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HomeMy WebLinkAboutS02-Economic Development Agency -- - . - ~ITY OF SAN BERN.bINO - REQUEST '-R COUNCIL ACTION F.: Gerald Butler, Director Subject: Ordinance of the City of San Bernardino amending Chapter 8.90 of the San Bernardino Dept: Mobile Home Rent Board Municipal Code relating to Moible Home Rent stabilization. Date: February 13, 1991 Synopsis of Previous Council action: NONE Recommended motion: ~ Waive further reading of ordinance and layover for final adoption. ~74 ~~ Signa ure Contact person: Gerald Butler Phone: ext. 5157 Supporting data attached: YES Ward: ALL FUNDING REQUIREMENTS: Amount: -0- Source: (Acct. No.) (Acct. Description) Finance: --. Council Notes: 75-0262 Agenda I tem No s - ol../ . . . -~ " . . S T A F F R E P 0 R T Councilman Jess Flores in an attempt to meet the expressed needs of his constituents appeared in front of the Mobile Home Rent Board at their meeting on January 8, 1991. He requested that the Board review the memorandum that he had submitted to the City Attorney requesting a change in city Ordinance 8.90.050 Section B. namely "Subject to the provisions of Civil Code section 798.17, if the Mobile Home is sold and is to remain on site, the landlord may increase the rental rate to the new tenant by up to 10% of the current allowable rent." The Rent Board at their January 8, 1991 meeting accepted Councilman Flores request and after a lengthy discussion tabled the Vacancy Control Item to the next meeting, with the understanding that there would be meetings prior to the next Board Meeting to attempt to obtain the input of all concerned parties. The Mobile Home Rent Board in their meeting of February 12, 1991 after lengthy deliberation and input approved by a vote of three to one (with the Chairman abstaining for the reason that his vote was not necessary to recommend for consideration and adoption by the Mayor and Common Council) the ordinance change as submitted by the City Attorney's office. The Mobile Home Rent Board also requests a change in the ordinance as found in section 8.90.060 of the San Bernardino Municipal Code. This change is recommended so that the ordinance will be consistent with new state law that took effect January 1, 1991. . . . " . 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . . 1 ORDINANCE NO. 2 ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING CHAPTER 8.90 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO MOBILE HOME 3 RENT STABILIZATION. 4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: 5 SECTION 1. Subsection L of Section 8.90.040 of the San 6 Bernardino Municipal Code is hereby amended to read as follows: 7 8 9 "L. 'Space Rent' means the considerat:ion, including any bonuses, benef:its, or gratuit:ies demanded or rece:ived for 10 and in connection w:ith the use or occupancy of a mob:ile 11 home space within a mobile home park, or for housing serv:ices prov:ided and security deposits, but exclusive of any amounts paid for the use of the mob:ile home as a dwelling unit. The use or occupancy of a mobile home space shall include the exercise of all rights and priv:ileges and the use of facilit:ies, services and amen:it:ies accru:ing to the residents thereof. 'Space Rent' shall not include any separately billed ut:il:ity fees and charges for natural gas or liquid propane gas, electricity, water, cable television, garbage or refuse service, and sewer service." SECTION 2. Subsect:ion B of Section 8.90.050 of the San Bernardino Municipal Code is hereby amended to read as follows: "B. Vacancies. 1. If the mobile home space is VOluntarily vacated by the tenant other than by sale of the mobile home, or vacated pursuant to Californ:ia Civ:il Code Section 798.56, the landlord may increase the rental rate to any amount as provided :in DAB/ses/Mobihom2.ord February 13, 1991 1 . . . 15 16 17 18 19 20 21 22 23 24 25 1 2 2. . . 3 4 5 6 7 8 3. Subsection A of this Section 8.90.050. Subject to the provisions of Civil Code Section 798.17, if the mobile home is sold and is to remain on site, the landlord may increase the rental rate to the new tenant by up to 10% of the current allowable rent. 