Loading...
HomeMy WebLinkAbout0923E ORDINANCE NO. 923 (1982 Series) ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ADDING CHAPTER 8 TO ARTICLE IV OF THE SAN LUIS OBISPO MUNICIPAL CODE TO ESTABLISH A MOBILEHOME PARK RENT STABILIZATION SYSTEM. BE IT ORDAINED by the Council of the City of San Luis Obispo, as follows: SECTION 1. Chapter .8 is hereby added to Article IV of the San Luis t Obispo Municipal Code, to read as follows: "Section 4800. Purpose and Intent. (a) There is presently within the City of San Luis Obispo and the surrounding areas a shortage of spaces for the location of mobile - homes. Because of this shortage, there is a very low vacancy rate, and rents have been for several years, and are presently, rising rapidly and causing concern among a substantial number of San Luis Obispo residents. (b) Mobilehome tenants, forced by the lack of suitable alternative housing, have had to pay the rent increases and thereby suffer a further reduction in their standard of living. (c) Because of the high cost and impracticability of moving mobilehomes, the potential for damage resulting therefrom, the requirements relating to the installation of mobilehomes, in- cluding permits, landscaping and site preparation, the lack of alternative homesites for mobilehome residents, and the substantial investment of mobilehome owners in such homes, this Council finds Page 1 of 13 0 923 ORDINANCE NO. 923 (1982 Series) and declares it necessary to protect the owners and occupiers of mobilehomes from unreasonable rent increases, while at the same time recognizing the need of park owners to receive a suitable profit on their property with rental income sufficient to cover increases in the costs of repair, maintenance, insurance, utilities, employee services, additional amenities, and other costs of operation, and to receive a fair return on their property. (d) This Council finds that the present low vacancy rate and frequent rent increases are particularly hard upon and unfair to residents of mobilehome parks within the City. Large numbers of these residents are senior citizens and others on fixed incomes who installed their mobilehomes in the City when the present inflationary rent increases could not reasonably have been foreseen. (e) However, this Council recognizes that a rent stabilization ordinance must be fair and equitable for all parties and must provide appropriate incentives for mobilehome park operators to con- tinue their parks profitably, as well as to attract additional investors for new parks. Section 4801. Definitions. For the Purpose of this chapter certain words and phrases used herein are defined as follows: (a) "Mobilehome Park Rent Review Board" or "Board" The Mobilehome Park Rent Review Board established by this Chapter. Page 2 of 13 ORDINANCE NO. 923 (1982 Series) (b) "Capital Improvements." Those improvements 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 in accordance with the Internal Revenue Code and regulations issued pursuant thereto; provided that this definition shall be limited to capital improvements either approved by more than 50% of the tenants in the affected park or constructed to comply with the direction of a public agency. (c) "Mobilehome Park." An area of land which rents spaces for mobile - home dwelling units. (d) "Mobilehome Park Owner" or "Owner." The owner, lessor, operator, or manager of a mobilehome pazk. (e) "Mobilehome Tenant" or "Tenant." Any person entitled to occupy a mobilehome within a mobilehome park pursuant to ownership of the mobile- home or under a rental or lease agreement with the owner of the mobilehome. (f) "Rehabilitation Work." Any renovation or repair work completed on or in a mobilehome park performed in order to comply with the direction or order of a public agency, or to repair damage resulting from fire, earth- quake or other casualty. (g) "Space Rent." The consideration, including any security deposits, bonuses, benefits, or gratuities, demanded or received in connection with the use and occupancy of a mobilehome space-in a mobilehome park, or for housing services provided, but exclusive of any amount paid for the use of a mobilehome dwelling unit. Page 3 of 13 ORDINANCE NO. 923 (1982 Series) Section 4802. Exemptions. The provisions of this Chapter shall not apply to the following tenancies in mobilehome parks: (a) Mobilehome park spaces rented for non- residential uses. (b) Mobilehome parks managed or operated by the United States Government, the State of California, or the County of San Luis Obispo. (c.) Tenancies which do not exceed an occupancy of twenty (20) days and which do not contemplate an occupancy of more than twenty (20) days. (d) Tenancies for which any Federal or State law or regulation specifically prohibits rent regulation. (e) Tenancies covered by leases or contracts which provide for more than a month -to -month tenancy, 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. (f) Mobilehome parks which sell lots for factory -built or manufactured housing, or which provide condominium ownership of such lots, even if one or more homes in the development are rented or leased out. Section 4803. Mobilehome Rent Review Board. (a) There is hereby established a Mobilehome Rent Review Board con- sisting of three (3) members who, along with their alternates shall be appointed by and serve at the pleasure of the City Council. Page 4 of 13 r ORDINANCE NO. 923 (1982 Series) (b) The City Council shall appoint three (3) regular members and two (2) alternate members to serve in the absence of regular members. The City Clerk shall select by lot the alternate member to so serve in the absence of-one regular member. (c) The Board members and the alternates shall be persons who are not