HomeMy WebLinkAboutOrdinances 1949 04/04/1994~ a .. ~... ~~_~-. . ~ ~ ~ ~ ~. ~~
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2 ~AY 4 1994 ~'.
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Introduced by
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JANE HAMILTON
O~INANCE NO. 1949
Seconded by
~.c.s.
CAROLE BARLAS
A1V OgtIDINANCE OF T~E COiJNCII.OF T~E CI~ OF' PETALiJ1V~A ADDING
C~APTER 6.50 "1VIO~ILE~OlVV~E 1'AIZK SPACE I2EIV'I' S'TABII.IZAT'ION PROG~2A1dI"
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
Section 1. Chapter 6.50 "Mobilehome Park Space Rent Stabilization Program" of the
Petaluma Municipal Code shall be added and shall read as follows:
CHAP'TEgt b.50 -1VIOB~,EFIOIVIE PARK SPACE REN'~' STA~II,~ZA'TION PROG~IV~
Sections:
6.50.010 Findings and Purpose
6.50.020 Definitions
6.50.030 Base Rent - Initial Calculation
6.50.040 Residential Rent Increase Limitations
6.50.050 Information to be Supplied Tenants and Tenants-to-be
6.SO.ObO The Rent Dispute Resolution Process
6.50.070 Rights of a "Tenant-to-be"
6.50.080 Subpena Power
6.50.090 Consolidation of Petitions
6.50. l00 Standards of Review
6.50.110 Net Operating Income
6.50.120 Obligations of the Parties
6.50.130 Tenant's Right of Refusal
6.50.140 Retaliatory Acts; Tenants' Right to Organize
6.50.150 Solicitation of Any Petitions by the Park Owners are Without
Force or Legal Effect Within City's Program
6.50.160 Fees/Payment
6.50.170 Exemption From Fees
6.50.1 SO Nonwaiverability
6.50.190 Penalties and Remedies
6.50.200 Rights of Affected Tenants Reserved
6.50.210 Termination
6.50.220 Review by the City Council
6.50.230 Severability
6.50.240 Vacancy Control - Establishment of New Base Rent
6.50.250 Reserved
6.50.260 Registration of Parks
Ord. 1949 NCS
1 6.50.010 - Findin~,s aud P~se.
2 A. For several years, mobilehome tena~~ts have requested that the City of Petaluma
3 enact a mobilehome park space rer~t stabilization ordinance. Various mc~tings
4 have been held with mabilellome par~c ow~ers and ma~ile~ome park tenants to
5 address concerns raised by both gro.ips regarding rental increases, vacancy
6 control, and oiher issues.
7 B. In March 1993, the City Council ~,~as presented with a request for consic~eration of
8 a fair mobilehorne rent ordinanc~. In April 1993, the Citv Council appointed to
9 the existing mobilehome rent review committee whi~h consisted of
l0 Councilmembers, three mobilehome park owner representatives, and three
11 mobilehume park tenants. After several meetings, it was reported to the City
t2 Council in July 1993 that it did not appear that an agreement could be reached and
13 that further discussions would not be fniitful.
14 C. Subsequent City Council meetings were held in which various issues were
15 discussed ~nd from which input was received from hoth mobile ;om~e parlc owners
! ti and: mobilehc~me park tenants and their repre~entatives.
~? D. Because of the inability of tre park awT:~ers and park ter,arts io reac.h a res~iution
]S af t_1~e:r diffeienc~s;~~t~ze t~ity Ct~jw:~c;~~::r~taiize~-.r#~e: °ser~i~es oi~ l'~~~ln~r;y c~:
~9 Associaies, ~inc.;.an zxperiencec~ c<~risu~iax:t; if~ ccnduet:a,rnc~bitehome par~: survey.
20 Th;, ~u>~~se e.~f the..:survey was ~to ~u:leet i~tiev~~nt i!.ifc~rrna ,en ~i~ n:c~Y.~_ieho.rue
21 ~~u-l: resident charac~erist:c;, space ,~e.1ts, a7d.t11~ ~nobileilonr~~park5 in I'et~lama.
22.. E. UIl November:.15, 19°3, Connerly & Assaciates, Inc. subjni~te~'- to tr~e Cit:y
23 Council a written report detailing their findings, which included the following:
2~ (1) Nearly 60 percent (60°ro) of tbe survey Y•espondents~~vei•e single adults,
25 wr~iie virtually all the rernaining. respondents comprised two-person
26 households. There were only four respondents ~vho reported having three
Z~ household members.
28 (2) Ivlost of the resparldents, nearly 80 percent (80%) reported being age 62 or
29 rriore.
30 (3) The majority of res~ondents at all the mobilehome parks reported beirlg
31 "low income", meanin~ YYrey earned ~ess than $23,850 per ,year for a sin~ie
32 person, or $29,SOG p~r year for a two-person household. For alI the parks,
33 neai•ly 90 percent (90%j of the sur~ey respondents are low incozn~.
34 (4) ~ve,r 50 percent (~0%; of ~.iie i•esidents in all but one n~obilehome par.'{
3~ reported their income as being within the "very low income" range,
36 $16,150 for a singie person c~r $18,700 for a two-person household. About
~
y ~~~0~~49~CS
1 6d percent (60%1 of the ~urvey respondents in all the parks rEported their
2 incozne as being at the "ver~ low income" level or less.
3 (5) Just over half t;le resporic~ents in ail the mc~bilehome pa~•ks r~ported they
4 pay m,~re ihan 30 ~erce;it ~30°'0l of their income for housin~ eYpenses
5 (space rents; mo~tDage, if arry; utiliti~s; property taxes or registration fees;
6 and homeowner's ~rsuraiice j. About 40 percent (40%) of the residents
7 reported paying nlore than 35 percent (35%) of t~ieir income for housing
g expenses.
9 (6) The average rents in the parks; as reported by residents re~pon~ing to the
10 surveys, range frozn a low of $198 per month to $375 per month. The
11 average monthly rental reported by respondents for all the parks was $284
12 per month. By comparisori, tk~e average space rent reported by
13 respondents for all the parks wa~ $202 in 1986. The average space rent
14 reported by reside~.lts were within $5 to $10 per month of those reported by
15 the park owners.
16 (7) The average rental spa~e rent increase was 5 percent (5%1 per year
17 between 1986 and 1993.
18 (8? None of tPe par.~: ov~ners resp~r:c~ir~ to the survey reported vacrnt
19 mebilehome spaces.
2~ J.;. T1~e ;.iiy C~uncil:has d.isc~7s~.d und s•evi~wec; tlze a~~~~e findiri~s «nd eor,clusior,s,
2 ~ and has received inforr~lation tl7rough ~~ablic ~heariugs and coucll:des, based on
22 said inforrnation and the i-indings her~in, that it: is necessary and in the gublic
23 interest to establish a mechanism to assist in the resolution of disputes that may
24 arise from time to time betwe~n residents and park owners regardir,g the rates
25 charged for rental or lease of space as ~vell as instances where there is a sale or
26 transfer of the mobilehomes by the m~bilehome residents. In addition, the City
27 recognizes the right of the park owners to obtain a fair and reasonable rate of
28 return and for their property to generate incoine to cover costs of operation and
29 servicing of reasonable financing and to have under the auspices of the City an
30 administrative procedure which will operate effectively and expeditiously ta
31 approve rent increases as ar~ rzas~r,able to meet said ends. At the sa~~ne ti:r~e there
32 is a need to establish a rneans which if followed can provide protection to tenants
33 from unreasonable rent increases resu~ting in loss af value to their property.
34 ~. A significant majority of the residenis of mobilehome parks in the City of
35 Petaluma are older individuais or couples living on fi~ed incomes. These
3 ~~~~~~.~~~N~S
1 residents qualify as "lcv,~" a::c3 "very low" income households and typically
2 eYpend more than 30 percent (30%j of their income on housing related expenses.
3 H. Nearly all mobilehome park residents own a~Id oc~upy their rtiobilehome and hav~
~ made z substantial moneta,~y irivestrn~nt to live in a n~obilehome park.
5 I. Residents of a mobilehome park have very limited mobility due to the difficulty
b and expense of relocating a mobilehome.
