HomeMy WebLinkAboutMC-14811 ORDINANCE NO. MC -1481
2 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
3 BERNARDINO, CALIFORNIA, AMENDING SAN BERNARDINO MUNICIPAL
CODE CHAPTER 8.90 (MOBILE HOME RENTS) DISSOLVING THE MOBILE
4 HOME RENT BOARD AND DELEGATING RESPONSIBILITY FOR THE REVIEW
OF MOBILE HOME PARK RENT INCREASE REQUESTS TO AN INDEPENDENT
5 HEARING OFFICER
6 WHEREAS, the People of the City of San Bernardino adopted a new Charter at the
7 November 8, 2016 municipal election; and
8 WHEREAS, the new Charter was filed with the California Secretary of State on
9 January 31, 2017 and became effective on that date; and
10 WHEREAS, the City Council in implementing the new Charter provisions has
evaluated the community's need for various committees and commissions and desires to
11 eliminate some bodies (Charter Section 600) and consolidate others to increase efficiency and
12 preserve scarce resources; and
13 WHEREAS, the City Council has determined that the implementation of the Mobile
Home Rents Chapter (Chapter 8.90), would be more streamlined and responsive if it were to
14 be effectuated through an administrative process instead of a Board; and
15 WHEREAS, City Council desires to amend Chapter 8.90 to effectuate an
16 administrative process and otherwise make the Chapter consistent with the new Charter.
17 NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO DO ORDAIN AS FOLLOWS:
18
19 SECTION 1. Chapter 8.90 of the San Bernardino Municipal Code is hereby
amended to read in its entirety as follows:
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8.90.010 Title
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22 This Chapter may be cited as the Mobile Home Park Rent Stabilization
Ordinance of the City of San Bernardino, California.
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8.90.020 Statement of purpose
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25 A. Mobile home owners have a substantial investment in their residences and
appurtenances for which space is rented or leased. Alternate sites for relocation
26 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
27 related to the installation of mobile homes, including pennits, landscaping and
28 site preparation. Additionally, the cost of moving a mobile home is substantial,
and the risk of damage in moving is significant.
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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 citizens, persons on fixed
income and persons of low or moderate income, exorbitant rent adjustments fall
upon these individuals with particular harshness. The continuing possibility of
unreasonable space rental adjustments in mobile home parks threatens to
diminish the value of the investment of the mobile home owners. Further,
existing state law permits mobile home park owners to require mobile home
owners to make modifications to their homes for reasons of aesthetics or
confonnity to park standards that amount to capital improvements which would
accrue to the benefit of the park owner by potentially increasing the market value
of the park itself.
C. This Council finds and declares it necessary to facilitate and encourage fair
bargaining between mobile home owners and park owners in order to achieve
mutually satisfactory agreements regarding space rental rates in mobile home
parks. Absent such agreements, this Council further finds and declares it
necessary to protect the owners and residents of mobile homes from
unreasonable space rental adjustments while simultaneously recognizing and
providing for the need of park owners to receive a just and reasonable return on
their property.
8.90.030 Application
The provisions of this Chapter shall apply to all mobile home residential rental
spaces located within the City of San Bernardino except if otherwise exempt from the
provisions of this Title, as such exemptions are provided for hereinafter. Nothing in
this Chapter shall be deemed to supersede any provision of California Civil Code
Section 798, et seq.
8.90.040 Definitions
In construing the provisions of this Chapter, the following definitions shall apply:
A. "City Manager" means the City Manager or his or her designee.
B. "Consumer Price Index" or "C.P.I." means the Index known as the "Consumer
Price Index for all Urban Wage Consumers: for the Los Angeles - Long Beach —
Anaheim Area," (base year, 1967), and if published for the San Bernardino —
Riverside -Ontario Area for the year 1984, and thereafter. These documents are
published by the United States Department of Labor Bureau of Labor Statistics.
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C. "Hearing Officer" is an individual appointed by the Mayor and City Council to
hear matters on which testimony may be taken.
D. "Landlord" means any owner, lessor, operator or manager of a mobile home
park.
