Note: Prior ordinance history: Ords. 3072, 3213, 3219,
3243, 3255, 3281, 3360, 3376, 3469, 3480, 3491, 3540.
(A)
The
State of California has recognized, by the adoption of special legislation
regulating tenancies of mobilehome owners in mobilehome parks, that
there is a significant distinction between homeowners in mobilehome
parks and other dwelling units, and the State likewise has recognized
that homeowners in mobilehome parks, unlike apartment tenants or residents
of other rental stock, are in the unique position of having made a
substantial investment in a residence, the space for which is rented
or leased as distinguished from owned.
The physical removal and relocation of a mobilehome from a rented
or leased space within a mobilehome park can be accomplished only
at substantial cost and inconvenience with a limited concurrent ability
to find another location and, in many instances, the removal requires
a separation of the mobilehome unit from appurtenances which have
been made permanent, thus creating severe damage and depreciation
in value to the mobilehome.
As a result of the absence of vacant spaces that are not new,
it is virtually impossible for mobilehome owners to move their mobilehomes
from one park to another within the City.
(B)
There
is presently within the City and the surrounding areas a shortage
of sites for the placement of mobilehomes.
(C)
Mobilehomes
presently constitute an important source of housing for persons of
low and moderate income, who as a group are unable to afford unreasonably
large rent increases.
(D)
A
large number of persons living in mobilehomes are elderly, some of
whom live on small fixed incomes. These persons may expend a substantial
portion of their income on rent and may not be able to afford other
housing within the City.
(E)
There
is an extremely low vacancy rate in mobilehome parks within the City,
with no sites presently available in some or all of the mobilehome
parks. This condition enables owners to impose unreasonably large
rent increases.
(F)
Rents
for sites within mobilehome parks have, prior to the adoption of rent
control, increased substantially within the City and other areas of
the State. In some mobilehome parks, rent increases in the five years
prior to 1993 were substantially in excess of the increases in the
Consumer Price Index.
(G)
Mobilehome
owners residing in mobilehome parks have very limited mobility because
it is difficult and costly to move mobilehomes; such mobilehome owners
may be forced to accept and pay unreasonably increased rents.
(H)
Studies
and hearings have shown that there is presently, within the City and
surrounding areas, a shortage of spaces for the location of mobilehomes,
resulting in an extremely low vacancy rate. Space rent increases at
the time of sale or other transfer of a mobilehome within a park have
been shown to be substantially over the pre-transfer rent. Such large
rent increases at the time of sale of a mobilehome may unfairly depress
the sales price of the mobilehome and work an economic hardship on
the mobilehome owner. The annual rent increases and vacancy control
provisions of this chapter prevent this economic hardship while protecting
the property rights of owners.
(I)
Rapidly
rising and large incremental increases in space rent prior to rent
control resulted in an atypical market depression in the resale value
of mobilehomes within the City.
(J)
Because
of the space shortage and potential for rapidly rising rents, regulation
is necessary to assure that eco-nomic hardship to a substantial number
of mobilehome owners in the City, many of whom are senior citizens
on low fixed incomes, does not occur.
(K)
It
is the purpose of this chapter to establish a speedy and efficient
method of reviewing certain requested mobilehome space rent increases
in mobilehome parks to protect mobilehome owners from arbitrary, capricious
or unreasonable site rent adjustments while insuring owners and/or
operators and investors a fair and reasonable return. It is not the
purpose of this chapter to preserve affordable housing, but rather
to allow reasonable annual rent increases which protect mobilehome
owners while providing a fair return to owners.
