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HomeMy WebLinkAboutOrdinances 1949 04/04/199421 22 23 24 25 26 Introduced by JANE HAMILTON ORDINANCE NO. 1949 Seconded by N.C.S. CAROLE BARLAS AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA ADDING CHAPTER 6.50 "MOBILEHOME PARK SPACE RENT STABILIZATION PROGRAM" 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: CHAPTER 6.50 - MOBILEHOME PARK SPACE RENT STABILIZATION PROGRAM 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 6,50.060 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 6.50.100 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 6.50.180 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 - Findings and Pose. 2 A. For several years, mobilehome tenants have requested that the City of Petaluma 3 enact a mobilehome park space rent stabilization ordinance. Various meetings 4 have been held with mobilehome park owners and mobilehome park tenants to 5 address concerns raised by both groups regarding rental increases, vacancy 6 control, and other issues. 7 B. In March 1993, the City Council was presented with a request for consideration of 8 a fair mobilehome rent ordinance. In April 1993, the City Council appointed to 9 the existing mobilehome rent review committee which consisted of 10 Councilmembers, three mobilehome park owner representatives, and three 11 mobilehome park tenants. After several meetings, it was reported to the City 12 Council in July 1993 that it did not appear that an agreement could be reached and 13 that further discussions would not be fruitful. 14 C. Subsequent City Council meetings were held in which various issues were 15 discussed and from which input was received from both mobilehome park owners 16 and: mobilehome park tenants and their representatives. 17 D. Because of the inability of the park owners and park tenants to reach a resolution 18 of their differences,- ther City Counc ,::retained -,the: -services of Coryrierly 19 Associates, -inc.;.an experienced corisultant, to conduct;a,mmbileliome park survey. 20 Tho purpose of the..:survey was -to coileet relevant --information on rt obileliorne 21 park resident characteristics, space rents, nd.the inobileilonre•parks in Petaluma. 22.. E. On November.-15, 1993, Connerly & Associates, Inc. submitted- to the City 23 Council a written report detailing their findings, which included the following: 24 (1) Nearly 60 percent (60%) of the survey respondents -were single adults, 25 while virtually all the remaining. respondents comprised two -person 26 households. There were only four respondents who reported having three 27 household members. 28 (2) Most of the respondents, nearly 80 percent (80%) reported being age 62 or 29 more. 30 (3) The majority of respondents at all the mobilehome parks reported being 31 "low income", meaning they earned less than $23,850 per ,year fora single 32 person, or $29,500 per year for a two -person household. For all the parks, 33 nearly 90 percent (90%) of the sur,,ey respondents are low income. 34 (4) Over 50 percent (50%) of tiie residents in all but one mobilehome park 35 reported their income as being within the "very low income" range, 36 $16,150 for a single person or $18,700 for a two -person household. About 2 O 01949NCS 1 60 percent (60%) of the survey respondents in all the parks reported their 2 income as being at the "very low income" level or less. 3 (5) Just over half the respondents in all the mobilehome parks reported they 4 pay more than 30 perce;it (300,10) of their income for housing expenses 5 (space rents; mortgage, if any; utilities; property taxes or registration fees; 6 and homeowner's insurance). About 40 percent (40%) of the residents 7 reported paying more than 35 percent (35%) of their income for housing 8 expenses. 9 (6) The average rents in the parks, as reported by residents responding to the 10 surveys, range from 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 comparison, the average space rent reported by 13 respondents for all the parks was $202 in 1986. The average space rent 14 reported by residents were within $5 to $10 per month of those reported by 15 the park owners. 16 (7) The average rental space rent increase was 5 percent (5%) per year 17 between 1986 and 1993. 18 (8) None of the park: owners responding to the survey reported vacant 19 mobilehome spaces. 20 J.;. The .ity Coun.cil.has discussed and reviewed the above findings and conclusions, 21 and has received information through public hearings and concludes, based on 22 said information and the findings herein, that it: is necessary and in the public 23 interest to establish a mechanism to assist in the resolution of disputes that may 24 arise from time to time between residents and park owners regarding the rates 25 charged for rental or lease of space as well as instances where there is a sale or 26 transfer of the mobilehomes by the mobilehome 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 income 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 to 31 approve rent increases as are reasonable to meet said ends. At the same time there 32 is a need to establish a means which if followed can provide protection to tenants 33 from unreasonable rent increases resulting in loss of value to their property. 34 G. A significant majority of the residents of mobilehome parks in the City of 35 Petaluma are older individuals or couples living on fixed incomes. These 3 6,t1,0J,-1949NCS I residents qualify as "lcv, ' and "very low" income households and typically 2 expend more than 30 percent (30%) of their income on housing related expenses. 3 H. Nearly all mobilehome park residents own and occupy their mobilehome and have 4 made a substantial monetary investment to live in a mobilehome park. 5 I. Residents of a mobilehome park have very limited mobility due to the difficulty 6 and expense of relocating a-mobilehome. 