E. "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 home does not include "recreational vehicle" as defined in
Section 799.29 of the Civil Code or a "commercial modular" as defined in
Section 18218 of the Health and Safety Code.
F. "Mobile Home Owner" or "Resident" means any person entitled to occupy a
mobile home dwelling space pursuant to ownership thereof or a rental or lease
agreement with the owner thereof.
G. "Mobile Home Park Owner" or "Park Owner" means the owner, lessor, operator,
manager or designated agent thereof of a mobile home park; sometimes referred
to as "owner."
H. "Mobile Home 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.
I. "Rent" means the consideration, including any bonus, benefit or gratuity,
demanded or received by a landlord for the use and occupancy, including
services and amenities, of a residential rental space.
"Rent Adjustments" means any rent increase or decrease demanded of or paid by
a tenant, including any reduction in housing services without a corresponding
reduction in the monies demanded or paid for rent.
K. "Rental Agreement" means an agreement between a mobile home park owner
and tenant establishing the terns and conditions of a tenancy in a mobile home
park. A lease is a rental agreement.
L. "Residential rental space" means any mobile home space occupied by any person
other than the owner of the park for payment of rent pursuant to an oral or
written lease, or other form of rental agreement.
M. "Space Rent" means the consideration, including any bonuses, benefits, or
gratuities demanded or received for and in connection with the use or occupancy
of a mobile home space within a mobile home park, or for housing services
provided and security deposits, but exclusive of any amounts paid for the use of
the mobile home as a dwelling unit. The use or occupancy of a mobile home
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space shall include the exercise of all rights and privileges and the use of
facilities, services and amenities accruing to the residents thereof.
"Space Rent" shall not include any separately billed utility fees and charges for
natural gas or liquid propane gas, electricity, water, cable television, garbage or
refuse service and sewer service.
N. "Tenancy" means the right of a tenant to the use of a mobile home site within a
mobile home park on which to locate, maintain, and occupy a mobile home, site
improvements and accessory structures; for human habitation, including the use
of the services and facilities of the mobile home park.
0. "Tenant" means any person entitled to or proposing to occupy such mobile home
space pursuant to an oral or written lease with the owner thereof, or pursuant to
some other rental agreement with the owner, lessor, operator or manager thereof.
P. "Vacancy" means the condition deemed to have occurred upon the removal of
any mobile home from a mobile home park.
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 or space rent
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 that
those rents would have been controlled had the spaces been previously occupied.
There shall be no prospective exemption in such circumstances, however, as to
rents that may be adjusted annually under this Chapter after a space is first
rented. In such cases, the base date for purposes of detennining permissible
future rent adjustments shall be the date of first rental or conveyance.
B. Vacancies
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 the
rental rate to any amount as provided in Subsection A of this Section 8.90.050.
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 ten percent (10%) of
the then existing rent. Any rent increase pursuant to 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 landlord.
The implementation of any rent increase allowed under this Subsection B shall
not change the anniversary date for the annual permissive inflationary adjustment
to rent allowed under Section 8.90.100(A) of this Chapter.
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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 surviving
cohabitant.
Where the rent is increased pursuant to this Subsection B, the landlord 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 rent for the space in
both dollar and percentage terms, and the anniversary date for the space for
purposes of the annual pennissive inflationary adjustment to rent allowed under
Section 8.90.100(A) of this Chapter.
The rent increases allowed under this Subsection B shall be in addition to any
other rent increases authorized by this Chapter, including but not limited to the
annual pennissive inflationary adjustment to rent allowed under Section
8.90.100(A) of this Chapter.
Notwithstanding anything herein to the contrary, nothing in this Chapter shall
preclude any landlord from implementing any rent increases that are exempt
under the provisions of the California Mobile Home Residency Law, including
any rent increases that are exempt under Civil Code Sections 798.17, 798.41
and/or 798.49.
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 City Manager.
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 Chapter; 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 City Manager is hereby empowered to establish procedures for requiring
such re -registration as he/she deems necessary.
