HomeMy WebLinkAboutOrdinance 2857 N.C.S. 07/17/2023 DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
EFFECTIVE DATE ORDINANCE NO. 2857 N.C.S.
OF ORDINANCE
August 16, 2023
Introduced by: Janice Cader Thompson Seconded by: Mike Healy
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA
AMENDING CHAPTER 6.50 OF THE PETALUMA MUNICIPAL CODE ENTITLED
"MOBILEHOME PARK SPACE RENT STABILIZATION PROGRAM,"AND REPEALING AND
REPLACING THE URGENCY ORDINANCE ADOPTED JUNE 19, 2023 AMENDING SECTION
SECTION 6.50.040(A) OF THE PETALUMA MUNICIPAL CODE
WHEREAS, in 1994, the City of Petaluma enacted Chapter 6.50 of the Petaluma Municipal Code entitled
"Mobilehome Park Space Rent Stabilization Program" ("Regulations") by adoption of Ordinance No. 1949
N.C.S.1 ("Ordinance"); and
WHEREAS, the Ordinance contains Section 6.50.010 of the Ordinance, entitled"Findings and Purpose;
and
WHEREAS, the findings and purposes enumerated in Subsections 6.50.010(G-0) of the Regulations are
still pertinent in Petaluma and are incorporated herein by this reference as support for the ongoing need for
mobile home space rent stabilization in Petaluma, and for the need for amendments to the City's regulations
consistent with their purposes; and
WHEREAS,pursuant to Executive Order N-23-20, signed by Governor Newsom, "California faces a
severe housing crisis that has made housing unaffordable for too many Californians and, in turn, exacerbated
the problem of homelessness;"Z and
WHEREAS, there is a shortage of affordable rental housing in the city of Petaluma, because over 1/3 of
housing units in Petaluma are occupied by renters, 18.2% of households in Petaluma live in neighborhoods that
are susceptible to or experiencing displacement, and 38.7% of Petaluma households live in neighborhoods
where low-income households are likely to be excluded due to prohibitive housing costs 3; and
WHEREAS, the rental vacancy rate in Petaluma is 1.92%;4 and
WHEREAS, the median rent in Petaluma for one- and two-bedroom units was $2,527 as of July 2022, the
highest median rent in Sonoma County5; and
WHEREAS, 8 1% of renters in Petaluma with incomes below 80% of area median income are paying more
than 30% of their income for housing costs, and this statistic has increased since the adoption of the City's
previous Housing Element, when approximately 63% of renters were paying more than 30% of their income for
housing 6; and
'https://petaluma.municipal.codes/Code/6.50
2 Executive Order N-23-20 h Vs://www. og v.ca.gov/wp-content/uploads/2020/01/EO-N-23-20-Homelessness-Crisis-01.08.2020.pdf
3 https:Hmtcdrive.gpp.box.com/s/nei8x775oi5m47mghu8cilWgrioa2v3/file/794789786076.
4 https://www.rate.com/research/petaluma-ca
5 Id.
6 https:Hstorage.googleapis.com/proudcity/petalumaca/uploads/2019/09/HousingElement.pdf Appendix A,Page 11
Ordinance No. 2857 N.C.S. Page 1
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
WHEREAS, during the last two years during the COVID-19 pandemic there was a 5% increase in
homelessness in Sonoma County'; and
WHEREAS, between January 2021 and January 2022, the cost of rental housing in Petaluma rose 14.5%,
despite the Tenant Protection Act rent caps and anti-price gouging statutes limiting rent increases to 10%8; and
WHEREAS, on September 13, 2021, the City Council declared a shelter crisis in the City of Petaluma due
to the lack of affordable and accessible housing in California, Sonoma County and Petaluma, pursuant to
Resolution 2021-149 N.C.S.9; and
WHEREAS,the recitals enumerated in Resolution 2021-149 N.C.S. are hereby incorporated herein in
support of the need for amendments to the City's Regulations; and
WHEREAS, at the May 2, 2022, City Council meeting, the City Council identified enactment of tenant
protections as one of its top ten priorities for the fiscal year 2022/2023; and
WHEREAS, there exists legislation in the State of California known as the Mobilehome Residency Law
(Civil Code Sections 798 et seq.) that regulates tenancies of mobilehome owners in mobilehome parks,
recognizing the distinction between homeowners in mobile home parks and residents of other rental housing
units; and
WHEREAS, mobilehome owners residing in mobilehome parks have made significant investments in
residences located on rented or leased property,unlike tenants in apartments or other rental units; and
WHEREAS, the mobility of mobile homes is often limited due to factors such as age and condition, as well
as the scarcity of vacant spaces in mobile home parks, making relocation challenging; and
WHEREAS, the process of moving a mobile home can be costly and may result in damage and
depreciation of its value, particularly when separating the home from its appurtenances; and
WHEREAS, "Some older homes may not be able to be moved at all due to structural concerns or the fact
that parks often will not accept older mobilehomes"10; and
WHEREAS, "Rents paid by mobilehome residents cover park amenities, park common areas, and
maintenance of in-park infrastructure like roads and fences, and, in addition to rents, residents are still
responsible for making other payments just like other homeowners, including paying mortgages and taxes, as
well as making payments for repairs and maintenance"11; and
WHEREAS, "Many of California's mobilehome owners are seniors, veterans, and families seeking an
affordable community environment in which to live"12; and
7 https://www.pressdemocrat.com/article/news/sonoma-cogptys-homeless-population-increased-5-during-pandemic/
8 Napa, Sonoma,Marin, Solano rents jump,burdening tenants,landlords(northbaybusinessjournal.com)
9 https:Hcityofpetaluma.primegov.com/Portal/viewer?id=24208&type=2
10 April 30,Assembly Housing and Community Development,Bill analysis for AB 978
https://le in�gislature.ca.,gov/faces/billAnalysisClient.xhtml?bill_id=202120220AB978#
11 Section 1, Subsection(h)of Assembly Bill 978(2021).
hlt2s:Hle ing fo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB978
12 Id,Subsection(f)
Ordinance No. 2857 N.C.S. Page 2
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
WHEREAS, a state of emergency was declared by the Governor of California on March 4, 2020, in
response to the COVID-19 pandemic, leading to severe economic and health impacts, including a peak national
unemployment rate of 13%percent 13; and
WHEREAS, although the COVID-19 pandemic has subsided and unemployment rates have decreased,
ongoing financial repercussions from the pandemic continue to affect Petaluma residents, and low income
community members in particular; and
WHEREAS, the Consumer Price Index (CPI) for All Urban Consumers has shown annual changes
exceeding five percent since May, 2021 and exceeding eight percent from March to September 2022, according
to the Bureau of Labor Statistics; and
WHEREAS, the CPI for the San Francisco Bay Area region, although slightly lower than the national
average, remains high and significantly above historical averages, as reported by the Bureau of Labor Statistics;
and
WHEREAS, the fluctuations in CPI indicate a historic peak in inflation rates over the past forty (40)
years;14 and
WHEREAS, the elevated inflation rates observed in the last one to two (1-2)years are indicative of
significantly increased costs associated with essential goods such as food, energy (home heating and gasoline),
medical care, apparel, and other necessities for basic human life; and
WHEREAS, the substantial inflation rates adversely affect consumers'purchasing power,particularly
impacting individuals with fixed incomes; and
WHEREAS, within the City of Petaluma, there are seven mobile home parks comprising approximately
869 spaces, which play a crucial role in providing affordable housing options; and
WHEREAS, a significant number of mobile home park residents in the City of Petaluma are senior citizens
with fixed incomes, qualifying as very-low or low-income individuals according to criteria established by the
California Department of Housing and Community Development; and
WHEREAS, numerous residents in Petaluma's mobile home parks face rent burdens, wherein they must
allocate more than 30% of their income towards housing expenses; and
WHEREAS, due to these circumstances, the residents of the mobile home parks in the City of Petaluma
endure a disproportionate and severe impact caused by high inflation; and
WHEREAS, the recent high CPI and rising costs of living pose financial challenges for residents of mobile
home parks in the City of Petaluma; and
WHEREAS, the annual percentage change in the CPI for the San Francisco Bay Area region surpassing
three percent(3%) has been infrequent since the enactment of the Ordinance in 1994; and
WHEREAS, the City recognizes the importance of preserving affordability and stability for mobile home
park residents, particularly in light of economic uncertainties and increasing expenses; and
"https://www.bls.gov/opub/mlr/2022/article/us-labor-market-shows-improvement-in-2021-but-the-covid-l 9-pandemic-continues-to-
weigh-on-the-economy.htm#:-:text=The%20recession%20induced%20by%20the,to%201eave%20the%201abor%20force.