7 1 There is a limited amount of alternative housing affordable to and suitable for the 8 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 is committed to assisting in the preservation 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 there is a shortage of spaces for the location of 15 mobilehomes in the City, a condition which results in low vacancy rates and tends 16 to prevent normal competition between the owners and tenants of mobilehome 17 parks. Rents have been for several years and are presently rising at rates in some 18 instances greater than increases in the CPI, which has caused concern to a 19 substantial number of mobilehome owners. The City Council finds that a 20 substantial number of mobilehome: owners in the City have for a !on- time 21 asserted a need for rent control and that efforts of the City Council in the past to 22 mediate, differences between park owners and their tenants have been notably 23 unsuccessful. 24 M. Due to their limited incomes, the large investment in their mobilehomes, the 25 immobility of mobilehomes, and the shortage of spaces for mobilehomes, 26 mobilehome owners generally have very 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 accordance with constitutional 30 requirements. For these reasons it is intended that the respective provisions of the 31 ordinance be liberally construed and be considered severable, and that if 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 imposition of exploitive, excessive and unreasonable 36 mobilehome space rent increases; 4 .1949NCS 1 (2) Assist in alleviating the unequal bargaining power which exists between 2 mobilehome park residents and mobilehome park owners; 3 (3) Provide mobilehome park. owners with a guaranteed rate of annual space 4 rent increase which accurately reflects the rate of inflation; 5 (4) Provide an efficient and speedy process to ensure mobilehome park 6 owners receive a fair, just and reasonable rate of return in cases where the 7 guaranteed annual space rent increases provided by this ordinance prove 8 insufficient; 9 (5) In the absence of a lawful vacancy, prevent excessive or exploitive rent 10 increases upon the transfer of a mobilehome-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 owners are assured of 13 receiving a fair and reasonable return. 14 15 6.50.020 - Definitions. 16 For purposes of this chapter, the following tern is shall.be defined -as- follows: 17 A. "Aff€cted Tenants" means those tenants whose space is not covered by a valid 1s lease meeting: the requirements as outlined:;iri,,Section.798>1'/(b)•of�ti:e°California. 19 Civil Code onotherwise legally exempt from -loci rent control re, ulati.on. Such ��. tenants are to be notified that -a space rent increase is to become,.effectdve. For 21 purposes of providing notice of the increase; providing copies- of the rent 22 stabilization. ordinance, and support of a rent- arbitration'. petition, each space- 23 - subject to a rental increase shall be deemed to have only one "affected tenant" for 24 administrative convenience to the park owners. The reference to "all affected 25 tenants" will refer to one representative tenant from each space subject to the 26 proposed rental increase. 27 B. "Arbitrator" shall mean a person (1) who is neither a tenant as that term is defined 28 in this. ordinance nor who has an interest in a mobilehome park of a nature that 29 would required disqualification under the provisions of the Political Reform Act if 30 the person were an elected state official and (2) a person whom the Clerk of the 31 Petaluma Mobilehome Space Rent Stabilization Program (see (E). below) 32 determines meets one of the following criteria: 33 (i) completion of a Juris Doctor or equivalent degree from a school of law 34 and completion of a formal course of training in arbitration which, in the 35 sole judgment of the Clerk, or designee, of the Petaluma Mobilehome 36 Space Rent Stabilization Program, provides that person with the 5 09Mo 19 4 9 N C N I knowledge and skills to conduct a space rent dispute arbitration in a 2 professional and successful manner; or 3 GO completion of at least three arbitration proceedings for a Superior 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 space rent dispute arbitrations. (iii) served as a California Superior 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 10 adjustment attributable to vacancy 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 useful life or adapt it to ne;v uses, and. 1.6 which may be amortized over the useful remaining life- ofthe improvement to the 17 property. 18 G. "Consumer Price Index" means the Consumer- - Price Index for a11: Urban 19 Consumers San Francisco -Oakland Area, published by the U.S. Department of 20 Labor, Bureau of Labor Statistics. 21 _ H. "Housing service" means a service provided by the owner related to the use or 22 occupancy of a mobilehome space, which is neitlier•:a capital; improvement: nor 23 substantial rehabilitation as those terms are defined herein, including but not 24 limited to, repairs, replacement maintenance, painting, lighting, heat,. water, 25 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 being 28 moved on a street or highway under permit pursuant to Section 35790 of the 29 California Vehicle Code. "Mobilehome" includes a manufactured home, as 30 defined in Section 18007 of the California Health and Safety Code, and a 31 mobilehome, as defined in Section 18008 of the California Health and Safety 32 Code, but does not include a recreational vehicle, as defined in Section 799.24 of 33 the California Civil Code and Section 18010 of the California Health and Safety 34 Code, or a commercial coach, as defined in Section 18001.8 of the California 35 Health and Safety Code except when such a vehicle has continuously remained 36 within a mobilehome park for a period in excess of nine (9) months. I J. "Mobilehome Park" means any area of land within the incorporated areas of the 2 City of Petaluma where two (2) or more mobilehome spaces are rented, or held 3 out for rent, to accommodate mobilehomes used for human habitation. 