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HomeMy WebLinkAboutMC-726 1 !i, 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 . '. . . ,', " ORI'JINANCE NO., 'MC-726 I AN ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING CHAPTER 8.90 TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO MOBILE HOME RENTS THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 8.90 is hereby added to the San Bernardino Municipal Code to read as follows: "8.90.010. Title. This Ordinance may be cited as the Mobile Home Park Rent Stabilization Ordinance of the City of San Bernardino, California. 8.90.020. Statement of purpose. A. Mobile home owners have a substantial investment in their residences and appurtenances for which space is rented or leased. Alternate sites for relocation of mobile homes are difficult to find due to the shortage of vacant spaces, the restrictions of age, size, or style of mobile homes permitted in many parks, and related to the installation of mobile homes, including permits, landscaping and site preparation. Additionally, the cost of moving a mobile home is substantial, and the risk of damage in moving is significant. The result of these conditions is the creation of a captive market of mobile home owners and tenants. This immobility, in turn, contributes to the creation of a great imbalance in the bargaining relationship between park owners and mobile home park tenants in favor of the park owners. B. Because mobile homes are often occupied by senior JFW:DAB:ms{mobilehm.ord} 1 March 29, 1990 )If- 72ft; , . '. 1 citizens~ persons ort fixed incane ?nd persons of lo~ or'moderate 2 income, exorbitant rent increases fall upon these individuals 3 The continuing possibility of with particular harshness. 4 unreasonable space rental increases in mobile home parks 5 threatens to diminish the value of the investment of the mobile 6 Further, existing state law permits mobile home home owners. 7 park owners to require mobile home owners to make modifications 8 to their homes for reasons of aesthetics or conformity to park 9 standards that amount to capital improvements which would accrue 10 to the benefit of the park owner by potentially increasing the 11 market value of the park itself. 12 C. This Council finds and declares it necessary to 13 facilitate and encourage fair bargaining between mobile home 14 owners and park owners in order to achieve mutually satisfactory 15 agreements regarding space rental rates in mobile home parks. 16 Absent such agreements, this Council further finds and declares 17 it necessary to protect the owners and residents of mobile homes 18 from unreasonable space rental increases while simultaneously 19 recognizing and providing for the need of park owners to receive 20 a just and reasonable return on their property. 21 D. Administration of this Ordinance shall be under the 22 general direction of the San Bernardino Mobile Home Rent Board. 23 8.90.030. Application. 24 The provisions of this title shall apply to all mobile home 25 residential rental units located within the City of San 26 Bernardino except if otherwise exempt from the provisions of this 27 title, as such exemptions are provided for hereinafter. Nothing 28 in this chapter shall be deemed to supersede any provision of JFW:DAB:ms{mobilehm.ord} 2 March 30, 1990 Ii I mt-72f/ 1 I" , Califorr~ia . . Civil Code Section 798.15 et seg. 2 8.90.040. Definitions. 3 In construing the provisions of this Ordinance, the 4 following definitions shall apply: 5 A. "Landlord" means any owner, lessor, operator or 6 manager of a mobile home park. 7 B. "Rent" means the consideration, including any bonus, 8 benefit or gratuity, demanded or received by a landlord for the 9 use and occupancy, including services and amenities, of a 10 residential rental unit. 11 C. "Residential rental unit" means any mobile home space 12 occupied by any person other than the owner of the park for 13 payment of rent pursuant to an oral or written lease, or other 14 form of rental agreement. 15 D. "Tenant" means any person entitled to occupy such 16 mobile home unit pursuant to an oral or written lease with the 17 owner thereof, or pursuant to some other rental agreement with 18 19 the owner, lessor, operator or manager thereof. E. "Consumer Price Index or C.P.I." means the Index known 20 as the "Consumer Price Index for all Urban Wage Consumers: for 21 the Los Angeles - Long Beach - Anaheim Area," (base year, 1967), 22 and if published for the San Bernardino - Riverside - Ontario 23 Area for the year 1984, and thereafter. These documents are 24 published by the United States Department of Labor Bureau of 25 Labor Statistics. 26 27 28 F. "Mobile Home" means a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code. Mobile JFW:DAB:ms{mobilehm.ord} 3 March 29, 1990 I jfk-72~ 1 II' horil8 2 . '. (io"es n<9t include , a "re,c.reational as d'efined vehic'le" in Section 799.24 of the Civil Code or a "commercial coach" as 3 defined in Section 18218 of the Health and Safety Code. 4 G. "Mobile Horne Owner or Resident" means any person 5 6 entitled to occupy a mobile home dwelling unit pursuant to ownership thereof or a rental or lease agreement with the owner 7 thereof. 8 9 H. "Mobile Horne Park Owner" or "Park Owner" means the owner, lessor, operator, manager or designated agent thereof of a 10 mobile home park; sometimes referred to as "owner." 11 12 13 14 15 1. "Mobile Horne Space or Space" means the site within a mobile home park intended, designed, or used for the location or accommodation of a mobile home and any accessory structures or appurtenances attached thereto or used in conjunction therewith. J. "Rent Increases" means any additional rent demanded of 16 or paid by a tenant, including any reduction in housing services 17 without a corresponding reduction in the monies demanded or paid 18 for rent. 19 K. "Rental Agreement" means an agreement between a mobile 21 20 home park owner and tenant establishing the terms and conditions 22 agreement. of a tenancy in a mobile home park. A lease is a rental 23 L. "Space Rent" means the consideration, including any 24 bonuses, benefits, or gratuities demanded or received for and in 25 connection with the use or occupancy of a mobile home space 26 within a mobile home park, or for housing services provided and 27 security deposits, but exclusive of any amounts paid for the use 28 of the mobile home as a dwelling unit. The use or occupancy of a JFW:DAB:ms{mobilehm.ord} 4 March 29, 1990 10 11 12 13 14 15 i! I/11C. 1 i' 2 I 3 I . '. l.lu , , mobilE\' ho~e .space shall inch/de the exercise Of al,'l rights and privileges and the use of facilities, services and amenities accruing to the residents thereof. 4 M. "Tenancy" means the right of a tenant to the use of a 5 6 mobile home site within a mobile home park on which to locate, maintain, and occupy a mobile home, site improvements and 7 accessory structures; for human habitation, including the use of 8 the services and facilities of the mobile home park. 9 N. "Vacancy" means the condition deemed to have occurred upon the removal of any mobile home from a mobile home park or upon sale of a mobile home in place to a third party. 