7 J. There is a limited amount of altarnative housing affordable to and suitable for the
$ typical mobilehome park resident and mobilehome parks are a valuable resource
9 of affordable housing for low and very low income individuals and families.
10 K. The City of Petaluma zs committed to assisting in the preseivation of decent, safe
11 and sanitary housing affordable to all economic segments of the community,
12 especially mobilehome lots affordable to low and very low income individuals
13 and families.
14 L. The City Council finds tl~ere is a shortage of spaces for the location of
15 mobilehomes in the City, a condition «~hich res~ilts in ]ow vacancy rates and tends
16 to prevent normal competition bettiveen the ovvners and tenants of mobilehome
17 par_i:.s. Rents have been for severa' years an~ are pr~~sently r•~sing ut rates in some
ls : instarr.es greater th.an incrtases i~~ the (~i i, ~~~hici~ s~as caused conrein to a
19 sui~~kantial number of z~iubilchome owners. Th~ C:t;~ Co~~ncil fnds that a
~~ substantial mimber of mo~.~ilellom~: owr~ers in tlxe Lity Ilave f~r a IontT time
z~ asseriecl a need for rer.t conirol ~~d th~~t efforts of the City Cc~uncil in the past to
2? me~iate;. differences bet~veen park owners and their tenants i~av;, been notably
23 unsuccessful.
24 M. Due to their limited incomes, the large investinent in their mobilehomes, the
25 immobility of mobilenomes, and the shorta~e of spaces for mobilehomes,
26 mobilehome owners generally have ve*y limited economic bargaining power
27 concerning rents charged for mobilehome lots.
28 N. The City Council intends that this Chapter be interpreted and enforced fairly and
29 equitably, in a nondiscriminatory manner, and in aceordance with constitutional
30 requirements. For these reasaas it is intended that the respective provisions of the
31 ordinance be liberally construed and be cor.sidered severable, and t~iat ii any
32 portion of it is declared unconstitutional or unenforceable, the remaining portions
33 shall remain valid and in effect.
34 0. The purpose of this ordinance is to:
35 (1) Prevent the impasition of eYploitive, excessive and unreasonable
3b mobilehome space rent increases;
~ ~~:'~~~.~~9~~;~
1 (2) Assist in alleviating the unequal bzrgainiiig pawer dv~ ich e~ists between
2 mobilehome park residents and mobilehome park owners;
3 (~) Provide rrzobilehome park. o~~ners witli a~uaranteed rate of annual space
4 rer~t increase which accurate?y retlects the ra*e of inflution; .
s (4) Pro~-ide an eiticient and s~eedy process to ensur~ mobilehom~e park
6 owners receive a fair, just and reaso ~able rate of return in cases whr;re the
7 guaranteed annual space r~nt increases provided by this ordinance prove
s insufficient;
9 (5) In the absence or a lawful vacancy, prevent eYCessive or exploitive rent
10 increases upon the transfer of a mol~ilehome-on-site (i.e., on the
11 mobilehome pad) to a new mobilehome owner while at the same time
12 providing a process whereby mobilehome park o~~~ners are assured of
13 receiving a fair and r•easonable return.
14
15 6.50.020 - Definitions.
16 For purposes of this chapter, the follovring terms shall~.be: c~efined~as tollows:
17 A. "Aff€cted Tenants" means those tenar.ts whose sp~ce is not c-vv~:e~? by ~ valid
iR lease meetin~ the requiremerzts as outlir~~i~;irl~~~eLrivn.7~?8:;'i(~j•Qf~ti:e,°Lai~l~~rnia .
14 - Civil Gocie or,uiher.vise legall_y eYempt frarr~.laca~ rei~t ccrt~cl re~uir~tioi~. S~:ch
:~~. tenan±s are t~ be natified ti~at-a s~~~_z rc:nt incre~se is to ~~ecoul~.effe~:~~iue. Fur
21 . purposes ~f ~.~roviding notic~ of ti~e increasc; pi°oviding -copies~ of the rent
22 stabiiization . ordinance, and suppc~rt of a rent- urbiGrati~n~. ~:.+iti~n, each space-
2s subject to a rental increase shall be deemed to have only one "aifected tenant" for
24 administrative convenience to the park owners. The refer:r~ce to "ail affected
25 tenants" will refer to one representative tenant from each space su~ject to the
26 proposed rental in~rease.
27 B. "Arbitrator" shall mean a person (1) ~~ho is neither a tenant as that term is defined
28 in this. ordinance ~or whc~ has an interest in a mobilehome park of a nalure that
29 «ould required disqualification under the provisions of the Political Reform Act if
3o the person were an elected state official an.d (2) a person whom the Cierk of the
3t Petaluma Mobilehome Space Rent Stabilizat.ion Program ~see (El b~to~~~)
32 determines meets one of the following criteria:
33 (i) completion of a Juris Doctur or equivalent degree from a sch.ool of law
34 and completion of a fornla! ec~urse cf trainin~; i:~ arbitration ~~~hich, in thP
35 sole judgment of the Clerk, or designc;e, oi the Petal~:r.ia Mobilehome
36 Space Rent Stabilization Prugram, provides tha~ person with the
S ~df. '4.:i..+~' o ~L. @l .L. ~ ~ V N
1 knowledge and skills to conduct a space rent dispute arbitration in a
2 professional and successful man.ner; or
3 (ii) c~mpletion of at least three arbitration proceedings for a Supe:ior Court or
4 other public entity that involved issues the Clerk, or designee, of the
5 Petaluma Mobilehome Space Rent Stabilization Program finds similar to
6 those raised in spa~e rent dispute arbitrations.
"% (iii) served as a California Supe: iar or Municipal Court pro tempore judge.
8 C. "Base Rent" means the authorized, rent, calculated pursuant to the provisions of
9 Section 6.50.030, plus any rent increase allowed under this Chapter or any rent
l0 ad;ustment attributable to vacan~y decontrol as provided in Section 6.50.240.
11 D. Reserved.
12 E. "Clerk" shall mean the Clerk of the Petaluma Mobilehome Space Rent
13 Stabilization Program, who shall be the City Manager or his or her designee.
14 F. "Capital improvements" are those improvements that materially~ add to the value
15 of the property and appreciably prolong its useftil life or adapt it to ne;l~ uses, and .
~E whi~r~.may be amortized over the usefiil remainin~ life-of the ili~pro~-err~ent to the
t 7 prop~rty.
~8 G. "Cons~a.i~ier Price Index" means tne Consutti~:~-.I'rice Irtc~c;~ fc~r ~.~?: t~r~a~l
19 Cansumers San Francisco-Oakland Area, publi.shed by the LT.S. .Departl~~nt o.
?Q Labor, ~ureau ~f Labor Statistics.
21 _ H. "t~ousing service" means a service pr~vided by the owner re[ated ta the usP or
2z o~cu~ancy of a mobilehome space, which is neitl~ier°a~ eapit~i~ in~:prc~~~eme.~t: nar
23 substantial rehabilitation as those terms are defined herein, including but not
24 limited to, repairs, re~.~lacement maintenance, painting, li.yhting, heat, water,
~s laundry facilities, refuse removal, recreational facilities, parking, security service,
26 and employee services.
27 I. "Mobilehome" means a structure designed for human habitation and for b~ing
2g moved on a street or higliway under permit pursuant to Section 35790 of the
29 California Vehicle Code. "Mobilehome" includes a manufactured home, as
3~ defined in Section 18007 of the California Health and Safety Code, and ~.~
31 mobilehome, as defined in Sectioii 1~008 c~f th.e California Health an~ Safety
32 Code, but does not include a recreational vehicie, as defined in Section 799.24 of
33 the Califomia Civil Code and Section 18010 of the California Health and Safetv
34 Code, or a commercial coach, as detined in Section 1800 i.3 of the Caliiorri;a
=~s Health and Safety Code except wllen such a vehicle has continuously remained
36 within a mobilehome park for a period in eYCess of nine (9) months.
6 ~~~~1~~~~~5
1 J. "Mobilel~ome Park" meai~s any area of land within the incorporated areas of the
2 City of Petaluma where twa (2) or more rr~obilehome spaces are rented, or held
3 out for rent, to arcommodate mobilehomes used for human habitation.
