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HomeMy WebLinkAboutR10-Economic Development . . . . . ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION FROM: BARBARA J LINDSETH Acting Director SlffiJECT: AMENDMENT TO AN ORDINANCE RELATING TO MOBILEHOME PARK RENT INCREASES FOR CAPITAL IMPROVEMENTS DATE: May 31,1995 ---------------------.---------------------------------------------------------------------------------------------------------.----------- Svnon.i. ofPreviou. Commission/Council/Committee Action(.): On May 9,1995, the Housing Committee recommended to the Mayor and Common Council of the City of San Bernardino the approval of Ordinance Number: _, an ordinance of the City of San Bernardino amending Section 8.90.100 of the San Bernardino Mwricipal Code relating to Mobilehome Park Rent increases for capital improvements. Staff was directed to investigate whether interest at two percent (2%) over the prime rate at Bank of America was a reasonable interest rate to be used in the ordinance change. On May IS, 1995, the Mayor and Common Council approved the first reading of this ordinance. ------------------------------------------------------.---------------------------------------------------------_.------------------------- Recommendcd Motion(.): SECOND READING (Mavor and Common Council) MOTION: That the Mayor and Common Council approve Ordinance No. _, an ordinance of the City of San Bernardino amending Section 8. 90.1 00 of the San Bernardino Municipal Code relating to Mobilehome Park Rent Increases for Capital Improvements. (SECOND READING) !~~ Administrator /. / ~ 1'-.... /, _ v' C-.-'. q.' I", ; j(.l l..:;Cl:r,, ' ,~~..... , I BARBARA J. LINDSETH Acting Director ------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Barbara], LindsethlJerrv Butler Phone: 5081 Project Area(s): All Ward(s): Seven (7) Supporting Data Attached: Staff Reoort' FUNDING REQUIREMENTS: Amount: $ N/A N/A Source: Budget Authority: N/ A -------------------------------------_._~-----------_.----------...-----------------------..---------..----------------------------.------- Commission/Council Notes: ----------------~_!:"::~~~--------------------------------------------------------------------------------- BJL:GWB:edf:06-05-02.cde COMMISSION MEETING AGENDA MEETING DATE: 06/05/1995 Agenda Item Num~M- . . . . . ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ An Ordinance Amending Section 8.90.100 of the San Bernardino Municipal Code Relatin~ to Mobilehome Park Rent Increases for Capital Improvements The Mobilehome Board of the City of San Bernardino has spent over six months discussing and revising this ordinance change. At the Mobilehome Board meeting on April 25, 1995 it was unanimously approved by all members of the Board for presentation to the Housing Committee for their approval and submission to the Mayor and Council. This requested change has already been submitted to Mr. DemUs A. Barlow, Senior Assistant City Attorney as to form and content. His changes have been ineluded in the attached ordinance amendment. Some of the concerns the Mobilehome Board members discussed arc as follows: a. There have been a number of court cases in California where the judge has ruled in favor of the park owners for a request in space rent increases to cover a capital improvement in the park. b. The City of San Bernardino Ordinance is based on the use of the N.O.!. (net operating income) as a justification for rent increases. There is no provision in the ordinance, at this time, for capital improvement increases. e. Historically, in most cities where there is a rent control ordinance, the park owners feel justified in not properly maintaining the park or making needed capital improvements. Through this change, this will eliminate the ordinance as a reason for not keeping the park in good condition. It also protects the homeowners, as over 50% of the homeowners have to approve the capital improvement, unless the improvement is necessary to protect the health and safety of the residents. d. The Mobilehome Board was very careful to make sure that this cost would not be a space rent increase, but will be a special assessment that will be eliminated when the cost of the improvement has been fully recovered. On May 15, 1995, the Mayor and Common Council approved the first reading of this ordinance. Based upon the foregoing, staff recommends adoption of the form motions. , .'G - / ~<.' '\ ," (J c:-.' / >"J "to, '~(c., r '-'''lr's" BARBARA J. LINDSETH, Acting Director Development Department ------------------------------------------------------------------------------------------------------------------ BJL:GWB:edf:06.05-02.cde COMMISSION MEETING AGENDA MEETING DATE: 06/05/1995 Agenda Item Number: 1.11--