No park owner shall be eligible to receive any rent ceiling adjustment as
provided for under the provisions of this Chapter unless such current registration as
may then be required for the mobile home park is on file with the City Manager at the
time the petition for the rent ceiling adjustment is filed.
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The registration and re -registration requirement provided for in this section, or
which may be hereafter established by the City Manager, 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.
8.90.080 Space rent ceiling or maximum allowable space rent
Beginning the first month which commences following the day after the effective
date of this Chapter when originally adopted on March 24`x', 1993, 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 Chapter 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.
8.90.090 Space rent ceiling adjustment - initial adjustment
A. No adjustment in space rent ceilings shall be pennitted except as provided 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
adjustment 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 then dividing this remainder by the December, 1989 CPI.
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. Pennissive Adjustment - A park owner shall be entitled to an annual pennissive
adjustment of gross space rental income equal to eighty percent (80%) of the
percentage adjustment in the CPI from the date of the most recent initial or
annual adjustment to the date of application for the proposed adjustment.
B. Net Operating Income Adjustment
C
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In the event a park owner believes he or she does not receive a just and
reasonable return on park property after receiving the maximum permissive
adjustment provided for above, said park owner may upon payment of a
filing fee established by resolution of the Mayor and City Council, file an
application with the City Manager for an adjustment of the space rent
ceiling, providing adequate justification for the proposed increase.
2. If the City Manager shall designate a form for the filing of such petition,
such petition shall be filed upon such form. If no such form shall be
designated, such petition shall be in writing verified by the applicant, and
shall contain the naives, address and telephone number of the applicant, the
name and address of the tenant of each rental space which would be
affected if the petition were granted, a statement of the facts giving rise to
the petition for a Net Operating Income (NOI) adjustment in sufficient
detail that if established, such facts would demonstrate the existence of a
decrease in the NOI warranting such NOI adjustment. Within thirty (30)
working days after the petition has been submitted to the City Manager 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 space which would be affected by the NOI
adjustment if granted. When a declaration of service has been submitted to
the City Manager, the petition for an NOI adjustment shall be deemed filed.
3. A park owner shall be entitled to an adjustment of the space rent ceiling so
as to enable the park owner's Net Operating Income (NOI) for the
subsequent year to be increased by a rate which, when added to the
maximum permissible adjustment provided for above will give the park
owner a just and reasonable return on park property.
C. Special Assessment Based on Capital Improvements.
An application for a special assessment based on the cost of a completed
capital improvement may be filed with the City Manager pursuant to this
subsection. For the purposes of this subsection "Capital Improvement" is
defined as the installation of new improvements and facilities and/or the
replacement or reconstruction of existing improvements and facilities
which consist of more than ordinary maintenance or repairs, with a useful
life of at least five (5) years, and have been agreed upon between the park
owner, the resident committee, if any, and approved by more than 50
percent of the owners of all mobile -homes located within the park in an
election called to consider the matter with each space casting one vote.
2. A special assessment may be granted at the discretion of the Hearing
Officer considering all circumstances without approval of the homeowners
if the capital improvement is necessary to protect the health and safety of
the residents of the park, or to comply with governmental laws or
regulations.
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Capital Improvement Assessments shall be amortized over the useful life of
the improvement as set forth in Internal Revenue Service "class life" tables
then in effect, unless the Hearing Officer in his/her discretion determines
that the use of such tables is unreasonable under the circumstances.
4. In addition to the cost of the improvements(s) the Assessment shall include
interest at two percent over the prime rate at Bank of America in effect at
the time the assessment is approved calculated annually on the unamortized
cost of improvement.
5. Capital Improvement Assessments shall be apportioned equally among all
spaces in the mobile -home park and shall be payable monthly, and shall be
set forth by the park owner as a separate item from the space rent. The
Assessment shall remain in effect until the cost of the improvement, plus
interest as set forth herein, has been fully recovered.
D. No annual adjustment shall become effective if the previous annual adjustment
became effective within the previous twelve (12) months unless approved by the
Hearing Officer pursuant to Section 8.90. 100 B.
