HomeMy WebLinkAbout01/31/1989, COMM 1 - MEASURE D - CREEKSIDE LEASE ML��rING AGENDA
DATE Z-3 1 8f ITEM # dm.
*Denotes action by Lead Person
Respond by:
Date : January 30, 1989 2,Mnad
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To: Council Colleagues &(*Atty.
S,Cferk-orig.
From: Penny �` Wil
GYM'_/ -_�
Re.: Measure D - Creekside Lease , El
With the passage of Measure D, park owners and tenants were
encouraged to work together for long term leases . Unfortunately
the new ordinance is very vague on the process to bring about
these leases .
one requirement is that if 2/3 of the tenants agree to a lease,
the entire park is out from under rent control . QUESTION: How
is the number of tenants signing a lease verified? Should the
new ordinance spell out a process?
It appears from the information attached that at Creekside,
several leases/amendments have been under consideration recently.
There appears to be some confusion as to who signed which lease .
It also appears that the "Homeowners Assn.. " has agreed to some
revisions . QUESTION: Should we have a process to clarify
presentation/acceptance of lease agreements?
What stipulations should be required to give authority to a
Homeowners Assn. to sign for the majority? Should all tenants be
members? I don' t believe this is the case at Creekside .
Lastly, should the ordinance establish a process for the
pass-through of expenses?
I 'm requesting that the Council direct staff to clarify the above
issues . This is the first application I 'm aware of under the new
ordinance . I think it is extremely important to establish a
process which is equitable to all parties .
cc: John
Roger
RECEIVED
JA% 30 tga9
OTr CLERK
SAN LU150MSPO C"
s
Mobilohe"Coimno.iq
3961 SOUTH HIGULRA • SAN LUIS OBISPO • CALIFORNIA 93401 • PHONE 805/543-7113
Board of Directors
Creekside Homeowners Association
3960 South Higuera Street
San Luis Obispo, California 93401
Re: ILZTTER OF UNDERSTANDING
Dear Board Members:
This is a letter of understanding clarifying an
interpretation of the lease executed by residents at Creekside
Mobilehome Park. Pursuant to Paragraph 16 of the lease, the Board
of Directors of the Creekside Homeowners Association shall meet and
confer in good faith with Creekside Mobilehome Park ("Park") to
resolve disputes regarding calculation of rent increases allowed
under the lease.
The. Park has submitted to you its calculations for rent
increases allowed pursuant to Paragraph 6 of the lease. You raised
a question regarding the calculation of rent increases resulting
from increased water rates. After Park representatives met with
you, the following was resolved.
Increased expenses resulting from increased water rates
are permitted as a pass-througn expense, pursuant to Parsa_aph
a
despite the language in Paragraph 9 which states that water will
be included in the base rent for a maximum monthly allowance of 800
cubic feet. Charges for water consumed in excess of 800 cubic feet
are listed as a separate itemized amount pursuant to Paragarph 9 .
Increases in expenses resulting from an increased water rate for
water used in common areas and for water supplied to tenants and
included in base rent up to 800 cubic feet are allowed as a pass-
through pursuant to Paragraph 6. The Park has indicated that this
was the intention of the agreement when originally negotiated, and
that it will not accept the leases signed by- residents unless this
interpretation is clarified.
With respect to the method of calculating allowable rent
increases' resulting from expense pass-throughs pursuant to
Paragraph 6, a clarification to the lease was required. Paragraph
6 states that CPI increases, calculated under Section 4 , shall be
deducted from allowable expense pass-throughs. The question was
Board of Directors I
Creekside Homeowners Association
Page Two ,
raised as to which period of time CPI increases would be
calculated. It was resolved that the CPI increases recieved
by the park shall be calculated for the time period between
the date of the last increase in the relevant expense and
the date of the most recent increase in the relevant expense .
By way of example, if the last increase in water rates occurred
in June of 1983, and the most current increase in water rates
occurred in June of 1988, then the Park would be allowed an
expense pass-through for the increase in water rates, less
the percentage change in the rents calculated for the period
from. June 1983 to June 1988 .
With respect to new expenses that did not previously
exist, there would be no deduction for CPI .
I appreciate the Board' s cooperation in helping to resolve
these matters, and the Park looks forward to a good relationship
in the future under the terms of the lease .
Very truly yours,
CREEKCIDE MOBILEHOMEE DAR
By:
The aforementioned letter of understanding is hereby
agreed to .
CREEKSIDE HOMEOWNERS ASSOCIATION
By:
By:
Coinn�. 1-3
I• e!�
yopi MllpnN�WIPIY41b '
3960 SOUTH HIGUERA • SAN .Luis Oaisro • GLJFOANIA 93401 • PHONE 805/543-7113
December 1, 1988
Dear Resident,
60 DAY NOTICE OF RENT INCREASE
You have been previously noticed that on or aluout January
19 1989 your rents will be increased in accordance with San Luis
Obispo Rent Stabilization. Ordinance..
You are hereby noticed that Creekside has exceed the Exemp-
tion requirements under Sections $.44.030 and therefore your rents
and other charges will be further increased under the terms of the
Creekside Lease as revised June 15, 1988.
Effective Feb. l , 1989 the Base Rent on your space will
be $ 217.60 per month. In addition, there will be prorata
pass-throughs reflecting the Lease and recent increases in water
and sewer rates by the City of Sar. Luis Obispo . Sewer charge'
are paid separately under the Lease and have been increased $ 2.70
per space for a total of $ 5.70 per space. Water has increased
on a prorata basis $ 2.68 and has been adjusted for the CPI .
Sewer and water will be itemized separately on your monthly
statement.
You should also be aware that you will be billed for all water
used in excess of 800 cubic feet per month at the pervailing rate
charged by the City of San Luis Obispo .
An explanation. follows:
co�� 41
Gree4ide
Ye0�41ww�Gwau�lry
3960 SOUTH HIGUERA • SAN Luis Ompo • C/LLIFOANIA 93401 • PHONE 805/543.7113
Initial Base Rent $204„37
(per lease)
CPI $ 204._37 x. 045
(4. 5% increase in CPI
@100%)
2% Provision $ 4.03
1989 BASE RENT $217.60
Plus additional Rent-
Water pass-thru $z-68__
Sewer Fees $ 5.70
Additional calculations on how the charges were computed are
available in the park office and have been forwarded to the City of
San Luis Obispo .
Please be advised that the fair rent for your space in Creekside
for 1989 as adjusted for inflation and the extraordinary increases
for water and sewer is $ 226.44. This is the amount which will
be requested under the HARDSHIP provision Section 5.44. 070 should
it become necessary to do so .
Since you have chosen not to sign the Lease., you are hereby
offered, in accordance with the Mobilehome Residency Law, your
choice of either a one (1 ) year lease or a month to month rental
agreement. Please stop by the office and select either the one
year or the month to month, so that your files can be updated and
brought current.
Should you have further questions please call or stop by
the office.
Sincerly,
CREEKSIDE
.. r o
. z
s
Y e
3966 SOUTH HIGULAA • SAN Luis 0BAF0 • CAUFO&NLA 93401 • PttoNs 805/343.7113
November 1 , 1988
60 DAY .NOTICE OF RENT INCREASE
on or about January 1 , 1y89 your rents will be increased in
accordance with the Sin Tmia n?`iQnc Ron+ rnnt,nnl (?rdinann.p . The new
rant on your space will be
The ordinance permits increases for CPI and certain pass thrus.
