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HomeMy WebLinkAboutOrdinances_1857_CCv0001.pdf ORDINANCE NO. 1857 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REDLANDS AMENDING- ARTICLE 374 OF THE REDLANDS ORDINANCE CODE TO STABILIZE MOBILEHOME PARK RENTS ARTICLE 374 Mobilehome Pare, Rent Stabilization SECTION 1 . Article 374 of the Redlands ordinance" Code is hereby amended to read as follows. §37400. PURPOSE AND INTENT. On December 15, 1981 , the City Council of the City of Redlands determined that a serious shortage of mobilehome rectal space had created a virtual monopoly in the rental of mobilehome park spaces within the City and declared it necessary to protect the owners and occupiers of mobilehomes from unreasonable rent increases while recognizing the need for mobilehome park owners to receive a just and reasonable return on their' property, Accordingly, Ordinance No. 1.783 was adopted pro- viding for mobilehome park stabilization within the City. The City Council of the City of Redlands finds that a serious shortage of mobilehome park rental space continues, and that the purpose and intent of Ordinance No. 1.783 con- tinue to require a procedure for stabilizing mobilehome park rent increases. §37401.. DEFINITIONS. (a) "Mobilehome. " structure designed for human habitation as defined in California Civil Code Section 798.3 ., Structures defined in California Civil Cede Section 799.24 are not mobilehomes. (b) ""Mobilehoae Park . " An area of land where two or more mobilehome spaces are rented or held out for rent to accommodate mobilehomes used as human habitation. (c) "Mobi lehome Park Rent Review Board. " The Mobx.lehome Park Rent Review Board estab- lished by this Article (sometimes herein called "Board" ) . (d) "Arbitrator. " A professional arbitrator by virtue of his or her training or exper- ience or combination of such training and experience okI§Rk (e) " obilehrme Park owner" or "Owner . #" The owner, lessor, operator or manager of a mobilehome park in the City of Redlands. (f) ""Moblehome "tenant" or "Tenant. " Any per- son entitled to occupy a mobilehome park which is located within a mobilehome park in the City of Redlands. (g) ,"Trader. " A structure eight ( ) feet by forty ( u3 feet or less designed to be drawn by a motor vehicle and to be used for human habitation or for carrying per- sons and property, including a trailer coach or house trailer. (h) pace Rent , "" The consideration, including any security deposits, bonuses, benefits or gratuities, demanded or received in connection with the use and occupancy of a mobilehome space in mobilehome park, but exclusive of any amount paid for the use of a mobilehome dwelling unit. ( i) "Formula Ment Adjustment. " A rent adjust- ment granted pursuant to Section 37406(b) of this Article. j ) "Discretionary Rent Increase. " A rent increase granted pursuant to Sections 37407 and 37408 of this Article. (k) "Discretionary Rent Decrease. " A rent decrease granted pursuant to Section 37410 of this Article. 1) "Park Facility. " A facility or amenity which provides for the recreation or con- venience of any mobilehome tenant. §37402. EXEMPTIONS. The provisions of this Article shall not applyto the following tenancies in mobilehome parks located in the City of Redlands. (a) Mobilehome park spaces rented for non- residential uses. - - f.290", , . (b) Mobilehome pars constructed after October 1, 1981. For the purposes of this subsection, "constructed" shall mean the initial erection of structures. (c) Tenancies which dr not exceed, an occupancy of twenty days and which do not contem- plate an occupancy of more than twenty days.. (d) 'tenancies for which any federal or state law or regulation specifically prohibits rent regulations (e) Trailer parks which are occupied by less than fifteen mobil+ehomes. (f) Tenancies covered by leases or contracts which provide for more than a month-to- month tenancy. Upon the expiration or other termination of any such lease or contract, the monthly space rent or its equivalent provided in such lease or con- tract shall continue to apply to the affected space until such time as rent adjustments in the park for that category or type of space result in a monthly rent which equals or exceeds the monthly rent: provided in the lease or contract. (g) Mobilehome parks which sell lets for fac- tory-built or manufactured housing, or which provide condominium ownership of such lots, even if one or more homes in the development are rented or leased out. §37403 . MOBILEHOME RENT REVIEW Bo ( ) There is hereby established a Mobilehome Rent Review Board consisting of three regular members and an alternate member who shall be appointed by and serve at the pleasure of the City Council (b) The members of the Board shall be persons who are not tenants in any mobilehcme park; nor connected with the real estate, rental housing or mobilehome industry for personal gain; nor persons who have rela- tives of the first or second degree; residing within any park in the City. -3- gg (c) Board members shall not be compensated; for their services