8.90.105 Required Certification on Rental Adjustment Notice
The Hearing Officer shall have the right to deny any rent adjustments under this
Chapter if the owner:
A. Has failed to comply with any provisions of this Chapter and/or regulations
issued thereunder by the City Manager or the Mayor and City Council or any
other federal, state or City law, ordinance or regulation concerning mobile home
parks.
B. Has failed to comply substantially with any applicable state or local housing,
health or safety law.
8.90.110 Powers and Duties of the City Manager
The City Manager shall administer and carry out to the fullest extent possible the
expressed intent and purposes of this Chapter. The City Manager shall have the
following duties, responsibilities, and functions, together with all powers reasonably
incidental thereto:
A. Adoption of Rules and Regulations. Subject to the approval of the Mayor and
City Council the City Manager may snake and adopt her/his own administrative
rules and regulations as may be necessary to effectuate the purposes and policies
of this Chapter and to enable the City Manager to carry out his/her powers and
duties thereunder, so long as such rules and regulations are consistent with the
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laws of the State, this Chapter, and any guidelines adopted by the Mayor and
City Council. Any such rules and regulations shall be reduced to writing and be
on file with the City Manager at all times.
B. Maintenance of Records. The City Manager shall keep a record of the hearing
proceedings, which shall be open for inspection by any member of the public.
C. Conduct Studies and Investigations. The City Manager shall have the power to
make such studies, surveys, and investigations, and obtain such information as is
necessary to carry out her/his powers and duties.
D. Require Registration. The City Manager shall require such registration of mobile
home parks as the City Manager may deem necessary to carry out his/her duties.
E. Evaluation. The City Manager shall render at least semi-annually a
comprehensive written report to the Mayor and City Council concerning the
activities, holdings, actions, results of hearings, and all other matters pertinent to
this Chapter.
F. Related Duties. The City Manager shall undertake such other related duties as
may be assigned by the Mayor and City Council.
8.90.120 Petition by tenant
A. Any tenant of a mobile home rental space affected by this Chapter, upon
payment of such filing fee as shall be duly established, may petition the City for
a determination whether a proposed or actual action by the landlord of such
tenant is legal, valid, and within the terms of this Chapter. If the City Manager
shall establish fonns for such petitions, the petition shall be prepared and
submitted upon such fon-n. In the absence of such designated form, the petition
shall contain the name, address and telephone number, if known, of the landlord,
owner, manager, or other person authorized to represent the owner of the mobile
home park, a brief statement of the facts giving rise to the request for
interpretation or determination, and a statement that a copy of the petition has
been personally served or mailed to the owner, manager or other person
authorized to accept and receive notices to the landlord.
B. In the event that a petition by tenant(s) results in a downward adjustment in the
space rent, the park owner shall not be obligated to adjust any rent except the
rent of those tenant(s) who signed the petition and paid the established filing fee.
8.90.130 Petition by landlord
Any landlord of a mobile home park affected by this Chapter may, upon,
payment of such filing fee as shall be duly established, petition the City for a
determination whether a particular course of action by said landlord is allowable, valid
and in conformity with this Chapter. The City Manager may designate forms for the
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filing of such petitions. In the event that no such form has been designated, the petition
shall be in writing, 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 such tenant who might be affected thereby.
8.90.140 Conduct of Proceedings
A. The Mayor and City Council shall appoint a Hearing Officer to hear matters
pertaining to San Bernardino Municipal Code Chapter 8.90.
B. 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 said party.
C. Fon-nal rules of evidence shall not apply in proceedings; however, all oral
testimony offered as evidence shall be under oath.
D. In the event that any party shall fail to appear at the time and place set for
hearing of a petition, the Hearing Officer may hear and review such evidence as
may be presented, and may make such findings and decisions as shall be
supported by the evidence presented.
E. The Hearing Officer shall base his/her decision on evidence presented at the
hearing and may consider any evidence resulting from independent
investigations of the City Manager pursuant to §8.90.110. 4 of this Chapter,
where such evidence has been disclosed to the parties.
