HomeMy WebLinkAboutS05-Council Office
city of San Bernardino
INTEROFFICE MEMORANDUM
9003-1404
TO: Mayor and Common Council
FROM: Gerald Butler, Project Coordinator
SUBJECT: Mobile Home Task Force Committee
DATE: March 27, 1990
COPIES:
---------------------------------------------------------------
The following is a summarization of the activities of the
Mobile Home Ad Hoc Committee.
The Committee, consisting of the Mayor, Councilmembers Flores,
Miller, and Maudsley, as well as mobilehome owners and mobile
park owners, have met numerous times in the past seven months
to negotiate a fair rental agreement between the mobile park
owners and mobilehome owners.
September 6, 1989:
September 7, 1989:
The Common Council enacted, by vote, a
120-day rent moratorium and established a
Rent Stabilization Task Force Committee.
This Task Force consisted of three
Council members, three mobilehome owners,
and three mobile park owners, with two
alternates for each of the mobilehome
owners and mobile park owners committees.
This Task Force was established at the
request of the park owners (see Attach-
ment 1) and by vote of the Mayor and
Common Council, as a result of the
efforts of the mobilehome owners presen-
tation before the Common Council on
August 7, 1989, at Sturges Auditorium. At
this time written documentation was
presented showing civil Code and Health &
Safety Code violations, as well as
unreasonable rent increases occurring in
mobilehome parks in the city of San
Bernardino. (See Attachment 2.)
The Mayor and Council received correspon-
dence from Clay Hage, Western Mobilehome
Association Regional Director (See
Attachment 3.) The last paragraph stated
that the park owners' representatives
would have legal counsel present at all
Task Force meetings. This posture taken
by the park owners made it clear that the
City should provide legal counsel
"....5
~$'t;
INTEROFFICE MEMO. ,~DUM: 9003-1404
Summary Report of Committees Negotiating
a Mobile Home Park Rental Agreement
March 27, 1990
Page 2
November 1, 1989:
November 23, 1989
specializing in rent stabilization
matters. The Mayor asked the mobilehome
owners' committee to select an attorney
and their choice was attorney Charles
Prawdzik.
Attorney Robert J. Jagiellio, repre-
senting the park owners, faxed a proposed
agreement to attorney Charles Prawdzik
(see Attachment 4). This document
expanded on the principles outlined in
the Park Owners September 6, 1989 letter
and placed issues in ordinance format for
purpose of discussion and negotiation.
Mr. Prawdzik and the Task Force reviewed
it and after some modification, a
response from Prawdzik to Jagiello
informed park owners that the document
presented would be acceptable as the base
from which negotiation would proceed.
One of the significant factors in the
negotiation process was the stability and
continuity of the position on the part of
the mobilehome owners committee. This
took place despite pressure from certain
segments of the mobile homeowners
community. Further, correspondence such
as the letter from attorney Robert J.
Jagiello dated February 8, 1990, and
submitted to the Mayor and Council
Committee (see Attachment 6) caused more
emotion and confusion. This letter
implied the mobilehome owners were
deliberately trying to sabotage the
negotiations. There is no evidence to
show that the homeowners made any attempt
to slow the process. In fact, after
looking into the accusations, it was
determined that Mr. Jagiello was basing
his letter on a source who is only known
to Mr. Jagiello.
The Mayor and Council Committee notified
the other committees of their position
relative to the proposed ordinance (see
Attachment 7). The City requested Mr.
Prawdzik to prepare an agreement and
ordinance for review and consideration by
the Task Force.
INTEROFFICE MEMO. ~DUM: 9003-1404
Summary Report of Committees Negotiating
a Mobile Home Park Rental Agreement
March 27, 1990
Page 3
February 6, 1990:
February 23, 1990:
March 14, 1990:
A draft was presented of a rental agree-
ment (see Attachment 8) and a rent
ordinance (see Attachment 9). The rent
ordinance would affect only those mobile
parks where the park owner would not
accept and implement the rental
agreement. All committees accepted both
the rental agreement and rent ordinance
drafts.
There was a task force meeting scheduled
for the week of February 14th to finalize
the drafts. This meeting was for two
purposes: 1) To make any necessary legal
changes of the draft ordinance. 2) To
submit to the Task Force for their review
and consideration, a marketing plan (see
Attachment 10) that would be used to
explain to park owners and mobilehome
owners the content of the proposed rental
agreement.
The Mayor, Council, and press received a
letter from the park owners' attorney
Robert J. Jagiello in which they rejected
the draft of the negotiated agreement
(see Attachment 11). The homeowners'
Committee responded to Mr. Jagiello's
letter and advised the Mayor and Common
Council of their position and reiterated
their request for a rent stabilization
ordinance (See Attachment 12).
Subsequently, at the next meeting, it was
agreed that Pat Anderson and Richard
Elias, park committee members, would
contact all mobile park owners to get a
ves or no on acceptance of the drafts
(see Attachment 13). All copies of the
drafts were mailed by the city to a list
of park owners that was provided by the
park owners committee members. The
results were to be reported at the next
scheduled committee meeting, March 14,
1990.
The results were reported as 69% aqainst
and 31% for the park owners negotiated
agreement and ordinance. Since the park
owners were rejecting their own proposal,
Mayor pro tem Michael Maudsley requested
INTEROFFICE MEMO! .mUM: 9003-1404
Summary Report of Committees Negotiating
a Mobile Home Park Rental Agreement
March 27, 1990
Page 4
attorney Charles Prawdzik to meet with
city Attorney James Penman to draft the
appropriate rent ordinance to be
presented to the City Council for their
review and consideration.
The Councilmembers on the Task Force
thanked all Task Force members and
Committee members for their participation
and cooperation in this process. Further,
they recommended that the rent moratorium
be extended for the purpose of allowing
staff and the City Attorney time to
prepare the necessary ordinance.
March 19, 1990:
Rent moratorium extended by Mayor and
Council for 60 days (June 6, 1990) and
instructed the City Attorney to prepare
as soon as possible the appropriate
ordinance for their review and
consideration.
GB:cms
Attachments
Respectfully,
~~
ierald Butler
Project Coordinator
~
INTEROFFICE MEMO~ ~DUM: 9003-1404
Summary Report of Committees Negotiating
a Mobile Home Park Rental Agreement
March 27, 1990
Page 5
l. Proposal of San Bernardino park owners from Robert J.
Jagiello - Dated September 6, 1989.
2. Mobilehome Owners documentation regarding rent gouging -
Dated July 27, 1989.
3. Letter from Clay Hage Expressing Park Owners Willingness
to Negotiate - Dated September 7, 1989.
4. Proposed Rent Agreement from Robert J. Jagiello - Dated
November 1, 1989.
5. Response of November 1, 1989 Rent Agreement to Robert J.
Jagiello, from Attorney Charles Prawdzik - Dated
November 24, 1989.
6. Letter From Robert J. Jagiello Expressing Concerns
Regarding Homeowner's Committee - Dated February 8,
1990.
7. City Council and Committees position - Dated November
24, 1989.
8. Rent Agreement Draft
9. Rent Ordinance Draft
10. Marketing Report - Dated March 5, 1990.
11. Letter from Robert J. Jagiello Rejecting Negotiated
Agreement - Dated February 23, 1990.
12. Letter from Mobilehome Owners Committee Expressing their
position regarding the negotiations - Dated March 6,
1990.
13. Letter sent to all Mobilehome Park Owners Requesting
Their Support - Dated March 7, 1990.
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
1
2
3
ORDINANCE NO.
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:
"8.90.0l0. 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
JFW:DAB:ms{mobi1ehm.ord}
March 29, 1990
1
c_~
1 citizens, persons on fixed income and persons of low or moderate
2 income, exorbitant rent increases fall upon these individuals
3
with particular harshness.
The continuing possibility of
4 unreasonable space rental increases in mobile home parks
5 threatens to diminish the value of the investment of the mobile
6
home owners.
Further, existing state law permits mobile home
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.
12
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
l7 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.
The provisions of this title shall apply to all mobile home
24
25 residential rental units located within the City of San
26 Bernardino except if otherwise exempt from the provisions of this
27 title, as such exemptions are provided for hereinafter. Nothing
28 in this chapter shall be deemed to supersede any provision of
JFW:DAB:ms{mobilehm.ord} 2
March 30, 1990
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
1
California Civil Code Section 798.15 et seq.
2
3
8.90.040. Definitions.
In construing the provisions of this Ordinance, the
4
5
following definitions shall apply:
A.
"Landlord" means any owner, lessor, operator or
6
manager of a mobile home park.
B.
"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 unit.
C.
"Residential rental unit" 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.
D.
"Tenant" means any person entitled to occupy such
mobile home unit 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.
E.
"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
24 published by the United States Department of Labor Bureau of
25 Labor Statistics.
26
27
28
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
JFW:DAB:ms{mobilehm.ord} 3
March 29, 1990
7
8
9
10
11
12
13
14
15
1
home does not include a "recreational vehicle" as defined in
2
3
Section 799.24 of the Civil Code or a "commercial coach" as
defined in Section 18218 of the Health and Safety Code.
4
G.
"Mobile Home Owner or Resident" means any person
5
6
entitled to occupy a mobile home dwelling unit pursuant to
ownership thereof or a rental or lease agreement with the owner
thereof.
H.
"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."
1.
"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.
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.
19
K.
"Rental Agreement" means an agreement between a mobile
21
20 home park owner and tenant establishing the terms and conditions
of a tenancy in a mobile home park.
A lease is a rental
22 agreement.
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
JFW:DAB:ms{mobilehm.ord} 4
March 29, 1990
1
mobile home space shall include the exercise of all rights and
2
3
privileges and the use of facilities, services and amenities
accruing to the residents thereof.
4
5
6
M.
"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
7 accessory structures; for human habitation, including the use of
8 the services and facilities of the mobile home park.
9
N.
"Vacancy" means the condition deemed to have occurred
10 upon the removal of any mobile home from a mobile home park or
11 upon sale of a mobile home in place to a third party.
12
13
14
8.90.050. Exemptions from coverage.
The provisions of this Ordinance shall not apply to the
following:
15
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
27
B.
Vacancy Decontrol
1.
Upon the re-renting of a rental unit which has
28 been voluntarily vacated by the previous tenant, or vacated
JFW:DAB:ms{mobilehm.ord} 5
April 2, 1990
9
10
11
12
13
14
15
16
17
18
19
1
2
3
mob~le home space shall include the exercise of alV rights and
privileges and the use of facilities, services and amenities
accruing to the residents thereof.
4
5
6
M.
"Tenancy" means the right of a tena,nt to the use of a
mobile home site within a mobile home park on which to locate,
maintain, and occupy a mobile home, ~~te improvements and
7 accessory structures; for human habitatiob, including the use of
8 the services and facilities of the mobiVe home park.
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 frqrn coverage.
,
The provisions of this/Ordinance shall not apply to the
,/
New Space or ~r~t Time Space Exemption - Space rent
/
or space rent increasyls for new mobile home spaces whether in
newly constructed arks or such spaces first rented after the
following:
A.
effective
Ordinance shall be exempt from the
provisions
Ordinance to the extent that those rents would
20 have been contr lIed had the spaces been previously occupied.
21 There shall be no prospective exemption in such circumstances,
22
23
24
however,
may be increased annually under this
Ordinance
is first rented. In such cases, the base
date for
determining permissible future rent
25 increas~s shall be the date of first rental or conveyance.
26
27
;
13.
Vacancy Decontrol
1.
Upon the re-renting of a rental unit which has
28 been voluntarily vacated by the previous tenant, the landlord
JFW:DAB:ms{mobilehm.ord} 5
March 29, 1990
1
2
pursuant to California Civil Code Section 798.56, the landlord
may increase the rent to any amount.
3
2.
Upon the re-renting of a rental unit which has
4
5
6
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
7
8
vacancy had not occurred.
3.
A vacancy is voluntary: if, the tenant
9 voluntarily and without coercion by the landlord vacates the
10
rental unit or, if the tenant dies and there is no surviving
11 cohabitant.
12
13
14
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,
15
give written notice to the new tenant of the base rent and the
16
17
18
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
28 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
JFW:DAB:ms{mobi1ehm.ord} 6
April 2, 1990
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
1
2
3
may increase the rent to any amount.
2.
Upon the re-renting of a rental un~~ which has
/
not been voluntarily vacated by the previous tepant, the base
4
5
6
rent and the base rent month shall remain ~nchanged, and the
,
,
maximum rent which may be charged shall be ~he same as if the
vacancy had not occurred.
3.
A vacancy is vo1unt!ary: if, the tenant
voluntarily and without coercion by ~he landlord vacates the
rental unit; if, the tenant dies /and there is no surviving
cohabi tant; if, the tenant has be,en evicted for non-payment of
rent where the rent charged was not greater than allowed by this
title.
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
in excess of twelve-months duration which also meets all
criteria specified by Section 798.l5 and Section 798.17 of the
,
California CiVil/code, including, but not limited to, the tenant
notification ~equirement within the first paragraph of such
I
/
24 rental agreem~nt, shall be exempt from the space rent ceiling
25 provisions of this Ordinance, but only during the term of such
26 rental agreement or one or more uninterrupted, continuous
27
28
extensions thereof. If such rental agreement is not extended and
no new rental agreement in excess of twelve-months duration is
JFW:DAB:ms{mobi1ehm.ord} 6
March 29, 1990
7
8
9
10
11
12
13
14
15
16
17
18
1
2
3
entered into, then the last rental agreement shall be the base
rent for purposes of this Ordinance.
D.
Lease Agreement Exemption - Section 8.90.080 of this
4
Ordinance does not apply to any residential Rental unit for the
5
6
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.l5 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),
19 business address(es), business telephone number(s) of each person
20 or legal entity possessing an ownership interest in the park and
21 the nature of such interest; the number of mobile home rental
22 spaces within the park; a rent schedule reflecting space rents
23 within the park on the effective date of this Ordinance; a
24 listing of all other charges, including utilities not included in
25 space rent, paid by mobile home residents within the park and the
26 approximate amount of each such charge; and the name and address
27 to which all required notices and correspondence may be sent.
28 The Board is hereby empowered to establish procedures for
JFW:DAB:ms{mobilehm.ord} 7
March 29, 1990
10
11
13
14
1
requiring such re-registration as it deems necessary and to
2
3
charge a fee for such re-registration in an amount to be
established by resolution of the Mayor and Common Council.
4
5
6
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
7
8
9
for the mobile home park is on file with the Board at the time
the petition for the rent ceiling adjustment is filed.
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
12
exempt from the space rent ceiling limitation by reason of the
existence of a valid space rent agreement.
8.90.070. Registration fee.
15
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
JFW:DAB:ms{mobilehm.ord} 8
March 29, 1990
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
1
2
3
ceiling adjustment granted or take effect for any mobile home
park for which there is an unpaid registration bill.
D.
The Board is hereby directed to maintain an accurate
4
5
6
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 3l, 1988,
the space rent ceiling shall be the space rent that was charged
on the first date that space rent was charged after December 3l,
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
JFW:DAB:ms{mobilehm.ord} 9
March 29, 1990
7
8
9
10 I
11
12
13
14
15
1
2
3
except as provided for herein.
B.
permissive Adjustment - A park owner shall be entitled
to an initial permissive adjustment gross space rental income
4
5
6
equal to eighty percent (80%) of the percentage increase in the
Consumer Price Index (CPI) from the end of the base year (l988)
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
16 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
JFW:DAB:ms{mobilehm.ord} 10
March 29, 1990
7
8
9
10
11
12
13
14
15
1
2
space rent ceiling so as to enable the park owner's Net
Operating Income (NOr) for the subsequent year to be increased by
3
a rate which, when added to the maximum permissible adjustment
4
5
6
provided for above will give the park owner a just and reasonable
return on park property.
C.
No annual adjustment shall become effective if a
previous annual adjustment became effective within the previous
twelve (l2) months unless approved by the Board pursuant to
Section 8.90.100 B.
8.90.ll0. Mobile Home Rent Board establishment and powers.
A.
Establishment - The Mobile Home Rent Board of the City
of San Bernardino is hereby established.
B.
Composition -
The Board shall consist of five (5)
regular members and two (2) alternate members.
One regular
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
22
21 designated agent from a different mobile home park than the
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
JFW:DAB:ms{mobilehm.ord} II
March 29, 1990
16
17
18
19
20
21
22
23
24
25
1
2
shall submit a verified statement listing all interests in any
real property or mobile home as defined in Section 798.3 of the
3
California Civil Code, including ownership, individually,
4
5
6
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.
7
8
9
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)
10
11
12
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
13
14
member shall be selected by the Mayor and Common Council from a
list of five (5) nominations supplied by a general association on
15
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 (l) tenant member and the one (l) 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)
years except as provided herein.
Each alternate member shall
28 hold office until a new alternate member has been duly appointed.
JFW:DAB:ms{mobilehm.ord} l2
March 29, 1990
1
2
3
Ifa vacancy occurs 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
4
5
6
member's term.
Notwithstanding the above provisions of this
paragraph, a member may be removed, at any time, with cause, by a
majority vote of the Mayor and Common Council.
Further
7
8
9
10
notwithstanding the above provisions of this paragraph, any
member who is absent without sufficient cause from three (3)
consecutive meetings of the Board which such member was required
to attend shall be deemed to have vacated his office.
11
E.
Meetings - To fulfill its function, the Board shall
12
meet as often as it deems necessary, but at least one regularly
13
14
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
23 the Board is required for a decision, including all motions,
24
regulations, and orders of the Board.
When a regular tenant
25 member or owner member is absent from a meeting, his or her
26 respective alternate member shall participate in the Board
27 proceedings in place of the absent regular member. An alternate
28 member shall have voting privileges only when acting in the stead
JFW:DAB:ms{mobilehm.ord} l3
March 29, 1990
1
2
3
of an absent regular member.
G.
