HomeMy WebLinkAbout26-City Attoney
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,. . ~lTY OF SAN BEeNARDINOa- MEMORAND~
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To LEGISLATIVE REVIEW COMMITTEE
From JAMES F. PENMAN
City Attorney
Date August 10, 1987
Subject Adoption of Urgency Ordinance re
Moratorium on Mobile Home Park
Rtftt Iftereast:s
Approved
Date
760.3
You have requested an investigation of the question whether the
City Council may adopt an urgency ordinance instituting a
moratorium on mobile home park rent increases, which also rolls
back rents to their July 1 levels.
Although this issue has apparently not been addressed directly
by the courts, there are several considerations which support a
finding that the Council may take such action. Pursuant to
Article 11, Section 5 of the Constitution of the State of
California:
-It shall be competent in any city charter
to provide that the city governed thereunder may
make and enforce all ordinances and regulations in
respect to municipal affairs, sUbject only to
restrictions and limitations provided in their several
charters and in respect to other matters they shall be
subject to general laws. City charters adopted pursuant
to this Constitution shall supersede any existing
charter, and with respect to municipal affairs shall
supersede all laws inconsistent therewith.-
Further, at Article 11, Section 7, it is set forth that:
-A county or city may make and enforce
within its limits all local, police, sanitary,
and other ordinances and regulations not in
conflict with general laws.-
It was early determined that rent controls were not in conflict
with any general laws of the State of California
(Birkenfeld v. Citv of Berkelev (197~, 17 Cal.3d 129, 130
Cal.Rptr. 465 at 141, 474). Pursuant to Birkenfeld, and its
progeny, the City Council clearly has the authority to regulate
with respect to rents.
In the case of Swanson v. Marin Municioal Water District (1976)
56 Cal.App.3d 512, 128 Cal.Rptr 485, the court noted, based on
Strumskv v. San Die90 County Employees Retirement Association
(1974) 11 Cal.3d 28, 34, footnote 2, 112 Cal.Rptr. 805, that
determination by a local water district that an emergency
shortage of water existed and, enactment of a moratorium based
thereon was a legislative rather than an adjudicatory act. The
court went on to state that the District's actions in that
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circumstance were not subject to judicial review under Section
1094.5 of the Code of Civil Procedure, but were reviewable only
by means of ordinary mandate:
- . . . where the court is limited
to a determination of whether District's actions
were arbitrary, capricious or entirely lacking in
evidentiary support, or whether it failed to follow
the procedure and give the notices required by law.-
Id. page 489
There was nothing in the case to distinguish the acts of a
water board from the acts of any other legislative body such as
the Council, acting within the limits of its authority. Based
thereon, it can be stated that a legislative body enacting a
moratorium may do so based on evidentiary support sufficient to
sustain it against attack for arbitrariness, capriciousness, or
lack of evidentiary support as set forth in Strumskv.
The case of Carson Mobilehome Park Owners v. Carson (1983) 35
Cal.3d 184, 197 Cal.Rptr. 284 appears to be most on point. In
the recitation of the factual situation, the court noted that
the City of Carson adopted a ninety-day moratorium on rent
increases in mobilehome parks. Support is found in the fact
that the ninety-day moratorium was not in fact attacked by the
parties and, that the ordinance as a whole was upheld by the
court.
Finally, the Mayor and Common Council of the City of San
Bernardino have previously adopted a mobilehome park rent
moratorium and rollback in the City of San Bernardino. Such
action was taken as Ordinance No. 3805 dated February 21, 1979,
a copy of which is attached hereto.
Based on the above, it is determined that upon a finding that
an emergency exists with respect to mobilehome park rents in
the City of San Bernardino, and that the health, safety and
welfare of the citizens require action, the Mayor and Common
Council have within their authority the power to adopt a rent
moratorium rolling back rents to July 1, 1987, levels.
JAMES F. PENMAN
City Attorney
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FOR
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OFOINANCE NO. ~ I
ORDINANCE OF THE CITY OF SAN BERNARDINO PROVIDING TflAT RENTJ
MOBILE HOME SITES SHALL NOT EXCEED THOSE IN EFFECT ON FEBRUAR'4
1979, AND TEMPORARILY PROHIBITING RENTAL INCREASES THEREFOR. I
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TilE MAYOR AND C~ON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
SECTION 1. Purpose. Pending further study of the develop-
ment and adoption of measures to address the problems created by
the present housing and mobile home site shortage, it is necessar~,
i on an interim basis, to prohibit rental increases on mobile hO\"i1e
sites within the City of San Bernardino.
SF.C~ION 2. Definition of 7errns. Unless it is apparent from
the context that anot~er meaning is intended, t~e following words
and terms when used herein shall ~ve the meaning ascribed to them
by this Section.