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 vacancy had not occurred. A vacancy is voluntary if the tenant voluntarily and without coercion by the landlord vacates the rental unit or, if the tenant dies and there is no surviving cohabitant. All other vacancies are involuntary. When a 9 10 11 12 13 4. rental unit which has been involuntarily vacated is re-rented, the landlord shall, not more than ten (10) days after such re-renting, give 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." Section 8.90.060 of the San Bernardino 26 Municipal Code is hereby amended to read as follows: 27 28 14 5. SECTION 3. j j j DABjsesjMobihom2.ord February 13, 1991 2 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 / 20 / 21 / 22 / 23 / 24 / 25 / 26 / 27 / 28 . . . . "B. If a mobile home park provides in the rent, without separate charge, utilities or similar services (including, but not limited to, natural gas, electricity, water, sewer, trash, and cable television) and converts to separate charge for such service by separate metering, separate charge or other lawful means of transferring to the tenant the obligation for payment for such services, the cost savings shall be passed through to tenants by a rent reduction equal to the actual cost to the park of such transferred utility or similar service (less common area usage) based on costs for the twelve (12) month period prior to notice to the tenants of the change. Provided compliance with this section occurs, provisions for mediation and/or hearing shall not apply. It is the intent of this Section for those rental agreements entered into on or after January 1, 1991, to be consistent with the provisions of Civil Code Section 798.41 as adopted by Chapter 1013, Section 2 of the Statutes of 1990." / / / / / / / / / / / / / / / / / / DAB/ses/Mobihom2.ord February 13, 1991 3 . . . . . 9 10 11 12 13 14 15 16 17 18 19 20 21 22 -- . . 1 2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING CHAPTER 8.90 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO MOBILE HOME RENT STABILIZATION. 3 4 I HEREBY CERTIFY that the foregoing ordinance was duly 5 6 adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 1991, by the following vote, to wit: 7 Council Members: AYES NAYS ABSTAIN 8 ESTRADA REILLY FLORES MAUDSLEY MINOR POPE-LUDLAM MILLER City Clerk The foregoing ordinance is hereby approved this day of , 1991. W. R. Holcomb, Mayor City of San Bernardino Approved as to form 23 and legal content: 24 JAMES F. PENMAN, City Attorney 25 26 27 28 BY:~J / - DAB/SeS/Mobihom2.ord February 13, 1991 4 - - . , . . HART, KING & COLDREN A PROFESSIONAL LAW CORPORATION 200 E. SANDPOINTE. FOURTH FLOOR P. O. BOX 2507 SANfA ANA. CALIFORNIA 92707.0507 TEL: (714) 432-8700 FAX: (714) 546-7457 MlCHAELJ. SCHROEDER. p.e.- OF COUNSEL ROBERT S. COLDREN GARY IL KING WILLIAM R. HART GREGORY B. BEAM CANDICE L CAMPBEU. LAWRENCE W. HORWlI"Z JOHN H. PEN1'ECOBJ' C. WILUAM DAHLIN LORI A. OONAHUE GREGORY Eo GRANTHAM 1lIOMAS R. MARVIN JANICE L. MERRnL IlOBERT P. FOX JAMES M. TJlUSH RACHEUE E. MENAKER SAM M. M1JKIEI..lA. MARK v. ASDQURIAN MARK A. WUEBBEN BARBARA J. OmBLE STEVEN K. UNKON -(AlIoJD::lDbcru.-iiBat) February 15, 1991 Honorable Mayor Members of the City Council of the City of San Bernardino Re: Mobilehome Park Rent Control Ladies and Gentlemen: This office represents the San Bernardino Mobilehome Park Owner's Association. This Association is comprised of a number of owners of mobilehome parks located in the city of San Bernardino. It is our understanding that the Mobilehome Park Rent Review Board has recently submitted to the city Council, a recommendation first proposed by councilman Flores concerning vacancy control. In summary, the Rent Review Board is requesting that the City Council adopt a ten (10%) percent vacancy control provision. This provision would limit the rent increases upon "turnover" to ten (10%) percent. Attached is the following documentation: 1. section 3C of the Yucaipa Rent Control Ordinance; 2. Section 1.03B of the Colton Rent Control Ordinance; 3. section 5.48.120 of the Redlands Rent control Ordinance; 4. Section 8.1 of the El Monte Rent Control Ordinance; 5. Documentation concerning a recent settlement with the City of Montclair. As you should note, each of the provisions set forth above provides for full vacancy decontrol. ~l~ ~ Jig h/ - - . . February 15, 1991 Page 2 For example, my firm was actively involved in the drafting of the Colton Rent