14 hlWs://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-2008/
Ordinance No. 2857 N.C.S. Page 3
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
WHEREAS, the unique circumstances of mobile home owners, who have made investments in their homes
but do not own the underlying land, warrant special consideration; and
WHEREAS, the City aims to maintain a sufficient supply of affordable housing within its jurisdiction and
to prevent the displacement of mobile home park residents; and
WHEREAS, mobilehomes are an excellent option for affordable home ownership for many Californians 15
and
WHEREAS, the limited mobility of mobile homes and the associated costs and difficulties involved in
relocation necessitate protective measures; and
WHEREAS, mobilehome owners were not covered by the protection of the Tenant Protection Act of 2019
(Assembly Bill 1482); and
WHEREAS, the City of Santa Rosa and Town of Windsor recently amended their mobilehome rent
stabilization ordinances to lower their annual rent increase limits to 4% or 70% of CPI, whichever is lower, and
4% or 75% of CPI, whichever is lower, respectively; and
WHEREAS, other local jurisdictions in California have set annual mobile home space rent increase caps as
follows: 4% in Fairfield, 3% in Fremont, or at 50% of CPI in Santa Cruz County, or 60% of CPI in Colton,
Lancaster, and San Luis Obispo County 16; and
WHEREAS, it is in the best interest of the City and its residents to enact measures that ensure stability and
safeguard the rights of mobile home park residents, while ensuring that mobile home park owners are able to
continue to earn a reasonable rate of return on their property; and
WHEREAS, in enacting this ordinance, the City Council is relying on the City's police power and home
rule authority pursuant to Article XI, Sections 5 and 7 of the California Constitution to enact and enforce
ordinances and regulations for the public peace, morals, and welfare of the City and its residents, as well as the
authority in the Mobilehome Residency Law, and other applicable law; and
WHEREAS, this ordinance is intended to ensure stability and fairness in the mobile home rental market
within the City of Petaluma during a period marked by historically high inflation rates, to prevent unnecessary
homelessness and evictions, and to safeguard the public peace, health, safety, and welfare; and
WHEREAS, eviction-induced displacement disrupts the living conditions of mobile home residents,
detrimentally affecting the well-being of both City residents and local businesses by disturbing the social
connections and networks that are crucial to the welfare and stability of the community; and
WHEREAS, eviction-induced displacement imposes undue hardships on tenants, including additional
relocation expenses and an increased risk of homelessness, especially if due to nonpayment of rent, which often
results in minimal or no income to secure alternative housing; and
WHEREAS, housing instability poses a threat to public peace, health, and safety, as eviction from one's
home can lead to prolonged homelessness, financial strain caused by rental application fees and security
deposits for new housing, and the psychological stress and anxiety experienced by those displaced; and
15 Section 1, Subsection(e),Assembly Bill 978
16 hlWs://mhphoa.com/ca/rso/
Ordinance No. 2857 N.C.S. Page 4
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
WHEREAS, if residents are unable to meet their rental obligations and face eviction, the local economy is
adversely impacted as it results in the departure of employees, leading to a decline in the workforce and
potential economic downturn within the City of Petaluma; and
WHEREAS, tenants with high rental costs may have to forego food, medicine, and other necessities to pay
for their rent, which negatively impacts their health, safety, and welfare; and
WHEREAS, on June 5, 2023, the City Council conducted a duly and properly noticed public meeting
where a workshop was conducted regarding potential amendments to the Regulations, and at that meeting
heard, reviewed, and considered public testimony, which is incorporated herein by this reference; and
WHEREAS, on June 19, 2023, the City Council conducted a duly and property noticed public meeting to
take public testimony and consider amendments to the Regulations, the related staff report and all attachments,
and oral and written public comments, determined that an urgency ordinance to be effective immediately to adopt
reductions in the maximum space rent increases that may be imposed on affected Petaluma mobile home park
residents was necessary to avoid the immediate threat to public peace, health, and safety, that may result from
mobile home park tenants being made subject to rent increases in excess of what the City's amended regulations
would permit, to avoid the displacement and the related negative economic and welfare impacts on the City's
residents and community members that otherwise may occur, exacerbating shelter crisis in the City that the City
Council declared on September 13,2021, and adopted an urgency ordinance amending Petaluma Municipal Code
Section 6.50.040; and
WHEREAS, on July 10, 2023, the City Council conducted a duly and property noticed public meeting to
take public testimony and consider amendments to the Regulations, the related staff report and all attachments,
and oral and written public comments; and
WHEREAS, amending the City's mobile home rent control regulations in Chapter 6.50 of the Petaluma
Municipal Code is not a"project"within the meaning of Section 15378 of the California Environmental Quality
Act Guidelines, because such amendments constitute administrative activity that has no potential for resulting in
physical change in the environment, and,because the City's existing mobilehome rent stabilization regulations
resulted from a solely administrative process resulting in no physical changes to the environment, and
amendments of the City's mobilehome rent regulations similarly involve no modifications to the physical
design, development, or construction of residences or nonresidential structure, and finally, amending Chapter
6.50 of the Petaluma Municipal Code is exempt pursuant to Section 15269(c) of the CEQA Guidelines, as a
specific action necessary to prevent or mitigate an emergency, in view of the City Council's action on
September 13, 2021, to declare a shelter crisis in the City;
NOW, THEREFORE,BE IT ORDAINED by the Council of the City of Petaluma, as follows:
Section 1. Recitals Made Findings. The above recitals are hereby declared to be true and correct and hereby
incorporated into this ordinance as findings of the City Council.
Section 2. CEQA Finding. Amending the City's mobile home rent control regulations in Chapter 6.50 of the
Petaluma Municipal Code is not a"project"within the meaning of Section 15378 of the California Environmental
Quality Act Guidelines, because such amendments constitute administrative activity that has no potential for
resulting in physical change in the environment. The City's existing mobilehome rent stabilization regulations
resulted from a solely administrative process resulting in no physical changes to the environment, and
amendments of the City's mobilehome rent regulations similarly involve no modifications to the physical design,
development, or construction of residences or nonresidential structures. Additionally, amending Chapter 6.50 of
the Petaluma Municipal Code is exempt pursuant to Section 15269(c) of the CEQA Guidelines, as a specific
Ordinance No. 2857 N.C.S. Page 5
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
action necessary to prevent or mitigate an emergency, in view of the City Council's action on September 13,
2021, to declare a shelter crisis in the City.
Section 3. Amendments to Chapter 6.50 of the Petaluma Municipal Code. Petaluma Municipal Code Chapter
6.50 is hereby amended in accordance with Exhibit A, which is attached hereto and hereby made a part of this
Ordinance. The provisions of Chapter 6.50 of the Petaluma Municipal Code in Exhibit shown as strike-through
text are hereby deleted, and the provisions of Chapter 6.50 of the Petaluma Municipal Code in Exhibit A shown
as underlined text are hereby added. Except as amended by Exhibit A, all provisions of Chapter 6.50 of the
Petaluma Municipal Code remain unchanged and continue in full force and effect.
Section 4. Effective Date. This ordinance shall become effective thirty(30) days after the date of its adoption by
the City Council in accordance with Article XII, Section 76A of the Petaluma Charter.
Section 5. Severability. If any section, subsection, sentence, clause, phrase, or word of this Ordinance is for any
reason held to be unconstitutional, unlawful, or otherwise invalid by a court of competent jurisdiction or
preempted by State legislation, such decision or legislation shall not affect the validity of the remaining portions
of this Ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted
this Ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions
be declared unconstitutional, unlawful other otherwise invalid.
Section 6. Repeal and Replacement of Urgency Ordinance Adopted June 19, 2023. Upon this Ordinance taking
effect, the urgency ordinance the City Council adopted on June 19, 2023 which amended Section 6.50.040(A) of
the Petaluma Municipal Code will be automatically repealed and replaced by this ordinance without further action
by the City Council, and the urgency ordinance the City Council adopted on June 19, 2023 will be of no further
effect.
Section 7. Posting/Publishing of Notice. The City Clerk is hereby directed to publish or post this Ordinance or a
synopsis for the period and in the manner provided by the City Charter and any other applicable law.
INTRODUCED and ordered published and posted this l Oth day of July 2023.
ADOPTED this 17th day of July 2023 by the following vote:
Ayes: McDonnell, Barnacle, Cader Thompson, Healy,Nau, Pocekay, Shribbs
Noes: None
Abstain: None
DocuSigned by:
Absent: None j 0
Keviinn McDonnell, Mayor
ATTEST: APPROVED AS TO FORM:
DocuSigned by: DocuSigned by:
r,/
Ken a awyer, CMC, City Clerk Eric Fan�y;4�ity Attorney
Ordinance No. 2857 N.C.S. Page 6
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
CHAPTER 6.50 MOBILEHOME PARK SPACE RENT STABILIZATION
PROGRAM
6.50.010 Findings and purpose.
A. For several years,mobilehome tenants have requested that the city of Petaluma enact a mobilehome park space rent
stabilization ordinance.Various meetings have been held with mobilehome park owners and mobilehome park tenants
to address concerns raised by both groups regarding rental increases,vacancy control, and other issues.
B. In March 1993,the city council was presented with a request for consideration of a fair mobilehome rent ordinance.
In April 1993,the city council appointed to the existing mobilehome rent review committee which consisted of
councilmembers,three mobilehome park owner representatives,and three mobilehome park tenants.After several
meetings,it was reported to the city council in July 1993 that it did not appear that an agreement could be reached and
that further discussions would not be fruitful.
C. Subsequent city council meetings were held in which various issues were discussed and from which input was
received from both mobilehome park owners and mobilehome park tenants and their representatives.
D. Because of the inability of the park owners and park tenants to reach a resolution of their differences,the city
council retained the services of Connerly Associates,Inc.,an experienced consultant,to conduct a mobilehome park
survey. The purpose of the survey was to collect relevant information on mobilehome park resident characteristics,
space rents,and the mobilehome parks in Petaluma.
E. On November 15, 1993,Connerly&Associates,Inc. submitted to the city council a written report detailing their
findings,which included the following:
1. Nearly sixty percent of the survey respondents were single adults,while virtually all the remaining respondents
comprised two-person households. There were only four respondents who reported having three household
members.
2. Most of the respondents,nearly eighty percent,reported being age sixty-two or more.
3. The majority of respondents at all the mobilehome parks reported being"low income,"meaning they earned
less than twenty-three thousand eight hundred fifty dollars per year for a single person,or twenty-nine thousand
five hundred dollars per year for a two-person household. For all the parks,nearly ninety percent of the survey
respondents are low income.
4. Over fifty percent of the residents in all but one mobilehome park reported their income as being within the
"very low income"range, sixteen thousand one hundred fifty dollars for a single person or eighteen thousand
seven hundred dollars for a two-person household.About sixty percent of the survey respondents in all the parks
reported their income as being at the "very low income" level or less.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
5. Just over half the respondents in all the mobilehome parks reported they pay more than thirty percent of their
income for housing expenses(space rents;mortgage,if any;utilities;property taxes or registration fees; and
homeowner's insurance).About forty percent of the residents reported paying more than thirty-five percent of
their income for housing expenses.
6. The average rents in the parks,as reported by residents responding to the surveys,range from a low of one
hundred ninety-eight dollars per month to three hundred seventy-five dollars per month. The average monthly
rental reported by respondents for all the parks was two hundred eighty-four dollars per month.By comparison,
the average space rent reported by respondents for all the parks was two hundred two dollars in 1986. The average
space rents reported by residents were within five dollars to ten dollars per month of those reported by the park
owners.
7. The average rental space rent increase was five percent per year between 1986 and 1993.
8. None of the park owners responding to the survey reported vacant mobilehome spaces.
F. The city council has discussed and reviewed the above findings and conclusions,and has received information
through public hearings and concludes,based on said information and the findings herein,that it is necessary and in the
public interest to establish a mechanism to assist in the resolution of disputes that may arise from time to time between
residents and park owners regarding the rates charged for rental or lease of space as well as instances where there is a
sale or transfer of the mobilehomes by the mobilehome residents. In addition,the city recognizes the right of the park
owners to obtain a fair and reasonable rate of return and for their property to generate income to cover costs of
operation and servicing of reasonable financing and to have under the auspices of the city an administrative procedure
which will operate effectively and expeditiously to approve rent increases as are reasonable to meet said ends.At the
same time there is a need to establish a means which if followed can provide protection to tenants from unreasonable
rent increases resulting in loss of value to their property.