8.90.050. Exemptions from coverage. The provisions of this Ordinance shall not apply to the following: A. New Space or First Time Space Exemption - Space rent 16 or space rent increases for new mobile home spaces whether in 17 newly constructed parks or such spaces first rented after the 18 effective date of this Ordinance shall be exempt from the 19 provisions of this Ordinance to the extent that those rents would 20 have been controlled had the spaces been previously occupied. 21 There shall be no prospective exemption in such circumstances, 22 however, as to rents that may be increased annually under this 23 Ordinance after a space is first rented. In such cases, the base 24 date for purposes of determining permissible future rent 25 increases shall be the date of first rental or conveyance. 26 27 B. Vacancy Decontrol 1. Upon the re-renting of a rental unit which has 28 been voluntarily vacated by the previous tenant, or vacated JFW:DAB:ms{mobilehm.ord} 5 April 2, 1990 10 . frl/-!Zu I, . '. 1 I' pu:r'suqn't ~o 'California Civil, C;:ode Section 798'.56; :the' landlord 2 may increase the rent to any amount. 311 41 51 6 . 2. Upon the re-renting of a rental unit which has not been voluntarily vacated by the previous tenant, the base rent and the base rent month shall remain unchanged, and the maximum rent which may be charged shall be the same as if the 7 8 vacancy had not occurred. 3. A vacancy is voluntary: if, the tenant 9 voluntarily and without coercion by the landlord vacates the 11 cohabi tant. rental unit or, if the tenant dies and there is no surviving 12 13 14 15 16 17 18 4. All other vacancies are involuntary. When a rental unit which has been involuntarily vacated is re-rented, the landlord shall, not more than ten days after such re-renting, give written notice to the new tenant of the base rent and the base rent date of the previous tenant and that said base rent and base rent date are applicable to the new tenant. C. Space Rent Agreement Exemption - Any rental agreement 19 in excess of twelve-months duration which also meets all 20 criteria specified by Section 798.15 and Section 798.17 of the 21 California Civil Code, including, but not limited to, the tenant 22 notification requirement within the first paragraph of such 23 rental agreement, shall be exempt from the space rent ceiling 24 provisions of this Ordinance, but only during the term of such 25 rental agreement or one or more uninterrupted, continuous 26 extensions thereof. If such rental agreement is not extended and 27 no new rental agreement in excess of twelve-months duration is 28 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I JFW:DAB:ms{mobilehm.ord} 6 April 2, 1990 1 I 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 )})!-ll& . '.' enter~d' iI)-tc:i, -then' the last ;r'ental agreement shall: be the base rent for purposes of this Ordinance. D. Lease Agreement Exemption - Section 8.90.080 of this Ordinance does not apply to any residential Rental unit for the rental of which the mobile home park owner and the tenants have mutually agreed to enter into a lease which conforms to the provisions of California Civil Code Section 798.15 et seq. E. Violation - It is hereby made a violation of law, punishable as a misdemeanor, for any person to perform any act of duress, menace, or undue influence with the intent of thereby obtaining the consent of any other person to enter into any lease for the occupancy of a residential rental unit. 8.90.060. Registration Within sixty (60) calendar days after the effective date of this Chapter, mobile home park owners are required to register all mobile home parks and mobile home rental spaces within such parks with the Board. The initial registration shall include: the name( s), business address(es), business telephone number(s) of each person or legal entity possessing an ownership interest in the park and the nature of such interest; the number of mobile home rental spaces within the park; a rent schedule reflecting space rents within the park on the effective date of this Ordinance; a listing of all other charges, including utilities not included in space rent, paid by mobile home residents within the park and the approximate amount of each such charge; and the name and address to which all required notices and correspondence may be sent. The Board is hereby empowered to establish procedures for JFW:DAB:ms{mobilehm.ord} 7 March 29, 1990 10 11 12 13 14 15 II, lifJ1[-IZU 1 II, . '. re~ui~i~g,such re~registratiQn as it deems ~ecedsary and to 2 charge a fee for such re-registration in an amount to be 3 established by resolution of the Mayor and Common Council. 4 No park owner shall be eligible to receive any rent 5 ceiling adjustment as provided for under the provisions of this 6 Chapter unless such current registration as may then be required 7 for the mobile home park is on file with the Board at the time 8 the petition for the rent ceiling adjustment is filed. 9 The registration and re-registration requirements provided for in this section, or which may be hereafter established by the Board, shall apply to all mobile home parks including those exempt from the space rent ceiling limitation by reason of the existence of a valid space rent agreement. 8.90.070. Registration fee. A. At the time of initial registration or any subsequent 16 re-registration, mobile home park owners shall pay to the City of 17 San Bernardino such registration fee for each mobile home rental 18 space within the park as may be established by resolution of the 19 Mayor and Common Council. 20 B. If a park owner does not pay the fee provided for in 21 subsection A. above within the time period established therein, a 22 late charge shall be assessed in an amount equal to one dollar 23 ($1.00) for each mobile home rental space within the park for 24 each calendar month or fraction thereof that such payment is 25 delinquent. 26 C. No petition will be accepted from any park owner for a 27 space rent ceiling adjustment of any kind, no hearing or other 28 proceeding shall be scheduled or take place, and space rent JFW:DAB:ms{mobilehm.ord} 8 March 29, 1990 2 3 4 5 6 7 8 9 10 I: 11 'I ~ 12 13 14 15 I I , 16 il 17 I I 18 19 20 21 22 23 24 25 26 27 28 . . ~{-7~~ i 1 ceiling granted take effect for mobile home aqjustment or any park for which there is an unpaid registration bill. D. The Board is hereby directed to maintain an accurate accounting of all direct and indirect costs of administering the regulations contained in this Ordinance. The Board shall submit a report to the Mayor and Common Council of such costs any recommendation for a change in the registration fee at least annually from and after the effective date of this Ordinance. 