4 K. "Mobilehame park owner" means any owner, lesser, or sublessor of a
5 mobilehome park in the incorporated areas of the City of Petaluma who receives
6 or is entitled to receive rent for the use or occupancy of any mobilehome space
7 thereof, and the representative, agent, or successor of such owner, lessor, or
8 sublessor, and who reports to the internal Revenue Service any income received
9 or loss of income resulting from such ownership or claims any expenses, credits,
10 or deductions because of such ownership.
11 L. "Mobilehome space" means any site within a mobilehome parl< located in the
12 incorporated areas of the City of Petaluma intended, designed, or used for the
13 location or acconunodation of a mobilehome and any accessory structures or
14 a.ppurtenances attached thereto or used in conjunction therewith except (1) sites
15 rented together and concurrently with a mobilehome providPd by the mobilehome
16 park uwner and. (2} "new~ constructioii" as defined by California Civil Code
17 Section 793.45. The tenn "mobilehome space" shall also inclucie, for purposes of ~
lr tnis rent stzbilization,ordinance and accompanying fee c~rdinanc:e, rentable spaces
19 ~~~iihin mabilehome parns whicli have been occupied by a"reereational vehicle" as
30 defined hy California Civi? Code Section 799.24 for a period of nine (9) nionths
2' or in~;re.
22 M. "1~lobilero~r.ie tenant" means a t~,lant, subtenant, lessee, or sublessee, or any othet•
23 person entitled to the use or occupancy of any mobilehome space not other~vise a
24 party to a rental a~reement exenipt from regulation under this• ordinance pursuant
25 to Civil Code Section 798.17.
26 N. "Net operating income" means net operating income as defined in Section
27 6.50.110(A) of this ordinance.
28 O. "Owner" means a mobilehome park owner.
29 P. "Party" as used in this ordinance refers to any affected mobilehome tenant and/or
3G owner involveu in proceedings under this ordinance.
31 Q. "Percent change in Consumer Price IndeY" means the aruiual percent change in
32 the Consumer Price Index (hereinafter "CPI"), calculated to the nearest tenth. For
33 the first percent change in Consur:ier Price Index, it shall be calculatec~ usir:g the
34 CPI published for the month of March, issued iti the month of April. In tlie event
35 an indea is not published for the mornh of Marcn, the closest preceding month for
36 which an indel is published shall be used. Subsequent yearly percent changes in
7
~~~~~~4~I~~S
1 CPI shall be calculated to the nearest t~I1C11, published for the month of July,
2 issued in the month of AuQust. In the event that an index is not published for the
3 month of .Tuiy, th.e closest preceding m.ontn for ~vhich an incieY is pubiished shall
4 be used. It is the intent of this ordiTiar.ce to ti~: the CPI in the begimling of the
5 fiscal year, for the rest of ihe fisc~l year barring an unforeseen failure to publish a
6 CPI for the month of Julv.
7 R. "Rent" means mobilehome space rent.
8 S. "Rent increase" means any additional space rent demanded of or paid by a tenant
9 for a mobilehome space incliiding any reduction ir~ housing services without a
10 corresponding reduction in the amount demanded or paid for rent. Said increase
11 shall be (1) uniform in percentage rate relative to current base rent; or (2) uniform
12 in dollar amount relative to base rent. ~
13 T. "Rer.t Stabilization Administration Fee" means the fee established from time to
14 time by resolution or ordinance of the Petaluma City Council in accardance with
15 the provisions of ~ection 6.tiQ.160 herein.
16 U. "Space reiit" means the t~tal consideration, .including~ an}~ bonus, benetit, or
17 gratuity, demanded or re;:~iv;d hy a mobilehome park owner for or in connection
13 . •,~~it;~ th~;~:.tisr~~=or.•to:c~.:;~as>cy c~l• Cl AP.Ghii::h:,mr ~s, ace ox any hot~.sing ~ervices
1y ~~~roviued with ttz~ m:~~iiei;ome s~~ace. Space rent shal] no~ ir.clude ;anv amount
2o p~;iU ~~r-~t.h;. use.ar c?cc~:pa;lcy of a ri~~vilel~r~,~;e ~~ve~lin~ ur:it, ~:nless the a;nount
~~ paid f'or the-u~e~r-occupancy ef a mobilellome is or includes consideration paid to
22 a mobilehome;;parx;.owzier under a rental agreement or otl~er e~ocurnent evidencing
23 tenancy of the mobilehome.
24 V. "Substantial rehabilitation" ineans that work dcne by an ow~er to a mobilehome
25 space or to the common areas ef the mobilel;ame park, exclusive of a capital
26 improvement as that term is defined herein, the value of ~vhich exceeds Two
27 Hundred Dollars ($20U.00) and which is performed whether to secure compliance
28 with any state or local Iaw or to repair damage resulting from fire, earthquake, or
29 other casualty or natural disaster, to the extent such work is not reimbursed by
30 insurance.
31 W. "Tenant" means mobilehome space tenaut.
32 X. "Tenant-to-be" means a person who is not currently a tenant in a mobilehome
33 park but is a prospective mobilehome s~ace tenant who desires the use of a
34 mobilehome spacP as defir.ed in ihis Chapter and has ~r.esented himself~'herself to
35 the park own~r as such.
g ~~~a~9~9NCS
1 Y. "Initial rent increase" means tne frst rent ir.creas~ imposed r}- a mobilehome park
2 owner after the effective dat~ of this ordinGnce.
3
4 6.50.03U - Base RPnt - Tnitial Calculation.
5 A. E:ccept as hereinafter provided, ar, o:vner sl~all not demand, accept, or retain rent
6 for a mobilehome space eyceed~ng the rent in effect for said space on the effective
7 date of this ordinance. If a previously rented mobilehome space was not rented on
S the effective date of this ardina~ice, the owner shall not, except as hereinafter
9 provided, demand, accept or retain rent for said space exceeding the rent in effect
10 during the last month the space was rented prior to the effective date of this
11 ordinance.
12 B. Any mobalehome park owner who disputes that the initial base rent established by
13 subsection (A) is sufficient to cover operation and maintenance costs,
14 rehabilitation costs, and capital improvement costs, and still_:provide the owner a
15 fair and reasonable return, may seek adjustment to said initial base rent by
16 submitting a written rcqu~~.t to the Clerk requesting an oppoi~anity to adju~t said
17 initial base rent and sh~ll s~ipply both the Clerk and each Affecteu Tenant with the
18 notice ~f .re~uest-along with tlie grou~~ds for ariy such re~uest. Tt~c~ maiter sli~~l be
19 submitte:J to arbitrati~r~ as pt•escribf:u i~~ Se:.tior_ ~iS0~06~(~ j ai~d (;F).
20
21 , 6.50.040 - Residential Rent Ir~crease Limi±ations.
22 A. ~xcept as ~rc~vi.~ed. in ~subsections B. cr C., or c~tl~eil~ise~e~;ar~ssly authorized in
23 this Chapter, the space rent payable for use or occupancy of any mobilehome
24 space shall not be increased w-ithin tu~elti~e (12) month.~ of th:,. effective date of the
25 preceding rent increase. Except as provided in ~ubsection F, or otherw~ise
26 expressly authorized in this Chapter, no Initia] Rent Increase shall be imposed
27 sooner than twelve (12) months after tl~e last preceding rent increase regardless of
28 whether the preceding rent increase was effective prior to the effective ~ate of this
, 29 ordinance. Said increase shall be the lesser of:
30 (i) One hundred perc,ent (100%) oi the percent change in the CPI; or
31 (ii) Six percent (6%).
32 B. If a park owner wishes to ap~ortion to each space an a pro rata basis the allowable
33 percentage of any current rent sta'~ilization administratioti fee, in addition to anv
34 inerease of space rent ;n accorciance ~~~it:~ preceding Section (A), the following
35 provision shall apply:
9 ~~~u1~4~~1CS
1 (1) The owner shall provide to all affected tenants documentation supporting
2 the allowable amount to be collected in order to recover a portion of rent
3 stabilization administration fees. At a miniinurn such documentation shall
4 incltide: billing notices or other equi~raient documents from the City
5 imposing the rent stabilization administration fee; a copy of Section
6 6.50.160 of the ordinance which authorizes the apportionment of rent
7 stabilization administration fees; the calculations used by the owner to
8 apportion the cost of the allowable percentage among the affected tenants.