4 K. "Mobilehome park owner" means any owner, lessor, 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 park located in the 12 incorporated areas of the City of Petaluma intended, designed, or used for the 13 location or accommodation of a mobilehome and any accessory structures or 14 appurtenances attached thereto or used in conjunction therewith except (1) sites 15 rented together and concurrently with a mobilehome provided by the mobilehome 16 park owner and. (2) "new construction" as defined by California Civil Code 17 Section 798.45. The teen "mobilehome space" shall also include, for purposes of 18 this rent stabilization. ordinance and accompanying fee ordinance, rentable spaces 19 within mobilehome parks which have been occupied by a "recreational vehicle" as 20 defined by California Civil Code Section 799.24 for a period of nine (9) months 21 or more. 22 M. "Mobileroine tenant" means a tenant, subtenant, lessee, or sublessee, or any other 23 person entitled to the use or occupancy of any mobilehome space not otherwise a 24 party to a rental agreement exempt 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 30 owner involved in proceedings under this ordinance. 31 Q. "Percent change in Consumer Price Index" means the annual percent change in 32 the Consumer Price Index (hereinafter "CPI"), calculated to the nearest tenth. For 33 the first percent change in Consumer Price Index, it shall be calculated using the 34 CPI published for the month of March, issued in the month of April. In the event 35 an index is not published for the month of March, the closest preceding month for 36 which an index is published shall be used. Subsequent yearly percent changes in 7 I CPI shall be calculated to the nearest tenth, published for the month of July, 2 issued in the month of August. In the event that an index is not published for the 3 month of July, the closest preceding month for which an index is published shall 4 be used. It is the intent of this ordinance to fix the CPI in the beginning of the 5 fiscal year, for the rest of the fiscal year barring an unforeseen failure to publish a 6 CPI for the month of Jul,. 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 including any reduction in 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. "Rent Stabilization Administration Fee" means the fee established from time to 14 time by resolution or ordinance of the Petaluma City Council in accordance with 15 the provisions of Section 6.50.160 herein. 16 U. "Space rent" means the total consideration, .including- any bonus, benefit, or 17 ' gratuity, demanded or received by a mobilehome park owner for or in connection 18 ;with the:. us,_ - =or. ioccut-?arcy of a nnobiiehome 'space or any housing services 19 . . provided with the- mobilehome space. Space -rent shall not include ;anv amount 20 plaid forthe use.or occupancy of a mobilehon;e dwelling unit, unless the amount 21 paid for the -use or -occupancy of a mobilehome is or includes consideration paid to 22 a mobilehomepark;.owner under a rental agreement or other document evidencing 23 tenancy of the mobilehome. 24 V. "Substantial rehabilitation" means that work done by an owner to a mobilehome 25 space or to the common areas of the mobilehome park, exclusive of a capital 26 improvement as that term is defined herein, the value of which exceeds Two 27 Hundred Dollars ($200.00) and which is performed whether to secure compliance 28 with any state or local law 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 tenant. 32 X. "Tenant -to -be" means a person who is not currently a tenant in a mobilehome 33 park but is a prospective mobilehome space tenant who desires the use of a 34 mobilehome space as defined in this Chapter and has presented himself{herself to 35 the park owner as such. 8 o ma1949NCS I Y. "Initial rent increase" means the first rent increase imposed by a mobilehome park 2 owner after the effective date of this ordinance. 3 4 6.50.030 - Base Rent - Tnitial Calculation. 5 A. Except as hereinafter provided, an owner shall not demand, accept, or retain rent 6 for a mobilehome space exceeding 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 8 the effective date of this ordinance, 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 mobilehome 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 request to the Clerk requesting an opportunity to adjust said 17 initial base rent and shall supply both the Clerk and each Affected Tenant with the 18 notice of .request -along with the grounds for any such request. The matter shall be 19 submitted to arbitration as prescribed M Section 6.5U60(E) and (F). 20 21 6.50.040 - Residential Rent Increase Limitations. 22 A. Except as provided. in ,subsections B. or C., or otherwise -expressly authorized in 23 this Chapter, the space rent payable for use or occupancy of any mobilehome 24 space shall not be increased within twelve (12) months of the. effective date of the 25 preceding rent increase. Except as provided in subsection E or otherwise 26 expressly, authorized in this Chapter, no Initial Rent Increase shall be imposed 27 sooner than twelve (12) months after the last preceding rent increase regardless of 28 whether the preceding rent increase was effective prior to the effective date of this 29 ordinance. Said increase shall be the lesser of. 30 (i) One hundred percent (100%) of the percent change in the CPI; or 31 (ii) Six percent (6%). 32 B. If a park owner wishes to apportion to each space on a pro rata basis the allowable 33 percentage of any current rent stabilization administration fee, in addition to any 34 increase of space rent in accordance with preceding Section (A), the following 35 provision shall apply: 9 OR u1949NCS 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 minimum such documentation shall 4 include: billing notices or other equivalent 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 10 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 shall not be considered part of the rent base upon. which fixture 16 rent increases can be made. 17 C. In the event an owner wishes to increase the rent payable for any mobilehome 18 space within the twelve (12) month period Poore than the aniount permitted in 19 subsection (A) for any reason other -than that stated in subsection (B) herein, the 20 procedures set forth.in_Sections 6.50.050 and 6.50.060-slia!]