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HomeMy WebLinkAboutOrdinances_2532_CCv0001.pdf ORDINANCE NC). ?532 ANN' ORDINANCE E O mT"I-II: CITY OF Rl,:lel.ANC)S AMENDING CHAPTER 51AS CSI° THE EDLAN S MI4 MC"IP L CODE RELATING TO MOBILEHON—JE RENTCONTROL TI-1E CITY C'OUNCIL OF THE CITYOF REDL,,,-kNDS DOES J CSC'DAIN AS FOLLOWS: :: Section l; Section 5,.48,0210 ofthe Redlands Mtti icipai Code is hereby amended to reed as follows: "5.48.02,10 Definitions. As used in this Chapter the following words shall have the mcanin{; ascribed to deem: 'Adjusted d C°.P.J.' means the percent cif' the C,P,l- t scd 601' detcf1naill ira1� rent: increases or decreases pursuant to Section 5. ,CI CI( ), 'Arbitratcar' means a professional>arbitrator by wir-ttat Of`Iais>or her tralni ., or experience or combination of such trainingand experience. 'Commissican''mBans the C:.`itw- C 0111naisslon establislacd by Chaptcr2_22S cwfthis Code (sometimes herein called tyre 'Curt mission'), V.P.0 or'C"onsttmcr Price lj detti'means the index commonly known as the'Constarner Price Index for all Turban Wa-e Consumers ers for the L.os Arl ales-Anah,21m-RIN erside Area.' (Base year 1982--l iso) published by the United :Mates Department of Labor, 1. ttrcau of Labor Statistics, ' isc;retionarvrent decrease'rne:ans a rcpt decrease granted Prrrsrri alt tO SCCUOit ;x,48:100 of this Chapter. ter. 'I iscr"etionarw:'rent increase' nicans a rem incrl ash:grant d ptlrSlll t to Sw-ctlons ,48.0 sit}and 5. 8.080 of this Chapter. ter. 'For-iiatala cont adjtrstrlIetat' liie<tiras tt re:rt atljar,ltr tetit ,;rai-ile(l LIrstlrlllt ter ectioai , ,060(' ) ofthis Chapter. %,Iol)ilehoiTie"`mc,aiis a str`ticture cies)oi.ied forhuman haabitation�as detirjed M C'alif+arnia C"ivil Grade Section 798.3. Structures defined in California Civil Code Section X99.2 are not mobilc homes. ltobilehcameo-wkracr-oc.c,tiparrt'raacatlrsanyperso wlioo;�,tis<arpa0t)liellorrtc�aaacioccLiplestiltt niobileh me as his or tier grin )pal residence w-itl-rin a mo ilclromc park located within tyre City, 'Mo ilehorne park'ineans an area oflaalici where tww o or more mobilehomc spaces ars renwd 1 or held out for rent to accornmodate mobilehomes used as human habitation. 'Mohilehorne park owner' mearis the owner, lessor, operator or manager of a 1nobilchorne park located In the City, 'Park �acl tity' means a. facility or amenity which provides for the recreation or convenience of ariv niobilchome tenant. 'Space rent' means the consideration, including any security deposits, bonLISCS, benefits or gratuities.dernanded or received in connection with the use and occupancy of a mobilchorile space I in is mobilehome park,but exclusive of any arnount paid for the use of a mobilehome dwelling unit. 'Trailer' means a structurc eight feet by forty feet or less designed to be drawn by a motor vehicle and to be used for human habitation or for carrying persons and property, it a trailer coach or house trailer." Section 2. Section 5. ,030 of the Redlands Municipal Code is hereby an ended to read as follows: '15.48,030 Exemptions. This Chapter shall not apply to the following tenancies in mobilehome parks locatedin the Cltv� A. Mobil ehorne park spaces rented for nonresidential uses, B. Mobilehome parks constructed after October 1, 1981. For the purpose of this subsection. the term 'constructed' means the initial erection of structures; CTenancies which do not exceed an occupancy of twenty days and which do not contemplate an occupancy of more than twenty days; D. Tenancies for which anyfederal or State law or regulation specifically prohibits rent regulations; E. Trailer parks which are occupied by less than fifteen mobilehornes.- F. Tenancies covered by leases or contracts which provide for more than a itionth-to-nionth tenancy, However, upon the expiration or other termination of any such lease or contract,the monthly space rent or Its equivalent provided in such lease or contract shall become the base rent for such space. Any increase or decrease in the in.orithly space rent shall be detertnined in accordance with this chapter, provided that any increase in monthly space rent which had been allow-cd under the expired or terminated lease during the preceding t%velve months, when added to any monthly rent adjustments porn n'tted under this Chapter,shall not exceed the increases per UIIdCr SeCtion 5,48.06 0, provided further that nothing in this subsection is intended to require a reduction, in rent below that charged under the expired or terminated lease; �532 2 G. ;` obilelacanae parry which sell hats for(pie tory- €.rift carman€ f7a turgid hou inn,or which provide c ray orninitini owncrsirip of such lets; even if orae `r More 110111es in the dcvQlopment are rented or [eased caart R Any mobilehonae not c`tca"rrpied by ar moblichome wr-rer_occupaint. `jection 3. Section 5.48,040 of the edhands Muiiicip.,d Code is 1 orl-b del Clcd eetion 4 Section 5.4S.050 of the Redlands MUnicipaal Code is hereby ret trrrabeared