The Consumer Price Index for Los Angeles, Anaheim and Riverside, All . -
Urban Consumers. All Items fzom August, 1987 to August, 1988 increase
4. 5;x. In 'addition, the City of San Luis Obispo increased water and
sewer fees. Calculations for the adjustment are as follows:
1. Current Rent: 201 . 3
$
2. Rent/Current CPI Automatic Increase 9, 06
201 . 33 x 4. 4.o6
3. Water Prorated:
Effective Increase to Parka $8,647.83
Less: CPI Adjustment
$8,647.83 :: . 045 840 . 18
Increase 7,807 .65
Per Space: 7,807 .6:; 215 12 $3.62 3,.02
4. Sewer Increase:
Increase per Space per ,Xonth: $ 2.70
Less: CPI Adjustment
$ 2.70 X .Ok!5 . 12
Increase Per Space 2.58 i0 2. 5f
5. 1989 Space Rent:
$ 215 . 9
Therefore, your rents wi7.1 be increased. to the new space rent
_ } STYTY T)AYS from your receipt of this notice, to be further increased
u}ion ^ rfzpksido , Q arrlination :'or Rent Ad1ustment, under Section
5.44.070, etc. of the Rent Control Ordinance.
The application will request an amount of not less than
S 2?6_26 per mciah.. wr zcr is tbA 1989 Yair Rent as adjusted
inflation and pass thrus. In addition, adjustments will be requested
for extraordinary expenditures.
We are still w;;rking to F.erfe,! L the long term LEASE. and hope
to circumvent the necessity fcr a hent Adjustment Application `
CREEKSIDE
l — (f��•�6. ����� revised 06-15-88
l rebilA*"cefTumlh
LEASE AGREEMENT
NAME OF RESIDENT(S):
This lease is entered into as of the below date of execution by and between Park as Lessor, and the Resident as
Lessee. For Purposes of clarity, the Lessor is referred to as Park and the Lessee as Resident. The California
Civil Code Section 798.17 authorizes this notice; this lease will be exempt from any ordinance, rule, regulation
or initiative measure adopted by any local government entity, which establishes a maximum amount that the Park
may charge Resident for rent during the term of this lease. Park and Resident recognize the Creekside
Homeowners Association as the Resident representative on specified issues described herein. The Association
will be formed and exist pursuant to Section 798 of the California Civil Code.
1. DESCRIPTION OF THE PREMISES AND FACILITIES: Park leases to the Resident and Resident hires from Park
the space indicated above within above mobile home park which is to be used as a residence by Resident and for
no other purpose during the term of this lease. Park and Resident may mutually agree on other purposes. Park
is responsible for providing and maintaining the existing services and physical improvements in good working
order and condition. The following is a description of the physical facilities, which Park will continue to
provide:
A. Recreation building: features include meeting room, kitchen, card room (ping pong) and pool room,
including furniture and equipment.
B. Heated swimming pool and jacuzzi, including furniture.
C. Common Areas: includes streets, guest parking, street lights, park area, lawn areas, driveways and
perimeter fences.
D. Laundry Facilities.
E. All underground utilities but not limited to: gas system, electric system, sewer system, water
system, fire hydrants and associated water valves and cable TV.
F. Park shall promptly restore any of the services articulated in paragraphs A, B, C, D and E above in
the event of a failure.
In addition, Resident shall have the right to use common area facilities including swimming pool,
clubhouse and laundry facilities, at reasonable hours as may be posted at the facility. Also, subject to
availability, the Park provides storage facility in the Park for Residents. Use of this storage area is
governed by a separate agreement and fees for such use are not included in space rent.
2. TERM: The term of this Lease shall be for the period indicated in the space provided below,
commencing on the first day of January 1988 and ending:
Initial
December 31, 1993
December 31, 1998
The term of this Lease may be extended pursuant to the AUTOMATIC RENEWAL PROVISIONS in Section 25 of this Lease.
The Lease Anniversary Date will be January 1st of each year during the term of this Lease, including any
extensions per section 25. Beginning on Resident's 1989 Lease Anniversary Date, the then current rent will be
adjusted each year based on increases or decreases in the Consumer Price Index and the pass throughs noted in
sections 4 through 8 below.
3. RENT: Resident shall pAy to Park S 204. 32 per calendar month as the new base rent. The rent
shall be payable in advance on the first day of each calendar month commencing on the first day of October,
1988. All rent shall be paid at the office located within the Park without any offset or deduction whatsoever.
Should the rent not be paid by the 5th day of the month, a late charge of 510.00 may be charged to cover Park's
costs for additional accounting, office and collection expenses. Additionally, a handling charge of 55.00 may
be required for all checks returned by the bank due to insufficient funds in the Resident's account or for any
other reason. This provision shall not be construed as a waiver by the Park should the Park fail to enforce any
provision hereof after any default on the part of the Resident.
Furthermore, the acceptance of payments shall not constitute a waiver of any breach of rule, regulation
or any covenant of this Lease agreement or Park regulations, nor shall such acceptance affect any notice, demand
or suit hereunder, where the Resident is already in default.
It is the intent of this Lease to provide a formula that allows rents to maintain a level that keeps up
with inflation without putting undue financial burden on the Resident. Should rent be increased in excess of
the percentage increase of the Social Security Cost of Living Adjustment (COLA) benefits, Park will at its sole
option, upon individual application by those persons receiving Social Security benefits or eligible for Section
8 Rental Assistance on a case by case basis, extend hardship consideration based upon evidence of such need.
c
4. ADJUSTMENT OF REKI BY CONSUMER PRICE INDEX: Each year on the Lease Anniversary date, the then current
rent will be adjusted by the following formula: 1004 of the Consumer Price Index (CPI) from 0% to 5% and 75% of
any increase over 5%. If the rent in effect on January 1, 1988, for example, was S200.00 and the CPI increase
was 7%, this portion of Resident's rent adjustment would be 5% plus 1.5% (75`>. of the excess 2%), or 6.5%--making
a total rent of S213.00 in this inscancc. Fhe CPI used will be the one published by the Bureau of Labor
Statistics, All Urban Consumers, Los Angeles, Anaheim and Riverside (1982-84=100).
On the Lease Anniversary dates fur 1989, 1090, 199L and L992 there will be an additional rent adjustment
equal to 2% of the rent in effect on .January 1, 1988. If that rent was $200.00, an additional S4,00 would be
added to the rent. In the example above, the rent on January 1, L9H9 would then be 5217,00.
In calculating the additional 21, the L9,ii8 base figure would be used, limiting the increase in the
example above to S4.U0 in each of the years ,epccified.
Should the CPI (not including Chu additional e . facturi adjustment allowed under this section exceed 8%,
the full increase will be permitted n, lung as the percentage of increase above 8% does not exceed the
percentage increase of the Cost of Living Adjustment (COLA) for Social Security benefits during the most recent
COLA period. In other words, if the CPI rent adjustment allowed by this section were 10% and the most recent
increase in COLA were 8 1/24 the maxitnm: rent increase would be .S 1/Ta plus, if applicable, the additional 2%.
Decreases in the CPI will result in rent decreases using the same formula for rent increases provided in
this section.
In the event of a national. catastrophic economic event the parties may mutually agree to renegotiate this
lease.
The percentage increase or decrease in the CPI will be calculated by comparing the most recent month of
August with the CP1 for Chu August of the previous year. 1f the Index is discounted or revised during the term
of this Aginuumvnt, such other governmental indices or computations with which it is replaced shall be used in
order to obtain substantially the same result as would be obtained if the index had not been discounted or
revised. In the event a local San Luis Uhisp o index were to be established by the Bureau of labor Statistics,
Resident and Park may mutually agree to amend this section.
5. ADJUSTMENT OF RENT FOR REAL PROPERTY TAXES: If the cost of property taxes increases or decreases by an
amount equal to or less than the actual percentage increase or decrease in the CPI, which is designated in
section 4 above, no amount will be added to the current rent. To determine if property taxes have increased,
the most recent property tax bill actually received by Lessor will be used (i .e., it will be compared with the
property tax bill for the immediately preceding property tax year to determine if property taxes have increased
from one property tax year to the other.) If the cost of property taxes increases or decreases by an amount
greater than the actual percentage increase or decrease i.n the CPI , then the rent shall be adjusted based on the
increase or decrease in the Park's property CaL\es. This adjustment shall be prorated equally to each space.