8.90.080. Space rent ceiling or maximum allowable space rent. Beginning the first month which commences following the day after the effective date of this Ordinance, no mobile home park owner shall charge space rent for any mobile home space in an amount greater than the space rent in effect on December 31, 1988. The space rent in effect on that date shall be known as the "space rent ceiling." If there was no space rent in effect on December 31, 1988, the space rent ceiling shall be the space rent that was charged on the first date that space rent was charged after December 31, 1988. If a mobile home park is exempted from the application of this Ordinance by reason of the existence of a space rent agreement and this agreement expires, the space rent ceiling for that park shall be the space rent in effect on the date the agreement expires. 8.90.90. Space Rent ceiling adjustment initial adjustment. A. No increase in space rent ceilings shall be permitted JFW:DAB:ms{mobilehm.ord} 9 March 29, 1990 1 2 3 4 5 6 7 8 I' 91 10 I' 11 II I 12 13 14 15 16 . .' 1111- 7ZU except a's I;lrovi'ded for herein., B. Permissive Adjustment - A park owner shall be entitled to an initial permissive adjustment gross space rental income equal to eighty percent (80%) of the percentage increase in the Consumer Price Index (CPI) from the end of the base year (1988) to the date of application for the adjustment. The percentage increase in the CPI shall be calculated by subtracting the CPI reported for December, 1989, from the most recently reported monthly CPI preceding the application and than dividing this remainder by the December, 1989, CPl. 8.90.100. Space rent ceiling adjustment annual adjustments. Commencing in calendar year 1990, park owners shall be entitled to the following annual adjustments. A. Permissive Adjustment - A park owner shall be entitled to an annual permissive adjustment of gross space rental 17 income equal to eighty percent (80%) of the percentage increase 18 in the CPI from the date of the most recent initial or annual 19 adjustment to the date of application for the proposed 20 adjustment. 21 B. Net Operating Income Adjustment - In the event a 22 park owner believes he or she does not receive a just and 23 reasonable return on park property after receiving the maximum 24 permissive adjustment provided for above, said park owner may 25 file an application with the Board for an adjustment of the space 26 rent ceiling, providing adequate justification for the proposed 27 increase. 28 A park owner shall be entitled to an adjustment of the JFW:DAB:ms{mobilehm.ord} 10 March 29, 1990 frl/ 7}:(/ . '. 1 space, r.en,t .ceiling so as ,to enable the park :owner' s Net 2 Operating Income (NOI) for the subsequent year to be increased by 3 a rate which, when added to the maximum permissible adjustment 4 provided for above will give the park owner a just and reasonable 5 return on park property. 6 C. No annual adjustment shall become effective if a 7 8 9 previous annual adjustment became effective within the previous twelve (12) months unless approved by the Board pursuant to Section 8.90.100 B. 10 8.90.110. Mobile Home Rent Board establishment and powers. 11 A. Establishment - The Mobile Home Rent Board of the City 12 of San Bernardino is hereby established. 13 14 Composition - B. The Board shall consist of five (5) regular members and two (2) alternate members. One regular 15 member shall be a mobile home tenant who resides in the City of 16 San Bernardino; one member shall be a mobile home park owner, 17 operator, manager or designated agent of a mobile home park 18 located in the City of San Bernardino. The two alternate members 19 shall be a tenant from a different mobile home park other than 20 the regular tenant member and an owner, operator, manager or 21 designated agent from a different mobile home park than the 22 regular owner member. The remaining three (3) members shall be 23 residents of the City of San Bernardino who are not elected 24 officials, employees, relatives of elected officials or relatives 25 of employees of the City of San Bernardino, and who are neither 26 tenants, owners, operators, managers or designated agents of 27 mobile home parks and who have no conflicts of interests due to 28 relationship with same. Candidates for membership of the Board JFW:DAB:ms{mobilehm.ord} 11 March 29, 1990 I 4 ! I 5 I 6 I , , , 7 I 8 ! 91 10 !, II 11 II 12 II 1311 14 , 15 16 17 18 19 20 21 22 23 24 25 . ~711'A II'''' II - l~ lP 'I' I" . . 1 , , shall, subll)it a verified staten\ent listing all interests in any 2 real property or mobile home as defined in Section 798.3 of the 3 California Civil Code, including ownership, individually, jointly, legal or equitable, and all sales of such property, or instruments secured by such property, within thirty (30) days of seeking appointment to the Board. C. Nomination and Appointment - The regular tenant member and his or her respective alternate members shall be selected by the Mayor and Common Council from a list of five (5) nominations for the Board submitted by a general association on behalf of the various homeowners associations. The regular mobile home park owner member and his or her respective alternate member shall be selected by the Mayor and Common Council from a list of five (5) nominations supplied by a general association on behalf of the various mobile home park owners associations. The Mayor and Common Council shall nominate and appoint the three remaining regular Board members. All members of the Board shall be selected in accordance with applicable City procedures. D. Term - Each regular member of the Board shall serve for a term of two years except as otherwise provided herein. For the first Board, the one (1) tenant member and the one (1) owner member and three (3) at-large resident members shall be appointed for three (3)-year terms. Thereafter, the successors shall be appointed for terms of two (2) years. Each regular member shall hold office until a new member has been duly appointed. Each 27 26 alternate member of the Board shall serve for a term of two (2) 28 years except as provided herein. Each alternate member shall hold office until a new alternate member has been duly appointed. JFW:DAB:ms{mobilehm.ord) 12 March 29, 1990 10 11 12 13 14 . '. ,)rlt-1Zu 1 Ii 2 I: 3 i 4 i member's term. If a vacaIfcy occur's or an office becomes vacant other than by expiration of a term, it shall be filled by appointment as previously prescribed herein for the unexpired portion of such Notwithstanding the above provisions of this 5 paragraph, a member may be removed, at any time, with cause, by a 6 majority vote of the Mayor and Common Council. Further 7 notwithstanding the above provisions of this paragraph, any 8 member who is absent without sufficient cause from three (3) 9 consecutive meetings of the Board which such member was required to attend shall be deemed to have vacated his