and amended to read as follows: "5.4S.040 C: is nussion-- overs and duties. Within the limitations provided by law,the Commission shall have the f illowin pow rs area duties, A. To receive evidence and testimony,iravesti c7aatL,conduc°c meetings and public hearing's and Pass Upon the issues relating to mobilelaonte park rent stabilization ars set forth In,this C haapter To make or conduct such independent hearings or Investigaations as may he appropriate to obtain such information as is necessary to carry out its dcaties C. To render, at least aannualiv. a written report to the City Council concerning, its activities, holdings, actions, results of hearings and all other-matters, pertinent to this Chapter may be ofinterest to the City Council Do recorrrmenc administrative rrtles to the C it Corrracil to effectuate tile perrpeses aratf policies of this Chapter; To assist the arbitrator in arbitrating an application for as discretionary rout aadju tnlent- as set forth in this Chapter `, To assist the park ,�vne.r and the niobilel ono oyr ers-Occ.upaants of a ralobil Saonl park ill negotiating aa.lease aagreenient as provided for ill this C°laaapler G. Except as otherNvise provided for iri this Chapter, to rcv ie v and approve arra application ftsr ar rent adjustment, whether it bC fr+arra ar r iobilchome pa irk owner or as ttaobilt:lrcarn owner-occupant." Section 5. Section 5,48.060 is laereby renumbered to read as section ,48.050:: `section tai. Section 5.48,070 cyfthe l edland's ; UlliCipatl`Code is hereby renumbered and amended to read as follows: -5.48,(-')60 Deternairlartid.n of base;rent and fnrraaular rent a acl'trstraaer�t az rw A. The base rent for purposes of this Chapter shall be the last space rent approved pursuant to Ordinance I 783of the City. Base rent or space rent may be adjusted no rnore than once each year, and the effective date of the adjustment may not be sooner than twelve months after the effective(late of previo Lis ly approved rent adjustment.Except as hereinafter provided,no park o; ner shall demand,accept or retain rent for a mobilehome space exceeding the base rent in effect for Such space. B. Each year, a mobilchome park owner, or a majority of-mobile home owners and mobilchotne oxvner-occupants,within a mobilehome park and represented by signed petitions, may Slibrint an application on the City's form for an adjustment in space rent in an amount equal to the proportional increase or decrease in the C.P.I. The CRI. shall cover the period of time beginning on the first day of the month which is five months prior to the effective date of the last rent adjustment and ending on the last day of the month which is five full months prior to the month of the date noticed for the requested rent adjustment;provided,however,that such increase or decrease shall be limited to three-fourths ofanypercentagge in excess of fourpercent through nine percent and twerity-five percent of any percentage in excess of nine percent. Each such application must be k accol e -cted npanied by evidence that notice of the proposed adjustment has been served to each affe mobilebome owner occupant at least sixty days priorto the proposed effective date.This subsection shall not be construed to relieve the mobilehome park owner of the duty to provide notice of a,rent increase or to perform any other duty imposed by state law, C. City staff shall calculate and approve the fonnula rent adjustment in tile amount requested, not to exceed the amount authorized herein. D "or the Purpose of consolidating anniversary dates for rent increases permitted under this Chapter for leases expHing pursuant to Section 5,48.030(F), the mobilehorne park owner may file a petition with the Commission to increase rents in accordance with the following table: i34 Number of Motit(as Since Last Allo\vableRent hicreasc orl3aie Rent) Rent Increase 12 1 00's`O of AdjU-Sicd C.P.1. I OP,'() of Adjusted C.P.1. 14 117% ofAdjusted CRL 15 12 5"f, of Adj Listed C.1'.1. 16 133"'(') of Adjusted CRL 17 142'�Ii,j o f Adjusted C.R L is 150''O' of AqjUSted C.P.I. 1 15 o of Adjusted "ust(e d C.P .L 20 1661% ofAdjtsted C". .1. 175�'/ of \,IjLJstCd ('.P,1. 22 183No of Adjusted C.P.I. 23 19111..",, Of Adjusted C,PJ. The burden of proof to show that the rent increases set out above for the purposes of consolidating anniversary dates and the number of months since tile last rent increase is accurate shall be upon the mobilehorne park o,,vner and shall be filed on the City's formas. Where there is all anniversary date for at least,mstay-•f ve percent of the spaces in an affected park. the mobilehome park owner shall consolidate all leases expiring after-January 1, 1993 to that date�vithin twentN'- four months of the expiration of the lease, For determining whether tivent3�-five percent of the spaces share an anniversary date,. only those spaces subject to this Chapter shall Ile COLUACE' Section 6. Sect�on 5.48,080 of the Redlands M1.1111CIpal (-`oCe is hereby renUnibered and amended to read as f0lloivs� 5,48,070 Application fear discretionary rent increase, A. An owner who seeks a rent increase not authorized III SUbsection B of Section 5. 