Control Ordinance. Initially, this Ordinance provided for a form of vacancy control similar to that currently being proposed in the City of San Bernardino. We brought the case of Hall v. the citv of Santa Barbara to the attention of the city Council of the City of Colton. In summary, the Hall case provides that full vacancy decontrol is legally required. It is my understanding that based upon our presentation regarding this case, the city of Colton revised the Ordinance to reflect full vacancy decontrol. Also attached is a recent addendum to the Montclair Rent Control Ordinance. As you may be aware, my firm has been involved in litigation involving hundreds of thousands of dollars in attorney's fees regarding the issue of vacancy decontrol. As a result of this litigation, our clients have settled with the city of Montclair and agreed to the attached language. I suggest that you consider this matter with various city attorneys in the area. Hopefully, you will come to the conclusion which the cities set forth above has come to: vacancy decontrol is required by applicable California law. Very truly yours, HART, KING & COLDREN ~ . Lawrence W. Horwitz LWH:ca Enclosures .........."..<< - - . " . . ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YUCAIPA AMENDING THE MUNICIPAL CODE AND ADDING CHAPTER ____ PERTAINING TO THE STABILIZATION OF RENTS FOR SPACES IN MOBILEHOME pARKS TO THE MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF YUCAIPA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Purpose and Findinas. A. findinas. co~plaints concerning excessive rents by tenants of mobi1ehome parks led the city council to conduct a study of the situation in the mobilehome parks in the city. As a result of that study, staff investigation and testimony at public hearings held by the City, the city found an extremely low vacancy rate and a pattern of excessive rent increases beginning as early as 1983, when rent control was first sought fro~ the county Board of supervisors for the Yucaipa area. Excessive rent was an issue in the 1986 incorporation campaign, which resulted in the filing of a petition with the Local Agency Formation cOllllllission ("LAFCO") on December 18, 1986 and again in the 1989 incorporation petition filed with LAFCO on March 2, 1989, which resulted in the incorporation of the city on November 27, 1989. The 43 mobilehome parks in the City contain approximatelY spaces and provide approximately % of the dwelling units in the City. Mobileho~e 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 have also made investments in maintaining and improving those homes, as well as landscaping and exterior improvements to the mobile- homes and the rental spaces on which they are located. Alterna- tive sites for the relocation of mobilehomes are difficult to find due to the shortage of vacant spaces, the restrictions on the age, size, or style of mobilehomes permitted in many parkS, and requirements related to the installation of mobilehomes, including permits, landscaping and site preparation. Addition- ally, the cost of moving a mobilehome is substantial and the risk of damage in moving is significant. ThUS, moving a mobilehome is not a feasible option if rent becomes excessive. The result of these conditions is the creation of a captive market of mObi1e- home owners and tenants. Their immobility and the shortage of spaces, in turn, creates an imbalance in the bargaining relation- ship between 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 these individualS with particular harshness. 901205 I... 0500276 (7) ~ /" . . . H. Rent shall occupancy of a mobilehome housing services. I. Rent Administrator shall mean the person desig- nated by the city Administrator to administer the provisions of this Ordinance. mean the consideration paid for use or space and the provision of related J. Residency shall mean the right or entitlement of a mobilehome owner to use, occupy and place a mobilehome on a ren- tal space in a mobilehome park and to related housing services. K. Resident shall mean an owner of a mObilehome whO has a residency. L. prospective Resident shall mean a prospective pur- chaser of a mobilehome in a mObilehome park who has applied for park residency. M. Vacancy shall mean the existence of a space on which no mobilehome is located