HomeMy WebLinkAboutMC-726
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ORI'JINANCE NO., 'MC-726
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AN ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING CHAPTER
8.90 TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO MOBILE HOME
RENTS
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
SECTION 1.
Chapter 8.90 is hereby added to the San
Bernardino Municipal Code to read as follows:
"8.90.010. Title.
This Ordinance may be cited as the Mobile Home Park Rent
Stabilization Ordinance of the City of San Bernardino,
California.
8.90.020. Statement of purpose.
A. Mobile home owners have a substantial investment in
their residences and appurtenances for which space is rented or
leased.
Alternate sites for relocation 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 related to the installation of mobile homes,
including permits, landscaping and site preparation.
Additionally, the cost of moving a mobile home is substantial,
and the risk of damage in moving is significant.
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
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1 citizens~ persons ort fixed incane ?nd persons of lo~ or'moderate
2 income, exorbitant rent increases fall upon these individuals
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The continuing possibility of
with particular harshness.
4 unreasonable space rental increases in mobile home parks
5 threatens to diminish the value of the investment of the mobile
6
Further, existing state law permits mobile home
home owners.
7 park owners to require mobile home owners to make modifications
8 to their homes for reasons of aesthetics or conformity to park
9 standards that amount to capital improvements which would accrue
10 to the benefit of the park owner by potentially increasing the
11 market value of the park itself.
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C.
This Council finds and declares it necessary to
13 facilitate and encourage fair bargaining between mobile home
14 owners and park owners in order to achieve mutually satisfactory
15 agreements regarding space rental rates in mobile home parks.
16 Absent such agreements, this Council further finds and declares
17 it necessary to protect the owners and residents of mobile homes
18 from unreasonable space rental increases while simultaneously
19 recognizing and providing for the need of park owners to receive
20 a just and reasonable return on their property.
21
D.
Administration of this Ordinance shall be under the
22 general direction of the San Bernardino Mobile Home Rent Board.
23
8.90.030. Application.
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The provisions of this title shall apply to all mobile home
25 residential rental units located within the City of San
26 Bernardino except if otherwise exempt from the provisions of this
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title, as such exemptions are provided for hereinafter.
Nothing
28 in this chapter shall be deemed to supersede any provision of
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Califorr~ia
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Civil Code Section 798.15 et seg.
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8.90.040. Definitions.
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In construing the provisions of this Ordinance, the
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following definitions shall apply:
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A.
"Landlord" means any owner, lessor, operator or
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manager of a mobile home park.
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B.
"Rent" means the consideration, including any bonus,
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benefit or gratuity, demanded or received by a landlord for the
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use and occupancy, including services and amenities, of a
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residential rental unit.
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C.
"Residential rental unit" means any mobile home space
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occupied by any person other than the owner of the park for
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payment of rent pursuant to an oral or written lease, or other
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form of rental agreement.
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D.
"Tenant" means any person entitled to occupy such
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mobile home unit pursuant to an oral or written lease with the
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owner thereof, or pursuant to some other rental agreement with
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the owner, lessor, operator or manager thereof.
E.
"Consumer Price Index or C.P.I." means the Index known
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as the "Consumer Price Index for all Urban Wage Consumers: for
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the Los Angeles - Long Beach - Anaheim Area," (base year, 1967),
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and if published for the San Bernardino - Riverside - Ontario
23
Area for the year 1984, and thereafter.
These documents are
24 published by the United States Department of Labor Bureau of
25 Labor Statistics.
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F.
"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
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(io"es n<9t include
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a "re,c.reational
as
d'efined
vehic'le"
in
Section 799.24 of the Civil Code or
a "commercial
coach"
as
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defined in Section 18218 of the Health and Safety Code.
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G.
"Mobile Horne Owner or Resident" means any person
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entitled to occupy a mobile home dwelling unit pursuant to
ownership thereof or a rental or lease agreement with the owner
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thereof.
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H.
"Mobile Horne Park Owner" or "Park Owner" means the
owner, lessor, operator, manager or designated agent thereof of a
10 mobile home park; sometimes referred to as "owner."
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1.
"Mobile Horne 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.
J.
"Rent Increases" means any additional rent demanded of
16 or paid by a tenant, including any reduction in housing services
17 without a corresponding reduction in the monies demanded or paid
18 for rent.
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K.
"Rental Agreement" means an agreement between a mobile
21
20 home park owner and tenant establishing the terms and conditions
22 agreement.
of a tenancy in a mobile home park.
A lease is a rental
23
L.