18„060 shall submit an application for a discretionary rent increase on the Citys form, together 'n with such supporting dOCLITTIentation as the Coninission. may reqUi-ire. within fifteen days after servingrion ice of the proposed discretionary rent increase to am ll affected obilefionie oseer-occupants. 'The notice for each rnobilehome owner-occupant shall indicate the new rent w proposed R)r his or her space. shall advise the mobilehome owricr-occupant that an application 1`01, a discretionar-yresat increase has been filed with the City,and shall state,that a copy ofthe application and. all StIpporting documentation is on file at the owner's office ire the affected par]( and rnay be 5 photocopied at the mobilchome owner-occupant's expense. The application for a discretionary rent increase will not be effective unless accompanied by proof satisfactory to the Commission that the mobilehorne park owner has., within the preceding fifteen days, served each affected mobilchorne owner-occupant, either personally or by rnall, with the notice required herein. If approved, the discretionary rent increase shall take effect no sooner than one year after the date of the last rent Increase within the mobilehorne park. 13. Upon the filing of an application for a discretionary rent increase which satisfies the requirements of this chapter, the Commission shall conduct a public meeting within thirty days. At that meeting, if the Commission Is persuaded upon the testimony of any affected inobilehome owner-occupant that the mobilchome owner-occupant has been refused the opportunity to review and photocopy background documentation which the mobilehorne park owner intends to submit in support of the application,the Commission shall adjourn the meeting for areasonable period of time, not to exceed thirty days, and instruct the mobilehorne park owner to permit full review and reproduction of the documentation as required by this chapter. At any such meeting, if the Commission is persuaded upon written proof or oral testimony that the majority of the affected mobilehorne owner-occupants in the park agree to the proposed discretionary increase, the Commission shall authorize the increase as proposed and such deten-nination shall be final. C, In the event the Commission determines that an application for a discretionary rent increase dial]be submitted to arbitration pursuant to the provisions of this chapter,the applicant for the discretionary rent increase shall, within ten days of the Commission's determination, pay to the City the SLIM of three thousand dollars as a deposit towards the City's actual costs in retaining an arbitrator and holdin(l), the arbitration proceedings. The deposit shall be replenished, from time to time, as deerned necessary by City staffto ensure that the City's actual ongoing costs are,paid. In the event payrinerit of the deposit is not made,or the applicant for the discretionary rent increase fails to make a required replenishment of the deposit, the City may, in its sole discretion, cease the arbitration proceedings and have no further obligation or any liability to the applicant for the discretionary rent increase." Section 7, Section 5.48.090 of the Redlands Municipal Code is hereby renumbered and amended to read as follows: "-s.48.080 Arbitration. A. Upon considering an application for a discretionar),,rent increase,if the Commission is persuaded that a majority of the tenants do not agree to the proposed increase, the Commission shall x�ithiri ten days select -an arbitrator from a list of arbitrators approved by the City Council to conduct arbitration of the disputed application for a discretionary rent increase. If possible, the Commission should select from the list a retired judge to serve as arbitrator, but the Commission shall not be bound to do so. 13. LTpon selecting an arbitrator,the Commission or its designee shall transmit copies of the application for a discretionary rent increase and any other supporting documentation filed by the mobilehoine park owner to the arbitrator for his or her review, and shall mail notice of the selection of an arbitrator to all affected parties as set forth in the application, The owner shall produce, at the M:,3-1 6 request of the arbitrator, any,addition aI records,reeelpts, Oro therdocurne ats that the arbitrator may deme necessary for a decision ora 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 parr 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 ofthe application and all requested doctsnacratation the arbitrator shall schedule a hearing on the application within sixty days. The Coraaztaissloia or its designee shall sen notice of the time, date and place of the hearing to all affected parties at least thirty days prior to the hearing. The notice shall state that copies of the application