9 In addition, the owner shall provide all affected tenants with the address
l0 and telephone number of the Clerk and the fact that the affected tenant is
11 encouraged to contact the Clerk for an explanation of the provisions of this
12 ordinance.
13 (2) A rent increase approved pursuant to the provisions of this subsection and
14 in accordance with the procedure set forth in Section 6.50.060 of this
15 ordinance shal.l not be considered part of the rent base upon which firture
16 rent increases can be made.
17 C. In the event an owner wishes to increase the rent payabie. fo: aiiy mobilehome
18 space within the twelve (1?) montr~ period r.~are than the anzc,unt perniir.ted in
19 s~abser.tiun (A} for any reason other~than that sta~ed in subsec.tion (8} her~i.~, the
20 p:oceclures set forih.in_Sections ~.50.05~ and 6.SD.OGII slia!l ~be fo~lo~ved. In tne
21 event an ~wner wishes to increase the ;~nt payable for ar~y niabilehome space
22 within the-~twel~~e (l2) month period more tlian .three: hundred perce, t(300%} of
23 the percent change in the CPI, arbitration shall automa_tically be required to show
, 24 good cause why such an increase is necessary, The arbitrator may reduce this
25 proposed increase to a figure de:ermined upon the evidence submitted by the park
26 owner or his/her representative to be a fair return upon investment.
27 D. A notice of rent increase given by an owner pursuant to Secticn 6.50.040(A), (B)
, 28 or (C) of this ordiriance shall be gi~~en in writing at least ninety (90) days before
29 any rent increase is to take effect.
30 E. The Initial Rent Increase as defined by Section 6.SU.020(Y) may be allowed
31 within twelve (12) months of the etfeciive ~ate of the preceding rent increase
32 where the mobilehome park owner can clearly establish that extraordinary
33 circumstances exist which require an increase to assure the mobilehome park
34 owner is receiving a fair and reasonable return. In the event an owner ~~vishes to
35 increase rent payable for any mobilehome space under this subsection (E), the
36 procedizres set forth in Sections 6.50.050 and 6.50.060 shall be followed.
~o ~~~.1 ~ ~ ~ N c s
1 6.50.051) - Information to b~ Sanolied Ter~ants and Tenants-t~-be.
2 A. Within thirty (30) days after the operative date of this ordinance and upon re-
3 renting of each mobilehome space thereafter, the owner shall supply each affected
~ tenant or tenant-to-be with a cnrrent copy of this ordinance.
5 B. Wheiiever the owner serves a notice of rei~t increase, except a notice of rent
6 increase provided pursuarzt. to Section 6.SO.U4U(A) of this ordinance, the a~~ner
7 shall at the same ti~ne and in the same manner serve the affected tenant or tenant-
8 to-be with a notice that sets forth ali of the following information:
9 (1) The amount of tr.e r~nt increase both in dollars and as a percentage of
10 existing rent and documentation supporting the level of increase desired,
11 including at a minimi.un: a summary of the unavoidable increases in
12 maintenance and operatin~ eYpenses; a statement of the cost, nature,
13 amortization, and allocation among mobilehome spaces of any substantial
14 rehabilitation or capital improvement; a summary of the increased cost of
15 the o~vner's debt service and the date and nature of the sale or refinancing
16 transaction; a snmr,:ary of the owner's net operating income of the
17 preceding 24 months ~!nd other relevan+, information that suppoi-ts the le~el
18 - of rent~iiicrease:~esi; ~d.
l9 ~% j '1 l:e. ~i~Pnti:y of a?1 otlier ~aif~cted tenants~ ai~d the spaces v~llicn they rent
. E_ 20 and.a ~oste.r.t~f.te.tia?its i~~ t}:e parl: accu~y~:r~~ rec;eational vehictes ~n place
21 for ino,~e Ghan r.ir,e ~i)~ Il7UIltjitS; ancl
2z (3) The address and teiephen~ numb~r ot~ the Clerk and (a) the fact that the
23- tenant is encouraged to contact the Clerk for an exp!anation of the
24 provisions OT t~l~ ~ ordinance; (b} documentation supporting the level of
25 i~icr~ase is on filed with the Clerk;
26 (4) A copy of the official petition form as prepared and provided by the Clerk
27 which initiates the process established by this ordinance.
, 28 (5) In addition, park ~wner sha11 place on file with the Clerk two copies of:
29 documentation supporting the level of increase desired, including at a
30 minimum: a summary oi~ the unavoidable increases in maintenance and
31 operating expenses; a statement of the cost, nature, amortiza±ion, ~Zd
32 allocation among mobilel;ome spaces of any substantial rehabilitation or
33 capital improvement; a summary of the increased cost of the o~vner's debt
34 servitie and th~ date and nature of the sale or refinancin~ transaction; a
3S summary of the owner's net operating income of the preceding twenty-four
36 (24) months and o~her r:.levant informatien trat support5 the level of rent
11
~~~~~.~4~NCS
1 inerease desired. Thest: dacumerits ~vill 'oe available for inspectior. at the
2 offices of the Cle~k.
3 (6) If alaplicable, notificatioii that the ~ropose.d rent increase exceeds ~00
4 percei~t (300%) of the r_iiang~ in the CPI, and that arbitration is deetned
5 automatically r~quireu b;• the provisioris of Section 6.~0.040(B) without
6 any need to file an arbi.ration petiiion. Such notices shall bear the
7 following language: "ARI3IT'R~~TION QF THE PROPOSED I?~1CREASE
8 IS AUTOMA~TiCALi,~" RF,QUIRED IN THIS MATTER BY
9 OPERATION GF LAtiV". Erroneous use of this notice shall be regarded
l0 as an irrevocable stipulation to the jurisdiction of the arbitrator.
11 C. The park owner shali also serve any tenant-to-be as defined in Section
12 6.~0.020(X) with a separate ":ZENTAL OPTION" notice which sets forth the
13 recitation in capital letters set forth in Section 6.50.070, Rights of "tenant-to-be".
14 D. Any owner failing to provide an affected tenant or tenant-to-be and the Clerk with
15 the information, documents, and notices required by this section shall not be
16 enritled to collect any rPnt increase otherwise authorized by this ordinance from
17 that tenant nor to any r~r~t increas~ ~i1at might otherwise i~u awarded by an
18 arbi~rat~r. Such failur~, b~~ th_e ~wr,er ~l~ali be a defe.rs~ in any d:.i:o~~ br~~tigi~t by
19 tl,.e c~mer to recover possessian ~i a niobilehc~me space or io c~~l?ect any rent
20 increase from the tenant. ,~~n~~ ew~ez• n~a~.~ c~_i~e tl-ie fail:u•e tc~ ser~z~ice a>>y notice or
.v. -.~ d.... .~ ..dxMv
21 meet the obligation to pr~~~ide info:mation ta a tenant or tenant-to-be which is
22 requi:ed under ~his: ordin:znc~• ~y ~iving suc,h notice or inforniation before
23 initiating an action for possessiori of the space or collecting any rent increase or
24 binding a tenant to be to u m~n~h-to-month rental/long-term lease election
25 otherwise authorized hereunder.
26 E. An affected tenant who is given n:~tice of a rent increase is entitled to f le a
27 Petition for Space Rent Revi~w as ~rovided in Section 6.50.060 of this ordinance
28 in spite of the fact that the awner ha~ faiied to provide the affected tenant(s) with
29 all the information, docum~nts arid notices required by this ordinance.
30
l~ ~!Er~~''4t4'c.~ ~-t~ :.,~ y c;. ~~:~~r..»L'~:.tit1:i
31 6.50.060 - The Rent Disnute Resolu~~n?z. P~;~ce~s, ._ ,,
32 A. Tenant's Ri~ht to Contact Cierk. The tenant may contact the Clerk of the City of
33 Petaluma l~lobilehome Space Rent Stabilization Program for an explanation of the
34 provisions of this ordinance.
