Loading...
HomeMy WebLinkAboutMC-1432 Adopted: November 23, 2016 Effective: December 23, 20�RDINANCE NO. MC-1432 1 AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 2 SAN BERNARDINO AMENDING CHAPTER 8.90 RELATED TO MOBILE HOME RENTS 3 WHEREAS, the City of San Bernardino contains approximately 48 mobile home 4 parks; and, 5 WHEREAS, on or about March 22, 1993, the City of San Bernardino enacted rent 6 control for all mobile home parks within the city limits pursuant to Ordinance No. MC-865; and, 7 8 WHEREAS, on about February 13, 2009, several non-profit corporations requested rent increases at Glen Aire, Pacific Palms, Hillside Estates and Orangewood 9 (collectively referred to as "the non-profit parks"). Those rent increases were scheduled to be effective on or about May 19, 2009; and, 10 11 WHEREAS, the City appointed the Honorable Donald P. Cole ("Judge Cole") of the California Office of Administrative Hearings as its hearing officer with respect to the 12 February 13, 2009 rent increases requested by the non-profit corporations. Evidentiary hearings were conducted by Judge Cole on or about November 2, 2010, 13 November 3, 2010 and November 16, 2010; and, 14 WHEREAS, on or about June 1, 2011, Judge Cole issued his decision, recommending 15 rent increases at the non-profit parks; and, 16 WHEREAS, on or about July 20, 2011 the Mobile Home Rent Board ("the Board") 17 commenced hearings regarding the rent increases recommended by Judge Cole. On or about October 26, 2011, the Board voted to reduce the rent increases 18 recommended by Judge Cole; and, 19 WHEREAS, on or about December 5, 2011, the non-profit corporations filed a 20 petition for a writ of administrative mandamus with the San Bernardino County Superior Court. The non-profit corporations contend that the Board's reduction of 21 the rent increases recommended by Judge Cole is neither supported by the law nor the evidence; and, 22 23 WHEREAS, on or about May 1, 2012, the San Bernardino County Superior Court issued an order allowing the four nonprofits to begin collecting the rent increases 24 awarded by the Board, beginning on June 1, 2012; and, 25 WHEREAS, the non-profit corporations contend that if they are allowed to collect 26 the full amount awarded by Judge Cole, effective from May 19, 2009, the tenants' liability through May 31, 2012, would total at least $1,001,861.64; and, 27 28 I WHEREAS, the non-profit corporations contend that after accounting for the 2 amounts they have been allowed to collect since the Superior Court's May 1, 2012 order, they are entitled to collect at least another $13,864.39 per month from the 3 tenants since June 1, 2012, not including interest. The non-profit corporations contend that they are entitled to at least an additional $693,219.50 since May 1, 4 2012. 5 WHEREAS, the City denies that the Board's decision was contrary to law or 6 contrary to the facts, or that the non-profit corporations have been damaged in any amount whatsoever; and, 7 8 WHEREAS, the City, non-profit corporations, and tenant representatives have acknowledged that final resolution of the issues arising out of the February 13, 2009 9 rent increase applications may result in years of additional litigation. Rather than proceeding with costly and time consuming litigation, the parties decided to settle 10 any and all disputes between them arising out of the February 13, 2009 rent 11 increase applications, including any and all issues raised in the Superior Court Proceedings; and, 12 WHEREAS, the settlement is contingent upon the Mayor and Common Council 13 considering and adopting this Ordinance at a public meeting. 14 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF 15 SAN BERNARDINO DO ORDAIN AS FOLLOWS: 16 SECTION 1.The Mayor and Common Council hereby adopt the recitals and findings 17 set forth above. 18 SECTION 3.Section 8.90.050 of the San Bernardino Municipal Code is hereby 19 repealed in its entirety and replaced with the following: 20 8.90.050 Exemptions from Coverage. 21 The provisions of this Ordinance shall not apply to the following' 22 A. New Space or First Time Space Exemption - Space rent or space rent 23 adjustments for new mobile home spaces first rented after the effective date of this Chapter shall be exempt from the provisions of the Chapter to the extent 24 that those rents would have been controlled had the spaces been previously occupied. There shall be no prospective exemption in such circumstances, 25 however, as to rents that may be adjusted annually under this Chapter after a 26 space is first rented. In such cases, the base date for purposes of determining permissible future rent adjustments shall be the date of first rental or 27 conveyance. 