-be followed. In the 21 event an. owner wishes to increase the rent payable for any mobilehome space 22 within the --twelve (12) month period more tlian .three: hundred percent (300% Q) of 23 the percent change in the CPI, arbitration shall automatically be required to show 24 good cause why such an increase is necessary. The arbitrator may reduce this 25 proposed increase to a figure determined 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 Section 6.50.040(A), (B) 28 or (C) of this ordinance shall be given 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 6.50.020(Y) may be allowed 31 within twelve (12) months of the effective date 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 wishes to 35 increase rent payable for any mobilehome space under this subsection (E), the 36 procedures set forth in Sections 6.50.050 and 6.50.060 shall be followed. 10 G.19 4 9 N CS 1 6.50.050 - Information to be Supplied Tenants and Tenants -to -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 4 tenant or tenant -to -be with a current copy of this ordinance. 5 B. Whenever the owner serves a notice of rent increase, except a notice of rent 6 increase provided pursuant. to Section 6.50.040(A) of this ordinance, the owner 7 shall at the same time and in the same manner serve the affected tenant or tenant- 8 to -be with a notice that sets forth all of the following information: 9 (1) The amount of the rent increase both in dollars and as a percentage of 10 existing rent and documentation supporting the level of increase desired, 11 including at a minimum: a summary of the unavoidable increases in 12 maintenance and operating expenses; 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 owner's debt service and the date and nature of the sale or refinancing 16 transaction; a summary of the owner's net operating income of the 17 preceding 24 months and other relevant information that supports the level 18 of rent, increase:desircd. 19 (2) The identity of all other -all fected tenants- and the spaces which they rent . E 20 and.a roster -of.tcria_its in the park occupying recreational vehicles in place 21 for more than nine (9) months; and 22 (3) The address- and telephone- number of the Clerk and (a) the fact that the 23- tenant is encouraged to contact the Clerk for an explanation of the 24 provisions of this ordinance; (b) documentation supporting the level of 25 increase 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 owner shall place on file with the Clerk two copies of: 29 documentation supporting the level of increase desired, including at a 30 minimum: a summary of the unavoidable increases in maintenance and 31 operating expenses; a statement of the cost, nature, amortization, and 32 allocation among mobilehome spaces of any substantial rehabilitation or 33 capital improvement; a summary of the increased cost of the owner's debt 34 service and the date and nature of the sale or refinancing transaction; a 35 summary of the owner's net operating income of the preceding twenty-four 36 (24) months and other relevant information that supports the level of rent 11 ODA949NCS 1 increase desired. These documents will be available for inspection at the 2 offices of the Clerk. 3 (6) If applicable, notification that the proposed rent increase exceeds '500 4 percent (300%) of the r_iiange in the CPI, and that arbitration is deemed 5 automatically required by the provisions of Section 6.50.040(B) without 6 any need to file an arbitration petition. Such notices shall bear the 7 following language: "ARBITRATION OF THE PROPOSED INCREASE 8 IS AUTOMATICALLY" RF,QUIRED IN THIS MATTER BY 9 OPERATION OF LAW". Erroneous use of this notice shall be regarded 10 as an irrevocable stipulation to the jurisdiction of the arbitrator. 11 C. The park owner shall also serve any tenant -to -be as defined in Section 12 6.50.020(X) with a separate "RENTAL 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 entitled to collect any rent increase otherwise authorized by this ordinance from 17 that tenant nor to any rent increase that might otherwise be awarded by an 18 arbitrator. Such failure, by the owner shall be a defense in any action broua t by 19 the owner to recover possession of a mobilehome space or to collect any rent 20 increase from the tenant. Aviv owner rnav cure the fail re to service any notice or 21 meet the obligation to provide information to a tenant or tenant -to -be which is 22 required under this: ordinance by giving such notice or information before 23 initiating an action for possession of the space or collecting any rent increase or 24 binding a tenant to be to a month -to -month rental/long-term lease election 25 otherwise authorized hereunder. 26 E. An affected tenant who is given notice of a rent increase is entitled to file a 27 Petition for Space Rent Review as provided in Section 6.50.060 of this ordinance 28 in spite of the fact that the owner has failed to provide the affected tenant(s) with 29 all the information, documents and notices required by this ordinance. 30 31 6.50.060 - The Rent Dispute Resolut.n z. P0cess, 32 A. Tenant's Riaht to Contact Clerk. The tenant may contact the Clerk of the City of 33 Petaluma Mobilehome Space Rent Stabilization Program for an explanation of the 34 provisions of this ordinance. 35 B. Petition. If the tenants dispute any rent increases, the tenants or their 36 representative shall file with the Clerk a Petition for Space Rent Review and a 1" oRD.1 9 4 9 N C S I copy of the notice of rent increase, if available, within twenty-one (21) days after 2 the date upon which the rent 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 all affected tenants. Upon the filing 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 petition is abandoned except for that portion of the rent 7 increase that equals the increase allowable in Section 6.50.040(A) shall be 8 collectable as noticed. As used herein, the term "abandoned" refers to lack of 9 prosecution of the arbitration by the mobilehome tenants' representative(s). An 10 automatic arbitration based upon a 30011% 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 toward preparing the 13 tenants' case for the arbitration hearing. 14 C. Contents of Petition. 