35 B. Fetition. If the tenants dispute an~~ rent increase~, the t~nants or their
36 representative shall file with i'~e C'erk a Petition far Space Rent Review and a
1~ ~~~= Y 9~~ N C S
1 copy of the notice of rent increase, if availa~ie, within t~~enty-one (21) days after
2 the date upon which the reiit increase notice is received. The Clerk shall not
3 accept a petition for filing unless it has been signed by at least fifty-one (51%)
4 percent of alI affected ten~ants. L?pon the tiling of a petition, the rent increase is
5 not effective and may not be collected until and to the extent it is awarded by an
6 arbitrator or until the petiti:~n is abandened eYCept for that portion of t11e rent
7 increase that equals the increase a!lowable in Section 6.50.040(A) shall be
8 collectable as noticed. As used herein, the term "abandoned" refers to laclc of
9 prosecution of the arbitration Uy the mobilehoine tenants' representative(s). An
l0 automatic arbitration based upon a 300°% CPI increase will not require active
11 tenant prosecution, although such prosecution will not be prohibited. The term
12 "prosecution" refers to actively pursuing necessary steps t~ward preparing the
13 tenants' case for the arbitration hearing.
14 C. Contents of Petition.
15 (1) The Petition for Space Rent R_eview shall cet forth tlle total number of
16 affected rentPd spaces in the mobilehome park, shall identify the space
17 occupied by each tenant and shall state the date upo~~ ~~.~hicll tr~e notice of
18 the re~t increase ~.~~as rec~_i~-ec~ bv t.i~e rerar,~(sl.
. 19 (2) After obtainin~•~t~e .equir~c~ si~t~at~ire5, ~the. tenar,t(sj sl~ali deliver the
,; 20 petstic~n or maii it tfy re~iste~e~~i or czrri.-fiieu ma?~ to ti~P Cierk at the
~ 21 followin~ address: I'etaiuma Cit~~ ~-~all,. 11 Erigiish Street, Petaluma,
22 California 94952 :(or` successor address or agencyl. Na pPtition shall be
23 accepted unless it is accompanied by the requisite number of signatures
. 24 and is received in the office of the Clerk within the t~verity-one (21) day
25 period set fo~rth in paragrap}i B, abovr;. The Clerk s)~all provide a copy of
26 the completed petition form to both parties and the arbitrator forthwith or
27 within five (5) ~vorking days.
28 D. Information Ouestionnaire. After the Clerk has accepied a Petition for Space kent
29 Review, the Clerk shall remit to ihe owner and tenants an information
30 questionnaire in such form as the Cierk may prescribe. The cum.pleted
31 information questionnaire ~-ntist be returned to the Clerk at least five (5) v~~orking
32 days prior to the dute ~~r~~.c~uled for iiEaririg of the petition by the arbitrator.
33 Copies of tr,e completed information que.stionnaire shall be provided to the
34 arbitrator and the opposing part~~.
35 E. Assi~nment of Arbitrator and E~earin T Date. Upon receipt of the petition, or. in the
36 event of an automatic arbitration, or upoi~ an affected tenant's claim of a vacancy
13
~~~o~~49NCS
1 control violation `~here an unauthorized rent increasE has been sought, or upon an
2 owner's request to adjust the initial Base Rent pursuant to Section 6.50.030(B),
3 the Clerk shall, ~~ithin five (~) working days, assign an arbitrutor. The Clerk shail
4 set a date for the arbitration hearing no sooner than f ve (5 j nor later than ten (10)
5 warking days after the arbitrator is assigned. The owner and affected tenant(s)
6 shall be notified immediately in writiiig by the Clerk of the date, time, arld pl~ce
~ of the hearing and this notice shall be served either in person or by ordinary mail.
8 F. Arbitration Hearin~.
9 (1) The owner and tenant(s) may appear at the hearing and offer oral and
10 documentary evidence. Botn the owner and tenant(s) may desi~nate a
11 representative or representatives to appear for them at the hearinQ. The
12 arbitrator may grant or order one (1) continuance not to exceed five (5)
13 days to each party from tiie date of the hearing. A further continuance
14 may be granted if stipulated to by all the parties. The burden of proving
15 that the amount of rent increase is reasonable shall be on the owr,er bv a
16 preponderance of the evidence. The he~ring ~need not be c«nducted
t7 according to teclinical rules relating to evidenc~ ~nd wit~Nsses. 'I'he ru!es
18 of evidence and manner of prociLicing evidence s?~ai1 ~; fho~~ r.~.i~es set
?9 forth in Section 11513 of ti:e Calitornia. Grve[rvr.en~ Code for.the :.~n~uct
20 of hearin~ under the hdministrativ~ I're::eclure Act. Tnese ia:i~:s iliay he
21 relaxed at the discretion of the arbitrator in the interes~ of just:ce.
z2 . (2) The arbitrator shall, within fourteen (14) ~-1ays: af tt:e hearin~~, submit by
j3 mail a written statement of decision and the reasons for the d,°cision to the
24 Clerk who shall forthwith distribL~te by mail copies of the dPcision to the
25 o~vner and tenant(s). The arbitrator shall determin~ the am~unt of rent
26 increase, if any, which is reasonable based upan all the provisions of this
27 ordinance.
. 28 ~3) The arbitrator shall not allow more than one (1) rent increase per park per
29 twelve (12) month period unless owne~ can clParly establish that the rental
30 increase is necessary to cover costs of operation, maintenance, cap.ital
31 improvements or substantial rehabilitat.ion not reas~nably foreseeable at
32 the time notice of the preceding rent increase was ~iven.
33 (4) The decision of the arbitrator, rendered in accordance w:th this section,
34 shall be firal and binding u~on tfie ~wner and all affected tenants. The
35 decision of the arbitrator will be subject to the provision of California
36 Code of Civil Procedure Sectioii 1094.5.
14
~~~o~949N~S
1 (5) Any party may have electronic recording equipment or a court reporte.r
2 present to record and ~repare a transcript of the hearing before the
3 arbitrator, howevn,r, such equipment or reporter shall be provided at that
4 pa:ty's own expense however no electronic equipment or court rep~rter is
5 required to conduct the arbitration.
6 (6) The arbitrator is authorized to modify the basic time periods set foi~th
? herein at his or her discretion to promote the purposes of this program
8 provided a final decision is rendered within ninety (90) days of the notice
9 of rent increase.
lU (7) Any procedural or jurisdictional dispute regarding the processes set forth
11 herein may be decided by the arbitrator.
12
13 6.50.070 - Ri hts of "Tenant-to-be".
14 Any person who is a"tenant-to-be" as defined in Section 6.50.020(X) must be offered the
15 option of renting a mobilehome space in a manner which will permit the "tenant-to-be" to receive
16 the bei:etits of the~ Mobilehome~ Space Rent Stabilizaiion Pmgram which ~inclu~es, but is not
17 limited to, rental of a mobilehome space on a rnonth-to-month-basis, a~id a~new base rent as set
~8 fort~ in Sec.tion.E.~0.240(B). Such ~~ersar~ cannc~t be denie~ the option of a tenaric,~ tweive
19 ir_onths cr less zti. ctirat;on. 'I'he park ~owner sliall proti•idz eaclt:~"tenant-to=be" w~i~_l.- a written
'~G ~~otificatian o~ the c~pti~~n v~hicli shall n-iake the fo:lo~~,ing r~citation: "UI~?DEi~ 1'E'I'.f1L,?~~~1A
2~ R~~UI~TI~;1PtiL COI?E SECTION 6.50.070, YUU ARE LEGALLY ENTITLED "fG L"LECT A
22 ~MC?NTH-TO-:V~ON~TH~ TLNANCY CjVE~'_ ~NY Q'I'HEI'< LQNGER PERIODIC: TFNAI~iC~'.
2j YOLT ARE ADVISED THAT YOU MAY NOT BE ENTITLED TO RENT STABILIZATION
24 (RENT CONTROL) PROGRAM BENEFITS IF YOU ELECT A LEASE OF MORE THAN
25 T~`VELVE MONTHS IN DURATION IF THAT LEASE MFETS THE REQUIREMEI~TTS OF
26 CIVIL CODE SECTION 798.17 WHICH HAS BEEN ATTACHED HERETO". Any effort to
27 circumvent the requirements of this section shall be unlawful, as well as an unfair business
28 practice subject to enforczment under Business and Professions Code Section 17200 et seq.
29
30 6.50.080 - SubDena Po~~~er
3t Subpenas, including subpenas duces.,tecum, requiring a person to attend a particular time
32 and place to testify as a witness, may be issued in connection with any dispute pending before an
33 arbitrator, and shall be issued at the request of the Clerk, an arbitrator, the tenant(s) or the owner.