(Ord. 3648 § 1, 2004)
For the purpose of this chapter, the following words, terms
and phrases shall be defined as follows:
means those mobilehome owners whose space is not covered
by a valid lease meeting the requirements of Section 798.17(b) of
the California Civil Code or otherwise legally exempt from local rent
control regulation.
means a person who is neither a mobilehome owner nor has
an interest in a mobilehome park of a nature that would require disqualification
under the provisions of the Political Reform Act if the person were
a designated City employee, has experience in analysis of financial
records, and meets one of the following criteria:
means those improvements which directly and primarily benefit
and serve the existing mobilehome owners by materially adding to the
value of the park or adapting it to new uses, and which are required
to be amortized over the useful life of the improvements pursuant
to the provision of the Internal Revenue Code. "Capital improvement
costs" means all costs reasonably and necessarily related to the planning,
engineering and construction of capital improvements and shall include
debt service costs, if any, incurred as a direct result of the capital
improvement. Capital improvement does not include ordinary maintenance
or repairs.
means a capital expenditure as defined by the Internal Revenue
Code which replaces an existing improvement. For example, an asphalt
overlay of an existing roadway or parking lot is a capital replacement,
a slurry seal of an existing roadway or parking lot is not.
means the City of Santa Rosa, California.
means Clerk of the Santa Rosa Mobilehome Rent Control Program,
who shall be the Director of Housing and Redevelopment or his/her
designee.
means the Consumer Price Index for all urban consumers in
the San Francisco/Oakland/Hayward, as may be amended from time to
time, area published by the Bureau of Labor Statistics.
means the Department of Housing and Redevelopment of the
City of Santa Rosa.
means the California Mobilehome Residency Law.
means a structure, designed for human habitation and for
being moved on a street or highway under permit pursuant to California
Vehicle Code Section 35790, including a trailer or recreational vehicle,
as defined in California Civil Code Section 798.3 as it may be amended
from time to time.
means any area of land within the City of Santa Rosa where
two or more mobilehome spaces are rented, or held out for rent, to
accommodate mobilehomes used for human habitation.
means the site within a mobilehome park intended, designed
or used for the location or accommodation of a mobilehome and any
accessory structures or appurtenances attached thereto or used in
conjunction therewith.
means a person who is the owner of a mobilehome and legally
occupies the mobilehome within a mobilehome park.
means the owner or operator of a mobilehome park or an agent
or representative authorized to act on said owner's or operator's
behalf in connection with the maintenance or operation of such park.
as used in this chapter refers to any affected mobilehome
owner and/or owner involved in proceedings under this chapter.
means a person who is in the process of negotiating a tenancy
in a mobilehome park.
means the consideration paid for the use or occupancy of
a mobilehome space.
means the fee established from time to time by resolution
of the City Council in accordance with the provisions of the ordinance.
means any increase in base rent charged by an owner to a
mobilehome owner or offered to a prospective mobilehome owner.
(Ord. 3648 § 1, 2004; Ord. 2022-017 § 1)
Except as provided in this chapter, an owner shall not demand,
accept or retain rent for a mobilehome space exceeding the base rent
which shall be the rent in effect for that space on September 1, 1993.
If a previously rented mobilehome space was not rented on September
1, 1993, the base rent shall not exceed the rent in effect during
the last month the space was rented prior to September 1, 1993, except
as provided in this chapter. For a mobilehome space first rented after
September 1, 1993, the owner shall establish the base rent. For parks
annexed into the City after September 17, 1993, the base rent shall
be the rent charged on the date of a park's annexation into the City.
(Ord. 3648 § 1, 2004)
(A)
Consumer
Price Index.
(1)
Subject to the provisions of subsection (2), an owner, once in any 12-month period, may impose a rent increase for a mobilehome space by 70 percent of the percentage increase, if any, in the Consumer Price Index (CPI) during the most recent 12-month period ending in August; provided, however, the rental increase shall not exceed four percent of the previous rent charged for the space. If an owner has obtained a rent increase under Section 6-66.050(B), the owner may calculate the rent increase allowed by this subsection based upon the approved comparable rent as allowed in Section 6-66.050(B) instead of upon the actual rent in effect at the time of the increase.
(2)
In no event shall the cumulative rental increase for any mobilehome
space in the combined calendar years of 2023 and 2024 exceed the lesser
of:
(B)
If
the change in the CPI exceeds four percent for two consecutive years,
the Clerk shall review the maximum rent increase and recommend an
ordinance amendment if appropriate.
