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Home My WebLink About56- Community Development CIT _ OF SAN BERNARDL 3 - REQUE T FOR COUNCIL AC` ON CONSIDER ADOPTION OF ORDINANCE From: Kenneth J. Henderson, DirectJo D. ;RELATING TO THE ESTABLISHMENT OF A RENT REVIEW COMMISSION, Dept: Community Development F[J "' MANDATORY INTRA-PARK DISPUTE RESOLUTION PROCESS AND RELATED Date: February 24, 1988 PROCEDURES. Synopsis of Previous Council action: The Mayor and Common Council has previously discussed the issue of rent stabilization, established a Citizen Mobilehome Park Fact-Finding Committee and adopted Ordinance Number 3805 establishing a moratorium on rents to be charged to mobilehome park tenants residing in the City. On September 7, 1987 , the Mayor and Common Council directed staff to prepare a Mobilehome Park Survey RFP and report back to Council on September 21, 1987. On September 21, 1987, the Mayor and Common Council authorized the issuance of a Mobilehome Park Survey RFP and directed staff to expedite the proposal review and evaluation process. (SYNOPSIS CONTINUED TO NEXT PAGE. . . ) Recommended motion: That the Mayor and Common Council consider the proposed ordinance establishing a Rent Review Commission, limiting mobilehome park space rent increases, requiring a mandatory Intra-Park Dispute Resolution process and related policies and procedures as recommended by the Mobilehome Park Ad Hoc Committee. (U,, A Signature Contact person: Ken Henderson/Maurice Oliva Phone: 5065 Supporting data attached: Staff Report Ward: 1-7 FUNDING REQUIREMENTS: Amount: N/A C . . N/A Source: (ACT N0 ) (ACCT. DESCRIPTION) Finance: Council Notes: SYNOPSIS OF PREVIOUS COUNCIL ACTION CONTINUED. . . On November 2, 1987, the Mayor and Common Council selected Connerly and Associates, Inc. , as consultant to conduct the mobilehome park survey and continued approval of the agreement to November 4 , 1987 . On November 4 , 1987, the Mayor and Common Council adopted a resolution authorizing the execution of an agreement with Connerly and Associates, Inc. On December 21, 1987, the Mayor and Common Council received and filed the status report regarding the mobilehome park survey and directed staff to take appropriate action. On January 19, 1988, the Mayor and Common Council adjourned its regular meeting to January 25, 1988 at 5: 00 p.m. , to consider the mobilehome park survey and recommendations submitted by Connerly and Associates, Inc. On January 25, 1988, the Mayor and Common Council referred the recommendations outlined in the report from Connerly and Associates to the Mobilehome Ad Hoc Committee for the development of an implementation plan and revised ordinance to be presented to the Mayor and Common Council on March 7, 1988. On February 1, 1988, the Mayor and Common Council adopted Ordinance Number MC-619 with an expiration date of March 21, 1988 that temporarily prohibits rental increases beyond a maximum of four point four percent (4.4$) . 2-24-88 2 C11r. OF SAN BERNARDIL_J - REOUE,_ r FOR COUNCIL ACI -.)N STAFF REPORT On January 25, 1988, Connerly and Associates, Inc. , made an oral presentation to the Mayor and Common Council regarding the findings of the mobilehome park survey commissioned by the City. The consul- tant also presented recommendations which included a four (4) point recommended program. The Mayor and Common Council referred the recommendations outlined in the report to the Mobilehome Ad Hoc Committee for further review and development of an implementation plan to be considered by the Mayor and Common Council on March 7 , 1988. Later, on February 1, 1988, the Mayor and Common Council adopted Ordinance Number MC-619 with an expiration date of March 21, 1988, that temporarily prohibits rental increases beyond a maximum of four point four percent (4 .4%) . The first recommendation of a four (4) point program recommended by Connerly and Associates, Inc. , was "an in-park dispute resolution process which would work voluntarily between residents and owners" . Pursuant to the direction of the Mobilehome Park Ad Hoc Committee the attached proposed ordinance makes the Intra-Park Dispute Resolution process mandatory and requires that the primary level of communication between the residents and park owners exist at the park level. The legislative intent is that all problems, disputes, extraordinary rent increase considerations and pass-throughs affecting an individual park shall be resolved at the park level . The second recommendation by the consultant was "a rent mediation board to which unresolved disputes could be appealed" . The attached Ordinance establishes the creation of a Mobilehome Rent Review Commission in the City of San Bernardino. Said Commission shall consist of five (5) regular members appointed by the Common Council . Said Ordinance, among other things, gives the Commission