34 Subpenas shall be issued aiid attested by the Citv Clerk. A subpena duces tecuiri shall be issued
35 only upon the filing wit11 the City Clerk of an affidavit sho~ving good cause for the production of
36 the matters or thi.ngs desired to be produced, setting forth in fuIl detail the materiality ~hereof to
15
~~~e194~NCS
1 the issues involved in. the proceedings, and stating that the ~viiness has the desired rriatters or
2 things in his or her possession or under his or her control, and a copy of such affidavit shall be
3 served witr~ the subpena. Any subpena or subpena duces tecum issued pursuant to the provisions
4 of this ordinance may be served in person or by certified mail, return recei~t requested, and must
5 be served at least five (5) days before the hearing for which the attendance is sought. Service by
6 certified mail shall be compiete on the date of riceipt. Any subpena ar subpena duces tecur:i
7 issued pursuant to the provisions of this ardinance shall be deemed issue~i by and in the name of
8 the City Council of the City of Petaluma.
9
l0 6.50.090 - Consolidation of Petitions.
11 As soon as possible after a petition has been filed with respect to mobilehome spaces
12 which are ~~ithin a single park, the Clerk shall, to the extent possible, consistent with the time
13 limitations provided herein, consolidate petitions involving ten (10) or fewer affected tenants.
14
15 6.50.100 - Standards of Review.
16 In evaluating the space increase proposed or itnposed by tlie o~vner, the following factors
17 or any other factors deemed relevant to the arbitrator may be considered:
18 A. Beneticial increases. in maintenance and o~eratin~ . e~pens~:~, including but not
19 limited to the. reasonable va?uc of tlie a~vner's la~~r arid any increased costs for
20 services provided t~y a r~ublic agene;r; publi~ utility, or ~zt~asi-public zgency or
21 utility, proviu~ed, fio~vever, that any increased costs in reiit stabil~zation
22 administration fees shall be subject to the provisions of Sections 6.50.040(B) and
23 6.50.160 herein.
24 B. The substantial rehabilitation or the additic~n of capital imprcvernents, including
25 the reasonable value of the o~~~ner's labor, as long as sucn rehabilitation or
26 improvemPnt has been completed and is:
27 (1) distinguished from ordinary repair or maintenance;
28 (2) for the primary benefit, use, and enjoyment of tne tenants;
, 29 (3) permanently fixed in p~aced or relatively immobile and dedicated to the
30 use of the property;
31 (4) not coin-operated ner one for which a"use fee" or other charge is imposed
32 on tenants for its use;
33 (5) cost-factored and amortized over the good faith estimate of the remaining
34 useful life of the rehabilitation or improvemelit.
35 (6) does not constitute maintenance of the infrastn~cture of gas or electrical
36 lines within the mobilehome park ~or which the public utility has
~~ ~~.~~~9~:9NCS
1 permitted the park o~vner a special premium with the intent that it be used
2 to replace or otherwise maintain tlie system within the mobilehome park.
3 C. Increased costs of debt service dae to a s~le or involuntary refinancing of the park
4 witrin twelve (12) months of the increase provided that:
5 (1) the sale or refinancing is found to have been an arm's length transaction;
6 (2) the proceeds of such refinaclcin~ is found to have been used for park
7 improvements or similar park-related uses; .
8 (3) the aggregate ameunt from which total debt service costs arise constitutes
9 no more than seventy percent (70%) of the value of the property as
l0 established by a lender's appraisal.
i l D. The rental history of the space or the park of which it is a part, including:
12 (1) the presence or absence of past increases;
13 (2) the frequency of past rent increases;
14 (3) the occupancy rate of the park in comparison to comparable parks in the
15 same general area.
16 E. The physical condition of the mobilehome space or park of' which it is a part,
l7 including the quantity and ~uality of maii~tenance and. repdii:s p~;rfarn~ed durin~
18 the preceding twe)ve (12) ;r~onths.
] y F. Any increase or reduction of liousing services since the last rent ilicrease.
2~~ G. Existin~ space rent:s for comparable spaces ir~ camparabie parks.
2,1 H. A decrease in "net operatin~ income" as c~efined in Section fi.~0.110(A).
22 I. A fair return on the property prorated am~ng the spaces of the:•park.
23 J. Other tinancial information which the owner is wrilling to provide,
24 K. Any costs incurre3 as a result of a natural disaster and onl jr to the ex~ent such
25 costs have not been reimbursed to the owner by insurance or other sources.
26 L. Notwithstanding any other provision to the contrary, no provision of tliis section
27 or this Chapter shall be applied to prohibit the granting of a r~nt increase that is
28 demonstrated to be necessary to provide owner with a fair and reasonable return.
29
30 6.50.110 - Net Operatin$ Income.
31 In evaluating a space rent increase im~csed by an owner to maintain the o~vner's net
32 operating income from the park, the following definitions and provisions shall apply:
33 A. "Net operating income" af a mobi?ehome par~ means the gross income o~' the
34 park less the operating expenses of the park..
~~~o1~~9NCS
~~
1 B. "Gross income" means the sum of the following:
Z (1) gross space rents, computed as gross space rental income at 100%
3 occupancy;plus
4 (2 j other in~ome generated as a resull of the operation of the ~ark, includin~,
5 but not limited to, fees for services actualiy rendered; plus
6 (3) revenue received b~~ the plrk 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
9 utilities to the residents minus the amount paid by the park owner for such
l0 utilities to the utility provider; minus
11 (4~ uncollected space rents due to vacancy and bad debts to the extent that the
12• same are beyond the park owner's control. Uncollected space rents in
13 eacess of three percent (3%) of gross space rent shall be presumed to be
14 unreasonable unless established otherwise and shall not be included in
15 computing gross income. Wl,~ere uncollected space rents must be
16 estimated, the average of the precedir~g t~~ree (3) years experience sha!1 be
17 used.
18 C. "~~erati~zr ex~enses" rrieuns:
19 (1) Real property taxes and assessments.
<<r (2 j LTtiTi.ty costs to the extent that trie~~ are~incl~aded in snace z•ent.
2~ (3) Management eYpenses inctudinb the compensatio.i of administr~ative
2z . per~onnel, inclu.~ing the value of any niobiTe.home.space: ~ffercd as ~art o{~~.
23 compensation for such services, reasonable and necessary advert:ising to
24 ensure occupancy only, legal and accounting services as permitted herein,
2s ana otr~er managerial eYpenses. Management expenses are presumed to be
26 not more than five percent (5%) of gross income, unless established
2~ otherwise.
28 (4) Normal repair and maintenance expenses for the grounds and conunon
?9 facilities including but not limited to landscaping, cleaning and repair of
30 equipment and facilities.
31 (5) Owner-performed labor in operating or maintaining the park. In a~l~lition
32 to the management expenses listed above, where the owner performs
33 managerial or maintenance services which are uncompensated, the owner
34 mav include the reasonable value c~f such services. Chvner-performed
35 labor shall be limited to five percent (5%) of gross income unless the
36 arbitrator finds that such a limitation wauld be substantially unfair in a
is ~~~°~~~4~NCS
1 given case. A park awner must devote substantially all of his or her time,
2 that is, at least forth (40) hours per week, to performing such managerial
3 or maintenance services in order to ~varrant the full five percent (5%)
4 credit of his or her labor as an operating expense. No credit for such
5 services shall be authorized unless a park owner documents the hours
6 utilized in perforrr~ing such services and the nature of the services
7 provided.
8 (6} Operating supp:ies such as janitorial supplies, gardening supplies,
9 stationery, and so farth.
10 (7) Insurance premiums prorated over the life of the policy.
11 (8) Other taxes, fees, and permits, except as provided in Section 6.50.160
12 herein.
13 (9) Reserves for replacement of long-term improvements or facilities,
14 provided that accumulated reserves shall not exceed five percent (5%) of
15 gross income.
16 (10) Necessary capit~l iinprovement costs exceeding existing reserves for
17 replacement. A park owner may include the cost of necessary capital
;8 improvement expenditures which would exceed existing reser~~es far
19 replacenlent. A necessary capital improvement shall be an improvement
20 required to nlaintai~-~ the common facilities and areas of the ~-~ark in a
2.1 decent, safe, and sanitary condition or to maintain the eYisting level of
22 park amenities and services.