as such, but may receive reimbursement as provided by the City Council for expenses incurred while on official duty. 7404 . POWERS AND DUTIES OF THE BOARD. Within the limitations provided by law, the Board shall have the fol- lowing powers and duties (a) To meet from time to time as required by the City Manager of the City of Redlands and to utilize the City offices and facil- ities as needed. (b) To receive evidence and testimony, inves- tigate, conduct meetings and public hear- ings, and pass upon the issues relating to mobi.lehome park rent stabilization as set forth in this Article.. (c) To make or conduct such independent hear- ings or investigations as may be appro- priate to obtain such information as is necessary to carry out its duties,. (d) To render periodically a written report to the City Council concerning its activi- ties, holdings, actions, results of hear'- ings and: all ether matters pertinent to this Article which may be of interest to the Council. (e) To adopt, promulgate, amend and rescind administrative rules to effectuate the purposes and policies of this Article. (f) To assist the arbitrator in arbitrating a application for a discretionary rent adjustment, as set forth in this Article. (g) To assist an owner and the tenants of a park in reaching a lease agreement, as: set forth in this Article. §37405. LEGALITY OF INCREASES. On and after the effec- tive date of this Article, no adjustment in space rents in Redlands mobilehome parks shall he effective unless autho- rized as set forth in this Article. -4- S37406. DETERMINATION QE BABE RENT AND FORMULA RENT ADJUSTMENT. (a) The base rent for purposes of this Article shall be the last space rent approved pur- suant to Ordinance No. 176`:3 of the City of Redlands. Base rent or space rent may be adjusted no more than once each year, and the effective date of the adjustment may not be sooner than twelve ( 1 2) months after the effective date -of a previously approved rent adjustment. (b) Each year, an owner or the majority of tenants represented by signed petitions may submit an application on the City' s form for an adjustment in space rents in an amount equal to the proportional increase or decrease in the Consumer Price Index, all Urban Consumers, Los Angeles- Long Beach-Anaheim (Base 1967) for the period beginning four months prior to the month of the effective date of tete last rent adjustment and ending four months priorto the month of the date noticed for the requested rent adjustment-; provided, however, that such increase or decrease shall be limited to three-fourths of any percentage in excess of six percent (6%) up through nine percent ( ) and to one- fourth of any percentage in excessofnine percent ( 9 ) . Each such application must be accompanied by evidence that notice of the proposed adjustment has been served to each affected tenant at least 60 days prior to the proposed effective date. This subparagraph (b) shall not be con- strued to relieve the owner of the duty to provide notice of a rent increase or to perform any other duty imposed. by State lawn. (c) The Board shall designate a member of the City staff of the City of Redlands who shall calculate and approve the formula rent adjustment in the amount requested, not to exceed the amount authorized herein, without the necessity of a hearing y the Board., provided that such adjust- ment shall not be granted retroactively.. -5- ��01,f < f 7407 APPLICATION FOR DISCRETIONARY REIT INCREASE. (a) An owner who seeks a rent increase not authorized in subparagraph (b) of S 37405 shall submit an application for a discre- tionary rent increase on the City's form, together with such supporting documenta- tion umenta-tion as the Board may require, within l days after serving notice of the proposed discretionary rent .increase to all affected tenants . The notice for each tenant shall- indicate the new rent pro- posed for his or her space, shall advise the tenant that an application for a dis- cretionary rent increase has been filed with the City, and shall state that a copy of the application and; all supporting documentation is on file at the owner 's office in the affected park: and may be photocopied at the tenant's expense. The application for a; discretionary rent increasewill not be effective unless accompanied by proof that the owner has, within the preceding 15 days, served each affected tenant, either personally or by mail, with the notice required herein. If approved, the discretionary rent increase may take effect no sooner than one year after the date of the last rent increase within the park. (b) Upon< the filing of an application for a discretionary rent increase which satis- fies the requirements of this article, the Board shall conduct a public meeting within 30 days.. At that meeting, if the Board is persuaded upon the testimony of any affected tenant that the tenant has been _refused the opportunity to review and photocopy background documentation which the owner intends to submit in support o the application, the Board small adjourn the meeting for a reasonable period of time, not to exceed 30 days, and instruct the owner to permit full review and repro- duction of the documentation as required by this article. At any such meeting, if the Board is persuaded upon written proof or ural testimony that the majority of the affected tenants in the park agree to the proposed discretionary increase, the Board' -6- shall authorize the increase as proposed and such determination shall be final. 