connected with the real estate or rental housing industry for their personal gain. None of said members or alternates shall be tenants of or have any financial interest (as defined by State law) in any mobile - home or mobilehome park. The members and alternates shall file a declaration to this effect with the City Clerk in a form approved by the City Attorney. (d) Board members and alternates shall not be compensated for their services as such, but may receive reimbursements as provided by the City Council for traveling and other expenses incurred while on official duty. (e) Terms of Board members and alternates shall be two (2) years. Terms of the first three members and alternates shall expire on June 30, 1984, irrespective of date of appointment. Terms shall expire there- after on June 30 of even numbered years. Section 4804. Powers and Duties of the Board. Within the limitations provided by law, the Board shall have the following powers and duties: (a) To meet from time to time as required by the City Council and to utilize the City offices, facilities and personnel as needed. Page 5 of 13 ORDINANCE NO. 923 (1982 Series) (b) To receive, investigate, hold hearings on, and pass upon the issues relating to mobilehome park rent stabilization as set forth in this Chapter, or to any decreases in, or charges for, services or facilities. (c) To make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary to carry out its duties. (d) To increase or decrease maximum rents upon completion of its hearings and investigations. (e) To render following every rent review hearing a written report to the City Council concerning its activities, holdings, actions, results of hearings, and all other matters pertinent to this Chapter which may be of interest to the Council. (f) To adopt, promulgate, amend and rescind administrative rules, as it deems appropriate to effectuate the purposes and policies of this Chapter. Section 4805. Determination of Base Rent and Allowable Increases. (a) The base spate rent-for purposes of this ^Chaptek. shallc.be the monthly space rent charged as of March 15, 1982. (b) Except as otherwise provided in this Chapter, the maximum monthly space rent may be increased no more than once a year by the lesser of the two following amounts: Page 6 of 13 ORDINANCE NO. 923 (1982 Series) (1) Eight percent (8%) of the then existing space rent; (2) An increase over the then existing space rent equal to three - fourths (75 %) of the cost of living increase (Bureau of Labor Statistics, U.S. National Consumer Price Index) for the preceding 12 month period. (c) Calculation of the one year limitation on rental increases as provided herein shall be from the date the last increase became effective at the park. (d) No owner shall either (1) demand, accept or retain a rent of or from a tenant in excess of the maximum rent permitted by this Chapter or (2) effect a prohibited rent increase by a reduction of general park facilities and services. Section 4806. Hardship Exception; Application. (a) An owner who has been required to make expenditures or has incurred costs of such amounts that he will be unable to make a just and reasonable return on his property given the maximum increase permitted by Section 4805 above, may file with the Board an application for a rent increase for one or more spaces or application to reduce, or charge for; certain services or facilities, in either event referred to hereinafter as '.'application" or "application for rent increase." (b) An application for a rent increase pursuant to this Section shall be accompanied by the payment of a fee of $300.00. The application shall specify, as applicable, the address of the mobilehome park, the space number or numbers for which rent is requested to be increased, the amount of the Page 7 of 13 ORDINANCE NO. 923 (1982 Series) requested rent increase:or service or facilities reduction or charges, the proposed effective date of such increase, reduction or charge and the facts supporting the application. The applicant shall produce at the request of the Board any records, receipts, reports, or other documents that the Board may deem necessary for the Board to make a determination whether to approve:--.the-application. (c) The owner shall serve each affected tenant, either personally, or by mail, with notice of the rent increase or change in services or -facilities requested and with notice that application for approval of same is being filed with the Board. Proof of such service shall be filed with the Board concurrent with the filing of the application. Copies of the application shall be available free of charge'to,ariy affected tenants.requesting same at the business office in the affected park. (d) The Board shall set a hearing on the application complying with the requirements of this Section no less than ten (10) days and no more than thirty (30) days after receipt of the application and proof of service. The Board shall notify the owner and tenants, in writing, of the time, place and date set for the hearing. No hearing or any part thereof may be continued beyond thirty (30) days after the initial hearing date, without the owner's consent. If the Board approves an application as requested,or as modified, the same shall take effect as noticed by the owner or as the Board may otherwise direct. Section 4807. Conduct of the Hearing. (a) All review hearings conducted by the Board shall be conducted in accordance with the Ralph M. Brown Act, at Section 54950 et seq. of the California Government Code. Page 8 of 13 ORDINANCE NO. 923 (1982 Series) (b) All interested parties to a hearing may have assistance from an attorney or such other person as may be designated by said parties in presenting evidence or