G. Program 19 of the 2023-2031 Housing Element,part of the city's General Plan 2025,which the city council
adopted on March 20,2023 and the State Department of Housing and Community Development found to be in
substantial compliance with the State Housing Element Law on May 18,2023, lists programs for promotingthe long
term affordability of mobile home units in the city,including: mobile home land use designations that apply to the
city's seven mobile home parks; supporting the administration of the city's mobile home rent stabilization program that
was implemented to provide rent stabilization for over 317 lower income mobile home park tenants,most of whom are
elderly;continuingto o support the affordability of mobile home parks by working with residents and property owners to
monitor rents and ensure rent increases are economically feasible; annually monitoring mobile home park rents to
ensure compliance with the city's rent stabilization ordinance; as requested,conducting mediations between tenants and
mobile home park owners for rent increases; and updating the mobile home rent stabilization ordinance.
H. A significant majority of the residents of mobilehome parks in the city of Petaluma are older individuals or couples
living on fixed incomes. These residents qualify as"low"and"very low"income households and typically expend
more than thirty percent of their income on housing related expenses.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
I. Nearly all mobilehome park residents own and occupy their mobilehome and have made a substantial monetary
investment to live in a mobilehome park.
J. Residents of a mobilehome park have very limited mobility due to the difficulty and expense of relocating a
mobilehome.
K. There is a limited amount of alternative housing affordable to and suitable for the typical mobilehome park resident
and mobilehome parks are a valuable resource of affordable housing for low and very low income individuals and
families.
L. The city of Petaluma is committed to assisting in the preservation of decent,safe and sanitary housing affordable to
all economic segments of the community,especially mobilehome lots affordable to low and very low income
individuals and families.
M. The city council finds there is a shortage of spaces for the location of mobilehomes in the city,a condition which
results in low vacancy rates and tends to prevent normal competition between the owners and tenants of mobilehome
parks. Rents have been for several years and are presently rising at rates in some instances greater than increases in the
CPI,which has caused concern to a substantial number of mobilehome owners. The city council finds that a substantial
number of mobilehome owners in the city have for a long time asserted a need for rent control and that efforts of the
city council in the past to mediate differences between park owners and their tenants have been notably unsuccessful.
N. As a practical matter,many of the mobile homes in the City's mobilehome parks are not mobile.A large percentage
of the mobilehomes were manufactured before 2000.Very few mobilehome parks will accept mobilehomes that are
more than a few years old. The cost of moving and installing a mobilehome in a park is substantial.Many of the mobile
homes are "doublewide" structures that consist of two(2)ten-or twelve-foot-wide sections joined together when
installed on top of a simple foundation.Mobilehomes are rarely moved after they are placed in mobile home parks.
When mobilehome park residents move they ypically sell their mobilehomes "in place" on the rented space.
O. Court opinions and academic reviews have repeatedly noted the captive nature of mobile home park tenancies. In
2001,the California Supreme Court concluded:
"THE MOBILEHOME OWNER-MOBILEHOME PARK OWNER RELATIONSHIP: This case
concerns the application of a mobilehome rent control ordinance, and some background on the
unique situation of the mobilehome owner in his or her relationship to the mobilehome park owner
may be useful. 'The term'mobilehome'is somewhat misleading.Mobile homes are largely immobile
as a practical matter,because the cost of moving one is often a significant fraction of the value of the
mobile home itself. They are generally placed permanently in parks; once in place,only about 1 in
every 100 mobile homes is ever moved. [Citation.]A mobile home owner typically rents a plot of
land,called a'pad,'from the owner of a mobile home park. The park owner provides private roads
within the park, common facilities such as washing machines or a swimming pool, and often
utilities. The mobile home owner often invests in site-specific improvements such as a driveway,
steps,walkways,porches,or landscaping. When the mobile homeowner wishes to move,the mobile
home is usually sold in place,and the purchaser continues to rent the pad on which the mobile home
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
is located.'(Yee v.Escondido(1992) 503 U.S. 519, 523.)Thus,unlike the usual tenant,the
mobilehome owner generally makes a substantial investment in the home and its gppurtenances—
typically a greater investment in his or her space than the mobilehome park owner, (cite omittedl
The immobility of the mobilehome,the investment of the mobilehome owner, and restriction on
mobilehome spaces,has sometimes led to what has been perceived as an economic imbalance of
power in favor of mobilehome park owners." (Galland v. Clovis,(2001)24 Ca1.4th 1003, 1009).
P. The Florida Supreme Court concluded that mobile homeowners face an"absence of meaningful choice"
when space rents increase: "Where a rent increase by a park owner is a unilateral act,imposed across the board
on all tenants and imposed after the initial rental agreement has been entered into,park residents have little
choice but to accept the increase. They must accept it or,in many cases, sell their homes or undertake the
considerable expense and burden of uprooting and moving. The'absence of meaningful choice'for these
residents,who find the rent increased after their mobile homes have become affixed to the land, serves to meet
the class action requirement of procedural unconscionability."Lanca Homeowners,Inc.v.Lantana Cascade of
Palm Beach,Ltd., 541 So. 2d I121,1124(Fla.),cert,denied,493.
Q. In response to the special situation of mobile home park residents,California has adopted the Mobile Home
Residency law,a landlord-tenant law that provides special protections for mobile home park tenants.
(California Civil Code Section 798 et sec.)In addition,approximately one-hundred and twenty jurisdictions in
California have adopted some type of rent control of mobilehome park spaces. Typically,local rent control
ordinances tie annual allowable rent increases to the percentage increase in the consumer price index. Most
local ordinances do not permit additional rent increases or limit rent increases to ten percent or less when a
mobilehome is sold in place. Local ordinances generally park owners to petition for additional rent
increases in order to obtain a fair return.
R.Mobilehome owners,unlike apartment tenants or residents of other rental units,are in the unique position of
having made a substantial investment in a residence which is located on a rented or leased parcel of land. The
mobilehome owner's investment commonly includes the purchase of the mobilehome and the cost of installing
the mobile home on its space along with related improvements such as a foundation,carports,and integrated
landscaping.Excessive rent increases may lead to relocations, drastically reducing or eliminating mobilehome
owners'equity in their mobile homes,and causing mobilehome owners to lose a substantial portion or all of
their investment.
S. Due to their limited incomes,the large investment in their mobilehomes,the immobility of mobilehomes, and the
shortage of spaces for mobilehomes,mobilehome owners generally have very limited economic bargaining power
concerning rents charged for mobilehome lots.
T. A number of residents of Petaluma mobilehome parks have expressed the concern that they could become homeless
if mobilehome park owners were to impose significant rent increases.
U. Increasing the number of homeless residents in Petaluma,particularly, elderly residents who may be in need
of medical or other care,would create public health and safety risks.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
V. The Mobilehome Residency Law expressly authorizes cities to regulate the setting and/or increasing_of
rents for the use and occupancy of a mobilehome space, subject to certain exceptions.This chapter is intended
to comply with the Mobile Home Residency law and all other applicable state and federal laws and
regulations.
W. The city council intends that this chapter be interpreted and enforced fairly and equitably,in a nondiscriminatory
manner,and in accordance with constitutional requirements.For these reasons it is intended that the respective
provisions of the inaneethis chapter be liberally construed and be considered severable,and that if any portion of it
is declared unconstitutional or unenforceable,the remaining portions shall remain valid and in effect.
X. The purposes of this chapter is-teinclude:
1. Preventing the imposition of exploitive,excessive and unreasonable mobilehome space rent increases;
2. Assisting in alleviating the unequal bargaining power which exists between mobilehome park residents and
mobilehome park owners;
3. Providinge mobilehome park owners with a guaranteed rate of annual space rent increase which aeeufately
refleetsover time adequately adjusts mobile home space rents to account for the impact of the Fate of inflation on
park owner rates of return;
4. Providinge an efficient and speedy process to ensure mobilehome park owners receive a fair,just and
reasonable rate of return in cases where the guaranteed annual space rent increases provided by this chapter prove
insufficient to realize a reasonable rate of return;
5. In the absence of a lawful vacancy,preventig excessive or exploitive rent increases upon the transfer of a
mobilehome-on-site(i.e.,on the mobilehome pad)to a new mobile-home owner while at the same time providing
a process whereby mobile-home park owners are assured of receiving a fair and reasonable return.
6.50.020 Definitions.
For purposes of this chapter,the following terms shall beare defined as follows. Any reference to statutes includes any
regulations promulgated thereunder as the courts have construed such statutes and regulations,as such statutes and
regulations may be amended from time to time,and any successor statutes and regulations.:
A. "Affected tenants"means those tenants who qualify for the rent control and other protections of this chapter and
whose space is not exempt from the requirements of this chapter eoveredibypursuant to a valid lease meeting the
requirements a outline afor exemption from local rent control in Section 798.17 b of the California Civil Code or
otherwise legally exempt f-,,.,, leeal rent, nt- i regulatianqpplicable law. Siae.tenants are to be notified that.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
to ha-ve only one "affeeted tenant" for-administfative convenienee to the park owners. The r-efer-enee to "all affeete
tenants"wili r-efer-to one r-epr-esentative tenant from eaeh space sttbjeet to the proposed rental iner-ease.
B. "Arbitrator" shall mean a person(1)who is neither a tenant as that term is defined in this chapter nor who 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 an e'e. te up blic official subject to that act,and-(2),who has experience in anal
of financial records,and(3)a-peFsen-whom the clerk of the Dot..,,, .,., mobilehome space rent stabilization program(see
subsee fie E below) determines meets one of the following criteria:
1. Completion of a Juris Doctor or equivalent degree from a school of law and completion of a formal course of
training in arbitration which,in the sole judgment of the clerk, ^r designee of the Petaluma mobilehome space
rent stabiliz ti r provides that person with the knowledge and skills to conduct a space rent dispute
arbitration in a professional and successful manner; or
2. Completion of at least three arbitration proceedings for a Superior Court or other public entity that involved
issues the clerk, or designee of the Petaluma mobile Lome spaee rent stabilization pregr-a r finds similar to those
raised in space rent dispute arbitrations;or-
3. Having sServed as a California Superior eF ffmaieipal court judge,administrative law judge,appellate judge,
or judge pro temporej*dge.
C. 'Base rent"means the authorized rent,calculated pursuant to the provisions of Section 6.50.030,plus any rent
increase allowed under this chapter or any rent adjustment attributable to vacancy decontrol as provided in Section
6.50.230 of this chapter6—.50.7240.