"Space Rent" means the consideration, including any
24 bonuses, benefits, or gratuities demanded or received for and in
25 connection with the use or occupancy of a mobile home space
26 within a mobile home park, or for housing services provided and
27 security deposits, but exclusive of any amounts paid for the use
28 of the mobile home as a dwelling unit. The use or occupancy of a
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mobilE\' ho~e .space shall inch/de the exercise Of al,'l rights and
privileges and the use of facilities,
services
and amenities
accruing to the residents thereof.
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M.
"Tenancy" means the right of a tenant to the use of a
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mobile home site within a mobile home park on which to locate,
maintain, and occupy a mobile home, site improvements and
7 accessory structures; for human habitation, including the use of
8 the services and facilities of the mobile home park.
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N.
"Vacancy" means the condition deemed to have occurred
upon the removal of any mobile home from a mobile home park or
upon sale of a mobile home in place to a third party.
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
16 or space rent increases for new mobile home spaces whether in
17 newly constructed parks or such spaces first rented after the
18 effective date of this Ordinance shall be exempt from the
19 provisions of this Ordinance to the extent that those rents would
20 have been controlled had the spaces been previously occupied.
21 There shall be no prospective exemption in such circumstances,
22 however, as to rents that may be increased annually under this
23 Ordinance after a space is first rented. In such cases, the base
24 date for purposes of determining permissible future rent
25 increases shall be the date of first rental or conveyance.
26
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B.
Vacancy Decontrol
1.
Upon the re-renting of a rental unit which has
28 been voluntarily vacated by the previous tenant, or vacated
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April 2, 1990
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pu:r'suqn't ~o 'California Civil, C;:ode Section 798'.56; :the' landlord
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may increase the rent to any amount.
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2. 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
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vacancy had not occurred.
3.
A vacancy is voluntary: if, the tenant
9 voluntarily and without coercion by the landlord vacates the
11 cohabi tant.
rental unit or, if the tenant dies and there is no surviving
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4.
All other vacancies are involuntary.
When a
rental unit which has been involuntarily vacated is re-rented,
the landlord shall, not more than ten days after such re-renting,
give written 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.
C.
Space Rent Agreement Exemption - Any rental agreement
19 in excess of twelve-months duration which also meets all
20 criteria specified by Section 798.15 and Section 798.17 of the
21 California Civil Code, including, but not limited to, the tenant
22 notification requirement within the first paragraph of such
23 rental agreement, shall be exempt from the space rent ceiling
24 provisions of this Ordinance, but only during the term of such
25 rental agreement or one or more uninterrupted, continuous
26 extensions thereof. If such rental agreement is not extended and
27 no new rental agreement in excess of twelve-months duration is
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April 2, 1990
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enter~d' iI)-tc:i, -then' the last ;r'ental agreement shall: be the base
rent for purposes of this Ordinance.
D. Lease Agreement Exemption - Section 8.90.080 of this
Ordinance does not apply to any residential Rental unit for the
rental of which the mobile home park owner and the tenants have
mutually agreed to enter into a lease which conforms to the
provisions of California Civil Code Section 798.15 et seq.
E. Violation - It is hereby made a violation of law,
punishable as a misdemeanor, for any person to perform any act of
duress, menace, or undue influence with the intent of thereby
obtaining the consent of any other person to enter into any lease
for the occupancy of a residential rental unit.
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 Board.
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 Ordinance; 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 Board is hereby empowered to establish procedures for
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March 29, 1990
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re~ui~i~g,such re~registratiQn
as it deems ~ecedsary
and to
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charge a fee for such re-registration in an amount to be
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established by resolution of the Mayor and Common Council.
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No park owner shall be eligible to receive any rent
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ceiling adjustment as provided for under the provisions of this
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Chapter unless such current registration as may then be required
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for the mobile home park is on file with the Board at the time
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the petition for the rent ceiling adjustment is filed.
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The registration and re-registration requirements provided
for in this section, or which may be hereafter established by the
Board, 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.
8.90.070. Registration fee.
A.
At the time of initial registration or any subsequent
16 re-registration, mobile home park owners shall pay to the City of
17 San Bernardino such registration fee for each mobile home rental
18 space within the park as may be established by resolution of the
19 Mayor and Common Council.
20
B.
If a park owner does not pay the fee provided for in
21 subsection A. above within the time period established therein, a
22 late charge shall be assessed in an amount equal to one dollar
23 ($1.00) for each mobile home rental space within the park for
24 each calendar month or fraction thereof that such payment is
25 delinquent.
26
C.
No petition will be accepted from any park owner for a
27 space rent ceiling adjustment of any kind, no hearing or other
28 proceeding shall be scheduled or take place, and space rent
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March 29, 1990
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1 ceiling granted take effect for mobile home
aqjustment or any
park for which there is an unpaid registration bill.
D. The Board is hereby directed to maintain an accurate
accounting of all direct and indirect costs of administering the
regulations contained in this Ordinance.
