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HomeMy WebLinkAboutOrdinances_2207_CCv0001.pdf ORDINANCE NO. 2207 AN ORDINANCE OF THE CITY OF RELY ES AMENDING CHAPTER 5.48 OF THE REDLANDS ICIP L CODE RELATING TO RENT STABILIZATION FOR MOBILEHOME PARKS WHEREAS, Ordinance No 1783 of the City of Redlands, as; subsequently amended and now codified in Chapter 5.48 of the Redlands Municipal Code, declared that the then existing shortage' of mobilehome park rental apace within the City created a virtual monopoly in the mobilehome rental Market and, based upon such determination, established procedures for stabilizing mobilehome park rents < and WHEREAS, on December 5, 1989, the city Council of the.; City of Redlands ("this City Council") adopted Ordinance No. 2100, in response to evidence presented to it by owners of mobilehome parks, to permit an exemption to the City's rent stabilization ordinance upon a change in tenancy or a sublease because new tenants or subtenants could negotiate space rent at arms length, unlike existing tenants who may not be in a position to reject the rent increase demanded by park owners, and WHEREAS, the tenants of mobilehome parks have presented new evidence and testimony to this City Council that the exemption to the City's rent stabilization ordinance adopted several years ago has caused significant harm to tenants residing in mobilehome parks by dramatically limiting the tenants ' ability to sell their mobilehomes to persons seeking to become residents within the parks, and WHEREAS, since October 1, 1981, several new mobilehome parks have been constructed within the City, but this City Council finds and determines that such parks have failed to alleviate the monopoly in the parks relating to rental spaces which existed on October 1, 1981; and WHEREAS, it is the desire of this City Council to protect the interests of persons residing within mobilehome parks and the public peace, health and safety by regulating rent increases which may be imposed at the time of a vacancy or change in tenancy of a mobilehome, while still ensuring that mobilehome park owners receive a reasonable financial return of their investment, NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Redlands as follows. SCD149013 Section 1. Chapter 5.48 of the Redlands Municipal. Code is hereby amended to read as follows: "Chapter 5.48 REQ STABILIZATION FOR Mt BILEHOM& PARKS sections 5.48. 010 Purposeand intent. 5.48.020 Definitions. 5.48.030 Exemptions. 5.48.040 Mobilehome Rent Review Board--Establishment. 5.48.OSO Mobilehome Rent Review Beard--Powers and duties. 5.48.060 Legality of space runt increases. 5.48. 070 Determination of bass rent and formula rent adjustment. 5.48.080 Application for discretionary rent increase. 5.48. 090 Arbitration. 5.48.100 Mediation. 5.48.110 Application for discretionary rent decrease.. 5.48.120 vacancies and subleases. 5.40.180 vacated spaces. 5.48.140 Retaliatory eviction. 5.48.1s0 Termination of chapter provisions. 5.48.160 Council review of chapter provisions. 5.48.010 Purpose and intent. A. On December 15, 1981, the City Council of the City sof Redlands determined that a serious shortage of mobilehome rental space: within the City had created a virtual monopoly in the rental,; of mobilehome park spaces. In response to this lack of available rental. space, the City Council 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. 1783 was adopted providing for mobilehome park rent 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 1783 continues to require a procedure for stabilizing mobilehome .rent. increases. SCD149013 B. Mobilehome owners, unlike apartment tenants or residents of other rental stock, are in the unique position of having made a substantial investment to purchase a mobilehome for which they must rent a space in a mobilehome park. They also make investments in maintaining and improving their homes as well as in landscaping the rental space. Alternative sites for the relocation of mobilehomes are difficult to find due to the shortage of vacant spaces, restrictions on age, size or style of mobilehomes permitted in many parks and the requirements related to the installation of mobilehomes, including permits, landscaping and site preparation. Additionally, the cost of moving a mobilehome is substantial and the risk of damage is significant. Thus, moving a mobilehome is rarely a feasible option if the rent for a mobilehome park space becomes excessive. The result of these conditions is the creation of a captive market of mobilehome owners and tenants. The immobility of mobilehomes, and the shortage of rental spaces, in turn, creates an imbalance in the bargaining relationship between mobilehome park owners and mobilehome park tenants. Because mobilehomes, are often owned by senior citizens, persons on fixed incomes and persons of low and moderate income, excessive rent increases fall upon those individuals with particular harshness. 5'.48.020 Definitions. As used in this Chapter the following words shall have the meaning ascribed to them: A. "Adjusted C.P.I. 11 means the percent of the C.P.I. used for determining rent increases or decreases pursuant to Section 5.48.070(B) . B. "Arbitrator" means a professional arbitrator by virtue of his or her training or experience or combination of such training and experience. C. 11C.P.I. 11 or "Consumer Price Index" rqeans the index commonly known as the "Consumer Price Index for all Urban Wage Consumers for the Los Angeles-Long Beach-Riverside area, " (Base year 1967) published by the United States Department of Labor, Bureau of Labor Statistics. D. "Discretionary rent decrease" means a rent decrease granted pursuant to Section 5.48.110 of this Chapter. E. "Discretionary rent increase" means a rent increase granted pursuant to Sections 5.48. 