15 (1) The Petition for Space Rent Review shall set forth the total number of 16 affected rented spaces in the mobilehome park, shall identify the space 17 occupied by each tenant and shall state the date upon which the notice of 18 the rent increase was received by the tenant(s). 19 (2) After obtaining -the required signatures, the. tenant(s) shall deliver the 20 petition or mail it by registered or certified mail to the Clerk at the 21 following address: Petaluma City Hall,11 English Street, Petaluma, 22 California 949520r successor address or agency). No petition 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 twenty-one (21) day 25 period set forth in paragraph B. above. The Clerk shall provide a copy of 26 the completed petition form to both parties and the arbitrator forthwith or 27 within five (5) working days. 28 D. Information Questionnaire. After the Clerk has accepted a Petition for Space Rent 29 Review, the Clerk shall remit to the owner and tenants an information 30 questionnaire in such form as the Clerk may prescribe. The completed 31 information questionnaire must be returned to the Clerk at least five (5) working 32 days prior to the date s1-i'.duled for E dr1°rig of the petition by the arbitrator. 33 Copies of the completed information questionnaire shall be provided to the 34 arbitrator and the opposing party. 35 E. Assignment of Arbitrator and Hearing Date. Upon receipt of the petition, or in the 36 event of an automatic arbitration, or upon an affected tenant's claim of a vacancy 13 ORD. 1 949N CS I control violation where 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, within five (5) working days, assign an arbitrator. The Clerk shall 4 set a date for the arbitration hearing no sooner than five (5) nor later than ten (10) 5 working days after the arbitrator is assigned. The owner and affected tenant(s) 6 shall be notified immediately in writing by the Clerk of the date, time, and place 7 of the hearing and this notice shall be served either in person or by ordinary mail. 8 F. Arbitration Hearing. 9 (1) The owner and tenant(s) may appear at the hearing and offer oral and 10 documentary evidence. Both the owner and tenant(s) may designate a 11 representative or representatives to appear for them at the hearing. The 12 arbitrator may grant or order one (1) continuance not to exceed five (5) 13 days to each party from the 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 owner by a 16 preponderance of the evidence. The hearing need not be conducted 17 according to technical rules relating to evidence and witnesses. The rules 18 of evidence and manner of producing evidence shait be those rules set 19 forth in Section 11513 of ti?e California. Goverrnrent-Code for.the Conduct 20 of hearing under the Administrative Procedure Act. These rules may be 21 relaxed at the discretion of the arbitrator in the interest of justice. 22 . (2) The arbitrator shall, within fourteen (14) days: of the hearing, submit by 23 mail a written statement of decision and the reasons for the decision to the 24 Clerk who shall forthwith distribute by mail copies of the decision to the 25 owner and tenant(s). The arbitrator shall determine the amount of rent 26 increase, if any, which is reasonable based upon 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 owner can clearly establish that the rental 30 increase is necessary to cover costs of operation, maintenance, capital 31 improvements or substantial rehabilitation not reasonably foreseeable at 32 the time notice of the preceding rent increase was given. 33 (4) The decision of the arbitrator, rendered in accordance with this section, 34 shall be final and binding upori the owner and all affected tenants. The 35 decision of the arbitrator will be subject to the provision of California 36 Code of Civil Procedure Section 1094.5. 14 D.1949NCS 1 (5) Any party may have electronic recording equipment or a court reporter 2 present to record and prepare a transcript of the hearing before the 3 arbitrator, however, such equipment or reporter shall be provided at that 4 party's own expense however no electronic equipment or court reporter is 5 required to conduct the arbitration. 6 (6) The arbitrator is authorized to modify the basic time periods set forth 7 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. 10 (7) Any procedural or jurisdictional dispute regarding the processes set forth 11 herein may be decided by the arbitrator. 12 13 6.50.070 - Rights 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 benefits of the. Mobilehome- Space Rent Stabilization Program which -includes, but is not 17 _limited to, rental of a mobilehome space on a rnonth-to-month-basis, and anew base rent as set 18 forth in Section .6.50.240(13). Such a person cannot be denied the option of a tenaricy twelve 19 months or less in. duration. The park owner shall provide eacli-. "tenant-to=be" with- a written 20 notification of the option which shall make the following recitation: "UNDER PET.ALUMA 21 MUNICIPAL CODE SECTION 6.50.070, YOU ARE LEGALLY ENTITLED TO ELECT A 22 MONTH -TO -MONTH TENANCY OVER ANY OTHER LONGER PERIODIC TENANCY. 23 YOU 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 TWELVE MONTHS IN DURATION IF THAT LEASE MEETS THE REQUIREMENTS 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 enforcement under Business and Professions Code Section 17200 et seq. 29 30 6.50.080 - Subnena Power 31 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 and attested by the City Clerk. A subpena daces tecuin shall be issued 35 only upon the filing with the City Clerk of an affidavit showing good cause for the production of 36 the matters or things desired to be produced, setting forth in full detail the materiality thereof to 15 oaal949NCS 1 the issues involved in. the proceedings, and stating that the witness has the desired matters or 2 things in his or her possession or under his or her control, and a copy of such affidavit shall be 3 served with 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 receipt 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 complete on the date of receipt. Any subpena or subpena duces tecum 7 issued pursuant to the provisions of this ordinance shall be deemed issued by and in the name of 8 the City Council of the City of Petaluma. 