Quorum - Three (3) Board members shall constitute a
quorum.
4
H.
Powers and Duties of Board -
The Board shall
5
6
undertake and have the following duties, responsibilities, and
functions, together with all powers reasonably incidental
7
8
9
10
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
11
necessary to effectuate the purposes and policies of this
12
Ordinance and to enable the Board to carry out its powers and
13 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
22
21 carry out to the fullest extent possible the expressed intent and
purposes of this Ordinance.
The Director shall be a full-time
23 employee of the City of San Bernardino and shall be a Division
24
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.
JFW:DAB:ms{mobilehm.ord} 14
March 29, 1990
23
1
2
3
4.
Appointment of Committees, Mediators or Hearing
Officers. The Board may appoint committees, mediators and
hearing officers to hear matters on which testimony may be taken,
4
which committees, mediators and hearing officers shall report to
5
6
the Board the findings and results of any such hearing on a
matter referred to such committee or person upon request.
7
8
9
5.
Conduct Studies and Investigations.
The Board
shall have the power to make such studies, surveys, and
inve st i g a tions, conduct such hearings, and obtain such
10
11
12
information as is necessary to carry out its powers and duties.
6.
Require Registration and Registration Fees.
The
Board shall require such registration of mobile home parks and
13
14
establish such registration fees as the Board may deem necessary
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.
18
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.
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
JFW:DAB:ms{mobilehm.ord} 15
March 29, 1990
1
2
3
incurred in 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
4
5
6
approval of the Mayor and Common Council.
J.
Staff - The City Administrator shall provide all
administrative staff necessary to serve the Board.
The City
7
8
9
10
11
12
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.l20. Petition by tenant.
Any tenant of a mobile home rental space affected by this
13
14
Ordinance, upon payment of such fling fee as shall be duly
established, may petition the Board for a determination whether a
15
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.
27
28
8.90.l30. Petition by landlord.
Any landlord of a mobile home park affected by this
JFW:DAB:ms{mobilehm.ord} l6
March 29, 1990
10
11
12
13
14
15
16
17
18
19
1
Ordinance may, upon payment of such filing fee as shall be duly
2
3
established, petition the Board for a determination whether a
particular course of action by said landlord is allowable, valid
4
5
6
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,
7
8
9
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. Petition for hardship rent increase.
A landlord, or any representative of the owner, lessor,
operator or manager of a mobile home park affected by this
20 established, may petition the Board for a hardship increase of
Ordinance, upon payment of such filing fee as shall be duly
21
22
23
the maximum rent permitted to be charged pursuant to this
Ordinance. If the Board shall designate a form for the filing of
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
March 29, 1990
11
16
17
18
1
2
3
rise to the petition for hardship increase in sufficient detail
that, if established, such facts would demonstrate the existence
of a hardship upon the landlord warranting such hardship
4
increase. Within thirty (30) working days after the petition has
5
6
been submitted to the Board for filing, petitioner shall be
given notice of the time and place of the hearing, which notice
7
8
9
10
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.
12
8.90.150. Conduct of Board proceedings.
13
14
A.
Each party to a hearing may have assistance in
presenting evidence or in setting forth by argument his position,
15
from an attorney or such other person as may be designated by
said party.
B.
Formal rules of evidence shall not apply in Board
19 shall be under oath.
proceedings; however, all oral testimony offered as evidence
20
21
22
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.
25
26
27
28
D.
The Board, shall make findings based on the evidence
as to each fact relevant to the Board's decision on the petition.
The decision of the Board shall be based upon the findings, and
shall:
JFW:DAB:ms{mobilehm.ord} 18
March 29, 1990
thirty (30) days after the matter has been submitted for
10 decision and shall make its final decision at the conclusion of
1
2
3
4
5
6
11
12
13
14
1.
Determine whether the action or proposed action
of a landlord is valid, permitted, an~ in conformity with this
_-t.-,.
Ordinance; and/or
2.
Determine whether a hardship exists, and if so,
the nature and amount of relief to be granted or authorized to
the landlord.
7
8
9
The Board or its appointed Director shall meet to
E.
consider the evidence and arguments of the parties no later than
its deliberations.
No rent increase will be authorized unless
A notice of the Board's decision
supported by the evidence.
Unless good cause
shall be sent to each party to a proceeding.
to the contrary shall appear, each decision of the Board shall
15 apply on a unit by unit basis, taking into account the
16 possibility of differences in base rent, services provided, and
17 other facts differentiating rental units.
18
Nothing in this Ordinance, or in any decision of the
F.
19 Board, shall require any landlord to raise rents or charges to
20
If an increase in the maximum permissible rent is
tenants.
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.
24
25
26
G.
The findings and decisions of the Board shall be
There shall be no right of appeal
final administrative action.
Such findings and decisions
to the Mayor and Common council.
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
18
19
20
21
22
23
24
25
26
1
2
1.
Determine whether the action or proposed action
of a landlord is valid, permitted,
and in conformity witn this
/
,.
3
Ordinance; and/or '
2. Determine whether a hardship eXis~and if so,
the nature and amount of relief to be granted cy/ authorized to
/
the landlord. /
E. The Board or its appointed Di;kctor shall meet to
/
consider the evidence and arguments of th~/parties no later than
I
4
5
6
7
8
9
/
/
thirty (30) days after the matter/~as been submitted for
10 decision and shall make its final decision at the conclusion of
11
12
13
14
its deliberations.
No rent increase will be authorized unless
supported by the preponderance of the evidence. A notice of the
Board's decision shall be sent to each party to a proceeding.
Unless good cause to the contrary shall appear, each decision of
15
the Board shall apply on a unit by unit basis, taking into
16 account the possibility of differences in base rent, services
17
provided, and other f~cts differentiating rental units.
Nothing;i:h this Ordinance, or in any decision of the
/
/
Board, shall req~re any landlord to raise rents or charges to
/
If ~ increase in the maximum permissible rent is
/
authorized, a/ landlord may raise rents or charges by a lesser
/
F.
tenants.
/
amount, or/~or a lesser time than is authorized by the decision
of the Board.
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
28
27 shall be public records, and may be certified by the secretary of
the Board, if any, or by the City Clerk.
Each decision shall
JFW:DAB:ms{mobilehm.ord} 19
March 29, 1990
23
24
25
26
27
1
2
3
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
4
5
6
section supersedes Chapter 2.64 of the San Bernardino Municipal
Code.
8.90.160. Priorities - Timeliness of Proceedings.
7
8
9
10
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
11
12
proceedings of the Board shall be given to the category for
petitions of landlords for hardship rent increase, and among such
13
14
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.
16
B.
The Board shall so arrange its affairs that each
17 petition filed by a landlord seeking a hardship rent increase
18 shall commence hearing not later than forty-five (45) days
19 following the filing of such petition, and shall be determined
20
21
22
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.
28 increases, the rules and regulations set forth in this section
For purposes of determining allowable hardship rent
JFW:DAB:ms{mobilehm.ord} 20
March 29,1990
7
8
9
10
11
12
13
14
15
1
shall be used. In authorizing individual adjustments of the rent
2
3
ceilings, the Board, its hearing officers and the Director shall
consider the purposes of this Ordinance and the requirements of
4
5
6
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
16 or is held as a long term or short term investment, the owner's
17 rate of return on investment, the owner's current and base year
18 Net Operating Income and any other factors deemed relevant by the
19 Board, its Director, or its hearing officer in providing the
20 owner a fair return.
21
22
8.90.180. Net operating income.
Net Operating Income (NOr) shall be gross income less
23 allowable operating expenses.
24
25
26
8.90.190. Gross income.
Gross Income equals:
A.
Gross rents, computed as gross rental income at 100%
28
27 paid occupancy, plus
B.
Interest from rental deposits, unless directly paid by
JFW:DAB:ms{mobilehm.ord} 21
March 29, 1990
1
2
3 I'
II
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
the landlord 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
7
8
9
10
11
12
13
14
15
16
1
the landlord to the tenants.
2
c.
Income from miscellaneous sources, including, but not
3
limited to, laundry facilities, vending machines, amusement
4
5
6
devices,
cleaning fees or
services,
garage and larking fees,
/
plus
I
/
/
All other income or consideration
/
receivable for or in connection with the use or
/
D.
received
or
occupancy of
rental units,
/
/
/
t6 vacancy and bad debts
E. Minus uncollected rents due
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
17 are performed by landlord, management fees shall include the
18 reasonable value for such landlord performed services.
19 Management fees greater than five percent (5%) of gross income
20
are presumed to be unreasonable.
Such presumption may be
22
21 rebutted by clear and convincing evidence.
D.
Other reasonable management expenses, including, but
23 not limited to, necessary and reasonable advertising, accounting
24 and insurance.
25
E.
Normal repair and maintenance expenses, including, but
26 not limited to, painting, normal cleaning, fumigation,
27 landscaping, and repair of all standard services, including
28 electrical, plumbing, carpentry, furnished appliances, drapes,
JFW:DAB:ms{mobilehm.ord} 22
March 29, 1990
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
1
2
carpets, and furniture.
F. Owner-performed labor, which shall be compensated at
3
the following hourly rates upon documentation of the date, time,
4
5
6
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 determined and publiShed by the 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
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
1
2
3
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
4
law, to the extent same are not recovered from tenants.
5
6
8.90.210. Operating expenses not allowable.
Operating expenses shall not include the following:
7
8
9
A.
Avoidable and unreasonable or unnecessary expenses;
B.
Mortgage principal and interest payments;
c.
Lease purchase payments and rent or lease payments to
10 landlord's lessor;
11
12
13
14
D.
Penalties, fees or interest assessed or awarded for
violation of this or any other statute;
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
18
19
17 the Board;
F.
Depreciation of the real property;
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
24
23 income.
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
9
10
11
12
13
14
15
16
1
2
3
8.90.230. Rebutting the presumption.
It may be determined that the base year net operating
income yielded other than a fair return on property, in which
4
5
case, the base year Net Operating Income may be adjusted
accordingly. In order to make such a determination, the Board or
6
its designee must make at least one of the following findings:
7
A.
The owner's operating and maintenance expenses in the
8 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:
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
28
27 consistent with the purpose of this Ordinance.
1.
The rental rates on the base date were
JFW:DAB:ms{mobilehm.ord} 25
March 29, 1990
1 substantially higher or lower 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
11 in gross inequity to either the owner or tenant.
12
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
19 consistent with the purposes of this section.
20
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
25
26
27
28
particular case:
/ / / /
/ / / /
/ / / /
/ / / /
JFW:DAB:ms{mobilehm.ord} 26
March 30, 1990
1
1.
The previous owner's actual operating expenses as
2
3
defined in Section 8.90.200 if such figures were available, or
2.
Actual operating expenses for the first calendar
4
5
6
year of ownership, discounted to 1988 by the schedule.
8.90.250.
Determination of current year net operating
income.
7
8
9
10
11
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
12 satisfaction of the Board or its designee that the use of some
13 other consecutive 12-month period is justified by reasons
14 consistent with the purposes of this section).
15
8.90.260. Schedule of increases in operating expenses.
16
Where scheduling of rental increases, or other
17 calculations, require projections of income and expenses, it
18 shall be assumed that operating expenses, exclusive of property
19 taxes, and management expenses, increases at 5% per year, that
20 property taxes increase at 2% per year, and that management
21 expenses constitute 5% of gross income, provided, however, that
22 if actual increases are greater or less than those listed in this
23 section, the actual increases shown according to proof shall be
24 the increases applicable.
25
26
8.90.270. Allowable rent increases.
The Board, a hearing officer or the Director may permit
27 rent increases, unless otherwise prescribed by law, such that the
28 owner's net operating income will be increased at the rate as
JFW:DAB:ms{mobilehm.ord} 27
March 29, 1990
23
24
1
2
specified in Section 8.90.100 A. 2.
8.90.280. Discretionary considerations.
3
While the Net Operating Income formula should operate to
4
guarantee a park owner a fair return on investment, the Director
5
6
or hearing officer considering a request for rent increases shall
consider all relevant factors presented in making a
7
8
9
10
determination, as set forth in this Ordinance.
8.90.290.
Limit on increases pending hearing or
litigation.
Notwithstanding any other provisions of this Ordinance, no
11
12
13
14
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
15 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.
No owner shall increase
18 rents under this Ordinance if the owner:
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.
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
16
17
18
19
20
21
22
23
24
1
2
3
violation of any state or local housing, health or safety laws
issued by any government official or agency."
If an owner fails
to comply with this subsection, the tenant may refuse to pay the
4
5
6
improperly noticed increase, may seek administrative or civil
remedies under this Ordinance, and may raise the owner's non-
compliance as an affirmative defense in any resulting unlawful
7
8
9
10
11
12
13
14
detainer action.
8.90.300. Rent increases 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 Ordinance
or take any other punitive action in retaliation for the
exercise by tenants of any of the rights granted by this
ordinance.
B.
If a mobile home park provides in the rent, without
15
separate charge, utilities or similar services (including, but
not limited to, natural gas, electricity, water, sewer, trash,
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 reduction 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
25 this section occurs, provisions for mediation and/or hearing
26 shall not apply.
27
28
c.
For purposes of Section 8.90.300 A. above, in
determining cost savings to be passed on to tenants in the form
JFW:DAB:ms{mobilehm.ord} 29
March 29, 1990
4
5
6
7
8
9
10
11
12
13
14
15
1
2
3
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. 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 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
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.
19 officer must be supported by the evidence submitted at the
The decision of the Board, its Director, or hearing
20
21
22
hearing. The petitioning party shall have the burden of proof in
such proceedings.
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
1
2
3
4
5
6
7
8
9
10
11
12
of decreased rent, the cost of installation of separate utility
meters, or similar costs incurred by the owner to sh~ft the
/
obligation for payment of utility costs to the tenant~shall not
be considered. However, this shall not be constru~~o prohibit
D.
as an
or prevent the consideration of inclusion
increased operating expense at mediation or a
If a service other than a util'
or similar service
per subsection (A)
above is reduced of eliminated, or if a
/1
service is reduced or eliminated without a
utility or similar
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
13 hearing must be filed within twelve (12) months of the date on
14 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
19
20
21
22
8.90.310. Quantum of proof and burden of proof.
/
/
The decisiot of the Board, its Director, or hearing
officer must be/supported by a reasonable preponderance of the
/
evidence sUbmj1ted at the hearing, except for those issues
a differen~ standard of proof is specified herein.
petitioni~g party shall have the burden of proof in
where
The
such
/
23 proceedifigs.
/
24 a.90.320. Appeal.
25 Any party to a hearing shall be entitled to appeal the
26 decision of the Director or the hearing officer to the Board.
27 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
28
JFW:DAB:ms{mobilehm.ord} 30
March 29, 1990
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
8.90.330. Filing of appeal.
Any party seeking to appeal the decision of the Director or
the hearing officer must file such written appeal within fifteen
(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)
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
27
28
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
20
1
2
3
within the jurisdiction.
Sections 1094.5 and 1094.6 of the Code
of Civil Procedure are applicable.
8.90.390. Termination of tenancy.
4
A tenancy which is not held pursuant to a written rental
5
6
agreement that conforms to the provisions of Section 798.15 et
seq. of the California Civil Code shall be terminated only
7
8
9
10
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
11
ordinance shall be liable in a civil action to the person from
12
13
14
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
15 which could lawfully be demanded, accepted, or retained,
16 together with reasonable attorney's fees and costs as determined
17 by the Court.
18
B.
Criminal Remedies - It shall be unlawful for any owner
19 to adjust any rent in an amount in excess of that allowed under
this Ordinance or by order of the Board.
Any owner who
21 willfully and knowingly violates any of the provisions of this
22 Ordinance or the orders of the Board shall be guil ty of a
24
23 misdemeanor.
C.
Injunctive and Other Civil Relief - The Board, the
25 Director, the City, and the tenants and owners may seek relief
26 from the appropriate Court within the jurisdiction within which
27 the rental unit is located to enforce any provision of this
28 Ordinance or its implementing regulations or to restrain or
JFW:DAB:ms{mobilehm.ord} 32
March 29, .1990
1
2
3
enjoin any violation of this Ordinance and of the rules,
regulations, orders and decisions of the Board.
D.
Non-waiver of Rights - Any waiver or purported waiver
4
5
6
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.
7
8
9
10
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
11
12
13
14
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
15
this Ordinance have been adequate; and
16
3.
Whether the provisions of this Ordinance should
17 be amended to provide more effective regulations or to avoid
18 unnecessary hardship.
19
20
8.90.420. Severability.
If any provision(s) of this Ordinance or application
21 thereof to any person or circumstances is held invalid, this
22 invalidity shall not affect other applications of this ordinance
23 which can be given effect without the invalid provision or
24 application, and to this end, the provisions of this Ordinance
25 are declared to be severable.
26
8.90.430. Ordinance to be liberally construed.
27 This Ordinance shall be liberally construed to achieve the
28 purposes of this Ordinance and to preserve its validity."
JFW:DAB:ms{mobilehm.ord} 33
March 29, 1990
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
1
2
3
AN ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING CHAPTER
8.90 TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO MOBILE HOME
RENTS.
California.
I HEREBY CERTIFY that the foregoing ordinance was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a meeting thereof, held on the
day of , 1990, by the following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN
ESTRADA
REILLY
FLORES
MAUDSLEY
MINOR
POPE-LUDLAM
MILLER
City Clerk
The foregoing ordinance is hereby approved this
day
of
, 1990.
W. R. Holcomb, Mayor
City of San Bernardino
Approved as to
form anQ legal content:
JAMES F. PENMAN,
City Attorney
By: ~~ I. ,1fl.,~~A.
(J
JFW:DAB:ms{mobilehm.ord} 34
March 29, 1990
,
I .
I
,
I
3 /?~~! ~ -fl"//~'\it.:i
ROBERT J. JAGIELLO ~/ ,4-(. H cf).. ~V:/ ~
ATTORNEY AT LAW //! t-f f' D ~ -:-.J.