D.
E. "Clerk"means the clerk of the Petaluma mobilehome space rent stabilization program,who shall be the city
manager or his-�their designee.
F. "Capital improvements" are those improvements that directly and primarily benefit and serve the existing
mobilehome owners by materially adding 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 remaining life of the improvement to the property pursuant to
the IRS Code and its regulations. "Capital improvements"exclude ordinary maintenance and repairs.
G. "Consumer Price Index" or"CPI"means the Consumer Price Index for all Urban Consumers San Francisco-
Oakland Area,published by the U.S.Department of Labor,Bureau of Labor Statistics.
H. "Housing service"means a service provided by the owner related to the use or occupancy of a
mobilehome space,which is neither a capital improvement nor substantial rehabilitation as those terms are
defined herein,including but not limited to,repairs,replacement maintenance,painting, lighting,heat,water,
laundry facilities,refuse removal,recreational facilities,parking, security service, and employee services.
Housing services include those services that the mobilehome park owner is required to provide pursuant to:
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
1. California Civil Code Sections 1941.1 and 1941.2.
2. The Mobile Home Residency Law, California Civil Code Section 798 et sec.
3. The Mobile Home Parks Act,California Health and Safety Code Section 18200 et sec.
4. The landlord's implied warranty of habitability,which cannot be contractually excluded or waived.
5. An express or implied agreement between the mobilehome park owner and the tenant.
"Housing services"do not include legal fees,mortgage payments whether for principal,interest, or both,
bonuses of any nature paid to mobilehome park employees,penalties,damages,or interest assessed or awarded
for violations of this chapter or any other law,or any expenses for which the mobilehome park owner has been
reimbursed by any security deposit,insurance settlement,judgment for damages, settlement,or an,, othe
method.
IY. "Initial rent increase"means the first rent increase imposed by a mobilehome park owner after the effective date of
this chapter.
A "Mobilehome"means a structure designed for human habitation and for being moved on a street or highway under
permit pursuant to Section 35790 of the California Vehicle Code in accordance with California Civil Code Section
798.3. "Mobilehome"includes a manufactured home,as defined in Section 18007 of the California Health and Safety
Code,and a"mobilehome";as defined in Section 18008 of the California Health and Safety Code,but does not include
a recreational vehicle,as defined in co,.+;,,, moo 2n of ho r.,rf...,;,, r:.,a r,.ao and Section 18010 of the California
Health and Safety Code,or a commercial coach, as defined in Section 18001.8 of the California Health and Safety
Code except when such a vehicle has continuously remained within a mobilehome park for a period in excess of nine
months.
K3. "Mobilehome park"means any area of land within the incorporated areas of the city of Petaluma where two or
more mobilehome spaces are rented,or held out for rent,to accommodate mobilehomes used for human habitation
subject to and in accordance with all applicable land use regulations.
LK. "Mobilehome park owner" or"owner"means any owner,lessor,ef�sublessor, operator or manager of a
mobilehome park in the incorporated areas of the city of Petaluma who receives or is entitled to receive rent for the use
or occupancy of any mobilehome space thereof,and the representative,agent or successor of sueh owner loss,,. of
s��'�any of the foregoing who reports to the Internal Revenue Service any income received or loss of income
resulting from such ownership or claims any expenses credits,or deductions because of such ownership.
ML. "Mobilehome space"means any site within a mobilehome park located in the incorporated areas of the city of
Petaluma 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 subject to all applicable land use regulations except
(1)sites rented together and concurrently with a mobilehome provided by the mobilehome park owner and(2) "new
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
construction" as defined by California Civil Code Section-798.7 5. The term"mobilehome space" shall also
include, for purposes of this reni stabiliz t r chapter-and aeeompanying fee ordinance,rentable spaces within
mobilehome parks which have been occupied by a"recreational vehicle" as defined by California Civil Health and
Safety Code Section 799-.2418010 for a period of nine months or more.
NM. "Mobilehome tenant" or"tenant"means a tenant, subtenant, lessee,or sublessee,or any other person entitled to
the use or occupancy of any mobilehome space not otherwise a party to a rental agreement exempt from regulation
under this or-din e—chapter pursuant to Civil Code Section 798.17 or other applicable laws or regulations.
ON. "Net operating income"means net operating income as defined in Section 6.50.110(A)of this chapter.
0. "Ovmer-"means a mobilehome park owner.
P. "Party" as used in this chapter refers to any affected mobilehome tenant and/or owner involved in proceedings
under this or-din ieechapter.
Q. "Percent change in Consumer Price Index"means the annual percent change in the Consumer Price-I
(hereinafter-"GPI"),calculated to the nearest tenth.For the first percent change in CensumeFPriee-Index,it shall be
calculated using the CPI published for the month of March,issued in the month of April.In the event an index is not
published for the month of March,the closest preceding month for which an index is published shall be used.
Subsequent yearly percent changes in CPI shall be calculated to the nearest tenth,published for the month of July,
issued in the month of August. In the event that an index is not published for the month of July,the closest preceding
month for which an index is published shall be used.It is the intent of this or-din chapter to fix the CPI in the
beginning of the fiscal year,for the rest of the fiscal year barring an unforeseen failure to publish a CPI for the month
of July.
R. "Rent," "Mobilehome space rent"and"space rent"means the total consideration,including any bonus,benefit.or
gratuity.demanded or received by a mobilehome park owner for or in connection with the use or occupancy of a
mobilehome space or any housing services provided with the mobilehome space. Space rent shall not include any
amount paid for the use or occupancy of a mobilehome dwelling unit.unless the amount paid for the use or occupancy
of a mobilehome is or includes consideration paid to a mobilehome park owner under a rental agreement or other
document evidencing tenancy of the mobilehome.means m,.,.fleh me space rent.
S. "Rent increase"means any additional space rent demanded of or paid by a tenant for a mobilehome space including
any reduction in housing services without a corresponding reduction in the amount demanded or paid for rent. Said
increase shall be(1)uniform in percentage rate relative to current base rent;or(2)uniform in dollar amount relative to
base rent.
T. "Rent stabilization administration fee"means the fee established from time to time by resolution or ordinance of the
Petaluma city council in accordance with the provisions of Section 6-59.4606.50.1670 of this chapter.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
Mobil&how dwellifiganit, paid for the ose or
UV. "Substantial rehabilitation"means that work done by an owner to a mobilehome space or to the common areas of
the--a mobilehome park,exclusive of a capital improvement as that term is defined lain this chapter,the value of
which exceeds two hundred dollars and which is performed.. to secure compliance with any state or local law or
to repair damage resulting from fire,earthquake,or other casualty or natural disaster,to the extent such work is not
reimbursed by insurance.
Vim. "Tenant-to-be"means a person who is not currently a tenant in a mobilehome park but is a prospective
mobilehome space tenant who desires the use of a mobilehome space as defined in this chapter and has presented
hemself to the park owner as such.
this ehaptef-;
m.a 1949 rlrc §1 (...,.4) i 994
6.50.030 Base rent—Initial calculation.
A. Except as hereinafter provided,an owner shall not demand,accept, or retain rent for a mobilehome space
exceeding the rent in effect for said space on the effective date of this chapter. If a previously rented mobilehome space
was not rented on the effective date of this chapter,the owner shall not,except as hereinafter provided,demand, accept
or retain rent for said space exceeding the rent in effect during the last month the space was rented prior to the effective
date of this chapter.
B. Any mobilehome park owner who disputes that the initial base rent established by subsection A is sufficient to
cover operation and maintenance costs,rehabilitation costs,and capital improvement costs,and still provide the owner
a fair and reasonable return,may seek adjustment to said initial base rent by submitting a written request to the clerk
requesting an opportunity to adjust said initial base rent and shall supply both the clerk and each affected tenant with
the notice of request along with the grounds for any such request. The matter shall be submitted to arbitration as
prescribed in Section 6.50.060(E)and-through FG of this chapter.
6.50.040 Residential rent increase limitations.
A. Except as provided in subsections B-C or GD,or otherwise expressly authorized in this chapter,the space rent
payable for use or occupancy of any mobilehome space shall not be increased within twelve months of the effective
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
date of the preceding rent increase.Except as provided in subsection E or otherwise expressly authorized in this
chapter,no initial rent increase shall be imposed sooner than twelve months after the last preceding rent increase
regardless of whether the preceding rent increase was effective prior to the effective date of this^chapter. Said
increase shall be the lesser of.
1. One hundre Seventy percent of the percent change in the CPI; or
2. Four percent.
If the change in the CPI is negative,no rent increase is permitted.
I. Notice by clerk. The allowable rent increase shall be annually calculated by the clerk and posted
by August 15th of each year or as soon thereafter as is reasonably practicable in the Petaluma City
Hall and on the city's website,and shall be provided to any mobile home park owner or tenant
who requests the annual rent increase limit.
2. Notice by moblehome park owners.A copy of the clerk's notice of the allowable rent increase for
that year shall be posted in a prominent place by each park owner in each mobilehome park or
provided to the tenants within five working days after it is received by the mobilehome park
owner.
B.An increase in a space rent pursuant to subsection A above,may only, b�posed upon registration of the
mobilehome space in the city's registry system,pursuant to Section 6.50.2240 of this chapter,payment of the
required annual rent stabilization administration fee pursuant to Section 6.50.16-70 of this chapter, and
otherwise subject to and in compliance with all applicable requirements of this chapter and other applicable
federal, state,and local laws and regulations.
CB. If a park owner wishes to apportion to each space on a pro rata basis the allowable percentage of any current rent
stabilization administration fee, in addition to any increase of space rent in accordance with preceding subsection A.the
following provision shall apply:
1. The owner shall provide to all affected tenants documentation supporting the allowable amount to be collected
in order to recover a portion of rent stabilization administration fees.At a minimum such documentation shall
include:billing notices or other equivalent documents from the city imposing the rent stabilization administration
fee; a copy of Section F�504-606.50.1670 of thise chapter which authorizes the apportionment of rent stabilization
administration fees; and the calculations used by the owner to apportion the cost of the allowable percentage
among the affected tenants. In addition,the owner shall provide all affected tenants with the address and telephone
number of the clerk and the fact that th-e-affected tenants is-are encouraged to contact the clerk for an explanation
of the provisions of this chapter.
2. A rent increase approved pursuant toin accordance with the provisions of this subsection and in aceor-danee
rthe procedure set forth in Section 6.50.170-6—.50-.060-_of this chapter for applying a portion of the rent
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
stabilization administrative fee shall not be considered part of the rent base upon which future rent increases can
be made.