The Board shall submit
a report to the Mayor and Common Council of such costs any
recommendation for a change in the registration fee at least
annually from and after the effective date of this Ordinance.
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 Ordinance, 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 Ordinance 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.
8.90.90.
Space Rent ceiling adjustment
initial
adjustment.
A. No increase in space rent ceilings shall be permitted
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March 29, 1990
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except a's I;lrovi'ded 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 increase 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 than
dividing this remainder by the December, 1989, CPl.
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.
Permissive Adjustment - A park owner shall be
entitled to an annual permissive adjustment of gross space rental
17 income equal to eighty percent (80%) of the percentage increase
18 in the CPI from the date of the most recent initial or annual
19 adjustment to the date of application for the proposed
20 adjustment.
21
B.
Net Operating Income Adjustment - In the event a
22 park owner believes he or she does not receive a just and
23 reasonable return on park property after receiving the maximum
24 permissive adjustment provided for above, said park owner may
25 file an application with the Board for an adjustment of the space
26 rent ceiling, providing adequate justification for the proposed
27 increase.
28 A park owner shall be entitled to an adjustment of the
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March 29, 1990
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space, r.en,t .ceiling so as ,to enable the park :owner' s Net
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Operating Income (NOI) for the subsequent year to be increased by
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a rate which, when added to the maximum permissible adjustment
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provided for above will give the park owner a just and reasonable
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return on park property.
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C.
No annual adjustment shall become effective if a
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previous annual adjustment became effective within the previous
twelve (12) months unless approved by the Board pursuant to
Section 8.90.100 B.
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8.90.110. Mobile Home Rent Board establishment and powers.
11
A.
Establishment - The Mobile Home Rent Board of the City
12
of San Bernardino is hereby established.
13
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Composition -
B.
The Board shall consist of five (5)
regular members and two (2) alternate members.
One regular
15 member shall be a mobile home tenant who resides in the City of
16 San Bernardino; one member shall be a mobile home park owner,
17 operator, manager or designated agent of a mobile home park
18 located in the City of San Bernardino. The two alternate members
19 shall be a tenant from a different mobile home park other than
20 the regular tenant member and an owner, operator, manager or
21 designated agent from a different mobile home park than the
22
regular owner member.
The remaining three (3) members shall be
23 residents of the City of San Bernardino who are not elected
24 officials, employees, relatives of elected officials or relatives
25 of employees of the City of San Bernardino, and who are neither
26 tenants, owners, operators, managers or designated agents of
27 mobile home parks and who have no conflicts of interests due to
28
relationship with same.
Candidates for membership of the Board
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March 29, 1990
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shall, subll)it a verified staten\ent listing all interests in any
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real property or mobile home as defined in Section 798.3 of the
3
California Civil Code, including ownership, individually,
jointly, legal or equitable, and all sales of such property, or
instruments secured by such property, within thirty (30) days of
seeking appointment to the Board.
C.
Nomination and Appointment -
The regular tenant
member and his or her respective alternate members shall be
selected by the Mayor and Common Council from a list of five (5)
nominations for the Board submitted by a general association on
behalf of the various homeowners associations.
The regular
mobile home park owner member and his or her respective alternate
member shall be selected by the Mayor and Common Council from a
list of five (5) nominations supplied by a general association on
behalf of the various mobile home park owners associations.
The
Mayor and Common Council shall nominate and appoint the three
remaining regular Board members.
All members of the Board shall
be selected in accordance with applicable City procedures.
D.
Term - Each regular member of the Board shall serve
for a term of two years except as otherwise provided herein. For
the first Board, the one (1) tenant member and the one (1) owner
member and three (3) at-large resident members shall be appointed
for three (3)-year terms.
Thereafter, the successors shall be
appointed for terms of two (2) years.
Each regular member shall
hold office until a new member has been duly appointed.
Each
27
26 alternate member of the Board shall serve for a term of two (2)
28
years except as provided herein.
Each alternate member shall
hold office until a new alternate member has been duly appointed.
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March 29, 1990
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4 i member's term.
If a vacaIfcy occur's or an office becomes vacant other than by
expiration of a term,
it shall be
filled by
appointment
as
previously prescribed herein for the unexpired portion of such
Notwithstanding the above provisions of this
5
paragraph, a member may be removed, at any time, with cause, by a
6
majority vote of the Mayor and Common Council.
Further
7
notwithstanding the above provisions of this paragraph, any
8 member who is absent without sufficient cause from three (3)
9
consecutive meetings of the Board which such member was required
to attend shall be deemed to have vacated his office.
E.
Meetings - To fulfill its function, the Board shall
meet as often as it deems necessary, but at least one regularly
scheduled public meeting shall be held everyone hundred eighty
(180) days; or, except as otherwise set forth herein, within
15 thirty (30) days of any request for hearing or arbitration held
16
hereunder, whichever is earlier.