A. "Services": Services connected witt. the use or occu-
pancy of a mobile ho~e site including, but not limited to, repairs,
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replacement, maintenance, painting, light, heat, water refuse
r~.oval, sewage removal, furnishings, telephone, parking and any
other benefits, privileges o~ facilities.
B. "Site": Any area or tract of land or portion of a mobilJe
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home park designated or used for the occupancy of one mobile home.:
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c. "11obile Home Park": Any area or tract of land where twd
or ffiore ~obile home sites are rented or leased or held out fer
rent or lease to accommodate mobile homes used for human habita-
tion. The rental paid for any such mobile home shall be deemed
to include rental for the site it occupies.
D. "~obile Home Park Opera tor": An owner, lessor, sub-
lessor, including any person, firm, corporation, partnership, or
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August 17, 1987
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SEQUOIA MOBILE HOME COMMUNITY
BUILT BY SEQUOIA PACIFIC
OPENED 1972
PROMOTIONS
3 MONTHS FREE RENT - THEN
$500.00 BONUS TO MOVE IN - THEN
6 MONTHS FREE RENT - THEN
$1,000 ALLOWANCE - PATIO - LANDSCAPING, ETC. TO MOVE IN PLUS
3 MONTHS FREE RENT FOR EACH REFERRED TENANT.
PARK SOLD 1976 TO PRESENT OWNER - $1,000 TO NEW TENANTS CONTINUED
STARTING RENTS WERE $67.50 to $87.50 PER MONTH
TODAY RENTS PER SPACE AVERAGE $22L
NEW OWNER BROUGHT SEQUOIA FOR APPFOXlMATELY $1,000,000 AND FINANCED
$850,000 WITH GREAT WESTERN SAVING & LOAN
BY 1983 INCOME HAD BEEN INCREASED BY RENT RAISES TO CARRY A REFINANCE
WITH GREAT WESTERN OF $2,250.000
OWNER IS NOW ASKING $6,200,00 FOR SEQUOIA PARK
1986 GROSS INCOME BASED ON $222 AVERAGE RENT -
$644,688
195,274
$449,414
PER YEAR
1986 EXPENSES
APPROXIMATE NET INCOME
333.76 + % ON ORIGINAL $150,000 INVESTMENT IN 1986 ALONE
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ORDINANCE NO.
ORDINANCE OF THE CITY OF SAN BERNARDINO PROVIDING THAT
RENTS FOR MOBILE HOME SITES SHALL NOT EXCEED THOSE IN EFFECT ON
JULY 1, 1987, AND TEMPORARILY PROHIBITING RENTAL INCREASES
THEREFOR, AND DECLARING THE URGENCY THEREOF.
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
SECTION 1. PurDose. Pending further study of the
development and adoption of measures to address the problems
created by the present housing and mobile home site shortage, it
is necessary, on an interim basis, to prohibit rental increases
on mobile home sites within the City of San Bernardino.
SECTION 2. Definition of Terms. Unless it is apparent
from the context that another meaning is intended, the fo11ow~g
13 words and terms when used herein shall have the meaning ascribed
14 to them by this Section.
15 A. "Services": Services connected with the use or
16 occupancy of a mobile home site including, but not limited to,
17 repairs, replacement, maintenance, painting, light, heat, water,
18 refuse removal, sewage removal, furnishings, telephone, parking
19 and any other benefits, privileges or facilities.
20 B. "Site": Any area or tract of land or portion of a
21 mobile home park designated or used for the occupancy of one
22 mobile home.
23 C. "Mobile Home Park": Any area or tract of land where
24 two or more mobile home sites are rented or leased or held out
25 for rent or lease to accommodate mobile homes used for human
26 habitation. The rental paid for any such mobile home shall be
27 deemed to include rental for the site it occupies.
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D. nMobile Home Park Operatorn: An owner, lessor,
sublessor, including any persons, firm, corporation, partnership,
or other entity, entitled to receive rent for the use of any
mobile home site, or the agent, representative or successor of
any of the foregoing.
E. nMoratorium Period": The period of time beginning on
the effective date of this ordinance and continuing until
November 17, 1987, or until such time as the Mayor and Common
Council establish a procedure for the adjustment and/or
regulation of rents, whichever occurs first.
F. "Rent": The consideration, including any bonus,
benefits or gratuity demanded or received, for or in connection-
with the use or occupancy of a mobile home site or the transfer
14 of a lease for such a unit, including but not limited to monies
15 demanded or paid for parking, for furnishings, for services of
16 any kind, for subletting, or for security deposits for damage
17 and/or for cleaning.