- ' ..{:.
1847COMMERCENTERW, t:tJ &v,'/CI L. ~"'/./"'l; ..ff/'f~_
SAN BERNARDINO. CA 92Cl8 P.O. BOX 4208 -.b - , .
~ea.::~;3c:J:~:2714 C! 7.-4) ~ J -t-: 8L~~~~aZ?g17 / /f.'1 L
. ~/'zJ -- .//1 -c7J ~r -/6 ~j-'~ ~
1 ~/~'f~ ~ PROPOSAL OF SAN BERNARDINO PARK O~R~ 2,t-LLU/O I
/7 TO CITY COUNCIL ~ (IV ~
/1/1/ (t & ,,- September 6, 1989
/-71~ ,- ,
Int~oduction' ~r~ IJ.f ~'t~ p~S
~ile we remain constrained by political realities, and
recogn~ze the momentum for a rent moratorium, we still express
our concern at even temporary rent control, but accept its
employment as a vehicle for aChieving voluntary resolution of the
legitimate needs and aspirations of both tenants and park owners.
Therefore, we request a strict time-frame be established
wherein the City Attorney and advisors on the one hand, actinq on
b~~lf n~ +~na~ts, and Robert J. Jagiello and industry advisors
act~ng on behalf of park owners, meet and confer in good faith to
achieve the following ends:
1. Tenant freedom from rent gouging;
2.
Tenant security in.their investment:
.....
3. Preserving the tenants' quality of life: ~
4. Recognition of the park owners' equity position and its ____
appreciated value:
Preservation of the park owners' current economic
status from economic deterioration over time due to ~-
increased op;EatiE9 cos~s and inflation.
Prooosal:
5.
1. That the legitimate interests of the tenants in
avoiding rent gouging be met through a formula which, while
keeping the park owner whole from the effects of inflation and
increased operating costs, limits rent increases to essentially
the level of .inflation. By putting an agreed-upon cap based upon
some formula recognizing the elements of inflation and increased
operating costs, the tenants are free from arbitrary and
excessive rent increases, and the landlord can be insured 'that
his present position will not deteriorate. Obviously, the
tenants will bear the effects of inflation, and in this regard
they are no different from the thousands of other taxpayers in
the City of San Bernardino who constantly live with inflationary
pressures. Inflation seems to be a necessary evil in our
JJI
society, there is no reason why park tenants, as distinguished
from the entire body politic, should enjoy any special advantage
from the effects of inflation.
2. The creation of a joint fund, to be funded by both the
park owners collectively and the city, to guarantee that a
tenant, presently in occupancy,. will receive what he paid for the
coach (accounting for inflation and discounting for
depreciation) .
This component of the agreement is meant to insure against loss
due to rent increases at the time of the sale. The tenant
remains whole, and the agreement will not suffer from the
constitutional defect of compelling a transfer of wealth from the
landlord to the tenant so soundly condemned in the Hall case.
This approach contains a built-in mechanism for protecting
against excessive rent increases at the time of sale, in that an
excessive rent increase would cause the price of the coach to
drop, and thus trigger the requirement that the deficiency be
made up out of the common fund described above.
3. In order to insure the quality of life remains the same
at any given park, it is anticipated that an office of ombudsmen,
created and funded by the City, will perform a necessary
arbitration function in resolving the myriad of details
surrounding life and living in a mobilehome park in San
Bernardino city. Under the purview of the ombudsmen will be such
issues as maintenance, park rules and regulations, and civil Code
disputes.
4. That a cooperative program of park development be
created between the City on the one hand and the park owners on
the other to develop more spaces, with the end in mind that a
structure be developed for providing opportunities for the
tenants to purchase the land under their coaches. It is
recognized that many of the enormous costs now experienced in
developing parks are the direct consequences of excessive and/or
bureaucratic red tape. It is equally recognized that a joint
effort by the government on one hand and private industry on the
other, working to eliminate unnecessary bureaucratic hurdles and
minimize costs, could efficiently develop new spaces at
affordable rates and thus provide the only sure solution for low
and moderate income housing needs.
Time Frame:
1. The first
representatives of the
September 18, 1989.
meeting to be held between the
tenants and park owners no later than
2. Draft proposals from each side provided to the other
side no later than October 1, 1989.
3. An integrated agreement resolving all disputes no
later than October 23, 1989.
We look forward to favorable City Council action on this
proposal.
ROBERT J. JAGIELLO
.
:; L.1L.,\(
"':../ '!
'j cr'pe)
,
.... I'r\/ CCJi...Ji\iL:: I L..
::::' ;"":j ! \1 ,!': E:: 1 '.~ !\~ (::'j h: :C' I () CJ~, i.nt 1-" "
L.istecJ ar-e '!"~lP MC:JLli.J.e ~Cll' uwrler~ ar'ld i-.'ar-j( Man2gel~s
Vi(JJ.2tions upon Mobi.].ehome CJW!'ler'S i.n ti,e C:ity of Barl Bej-nardino
to jl~sti'fy _. F~en.t [)r-c~i.r';ar'}ce all ~lcJ12tj.orl!~; :ti,sted f::'lac2 Park
()wrler-~5 l.lf')der- .tt'2 ~1ea].th aneJ Safet~ C;ode, (:::hapter" '7, Sectl.on
lE370() il")e 1.~5'1.. '!~~ ~<::: foll(:}ws
SECTION I - Space Rents
In Rell't. i!'lCreaS8!5, yeal-ly that t'2vP gOj")e ~c t'ligh ~~ 1.8,,5%
~...) i t h I I '..,; .3. m (.:.:.~ r-r 1. t :i. E' -;::; 0 It- 2). d d e d E:\ men i -C./.. (-:: s.. "f hE:" I'" F:.' E:\ 1'- (.:.;: ,....j G b i ]. f.~': F' .e.. r' k. ~::. .i.. if
tt'le city wt,er'e the rer,t lS incr-easeci twice a vear at the ~~2me
i,igh per'centagesn 'l"hi.s eql..lal.s to 14.% to 26% 3J"11'lua].J.y wltl'lOl.lt
jl..lstifica.ti.or1u L..C:)l'lg ter-rn leasE!; are otferec( (Llp to 2() ycars)
anci Mc)biJ,ehe:)me (}wner"~~ P2nail~~i~
't"t"'OfT":
;:::n'
to 12()% adcjitic~r'lalJ.y
f(::lr' !-e'fusing to 51.gr'}" l..;01::Jle~~~ c)'f' lea~5e agr-eerllerlts signee:!
!"l] c:: h :i.. :I. ~:::.:' \""1 C) ro E:' ;:] t..\~! .! f:::' ,0"" ~::; .:':':i. I'" (."::,! net. ~j:.i.. \/ :....:.' 1"'1 t c t:. h (-:.:.~ m n L F:::" c"i. s. r::? s:: ':::, p E.: c if....,.' _.
m .L 1'"i :L ill U in CJ 'f () ';...;, :::, ! ': rh! :.J E:\ :I '::::. n a::::: r:::.; I"~ :'::::' r"i "1.::. :J.. f"; C r" f:-~ ,::':"i. -::::. i::~':' ~::j. u E';, u m (?, p .::). 1'- j..:. '0.:. ci E:-: rn i;':' ['"'j d
'l E..., -:'::~ 5 (.:,'~:; !:J F? ~:::. :1.. 9 n E.:' d 1:::: I"" i C! r t:. Cr IT": C) \/ :i.. n (;) ..'.. ,I E:"'. -f t. E'~ r'" n u m c.::.' ."J.. ~::~ p tJ j.... C 1''"1 ::!. ~::. t::?! cJ and
setup (:1!, ther~ ct'losel") space nLlmlJer'"u Vi.olatiorl Qf Califg Ci.vi,l
CDd(.,::.'
-~~ C) C)
n ,i,,;'
~. 51:')ac::e I"'e;.,t~~ ir'lc:reaspc:! wtler1 F'al"'I( ()w1"lers insl.ll'-ancp,
~'h'" e~;, ci.ty 1:ees and etc~ i.s in(:reasedn F'assirlg or1 a],l, costs to
Mc,bilel',clme C:lwr'}er!3u If c:os.t go dOWlhl t!'lis savi.ng is not shared
with the Mobilehome Owne~.
3" CC)st o'f water', sewer and trash addec! tCJ space paynlcr'lts
w~lictl ave~age 8u5%" ttli.s iSi a reduc'ti.on of services and
violates .the !1obi.letlome [)wrler's current agreerlerlt wi'lh tt,e r)0rk
owner-Inlanageme~ltn
~'n Ctlar'"gir'lg for' ~ues.ts wtli.ch range i'rom $lnC)(:) to $5uC)O pel-
gt.lest per dayu ri'l~; ].~~ In vioJ.atiofl of CaJ.i.forl,i.a Civil ~ooe
798"34 (t)) dl"llj 798n35g
I ,. i (.::.~ r--! v F:: .:3. Y' ':::'1. \/ e r" (:"i. (.:J :i. n (] (] 'f m [) b:.i.. J f::~ S p E:\ c:: E,:' I.... F! n t =:. .:::\ ..../ (::-: r' -:"::t i~:J f::~'
(11.2019%) Ofle ht_lndl~ed twelve pc:)irlt rlinteer1 per'cer1t to (186~67%
(Jrle hurldi-ed eigtlty six ~)oi.nt si>:ty seven ~)ercent i.nClr'ease ir1
par-k spaCE y"en'L" hrt,pse are l(~w avel~ages arld does rlCJt inc].ude
every 11ot)ile Par'k ir'l thE Ci.ty of San Ber'flareji.no" (see at.tached
1. .; ~:;: .j.
6" l"PI-l yeay' aVP1"'agE 'for'
tact,e(J lis'f'! i"l2S averaged
~;uc.i.:3.1
Security irldivicl~als
si.xty six poi.nt .three
l.. ~:;E'(':':':'
(6f.:).. ~:.';...~)
P E'~ ~... c: E:'n t:. "
/,' ~~f.tel- ~ent mc)ratclr"iLAm o'f 1984 and 1987 by the city
counci.l the park own~~uc i.mmedia.tely irlc1-eased space rerlts at
er'ld elf mCJr"a.tc:)ri.l,Affiu
~:::~ F) .:::\ ~... I, i....! t/;l f'''j E':'~ I'" :::;, .:':':\ n U rv'~ .::i, n .:':";i. (J C:'; I _u t. i- ::::.' ::::. p c:~ ::::. ':::;. .1. 1"1 q C) l"'"l ~""'i D l:::: j. ], (.:.:.: :."! C) en (.:.:.;
(}Wf12r"s space wi.thol..l.t perlni.3si.c:)nn Vic)].ation of Cal.j.t
Ci'-./:L 1 CedE'
"","CiC) ~:'L
. .'L!".':..'...!"
,
/-,'/ ,
ifA
~'age ~
SECTION II - Safety.
par'k maflager"su Pool
Vj.c)latj.o!~ of ~~eaJ.tl"l
r-Llles
'01:
~)ar!~ ~;wimming ~:)oo],s
en"forced tor- safety
ignol'-ed
of chi.].drena
ti.on 166(:)3~
~R Safe.ty of chi,lclr"en i.r1
and
Safety CCJc:!p (~~lapter
5~ f3ec
2" !:~o(:)l upkeep no.t nlairltained by par-k managers t(:J pr'Qtect
t~le t1ealt~1 c)f tt'lOS2 l"tsir'lg thi.s facili"ty. Vic)].atiorl Gf t~ealt~l
2i-,d Safety Code Ct"lapter 1,,5~, Secti.ofl 1.8250 arld 18251, Chapter
~, Section 18401 th~ough 18404 and Chapter 5, Section 18603.
'~R C~ac.l~ed and bl~].girlg ~~idEwall~s not repair-ed Llntil
~~~On\e()l'le ~c i.1")jL.li"'E(j'l thj.!~ i.nc:],l..lc:les ~;treets wi.th pot ~loleE .that
~FP rlot lnairltai.fled 2fld tj~F er"osior~ contir\uesn Violati(Jn eJf
Heal..tt'l ar'\(:l Safety C(:)de~ Ci"a~:)telr' ln5, Sec:tiC)rl 1825(:) ar')d 18251
C~lapter ~.., Sectiorl 1.fl~.Ol th~ough 1.840~'n Violati(Jfl [)'f (::a~.if"
Civil C(:Jc:ip 798n84~
~'. Re(:iLlcti.or') irl r)a~k li.ghtir1gn Stl-eets not adeqll2tely
li.gh.ted er1ougt, for secu!"'i.ty an(:1 no seclJrity pa'lro].s pr"clvicJedn
Park~; that ~laci pa.tr'olle(j ~;ecL.ll~j,ty cancelled bv park ownel-~,
VioJ.ati.on (:If ~~ealth and Safe"ty (~ode, Cha~)ter 5, sec.tiorl 1.Gt()2"
5" Ol") site rnanagemell.t will f"lClt tal~e proper respollsibili.ty,
a].58 many parks have no on duty or on site manager aftei- 5:0()
F'nl1n or weekends" Violati.c)n of Health and Safety Code, C~i2p'~er
5, Secti.O!l 18603"
Page
SECTION III - Intimidation.
1.~ ~r~' CJwners arld 11al"1agers are ~12r'assir)g MClbi.lehDme
Owner~; to the extent they J.ive in fear~ (we were urlab:le to get
wri.tten dc:)CUnlenta"tic:)n from p2~ks where the fear of evi.ctiorl _._
.to great for them tr1 wy-j.te it down)" VioJ.atiofl of Calif~ Civil
Coeje 527"26"
2" F'ark Owrlers/Managers USi,flq irl(ji.vidl.la:!.
boxes to piJ.fer M(J1Jile~lOrne OW!le!~'s mai,ln (tt,is
vi~latic)n)n
keys to mail
i,5
... ~
~ tederaJ.
~~" L.awyers of par"!( C)Wrle:'.S write t~}reatening ],etter~; to
Mc)bi.J,et'lclnle ()wfler"s witt'] errorleous st3tements rorclrlg those who
C0!"l aff(~rd j,t, .tel get legal advi.cE" -i"hose W!"lO c:arl't J.~.vc In
i"earn Vi.o],atiar') of Cali,"f Civil Code 527,,26u
~, Par'l~ Owrle~s/Mai-lagers tt"lreaterli,ng MobiJ.ehome OWrler"S with
added addi'ti,ona], rent increases if tt1ey ejon't sign long term
:1,Ease~~u Vi,oJ,ati.orl c)f eaIi'fu Civil Code 52"7u26
~ Mobilehome OWfler's invc)lved ifl t~le rel1t OrC!i!larlCe
fllovenler,t are bel,ng tlarassed anl:1 t~lreater'ed by F'2f"k
OW1!er-s/Managenlerltu Violatiofl of C:alitn Civil Cocje l,942u5
6" Par"l~ Owr'ler5;/~ianagement trapping anc[ disposing ()f
M(Jbi,lehonlp Owner's petsu 11-' sc)me parks pets are b?ing IJoisonecj~
-r'~li,~~ is rlC)t corlveyec! to the Mol)ilehome Owners as to action
being tal(erl to pr'ever,t or' as~ist i,n tl'le preventionu Violation
[,f Cali'f~ Civil (:ocje 798"51
. .
.
F'age 4
SECTION IV - Mobile Park Clubhouse Facility.
1 Clubhot.lses are l,c)cke(j arlcj MobilehonlG (Jwl-'le~s cannot !!~P
tt'lP fac::i].j.tie~~; tl"ley are ~Jayj.ng fOI~u Violati,orl of Calj.f~ (:~ivil
C(Jde 798.24.
2" Clllt)~lol..lses are not being mail1tai.nedn I~En P:lUfilbi,ng,
s.toves~ carpets, aj.~ condi,tioni.flg and i~ecovering pacll tabl.es as
reqlliredn Some M(~bj.le Park Owner's t13ve renloved the pool tables
and r"ecr"eati,on eqLti~)mentn Vi.ol,ati,ofl of Calif. [;ivi,l Code 798.84.
arlcj 79E:J,,87n
SECTION V - Utilities.
F'ar'l( OWi"lerS a1r'e r-espon~lDle tor .tt,e 14lti.lities ir"l Mati,I.
Par!~=n r"E. gas, ~].ectrici.ty and water. Some parks have hac!
rJc:)wer" fai.ll.:re~; for- fnCJr-e "thar'l a weeku Wtle!") !1c)bi:le~lCJme Owners
asked for rei,nblJFSement 1:or ln~t of fr-oz2ll "food t~lev were
decli,lled reimbL~rserner'ltu (public L,!tility COnl~)arlies reimbuy'"se
wl'len t~}ev fai.] t(J l"'es'Lor'e servi=e i,n a mi.nimuul ler'lgth of time)u
Emer"gerlcy 1::)CJwer lJi'li,ts 2~e available tJllt ~Jal~i( owners and
ITianagers l,Anwi,l,l,irlg "le) ~;pend tt"lE fllnds required" All park owners
!lave a nlOl"tt'lly fee attactlE(j to all. space rents to covey" t:"18se
si,tl.,lati.ons"
2n f~arl( py"c)vi,deej TuV~ antenr12 systems irlcll1ded in space
rent not being maintained. Mobilehome Owners have no choice.