23 ~
24 Expenditur~s for necessary capital improvements to upgrade existin~~
25 facilities shall be an allowable operating expense only if the park owner
26 has:
27 (i) Established upon written verification or by other competent
28 ~ evidence to the satisfaction of the arbitrator that the cost of the
29 capital improvements provided to the park tenaiits, for their general
30 use, are factually ~orrect as claimed.
31 (ii) Said capital improvements are wholly compensable to the park
32 owner upon Gppropriate amortization of their cost, together with a
33 reasonable return upon the capital improvement investment made
34 by the park owner.
35 (iii) Any capital improvement expenses shall be amortized over the
36 reasonable life of the improvement or such other period as may be
37 deemed reasonable by the arbitrator under the circumstances. In
~9 ~~~~~~~~NCS
1
2
3
4
5
6
7
8
9
l0
11
12
13
14
15
16
17
is
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
th~ event that the capital improvement eYpenditure is necessitated
as a result of an accident, disaster, or other event for which the
park owner rer,eived insurance benefits, only those capital
improvemen± costs ~~th~,rwise aliowable exceeding the insurance
benefits may be calculated as operating expenses.
(11) Involuntary refinancing of m.ortgage or debt principal. A park owner may,
urider the provisions of this subseciion, be able to include certain debt
service costs as an operating expense. Such costs are limited to increases
in interest payments frem those interest payments made during the period
from May 1, 199~ throu~h 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 or the followin; situations or the equivalent thereof:
(i) 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 Apr.il 30, 1994, for
instan~e, terminatior~ of a Ioan with a balloon payrrient; or
(ii) increased intcr~est costs it;curred as a resul; of z variable interest
rat~ loar~ usel to finance the acquisiti~n of the paxk and entered
into'prror to .Al?ril ~~, 1934. '
In retin~ic.ing, increased interest shall be permitted to be considered as an
operating espense only ~vhere th~ park owner can show that the terms of
the refinancing were reasanabie and consistent with prudent business
practices under the cii•cumstances.
D. Operating eapenses shall not in~lude the follc~wing:
(1) Debt service expenses, except as provided in subsection C(11) above.
(2) Uepreciation.
(3) Any eYperse for ~~vhich the park owner is reimbursed.
(4) Attorneys' fees and costs; except printing costs and documentation as
required by Sectia,-~ 6.~0.050 only, incurred in proceedings before an
arbitrator or in connection witl~ the legal proceedings challe.nging the
decision of an arbitrator ar the validity or applicability of this ordinance.
E. All operating expenses must be reasonable. Whenever a particular eYpense
esceeds the norriial industry or other comparable standard, the park owner shall
bear the burden of proving the reasonableness of the expense. To the extent that
an arbitrator finds a~iy such expense to be unreasonable, the arbitrator shall adjust
the expense to reflect the normal industry• or ather c;omparable standard.
~o ~~~e~~~9NCS
1 6.50.120 - Obli~ations of the Parties.
2 A. If a final decision by an arbitrator finds that a proposed increase or any portion
3 thereof that was previo~xsly inoperativz is justified, the tenant shall pay the amount
4 found justified to tlie ov~n~er within tlliny (~0) days after the decision is made.
5 B. If a final decision by an axbitrator tinds thai an increase or any portion thereof is
6 not justified, the owner sha~l retund any amount found to be unjustified, but that
7 had been paid, to the tenant within thirty (30) days after the decision is made. If
s such refund is not made within the said thiriy (~0) days, the tenant may withhold
9 the amount from the next space rent(s) due until the full amount of the refund has
10 been made. Notwithstan~ing the faregoing, in the event that th~ tenancy of tenant
11 is terminated for any reason prior to full credit against rent, the balance of the
12 credit due the tenant shall be paid by the owner within thirty (30) days from the
13 date of the terminations of the tenancy.
14 C. Any sum of money that und~r the provisions of this section is the obligation of the
15 owner or tenant, as ±he case niay be, shall constitute a debt and, subject to the
16 foregoing provisions of this sectior~, may be collected in any manner ~ravided by
17 law for the collection of debts.
18
19 6.50.130 - Tenant's Right of Refusal.
20 A tenant may refuse to pay any- increase in rent w~ich is iri violation of Lhi~ or•ci?riance;
21 provided a petition has been tiled and eit ~er no final decision has been reached by an arbitrator or
22 the increase has been determined to violate the provisions of this ordinance. Such refusal to pay
23 shall be a defense in any action brouglit to recover possession -of a mobilehorne space or to~
24 collect the rent increase.
25
26 6.50.140 - Retaliator}%Acts: Tenants' Right to Oraanize.
27 No owner may retaliatP against a tenant or tenant-to-be for the tenant's or tenant-~o-be's
28 assertion or exercise of rights under this ordinance in any manner, including but not limited to,
29 threatening to bring or bringing an action.to recover possession of a mobilehome space; en~a;ing
30 in any form of harassment that causes a tenant to quit the premises; dissuades a tenant-to-be from
31 freely exercising his or her legal options to cnoose a month-to-month rental; decreasin~ liunsing
32 services; increasing the space rent; or imposing or increasing a security deposit or any other
33 charge payable by a tenaiit. The tena:-~ts have a ri~;ht to organize a tenant's association ~vithout
34 hindrance from . the park owner tc exercise the r;gh;s provided under the provisions oi this
35 ordinance. This association may be referred to as "the Park Tenant's Association at (Park
36 Name)".
~~ ~~~~ 19 4 9 N C S
1 6.50.150 - Solicitation of Anv Petitions bv the Park Owners are Without Force or Le~al Fffect
2 Within Cit, 'y s Pro J~ram.
3 The distribution of a petition or other. documents seeking to have mobilehome tenants
4 waive rights, abandon a filed petition or in any way affect the entitlement of the tenants to
5 participate in the rent stabilization process authorized under the Petaluma 1~lunicipal Code shall
6 be without force or legal effect within the City's rent stabilization program. Such documents
~ shall not affect the rights of any tenant to participate in the rights, remedies; procedures and
~s processes set forth in this code. Efforts to utilize such documents to discourage participation in
9 the City's rent stabilization program may be deemed retaliatory.
10
11 6.50.160 - Fees/Pavment.
12 The costs of administration of this ordinance shall be borne by the City of Petaluma;
13 subject to reimbursement of the General Fund by imposition of a rent stabilization administration
14 fee chazgeable against each mobilehome space in the City. The park owner who pays these fees
~ 15 may pass through fifty percent (50%) of the fees assessed against a mobilehome space to the
:6 tenant only as set forth herein. This fee pass through must take place no later than ri~elve (12)
;r ~7 mon~.hs after the park owner is billed for the program administration fees. Failure to timely pass
r:: 1R through fifty percent (50°'0) of tl~e.fees assessed against a mobil~home space ~~itl result in the
:;~ .. 1~ loss of the par.k ow~ier's right to do sa. The remaining fifty percent ~i0%) of tre fees assessed
;:. .. 2U again;t a niobiiehome space shall not be passed an in any ~~~ay tc tenants. ~~ees passed tl~.rou~h to
, a; •. 21 tenants as hereir~ authorized shall not be considerecl a part of the rent base upon which future rent
2z increases can be made.
23 The fees imposed by this section shall be paid annually. On or before .Tune l, 1994 of the
24 adoption year of this ordinance and thereafter on or ~efore April 30di of each and eve-y
25 subsequent year, each mobilehome park owner shall pay to the City Clerk of the City of
2E Petaluma a mobilehorr~e park rent stahilization program administration fee for each m.obileY~ome
27 space as defined herein, including both occupied and unoccupied mobilehome spaces, in the
28 owner's mobilehome park except for those spaces subject to a rental agreement in fuli
29 compliance with the requirements of Civil Code Sections 798.17(a) and (b). The City Clerk of
30 the City of Petaluma shall forward these funds to the Clerk to administer the mobilehome park
31 rent stabilization ordinance. Further, the City Clerk of the City of Petaluma shall issue to each
32 mobilehome park owner a receipt for payment of the fees required to be paid herein. Any person
33 owing money to the City under the provisions of this ordinance shall be liable to an action
34 brought in the name of the City for the recovery of such aniount. A service fee equal to 1'/
35 percent (1'/2%) per month will be charged on all late payments of registration fees under this
2~ ~~.~~.~~ ~ 1~~ 9 N~; S
1 ardin~nce. The City Council shall adopt the amount of the fee and any changes thereto by
2 ordinance or resolution.