(C)
Government
Mandated Expense Pass Through. An owner may pass through to affected
mobilehome owners any new or increase in government mandated capital
expenditures and operating expenses including taxes (other than the
two percent annual increase authorized by California Constitution
Article XIIIA, Section 2(b)) and assessments, fees and mandated expenses
due to code changes subject to the following procedure:
(1)
Upon a petition signed by one adult mobilehome owner of 50% of the
spaces subject to rent control in a park or 50 spaces, whichever is
less, and filed with the Clerk within 30 days of the date the owner
gives notice of a government mandated expense pass through to every
affected mobilehome owner, the Arbitrator may disallow or decrease
the proposed pass through based upon substantial evidence in the record
that the pass through is not legally proper, or excessive, or that
during the pass through period the owner is including an unreasonably
high financing cost and/or return on the expense being passed through.
(D)
Utilities.
An owner may separately pass through to a mobilehome owner charges
for all utilities, including, but not limited to, sewer, water, garbage,
cable T.V., gas and electricity, and any increases in such charges
(except water, gas and electric utilities which are not separately
metered shall not be passed through, but may be charged as additional
rent). Notwithstanding any provision to the contrary in this section,
the owner shall not pass through any charge or expense for gas or
electric service to the extent prohibited by Section 739.5 of the
California Public Utilities Code.
(E)
Capital
Improvement Pass Through. An owner may charge to the affected mobilehome
owner as additional rent the pro rata share of new service and capital
improvement costs including reasonable financing costs if, prior to
initiating the service or incurring the capital improvement cost,
the owner has:
(1)
Consulted with the mobilehome owners prior to initiating construction
of the improvements or initiating the new service regarding the nature
and purpose of the improvements or services and the estimated cost
of the improvements or services;
(2)
Obtained the prior written consent of at least one adult mobilehome
owner in each of a majority of the mobilehome spaces which are occupied
by the mobilehome owner to the proposed service or capital improvement.
Each space shall have only one vote.
(F)
Capital Replacement Pass Through. Notwithstanding the provision of subsection E of this section, an owner may charge to the mobilehome owner as additional rent the pro rata share of capital replacement costs including reasonable financing costs, if not otherwise prohibited by law, subject to the following procedure:
(1)
The owner may seek advance approval for the proposed pass through, before undertaking the capital project, by following the procedures set forth in Sections 6-66.100 to 6-66.120. If the increase is approved by the Arbitrator, it shall not be effective until the next regularly scheduled annual rent increase date, provided that the 90-day notice is issued, the expense is actually incurred and that proper verification is submitted. This verification shall include, at a minimum, proof of actual costs and payment to vendor. In the event that the actual cost of the capital expense is less than the approved amount, the increase shall be adjusted to reflect this decreased amount;
(2)
The owner shall give notice of the proposed pass through to each
affected mobilehome owner no later than 12 months after completion
of the capital replacement work;
(3)
Upon a petition signed by one adult mobilehome owner of 50% of the
spaces subject to rent control in a park or 50 spaces subject to rent
control, whichever is less, and filed with the Clerk within 30 days
of the date the owner gives notice of the pass through to every affected
mobilehome owner, the Arbitrator may disallow or decrease the pass
through for capital replacements based upon substantial evidence in
the record that the capital replacement was not necessary, or that
the cost of the capital replacement was excessive, or that during
the pass through period, the owner is including an unreasonably high
financing cost and/or return on the expense being passed through.
The owner shall have the burden of proving the necessity for and reasonable
cost of the capital replacements. In determining whether the owner
has met its burden of proving the necessity for and reasonable cost
of the capital replacement, the Arbitrator may consider, among other
factors, the reasonableness of the owner's history of maintenance
of the property or improvement to be replaced. The Arbitrator's review
will include, but not necessarily be limited to, the records reflecting
past maintenance work and the cost.