DC. In the event an owner wishes to increase the rent payable for any mobilehome space within the a twelve month
period more thanin excess of the amount permitted in subsection A for any reason other than that stated in subsection
CR herei of this section,the procedures set forth in Sections 6.50.050 and 6.50.060 shall be followed to establish why
such an increase is necessary.
within the twelve month period nior-e than thive hundred per-cent of the per-eent ehange in the C-P!,ar-bitFation shall
automatieally be FequiFed to show good eause why such an inOFease is necessary. The arbitrator may reduce their
proposed increase to a figure(which may be 0)determined based upon the preponderance of the evidence submitted by
the paFk,,, ne-r-A-r his4hor.-epFeseat tive to be reasonably necessary to result in the park owner receiving_a fair return
upon investment.
ED. A notice of rent increase given by an owner pursuant to subsection 4750:040(A),B or E-D of this ehaptersection
shall be given in writing at least ninety days before any rent increase is to take effect.
FE. The initial rent increase as defined by Section 6.50.020(IY-)may be allowed within twelve months of the effective
date of the preceding rent increase wheFe if the mobilehome park owner can clearly establish to an arbitrator based on
the preponderance of the evidence submitted that extraordinary circumstances exist which require an increase to assufe
result in the mobilehome park owner i-s--receiving a fair and reasonable return. In the event an owner wishes to increase
rent payable for any mobilehome space under this subsection FE,the procedures set forth in Sections 6.50.050 and
6.50.060 shall be fell awedUply.
G.A mobilehome park owner who does not impose an annual rent increase or a portion of the permitted annual rent
increase in any twelve (12)month period, as provided in this section,waives the permitted annual rent increase or
the remaining portion of the permitted annual rent increase, for the remainder of the tenancy.
6.50.050 Information to be supplied to tenants and tenants-to-be.
A. Within thirty days after the operative date of this chapter and any amendments to this chapter and upon rerenting of
eaelra�mobilehome space thereafter,the owner shall supply each affected tenant or tenant-to-be with a current copy
of this chapter.
B. Whenever than owner serves a notice of rent increase,except a notice of rent increase provided pursuant to
Section 6.50.040(A)of this chapter,the owner shall at the same time and in the same manner serve the affected tenant
or tenant-to-be with a notice that sets forth all of the following information:
1. The amount of the rent increase both in dollars and as a percentage of existing rent and documentation
supporting the level of increase desired, including at a minimum: a summary of the unavoidable increases in
maintenance and/or operating expenses;a statement of the cost,nature, amortization, and allocation among
mobilehome spaces of any substantial rehabilitation or capital improvement; a summary of the increased cost of
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
the owner's debt service and the date and nature of the sale or refinancing transaction; a summary of the owner's
net operating income of the preceding twenty-four months and other relevant information that supports the level of
rent increase desired;
2. The identity of all other affected tenants and the spaces which they rent and a roster of tenants in the park
occupying recreational vehicles in place for more than nine months; and
3. The address and telephone number of the clerk and(a)the fact that the tenant is encouraged to contact the
clerk for an explanation of the provisions of this chapter; (b)documentation supporting the level of increase is on
file with the clerk;
4. A copy of the official petition form as prepared and provided by the clerk whieh initiates the proees
established by this .,,-d:naneee
5. In addition,park owners shall place on file with the clerk two copies of: d-A-e tf ont do s,,,.pet4ing the level a
substantial rehabilitation or-eapital impr-ovement; a surmnar-y of the iner-eased eost of the owner's debt servie
the date and natum of the sale or-Fefinaneing tr-ansaetion; a summary of the owner-'s net operating ineome of the
the
same information specified in paragraph 1 of this subsection(B). These documents will be available for inspection
at the offices of the clerk.
6 if.,„':,able Notification that the proposed rent increase exceeds throe hundred peFeert of the change it the
CPIthe annual rent increase permitted pursuant to Section 6.50.040(A), and that arbitration is deemed
automatically required by the provisions of this chapter without any need to file an
arbitration petition. Such notices shall bear the following language: "ARBITRATION OF THE PROPOSED
INCREASE IS AUTOMATICALLY REQUIRED IN THIS MATTER BY OPERATION OF LAW. PLEASE
CONTACT THE CLERK FOR MORE INFORMATION ON THE ARBITRATION PROCESS."Effefteeas use
of this nefiee shall be regarded as an iffeveeable stipulation to the jttr-isdietiea of the afbitfaten
C. The park owner shall also serve any tenant-to-beas aofi oa in eo,.t;,.n 6 50 r»nivO with a separate"RENTAL
OPTION'notice which sets forth t hin capital letters setforththe notice specified in Section 6.50.070,
Rights of"tenant-to-be."
D. Any owner failing to provide an affected tenant or tenant-to-be and the clerk with the information,documents,and
notices required by this section shall not be entitled to collect any rent increase otherwise authorized by this chapter
from that tenant nor to any rent increase that might otherwise be awarded by an arbitrator. Such failure by the owner
shall be a defense in any action brought by the owner to recover possession of a mobilehome space or to collect any
rent increase from the tenant.Any owner may cure the failure to serveiee any notice or nw-et-satis the obligation to
provide information to a tenant or tenant-to-be.ethat is required under this chapter by giving such notice or
information before initiating an action for possession of the space or collecting any rent increase or binding a tenant to
be to a month-to-month rental/long-term lease election otherwise authorized hereunder.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
I-P. '40; -Aff-reoute'd tP-,4;;4A*A,A,hA a-f-a Fem#inefe-Ase,is entifled—to file a petition for spaee refit review as
pr-ovided in Seetion 6.50.060 of this ehapter-in spite of the faet that the owner-has failed to provide the affeeted
tenant(s)with all the information,doeuments and notiees required by this ehapten
(Ord 1949 rlrc a i (.,aft), i 994
6.50.060 The rent dispute resolution process.
A. Tenant's Right to Contact Clerk. The4enants may contact the clerk of the eity f Pet l-u- ..,..^,.ilehame space rent
*"''i'""*iM pr-^^ram for an explanation of the provisions of this chapter.
B. Petition. If the tenants dispute any rent finer-eases,the tenantsan owner seeks to increase space rent above the rent
authorized by Section 6.50.040(A),the owner or their representative smust file with the clerk a petition for space
rent review and a copy of the notice of rent increase,ie within twenty-one days after the date upon which the
rent increase notice is received.
^ent^r'"" -Afk^*^a to*aats.Upon the filing of a petition,the rent increase is not effective and may not be
collected until and only to the extent it is awarded by an arbitrator or until the petition is abandoned except for that
portion of the rent increase that equals the increase "^•a'''e inpermitted pursuant to Section 6.50.040(A�-,haljbe
lleeta le as nefieea.As used herein,the term"abandoned"refers to lack of prosecution of the arbitration by the
^WI,Anme tenant^'owner or owner's representative(s). ^~ auto atie, ar-bitnition based upon^ thfee' uadfe p ~*
11proseetttion"refers to aetively ptwstting neeessafy steps toward preparing the tenants' ease for-the arbitration hearing.
C. Contents of Petition.
1. Petitions for space rent review shall must set forth the total number of affected rented spaces in the
mobile-home park,slyidentify the space occupied by each tenant and shall state the date upon which the notice
of the rent increase was received by the tenant(s)and include all other information specified in the official petition
form as prepared and provided by the clerk.
2 ^f4o.obtaining the .oquir-e ignatufes, The texatowner{o shall deliver the petition or mail it by registered or
certified mail to the clerk at the following address: Petaluma City Hall, 11 English Street,Petaluma,California
94952(or successor address or agency).No petition shall be accepted unless it is complete ^eeemp nie by he
*^number-of signatures and is received in the office of the clerk within the twenty-one day period set forth
in subsection B above. The eler-owner shall provide a copy of the completed petition form to the arbitrator,and
the service providers specified in the petition form both ties and the.af-b-it-r *eff f Ah-P..;a, ^r within fiw—seven
working days of filing the petition with the city.
D. Information Questionnaire. After the clerk has accepted a petition for space rent review,the clerk shall remit to the
owner and tenants an information questionnaire in such form as the clerk may prescribe. The petitioning owner and
affected tenants must return the completed information questionnaire must '^vewmoa to the clerk at least five working
days prior to the date scheduled for the arbitration hearing of the petition by the.,,.bitf *^r.The clerk will provide
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
cEopies of the completed information questionnaires shall be,...,...i to owner,the affected tenants and the arbitrator
and the opposing pai4 .
E. Assignment of Arbitrator and Hearing Date. Upon receipt of tea rent review petition, of i the event of^^
at4eri,atie.fbit,atio.,,or upon an affected tenant's claim of a vacancy control violation where an unauthorized rent
increase has been sought,or upon an owner's request to adjust the initial base rent pursuant to Section 6.50.030(B),the
clerk shall,within five-seven working days,assign an arbitrator. The clerk shall set a date for the arbitration hearing no
sooner than five-fourteen days nor later than te4rsix working days after the arbitrator is assigned; except that,no
arbitration hearing shall be set in December,except in cases of exceptional,unforeseen circumstances upon a showing
of good cause by the petitioning owner as determined in the sole discretion of the arbitrator. The owner and affected
tenant(s)shall be notified immediately in writing by the clerk of the date,time,and place of the hearing and this notice
shall be served electronically and either in person or by ordinary mail. The arbitrator may grant or order one
continuance each not to exceed fifteen days from the hearing date set by the clerk to the petitioning owner and affected
tenants. The arbitrator may grant further continuances that are stipulated to by the petitioning owner and the affected
tenants.
F. Meet and Confer.At least 10 days before the date of an arbitration hearing,affected mobilehome tenants
and mobilehome park owners and/or their representatives shall meet and confer. The time,place and date of
the meeting shall be agreed to by the parties to the arbitration or,if the parties cannot agree, shall be
determined by the clerk.At the meeting the parties and/or their representatives shall exchange the
documentary evidence that they in good faith then know will be used to support their respective positions in
the 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 tenants at the meet and confer meeting. The parties
may request that the clerk provide a mediator,applying the proceeds of the fees collected pursuant to Section
6.50.16-0 of this chapter,to assist with the meet and confer meeting. The arbitrator may deny a proposed rent
increase based on the petitioning owner's failure to participate in good faith in the meet and confer process,or
may rule as to the admissibility or inadmissibility in the arbitration of information not provided in the meet and
confer meetingas s required.
gE. Arbitration Hearing.