28 2 1 2 B. Vacancies 3 1. If the mobile home space is voluntarily vacated by the tenant, or vacated pursuant to California Civil Code Section 798.56, the landlord may adjust 4 the rental rate to any amount as provided in Subsection A of this Section 5 8.90.050. 6 2. If the mobile home is sold and is to remain on site, the landlord may increase the rental rate for the new resident by an amount not to exceed 7 ten percent (10%) of the then existing rent. Any rent increase pursuant to 8 this Subsection B2 shall be implemented at the time the new resident first occupies the space and/or first enters into a rental agreement with the 9 landlord. 10 3. The implementation of any rent increase allowed under this Subsection B shall not change the anniversary date for the annual permissive 11 inflationary adjustment to rent allowed under Section 8.90.100(A) of this 12 Chapter. 13 4. A vacancy is voluntary if the tenant voluntarily and without coercion by the landlord vacates the rental space or, if the tenant dies and there is no 14 surviving cohabitant. 15 5. Where the rent is increased pursuant to this Subsection B, the landlord 16 shall, at the time the rent increase is implemented, provide the new tenant with written notice of the previous base rent for the space, the new base 17 rent for the space in both dollar and percentage terms, and the anniversary date for the space for purposes of the annual permissive 18 inflationary adjustment to rent allowed under Section 8.90.100(A) of this 19 Chapter. 20 6. The rent increases allowed under this Subsection B shall be in addition to any other rent increases authorized by this Chapter, including but not 21 limited to the annual permissive inflationary adjustment to rent allowed 22 under Section 8.90.100(A) of this Chapter. 23 7. Notwithstanding anything herein to the contrary, nothing in this Chapter shall preclude any landlord from implementing any rent increases that are 24 exempt under the provisions of the California Mobile Home Residency Law, including any rent increases that are exempt under Civil Code 25 Sections 798.17, 798.41 and/or 798.49. 26 27 28 3 1 2 SECTION 4. FUTURE AMENDMENTS TO SECTION 8.90.050 3 The Mayor and Common Council reserve the right and authority to amend or repeal the ordinance without any restrictions, however, do acknowledge that such 4 amendment or repeal may create a contractual obligation to the non-profit 5 corporations under the settlement agreement. 6 SECTION 6. EFFECTIVE DATE. 7 This Ordinance shall be in full force and effect on the thirty-first day after adoption. 8 SECTION 8.SEVERABILITY. 9 If any provision of this Ordinance or the application thereof to any person or 10 circumstance is held invalid, such invalidity shall not affect other provisions or 11 applications of the Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. The 12 Mayor and Common Council of the City of San Bernardino hereby declare that they would have adopted this Ordinance irrespective of the invalidity of any particular 13 portion thereof. 14 SECTION 9.CEQA. 15 The Mayor and Common Council of the City of San Bernardino hereby find and 16 determine that this Ordinance is not subject to environmental review under the 17 California Environmental Quality Act (CEQA) pursuant to Title 14 of the California Code of Regulations Section 15060(c)(2) (the activity will not result in a direct or 18 reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in Section 15378) because it has 19 no potential for resulting in physical change of the environment, directly or 20 indirectly. 21 /// 22 /// 23 24 25 26 /// 27 28 4 I AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 2 SAN BERNARDINO AMENDING CHAPTER 8.90 RELATED TO MOBILE HOME RENTS 3 4 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and Common Council of the City of San Bernardino at a joint regular meeting 5 thereof, held on the 21stday of November , 2016, by the following vote, to wit: 6 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 7 MARQUEZ x 8 BARRIOS x 9 VALDIVIA x 10 SHORETT x 11 NICKEL x 12 RICHARD 13 MULVIHILL _ 14 15 Georgean anna, t Clerk 16 �© The foregoing Ordinance is hereby approved this,,?!-Z- day of November , 2016. 17 " :Z� 18 R. Carey Dav' , Mayor 19 City of San Bernardino 20 Approved as to form: Gary D. Saenz, City Attorney 21 22 By: 23 24 25 26 27 28 5