18 G. nMobile Home Site Rental Units": All mobile home sites
19 in the City of San Bernardino designed for rental use or actually
20 rented at any time on or after July 1, 1987, and all services,
21 privileges, furnishings and facilities supplied in connection
22 with the use or occupancy thereof, including garage and parking
23 facilities. The term shall not include:
24 (1) mobile home sites in nonprofit cooperatives
25 owned and controlled by a majority of the residents;
26 (2) mobile home sites which a government unit, agency
27 or authority owns, operates, or manages or which are specifically
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exempted from municipal rent regulation by state or federal law
or administrative regulation7
(3) mobile home sites located in a mobile home park
completed or newly constructed after the effective date of this
ordinance.
H. "Tenant": A tenant, subtenant, lessee, sublessee or
any other person entitled to the use or occupancy of any mobile
home site rental unit.
I. "Average Per Unit Rehabilitation Cost": The cost of
rehabilitation to the mobile home park, or any portion thereof,
sufficient to bring the mobile home park into compliance with all
applicable City ordinances, divided by the total number of mobi~e
home sites in the mobile home park. The costs of rehabilitation
14 shall have been paid or incurred by the mobile home park operator
15 during the moratorium period or any extension thereof, for
16 rehabilitation work done during the moratorium period or
17 extension thereof.
18 J. "Average Per Unit Capital Improvement Cost":
19 The cost of a capital improvement, divided by the number of
20 mobile home sites in the mobile home park. A "capital
21 improvement cost" shall be the costs for improvements to the
22 mobile home park or any building or structure located within the
23 mobile home park, which improvements have a useful life of five
24 (5) years or more, and which costs have been paid or incurred by
25 the mobile home operator during the moratorium period or any
26 extension thereof for the capital improvement work done during
27 the moratorium period or extension thereof. This term shall not
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include expenditures for the purchase of land, an existing
building, or an interest in an existing building for the purpose
of increasing the number of mobile home sites in the mobile home
park; nor does it include expenditures necessary to keep or
maintain that level of services provided to the mobile home site
rental unit at its applicable rollback date.
SECTION 3. Rental Increase Moratorium
A. Beginning on the effective date of this ordinance and
continuing until November 17, 1987, or until such time as the
Mayor and Common Council establish a procedure for the adjustment
andlor regulation of rents, whichever occurs first, rents shall
be at the levels and shall not otherwise be increased except ~s
provided in subparagraph B below.
B. During the moratorium period, the maximum rent for a
mobile home site rental unit in the City of San Bernardino shall
be the following:
(1) For a mobile home site rental unit which is
rented as of July 1, 1987, and continues to be rented thereafter
to one or more of the tenants occupying such rental on July 1,
1987;
The rent shall not exceed that in effect on July 1,
1987. The level of services provided to the rental unit on that
date shall not be reduced during the moratorium period. No
notice to the tenant, whether given before or after July 1, 1987,
shall be effective to increase the rent during the moratorium
period.
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(2) For a mobile home site rental unit which is not
rented as of July 1, 1987, but is subsequently rented and
continued to be rented to one or more of the same tenants;
The rent shall not exceed that in effect on the date
the mobile home site rental unit is first rented after July 1.
The level of services provided to the rental unit on the rental
date shall not be reduced during the moratorium period.
(3) For a mobile home site rental unit voluntarily
vacated on or after July 1, 1987, and prior to the end of the
moratorium period:
If the vacancy was voluntary (i.e. not the result of
an eviction, whether for just cause or otherwise, or of mobile.
home park operator's refusal to renew a periodic tenancy or lease
agreement), then the rent may be increased upon the re-rental of
the mobile home site rental unit. So long as such unit continues
to be rented to one or more of the tenants first occupying the
mobile home site rental unit at the time of such re-rental, such
rent shall not exceed that in effect on the date the rental unit
is first re-rented, nor shall the level of services provided on
that re-rental date be reduced during the moratorium period.
(4) For mobile home site rental units vacated other
22 than voluntarily after July 1, 1987.
23 The rent for such mobile home site rental unit shall
24 not thereafter exceed the rent in effect immediately prior to
25 such involuntary vacation, unless the unit is subsequently
26 voluntarily vacated. The level of services provided prior to
27 such involuntary vacation shall not be reduced during the
28 moratorium period.
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1 (5) For a mobile home site rental unit which has
2 been found to be in violation of any then existing City
3 ordinance:
4 The rent shall not exceed that amount dictated by the
5 above subparagraphs (1) through (4), inclusively, plus the
6 average per unit rehabilitation cost amortized over not less than
7 a thirty-six (36) month period, which costs have been incurred by
8 the mobile home park operator during the moratorium period for
9 rehabilitation work done during the moratorium period for the
10 sole purpose of bringing the subject property into compliance
11 with City ordinances.