1. In any arbitration pursuant to this chapter there shall be a rebuttable presumption that the annual net operating
income earned by a mobilehome park owner and rent increases permitted in accordance with Section 6.50.040(A)
of this chapter provide the mobilehome park owner with a reasonable return. Mobilehome park owners shall bear
the burden to prove to the arbitrator based upon the preponderance of the evidence the reasonable necessity of any
rent increase sought in addition to that permitted pursuant to Section 6.50.040(A)to earn a reasonable return.
2 The owner and tenant(s)may appear at the hearing and offer oral and documentary evidence.Both the owner
and tenant(s)may designate a representative or representatives to appear for them at the hearing. The afbitrate
fnay grafA or-eFdef one eefitifmanee not to exeeed five days to eaeb pai4y&efn the date of the hearing.A fufther-
eVentinuffineVe,may be granted if stipulated to by all the p;-44#iLa,,;. ThLa,hurden of pr-eving that the ametfflt of r-en
ine-,Feease,is i-a'-'e,sH-A11 be,n-;the,@ r b ,a fiaor-A-4eo,fthe,e id-e-, ,.o. The hearing need not be
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
conducted according to technical rules relating to evidence and witnesses. The rules of evidence and manner of
producing evidence shall be those rules set forth in Section 11513 of the California Government Code for the
conduct of hearing under the Administrative Procedure Act. These rules may be relaxed at the discretion of the
arbitrator in the interest of justice.
2. The arbitrator shall,within fourteen days of the hearing, submit by mail and electronic mail a written statement
of decision and the reasons for the decision to the clerk who shall forthwith distribute by mail and electronic mail
copies of the decision to the owner and affected tenant(s). The arbitrator's statement of decision shall determine
set forth the amount of rent increase,if any,in excess of that permitted in accordance with Section 6.50.040(A)o
this chapter,whie4rthat is reasonably necessary to provide the owner a reasonable return in accordance with
paragraph 1 of this subsection and other applicable based upon all*' ^provisions of this chapter and other
applicable laws and regulations.
3. T4ve-An arbitrator shall not allow more than one rent increase per park per twelve month period unless the
owner can clearly establishes based on the preponderance of the evidence that t1+e-a subsequent rental increase is
necessary to cover costs of operation,maintenance,capital improvements or substantial rehabilitation not
reasonably foreseeable at the time notice of the preceding rent increase was given so as to obtain a reasonable
return.
4. The decision of the arbitrator,rendered in accordance with this section, shall be final and binding upon the
owner and all affected tenants. The decision of the arbitrator will be subject to the provisions of California Code of
Civil Procedure Section 1094.5.
5. Any party may have electronic recording equipment or a court reporter present to record and prepare a
transcript of the hearing before the arbitrators;however,such equipment or reporter shall be provided at that
party's own expense,lerand,no electronic equipment or court reporter is required to conduct the arbitration.
6. The arbitrator is authorized to modify the basic ime periods set forth herein in this chapter at ��heir
discretion to promote the purposes of this pregrarchapter provided a final decision is rendered within ninety days
of the notice of proposed rent increase.
7. Any procedural or jurisdictional dispute regarding the preeesse&-proceedings set forth lain in this section
may be decided by the arbitrator.
m.a 1949NGc §1 (.......) 1994
6.50.070 Rights of "tenant-to-be."
Any person who is a"tenant-to-be" as defined in Section 6.50.020(VU-X)must be offered the option of renting a
mobilehome space in a manner which will permit the "tenant-to-be"to receive the benefits of*"^me-b- e-h-A- e space
progr- mthis chapter which includes,but is-are not limited to,rental of a mobilehome space on a
month-to-month basis,and a new base rent as set forth in Section 6.50.23040(B).="' se-Tenants to be cannot be
denied the option of a tenancy Vve_e months or-less in a,,,- subject to the rent increase and other protections
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
contained in this chapter. Park owners shall provide each"tenant-to-be"with a-the following written notif4ea4ion
of the option whieh shall make the following reeit do :otice,along with a copy of California Civil Code Section
798.17,each in all caps and at least 10 pt.type: "UNDER PETALUMA MUNICIPAL CODE SECTION 6.50.070,
YOU ARE LEGALLY ENTITLED TO ELECT A MONTH-TOMONTH TENANCY OVER ANY OTHER LONGER
PERIODIC TENANCY.YOU ARE ADVISED THAT YOU MAY NOT BE ENTITLED TO RENT
STABILIZATION(RENT CONTROL)PROGRAM BENEFITS IF YOU ELECT A LEASE OF MORE THAN
TWELVE MONTHS IN DURATION IF THAT LEASE MEETS THE REQUIREMENTS OF CIVIL CODE
SECTION 798.17 WHICH HAS BEEN ATTACHED HERETO."Any effort to circumvent the requirements of this
section shall be unlawful,and a violation of this chapter subject to the remedies in Section 6.50.190,as well as an
unfair business practice subject to enforcement under Business and Professions Code Section 17200 et seq. (Ord.1949
NCS§i (..aft) 1994
6.50.080 Subpoena power.
Subpoenas,including subpoenas duces tecum,requiring a person to attend a particular time and place to testify as a
witness,may be issued in connection with any dispute pending before an arbitrator under this chapter, and shall be
issued at the request of the clerk,an arbitrator,the tenant(s)or the owner. Subpoenas shall be issued and attested by the
city clerk.A subpoena duces tecum shall be issued only upon the filing with the city clerk of an affidavit showing good
cause for the production of the matters or things desired to be produced, setting forth in full detail the materiality
thereof to the issues involved in the proceedings,and stating that the witness has the desired matters or things in his or
her possession or under his or her control,and a copy of such affidavit shall be served with the subpoena.Any
subpoena or subpoena duces tecum issued pursuant to the provisions of this chapter may be served in person or by
certified mail,return receipt requested,and must be served at least five days before the hearing for which the
attendance is sought. Service by certified mail shall be complete on the date of receipt.Any subpoena or subpoena
duces tecum issued pursuant to the provisions of this^chapter shall be deemed issued by and in the name of
the city council of the city of Petaluma. (Ora 1949 NGS§1 (..art) 1994
6.50.090 Consolidation of petitions.
As soon as possible after a petition has been filed with respect to mobilehome spaces which are within a single park,
the clerk shall,to the extent possible, consistent with the time limitations provided herein,consolidate petitions
iHN,@1N,if1g to ton.,#� Mn A I GAG XTCS § i,..,,-.� l oon 4
6.50.100 Standards of review.
In evaluating tea space rent increase proposed er esed-by than owner that is in excess of the rent permitted in
accordance with Section 6.50.040(A)of this chapter,the arbitrator may consider the following factors or any other
factors deemed relevant to-by-the arbitrator may be eensi oroa in determining whether the proposed space rent increase
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
is reasonably necessary based on the preponderance of the evidence to provide the owner a reasonable return in
accordance with Section 6.50.060 and other applicable provisions of this chapter:
A. Beneficial iIncreases in maintenance and operating expenses directly benefitting the tenants,including but not
limited to the reasonable value of the owner's labor and any increased costs for services provided by a public agency,
public utility,or quasi-public agency or utility,provided,however,that any increased costs in rent stabilization
administration fees shall be subject to the provisions of Sections 6.50.040(C-B)and 6.50.160 herei of this chapter.
B. The substantial rehabilitation or the addition of capital improvements,including the reasonable value of the
owner's labor, as long as such rehabilitation or improvement has been completed and is:
1. Distinguished from ordinary repair or maintenance;
2. For the primary benefit,use,and enjoyment of the tenants;
3. Permanently fixed in place or relatively immobile and dedicated to the use of the property;
4. Not coin-operated nor one for which a"use fee" or other charge is imposed on tenants for its use;
5. Cost-factored and amortized over the good faith estimate of the remaining useful life of the rehabilitation or
improvement;
6. Does not constitute maintenance of the infrastructure of gas or electrical lines within the mobilehome park for
which the public utility has permitted the park owner a special premium with the intent that it be used to replace or
otherwise maintain the system within the mobilehome park.
C. Increased costs of debt service due to a sale or in-� refinancing of the park within twelve months of the
increases provided that:
1. The sale or refinancing is found to have been an arm's length transaction;
2. The proceeds of such purchase money loan or refinancing mare found to have been used for park
improvements or similar park-related uses that are of direct benefit to the tenants,and not merely incurred to fund
the owner's purchase or refinancingof f the park;
3. The aggregate amount from which total debt service costs arise constitutes no more than seventy percent of the
value of the property as established by a lender's appraisal.
D. The rental history of the space or the park of which it is a part,including:
1. The presence or absence of past increases;
2. The frequency of past rent increases;
3. The occupancy rate of the park in comparison to comparable parks in the same general area.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
E. The physical condition of the mobilehome space or park of which it is a part,including the quantity and quality of
maintenance and repairs performed during the preceding twelve months.
F. Any increase or reduction of housing services since the last rent increase.
G. Existing space rents for comparable spaces in comparable parks.
H. A decrease in"net operating income" as defined in Section 6.50.110(A).
I. A fair return on the property prorated among the spaces of the park.
J. Other financial information which the owner is willing to provide.
K. Any costs incurred as a result of a natural disaster and only to the extent such costs have not been reimbursed to the
owner by insurance or other sources.
L. Notwithstanding any other provision to the contrary,no provision of this section or this chapter shall be applied to
prohibit the granting of a rent increase that is demonstrated to be necessary to provide an owner with a fair and
reasonable return.
6.50.110 Net operating income.
I*-For purposes of the arbitrator's o" evaluation of a space rent increase imposed-proposed by an owner in
excess of the increase permitted in accordance with Section 6.50.040(A)of this chapter*^maintain the^lm-nee-'s net
epeFating income ftem the p ,the following definitions and provisions shall apply:
A. "Net operating income" of a mobilehome park means the gross income of the park less the operating expenses of
the park.
B. "Gross income"means the sum of the following:
1. Gross space rents,computed as gross space rental income at 100%occupancy;plus
2. Other income generated as a result of the operation of the park,including,but not limited to,fees for services
actually rendered;plus
3. Revenue received by the park owner from the sale of gas and electricity to park residents where such utilities
are billed individually to the park residents by the park owner. This revenue shall equal the total cost of the
utilities to the residents minus the amount paid by the park owner for such utilities to the utility provider;minus
4. Uncollected space rents due to vacancy and bad debts to the extent that the same are beyond the park owner's
control.Uncollected space rents in excess of three percent of gross space rent shall be presumed to be
unreasonable unless established otherwise to the reasonable satisfaction of the arbitrator based up on the
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
preponderance of the evidence,and shall not be included in computing gross income.Where uncollected space
rents must be estimated,the average of the preceding three years experience shall be used.