9 10 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 within 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 imposed by the owner, the following factors 17 or any other factors deemed relevant to the arbitrator may be considered: 18 A. Beneficial increases. in maintenance and operating. expenses, including but not 19 limited to the. reasonable value of the owner's labor and any increased costs for '10 services provided by a public agene}r, public utility, or quasi -public agency or 21 utility, provided, luo,,vever, that any increased costs in rent stabilization 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 addition of capital improvements, including 25 the reasonable value of the owner's labor, as long as such rehabilitation or 26 improvement has been completed and is: 27 (1) distinguished from ordinary repair or maintenance; 28 (2) for the primary benefit, use, and enjoyment of the tenants; 29 (3) permanently fixed in placed or relatively immobile and dedicated to the 30 use of the property; 31 (4) not coin -operated nor 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 improvement. 35 (6) does not constitute maintenance of the infrastructure of gas or electrical 36 lines within the mobilehome park for which the public utility has 16 O .D-1949NCS I permitted the park owner a special premium with the intent that it be used 2 to replace or otherwise maintain the system within the mobilehome park. 3 C. Increased costs of debt service due to a sale or involuntary refinancing of the park 4 within 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 refinancing is found to have been used for park 7 improvements or similar park -related uses; 8 (3) the aggregate amount from which total debt service costs arise constitutes 9 no more than seventy percent (70%) of the value of the property as 10 established by a lender's appraisal. 11 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, 17 including the quantity and quality of maintenance and. repairs performed during 18 the preceding twelve (12) ;months. 19 F. Any increase or reduction of housing services since the last rent increase. 20 G. Existing space rents for comparable spaces in comparable parks. 21 H. A decrease in "net operating income" as defined in Section 6.50.110(A). 22 1. A fair return on the property prorated among the spaces of the:•park. 23 J. Other financial information which the owner is willing to provide. 24 K. Any costs incurred as a result of a natural disaster and only to the extent 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 this section 27 or this Chapter shall be applied to prohibit the granting of a rent increase that is 28 demonstrated to be necessary to provide owner with a fair and reasonable return. 29 30 6.50.110 - Net Operating Income. 31 In evaluating a space rent increase imposed by an owner to maintain the owner's net 32 operating income from the park, the following definitions and provisions shall apply: 33 A. "Net operating income" of a mobilehome park means the gross income of the 34 park less the operating expenses of the park.. ORD. 1 949N CS 17 1 B. "Gross income" means the sum of the following: 2 (1) gross space rents, computed as gross space rental income at 100% 3 occupancy; plus 4 (2) other income generated as a result of the operation of the park, including, 5 but not limited to, fees for services actually rendered; plus 6 (3) revenue received by the park owner from the sale of gas and electricity to 7 park residents where such utilities are billed individually to the park 8 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 10 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 excess 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. Where uncollected space rents must be 16 estimated, the average of the preceding three (3) years experience shall be 17 used. 18 C. "Operating expenses" means: 19 (1) Real property taxes and assessments. 20 (2) Utility costs to the extent that thev are,included in space rent. 21 (3) Management expenses including the compensation of administrative 22 personnel, including the value of any mobilehome.space: offered as part of 23 compensation for such services, reasonable and necessary advertising to 24 ensure occupancy only, legal and accounting services as permitted herein, 25 and other managerial expenses. Management expenses are presumed to be 26 not more than five percent (5%) of gross income, unless established 27 otherwise. 28 (4) Normal repair and maintenance expenses for the grounds and common 29 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 addition 32 to the management expenses listed above, where the owner performs 33 managerial or maintenance services which are uncompensated, the owner 34 may include the reasonable value of such services. Owner -performed 35 labor shall be limited to five percent (5%) of gross income unless the 36 arbitrator finds that such a limitation would be substantially unfair in a 18 ORS'-1949NCS I given case. A park owner 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 warrant 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 performing such services and the nature of the services 7 provided. 8 (6) Operating supplies such as janitorial supplies, gardening supplies, 9 stationery, and so forth. 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 capital improvement costs exceeding existing reserves for 17 replacement. A park owner may include the cost of necessary capital 18 improvement expenditures which would exceed existing reserves for 19 replacement. A necessary capital improvement shall be an improvement 20 required to maintain the common facilities and areas of the park in a 21 decent, safe, and sanitary condition or to maintain the existing level of 22 park amenities and services. 23 24 Expenditures for necessary capital improvements to upgrade existing 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 tenants, for their general 30 use, are factually correct as claimed. 