For example, if real property taxes increase by S2=00 in excess of the amount allowed by the above CPI
limitation, and if there aro 2Pn spaces in the park, each space would he charged 51.00 additional rent for the
following lease year.
Property taxes are defined as all general and special real estate taxes; personal property taxes, bonds,
fees charges and surcharges and assessments or ether charges made in lieu of real property taxes (whether
actually paid or unpaid at tihe time of Cho rrnt increose.) levied upon or payable in connection with the land,
fixtures and improvumencs cvnstituti.an 1-n nubilv!hoMu park. They also include any tax or excise on rents or any
other tax, (however it may by descri.hvd, which is levied or assessed against the Park as direct substitution, in
whole or in part, fear any real pruperty LONUS.
6. ADJUSTMENT OF Rm FOR (MVERNMENT SERVICES AND IMPROVEMENTS: Examples of such items are utilities,
lire prutccCiuu, parrnwdic s ;viers a:;d ,Milt';' services and new or changed services or improvements. Resident's
rent will also be incrvasvd , r dccl—vas,d because of increases or decruases in existing, the requirement for new
or changed, improvements, services or ices charged to the Park or required by government bodies or others.
Increase or decreases under this sccci.un will he billed separately as additional rent on your monthly rent
statement so that the CPI Increases in section 4 herein do not apply. Any added cost incurred by the Park for
improvements shall be reimbursed by tho Resident Co the Park on a prorated basis or equal allocation for each
space ab provided under uninsured IOSSUS in ::ten ons MY and 7(b). If the cost of government .services and
improvements increases or decreahsus by an amount equal to or less than the actual percentage increase in the CPI
referred L in ni.Ctiun llblvc. email no IUIb"Uniwi I I he added CO oi' subtracted from the rent.
. AIMUSTYENT OF RIiVsT FOR (JNIXSURW IsSSES: I f LK Park Ila, suf fercd a property loss not actually
compensated by insurance and not caused by Uho torti,us conduct of Park or its agents or employees, the Park may
increase rent in addition to ulh,•r adiusumun Cx to runt provlcleu herein, Any increase in rent based on uninsured
losses shall be calculated as follows:
(a) The uninsured Loss shal I be spread over a number of years based on the amount of the loss. The
number of years shall be comlwtcd in nec,rd:urcc with the following schedule:
UNINSURED LUSS YEARS
0 -S 5,000 - .. ,— 1
0 - 1.0,000 3
0 - 50,000 8
U - i 50HU) LU
575,000 and .Ner 15
> 06/88
(b) the' uninsured loss shall be divided by the number of years in the schedule set forth above and the
quotient of that computation shall be divided by the total number of spaces in the Park, which quotient shall in
turn be divided by 12, and the total shall reflect the dollar increase in the monthly rent payment.
(c) The uninsured loss is defined as the total restored to "prior design and function condition" repair
or replacement of any property loss for which the Park is not actually compensated by insurance. In addition,
if the Park finances repair and replacement of such uninsured losses, the cost of financing shall also be
considered an "uninsured loss."
(d) The "uninsured loss" provisions shall be applicable only to those losses not covered in section (e)
below or for which there is no insurance available to the Park at competitive prices from companies rated A-X or
better authorized to do business in the State of California and listed in the most recent edition of Best Key
Rating Guide to Insurance. Park will use due diligence in attempting to locate such insurance. Resident shall
not be subject to any increases in rent as a result of any insured losses.
(e) Park will maintain subject to availability as provided in section (d) above the following insurance
coverage for the benefit of Creekside:
Basic Park Package:
*Broad form and Comprehensive General Liability.
*Property Coverage--All Risk/Replacement Cost excluding flood and earthquake.
*Flood and Earthquake (DIC). Difference in Conditions Policy including earthquake and flood with
S1,000,000 stop loss limit on property and loss of rents.
The property coverage will be maintained at current replacement values used for the Parks 1987 insurance
policies as adjusted for inflation by the full amount of the CPI. Park will be responsible for the deductible
portion of all insured losses or the first 5% or $20,000 of all uninsured losses, whichever is greater. Loss of
rents is not included in losses under this section.
(f) Increases under this section will be billed separately as additional rent on your monthly rent
statement, so that the CPI increases in section 4 herein do not apply. Once the cost of an uninsured loss has
been completely recovered from Resident by payment of increased rents, the additional rent charged for that
uninsured loss will be discontinued. Uninsured losses are not subject to prior approval by Resident(s). Park
shall provide Resident information regarding any rent increase allowed under this section.
(g) An example of the computation or uninsured losses is as follows:
Uninsured Loss Example
Assume a flood occurred during the year. If it cost the Park $31,750.00, including financing, to remove
mud and rocks from streets the cost to be passed through to the Residents would be calculated as follows:
531,750.00 less (5%) S1,750 - $30,000.00
S30,000.0U divided by 8 years = $3,750.00
$3,750.00 divided by 300 spaces = $12.50
$12.50 divided by 12 months = S1.04 per space (monthly share of repair cost) for 8 years
(h) Insurance policies included in subsection (e) above shall be made available to residents or
Creekside Homeowner's Association Board of Directors for review to assure residents that adequate coverage is
maintained to minimize any uninsured losses.
8. CAPITAL IIQ ROVEMENTS ADJUSTmExT: "Capital Improvement" means those improvements in the park that
materially add to the value of the property and appreciably prolong its useful life or adapt it to new uses, and
which may be amortized over the useful life of the improvement provided in accordance with the Internal Revenue
Code and regulations. Rent may be increased for any capital improvements made by Park, only if made in
accordance with this section. The total effective cost to Park for capital improvements will be verified by a
statement from Park's accountant that these are the total costs. The "cost" of capital improvements shall
consist of the actual cost of the improvement, including legal and engineering fees related to said
improvements, plus all interest, points, and other costs and charges relating to the borrowing of any sums by
Park to make such capital improvements. All capital improvement costs over $10,000.00 shall be subject to a
majority vote of Residents (one vote per space) who have signed this Lease or the approval of Creekside
Homeowners Association. Charges to Residents shall be made equally to Residents int accordance with allocations
provided in Sections 7(a) and 7 (b). The cost of any item of improvement up to S10,000.00 shall be at the sole
expense of Park under this section.
Improvements required by government under section 6 of this Lease will not be subject to a vote.
Park agrees that rehabilitation and preservation of streets and driveways will occur within two years of
the original date of this Lease. Park further agrees to redecorate the clubhouse, repair jacuzzi roof and
rebuild the carwash. The costs of such rehabilitation and redecorating will be paid by Park and will not be
passed through to Residents.
9. UTILITIES AND OTHER CHARGES: Utilities and other charges are additional rent. Resident shall pay
utility charges at the prevailing rates set by the serving utility companies which the Park is authorized 'to
charge Residents for the following utilities: natural gas, electricity and sewer. Water will be included in the
base rent for a maximum monthly allowance of 800 cubic feet. Resident will pay monthly the prevailing rates for
all water used in excess of 800 cubic feet. Should the government require metering of water, rents will be
reduced on a prorata basis by averaging the Creekside historical annual metered usage for all single and double
spaces over the prior three years' period. Resident will then, after the reduction in rent,,pay for the actual
metered water used based upon the then prevailing commodity charge. In addition, Park shall furnish trash
(3) 06/88
r..
disposal. Resident shall pay the Park directly for cable television: the charge shall not exceed the
residential consumer charges of the "servicing" cable company in the San Luis Obispo area. These charges shall
not be subject to the CPI adjustments set forth in Section 4.
10. RESIDENT'S OPTION TO TERMINATE LEASE: This Lease and Resident's tenancy may be terminated at the
option of the Resident on 30 days written notice providing the Resident moves from the Park and removes the
mobilehome from the Park or by assignment of this Lease as provided in Section 18.
11. USE PROHIBITED: Resident shall not permit the leased premises or any part thereof to be used for any
purpose than .as a residence for the persons listed above without prior approval. No other person may reside at
the premises without the Park's prior written permission. Such permission shall not be unreasonably withheld.