(G)
All charges passed through by the owner to the mobilehome owners pursuant to subsection C and D of this section and additional rent charged pursuant to subsections E and F of this section must be separate from the base rent and listed separately. All billings used to calculate a pass through or additional rent to mobilehome owners must be disclosed within a reasonable time upon request by a mobilehome owner.
(H)
Notice.
A written notice of each rent increase or new or increased capital
improvement or capital replacement pass through charge made under
the provisions of this section shall be filed by the owner with the
Clerk, and provided to each affected mobilehome owner, at least 90
days before the rent increase goes into effect or as required by the
MRL. The notice shall identify the park and shall specify the dollar
amount of the increase, the percentage of the increase, an itemization
of all new or increased pass throughs and additional rent charges,
the specific space affected, the date the increase will go into effect,
how each increase was calculated, and the date the rent on each affected
space was last increased. The notice shall also advise each affected
mobilehome owner of any right to petition for review of a proposed
rent increase and that a petition form may be requested from the Clerk.
(Ord. 3648 § 1, 2004; Ord. 2022-017 § 2; Ord. 2023-009, 7/11/2023)
(A)
Whenever
either of the following events occurs, an owner shall be permitted
to charge a new base rent for the mobilehome space as provided in
this section:
(1)
The termination of the tenancy of the affected mobilehome owner in
accordance with the MRL (California Civil Code Sections 798.55 through
798.62, as amended, excepting Section 798.59); or
(2)
The voluntary permanent removal of a mobilehome by a mobilehome owner.
A removal of the mobilehome from the space for the purpose of performing
rehabilitation or capital improvements to the space or for the purpose
of upgrading the mobilehome shall not constitute a voluntary removal
of the mobilehome.
(B)
Upon
an in-place transfer of a mobilehome, the park owner may increase
the rent by an amount that does not exceed 10% of the then current
base rent.
(Ord. 3648 § 1, 2004; Ord. 2022-017 §§ 3—5)
If an owner presents evidence to the Arbitrator, including any financial records requested by the Arbitrator, which proves that the owner is denied a fair return by the rent control provisions of this chapter, the Arbitrator may authorize an increase in rents as deemed appropriate by the Arbitrator to provide a fair return to the owner. The Arbitrator shall use the method set forth in Section 6-66.120(C) to determine the fair return.
(Ord. 3648 § 1, 2004)
(A)
Upon
the petition signed by one adult mobilehome owner of 50% of the spaces
subject to rent control in a park or 50 spaces subject to rent control,
whichever is less, the Arbitrator may prohibit future rent increases
for spaces governed by this chapter, upon its determination that maintenance
by the owner has been substantially reduced. The determination shall
be based upon substantial evidence in the record. The prohibition
may be continued until the Arbitrator determines that maintenance
by the owner has been restored to a reasonable level.
(B)
Upon
petition by one or more affected mobilehome owners, an Arbitrator
may prohibit future rent increases, or order a rollback of the existing
rent as to those petitioners, upon its determination that after September
1, 1993, an owner instituted a rent increase inconsistent with the
criteria established by this chapter. The determination shall be based
upon substantial evidence in the record. The prohibition may be continued
until the Arbitrator determines that the rent has become consistent
with this chapter.
(Ord. 3648 § 1, 2004)
(A)
Once within a 12-month period, the owner may implement a CPI rent adjustment (Section 6-66.040(A)), if any, or a fair return increase (Section 6-66.060), but not both.
(B)
A capital replacement pass through (Section 6-66.040(F)) may only be implemented on the effective date of the CPI or fair return rent adjustment.
(C)
The
following increases or adjustments may be implemented at any time
during the year:
(1)
Government mandated expense pass through (Section 6-66.040(C));
(2)
Utility pass throughs (Section 6-66.040(D));
(3)
Capital improvements (Section 6-66.040(E));
(Ord. 3648 §1, 2004)
(A)
Matters
Subject to Arbitration.