All members of the Board,
17 whether regulars or alternates, shall be required to attend all
18 Board meetings and hearings unless such member has been
19 disqualified from participation. All meetings of the Board shall
20 be conducted in accordance with the provisions of the Ralph M.
21 Brown Act.
22
F.
Voting - The affirmative vote of three (3) members of
24
23 the Board is required for a decision, including all motions,
regulations, and orders of the Board.
When a regular tenant
25 member or owner member is absent from a meeting, his or her
27
26 respective alternate member shall participate in the Board
proceedings in place of the absent regular member.
An alternate
28 member shall have voting privileges only when acting in the stead
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March 29, 1990
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ofar. absef).t 'regular' member.
G.
Quorum - Three (3) Board members shall constitute a
quorum.
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H.
Powers and Duties of Board -
The Board shall
undertake and have the following duties, responsibilities, and
functions, together with all powers reasonably incidental
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thereto:
1.
Adoption of Rules and Regulations.
Subject to
the approval of the Mayor and Common Council the Board may make
and adopt its own administrative rules and regulations as may be
necessary to effectuate the purposes and policies of this
Ordinance and to enable the Board to carry out its powers and
duties thereunder, so long as such rules and regulations are
14 consistent with the laws of the State, this Ordinance, and any
15
guidelines adopted by the Mayor and Common Council.
Any such
16 rules and regulations shall be reduced to writing and be on file
17 with the Director of the Board at all times.
18
2.
Director.
The Mayor with the approval of the
19 Common Council shall appoint a Mobile Home Rent Director,
20 hereinafter referred to as "The Director", to administer and
21 carry out to the fullest extent possible the expressed intent and
22
purposes of this Ordinance.
The Director shall be a full-time
24
23 employee of the City of San Bernardino and shall be a Division
Head of the City Administrator's Office.
The Director shall be
25 responsible for the day-to-day operations of the Board.
26
3.
Maintenance of Records. The Board shall keep a
27 record of its proceedings, which shall be open for inspection by
28 any member of the public.
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,4.' 'Appointment o.f' Committees, Mediator'S or Hearing
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Officers. The Board may appoint committees, mediators and
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hearing officers to hear matters on which testimony may be taken,
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which committees, mediators and hearing officers shall report to
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the Board the findings and results of any such hearing on a
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matter referred to such committee or person upon request.
7
5.
Conduct Studies and Investigations.
The Board
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shall have the power to make such studies, surveys, and
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investigations, conduct such hearings, and obtain such
10
information as is necessary to carry out its powers and duties.
11
6.
Require Registration and Registration Fees.
The
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Board shall require such registration of mobile home parks and
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establish such registration fees as the Board may deem necessary
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to enable it to carry out its duties.
15
7.
Approve Rent Increases.
The Board may approve
16 such adjustments in rent ceilings as provided for in this
17 Ordinance.
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8.
Evaluation.
The Board shall render at least
19 semi-annually a comprehensive written report to the Mayor and
20 Common Council concerning the Board's activities, holdings,
21 actions, results of hearings, and all other matters pertinent to
22 this Ordinance.
23
9.
Related Duties.
The Board shall undertake such
24 other related duties as may be assigned by the Mayor and Common
25 Council.
26
1.
Compensation - Each member of the Board shall be
27 entitled to such compensation as may be set by the Mayor and
28 Common Council, including reimbursement for reasonable expenses
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March 29, 1990
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inc'urr.ed' iI:l the performance of their official duties. The Board
shall not have any authority to expend or authorize the
expenditures of any public funds, except with the prior express
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approval of the Mayor and Common Council.
J.
staff - The City Administrator shall provide all
administrative staff necessary to serve the Board.
The Ci ty
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Administrator shall provide a secretary to serve as secretary of
the Director and shall be responsible for the maintenance of all
records of the Board.
The City Attorney or his/her designee
shall act as legal counsel to the Board.
8.90.120. Petition by tenant.
Any tenant of a mobile home rental space affected by this
Ordinance, upon payment of such fling fee as shall be duly
established, may petition the Board for a determination whether a
proposed or actual action by the landlord of such tenant is
16
legal, valid, and within the terms of this title.
If the Board
17 shall establish forms for such petitions, the petition shall be
18 prepared and submitted upon such form. In the absence of such
19 designated form, the petition shall contain the name, address and
20 telephone number, if known, of the landlord, owner, manager, or
21 other person authorized to represent the owner of the mobile home
22 park, a brief statement of the facts giving rise to the request
23 for interpretation or determination, and a statement that a copy
24 of the petition has been personally served or mailed to the
25 owner, manager or other person authorized to accept and receive
26 notices to the landlord.