Guests are permitted under the terms of the Community Guidelines and the Mobilehome Residency Law. In
exceptional circumstances, for reasons of "hardship" Park may grant special written permission to allow others
to occupy residence during an extended absence. Park shall not unreasonably deny such requests but Park has
sole discretion regarding such requests. Resident shall assume full responsibility for substitute Resident(s)
to Park in any such case..
12. GUIDELINES AND PARK REGULATIONS: During the term of this lease, Resident shall comply with all the
Park "Community Guidelines", a copy of which is attached hereto and by this reference made a part hereof, which
may be changed from time to time pursuant to the terms of Section 798.25 of the California Civil Code. The Park
will meet and confer with Resident and Creekside Homeowners Association prior to amendment of any such rules.
13, MAINTENANCE OF THE HOMESITE PREMISES: The Park may charge a reasonable fee for services relating to
the maintenance of the land and premises upon which the mobilehome is situated in the event that Resident fails
to maintain such land or premises in accordance with the rules and regulations of the Park. Park may levy
charges for failure to maintain the premises only after Park has notified the Resident in writing of such
failure and Resident has not complied within 14 days. The written notice shall state the specific condition to
be corrected and an estimate of the charges to be imposed if the Resident does not correct the condition and the
Park or its agents perform this service.
14. ABANDONMENT PROHIBITED: Resident shall not vacate or abandon the premises at any time during the
term hereof. if Resident shall abandon, vacate or surrender their premises, any personal property belonging to
Resident left on the premises shall be deemed to be abandoned at the option of Park.
15. PARK'S RIGHT OF ENTRY: Resident shall permit Park and the agents and employees of Park to enter into
and upon the leased premises (space only) at all reasonable times for the purpose of inspecting the same and
for the purpose of posting notices of nun-responsibility for alterations, additions or repairs without any
rebate of rent and without any liability to Resident for loss of quiet enjoyment. The Park or its agent may
enter a mobilehome without prior written consent in case of abandonment of the mobilehome or an emergency.
16. ATTORNEY'S FEES AND COURT COSTS: If any action at law or equity shall be brought to recover any
rent, utility fees or other charges due under this lease or on account of any breach of, or to enforce or
interpret any of the covenants, terms or conditions of this lease or the rules attached hereto or for the
recovery of possession of the leased premises, the prevailing parties shall be entitled to recover from the
other party as part of the prevailing party's costs, reasonable attorney's fees and costs, the amount of which
shall be fixed by the court and made a part of any judgment or decree rendered. In the event of a dispute
regarding calculation of rent increases or decreases the Park and the. Board of Directors of the Creekside
Homeowners Association shall meet and confer in good faith in an attempt to resolve the dispute. In the event
the dispute is not resolved the Park and the Creekside Homeowners Association shall submit to arbitration using
an arbitrator and the rules propounded by the American Arbitration Association.. The provision shall in no way
be construed as a waiver of Park's right to enforce the agreement in unlawful detainer proceedings where the law
would otherwise allow.
17. WAIVER: The waiver by Park of the failure of Park to take action in any respect by any breach of any
term, covenant or condition herein contained, shall not be deemed to be a waiver of such term, covenant or
condition or subsequent breach of same, or any other term, covenant or condition herein contained.. The
subsequent acceptance of rent by Park shall not be deemed to be a waiver of any proceeding by Resident of any
term, covenant or condition of this lease other than the failure of Resident to pay the particular rent so
accepted, regardless of Park's knowledge of such proceeding breach at the time of accepting such rent.
18. ASSIGNMENT AND SUBLETTING: Resident shall have neither the right nor power to sublet the leased
premises, or any portion thereof, or any mobilehome located thereon and any such subleasing shall be void.
Resident shall not assign this lease without first obtaining the approval of the Park. Such approval may be
withheld if the Park is not notified in advance of the proposed assignment and approval or disapproval shall be
governed by Civil Code Sections 798.73 and 798.74. Further, any and all buyers/transferees of the mobilehome
shall execute an assignment of this Lease and, failing to do so, shall have no rights of tenancy.
Because the beginning rent in this lease to existing Residents is below reasonable market levels, Park
may increase rents upon the sale or other transfer of the mobilehome or subletting, should subletting ever
become allowed, to a level which reflects a more reasonable value of the space, services and amenities the Park
provides. This value is the New Lease Rent, which at the commencement of this Lease is S 233. 33 per
month. Only one such adjustment shall occur during the initial term of this Lease. The New Lease Rent will be
adjusted each year under the terms of Sections 4 through 8 and other provisions of this Lease.
(4) (.,D�M• /—fie
_ I
In the event of the sale or transfer of the mobilehome during any extension term, defined as any five
year term by which the initial Lease may be extended, rents may be increased no more than once by an amount not
to exceed 10% of the New Lease Rent in effect at the end of the preceding lease term as further adjusted under
Sections 4 through 8 and other provisions of this Lease.
The minimum reasonable market rents will be the New Lease Rent as adjusted annually under the terms of
this Lease. Transfers to spouses, children, parents or the purchase by Resident of another mobilehome in
Creekside which is to be used as their primary residence are exempt from such increase.
19. RESPONSIBILITY OF PARK: The Park shall have the responsibility to provide and maintain the physical
improvements in the common facilities, described in section 1, in good working order and condition. A reduction
in the level of services or facilities provided by the Park will be offset by a reduction in rents. Any
reduction in service will require the approval of the majority of residents (one vote per space) or the approval
of the Homeowner's Association.
20. NOTICE OF CHANGE IN RULES AND REGULATIONS: Park management shall, after having been provided by
Resident with at least 10 days prior written notice of the matter to be discussed, meet and consult with
Resident either individually or collectively on the following matters regarding general operations of the Park:
20.1 Amendments to the Park Community Guidelines, which are the rules and regulations attached
hereto.
20.2 Standards for maintenance and construction of physical improvements in the Park.
20.3 Additions, alterations or deletions of services, equipment and physical improvements.
20.4 Rental agreements of Leases offered per California Civil code section 798.17.
Any change in the Park Community Guidelines shall not be construed as a change in this Lease agreement.
Any such change in the Park Community Guidelines shall comply with the terms and conditions of the California
Civil Code as amended from time to time.
21. TRANSFER OF PARK'S 113ZREST: In the event Park transfers its interest in the Park or any portion
thereof, Park shall be automatically relieved of all obligations hereunder accruing after the date of such
transfer.. Such obligations under this lease shall be binding on the new owner pursuant to the laws of the
State of California.
22. GOVERNING LAW: This Lease agreement shall be governed by and construed pursuant to the laws of the
State of California.
23. AMENDMENTS: Any amendments to this Lease agreement shall be in writing, signed by the Park and the
Resident.
24. INOORPORATION OF RULES AND LAW: Park and Resident hereby acknowledge that the rules and regulations
"Community Guidelines" of this mobilehome park, as amended from time to time, are incorporated herein by this
reference. In addition, the contents of Sections 798 through 799.6 of the California Civil Code, as amended
from time to time, are incorporated in this Lease as though fully set forth. Should this Lease conflict with
the present or future provision of the California Civil Code sections known as the Mobilehome Residency Law,
those provisions of the California Civil Code shall prevail in the appropriate interpretation, and the balance
of this lease agreement shall remain in full force and effect.
25. AUTOMATIC RENEWAL OF THIS LEASE: UNLESS PARK NOTIFIES RESIDENT IN WRITING AT LEAST 120 DAYS IN
ADVANCE OF THE EXPIRATION OF THE INITIAL TERMS OF THIS LEASE, THIS LEASE WILL AUTOMATICALLY BE EXTENDED TO A
TERM OF AN ADDITIONAL 60 MONTHS. THIS IS AN "EXTENSION TERM".