(2)
Affected mobilehome owners may file with the Clerk:
(a)
A petition objecting to a government mandated expense pass through as allowed by subsection 6-66.040(C);
(b)
A petition objecting to a capital replacement pass through as allowed by subsection 6-66.040(F);
(c)
A petition for rent freeze as allowed by subsection 6-66.070(A);
(d)
A petition for rent rollback as allowed by subsection 6-66.070(B).
(B)
These
petitions and applications shall be decided by the Arbitrator.
(C)
Cost
of Arbitration. The cost of arbitration shall be paid by the Clerk
out of revenue from the rent stabilization administration fee. The
Arbitrator may reimburse the City by assessing the cost of the arbitration
to either party if the Arbitrator determines that the position taken
by the party is frivolous.
(Ord. 3648 § 1, 2004)
(A)
Notice.
At least 10 days prior to submission of a fair return application
or a petition to the Clerk, the applicant or petitioner shall mail
a notice and a copy of the application or petition to the owner and
each affected mobilehome owner in the park. The notice shall be on
a form specified by the Clerk. The supporting documents for the application
or petition shall be available for review at the park's office. One
copy of the supporting documents shall be provided by the applicant
or petitioner at no cost to the other party. All fair return notices
shall include the following information:
(1)
The amount of the rent increase both in dollars and as a percentage
of the existing rent, how it was calculated, an itemization of all
pass throughs and additional rent charges, information that explains
and supports the level of increase proposed including, at a minimum,
a summary of the owner's net operating income for the base year and
the preceding 24 months and other relevant information that supports
the level of rent increase desired, the effective date of the increase
and that copies of the supporting documents shall be provided by the
owner at no cost to the mobilehome owners' representative and be available
to the mobilehome owners at the park's office for inspection;
(2)
The name, address and telephone number of the Clerk or designee,
a statement to inform the mobilehome owners to contact the Clerk or
designee for an explanation of the provisions of this chapter, and
that a roster of affected mobilehome owners can be requested from
the Clerk; and
(3)
A copy of the official petition form which is to be used for the
process established by this chapter.
(B)
Application/Petition
Forms. The application or petition shall be filed with the Clerk on
the form prescribed by the Clerk and must be accompanied by all supporting
material necessary to support the request. The application and petition
shall contain the following declaration: "I declare under penalty
of perjury that the foregoing is true and correct." The application
shall be dated and subscribed by the applicant(s) and shall state
the place of execution.
(1)
Within five working days of receipt, the Clerk shall complete a preliminary
review of the application or petition. Applications or petitions which
are incomplete will not be considered properly filed.
(2)
No further action shall take place on applications or petitions which
are not properly filed, and the Clerk may decline to accept such application
and/or return them to the petitioner immediately after the preliminary
review with a notice of the defects.
(3)
When the Clerk determines that the application or petition is complete,
the Clerk shall send a written notice of confirmation of receipt of
a completed application or petition to the parties.
(4)
In capital replacement proceedings and in government mandated capital
expenditure and operating expense proceedings, affected mobilehome
owners shall have 30 calendar days after receipt of the confirmation
of the completed application to file with the Clerk a petition objecting
to the rent increase signed by one adult in at least 50 percent of
the mobilehome spaces subject to rent control.
(C)
Insufficient
Objection—Capital Replacement or Government-Mandated Pass Through
Proceeding—Clerk Action. If less than the required number of
affected mobilehome owners object to a proposed capital replacement
or government-mandated pass through, or if objection is withdrawn,
including any amendments, before or after the meet and confer process,
the Clerk shall approve the requested pass through.
(Ord. 3648 § 1, 2004)
Within 10 working days of the date of the Clerk's notice of
a completed application or petition and prior to assign-ment of an
Arbitrator, affected mobilehome owners and owners shall meet and confer
with each other's representatives. The time, place and date of the
meeting shall be agreed to by the parties or, if the parties cannot
agree, determined by the Clerk. Written notice of the scheduled meeting
shall be given by the applicant or petitioner. At the meeting, representatives
of the parties shall exchange documentary evidence that the parties,
in good faith then know, will be used to support their respective
positions in an arbitration and discuss the issues in dispute. In
the case of an owner, all financial data upon which any proposed increase
is claimed shall be supplied to affected mobilehome owner representatives
at the time of the meet and confer meeting. The parties may request
that the Clerk provide a mediator, at no cost to the parties, to assist
with the meet and confer process. The Arbitrator may deny an application
based on the applicant's failure to participate in good faith in the
meet and confer process.