F. The Hearing Officer shall make findings based on the evidence as to each fact
relevant to the Hearing Officer's decision on the petition. The decision of the
Hearing Officer shall be based upon the findings, and shall:
Determine whether the action or proposed action of a landlord is valid,
permitted, and in conformity with this Chapter; and/or
2. Detennine whether an adjustment is necessary, and if so, the nature and
amount of relief to be granted or authorized to the landlord or homeowner.
G. The Hearing Officer shall consider the evidence and arguments of the parties no
later than thirty (30) days after the matter has been submitted for decision and the
Hearing Officer shall snake her/his final decision at the conclusion of their
deliberations. No rent adjustment will be authorized unless supported by the
evidence. A notice of the Hearing Officer's decision shall be sent to each party to
a proceeding. Unless good cause to the contrary shall appear, each decision of
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the Hearing Officer shall apply on a space by space basis, taking into account the
possibility of differences in base rent, services provided, and other facts
differentiating rental spaces.
H. Nothing in this Chapter, or in any decision of the Hearing Officer, shall require
any landlord to raise rents or charges to tenants. If an adjustment in the
maximum permissible rent is authorized, a landlord may raise rents or charges by
a lesser amount, or for a lesser time than is authorized by the decision of the
Hearing Officer.
The findings and decisions of the Hearing Officer shall be a final administrative
action. There shall be no right of appeal to the Mayor and City Council. Such
findings and decisions shall be public records, and may be certified by the City
Clerk. Each decision shall set forth a notice as required by California
Government Code Section 1094.6. The decision shall become effective upon
mailing to the party unless otherwise indicated at the hearing. This section
supersedes Chapter 2.64 of the San Bernardino Municipal Code.
8.90.150 Priorities
All petitions for hearings shall be heard in order of date filed.
8.90.160 Rent adjustment regulations
For purposes of determining allowable rent adjustments, the rules and
regulations set forth in this section shall be used. In authorizing individual adjustments
of the rent ceilings, the Hearing Officer shall consider the purposes of this Chapter and
the requirements of law. The Hearing Officer 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 is 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 Hearing Officer in providing the owner a fair
return. A sale of a mobile home park by the owner, subsequent to June 3, 1991, which
results in a Proposition 13 tax increase, cannot be a factor to be considered in a request
for a rent adjustment by the new owners.
8.90.170 Net operating income
Net Operating Income (NOI) shall be gross income less allowable operating
expenses.
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8.90.180 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 the landlord to the tenants,
plus
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.
8.90.190 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 perforined 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, carpets,
and furniture.
E. Owner-perfonned labor, which shall be compensated at the following hourly
rates upon documentation of the date, time, and nature of the work performed:
1. At the general prevailing rate of per diem wages for the San Bernardino area,
for the specific type of work performed, as detennined and published by the
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Director of the 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 detennined 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 City 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
perfonned 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 extent same are not
otherwise paid by tenants.
H. The yearly amortized portion of capital expenses including financing costs,
computed in accordance with any useful life table utilized by the Internal
Revenue Service.
I. Reasonable attorney's fees and costs incurred as normal and reasonable costs of
doing business, including, but not limited to, good faith attempts to recover rents
owing and good faith unlawful detainer actions not in derogation of applicable
law, to the extent same are not recovered from tenants.
8.90.200 Operating expenses not allowable
Operating expenses shall not include the following:
A. Avoidable and unreasonable or unnecessary expenses;
B. Mortgage principal and interest payments;
C. Lease purchase payments and rent or lease payments to landlord's lessor;
D. Penalties, fees or interest assessed or awarded for violation of this or any other
statute;
E. Attorney's fees and other costs incurred for proceedings before the Hearing
Officer or in preparation for such proceedings, or in connection with any civil
actions or proceedings against the City, or a decision, ruling, or order of the
Hearing Officer;
F. Depreciation of the real property;
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G. Any expenses for which the landlord has been reimbursed by any security
deposit, insurance settlement, judgment for damages, settlement, or any other
method.
8.90.210 Presumption of fair base year net operating income
Except as provided in Section 8.90.220, it shall be presumed that the Net
Operating Income produced by a park owner during the base year, provided a fair
return on property. Owners shall be entitled to maintain and increase their Net
Operating Income from year to year in accordance with Sections 8.90.080 and
8.90. 100.13.