31 (ii) Said capital improvements are wholly compensable to the park 32 owner upon appropriate 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 19 CE.I949NCS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 the event that the capital improvement expenditure is necessitated as a result of an accident, disaster, or other event for which the park owner received insurance benefits, only those capital improvement costs. otherwise allowable exceeding the insurance benefits may be calculated as operating expenses. (11) Involuntary refinancing of mortgage or debt principal. A park owner may, under the provisions of this subsection, be able to include certain debt service costs as an operating expense. Such costs are limited to increases in interest payments from those interest payments made during the period from May 1, 1993 through April 30, 1994 or the first year such payments were made if the owner acquired the park after July 1, 1992 which result from one or the following 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 April 30, 1994, for instance, termination of a loan with a balloon payment; or (H) increased interest costs incurred as a result of a variable interest rate loan used to finance the acquisition of the park and entered into'prior to April 30, 1994. In refinancing, increased interest shall be permitted to be considered as an operating expense only where the park owner can show that the terms of the refinancing were reasonable and consistent with prudent business practices under the circumstances. D. Operating expenses shall not include the following: (1) Debt service expenses, except as provided in subsection C(11) above. (2) Depreciation. (3) Any expense for which the park owner is reimbursed. (4) Attorneys' fees and costs; except printing costs and documentation as required by Section 6.50.050 only, incurred in proceedings before an arbitrator or in connection with the legal proceedings challenging the decision of an arbitrator or the validity or applicability of this ordinance. E. All operating expenses must be reasonable. Whenever a particular expense exceeds the normal industry or other comparable standard, the park owner shall bear the burden of proving the reasonableness of the expense. To the extent that an arbitrator finds any such expense to be unreasonable, the arbitrator shall adjust the expense to reflect the normal industry or other comparable standard. 20 o De1949N CS 1 6.50.120 - Obliv-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 previously inoperative is justified, the tenant shall pay the amount 4 found justified to the owner within thirty (30) days after the decision is made. 5 B. If a final decision by an arbitrator finds that an increase or any portion thereof is 6 not justified, the owner shall refund 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 thirty (30) 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. Notwithstanding the foregoing, in the event that the 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 under the provisions of this section is the obligation of the 15 owner or tenant, as the case may be, shall constitute a debt and, subject to the 16 foregoing provisions of this section, may be collected in any manner provided 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 which is in violation of this ordirance, 21 provided a petition has been filed and either 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 brought to recover possession -of a mobilehorne space or to, 24 collect the rent increase. 25 26 6.50.140 - Retaliatory Acts: Tenants' Right to Organize. 27 No owner may retaliate against a tenant or tenant -to -be for the tenant's or tenant-to-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; engaging 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 choose a month -to -month rental; decreasing housing 32 services; increasing the space rent; or imposing or increasing a security deposit or any other 33 charge payable by a tenant. The tenants have a right to organize a tenant's association without 34 hindrance from. the park owner to exercise the rights provided under the provisions of this 35 ordinance. This association may be referred to as "the Park Tenant's Association at (Park 36 Name)". 21 ORM.1949NCS 1 6.50.150 - Solicitation of Any Petitions by the Park Owners are Without Force or Legal Effect 2 Within City s Program. 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 Municipal Code shall 6 be without force or legal effect within the City's rent stabilization program. Such documents 7 shall not affect the rights of any tenant to participate in the rights, remedies, procedures and 8 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 chargeable 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 16 tenant only as set forth herein. This fee pass through must take place no later than twelve (12) r .17 months after the park owner is billed for the program administration fees. Failure to timely pass 18 through fifty percent (501 ) of the. fees assessed against a mobilehome space will result in the 19 loss of the park owner's right to do so. The remaining fifty percent (50%) of the fees assessed 20 against a mobilehome space shall not be passed on in any way to tenants. Fees passed through to • . 21 tenants as herein authorized shall not be considered a part of the rent base upon which future rent 22 increases can be made. 23 The fees imposed by this section shall be paid annually. On or before .tune 1, 1994 of the 24 adoption year of this ordinance and thereafter on or before April 30th of each and every 25 subsequent year, each mobilehome park owner shall pay to the City Clerk of the City of 26 Petaluma a mobilehome park rent stabilization program administration fee for each mobilehome 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 full 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 amount. A service fee equal to 1'/ 35 percent (1'/2%) per month will be charged on all late payments of registration fees under this 22 Y..1949N CS I ordinance. The City Council shall adopt the amount of the fee and any changes thereto by 2 ordinance or resolution. 