the provisions hereof upon any further or other default on the part of Homeowner. The acceptance of Rent hereunder shall not be, or become construed to be, a waiver of any breach of any term or provision of this Agreement or any rule, regulation, term or provision contained in any document referred to in this Agreement, nor shall it reinstate, continue or extend the term of this Agreement or affect any notice, demand or suit hereunder. 18. TERMINATION OF TENANCY BY OWNER. 18.1. Homeowner's rights under this Agreement may be declared forfeited and/or the tenancy may be terminated and/or Homeowner's right to renew his or her tenancy may be denied in accordance with the provisions of the Mobilehome Residency Law and other applicable law, at Owner's election. The issuance of a termination of tenancy notice shall be considered an election to forfeit the tenancy within the meaning of this Agreement. 18.2. If Homeowner remains in possession after Homeowner's tenancy has been terminated, Homeowner shall pay to Owner an amount equal to the rental charges Homeowner was paying to Owner at the time Homeowner's tenancy was terminated or the maximum reasonable rental value, whichever is greater. 18.3. If all or a substantial part of the Park is damaged or destroyed due to earthquake, fire, flood or other natural disaster or catastrophe, and if the cost of repairs and rebuilding exceeds $250,000.00 or if, in Owner's sole opinion, the balance of the Park is not suitable for a mobilehome park, then Owner may terminate this Agreement upon sixty (60) days' written notice to Homeowner. Owner may exercise this option even if loss to the Park may be covered all or in part by insurance. 19. TRANSFER OF OWNER'S INTEREST. In the event Owner transfers Owner's interest in the Park, Owner shall be automatically relieved of any obligations hereunder from the date of such transfer. 20. TERMINATION BY HOMEOWNER. Homeowner may elect to terminate their tenancy upon no less than sixty (60) days written notice of termination to Owner, provided that (1) all persons occupying the Lot rented to Homeowner by this Agreement vacate the Lot and (2) Homeowner either South Peak LO"IG-TERM Rl!NTAL AGREEMENT PAGE18 (a) sells the mobilehome to a third party who has been approved by Owner for tenancy in the Park in accordance with the terms set forth in the paragraph entitled "APPROVAL OF PURCHASER AND SUBSEQUENT RESIDENTS", (b) removes the mobilehome from the Park, or (c) abandons or vacates the mobilehome. If the Lot is voluntarily vacated as a result of a transfer of legal ownership of the mobilehome, and it is not removed from the lot, the Rent may be increased by Owner as to the next Resident. If the Lot is voluntarily vacated as a result of the abandonment or removal of the mobilehome, then Homeowner shall not be liable for Rent or other charges from after the expiration of the 60 days (or more, if applicable), provided Homeowner gives written notice they are irrevocably abandoning all personal property on the Lot. 21. APPROVAL OF PURCHASER AND SUBSEQUENT RESIDENTS. 21.1. Upon no less than sixty (60) days' prior written notice to Owner, Homeowner may sell Homeowner's mobilehome at any time pursuant to the rights and obligations of Homeowner and Owner under the Mobilehome Residency law and other applicable law. Any rights granted to Homeowner or to Owner by the Mobilehome Residency Law (including amendments, deletions, or modifications thereto) and by other applicable law may be enforced by Owner or by Homeowner. Homeowner must, however, immediately notify Owner in writing of Homeowner's intent to sell Homeowners mobilehome. If the prospective purchaser of the mobilehome intends for the mobilehome to remain in the Park, said purchaser must do the following before occupying the mobilehome: (a) complete an application for tenancy (which may include, among other things, a balance sheet, income and expense statement. and supporting material, and a fee for obtaining a financial report or credit rating); (b) be accepted for tenancy by the Owner; and (c) execute and deliver to Owner a new lease agreement, a lease assignment agreement or other agreements as the case may be for the occupancy of the Lot. This Agreement is subject to a mandatory assignment unless the Park in its sole discretion requires a new lease agreement. 21.2. IF THE PURCHASER FAILS TO EXECUTE A LEASE AGREEMENT, A LEASE ASSIGNMENT AGREEMENT OR OTHER AGREEMENTS AS THE CASE MAY BE FOR THE OCCUPANCY OF THE LOT, SUCH PURCHASER SHALL HAVE NO RIGHTS OF TENANCY. The lease agreement, Rules and Regulations and other residency documents signed by the prospective purchaser may be different in their terms and provisions than this Agreement, the Rules and Regulations, and other residency documents now in effect. 21 .3. Notwithstanding anything contained herein to the contrary, Owner may, in order to upgrade the quality of the Park. require the removal of the mobilehome from the Lot upon its sale to a third party, in accordance with the provisions of the Mobilehome Residency Law and other applicable law. Any rights granted either party by the Mobilehome Residency Law (including amendments, deletions, or modifications thereto) and by other applicable law may be enforced by either party at that party's option . 21.4. Notwithstanding anything contained in this Agreement to the contrary, upon the sale or transfer of Homeowner's mobilehome, if the mobilehome is to remain in the Park, Homeowner shall make all repairs or improvements to Homeowner's South Peak LONG-TERM REHTAL AGREEMENT PAGE19 mobilehome, to its appurtenances, or to an accessory structure as required by Owner, pursuant to California Civil Code section 798.73.5. 22. RENT CONTROL AND ESTOPPEL CERTIFICATES. 22.1. Rent Control. HOMEOWNER EXPRESSLY ACKNOWLEDGES THAT THIS AGREEMENT is exempt from City of San Luis Obispo Mobile Home Park Rent Stabilization Ordinance Title 5, Chapter 5.44 because the tenancy is for more than a year. Homeowner also acknowledges that this Agreement may also be exempt from local rental control if the Lot is not the principal residence of the Homeowner either because Homeowner is receiving a homeowner's exemption for another property or mobile home in California, or Homeowner's principal residence is out of state. -v ~ti Homeowner's Initials 22.2. Estoppel Certificates. Homeowner agrees that upon Park's request, Homeowner must within ten (10) days execute, acknowledge and deliver to Owner, at the election of Owner, either (1) a statement in writing in the form requested by an institutional lender or a third party, or (2) a statement in writing in substantially the form attached hereto, certifying, among other things, that this Agreement is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating the modifications), and the dates to which the Rent and other charges have been paid and stating whether or not Park is in default of the performance of any covenant, agreement, term, provision, or condition contained in this Agreement, or is in violation of any law, ordinance, or administrative regulation and, if so, specifying each such default or violation, it being intended that any such statement delivered pursuant hereto may be relied upon by Park or any other party who may reasonably rely on such statement. Homeowner also agrees to execute and deliver from time to ti me such estoppal certificates as any institutional lender or a third party may require or request with respect to this Agreement. 22.3. Should any required estoppel certificate not be provided in a timely fashion, it shall be conclusively presumed, and shall constitute a representation and warranty by such party, that: (i) this Agreement is in full force and effect without modification, except as may be represented by the requesting party; and (ii) Park is not in breach, default, or violation in any of the respects referenced above. 22.4. The statement in writing in substantially the form attached hereto as Exhibit "C", as referenced in paragraph 22.2 above, may also contain the following : 22 .4.1. The names of all occupants of the Lot; 22.4.2. Nature of occupancy for each individual identified as an occupant (i.e., Additional Occupant, Resident, etc., shared tenancy under California Civil Code§ 798.34(b), family member, etc.); 22.4.3. The legal owner and registered owner of the mobilehome; SouthP-k LONG-Tl!RM REHTAL AGREEMENT PAGE20 r r 22.4.4. Names and addresses of all lien holders of the mobilehome; 22.4.5. A copy of the current title document for the mobilehome and a copy of the insurance policy or policies of Homeowner respecting fire, flood, and general liability. 23. LIENS AND CLAIMS. 23.1. Prohibition Against. Homeowner shall not suffer or permit to be enforced against Owner's title to the Park, or any part thereof, any lien, claim or demand arising from any work of construction, repair, restoration or maintenance of the Lot or mobilehome. 23.2. Removal of Liens by Homeowner. Should any lien, demand or claim be filed, Homeowner shall cause it to be immediately removed. In the event Homeowner, in good faith, desires to contest such liens, demand or claim, he/she may do so, but In such case Homeowner agrees to and shall indemnify and save Owner harmless from any and all liability for damages, including reasonable attorney's fees and costs, resulting therefrom and agrees to and shall, in the event of judgment of foreclosure on said lien, cause the same to be satisfied, discharged and removed prior to execution of the judgment. 23.3. Removal of Liens by Owner. Should Homeowner fail to discharge any such lien or furnish bond against the foreclosure thereof, Owner may, but shall not be obligated to, discharge the same or take such other action as It deems necessary to prevent a judgment of foreclosure on said lien from being executed against the property, and all costs and expenses, including, but not limited to, reasonable attorneys' fees and court costs incurred by Owner in connection therewith, shall be repaid by Homeowner to Owner on written demand. 23.4. No Recording. Homeowner agrees not to record this Agreement or a memorandum of this Agreement. 24. INDEMNIFICATION. 24.1. To the fullest extent allowable by law, and subject to any such legal limitations, Owner and Park shall not be liable for any loss, damage or injury of any kind whatsoever to the person or property of any Homeowner or Resident or to any of the employees, guests, invitees, permittees or licensees of any Homeowner or Resident, or to any other person whomsoever, caused by any use of the Park or Lot (including any defect in improvements erected thereon) or the failure of any service or amenity, or arising from any other cause whatsoever. As a material part of the consideration of this Agreement, Homeowner hereby waives all claims and demands against Owner and Park, and hereby agrees to indemnify and hold Owner and Park free and harmless from liability for all claims and demands for any such loss, damage or injury, including attorneys' fees, together with all costs and expenses arising therefrom or in connection therewith . Nothing in this Paragraph 24.1 shall have the effect of an agreement by Homeowner to indemnify and hold harmless the Owner or Park for the negligent or willful acts or omissions of the Owner or Park, a breach of this Agreement by the Owner or Park, or a breach of duty owed by the Owner or Park . South Peak LONG-TERM RENTAL AGREEMENT PAGE21 r r 24.2. Homeowner shall, at Homeowner's own expense, defend all actions brought against Owner or Park for which Homeowner is responsible for indemnification hereunder. If Homeowner fails to do so, Owner or Park (at Owner's option, but without being obligated to do so) may, at the expense of Homeowner, defend such actions, and Homeowner shall pay and discharge any and all amounts that arise therefrom. 25. INSURANCE. Owner does not necessarily carry public liability or property damage insurance, to compensate Homeowner, Homeowner's guests or any other person from any loss, damage or injury expect those resulting from prior actions where Owner would be legally liable for such loss, damages or injury. Homeowner agrees to maintain from an admitted insurer (having a rating of at least A-at all times) a homeowner's insurance policy for his/her mobilehome, with general liability coverage ("GLC") and hazard insurance coverage, with insured limits of at least $100,000, listing in the policy the name of the Owner and Owner's Park manager as an "additional interestn for notification purposes. Said policy shall include extended coverage for homeowners, fire and other casualty insurance on the mobilehome, other improvements and contents to the full insurable value and such other insurance as is necessary to protect Homeowner, Homeowner's invitees or others from loss or liability. Owner may during the term of this Agreement make changes in the required insurance coverage or limits as determined by Owner in its reasonable discretion. Homeowner agrees to provide a copy of all insurance policies affecting the Lot to Owner upon ten (10) days' request. Homeowner requests that in the event Homeowner does not provide said insurance, Owner may obtain said insurance meeting the above coverages and bill Homeowner for the insurance as additional rent. Owner shall have no obligation to obtain such insurance. Owner may obtain such policy that protects Owner, but not Homeowner, to satisfy Homeowner's obligation. 26. SUBORDINATION. This Agreement, and any leasehold interest which may be created by it, shall be subordinate to any encumbrance, restriction or declaration of record before or after the date of this Agreement affecting the Park, the Common Areas, recreational facilities or other facilities of the Park, or the Lot rented to Homeowner. Such subordination is effective without any further act of Homeowner; however, Homeowner agrees, upon request by Owner. to promptly execute and deliver any documents or instruments which may be required by any lender or purchaser to effectuate any subordination, including reasonable modifications to this Agreement, provided they do not increase the obligations of Homeowner or materially adversely affect the interests of Homeowner herein. If Homeowner fails to execute and deliver any such documents or instruments, Homeowner hereby irrevocably constitutes and appoints Owner as Homeowner's special attorney-in-fact to execute and deliver any such documents or instruments. 27. ABANDONMENT. During the term of this Agreement or any period of holding over, Homeowner shall not abandon the Lot or the mobilehome located thereon. In the event Homeowner does abandon either the Lot or Homeowner's mobilehome, such action may (at Owner's South Peak LON~ TERM REKTAL AGRIEEMENT PAGE22 (' r sole option) be deemed as Homeowner's election to terminate this Agreement and Owner shall have the rights afforded to Owner under California law to dispose of Homeowner's mobilehome and personal property located on the Lot and within the Park. 28. FIXTURES AND IMPROVEMENTS. All landscaping and structures or other improvements permanently attached to or embedded in the ground at the Lot {collectively, "Fixtures and Improvements"), shall become a part of the realty upon their installation and belong to Owner. Upon Homeowner vacating the Lot, such improvements shall remain upon and be surrendered with the Lot. During the lease term, and at Homeowner's sole cost and expense, Homeowner shall maintain all Fixtures and Improvements on the Lot in good repair and condition. Homeowner shall be solely responsible, at Homeowner's sole cost, for the maintenance, repair, replacement, paving and sealing of said Fixtures and Improvements. Owner shall be responsible, at Owner's sole cost, for the maintenance, repair, replacement, paving, sealing and other costs and expenses related to driveways installed by the Park. Owner may, however, at Owner's sole option, permit Homeowner to remove, at Homeowner's own expense, Owner installed Fixtures and Improvements, provided that such approval, if any, is obtained In advance and is in writing signed by Owner. Homeowner shall repair any damage to the Lot caused by the removal, including, but not limited to, the filling in and leveling of holes or depressions and shall leave the Lot in a neat and uncluttered condition with the Park's original engineered grade intact. 29. EMINENT DOMAIN. 29.1 If the entire Park, or a portion thereof so that, in Owner's sole opinion, the balance remaining is not suitable for a mobilehome park, is taken under the power of eminent domain, or is sold to any authority having the power of eminent domain, either under threat of condemnation or while condemnation proceedings are pending, then this Agreement shall automatically terminate as of the date the condemning authority takes possession. Any award for any taking of all, or any part, of the Park under the power of eminent domain shall be the property of Owner, whether such award shall be made as compensation for diminution in value of the leasehold or for taking of the fee or the taking of any interest Homeowner may have had due to this Agreement or Homeowner's tenancy in the Park. Nothing contained herein, however, shall be deemed to preclude Homeowner from obtaining any award for loss of or damage to Homeowner's removable personal property, or to give Owner any interest in such award. 29.2 In the event that the taking or condemnation of part of the Park does not result in the termination of this Agreement as provided above, then this Agreement shall terminate as to that portion of the Park so taken or condemned and the payments to be made under this Agreement as to that portion of the Park shall be abated and prorated as of the date of possession of the condemning entity. This Agreement shall continue in full force and effect as to that portion of the Park not so taken or condemned. 30. DELAY IN DELIVERY OF POSSESSION. South Peak LONG-TERM RENTAL AGREEMENT r r This Agreement shall not be rendered void or voidable by the inability of Owner to deliver possession of the Lot to Homeowner at the beginning of the lease term, nor shall any inability to deliver render Owner liable to Homeowner for loss or damage suffered thereby. If Owner cannot deliver possession of the Lot, the Rent for the period between the beginning of the term and the time when Owner can actually deliver possession will be abated. 31. JOINT AND SEVERAL LIABILITY. If Homeowner is more than one person, each person shall be jointly and severally liable for the performance of Homeowner's obligations under this Agreement. 32. ENTIRE AGREEMENT. This Agreement and the documents referred to herein constitute the entire Agreement between Homeowner and Owner pertaining to the subject matter contained herein and supersede all prior and contemporaneous agreements, representations and understandings of the parties, whether written or oral. 33. FORCE MAJEURE. If the performance by Owner of any of Owner's obligations or undertakings under this Agreement is interrupted or delayed by any occurrence not occasioned by the conduct of either party to this Agreement, whether that occurrence is an act of God or public enemy, or whether that occurrence is caused by war, terrorist acts, pandemic, riot, storm, earthquake, or other natural forces, or by the acts of anyone not party to this Agreement, then Owner shall be excused from any further performance for whatever period of time after the occurrence Is reasonably necessary to remedy the effects of that occurrence. 34. NOTICES. All notices required or permitted under this Agreement must be in writing and may be served upon Owner or Homeowner by any lawful means. Owner, when permitted by law, may serve Homeowner at his or her address in the Park by First Class United States mail, postage prepaid , addressed to the Homeowner at his or her Lot within the Park. Homeowner may serve Owner in the manner prescribed by Section 1162 of the Code of Civil Procedure. Service of legal notices on one Homeowner shall be deemed service on all Homeowners signing this Agreement. 35. TIME OF ESSENCE. Time is of the essence with respect to the performance of every provision of this Agreement. 36. INVALIDITY OF PROVISIONS. 36.1. Should any provision of this Agreement be declared or determined by any court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, South Peak LO-TERM RENTAL AOIU:1:MeNJ PAGE24 r r terms or provisions of this Agreement shall not be affected thereby, and any such illegal and invalid part, term or provision shall be deemed not to be a part of this Agreement. 36.2. If any of the provisions of this Agreement or the other documents used by the Park fail in any way to be legally enforceable as written, then It Is unintentional and all such provisions shall be deemed to be automatically revised to correctly reflect the Owner's and Homeowners respective rights, obligations, and prerogatives. Homeowner agrees to promptly notify Owner in writing of any such instance. 36.3. If any term or provision of this Agreement or other document used by the Park shall, on its face or as applied be illegal or unenforceable or claimed by Homeowner to be unenforceable, or illegal, Owner has the right, but not the obligation, to excise or modify any provision herein to the extent, and during the period which, such provision is deemed by any court of competent jurisdiction or claimed by Homeowner to be illegal or unenforceable to reasonably address such claimed or actual illegality or unenforceability. 37. CHOICE OF LAW. This Agreement and all documents referred to in this Agreement shall be construed and enforced in accordance with the laws of the State of California, except for the Arbitration Agreement, if any, signed by Owner and Homeowner, which shall be construed and enforced in accordance with the Federal Arbitration Act. 38. MEGAN,S LAW DISCLOSURE. NOTICE: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. 39. ALTERNATIVE DISPUTE RESOLUTION. 39.1. Mediation: Owner and Homeowner agree to mediate any and all disputes between them relating to, arising out of, concerning, or connected with, without limitation, this Agreement. the Park's residency documents, the interpretation and enforcement of the Park's residency documents, the Homeowner's leasehold interest or interests at the Park, the Homeowner's Lot or space or spaces at the Park, the Park's Common Areas, services and facilities or the Park's operation and maintenance pursuant to this Agreement. The following matters shall be exempt from mediation: (1) unlawful detainer actions, (2) forcible detainer actions, and (3) rule violation injunctions pursuant to Civil Code section 798.88. 39.1 .1. Mediation fees will be borne equally by the parties . If, for any dispute or claim to which this paragraph applies, any party commences an action (or files a complaint with any governmental entity, including the Department of Housing and Community Development) without first attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, South Peak LONG-TERM RENTAL AGllcUleNT PAGE25 r r then that party shall not be entitled to recover attorneys' fees, even if they would otherwise be available to that party under this Agreement, In any such event. 