office. E. Meetings - To fulfill its function, the Board shall meet as often as it deems necessary, but at least one regularly scheduled public meeting shall be held everyone hundred eighty (180) days; or, except as otherwise set forth herein, within 15 thirty (30) days of any request for hearing or arbitration held 16 hereunder, whichever is earlier. All members of the Board, 17 whether regulars or alternates, shall be required to attend all 18 Board meetings and hearings unless such member has been 19 disqualified from participation. All meetings of the Board shall 20 be conducted in accordance with the provisions of the Ralph M. 21 Brown Act. 22 F. Voting - The affirmative vote of three (3) members of 24 23 the Board is required for a decision, including all motions, regulations, and orders of the Board. When a regular tenant 25 member or owner member is absent from a meeting, his or her 27 26 respective alternate member shall participate in the Board proceedings in place of the absent regular member. An alternate 28 member shall have voting privileges only when acting in the stead JFW:DAB:ms{mobilehm.ord} 13 March 29, 1990 tll/~ lZr;, . .' 1 2 3 ofar. absef).t 'regular' member. G. Quorum - Three (3) Board members shall constitute a quorum. 4 5 6 H. Powers and Duties of Board - The Board shall undertake and have the following duties, responsibilities, and functions, together with all powers reasonably incidental 7 8 9 10 11 12 13 thereto: 1. Adoption of Rules and Regulations. Subject to the approval of the Mayor and Common Council the Board may make and adopt its own administrative rules and regulations as may be necessary to effectuate the purposes and policies of this Ordinance and to enable the Board to carry out its powers and duties thereunder, so long as such rules and regulations are 14 consistent with the laws of the State, this Ordinance, and any 15 guidelines adopted by the Mayor and Common Council. Any such 16 rules and regulations shall be reduced to writing and be on file 17 with the Director of the Board at all times. 18 2. Director. The Mayor with the approval of the 19 Common Council shall appoint a Mobile Home Rent Director, 20 hereinafter referred to as "The Director", to administer and 21 carry out to the fullest extent possible the expressed intent and 22 purposes of this Ordinance. The Director shall be a full-time 24 23 employee of the City of San Bernardino and shall be a Division Head of the City Administrator's Office. The Director shall be 25 responsible for the day-to-day operations of the Board. 26 3. Maintenance of Records. The Board shall keep a 27 record of its proceedings, which shall be open for inspection by 28 any member of the public. JFW:DAB:ms{mobilehm.ord} 14 March 29, 1990 I' I;tn .7'J /- 1'::_.-'..7, . . 1 ,4.' 'Appointment o.f' Committees, Mediator'S or Hearing 2 Officers. The Board may appoint committees, mediators and 3 hearing officers to hear matters on which testimony may be taken, 4 which committees, mediators and hearing officers shall report to 5 the Board the findings and results of any such hearing on a 6 matter referred to such committee or person upon request. 7 5. Conduct Studies and Investigations. The Board 8 shall have the power to make such studies, surveys, and 9 investigations, conduct such hearings, and obtain such 10 information as is necessary to carry out its powers and duties. 11 6. Require Registration and Registration Fees. The 12 Board shall require such registration of mobile home parks and 13 establish such registration fees as the Board may deem necessary 14 to enable it to carry out its duties. 15 7. Approve Rent Increases. The Board may approve 16 such adjustments in rent ceilings as provided for in this 17 Ordinance. 18 8. Evaluation. The Board shall render at least 19 semi-annually a comprehensive written report to the Mayor and 20 Common Council concerning the Board's activities, holdings, 21 actions, results of hearings, and all other matters pertinent to 22 this Ordinance. 23 9. Related Duties. The Board shall undertake such 24 other related duties as may be assigned by the Mayor and Common 25 Council. 26 1. Compensation - Each member of the Board shall be 27 entitled to such compensation as may be set by the Mayor and 28 Common Council, including reimbursement for reasonable expenses JFW:DAB:ms{mobilehm.ord} 15 March 29, 1990 . '. j?1(/7U/ 1 2 3 inc'urr.ed' iI:l the performance of their official duties. The Board shall not have any authority to expend or authorize the expenditures of any public funds, except with the prior express 4 5 6 approval of the Mayor and Common Council. J. staff - The City Administrator shall provide all administrative staff necessary to serve the Board. The Ci ty 7 8 9 10 11 12 13 14 15 Administrator shall provide a secretary to serve as secretary of the Director and shall be responsible for the maintenance of all records of the Board. The City Attorney or his/her designee shall act as legal counsel to the Board. 8.90.120. Petition by tenant. Any tenant of a mobile home rental space affected by this Ordinance, upon payment of such fling fee as shall be duly established, may petition the Board for a determination whether a proposed or actual action by the landlord of such tenant is 16 legal, valid, and within the terms of this title. If the Board 17 shall establish forms for such petitions, the petition shall be 18 prepared and submitted upon such form. In the absence of such 19 designated form, the petition shall contain the name, address and 20 telephone number, if known, of the landlord, owner, manager, or 21 other person authorized to represent the owner of the mobile home 22 park, a brief statement of the facts giving rise to the request 23 for interpretation or determination, and a statement that a copy 24 of the petition has been personally served or mailed to the 25 owner, manager or other person authorized to accept and receive 26 notices to the landlord. 27 28 8.90.130. Petition by landlord. Any landlord of a mobile home park affected by this JFW:DAB:ms(mobilehm.ord} 16 March 29, 1990 ilk' 72-(/ . .' 1 2 3 Ordinance may, . upon' payment of' such filing fee ~s' 8h~11 be duly established, petition the Board for a determination whether a particular course of action by said landlord is allowable, valid 4 5 6 and in conformity with this Ordinance. The Board may designate forms for the filing of such petitions. In the event that no such form has been designated, the petition shall be in writing, 7 8 9 10 11 12 13 14 and shall contain the name, address and telephone number, if any, of the person requesting the interpretation or opinion, the name and address of each tenant of a rental unit owned or managed by the person requesting the interpretation or opinion, if it is intended that such interpretation or opinion affects such rental unit, a brief statement of the facts giving rise to the request for interpretation or opinion, and a statement that a copy of such petition has been personally served upon or mailed to each 15 such tenant who might be affected thereby. 