ForcirlQ Mobilehorne Owners to pay a morlthly fee for' catJle l'"uVu
w!'len they don't have a TaVa Satelli'Le dishes are ver'v expensive
al"ld not al_J.owed in mClst parl(su MarlY parks de) not make cable
TnVn avai,J,able tel Mobi.let'lonle Ownersu Vi,alation of Cali,fu Ci.vi.l
Coc:!e 798nE34n
3. Nct posting utility rates in a conspicuous place.
Vi(:J].a-liorl of Califn Civil Code 798.:38a
.
t:, .., ~::.~ E:~ c;,
OVERVIEW
With .t~le e~.:ces~~~j.ve spa(:~e ~ent i,ncreases in ~!obi_J.ehome
F'ar"l.s the IVl(Jbilehome Owners i.nvestment has declilled to w~')p~e ~
~;:.~:?O!l O()() n O() t:.n ~~:.6() ~I ()O() ,,()() j. r'l \/E~':::. tmer'! t .i:;:. r"E"::,dLtc: (.::,cj t.o 't -I ':' 'l ' "It ,j-I I II) !::.U
$~;5,()(:)OnO() mar'l.e~ value"
T~le C.i,"Lv Council i,ll .the pas.t has li,stened to us, bll't we
I'lave 1'10t been t,ear-j! n Renlember- Mobilet1cJme OWflers are no'~
apar"tment dwellel-s, ar'ld c:arlJlo.t plck up thei.r" i,rlvestmen"t 2fld
rn(]ve.. An apar-'lmen"t dwel.].e!'. can pi(:l~ up al"ld rnove at a (::ost. ot
($l,!,O()(::)"O(::)) C:l["lP t~l(:)l..lsand c!o::.larsn A ~iobilehome Owners CC)st of
nlov~r'lg 0!',O inlpr"overnerlts ~~ a j'leW site rlJnS from ($5,()()()u(:lO)
fj,ve ttlC)L,tSar")~ clc)llar"s '~'r' ($15~OOC)"OC)) fi,fteerl thoL~S2r'}d clollar-s
Aj,~~;o t!ler-e are ver-y few Srl3ces avail,able to move tOn
~!Cl!::)j,121'-1(:)n'e OWI-ler-'s in tj"lis ci'ty vc,te, pay taxes, sperlel
tl")er"s rnoi,ey and stil,l tt'ler"e (:(:J!:;t arld p!~oblenls escalate with no
r'el,ie"f l,rl ~~;j,gt.\"tn We i-,ave ver'j,fi,c:aticln ancl c!ocLlmenta'tiorl [)f a],l
fnat'Ler-s p~eserl'ted to YOl,~ arl( tlope for i,mmediate actiofl 'fr"on:
ttli,s !-lC:~I-)(:)r"at)le tr'j,btJl'lal"
1.3 u. 1 ';/ .1:_ /:1 '1 r:~) F~ \~)
!::::.3qE-~ 1 of :'?
Listed are seven Mobile Par!(s with rent increa~;e percentage foy' ten vear~~~
These s.tatistics are fOI-' i.rldi.vidLlals irl the listed MobiJ.e Par-ks~ livi.r')g ir')
a (jouble wide Mobi.le~)ome and does rlo.t Ir'eflect t~le ma:.~i!num space payrnents
for all Mati.lel-lome Owners li.ving in the F'2r.l<~;~ Water~i l'rash a!~d Sewer fees
are not included.
Social Secl.lri,ty CF':[ tJ2sed on hOLlSi.:-\g, foc)cl and c:lott'lj,ng~ HOllsinq i.s glven
sixty percent of total CPl.
Sc)ci.al Secl..lF'j.ty statistics for terl years a:-e from Social SecLlri.ty
Administr'aticJn arld can be confi~med tl~rough Mrh Sanders - Bach Sec~ Supervisor
at 71.4-'38~;-5817n
'/E'dr
iVIDh:i..1 F';
PE:'tr-f::.
B2'.SE'
F<ent
F' f:.::! r" C E::' (j '1::.
I n c:: 1'" e E:'( ::::. E:
l'otal MCln: SaCn Sech 6(:)% 'for-
F'''''.Vf!lF"nt:. 'CPT Tnc:I~. !-'IDu.c:;.ing
.-----.--.------------------.-".-.--..--.-.-.----.:
.,,:: '.1. ,."
19(38 ,SeqLloia Plaza
/ PDYE,'.:! 'y.(jl~k
I,.j:i.nth ~:;t,
PiC: c..'1C.i E:\ 1..../ i :L .I. E:!.
p!:.? p pE:~ ,,- \/1.1.:. ct
1987
.1..9:36
1.. S)8!.:)
1,S'>84
T'l'-DP i c: c:\n E:\
0:: :') ,..:' ..:~. '-) ..:..
..;....,:....:......'n.I:..'...!
~~..lf3r:.?" 00
~:. l ~::; 2:; " () ()
;1;:1.71,,,00
~~ :1. /.::, ,S " 0 ()
RarlC~lO ~leri.dj.arl ~;255h()()
~t:.19~j" O()
Sf.0quui.:"::I. F'1~3.ze
nO',/-:::\:L YDrk
Ninth :3t"
?'iC: (3.C i .:':":\ t) i ]. .1. El.
F'E-:'PPE-:I'- \../i :LIE:'.
T ;'-0 p:i. c a.r-l E:\
F'ar',chD !'lel'-i.cJ.i,?.n
:3equO.1.EI. PIE:\z2.
F:oYEi.l YOlr'k.
Ninth St.
I:ic:: ",\C i a. '.J i I 1.;:\
PE:ppE.~I'- 1...).i:L l,t":3.
Ti-'opicB.nB.
!:;:a.ncho !''''IE.~r'idj_;.::\n
SequCJia. F'lB.z.:::\
F;.~[)..,/al YDrk
1\1.inth E::t"
;\;208.65
'$172:; " ()()
$..1.2~;,.. 00
$1.61." :?5
$.1 ~j1. "Or:)
~;180 h 00
$.2.H3" O()
$.1 C;.i ~.) " ()O
$1.66,,00
$.109.. 00
~:.1. ~5J.. h 2~5
$.1.46 h 00
'i;J 6~': " ()O
$21.~:::I;OO
$.1.'17'" 50
$1.::1C::'.OO
'$. C?(~)" ()O
Acacia Villa $14{)h25
Pepper Villa $1,37.00
Trc)pi.cana $138hOCI
Rancho Merj.di.an $2{:)~'n('()
Sequ.Di..:3. PL.a.zE:t
F:o~"j'-:::\J. VDrl.....
j',Ii.nth :',t"
(:lC de :i. -:3. lv.li. 11.0\
F'E:ppel~ ')i.l1.",0.
$.1 ~5B h O()
+.1..46.00
$ C; 1, " O()
$.1.3:7" ::~,
~:'.127.. 00
Tr"opicana ~;1.lE3u()O
R2nc:ho Mey"idiar'l $185uOO
l" C);:'.
,..J" ... ~...' l"
f,,:" '...' ,It
1.1." 2";> ..
~5..~34 l
t:j "li.::::; /n
.10" :21:.::, i~
,/ "l.)t) ...~
7" :,::1 ,,,
')" :':::4.1:,
(::'" ..q.O .en
6" O~5 .:.
C/ I; c.r~:; :.:
El ":,~',."
1.6" 97 .In
t::r,,67 lh
,,;:1. ,,2:? ~~
J..4ht.:r8 '"
t.".61 '"
~S" 42 h
1. 0 h ll.~~; 'I:
.,::: ~ ..::,.<+ 1
:J..()..17 '"
6,,41. :;,
1. () h .1. () :/:
.c:" ".1..1. '
6 " is ~~.; Ih
1.El. .1.::' 'I::
ll." 4.1.. l"
:1.2:.0:2 '"
1..:.:" 8~J /h
8 II 7C.i /"
t::.' ,,5::1 ..."
'/" 8'/' '"
1 c'-:" n C) ~I '.~'~
10 h 27 'i;".
~~} :? :~:; U " ~?' (~} I
4 n U() "/
-:i:. :L C? E3 " () ()
Ii
H
~:. .1. ilf.:l ,,()()
.~:. J" ::3."L r: () ()
~:.l d() .. ()()
"
$.2.1. ~5 n OU
~; ::: 7: :;':': " d:5
"
.~t:.22:~:; h :2{:;
4"::;.:0,,,
',?" ~:.1:Z '.:,-:,
,*:. .18t? " ()O
'$.1,::':::": ,,00
~:.:L ':71. h on
$166,,()()
$..1.95" 00
i!
"
"
"
"
II
';~:' ~,~~ 5:1 .. () 0
"
"
;1;208" ,1.:;5
s:.:.I.. 7~~:; II 00
.1 ,,::~:O '
L.. f::?: ::; ':~:. t. !'.'l.:-~.j. fl
:,: "()i; No
"
'~:..1.2~5.. 00
Soc .. Sr:.:::c "
$.16.1" :?~j
"
I nc: r-E.\a~.~::.\
$:L~:~1 h ()O
$l80hOO !
"
$?18,,()()
"
$.19~:r II 00
$lc::.(:.:. h 00
'~;.L09" 00
$1,51.. :Z;;
J.. "Fi6 :;
~;" J"O ill
"
"
"
~;;l/::~6.. 00
~.1. 6::;.. ()O
~;2L':" ()O
"
"
"
"
i~1'7'7" :.i()
':i:..1~!c'-:.'.. 00
~~; h ~:lU l
2,,:J.. .'"
Ii
"
$. 99" 00
"
"
~~~ J" ij. 6 h ~::':'~~.5
"
"
$1~~:;'7" 00
!1
"
~~.:L ::::;U "U() I
"
"
~t;.~:"20I.l11 (.10
"
Yr:.:'~.:::i.r'
."1.98::::;
J.. C?<3:::
1981
1980
1.979
!'1obi IE'
r:' Ei lr' k.
~:3 e q U.O i .~::'1. F' 1 .:':':i. Z ,'~~.
F;~CJ~.,.' .:,,1 Y D r- k
Nintl'l ~3t."
?-""i c: E:1. c:: :.L .:::t. 1.'./.i:L 1 if:'!.
F'E)PPE'!I" \'!:i..1IEt
T r"up:.i.. c: .:3.nC':i,
F:~.;':\ :::;E.:
F:(.?,..,t
'* .1>1:5" 00
$..1. ~~;(:) " OCt
$. Ei6" ()O
:1:. :1. 2'/ " :,~;~ ~.:;
;j'11'7,,2~:.
$:Ll:::-:":"O()
Rancho Meridian $171,,00
HE~q L1.C! 5. a. F:' 1 E~. :.:~ a.
'$ J.. :?t:3 .. ()O
F:~oyal Yor'k $126 " (:)()
Ninth St" $ 77,,00
Ac:acia Vill.a $117,,5()
Pepper Vi.l.J.a $J..()4,,75
Tr'opicana $105,,()()
Rancho Meri.c!i.an $157,,00
~:3equ.oi.a Pl.:::\z.:::i
H C) ...,.., c:i. 1 "'y' [) l.-j..:.
!\j :i.. II t. h f.::; t ..
(.ic <,;,.c 1. .,.". \/ i 11.,,'.
PE'PPE'I'- <.j :)..11 ",'
T l"'M 0 p.i C ':::).n C'.
F',a.r1cho \,"!E'I'"'idian
'Sequoia PI;;;,.;;::"".
HO',/'3.1 \/Dr"k
Ninth f3t"
Ac .:':),c.i a tV.I1. 11.:":"1.
F'E'PPE'J'" Villa
T:....Dpic.::.:.i.na
F;."".nc: ho !'-!E,I'- :).. d i an
~3E,qU.oi"", F'la.2i:\
F< CJ ':./3 1 Yo r" k.
I\I1.nt.h St"
A c: {i:). c:: :i.. .:;i. \l i 1 1. .:::'1.
F:'eppel''' I.) i 118.
Tl'opic::a.n"",
p,,\I".,cho 11E~J"'i.d.i..a.1"1
'~;.l.t311 O()
$l.l:?"UO
'$ 70" O()
'~:'.l()::j" 00
;t; 8'7'" 7::'
$ 9E3 n ()O
$1.4() " 00
'$101.,,00
$, 97" 00
'$ 6:~;; II ()O
$. 99 II 3()
$ 75,,75
$. 88.. 00
$.125.0()
$ 92,,00
$ i38.00
$ ~5~:; II O()
;t; 8~',.30
$. f:.) 7 " :::.~ ~.j
$ '75,,00
~~..l.10 n O()
F'E:~ r-c erE t
I !"iC !'-eE'.se
F'aqE.\ :~2 D1~ :?
1'ota:l MOll: Sac::" See" 6!)% for
F'dyment : CPI Inc!". HC)u~',.:i.I"lCJ
.l()tl/~.Cf
.---------.--------.--------:--
7 n 5~5 I
:3 II d1. .....
':.7" f3 ::; '"
d" :31 /..
:.3 " ::; 6 ~.{,
;:::~ " 1. f~ I"
1..1.." 72 'Y
7' ..90 .....
1.1. ,,6"'; ;{,
t~: ,,~:;O ~l~
1. J.. ,,'~i::::; '?~
b"b'7' /.
8" Ci 1. ,.
l::~;" ?/ ;..
.'.1..2 ,,~j() .in
1.0" ()() ';.;
1.1.0"'/ 'i;
J..,~'j" 7.1.. '"
7.14 /.
1.2.. J4 In
1.1.:=.m ;;
15.46 ,.
1.1.11 ,,,
:'" 74 %
1f:3,,48 I
.11 . ~';6 I.
12,,()O i~
9" 78 /.,
1 () ,,:?::~; ~~
14" 5~; ,,,
16.41. ..
:1.2,,6,,:':1. ill
.1. 7 .. ~::;~::. :<.
1:S. 6~';,,,
~t~ J.. ~:5H ,,00 1
$.J..4(;." 00
$ 9l,,()U
$l:~:":.l,,:::rO I
~:;J..2'/' "O()
$..11E~"OO I
'$ :L l=3 ~.:.:.' " () 0
$.14:3" o()
'$.:1.:2::611 ()O
~:. f~6~. 00
~:. 1. ~;? 7 " ~':'~ 5
$J..17,,~:2~5
~:.J.. J..:? II 00 '
$1'71,,0() ,
$l28"OU
$.l:'~'~6" ()O
;t. "77" ()O
~;117u~jO 1
$.J..OLj. II )"::1
$1.0:.:'" 00
~.1~:;7" 00
$.11.::~; II 01:)
~;11~~'::" 00
'$ '70" O() 1
$.10~5" 00
$ f39.. 7 ~5
$. (?b.. U()
$.1.40" ()()
~:.lOl n 00
$. 97" O() 1
'$ t.:j:~: ,,00 I
$ '?9" ~::;o
$ 7 ~:.', " "7 ~:'
$. Bf:"3" O()
$, 1. ::~ ~.;.~ .. () ()
7" ll.O ~;;,
"
"
H
7 ".~+(J :;,
"
"
"
"
"
1.1 ,,::'~O :':
"
"
"
"
.1.A"~;O ,,,
H
"
"
"
cp ,,90 ~~
"
it
"
i.j. "il4 ~/~
"
"
"
4 . 4ll Z
"
"
"
"
'~J .. 72 :<,
"
"
"
"
"
f.3" 5d I
"
"
"
"
"
~.:.;.:1 "c/"q. ~<,
"
"
"
"
_______.._____.___________._.._________._..______..__________________t__M____________________
,
Ti::J1'I-;I_.
TEI'~
YE;C\F:
Sequoi.a. F'1.::\'Z.i.:\
r':;.~UYE:\:L YD I'"" 1::.
Ninth St.,
(::::'C.:3.c::i..:3. V.i.ll.=l
PepPf:)I'.. 'Villi,,,
~,.. .
11"'OplC:Ei.na.
F~ .:~.ll c: h C) t....! f.-:' 1"'" .i. cl i s. n
159115~5 I~
1.25..00 I
:L6Cf,,()'? JII
1 .1. :':'~ II 1. 9 ,,,
167u6~j ~/~
1. B \~::I II ,~-,,)' ill
1. .q.8 .. OLI. i;,
+$146. 'lei
+$1..1"0,, ()O
+ -:t~. (~.i :~:: " () 0
+$ C:}~.' II 70 j
+$,11:Z,,!~j ,
+$1.40.00
+$ .1..6:~~. :'3::.
6,:~ .. :30 /~
"
"
ii
"
.:::; 9 to ./ ;=~ i~
!i
"
"
"
"
//
,/"
Dlma
WESTERN MOBILEHOME ASSOCIATION
Representing California Mabilehome rark Owners and Operators Since /945
September 7, 1989
Honorable W.R. Holcomb, ~ayor ~
Honorable Esther Estrada, Councilmember
-Honorable Jack Reilly, Councilmember
Honorable Jess Flores, Councilmember
Honorable Michael Maudsley, Councilmember
Honorable Tom Minor, Councilmember
Honorable Valerie Pope-Ludlam, Councilmember
Honorable Norine Miller, Councilmember
City of San Bernardino
City Hall, 300 North D Street
San Bernardino, CA 92418
Re: Parkowner Committee Members, Ad Hoc Committee
Dear Mayor and Members of the Common Council:
On behalf of the San Bernardino Parkowners Association, I wish to express
appreciation for accepting our proposal as guidelines for future negotia-
tions to resolve the mobilehome rent issues.
The parkowners have always been willing to sit down with you and your statf
to discuss alternatives to rent control, notably with the Communications
Task Force, and we will continue to do so.
Because of the nature of this business, parkowners rely on mobilehome
industry professionals to assist them in the operation of their business and
political representation. These professionals include property managers and
trade association representatives. They do so because these professionals
are exposed to the dynamics of the business -- individual parkowners are
sometimes isolated from others because their business is time-consuming.
In San Bernardino, parkowners have relied on property managers and myself to
represent them in all areas of negotiation with the City. property managers
have power-of-attorney status with full control of park operations. When
you sit down with a property manager, like Richard Elias or Bill Hanks, you
can be assured that he has the full faith and confidence and authority of
his parkowner client. parkowners have entrusted me with the authority to
speak on their behalf for the last three years; the council has recognized
me as a credible representative, a trust that I will not violate.
