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HomeMy WebLinkAbout06/19/1990, 4 - THE CONTROL OF RENTS UPON THE SALE OF MOBILE HOMES LOCATED IN PARKS SUBJECT TO MOBILE HOME RENT STA illUlU city of Sar `UIS OBIS pO EE71N%90� COUNCIL AGENDA REPORT MENA NUMBER From: - Jeffrey G. Jorgensen, City Attorney Subject: The Control of rents upon the sale of mobile homes located in parks subject to Mobile Home Rent Stabilization. CAO Recommendation: Introduce to print an ordinance amending Section 5.44.060C of the San Luis Obispo Municipal Code to provide for the establishment of fair market rent whenever there is a change of ownership affecting a mobile home subject to the Mobile Home Rent Stabilization Ordinance. Discussion: At the May 15, 1990 City Council meeting, the Council introduced to print an Ordinance amending Section 5.44.060C of the San Luis Obispo Municipal Code to provide for decontrol of rents upon the sale of mobile homes located in parks subject to Mobile Home Rent Stabilization. In addition, Council directed staff to come back with additional amendments Stabilization Ordinance which would estabto the Mobile Home Rent lish a procedure for the determination of Fair Market rent when there is a change of ownership affecting a mobile home. Requiring a list of fair market rents (which would be applied to each space in a mobile home park upon change of ownership) to be established annually would provide some certainty to both buyers and sellers of mobile homes as to what the new rent would be and thereby help to avoid favoritism, discrimination, or evasion of the Rent Stabilization Ordinance. Staff has drafted proposed amendments to Section 5.44.060C which, together with the amendments adopted by the Council on May 15, 1990 would provide as follows: C. 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. Provided, however, it shall be unlawful and a violation of this Chapter for an owner to intentionally and willfully increase the monthly space rent of a tenant above the fair market rent in the community for the purpose of forcing the tenant to sell his mobile home to the owner, his agent, or representative. sha1� usa �oz'mai "�tnd pr�tdsn� �t�� �' practices in �stabl,isk�ing the n+aw .fn:ir �ark� dent amount k#or tach�$�� *" The' fir '�out't , l �8enever trhere , 3e > a tchattge :of , �wn+ership � ff$ctin >aobiie ha#tss thereast cati 1e ,kt favaritis� discrimination, eva.s�on o� the rent �tabiiizat +�n pz'dix#�irit�, anti; ~ stetantia�' economic , ancerta3nty fox k�both buyers arid. �seilers of tnoii homes. f'3' ie�reoz8, h8sie of each 3ecile Noma kpark shall Yatdo more thais cfiCe gt t the 5egintiin a calendar year. post Tsar eac3i spacers thea ' the �a�v fair �sar"ket r�rit amort 3� ;s�ii� :fie established upoc the change of as�►nershipYuz3g khat +ceaendar yew c the �obie..}�nme sut�ad upan any given .spare., the park aw°�ert. �all; provide sa3 •.�istwsLo �e Citp Ce�k, a ' ��' post a copy of said list � the a�#icy af, tae �nobii$ ham$ p$rk ado rent shall: be .imposed a collected Gln excess of fixe praysiatas;.„i�f asa'�+ dist: Fiscal impacts There are no anticipated impacts on City funding either in terms of expenses or savings. Attachments: Proposed Ordinance (1990 series) • I C' ORDINANCE NO. (3990 series) AN ORDINANCE AMENDING SECTION 5.44.060 (C) OF THE SAN LUIS OBISPO MUNICIPAL CODE CONCERNING THE ESTABLISHMENT OF FAIR MARKET RENT UWN THE CHANGE OF OWNERSHIP OF A MOBILE HOME BE IT ORDAINED by the .Council of the City of San Luis Obispo: SECTION 1: Section 5.44.060(C) of the San Luis Obispo Municipal Code is amended to read as �follows: 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. Provided, however, it shall be unlawful and a violation of this Chapter for an owner to intentionally and willfully increase the monthly space rent of a tenant- above the fair market rent in the community for the purpose of forcing the tenant to sell his mobile home to the owner, his agent, or representative_ The owner shall use normal and prudent business practices in establishing the new fair market rent amount for each space. The City Council recognizes that the ad hoc establishment of a fair market rent amount for any given space whenever there is a change of ownership affecting a mobile home thereon can lead to favoritism, discrimination, evasion of the rent stabilization ordinance,. and O substantial economic uncertainty for both buyers and sellers of mobil homes. Therefore, the owners of each mobile home park. shall once, and not more than once at the .beginni- of each calendar year, post for each space in the park the new fair market rent amount which will be established upon the change of ownership during that calendar year for the mobile home situated upon any given space. The park owner shall provide said list to the City Clerk, and shall post a copy of said list in the office of the mobile home park. No rent shall be imposed or collected in excess of the provisions of said list. SECTION 2. This ordinance, together with the names of councilmembers voting for and against, shall be published once in full, at least (3) days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in this city. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED AND PASSED TO PRINT by the Council of the City of San. Luis Obispo at its meeting held on the day of 1990, on motion of ,seconded by , and on the following roll call vote: AYES: I NOES: ABSENT: Mayor Ron Dunin ATTEST: City Clerk Pam Voges APPROVED: .,�_. (lel City A inistrative Officer �Ll tto L Direc oro finance