16 17 8.90.140. Petition for hardship rent increase. A landlord, or any representative of the owner, lessor, 18 operator or manager of a mobile home park affected by this 19 Ordinance, upon payment of such filing fee as shall be duly 20 established, may petition the Board for a hardship increase of 21 the maximum rent permitted to be charged pursuant to this 22 Ordinance. If the Board shall designate a form for the filing of 23 such petition, such petition shall be filed upon such form. If 24 no such form shall be designated, such petition shall be in 25 writing, verified by the applicant, and shall contain the name, 26 address and telephone number of the applicant, the name and 27 address of the tenant of each rental unit which would be affected 28 if the petition were granted, a statement of the facts giving JFW:DAB:ms{mobilehm.ord} 17 March 29, 1990 7 8 9 10 11 12 13 14 15 20 21 22 tJJ/ -72& . -, 1 2 3 rise' to the pe'ci tior. for hardship, increase in suffIcient detail that, if established, such facts would demonstrate the existence of a hardship upon the landlord warranting such hardship 4 5 6 increase. Within thirty (30) working days after the petition has been submitted to the Board for filing, petitioner shall be given notice of the time and place of the hearing, which notice together with a copy of the petition shall be served upon or mailed to each tenant of a rental unit which would be affected by the hardship increase if granted. When a declaration of service has been submitted to the Board, the petition for hardship rent increase shall be deemed filed. 8.90.150. Conduct of Board proceedings. A. Each party to a hearing may have assistance in presenting evidence or in setting forth by argument his position, from an attorney or such other person as may be designated by 16 17 18 said party. B. Formal rules of evidence shall not apply in Board proceedings; however, all oral testimony offered as evidence 19 shall be under oath. C. In the event that any party shall fail to appear at the time and place set for hearing of a petition, the Board may hear and review such evidence as may be presented, and may make 23 such findings and decisions as shall be supported by the 24 evidence presented. 25 D. The Board, shall make findings based on the evidence 26 as to each fact relevant to the Board's decision on the petition. 27 The decision of the Board shall be based upon the findings, and 28 shall: JFW:DAB:ms{mobilehm.ord} 18 March 29, 1990 7 8 9 10 11 12 13 m~n~ . .' 1 I 1. Determine whether the action or prdposed action 2 3 of a landlord is valid, permitted, and in conformity with this Ordinance; and/or 4 5 6 2. Determine whether a hardship exists, and if so, the nature and amount of relief to be granted or authorized to the landlord. E. The Board or its appointed Director shall meet to consider the evidence and arguments of the parties no later than thirty (30) days after the matter has been submitted for decision and shall make its final decision at the conclusion of its deliberations. No rent increase will be authorized unless supported by the evidence. A notice of the Board's decision shall be sent to each party to a proceeding. Unless good cause 14 to the contrary shall appear, each decision of the Board shall :: I apply on a unit by unit basis, taking into account the 17 other facts differentiating rental units. possibility of differences in base rent, services provided, and 18 F. Nothing in this Ordinance, or in any decision of the 19 Board, shall require any landlord to raise rents or charges to 20 tenants. If an increase in the maximum permissible rent is 21 authorized, a landlord may raise rents or charges by a lesser 22 amount, or for a lesser time than is authorized by the decision 23 of the Board. 24 25 26 G. The findings and decisions of the Board shall be final administrative action. There shall be no right of appeal to the Mayor and Common Council. Such findings and decisions 27 shall be public records, and may be certified by the secretary of 28 the Board, if any, or by the City Clerk. Each decision shall JFW:DAB:ms{mobilehm.ord} 19 April 2, 1990 7 8 9 10 11 12 13 14 16 17 18 19 20 21 22 23 24 25 26 27 28 IJJ,"'.... ;')& . .. 1 2 3 . . se~ forih andtic~ as requ~rbd ~y California Government Code Section 1094.6. The decision shall become effective upon mailing to the party unless otherwise indicated at the hearing. This 4 5 6 section supersedes Chapter 2.64 of the San Bernardino Municipal Code. 8.90.160. Priorities - Timeliness of Proceedings. A. The Board may establish categories of petitions or requests, and may set priorities for those categories deemed most urgent. In view of the protections provided for tenants elsewhere in this Ordinance, the highest priority for the proceedings of the Board shall be given to the category for petitions of landlords for hardship rent increase, and among such petitions, the highest priority shall be given to petitions based upon hardship alleged to be created by the landlord's payment of 15 utilities or other necessary services used in rental units. B. The Board shall so arrange its affairs that each petition filed by a landlord seeking a hardship rent increase shall commence hearing not later than forty-five (45) days following the filing of such petition, and shall be determined not later than thirty (30) days following the close of evidence. If the Board shall deem it necessary in order to meet such time constraints, it shall request of the Mayor and Common Council the appointment of one or more hearing officers to hear such cases, make findings thereon, and recommend disposition thereof to the Board. 8.90.170. Hardship rent increase regulations. For purposes of determining allowable hardship rent increases, the rules and regulations set forth in this section JFW:DAB:ms{mobilehm.ord} 20 March 29, 1990 I I 1 l' I 2 I I 3 , I , 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 P) (, lZc/ . '.. shall be" used. In authorizing individual adjustments of the rent ceilings, the Board, its hearing officers and the Director shall consider the purposes of this Ordinance and the requirements of law. The Board may consider all relevant factors including: increases or decreases in operating and maintenance expenses, the extent and cost of utilities paid by the owner, necessary and reasonable capital improvements of the park as distinguished from normal repair, replacement and maintenance, increases or decreases in amenities, equipment, insurance or services, substantial deterioration of the park other than as a result of ordinary wear and tear, failure on the part of the owner to provide adequate repair, housing services or failure on the part of the owner to comply with applicable housing, health and safety codes, federal and state income tax benefits, the speculative nature of the investment, whether or not the property as acquired or is held as a long term or short term investment, the owner's rate of return on investment, the owner's current and base year Net Operating Income and any other factors deemed relevant by the Board, its Director, or its hearing officer in providing the owner a fair return. 