For these. reasons ~..th1'1iLtil,t'''ft....e .;,na.ia.r.~d';lqai.L1r i,ne t:.h~ ~~:.,
representil't':tv..~ the Hoc Commi tte~ free from tenant meddling It is
their rl'l1ht t"O".:::eho''()se who will speak and negotiate on their behalf. When
the Ad Hoc Committee meets on September 23, parkowners will be represented
by two parkowners, two property managers and myself (a non-attorney) --
virtually the same team you have been dealing with these past three years.
We will retain counsel and reserve the right to have counsel attend meetings
with us.
Thank you for your consideration of this matter.
SinCerelY~
C~g~ ~
Re~:~ Director
REGIONAl OFFICE 3773 Tibbetts Stlee! Suite B · Riverside, C;'. 92506 · 1714) 684.9300
.H~
~~v-~l-l~~~ 1~:1~ ~~uM RGEE~I~. jHGj~L~U
TO
16193471746 P,01
'.
.
..
:',:'
, -
:'::
..."... .
IIlo. ~ ..,'..
, .'
,.
..
"
....... '..
...: .,',
.'..<
'.
ROBERT J. JAGIELLO
At'torney at' Lay
1847 Comaereenter w.
San Bernardino, CA ~2401
(714) 888-9804
J'AX (714) '88~';-e7(.L
DAD: jl/I/rl
,.. .
.J'ROK: '.;,. r;/~ l'AX NO~
CLIENT HAME: 4~~.~/)~ ~A
followinq -LL- paqe. (which include.'this
I
. '.
. :.
Please deliver the
.: " .,:cover le't1:er)' to:
. ~'t:'i.:..\~.':/~. ..... :
. '.' ..... :~~:: ... '
HAD:J;'~Z~ I'. 4.~J~
~I , - ~V"" "1'7~1.
PAX HO:
CONP'IlUIATION NO:
AS SOON AS POSSIBLE.
THANK you.
COMMBHTS:
" '
'. \ ~
;'.
. t'
;J
"~'" .
.<,'. ~"...;:'., .
. I..,.'
'. ,;'\'~"...
...~..,-{ ...
: '.> '
. .
" .
'0 "
t, at ..
..'~4"
NOV-01-1989 12:18 FROM
ROBERT ], JRGIELLO
,- ',""
~
TO
IR''''
16133.<'7 j, 745
, . \ It' l~
?02
(~,
CltAJIIIZ.S A. I'MWDZlK
,,.'80 Temple Lane. !'aim DeMrt. c.l1fom1a '2280
(81Sl) ~77 (619) ~ 4301
~
A ProIuaIon.I CorpcntJon
~~. at Law
September 29, 1989
Robert J. Jaqiello, Esq.
1847 Commercenter West
San Bernardino, CA 92408
Dear Hr. Jagiello:
Enclosed is a "Draft" Memorandum concerninq an alternative to a
Rent Control Ordinance for the City of San Bernardino. This Draft
Memorandum is not intended as a proposal from the mobilehome
resident.; rather, it is a first attempt at placinq objective
standards into the discussions that have preceded this attempt.
The Draft Memorandum attempts to address the "key" i.au.. of our
discullions:
Voluntary controls on rent.
Automatic rent increaaes.
Extraordinary (hardship) pass-throuqhs.
Resale of mobilehomes.
Transfer of leasehold intereltl.
Vacancy de-control.
Ombudsman.
Financing of ombudsman program.
To expedite exchange of this substantive material, I have omitted
extensive language addressing key items such as: definitions;
"CPl" basis and formulae; Park rules and regulations; extensions
of the leas.s; non-participating landlords; failure to maintain;
etc. These items can be added at a later time when the "key"
issues are aqreed between landlord/tenant. I do not expect these
unaddressed issues to be our stumbling block.
If we can have a 'meeting of the minds' between Landlord and
Tenant. on the key issues, it would take just two to three day. to
formalize a document including the remaining minor items. Please
comment on the submitted ~Dratt" memorandum. I will appreciate
your input.
CAP:pap
Incl.
Very tru~ur.,
~~~Id!/
Charle. A. /p~
j'1UV-'tJ~
~~C~~, ~, JHG1ElLO
TO
.0...='-......'.1....0
1.-23
CITY OP SAN BERNlo ~DrNO T .loNOLORD-TENANT MEMORANDUM
LllIDIDRD aqr.e. to .~end or offer to each RESIDENT wi thin
the Mobileho.e Park a Rental Aqreement for a minimum per iOd ot
five (5) years who.. terms and conditions shall contain the
tollowinq terms and conditions:
I. TERII OP REHTAr. ACRR~
The tenancy created under the Rental Aqree.ent shall be tor
a period of five (5) year. commencinq on ,
1990, and continuinq for a continuous period of sixty (60) months
unle.. terminated sooner in accordance with the terms of this
Memorandum.
II. BASE RENT
The initial Ba.e Rent shall be the rent in ettect for the
specific mobilehome space within the Park that was assessed for
the month of January, 1989.
1:>ac-.~/,J \Ii~~
III. AtJ'TODTIC an.ms'l'MEN'l'S TO BASE REHTS
Monthly rental rates may be increased on January of each
year by one hundred percent (lOOt) ot the annual percentage
chanqe in the Consumer price. Index published by the Bureau of
Labor Statistic. (as more tully described under Detinitions).
? k ), A ten percent (lot) increase in rents, over and above that
.
already provided fOr, shall be permissible at the Landlord I s
option once every four (4) years.
1
l'4UV-"-lJ. -.. :f~;"
...~ --
0~O~~, ., ~MGIELLO
TO
16193471746
P,04
In the event that any given park i_ currently below market
levels, the park owner, in addition to any rental increases
provided tor herein, may raise the rent by an additional ten
percent (lOt> annually until market parity is achieved, or until
five years have passed, Wb.ichever is sooner. Whether market
parity has been achieved is a matter which will be determined by
the ombudsman as set forth more fully below.
IV. ADDrTl;()1fAL An:nJS'.l'IfRNI1ta TO BASE RKNTS
The LANDLORD may increa.e the monthly Base Rent as provided
for as follows:
A. For Increased Coat a to Park for Prooertv Taxes.
The increase to the base monthly rent shall equal the amount that
property taxes are increased over those property taxes paid by
the Park during the twelve (12) month periOd immediately
preceding date the rent is adjusted, divided by twelve (12) and
prorated among the number of spaces in the Park. The term
property taxes are all general and special real estate taxes,
personal property taxes, bonds, fees, charges, and surcharges and
assessments, inoludinq any taxes, assessments, or charqes on
offsite or onsit. improvement. or in lieu of real property taxes.
property taxes also include any tax or excise on rents or any
other tax however described which i. levied or assessed against
the Park as a direot substitution in whole or in part for any
real property taxes. Increased real property taxes resul tinq
from the sale of the Park shall ngt be inClUded in the above.
2
NOV-01-1SEl'=' l~'.l.::l ",,,,u,'! t'<ul:lb-d J, JAGIElLO
TO
lb193471746
P,85
B.
For Increaaed Cost of Gova~ental Reau~r8d
Services or CaDita! ImDroVemen~s. These costs will be Computed
by takinq the total cost of all qovernmental required services as
defined below On an item by it~ basis for the twelve (12) month
period preceding the month in Which the current rent increase i.
qiven to Tenant and comparinq those costs to the COsts tor each
item durinq the immediatel~ precedinq twelve (12) month period.
If the cost increase tor a particular i tam i. more than the
amOUnt paid in any preceding year, the ba.e monthly rent then in
ettect shall be increased by the amount ot all such increased
co.ts, divided by twelve (12) and prorated amonq the n\1Jllbcr of
spaces in the park. Government required services and co.ts are
detined as any eXistinq or new, additional or chanqe<l service. or
charqes incurred which we are required by government to provide
or do provide to Tenants, and' include. taxes (but excludes
personal income tax of owner.), and oosts, fees, bonds,
assessments, insurance charqes or other costs and expense. for
water, sewer, trash pick up and trash bin rental and utiliti..
provided by Landlord. This term include. services provided by
private parties and quasi-governmental entities as well a.
governmental enti ties. The cost ot providing Tenant. any new,
additional or chanqed government required .ervice or cost will be
included in computing increa.es in the cost of these services.
One-time pass through expenses will not be subject to CPI
increases.
C. For Increased Co.ts to Park for the park',
3
NOV-01-1989 1,,; ,,\() r"t'<ul'i ROBERT J, JRGIELLO
TO
16193471';'46
p.06
.
.
Insuranoe. These inc~eased cost. will be computed by takinq the
total premium paid fer the Park I s insurance for the twelve (12)
month period precedinq the month in which the current rent
increa.e notice i. qiven to Tenant and comparinq those to the
premium paid durinq the immediately precedinq twelve (12) month
periocl. It the amount of the premium i. more than the amount
paid in the precedinq year, the base monthly rent in effect Shall
be increased by the amount of the increase, divided by twelve
(12) and prorated amonq the number of space. in the Park.
D. For Canital Renlaoements and uninsured Losse.
Inourred hv Park. Capital expenditures are defined in two
categories for clarity's sake. Capi tal replacement/uninsured
loses is referred to as replacement ot any axistina thing or item
in the Park. Capital improveJUents refer to anything or item
which is ~ and not before Qxistinq in the Park. Capital
improvements will DQt he passed through to the Tenants unless the
Tenants request that the Park make such capital improvement and a
majority of the Tenants aqrees to the pas. throuqh. The "co.t"
of uninsured losses or oapital replacements shall consist of the
actual cost by the Park to make such replacement, including leqal
and enqineering fees relating to said replacemant, plus all
interest, points and other costs and charqes related to the
horrowing of any sums durin9 the period of construction or
installation. The amount that the base rent shall be increased
will equal the prorata (based upon the number of spaces in the
park) cost (whioh oost is incurred 4urinq the twelve (12) month
4
NQV-01-1989 12:20 FROM ROBERT J, JAGIELLO
16193471746
P,07
TO
period immediately preceding the Anniversary Date) Of the
replacement or 10S8, and for all replacements, amortized OVer the
useful lite ot the replacement as set forth in the Internal
Revenue Code or Requlations or, in the absence of such IRS
quidelines, to be amortized over a three (3) year period.
Notwithstandinq anything contained in this sub-paragraph to the
contrary, the percent increase to the sase Rent for the uninsured
losses/capital replacements, shall not exceed ten percent (lot)
ot the then-current tor anyone rent adjustment: provided,
however, that in no event shall the increase be less than the
amount required to tully amortize the cost of replacQent/lo..
over six (6) years.
E. Capital Re.erves.
F. For all Other Exnense. 1fJlich Exceed the Prior
Year's EXDen.e for the Same Cateaorv of Exnense:
The increased expenses will be computed by takinq the total
of such increases tor any qi ven cat890ry of expense tor the
twelve (12) period preceedinq the month in which the current rent
increase is qiven to the Tenant and comparinq those costs to the
cost for each cateqory durinq the i=mediately preceedinq twelve
(12) month period.
If the cost increase for a particular
cateqory of expense is more than the amount paid in any
preceedinq year, the base monthly rent then in effect shall be
increased by the amount of all such increased costs, divided by
twelve (12) and prorated among the number of spaces in the Park.
/ / / I /
5
.
,if!~"':
NUV-~.l.-.l.::;lcf:;l .l.~;d r-"':Uf'1 i<:uBEf';T J. J~IELLO
TO
15193471746
P.08
v.
Af.TENAJlIL1:TY 0,. f.1rBSlts:
The
1n~eres~
RBSIDBNT shall be alloltec1
to a 8Ub..quen~ PUrchaser a.
A.
to transter hi. leaSehold
tollows:
The ~ental Called
for Under the
Lea.. Shall ~
Increased to Market Levels. the s~.citi; Amount Thereof to ba
Determined at the Lsndlord's Ciscration.
B. The POllowina PrOVisions of the Lease Shall b.
A~~licable Onlv to Those ~esid.nts CUrrent Iv in Occu~ancv at the
Time That This Memorandum ic Executed:
1. The tenant shall be guaranteec1 a cales price
equal to the purchase price paid by the r..ident, ..id cal..
price to be adjusted upward tor intlation and downward tor
depr.ciation. Add.d to the sal.. pric. ahall be the cost of any
amenities added to the ~obilehome similarly adjusted for
inna~ion and appreciation.
2. The purcha.e and sales price ot any ~iven
mobilehome shall be documented by the tenant and said
documentation shall be provided ' by the resident, and said
documentation shall be provided to the LandIot"d.
3 . In the event that the Landlord disputes the
amount of the oriqinal purchase price, an appraiser will be
appointed to determine its value at the time ot purchase, and
said appraiser will have the power to make a binding
determination as to the reasonableness ot the ori~inal purchase
price.
4. To the extent that the Resident receives less
6
"~Gv-~~-l;,o= 1.::;':'1 r-r<I..A1 ,",wct:.:'(i _, .i':'Cl,E'-LO
16: 334'71746
TO
P,0g
than the Bum
callecl tor in the above paraqraphs,l the Clitterenee
equally and jOintly by the Park Owner in question
will be paid.
and the City.
5. This provi.ion applies only it the tenant is
selling the coach as oPPosed to an heir or succes.or in interest
of the Resident .ellinq the coach.
6. In the event ot a recession or depres.ion in
the mobilehome market, the exist.ence ot which will be det.ermined
by the Ombudsman, whose tunction iB to be more fully set. forth
below, none of the above provisions binding the Landlord and the
city to pay the difference between the actual sales price and the
purchase price as calculated above will apply.
C. If The Landlord. Aqrees t.o Buv t.he Mobilehome From
t.he pre.ent Resident at the Same Sal.s Price as Offered bv the
Prosnect.ive Buver. Said sale must be consummated within ten (10)
days of the option oftered to the Landlord. Upon completion of
the sale of the mobil.home to the Landlord, the Landlord can
adjust the Base Rent to any level at his option.
VI . EXISTING T.1l!~ED SPACI!!:
All epaces which are under leases at t.he time of the
execut.ion of this Memorandum are not. covered by this Memorandum.
VIZ. OKBtlI)SJIAH
1. LandlOrd and Residents agree to establish an
ombudsman Committee composed ot Tenant representation, Park OWner
7
oIHU!t:.Ll.O
.I.0.l.:l..,j....r...,46
TO
F.10
..
representation, and a representative appointed by the City. The
ombudsman shall be vested with the powers of binding arbitration
in reqard to the fOllowinqz
A. Problems related to maintenance of the Park
and the general "quality-of-lite" within the park.
B. The existence of a recession or depression in
the mobilehome resale market.
C. A determination of market parity in those
cases where the park owner Claims that rent levels at the time of
the execution of tM,s memorandum were below market levels.
~. Financina of OmbUdsmAn. The Landlord agrees that
5' ot the annual percentage chang_ in the Consumer Prioe Index
(see Article III hereinabove) which is applied to the annual
increase in Base Rent ot Residents shall be paid into the
Ombudsman Fund. For example:
-----If Base Rental is $2S0.00/month,
-----If cpr percentaqe increase is 6', then:
Base rental fee is increased by:
6' X $250.00 · $IS.OO/month (inc. Ombudsman)
5% X 6' X $250.00 · 75 cents for Ombudsman
New Base Rent will be .............$265.00/month/space
Landlord must pay to Ombudsman.....$ OO.75/month/space
Landlord's ~ Base Rental.........$264.25/month/space
(If there are 4,000 mobilehome spaces in the City, then
$3,000 per month ($ .75/space X 4,000 spaces) will be funded to
the Ombudsman after the first year under the above example).
8
_... . ...-*--
,;-,
.;..=...:::-'....I~,...'::
r- . ~.:.
In the event further funding i. needed to fund the
activities of the ombudsman, the City will provide the necessary
fundinq.
VIII. b.m:
This agreement is meant to last four years and will then
terminate by its own terms, unle.., after review, the parties
agree to continue the Aqreement.
IX. Effect of A9reemeQt:
If the Landlord offers a lea.e containing the above terms to
a re.ident, the space occupied by .aid Tenant shall be tree from
any rent control ordinance passed by the city of San Bernardino.
9
.
LAW OFFICES OF
ROBERT J, JAGIELlO
& ASSOCIATES
505 NORTH ARROWHEAD AVENUE, SUITE 500
SAN BERNARDINO, CALIFORNIA 92401
(714) 888-9804 FAX (714) 885-4574
November 29, 1989
CHARLES A. PRAWDZIK
75-780 Temple Lane
Palm Desert, CA 92260
JERRY BUTLER, on Behalf
of city Council Members
Re: City of San Bernardino,
Landlord-Tenant Memorandum
The following comments reflect the park owners' position with
respect to the above agreement. These comments are made to
reflect the differences that exist between the park owners'
position and that of the tenants.
Those paragraphs in which the parties concur are not addressed
herein.
I. Concurrence
II. Initial base rent, January, 1989.
III. That monthly rents be increased on the anniversary
date of each year by 100 percent of the C.P.I., with a two
percent increase in rents annually over and above that otherwise
provided for.
That the provision regarding adjustments for those parks with
below market levels be carried forward exactly in its present
form, with the addition that any challenge to the decision shall
be paid by the challenger, and shall be made within the rules and
procedures established by the American Arbitration Association.
IV. Paragraphs A, B, C, D, concurrence.
E. Eliminated.
F. To be included in its present form.
V. Subparagraph A that the 24 month period set forth
therein control. Otherwise, concurrence.
Charles A. PrawkzikjJerry Butler
November 29, 1989
Page Two
VI. To stand in its present form, that leases
presently in effect remain in effect.
VII. General concurrence, however, the funding for the
Ombudsman shall be as set forth in the draft.
Any shortfall in the funding of the Ombudsman
should be provided by the city.
In the event the Ombudsman procedure is not
employed, then the quality of life issues be resolved before the
American Arbitration Association and the person seeking
arbitration pays therefore.
VIII.
Five years is agreed upon.
IX. That the parties be left to the usual remedies at
law for any breach of the agreement.