the following powers: a) To meet upon the filing of a petition after failure of rent mediation under the Intra-Park Resolution process. b) To receive, investigate, hold hearings on and pass the petitions set forth in said Ordinance. c) To conduct hearings or investigations as appropriate to obtain information necessary to carry out their duties. d) To adjust maximum rents either upward or downward upon completion of appropriate hearings and investigations. e) To enforce and recognize agreements arrived at between homeowners and mobilehome park owners where agreements duly executed by representatives of the parties contains provisions permitting enforcement by the Commission. Said Ordinance delineates an implementation process for the Commission to carry out its powers described in same. An administrative fee, set by this Ordinance, shall be chargeable to 2-24-88 3 75-0264 .. a a homeowners and the mobi'.L ome park owns ., in the amount of $750.00 each, for each hearing of a dispute between the parties by the Commission. Under the Ordinance no more than one (1) increase in space rent shall be allowed in any twelve (12) month period. "Rent Increase" as defined in said Ordinance, means an increase in rent over and above one-hundred percent (100%) of the Consumer Price Index for all Urban Consumers (CPI-U) published for the Los Angeles Long Beach Anaheim area. Only annual space rent adjustments which are rent increases, as defined in the Ordinance, shall be subject to review, mediation and/or hearing process by the established Mobilehome Rent Review Commission. The third recommendation by Connerly and Associates, Inc. , was "a financial and technical assistance program using state, county and city resources to assist residents who wish to purchase their parks" , and the fourth and last recommendation by the consultant was "a financial assistance program for very low income residents who pay more than thirty percent (30%) of their income for housing" . It should be noted that the proposed Ordinance is silent on both of these recommendations. The Mobilehome Park Ad Hoc Committee recommends that the City provide only a technical (not financial) assistance program to residents wishing to purchase their parks by making an application for state funds on their behalf. However, the City should only assist after all the mobilehome owners in any one park and the mobilehome park owner have agreed to the purchase/sale. Representatives of the mobilehome park owners have indicated at prior Mobilehome Ad Hoc Committee meetings that park owners are not inclined to participate financially in a rental assistance program for income deficient tenants, if the proposed Ordinance is adopted. A rental assistance plan should be limited to those most financially distressed cases. The consultant recommends an assistance program for very low income (fifty percent (50%) or below of the median income for Riverside, San Bernardino Counties) who pay more than fifty percent (50%) of their income for housing should be given priority consideration for rent subsidies, if a rental assistance program is eventually adopted. Those households paying thirty to forty-nine percent of their income to housing-related expenses will receive consideration after the first group is asisted. If the Mayor and Common Council wish to adopt a financial assistance program for very low income mobilehome park residents, staff should be directed to develop a program implementation plan and to identify a funding source for providing such assistance. The proposed ordinance as recommended by the Mobilehome Ad Hoc Committee is submitted for consideration by the Mayor and Common Council. Lit , Kenneth J. He derson Director of Community Development KJH/MLO/lab/0779 2-24-88 4 COUNCIL ACTION CORRESPONDENCE To Kenneth J. Henderson, Director Subject Report from Connerly and Community Development Associates, Inc. , Regarding Mobile Home Park Survey and Date January 27, 1988 Recommendations Meeting Date Janaury 25, 1988 Agenda Item No. 9 Action The Council. agreed in concept with the four-point program recommended by the consultant that conducted the Mobile Home Park Study. The recommendations of the consultant were referred to the Mobile Home Ad Hoc Committee for an implementation plan to be presented to the Mayor and Common Council on March 7, 1988. The ordinance on space rental increases was referred back to the City Attorney for revisions which would change the effective date and would allow a rent increase not to exceed the Consumer Price Index of December 1, 1987, (4.4%) . The proposed ordinance is to contain an expiration date of March 21, 1988, and a provision that rental increases beyond the maximum 4.4% are disallowed without the approval of the Mayor and Council. SC:re cc: Mayor City Attorney SHAUNA CLARK City Administrator city clerk Council Office