HomeMy WebLinkAboutStaff Report 4.A 04/16/2012 Ag- wider'Itev v#4.A
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DATE: April 16°' , 2012
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TO:_ , Honorable Mayor and Members of the City Council Through City Manager
FROM: Bonne'Gaebler, Housing Administratorl,,.,(fr
SUBJECT: Resolution Authorizing Program Administration Fees for the Mobile Home Park
Space Rent Stabilization Program for 2012
RECOMMENDATION:
It is recommended that the City Council Adopt the Attached Resolution Authorizing Program
Administration Fees for the Mobile 1-tome Park Space Rent Stabilization Program for 2012.
BACKGROUND:
Petaluma Municipal Code Section 6.50.60 (the "Ordinance") authorizes the City to collect an
annual fee for administration of the ordinance. The Ordinance states that "on or before April
30`h of each year and every subsequent year, each mobile home park owner shall pay to the City
Clerk of the City of Petaluma a.mobile home park rent stabilization program administration fee
for each mobile home space as defined herein, including both occupied and unoccupied mobile
home spaces in the owner's mobile home park except for those spaces subject to a rental
agreement in full compliance with.the requirements of Civil Code Sections 7998.17 (a) and (b)."
Fifty percent of the fee can be passed through by the park owner to the tenant.
The City has a three-year agreement (through June 30, 2012) with the Sonoma County
Community Development Commission (SCCDC) to administer its rent stabilization program.
SCCDC provides-a staff person to process arbitration petitions and select qualified arbitrators for
administrative hearings. (SCCDC also administers rent stabilization programs for three other
cities and the,County.)
DISCUSSION: Pursuant to the Petaluma Municipal Code, the City Council is authorized to
adopt a mobile home park space rent stabilization fee on an annual basis. Staff requests updates
on spaces covered by the Ordinance versus long-tern lease holders at each park annually. This
year it was determined that there are 231 spaces which are covered under the Ordinance. A
breakdown by park is attached as Attachment #1.
Agenda Review:
City Attorney Finance Director City Man
FINANCIAL IMPACTS:
Over the years that the Ordinance has been in place (since 1995), Council has approved fee
modifications based on the costs to administer the program and retain a reserve for unanticipated
legal fees. Last year(FY 2010-11) Council restored the fee to its original $65 in order to cover
the substantial attorney fees caused by previous years' arbitrations and appeals. FY 2011-2012
has been free of those costs and this year shows a predicted year-end balance of$14,125.50 (see
the Sources and Uses Chart, Attachment#2).
Staff recommends that the administrative fee remain at$65/space. This will allow the program to
pay annual,expenses and to continue building a reserve capable of covering any unanticipated
legal/arbitration costs.. Building a healthy reserve is important because, in the past, annual
administration fees have been augmented from the PCDC Low-Mod Housing Fund. As a result
of redevelopment dissolution, that source is no longer available, leaving the limited in-lieu
housing fund as the only alternative to cover excess costs.
After City Council adoption.o'fthe resolution authorizing the 2012 administrative fees,
assessments will be sent to all park owners by the Finance Department.
ATTACHMENTS
I. Rent Stabilization Ordinance Survey by Park
2. Sources and Uses Chart
3. Resolution
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Attachment#1
RENT ORDINANCE SURVEY BY PARK
Name of Park Number of Spaces Spaces Under Ordinance
Capri 69 1
Leisure Lake 134 56
Little Woods 78 77
Petaluma Estates 215 3
Royal Oaks 94 29
Sandalwood 178 40
Youngstown 102 25
Total Park Spaces 870 231
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Attachment#2
MOBILE HOME RENT STABILIZATION PROGRAM
Sources and Uses
April 2012
6/30/2007 6/30/2008 6/30/2009 1/1/2010 2/1/2011 2/1/2012
Revenues $4,950.00 $9,400.00 $9,600.00 $14,365.00 $11,660.00 $15,275.00
Expenditures
Son. Co. 3,450.00 12,169.08 7,966.11 11,211.14 0.00 935.00
Comm. Dev
Son. Co. 0.00 0.00 0.00 0.00 0.00 0.00
Attorney
0.00 0.00 36.24 0.00 0.00 0.00
Miscellaneous
Total $3,450.00 $12,169.08 $8,002.35 $11,211.14 0.00 935.00
Expenditures
Income $1,500.00 ($2,759.08) $1,597.65 $3,153.86 $11,660.00 $14,340.00
(Loss)
City (10,170.69) (32,158.19) (55,360.40) (44,678.56) (493.92) (214.50)
Attorney Fees
Income (Loss) ($8,670.69) ($34,917.27) ($53,762.75) ($41,524.70) $11,166.08 $14,125.50
after Atty
Fees
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Attachment#3
RESOLUTION AUTHORIZING PROGRAM ADMINISTRATION FEES FOR THE
MOBILE HOME PARK SPACE RENT STABILIZATION PROGRAM FOR 2012
WHEREAS, pursuant to Ordinance No. 1949 N.C.S., the City of Petaluma adopted a
Mobile Home Park Space Rent Stabilization Program; and
WHEREAS, pursuant to said ordinance, the City Council is authorized to adopt a Mobile
Home Park Space Rent Stabilization Program administration fee annually by resolution or
ordinance; and
WHEREAS, the City Council desires to set said administration fee effective April 30,
2012.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby:
1. Approves a fee in the amount of sixty-five dollars ($65.00), effective as of April 30,
2012, as the mobile home park rent stabilization program administration fee ("Administration
Fee") for each mobile home space as defined in Ordinance No 1949 N.C.S., including both
occupied and unoccupied mobile home spaces in the owner's mobile home park except for those
spaces subject to a rental agreement in full compliance with the requirements of Civil Code
Sections 798.1 (a) and (b).
2. Directs that prior to April 30, 2012, each mobile home park owner shall receive an
invoice from the City of Petaluma for the Administration Fee. a
3. Directs that the City Clerk of the City of Petaluma shall forward payments of the
Administration Fee to the clerk for administration of the mobile home park rent stabilization
ordinance, and shall issue to each mobile home park owner a receipt for payment of the
Administration Fee.
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4. Directs, pursuant to Ordinance No. 1949 N.C.S., that any person owing money to the City
pursuant hereto 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 (11/4%) per month will be charged
on all late payments of registration fees.
1830721.1
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