C. "Operating expenses"means:
1. Real property taxes and assessments.
2. Utility costs to the extent that they are included in space rent.
3. Management expenses including the compensation of administrative personnel,including the value of any
mobilehome space offered as part of compensation for such services,reasonable and necessary advertising to
ensure occupancy only,legal and accounting services as permitted herein,and other managerial expenses.
Management expenses are presumed to be not more than five percent of gross income,unless established
otherwise to the reasonable satisfaction of the arbitrator based on the preponderance of the evidence.
4. Normal repair and maintenance expenses for the grounds and common facilities including but not limited to
landscaping,cleaning and repair of equipment and facilities.
5. Owner-performed labor in operating or maintaining the park.In addition to the management expenses listed
above,where the owner performs 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 based up on the preponderance of the evidence,that such a limitation would be
substantially unfair in a given case.A park owner must devote substantially all of his or her time,that is,at least
forty hours per week,to performing such managerial or maintenance services in order to warrant the full five
percent credit of his or her labor as an operating expense.No credit for such services shall be authorized unless a
park owner documents the hours utilized in performing such services and the nature of the services provided.
6. Operating supplies such as janitorial supplies,gardening supplies, stationery,and so forth.
7. Insurance premiums prorated over the life of the policy.
8. Other taxes,fees, and permits,except as provided in Section 6.50.160 herein.
9. Reserves for replacement of long-term improvements or facilities,provided that accumulated reserves shall not
exceed five percent of gross income.
10. Necessary capital improvement costs exceeding existing reserves for replacement.A park owner may include
the cost of necessary capital improvement expenditures which would exceed existing reserves for replacement.A
necessary capital improvement shall be an improvement required to maintain the common facilities and areas of
the park in a decent,safe,and sanitary condition or to maintain the existing level of park amenities and services.
Expenditures for necessary capital improvements to upgrade existing facilities shall be an allowable operating
expense only if the park owner has:
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
a. Established upon written verification or by other competent evidence to the satisfaction of the arbitrator
based on the preponderance of the evidence that the cost of the capital improvements provided to the park
tenants,for their general use,is factually correct as claimed.
b. Said capital improvements are wholly compensable to the park owner upon appropriate amortization of
their cost,together with a reasonable return upon the capital improvement investment made by the park
owner as determined by the arbitrator based on the preponderance of the evidence.
c. Any capital improvement expenses shall be amortized over the reasonable life of the improvement or
such other period as may be deemed reasonable by the arbitrator under the circumstances.In the event that
the capital improvement expenditure is necessitated as a result of an accident,disaster,or other event for
which the park owner received insurance benefits,only those capital improvement costs otherwise allowable
exceeding the insurance benefits may be calculated as operating expenses.
11. Involuntary refinancing of mortgage or debt principal. A park owner may,under the provisions of this
subsection,be able to include certain debt service costs as an operating expense. Such costs are limited to
increases in interest payments from those interest payments made during the period from May 1, 1993 through
April 30, 1994 or the first year such payments were made if the owner acquired the park after July 1, 1992 which
result from one of the following situations or the equivalent thereof.
a. Refinancing of the outstanding principal owed for the acquisition of a park where such refinancing is
mandated by the terms of a financing transaction entered into prior to April 30, 1994,for instance,
termination of a loan with a balloon payment;or
b. Increased interest costs incurred as a result of a variable interest rate loan used to finance the acquisition
of the park and entered into prior to April 30, 1994.
In refinancing,increased interest shall be permitted to be considered as an operating expense only where the park
owner can show that the terms of the refinancing were reasonable and consistent with prudent business practices
under the circumstances.
D. Operating expenses shall not include the following:
1. Debt service expenses, except as provided in subsection C,11 above.
2. Depreciation.
3. Any expense for which the park owner is reimbursed.
4. Attorneys' fees and costs,except printing costs and documentation as required by Section 6.50.050 only,
incurred in proceedings before an arbitrator or in connection with the legal proceedings challenging the decision of
an arbitrator or the validity or applicability of this chapter.
5. The fees and costs incurred by a mobilehome park owner to prepare,file or pursue a petition for space rent
increase in excess of the increase permitted in accordance with Section 6.50.040(A)of this chapter.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
E. All operating expenses must be reasonable.Whenever a particular expense exceeds the normal industry or other
comparable standard,the park owner shall bear the burden of proving the reasonableness of the expense to the
reasonable satisfaction of the arbitrator based upon the preponderance of the evidence. To the extent that an arbitrator
finds any such expense to be unreasonable,the arbitrator shall adjust the expense to reflect the normal industry or other
comparable standard.
6.50.120 Obligations of the parties.
A. If a final decision by an arbitrator finds that a proposed increase or any portion thereof that was previously
inoperative is justified,the tenant shall pay the amount found justified to the owner within thirty days after the decision
is made.
B. If a final decision by an arbitrator finds that an increase or any portion thereof is not justified,the owner shall
refund any amount found to be unjustified,but that had been paid,to the tenant within thirty days after the decision is
made. If such refund is not made within the said thirty days,the tenant may withhold the amount from the next space
rent(s)due until the full amount of the refund has been made.Notwithstanding the foregoing,in the event that the
tenancy of tenant is terminated for any reason prior to full credit against rent,the balance of the credit due the tenant
shall be paid by the owner within thirty days from the date of the terminations of the tenancy.
C. Any sum of money that under the provisions of this section is the obligation of the owner or tenant,as the case may
be, shall constitute a debt and, subject to the foregoing provisions of this section,may be collected in any manner
provided by law for the collection of debts.
(Or-d. 194 o NGS §1 (..art) 1 oon
6.50.130 Excessive rents or demands for excessive rents.
A. It shall be unlawful for a mobile home park owner to demand any rent in excess of the increase permitted
in accordance with Section 6.50.040(A)of this chapter during the period from the filing of a timely_petition
to the date an arbitrator's decision approving such excess is rendered.
B. It shall be unlawful for a mobile home park owner to demand, accept, receive or retain any rent in excess
of the maximum rent allowed by the decision of an arbitrator in accordance with this chapter.
C. It shall be unlawful for a mobile home park owner to demand, accept,receive, or retain any rent in excess
of the maximum rent allowed in accordance with applicable provisions of this chapter.
D. In the event an affected tenant paid rent in excess of that permitted by this chapter,the mobilehome park
owner shall reimburse the affected tenant the entire amount of overpayment in one lump sum payment,which
must be paid by the time the affected tenant's next monthly rent obligation is due.
E.Any violation of the requirements of this section is unlawful and subject to the remedies in Section 6.50.190
of this chapter.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
6.50.130 Tenant's right of refusal.
A tenant may refuse to pay any increase in rent which is in violation of this chapter,provided a petition has been filed
and either no final decision has been reached by an arbitrator or the increase has been determined to violate the
provisions of 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. '^-a. 1949 NGS §' gmi4) 1994.)
6.50.140 Retaliatory acts; tenants' right to organize.
No owner or person acting on behalf of an owner may retaliate against a tenant or tenant-to-be for the tenant's or
tenant-to-be's assertion or exercise of their rights under this chapter in any manner,including but not limited to,
threatening to bring or bringing an action to recover possession of a mobilehome space;engaging in any form of
harassment that causes a tenant to quit the premises;attempting to dissuades a tenant-to-be from freely exercising his er
hertheir legal options to choose a month-to-month or other rental subject to the protections of this chapter; decreasing
housing services;increasing the space rent; or imposing or increasing a security deposit or any other charge payable by
a tenant.Any such retaliation is a violation of this chapter and subject to the remedies specified in Section 6.50.190 of
this chapter. In an owner action against an affected tenant,evidence of the assertion or exercise by the tenant of rights
pursuant to this chapter or under applicable state or federal law within 180 days prior to an alleged act of retaliation bX
or on behalf of an owner shall create a rebuttable presumption that the owner's action is retaliatory. The-Mobilehome
park tenants have a right to organize a tenants association without hindrance from tle�a park owner or person acting on
behalf of a park owner to exercise the rights provided under the provisions of this chapter. This association
may be referred to as"the Park Tenants Association at(Park Name)." (Ord. 1949 NCS§1 (.aA) 1994`
6.50.150 Solicitation of petitions by th-e-park owners to waive tenant rights am
without force or legal effeet within city's program.
The distribution of a petition or other documents seeking to have mobilehome tenants waive rights,abandon a filed
petition or in any way affect the entitlement of the tenants to participate in the rent stabilization process authorized
under the Peta„m Mtmieipal Cede his chapter shall be without force or legal effect within the eity's rent stabiliz 4io
pregr- . Such documents shall not affect the rights of any tenant to participate in the rights,remedies,procedures and
processes set forth in this ee&!gha ter. Efforts to utilize such documents to discourage participation in the city's rent
stabilization program may be deemed retaliatory in accordance with 6.50.140 of this chapter. (Ord. 1949 NGS §' 'pat*`
6.50.160 Rent stabilization administrative Bees/payment.
The costs of administration of this chapter shall be borne by the city of D�subject to reimbursement of the
General Fund by imposition of a rent stabilization administration fee chargeable against each mobilehome space in the
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
city. The costs to which the administrative fee proceeds may e applied include,but are not be limited to: the costs of
administering and enforcing the rent stabilization provisions of this chapter; defending the provisions of this chapter
against litigation;providing mediators for rent disputes;providing grants to mobilehome park homeowners'
associations;and costs of supporting legal and other service providers assisting affected tenants in exercisingtheir
rights under this chapter. PTh"ark owners who pay the city's mobilehome rent stabilization administratives these fees
may pass through to tenants fifty percent of the fees assessed against and paid for a mobilehome space to the tenn
only as set forth herein. The fee pass through must take place no later than twelve months after the park owner is
billed for the program administration fees.Failure to timely pass through fifty percent of the fees assessed against a
mobilehome space pursuant to this chapter will result in the loss of the park owner's right to do so. The remaining fifty
percent of the fees assessed against a mobilehome space shall not be passed on in any way to tenants.Fees passed
through to tenants as herein authorized shall not be considered a part of the rent base upon which future rent increases
can be made.