8.90.180. Net operating income. Net Operating Income (NOI) shall be gross income less allowable operating expenses. 8.90.190. Gross income. Gross Income equals: A. Gross rents, computed as gross rental income at 100% paid occupancy, plus B. Interest from rental deposits, unless directly paid by JFW:DAB:ms{mobilehm.ord} 21 March 29, 1990 I !, I' 1 II 2 il II 3 'I ! 4 'I ,I 5 'I I, I 6 I: !! 7 I! I 8 9 10 Ii 11 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 /?J/-77v . . the 'land"lo:rd to' the 'tenants. C. Income from miscellaneous sources, including, but not limited to, laundry facilities, vending machines, amusement devices, cleaning fees or services, garage and parking fees, plus D. All other income or consideration received or receivable for or in connection with the use or occupancy of rental units, E. Minus uncollected rents due to vacancy and bad debts to the extent that the same are beyond the landlord's control. 8.90.200. Allowable Operating Expenses. Operating expenses shall include the following: A. Real property taxes, B. utility costs, C. Management fees actually paid if management services are contracted for. If all or a portion of management services are performed by landlord, management fees shall include the reasonable value for such landlord performed services. Management fees greater than five percent (5%) of gross income are presumed to be unreasonable. Such presumption may be rebutted. D. Other reasonable management expenses, including, but not limited to, necessary and reasonable advertising, accounting and insurance. E. Normal repair and maintenance expenses, including, but not limited to, painting, normal cleaning, fumigation, landscaping, and repair of all standard services, including electrical, plumbing, carpentry, furnished appliances, drapes, JFW:DAB:ms{mobilehm.ord} 22 April 2, 1990 10 11 12 13 14 15 16 17 18 19 20 21 22 23 . .' 1 j//1/~ 72(/ carpets, and furniture. 2 F. Owner-performed labor, which shall be compensated at 3 the following hourly rates upon documentation of the date, time, 4 and nature of the work performed: 5 6 1. At the general prevailing rate of per diem wages for the San Bernardino area, for the specific type of work 7 performed, as determined and published by the Director of the 8 9 Department of Industrial Relations of the State of California pursuant to Section 1770 et seq of the Labor Code of the State of California. 2. If no such general prevailing rate has been determined and published, then a cost per hour for general maintenance and a cost per hour for skilled labor as established by resolution of the Mayor and Common Council. Notwithstanding the above, a landlord may receive greater or lesser compensation for self-labor if the landlord proves by clear and convincing evidence that the amounts set forth above are substantially unfair in a given case. Owner performed labor in excess of 5% of Gross Income shall not be allowed unless the landlord proves by clear and convincing evidence that such excess labor expenses resulted in proportionately greater services for the benefit of tenants. G. License and registration fees required by law to the 24 extent same are not otherwise paid by tenants. 25 H. The yearly amortized portion of capital expenses 26 including financing costs, computed in accordance with any useful 27 life table utilized by the Internal Revenue Service. 28 1. Reasonable attorneys fees and costs incurred as normal JFW:DAB:ms{mobilehm.ord} 23 March 29, 1990 . '. IJ .J..il --1',.... <'" - . ~ / ,,."ir',_? / _ ;VI..J', 1 and reasonable costs of do~ng business, including, but not 2 limited to, good faith attempts to recover rents owing and good 3 faith unlawful detainer actions not in derogation of applicable 4 law, to the extent same are not recovered from tenants. 5 8.90.210. Operating expenses not allowable. 6 Operating expenses shall not include the following: 7 A. Avoidable and unreasonable or unnecessary expenses; 8 9 B. Mortgage principal and interest payments; c. Lease purchase payments and rent or lease payments to 10 landlord's lessor; 11 D. Penalties, fees or interest assessed or awarded for 12 violation of this or any other statute; 13 14 E. Attorneys fees and other costs incurred for proceedings before the Board or in preparation for such 15 proceedings, or in connection with any civil actions or 16 proceedings against the Board, or a decision, ruling, or order of 17 the Board; 18 F. Depreciation of the real property; 19 G. Any expenses for which the landlord has been 20 reimbursed by any security deposit, insurance settlement, 21 judgment for damages, settlement, or any other method. 22 8.90.220. Presumption of fair base year net operating 23 income. 24 Except as provided in Section 8.90.230, it shall be 25 presumed that the Net Operating Income produced by a park owner 26 during the base year, provided a fair return on property. Owners 27 shall be entitled to maintain and increase their Net Operating 28 Income from year to year in accordance with Section 8.90.080 JFW:DAB:ms{mobilehm.ord} 24 March 29, 1990 10 11 12 13 14 15 16 . .' 1 n~-7Zu ,8.~0,230. Rebutting the presumption. 2 It may be determined that the base year net operating 3 income yielded other than a fair return on property, in which 4 case, the base year Net Operating Income may be adjusted 5 6 I; 7 accordingly. In order to make such a determination, the Board or its designee must make at least one of the following findings: A. The owner's operating and maintenance expenses in the 8 base year were unusually high or low in comparison to other 9 years. In such instances, adjustments may be made in calculating such expenses so the base year operating expenses reflect average expenses for the property over a reasonable period of time. The hearing officer shall consider the following factors: 1. The owners made substantial capital improvements during 1988 which were not reflected in the rent levels on the base date. 2. Substantial repairs were made due to damage 17 caused by natural disaster or vandalism which management has 18 taken appropriate action to reduce. 19 3. Maintenance and repair were below accepted 20 standards so as to cause significant deterioration in the quality 21 of housing services. 22 4. Other expenses were unreasonably high or low 24 23 notwithstanding the following of prudent business measures. 25 B. The rental rates on the base date were disproportionate due to enumerated factors below. In such 26 instances, adjustments may be made in calculating gross rents 27 consistent with the purpose of this Ordinance. 