in setting forth by argument their position. All witnesses shall be sworn in and all testimony shall be under penalty of perjury. (c) In the event that either the owner or the tenant(s) should fail to appear at the hearing at the specified time and place, the Board may hear and review such evidence as may be presented and make such decisions as if all parties had been present. (d) Applicant and affected tenants may offer any testimony, documents, written declarations,or other relevant evidence. (e) Formal rules of evidence shall not apply. (f) Minutes shall be taken at all review hearings. Section 4808. Standards of Review. In evaluating the application the Board may consider, along with all other factors it considers relevant, changes in costs to the owner attributable to increases or decreases in master land and /or faci- lities lease rent, utility rates, property taxes, insurance, advertising; variable mortgage interest rates, employee costs, normal repair and main- tenance, and other considerations, including, but not limitied to, rehabi- litation work, capital improvements, upgrading and addition of ammenities or services, net operating income, and the level of rent necessary to per - 1_-_mit a just and reasonable return on the owner.: -s property. Page 9 of 13 C ORDINANCE NO. 923 (1982 Series) Section 4809. Decision of the Board. (a) The Board shall make a final decision no later than twenty (20) days after the conclusion of its hearing. The Board's decision shall be based on the preponderance of the evidence submitted at the hearing. The decision shall be based on findings. All parties to the hearing shall be advised by mail of the Board's decision and findings. (b) Pursuant to its findings, the Board may the (1) permit / requested rent increase to become effective, in whole or in part, or the (2) deny,/ requested rent increase, or (3) permit or deny, in whole or in part, requested reductions, of or charges for, fac:i-lit,ies_ or services. (c) Any decision of the Board shall be final unless, within fifteen (15) days after mailing of the decision and findings the owner or any affected tenant appeals the decision to the Council. Section 4810. Appeals. (a) Any appeal from a decision of the Board shall be filed with the 'City Clerk. The date for consideration of the appeal shall be set by the City Clerk no less than ten (10) days nor more than thirty (30) days after the expiration date for filing of an appeal. Notice of the date, time, and place shall be given by the City Clerk to the owner and all affected tenants. (b) At the time set for consideration of the appeal the Council shall review and consider the record of the Board hearing and the decision and finding of the Board. After review and consideration the Council may either (1) determine that a further hearing shall be held, to be conducted Page 10 of 13 ORDINANCE NO. 923 (1982 Series) before the Council no later than the next regular meeting or (2) ratify and adopt the decision and findings of the Board. If a further hearing is conducted, the council may upon conclusion of that hearing, and in no event more than thirty (30) days thereafter, modify or reverse the decision of the Board, and shall make findings in support thereof. Section 4811. Tenant',s Right of Refusal. A tenant may refuse to pay any increase in rent not made in conformity with this Chapter. Such refusal to pay shall be a defense in any action brought to recover possession of a mobilehome space or to collect the rent increase. Section 4812. Retaliatory Eviction. Notwithstanding Section 4811 above, in any action brought to recover pos- session of a mobilehome space, the court may consider as grounds for denial any violation of any provision of this Chapter. Further, the determination that the action was brought in retaliation for the exercise of any rights conferred by this Chapter shall be grounds for denial. Section 4813. Owner to Provide Copy of this Chapter. Any tenant offered a lease or contract which if accepted and fully executed would be exempt from the provisions of this Chapter '(Section 4802(e)) shall at the time of the offer also be provided with a copy of this Chapter. Page 11 of 13 ORDINANCE NO. 923 (1982 Series) Section 481+. Severability. If any provision or clause of this Chapter or the application thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by a final judgment of any court of com- petent jurisdiction, such invalidity shall not affect other provisions or clauses or applications thereof which can be implemented without the invalid provisions or clause or application, and to this end, the pro- visions and clauses of this Chapter are declared to be severable. Section 4815. Expiration. This Chapter shall expire and shall be of no further force and effect three (3) years after its effective date; provided,,this expiration shall not affect any criminal proceeding instituted for violation of this Chapter during its effective period." INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at a meeting held on the 22nd day of March, 1982, on motion of Councilman Settle , seconded by Councilman Dunin and on the following roll -call vote: AYES: Councilmembers Settle, Dunin, Dovey, Griffin, and Mayor Billig. NOES: None. ABSENT: None. ATTEST- z � �_,_ . A / /, , ,-, ": Z. P mela Vog s, Ci 11 Clerk Page 12 of 13 ORDINANCE NO. 923 .(1982_Series) �Q City Administrative Olfficerl City Attorney Page 13 of 13 IL i �, � �j }. J ORDINANCE NO. 923 (19 82 Series) FINALLY PASSED this 6th day of April , 1982, on motion of _ Councilman Settle seconded by Mayor Billig_ and on the following roll (. -ill vote: AYES: Councilmembers Settle, Dovey, Dunin, Griffin and Mayor Billig NOES: None ABSENT: None ATTEST: City Clerk Pamela V es