3
4 6.50.170 - Exem~tion From Fees.
5 Any park owner who believes that he/she may be entitled to a space fee exemption
6 pursuant to Civil Code Section 798.17(b), naving provided the park tenant with a legally
~ recognized long-term lease which is not subject to rent stabilization administration fees, shall
8 provide the Clerk with the following documentation:
9 (1) the executed lease for each exempt space claimed;
l0 (2) amendments to said exempt lease if any;
11 (3) for a newly constructed space, proof that the space was constructed after January
12 1, 1990 (building permits, etc.)
13
14 6.50.180 - Nonwaiverabilitv.
15 Any provision, whether oral or written, in or pertaining to a rental agreement whereby
16 any provision of this ordinance is waived: ur modified, is against public policy and void, except
17 with respect to any rental agreement compl~~ing with all ~f the terms and conditions set forth in
18 Section 798.17 of t~i~ California Civil Code (as amended j.
19
20 0'.50.'] 90 - Penalties and Remeciies.
21 Ir~ addition to those penalties and remedies s~t forth~ elsewhere in this ordinance, the
22 following retnedies shall apply:
23
24 Any owner vrho demands, accepts, receives, or retains any money as rent from a tenant to
25 ~~hich th.e o~~vner is not eiititled under the provisions of this ordinance shall be liable to the tenant
26 for any actual damages, attorney's fees, and costs incuned by the tenant as a consequence thereof
27 plus a penalty in the sum of three times the am~unt of money the owner accepted, received, or
28 retaineci in violation of the provisions of this ordinance or $500.00, whichever is greater.
29
30 6.50.200 - Ri~hts of Affected Tenants Reserved.
31 This ordinance shall not be constnied to limit or curtail any other action or proceeding
32 which may be pursued by an afFected tenant against an owner before any court or other body
33 having jurisdiction thereof.
34
35 6.50.210 - Tennination.
36 This ordinance shall terminate on June 30, 1597 unless repealed earlier by the Petaluina
37 City Council.
2~ ~~~~~~ ~. ~~ 9 N C S
1 6.50.220 - Review bv the Cit, Council.
2 The City Council shall review the effectiveness of this ordinance in addressing the
3 problems giving rise to its enactment at least one (1~ year from its enactment. Notice of the time
4 and place of the Cit~ Council's review shall be published at least ten (10) days prior to said date
5 in a newspaper of general circulation iri the City of Petaluma.
6
? 6.50.230 - _Severabilitv.
8 This ordinance shall be liberally construed to achieve its purpose and preserve its validity.
9 If any provision or clause of this ordinance or applicatian thereof to any person or circumstances
10 is held invalid, such invalidity shall not affect other provisions or applications of this ordinance
i l which can be given effect without the invalid provision or application, and to this end the
12 provision of this ordinance are declared to be s~verable and are intended to have independent
13 validity.
14
15 6.50.240 - Vacancv Control - Establishment ofl~lew Base Ren .
16 A. A mobilehome park owner shal] be permitted tc char,e a new base rent for a
17 mobiiehome space whenever a lawful spa.ce vacancy occars. For purposes of this
18 Chapter, a lawful space vacancv i~ u~iined a~ f~rll~~~~~;:
19 (1) A-vacancy occurring because of the te:nzination of the tenancy of the
20 affected mobile?~o~ae ten~~~t in accordarce with the Mohilehome
21 R.esidcney Law, C«Ii ~;rnia Civil ~ode Sections ?98.5~ through 798.60, as
22 amended: or
23 (2) A var,ancy of the mo~ilehon~ie space arising from the voluntary removal of
24 a mobilehome from tre mo'~ilehorne space by the affected mobilehome
25 tenant. A removal of the. mobilehorne fram the space for the purpose of
26 performing rehabilit~±ion or capital improvements to the space or ior the
27 purpose of upgrading the mobilehome shall not constitute a voluntary
28 removal of the mobilehome.
29 B. When a new base rent is established following the vacancy af a mobilehome
30 space pursuant to this stibsection, tl~e park owner shall give written notice to the
31 new affected mobilehom~ teriar,i of the twelve (12) month annivers~-y date for
32 rent inereases allowed urfder Sect.ion 6.50.040 and shall give written notice to
33 such affected tenant that the space rent may be subject to stabilized rent increases
34 ~ursuant to the provisions of this Chapter..
35 C. In the absence of a lac~~ful vacancy, a park owner is prohibited from raising rent
36 upon a sale of a mobilehome on site to a tenant-to-be or current tenant.
.z~ ~~,.~v ~ ~ ~ 9 N C S
1 6.50.250 - Reserved.
2
3 6.50.260 - Reaistration of Parks.
4 A. On or befare June 1, 1994, each mobil~home park owner must register the parks
5 which they own or operate ~vith ihe City Clerk by filing with the City Clerk a
6 letter or other instrument in writing which identifies the park and which furnishes:
7 (1) The current znailing address of o~vners and operators;
~ (2) The number of spaces in the park;
9 (3) The number of spaces under construction, if any, ar planned for
10 construction;
11 (4)
12 (5)
13
14 (6)
15
16
The identity of present tenants and lessees, and tlleir mailing addresses;
The rental, lease payments and qther considerations charged for the use of
the space; and
A description of the park and the services, amenities and other
consideratior:s to the tenants and iessees which the o~~ner or operator may
consider as bearing on the question of fair rental amounts.
1~ B. On or before April 30th of ea~h year subs~quent to the adaptior. yeax, euch
18 mobilehome park o~vner in the C~ty of Petaluma, as loi~g as ihe City Cauncil far
ly the City of Pet~lum.a may so authorize and/or allo~; shall register with the City
~0 Clerk of the City of Petalui,~a by prov~ding, lIl ;vri±ing, the name ail~~ a~dress of
21 e~ch such mobilehome owner, and a statement of the number of mobilehome
2z spaces including both occupied ~nd unoccupied spaces, contained in each such
23 park, and a statement of the number af recreational vehicle spaces in the park:
24 Re-registration and provisic~n of this information must also bc inade upon change
25 of ownership of the mobilehome park or an increase or a decrease in the number
26 of spaces.
27
28 Section 2. If any section, subsection, sentence, clause or ph~ase or w~rd of this ordinance
29 is for any reason held to be unconstitutional by a court of competent juriseiiction, such decision
30 shall not affect the validity of the remaining portions of this ordinancP. The City Co~.incil ~.~f the
31 City of Petaluma hereby declares that it would have passed and adopted this ordinance arid each
32 and all provisions thereof irrespective of the fact that any one or more of said provisions be
33 declared unconstitutional.
34
35 Section 3. If an injunction or any other administrative or judicial challenge interferes
36 with the timely implementation of this ordinance before the lapse of the terni of the City's rent
~~~~~y 19 ~9 ~ C S
25
i stabilzzation ordinance, the City Council hereby declares that it ordains that said rent stabilization
2 ordinance, together with the accompanying administrative fee ordinances shall not sunset but be
3 co;~t~nued indefinitely uritil said challenge is overcome. This action is undertaken so that the
~ level of rent stabilization protection established shall continue to be provided te the affected
5 mobilehome park tenants of Petaluma uiitil further action of the City C~uncil.
6 ~
7 ection 4. The City Clerk is hereby directed to ~(publish this ordinance for the period
8 and in the manner required by the City Charter.
9
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21
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ection 5. This ordinance shall take effect thirty (30) days after its passage.
INTRODUCED and ordered posted/published this ~~ day of 9~g~~ e ,
1994.
4
ADCPTELI this 4th =v~ day of April , 1994 by the following vote:
AYES: Sobel, Hamilton, Barlas, Shea, Vice Mayor Read
NOES: Mayor Hilligoss
.~L~~E?tiT~T: 1 vacant seat
f: TT'EST
~ ~~~% Lf.~ '
~it Cler
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26 ~~{'~~,~} ~(`~~ I~~~^ ~ C~ 4~ N C S
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