8.90.220 Rebutting the presumption
It may be detennined that the base year net operating income yielded other than a
fair return on property, in which case, the base year Net Operating Income may be
adjusted accordingly. In order to snake such a determination, the Hearing Officer must
make at least one of the following findings:
A. The owner's operating and maintenance expenses in the base year were unusually
high or low in comparison to other 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:
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 caused by natural disaster or
vandalism which management has taken appropriate action to reduce.
Maintenance and repair were below accepted standards so as to cause
significant deterioration in the quality of housing services.
4. Other expenses were unreasonably high or low notwithstanding the
following of prudent business measures.
B. The rental rates on the base date were disproportionate due to enumerated factors
below. In such instances, adjustments may be made in calculating gross rents
consistent with the purpose of this Chapter.
1. The rental rates on the base date were substantially higher or lower than in
preceding months by reason of premiums being charged or rebates being
given for reasons unique to particular units or limited to the period
detennining the base rent.
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2. The rent on the base date was substantially higher or lower than at other
times of the year by reason of seasonal demand or seasonal variations in
rent.
The rental rates on the base date were exceptionally high or low due to
other factors which would cause the application of the base year net
operating income to result in gross inequity to either the owner or tenant.
8.90.230 Determination of base year net operating income
A. To detennine the Net Operating hlcome during the base year, there shall be
deducted from the annualized gross income being realized in 1988, a sum equal
to the actual operating expenses for calendar year 1988, unless the owner
demonstrates to the satisfaction of the Hearing Officer that the use of some other
consecutive 12 -month period is justified by reasons consistent with the purposes
of this section.
B. In the event the owner did not own the subject property during the base year, the
operating expenses for 1988 shall be determined by one of the following
methods whichever the Hearing Officer deter -nines to be more reliable in the
particular case:
The previous owner's actual operating expenses as defined in Section 8.90.
190 if such figures were available, or
2. Actual operating expenses for the first calendar year of ownership,
discounted to 1988 by the schedule.
8.90.240 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 effect 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 Hearing Officer
that the use of some other consecutive 12 -month period is justified by reasons
consistent with the purposes of this section).
8.90.250 Schedule of increases in operating expenses
Where scheduling of rental increases, or other calculations, requires 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.
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8.90.260 Allowable rent adjustments
The Hearing Officer may permit rent adjustments, unless otherwise prescribed
by law, such that the owner's net operating income will be adjusted at the rate as
specified in Section 8.90. 100 B.2.
8.90.270 Discretionary considerations
While the Net Operating Income formula should operate to guarantee a park
owner a fair return on investment, the Hearing Officer considering a request for rent
increases shall consider all relevant factors presented in snaking a determination, as set
forth in this Chapter.
8.90.280 Limit on increases pending hearing or litigation
Notwithstanding any other provisions of this Chapter, no adjustment in rents in a
mobile home park shall be valid during the time that any hearing or proceeding is
being conducted pursuant to this Chapter, nor shall such increase be valid during the
period in which the Hearing Officer's decision for that park is being reviewed by a
Court of competent jurisdiction, except those the tenants shall be required to pay as the
Permissible Adjustment as provided for under Section 8.90.090 B.
8.90.290 Rent adjustments for reduction in services
A. No owner shall reduce the level or kind of services provided to tenants as of the
date of adoption of this Chapter or take any other punitive action in retaliation
for the exercise by tenants of any of the rights granted by this Chapter.
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 adjustment 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) months 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.
C. For purposes of Section 8.90.290 A. above, in determining cost savings to be
passed on to tenants in the form of decreased rent, the cost of 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 be considered.
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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.
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 Chapter 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
elimination in services must continue to exist at the time of the hearing. Rent
adjustments shall only be granted prospectively.
8.90.300 Quantum of proof and burden of proof
The decision of the Hearing Officer must be supported by the evidence submitted
at the hearing. The petitioning party shall have the burden of proof in such
proceedings.