7408. ARBITRATION. (a) Capon considering an application for a dis- cretionary rent increase, if the Board is persuaded that a majority of the tenants do not agree to the proposed increase, the Board shall within 10 days select an arbi- trator from a list of arbitrators approved by the City Council to conduct arbitration of the disputed application for a discre- tionary rent; increase. if possible, the Board should select from the list a retired judge to ,serve as arbitratott but the Board shall not be bound to do so. (b) Upon selecting an arbitrator, the Board or its designee shall transmit copies of the application for a discretionary rent increase and any gather supporting documen- tation oc men-tation filed by the owner to the arbi- trator for his or her review, and shall mail, notice of the selection of an arbi- trator to all affected parties as set forth in the application .. The owner shall produce, at the request of the arbitrator, any additional records, receipts, or other documents that the arbitrator may deem necessary for a decision on the disputed application. The owner shall supply duplicate copies of such documents to the City, shall keep copies at; the owner 's office within the park for review and duplication by the affected tenants, and shall provide notice to each affected tenant that the copies are available for review and reproduction at the tenant ' s expense. (c) Upon receipt of the application and all requested documentation, the arbitrator shall schedule a hearing on the applica- tion within 60 days. The Board or its designee> shall send notice of the time, date and place of the hearing to all affected parties at least 30 days prior to the hearing The notice shall state that copies of the application and supporting documentation are on file with. the City 7- g , and are available for review by any affec- ted pare, and that responding parties may submit written statements or documents to the arbitrator no later than 10 days before the hearing._ All statements or documents submitted by responding parties shall be signed and verified under penalty of perjury, and duplicate copies thereof shall be filed with the City for review by any affectedparty. d At the hearing, the owner and any affected party may offer any testimony that the arbitrator deems relevant to the requested rent adjustment. The owner shall produce any records, receipts, or ether documents that the arbitrator may deem: necessary to apprave, the requested adjustment. The owner and affected parties may offer docu- ments, written declarations, or other written evidence for the first time at the hearing only if good, cause is shown why such evidence was not filed prior to the hearing. Formal rules shall not be applicable to such proceedings. In addi- tion, members of the Rent review Beard shall be available as requested by the arbitrator for testimony regarding pre- vious rent adjustments in the park. Within 15 days after close of the hearing, the arbitrator shall rake his or her determination, pursuant to the standards' hereinafter set forth, approving or dis- approving a. rent- adjustment for the mobilehome spaces specified in the appli- cation for a discretionary rent adjust- ment. e The arbitrator shall approve such rent adjustment as he or she determines to be just, fair, and reasonable, while assuring the park owner a just and reasonable return on his or her property. Said rent adjustment may he either below or above the proportional change in the Consumer Price Index all Urban Consumers Los Angeles -Long, Beach--Anaheim ease 1967) . The arbitrator shall: consider, but not be limited to the following factors in making such determinations -8- is e"01 ( i) Changes in the Consumer Price Index all Urban Consumers Los Angeles-Long Beach-Anaheim (Base 1967) published by the United States Bureau of Labor Statistics. (ii) The rent lawfully charged for com- parable mobilehome spaces in the City and surrounding areas . ( iii) The history and pattern of all prior rent ad.justments of the park, and any prior arbitration proceedings. ( iv) The completion of any capital improvements or rehabilitation work related to the mobilehome spaces specified in the application, and the cost thereof, including the cost of materials, labor , construction interest, permit fees, and such other items as the arbitrator deems appropriate. (v) Changes in property taxes and other taxes related to the park. (vi) Changes in master land or facilities lease rent, or mortgage payments incurred in financing the purchase or improvement of the park or incurred in an involuntary refinancing. (vii ) Changes in the utility charges for the park and the extent, if