THE AUTOMATIC RENEWAL OF THIS LEASE MAY CONTINUE FOR TWO (2) ADDITIONAL SUCCESSIVE 60 MONTH EXTENSION
TERMS UNTIL THIS LEASE HAS BEEN AUTOMATICALLY RENEWED FOR A PERIOD OF 180 MONTHS. THE ONLY EXCEPTION IS IF PARK
NOTIFIES RESIDENTS IN WRITING AT LEAST 120 DAYS IN ADVANCE OF THE BEGINNING OF ANY ONE OF THESE ADDITIONAL
EXTENSION TERMS THAT THIS LEASE IS NOT BEING EXTENDED. ALL OF THESE AUTOMATIC RENEWALS WILL BE ON THE SAME
TERMS AND CONDITIONS AS PRESENTLY FOUND IN THIS LEASE.
IF TWO THIRDS OF THESPACES WHO HAVE SIGNED THIS LEASE GIVE WRITTEN NOTICE THAT THEY DO NOT WANT THIS
LEASE AUTOMATICALLY RENEWED, THIS PROVISION WILL NOT BE APPLICABLE. THIS NOTICE MAY ONLY BE GIVEN BY RESIDENT
BETWEEN THE 120TH DAY AND THE 90TH DAY PRECEDING THE EFFECTIVE DATE OF EACH OF THE AUTOMATIC RENEWALS.
IF RESIDENT CONTINUES TO LIVE IN CREEKSIDE AFTER THE INITIAL TERM OF THE LEASE HAS EXPIRED (OR AFTER ANY
EXTENSION OF THE MTLAL TERM) THE TERMS OF THIS TENANCY, INCLUDING THE AMOUNT OF THE INITIAL RENT, UTILITIES,
PASS THHROUGHS, AND OTHER CHARGES RESIDENT WILL PAY PARK, WILL BE THE AMOUNT CURRENTLY BEING PAID AT THE END OF
THIS LEASE AS THEY MAY BE FURTHER ADJUSTED BY PARK ON WRITTEN NOTICE TO RESIDENT OR AN AMOUNT WHICH PARK IS
LEGALLY AUTHORIZED TO CHARGE.
THIS LEASE IS OFFERED TO RESIDENT FOR A PERIOD OF UP TO TEN YEARS WITH OPPORTUNITY FOR UP TO THREE(3)
ADDITIONAL 60 MONM EXTENSIONS. PARK AGREES TO CONTINUE TO OPERATE AS A MOBILE HOME PARK FOR THE TERM OF THE
LEASE PMS ANY EXTENSIONS THEREOF.
26. ACKNOWLEDGEMENT. Park and Resident agree that this Lease, together with matters incorporated herein,
contains the entire agreement between the parties relating to the lease of said space in this mobile home park,
and that this lease agreement may only be altered as allowed by law or herein above provided. This Lease
supercedes all prior and contemporaneous agreements, representations and understandings of Resident or the
Park. The Resident acknowledges that he or she has received copies of the California Civil Code Sections 798
through 799.6 and the Park rules and regulations which are called Community Guidelines which are referred to
above and incorporated by reference. The Resident further acknowledges that he or she has received a copy of
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(5) 06/88
_ r
this Lease Agreement and all attachments thereto and agrees to be bound by the terms set forth. Resident
further acknowledges that he or she has received a copy of San Luis Obispo City Rent Stabilization Ordinance and
has had an opportunity to read this ordinance before signing this Lease.
27. EKEKERT DOMAIN: The rights of Resident and Park shall be determined by the California Law of Eminent
Domain.
28. ZONING AND USE PERMIT INFORMATION: The nature of the zoning which the Park operates under is: R-2-S.
The Conditional Use or other permits required to operate the Park are not subject to expiration or renewal. The
land on which the Park is located is not leased from someone else.
29. RIGHT OF FIRST REFUSAL: In the event Park receives an offer to purchase which it intends to accept,
or intends to make an offer to sell the Park, then before accepting or making any such offer, the Park shall
first give to the Creekside Homeowners Association a right of first refusal. The Park shall give to the
Association a written notice describing the terms and conditions of the prospective sale. The Association may
elect within forty five (45) days thereafter to purchase the Park on the terms and conditions described. In the
event the Association fails to elect to purchase within the time provided, then the Park is free to sell the
park on the terms and conditions described so long as the sale takes place within eighteen (18) months. In the
event it does not, then a new notice must be given to the Association as provided above..
This first right of refusal is given. to the Association only, and is not granted to any individual
resident within the park. This right of first refusal does not apply to transfers to any member of Park owner's
family or to any entity in which the Park owner retains a controlling interest.
30. PARTIAL INVALIDITY: If any part of this Lease or any document referred to in this Lease is, in any
way, invalid or unenforceable, the remainder of this Lease or the other document shall not be affected, and will
be valid and enforceable to the fullest extent permitted by law. The same is true if the application of any
part of this Lease, or any document referred to in it is, in any way, invalid or unenforceable to any person or
circumstance.
31. DATE THIS LEASE BECOMES EFFECTIVE: If this lease is not accepted by two-thirds of the Spaces in
Creekside by August 1, 1988 (and these Leases are not canceled per Civil Code 798.17), Creekside will have the
option, in its sole discretion, not to be bound to this Lease. Creekside will have a reasonable period of time
after the deadline date to notify Resident whether Creekside has received the required number of Leases or has
elected to accept a lesser number.
32. EXECUTION:
This Lease is signed by you at o'clock _.m., on , l9
PLEASE MOTE: SECTION 25 OF THIS LEASE CONTAINS AN AUTOMATIC RENEWAL PROVISION.
Resident
Resident
Resident
Resident
NOTICE: IF YOU ARE THE PERSON(S) WHO ORIGINALLY SIGNED THIS LEASE, YOU MAY CANCEL THIS LEASE BY NOTIFYING PARK
IN WRITING WITHIN 72 HOURS OF THE TIM YOU SIGNED THIS LEASE. THIS WRITTEN NOTICE DOES NOT APPLY TO PERSONS TO
WHOM THIS LEASE IS ASSIGNED.
This Lease is signed by us on , 19
CREEKSIDE MOBILEHOME COMMUNITY
BY
Authorized Agent
(6) 06/88
t -
Yubalhumn Community
LEASE ACREEKENT
NAME OF RF.SLDEAI(S):
This lease is entered into as of the below date of execution by nod between Park as Lessor, and the Resident as
Lessee. For Purposes of clarity, the Lessor is referred to as Park and the Lessee as Resident. The California
Civil Code Section 798.17 authorizes this notice; this lease will be exempt from any ordinance, rule, regulation
or initiative measure adopted by any local government entity, which establishes n maximum amount that the Park
may charge Resident for rent.
1. DESCRIPTION OF THE. PREMISES AND, FACILITIES: Park leases to the Resident and Resident hires from Park
the space indicated above within above mobile home park which is to be used as a residence by Resident and for
no other purpose. Park is responsible for providing and maintaining the existing services and physical
improvements in good working order and condition. The following is a description of the physical facilities,
which we will continue to provide:
A. Recreation building: features include meeting room, kitchen, card room (pinus pong) and pool room,
including furniture and equipment.
B. Heated swimming pool and Jacuzzi, including furniture.
C. Common Areas: includes streets, guest parking, street lights, park area and lawn areas.
D. Laundry Facilities.
In addition, Resident shall have the right to use common area facilities including swimming pool ,
clubhouse and laundry facilities, at reasonable hours as may be posted at the facill.ty. Also, subject tr
availability, the Park provides storage facility In the Pnrk for Residents. Use of this storage area le
governed by a separate agreement and fees for such use are not included in space rent.
2. TERM: The term of this lease shall be for the number of months indicated in the space provided below,
commencing on the first day of January 1988 and ending not later than the 31 Stday of _DECEMBER 19-j
unless extended under the AUTOMATIC RENEWAL PROVISIONS in Paragraph 7.5 of this lease.
Initial Term Resident Initial
60 months _
120 months
The Lease Anniversary Date will be JANUARY _1st ,of each year during the term of this Lease, lnciudiu,
any extensions per paragraph 25. Beginning on Resident's 1999 Lease Anniversary Date, the then current ren
will be adjusted each year based on increases or decreases in the Consumer Price Index .and the pass through
noted in paragraphs 4 through 8 below.