28 1. The rental rates on the base date were JFW:DAB:ms{mobilehm.ord} 25 March 29, 1990 . '.' Il7( - 7/t/ 1 substantially higher or lowe~ than in preceding months by reason 2 of premiums being charged or rebates being given for reasons 3 unique to particular units or limited to the period determining 4 the base rent. 5 2. The rent on the base date was substantially 6 higher or lower than at other times of the year by reason of 7 seasonal demand or seasonal variations in rent. 8 3. The rental rates on the base date were 9 exceptionally high or low due to other factors which would cause 10 the application of the base year net operating income to result 12 11 in gross inequity to either the owner or tenant. 13 8.90.240. Determination of base year net operating income. A. To determine the Net Operating Income during the base 14 year, there shall be deducted from the annualized gross income 15 being realized in 1988, a sum equal to the actual operating 16 expenses for calendar year 1988, unless the owner demonstrates to 17 the satisfaction of the Board or its designee that the use of 18 some other consecutive l2-month period is justified by reasons 20 19 consistent with the purposes of this section. B. In the event the owner did not own the subject 21 property during the base year, the operating expenses for 1988 22 shall be determined by one of the fOllowing methods, whichever 23 the Board or its designee determines to be more reliable in the 24 particular case: 25 I I I I 26 I I I I 27 I I I I 28 I I I I JFW:DAB:ms{mobilehm.ord} 26 March 30, 1990 1 2 II !I 3 !I 4 i I 5 I 6 !I I I 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 tJ . ,.> f' "I .~~ ,;' I pfV' . '.' . . , . 1., The previous Qwner:' s actual operating expenses as defined in Section 8.90.200 if such figures were available, or 2. Actual operating expenses for the first calendar year of ownership, discounted to 1988 by the schedule. 8.90.250. Determination of current year net operating income. To determine the current year net operating income, there shall be deducted from the annualized gross income, determined by analyzing the monthly rents in affect at the time of filing of a petition, a sum equal to the actual operating expenses for the last calendar year (unless the owner demonstrates to the satisfaction of the Board or its designee that the use of some other consecutive 12-month period is justified by reasons consistent with the purposes of this section). 8.90.260. Schedule of increases in operating expenses. Where scheduling of rental increases, or other calculations, require projections of income and expenses, it shall be assumed that operating expenses, exclusive of property taxes, and management expenses, increases at 5% per year, that property taxes increase at 2% per year, and that management expenses constitute 5% of gross income, provided, however, that if actual increases are greater or less than those listed in this section, the actual increases shown according to proof shall be the increases applicable. 8.90.270. Allowable rent increases. The Board, a hearing officer or the Director may permit rent increases, unless otherwise prescribed by law, such that the owner's net operating income will be increased at the rate as JFW:DAB:ms{mobi1ehm.ord} 27 March 29, 1990 10 11 12 13 14 15 , 1 !' IJ;" /2"(/ spe'cif,ied . .' in Sectio~ 8.90.100 A. 2. , . 2 8.90.280. Discretionary considerations. 3 While the Net Operating Income formula should operate to 4 'I I, 5 !! " I 6 i 7[' 81 guarantee a park owner a fair return on investment, the Director or hearing officer considering a request for rent increases shall consider all relevant factors presented in making a determination, as set forth in this Ordinance. 8.90.290. Limit on increases pending hearing or 9 litigation. Notwithstanding any other provisions of this Ordinance, no increase in rents in a mobile home park shall be valid during the time that any hearing or proceeding is being conducted pursuant to this Ordinance, nor shall such increase be valid during the period in which the Board's decision for that park is being reviewed by a Court of competent jurisdiction, except those the 16 tenants shall be required to pay as the Permissible Adjustment as 17 provided for under Section 8.90.090 B. 18 rents under this Ordinance if the owner: No owner shall increase 19 A. Has failed to comply with any provisions of this 20 Ordinance and/or regulations issued thereunder by the Board or 21 Mayor and Common Council, including any provisions requiring the 22 payment of registration fees and registration penalties. 23 24 B. Has failed to comply substantially with any applicable state or local housing, health or safety law. No owner shall 25 increase rent unless the notice increasing rent contains a 26 statement in substantially the following form: "The undersigned 27 (owner) certifies that this rental space and common areas of the 28 park are not subject to any uncorrected citation or notices of JFW:DAB:ms{mobilehm.ord} 28 March 29, 1990 '1 ., i m/~ 7Zu I ' 1 !' , ( viola'~ion .of . '.' , health . or any state or lqcal housing, safety laws 2 issued by any government official or agency." If an Owner fails 3 to comply with this subsection, the tenant may refuse to pay the 4 improperly noticed increase, may seek administrative or civil 5 remedies under this Ordinance, and may raise the owner's non- 6 compliance as an affirmative defense in any resulting unlawful 7 8 9 detainer action. 8.90.300. Rent increases for reduction in services. A. No owner shall reduce the level or kind of services 10 provided to tenants as of the date of adoption of this Ordinance 11 or take any other punitive action in retaliation for the 12 exercise by tenants of any of the rights granted by this 13 ordinance. 14 B. If a mobile home park provides in the rent, without 15 separate charge, utilities or similar services (including, but 16 not limited to, natural gas, electricity, water, sewer, trash, 17 cable television) and converts to separate charge for such 18 service by separate metering, separate charge or other lawful 19 means of transferring to the tenant the obligation for payment 20 for such services, the cost savings shall be passed through to 21 tenants by a rent reduction equal to the actual cost to the park 22 of such transferred utility or similar service (less common area 23 24 usage) based on costs for the twelve (12) months period prior to notice to the tenants of the change. Provided compliance with 25 this section occurs, provisions for mediation and/or hearing 26 shall not apply. 27 c. For purposes of Section 8.90.300 A. above, in 28 determining cost savings to be passed On to tenants in the form JFW:DAB:ms{mobilehm.ord} 29 March 29, 1990 II I' , t?7(,-1.t& . '.' . , . 1 2 3 of 'deare'ased rent, the cost pf installation of'separate utility meters, or similar costs incurred by the owner to shift the obligation for payment of utility costs to the tenants shall not 4 5 6 be considered. However, this shall not be construed to prohibit or prevent the consideration of inclusion of such costs as an increased operating expense at mediation or arbitration. 