any, of reim- bursement from the tenants. (viii) Changes in reasonable operating and maintenance expenses. ( ix) The amount and quality of services provided by the owner to each affected tenant. (x) The need for rehabilitation work . (xi ) Employee and incidental expenses. (f) Pursuant to its determination, the arbi- trator may order any adjustment in rent which he or she deems appropriate or con- sistent with this Article, and such order shall be final. There shall be no appeal -9- gft to the City Council. The arbitrator may also order an adjustment for a limited time only when it is apparent that capital expenses or any other relevant factor will change after a determined period of time. (g) The total cost of the arbitration and the City' s administrative costs shall be borne by the owner if the arbitrator approves a rent adjustment equal to or below the for- mula rent adjustment authorized by sub- paragraph (b) of Section 37406. The total cost of arbitration and the City ' s admin- istrative costs shall be borne by the affected tenants if the arbitrator approves a rent adjustment equal to the amount requested by the owner as a discre- tionary adjustment . If the arbitrator approves an adjustment which is less than the requested discretionary adjustment, the owner and tenants shall share the total costs in accordance with the fol- lowing ratios: Rent approved Formula Owner 's share 1 by arbitrator - adjusted rent of total cost Rent requested Formula by owner - adjusted rent Rent approved Formula Tenant ' s share by arbitrator - adjusted rent of total cost Rent requested Formula by owner - adjusted rent For the purpose of these ratios, the for- mula adjusted rent shall be based on a time period beginning on the month of the effective date of the last rent adjustment and ending on the date of the last avail- able release of the Consumer Price Index which has been received by the City of Redlands prior to the application for a discretionary adjustment. The City shall establish fees based on an hourly basis to provide for its administrative costs. §37409. MEDIATION. Upon request by both an owner and at least fifty percent of the tenants of an affected park, the Rent Review Board shall act as mediator in the negotia- tion of any lease having a term of at least two years. However, the failure to successfully negotiate such lease _10- shall not deprive any person of any remedy or recourse set forth in this Article. §37410. APPLICATION FOR DISCRETIONARY RENT DECREASE. (a) The majority of affected tenants in a park, represented by signed petition, may submit an application on the City' s forms for a reduction in space rents to compen- sate for a reduction in services, mainten- ance, or use of park facilities provided that the reduction of services or use of park facilities has occurred within 120 days of the date of submittal of the rent reduction application; or to compen- sate tenants for utility charges and other expenses which are billed separately after having previously been included in space rents. Such application may be submitted at any time that a reduction in services, maintenance or amenities becomes apparent, or a separate billing arrangement is com- menced. Such application can be submitted at any time that a reduction of main- tenance becomes apparent . (b) The application for a discretionary rent decrease shall be accompanied by docu- mented factual evidence which precisely describes the reduction in services, facilities use, or maintenance, and fur- ther, the application shall substantiate the monetary value of the reduction. The request for a discretionary rent decrease shall specify a monetary amount rather than a percentage reduction of rent. (c) The applicant shall provide evidence that the owner was served with a copy of the application in its completed form at least thirty days prior to the date of submittal to the City. (d) When an application for a discretionary rent decrease is received by the City, the Board shall call a meeting for the purpose of mediation to resolve the conflict of alleged reduction of services and/or facilities use or maintenance. The meeting of mediation shall be held no sooner than ten days nor later than -11- AR a, 30 days of the date of application and the owners and the applicant shall be notified of the time and place of the meeting. Nothing in this ordinance will prevent the meeting from being scheduled in an appro- priate location on the premises of the affected park. (e) At the mediation hearing, the chairman of the Board will preside and the Board will hear testimony relating to the conditions which are at issue-. if the owner pledges' to restore an alleged reduction of ser- vices, facilities use, or to perform a disputed maintenance; item, the mediation` meeting shall be continued for an appro- priate time period as approved by the Board. At the date of the continued medi- ation edsat on meeting the Board will again con- sider the issues and verify resumption of services, facilities use, or maintenance progress. The Board, after considering all evidence shall either