39.1.2. To initiate the mediation process, a party must serve a notice of demand for mediation which must provide: (i) a description of the dispute, (ii) facts from which the dispute arises, including witnesses, dates, times, and circumstances, and (iii) a description of the relief or action requested. 39.1.3. Within ten (10) days of serving the notice of demand, the party requesting mediation shall attempt to employ the services of a third person mutually acceptable to the parties to conduct and conclude such mediation within forty-five (45) days of his or her appointment. If the parties are unable to agree on such third person, they will apply to either Judicial Arbitration and Mediation Services ("JAMS") or Judicate West for a list of five mediators from which each side can eliminate two (2) names. If, on completion of the mediation, the parties are unable to agree and resolve the dispute, then the dispute shall be referred to arbitration or trial by reference as provided below. 39.1.4. Within fifteen (15) days of the selection of the mediator, each party will submit a brief setting forth the party's position on the issues that need to be resolved. The mediation will begin within five (5) days following submittal of the memorandums and will be concluded within forty-five (45) days from the beginning of the mediation unless the parties agree to extend the mediation period. The mediation will be held in the county in which the Park is located or another place acceptable to all parties. 39.1.5. Before the mediation proceedings begin, the mediator and all parties to the mediation will execute an agreement to maintain confidentiality of the proceedings, in order to exclude the use of any testimony or evidence produced at the mediation in any subsequent dispute resolution, including court proceedings, arbitration, or reference hearings. Further, the mediation agreement will provide that the expenses of witnesses and consultants for either side will be paid by the party producing the witnesses, and all other expenses of the mediation, including required travel and other expenses of the mediator and the cost of any witnesses or expert advice produced at the mediator's direct request, will be paid equally by the parties unless they agree otherwise. 39.1.6. Owner (through its authorized agent or agents) and Homeowner will attend the mediation sessions in person. Persons other than the parties or the parties' representatives and the mediator may attend the mediation sessions only with the permission of the parties. Confidential information disdosed to a mediator by the parties or by witnesses during the course of the mediation will not be divulged by the mediator. All records, reports, or other documents received by the mediator will be kept confidential. There will be no stenographic or tape recording of the mediation process. 39.2. Arbitration: IF, ON COMPLETION OF SUCH MEDIATION, THE PARTIES ARE UNABLE TO AGREE AND SETTLE THE DISPUTE, THEN HOMEOWNER REQUESTS THAT THE DISPUTE BE RESOLVED BY ARBITRATION AS South Peak LONG-'11:RM RENTAL AGREEMENT PAGE26 r r REFLECTED IN THE SEPARATE ARBITRATION AGREEMENT ATTACHED AS EXHIBIT K OR, IF NONE, BY TRIAL BY REFERENCE AS SET FORTH BELOW. v/4-~~-r Homeowners Initials 39.3. Trial by Reference: Any and all disputes between Owner and Homeowner relating to, arising out of, concerning, or connected with, without limitation, this Agreement, the Park's residency documents, the interpretation and enforcement of the Park's residency documents, the Homeowner's leasehold interest or interests at the Park, the Homeowner's Lot or space or spaces at the Park, the Park's Common Areas, services and facilities or the Park's operation and maintenance pursuant to this Agreement, except those subjected to arbitration pursuant to the signed Arbitration Agreement attached to this Agreement, which fail to be resolved in mediation as proscribed above, shall then be decided by trial by reference pursuant to California Code of Civil Procedure section 638, et seq. Both Owner and Homeowner agree that the court in which any action subject to this provision is filed shall immediately order a trial by reference pursuant to California Code of Civil Procedure section 638(1 ), and that either party may move the court to order the matter to reference pursuant to section 638 once the action is filed. 39.3.1. Owner and Homeowner agree that the referee for the trial by reference shall be a retired judge from Judicial Arbitration and Mediation Services ("JAMS") or Judicate West and that the parties shall select the referee in the manner set forth above regarding selection of a mediator, and further agree that the general reference shall be ordered to the selected referee pursuant to California Code of Civil Procedure section 640. 39.3.2. The plaintiff in any action which is heard by reference pursuant to this section shall pay all fees of the referee, if any, as fixed pursuant to Cal;fomia Code of Civil Procedure section 1023, as well as all related costs, which are necessary to try this matter by reference. Should the plaintiff fail to make any payments in a timely manner, the part ies agree that the entire action shall be dism issed with prejudice for failure to prosecute, either by the referee or upon ex parte application to the court in which the action is filed. Following the trial by reference, the referee shall award to the prevailing party the referee's fees and related costs paid by the prevailing party, if any, which award shall become the order of the court pursuant to California Code of Civil Procedure section 645.1. 39.3.3. Pursuant to California Code of Civil Procedure section 643, the referee must submit a written statement of decision to the court within twenty (20) days after the testimony is closed, after which the court may enter judgment pursuant to California Code of Civil Procedure section 644. 39 .3.4 . Notwithstand ing anything to the contrary contained herein, the parties agree that at any time prior to the last day for the referee to submit a written statement of decision, or fifteen (15) days after service of the written statement of decision on each party, whichever date is later, either party may comply with the statement of decision entirely or in part. In the event that a party South Peak LONG-TERM RENTAL AGREEMENT PAGE'l:7 r r timely complies with the statement of decision entirely or in part, judgment shall not be entered on the statement of decision, or, alternatively, that portion of the statement of decision with which the party complies. Upon compliance with the statement of decision, or any portions thereof, the parties shall request that the court not enter judgment thereon and, to the extent possible, to dismiss the action, or, if judgment has been entered, that the court vacate the judgment or the applicable portion of the judgment. In the event of a non-monetary claim, the party shall be deemed to have complied with the statement of decision, or any applicable portion, if that party timely stipulates to its intent to comply. In the event of a monetary claim, the party shall be deemed to have complied with the statement of decision, or any applicable portion, if the party timely tenders payment to the other party. 39.3.5. Each party specifically retains their right to appeal any decision of the referee, and subsequent judgment of the court, as permitted by law, including but not limited to California Code of Civil Procedure section 645. 39.3.6. In addition to the matters to be arbitrated pursuant to the attached Arbitration Agreement, the following matters shall be exempt from reference: (1) Unlawful Detainer actions; (2) Forcible Detainer actions; and (3) Rule Violation Injunctions per Civil Code section 798.88. 40. DUTY TO REPORT DEFECTS. 40.1. Homeowner shall report any observable defect in the Park's Common Facilities, Common Areas, utility services of the Park, landscaping, or other services and facilities which are to be maintained by Owner. Homeowner shall give such notice in writing to the Park's resident manager by registered U.S. Mail (return receipt requested) within sixty (60) days of Homeowner's discovery of any such defect, so that such conditions may be corrected within a reasonable period of time by the Park. 40.2. Homeowner further agrees that if Homeowner fails to report any such defects in writing by certified mail within sixty (60) days of its discovery, Homeowner is in substantial violation of this Agreement. Should Homeowner fail to report any such defect within six (6) months of its discovery, Homeowner does by signing this Agreement waive and shall be deemed to have waived any damages Homeowner had or has by reason of such unreported defect completely and w~qu~n. Homeowner's Initials 41. RELEASE OF CLAIMS. 41.1. As a material part of the consideration for this Agreement, Homeowner hereby waives, releases and discharges Owner and Park and each and all of Owner's and Park's present and former partners, officers, directors, agents, representatives, employees and attorneys and each and all of Park's and Owner's respective heirs, successors, executors, administrators and assignees of each from and against any and all claims, agreements, contracts, covenants, representations, obligations, losses, liabilities, demands and causes of action which Homeowner may now or hereafter have South Peak LONG-TE1!M REHTALAGREEMENT PAGE28 r or claim to have against Owner or Park, by reason of any matter or thing, whether of a personal or business nature, whatsoever, to and including the date hereof. Homeowner hereby waives any and all rights which Homeowner may have under the provisions of Section 1542 of the Civil Code of the State of California, which section reads as follows: "A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party." 41.2. It is understood by Homeowner that, if the facts or law with respect to which the foregoing release as given turn out hereafter to be other than or different from the facts or law in that connection now known to be or believed by Homeowner to be true, then Homeowner expressly assumes the risk of the facts or law turning out to be so different, and agrees that the foregoing release shall be in all respects effective and not subject to termination or rescission for any such difference in facts or law. This provision "RELEASE OF CLAIMS" shall not, and does not, apply to any finding by a court or arbitrator of Owner's or Park's willful violation of the California Mobilehome Residency Law. ~ ~( Homeowner's Initials 42. SUBLEASING AND ASSIGNMENT. Subleasing of the Lot is not permitted except as otherwise set forth in the Park's Rules and Regulations and for the reasons authorized by California ~i~i) ~ode section 798.23 and 298.23.5 unless otherwise prohibited by exlsllng ~ \JV Homeowners Initials 43. INSPECTION OF LOT AND PARK. 43.1. By signing this Agreement. Homeowner acknowledges that Homeowner has carefully inspected the Lot to be leased and all the Park's facilities, has found them to be In good and sanitary order, condition and repair as represented by Park to Homeowner, either orally or in writing, and to the extent that they are not exactly as represented, either orally or in writing, agrees to accept them as they are. 43.2. Homeowner further acknowledges that Park is not a "security" Park, and that Owner is not responsible for any damage or injury in, on or to Ho eowner's Lot, mobilehome, personal property or person. Homeowner understands at Homeowner should maintain Homeowner's own security precautions . Homeowner's Initials SoutllPNk LON(p R1W RENTAL AGREBlEHT PAGE 29 r 44. HOMEOWNER'S RESPONSIBILITY FOR WATER/EARTH MOVEMENT DAMAGE. 44.1. Except to the extent, if any, prohibited by law, Homeowner assumes any and all liability for any loss, injury, or damage to Homeowner, Resident, Homeowners guests, invitees, permittees, or licensees, to Homeowners Lot, to Homeowner's mobilehome, to improvements at or upon Homeowner's Lot (induding, but not limited to, any accessory equipment or storage building), or to Homeowner·s personal property from flow of ground water, surface water and/or flood water, from subsidence, from erosion, from earth movement, or from resultant mud and debris. 44.2. Homeowner hereby agrees to indemnify and hold Park and Owner harmless from any such loss, injury, damage or expense, including, without limitation, reasonable attorneys' fees and expenses of litigation which the Park or Owner may suffer. Homeowner is encouraged to obtain the necessary insurance and to undertake all precautions necessary to stabilize Homeowner's mobilehome and accessory equipment, including, but not limited to, the bracing of Homeowner's mobilehome and obtaining a civil engineer's report respecting Homeowner's use of the Lot. ciJ ✓v Homeowner's Initials 45. HOMEOWNER'$ RESPONSIBILITY FOR LOT GRADE. 45.1. The grade of space is calculated by dividing the distance from the highest elevation on space to the lowest elevation on space by the distance between those two points. A space grading that is perfectly level would have a grade of 0%. A space with an elevation change of 2 feet over a 100-foot distance would have a grade of 2%. 45.2. Homeowner acknowledges and agrees that the Lot's grade and earth adjacent to Lot can and may be greater than 2% and that the Lot and area adjacent to Lot could and may, over time, develop a greater grade than 2%. 45.3 . Homeowner acknowledges and agrees that while there might be a minimum grade required to maintain Lot drainage, there is no maximum grade that Park is required under applicable law to maintain on or adjacent to Lot. 45.4. Homeowner acknowledges and agrees that grade erosion due to, including, without limitation, rain, flooding, irrigation , pipe breaks, animals, wind, temperature change, earthquake, subsidence, earth movements, naturally occurring conditions or acts of God, or adjacent to Lot constitutes a "natural occurrence" over which the Park has not control and for which the Park Is not responsible to maintain, to the fullest extent allowed by law. 45.5. In the event that the grade of the Lot or grade of the area adjacent to Lot increases over time, and to the fullest extent allowed by law, the Homeowner agrees to timely remove any improvements adversely affected by such grade change or make any and all appropriate and required structural changes to such improvements, at Homeowner's sole expense, in order to allow such improvements to remain on the Lot, including, without limitation, re•grading, structural piers and retaining walls. South Peak LONG-TEiu. RENTAL AGREEMENT 45.6. In the event that the Homeowner or any governmental agency including, without limitation, the California Department of Housing and Community Development {"HCD"), or local county or city determines that grading or other work must be performed on Lot, then Homeowner, to the fullest extent allowed by law, agrees to timely remove all improvements from the Lot and the Park, at Homeowner's sole expense, for the Park to accomplish such required grading construction. Homeowner will not be required to pay Rent during such grading construction. After completion of such grading and other construction, should Homeowner determine to return the improvements, including the home, to the Lot, then may do so at Homeowner's sole expense, but only after complying with all then existing Park Rules and Regulations and architectural standards and governmental requirements, including California Title 25 and the Mobilehome Residency Law, as may be required by HCD, county and/or city . 45.7. To the fullest extent allowed by law, the Parties agree that Park is not and will not be responsible for damage to Homeowner's Home and property caused by grade changes on Lot or grade changes on the area adjacent to Lo~ ~ '( Homeowner's Initials 46. THIRD-PARTY RIGHTS. Nothing in this Agreement, express or implied, is intended to confer upon any person other than Homeowner and Owner, any rights or remedies under or by reason of this Agreement. Furthermore, Homeowner agrees that Homeowner is not a third-party beneficiary of any other agreement between Owner and any other Resident of the Park. 47. HEADINGS. The headings of the paragraphs contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of this Agreement. 48. EXECUTION IN COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, and a fully executed copy of this Agreement may be used with the same force and effect as an original. The parties agree that signatures may be transmitted or received via facsimile or e~mail. 49. ATTORNEY'S FEES. In any action or proceeding to enforce this Agreement or any provision of th is Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and all other costs incurred. 50. CONSTRUCTION. For purposes of construction, this Agreement shall be deemed to have been South Peak LOIG-TERM RENTAL AGREEMENT PAGE31 r jointly drafted by the respective parties and the rule of construction of contracts that ambiguities are construed against the drafting party shall not be applied against any party. The Parties hereby waive the provisions of California Civil Code Section 1654. 51. ACKNOWLEDGMENTS. 51.1. Homeowner represents and acknowledges that this Agreement is being entered into between Owner and Homeowner for the personal and actual residence of Homeowner. Homeowners Initials 51.2. Homeowner understands, agrees, and acknowledges that Homeowner is acquiring a leasehold for a limited period of time and is purchasing (or has purchased) only the mobilehome which occupies the Lot. Ownership of the mobilehome Lot remains with Owner. The price, appraisal, or stated value of the mobilehome, may reflect not only the mobilehome's value, but its ''site" value; that being the willingness of a lender to finance or a purchaser to pay a larger amount for the mobilehome by virtue of its location in this Park. In other words, the mobilehome may be worth substantially less off the Homeowners Lot than on the Homeowners Lot. Homeowner understands that Homeowner is not entitled to receive any value for Owner's property, or to receive any value by virtue of having a mobilehome located at the Park or on the Lot. -f.Jv}v~ Homeowner's Initials 51.3. Notwithstanding anything set forth herein to the contrary, in the event that Owner elects to subdivide the Park to provide for the conversion to a subdivision, cooperative or condominium, Homeowner agrees that Homeowner shall execute a petition indicating Homeowner's support for conversion of the Park to resident ownership in accordance with Government Code §§ 6641 0 and 66428 .1, et seq., as such statutes may be amended from time to time. Homeowner's Initials 51.4. If this Agreement is being provided pursuant to California Civil Code section 798 .75(a), then upon execution by parties to this Agreement, any tenancy created thereby, shall be null and void, and of no force and effect, unless and until: (1) seventy-two (72) hours have elapsed after Homeowner and Owner have executed this Agreement and no rescission right was exercised; (2) escrow is closed within fourteen (14) days of execution of this Agreement by both Parties; (3) at least one (1) person executing this Agreement as "Homeowner" is the registered owner of the mobilehome on the Lot; (4) Homeowner assumes physical occupancy of the mobilehome on the Lot within thirty (30) days of the execution of this Agreement; and (5) H_omrner provides Owner with proof of tifle transfer. ~ V Homeowners Initials South Peak LONG-TERM IU!NTAL AGREEMENT PAGE32 r r 51.5. If this Agreement is being offered to a prospective Homeowner, Homeowner acknowledges that Homeowner provided Owner an application for residency. Homeowner represents and understands that such application is true and correct and that any material misrepresentation or omission by Homeowner on the application may at the sole election of Owner, result in the termination of this Agreement and the tenancy created hereunder. jJI ✓v Homeowner's Initials 51.6. ACKNOWLEDGMENT OF HOMEOWNER'S INVESTIGATION. Homeowner warrants that he/she has read this Agreement and does not rely upon anything said or done by Owner or management in deciding to enter into and execute this Agreement beyond what is represented in this Agreement. Homeowner represents that he/she is a sophisticated renter with respect to this Agreement and possesses equal bargaining power with Owner. Homeowner represents that he/she has made all investigations necessary before executing this Agreement. This Agreement is the product of arm's length negotiations between sophisticated~ ( Homeowners Initials 51.7. If this Agreement is being offered to a prospective Homeowner, Homeowner acknowledges receipt from Park Management of a Mobilehome Park Rental Agreement Disclosure Form (pursuant to California Civil Code§ 798.75.5}, and Homeowner further acknowledges that Homeowner received the Mobilehome Park Rental Agreement Disclosure Form at least three (3) days prior to execution of this Agreement. Homeowner's Initials 51 .8. ACKNOWLEDGEMENT OF PARK'S RIGHT TO OFFER DIFFERENT LEASES TO DIFFERENT RESIDENTS. Homeowner acknowledges that the Park has and will continue to offer different leases on different terms with different starting rental rates. Homeowner acknowledges that such practice is lawful, fair and reasonable under the applicable statutory and case law, including the Mobilehome Residency Law. cjy ~v Homeowner's Initials 51.9. Homeowner acknowledges that Homeowner has had the o portunity to read this Agreement and consult independent counsel regar ·ng this Agre ment. Homeowner's Initials 51.10. Any claim , demand, right or defense of any kind by Homeowner which is South Peak LON~ TElll1 RENTAL AGREEMENT PAGE33 r r based upon or arises in connection with this Agreement or the negotiations prior to its execution, shall be barred unless Homeowner commences a lawsuit or other form of alternative dispute resolution thereon, or interposes in a legal proceeding a defense by reason thereof, within one (1) year as may be extended by Civil Code § 798.84, after the date of the inaction or omission or the date of the occurrence of the event or of the action to which the claim, demand, right or defense relates, whichever applies. k trcV' Homeowner's Initials 51.11. Homeowner agrees and acknowledges that Owner has the right to adjust the lot lines of Homeowner's Lot. Upon a request of Owner to adjust a lot line, Homeowner agrees and consents to such adjustment and agrees to execute any documents required by the California Department of Housing and Community Development or other governmental agency with jurisdiction to adjust such lot line. To the extent that such adjustment decreases the size of the Lot, Owner shall proportionately decrease Base Rent for the Lot. Should a lot line adjustment require that Homeowner relocate Homeowner's mobilehome and accessory equipment, Homeowner further agrees and acknowledges that Owner shall pay the expense to relocate Homeowner's mobilehome and accessory equipment to another suitable Lot in the Park to the extent necessary to bring the mobilehome and accessory equipment in the new Lot into compliance with applicable setback ru~ \j V Homeowner's Initials IN WITNESS WHEREOF, Owner and Homeowner have executed this Agreement as of the day and year written below, further acknowledging and agreeing that all blank spaces have been completely filled in prior to such execution. South Peak MHP Authorized Agent HOMEOWNER Dated: I· f O '"'2--_7 __ .;.