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8.90.130. Petition by landlord.
Any landlord of a mobile home park affected by this
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Ordinance may, . upon' payment of' such filing fee ~s' 8h~11 be duly
established, petition the Board for a determination whether a
particular course of action by said landlord is allowable, valid
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and in conformity with this Ordinance. The Board may designate
forms for the filing of such petitions. In the event that no
such form has been designated, the petition shall be in writing,
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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
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such tenant who might be affected thereby.
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8.90.140. Petition for hardship rent increase.
A landlord, or any representative of the owner, lessor,
18 operator or manager of a mobile home park affected by this
19 Ordinance, upon payment of such filing fee as shall be duly
20 established, may petition the Board for a hardship increase of
21 the maximum rent permitted to be charged pursuant to this
22 Ordinance. If the Board shall designate a form for the filing of
23
such petition, such petition shall be filed upon such form.
If
24 no such form shall be designated, such petition shall be in
25 writing, verified by the applicant, and shall contain the name,
26 address and telephone number of the applicant, the name and
27 address of the tenant of each rental unit which would be affected
28 if the petition were granted, a statement of the facts giving
JFW:DAB:ms{mobilehm.ord} 17
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rise' to the pe'ci tior. for hardship, increase in suffIcient detail
that, if established, such facts would demonstrate the existence
of a hardship upon the landlord warranting such hardship
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increase. Within thirty (30) working days after the petition has
been submitted to the Board 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 unit which would be affected
by the hardship increase if granted.
When a declaration of
service has been submitted to the Board, the petition for
hardship rent increase shall be deemed filed.
8.90.150. Conduct of Board proceedings.
A.
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
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said party.
B.
Formal rules of evidence shall not apply in Board
proceedings; however, all oral testimony offered as evidence
19 shall be under oath.
C.
In the event that any party shall fail to appear at
the time and place set for hearing of a petition, the Board may
hear and review such evidence as may be presented, and may make
23 such findings and decisions as shall be supported by the
24 evidence presented.
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D.
The Board, shall make findings based on the evidence
26 as to each fact relevant to the Board's decision on the petition.
27 The decision of the Board shall be based upon the findings, and
28 shall:
JFW:DAB:ms{mobilehm.ord} 18
March 29, 1990
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1. Determine whether the action or prdposed action
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of a landlord is valid, permitted, and in conformity with this
Ordinance; and/or
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2.
Determine whether a hardship exists, and if so,
the nature and amount of relief to be granted or authorized to
the landlord.
E.
The Board or its appointed Director shall meet to
consider the evidence and arguments of the parties no later than
thirty (30) days after the matter has been submitted for
decision and shall make its final decision at the conclusion of
its deliberations.
No rent increase will be authorized unless
supported by the evidence.
A notice of the Board's decision
shall be sent to each party to a proceeding.
Unless good cause
14 to the contrary shall appear, each decision of the Board shall
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apply on a unit by unit basis, taking into account the
17 other facts differentiating rental units.
possibility of differences in base rent, services provided, and
18
F.
Nothing in this Ordinance, or in any decision of the
19 Board, shall require any landlord to raise rents or charges to
20
tenants.
If an increase in the maximum permissible rent is
21 authorized, a landlord may raise rents or charges by a lesser
22 amount, or for a lesser time than is authorized by the decision
23 of the Board.
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G.
The findings and decisions of the Board shall be
final administrative action.
There shall be no right of appeal
to the Mayor and Common Council.
Such findings and decisions
27 shall be public records, and may be certified by the secretary of
28 the Board, if any, or by the City Clerk. Each decision shall
JFW:DAB:ms{mobilehm.ord} 19
April 2, 1990
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se~ forih andtic~ as requ~rbd ~y California Government Code
Section 1094.6. The decision shall become effective upon mailing
to the party unless otherwise indicated at the hearing.
This
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section supersedes Chapter 2.64 of the San Bernardino Municipal
Code.
8.90.160. Priorities - Timeliness of Proceedings.
A.
The Board may establish categories of petitions or
requests, and may set priorities for those categories deemed most
urgent.
In view of the protections provided for tenants
elsewhere in this Ordinance, the highest priority for the
proceedings of the Board shall be given to the category for
petitions of landlords for hardship rent increase, and among such
petitions, the highest priority shall be given to petitions based
upon hardship alleged to be created by the landlord's payment of
15
utilities or other necessary services used in rental units.
B.
The Board shall so arrange its affairs that each
petition filed by a landlord seeking a hardship rent increase
shall commence hearing not later than forty-five (45) days
following the filing of such petition, and shall be determined
not later than thirty (30) days following the close of evidence.