3 4 6.50.170 - Exemption 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), having provided the park tenant with a legally 7 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; 10 (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 - Nonwaiverability. 15 Any provision, whether oral or written, in or pertaining to a rental agreement whereby 16 any provision of this ordinance is waived. or modified, is against public policy and void, except 17 with respect to any rental agreement complying with all of the terms and conditions .set forth in 18 Section 798.17 of the California Civil Code (as amended). 19 20 6.50.190 - Penalties and Remedies. 21 In addition to those penalties and remedies set forth- elsewhere in this ordinance, the 22 following remedies shall apply: 23 24 Any owner who demands, accepts, receives, or retains any money as rent from a tenant to 25 which the owner is not entitled under the provisions of this ordinance shall be liable to the tenant 26 for any actual damages, attorney's fees, and costs incurred by the tenant as a consequence thereof 27 plus a penalty in the sum of three times the amount of money the owner accepted, received, or 28 retained in violation of the provisions of this ordinance or $500.00, whichever is greater. 29 30 6.50.200 - Rights of Affected Tenants Reserved. 31 This ordinance shall not be construed 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 - Termination. 36 This ordinance shall terminate on June 30, 1997 unless repealed earlier by the Petaluma 37 City Council. 23 o uy�.19 4 9 N C S 1 6.50.220 - Review by the City 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 City Council's review shall be published at least ten (10) days prior to said date 5 in a newspaper of general circulation in the City of Petaluma. 6 7 6.50.230 - _Severability. 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 application thereof to any person or circumstances 10 is held invalid, such invalidity shall not affect other provisions or applications of this ordinance 11 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 severable and are intended to have independent 13 validity. 14 15 6.50.240 - Vacancy Control - Establishment of New Base Rent. 16 A. A mobilehome park owner shall be permitted to charge a new base rent for a 17 mobilehome space whenever a lawful space vacancy occurs. For purposes of this 18 Chapter, a lawful space vacancy is defined as follows: 19 (1) A -vacancy occurring because of the termination of the tenancy of the 20 affected mobilehome tenant in accordance with the Mobilehome 21 Residency Law, Cali urnia Civil Code Sections 798.55 through 798.60, as 22 amended: or 23 (2) A vacancy of the mobilehon-ie space arising from the voluntary removal of 24 a mobilehome from the mobilehome space by the affected mobilehome 25 tenant. A removal of the mobilehome from the space for the purpose of 26 performing rehabilitation or capital improvements to the space or for 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 of a mobilehome 30 space pursuant to this subsection, the park owner shall give written notice to the 31 new affected mobilehome tenant of the twelve (12) month anniversary date for 32 rent increases allowed under Section 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 pursuant to the provisions of this Chapter.. 35 C. In the absence of a la`vful 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. 24 Wiu.1949NCS 1 6.50.250 -Reserved. 2 3 6.50.260 - Registration of Parks. 4 A. On or before June 1, 1994, each mobilehome park owner must register the parks 5 which they own or operate with the 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 mailing address of owners and operators; 8 (2) The number of spaces in the park; 9 (3) The number of spaces under construction, if any, or planned for 10 construction; 11 (4) The identity of present tenants and lessees, and their mailing addresses; 12 (5) The rental, lease payments and other considerations charged for the use of 13 the space; and 14 (6) A description of the park and the services, amenities and other 15 considerations to the tenants and lessees which the owner or operator may 16 consider as bearing on the question of fair rental amounts. 17 B. On or before April 30th of each year subsequent to the adoption year, each 18 mobilehome park owner in the City of Petaluma, as long as the City Council for 19 the City of Petaluma may so authorize and/or allow, shall register with the City 20 Clerk of the City of Petaluma by providing, in writing, the name and address of 21 each such mobilehome owner, and a statement of the number of mobilehome 22 spaces including both occupied and unoccupied spaces, contained in each such 23 park, and a statement of the number of recreational vehicle spaces in the park: 24 Re -registration and provision of this information must also be made 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 phrase or word of this ordinance 29 is for any reason held to be unconstitutional by a court of competent jurisdiction, such decision 30 shall not affect the validity of the remaining portions of this ordinance. The City Council of the 31 City of Petaluma hereby declares that it would have passed and adopted this ordinance and 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 terns of the City's rent HEEL 1949NCS 25 i stabilization 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 continued indefinitely until said challenge is overcome. This action is undertaken so that the 4 level of rent stabilization protection established shall continue to be provided to the affected 5 mobil ehome park tenants of Petaluma until further action of the City Council. 6 7 Section 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 10 11 12 13 14 15 16 17 18 19 20 21 22 2? 24 2;- 26 27 28 29 30 31 32 33 34 35 36 37 Section 5. This ordinance shall take effect thirty (30) days after its passage. INTRODUCED and ordered posted/published this 2 1 day of M e , 1994. 4 ADOPTED this -4th :v day of April , 1994 by the following vote: AYES: Sobel, Hamilton, Barlas, Shea, Vice Mayor Read NOES: Mayor Hilligoss ABSEI IT: 1 vacant seat ATTEST �itCler Y c:\word6\ord.doe 3/23/94 (fink) 26 mao 1949NCS '�LI%•. Y