__.;.__ _____ _ South Peak LONG-TERM lll!NTAL AGREl!MENT PAGE34 HOMEOWNER Dated: ~ • \ 3-Z :3 --------:¾.Q~-. Va.w~~ /r--- Clearly print name: VO..""-S~{:,, V~)._,,.. South Peale LONG-TERM Rl!NTAL AGKl:l!MENT PAGE35 r ACKNOWLEDGMENT AND Agreement BY RESIDENT AND/OR ADDITIONAL OCCUPANT: The persons signing below hereby acknowledge and agree to the following: 1. That they are not a "Homeowner" as defined by the Mobilehome Residency Law and this Agreement. 2. That they are bound by the Park's Rules and Regulations and all other obligations pursuant to this Agreement (except for the obligation for payment of rent). 3. That they have no rights of tenancy pursuant to the Mobilehome Residency Law. RESIDENT/ ADDITIONAL OCCUPANT Dated: ~ Clearly print name: {.;lJk \}~ RESIDENT/ ADDITIONAL OCCUPANT Dated: Clearlyprintname: V~~ V~-v--' South Peak LONG-TERM RENTAL AGREEMENT PAGE36 EXHIBIT B I I THIS VALIDATED REGISTRATION CARD OR A FACSIMILE COPY IS TO BE KEPT WITH THE VEHICLE FOR WHICH IT IS ISSUED. THIS REQUIREMENT DOES NOT APPLY WHEN THE VEHICLE IS LEFT UNATTENDED. I T NEED NOT BE DISPLAYED. PRESENT IT TO ANY PEAC OFFICER UPON DEMAND. IF YOU DO NOT RECEIVE A RENEWAL NOTICE, USE THIS FORM TO PAY YOUR RENEWAL FEES OR NOTIFY THE DEPARTMENT OF MOTOR VEHICLES OF THE PLANNED NON -OPERATIONAL STATUS (PNO) OF A STORED VEHICLE. RENEWAL FEES MUST BE PAID ON OR BEFORE THE REGISTRATION EXPIRATION DATE OR PENALTIES WILL BE DUE PURSUANT TO CALIFORNIA VEHICLE CODE SECTIONS 9552 -9554. NOTE: TRAILER COACHES MUST BE REGISTERED AND ARE NOT ELIGIBLE FOR FILING A STATUS OF PLANNED NO~NC0PERAT_f 0N~. ""'. /2 ;(,,/ \'.11Rex,. -~·· /h.V. \ • ,,s, EVIDENCE OF LIABILITY INSURAAJCE FROM XQ._UR tN~Ur:CE COMPANY MUST BE PROVIDED TO THE DEPARTMENT WITH THE fA~_J'<.,.{2f~REN~A.._!i,~ EES. EVIDENCE OF LIABILITY INSURANCE IS NOT REQUIRED W~T~~EGIS!R;ATipN M~ EWAL OF OFF-HIGHWAY VEHICLES, TRAILERS, VESSELS, OR IF YOU;FILE~As PNO 0~ ~JtvEHICLE. ' -~9 !,-,' WHEN WRITING TO DMV, ALWAYS ~\~E,Y9.PR ~q¼~ ~~E, PRESENT ADDRESS, AND THE VEHICLE MAKE, LICENSE, AND IDENTIF~CAT ION~BERS. ~ ************** DO NOT DETACH -REGISTERED OWNER INFORMATION ************** TA1l R I 'J ~ r fl'ARTl'(MMF AINOR VEl«'llS A Public $ervfr~P, f1n,:,n,..., REGISTRATION CARD VALID FROM: 04/14/2018 TO: 04/30/2019 MAKE YR MODE L YR 1 S T SOLO CHA 2018 2018 BODY T YPE MODEL MP MO CCH ZS 'l"YPE VE'.HICLE USE DATE ISSUED TRAILER 05/03/18 REGISTERED OWN ER 145 SOUTHSLO LLC 14 5 SOUTH ST ;ttAW SN LUIS OBISP CA 93401 U~OLDER VLF CLASS TYPE VEH NN 41T CC/A LCO D'l' FEE RECVD PIC 40 05 /03 /18 5 AMOUNT DUE: AMOUNT RECVD $ 564.00 CASH JJ .,-.. ·-., OHCK CRDT TY PE L I C LZC'£NSE NUMB E R 40 VEHICLE I D NUMBER STI CKER ISSUED K5446517 AMOUNT PA I D $ 564.00 AOl 691 C4 0056400 0042 CB A01 050318 40 1MP2076 28~ EXHIBIT C \ " Home Purchase Agreement I. PARTIES-[please print] California MHP Investors 3, LLC (Seller) agrees to sell and convey to ....:::L=i=n=d=a=V:::::::::a:::le=n=t=in=e================ (Purchaser). And Purchaser agrees To buy from Seller the Property described below. II. PROPERTY [insert description of the home and address where home is currently located]: Year: 20 18 Width: 11 '5" Length: 36'9" ------- Make: champion Model: ------- Serial Number: C t Add 145 South st #A28 San Luis Obispo CA 93401 urren ress: ____________ _ Legal Description of Land if being included in Loan: _N_A _________ _ Ill. PURCHASE PRICE The Parties agree that the total purchase price is$ 95000 (plus all applicable sales "f ) S I TB D O h Buyer to pay title/OMV fees Th I h . tax, 1 any . a es Tax_______ t er _______ . e tota pure ase price includes a deposit in the amount of$ 2000 [enter N/A if no deposit will be or has been paid by the Purchaser]. IV. MISCELLANEOUS Seller Seller (a) Financial Contingency-loan to be obtained. This agreement is conditional upon Ability to obtain a loan to purchase the Property. (b) Seller warrants that he/she/it is conveying title to the home and land, if applicable, Free and Clear of all liens and encumbrances. Date Buyer Date Date Buyer Date EXHIBIT D From:Evan Harris To:Melissa Lawley; Judy Tsai; Jessica Lu Subject:Re: [EXTERNAL] South Peak v. Valentine Date:Friday, June 6, 2025 11:31:47 AM Attachments:image011.png image012.png image013.png image014.png image015.png image016.png image017.png image018.png image019.png image020.png image021.png C2_signature_emailicon_cbc16b56-c262-4479-9590-e45ab4d75d7b.png C2_signature_phoneicon_3b12312a-dcc3-402a-a853-7995b39ad260.png Hello Melissa, Ms. Valentine has officially vacated the unit. The unit is now unoccupied, and all of her belongings have been removed. Please mail the check at your earliest convenience. Additionally, I want to inform you that Ms. Valentine plans to hire a contractor to repaint the interior. As she retains ownership and access to the property, this project should proceed smoothly. Best, Evan Harris (he/him) | Staff AttorneyCalifornia Rural Legal Assistance, Inc. eharris@crla.org (805) 544-7994NOTICE: If the reader of this message is not the intended recipient, you are hereby notified that anydissemination, distribution, or copying of this communication is strictly forbidden. If you have received thiscommunication in error, please notify us immediately. From: Melissa Lawley <melissa@harmonycom.com> Sent: Friday, June 6, 2025 8:47 AM To: Evan Harris <eharris@crla.org>; Judy Tsai <judy@judytsai.com>; Jessica Lu <jessica@judytsai.com> Subject: RE: [EXTERNAL] South Peak v. Valentine Thank you Thank you, Melissa Lawley Senior Regional Manager logo 6653 Embarcadero Drive, Ste. C Stockton, CA 95219 EXHIBIT E May 30, 2025 Harmony Communities c/o South Peak Mobile Home Park 145 South Street San Luis Obispo, ca 93401 Judy Tsai Law Office of Judy Tsai 710 Lakeway Drive, Ste. 180 Sunnyvale, CA 94085 Re: Proposed South Peak Mobile Home Park Rent Increase To Judy Tsai and Harmony Communities: The City is in receipt of information suggesting that the management of South Peak Mobile Home Park may be operating out of compliance with the San Luis Obispo Mobile Home Park Rent Stabilization Ordinance (the “Ordinance.”) Specifically, the City has received a report from Linda Valentine’s legal counsel that you have proposed a 108% increase in space rent for a mobile home upon sale in place, in violation of San Luis Obispo Municipal Code (“SLOMC”) § 5.44.060(C), as to Space A28. Ms. Valentine’s counsel reports that South Peak declines to recognize Ms. Valentine as a “tenant.” SLOMC § 5.44.020(D) defines “mobile home tenant” or “tenant” as “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.” It is the City’s position that, under the Ordinance, Ms. Valentine is a person “entitled” to occupy the mobile home pursuant to her ownership thereof. The report also indicates that South Peak management is improperly excluding certain types of homes from the Ordinance. The Ordinance does not define “mobile home,” either by inclusion or exclusion. However, the Purpose and Intent statements are guiding. The City’s legislative body identified certain characteristics of mobile homes that warrant protection against unreasonable rent increases: “high cost and impracticability of moving mobile homes, the potential for damage resulting therefrom, the requirements relating to the installation of mobile homes, including permits, landscaping and site preparation, the lack of alternative homesites for mobile home residents, and the substantial investment of mobile home owners in such homes[.]” (SLOMC 5.44.010). Homes typically considered “mobile homes” and any other structure described by the above are subject to the protections of the Ordinance. Additionally, Section 798.3 of the Mobilehome Residency Law includes in the definition of a mobile home within a mobile home park, trailers and other recreational vehicles of all types defined in Section 18010 of the Health and Safety Code, other than motor homes, truck campers, and camping trailers, which are used for human habitation if the occupancy criteria of either paragraph (1) or (2), as follows, are met: (1) The trailer or other recreational vehicle occupies a mobilehome site in the park, on November 15, 1992, under a rental agreement with a term of one month or longer, and the trailer or other recreational vehicle occupied a mobilehome site in the park prior to January 1, 1991. (2) The trailer or other recreational vehicle occupies a mobilehome site in the park for nine or more continuous months commencing on or after November 15, 1992. (Ca. Civ. Code § 798.3.) “Mobilehome” does not include a trailer or other recreational vehicle located in a recreational vehicle park subject to the Recreational Vehicle Park Occupancy Law. It is the City’s understanding that Ms. Valentine’s trailer is used for human habitation and has occupied a mobile home site in South Peak Mobile Home Park for nine or more continuous months and therefore meets the definition of a mobile home. Finally, SLOMC §5.44.060(C) states that monthly space rent may, upon change of ownership affecting a mobile home, be increased by no more than ten percent of the space rent existing at the time of such change when the change of ownership does not result in vacation of the space. This limitation is intended to be absolute; in adopting Section 5.44.060(C), the City Council recognized that, prior to the limitation, “Tenants in mobile home parks desiring to sell their mobile homes may have difficulty finding buyers because, upon a change of ownership, the park owner is able to raise the rent without regard to the city’s mobile home rent stabilization ordinance.” (see Ordinance No. 1226 (1992) Series) and SLOMC §5.44.010(E).) It is the City’s position that this section governs the permissible rent increases for spaces upon change in ownership in place, including Space A28, notwithstanding the unlawful detainer filed against Ms. Valentine and subsequent stipulated judgment executed by the parties. Please consider this letter the City’s notice that management’s proposed increase in the space rent for space A28 at South Peak Mobile Home Park by 108% upon change in ownership would constitute a violation of the San Luis Obispo Mobile Home Park Rent Stabilization Ordinance. Sincerely, Sadie Symens Deputy City Attorney EXHIBIT F From:Jason Dilday To:Sadie Symens Cc:Matt Davies Subject:RE: Notice of potential violation of San Luis Obispo Mobile Home Park Rent Stabilization Ordinance Date:Thursday, June 19, 2025 3:25:00 PM Attachments:Space A28.pdf Ms. Symens, As Matt mentioned and explained more fully below, we disagree that the San Luis Obispo Mobile Home Park Rent Stabilization Ordinance (the “Ordinance”) applies to Ms. Valentine’s RV at Space A28. The Ordinance’s protections apply to “mobile homes,” a term undefined in the text but clearly tied to structures with “high cost and impracticability of moving” and “requirements relating to installation” (SLOMC §5.44.010). Ms. Valentine’s RV, as a vehicle registered with the DMV and designed for mobility, does not meet these criteria. Unlike mobile homes, which are structures registered with HCD, RVs are built for easy relocation and lack the burdens of cost, damage, or site preparation that the Ordinance addresses. The Ordinance’s focus on these unique challenges does not extend to RVs. Even if the RV were considered a mobile home, Ms. Valentine does not qualify as a “tenant” under SLOMC §5.44.020(D), which defines a “tenant” as “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.” The RV is required to remain vacant until sold, meaning Ms. Valentine is not currently “entitled to occupy” it, as the Ordinance requires for tenant status. The Ordinance does not incorporate Cal. Civ. Code §798.3(b), which extends certain Mobilehome Residency Law (MRL) protections to RVs meeting specific occupancy criteria. Enacted after the Ordinance’s last amendment in 1988 (Ord. 1117), §798.3(b) is irrelevant unless explicitly adopted, which the Ordinance does not do. The City cannot retroactively apply a modern state law definition to a 1988 ordinance without legislative action. Using the MRL’s 1988 definition undermines the City’s position: Mobilehome is a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code. Mobilehome includes a manufactured home, as defined in Section 18007 of the Health and Safety Code, and a mobilehome, as defined in Section 18008 of the Health and Safety Code, but does not include a recreational vehicle, as defined in Section 799.24 of this code and Section 18010 of the Health and Safety Code or a commercial coach as defined in Section 18001.8 of the Health and Safety Code. Moreover, under the MRL, an RV is not a mobilehome. While §798.3(b) may grant RV tenants certain protections after nine months of occupancy, it does not classify RVs as mobilehomes. Unlike actual mobilehomes, section 798.73 explicitly permits parks to require RV removal upon sale. In summary, the Ordinance’s protections do not extend to Ms. Valentine’s RV, which is neither a mobile home nor occupied by a qualifying tenant. We remain committed to complying with all applicable laws and invite further discussion if the City believes additional facts warrant a different conclusion. Attached is the 2018-2019 DMV registration card for the RV that we had in the file as well as Ms. Valentine’s purchase agreement. Thank you. Jason Dilday 949-891-1627 From: Matt Davies <matt@harmonycom.com> Sent: Wednesday, June 18, 2025 6:25 PM To: Sadie Symens <ssymens@slocity.org> Cc: Jason Dilday <jason@harmonycom.com> Subject: Re: Notice of potential violation of San Luis Obispo Mobile Home Park Rent Stabilization Ordinance Hello Sadie Yes we received it. We disagree for numerous reasons. Jason will respond to you tomorrow. I’ll also reforward you my email to the other tenant you were on so you have it. In my opinion this is the same scenario, however Jason will provide a much more robust response. Regards, Matt Davies Harmony Communities 6653 Embarcadero Dr. Ste. C Stockton, CA 95219 Cell: (209) 601-4538 Main: (209) 932-8747 Matt@HarmonyCom.com On Jun 18, 2025, at 6:20 PM, Symens, Sadie <ssymens@slocity.org> wrote:  Hello Mr. Davies, The last I received from you was an email on June 10th saying you would get back to me, but I do not believe you have done so until today. I apologize if I missed an email. Does South Peak have a response to the arguments I set forth in the letter from May 30th? I have attached it again here. I will also note that South Peak has referred to the mobile home as such in at least two documents, including the lease agreement and the Information for Prospective Homeowners dated May 1, 2025. Absent information from South Peak that this structure is not subject to the Mobile Home Park Rent Stabilization Ordinance (beyond the stated assertion that the structure is a recreational vehicle, which, for the reasons set forth in my letter, is not determinative), the City intends to pursue enforcement as stated below. Thank you. Sadie Symens pronouns she/her/hers Deputy City Attorney <image001.png> City Attorney's Office E ssymens@slocity.org slocity.org <image002.png> 42 From:Symens, Sadie Sent:Monday, May 18, 2026 4:59 PM To:Kenneth Jorgensen Subject:RE: [EXT]RE: Mobile Home rent control, Harmony Attachments:Decision - Citation 00040264.pdf Hi Ken, The administrative hearing officer overturned the citation. That decision is attached. The City is not taking further action on this issue but did recently amend its Mobile Home Park Rent Stabilization Ordinance to remove the long- term lease exemption. That ordinance is on the agenda for second reading on June 2, 2026, and will go into effect 30 days thereafter. Thank you, Sadie Symens pronouns she/her/hers Deputy City Attorney City Attorney's Office E ssymens@slocity.org slocity.org Stay connected with the City by signing up for e-notifications The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney-client privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with publicly accessible records. If you are not the designated addressee named above or the authorized agent responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT (805) 781-7140. Thank you. From: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Sent: Monday, May 18, 2026 4:46 PM To: Symens, Sadie <ssymens@slocity.org> Subject: RE: [EXT]RE: Mobile Home rent control, Harmony Hi Sadie, Could you give me an update when convenient? Our o Ưice got another call from an owner trying to sell at Southpeak. My direct line is 781-4494. 43 Sincerely, Ken Jorgensen Deputy District Attorney San Luis Obispo County 1035 Palm Street │San Luis Obispo, CA 93408 (805) 781-5800 │kjorgensen@co.slo.ca.us From: Symens, Sadie <ssymens@slocity.org> Sent: Monday, September 15, 2025 8:06 AM To: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Subject: [EXT]RE: Mobile Home rent control, Harmony ATTENTION: This email DID NOT originate from County Staff. Please proceed with caution when interacting with any embedded links or attachments. Hello Kenneth, We have not received any other complaints from other residents. Our Community Development Department has issued an administrative citation to the owners of South Peak Mobile Home Park for raising the space rent upon sale in violation of SLOMC 5.44.060(C), as to one space within the park. That citation has been appealed, and the appeal is set to be heard on September 29th. Thank you, Sadie Symens pronouns she/her/hers Deputy City Attorney City Attorney's Office E ssymens@slocity.org slocity.org Stay connected with the City by signing up for e-notifications The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney-client privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with publicly accessible records. If you are not the designated addressee named above or the authorized agent responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT (805) 781-7140. Thank you. 44 From: Kenneth Jorgensen <kjorgensen@co.slo.ca.us> Sent: Wednesday, September 10, 2025 2:54 PM To: Symens, Sadie <ssymens@slocity.org> Subject: Mobile Home rent control, Harmony Hi Sadie, I have received a couple more complaints from residents contending that Harmony is raising base rents when owners are in escrow, trying to sell their units to a new prospective tenant in the park. Are there any updates you can share with me regarding complaints the City has received from other residents? My direct line is 781- 4494. I will be working from my desk for the remainder of the day if you are available for a call. Sincerely, Ken Jorgensen Deputy District Attorney San Luis Obispo County 1035 Palm Street │San Luis Obispo, CA 93408 (805) 781-5800 │kjorgensen@co.slo.ca.us 1 DECISION WITHOUT IN-PERSON HEARING ON ADMINISTRATIVE CITATION APPEAL City of San Luis Obispo, California In the Matter of Village Properties LLC a CA LLC/Harmony Community 1. Citation number: 00040264 2. Location of charged violation: 145 South Street, San Luis Obispo, CA 93401 3. APN: 004-802-020 4. Date of charged violation: June 20, 2025 5. Name of charged Violator/Appellant: Village Properties LLC a CA LLC/Harmony Community 6. Representative of Appellant: Jason Dilday, Attorney 7. Description of charged violation a. SLO City Municipal Code section: 5.44.060(C) b. Description of charged violation: Base Space Rent – Determination Allowable Increases Without Hearing c. Fine Assessed: $100 8. Date of Hearing: The Appellant waived its right to a hearing. Therefore, this decision has been made on the record. 9. Name of Hearing Officer: Alex S. Karlin 10. PROCEDURAL POSTURE AS REFLECTED IN THE RECORD On May 30, 2025, Sadie Symens, Deputy City Attorney for the City of San Luis Obispo, CA sent a letter to the Appellant and Judy Tsai, attorney, notifying them that the City considered the Appellant’s “proposed increase in the space rent for space 28 at South Peak Mobile Home Park by 108% would constitute a violation of the San Luis Obispo Mobile Home Park Rent Stabilization Ordinance.” (May 30 Letter). Ms. Symens said the Appellant was in violation of Section 5.44.060(C) of the San Luis Obispo Municipal Code (SLOMC 5.44.060(C)). On June 24, 2025, Rami Salem, Code Enforcement Officer & Safe Housing Coordinator for the City of San Luis Obispo, CA sent a Notice to Correct Code Violation(s)/Notice of Violation (June 24 NOV) to the Appellant stating that the Appellant was in violation of SLOMC 5.44.060(C) and asking the Appellant to correct the violation immediately. On June 26, 2025, the Appellant requested a Director’s review of the June 24 NOV. On July 10, 2025, John Mezzapesa, Interim Deputy Building Official for the City of San Luis Obispo, CA sent a Director’s Decision After Review of Notice to Correct/Notice of Violation to the Appellant’s representative, Matthew Davies. (July 10 Director’s Decision). The decision 2 analyzed and rejected the Appellant’s reasoning and arguments and instructed the Appellant to “take action to correct the code violation(s) immediately.” On July 23, 2025, the City of San Luis Obispo issued Citation 00040264 to the Appellant, citing it with violating SLOMC 5.44.060(C), ordering it to correct the violation immediately, and imposing a $100 fine. (Citation). The Citation alleged that the date of the violation was June 20, 2025. On July 29, 2025, the Appellant appealed the Citation (Appeal). The Appeal stated that there was no violation of SLOMC 5.44.060(C) and raised three primary arguments. First, that there had been a “change of ownership resulting from the vacation of the space” and therefore the rent increase was legal. Second, that the unit in space A28 “is an RV, not a mobile home” and therefore that the City’s Mobile Home Part Rent Stabilization Ordinance (specifically SLOMC 5.44.060(C)) is not applicable. Third, that “Ms. Valentines A28 tenancy was the product of a 20- year lease” and thus exempt from SLOMC 5.44.060(C) pursuant to SLOMC 5.44.030(E). On September 19, 2025, Mr. Jason Dilday, attorney, filed a brief herein on behalf of the Appellant. (Appellant’s Brief). The Appellant’s brief raised the same three arguments reflected in the Appeal and included six exhibits (A through F). On September 23, 2025, J. Christine Dietrick and Sadie Symens (City Attorney and Deputy City Attorney, respectively, for the City of San Luis Obispo, CA) filed a brief in support of the Citation (City’s Brief). The City’s Brief included two “Figures,” including a photo of Linda Valentines unit sitting in space A28, and one Attachment. [I note that, on September 28, 2025, Mr. Matt Davies sent an email to me on behalf of the Appellant and responding to the City’s Brief. (Davies Email). The Davies Email argued that the City’s Brief “it is full of falsehoods and half-truths,” raised entirely new arguments not previously reflected in the Appellant’s filings and not raised in the Appellant’s brief, and argued that “the city makes hearsay arguments that are not backed up by any documentation.” Inasmuch as the Davies Email was filed after the record in this proceeding was closed and shows no indication that it was ever cc’d or otherwise shared with the City Attorney’s Office (or indeed even shared with the Appellant’s own attorney), it is not part of the record in this case and will not be considered.] 