approve, reject or modify the proposed discretionary rent decrease request and shall base its deci- sion upon the demonstrated value of any verified reduction of services main- tenance or availability of the park ' s facilities. Any rent reduction or accumu- lation of rent reductions approved in accordance with, this section shall: also serve to reduce space rents as subse- quently adjusted by formula rent adjust- ments, until removed by a discretionary rent increase or as hereafter set forth, ( f) When and if a service, facilities use, or maintenance item: is restored to its pre- vious levels, the owner may, by written, request, resume the mediation hearing, and the Board will again consider the issue not sooner than ten days nor laterthan 30 days` after the date of the request_. The owner and tenant representative shall: be advised in writing of the date and place of: the meeting. At the meeting the Board may consider all evidence of the restoration of the services, maintenance or facilities use and may approve, deny of modify the owner' s request . -12- A (g) An application for a discretionary rent decrease or a request for consideration for resumption of services shall be accom- panied by a $600 deposit as a processing fee to defray the actual costs of conduct- ing the hearing which will be held. The cost of the City's administrative expenses shall be borne by the owner if the Board approves any rent decreases for any space rent- However, if the Board denies a dis- cretionary rent decrease,, the cost of the City's administration shall be borne by the affected tenants. Should the deposit not cover the City' s costa, the City shall be further reimbursed for additional costs by or excess deposit shall be returned to, the owner or applicant as the case may be. (h) An owner and any tenant or tenant group in an affected park may voluntarily agree to adjust rents downward for any reason including the decrease of services or facilities use. However, the Board shall be notified within 30 days of the agree- ment to provide a record of such change. §37411 . VACANCIES AND SUBLEASES. Neither a change in tenancy nor a sublease of a rental space occupied by a mobilehome shall alter the rent which may be collected for any space in any park which is not exempt pursuant to Section 37402 of this Article. The authorized space rent applicable to any space occupied by a mobile home shall apply regardless of any change in tenancy or sublease to any other tenant. §37412 . VACATED SPACES. Upon vacation of a mobile home park rental space within an affected park by removal of the mobile home from that space, the park owner shall be free to rent the vacated space to a new tenant at whatever rent may be negotiated between the parties. The park owner shall transmit the terms of the agreement establishing the new rental rate for the space to the Board 'within 30 days after, the date of the agreement . The new rental rate for that space shall become the base rent for that space, and shall not be adjusted for a period of at least 6 months from the date of the agreement. Thereafter , the rent applicable to the space may be adjusted as set forth in this Article . §37413 . RETALIATORY EVICTION. In any action brought to recover possession of a mobilehome space the court may con- -13- cider as grounds for denial any violation of this ?article. Further, the determination that the action was brought in retaliation for the exercise of any rights conferred by this Article shall be grounds for denial. §37414 . TERMINATION;., This Article shall terminate after December 31, 1989, unless the City Council determines by ordinance to extend the Article for any period of time thereafter. : 7415 . REVIEW BY THE CITY COUNCIL. The City Council shall periodically review the effectiveness of this Article in addressing the problems giving rise to its enactment. §37416 . SEVERABILITY. If any provision or clause of this Article or the application thereof to any person or circumstance is held to be unconstitutional or to be other- wise invalidated by a final judgment of any court of compe- tent jurisdiction, such invalidity shall not affect other provisions or clauses or applications thereof which can be implemented without the invalid provision or clause or application, and, to this end, the provisions and clauses of this Article are declared to be severable. SECTION 2. This ordinance shall be in force and take effect as provided by lair. SECTION 3. The City Clerk shall certify to the adoption of this ordinance and cause it, or a summary of it, to be published in the Redlands Daily Facts, a newspaper of gene- ral circulation, printed and published in this City. MAYOR OF THE CITE` OF REDLANDS ATTEST. CiCLERK{ 71 -14- 'i Ar✓ti. i & I Lorrie Poyzer, City Clerk, City of Redlands , hereby certify that the foregoing ordinance was duly adopted by the City Council at a regular meeting thereof held on the 2nd day of July, 1985 ,` y the following vote : YES Councilmembers DeMirjyn, Larsen, Mayor Keswick NC Shen SWAIN Councilman Johnson Councilman Martinez _,.1 M 'RO 6/25/85 s`