HomeMy WebLinkAboutOrdinance 2855 N.C.S. 06/19/2023 DocuSign Envelope ID:C8CA4965-2869-4321-9749-5DBCDF7DA270
EFFECTIVE DATE URGENCY ORDINANCE NO. 2855 N.C.S.
OF ORDINANCE
July 19, 2023
Introduced by: Brian Barnacle Seconded by: Janice Cader Thompson
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA
AMENDING THE ANNUAL MOBILE HOME SPACE RENT CAP IN SECTION 6.50.040 OF THE
PETALUMA MUNICIPAL CODE TO TAKE EFFECT IMMEDIATELY AND TO EXPIRE UPON
THE EFFECTIVE DATE OF SUBSEQUENTAMENDMENTS TO CHAPTER 6.50 OF THE
PETALUMA MUNICIPAL CODE ENTITLED "MOBILEHOME PARK SPACE RENT
STABILIZATION PROGRAM," PURSUANT TO ORDINANCE 2857 N.C.S
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 Endings and purposes enumerated in Subsections 6.50.010(G-0) of the Regulations still
persist in Petaluma and are incorporated herein 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 purpose;
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;"2 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 County 5; and
WHEREAS, 81% 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'; and
1 htWs://petaluma.municipal.codes/Code/6.50
2 Executive Order N-23-20 htWs://www. og v.ca.goy/M-content/uploads/2020/01/EO-N-23-20-Homelessness-Crisis-01.08.2020.pdf
s htWs://mtcdrive.op.box.com/s/nei8x775oi5m47mghu8ctpyyarioa2v3/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
Urgency Ordinance No. 2855 N.C.S. Page 1
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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, 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
hlWs://www.pressdemocrat.com/article/news/sonoma-countys-homele ss-population-increased-5-during-pandemic/
'Napa, Sonoma,Marin, Solano rents jump,burdening tenants,landlords(northbaybusinessjournal.com)
9 hlWs://cityofpetaluma.primeaov.com/Portal/viewer?id=24208&type=2
"April 30,Assembly Housing and Community Development,Bill analysis for AB 978
hlWs://le ing fo.legislature.ca.lzov/faces/billAnalysisClient.xhtml?bill_id=202120220AB978#
ii Section 1, Subsection(h)of Assembly Bill 978(2021).
https:Hle ing fo.legislature.ca.gov/facesibillTextClient.xhtml?bill_id=202120220AB978
12 Id,Subsection(f)
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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 ofl3%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
13 https://www.bls.gov/opub/mlr/2022/article/us-labor-market-shows-improvement-in-2021-but-the-covid-19-pandemic-continues-to-
wei gh-on-the-economy.htm#:-:text=The%20recession%20induced%20by%20the,to%201eave%20the%201abor%20force.
14 https://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-2008/
Urgency Ordinance No. 2855 N.C.S. Page 3
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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
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, Section 76A of the Petaluma City Charter authorizes the adoption of urgency ordinances for the
immediate preservation of the public peace, health and safety, that contain a declaration of and the facts
constituting the ordinance's urgency, so long as they are passed by a unanimous vote of the Council members
present at the time of adoption; and
WHEREAS, Government Code Section 36937(b) authorizes the adoption of urgency ordinances for the
immediate preservation of the public peace, health and safety; 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,the definition of"Percent Change in Consumer Price Index" or"CPI"in Section 6.50.020(q) of
the Regulations for years following the first year the Regulations were effective relies upon the changes in the
CPI published for the month of July, issued in the month of August; and
15 Section 1,Subsection(e),Assembly Bill 978
16 https:HMhphoa.com/ca/rso/
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WHEREAS, this urgency 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
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, an urgency ordinance that is effective immediately to adopt reductions in the maximum space
rent increases that may be imposed on affected Petaluma mobile home park residents is 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
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.
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 annual rent increase limitation specified in Section 6.50.040(A) of
the Petaluma Municipal Code is not a "project" within the meaning of Section 15378 of the California
Environmental Quality Act Guidelines,because such an amendment would 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 any potential amendments of the City's mobilehome rent regulations would involve no
Urgency Ordinance No. 2855 N.C.S. Page 5
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modifications to the physical design, development, or construction of residences or nonresidential structures.
Additionally, amending Section 6.50.040(A) 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.
SECTION 3. Urgency Findings. Adoption of this ordinance as an urgency ordinance with immediate effect is
necessary for the preservation of the public health, safety and welfare in accordance with Section 76A of the
Petaluma City Charter because lowering the annual mobile home space rent increase cap before rent increases
may be imposed based on the July, 2023 CPI data is released in August would help ensure economic stability for
already cost-burdened mobilehome tenants, which not only contributes to the well-being of the tenants and their
families, but the community as a whole. Rent increases in excess of what the City's amended regulations may
result in mobile home park housing becoming unaffordable for some residents, potentially leading to
displacement, homelessness, and a disruption to the tenants, their families, their work, and the businesses that
they support. Tenants paying high rent may have to forego food, medicine, or necessary utilities to pay their rent,
which negatively impacts their health, safety, and welfare. Additionally, for the reasons set forth in the recitals
above,this ordinance is declared by the City Council to be necessary for preserving the public,health, safety, and
welfare, and for avoiding a current, immediate and direct threat to the health, safety and welfare of the community
resulting from housing instability due to COVID-19 related financial distress, the facts recited in this ordinance,
and information contained in the staff report accompanying this ordinance,which is made a part of this ordinance
by this reference. All these considerations, taken together, constitute the City Council's statement of the reasons
constituting the urgent necessity for adopting this ordinance in accordance with Section 76A of the Petaluma
Charter, Government Code Section 36937(b), and other applicable law.
SECTION 4. Amendment to Section 6.50.040(A) of the Petaluma Municipal Code. Petaluma Municipal Code
Section 6.50.040(A) is hereby amended to read as follows (strikethrough= deletion; underline= addition):
6.50.040 Residential rent increase limitations.
A. Except as provided in subsections B or C, 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 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 ordinance. Said increase shall be the lesser o£
1. Seventy percent of the percent change in the CPI; or
2. 84*Four percent.
SECTION 5. Effective Date. This ordinance is hereby declared to be necessary for the immediate preservation
of the public peace,health and safety of the City of Petaluma and its citizens, and shall take effect and be in force
from and after its passage by unanimous vote of the members of the City council present in accordance with
Section 76A of the Petaluma City Charter and Section 36937 of the California Government Code.
SECTION 6. 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.
Urgency Ordinance No. 2855 N.C.S. Page 6
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SECTION 7. Repeal. This Ordinance will automatically expire and cease to be of further effect without further
action by the City Council on the date the amendments to Petaluma Municipal Code Chapter 6.50 take effect
pursuant to regular Ordinance 2857 N.C.S.
SECTION 8. 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, ordered posted/published, and ADOPTED this 191h day of June 2023 by the following vote:
Ayes: McDonnell, Barnacle, Cader Thompson, Healy,Nau, Pocekay, Shribbs
Noes: None
Abstain: None
Absent: None DocuSigned by:
0
Kevin McDonnell, Mayor
ATTEST: APPROVED AS TO FORM:
E
Z-r3048n
ed by:
f��
Kenda wyer, CMC, City Clerk Eric Danly, City Attorney
Urgency Ordinance No. 2855 N.C.S. Page 7