11. FINDINGS OF FACT Based on the administrative record in this matter I find the relevant facts to be as follows: The Appellant owns and operates the South Peak Mobile Home Park (SPMHP), located at 145 South Street in San Luis Obispo. Appellant’s Brief P2. SPMHP is a mobile home park within the meaning of SLOMC 5.44.020(B). On July 13, 2023, the Appellant (or its predecessor) signed a “Long Term Rental Agreement” with Ms. Linda Valentine and Ms. Vanessa Valentine leasing Space A28 to them for 20 years. Appellant’s Exhibit A. (Hereinafter “20 Year Lease”). Both Valentines signed as “homeowner.” The 20 Year Lease sets Base Rent of $695 per month for the first year (section 1.3) and specifies that thereafter the rent will increase no less than 3.95%, nor more than 9% over prior year’s rent “if the term of the Agreement . . . is a 20 year term.” (section 5.1). The following statement is at the top of the first page of the 20 Year Lease “THIS LONG-TERM RENTAL 3 AGREEMENT WILL BE EXEMPT FROM CITY OF SAN LUIS OBISPO MOBILE HOME PARK RENT STABILIZATION ORDINANCE TITLE 5, CHAPTER 5.44, A COPY OF WHICH IS ATTACHED.” Meanwhile, on July 10, 2023, Appellant or its predecessor) executed a “Home Purchase Agreement” with Linda Valentine selling her a “home” described cryptically as a “2018 Champion” serial number Appellant’s Exhibit C. The record includes a copy of a California Department of Moter Vehicles Registration Card for the same 2018 Champion, characterizing it as a “vehicle,” specifically as a “TRAILER.” Appellant’s Exhibit B. The DMV registration is valid from 2018 to 2019. There is no evidence as to whether it is currently registered as a “vehicle” with DMV. According to the City, it did a recent (undated) search of the website of the California Department of Housing and Community Development (HCD) which research showed the SPMHP as having 75 spaces for mobile homes and zero spaces for recreational vehicles (RVs). City Brief, Figure 1. The evidence also includes an undated photograph of “Linda Valentine’s mobile home parked in Space 28.” City Brief, Figure 2. The record reflects, that sometime in 2024 or 2025, a dispute apparently arose between the Appellant and the Valentines. The City’s Brief contains a long passage referencing this dispute. City’s Brief P 4-5. There seems to have been an “unlawful detainer stipulation, an eviction attempt, an “eviction settlement agreement,” a “termination of tenancy” and maybe another “stipulation agreement.” I am not able to sort it out. The record herein also includes a strange document titled “Information for Prospective Homeowners” that says that “if you are approved for tenancy” the monthly rent will be $1595 for “space A28.” City’s Brief, Attachment A. The City uses this figure as the basis for asserting that the Appellant is proposing a 108% increase in rent ($1,595 being 108% of the then current rent of $767.91). City’s Brief P 6. Attachment A contains a signature space for the Park Manager of SPMHP, but it is not signed. It is dated May 1, 2025. Suffice it to say, this case does not involve resolving any of those issues. The City maintains that these wranglings and documents amount to the termination of the 20 Year Lease and the creation of a new short-term lease. More on that anon. The evidence also includes a copy of a June 6, 2025, email from Evan Harris, a Staff Attorney with California Rural Legal Assistance Inc, to Melissa Lawley, Judy Tsai, and Jessica Lu regarding “South Peak v. Valentine.” Appellant’s Brief, Exhibit D. In it, Mr. Harris states “Ms. Valentine has officially vacated the unit, the unit is now unoccupied, and all of her belongings have been removed.” He goes on to assert “she retains ownership and access to the property.” Mr. Harris appears to be representing Ms. Valentine in South Peak v. Valentine. I infer that he is representing LINDA Valentine. See Appellant’s Brief P2. Thus, while the evidence shows that at some point Ms. Linda Valentine vacated the “unit” i.e., the 2018 Champion, there is no indication in the record that the 2018 Champion itself has ever been removed from Space A28. Finally, the administrative record reflects that Ms. Valentine is attempting to sell the 2018 Champion but does not indicate whether she has succeeded or whether there has been a “change of ownership.” 4 12. KEY PROVISIONS OF LAW The San Luis Obispo Mobile Park Rent Stabilization Ordinance at SLOMC 5.44.060(C) states, in pertinent part: The maximum monthly space rent of a tenant may be increased by the owner when there is a change of ownership affecting the mobile home. However, such increase shall not exceed ten percent of the then existing space rent and may not be relied upon any more often than once in any thirty-six-month period as the basis to increase rent. ************ In the event of change of ownership resulting from vacation of the space, then the space rent may be adjusted to fair market rent in the community. Nothing in this paragraph shall preclude an adjustment as may otherwise be provided for in this chapter.” Emphasis added. SLOMC 5.44.030(E) states, in pertinent part: The provisions of this chapter shall not apply to the following tenancies in mobile home parks: (E) Tenancies covered by leases or contracts which provide for a tenancy of more than year, but only for the duration of such lease or contract.” 13. LEGAL ANALYSIS AND CONCLUSIONS The Appellant argues that SLOMC 5.44.060(C) does not apply to this case for three independent reasons. I will address each in turn. A. Whether the Unit on Space A28 is a “Mobile Home” The Appellant contends that the object sitting in space A28 (a “Champion 18”) is a recreational vehicle (RV) and not a “mobile home” and thus not subject to the rent control strictures of the San Luis Obispo Mobile Home Park Rent Stabilization Ordinance, SLOMC 5.44.060(C). Appellant correctly notes that the mobile home ordinance never defines the term “mobile home.” Further, the California DMV issued a vehicle registration for the Champion 18 in 2018-2019, describing it as a “vehicle – trailer.” The City argues that the Champion 18 is a mobile home, that the Appellant’s operation at 145 South Street is denominated and regulated as a mobile home park, that the Appellant has treated it as a mobile home, that it meets the purposes and intent of the City ordinance, and that the ordinance does not define or exclude RV’s from also being a mobile home. Further, the City argues that: “Mobilehome under the MRL is defined as “a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code” and also includes “trailers and recreational vehicles of all types . . 5 which are used for human habitation if . . . the trailer or other recreational vehicle occupies a mobile home site for nine or more continuous months. Although the unit does not appear to meet the definition of an RV under Health and Safety Code 18010, even if it did, it would still be considered a mobile home since it has continuously occupied Space A28 since at least July 2023 when Linda Valentine signed her lease.” City’s Brief P3. For reasons set forth by the City, I conclude that the unit that is sitting in Space A28 in the South Peak Mobile Home Park is a “mobile home” and is subject to the letter and spirit of SLOMC 5.44.060(C). The 20 Year Lease specifies that the Valentines are “Homeowners,” and uses the terminology of “home,” “homeowner,” “housing,” and “mobile home” throughout. The Valentines signed the lease as “homeowners.” Even the Home Purchase Agreement refers to the unit (Champion 2018) as a “home.” The name of the Appellant’s operation at 145 South Street is “South Peak Mobile Home Park” It is regulated by the City as a mobile home park. The photograph submitted by the City (City’s Brief, Figure 2), shows that the unit is firmly planted on space A28. And, even if the unit is in some sense movable (i.e., “mobile”) that does not mean that it cannot be both a mobile home and an RV. And even if it is an RV, given that the unit has occupied Space A28 for nine or more continuous months, it is a mobile home for purposes of State law and SLOMC 5.44.060(C). B. Whether there has been a “change of ownership resulting from vacation of the space” Appellant next argues that since Ms. Valentine no longer lives in the mobile home, space A28, there has been a “change of ownership resulting in a vacation of the space” pursuant to the fourth sentence of SLOMC 5.44.060(C), entitling the landlord to increase the rent to fair market value. For reasons set forth by the City, I reject the Appellant’s argument. The plain language of the ordinance refers to a “vacation of the space.” Here, the “space” is space A28, a piece of real estate. The 20 Year Lease speaks in terms of “space.” The entire scheme of SPMHP is that the Appellant owns the land and leases the land to the homeowner/tenant who places a mobile home on the space or RE lot designated by the Appellant. Vacating the mobile home does not constitute vacating the space. Appellant contends that the foregoing construction “would render the provision meaningless, as a ‘new unit . . . owned by a new owner’ means there would never be a ‘change of ownership resulting from a vacation.’” I disagree. The Appellant disregards the fact that this portion of SLOMC 5.44.060(C) could reasonably apply to the situation in which a mobile home is removed from a space, i.e., vacates the space, and a new mobile home with a new owner moves into the space. Meanwhile, the Appellant’s interpretation could lead to the absurd conclusion that whenever the homeowner walks out her front door, there has been a “vacation” that renders her subject to a FMV rent increase. C. Whether the Long-Term Lease Exemption applies The Appellant’s third primary argument is that SLOMC 5.44.030(E) expressly exempts “Tenancies covered by leases or contracts which provide for a tenancy of more than a year, but 6 only for the duration of such lease or contract.” Appellant says the 20 Year Lease “qualifies unequivocally” under this exemption. The lease term is for 20 years. The lease begins with a prominent, boldface, all capital letters assertion that “THIS LONG-TERM RENTAL AGREEMENT WILL BE EXEMPT FROM CITY OF SAN LUIS OBISPO MOBILE HOME PARK RENT STABILIZATION ORDINANCE TITLE 5, CHAPTER 5.44.” The City counters by arguing that the circumstances surrounding the apparent legal disputes between Ms. Valentine and the Appellant mean, that somewhere in the melee, the 20 Year Lease was terminated and that, because the Appellant had permitted Ms. Valentine to continue to occupy the mobile home for a temporary and short time before evacuating, her lease had been converted to a short term one to which SLOMC 5.44.030(E) is not applicable. Indeed, the City says that on August 20, 2025 (long after the legal disputation of the lease began and after June 20, 2025, the date of the alleged violation) the Appellant served a notice of “termination of tenancy” on Ms. Valentine. City’s Brief P5. This notice, the City contends, dissolved the long- term lease and started a new short-term lease. This document came among many others during the squabbles. On this basis, the City argues that SLOMC 5.44.030(E) is not applicable, that SLOMC 5.44.060(C) governs, and that the Appellant is prohibited from raising the rent to FMV.. The Appellant counters that its proposed rental increase upon change of ownership of the mobile home is authorized by the 20 Year Lease and falls within the scope of SLOMC 5.44.030(E). Appellant points out that section 5.2 of the lease provides “the rent shall be increased effective upon the transfer of this Agreement . . . to an amount determined by [Appellant} to be the fair market rental value.” Appellant adds that section 21.1. of the lease mandates assignment of the lease upon the sale of the mobile home. Thus, Appellant argues that the sale of the mobile home by Ms. Valentine did not create a new lease or tenancy, because the 20 Year Lease is mandatorily assigned to the new tenant. The City’s final argument is that the exemption for long term leases under SLOMC 544.030(E) “was a requirement under state law [cites omitted] and that as of January 1, 2025, state law no longer requires that cities with local mobile home stabilization ordinances exempt long-term leases from their ordinances.” City’s Brief P5. For reasons set forth by the Appellant, I conclude that the exemption set forth in SLOMC 5.44.030(E) applies here. Ms. Valentine signed a long term lease and long term leases are explicitly exempt from the rent control ordinance. I decline to conclude that some sort of de facto short-term lease, subject to the strictures of the City’s ordinance, arose out of the ashes of the Appellant-Valentine dispute and thus vitiated the terms of the 20 Year Lease. The fact that the City enacted the SLOMC 5.44.030(E) exemption because it was imposed by state law, and that the state law now no longer requires this exemption, does not change my analysis. (It would seem that, given the change in state law effective January 1, 2025, the City could now amend its ordinance and eliminate SLOMC 5.44.030(E)). 14. RULING Based on the evidence, statements, and briefs provided by all parties, the Administrative Citation is Revoked. No fine is due. Signed by: Hearing Officer Alex S. Karlin on October 6, 2025. 45 From:Nick Pardo < Sent:Tuesday, May 12, 2026 8:58 PM To:E-mail Council Website; City_Attorney; CityClerk Subject:URGENT CLARIFICATION: State Law AB 2782 and Municipal Code 5.44.030(E) Dear Mayor Stewart, City Council Members, and City Attorney Dietrick, I am writing to provide an urgent factual correction regarding the proposed amendment to Municipal Code Title 5, Chapter 5.44.030(E) regarding Mobilehome Rent Control which was discussed during Open Session on May 5th, 2026. During the meeting (around 1:38 in the recording), Councilwoman Marx raised a question regarding whether the proposed ordinance would apply retroactively to existing leases. Assistant City Attorney Kersten responded that as written, it would not, but minimized the impact, stating the state law only applies to leases signed after February 13, 2020, and not to older leases. Under current California state law, this is no longer accurate. While Assembly Bill 2782 did initially target leases signed on or after February 13, 2020, the legislation included a strict sunset provision for all older leases. As of January 1, 2025, California Civil Code § 798.17 was completely repealed. Consequently, state law no longer provides an exemption from local rent stabilization ordinances for any long-term leases, regardless of whether they were signed decades ago. While I understand the legal distinction that removing Section 5.44.030(E) from our municipal code is not "retroactive" in the sense of recovering past rent increases, the critical point is that removing this loophole will allow the city's rent stabilization protections to apply prospectively to all existing leases moving forward. I urge the city to clarify this, correct the record, and ensure that all existing leases are covered by this provision moving forward. I believe (City Attorney, please confirm) the simple removal of the exemption, coupled with state law already covers all leases moving forward, regardless of when they were signed. However, leaving any ambiguity on this issue leaves long-term mobilehome residents in San Luis Obispo vulnerable to unauthorized rent increases that contradict the current protections guaranteed by state law. To remove any ambiguity, I strongly urge the city council to amend the ordinance to include one of the following: 1. A statement to the effect of: "The provisions of this chapter shall apply to all existing and future tenancies, regardless of the date of lease execution." 2. A statement directly referencing/deferring to the state statutes regarding required rent control exemptions (preferred). This method will prevent the need to update the ordinance again the next time state law changes. The current state law went into effect in 2021 but there has been a 5 year lag time to update the local statue that has put residents at risk. Thank you for your ongoing work to align our city ordinance with state law and protect our community's residents. 46 Sincerely, Nick Pardo 47 From:Edwin Rambuski <edwin@rambuskilaw.com> Sent:Monday, May 11, 2026 8:02 PM To:Symens, Sadie Subject:Re: City of SLO MHPRSO amendment Thank you. On Mon, May 11, 2026 at 4:48 PM Symens, Sadie <ssymens@slocity.org> wrote: Hi Edwin – I received your email. The City Council voted to introduce the amendment to the Mobile Home Park Rent Stabilization Ordinance removing the exemption for long-term leases on May 5th. It will go for second reading on June 2nd and go into effect 30 days thereafter. Thanks, Sadie Symens pronouns she/her/hers Deputy City Attorney City Attorney's Office E ssymens@slocity.org slocity.org Stay connected with the City by signing up for e-notifications The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney-client privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with publicly accessible records. If you are not the designated addressee named above or the authorized agent responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT (805) 781-7140. Thank you. 48 -- Law Offices of Edwin J. Rambuski 1401 Higuera Street San Luis Obispo, CA 93401 Tel.: (805) 546-8284 Fax: (805) 546-8489 www.rambuskilaw.com Not intended as a substitute for a writing. Notwithstanding the Uniform Electronic Transactions Act or the applicability of any other law of similar substance or effect, absent an express statement to the contrary hereinabove, this email message, its contents, and any attachments hereto are not intended to represent an offer or acceptance to enter into a contract and are not otherwise intended to bind the sender, Law Offices of Edwin J. Rambuski, any of its clients, or any other person or entity. This email message and any attachments are confidential and may be attorney-client privileged. If you are not the intended recipient, please notify Law Offices of Edwin J. Rambuski immediately by telephone at (805) 546-8284 or by email to edwin@rambuskilaw.com and destroy all copies of this message and any attachments. 50 From:City of San Luis Obispo <communications@slocity.org> Sent:Thursday, May 7, 2026 4:43 PM To:Little, Joe Subject:May 5 Council Meeting Recap View this email in your browser To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet. May 5 Council Meeting Recap More housing, road repaving, and remote meetings coming soon! Post Date: 05/07/2026 2:28 PM The San Luis Obispo City Council held a public meeting on Tuesday, May 5, 2026. Below is a recap of the meeting. Review the full recorded video and agenda packet. Just prior to the meeting, the City Council recognized about 30 Laguna Middle School students for voluntarily completing 30 hours or more of community service. To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet. The full recording of the City Council meeting on May 5, 2026. Presentations and Consent Agenda The meeting began with several presentations, including proclamations declaring:  The month of May as National Foster Care Month to recognize the critical role resource families play in providing nurturing, stable homes for local children and to encourage all members of the community to join in raising awareness of and supporting resource families in the community;  May 15, 2026 as Peace Officers Memorial Day to honor fallen peace officers who have made the ultimate sacrifice by selflessly giving their lives in the line of duty in the protection and service of others; and 51  The month of May as California Tourism Month and the week of May 3-9, 2026 as National Travel and Tourism Week to recognize the critical role the travel and tourism industry has in our community and state. Then the City Manager gave a brief presentation with recent updates on City programs, services and events. There were also several routine matters on the Consent Agenda, which the City Council approved with one vote, including:  Granting $10,000 to the Center for Dispute Resolution to create a new community mediation program to help community members resolve conflicts.  Updating executive employment contracts, including pay and benefits, and approving an updated employee salary schedule.  Updating City rules for private sewer lines, including requiring repairs when problems are found and removing certain offset requirements. However, the City Council pulled item 7c (2026-27 Human Services Grant Funding Recommendations) from the Consent Agenda for further discussion. The City Council ultimately approved $150,000 in grants to local human services programs but adjusted one of the funding amounts. Because Family Care Network recently received a separate $150,000 state-funded grant through the County for homeless prevention services, the City Council shifted $10,000 recommended for Family Care Network to Community Action Partnership (CAPSLO), increasing the CAPSLO grant from the recommended $10,000 to a final $20,000. The change would help support homeless prevention services in the city. Public Hearings & Business Items Housing Rules Updated to Expand Options for All To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet. The City Council introduced and discussed proposed updates to local zoning, subdivision, and licensing and permitting rules in San Luis Obispo that will affect neighborhoods citywide. These changes will help ensure the City’s regulations are consistent with state law, create more opportunities for residential development, and clarify existing development standards. Some of these updates include clarifications to setback and height standards for accessory dwelling units, new driveway visibility standards, an increase in the number of residential lots that can be subdivided under state law, and changes to rules for building accessory buildings on residential properties. Additionally, this update further clarifies the rules for Homestay permits and extends the City’s Mobile Home Park Rent 52 Stabilization Ordinance to long-term space leases in mobile home parks, as required by state law. Overall, these updates aim to make the City’s housing and development rules easier for property owners, builders, and residents to understand, while reducing barriers to housing development and maintaining neighborhood character and safety standards. The updates will be brought back for a second reading and adoption at the next City Council meeting. 