7 8 9 10 11 12 13 14 D. If a service other than a utility or similar service per subsection (A) above is reduced or eliminated, or if a utility or similar service is reduced or eliminated without a concomitant decrease in rent, the provisions of this Ordinance regarding petition and/or hearing shall apply subject to the following conditions. Any petition initiating mediation or hearing must be filed within twelve (12) months of the date on which the service was reduced or eliminated, and the reduction or 15 elimination in services must continue to exist at the time of the 16 hearing. Rent decreases shall only be granted prospectively. 17 18 8.90.310. Quantum of proof and burden of proof. The decision of the Board, its Director, or hearing 19 officer must be supported by the evidence submitted at the 20 hearing. The petitioning party shall have the burden of proof in 21 such proceedings. 22 8.90.320. Appeal. 23 Any party to a hearing shall be entitled to appeal the 24 decision of the Director or the hearing officer to the Board. 25 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / 26 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / 27 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / 28 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / JFW:DAB:ms{mobilehm.ord} 30 April 2, 1990 7 8 9 10 11 12 13 14 15 16 17 18 19 23 24 /ll,1 - 7?rj . . '.' - . 1 2 3 - \ . -8,-90,,330. Filing of appe?l~ Any party seeking to appeal the decision of the Director or the hearing officer must file such written appeal within fifteen 4 5 6 (15) days of the date of notice of the decision and must post a deposit of an amount sufficient to cover the cost of preparing the Hearing Record. 8.90.340. Appeal hearing. Upon the request of any party filing an appeal and depositing the sums required in Section 8.90.330 hereof, the Board shall schedule a hearing to be held within thirty (30) days of the filing of appeal and shall direct the Director to notify the parties of such hearing date. 8.90.350. Appellate review. The Board shall review the Hearing Record and hear the arguments of the parties at the appeal hearing, but shall limit its review to facts presented at the hearing before the hearing officer. 8.90.360. Time for appellate decision. The Board shall make a decision no later than five (5) 20 21 22 days following the appeal hearing and notify the parties within ten (10) days following the Board's decision. 8.90.370. Finality of decision. The decision of the Board on appeal shall be final and binding. This section specifically supercedes Municipal Code 25 Chapter 2.64. 26 27 28 8.90.380. Judicial review. An owner or tenant aggrieved by any action of the Board may seek judicial review by appealing to the appropriate Court JFW:DAB:ms{mobilehm.ord} 31 March 29, 1990 II II I 1 I I 2 , I 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 . , .' '. ' " Ill! 121/ , .. ' wi thin iohe, jurisdiction. , ,. '1 sections 1094.5 and 1094:6 of the Code of Civil Procedure are applicable. 8.90.390, Termination of tenancy. A tenancy which is not held pursuant to a written rental agreement that conforms to the provisions of Section 798.15 et seq. of the California Civil Code shall be terminated only pursuant to Section 798.55 et seq. of the California Civil Code. 8.90.400. Remedies for violation. A. Civil Remedies - Any person who demands, accepts, or retains any payment in violation of any provision of this ordinance shall be liable in a civil action to the person from whom such payment is demanded, accepted, or retained for damages in the sum of three (3) times the amount by which the payment or payments demanded, accepted or retained exceed the maximum rent which could lawfully be demanded, accepted, or retained, together with reasonable attorney's fees and costs as determined by the Court. B. Criminal Remedies - It shall be unlawful for any owner to adjust any rent in an amount in excess of that allowed under this Ordinance or by order of the Board. Any owner who willfully and knowingly violates any of the provisions of this Ordinance or the orders of the Board shall be guilty of a misdemeanor. C. Injunctive and Other Civil Relief - The Board, the Director, the City, and the tenants and owners may seek relief from the appropriate Court within the jurisdiction within which the rental unit is located to enforce any provision of this Ordinance or its implementing regulations or to restrain or JFW:DAB:ms{mobilehm.ord} 32 March 29, 1990 1 2 I II 3 II 4 I 5 I I 6 I 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . .' . . .' f nJI 72& . .' " . . ~ .. . \ enJoJ.n .any violation of i;hts Ordinance and of the rules, regulations, orders and decisions of the Board. D. Non-waiver of Rights - Any waiver or purported waiver by a tenant of rights granted under this Ordinance prior to the time when such rights may be exercised, whether oral or written, shall be void as contrary to public policy. 8.90.410. Period review of ordinance. A. The Mayor and Common Council shall review the provisions of the Ordinance one year following the date of adoption thereof, and at any other time deemed appropriate, in order to consider the following: 1. Whether this ordinance continues to be necessary to protect the public health, safety, and welfare. 2. Whether the implementation of the provisions of this Ordinance have been adequate; and 3. Whether the provisions of this Ordinance should be amended to provide more effective regulations or to avoid unnecessary hardship. 8.90.420. Severability. If any provision(s) of this Ordinance or application thereof to any person or circumstances is held invalid, this invalidity shall not affect other applications of this ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are declared to be severable. 8.90.430. Ordinance to be liberally construed. This Ordinance shall be liberally construed to achieve the purposes of this Ordinance and to preserve its validity." JFW:DAB:ms{mobilehm.ord} 33 March 29, 1990 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 fJJ( -72// . .. . . .' . , 1 2 3 ."~ ~ .~.\ CITY,OF SAN BERNARDINO ADDING CHAPTER MUNICI~AL CODE RELATING TO MOBILE HOME . . . fiN OnDINANCE OF THE 8.90 TO THE SAN BERNARDINO RENTS. 4 5 6 California. I HEREBY CERTIFY that the foregoing ordinance was duly adopted by the Mayor and Common Council of the City of San 7 Bernardino at an Adjourned meeting thereof, held on the 9th day of April 1990, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ESTRADA REILLY x FLORES x MAUDSLEY x MINOR x POPE-LUDLAM x MILLER The f~~g Of~l- ~~//;7l/2d!:;;;#/ City Clerk ordinance is hereby approved this ~_ day , 1990. Approved as to form and legal content: JAMES F. PENMAN, City Attorney By: iz~ 7--,~~.A, (/ JFW:DAB:ms{mobilehm.ord} 34 March 29, 1990