or a transfer of ownership of a mobilehome which remains in a park, provided however that transfer of ownership shall not include transfers to a spouse, parent, child, trustee, conservator, heir, joint tenant or personal representative of a homeowner's estate who gains ownership of a mobilehome through the death of a homeowner. section 3. Exemotions. The rent regulation provisions in sections 4, 7, 8 and 9 of this Ordinance shall not apply to: A. Newly constructed mobilehome spaces first held out for rent on or after January 1, 1990. B. Any space while that space is subject to a lease which exempts that space from rent regulation pursuant to the california Mobilehome Residency Law, civil code section 79B, gt ~. c. The rent first charged for a space upon a vacancy, provided that the rent thereafter charged for that space shall be subject to the rent regulations of this ordinance. A. 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Mobilehome Rent Review Board-Powers and duties. Legality of space rent increases. Determination of base rent and formula rent adjustment. Application for discretionary rent increase. Arbitration. Mediation. Application for discretionary rent decrease. Vacancies and subleases. Retaliatory eviction. Repeal or amendment. Council review of chapter provisions. RedIands MUetF,:t>~t;; ~;o~~ ," ~, : . " _.=""~......_ ~."' J. '9..~ .1 "5.44.240 5.48.010 Purpose and intent. On December 15, 1981, the City Council of the City ofRedlands determined that a serious short- age of mobilehome rental space had created a virtual monopoly in the rental of mobilehome park spaces within the City and declared it neces- sary to protect the owners and occupiers of mobilehomes from unreasonable rent increases while recognizing the need for mobilehome park owners to receive ajusi and reasonable return on their property. Accordingly, Ordinance 1783 was adopted providing for mobilehome park sta- bilization within the City. The City Council of the City ofRedlands 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 park rent increases. (Ord. 1857 ~ I (part), 1985: prior code ~ 37400) 5.48.020 Definitions. As used in this chapter: A. "Arbitrator" means a professional arbitrator by virtue ofhis or her training or expe- rience or combination of such training and expe- rience. B. "Discretionary rent decrease" means a rent decrease granted pursuant to Section 5.48.110 of this chapter. C. "Discretionary rent increase" means a rent increase granted pursuant to Sections 5.48.080 and 5.48.090 of this chapter. D. "Formula rent adjustment" means a rent adjustment granted pursuant to Section 5.48.070B of this chapter. E. "Mobilehome" means a structure designed for human habitation as defined in Cal- ifornia Civil Code Section 798.3. Structures defined in California Civil Code Section 799.24 are not mobilehomes. F. "Mobilehome park" means an area ofland where two or more mobilehome spaces are rented or held out for rent to accommodate mobilehomes used as human habitation. G. "Mobilehome park owner" or "owner" means the owner, lessor, operator or m.n.ger of a mobilehome park in the City. H. "Mobilehome Park Rent Review Board" means the Mobilehome Park Rent Review Board established by this chapter (sometimes herein called "Board"). 115 (RcdIaDds 4-90) ',dO .) D. When an application or a discretionary rent decrease is received by the City, the Board shall call a meeting for the purpose of mediation to resolve the conflict of alleged reduction of services and/or facilities use or maintenance. The meeting of mediation shall be held no sooner than ten days nor later than thirty days of the date of application and the owners and the applicant shall be notified of the time and place of the meeting. Nothing in this chapter will pre- vent the meeting from being scheduled in an appropriate location on the premises of the affected park. E. At the mediation hearing, the Chairman of the Board wiIl preside and the Board will hear testimony relating to the conditions which are at issue. If the owner pledges to restore an alleged reduction of services, facilities use, or to perform a disputed maintenance item, the mediation meeting shall be continued for an appropriate time period as approved by the Board, At the date of the continued mediation meeting the Board will again consider