3. RUT: Resident shall pay to Park $ 2.07. 37_ Per calendar month as the new base rent. The ren
shall be payable in advance on the first day of each calendar month commencing cin the first day o
MAY , 19 88 . All rent shall be paid at the office located within the Park without any offset o
deduction whatsoever.. Should the rent not be paid by the 5th day of the month, a late charge of $10.00 may b
charged to cover Park's costs for additional accounting, office and collection. expens-±s. Additionally,
handling charge of $5.00 may be required for all checks returned by the bank due to insu:fficient funds in th
Resident's account or for any other reason. This provision shall not be construed as it waiver by the Par
should the Park fail to enforce any provision hereof after any default on the part of the Resident.
Furthermore, the acceptance of payments shall not constitute a waiver of any breaclu of rule, regulatlo
or any covenant of this Lease agreement or Park regulations, nor shall such acceptance affe-:t any notice, deman
or suit hereunder, where the Resident is already in default.
It is the intent of this Lease to provide a formula that allows rents to maintain it level that keeps u
with inflation without putting undue financial burden on the Resident. Should rent be Itu:rcased in excess o
the percentage increase of the Social Security Cost of Living Adjustment (COLA) benefits, P.3rk will at its sol
option, upon individual application by those persons receiving Social Security benefits anti eligible for Sectio
8 Rental Assistance on a case by case basis, extend hardship consideration based upon evide:nt:e of such need.
4. ADJUSM ENT OF RF11T BY CONSUMER PRICE INDEX: The then current rent will be adjusted each year on th
Lease Anniversary date based upon 100% of the Consumer Price Index (CFI) Increase from 016 to 5% and 75% of th
increase in the CPI for that increase over 5e. For example, if the CPI increased 7%, the increase to be use
�- for the rent adjustment would only be 6.5'x. The CPI which shall be used is the one publlsht,.d by the Bureau o
Labor Statistics, All Urban Consumers, Los Angeles, Anaheim ar,d Riverside (1967-100).
On the Lease Anniversary dates for 1989, 1990, 1991 and 1992, there will be an additional rent
adjustment. This adjustment will be equal to 2% of the rent In effect for Resident on .January 1, 1988. For
example, if the rent in effect for January 1, 1988, was $700.00 and the CPI increase applicable to the 1985
Lease. Anniversary adjustment was 7%, this portion of Resident's rent adjustment would be computed as follows:
Since the CPI had increased by more than 5%, only 750 of the excess 7e can be used. This means that the CPI
adjustment would be 6.5'6 times the $200.00 rent for n total of 5713.00. To this amount would be added S4.00
which is the January 1, 1988, S200.00 rent multiplied by 2'L,. Mien the 1990 rent ndjustment was calculated, the
extra 2% would continue to be multiplied by S200.00, not the then-current rent of 5217.00.
Should the CPI (not including the additional 2% factor) adjustment allowed under this section exceed 8%,
the full increase will be permitted so long as the percentage of increase above 6% does not exceed the
percentage increase of the Cost of Living Adjustment (COLA) for Social Security benefits during the most recent
COLA period. In other words, if the CPI rent adjustment allowed by this section were 10% and the most recent
increase in COLA were 8 1/216 the maximum rent increase would be R LM plus, if applicable, the additional 2%.
Decreases in the CPI will result in rent decreases using the same formula for rent increases provided in
this section.
The percentage increase or decrease in the CPI will lie calculated by comparing the most recent month of
August with the CPI for the August of the previous year. If the Index is discounted or revised during the term
of this Agreement, such other governmental indices or computations with which It is replaced shall be used in
order to obtain substantially the same result as would be obtaLncd Lr the index had not been discounted or
revised.
5. ADJUSTMENT OF RENT FOR REAL PROPERTY TAXES: The rent shall also be adjusted on each Lease Anniversary
date based on the increase or decrease in the. Park's property taxes. To determine if property taxes have
increased, the most recent property tax bill actually received by Lessor will be used (i.e., It will be compared
with the property tax bill for the immediately preceding property tax year to determine if property taxes have
increased from one property tax year to the other.) If the cost of property taxes increases or decreases by an
amount equal to or less than the actual percentage increase or decrease in the CPI, which is designated in
paragraph 4 above, no amount will be added to the current rent. This adjustment shall be prorated equally to
each space. For example, if real property taxes increase. by S200.00 in excess of the amount allowed by the
above CPI limitation, and if there are 200 spaces in the Park, each space would be charged S1.00 additional rent
for the following Lease year.
Property taxes are defined as all general and special real estate taxes; personal property taxes, bonds,
fees charges and surcharges and assessments or other charges made in lieu of real property taxes (whether
actually paid or'unpaid at the time of the rent increase) levied upon or payable In connection with the land,
fixtures and improvements constituting the mobilehome. Park. 11iey also Include any tax or excise on rents or any
other tax, however it may be described, which is levied or assessed against the Park as direct substitution, in
whole .or in part, for any real property taxes.
6. ADJUSTMENT OF RENT FOR GOVERNMENT SERVICES AND IMPROVEMENTS: Resident's rent will also he increased or
decreased because of increases or decreases in existing, the requirement for new or changed, improvements,
services or fees charged to the Park or required by government bodies or others_ Examples of such Items arc
common area utilities,• fire protection, paramedic services and other services and new or changed services or
improvements. Increase or decreases under this section will be hilled separately as additional rent on your
monthly rent statement so that the CPI increases in paragraph 4 herein do not apply. Any added cost incurred by
the Park for improvements shall be reimbursed by the Resident to the Park on a prorated basis or equal
allocation for each space as provided under uninsured losses in paragraphs 7(a) and '7(b). If the cost of
government services and improvements increases or decreases by an amount equal to or less than the actual
percentage increase in the CPI referred to in paragraph 4 above, then no amount will be added to or subtracted
from the rent.
7. ADJUSTMENT OF RENT FOR UNINSURED LOSSES: the Park may increase rent in addition to other adjustments
to rent provided herein, provided it has suffered a property loss not actually compensated by insurance. Any
increase in rent based on uninsured losses shall be calculated as follows:
(a) The uninsured lees shall be spread over a number of yenra based on the amount of the lass. IIIc
number of years shall be computed in accordance with the following schedule:
UNINSURED LOSS YEARS
0 -S 5,000 2
0 - 10,000 l
0 - 25,000 5
0 - 50,000 8
0 - 75,000 10
575,000 and over 15
(b) the uninsured loss shall be divided by the number of years in the schedule set forth above and the
quotient of that computation shall be divided by the total number of spaces In the Park, which quotient shall in
turn be divided by 12, and the total shall reflect the dollar increase in the monthly rent payment..
(c) The rminsured loss is defined as the total restored to "as new condi.tLon" repair or replacement of
any property 10:3s for which the Park is not actually compensated by insurance. In addition, if the Park
finances repair and replacement of such uninsured losses, the cost of financing shall also be considered an
"uninsured loss. "
(2) _��
(d) the "uninsured loss" provisions shall be applicable,only to those losses not covered in paragraph (e)
below or for which there is no insurance available to the Park at competitive prices from companies rated A-% nr
better authorized to do business in the State of California and listed in the most recent edition of Best Key
Rating Gude to Insurance.
(e) Park will maintain subject to availability as provided in paragraph (d) above the following insurance
coverage for the benefit of Creekside:
Basic Park Package:
*Broad form and Comprehensive Ceneral I,hability.
*Property Coverage--All Risk/Replacement Cost excluding flood and earthquake.
*Flood and Earthquake (DIC). Difference in Conditions Policy including earthquake and flood with
$1,000,000 stop loss limit on property and loss of rents.
