5.16.020 Definitions.

        “Allowable legal expenses” means attorney’s fees and costs incurred in connection with successful good-faith attempts to recover rents owing, and successful good-faith unlawful detainer actions not in derogation of applicable law, to the extent same are not recovered from homeowners. Attorney’s fees and costs incurred in proceedings before the commission, or in connection with civil actions against the commission, are not allowable as operating expenses.

        “Base rent” means: (1) for spaces not subject to a long term lease that complies with the provisions of Civil Code Section 798.17, the space rent charged on March 28, 1991; and (2) for spaces subject to valid long term leases on March 28, 1991, which leases comply with the provisions of Civil Code Section 798.17, the last space rent charged under the long term lease.

        “Capital improvements” means the park owner’s cost of constructing new improvements or replacing old improvements in the mobilehome park, subject to the following limitations:

        1.     The improvement must: have a life expectancy of five years or more and must be treated as capital improvements for federal and state income tax purposes, and may not be deducted for such tax purposes as expenses.

        2.     Normal routine maintenance and repair are not capital improvements.

        3.     Insured repairs and replacement are not capital improvements.

        4.     The improvements must be permanently fixed in place or relatively immobile.

        5.     Those improvements that the park owner intends to pass through to the homeowner through special and limited rent increases, except for necessary infrastructure improvements, must be approved by fifty (50) percent plus one of the homeowners.

        “Capital improvements” include construction, installation or replacement of all or a portion of a clubhouse, laundry facility or other common area facilities a swimming pool, sauna, hot tub or other recreational amenities, streets, security gates, outdoor or common area lighting, retaining walls, sewer, electrical, plumbing, water or television reception systems, sprinkler systems, or any addition to or upgrade of existing improvements.

        “Commission” means the mobilehome park rent stabilization commission, as established by this chapter.

        “CPI” means the Consumer Price Index (All Items) prepared by the Bureau of Labor Statistics for the Los Angeles-Anaheim-Riverside area relating to all urban consumers. If the method of calculating the CPI is substantially revised after the adoption of the ordinance codified in this chapter, the method in effect upon adoption of such ordinance shall continue to be used, or the revised CPI shall be adjusted by the city to correspond to that method.

        CPI Adjustment Period. The city shall calculate and furnish a figure constituting the CPI change for use as the basis of rent increases. Such figure need only be based upon available data. This figure shall be based on the changes in the CPI during the last available twelve (12)-month period for which information is available from the Bureau of Labor Statistics prior to the effective date of the base rent or current space rent.

        “Gross income” means and includes the following:

        1.     Gross rent, computed as gross rental income at one hundred (100) percent paid occupancy; plus

        2.     Interest from rental deposits, unless directly paid by the park owner to the homeowner (interest shall be imputed at the rate of five and one-half percent of all deposits, unless such deposits earn greater interest); plus

        3.     Income from laundry facilities, cleaning fees or services, garage and parking fees attributable to mobilehome spaces; plus

        4.     All other income or consideration received or receivable for, or in connection with the housing services; minus

        5.     Uncollected rents due to vacancy and bad debts, to the extent that the same are beyond the owner’s control. Uncollected rents in excess of three percent of gross rents shall be presumed to be unreasonable, unless proven otherwise. Where uncollected rent must be proven, the average of the preceding three years’ experience shall be used, or other comparable method.

        “Homeowner” means any person entitled to occupy a mobilehome which is located within a mobilehome park in the city.

        “Housing services” means services provided by the park owner related to the use or occupancy of a mobilehome space, including, but not limited to, water and sewer, natural gas, electricity, refuse removal, management and administration (including employee salaries and fringe benefits), maintenance and repairs, supplies, advertising, recreation facilities, laundry facilities, parking, security services, insurance, property taxes, governmental assessments, and other costs reasonably attributable to the operation of the mobilehome park. The term “housing services” shall not include legal fees or mortgage payments, whether for principal, interest, or both.

        “Mobilehome” means a structure designated or designed for human habitation, transported over the highways to a-permanent occupancy site, and installed on the site either with or-without a permanent foundation. “Mobile-home” includes a manufactured home, as defined in the Health and Safety Code, but does not include either a recreational vehicle or a commercial coach, as they are defined in the Health and Safety Code.

        “Mobilehome park” means an area of land where two or more mobilehome spaces are rented or leased for mobilehomes used as residences. “Mobilehome park” does not include developments which sell lots for mobilehomes or which provide condominium ownership of such lots, even if one or more homes in the development are rented or leased out.

        “Mobilehome park owner” or “park owner” means the owner, lessor, operator or manager of a mobilehome park in the city.

        “Necessary infrastructure improvements” means maintenance (such as replacement of a necessary component of a system or improvement, and other than normal maintenance or repair which constitute “operating expenses” pursuant to this section of streets, electrical, gas, plumbing, sewer or water systems, except that costs of replacement or repair incurred or required as a result of the park owners negligence.

        “Operating expenses” shall include the following:

        1.     Real property taxes;

        2.     Utility costs;

        3.     Management expenses (contracted or park owner-performed), including necessary and reasonable advertising, accounting, insurance, and other managerial expenses, and allowable legal expenses. Management expenses are presumed to be five percent of gross income, unless established otherwise;

        4.     Normal repair and maintenance expenses, including painting, normal cleaning, fumigation, landscaping, and repair of all standard services, including electrical, plumbing, carpentry, furnished appliances, drapes, carpets and furniture;

        5.     Park owner performed labor, which shall be compensated at a reasonable hourly rate, based upon documentation being provided, showing the date, time and nature of the work performed;

        6.     License and registration fees required by law, to the extent same are not otherwise paid by homeowners;

        7.     Capital expenses with a total cost of less than one hundred dollars ($100.00) per year, benefited unit, and the amortized portion of other capital expenses otherwise allowed by regulation.

        “Operating expenses” shall not include:

        1.     Avoidable and unnecessary expenses since the base year, including refinancing costs;

        2.     Mortgage principal and interest payments;

        3.     Any penalty, fees or interest assessed or awarded for violation of this or any other law;

        4.     Legal fees, except allowable legal expenses as defined in this section;

        5.     Depreciation of the property;

        6.     Any expense for which the park owner has been reimbursed by any security deposit, insurance settlement, judgment for damages, settlement or any other method;

        7.     Land lease payments;

        8.     Cost of replacement or repair incurred or necessary as a result of the park owner’s negligence or failure to maintain.

        “Space rent” means the consideration on a monthly basis, including any 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:

        1.     Any amount paid for the use of a mobilehome;

        2.     Security deposits and special and limited rent increases;

        3.     User fees for services or facilities which may be utilized at the option of the homeowners and are not included in monthly space rent; and

        4.     Utility charges for those mobilehome parks which bill homeowners separately whether or not the mobilehomes are individually metered. (Ord. 121 §§ 5—7, 1994; Ord. 116 § 2, 1994; Ord. 115U §§ 2, 3, 1994; Ord. 75 § 2, 1992; Ord. 48U § 1, 1991; prior code § 6701)