The fees imposed by this section shall be paid annually. On or before June 1, 1994 of the adoption year of this
^chapter and thereafter on or before April 30th of each and every subsequent year, each mobilehome park
owner shall pay to the city clerk of the city of Petaluma a mobilehome park rent stabilization program administration
fee for each mobile-home space as defined herein,including both occupied and unoccupied mobilehome spaces,in the
owner's mobilehome park,except for those spaces exempt from the requirements of this chapter pursuant to s
rental #in fi'" eemplianee, itL the ro e ats�California Civil Code Sections 798.17 a and(b)or
other appliable laws or regulations. The city clerk of the city of Petaluma forward* mobilehome rent
stabilization fee proceeds to the clerk to administer the mobilehome„ark rent stabilization or-din nee,this chapter.
Further,the city clerk of the eity of Petaluma shall issue to each mobilehome park owner a receipt for payment of the
fees r-equ r-e to be paid heFei .Any person owing money to the city under the provisions of this chapter shall be liable
to an action brought in the name of the city for the recovery of such amount.A service fee equal to one and one-half
percent per month will be charged on all late payments of r-egistration fees„pursuant to this chapter. The city
council shall adopt the amount of the fee and any changes thereto by ordinance or resolution. (Ora 1949 NGS §! (pag),
6.50.170 Exemption from fees.
Any park owner who believes that hefshethey may be entitled to a space fee exemption pursuant to Civil Code Section
798.17(b)or other applicable laws or regulations,having pfovided the„ark tenafA with a legally ro oa long to
-,,,oh is of S,,,.eet to vent stabilization Administration fees, shall provide the clerk with the following
documentation:
1. ago ofof the executed lease for each exempt space claimed;
2. copies of amendments to said exempt lease if any;
3. for a newly constructed space,proof that the space was constructed after January 1, 1990(building permits,etc.).
The clerk's decision to grant fee exemption shall be final.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
(Ord 1 949 NCS R 1 (paf 1 1994.)
6.50.180 Nonwaiverability.
Any provision,whether oral or written,in or pertaining to a rental agreement whereby any provision of this chapter is
waived or modified,is against public policy and void, and a violation of this chapter subject to the remedies in section
6.50.190,except with respect to any rental agreement eomplying with all of the terms and conditions set forth i exempt
from the requirements of this chapter in accordance with Section 798.17 of the California Civil Code(as amended],
other applicable laws or regulations. (Ord. 194 9 NCS§1 (part) 1994.)
6.50.190 Penalties and remedies.
In addition to those penalties and remedies set forth elsewhere in this chapter,and that may be available under other
applicable law or regulations,the following remedies shall apply:
A. Liability for unlawfully retained funds. Any owner who demands,accepts,receives,or retains any money as rent
from a tenant to which the owner is not entitled under the provisions of this chapter shall be liable to the tenant for any
actual damages,attorney's fees,and costs incurred by the tenant as a consequence thereof plus a penalty in the sum of
three times the amount of money the owner accepted,received,or retained in violation of the provisions of this chapter
or five hundred dollars,whichever is greater.
B.Affirmative defense.A park owner's failure to comply with the requirements of this chapter shall be an
affirmative defense to an owner action to recover possession of a mobile home space of an affected tenant.
C. City authority to enforce this chapter.
1. The city shall have the right and authority,but not the duty,to enforce the requirements of this chapter
by bringing actions for injunctive relief on behalf of the city or affected tenants to which this chapter
applies, and by seeking compliance by park owners with the requirements of this chapter through
administrative remedies or by citation.
2. The city in its sole discretion may choose to enforce the provisions of this chapter through
administrative fines and any other remedies provided in chapters 1.10-1.16 of this code. The cites
decision to pursue or not pursue enforcement of any kind shall not affect the rights of affected tenants to
whom this chapter applies to pursue civil remedies for violations of this chapter-
D.No Cause of Action against the City. To the maximum extent permitted by law,nothing in this chapter may
be construed to create a cause of action against the city,or a basis for seeking an award of attorney.
's fees
against the City pursuant to the private attorney general's statute in Code of Civil Procedure Section 1021.5,or
on any other basis arising from or related to an alleged violation of the requirements of this chapter,and/or
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
based on or related to the City's prosecution or enforcement or alleged failure to prosecute or enforce and
alleged violation, and/or based on or related to the Ci, 's implementation or alleged failure to implement the
requirements of this chapter.
E. Remedies provided by this section are in addition to any other legal or equitable remedies and are not
intended to be exclusive.
6.50.200 Rights of affected tenants reserved.
This chapter shall not be construed to limit or curtail any other action or proceeding which may be pursued by an
affected tenant against an owner before any court or other body having jurisdiction thereof. ,
1
6.50.210 neserwed4w
1 Editor's Note2 Fomer-Seetim 6.50.2 10,Termination,previously codified herein and-oeofflit-aining pertions of Ordinatiee No. 194 9 NGS
The eity e0un-e-Al shall re'vie'A'A"the-,eff-Caetiveness of this ehapter-in addr-essing the pr-oblems giving r_-ise to its P,44AP'tMent
least one year-from its enaetmefA.Notiee of the time and plaee of the eity eotmeil's review shall be published at
ten days prior-to said date of general eir-eulation in the eity of Petaluma. (Ord. 1949NCS §1 (paft), 1".
This ehapteir-shall he--.libbee-r-ally eoas4ued to aehieve its puEpose and its validity. if a"pr-A-vission off e4ausse of
this ehapter or-applioation thereof to any. . imstanees is held invalid, stieh invalidity shall not aff-eet Othef
. . IF appliCatiOnS of this ehapter which can be given eff-ect without the invalid pFovision oF application, and to
this end the provisions of this chapter-are deelaFed to be sever-able and are intended to have independent validity. (Ord.
6.50.240 Vacancy control -- Establishment of new base rent.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
A. A mobilehome park owner shall be permitted to charge a new base rent for a mobilehome space whenever a lawful
space vacancy occurs.For purposes of this chapter, a lawful space vacancy is defined as follows:
1. A vacancy occurring because of the termination of the tenancy of the affected mobilehome tenant in
accordance with the Mobilehome Residency Law,California Civil Code Sections 798.55 through 798.60;as
a-monde ;or
2. A vacancy of the mobilehome space arising from the voluntary removal of a mobilehome from the
mobilehome space by the affected mobilehome tenant.A removal of the mobile-home from the space for the
purpose of performing rehabilitation or capital improvements to the space or for the purpose of upgrading the
mobile-home or relocating the mobilehome to a different space within the same park shall not constitute a
voluntary removal of the mobilehome.
B. When a new base rent is established following the vacancy of a mobilehome space pursuant to this subsection,in
addition to providingtquired notice for tenants to be in accordance with Sections 6.50.050 and 6.50.070 of this
chapter,the park owner shall give written notice to the new affected mobilehome tenant of the twelve month
anniversary date for rent increases allowed under Section 6.50.040 of this chapter,and shall give written notice to such
affected tenant that the space rent may be subject to stabilized rent increases pursuant to the provisions of this chapter.
C. In the absence of a lawful vacancy, a park owner is prohibited from raising rent upon a sale of a mobilehome on
site to a tenant-to-be or current tenant.
D.No increase ma,, b�posed pursuant to this section where title to the mobile home passes to one or more
person(s)who,at the time of the title transfer, (1)was/were also lawful, authorized resident(s)of the mobile
home,or(2)were/are parents, siblings,children,nieces,or nephews of the mobilehome owner and the mobile
home remains in the same space.
E.No increase ma,, b�posed pursuant to this section if a space rent increase was imposed pursuant to this
section within the twenty-four-month period preceding the current lawful vacancy.
F. It shall be a violation of this chapter for a park owner to condition an in-place transfer of a mobilehome or to
condition assignment of an existing lease on an affected tenant's or tenant to be's acceptance of an increased
space rent in excess of that permitted in accordance with Section 6.50.040(A)of this chapter or on an affected
tenant's or tenant to be's acceptance of a rental agreement exempt from the requirements of this chapter.
(OFd 1949 NCS§1 i..ro 1994
6.50,250 ReseFv('d.-
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
6.50.260 Registration of Parks.
A. On or before June 1, 1994,each mobilehome park owner must register the parks which they own or operate with
the city clerk by filing with the city clerk a letter or other instrument-in writing which identifies the park and which
furnishes:
1. The current mailing address of owners and operators;
2. The number of spaces in the park;
3. The number of spaces under construction,if any,or planned for construction;
4. The identity of present tenants and lessees, and their mailing addresses;
5. The rental,lease payments and other considerations charged for the use of the spaces; and
6. A description of the park and the services,amenities and other considerations to the tenants and lessees which
the owner or operator may consider as bearing on the question of fair rental amounts.
B. On or before April 30th of each year subsequent to the adoption year,each mobilehome park owner in the city of
Petaluma, as long as the city council for the city of Petaluma may so authorize and/or allow, shall register with the city
clerk of the city of Petaluma by providing,in writing, on a completed city registration form,if the clerk has provided a
registration form:
1.Tthe current names and-address and telephone number of each such mobilehome owner;
2 A- n -a statement of the number of mobilehome spaces,including both occupied and unoccupied spaces,
contained in each such park, and a statement of the number of recreational vehicle spaces in the park,
3. The number of spaces under construction,if any,or planned for construction;
4. The number of spaces in the park subject to the requirements of this chapter;
5. The rental,lease payments and other considerations charged for the use of the spaces; and
6. A description of the park and the services,amenities and other considerations available to the tenants and
lessees which the owner or operator may consider as bearing on the question of fair rental amounts.
7. Whether there are lawfully vacant spaces in accordance with Section 6.50.230 of this chapter in the park;
C.Notice of sale or transfer of a mobilehome park. Reregistration and provision of tl+is-the information
specified in subsection(B)of this section must also be made upon change of ownership of the mobilehome
park or an increase or a decrease in the number of spaces.Upon the sale or transfer of a mobilehome park,the
seller or transferor shall notify the clerk of the sale or transfer and the name and address of the buyer or
transferee. The buyer or transferee shall provide the clerk a new registration form in accordance with this
section within 14 days of the sale or transfer.
DocuSign Envelope ID:5947AD9C-F67C-450A-964F-C990F8175C50
D. Certification of registration forms.All registration forms required pursuant to this section,and any
documentation accompanying any registration forms, shall contain an affidavit or declaration, signed by the
park owner or a designated agent under penalty of perjury,certifying ing that the information contained therein is
true,correct,and complete.
6.50.250 Procedures and guidelines.
The clerk may develop and publish procedures and guidelines to aid in the implementation of this chapter.