080 and 5. 48 . 090 of this Chapter. F. "Formula rent adjustment" means a rent adjustment granted pursuant to Section 5. 48 . 070B of this Chapter. G. "Mobilehomell means a structure designed for human habitation as defined in California Civil ode> Section 798.3. sm149013 -3- Structures defined in California civil Code Section 799. 24 are not mobilehomes. H. "Mobilehome park" means an area of land where two or more mobilehome spaces are rented or held out for rent to accommodate mobilehomes used as human habitation. I. I'Mobilehome park owner" means the owner, lessor, operator or manager of a mobilehome park located in the City. J. I'Mobilehome Park Rent Review Board" 'means the Mobilehome Park Rent Review Board established by this Chapter (sometimes herein called the "Board") . K. "Mobilehome tenant" or "tenant" means any person entitled to occupy a mobilehome space which is located within a mobilehome park in the City. L. "Park facility" means a facility or amenity which provides for the recreation or convenience of any mobilehome tenant. M. "Space rent" means 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 a mobilehome park, but exclusive of any amount paid for the use of a mobilehome dwelling unit. N. "Trailer" means a structure 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, including a trailer coach or house trailer. 5.48.030 Exemptions. The provisions of this Chapter shall not apply to the following tenancies in mobilehome parks located in the City: A. Mobilehoma park spaces rented for non-residential uses; B. Mobilehome parks constructed after October 1, 1981. For the purpose of this subsection the term "constructed" means the initial erection of structures; C. Tenancies 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 any federal or State law or regulation specifically prohibits rent regulations; E. Trailer parks which are occupied by less than fifteen mobilehomes; SCD 149013 -4- F. Tenancies covered by leases or contracts- which provide for more than a month-to—Month 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 monthly space rent shall be determined in accordance with this Chapter, provided that any increase in monthly space rent which had been allowed under the expired or terminated lease during the preceding twelve months, when added to any monthly rent adjustments permitted under this Chapter, shall not exceed the increases permitted under Section 5.48. 070, provided further that nothing in this subsection is intended to require a reduction i rent below that charged under the expired or terminated lease, G. Mobilehome parks; which sell lots for factory-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. S.48. 0 0 Mobilehome Rent Review Board— Establishment. A. There is hereby establisheda Mobilehome Rent Review Heard 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 mobilehome park; nor connected with the real estate, rental housing or mobilehome industry for personal gain, nor' persons who have relatives of the first or second degree residing within any park in the City. 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 wile on official duty. 5.48.050 Mobilehome Rent Review Berard-- Powers and. duties. Within the limitations provided by law, the: Board shall have the following powers and duties: A. To meet, from time to time as required by the City Manager of the City and to utilize City offices and facilities as needed B. To receive evidence and testimony, investigate, conduct meetings and public hearings and pass upon tete issues relating to mobilehome park rent stabilization as set forth in this chapter, scDI49013 -5- C. To make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary to carry out its duties; D. To render at least annually a written report to the City Council concerning its activities, holdings, actions, results of hearings and all other matters pertinent to this Chapter which may be of interest to the City Council; E. To adopt, promulgate, amend and rescind administrative rules to effectuate the purposes and policies of this Chapter. F. To assist the arbitrator in arbitrating an application for a discretionary rent adjustment, as set forth in this Chapter. G. To assist an owner and the tenants of a mobilehome park in reaching a lease agreement, as set forth in this Chapter. H. Except as otherwise may be provided herein, to review and- give ndgive final approval to any application for a rental adjustment, whether it be from a mobilehome owner or tenant(s) . 5.48. 060 Legality of space rent increases. No adjustment in space rents in as mobilehome park shall be effective unless authorized as set forth in this Chapter. 5.48.070 Determination of base rent and formula rent adjustment. A. The base rent for purpose of this Chapter shall be the last space rent approved pursuant to ordinance 1783 of the City. 