the issues and verify resumption of services, facilities use, or mainte- nance progress. The Board, after considering all evidence shall either approve, reject or modify the proposed discretionary rent decrease request and shall base its decision upon the demon- strated value of any verified reduction of serv- ices, maintenance or availability of the park's facilities. Any rent reduction or accumulation of rent reductions approved in accordance with this section shall also serve to reduce space rents as subsequently adjusted by formula rent adjust- ments, until removed by a discretionary rent increase or as hereafter set forth. E When and if a service, facilities use, or maintenance item is restored to its previous lev- els, the owner may, by written request, resume the mediation hearing, and the Board will again consider the issue not sooner than ten days nor later than thirty days after the date of the request. The owner and tenant representative shall be advised in writing of the date and place of the meeting. At the meeting the Board may consider all evidence of the restoration of the services, maintenance or facilities use and may approve, deny or modify the owner's request. G. An applicaton for a discretionary rent decrease or a request for consideration for resumption of serices shall be accompanied by a six hundred dollar deposit as a processing fee to defray the actual costs of conducting the hearing (Redlancls 4-90) .' Y"hic~ will be held. The cost of the City's admin- lstrauveexpenses shall be borne by the owner if the Board approves any rent decreases for anv space rent. However, if the Board denies a discre- tionary rent decrease, the cost of the City's administration shall be borne by the affected tenants. Should the deposit not cover the City's costs, the City shall be further reimbursed for additional costs by, or excess deposit shall be returned to, the owner or applicant as the case may be. , H. An owner and any tenant or tenant group In .an affected park may voluntarily agree to adjUst rents downward for any reason including the decrease of services or facilities use. However, the Board shall be notified within thirty daYS of the agreement to provide a record of such change. (Ord. 1857 ~ I (part), 1985: prior code ~ 37410) ',- 5.48.120 Vacancies and subleases. When a tenant of a mobilehome space in any affected park vacates or subleases that space the park owner shall be free to negotiate a new re~t to be charged for that space without reference to the restrictions set forth in this chapter; provided, however, that the adjusted space rent shall then be deemed the new base rent for that space which thereafter may be adjusted only pursuant to the procedure set forth in this chapter. (Ord. 2100 ~ I, 1989: Ord. 1991 ~ I, 1987: Ord. 1857 ~ I (part) 1985: prior code 937411) , 5.48.130 Retaliatory eviction. In ~y action brought to recover possession of a mobilehome space the court may consider as grounds for denial any violation of this chapter. /' . . ORDINANCE NO. 2258 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL MONTE, CALIFORNIA, AMENDING ORDINANCE NO. 2216 REGARDING MOBILEHOME PARK RENT REVIEW PROCEDURES ESTABLISHING A MOBILEHOME PARK RENT REVIEW COMMISSIONER WHEREAS, the city of El Monte, California, has previously adopted its Ordinance No. 2216 to resolve and harmonize disputes that may exist between residents and owners of mobilehome parks which may arise from the failure of either party to recognize the property rights of the other; and WHEREAS, the city Council has considered certain information regarding recommendations for technical amendments to Ordinance No. 2216 for the purpose of further facilitating the review of mobilehome parks rent increases, including the public hearing as conducted on February 14, 1989; and WHEREAS, it is appropriate at this time for the city council to approve certain technical amendments to Ordinance No. 2216. NOW THEREFORE THE CITY COUNCIL OF THE CITY OF EL MONTE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The city council hereby finds and determines that substantially the same conditions exist today with respect to mobilehome parks presently subject to the provisions of Ordinance r 1 S'I.