8.90.310 Hearing Officer Decision Final
The decision of the Hearing Officer is final. This section specifically supersedes
Municipal Code Chapter 2.64.
8.90.320 Judicial review
An owner or tenant aggrieved by any action of the Hearing Officer may seek
judicial review by appealing to the appropriate Court within the jurisdiction. Sections
1094.5 and 1094.6 of the Code of Civil Procedure are applicable.
8.90.330 Termination of tenancy
A tenancy which is not held pursuant to a written rental agreement that confonns
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.
8.90.340 Remedies for violation
A. Civil Remedies - Any person who demands, accepts, or retains any payment in
violation of any provision of this Chapter 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.
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B. Criminal Remedies - It shall be unlawful for an owner to adjust any rent in an
amount in excess of that allowed under this Chapter or by order of the Hearing
Officer. Any owner who willfully and knowingly violates any of the provisions
of this Chapter or the orders of the Hearing Officer shall be guilty of a
misdemeanor.
C. Injunctive and Other Civil Relief - The City Manager, the City, and the tenants
and owners may seek relief from the appropriate Court in the jurisdiction within
which the rental unit is located to enforce any provision of this Chapter or its
implementing regulations or to restrain or enjoin any violation of this Chapter
and of the rules, regulations, orders and decisions of the Hearing Officer.
D. Non -waiver of Rights - Any waiver or purported waiver by a tenant of rights
granted under this Chapter prior to the time when such rights may be exercised,
whether oral or written, shall be void as contrary to public policy.
8.90.350 Periodic review of Chapter
A. The Mayor and City Council shall review the provisions of the Chapter at any
other time deemed appropriate, in order to consider the following:
Whether this Chapter continues to be necessary to protect the public health,
safety, and welfare.
2. Whether the implementation of the provisions of this Chapter have been
adequate, and
Whether the provisions of this Chapter should be amended to provide more
effective regulations or to avoid unnecessary hardship.
8.90.360 Chapter to be liberally construed
This Chapter shall be liberally construed to achieve the purposes of this
Chapter and to preserve its validity.
SECTION 2. INCONSISTENCIES. Any provision of the San Bernardino Municipal
Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of
such inconsistencies, is hereby repealed or modified to the extent necessary to effect the
provisions of this Ordinance.
SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence,
clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be
unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision
shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any
part thereof. The Mayor and City Council hereby declares that it would have adopted each
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section irrespective of the fact that any one or more subsections, subdivisions, sentences,
clauses, phrases, or words be declared unconstitutional, invalid, or ineffective.
SECTION 4. PUBLICATION. This Ordinance shall take effect and be in full force
thirty (3 0) days from and after the passage thereof, and prior to the expiration of fifteen (15) days
from its passage shall be published once in a newspaper of general circulation, printed and
published in the City of San Bernardino or, in the alternative, the City Clerk may cause to be
published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be
posted in the office of the City Clerk five (5) days prior to the date of adoption of this Ordinance,
and within fifteen (15) days after adoption, the City Clerk shall cause to be published the
aforementioned summary and shall post in the office of the City Clerk a certified copy of this
Ordinance together with the names of the members of the City Council voting for and against
the same.
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ORDINANCE NO. MC -1481
ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AMENDING SAN BERNARDINO MUNICIPAL
CODE CHAPTER 8.90 (MOBILE HOME RENTS) DISSOLVING THE MOBILE
HOME RENT BOARD AND DELEGATING RESPONSIBILITY FOR THE REVIEW
OF MOBILE HOME PARK RENT INCREASE REQUESTS TO AN INDEPENDENT
HEARING OFFICER
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor
and City Council of the City of San Bernardino at a joint regular meeting thereof, held on the
I e day of April 2018, by the following vote, to wit:
Council Members: AYES
MARQUEZ
BARRIOS
VALDIVIA
SHORETT
NICKEL
RICHARD
MULVIHILL kis)
NAYS ABSTAIN ABSENT
Georgeann Manna, CMC, Uty Clerk
The foregoing Ordinance is hereby approved this 18a' day of A rid 2018ox G
R. Carey Davi, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
B<L�) ye,
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