Respectfully submitted,
~~
Attorney f~g~;~Oowners
RJJjkc
'"
(~,
CHARLES A PRAWDZIK
75-780 Temple Lane, Palm Desert California 92260
(619) 345-3677 (619) 345-4307
A Professional Corporation
Attorneys at Law
November 24, 1989
TO: Robert J. Jagiello, Esq.
Jerry Butler for Council Members of Comm.
Tenants' Representative
Reference: CITY OF SAN BERNARDINO
LANDLORD-TENANT RELATIONSHIP
The following comments reflect the tenants' position with respect
to the above "Agreement." These comments are made to reflect the
differe:1ces that exist between the landlords' position and the
tenants'. Since these differences represent the substantive
issues, input from the Council Members is requested so as to guide
the overall Committee in an effort to resolve these differences.
Those paragraphs in which the parties concur are not addressed
herein. Please consult or refer to the draft memorandum itself for
a complete description of the subject matter.
I. General Concurrence.
II. Initial Base Rent
- December 31, 1988.
III. Tenants recommend the following formula for automatic
increases (annually):
75% of CPI Dlus $4.00*
*$2.00 of this amount contributed to Ombudsman to finance
the Ombudsman program.
IV. ParaQraphS A, B, C, D: Concurrence.
E. Undefined.
F. Eliminated.
v. General Concurrence.
,,c;
M
CHARLES A PRAWDZIK
Attorneys at Law
To: Robert J. Jagiello, Esq.
Jerry Butler for Council Members of Comm.
Tenants' Representative
Reference: City of San Bernardino
Landlord-Tenant Relationship
Page 2
November 24, 1989
VI. Recommend tht the existing leases be rescinded in favor
of this Agreement.
VII. General concurrence, except that the tenants recommend
funding as stated in Article III ($2.00/mo./space). This would
produce an Ombudsman fund of approximately $96,000 ($2.00 X 4,000
spaces X 12 months) provided that all 4,000 spaces are covered by
this Agreement.
Tenants would consider alternate sources of funding the
Ombudsman. However, the Ombudsman program is essential to the
tenants for the reasons and purposes of creating this entity.
VIII.Recommend a 5-year term - renewable upon satisfactory
performance.
IX. Concurrence.
Tenants recommend the addition of an enforcement paragraph in the
Agreement. For example, a breach of the Agreement can be enforced
by the City Attorney's office.
Dated: November~, 1989
Respectfully Submitted,
cha&1~~
Attorney for Tenant Representatives
(714) 888-Q804
LAW OFFICES OF
ROBERT J. JAGIELLD
& ASSOCIATES
FAX (714) 885-4574
505 NORTH ARROWHEAD AVENUE, SUITE 500
SAN BERNARDINO, CALIFORNIA 92401
FED 1 2 '
I.'
February 8, 1990
MAYOR W.R. HOLCOMB
COUNCILMAN JESS FLORES
COUNCILMAN MIKE MAUDSLEY
COUNCILWOMAN NORINE MILLER
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92401
Dear Mayor and City Council Members:
.
It appears that the tenant representatives, at the prompting and
urging and Ralph Hernandez and Marvin T. Sawyer, have abandoned
the negotiation process through adopting dilatory tactics solely
for the purpose of delay.
This negotiation period was purchased at great cost to the park
owners in the nature of a complete freeze on rents which is
unconstitutional, deprives us of the opportunity of earning a
fair return on the value of our property, and will be the subject
of litigation in the immediate future.
It is regrettable that after all of these months of forbearance
and good faith bargaining on behalf of the park owners in an
effort to avoid city exposure to civil liability, as well as a
dist0rtlo,n uf tlH:~ JUCli.-ke::t. for ;-ucbilahvwet;! thut. ~ fo....... dissid~~t
tenants and recalcitrant advisors have achieved their purpose of
stymieing the collective efforts of all who participated in the
negotiation process.
We believe that the present posture of the tenant
representatives, and the input they are receiving, demonstrates
beyond doubt that their sole objective remains the passage of a
rent control law at all costs regardless of the burdens that it
places upon their fellow taxpayers who do not enjoy the same ease
of access to city decision makers as this well entrenched special
interest group.
/
C
J(o
Mayor Holcomb and City Council Members
2-8-90
Page Two
We have done our best. We can do no more. Please be advised
that unless there is an immediate cessation of the ban on rent
increases, an action will be filed in both state and Federal
court urging taking and due process claims and seeking
appropriate damages.
Very truly yours,
e::;)z:
RJJ/kc
.
.
, t"
,
CITY OF SAN BERNARDINO
MOBILE HOME TASK FORCE
'1
))~ 1)~
~
Position of Mayor and Council Committee
on the Mobile Home Agreement of
November 24, 1989
The following comments reflect the position of the Mayor and
Council Committee after having evaluated the positions of the
Mobile Home Park Owners and the Mobile Home Owners.
Those paragraphs in which both parties concur are not
addressed herein.
I Concurrence
II Initial Base Rent -- December 31, 1988.
This had been agreed to by all parties. Unless there
is a strong argument against this position, we would
suggest it remain at this date.
III The following Formula for automatic annual increases
be used:
A.
Monthly rents be increased on
date of each year by 85% of
$4.00. That $1.00 of the $4.00
finance the ombudsman program.
the anniversary
the C.P.I. plus
be contributed to
B. That a cap of 10% be placed on the C.P.I., so
that rents never have more than a 10% increase in
any given year.
IV Paragraphs A, B, C and D, Concurrence.
E. Eliminated.
F.
That this paragraph is
and clarification.
requests more specific
any determination.
still open for discussion
The Council Committee
suggestions before making
V
The Mayor
discussion
made.
and Council Committee requests more
about this paragraph before a decision is
VI
The City recognizes that it is not in a position to
force those in valid leases to abrogate them. It
would be dependent on the good faith support of the
parks as was expressed by Mrs. Anderson and Mr.
Duckworth to obtain the financial support for the
ombudsman.
"-r
(
~.
.t1
MOBILE HOME TASK FORCE
Position of the Mayor & Council Committee
VII
Th~ity would
$4.00 above the
the ombudsman.
covered by these
request that $l.OO per month of the
C.P.I. would be paid to help finance
Any expenses of the ombudsman, not
funds, would be covered by the City.
VIII
Concurrence.
IX
The Mayor and Council Committee are of the position
that there is a need for more power of enforcement in
the ombudsman position; however, rather than taking an
arbitrary position on this matter, they would request
more discussion from all parties as to the best way to
accomplish this.
Some thoughts as to how enforcement could take place:
1. Each park would need a Certificate of Occupancy from
the City of San Bernardino. Attached to this
certificate could be certain criteria.
2. If the parks failed to meet all the code requirements
and would be considered an unsafe park, that all rents
would be paid to the ombudsman, and only those funds
necessary for the operation of the park would be
released from the rents until such a time as the
problem or problems were satisfactorily corrected.
p
/j )1
/r
Fr
EXHIBIT "A"
An Agreement exempt from Section 3.02 (Space Rent Ceiling
Adjustment - Annual Adjustments) of the San Bernardino Rent Control
Ordinance ) mJ.lll contain the following essential terms:
A. The Agreement ~ accept the terms and conditions of
the Rent Control Ordinance in every respect exceot as to Section
3.02.
B. The ~ of the Agreement must be for a period of five
years.
C. ~ REBT must be the actual rent in effect on December
31, 1988. The Base Rent may be "permissively" adjusted pursuant
to the terms of the Ordinance.
D. RElIT ADJUSTMElITS (Annually)
1. Rental increases may not exceed the following
formula:
8S% of latest annual CPI change + $4.00
Maximum change in any .one year:
11
( This maximum
increase includes the CPI increase plus $4.00.)
2. Additional adjustments may be provided upon
approval of Ombudsman; but only for extraordinary expenses outside
the dominion or control of the landlord.
Such extraordinary
expenses include: Government-mandated expenditures; Acts of God
or nature, unexpected or predicted; Government-imposed taxes; Large
increases in insurance rates; if 51% of the Residents in the Park
approve of the expenditure.
E. VACANCY DECONTROL (For Existing Residents)
,'2 tj
During the first ~ months of the Agreement, the terms of the
Agreement are transferrable to a successor (purchaser) without any
J,
,
111
adjustment in base rent.
J'
During the final ~ months of the Agreement, the landlord may
increase the base rent at landlord's discretion.
However, the
landlord must ouarantee the purchase price of the existing
residents' mobilehome under the following terms:
Purchase price of the mobilehome paid by the
resident, adjusted upward for inflation and
downward for depreciation, added thereto the
cost of appurtenances and amenities added by
resident. The use of an independent appraiser
may be used to obtain value of mobilehome.
The Ombudsman will act as final arbitrator in
the event of a disagreement between landlord
and resident.
.,
APPROVED RENTAL AGREEMENT - CITY OF SAIl BERBARDIHO
- - FOR - -
MOBILEBOME PARKS
("PARK" )
Space t
MOB I LEBOMEPARK
RESIDER'l ("TElIAHT")
EFFECTIVE DATE
1. EXEMPTIOH: This Agreement shall be exempt from Section
~, SPACE RENT CEILIHG ADJUSTMENT-AHIIUAL ADJUSTMENTS, of the Rent
Control Ordinance (t ) of the City of San Bernardino.
All other provisions of the Ordinance shall be applicable in the
enforcement of this Agreement.
2. PARTIES: This Agreement is entered into between
(PARK) and
("RESIDENT" or "TENANT") on the
above date shown.
3. TERM: The tenancy created under the Rental Agreement
shall be for a period of five (5) years commencing on
1990, and continuing for a continuous period of sixty (60) months
unless terminated sooner in accordance with the terms of this
Memorandum.
4. BASE RENT: The initial Base Rent shall be the rent in
effect for the specific mobilehome space within the Park that was
assessed for the month of December 31, 1988.
5.
AUTOMATIC ADJUSTMEHTS TO BASE REHTS:
Monthly rental
rates may be increased on
of each successive year by
eighty-five percent (85%) of the annual percentage change in the
Consumer Price Index (CPI) published by the Bureau of Labor
1
Statistics, plus four dollars ($4.00). In no even~, however, shall
~he annual adjustmen~ (percen~age of CPI ~imes base ren~ plus
$4.00) exceed seven percen~ (11) of ~he base ren~.
6. ADDITIORAL ADJUSTMERTS TO BASE RERTS: In extraordinary
circumstances, and upon the consent of the Ombudsman, the Landlord
may increase the monthly Base Rent as provided for as follows:
A. For Increased Costs to Park for prooertv Taxes. The
increase to the base monthly rent shall equal the amount that.
property taxes are increased in excess of two percent (2%) over
those property taxes paid by the Park during the twelve (12) month
period immediately preceding date the rent is adjusted, divided by
twelve (12) and prorated among the number of spaces in the Park.
The term property taxes are all general and special real estate
taxes, personal property taxes, bonds, fees, charges, and sur-
charges and assessment, including any taxes, assessments, or
charges on offsite or onsite improvements or in lieu of real
property taxes. Property taxes al~o include any tax or excise on
rents or any other tax however described which is levied or
assessed against the Park as a direct substitution in whole or in
part for any real property taxes. Increased real property taxes
resulting from the sale of the Park shall not be included in the
above.
B. For Increased Cost of Governmental Reouired
Services. These costs will be computed by taking the total cost
of all governmental required services as defined below on an item
by item basis for the twelve (12) month period preceding the month
in which the current rent increase is given to Tenant and comparing
those costs to the costs for each item during the immediately
2
preceding twelve (12) month period. If the cost increase for a
particular item is more than the amount paid in any preceding year,
the base monthly rent then in effect shall be increased by the
amount of all such increased costs, divided by twelve (12) and
prorated among the number of spaces in the Park. Government
required services and costs are defined as any existing or new,
additional or changed services or charges incurred which we are
required by government to provide or do provide to Tenants, and
includes taxes (but excludes personal income tax of owners), and
costs, fees, bonds, assessments, insurance, charges or other costs
and expenses for water, sewer, trash pick up and trash bin rental
and utilities provided by Landlord. This term includes services
provided by private parties and quasi-governmental entities as well
as governmental entities. The cost of providing Tenants any new,
additional or changed government required service or cost will be
included in computing increases in the cost of these services.
One-time pass through expenses will not be subject to CPI in-
creases.
C. For Increased Costs to Park for the Park's Insur-
ance. These increased costs will be computed by taking the total
premium paid for the Park's insurance for the twelve (12) month
period preceding the month in which the current rent increase
notice is given to Tenant and comparing those to the premium paid
during the immediately preceding twelve (12) month period. If the
amount of the premium is more than the amount paid in the preceding
year, the base monthly rent in effect shall be increased by the
amount of the increase, divided by twelve (12) and prorated among
the number of spaces in the Park.
"2
D. For Caoital Re9lacements and Uninsured Losses
Incurred by Park. Capital expenditures are defined in two
categories for clarity's sake. Capital replacement/uninsured
losses is referred to as replacement of any existina thing or item
in the Park. Capital improvements refer to anything or item which
is new and not before existing in the Park. Capital improvements
will ~ be passed through to the Tenants unless the Tenants
request that the Park make such capital improvement and a majority
of the Tenants agrees to the pass through. The "cost" of uninsured
losses or capital replacements shall consist of the actual cost by
the Park to make such replacement, including legal and engineering
fees relating to said replacement, plus all interest, points and
other costs and charges related to the borrowing of any sums during
the period of construction or installation. The amount that the
base rent shall be increased will equal the prorata (based upon the
number of spaces in the Park) cost (which cost is incurred during
the twelve (12) month period immediptely preceding the Anniversary
Date) of .the replacement or loss, and for all replacements,
amortized over the useful life of the replacement as set forth in
the Internal Revenue Code or Regulations or, in the absence of such
IRS guidelines, to be amortized over a three (3) year period.
Notwi thstanding anything contained in this subparagraph to the
contrary, the percent increase to the base rent for uninsured
losses/capital replacements, shall not exceed five percent (5%) for
anyone rent adjustment; provided however, that in no event shall
the increase be less than the amount required to fully amortize the
cost of replacement/loss over eight (8) years.
A
,.
transfer
follows:
TRANSFER OF AGREEMENT: The Resident shall be allowed to
his leasehold interest to a subsequent purchaser as
A. Durina the First Thirtv (30) Months of Lease:
During the first thirty (30) months of the Lease, the Resident has
the option of terminating his lease upon sale to a buyer, or
assigning the remaining leasehold interest to the Buyer of the
mobilehome while it remains upon the premises. The Buyer will.
assume the balance of the leasehold interest with HQ changes in the
Base Rent.
B. Durina the Last Thirtv (30) Months of the Lease:
During that period of the leasehold occurring during the final
thirty (30) months thereof, the Resident cannot transfer any
existing leasehold interests to the Buyer of his mobilehome. The
Buyer is obligated to obtain approval from the Landlord as to the
execution of a new leasehold interest between Landlord and Buyer.
c. ,The Following Provisions of this Agreement Shall Be
Aoolicable Onlv to Those Residents Currently in Occuoancv at the
Time That This Memorandum is Executed:
1. The tenant shall be guaranteed a sales price
equal to the purchase price paid. by the resident, said sales price
to be adjusted upward for inflation and downward for depreciation.
Added to the sales price shall be the cost of any appurtenances and
amenities added to the mobilehome similarly adjusted for inflation
and appreciation.
2. The purchase and sales price of any given
mobilehome shall be documented by the Tenant, and said documenta-
tion shall be provided by the Resident, and said documentation
l:
shall be provided to the Landlord.
3. In the event that the Landlord disputes the
amount of the original purchase price, an appraiser will be
appointed to determine its value at the time of purchase, and said
appraiser will have the power to make a binding determination as
to the reasonableness of the original purchase price.
4. To the extent that the Resident receives less
than the sum called for in the above paragraphs, the difference
will be paid equally and jointly by the Park Owner in question and
the City.
5. This provision applies only if the Tenant is
selling the coach as opposed to an heir or successor in interest
of the Resident selling the coach.
6. In the event of a recession or depression in
the mobilehome market, the existence of which will be determined
by the Ombudsman, none of the above provisions binding the Landlord
and the City to pay the difference. between the actual sales price
and the purchase price as calculated above will apply.
D. If The Landlord Aarees to Buy the Mobilehome From
the Present Resident at the Same Sales Price as Offered by the
Prospective Buver. Said sale must be consummated within ten (10)
days of the option offered to the Landlord. Upon completion of the
sale of the mobilehome to the Landlord, the Landlord can adjust the
Base Rent to any level at his option.
8. SERVICES INCLUDED IN BASE RENT: Park shall furnish the
following utilities and services as part of the basic rent:
Water Trash Disposal
Sewer T. V. Cable
~
Clubhouse
Swimming Pool
Other:
9. SERVICES .O~ I.CLUDED I. BASIC RENT: In addition to the
,
basic rent to be paid by the Resident to Park, Resident is
obligated to pay for the following utilities:
Gas
T. V. Cable
Electricity
Trash Removal
Telephone
Other:
Resident is responsible for insuring that the mobilehome and
all appliances and equipment are compatible with the utilities
available at the Park.
, 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
/'"">
DflJt/-T
AN ORDINANCE OF THE CITY OF SAN BERNARDINO. CALIFORNIA
SBCTIOR 1.00. TITLE
This Ordinance may be cited as the Mobile Home Park Rent
Stabilization Ordinance of the City of San Bernardino, Califor-
nia.
SBCTION 1.01. 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. Additional-
ly, 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
citizens, persons on fixed income and persons of low or rnode:ate
income, exorbitant rent increases fall upon these individuals
with particular harshness. The continuing possibility of
unreaso~able space rental increases in mobile home parks
threatens to diminish the value of the investment of the mobile
1
Jttf
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
5-'-~~
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 conformity 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 n~cessary to facili-
tate 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 increases while simultaneously
recognizing and providing for the need of park owners to receive
a just and reasonable return on their property.