(Ord. 3648 § 1, 2004)
(A)
The
Clerk shall give written notice to the applicant or petitioners and
mobilehome owner representative that the application/petition has
been referred to arbitration.
(1)
An Arbitrator shall be appointed in the following manner:
(a)
The Clerk shall maintain a list of qualified arbitrators.
(b)
Assignment of Arbitrator and Hearing Date. The Clerk shall choose
three possible Arbitrators and present them to the residents' representative
and the owner. Within five days each party may challenge one candidate.
The one remaining shall be the selected Arbitrator. If both parties
challenge the same candidate, the Clerk shall choose between the two
remaining candidates. The Clerk shall set a date for the arbitration
hearing no sooner than 21 or no later than 30 working days after the
Arbitrator is assigned. The owner and affected mobilehome owners shall
be notified immediately in writing by the Clerk of the date, time
and place of the hearing and this notice shall be served either in
person or by ordinary mail. The parties may agree, in writing, to
extend these times. The Arbitrator may extend the date for the arbitration
hearing upon a showing of good cause.
(2)
The Arbitrator shall conduct a hearing with the parties and/or their representatives. During this hearing process, the concerns of each party shall be discussed and the Arbitrator shall indicate the amount and nature of information needed from any party in order to reach a determination. In fair return proceedings in Section 6-66.060, this shall include four years of the income and expense portion of the general ledgers for the park. All information submitted shall be in writing and shall be certified in the same manner as set forth in subsection 6-66.100(B).The applicant shall have the burden of proof unless other sections of this chapter specify otherwise. Each party shall comply with the Arbitrator's request for information within five working days of the request. Additional information provided to the Arbitrator shall be immediately available to the owner or affected mobilehome owner representative which will have five working days to give written comment to the Arbitrator. The Arbitrator may proceed under this part regardless of whether any party defaults in providing any of the requested information.
(B)
Arbitration
Determination.
(1)
Within 21 days of the hearing, but no later than 90 days from the
date of the owner's rent increase notice, the Arbitrator shall deliver
his or her decision on the application or petition and a bill for
services to the Clerk.
(2)
The rent increase in a fair return proceeding shall not exceed the
increase requested in the application.
(3)
The Clerk shall provide the result of the Arbitrator's decision to
the affected parties.
(4)
The Arbitrator's decisions are final and not appealable to the City
Council.
(C)
Method
to Determine a Fair Return.
(1)
The base year for the purpose of this section shall be the last full
fiscal year prior to the park becoming subject to this chapter. The
Arbitrator may establish an alternative base year if the owner is
unable to produce records of the last full fiscal year prior to the
park becoming subject to rent control.
(2)
It shall be presumed that the net operating income produced by the
property during the base year provided a fair return. An owner shall
be entitled to rents to earn a just and reasonable return and to maintain
and increase their base year net operating income in accordance with
subsection (C)(4) of this section. This method is called maintenance
of net operating income (MNOI) and shall be included in all applications.
(3)
The applicant or the affected mobilehome owners may present evidence
to rebut the presumption of fair and reasonable return based upon
the base year net operating income. To make such a determination and
in order to adjust to the base year net operating income, the Arbitrator
must make the following finding:
(a)
The owner's operating and maintenance expenses in the base year were
unusually high or low in comparison to other years. In such instances,
adjustments may be made in calculating such expenses so that the base
year operating expenses reflect average expenses for the property
over a reasonable period of time. In considering whether the base
year net operating income yielded more or less than a fair net operating
income, the Arbitrator shall consider the following factors:
(i)
Substantial repairs were made due to damage caused by uninsured
disaster or vandalism;
(ii)
Maintenance and repairs were below accepted standards so as
to cause significant deterioration of housing services;
(iii)
Other expenses were unreasonably high or low notwithstanding
prudent business practice; and
(iv)
The rent in the base year was disproportionately low due to
the fact that it was not established in an arms-length transaction
or other peculiar circumstances.
