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5.16.090 Rent increases—Computation and determination.

        A.    Formula Increases. Space rents may be increased automatically and annually by no more than the total percentage change in the CPI for the applicable CPI adjustment period as determined by the city, except that space rent shall not be increased by more than five percent and may be increased by up to two percent. Calculation of the one-year limitation on formula increases shall be from the date the last formula increase became effective for that particular space.

        B.     Vacancy Increases. Notwithstanding the provisions of subsection A of this section, upon vacancy, space rent may be increased up to fifteen percent of the then current maximum allowable rent permitted by this chapter prior to the vacancy.

        C.     Special and Limited Rent and Rent Increases.

        1.     Government Required Services. The homeowner shall pay to the parks owner, on the herein described terms, no less than sixty (60) days after the park owner has notified the homeowner in writing, the increased costs to the park owner of government required services, which are to be included as part of the homeowner’s rent but separately listed items on the monthly statement.

        a.     For the purposes of this chapter, “government required services” shall be defined as services required by governmental agencies which are new or in addition to those services legally required to be provided by the park owner to homeowners or to the mobilehome park on March 28, 1991.

        b.     Such services include fees and charges legally levied by an agency of federal, state or local government upon the park owner. Such services do not include predictable expenses for operation of the mobilehome park, such as common-area utilities expenses or expenses which maintain the safe and healthful use of mobilehome park facilities.

        c.     The park owner’s actual out-of-pocket costs of providing government required services may be charged to the homeowner upon sixty (60) days’ written notice, using the following formula: Amount actually paid by the park owner, divided by the total number of spaces in the mobilehome park, divided by twelve (12) months, equals the sum for government-required services to be charged to the homeowner. Notwithstanding the formula described above, only those costs of providing governmental required services in the twelve (12) months immediately preceding the proposed charge shall be reimbursed to the park owner by the homeowner in the manner herein described. The park owner shall charge the homeowner only those costs for government required services which are not reimbursed to the park owner by insurance or other sources.

        2.     Capital Improvements. a.(i) Necessary infrastructure improvements subject only to the provisions of subsection (C)(2)(d) of this section; and (ii) subject to the vote requirements and the capital improvement limitations set forth in Section 5.16.020, and also subject to review by the commission pursuant to Section 5.16.110, the actual net costs of a capital improvement plus an interest charge to compensate the park owner for the use of money in making the improvement, as described below, may be charged to the homeowners upon sixty (60) days’ written notice, using the following formula: net amount actually paid by the park owner for the capital improvement, plus an interest charge as described below, divided by the total number of spaces in the mobilehome park affected by the improvement, divided by the amortization period for the capital improvement allowed by the Internal Revenue Service, equals the monthly sum for capital improvements to be charged to the homeowners and billed separately from space rent.

        b.     The interest charge that may be added to the costs of materials and labor is the current rate derived from the then-current prime interest rate, computed on a declining balance over a five-year period with equal monthly payments (the five-year period represents the amount of time allowed for fully amortizing the cost of capital improvements).

        c.     Notwithstanding the provisions of subsection (C)(2)(a) of this section and Section 5.16.100, the city manager may approve special and limited rent increases for necessary infrastructure improvements upon a showing by the park owners that the proposed improvement meets the requirements of Section 5.16.020 and that the park owner obtained a minimum of three bids from qualified persons/entities to perform the work, if possible, and that the park owner selected the person/entity submitting the lowest responsible bid to perform the work for the proposed necessary infrastructure improvement. No commission review is required or permitted.

        D.    1.     Sublease Surcharge. Notwithstanding the provisions of subsection A of this section, upon sublease of a space and/or lease of a mobilehome, the space rent may be increased up to fifteen (15) percent of the rent otherwise permitted under this chapter. This rent surcharge shall be effective only for the duration of the sublease and shall be eliminated when and if the sublease is terminated. A sublease surcharge shall not become effective until twelve (12) months after the last vacancy increase pursuant to subsection B of this section. The sublease surcharge rent amount shall be calculated separately and shall not be included in the maximum allowable rent for the purposes of calculating formula increases pursuant to subsection A of this section. The provisions of this subsection shall not apply to those spaces granted hardship exemptions pursuant to subsection F of this section for as long as the space is eligible for such exemption.

        2.     Absentee Owner Surcharge. Notwithstanding the provisions of subsection A of this section, in the event that a homeowner does not use his or her mobilehome at a mobilehome park as a primary or principal residence and the homeowner is not otherwise subject to subsection (D)(1) of this section, the homeowner’s space rent may be increased up to fifteen (15) percent of the rent otherwise permitted under this chapter. This rent increase shall be effective only until the homeowner occupies his or her mobilehome at the mobilehome park as a primary residence or the homeowner subleases his or her space or mobilehome and becomes subject to subsection (D)(1) of this section. For purposes of this chapter, a primary residence is a residence where the homeowner resides for over one hundred eighty-five (185) days during a calendar year.

        E.     Sublease Hardship Exemption. Upon application, the city manager may grant a hardship exemption in connection with the sublease surcharge, which exemption shall last for a term of one year. At the expiration of any particular term of the exemption, the applicant may apply to renew the one-year term by again establishing qualification for the exemption. The application and renewal application shall be in the forms provided by the city manager with a copy to the park owner and, shall include sufficient evidence to establish whether the applicant qualifies for an exemption pursuant to this section and shall be signed by the applicant under penalty of perjury. The city manager shall grant the exemption for any qualified applicant.

        1.     Qualification. To qualify for the sublease hardship exemption, the applicant must satisfy all of the following criteria:

        a.     The applicant must own a mobilehome at the applicable park, and must have occupied the mobilehome as his or her primary residence for a minimum of three years prior to applying for this exemption.

        b.     The applicant must present adequate evidence that he or she would qualify for the Low Income Rate Payer Assistance Program for Submetered Households.

        c.     The combined value of assets owned by the applicant must not exceed one hundred fifty thousand dollars ($150,000.00) excluding the value of the mobilehome itself.

        d.     No person other than the applicant can declare the applicant as a dependent for purposes of federal or state taxes.

        In the event that the applicant, after receiving the hardship exemption, at any time ceases to satisfy all of the foregoing criteria, from that point on, the applicant will not be qualified to receive, and shall not receive, the hardship exemption.

        2.     Effect of Exemption. Each applicant who qualifies for the hardship exemption shall be exempt from the sublease surcharge provided in subsection D of this section. (Ord. 121 §§ 2—4, 8, 9, 1994; Ord. 115U § 3, 1994; Ord. 74 § 3, 1992; Ord. 48U § 1, 1991; prior code § 6708)