If the Board shall deem it necessary in order to meet such time
constraints, it shall request of the Mayor and Common Council the
appointment of one or more hearing officers to hear such cases,
make findings thereon, and recommend disposition thereof to the
Board.
8.90.170. Hardship rent increase regulations.
For purposes of determining allowable hardship rent
increases, the rules and regulations set forth in this section
JFW:DAB:ms{mobilehm.ord} 20
March 29, 1990
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shall be" used.
In authorizing individual adjustments of the rent
ceilings, the Board, its hearing officers and the Director shall
consider the purposes of this Ordinance and the requirements of
law.
The Board 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 as 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
Board, its Director, or its hearing officer in providing the
owner a fair return.
8.90.180. Net operating income.
Net Operating Income (NOI) shall be gross income less
allowable operating expenses.
8.90.190. 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
JFW:DAB:ms{mobilehm.ord} 21
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the 'land"lo:rd to' the 'tenants.
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.
8.90.200. 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 performed 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,
JFW:DAB:ms{mobilehm.ord} 22
April 2, 1990
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carpets, and furniture.
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F.
Owner-performed labor, which shall be compensated at
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the following hourly rates upon documentation of the date, time,
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and nature of the work performed:
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1.
At the general prevailing rate of per diem wages
for the San Bernardino area, for the specific type of work
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performed, as determined and published by the Director of the
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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
determined 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 Common 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 performed 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
24 extent same are not otherwise paid by tenants.
25
H.
The yearly amortized portion of capital expenses
26 including financing costs, computed in accordance with any useful
27 life table utilized by the Internal Revenue Service.
28
1.
Reasonable attorneys fees and costs incurred as normal
JFW:DAB:ms{mobilehm.ord} 23
March 29, 1990
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and reasonable costs of do~ng business, including, but not
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limited to, good faith attempts to recover rents owing and good
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faith unlawful detainer actions not in derogation of applicable
4
law, to the extent same are not recovered from tenants.
5
8.90.210. Operating expenses not allowable.
6
Operating expenses shall not include the following:
7
A.
Avoidable and unreasonable or unnecessary expenses;
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B.
Mortgage principal and interest payments;
c.
Lease purchase payments and rent or lease payments to
10
landlord's lessor;
11
D.
Penalties, fees or interest assessed or awarded for
12
violation of this or any other statute;
13
14
E.
Attorneys fees and other costs incurred for
proceedings before the Board or in preparation for such
15 proceedings, or in connection with any civil actions or
16 proceedings against the Board, or a decision, ruling, or order of
17 the Board;
18
F.
Depreciation of the real property;
19
G.
Any expenses for which the landlord has been
20 reimbursed by any security deposit, insurance settlement,
21 judgment for damages, settlement, or any other method.
22
8.90.220.
Presumption of fair base year net operating
23 income.
24
Except as provided in Section 8.90.230, it shall be
25 presumed that the Net Operating Income produced by a park owner
26 during the base year, provided a fair return on property. Owners
27 shall be entitled to maintain and increase their Net Operating
28 Income from year to year in accordance with Section 8.90.080
JFW:DAB:ms{mobilehm.ord} 24
March 29, 1990
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,8.~0,230. Rebutting the presumption.
2
It may be determined that the base year net operating
3
income yielded other than a fair return on property, in which
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case, the base year Net Operating Income may be adjusted
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accordingly. In order to make such a determination, the Board or
its designee must make at least one of the following findings:
A. The owner's operating and maintenance expenses in the
8
base year were unusually high or low in comparison to other
9
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:
1.
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
17 caused by natural disaster or vandalism which management has
18 taken appropriate action to reduce.
19
3.
Maintenance and repair were below accepted
20 standards so as to cause significant deterioration in the quality
21 of housing services.
22
4.
Other expenses were unreasonably high or low
24
23 notwithstanding the following of prudent business measures.
25
B.
The rental rates on the base date were
disproportionate due to enumerated factors below.
In such
26 instances, adjustments may be made in calculating gross rents
27 consistent with the purpose of this Ordinance.
28
1.
The rental rates on the base date were
JFW:DAB:ms{mobilehm.ord} 25
March 29, 1990
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1 substantially higher or lowe~ than in preceding months by reason
2 of premiums being charged or rebates being given for reasons
3 unique to particular units or limited to the period determining
4 the base rent.
5
2.
The rent on the base date was substantially
6 higher or lower than at other times of the year by reason of
7 seasonal demand or seasonal variations in rent.
8
3.
The rental rates on the base date were
9 exceptionally high or low due to other factors which would cause
10 the application of the base year net operating income to result
12
11 in gross inequity to either the owner or tenant.
13
8.90.240. Determination of base year net operating income.
A.