D. Administration of this Ordinance shall be under the
general direction of the San Bernardino OMBUDSMAN.
SECTION 1.02. APPLICATION
The provisions of this title shall apply to all mobile home
residential rental units located within the City of San Bernar-
dino except if otherwise exempt from the provisions of this
title, as such exemptions are provided for hereinafter.
SECTION 1.03. DEFINITIONS
In construing the provisions of this Ordinance, the
following definitions shall apply:
A. MLandlord" means any owner, lessor, operator or manager
1 of a mobile home park.
2 B. "Rent" means the consideration, including any bonus,
3 benefit or gratuity, demanded or received by a landlord for the
4 use and occupancy, including services and amenities, of a
5 residential rental unit.
6 C. "Residential rental unit" means any mobile home space
7 occupied by any person other than the owner of the park for
8 payment of rent pursuant to an oral or written lease, or other
9 form of rental agreement.
10 D. "Tenant" means any person entitled to occupy such
11 mobile home unit pursuant to an oral or written lease with the
12 owner thereof, or pursuant to some other rental agreement with
13 the owner, lessor, operator or manager thereof.
14 E." Consumer Price Index or C. P. I." means the Index known
15 as the "Consumer Price Index for all Urban Wage Consumers: for
16 the Los Angeles - Long Beach - Anaheim Area," (base year, 1967),
17 and if published for the San Bernardino - Riverside - Ontario
18 Area for the year 1984, and thereafter. These documents are
19 published by the united States Department of Labor Bureau of
20 Labor Statistics.
21 F. "Mobile Home" means a structure designed for human
22 habitation and for being moved on a street or highway under
23 permit pursuant to Section 35790 of the Vehicle Code. Mobile
24 home does not include a "recreational vehicle" as defined in
25 Section 799.24 of the Civil Code or a "commercial coach" as
26 defined in Section 18218 of the Health and Safety Code.
27 G. "Mobile Home Owner or Resident" means any person
28 entitled to occupy a mobile home dwelling unit pursuant to
~
1 ownership thereof or a rental or lease agreement with the owner
2 thereof.
3 H. "Mobile Home Park Owner" or "Park Owner" means the
4 owner, lessor, operator, manager or designated agent thereof of
5 a mobile home park; sometimes referred to as "owner."
6 I. "Mobile Home Space or Space- means the site within a
7 mobile home park intended, designed, or used for the location or
8 accommodation of a mobile home and any accessory structures or
9 appurtenances attached thereto or used in conjunction therewith.
10 J. "Rent Increases" means any additional rent demanded of
11 or paid by a tenant, including any reduction in housing services
12 without a corresponding reduction in the monies demanded or paid
13 for rent.
14 K. "Rental Agreement" means an agreement between a mobile
15 home park owner and tenant establishing the terms and conditions
16 of a tenancy in a mobile home park. A lease is a rental
17 agreement.
18 L. "Space Rent" means the consideration, including any
19 bonuses, benefits, or gratuities demanded or received for and in
20 connection with the use or occupancy of a mobile home space
21 within a mobile home park, or for housing services provided, and
22 security deposits, but exclusive of any amounts paid for the use
23 of the mobile home as a dwelling unit. The use or occupancy of
24 a mobi~e home space shall include the exercise of all rights and
25 privileges and the use of facilities, services and amenities
26 accruing to the residents thereof.
27 M. "Tenancy" means the right of a tenant to the use of a
28 mobile home site within a mobile home park on which to locate,
4
1 maintain, and occupy a mobile home, site improvements and
2 accessory structures; for human habitation, including the use of
3 the services and facilities of the mobile home park.
4 N. .Vacancy. means the condition deemed to have occurred
5 upon the removal of any mobile home from a mobile home park or
6 upon sale of a mobile home in place to a third party.
7
8 SECTION 1.04. E~v.MPTIORS FROM COVERAGE
9 The provisions of this Ordinance shall not apply to the
10 following:
11 A. New Soace or First Time Soace Exemotion - Space rent
12 or space rent increases for new mobile home spaces whether in
13 newly constructed parks or such spaces first rented after the
14 effective date of this Ordinance shall be exempt from the
15 provisions of this Ordinance to the extent that those rents would
16 have been controlled had the spaces been previously occupied.
17 There shall be no prospective exemption in such circumstances,
18 however, as to rents that may be increased annually under this
19 Ordinance after a space is first rented. In such cases, the base
20 date for purposes of determining permissible future rent
21 increases shall be the date of first rental or conveyance.
22 B. Vacancy Decontrol
23 1. Upon the rerenting of a rental unit which has been
24 voluntarily vacated by the previous tenant, the landlord may
25 increase the rent to any amount.
26 2. Upon the rerenting of a rental unit which has not
27 been voluntarily vacated by the previous tenant, the base rent
28 and the base rent month shall remain unchanged, and the maximum
1 rent which may be charged shall be the same as if the vacancy had
2 not occurred.
3 3. A vacancy is voluntary: if, the tenant voluntarily
4 and without coercion by the landlord vacates the rental unit; if,
5 the tenant dies and there is no surviving cohabitant; if, the
6 tenant has been evicted for non-payment of rent where the rent
7 charged was not greater than allowed by this title.
8 4. All other vacancies are involuntary. When a
9 rental unit which has been involuntarily vacated is rerented, the
10 landlord shall, not more than ten days after such rerenting, give
11 written notice to the new tenant of the base rent and the base
12 rent date of the previous tenant and that said base rent and base
13 rent date are applicable to the new tenant.
14 c. S?ace Rent Aareement Exemotion - Any rental agreement
15 in excess of twelve-months' duration which also meets all
16 criteria specified by Section 798.17 of the California Civil
17 Code, including, but not limited to, the tenant notification
18 requirement within the first paragraph of such rental agreement,
19 shall be exempt from the space rent ceiling provisions of this
20 Ordinance, but only during the term of such rental agreement or
21 one or more uninterrupted, continuous extensions thereof. If
22 such rental agreement is not extended and no new rental agreement
23 in excess of twelve-months' duration is entered into, then the
24 last rental agreement shall be the base rent for purposes of this
25 Ordinance.
26 D. Mobile Home Parks That Offer Residents The Citv-
27 Aooroved Tenancv Aareement - Section 3.00 of this Ordinance does
28 not apply to mobile home parks wherein the mobile home park owner
1 offers a Tenancy Agreement which has been previously approved by
2 the ombudsman and ratified by the City Council, and offered to
3 the mobile home owner or resident residing within such mobile
4 home park.
5
6 SEeTlOR 2.00. REGlSTRATlOR
7 Within sixty (60) calendar days after the effective date of
8 this Chapter, mobile home park owners are required to register
9 all mobile home parks and mobile home rental spaces within such
10 parks with the ombudsman.
11 The initial registration shall include: the name (s) ,
12 business address (es), business telephone number (s) of each person
13 or legal entity possessing an ownership interest in the park and
14 the nature of such interest; the number of mobile home rental
15 spaces within the park; a rent schedule reflecting space rents
16 within the park on the effective date of this Ordinance; a
17 listing of all other charges, including utilities not included
18 in space rent, paid by mobile home residents within the park and
19 the approximate amount of each such charge; and the name and
20 address to which all required notices and correspondence may be
21 sent.
22 The ombudsman is hereby empowered to require such re-
23 registration as it deems necessary.
24 No park owner shall be eligible to receive any rent ceiling
25 adjustment'as provided for under the provisions of this Chapter
26 unless such current registration as may then be required for the
27 mobile home park is on file with the ombudsman at the time the
28 petition for the rent ceiling adjustment is filed.
7
1 The registration requirements provided for in this section
2 or which may be established by the Ombudsman shall apply to all
3 mobile home parks including those exempt from the space rent
4 ceiling limitation by reason of the existence of a valid space
5 rent agreement.
6
7 SECTIOR 2.01. REGISTRATIOR FEE
8 A. At the time of initial registration or any subsequent
9 re-registration, mobile home park owners shall pay to the City
10 of San Bernardino such registration fee for each mobile home
11 rental space within the park as may be established by resolution
12 of the City Council.
13 B. If a park owner does not pay the fee provided for in
14 subsection A. above within the time period established therein,
15 a late charge shall be assessed in an amount equal to one dollar
16 ($1.00) for each mobile home rental space within the park for
17 each month or fraction thereof that such payment is delinquent.
18 C. No petition will be accepted from any park owner for
19 a space rent ceiling adjustment of any kind, no hearing or other
20 proceeding shall be scheduled or take place, and space rent
21 ceiling adjustment granted or take effect for any mobile home
22 park for which there is an unpaid registration bill.
23 D. No exemption from the space rent ceiling limitation by
24 reason of the existence of a valid space rent agreement shall be
25 effective for any mobile home park for which there is an unpaid
26 registration bill.
27 E. The registration fee provided for by this section is
28 intended to defray any reasonable and necessary costs associated
B
1 with the administration of the regulations contained in this
2 Ordinance.
3 F. The Ombudsman is hereby directed to maintain an
4 accurate accounting of all direct and indirect costs of ad-
S ministering the regulations contained in this Ordinance. The
6 Ombudsman shall submit a report to the City Council of such costs
7 and any recommendation for a change in the registration fee at
8 least annually from and after the effective date of this
9 Ordinance.
10
11 SECTIOR 2.02. SPACE Oft AGREEMEft EX1l:MPTIOR
12 A. Any mobile home park which offers and makes available
13 a space rent agreement meeting the criteria set forth below shall
14 be exempt from the space rent ceiling provisions of this
15 Ordinance for the duration of such agreement.
16 B. Space Rent Aareement Criteria An exemption as
17 provided for in subsection A. hereinabove shall be effective only
18 if the space rental agreement meets the following criteria:
19 1. The agreement between the park owner and the
20 residents thereof must establish a space rent schedule for the
21 park for a minimum period of five (5) years from the date of
22 commencement of the agreement.
23 2. The agreement need not be a formal lease or follow
24 any prescribed format, but the space rent schedule must be
25 binding upon both the park owner and residents for the duration
26 thereof. The agreement may contain such other provisions as may
27 be agreed upon by the parties thereto.
28 3. The agreement referred to herein must be approved
9
1 by the Ombudsman, with the initial agreement (for the period of
2 calendar years 1990 and 1991) adopted as Attachment "A" refer-
3 enced and incorporated herein.
4
5 SECTIOR 3.00. SPACE UR'r CEILIRG OR MAXIMUM a T.T .oWABLE SPACE UR'r
6 Beginning the first month which commences following the day
7 after the effective date of this Ordinance, no mobile home park
8 owner shall charge space rent for any mobile home space in an
9 amount greater than the space rent in effect on December 31,
10 1988. The space rent in effect on that date shall be known as
11 the" space rent ceiling."
12 If there was no space rent in effect on December 31, 1988,
13 the space rent ceiling shall be the space rent that was charged
14 on the first date that space rent was charged after December 31,
15 1988.
16 If a mobile home park is exempted from the application of
17 this Ordinance by reason of the existence of a space rent
18 agreement and this agreement expires, the space rent ceiling for
19 that park shall be the space rent in effect on the date before
20 the agreement expires.
21
22 SECTIOR 3.01. SPACE UR'r CEILING ADJUS'rMER'r - INITIAL ADJUS'rMER'r
23 A. No increase in space rent ceilings shall be permitted
24 except as provided for herein.
25 B. Permissive Adjustment - A park owner shall be entitled
26 to an initial permissive adjustment gross space rental income
27 equal to two-thirds (2/3) of the percentage increase in the
28 Consumer Price Index (CPI) from the end of the base year (1988)
1 to the date of application for the adjustment.
2 The percentage increase in the CPI shall be calculated by
3 subtracting the CPI reported for December, 1989, from the most
4 recently reported monthly CPI preceding the application and then
5 dividing this remainder by the December, 1989, CPI.
6
7 SBCTIOR 3.02. SPACB RElIT CBILIRG ADJUS'rMEIIT - ARRtJAL ADJUS'rMEIITS
8 A. Commencing in calendar year 1990, park owners shall be
9 entitled to the following annual adjustments.
10 1. Permissive Adjustment - A park owner shall be
11 entitled to an annual permissive adjustment of gross space rental
12 income equal to two-thirds (2/3) of the percentage increase in
13 the CPI from the date of the most recent initial or annual
14 adjustment to the date of application for the proposed adjust-
15 ment.
16 2. NOI Adjustment - In the event a park owner does
17 not receive a just and reasonable return on park property after
18 receiving the maximum permissive adjustment provided for above,
19 a park owner may file an application with the ombudsman for an
20 adjustment of the space rent ceiling.
21 A park owner shall be entitled to an adjustment of the
22 space rent ceiling so as to enable the park owner's Net Operating
23 Income (NOI) for the subsequent year to be increased by a rate
24 equal to fifty percent (50%) of the percentage increase in the
25 CPI since the date of the most recent annual or initial adjust-
26 ment.
27 3. No annual adjustment shall become effective if a
28 previous annual adjustment became effective within the previous
, ,
1 twelve (12) months. An annual adjustment may, however, be
2 approved by the ombudsman within such twelve (12) month period
3 provided that such an adjustment shall not become effective
4 within such twelve (12) month period.
5
6 SEC'rIOR 4.00. OMBUDSMAR: ES'rABLISBMER'r AND POWERS
7 A. Establishment - The Ombudsman of the City of San
8 Bernardino is hereby established.
9 B. Comoosition - The ombudsman shall consist of five (5)
10 regular members and two (2) alternate members. One regular
11 member shall be a mobile home tenant who resides in the City of
12 San Bernardino; one member shall be a mobile home park owner,
13 operator, manager or designated agent of a mobile home park
14 located in the City of San Bernardino. The two alternate members
15 shall be a tenant from a different mobile home park other than
16 the regular tenant member and an owner, operator, manager or
17 designated agent from a different mobile home park than the
18 regular owner member. The remaining three (3) members shall be
19 residents of the City of San Bernardino who are not elected
20 officials, employees, relatives of elected officials or relatives
21 of employees of the City of San Bernardino, and who are neither
22 tenants, owners, operators, managers or designated agents of
23 mobile home parks and who have no conflicts of interests due to
24 relationship with same. Candidates for membership of the
25 ombudsman shall submit a verified statement listing all interests
26 in any real property or mobile home as defined in Section 798.3
27 of the California Civil Code, including ownership, individually,
28 jointly, legal or equitable, and all sales of such property, or
1 instruments secured by such property, within thirty (30) days of
2 seeking appointment to the Ombudsman.
3 C. Nomination and Aooointment - The regular tenant member
4 and his or her respective alternate members shall be selected by
5 the City Council from a list of five (5) nominations for the
6 Ombudsman submitted by a general association on behalf of the
7 various homeowners associations. The regular mobile home park
8 owner member and his or her respective alternate member shall be
9 selected by the City Council from a list of five (5) nominations
10 supplied by a general association on behalf of the various mobile
11 home park owners associations. The City Council shall nominate
12 and appoint the three remaining regular Ombudsman members. All
13 members of the Ombudsman shall be selected in accordance with
14 applicable City procedures.
15 D. ~ - Each regular member of the Ombudsman shall serve
16 for a term of two years except as otherwise provided herein. For
17 the first Ombudsman, the one (1) tenant member and the one (1)
18 owner member and three (3) at-large resident members shall be
19 appointed for three (3)-year terms. Thereafter, the successors
20 shall be appointed for terms of two (2) years. Each regular
21 member shall hold office until a new member has been duly
22 appointed. Each alternate member of the Ombudsman shall serve
23 for a term of two (2) years except as provided herein. Each
24 alternate member shall hold office until a new alternate member
25 has been duly appointed. If a vacancy occurs or an office
26 becomes vacant other than by expiration of a term, it shall be
27 filled by appointment as previously prescribed herein for the
28 unexpired portion of such member's term. Notwithstanding the
13
1 above provisions of this paragraph, a member may be removed, at
2 any time, with cause, by a majority vote of the City Council.
3 Further notwithstanding the above provisions of this paragraph,
4 any member who is absent without sufficient cause from three (3)
5 consecutive meetings of the Ombudsman which such member was
6 required to attend shall be deemed to have vacated his office.
7 E. Meetinas - To fulfill its function, the Ombudsman shall
8 meet as often as it deems necessary, but at least one regularly
9 scheduled public meeting shall be held everyone hundred eighty
10 (180) days; or within thirty (30) days of any hearing or arbitra-
11 tion held hereunder, whichever is earlier. All members of the
12 Ombudsman, whether regulars or alternates, shall be required to
13 attend all Ombudsman meetings and hearings unless such member has
14 been disqualified from participation. Except as expressly
15 provided herein, the Ombudsman shall establish the time and place
16 of its meetings. All meetings of the Ombudsman shall be
17 conducted in accordance with the provisions of the Ralph M. Brown
18 Act.
19 F. Votina - The affirmative vote of three (3) members of
20 the Ombudsman is required for a decision, including all motions,
21 regulations, and orders of the Ombudsman. When a regular tenant
22 member or owner member is absent from a meeting, his or her
23 respective alternate member shall participate in the Ombudsman
24 proceedings in place of the absent regular member. An alternate
25 member shall have voting privileges only when acting in the stead
26 of an absent regular member.
27 G. Ouorum - Three (3) Ombudsman members shall constitute
28 a quorum.
14
1 H. Powers and Duties of Ombudsman - The Ombudsman shall
2 undertake and have the following duties, responsibilities, and
3 functions, together with all powers reasonably incidental
4 thereto:
5 1. Adootion of Rules and Regulations. The ombudsman
6 may make and adopt its own administrative rules and regulations
7 as may be necessary to effectuate the purposes and policies of
8 this Ordinance and to enable the ombudsman to carry out its
9 powers and duties thereunder, so long as such rules and regula-
10 tions are consistent with the laws of the State, this Ordinance,
11 and any guidelines adopted by the City Council. Any such rules
12 and regulations shall be reduced to writing and be on file with
13 the Director of the ombudsman at all times.