and supporting dog urraentation are on file with the City and are available for review by any affected party,and that responding onding p arties may submit written statements or documents to the arbitrator no later than ten days before the hearing, All statements or documents submitted by., responding parties shall be signed and verified tender penalty of erju ys,and duplicate copies thereof shall lie filed��ith t3zc C ity°iter re�£iew by any affected party: D. At the hearing, the mobilehonae parr 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,,ear other documents that the arbitrator tnay deem necessary to approve the requested adjustment.The ownerand affected parties may offer documents,written declazraations or other written evidence for the first time at the hearing only if good cause is shown why such evidence was not filed prior tea the hearing. Formal rules shall not be applicable to such proceedings. fn addition,members of the lent Review Commission shall be<aav°ai laiale as regLlired by the arbitrator' for testimony regarding previous rent adjustments in the parka. Within fifteen days after close of the hearing,the arbitrator-shall mare his or her determination, pursuant to the standards hereinafter set forth, approving or disapproving aa,rent adjustment for the mobilcholue spaces specified ]it the application for as discretionary rent adjustment. F The arbitrator shall approve such rent adjtastm nt as lie or she determines to be dust, fair, and reasonable, while assuring the park owner a just and reasonaable return on his or her property. Such rent adjustment may be either below or above the proportional change in the Consumer Price Index.. The arbitrator shall consider, but not be limited to, the following factors in making such determinaations l:: Changes in the C',RL 2. The resit lawfully charged for comparable mold lehoaaie spaces ill the.City>and surrounding areas:, 3. The history and pattern ofaill pricer rent adjusta-aaent of the parr.., and any prior arbitration proceedings; 4: The completion of any,capital improvements or rehabilitation work related to the mobilehome spaces specified in the application, andthe cost thereof, including the. cost of materials, labor, construction interest, pandit fees, and such other items as the arbitrator deems appropriate,, 5. Changes in property taxes and other taxes related to the park- 6 aark 6i Changes in ttaaaster land or facilities lease rent,of mor tc age payments incurred 6 in lInanc.ing the purchase or improvement of the park or incurred in all involuntary refinancing; 7 'haan es in the utility charges for the purl,, and the extent, if" any, of reimbursement from the tenants; 8. Changes in reasonable operating arta maintenance expenses 9. The amount and quality of services provided by the owner to each affected tenant; 10� The teed for rehabilitation work; I 1. Employee and incidental expenses. Pursuant to its determination, the arbitrator may order any adjustment in rent which he or she deems appropriate or consistent with this chapter,and such order shall be final.There shall be no appeal 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 tither relevant factor will clearage rafter a determined period of time. G. The total cast of the arbitration and theCity's administrative costs shall be borne by the owner if the arbitratorapproves a rent adjustment equal to or below the formula rent adjustment authorized by Section 5.48.060.The total cost ofarbitration and theCity's administrative casts shall be borne by the affected tenants if the arbitrator approves a rent adjustment equal to the amount requested by the owner as a discretionary adjustment.If the arbitrator approves art adjustment which is Less than the requested discretionary adjustment,the owner and tenants shall share the total costs in accordance with the ratios set out in Table 5.48.080 (G). Table 5.48.080(G) Owner's share of total cast = 1 - Pent approved Formula adjusted by arbitrator rent Rent requested Formula adjusted by owner rent' Tenant's share of total cost Rent approv=ed - Formula adjusted by arbitrator rent Rent requested Fornaula adjusted by oNvner resat For the:purpose of these ratios, the formula adjusted resat shall. be lased oil a time period beginning on the month of the effective date of the last rent adjustment and ending on the date of the first available release of"the "onsurner Price Index which has been received by the City prior to the application for as discretionary adjustment. The City shall establish fees basal on an hourly basis to provide fiat its administrative costs." Section 8 Section 5.48,100 of the Redlands Municipal Code is hereby renumbered and aataaended to read as f`'ollovvs u.a_ "5.48.090 8.090 Mediation. A. Upon request by both a mobilefhorne park ov ttcr and at least Fifty percent of the tenants of an affected park, the Commission shall act as rtaediator its the negotiation of aariv lease haavinc, a,I term of at least one year. However, the