The property coverage will be maintained at current replacement values used for the Parks 1987 Insurance
policies as adjusted for inflation by the frill amount of the CPI. Park will be responsible for the first 51, or
$20,000, whichever is less, of each uninsured loss,
(f) Increases under this section will he billed separately ns additional rent on your monthly rent
statement, so that the CPI increases in paragraph 4 Herein do not apply. Dice the cost of an uninsured loss has
been completely recovered from Resident by payment or increased rents, the additional rent charged for that
uninsured loss will be discontinued. Uninsured losses are not subject to prior approval by Resident(s).
(g) An example of the computation or uninsured losses is as follows:
Uninsured Loss Example
Assume a flood occurred during the year. If it cost the Pnrk 531,750.00, including financing, to remove
mud and rocks. from streets the cost to be passed through to the Residents would be calculated as follows:
$31,750.00 less (5%) 51,750 = $30,000.00
530,000.00 divided by 8 years = $3,750,00
53,750.00 divided by 300 spaces - 512.50
$12.50'divided by 12 months = 51.04 per space (monthly share of repair cost) for 8 years
8. CAPITAL IMPROVEMENTS ADJUSTMENT: Rent may be increased for any capital improvements made by Park, it
made in accordance with this paragraph. The term "capital improvements" is defined to include all items whicl
the Park reports or treats for State or Federal income tax purposes as a capitalized expense. 111e total
effective cost to Park for capital improvements will be verified by a statement from Park's accountant that
these are the total costs. The "cost" of capital improvements shall consist of the actual cost of rhe
Improvement , including legal and engineering fees related to said improvements, plus all interest, points, ane
other costs and charges relating to the borrowing of nny sums by Park to make such capital improvements. Al'
capital improvement costs over $10,000.00 shall be subject to .a majority vote of Residents (one vote per space
who have signed this Lease. Charges to Residents shall be made equally to Residents in accordance witl
assignment or rent provided in Paragraphs 7(a) and 7 (b).
Improvements required by government under paragraph 6 of this Lease will not be subject to a vote.
Park agrees that rehabilitation and preservation of -streets and driveways will occur within in two year
of the original date of this Lease. Park further agrees to redecorate the clubhouse. The costs of such one
time rehabilitation and redecorating will be paid by Park and will not be passed through to Residents.
9. UTILIIIES AND OTHER CIUIRGES: Utilities and other charges are additional rent. Resident shall pa
utility charges at the prevailing rates set by the serving utility companies which the Park is authorized t
charge Residents for the following utilities: natural gas and electricity. Water will be included in the bas
rent for a maximum monthly allowance of 800 cubic feet. Resident will pay monthly the prevailing rates for Al
water used in excess of 800 cubic feet. In addition, Park shall furnish the following utilities and othe
services as part of the base rent: sewer and trash disposal. Resident shall pay the Park directly for cabl
television: the charge shall not exceed the residential consumer charges of the "servicing" cable company i
the San Luis Obispo area.
10. RESIDENT'S OPTION TO IERMIRM. LEASE: This lease and Resident's tenancy may be terminated at th
option of the Resident on 60 days written notice providing the Resident moves from the Park, either by resale o
removal of mobilehome from Park.
11., USE PROHIBITED: Resident shall not permit the leased premises or any part thereof to be used for an
purpose than as a residence for the person listed above. No other person may reside at the premises without th
Park's prior written permission. Such permission shall not be reasonably withheld. Guests are permitted unde
the terms of the Community Guidelines and the Mobilehome Residency Law.
( 3 )
1,1e
12. GUIDELINES AND PARK RMULAT10NS: Wring the term of this lease, Resident shall comply with all the
Park "Community Guidelines", a copy of which is attached hereto and by this reference made a part hereof, which
may be changed from time to time pursuant to the terms of Section 798.25 of the California Civil Code.
13. MAINTENANCE OF T11E iKMESITE PREMISES: The Park mny chnrpe a reasonable fee for services relating to
the maintenance of the land and premises upon which the mobilehome Is situated in the event that Resident fails
to maintain such land or premises in accordance with the rules and regulations of the Park. Park may levy
charges for failure to maintain the premises only after Park has notified the Resident In writing of such
failure and Resident has not complied within 14 days. the written notice shall state the specific condition to
be corrected and an estimate of the charges to be Imposed if the Resident does not correct the condition and the
Park or its agents perform this service.
14. ABANDONMENT PROHIRITEU: Resident shall lint vacate or abandon to premises at any time during the term
hereof. if Resident shall abandon, vacate or surrender their premises, any personal property belonging to
Resident left on the premises shall be deemed to be abandoned at the option of Park.
15. PARK'S RIGHT OF ENTRY: Resident shall permit Park and the agents and employees of Park to enter into
and upon the leased premises (space only) at all reasonable times for the purpose of inspecting the same and
for the purpose of posting notices of non-responsibility for alterations, additions or repairs without :any
rebate of rent and without any liability to Resident for loss of quiet enjoyment. Ilie Park or Its agent may
enter a mobilehome without prior written consent in case of abandonment of the mobilehome or an emergency.
16. ATTORNEY'S FEES AND COURT C0STS: If any action at law or equity shall be brought to recover any
rent, utility fees or other charges due under this lease or on account of any breach of, or to enforce or
interpret any of the covenants, terms or conditions of this lease or the rules attached hereto or for the
recovery of possession of the leased premises, the prevailing parties shall be entitled to recover from the
other party as part of the prevailing party's costs, reasonable attorney's fees and costs, the amount of which
shall be fixed by the court and made a part of any judgment or decree rendered.
17. WAIVER: The waiver by Park of the failure of Park to take action in any respect by any breach of any
term, covenant or condition herein contained, shall not be deemed to be a waiver of such term, covenant or
condition or subsequent breach of same, or any other term, covenant or condition herein contained. Thr
subsequent acceptance of rent by Park shall not be deemed to be a waiver of any proceeding by Resident of any
term, covenant or condition of this lease other than the failure of Resident to pay the particular rent so
accepted, regardless of Park's knowledge of such proceeding breach at the time of accepting such rent.
18. ASSIGNMENT AND SUBLETTING: Resident shall have neither the right nor power to sublet the leased
premises, or any portion thereof, or any mobLlehome located thereon and any such subleasing shall be void.
Resident shall assign the lease to buyer or other transferee of Resident's mobilehome subject to approval by
Park. Such approval may be withheld if the Park is notified in advance of proposed assignment and approval lir
disapproval shall he governed by Civil Code Sections 798.73 and 798.74. Further, any and all buyers/transferees
of the mobilehome shall execute this lease and, failing to do so, shall have no rights of tenancy.
Because the beginning rent in this lease to existlnp Residents is below reasonable market levels, Park.
may increase rents upon the sale or other transfer of the mobilehome or subletting, should subletting ever
become allowed, to a level which reflects a more reasonable value of the space, services and amenities the Park
provides. Therefore, the New Lease Rent at the commencement of this Lease is $2 .33 per month. Such
adjustment shall occur upon the first resale or transfer of ownership of the mobilehome. This will occur only
once during the initial term of this lease. The New Lease Rent under this section will be adjusted each year
under the terms of paragraph 4 through 8 and other provisions of this Lease. Rentsmay be raised a maximum of
once during any "extension term" to a level which does not exceed reasonable market rents for the San Luis
Obispo area. The minimum reasonable market rents will be tite New Lease Rent as adjusted annually under the
terms of this Lease. Iransfers to spouses, children, parents or the purchase by Resident of another mobilehome
in Creekside, which is to be used as their primary residence are exempt from such increase.
19. RESPONSIBILITY OF PARK: The Park shall have the responsibility to provide and maintain the physics,
improvements in the common facilities, described in paragraph 1, In good working order and condition. A
reduction in the level of services or facilities provided by the Park will be offset by a reduction in rents.
20. NOTICE OF CIIANCE 1N RULES AND REGULATIONS: Park management shall, after having been provided by
Resident with at least 10 days prior written notice of the matter to be discussed, meet and consult with
Resident either individually or collectively on the following matters regarding general operations of the Park:
20.1 Amendments to the Park Community Guidelines, which are the rules and regulations attached
hereto.