To determine the Net Operating Income during the base
14 year, there shall be deducted from the annualized gross income
15 being realized in 1988, a sum equal to the actual operating
16 expenses for calendar year 1988, unless the owner demonstrates to
17 the satisfaction of the Board or its designee that the use of
18 some other consecutive l2-month period is justified by reasons
20
19 consistent with the purposes of this section.
B.
In the event the owner did not own the subject
21 property during the base year, the operating expenses for 1988
22 shall be determined by one of the fOllowing methods, whichever
23 the Board or its designee determines to be more reliable in the
24 particular case:
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March 30, 1990
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1., The previous Qwner:' s actual operating expenses as
defined in Section 8.90.200 if such figures were available, or
2. Actual operating expenses for the first calendar
year of ownership, discounted to 1988 by the schedule.
8.90.250.
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 affect 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 Board or its designee that the use of some
other consecutive 12-month period is justified by reasons
consistent with the purposes of this section).
8.90.260. Schedule of increases in operating expenses.
Where scheduling of rental increases, or other
calculations, require 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.
8.90.270. Allowable rent increases.
The Board, a hearing officer or the Director may permit
rent increases, unless otherwise prescribed by law, such that the
owner's net operating income will be increased at the rate as
JFW:DAB:ms{mobi1ehm.ord} 27
March 29, 1990
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8.90.280. Discretionary considerations.
3
While the Net Operating Income formula should operate to
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guarantee a park owner a fair return on investment, the Director
or hearing officer considering a request for rent increases shall
consider all relevant factors presented in making a
determination, as set forth in this Ordinance.
8.90.290.
Limit on increases pending hearing or
9
litigation.
Notwithstanding any other provisions of this Ordinance, no
increase in rents in a mobile home park shall be valid during the
time that any hearing or proceeding is being conducted pursuant
to this Ordinance, nor shall such increase be valid during the
period in which the Board's decision for that park is being
reviewed by a Court of competent jurisdiction, except those the
16 tenants shall be required to pay as the Permissible Adjustment as
17
provided for under Section 8.90.090 B.
18 rents under this Ordinance if the owner:
No owner shall increase
19 A. Has failed to comply with any provisions of this
20 Ordinance and/or regulations issued thereunder by the Board or
21 Mayor and Common Council, including any provisions requiring the
22 payment of registration fees and registration penalties.
23
24
B.
Has failed to comply substantially with any applicable
state or local housing, health or safety law.
No owner shall
25 increase rent unless the notice increasing rent contains a
26
statement in substantially the following form:
"The undersigned
27 (owner) certifies that this rental space and common areas of the
28 park are not subject to any uncorrected citation or notices of
JFW:DAB:ms{mobilehm.ord} 28
March 29, 1990
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viola'~ion .of
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or
any state or lqcal housing,
safety laws
2
issued by any government official or agency."
If an Owner fails
3
to comply with this subsection, the tenant may refuse to pay the
4
improperly noticed increase, may seek administrative or civil
5
remedies under this Ordinance, and may raise the owner's non-
6
compliance as an affirmative defense in any resulting unlawful
7
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detainer action.
8.90.300. Rent increases for reduction in services.
A.
No owner shall reduce the level or kind of services
10
provided to tenants as of the date of adoption of this Ordinance
11
or take any other punitive action in retaliation for the
12
exercise by tenants of any of the rights granted by this
13
ordinance.
14
B.
If a mobile home park provides in the rent, without
15
separate charge, utilities or similar services (including, but
16
not limited to, natural gas, electricity, water, sewer, trash,
17
cable television) and converts to separate charge for such
18
service by separate metering, separate charge or other lawful
19
means of transferring to the tenant the obligation for payment
20
for such services, the cost savings shall be passed through to
21
tenants by a rent reduction equal to the actual cost to the park
22
of such transferred utility or similar service (less common area
23
24
usage) based on costs for the twelve (12) months period prior to
notice to the tenants of the change.
Provided compliance with
25 this section occurs, provisions for mediation and/or hearing
26 shall not apply.
27
c.
For purposes of Section 8.90.300 A. above, in
28
determining cost savings to be passed On to tenants in the form
JFW:DAB:ms{mobilehm.ord} 29
March 29, 1990
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of 'deare'ased rent, the cost pf 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
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be considered. 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.
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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 Ordinance
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
15
elimination in services must continue to exist at the time of the
16 hearing. Rent decreases shall only be granted prospectively.
17
18
8.90.310. Quantum of proof and burden of proof.
The decision of the Board, its Director, or hearing
19 officer must be supported by the evidence submitted at the
20 hearing. The petitioning party shall have the burden of proof in
21 such proceedings.
22
8.90.320. Appeal.
23 Any party to a hearing shall be entitled to appeal the
24 decision of the Director or the hearing officer to the Board.