failure to successfully ne.rotiate saac.h it lease shall not deprive any person of any remedy or recourse set forth in this Chapter. B. No owner shall force a tenant to sign a lease in an attempt to avoid the provisions of this chapter- relating to amounts that may be charged for space rent." S ction 9. Section 5.48.11 tt of the Redlands Municipal Code is hereby renumbered and amended to read as follows: "5.48.100 application for discretionary rent decrease, A. The nmiority of affected molailehome canner-occupants in a park- may., by signed petition, subi-nit an application to the City= to request a discretionary decrease in space rents to compensate for an alleged reduction in services,provided that the reduction ofservices has occurred within one hundred twenty= days prior to the date Of stalitnittal of the discretionary rent decrease application, or to compensate:ntobilehorne owner-occupants for utility charges which are ladled to them separately after having previously been included in space rents: R The application for a discretionary react decrease shall be accompanied by documentation which precisely describes the alleged reduction in services and the date that suc reduction occurred, along N ith the monetary value of the reduction C. The application shall lae aceotnpaa lied by written evidence satisfactory to the City that the rinolailehomepark-owner was served with as copy of the application in its completed form at least thirty clays prior to the:date of submittal of the discretionary resat decrease application to the City. D. When an application for a_discretionary resat decrease is received by the City, the Commission shall call as meeting for the purpose ofnaediatinc the issue of the all-ed reduction of services or separate billing ofcharges.The mediation mectino sliaall be held no sooner-than ten days not- later than thirty=- days of the date the completed application is submitted to the City, and the: molailchome parr owner and the inolailehome owner-occupants filing the application shall be notified of the time and place of the meeting. Nothing in this chapter shall prevent the taaeeting froan being held in anappropriate location on the premises of the affected parka: F At the mediation meeting,the Conirnission will hear testimony relating to the matters which are at issue. If the nrobilehonte parr ownet t ac rccs to restore art alleged reduction of services, the mediation rt eetint"T, shall be contitaued fear an appropriate time period as approved by th Commission. t the elate of the continued mediation meeting the C°onttnission will again consider the issues and determine vvhctlrer there has been a resumption ofsct-vices. The Con-innssion, after considering all evidence shall either approve, reject or modify the proposed discretionary rents decrease request and shall, in compliance with State law, base its decision Upon the demonstrated value of any verified reduction of services. Any resat reduction or aaccatt-nUl ation of reductions 9 approved In accordance with this section shall also serve to reduce space rents as subsequently adjusted by fbi-itiularent adjIustments, until removed by a discretionary rent increase oras hereafter set forth, F, An application for a discretionary rent decrease shall be accompanied by a seven hundred dollar deposit as aprocessing fee to pay the City's actual costs of conducting the inediation meeting. The deposit shall be replenished, from time to time, as deemed necessary by City staff to ensure that the City's costs are covered. Upon conclusion of the hearing, the total cost incurred by the City shall be paid by the mobilehome park owner if the Commission approves the requested rent decrease.However,if the Commission denies the request for a,discretionary rent decrease,the costs incurred by the City shall be paid by the mobil home park owner-occupants. G. An owner and any mobilchome owner-occupants in an affected park inay voluntarily ,agree to adjust rents downward for any reason including because of a decrease of services,However, the Commission shall be notified within thirty days of the agreement to provide a record of such change." Section 10ections 5,48.120 and 5. 8.13 shall be renumbered as sections 5.48.110 and 5A&120, respectively, Section 11. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of this ordinance and shall cause it, or a summary of it, to be published once in the Redlands Daily Facts, a newspaper of general circulation within the City and thereafter, this ordinance shall take effect as provided by law. —7e Mayor of the City of Redlands Attest: Cit vBerk 10 I, Louie Poyzer, City Clerk of the City of Redlands, hereby certify that the foregoing ordinance I I - was duly adopted by the City Council at a regular meetincr thereof held on the 21st day of January, 2003, by the following vote: AYES: Councilmembers Peppler, Gilbreath, Harrison; Mayor Haws NOES: None ABSENT: Councilinember Georcre ABSTAIN: None Lorric,-Poyzer, Cit le4i, City of Redlands