20.2 Standards for maintenance and construction of physical improvements in the Park.
20.3 Additions, alterations or deletions of services, equipment and physical improvements.
20.4 Rental agreements of Leases offered per California Civil code section 798.17.
Any change in the Park Community Guidelines shall not be construed as a change in this Lease agreement.
Any such change in the Park Community Guidelines shall comply with the terms and conditions of the California
Civil Code as amended from time to time.
21. TRANSFER OF PARK'S ]W=SI: In the event Park transfers Its interest in the Park or any portion
thereof, Park shall be automatically relieved of all ohli¢,ations hereunder accruing after the date of such
transfer. Such obligations under this lease shall be assumed by the new owner pursuant to the laws of tho
State of California.
22. GOVERNING LAW: This lease agreement shall be governed by and construed pursuant to the laws, of the
State of California.
23. AMENDMENTS: Any amendments to this Lease agreement shall be in writing, signed by the Park and the
Resident.
24. INCORPORATION OF RULES AND LAW: Park and Resident hereby acknowledge that the rules and regulations
"Community Guidelines" of this mobilehome park, as amended from time to time, are incorporated herein by this
reference. In addition, the contents of Sections 798 through 799.6 of the. California Civil Code, as amended
from time to time, are Incorporated in this Lease is though fully set forth. Should this Lease conflict witl
the present or future provision of the California Civil Coda sections known as the hob Llehome Residency I_iw,
those provisions of the California Civil Code shall prevnll in the appropriate interpretation, and the balance
of this lease agreement shall remain in full force and effect.
25. AUTOMATIC RENEWAL OF TII1S LEASE: UNLESS PARK N(YrIFIES RESI-DENT IN WRITING AT LEAST 120 IN ADVANCE Of
THE EXPIRATION OF THE INITIAL TERMS OF THIS LEASE, THIS LEASE WILL AUTOMATICALLY .BE EXTENDED TO A TERM OF Al,
ADDITIONAL 60 MONTHS. THIS 1S AN "EXTENSION TERI111.
THE AUTOMATIC RENEWAL OF THIS LEASE MAY CONTINUE FOR IWO (2) ADDITIONAL SUCCESSIVE 60 MONT11 EXTF.NSIOt
TERMS UNTIL TIIIS IEASE HAS BEEN AUTOMATICALLY RENEWED FOR A PERIOD OF ISO MONTHS. THE ONLY EXCEPTION IS IF PARE
NOTIFIES RESIDENTS IN WRIIING AT LEAST 17.0 DAYS IN ADVANCE OF TIT? BEGINNING OF ANY ONE OF THESE ADDITIONAI
EXTFASION TERMS THAT ALIS LEASE IS NOT BEING EXTENDED. ALL OF TIIESE AUTOMATIC RENEWALS WILL BE ON n1E SAME
TERMS AND CONDITIONS AS PRESENTLY FOUND IN THIS LEASE.
IF TWO THIRDS OF THE SPACES W110 HAVE SIGNED THIS LEASE GIVE WRITTEN NOTICE. TEAT THEY DO NOT WANT Till;
LEASE AUTOMATICALLY RENEWED, IIIIS PROVISION WILL NOT BE APPLICARLF. TMS NOTICE MAY ONLY BE GIVEN BY RESIDEN-
BETWEEN THE 120TII DAY AND THE 901711 DAY PRECEDING THE EFFECTIVE DATE. OF MACH OF THE AUTOMATIC RENEWALS.
IF RESIDENT CONTINUES TO LIVE IN CREEKSIDE AFTER THE INITIAL TERM OF THE LEASE HAS EXPIRED (OR AFTER AN'
EXTENSION OF 731E INITIAL TERM) THE TERMS OF THIS TENANCY, INCLUDING THE AMOUNT OF TILE INITIAL RENT, UTILITIES
PASS THROUGHS, AND OT1fER CIARGES RESIDENT WILL PAY PARK, WILL 13E 711E AMOUNT CURRENTLY BEING PAID AT TlIE END 0
THIS LEASE AS THEY MAY BE FURIIIER ADJUSTED BY PARK ON WRITTEN NOTICE. TO RESIDENT OR AN AMOUNT W111CN PARK 1
LEGALLY AUTIlORIZED TO CHARGE.
THIS LEASE IS OFFERED TO RESIDENT FOR A PERIOD OF IIP TO TEN YEARS WITH OPPORTUNITY FOR UP TO THREW
ADDITIONAL 60 MOfMl EXTENSIONS. PARK AGREES TO CONTINUE TO OPERATE AS A MOBILE HOME PARK FOR THE TERM OF 711
LEASE PWS ANY EXTENSIONS THEREOF.
26. ACKNOWLEDGEMENT: Park and Resident agree that this Tense, together with matters incorporated herein
contains the entire agreement between the parties relating to the lease of said space in this mobile home park
and that this lease agreement may only be altered as allowed by law or herein above provided. This Leas
supersedes all prior and contemporaneous agreements., representations and understandings of Resident or -th
Park. The Resident acknowledges that he or she has received copies of the California Civil Code Sections 79
through 799.6 and the Park rules and regulations which are called Community Guidelines which are referred t
above and incorporated by reference. The Resident further acknowledges that he or she has received a copy o
this Lease Agreement and all attachments thereto and ngree.s to be bound by the terms set forth. Residen
further acknowledges that he or she has received a copy of San Luis Obispo Civil Code, Chapter 5.44, and has ha
an opportunity to read this ordinance before signing this Lease.
27. CONDEMNATION: If any portion of this Park is taken under the power of eminent domain, or is sold t
any authority having power of eminent domain, either under threat of condemnation or while condemnatie
proceedings are pending, Park will have the right to terminate this Lease as of the date the condemnin
authority takes possession. Resident will be entitled to airy amount paid by the condemning authority for til
loss of or damage to Resident's mobilehome or other removable personal property. All other amounts paid
including any which might be payable to Resident because of the existence of .this lease, will belong to th
Park.
28. ZONING AND USE PERMIT INFORMATION: The nature of the zoning which the Park operates under is: R-2-5
The Conditional Use or other permits required to operate the Park are not subject to expiration or renewal. Th
land on which the Park is located is not leased from someone else.
29. PARTIAL INVALIDITY: If any part of this ],ease or any document referred to in this Lease is, in ar
way, invalid or unenforceable, the remainder of this lease or the other document shall not be affected, and wil
be valid and enforceable to the .fullest extent permitted by law. The same is true if the application of an
part of this Lease, or any document referred to in it Is, in any way, invalid or unenforceable to any person c
circumstance.
30. DATE THIS LEASE nECDMF.S EFFECTIVE: If this Lease Is not accepted by two-thirds of the Spaces 1
Creekside by May 1, 1988 (and these Lyases nre not canceled per Civil Code 798.17), Creekside will have th
option, in its sole discretion, not to be bound to this Iziase. Creekslde will have a reasonnble period of tlm
after the deadline date to notify Resident whether Creckside has received the required number of leases or ha
elected to accept a.lesser number.
31. EXECUTION:
This Lease is signed by you at o'clock m., on 19
PLEASE NOTE: PARAGRAPH 25 OF THIS LEASE CONTAINS AN AUTOMATIC RFNFWAI, PROVISION.
Resident
Resident
Resident
Resident
NOTICE: IF YOU ARE 171E PERSON(S) MIO ORIGINALLY SIGNED THIS LEASE, YOU MAY CANCEL MIS LEASE BY NOTIFYING PARI
IN WRITING WITHIN 72 HOURS OF THE TIME YOU SIGNED THIS LEASE. THIS WRITTEN NOTICE DOES NOT APPLY TO PERSONS Tt
WHOM THIS LEASE IS ASSIGNED.
This Lease is signed by us on I9
CREEKSIDE MOBILEHOME COMMUNIIY
BY
Authorized Agent
(6 )
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