\TE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF EL MCNTE ) ) ) 55 I, Kathleen Kaplan , City Clerk of the City of El Monte, California, do hereby certify t~is to be a true and correct copy of Ordinance No. 2258 adopted by the El Monte City Council at its regular meeting on }~rch 14, 1989. ~~e1A Kathleen Kaplan. City C1erk El Monte, California -- ~ . . I regarding the resolution of any dispute concerning the production of records unless such written order is. waived by the parties. SECTION 8.1 SPACE RENTAL RECALCULATION UPON BALE BY RESIDENT-OWNER Any increase in rent by a landlord upon the resale of a mobilehome unit occupying a space in a park shall not be subject to the provisions of this ordinance. SECTION 8.2 PETITION IN EXTRAORDINARY CIRCUMSTANCES (a) For the purpose of this Ordinance, the term "extraordinary circumstances" shall be defined as acts by a park owner which, by their nature, either prevent the procurement by the residents of the number of signatures required on a petition pursuant to section 5 of this Ordinance or otherwise constitute acts which are likely to vex, harass, or annoy park residents constitute an unfair business practice or are otherwise calculated to frustrate the efforts of park residents. (b) Notwithstanding section 5 of this ordinance, where residents of a park believe themselves to be affected by extraordinary circumstances, 47 . . EXHIBIT "A" ORDINANCE NO. 91- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MONTCLAIR AMENDING CHAPTER 5 OF TITLE 19 OF THE MUNICIPAL CODE RELATING TO MOBILEHOME PARK SPACE RENT REGULATION THE CITY COUNCIL OF THE CITY OF MONTCLAIR DOES ORDAIN AS FOLLOWS: Subsection A of Section 5-19.10 is hereby amended to read as follows: "A. A park owner may charge an unregulated rent increase when ownership or occupancy of a mobilehome in the park is transferred or when a mobilehome is removed from the park, provided that: (1) Transfer of ownership or occupancy for purposes of this Chapter shall not include transfers to the conservator, guardian or trustee of a homeowner, transfers to a homeowner's trust (provided that the beneficiaries entitled to ownership of the mobilehome are members of the homeowner's immediate family), transfers to a surviving spouse upon the death of the other spouse, interspousal transfers, or a transfer to the parent(s) or children of a homeowner. (2) Removal of a mobilehome from a park for the pur- poses of this Chapter shall not include removal of a mobilehome 910128 kla 0500131 (8) r . E~IroT "~ . by a homeOwner already residing in a park tor the purpose of replacing a mobilehome with a new or different mobilehome. (3) After the increase provided in paragraph (~) of this subsection has been charged, the rent for that space shall thereafter be subject to regulation under all the provisions of Chapter 5 of Title 19 of the Municipal Code and no rent increases may be charged, collected or retained except as provided in sections 5-19.06, 5.19.07, 5.19.08. and 5-19.09. For the purpose of the annual increase provided in section 5.19.06A, no such increase may be charged until 12 months after the increase permitted by this subsection. (4) A homeowner wfio intends to put a mobilahome up for sale may request a written statement trom the park owner specifY- ing the rent which will be charged the new homeowner. The park owner shall provide that statement to the homeowner within 15 days of said request, which shall be deemed received by the park owner upon the date of personal delivery to the park manager or owner or the third day after deposit in the U.S. mail, certified or registered mail return receipt requested. The statement from the park owner shall be deemed received by the - homeowner upon the date of personal delive~ to the homeowner or upon the third day after deposit in the U.S. Mail, certitied or registered mail .return receipt requested. The park owner shall not impose any rent higher than that set forth in that statement to a new homeowner for 120 days after the date it is provided to -2- 91Q128 kl. 0500131 (al r . " . . . EXHIBIT "A" the homeowner. If the homeowner has not sold the mobilehome before the commitment in that statement expires, the homeowner shall have the right to obtain subsequent written statements pursuant to this subsection. PASSED, APPROVED and ADOPTED this , 1990. day of MAYOR ATTEST: CITY CLERK -3- 910128 kla 0500131 (8)