25 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
26 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
27 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
28 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
JFW:DAB:ms{mobilehm.ord} 30
April 2, 1990
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-8,-90,,330.
Filing of appe?l~
Any party seeking to appeal the decision of the Director or
the hearing officer must file such written appeal within fifteen
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(15) days of the date of notice of the decision and must post a
deposit of an amount sufficient to cover the cost of preparing
the Hearing Record.
8.90.340. Appeal hearing.
Upon the request of any party filing an appeal and
depositing the sums required in Section 8.90.330 hereof, the
Board shall schedule a hearing to be held within thirty (30)
days of the filing of appeal and shall direct the Director to
notify the parties of such hearing date.
8.90.350. Appellate review.
The Board shall review the Hearing Record and hear the
arguments of the parties at the appeal hearing, but shall limit
its review to facts presented at the hearing before the hearing
officer.
8.90.360. Time for appellate decision.
The Board shall make a decision no later than five (5)
20
21
22
days following the appeal hearing and notify the parties within
ten (10) days following the Board's decision.
8.90.370. Finality of decision.
The decision of the Board on appeal shall be final and
binding.
This section specifically supercedes Municipal Code
25 Chapter 2.64.
26
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8.90.380. Judicial review.
An owner or tenant aggrieved by any action of the Board
may seek judicial review by appealing to the appropriate Court
JFW:DAB:ms{mobilehm.ord} 31
March 29, 1990
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sections 1094.5 and 1094:6 of the Code
of Civil Procedure are applicable.
8.90.390, Termination of tenancy.
A tenancy which is not held pursuant to a written rental
agreement that conforms 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.
8.90.400. Remedies for violation.
A. Civil Remedies - Any person who demands, accepts, or
retains any payment in violation of any provision of this
ordinance 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.
B. Criminal Remedies - It shall be unlawful for any owner
to adjust any rent in an amount in excess of that allowed under
this Ordinance or by order of the Board.
Any owner who
willfully and knowingly violates any of the provisions of this
Ordinance or the orders of the Board shall be guilty of a
misdemeanor.
C. Injunctive and Other Civil Relief - The Board, the
Director, the City, and the tenants and owners may seek relief
from the appropriate Court within the jurisdiction within which
the rental unit is located to enforce any provision of this
Ordinance or its implementing regulations or to restrain or
JFW:DAB:ms{mobilehm.ord} 32
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enJoJ.n .any violation of i;hts Ordinance and of the rules,
regulations, orders and decisions of the Board.
D. Non-waiver of Rights - Any waiver or purported waiver
by a tenant of rights granted under this Ordinance prior to the
time when such rights may be exercised, whether oral or written,
shall be void as contrary to public policy.
8.90.410. Period review of ordinance.
A. The Mayor and Common Council shall review the
provisions of the Ordinance one year following the date of
adoption thereof, and at any other time deemed appropriate, in
order to consider the following:
1. Whether this ordinance continues to be necessary
to protect the public health, safety, and welfare.
2. Whether the implementation of the provisions of
this Ordinance have been adequate; and
3. Whether the provisions of this Ordinance should
be amended to provide more effective regulations or to avoid
unnecessary hardship.
8.90.420. Severability.
If any provision(s) of this Ordinance or application
thereof to any person or circumstances is held invalid, this
invalidity shall not affect other applications of this ordinance
which can be given effect without the invalid provision or
application, and to this end, the provisions of this Ordinance
are declared to be severable.
8.90.430. Ordinance to be liberally construed.
This Ordinance shall be liberally construed to achieve the
purposes of this Ordinance and to preserve its validity."
JFW:DAB:ms{mobilehm.ord} 33
March 29, 1990
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fJJ( -72//
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."~ ~ .~.\
CITY,OF SAN BERNARDINO ADDING CHAPTER
MUNICI~AL CODE RELATING TO MOBILE HOME
. . .
fiN OnDINANCE OF THE
8.90 TO THE SAN BERNARDINO
RENTS.
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5
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California.
I HEREBY CERTIFY that the foregoing ordinance was duly
adopted by the Mayor and Common Council of the City of San
7
Bernardino at an Adjourned
meeting thereof, held on the 9th
day of April
1990, by the following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN
ESTRADA
REILLY
x
FLORES
x
MAUDSLEY
x
MINOR
x
POPE-LUDLAM
x
MILLER
The f~~g
Of~l-
~~//;7l/2d!:;;;#/
City Clerk
ordinance is hereby approved this ~_ day
, 1990.
Approved as to
form and legal content:
JAMES F. PENMAN,
City Attorney
By: iz~ 7--,~~.A,
(/
JFW:DAB:ms{mobilehm.ord} 34
March 29, 1990