(4)
Fair Net Operating Income. The Arbitrator shall submit a determination
based on rental income which will provide the owner a net operating
income which shall be increased by 100% of the percentage increase
in the CPI over the base year's CPI index. The base year CPI shall
be the CPI for the first day of June. For purposes of this section,
the current CPI shall be the CPI last reported as of the date of the
completed application.
(5)
Net operating income of a mobilehome park means the gross income
of the park less the operating expenses of the park.
(6)
Gross income means the sum of the following:
(a)
Gross space rents computed as gross space rental income at 100% occupancy
(but excluding rent attributed to a space occupied by a park employee
who receives the space rent free as part of the employee's compensation);
plus
(b)
Other income generated as a result of the operation of the park,
including, but not limited to, fees for services actually rendered;
plus
(c)
All other pass through revenue received from mobilehome owners except
capital pass throughs and gas and electric; minus
(d)
Uncollected space rents due to vacancy and bad debts to the extent
that the same are beyond the owner's control. There is a rebuttable
presumption that uncollected space rents in excess of the average
of the current and past three years uncollected rents (each year's
rent shall be adjusted by the change in the CPI between that year
and the final year of the four-year period) are excessive and shall
not be deducted from gross income.
(7)
Operating expenses means:
(a)
Real property taxes and assessment;
(b)
Advertising costs;
(c)
Management and administrative expenses including the compensation
of administrative personnel;
(d)
Repair and maintenance expenses for the grounds and common facilities,
including, but not limited to, landscaping, cleaning and repair of
equipment and facilities;
(e)
In addition to the management expenses listed above, where the owner
performs onsite managerial or maintenance services which are uncompensated,
the owner may include the reasonable value of such services. Owner-performed
labor shall be limited to five percent of gross income unless the
Arbitrator finds that such a limitation would be substantially unfair
in a given case. No credit for such services shall be authorized unless
an owner documents the hours utilized in performing such services
and the nature of the services provided;
(f)
Operating supplies such as janitorial supplies, gardening supplies,
stationery and so forth;
(g)
Insurance premiums related to operation of the park prorated over
the life of the policy;
(h)
Payroll taxes, business, utility, license and permit fees;
(i)
Dues;
(j)
Consultant services for park operation and maintenance;
(k)
All operating expenses must be reasonable and necessary. Whenever
a particular expense exceeds the normal industry or other comparable
standard, the owner shall bear the burden of proving the reasonableness
of the expense. To the extent that an Arbitrator finds any expense
to be unreasonable, the Arbitrator shall adjust the expense to reflect
the normal industry or other comparable standard;
(l)
There is a rebuttable presumption that expenditures in the current
year are unreasonable to the extent that they substantially exceed
the average of the current and past three years (each year's expenses
shall be adjusted by the change in the CPI between that year and the
final year of the four-year period);
(m)
Operating expenses shall not include the following:
(i)
Mortgage debt service expenses;
(ii)
Land-lease expenses;
(iii)
Depreciation;
(iv)
Income taxes;
(v)
Electric and gas expenses included in Section 739.5 of the California
Public Utility Codes;
(vi)
The cost of government mandated expenses (Section 6-66.040(C)), capital improvements (Section 6-66.040(D)), or capital replacements (Section 6-66.040(F)).
(8)
Notwithstanding any other provisions of the ordinance codified in
this chapter, the Arbitrator is authorized to approve any rent increase
that is constitutionally required by law to yield a fair return.