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12 (6) For a mobile home site rental unit. with respect
13 to which capital improvement costs are incurred:
14 The rent shall not exceed the amount dictated by the
15 above subparagraphs (1) through (5), inclusive, plus the average
16 per unit capital improvement cost amortized over a sixty (60)
17 month period.
18 C. Subparagraph (5) and subparagraph (6) of paragraph B
19 above shall not be applicable to any mobile home park unless the
20 mobile home park operator of such mobile home park has provided
21 the Community Development Department with written proof
22 satisfactory to that department that the cost of rehabilitation
23 work or capital improvement work was incurred during the
24 moratorium period and that the rehabilitation or capital
25 improvement work was completed during the moratorium period.
26 D. The Mobile Home Park Ad Hoc Committee is hereby
27 authorized to hear and decide the appeal of any action taken by
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1 any official of the City of San Bernardino pursuant to the
2 authority of this ordinance except the commencement of criminal
3 prosecution and to hear appeals related to the interpretation of
4 any provision hereof. An appeal of any decision of the Mobile
5 Home Park Ad Hoc Committee may thereafter be had to the Mayor and
6 Common Council in accordance with the provisions of Chapter 2.64
7 of the San Bernardino Municipal Code.
8 SECTION 4. Violation of Ordinance.
9 (A) It shall be unlawful for any mobile home park operator
10 to demand, accept, receive or retain any payment of rent in
II excess of the maximum lawful rents set forth in this ordinance.
12 Any person violating any of the provisions, or failing to comp1y
13 with any of the requirements of this ordinance, shall be guilty
14 of a misdemeanor. Any person convicted of a misdemeanor under
15 the provisions of this ordinance shall be punishable by a fine of
16 not more than One Thousand Dollars ($1,000) or by imprisonment in
17 the County Jail for a period of not more than six months, or by
18 both. Each violation of any provision of this ordinance, and
19 each day during which any such violation is committed, permitted,
20 or continued, shall constitute a separate offense.
21 (B) The Community Development Department is hereby
22 authorized to commence actions for violations of the provisions
23 of this ordinance through the filing of long form complaints with
24 the office of the City Attorney.
25 SECTION 5. Refusal of a Tenant to Pay a Rent Increase. A
26 tenant may refuse to pay any increase in rent which is in
27 violation of this ordinance and such violation shall be a defense
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1 in any action brought to recover possession of a mobile home site
2 rental unit or to collect the illegally charged rent increase.
3 SECTION 6. Severability. If any provision or clause of
4 this ordinance or the application thereof to any person or
5 circumstance is held to be unconstitutional or to be otherwise
6 invalid by any court of competent jurisdiction, such invalidity
7 shall not affect other ordinance provisions or clauses or
8 applications thereof which can be implemented without the invalid
9 provision or clause or application, and to this end the
10 provisions and clauses of this ordinance are declared to be
11 severable.
12 SECTION 7. Uraencv. This ordinance is an urgency measdre
13 necessary for the immediate preservation of the public peace,
14 health or safety and shall go into effect immediately upon its
15 adoption and approval. The facts constituting such urgency are:
16 A. In recent months there has been an increasing concern
17 on the part of public officials and residents of the City of San
18 Bernardino regarding exorbitant rent increases in mobile home
19 sites in this City.
20 B. There is a growing shortage of decent, safe, sanitary
21 mobile home sites resulting in a critically low vacancy rate,
22 rising exorbitant rents, and stringent conditions of site
23 occupancies exploiting this shortage; that this condition is
24 having a detrimental effect on the lives of a substantial number
25 of the San Bernardino residents who reside in mobile homes and is
26 endangering the health and welfare of such residents, especially
27 creating hardships on senior citizens, persons on fixed incomes,
28 and persons of low income.
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1 C. The cost of relocation of a mobile home is exorbitant,
2 amounting to thousands of dollars.
3 D. Many mobile home parks will not rent a mobile home site
4 unless the site will be occupied by a new mobile home.
-5 E. The Mayor and Common Council continue to receive
6 reports of rent increases, particularly relating to mobile homes,
7 which may lead to the displacement of many mobile home tenants.
8 F. The Mayor and Common Council find that immediate action
9 is required to preserve the status quo by imposing a temporary
10 moratorium on rent increases for mobile home sites, pending
11 consideration of the feasibility and desirability of any further
12 measures.
13 I HEREBY CERTIFY that the foregoing ordinance was duly
14 adopted by the Mayor and Common Council of the City of San
15 Bernardino at a meeting thereof, held on
16 the day of , 1987, by the following
17 vote, to wit:
18 AYES:
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Council Members
NAYS:
ABSENT:
City Clerk
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The foregoing ordinance is hereby approved this day
, 1987.
of
Approved as to form
and legal content:
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( City Attorney
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Mayor of the City of San Bernardino
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