100+ Streets to be Repaired or Upgraded in 2026 To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet. Community members throughout San Luis Obispo will soon see smoother roads, clearer lane markings, and safer transportation conditions for all. The City Council approved the 2026 Roadway Sealing Project to repair and extend the life of streets in neighborhoods throughout San Luis Obispo and to add various upgrades to improve safety for all road users, including people walking and biking. More than 100 streets are on the list of repairs and upgrades this year, including key corridors around South Street, Broad Street (South of Tank Farm), Orcutt Road, Johnson Avenue, and San Luis Drive, as well as many nearby residential streets in the southern and eastern parts of the city. The project also includes new neighborhood greenway enhancements, new neighborhood traffic calming measures (speed cushions), new high-visibility crosswalks, and more. City staff will advertise the project to contractors soon with the goal of starting construction late this summer. The City’s Pavement Management Program delivers these types of projects every year to take care of existing infrastructure, save money over time, and improve everyday travel for the community. For project and construction updates, visit www.slocity.org/SLOinMotion or subscribe to SLO in Motion updates at www.slocity.org/subscribe. Remote Access Expands for City Council Meetings To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet. Starting this July, community members will be able to join City Council meetings remotely using Zoom and provide live public comment remotely. The City Council approved updates to its meeting rules to comply with new state law (SB 707). The changes also require most Council Members to attend meetings in person to maintain transparency and accountability, while allowing limited remote participation when needed. In addition, the City added clear steps for what happens if there are technical issues, so the public can still follow along. Overall, these updates will make it easier for people to access meetings, stay 53 informed, and participate in local decisions. Looking Ahead The next City Council meeting will take place on Tuesday, May 19, 2026 at 5:30 PM in the Council Chambers office at City Hall. Attendees of the City Council Advisory Body meetings are eligible for one hour of complimentary parking in designated City garages. Learn more at Parking for Public Meetings. To provide input or view upcoming agendas visit www.slocity.org/agendas. Media Contact: Whitney Szentesi, Public Communications Manager, 805-783-7716, wszentes@slocity.org To help protect y our privacy, Microsoft Office prevented automatic download of this picture from the Internet.Facebook To help protect y our privacy, Microsoft Office prevented automatic download of this picture from the Internet.Instagram To help protect y our privacy, Microsoft Office prevented automatic download of this picture from the Internet.Twitter To help protect y our privacy, Microsoft Office prevented automatic download of this picture from the Internet.YouTube To help protect y our privacy, Microsoft Office prevented automatic download of this picture from the Internet.LinkedIn To help protect y our privacy, Microsoft Office prevented automatic download of this picture from the Internet.Website Copyright © 2026 City of San Luis Obispo, All rights reserved. You are receiving this message because you provided your email address via a city service, event, or program. Our mailing address is: City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list. To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet. 54 From:Amini, David Sent:Monday, May 4, 2026 9:28 AM To:Iriarte, Juanita Subject:Re: Upcoming Council Meeting 5/5 Hi Juanita, I think we're good to go for this item, typically we don't do media releases for annual zoning code updates beyond the required noticing. Thank you, David Amini Housing Coordinator Community Development 919 Palm, San Luis Obispo, CA 93401-3218 E DAmini@slocity.org T 805.781.7524 slocity.org Stay connected with the City by signing up for e-notifications From: Iriarte, Juanita <jiriarte@slocity.org> Sent: Thursday, April 30, 2026 1:47 PM To: Amini, David <DAmini@slocity.org> Subject: Upcoming Council Meeting 5/5 Hi David, Do you need any help creating any talking points or news release about the upcoming ordinance to update the City's Zoning Code to accommodate changes to state housing law for 2026, along with an update to Municipal Code Ch. 5.44, Mobile Home Park Rent Stabilization? If so, could you please send me all of the pertinent documents? All the best, Juanita Iriarte pronouns she/her/hers Communications Coordinator City Administration 990 Palm Street, San Luis Obispo, CA 93401-3249 E jiriarte@slocity.org 55 T 805.781.7446 slocity.org Stay connected with the City by signing up for e-notifications 56 From:Daniel, Josh Sent:Thursday, April 30, 2026 5:15 PM To:McCaffrey, Seano; Hutchinson, Julianna Subject:O-1751 Attachments:Ordinance 1751.pdf Categories:Special Review Items Here you go. Sean read page one and two! Josh Daniel Fire Marshal Fire Department 2160 Santa Barbara, San Luis Obispo, CA 93401-3934 E JDaniel@slocity.org T 805.781.7386 C 805.431.4446 slocity.org Stay connected with the City by signing up for e-notifications Docusign Envelope lD: 7FC88616-4D28-4AF1 -9657-A965733465D8 oRDTNANCE NO. 1751 (2025 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 15 OF THE MUNICIPAL CODE TO ADOPT BY REFERENCE AND AMEND THE LATEST EDITION OF THE CALIFORNIA BUILDING STANDARDS CODE AND ADOPTING FINDINGS OF FACT TO SUPPORT THE AMENDMENTS WHEREAS, the State of California adopts and updates the California Building Standards Code on a triennial basis, which constitutes the building and fire code regulations applicable to all occupancies throughout the State; and WHEREAS, the State has published the 2025 Edition of the California Building Standards Code, comprised of various model codes and State amendments, which will become effective on January 1,2026; and WHEREAS, the 2025 Edition of the California Building Standards Code includes, for the first time, the California Wildland-Urban lnterface Code, which contains provisions addressing fire spread, accessibility, defensible space, water supply and more for buildings constructed near wildland areas; and CIWHEREAS, the City adopted updated fire hazard severity zone (FHSZ) maps on June 17, 2025, identifying areas within the City that have been designated as Moderate, High, and Very High FHSZsby the State Fire Marshal; and *-WffenEAS, the City'is listed as "Community at Risk from Wild Fires" by the California Department of Forestry and Fire Protection, Fire and Resource Assessment Program (Health & Safety Code 513108.5); and WHEREAS, pursuant to California Health and Safety Code Section 17958.5, local jurisdictions are permitted to amend the California Building Standards Code as reasonably necessary based on local climatic, geological or topographical conditions, provided such amendments are not less restrictive than the requirements found in the State codes; and WHEREAS, California Health and Safety Code Sections 17958.7 and 18941.5 require the City Council to make express findings that each such amendments are reasonably necessary; and WHEREAS, such findings must be made available as a public record and a copy thereof, with each such amendment, shall be filed with the California Building Standards Commission and/or the Department of Housing and Community Development; and o-1751 Docusign Envelope lD: 7FC8B616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 3 3. The City Council further finds that the changes or modifications that affect a residential unit are substantially equivalent to changes or modifications that were previously filed by the City and were in effect as of September 30,2025. This Ordinance carries forward local amendments from previously filed ordinances with no material change in the regulatory effect to the existing standards. SECTION 3. The provisions of the State Building Standards Code are hereby modified, changed, and amended as provided for in this ordinance based upon the foregoing findings and those set forth herein and said Council takes said action because of the public interest in protecting life and preserving public safety and property. SECTION 4. Special findings for Adoption of the California Wildland-Urban lnterface Code. 1. As a desig nated "Comm at Risk ," the entire City is considered an "urban wildland interface community,ng that the building standards adopted in c r 5 of the WUI Code and inco rporated herein by this Ordinance to all ment within the Ci for a c re ns so to Hea &e $13108.5(d) 2 standards adopted in ClleplclQ-of the WUI Code and incorporated herein by this Ordinance apply to non-exempt new and existing buildings, structures, and p remises located within a V ery High Fire Hazard Zone. 3. lna ition to any er avar A of the WUI as adopted herein by this Ordinance may, at the City's election, be enforced administratively by the City pursuant to the administrative enforcement procedures set forth in Chapter 1.24 of the municipal code. 4. "Code official," as used in the WUI Code and as defined therein as "the official designated by the jurisdiction to interpret and enforce this code, or the code's official authorized representative," shall mean, for the City of San Luis Obispo, the Fire Chief or their designee. SECTION 5. Chapter 15.02 of the San Luis Obispo Municipal Code is hereby amended in its entirety to read as follows: sEcTtoN 15.02.010 ADOPTION OF CODES The City of San Luis Obispo hereby adopts a Building Construction and Fire Prevention Code of the City of San Luis Obispo, 2026, hereinafter designated as the "San Luis Obispo Building Construction and Fire Prevention Code,2026." o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 5 SECTION 1 5.02.040. MECHANICAL STANDARDS The City of San Luis Obispo hereby adopts lhe 2025 California Mechanical Code as Part 4 of the San Luis Obispo Building Construction and Fire Prevention Code,2026. Except as otherwise provided herein, or as later amended in Section 15.04.040, Part 4 of the San Luis Obispo Building Construction and Fire Prevention Code,2026, shall be as published in the California Mechanical Code, 2025 edition, and as copyrighted in 2024 by the lnternationalAssociation of Plumbing and Mechanical Officials and the California Building Standards Commission, California Code of Regulations, fitle 24, Parl4, including all of its tables, indices, addenda, footnotes, and the following appendices:. Appendix A - Residential Plans Examiner Review Form for HVAC System Design. Appendix B - Procedures to be Followed to Place Gas Equipment in Operation. Appendix C * lnstallation and Testing of Oil (Liquid) Fuel-Fired Equipment. Appendix D - Fuel Supply: Manufactured/Mobile Home Parks and Recreational Vehicle Parkso Appendix F -Sizing of Venting Systems and Outdoor Combustion and Ventilation Opening Design. Appendix G - Example Calculation of Outdoor Air Rate o Said California Mechanical Code is hereby referred to and by such reference is incorporated herein as if fully set forth. SECTION 1 5.02.050. PLUMBING STANDARDS The City of San Luis Obispo hereby adopts the 2025 California Plumbing Code as Part 5 of the San Luis Obispo Building Construction and Fire Prevention Code,2026. Except as othenrvise provided herein, oras lateramended in Section 15.04.050, PartS of the San Luis Obispo Building Construction and Fire Prevention Code ,2026, shall be as published in the California Plumbing Code 2025 edition, and as copyrighted in 2024 by the lnternationalAssociation of Plumbing and Mechanical Officials and the California Building Standards Commission, California Code of Regulations, Title 24, Part 5, including all of its tables, indices, addenda, footnotes, and the following appendices:. Appendix A - Recommended Rules for Sizing the Water Supply System. Appendix B * Explanatory Notes on Combination Waste and Vent Systems. Appendix C - Alternate Plumbing Systems. Appendix D - Sizing Storm Water Drainage Systems. Appendix E - Manufactured/Mobile Home Parks and Recreational Vehicle Parks. Appendix G - Sizing of Venting Systems. Appendix H - Private Sewage Disposal Systems. Appendix l- lnstallation Standards. Appendix J - Combination of lndoor and Outdoor Combustion and Ventilation Opening Design. Appendix K - Potable Rainwater Catchment Systems. Appendix M - Peak Water Demand Calculator o-1751 Docusign Envelope lD: 7FC886 1 6-4D28-4AF1 -9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 7 SECTION 15.02.090. FIRE PREVENTION STANDARDS The City of San Luis Obispo hereby adopts the 2025 California Fire Code as Part 9 of the San Luis Obispo Building Construction and Fire Prevention Code, 2426. Except as othenruise provided herein, or as later amended in Section 15.04.090, Part 9 of the San Luis Obispo Building Construction and Fire Prevention Code ,2026, shall be as published in the California Fire Code,2025 edition, and as copyrighted in 2024 by the lnternational Code Council, lnc. and the California Building Standards Commission, California Code of Regulations, Title 24,Part 9, including all of its tables, indices, addenda, footnotes, and the following appendices:. Appendix Chapter 4 Special Detailed Requirements Based on Use and Occupancy Appendix B - Fire-flow Requirements for Buildings Appendix BB - Fire-flow Requirements for Buildings Appendix C - Fire Hydrant Locations and Distribution Appendix CC - Fire Hydrant Locations and Distribution Appendix D - Fire Apparatus Access Roads Appendix E * Hazard Categories Appendix F *Hazard Ranking Appendix G - Cryogenic Fluids-Weight and Volume Equivalents Appendix H - Hazardous Materials Management Plans and Hazardous Materials lnventory Statements Appendix I - Fire Protection Systems-Noncompliant Conditions Appendix J - Building lnformation Sign Appendix K - Construction Requirements for Existing Ambulatory Care Facilities Appendix M - High-Rise Buildings-Retroactive Automatic Sprinkler Requirement Appendix N - lndoor Trade Shows and Exhibitions Appendix P - Temporary Haunted Houses, Ghost Walks and Similar Amusement Uses. Appendix Q - Community Wildland-Urban lnterface (WUl) Fire Hazard Evaluation Framework Said California Fire Code is hereby referred to and by such reference is incorporated herein as if fully set forth. SECTION 15.02.100. EXISTING BUILDING STANDARDS The City of San Luis Obispo hereby adopts the 2025 California Existing Building Code as Part 10 of the San Luis Obispo Building Construction and Fire Prevention Code,2026. Except as othenruise provided herein, or as later amended in Section 15.04.100, Part 10 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Existing Building Code 2025 edition, and as copyrighted in 2024 by the lnternational Code Council, lnc. and the California Building Standards Commission, California Code of Regulations, Title 24, Part 10, including all of its tables, indices, appendices, addenda and footnotes. Said California Existing Building Code is hereby referred to and by such reference is incorporated herein as if fully set forth. o-1751 Docusign Envelope lD: 7FC886'16-4D28-4AF1-9657-4965733465D8 Ordinance No. 1751 (2025 Series)Page 9 SECTION 15.02.140. HEALTH AND SAFETY STANDARDS The City of San Luis Obispo hereby adopts the 1997 Editions of the Uniform Housing Code and the Uniform Code for the Abatement of Dangerous Buildings as Parl14 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.140, Part 14 of the San Luis Obispo Building Construction and Fire Prevention Code,2A26, shall be as published in the Uniform Housing Code and the Uniform Code for the Abatement of Dangerous Buildings, 1997 edition, and as published by the lnternational Conference of Building Officials including all of its tables, indices, appendices, addenda and footnotes. Said Uniform Housing Code and the Uniform Code forthe Abatement of Dangerous are hereby referred to and by such reference are incorporated herein as if fully set forth. SECTION'I 5.02.150 VIOLATION PENALTIES Persons who shall violate a provision of the California Fire Code or shall fail to comply with any of the requirements thereof or who shall erect, install, alter, repair or do work in violation of the approved construction documents or directive of the fire code official, or of a permit or certificate used under provisions of this code, shall be guilty of a misdemeanor, punishable by a fine of not more than one thousand dollars or by imprisonment not exceeding one year, or both such fine and imprisonment. Each day that a violation continues after due notice has been served shall be deemed a separate offense SECTION 6. Chapter 15.04 of the San Luis Obispo Municipal Code is hereby amended in its entirety to read as follows: GHAPTER 15.04 AMENDMENTS TO THE BUILDING CONSTRUCTION AND FIRE PREVENTION CODE SECTION 15.04.010 BUILDING OFFICIAL AND FIRE CODE OFFICIAL DESIGNATED The Chief Building Official is hereby designated as the building official and code official for the City of San Luis Obispo. The Fire Chief is hereby designated as the fire code official for the City of San Luis Obispo. Where the "authority having jurisdiction" is used in the adopted codes, it shall mean the building official or fire code official, as applicable. SECTION 15.04.020 AMENDMENTS; BUILDING STANDARDS A. Amend Chapter 1 , Division ll, Section 1 01 . 1 to read as follows: 101.1 Title. These regulations shall be known as the Building Code of The City of San Luis Obispo, hereinafter referred to as "this code." o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-4965733465D8 Ordinance No. 1751 (2025 Series)Page 11 2. Fences not over 6 feet high constructed of conventional lightweight materials including wood, vinyl, and wrought iron. 5. A water tank or a group of water tanks intended for storage of irrigation water only supported directly on grade if the capacity does not exceed 600 gallons in total on a parcel, the height does not exceed seven feet, and the ratio of height to width does not exceed 2:1 (provided that water tanks with minor ratio deviances may be allowed under this section in the discretion of the Chief Building Official, subject to review of the deviation by the Chief Building Official and verification that such minor deviations do not adversely impact structural stability), and it is not visible from the public right-of way that abuts the front yard. F. Amend Chapter 1, Division ll, Section 105.3.2 to read as follows: 105.3.2 Time limitation of application. An application for a permit for any proposed work shall be deemed to have been abandoned 180 days after the date of filing, unless such application has been pursued in good faith or a permit has been issued; except that the building official is authorized to grant one or more extensions of time for additional periods not exceeding 180 days. The extension shall be requested in writing and justifiable cause demonstrated. ln order to renew action on an application after expiration, the applicant shall resubmit plans and pay a new plan review fee if additional review by the City is necessary. An application for a permit that is abandoned after adoption of new mandatory building codes by the State may not be extended and must comply with the new regulations. G. Add Chapter 1, Division ll, Section 105.3.3 to read as follows: 105.3.3 Plan review fees. When submittal documents are required by Section 107.1, a plan review fee shall be paid at the time of submitting the submittal documents for plan review. Said plan review fee shall be in accordance with the schedule as established by the applicable governing authority. 105.3.3.1 Retaining Walls. Separate plan reviewfees shallapply to permits for retaining walls and major drainage structures in conjunction with grading. For excavation and fill on the same site, the plan review fee for grading shall be based on the volume of excavation or fill, whichever is greater. 105.3.3.2 Separate Fees. The plan review fees specified in this section are separate fees from the permit fees specified in Section 109.2 and are in addition to the permit fees. 105.3.3.3 lncomplete Submittals. Where submittal documents are incomplete or changed so as to require additional plan review, or where the project involves deferred submittal items as defined in Section 107.3.4.1, an additional plan review fee may be charged at a rate established by the applicable governing authority. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 13 3. ln other cases where the building official determines that unpermitted work did not result from an intent to avoid compliance with building codes or permit requirements. K. Add Chapter 1, Division Il, Sections 109.4.1 to read as follows: 109.4.1 Code Enforcement lnvestigation Fee. When work requiring a permit is discovered and through the investigation of the Code Enforcement Division a person obtains the necessary permits to correct the work performed, a Code Enforcement Fee will be required at a rate established by the applicable governing authority. This fee is in addition to the Special lnvestigation Fee. L. Add Chapter 1, Division ll, Sections 111.3.1 to read as follows: 111.3.1 Temporary Certificate of Occupancy Fee. When an applicant wishes to receive permission to occupy a structure and they have not completed the work required under their permit and they request a temporary certificate of occupancy for limited use of the building, a fee shall be required for preparation of the agreement and certificate for the limited use of the building. Such fee shall be set at a rate established by the applicable governing authority. Additional inspections required to verify compliance with the temporary occupancy shall be required to be paid in advance at the current hourly inspection rate. M. Add Chapter 1, Division ll, Sections 112.4 and 1 12.51o read as follows: 112.4 Underground utility services. All new electric, telephone, television, and other communication service connections, for all new, altered, or enlarged buildings shall be provided by underground wiring. Extension of electric or communication distribution Iines to serve such projects shall be by underground wiring. Exceptions: 1. A building located in residential or conservation/open space zone established by the jurisdiction's zoning regulations, provided that there are existing buildings on the property that are served by overhead connection lines. 2. Replacement or relocation of electric service equipment served by existing overhead wiring. 3. Where determined by the building official to be impractical or infeasible within the standards and practices of the utility or other companies providing such services. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 15 113.3 Qualifications. The board of appeals shall consist of seven members, five of which who are qualified by experience and training to pass on matters pertaining to building construction and building service equipment, hazards of fire, explosions, hazardous conditions or fire protection systems and are not employees of the jurisdiction. For matters subject to the appeal process referenced in H & S Code 19957.5 paragraph (b) regarding accommodations for persons with physical disabilities, the board of appeals shall include two additional members who shall be persons with disabilities as defined in the California Building Code. O. Add Chapter 1, Division ll, Section 113.5 of to read as follows: 1 13.5 Fees. A fee titled "Appeal of Building Official Decision", or "Access Board of Appeals" shall be collected for appeal of a decision of the building official, code official or fire code official to the appropriate board of appeals. P. Amend Chapter 1, Division ll, Section 116.1 of to read as follows: 116.1 Unsafe Conditions. Structures or existing equipment that are or hereafter become unsafe, unsanitary or deficient because of inadequate means of egress facilities, inadequate light and ventilation, or which constitute a fire hazard, or are othenruise dangerous to human life or public welfare, or that involve illegal or improper occupancy or inadequate maintenance, shall be deemed an unsafe condition. Unsafe structures shall be taken down and removed or made safe, as the building official deems necessary and as provided for in this section and the Uniform Housing Code, the Uniform Code for the Abatement of Dangerous Buildings, and the lnternational Property Maintenance Code, as adopted. A vacant structure that is not secured against entry shall be deemed unsafe. O. Add the following definitions to Section 202: Boarding House. A building arranged or used for lodging for compensation, with or without meals, and not occupied as a single-family unit. A boarding house may have only one kitchen or facility for eating and cooking and such facility must be accessible to all residents or guests. See also definition of Congregate Residence. Lot, Airspace. A division of the space above or below a lot with finite width, length and upper and lower elevation occupied or to be occupied by a use, building or portion thereof, group of buildings or portions thereof, and accessory buildings or portions thereof, or accessory uses. An Airspace lot shall be identified on a final map or a parcel map in the office of the County Recorder with a separate and distinct number or letter. An Airspace lot shall have access to appropriate public rights of way by means of one or more easements or other entitlements to use in a form satisfactory to the Chief Building Official and the City Engineer. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 17 S. Amend Section 705.12 by addition of item 7 to the Exceptions to read as follows: 7. The building is protected throughout by an approved automatic fire sprinkler system. T. Amend Section 903.1.1 to read as follows: 903.1.1 Minimum Sprinkler Coverage. Unless the fire official approves an alternative automatic fire-extinguishing system complying with section 904, an approved automatic fire sprinkler system shall be installed in accordance with sections 903.1.1.1 through 903.1.1.6: U. Add Sections 903.1.1.1 through 903.1.1.6 to read as follows 903.1.1.1 New Buildings. An approved automatic fire sprinkler system shall be installed throughout new buildings. Exceptions: 1. Buildings containing Groups A, B, E, F, H-4, M, S, and U occupancies where floor area is not more than 1000 square feet (92.9 m2), unless located in the commercial fire zone shown in Figure 6-A. 2. Buildings of non-combustible construction located in the commercial fire zone shown in Figure 6-A containing Groups A, B, E, F, H-4, M, S, and U occupancies where floor area is not more than 1000 square feet (92.9 m2). 3. Buildings located in the commercialfire zone shown in Figure 6-A containing Groups A, B, E, F, H-4, M, S, and U occupancies where floor area is not more than '1000 square feet (92.9 m2) and the building is entirely surrounded by yards or public ways not less than 20 feet (6096 mm) in width. 903.1.1.2 Existing Buildings. An approved automatic fire sprinkler system shall be installed throughout an existing building whenever alterations or additions result in an increase of more than 1000 square feet (92.9 m2) of floor area, including mezzanines or additional stories, or whenever the cost of alterations to an existing building having a floor area of more than 1000 square feet (92.9m2) exceeds 50 percent of the replacement cost of the building as determined by the building official. The cost of alteration and increase in floor area shall include all corresponding data from permits issued to the building for the previous five years. Exception: Group R, Division 3 and Group U occupancies. 903.1.1.3 Additions. An approved automatic fire sprinkler system shall be installed throughout additions to existing buildings equipped with an automatic fire sprinkler system. o-1751 Docusign Envelope lD: 7FC8B616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 19 W. Amend Section 903.3.9 and add Exception to read as follows: 903.3.9 lsolation control valves. Approved supervised indicating control valves shall be provided at the point of connection to the riser on each floor in all buildings two or more stories in height or in single-story buildings having a gross floor area of 10,000 square feet or more zoned into no more than 5,000 square- foot areas for the purpose of maintaining system integrity for life safety and evacuation. Exception: lsolation control valves may be omitted in buildings equipped with an automatic fire extinguishing system installed in accordance with Section 903.3.1.3. X. Amend Section 903.4 to read as follows, with Exceptions to remain: 903.4 Sprinkler system supervision and alarms. All valves controlling the water supply for automatic sprinkler systems, pumps, tanks, water levels and temperatures, critical air pressures, and water-flow switches on all sprinkler systems shall be electrically supervised by a central station service listed by Underwriters Laboratories for receiving fire alarms in accordance with NFPA 72. The central station shall contact and notify the police/fire dispatch center immediately on notification of an alarm and prior to making contact with the protected premises. Y. Amend Section 905.3.1 to read as follows, with Exceptions to remain: 905.3.1 Building Height. Class lll standpipe systems shall be installed throughout buildings where the floor level of the highest story is located more than 30 feet (9144 mm) above the lowest level of the fire department vehicle access, or where the floor level of the lowest story is located more than 30 feet (9144 mm) below the highest level of fire department vehicle access and in any parking structure exceeding one level above or one level below grade. Z. Amend Section 907.6.6 to read as follows: 907.6.6 Monitoring. Fire alarm systems required by this chapter or by the California Building Code or the California Fire Code shall be monitored by an approved central station service listed by Underwriters Laboratory for receiving fire alarms in accordance with NFPA 72. The central station shall contact and notify the police/fire dispatch center immediately on notification of an alarm and prior to making contact with the protected premises. Exception: Supervisory service is not required for: 1. Single and multiple station smoke alarms required by Section 907.2.11. 2. Group l-3 occupancies shall be monitored in accordance with Section 907.2.6.3. 3. Automatic sprinkler systems in one and two-family dwellings. o-1751 Docusign Envelope ID: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 21 FF. Modify Table 1809.7 to read as follows: TABLE 1809.7 FOOTINGS SUPPORTING WALLS OF LIGHT.FRAME CONSTRUCTION " b cdeh NUMBER OF FLOORS SUPPORTED BY THE FOOflNG f WIDTH OF FOOTING (inches) THICKNESS OF FOOTING (inches) DEPTH BELOW GRADE (inches) Perimeter lnterior 1 12 6 21 12 2 15 I 24 ,IB 3 18 8s 30 24 a Depth of footings shall be in accordance with Section 1809.4. b The ground under the floor shall be permitted to be excavated to the elevation of the top of the footing. c lnterior stud bearing walls shall be permitted to be supported by isolated footings. The footing width and length shall be twice the width shown in this table and the footings shall be spaced not more than 6 feet on center. d See section 1905 for additional requirements for concrete footings of structures assigned to Seismic Design Category C, D, E or F. e For thickness of foundation walls see section 1807.1 .6. r Footings shall be permitted to support a roof in addition to the stipulated number of floors. Footings supporting roofs only shall be as required for supporting one floor Slabs suooorted on qrade need not be considered a floor for ourposes of no deoths and widths s Plain concrete footings for Group R-3 occupancies shall be permitted to be 6 inches thick. h A qrade beam 12" in width shall be provided at qaraqe openinqs. Depth shall be as in this table o-1751 Docusign Envelope lD: 7FCBB616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 23 Exception: Plastic tub boxes may be used in lieu of concrete if properly sealed around all edges and pipe penetrations. HH. Add Sections 3109.3 through 3109.5 to read as follows: 3109.3 Access to pool. Pools shall be accessible by means of ladders or steps. There shall be not less than one such access for each 300 square feet (27.87 m2) of pool area equally distributed around the perimeter. 3109.4 Lighting. Pools shall be equipped with artificial lighting adequate to illuminate all underuuater areas. 3109.5 Abandoned pools. A pool that is not used, is neglected, and is a hazard to health and safety, shall be filled to the satisfaction of the building official. Before filling, holes shall be made in the bottom of the pool to insure proper drainage. Abandoned pools determined to be unsafe by the building official shall be abated in accordance with the lnternational Property Maintenance Code. ll. Amend Appendix Section G103.2 to read as follows: G103.2 Establishment of flood hazard areas. Flood hazard areas are established in the current edition of the City of San Luis Obispo's Flood lnsurance Rate Maps. All construction work within designated flood hazard areas shall comply with the Floodplain Management Regulations contained in San Luis Obispo Municipal Code Section 17.78. For the enforcement provisions of this appendix for flood resistant construction under the purview of the City Engineer, Building Official may mean City Engineer. JJ. Amend the title of Appendix Section G109 to read as: .BUILDINGS AND MANUFACTURED HOMES" KK. Amend Appendix Section G109.1 to read as follows G109.1 Elevation. All new and replacement buildings and/or manufactured homes to be built, placed or substantially improved within a flood hazard area shall comply with the Floodplain Management Regulations contained in San Luis Obispo Municipal Code Section 17.78. LL. Amend Appendix Section G114.3 to read as follows: G114.3 Elevation. Utility and miscellaneous Group U buildings and structures, including substantial improvement of such buildings or structures, shall comply with the Floodplain Management Regulations contained in San Luis Obispo Municipal Code Section 17.78. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 25 PP J101.6 Special grading standards. The topography of a site proposed for development shall remain substantially in its natural state. Mass recontouring shall not be allowed. ln all cases the average cross slope of a site shall be determined prior to any grading operations or approval of any grading plan. Where a site does not slope uniformly, the building official or city engineer shall determine average cross slope by proportional weighting of the cross slopes of uniformly sloping subareas. The percentage of the site, exclusive of building area, to remain in its natural state shall be in accordance with Table J101.6. All graded planes shall be rounded on all edges to blend with natural slopes. The rounded edges shall have a radius equal to one-half the height of the cut or fill slope. Exception: Grading specifically approved andior conditioned in conjunction with a tentative subdivision map, development proposal, or similar entitlement consistent with General Plan policies and other hillside standards is not subject to the specific grading limitations noted in this section. J101.7 Approval for building construction. Prior to commencement of any building construction, pursuant to a building permit for the graded site, a benchmark shall be provided to verify that the building site is graded in conformance with the approved grading plan. No building construction shall be started until the building official, or city engineer has verified that the rough grading conforms to the approved plan, including any interim or permanent erosion control measures deemed necessary. Amend Appendix Section J102 by addition of the following definitions: AVERAGE CROSS SLOPE shall mean the ratio, expressed as a percentage, of the vertical difference in elevation to the horizontal distance between two points on the perimeter of the area, with the line connecting the two points being essentially perpendicular to the contours between the two points. Different portions of any area may have different average cross slopes. WATERWAY shall mean a well-defined natural or manmade channel, creek, river, lake or swale that conveys surface water, storm runoff, or other natural drainage either year-round or intermittently. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 27 Exemption from the permit requirements of this appendix shall not be deemed to grant authorization for any work to be done in any manner in violation of the provisions of this code or any other laws or ordinances of this jurisdiction. J103.3 Early grading. A grading permit shall not be issued priorto issuance of a building permit for the project unless: 1. A tentative minor subdivision or tract map, use permit, architectural review commission project approval or similar authorization has been granted; and 2. Related street and utility grades have been established; and 3. A surety bond in accordance with Section J103.4 is deposited to guarantee restoration of the site to a natural or other condition acceptable to the building official should the project not proceed to completion. Jl03.4 Bonds. The building official may require bonds in such form and amounts as may be deemed necessary to ensure that the work, if not completed in accordance with the approved plans and specifications, will be corrected to eliminate hazardous conditions or restore a graded site to the original condition. ln lieu of a surety bond, the applicant may file a cash bond or instrument of credit with the building official in an amount equal to that which would be required in the surety bond. The city engineer may require that bonds be posted to recover the full costs of any damage to public right-of-way which may occur because of the peculiar nature or large scope of the project, such as transportation of fill or heavy equipment on local streets not designed to accommodate the traffic. RR. Amend Appendix Section J104.2 to read as follows: J104.2 Site plan requirements. ln addition to the provisions of Appendix Section 107, a grading plan shall show the existing grade and finished grade in contour intervals of sufficient clarity to indicate the nature and extent of the work and show in detailthat it complies with the requirements of this code. The plans shall show the existing grade on adjoining properties in sufficient detail to identify how grade changes will conform to the requirements of this code. The plans shall show existing drainage conditions and drainage devices and all proposed changes thereto. The plans shall include the location and dimension of all trees on the site which are 3 inches (76.2 mm) in diameter or larger at the trunk, measured at 4.5 feet (1 .37 m) above ground level, trees to be removed and trees to remain. A preservation plan shall be submitted for all trees to remain. The plans shall indicate where excess material, rocks, or rubble will be disposed of. SS. Amend Appendix Section J110.1 to read as follows: J110.1 General. All disturbed surfaces shall be prepared and maintained to control erosion. o-1751 Docusign Envelope lD: 7FC8B61 64D28-4AF1-9657-A965733465D8Ordinance No. 1751 (2025 Series)B. Amend Table R301.2(1) to read as follows:Page 29MEANANNUATTEMPIs9("F)MANUAL J DESIGN CRITERIAHeating temperaturedifference35Cooling temperaturedifference13AIRFREEZINGINDEXi0FLOODHAZARDSCRefer toChapter17.78 otthe SLOMunicipalCodeOutdoor winter designdry-bulb temperature35Outdoor summer designdry-bulb temperature88ICE BARRIERUNDERTAYMENTREQUIREDhNoSUBJECTTO DAMAGE FROMTermite'Veryhiehlndoor winter designdry-bulb temperature70lndoor summer designdry-bulb temperature75Frostlinedepthb0Weathering"NegligiblesErsMtcDESIGNCATEGORfDlndoorwinterdesign dry-bulbtemperature70lndoorsummerdesignrelativehumiditysa%WIND DESIGNWindbornedebriszonetNOCoincidentwet bulb63lndoorsummerdesignrelativehumidityso%SpecialwindregionlNOAltitudecorrectionfactor0.993DailyrangeMEDIUMTopographiceffectskYESElevation2s0Latitude35Speedd(mph)95GROUNDSNOWLOADO0o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 31 The plan review fees specific in this subsection are separate fees from the permit fees specified in the fee schedule adopted by this jurisdiction Where plans are incomplete or changed so as to require additional review, a fee shall be charged on an hourly basis at the rate established by this jurisdiction's fee schedule. B. Amend Section 104.4 to read as follows 104.4 Permit lssuance. The application, construction documents, and other data filed by an applicant for a permit shall be reviewed by the Authority Having Jurisdiction. Such plans shall be permitted to be reviewed by other departments of this jurisdiction to verify compliance with applicable laws under their jurisdiction. Where the Authority Having Jurisdiction finds that the work described in an application for permit and the plans, specifications, and other data filled therewith are in accordance with the requirements of the code and other pertinent laws and ordinances and that all required fees have been paid, the Authority Having Jurisdiction shall issue a permit therefore to the applicant. C. Delete Table 104.5 and amend section 104.5 to read as follows 104.5 Fees. Fees shall be assessed in accordance with the provisions of this section and as set for in the applicable fee schedule adopted by this jurisdiction D. Amend section 105.2.6 to read as follows 105.2.6 Reinspections. A reinspection fee shall be permitted to be assessed for each inspection or reinspection where such portion of work for which inspection is called is not complete or where required corrections have not been made. This provision shall not be interpreted as requiring reinspection fees the first time a job is rejected for failure to be in accordance with the requirements of this code, but as controlling the practice for calling for inspections before the job is ready for inspection or reinspection. Reinspection fees shall be permitted to be assessed where the approved plans are not readily available to the inspector, for failure to provide access on the date for which the inspection is requested, or for deviating from plans requiring the approval of the Authority Having Jurisdiction. ln instances where reinspection fees have been assessed, no additional inspection of the work will be performed until the required fees have been paid. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 33 D. Amend Section 105.2.6 to read as follows: 105.2.6 Reinspections. A reinspection fee shall be permitted to be assessed for each inspection or reinspection where such portion of work for which inspection is called is not complete or where required corrections have not been made. This provision shall not be interpreted as requiring reinspection fees the first time a job is rejected for failure to be in accordance with the requirements of this code, but as controlling the practice for calling for inspections before the job is ready for inspection or reinspection. Reinspection fees shall be permitted to be assessed where the approved plans are not readily available to the inspector, for failure to provide access on the date for which the inspection is requested, or for deviating from plans requiring the approval of the Authority Having Jurisdiction. ln instances where reinspection fees have been assessed, no additional inspection of the work will be performed until the required fees have been paid. E. Amend Section 314.4 to read as follows 314.4 Excavations. All excavations shall be completely backfilled as soon after inspection as practicable. A layer of sand or fine gravel shall be placed in all sewer trenches to provide a leveling and laying bed for pipe. Adequate precaution shall be taken to ensure proper compactness of backfill around piping without damage to such piping. Trenches shall be backfilled in thin layers to twelve (12) inches (.3 m) above the top of the piping with clean earth which shall not contain stones, boulders, cinder fill, frozen earth, construction debris or other materials which would damage or break the piping or cause corrosive action. Mechanical devices such as bulldozers, graders, etc., may then be used to complete backfill to grade. Fill shall be properly compacted. Suitable precautions shall be taken to ensure permanent stability for pipe laid in filled or made ground. F. Amend Section 715.2 to read as follows 715.2 Joining Methods and Materials. Joining methods and materials for building sewers shall be as prescribed in this code and shall only have joints that are glued, solvent cemented, heat fused or welded. Exception: "Strongback" type couplings may be used when connecting new or replaced pipe to existing materials. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D9 Ordinance No. 1751 (2025 Series)Page 35 B. Amend Chapter 1 , Division ll, Section 103.1 to read as follows 103.1 Greation of agency. The City of San Luis Obispo Fire Department is hereby created and the official in charge thereof shall be known as the fire code official. The function of the agency shall include the implementation, administration and enforcement of the provisions of this code. C. Amend Chapter 1, Division ll, Section 112to read as follows: 112 Board of appeals established. ln order to hear and decide appeals of orders, decisions or determinations made by the fire code official relative to the application and interpretation of this code, there shall be and is hereby created a board of appeals. The board of appeals shall be established as set forth in Chapter 1, Division ll Section 113 of Part2 of The City of San Luis Obispo Building Construction and Fire Prevention Code, as amended in Section 15.04.020 of the San Luis Obispo Municipal Code. The fire code official shall be an ex officio member of said board but shall have no vote on any matter before the board. The board shall adopt rules of procedure for conducting its business and shall render all decisions and findings in writing to the appellant with a duplicate copy to the fire code official. D. Amend Chapter 1 , Division ll, Section 113.4 to read as follows 113.4 Violation penalties. Persons who shall violate a provision of this code or shall fail to comply with any of the requirements thereof or who shall erect, install, alter, repair or do work in violation of the approved construction documents or directive of the fire code official, or of a permit or certificate used under provisions of this code, shall be guilty of a misdemeanor, punishable by a fine of not more than 1,000 dollars or by imprisonment not exceeding one year, or both such fine and imprisonment. Each day that a violation continues after due notice has been served shall be deemed a separate offense. E. Amend Chapter 1 , Division ll, Section 114.4 to read as follows: 114.4 Failure to comply. Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be liable to a fine of not less than that established by Municipal Code Section 1.12.040. F. Amend the definition of Sky Lantern in Section 202 to read as follows SKY LANTERN. An Airborne lantern typically made of paperwith a wood frame containing a candle, fuel cell composed of waxy flammable material or other open flame which serves as a heat source to heat the air inside the lantern to cause it to lift into the air. Sky candles, fire balloons and airborne paper lanterns mean the same as sky lanterns. o-1751 Docusign Envelope lD: 7FCBB6'16-4D28-44F1-9657-4965733465D8 Ordinance No. 1751 (2025 Series)Page 37 L Amend Section 307.1.1 and 307.2 to read as follows 307.1.1 Prohibited open burning. No waste matter, combustible material or refuse shall be burned in the open air within the city. Agricultural, ceremonial or similar types of fires may be approved when authorized by the fire code official. Open burning, cooking or warming fires are prohibited on brush-covered public lands within the city. 307,2 Permit required. A permit shall be obtained from the fire code official in accordance with Section 105.6 prior to kindling a fire for recognized silvicultural or range or wildlife management practices, prevention or control of disease or pests. Application for such approval shall only be presented by and permits issued to the owner of the land upon which the fire is to be kindled. J. Amend Sections 307.4.1and 307.4.2 to read as follows 307.4.1 Bonfires. Bonfires shall be prohibited. 307.4.2 Recreational fires. Recreational fires shall be prohibited Exception: Recreational fires may be permitted in approved, non- combustible commercially built containers, measuring no more than 3 feet in diameter and 2 feet tall, raised at least 6 inches off the ground with non- combustible legs and having a non-combustible spark arrester screen with holes no larger than% inch. The ground beneath this container shall be clear of combustible material for 10 feet in diameter, and 10 feet away from combustible construction. The material being burned shall be wood only and shall not include pressure treated lumber. A pre-connected garden hose shall be accessible. Amend Section 308.1.7 to read as follows: 308.1.7 Sky lanterns. The ignition and launching of sky lanterns are prohibited. Exception: Sky Lanterns may be used when all the following exist: 1) Approval is granted by the fire code official. 2) The sky lantern(s) is necessary for a religious or cultural ceremony 3) Adequate safeguards have been taken at the discretion of the fire code official. 4) The Sky lantern(s) is tethered in a safe manner to prevent them from leaving the area and must be constantly attended until extinguished. K o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 39 O. Amend Section 503.2.5 to read as follows: 503.2.5 Dead Ends. Dead-end fire apparatus access roads in excess of 150 feet (45 720 mm) in length shall be provided with an approved area for turning around fire apparatus. Exception: Where buildings along the dead-end road are protected by an approved fire sprinkler system throughout, the distance may be increased to 300 feet (91 440 mm). P. Amend Section 503.4.1 as follows: 503.4.1. Traffic calming devices. Traffic calming devices may be installed provided they obtain acceptance of the design and approval of the construction by the fire code official. O. Amend Section 505.1 to read as follows: 505.1 Address numbers. New and existing buildings shall have approved address numbers, building numbers or approved building identification placed in a position that is plainly legible and visible from the street or road fronting the property. These numbers shall contrast with their background. Address numbers shall be Arabic numerals or alphabetical letters. Numbers shall not be spelled out. Numbers shall be a minimum of 5 inches (102 mm) high with a minimum stroke width of 0.5 inch (12.7 mm) or as othenruise determined necessary by the fire code official. Where required by the fire code official, address identification shall be provided in additionalapproved locations to facilitate emergency response. Where access is by means of a private road and the building cannot be viewed from the public way, a monument, pole or other sign or means shall be used to identify the structure. Address identification shall be maintained. R. Amend Section 507.2 to read as follows: 507.2 Type of water supply. A water supply shall consist of reservoirs, pressure tanks, elevated tanks, water mains or other fixed systems connected to the municipal water system and capable of providing the required fire-flow. S. Amend Section 507.5.1 and delete Exceptions 1 to read as follows 507.5.1 Where required. Where a portion of the facility or building hereafter constructed or moved into or within the jurisdiction is more than 300 feet (91440 mm) from a hydrant on a fire apparatus access road, as measured by an approved route around the exterior of the facility or building, on-site fire hydrants and mains shall be provided where required by the fire code official. o-1751 Docusign Envelope lD: 7FC8B61 6-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2A25 Series)Page 41 X. Amend Section 901.6 to read as follows Section 901.6 lnspection, testing and maintenance. Fire protection and life safety systems shall be maintained in an operative condition at all times and shall be replaced or repaired where defective. Non-required fire protection systems and equipment shall be inspected, tested and maintained or removed in accordance with Section 901.8. No person shall cause a response of emergency personnel due to failure of notifying police/fire dispatch of any drill, testing, maintenance, installation of, repair or alteration to any fire protection system. Y. Amend Section 903.2 to read as follows Where Required. Approved automatic sprinkler systems in new buildings and structures shall be provided in locations as described in Section 903 of the San Luis Obispo Municipal Code Chapter 15.04.020. Z. Amend Section 9A3.2.10 to read as follows: Section 903.2.10.3 Sprinkler Protection Requirements for Parking Garages A,ssociated with Electric Vehicle Charging Stations. Specific San Luis Obispo Fire Department (SLOFD) requirements: 1. For New Buildinqs: Where a fire sprinkler system is required by code, the fire sprinkler system shall be designed per NFPA 13-2022 Extra Hazard Group ll (EH2) with 0.40 GPMISF over the parking space(s) associated with EV charging station(s). For area(s) less than 2,500 SF, the EH2 design area(s) are required to extend minimum 3-feet beyond the perimeter of the parking space(s). ln this case, the design area(s) are not required to extend 15-feet beyond the permitted of the parking space(s) as it is currently required by 2022 NFPA 13 Section 19.1 .2(1 ). 2. For Existinq Buildinqs with an existing sprinkler system which is required to protect NEW parking space(s) associated with EV charging station(s), the existing sprinkler system shall be required to be augmented to EH2 with 0.40 GPM/SF sprinkler design density over the parking space(s) associated with EV charging station(s) on a separate sprinkler permit. For area(s) less than 2,500 SF, the EH2 sprinkler design area(s) are required to extend minimum 3-feet beyond the perimeter of the parking space(s). ln this case, the design area(s) are not required to extend 1S-feet beyond the permitted of the parking space(s) as it is currently required by 2022 NFPA 13 Section 19.1.2{1). o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 43 7. Sprinklered buildings (fully or partially) with Level-3 charger(s) shall have a sprinkler waterflow switch connected to the building fire alarm system or to a sprinkler monitoring system. Upon the installation of new Level-3 charger(s) in existing sprinklered buildings without an existing sprinkler waterflow switch, and without a building fire alarm or a sprinkler monitoring system, shall be required to install a new sprinkler waterflow switch and a sprinkler monitoring system per the applicable codes. The sprinkler waterflow switch associated with the charger(s) area, upon activation, shall generate a signal to shut down the power for all charger(s) in the affected area. 8. lf the specific requirements above cannot be met, the SLOFD may allow for a performance-based design that meets or exceeds the intent outlined in this amendment, to be submitted for SLOFD review and approval on a case-by-case basis. The applicant may request a Pre-Application meeting to discuss specific projects on a case-by-case basis. AA. Add Sections 903.2.22 and 903.2 .231o read as follows: 903.2.22 Existing buildings in commercial fire zone. Existing buildings located in the commercial fire zone shown in Figure 9-A that are provided with an underground fire sprinkler lateral, shall have an automatic fire sprinkler system installed and operational within 24 months of the approval and acceptance of the lateral by the City. Exceptions: 1. The installation of an automatic fire sprinkler system required by Section 903.2.1 in a building of unreinforced masonry construction not strengthened by July 1,2007 shall coincide with the strengthening dates established by Resolution #9890 (2007). City Council established dates range from 2008 to 2010 based on the relative hazard of the building. 2. An automatic fire sprinkler system required by Section 903.2.1 in a building of unreinforced masonry construction strengthened as required by Appendix Chapter 1 of the 1997 Uniform Code for Building Conservation, as amended, prior to July 1,2007, shall be completed and operational by July 1 ,2012. 3. An automatic fire sprinkler system required by Section 903.2.1 in a building of unreinforced masonry construction strengthened as required by Appendix Chapter 1 of the 1997 Uniform Code for Building Conservation, as amended, prior to October 1, 2004, shall be completed and operational by January 1,2017. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 45 903.3.1.1.1 Exempt locations. ln other than Group l-2, l'2.1 and l-3 occupancies, automatic sprinklers shall not be required in the following rooms or areas where such rooms or areas are protected with an approved alternative automatic fire extinguishing system in accordance with Section 904. Sprinklers shall not be omitted from any room merely because it is damp, of fire-resistance- rated construction or contains electrical equipment. CC. Amend Section 903.4 to read as follows, with Exceptions to remain 903.4 Sprinkler system supervision and alarms. All valves controlling the water supply for automatic sprinkler systems, pumps, tanks, water levels and temperatures, critical air pressures, and water-flow switches on all sprinkler systems shall be electrically supervised by a central station service listed by Underwriters Laboratories for receiving fire alarms in accordance with NFPA 72. The central station shall contact and notify the policelfire dispatch center immediately on notification of an alarm and prior to making contact with the protected premises. DD. Amend Section 903.4.3 and add Exception to read as follows: 903.4.3 lsolation Control Valves. Approved supervised indication control valves shall be provided at the point of connection to the riser on each floor in all buildings two or more stories in height or in single-story buildings having a gross floor area of 10,000 square feet or more zoned into no more than 5,000 square foot areas for the purpose of maintaining system integrity for life safety and evacuation. Exception: lsolation control valves may be omitted in building equipped with an automatic fire extinguishing system installed in accordance with Section 903.3.1.3. EE. Amend Section 905.3.1 to read as follows, with Exceptions to remain: 905.3.1 Height. ln other than Group R-3 and R-3.1 occupancies, Class lll standpipe systems shall be installed throughout at each floor where any of the following occur. 1. Buildings where the floor level of the highest story is located more than 30 feet (9144 mm) above the lowest level of fire department vehicle access. 2. Buildings that are four or more stories in height. 3. Buildings where the floor level of the lowest story is located more than 30 feet (9144 mm) below the highest level of fire department vehicle access. 4. Buildings that are two or more stories below the highest level of fire department vehicle access. 5. ln any parking structure exceeding one level above or one level below grade. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 47 KK. Amend Sections 2306.2.4 and 2306.2.4.1 to read as follows and delete Section 2306.2.4.2: 2306.2.4 Above-ground tanks located in above-grade vaults or below-grade vaults. Above-ground tanks used for storage of Class l, ll, or lll liquid motor fuels are allowed to be installed in vaults located above grade or below grade in accordance with Section 5704.2.8 and shall comply with Sections 2306.2.4.1 and 2306.2.4.2. Tanks in above-grade vaults shall also comply with Table 2306.2.3 and the fuel shall not be offered for resale. 23A6.2.4,1Tank capacity limits. Tanks storing Class l, ll or lll liquids at an individual site shall be limited to a maximum individual capacity of 8,000 gallons (30,274 L) and an aggregate capacity of 16,000 gallons (60,549 L). LL. Amend Section 2306.2.6 items 1 and 6 to read as follows: 1. The special enclosure shall be liquid tight and vapor tight. A leak detection- monitoring system capable of detecting liquid and providing an audible and visual alarm shall be installed and tested annually. 6. Tanks containing Class l, ll, or lll liquids inside a special enclosure shall not exceed 2,000 gallons (7569 L) in individual capacity or 6,000 gallons (22746 L) in aggregate capacity MM. Amend Section 3307.1 to read as follows: Section 3307.1 Required access. Approved vehicle access for firefighting shall be provided to within 100 feet of temporary or permanent fire department connections all construction or demolition sites. Vehicle access shall be provided by either temporary or permanent roads, capable of supporting vehicle loading under all weather conditions to within 150 feet of all combustible building materials or construction. Vehicle access roads shall be maintained until permanent fire apparatus access roads are available. NN. Amend Section 5601.1 and add exceptions 11 and 12 to read as follows: 5601.1 Scope. The provisions of this chapter shall govern the possession, manufacture, storage, handling, sale and use of explosives, explosive materials, fireworks, rockets, emergency signaling devices and small arms ammunition. Manufacture, possession, storage, sale, transportation, handling or use of explosive materials and the manufacture of explosive material and/or all fireworks, including Safe and Sane as designated by the Office of the State Fire Marshal, is prohibited within the City. o-1751 Docusign Envelope lD: 7FCBB616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 49 RR. Add Section 57A4.2.8.11.1 to read as follows 5704.2.8.11.1 Monitoring and detection. Activation of vapor detection systems shall also shut off dispenser pumps. Monitoring and detection systems shall be inspected and tested annually. SS. Amend Sections 5704.2.9 to read as follows: 5704.2.9 Above-ground tanks outside of buildings. Above-ground storage of flammable and combustible liquids in tanks outside of buildings shall comply with Section 5704.2 and Sections 5704.2.9.1 through 5704.2.9.7.9 and Section 2306.2.3, condition 3 as amended by this chapter. TT. Amend Section 5704.2.13.1.4 to read as follows with items 1 through 6 to remain 5704.2.13.1,4 Tanks abandoned in place. A tank owner/operator proposing to abandon a tank in place shall submit a permit application to the fire department for assessment of soil contamination around the tank and product, vent and vapor piping. lf contamination is confirmed, a work plan for additional assessment or remediation shall be submitted to the fire department within 30 days. lf a tank is approved for abandonment in place, the property owner will be required place a deed notice on the property. The deed notice shall be notarized and recorded with the San Luis Obispo County Clerk Recorder's Office within 30 days of tank abandonment. Tanks abandoned in place shall be as follows: UU. Amend 5706.2.4 and the Exception to Section 57A6.2.4 to read as follows: 5706.2.4 Permanent and temporary tanks. The capacity of permanent above- ground tanks containing Class l, ll or lll liquids shall not exceed 1,100 gallons (4164L). The capacity of temporary aboveground tanks containing class l, ll, or lll liquids shall not exceed 8,000 gallons (30 274 L). Tanks shall be of the single- compartment design, double-walled construction and shall be listed by Underwriters Laboratory (U L). Exception: Permanent aboveground tanks of greater capacity which meet the requirements of 5704.2, as amended, may be permitted when approved by the fire code official. W. Amend Section 57A6.2.5 to read as follows: 5706.2.5 Type of tank. Tanks shall be listed for use by Underwriters Laboratory (UL), provided with top openings only, and overfill protection, and approved hoses/nozzles. Tanks shall be of double-walled construction or be provided with secondary containment. Elevated gravity discharge tanks shall be permitted only by approval of the fire code official. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 51 AAA. Amend Appendix Section D103.4, Table D103.4 and Figure D103.1 to read as follows: D103.4 Dead ends. Dead-end fire apparatus access roads in excess of 150 feet shall be provided with width and turnaround provisions in accordance with Table D103.4, as amended. Exception: Where buildings along the dead-end road are protected by an approved fire sprinkler system throughout, the distance may be increased to 300 feet (91 440 mm). Table D103.4: The minimum fire apparatus turnaround cul-de-sac diameter shall be 70 feet, curb to curb, when posted "No Parking". BBB. Amend Appendix Section D103.6 through D103.6.2 to read as follows D103.6 Signs. Where required by the fire code official, fire apparatus roads shall be marked with permanent NO PARKING--FIRE LANE signs per city standards. Signs shall be posted on one or both sides of the fire apparatus road as required by Section D103.6.1 or D103.6.2. D103.6.1 Roads less than 28 feet in width. Fire apparatus roads 20 to less than 28 feet wide shall be posted on both sides as a fire lane. D103.6.2 Roads 28 or greater feet in width. Fire apparatus roads 28 to less than 36 feet wide shall be posted on one side of the road as a fire lane. CCC. Amend Appendix Section D104.1to read as follows: D104.1 Buildings exceeding three stories or 30 feet in height. Buildings or facilities exceeding 30 feet (9144 mm) or three stories in height shall have adequate means of fire department access for each structure as approved by the fire code official. DDD. Amend the Exception to Appendix Section D104.2 to read as follows: D104.2 Buildings exceeding 62,000 square feet in area. Buildings or facilities having a gross building area of more than 62,000 square feet (5760 m2) shall be provided with two separate and approved fire apparatus access roads. Exception: Buildings located in the commercial fire zone as shown on Figure 9-A of this code may be provided with fire apparatus access roads having a minimum width of 2O feet when approved by the fire code official. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 53 B. Amend Appendix Section A102.1 and add exceptions to read as follows: IBSI A102.1 General. The provisions of this chapter shall apply to all existing buildings having at least one unreinforced masonry wall. The elements regulated by this chapter shall be determined in accordance with Table A102.1. Except as provided herein, other structural provisions of the building code shall apply. This chapter does not apply to the alteration of existing electrical, plumbing, mechanical or fire safety systems. Exceptions: 1. Warehouses or similar structures not used for human habitation unless housing emergency equipment or supplies. 