(E)
Subpoenas. The parties may obtain the issuance and service of
a subpoena for the attendance of witnesses or the production of other
evidence at the arbitration hearing. Subpoenas shall be issued and
attested by the Clerk. Issuance of the subpoena must be obtained upon
the filing with the Clerk of the City of an affidavit or declaration,
under oath, setting forth the name and address of the proposed witness;
specifying the exact things to be produced and the relevancy to the
issues involved; and stating that the witness has the desired things
in his/her possession or under his/her control.
Service of the subpoena on a witness to attend arbitration must
be at least five working days before the hearing. Service of a subpoena
duces tecum must be at least 21 days before the hearing. Any party
served with a subpoena duces tecum must produce copies of the requested
items to the subpoenaing party no later than 10 days before the hearing.
A subpoena need not be issued when the affidavit or declaration
is defective in any particular. No arbitration hearing may be continued
due to the failure to file a timely request, or to timely serve a
subpoena. Any person who refuses, without lawful excuse, to attend
the arbitration or to produce relevant evidence as required by a subpoena
served upon that person shall be guilty of a misdemeanor.
No subpoena shall issue until after the parties have met and conferred as required in Section 6-66.110.
(F)
Increases for Capital Expense. Increases attributed to a capital expense, as approved by the Arbitrator to provide a park with a fair return, shall not be included in base rent. These increases must be separately itemized on the monthly rent invoice and terminate at the end of the approved amortized period. Advance approval and effective date of the increase shall be as allowed in Section 6-66.040(F)(1).
(G)
Rent
Increase Effective Date. Rent increases approved by the Arbitrator,
as determined necessary to provide an owner with a fair return, shall
be allowed upon the effective date given by the applicant in the notice
to the affected mobilehome owners, required in Section 798.30 of the
California Civil Code.
(Ord. 3648 § 1, 2004)
An affected mobilehome owner may refuse to pay any rent in excess
of the maximum rent permitted by this chapter. The fact that such
unpaid rent is in excess of the maximum rent shall be a defense in
any action brought to recover possession of a mobilehome space for
nonpayment of rent or to collect the illegal rent.
(Ord. 3648 § 1, 2004)
An owner shall disclose to each prospective mobilehome owner
the current and proposed base rent for the mobilehome space and the
rental agreement options required by this section and Section 6-66.150,
provide each prospective mobilehome owner with a copy of this chapter,
and disclose to the prospective mobilehome owner under what circumstances
that a lease will be exempt from rent control. The owner shall give
the required disclosure and provide a copy of this chapter to the
prospective mobilehome owner at the time that the owner, or owner's
representative, receives the prospective mobilehome owner's application
for tenancy. The required disclosures shall be made in a form approved
by the Clerk, and the owner shall obtain a signature of the prospective
mobilehome owner on the disclosure form acknowledging receipt of the
disclosures. An owner must retain the signed disclosure form throughout
the entire tenancy of the mobilehome owner. This signed form shall
be made available to the Clerk upon reasonable written notice.
(Ord. 3648 § 1, 2004; Ord. 2022-017 § 6)
The costs of administration of this chapter shall be paid by
the imposition of an annual rent stabilization administration fee
established by resolution of the City Council. The fee is chargeable
against the total number of mobilehome spaces in the City subject
to rent control determined on a date certain each year to be established
by the City Council. The owner who pays these fees may pass through
to the mobilehome owners, subject to rent control on the date established
by the City Council, 50% of the fees assessed against a mobilehome
space. The fee shall be due on a date established by the City Council
but may be paid in quarterly installments by the owners. Owners of
parks annexed to the City after September 17, 1993, shall be charged
the fee established by resolution beginning on the effective date
of the annexation.
(Ord. 3648 § 1, 2004)
Any amendment to this chapter shall require a prior public hearing
before the City Council with notice thereof published in a newspaper
of general circulation in the City at least 10 days prior to the hearing.
(Ord. 3648 § 1, 2004)
Every person who violates any provision of this chapter is guilty of a misdemeanor and shall be subject to the provisions of Section 1-28.010 of this code. This section shall not apply to the Arbitrator or officers or employees of the City.
(Ord. 3648 § 1, 2004)