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 months after the effective date of previously approved rent adjustment. Except as hereinafter provided, no park owner shall demand, accept or retain rent for a mobilehome space exceeding the base rent in effect for such space. B. Each year, a mobilehome park owner or a majority of mobileh,ome owners and tenants within a mobilehome park and 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 C.P.I. The C.P.I. shall cover the period of time beginning on the first day of the month which is four months prior to the effective date of the last rent adjustment and ending on the last day of the month which is four 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 of any percentage in excess of four percent (4%) through nine percent (9*) and twenty- five percent (25%) of any percentage in excess of nine percent SCD149013 -6 (9%) . Each such application must be accompanied by evidence that notice of the proposed adjustment has been served to each affected tenant at least sixty days prior to 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. The Board shall designate a member of City staff employed in the Finance Department or the Treasurer's office to calculate and tentatively approve the formula rent adjustment in the amount requested, not to exceed the amount authorized herein, and thereafter forward the application to the Board for final approval, provided that such adjustment shall not be granted retroactively. D. For the purpose of consolidating anniversary dates for rent increases permitted under this Chapter for leases expiring pursuant to Section 5.48. 030F, the mobilehome park owner may file a petition with the Board to increase rents in accordance with the following table: Number of Months Since Allowable Rent Increase Last Rent Increase (Percent of Base Rent) 12 100% of Adjusted C.P.I. 13 108% of Adjusted C.P.I. 14 117% of Adjusted C.P.-I.- 15 125% of Adjusted C.P.I. 16 133% of Adjusted C.P.I. 17 142% of Adjusted C.P. I. 18 150% of Adjusted C.P. I. 19 158% of Adjusted C.P. I. 20 166% of Adjusted C.P.I. 21 175% of Adjusted C.P.I. 22 183% of Adjusted C.P. I. 23 191% of Adjusted C.P.I. 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 the last rent increase is accurate shall be the mobilehome park owner's and shall be filed on the City's forms. In cases where there is an anniversary date for at least 25% of the spaces in an affected park, the mobilehome park owner shall consolidate all leases expiring after January 1, 1993 to that date within 24 months of the expiration of the lease. For determining whether 25% of the spaces share an anniversary date, only those spaces subject to this Chapter shall be counted. S.48.080 Application for discretionary rent increase. A. An owner who seeks a rent increase not authorized in subsection B of Section 5.48. 070 shall submit an application for a discretionary rent increase on the City's form, together with such Sr-D149013 -7- -� _ - . . �� .,, � � ter, _. - s - . ..... ..: •..... I. ^^ � _ x...11 �..� ®.-: `• s �. � . ill • "` . iM M 11'i � •:. i i . i,. �! �, �. i • f 11 � •i 9 � •• :. • ,�. 's tlb.w ;. r � +* :: 11 ®. a.. • . �. s 'i r • ffi i r. i. • 11 :; ,,Ili, g, � :11 r �... r .... #,, 11,;� •. N.:. - 6 �! � r •. a '�# r ,+ ;t t a r .,. r ru Id s: 3' it« ' r,• a Nti �. a. .., Y iP �. • '. .. • ,.: .. dR .;. # it'+!E ..,�, ..r .. .. *iR s # s. ,® fl /M iY !t r 11 r M Ili ••. • ♦ "'.•. „. 4f# s: i ®. : ill ®° ! r. .. �. -. !,® �!, ,�. .. `�•. #k E M �.�, r. �.... # r r �.,. ,. • ®. sit w.. il'. ! - • .. � ..., 1 'i + 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 application within: sixty days. The Board or its designee shall send 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 documentation are on file with the City and are available for review by any affected party, and that responding parties may submit written statements or documents to the arbitrator no Eater than ten drays 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 of review by any affected party. D. At the hearing, the mobilehome park 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 other documents that the arbitrator may deem necessary to approve the requested adjustment. The owner and affected parties may offer documents, 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 prier to the hearing. Formal rules shall not be applicable to such proceedings. In addition, members of the Rent Review Board shall be available as required by the arbitrator for testimony regarding previous rent adjustments in parka Within fifteen days after close of the hearing, the arbitrator shall, make his or her determination;, pursuant to the standards hereinafter set forth, approving o disapproving a rent adjustment for the mobilehome spaces specified in the application for a discretionary rent adjustment. 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. Such rent adjustment may be either below or above the proportional change in the Consumer Price Index all Urban Consumers Los Angeles- Long Beach-Anaheim (Base 1967) . The arbitrator shall consider, but not be limited to, the following factors in making such determinations: 1. Changes in the. C.g.I. 2. The rent lawfully charged for comparable mobilehome spaces in the City and surrounding areas, 3. The history and pattern of all prior rent adjustment of the park-, and any prior arbitration proceedings, SCD 149 13 - 4 . 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; S. Changes in property taxes and other tames related to the park, . 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, . Changes in the utility charges for the park and the extent, if any, of reimbursement from the tenants; S. Changes in reasonable operating and maintenance expenses 9. The amount and quality of services provided by the owner to each affected tenant, 10. The need for rehabilitation work; 11. Employee and incidental expenses.. F. 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 fi.na,l.. 