2. A building having five living units or less. C. Add the following definitions to Section A103 LEVEL A STRENGTHENING of an unreinforced masonry building is compliance with the provisions of this chapter, limited to the removal of or bracing of parapets, installation of anchors between walls and roof, and installation of anchors between walls and floors. LEVEL B STRENGTHENING of an unreinforced masonry building is compliance with all provisions of this chapter. D. Amend Appendix Section A109.2 to read as follows: [BSl A109.2 Selection of Procedure. Buildings shall be analyzed by the General Procedure of Section A110, which is based on Chapter 16 of the California Building Code, orwhen applicable, buildings may be analyzed by the Special Procedure of 4111. Buildings with a substantially complete steel or concrete frame capable of supporting gravity dead and live loads and that utilize unreinforced masonry walls as non-bearing infill between frame members shall be analyzed by a procedure approved by the building official. Qualified historic structures may be analyzed per the California Building Standards Code, Part 8, California Historical Building Code. o-1751 Docusign Envelope I D: 7FC8B6 1 6 -4D28-4 AF 1 -5657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 55 A115.2.3 Content of notice and order. The notice shall specify that the building has been determined by the building official to be within the scope of this chapter and, therefore, is subject to the minimum seismic standards of this chapter. The order shall direct the owner to obtain a building or demolition permit as required by this chapter and cause the building to be structurally altered to conform to the provisions of this chapter, or cause the building to be demolished. The notice or order shall be accompanied by a copy of Section A115.1, which sets forth the owner's responsibilities. A115.3 Appeal. The owner of the building may appeal the building official's initial determination that the building is within the scope of this chapter to the Board of Appeals established by Chapter 1, Division ll, Section 113 of the California Building Code, as adopted. Such appeal shall be filed with the Board within 60 days from the service date of the order described in Section 4115.2. Any appeal shall be decided by the Board no later than 90 days after filing and the grounds thereof shall be stated clearly and concisely. Appeals or requests for modifications from any other determinations, orders or actions by the building official pursuant to this chapter shall be made in accordance with the procedures established in Chapter 1, Division ll, Section 104.10 of the California Building Code. A115.4 Recordation. At the time that the building official serves the aforementioned notice, the building official shall also file and record with the office of the county recorder a certificate stating that the subject building is within the scope of this chapter and is a potentially earthquake hazardous building. The certificate shall also state that the owner thereof will be ordered to structurally analyze the building to determine compliance with this chapter. lf the building is either demolished, found not to be within the scope of this chapter, or is structurally capable of resisting minimum seismic forces required by this chapter as a result of structural alterations or an analysis, the building official shall file and record with the office of the county recorder a form terminating the status of the subject building as being classified within the scope of this chapter. A115.5 Enforcement. lf the owner in charge or control of the subject building fails to comply with any order issued by the building official pursuant to this chapter within the time limit set forth in Section 41 15.1 , the building official shall verify that the record owner of this building has been properly served. lf the order has been served on the record owner, then the following provisions apply: o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 57 Appendix F DEMOLITION AND MOVING OF BUILDINGS sEcfloN F101 GENERAL F101.1 Purpose. The purpose of this appendix is to establish minimum standards and procedures for the demolition and relocation (moving) of buildings and structures to safeguard life, property, health and public welfare. It is also intended to ensure that moved buildings are structurally sound, sanitary, habitable, and that they will harmonize with existing development in the area to which they are to be moved. F101.2 Scope. This appendix sets forth rules and regulations to control demolition and relocation operations, establishes the administrative procedures for review of an application to demolish or move a building, and provides for the issuance of permits. Fl01.3 Appeals. Any person aggrieved by a decision made underthe terms of this chapter may appeal such decision. For matters concerning the technical provisions of this code, such appeal shall be subject to the provisions of the Chapter 1 , Division ll Section 1 13 of the California Building Code; for all other matters, the appeal provisions of Chapter 1.20 of the Municipal Code shall apply. SECTION F1O2 DEFINITIONS Section F102 General. For the purposes of this appendix, certain terms, words and their derivatives shall be defined as specified in this section. ARC means the Architectural Review Commission appointed by the City Council. CHC means the Cultural Heritage Committee appointed by the City Council Demolition means the complete or partial removal of a structure. o-1751 Docusign Envelope lD: 7FC8B616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 59 F103.2 Moving and Relocation of Buildings. F103.2.1 lnspection of buildings to be moved. All buildings to be moved into or within the city shall be inspected by the building official to determine compliance with this code and suitability for moving prior to permit issuance. F103.2.2 Transportation and building permits required. For moving projects, a transportation permit shall be obtained from the public works director subsequent to issuance of a moving permit. Building, plumbing, electrical, and mechanical permits shall be required for all work necessary for the placement of a moved or relocated building. F103.3 Procedure for permit application processing. Prior to issuance of a permit to demolish or relocate a building or structure, the permit application shall be subject to the following: 1. Demolition or relocation of historical resource. For any structure located on a property listed on the lnventory of Historical Resources, an application for Architectural Review shall be submitted and require approval prior to issuance of a permit for building relocation or demolition. The application shall include plans for replacement structures, at the discretion of the Community Development Director. 2. Demolition or relocation of structure not designated historical. For any structure that is not located on a property listed on the lnventory of Historical Resources and that is over 50 years old, the Community Development Director shall determine if the structure or structures proposed for demolition are a potential historic resource. lf the Community Development Director determines that the structure or structures is/are a potentially historic resource(s), the applicant shall submit an application for Architectural Review. lf the Community Development Director determines the structure or structures not to be a potential historic resource, the applicant shall provide evidence that for a period of not less than 90 days from date of permit application, the building was advertised in a local newspaper on at least 3 separate occasions not less than 15 days apart, as available to any interested person to be moved; and submit historic documentation for the structure in accordance with criteria established by the Community Development Director and the Cultural Heritage Committee. o-1751 Docusign Envelope lD: 7FC886'16-4D28-4AF1 -S657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 61 F103.6 Damage to public property. As a condition of obtaining a permit to demolish or move any building or structure, the permittee shall assume liability for any damage to public property occasioned by such moving, demolition, or removal operations. Applicants for demolition permits shall provide information and plans when requested for protection of public property. lnformation and plans shall be specific as to type of protection, structural adequacy and location. Approval to use or occupy public property shall be obtained before proceeding with demolition work. F103.7 lnsurance. Prior to the issuance of a permit to demolish or move any building or structure, the permit applicant shall deposit with the building official a certificate of liability insurance naming the city as an additional insured party on the insurance policy. Such insurance shall be valid at all times during demolition or moving operations. The liability insurance coverage shall be in an amount of at least five hundred thousand dollars per occurrence for injuries, including accidental death to any one person, and subject to the same limit for each additional person, in an amount at least one million dollars on account of any one accident: and property damage in an amount at least five hundred thousand dollars. Exception: Demolition of a wood frame building not greater than two stories or twenty-five feet in height, measured to the top of the highest point of the roof, provided the building is not less than twenty feet from public property lines or, if less than twenty feet from public property lines, adequate protection is provided for pedestrians and public property to the satisfaction of the building official. F103.8 Disconnecting service lines. Prior to the issuance of a permit to demolish or relocate a building or structure, the permit applicant shall complete the following to the satisfaction of the building official: 1. Electrical service. The power to all electric service lines shall be shut- off and all such lines cut or disconnected outside the property line. Prior to the cutting of such lines, the property owner or his agent shall notify and obtain the approval of the electric service agency. 2. Other service. All gas, water, steam, storm, sanitary sewers, and other service lines shall be shut-off and/or abandoned as required by the public works director, utilities director, or other agency o-1751 Docusign Envelope lD: 7FCB8616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series) Page 63 SECTION 15.04.110 AMENDMENTS; GREEN BUILDING STANDARDS (RESERVED). SECTTON 15.04.120 AMENDMENTS; REFERENCED STANDARDS (RESERVED). SECTION 15.04.130 AMENDMENTS; PROPERTY MAINTENANCE STANDARDS. A. All references to "lnternational" codes shall be replaced with "California" codes. B. Amend Chapter 1, Part 1, Section 101.1to read as follows: 101.1 Title. These regulations shall be known as the Property Maintenance Code of The City of San Luis Obispo, hereinafter referred to as "this code." C. Amend Chapter 1, Part 1, Section 102.3 to read as follows: 102.3. Application to other Codes. Nothing in this Code shall be construed to cancel, modify, or set aside any provision of the California Code of Regulations, Title 24 as amended and adopted by the City of San Luis Obispo. D. Amend Chapter 1 , Part 2, Section 103.1 to read as follows: 103.1 Creation of enforcement agency. The Building and Safety Division is hereby created and the official in charge thereof shall be known as the building official. The function of the agency shall be the lmplementation, administration and enforcement of the provisions of this code. E. Add Chapter 1, Part 2, Section 109.2.2 is added to read as follows 109.2.2 Glosed structures method and term. Structures ordered to be closed, shall be closed in accordance with Appendix A of this code. F. Amend Chapter 1 , Part 2, Section 1 09.4 and Delete Sections 109.4.1 & 1 09.4.2 to read as follows: 109.4 Notice. Whenever the code official determines that there has been a violation of this code or has grounds to believe that a violation has occurred, notice shall be given in the manner prescribed in San Luis Obispo Municipal Code Sections 1.24.05A (il & (G) to the owner or the owner's authorized agent, for the violation as specified in this code. Notices for condemnation procedures shall comply with this section. o-1751 Docusign Envelope lD: 7FCBB616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 65 L. Amend Chapter 3, Section 3A2.4 to read as follows: 302.4 Weeds. All premises and exterior property shall be maintained free from weeds or plant groMh in excess of 12 inches. Noxious weeds shall be prohibited. Weeds shall be defined as all grasses, annual plants and vegetation, other than trees or shrubs provided; however, this term shall not include cultivated flowers and gardens M. Amend Chapter 3, Section 303.2 to read as follows: 303.2 Enclosures. Pool enclosures shall be in accordance with the States Swimming Pool Safety Act found in the State Health and Safety Code Sections 1 15920-1 15929. N. Amend Chapter 3, Section 304.14 to read as follows 304.14lnsect screens. Every door, window and other outside opening required for ventilation of habitable rooms, food preparation areas, food service areas or any areas where products to be included or utilized in food for human consumption are processed, manufactured, packaged or stored shall be supplied with approved tightly fitting screens of minimum 16 mesh per inch (16 mesh per 25mm), and every screen door used for insect control shall have a self-closing device in good working condition. Exception: Screens shall not be required where other approved means, such as air curtains, are provided O. Amend Chapter 3, Section 307.1 to read as follows 307.1 General. Handrails and Guardrails shall be maintained in their most recently approved (by permit) state. o-1751 Docusign Envelope lD: 7FCB8616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 67 S. Amend Chapter 6, Section 602.4 to read as follows: 602.4 Occupiable workspaces. lndoor occupiable workspaces shall be supplied with heat to maintain a minimum temperature of 65"F (18'C) during the period the spaces are occupied. Exceptions: 1. Processing, storage and operation areas that require cooling or special temperature conditions. 2. Areas in which persons are primarily engaged in vigorous physical activity. SECTION 15.04.140 AMENDMENTS; HEALTH AND SAFETY STANDARDS SECTION 15.04.150 PERMITS REQUIRED FOR WELL CONSTRUCTION A. No person shall construct, repair, modify, abandon or destroy any water well without first obtaining a permit from the City. As used herein, "water well" shall mean an artificial excavation constructed by any method for the purpose of extracting water from, or injecting water into, the underground. B. All work performed pursuant to each such permit shall be in conformance with all State laws and standards including applicable portions of Department of Water Resources Bulletin No. 74-81, all City ordinances, resolutions and policies relating thereto, and such permit conditions as may be imposed by the City. C. Any water-well constructed, repaired, modified, destroyed, abandoned, or operated in violation of this section or the permit requirements shall constitute a public nuisance which may be abated by the City. A person who digs, drills, excavates, constructs, owns or controls any well and abandons such well and a person who owns, occupies, possesses or controls any premises on which an abandoned well exists shall cap or othenrvise securely cover, cap or protect the entrance to the well. The capping or covering shall be so constructed and installed as will prevent any human being from suffering any bodily injury or death, through accident or inadvertence, by reason of the existence of the well. SECTION 7. The Chief Building Official and Fire Code Official are hereby authorized and directed to transmit a copy of this ordinance to the California Building Standards Commission as required by California Health and Safety Code Section 17958.7. This Ordinance shall be effective as of January 1, 2026, and will be enforced upon approval by the Building Standards Commission. o-1751 Docusign Envelope lD: 7FC88616-4D28-4AF1-9657-A965733465D8 Ordinance No. 1751 (2025 Series)Page 69 SECTION 9. A summ ary of this ordinance, approved by the City Attorney, together with the ayes and noes shall be published at least 5 days prior to its final passage in the New Times, a newspaper published and circulated in said City, and the same shall go into effect at the expiration of 30 days after its final passage, but not before January 1, 2026. 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 member of the public INTRODUGED on the l Bth day of November,2025, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 2nd day of December,2025, on the following vote: AYES: NOES: ABSENT: Council Member Boswell, Francis, Vice Mayor Shoresman and Mayor Stewart None Council Member Max by: h^";i .Eu"s-: Mayor Erica A. Stewart ATTEST: ffim" Teresa Purrington City Clerk APPROVED AS TO FORM: Docusigned by: * J. Christine Dietrick City Attorney lN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California,on 121812025 l9:23 AM PST by: Teresa Purrington City Clerk N I, c) s o-1751 58 From:Webb, Donré Sent:Monday, April 13, 2026 4:07 PM To:Estrada, Ethan Subject:RE: PC Resolution - 4.8.2026 Attachments:PC-1118-26 (CODE-0149-2026 -- Citywide)).docx; PC-1118-26 (CODE-0149-2026 -- Citywide).pdf Copies are attached – uploaded to Laserfiche and EnerGov. From: Estrada, Ethan <EJEstrad@slocity.org> Sent: Monday, April 13, 2026 2:37 PM To: Webb, Donré <DWebb@slocity.org> Subject: PC Resolution - 4.8.2026 Good afternoon, Attached is a signed resolution from last week’s PC hearing for filing. Please let me know once this has been entered into Laserfiche – I have to include it as an attachment in the council agenda report for the same item. Thanks! Kind regards, Ethan Estrada Assistant Planner Community Development 919 Palm, San Luis Obispo, CA 93401-3218 E EJEstrad@slocity.org T 805.781.7576 slocity.org Stay connected with the City by signing up for e-notifications RESOLUTION NO. PC-1118-26 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN LUIS OBISPO RECOMMENDING THE CITY COUNCIL INTRODUCE AND ADOPT AN ORDINANCE AMENDING TITLE 16 (SUBDIVISION REGULATIONS), TITLE 17 (ZONING REGULATIONS), AND TITLE 5 (LICENSES, PERMITS, AND REGULATIONS) OF THE MUNICIPAL CODE REGARDING ACCESSORY DWELLING UNITS, JUNIOR ACCESSORY DWELLING UNITS, URBAN LOT SPLITS, MOBILE HOMES, AND OTHER CLARIFICATIONS AND CHANGES TO REGULATIONS ASSOCIATED WITH HOUSING, WITH AN EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED APRIL 8, 2026 (CODE- 0149-2026) WHEREAS, on August 31, 2020, Governor Newsom approved AB 2782 implementing numerous changes to the Mobilehome Residency Law, primarily repealing an exemption to rent control measures for long-term mobile home leases; and WHEREAS, on October 10, 2025, Governor Newsom approved AB 1061 to allow minor urban lot splits on properties located in a historic district; and WHEREAS, the City of San Luis Obispo desires to update Title 16 (Subdivision Regulations) and Title 5 (Licenses, Permits, and Regulations) so that they may be consistent with current state law; and WHEREAS, a number of changes have been identified in order to clarify or change processes related to housing development to more efficiently implement policies and programs of the City of San Luis Obispo’s General Plan that are implemented through Title 17 (Zoning Regulations) and align with state housing law; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on April 8, 2026, for the purpose of recommending various amendments to Title 16, Title 17, and Title 5 of the Municipal Code to ensure consistency with state law, as well as to clarify City standards and procedures; and WHEREAS, notice of said public hearing were made at the time and in the manner required by the law; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of interested parties and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City of San Luis Obispo as follows: Planning Commission Resolution No. PC-1118-2026 CODE-0149-2026 (Citywide) Page 2 SECTION 1. Findings. Based upon all evidence, the Planning Commission makes the following findings: 1. The proposed amendments to Titles 16, 17, and 5 will not cause significant health, safety, or welfare concerns since the amendments are consistent with the General Plan and directly implement City goals and polices. 2. The proposed amendments to Title 17 are consistent with the 6th Cycle Housing Element in promoting Goal 5 (Housing Variety) and Goal 6 (Housing Production). 3. The proposed amendments to Title 16, 17, and 5 are consistent with state law. SECTION 2. Environmental Determination. The proposed code amendments to Title 16, Title 17, and Title 5 of the Municipal Code have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the proposed amendments have been determined to be exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Individual discretionary developments will still be required to conduct environmental analyses as appropriate. The proposed code amendments pertaining to ADUs and JADUs are also exempt under Public Resourced Code Section 21080.17 that applies to local ordinances implementing state regulations related to accessory dwelling units. SECTION 3. Action. The Planning Commission hereby recommends to the City Council the introduction and adoption of an ordinance to amend Title 16 (Subdivision Regulations), Title 17 (Zoning Regulations), and Title 5 (Licenses, Permits, and Regulations) of the City’s Municipal Code regarding accessory and junior accessory dwelling units, urban lot splits, mobile homes, and other clarifications and changes to regulations associated with housing, as set forth in Attachments B, C, and D. Upon motion of Commissioner Cooley, seconded by Commissioner Flores and on the following roll call vote: AYES: Commissioner Cooley, Commissioner Munoz-Morris, Commissioner Jorgenson, Commissioner Kahn, Commissioner Flores, Chair Houghton NOES: None REFRAIN: None ABSENT: Vice Chair Tolle Planning Commission Resolution No. PC-1118-2026 CODE-0149-2026 (Citywide) Page 3 The foregoing resolution was passed and adopted this 8th day of April, 2026. _________ Tyler Corey, Secretary Planning Commission RESOLUTION NO. PC-1118-26 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN LUIS OBISPO RECOMMENDING THE CITY COUNCIL INTRODUCE AND ADOPT AN ORDINANCE AMENDING TITLE 16 (SUBDIVISION REGULATIONS), TITLE 17 (ZONING REGULATIONS), AND TITLE 5 (LICENSES, PERMITS, AND REGULATIONS) OF THE MUNICIPAL CODE REGARDING ACCESSORY DWELLING UNITS, JUNIOR ACCESSORY DWELLING UNITS, URBAN LOT SPLITS, MOBILE HOMES, AND OTHER CLARIFICATIONS AND CHANGES TO REGULATIONS ASSOCIATED WITH HOUSING, WITH AN EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED APRIL 8, 2026 (CODE- 0149-2026) WHEREAS, on August 31, 2020, Governor Newsom approved AB 2782 implementing numerous changes to the Mobilehome Residency Law, primarily repealing an exemption to rent control measures for long-term mobile home leases; and WHEREAS, on October 10, 2025, Governor Newsom approved AB 1061 to allow minor urban lot splits on properties located in a historic district; and WHEREAS, the City of San Luis Obispo desires to update Title 16 (Subdivision Regulations) and Title 5 (Licenses, Permits, and Regulations) so that they may be consistent with current state law; and WHEREAS, a number of changes have been identified in order to clarify or change processes related to housing development to more efficiently implement policies and programs of the City of San Luis Obispo’s General Plan that are implemented through Title 17 (Zoning Regulations) and align with state housing law; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on April 8, 2026, for the purpose of recommending various amendments to Title 16, Title 17, and Title 5 of the Municipal Code to ensure consistency with state law, as well as to clarify City standards and procedures; and WHEREAS, notice of said public hearing were made at the time and in the manner required by the law; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of interested parties and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City of San Luis Obispo as follows: Planning Commission Resolution No. PC-1118-2026 CODE-0149-2026 (Citywide) Page 2 SECTION 1. Findings. Based upon all evidence, the Planning Commission makes the following findings: 1. The proposed amendments to Titles 16, 17, and 5 will not cause significant health, safety, or welfare concerns since the amendments are consistent with the General Plan and directly implement City goals and polices. 2. The proposed amendments to Title 17 are consistent with the 6th Cycle Housing Element in promoting Goal 5 (Housing Variety) and Goal 6 (Housing Production). 3. The proposed amendments to Title 16, 17, and 5 are consistent with state law. SECTION 2. Environmental Determination. The proposed code amendments to Title 16, Title 17, and Title 5 of the Municipal Code have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the proposed amendments have been determined to be exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Individual discretionary developments will still be required to conduct environmental analyses as appropriate. The proposed code amendments pertaining to ADUs and JADUs are also exempt under Public Resourced Code Section 21080.17 that applies to local ordinances implementing state regulations related to accessory dwelling units. SECTION 3. Action. The Planning Commission hereby recommends to the City Council the introduction and adoption of an ordinance to amend Title 16 (Subdivision Regulations), Title 17 (Zoning Regulations), and Title 5 (Licenses, Permits, and Regulations) of the City’s Municipal Code regarding accessory and junior accessory dwelling units, urban lot splits, mobile homes, and other clarifications and changes to regulations associated with housing, as set forth in Attachments B, C, and D. Upon motion of Commissioner Cooley, seconded by Commissioner Flores and on the following roll call vote: AYES: Commissioner Cooley, Commissioner Munoz-Morris, Commissioner Jorgenson, Commissioner Kahn, Commissioner Flores, Chair Houghton NOES: None REFRAIN: None ABSENT: Vice Chair Tolle Planning Commission Resolution No. PC-1118-2026 CODE-0149-2026 (Citywide) Page 3 The foregoing resolution was passed and adopted this 8th day of April, 2026. _________ Tyler Corey, Secretary Planning Commission