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 other relevant factor will change after a determined period of time.: G. The total oast 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 formula rent adjustment authorized by subsection 5.48 . 070. The total cost o arbitration and the City's administrative 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 discretionary 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 ratios set out in Table .48. 00(G For the purpose of these ratios, the formula 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 first available release of the Consumer Price Index which has been received by the.. City' prior to the application, for a discretionary adjustment. The City shall establish fees based on an hourly basis to provide for .its administrative costs SCD 149013 -10- Table 5.48.090(G) Rent approved Formula Owner's share = 1 -- by arbitrator -- adjusted rent of total cost Rant 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 5. 48.100 Mediation. A. Upon request by both a mobilehome park owner and at least fifty percent of the tenants of an affected park, the Board shall act as mediator in the negotiation of any lease having a term sof at least one year. However, the failure to successfully negotiate such a lease shall not deprive any person of any remedy or recourse set forth in this Chapters B. No owner shall farce 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-. 5.45.110 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 compensate for a reduction in services, maintenance, or use of park facilities provided that the reduction of services or use of park facilities has occurred within one hundred twenty days of the date of submittal of the rent reduction application; or to compensate tenants fo ut ,lity charges and other expenses which are billed separately after hawing previouslybeen 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 commenced. B. The application for a discretionary rent decrease shall be accompanied by documented factual evidence which precisely describes the reduction in services, facilities use, or maintenance, and further, 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. of 4i• • ! �.4,, � - ! • • `" -. S.: .� a'� -a! a# as '^•. • � � � a #' ail ^_ M •. rii � �... M � ,,. # r. . 9 — !'� � M.. ®. r 4p .., .IIP.•,f il:. a,. � . * • A. �. e. � �, ;... at A ®. ! ..' .. " as i. ,.. � _ ! as t w • • ,, m ,. � �s � — • as :: — • � w • w ,. ,� � ae .� .. — � s . � f s ^`. • "` • ala+! _. i _ .. r r.. -s a +� »+w arr ar � �* t r .. * � � �, '� 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 parr may voluntarily agree to adjust rents downward for any reason includingthe decrease of services or facilities use. However, the Board shall be notified within thirty' days of the agreement to provide a record of such change. S.48.120 Vacancies and. Sub-Leases. A mobilehome park owner shall not increase the rental rate e.g. the amount of rent being' paid by the Seller at the time of the sale or change in tenancy of a mobilehome) of a mobilehome space to a new owner or tenant of the mobilehome located on that spaced provided, however, than nothing in this Chapter shall prohibit a mobilehome park owner from increasing a monthly space rent charged for a mobilehome park space when the mobilehome has; been removed from the pare or where the mobilehome has been abandoned by its owner or when a legal eviction of a tenant is effected by the property owner. 5.48.130 Retaliatory Eviction. A. No park owner or representative of an owner shah: intimidate, threaten, harm, retaliate, annoy, harass or otherwise interfere in any wanner with any tenant's exercise of any of the rights conferred by this Chapter or the Constitutions of the United States and the State of California, or that tenant's right to participate in any action or proceeding brought by any interested party pursuant to this Chapter, including public participation and the signing of petitions. The City recognizes that many residents in mobilehome parks are elderly and are easily intimidated by threats. The City further recognizes the tenants' right to participate, with others, in any event for the mutual benefit of park residents. B. In any action brought to recover possession of a mobilehome space, the court may consider as grounds for denial any violation of this Chapter. Farther, the determination that the action was brought in retaliation for the exercise of any rights conferred by this Chapter shall be grounds for denial. 5.48.X40 Repeal or amendment. The provisions of this chapter shall remain in effect- only until December 31, 1999, unless extended by ordinance duly adopted by the City Council. SM 149013 5.48.160 Council review of Chapter provisions. The City Council shall periodically review the effectiveness of this Chapter in addressing the problems giving rise to its enactment. Section 2. This ordinance shall be in force and take effect as provided by law. Section 3. The City Clerk shall certify to the adoption of this ordinance and cause it, or a summary of it, to be published once in the Redlands Daily Facts, a newspaper of general circulation printed and published in this City. ATTEST: Mdy6'r '0- of R� ds Mtt�ye�k I, Lorrie Poyzer, City Clerk of the City of Redlands, hereby certify that the foregoing ordinance was duly adopted by the City Council at a regular meeting thereof held on the 19th day of January , 1993 , - by the following vote: AYES: Councilmembers Larson, Cunningham, Milson, Foster; Mayor DeMirjyn NOES: None ABSENT: None -C-1—t lerk SCD 14816 -14-