14 2. Director. The Ombudsman shall appoint a Director,
15 with the advice and consent of the City Council, to administer
16 and carry out to the fullest extent possible the expressed intent
17 and purposes of this Ordinance. The Director shall be a full-
18 time employee of the City of San Bernardino and shall become a
19 member of the staff of the City Manager's Office. The Director
20 shall be responsible for the day-to-day operations of the
21 ombudsman.
22 The ombudsman may appoint such additional employees and
23 staff as it may deem necessary to carry out the duties hereunder.
24 3. Maintenance of Records. The ombudsman shall keep
25 a record of its proceedings, which shall be open for inspection
26 by any member of the public.
27 4. Appointment of Committees, Mediators or Hearina
28 Officers. The ombudsman may appoint committees, mediators and
1 hearing officers to hear matters on which testimony may be taken,
2 which committees, mediators and hearing officers shall report to
3 the Ombudsman the findings and results of any such hearing on a
4 matter referred'to such committee or person upon request.
5 5. Conduct Studies and Investioations. The Ombudsman
6 shall have the power to make such studies, surveys, and investi-
7 gations, conduct such hearings, and obtain such information as
8 is necessary to carry out its powers and duties.
9 6. Reauire Reoistration and Reoistration Fees. The
10 Ombudsman shall require such registration of mobile home parks
11 and establish such registration fees as the Ombudsman may deem
12 necessary to enable it to carry out its duties.
13 7. Aoorove Rent Increases. The Ombudsman may approve
14 such adjustments in rent ceilings as provided for in this Ordi-
15 nance.
16 8. Evaluation. The Ombudsman shall render at least
17 semi-annually a comprehensive written report to the City Council
18 concerning the Ombudsman's activities, holdings, actions, results
19 of hearings, and all other matters pertinent to this Ordinance.
20 9. Related Duties. The Ombudsman shall undertake
21 such other related duties as may be assigned by the City Council.
22 I. Comoensation - Each member of the Ombudsman shall be
23 entitled to such compensation as may be set by the City Council,
24 including reimbursement for reasonable expenses incurred in the
25 performance of their official duties. The Ombudsman shall not
26 have any authority to expend or authorize the expenditures of any
27 public funds, except with the prior express approval of the City
28 Council.
1 J. Staff - The City Manager shall provide all administra-
2 tive staff necessary to serve the Ombudsman. The City Manager
3 shall provide a Secretary to serve as Secretary of the Director
4 and shall be responsible for the maintenance of all records of
5 the Ombudsman. The City Attorney or his/her designee shall act
6 as legal counsel to the Ombudsman.
7
8 SECTIO. 5.00. OMBUDSMAH PROCEEDI.GS
9
10 SECTIO. 5.01 PETITIO. BY TE.ART
11 Any tenant of a mobile home rental space affected by this
12 Ordinance, upon payment of such filing fee as shall be duly
13 established, may petition the Ombudsman for an interpretation of
14 the Ordinance or for a determination whether a proposed or actual
15 action by the landlord of such tenant is legal, valid, and within
16 the terms of this title. If the Ombudsman shall establish forms
17 for such petitions, the petition shall be prepared and submitted
18 upon such form. In the absence of such designated form, the
19 petition shall contain the name, address and telephone number,
20 if known, of the landlord, owner, manager, or other person
21 authorized to represent the owner of'the mobile home park, a
22 brief statement of the facts giving rise to the request for
23 interpretation or determination, and a statement that a copy of
24 the petition has been personally served or mailed to the owner,
25 manager or other person authorized to accept and receive notices
26 to the landlord.
27 / / /
28///
17
1 SECTION 5.02. PETITION BY LARDLORD
2 Any landlord of a mobile home park affected by this
3 Ordinance may, upon payment of such filing fee as shall be duly
4 established, petition the ombudsman for an interpretation of this
5 Ordinance, or for a determination whether a particular course of
6 action by said landlord is allowable, valid and in conformity
7 with this Ordinance. The ombudsman may designate forms for the
8 filing of such petitions. In the event that no such form has
9 been designated, the petition shall be in writing, and shall
10 contain the name, address and telephone number, if any, of the
11 person requesting the interpretation or opinion, the name and
12 address of each tenant of a rental unit owned or managed by the
13 person requesting the interpretation or opinion, if it is
14 intended that such interpretation or opinion affect such rental
15 unit, a brief statement of the facts giving rise to the request
16 for interpretation or opinion, and a statement that a copy of
17 such petition has been personally served upon or mailed to each
18 such tenant who might be affected thereby.
19
20 SECTION 5.03. PETITION FOR HARDSHIP RER'r INCREASE
21 A landlord, or any representative of the owner, lessor,
22 operator or manager of a mobile home park affected by this
23 Ordinance, upon payment of such filing fee as shall be duly
24 established, may petition the ombudsman for a hardship increase
25 of the maximum rent permitted to be charged pursuant to this
26 Ordinance. If the ombudsman shall designate a form for the
27 filing of such petition, such petition shall be filed upon such
28 form. If no such form shall be designated, such petition shall
1 be in writing, verified by the applicant, and shall contain the
2 name, address and telephone number of the applicant, the name and
3 address of the tenant of each rental unit which would be affected
4 if the petition were granted, a statement of the facts giving
5 rise to the petition for hardship increase in sufficient detail
6 that, if established, such facts would demonstrate the existence
7 of a hardship upon the landlord warranting such hardship
8 increase. Within thirty (30) working days after the petition has
9 been submitted to the Ombudsman for filing, petitioner shall be
10 given notice of the time and place of the hearing, which notice
11 together with a copy of the petition shall be served upon or
12 mailed to each tenant of a rental unit which would be affected
13 by the hardship increase if granted. When a declaration of
14 service has been submitted to the Ombudsman, the petition for
15 hardship rent increase shall be deemed filed.
16
17 SECTIOR 5.04. CORDUCT OF OMBUDSMAR PROCEEDIRGS
18 A. Each party to a hearing may have assistance in
19 presenting evidence or in setting forth by argument his position,
20 from an attorney or such other person as may be designated by
21 said party.
22 B. Formal rules of evidence shall not apply in Ombudsman
23 proceedings; however, all oral testimony offered as evidence
24 shall be under oath.
25 C. In the event that any party shall fail to appear at the
26 time and place set for hearing of a petition, the Ombudsman may
27 hear and review such evidence as may be presented, and may make
28 such findings and decisions as shall be supported by the evidence
1 presented.
2 D. The Ombudsman, or its appointed Director, shall make
3 findings based on the evidence as to each fact relevant to the
4 Ombudsman's decision on the petition. The decision of the
5 Ombudsman shall be based upon the findings, and shall:
6 1. Interpret this Ordinance; and/or
7 2. Determine whether the action or proposed action
8 of a landlord is valid, permitted, and in conformity with this
9 Ordinance; and/or
10 3. Determine whether a hardship exists, and if so,
11 the nature and amount of relief to be granted or authorized to
12 the landlord.
13 E. The Ombudsman or its appointed Director shall meet to
14 consider the evidence and arguments of the parties no later than
15 thirty (30) days after the matter has been submitted for decision
16 and shall make its final decision at the conclusion of its
17 deliberations. No rent increase will be authorized unless
18 supported by the preponderance of the evidence. A notice of the
19 Ombudsman's decision shall be sent to each party to a proceeding.
20 Unless good cause to the contrary shall appear, each decision of
21 the Ombudsman shall apply on a unit by unit basis, taking into
22 account the possibility of differences in base rent, services
23 provided, and other factors differentiating rental units.
24 F. Nothing in this Ordinance, or in any decision of the
25 Ombudsman, shall require any landlord to raise rents or charges
26 to tenants. If an increase in the maximum permissible rent is
27 authorized, a landlord may raise rents or charges by a lesser
28 amount, or for a lesser time than is authorized by the decision
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
of the Ombudsman.
G. The findings and decisions of the Ombudsman shall be
final administrative action. There shall be no right of appeal
to the City Council. Such findings and decisions shall be public
records, and may be certified by the secretary of the Ombudsman,
if any, or by the city clerk.
SECTIOR 5.05. PRIORITIES - TIMELINESS OF PROCEEDIRGS
A. The Ombudsman 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 Ombudsman 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
utilities or other necessary services used in rental units.
B. The Ombudsman 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 Ombudsman shall deem it necessary in order to meet such
time constraints, it shall request of the City Council the
appointment of one or more hearing officers to hear such cases,
make findings thereon, and recommend disposition thereof to the
Ombudsman.
1/1
1 SECTIOR 6.00. HARDSHIP RERT IRCREASE REGULATIORS
2 For purposes of determining allowable hardship rent
3 increases, the rules and regulations set forth in this section
4 shall be used. In authorizing individual adjustments of the rent
5 ceilings, the Ombudsman, its Director, or its hearing officers
6 shall consider the purposes of this Ordinance and the require-
7 ments of law. The Ombudsman may consider all relevant factors
8 including: increases or decreases in operating and maintenance
9 expenses, the extent and cost of utilities paid by the owner,
10 necessary and reasonable capital improvement of the park as
11 distinguished from normal repair, replacement and maintenance,
12 increases or decreases in amenities, equipment, or services,
13 substantial deterioration of the park other than a result of
14 ordinary wear and tear, failure on the part of the owner to
15 provide adequate repair, housing services or to comply with
16 applicable housing, health and safety codes, federal and state
17 income tax benefits, the speculative nature of the investment,
18 whether or not the property as acquired or is held as a long term
19 or short term investment, the owner's rate of return on invest-
20 ment, the owner's current and base year Net Operating Income and
21 any other factors deemed relevant by the Ombudsman, its Director,
22 or its hearing officer in providing the owner a fair return.
23
24 SECTIOR 6.01. nT OPERATIRG IRCOME
25 Net operating Income (NOI) shall be gross income less
26 allowable operating expenses.
27 III
28 1//
1 SECTION 6.02. GROSS INCOME
2 Gross Income equals:
3 A. Gross rents, computed as gross rental income at 100%
4 paid occupancy, plus
5 B. Interest from rental deposits, unless directly paid by
6 the landlord to the tenants.
7 C. Income from miscellaneous sources, including, but not
8 limited to, laundry facilities, vending machines, amusement
9 devices, cleaning fees or services, garage and parking fees, plus
10 D. All other income or consideration received or receiv-
11 able for or in connection with the use or occupancy of rental
12 units,
13 E. Minus uncollected rents due to vacancy and bad debts
14 to the extent that the same are beyond the landlord's control.
15
16 SECTION 6.03. llU,OWABLE OPERATING EXPENSES
17 Operating expenses shall include the following:
18 A. Real property taxes,
19 B. Utility costs,
20 C. Management fees actually paid if management services
21 are contracted for. If all or a portion of management services
22 are performed by landlord, management fees shall include the
23 reasonable value for such landlord performed services. Manage-
24 ment fees greater than five percent (5%) of gross income are
25 presumed to be unreasonable. Such presumption may be rebutted
26 by clear and convincing evidence.
27 D. Other reasonable management expenses, including, but
28 not limited to, necessary and reasonable advertising, accounting
....,
1 and insurance.
2 E. Normal repair and maintenance expenses, including, but
3 not limited to, painting, normal cleaning, fumigation, landscap-
4 ing, and repair of all standard services, including electrical,
5 plumbing, carpentry, furnished appliances, drapes, carpets, and
6 furniture.
7 F. Owner-performed labor, which shall be compensated at
8 the following hourly rates upon documentation of the date, time,
9 and nature of the work performed:
10 1. At the general prevailing rate of per diem wages
11 for the San Bernardino area, for the specific type of work
12 performed, as determined and published by the Director of the
13 Department of Industrial Relations of the State of California
14 pursuant to Section 1770 et seq. of the Labor Code of the State
15 of California.
16 2. ,If no such general prevailing rate has been
17 determined and published, then:
18 General Maintenance: $
19 Skilled Labor: $
20 Notwithstanding the above, a landlord may receive
21 greater or lesser compensation for self-labor if the landlord
22 proves by clear and convincing evidence that the amounts set
23 forth above are substantially unfair in a given case.
24 Owner-performed labor in excess of 5% of Gross Income
25 shall not be allowed unless the landlord proves by clear and
26 convincing evidence that such excess labor expenses resulted in
27 proportionately greater services for the benefit of tenants.
28 G. License and registration fees required by law to the
.,...
1 extent same are not otherwise paid by tenants.
2 H. The yearly amortized portion of capital expenses
3 including financing costs, computed in accordance with any useful
4 life table utilized by the Internal Revenue Service.
5 I. Reasonable attorneys fees and cost incurred as normal
6 and reasonable costs of doing business, including, but not
7 limited to, good faith attempts to recover rents owing and good
8 faith unlawful detainer actions not in derogation of applicable
9 law, to the extent same are not recovered from tenants.
10
11 SECTIOIl 6.04. OPERATING EXPENSES 1I0T JlU,OWABLE
12 Operating expenses shall not include the following:
13 A. Avoidable and unreasonable or unnecessary expenses;
14 B. Mortgage principal and interest payments;
15 C. Lease purchase payments and rent or lease payments to
16 landlord's lessor;
17 D. Penalties, fees or interest assessed or awarded for
18 violation of this or any other statute;
19 E. Attorneys fees and other costs incurred for proceedings
20 before the Ombudsman or in preparation for such proceedings, or
21 in connection with any civil actions or proceedings against the
22 Ombudsman, or a decision, ruling, or order of the Ombudsman;
23 F. Depreciation of the real property;
24 G. Any expense for which the landlord has been reimbursed
25 by any security deposit, insurance settlement, judgment for
26 damages, settlement, or any other method.
27 III
28 //1
1 SECTION 6.05. PRESUMPTION OF FAIR BASE YEAR NET OPERATING INCOME
2 Except as provided in Section 6.06, it shall be presumed
3 that the Net Operating Income produced by a park owner during the
4 base year, provided a fair return on property. Owners shall be
5 entitled to maintain and increase their Net Operating Income from
6 year to year in accordance with Section 3.0
7
8 SECTION 6.06. REBUTTIlIG THE PRESUMPTIOll
9 It may be determined that the base year net operating income
10 yielded other than a fair return on property, in which case, the
11 base year Net Operating Income may be adjusted accordingly. In
12 order to make such a determination, the hearing officer must make
13 at least one of the following findings:
14 A. The owner's operating and maintenance expenses in the
15 base year were unusually high or low in comparison to other
16 years. In such instances, adjustments may be made in calculating
17 such expenses so the base year operating expenses reflect average
18 expenses for the property over a reasonable period of time. The
19 hearing officer shall consider the following factors:
20 1. The owners made substantial capital improvements
21 during 1988 which were not reflected in the rent levels on the
22 base date.
23 2. Substantial repairs were made due to damage caused
24 by natural disaster or vandalism which management has taken
25 appropriate action to reduce.
26 3. Maintenance and repair was below accepted
27 standards so as to cause significant deterioration in the quality
28 of housing services.
1 4. Other expenses were unreasonably high or low
2 notwithstanding the following of prudent business measures.
3 B. The rental rates on the base date were disproportionate
4 due to enumerated factors below. In such instances, adjustments
5 may be made in calculating gross rents consistent with the
6 purpose of this Ordinance.
7 1. The rental rates on the base date were substan-
8 tially higher or lower than in preceding months by reason of
9 premiums being charged or rebates being given for reasons unique
10 to particular units or limited to the period determining the base
11 rent.
12 2. The rent on the base date was substantially higher
13 or lower than at other times of the year by reason of seasonal
14 demand or seasonal variations in rent.
15 3. The rental rates on the base date were exception-
16 ally high or low due to other factors which would cause the
17 application of the base year net operating income to result in
18 gross inequity to either the owner or tenant.
19 C. It shall be presumed that where Net Operating Income
20 is less than 50% of gross income in the base year, after making
21 adjustments as permitted by Subsections A and B of this Section,
22 the owner was receiving less than a fair return on property.
23
24 SECTION 6.07. DETERMINATION OF BASE YEAR NET OPERATING INCOME
25 A. To determine the net operating income during the base
26 year, there shall be deducted from the annualized gross income
27 being realized in 1988, a sum equal to the actual operating
28 expenses for calendar year 1988, unless the owner demonstrates
1 to the satisfaction of the hearing officer that some other
2 consecutive 12-month period is justified by reason consistent
3 with the purpose of this Section.
4 B. In the event the owner did not own the subject property
5 during the base year, the operating expenses for 1988 shall be
6 determined by one of the following methods, whichever the hearing
7 officer determines to be more reliable in the particular case:
8 1. The previous owner's actual operating expenses as
9 defined in Section __~.O~ if such figures were available, or
10 2. Actual operating expenses for the first calendar
11 year of ownership, discounted to 1988 by the schedule.
12
13 SECTIOR 6.08. DETERMIRATIOR OF CURRERT YEAR nT OPERATIRG IRCOME
14 To determine the current year net operating income, there
15 shall be deducted from the annualized gross income, determined
16 by annualizing the monthly rents in effect at the time of filing
17 of a petition, a sum equal to the actual operating expenses for
18 the last calendar year (unless the owner demonstrates to the
19 satisfaction of the hearing officer that some other consecutive
20 12-month period is justified by reasons consistent with the
21 purposes of this section).
22
23 SECTIO. 6.09. SCHEDULE OF I.CREASES IR OPERATI.G EXPENSES
24 Where scheduling of rental increases, or other calculations,
25 require projections of income and expenses, it shall be assumed
26 that operating expenses, exclusive of property taxes, and
27 management expenses, increases at 5% per year, that property
28 taxes increase at 2% per year, and that management expenses
?R
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
constitute 5% of gross income.
SECTIOII 6.10. Jlu.oWABLE RENT INCREASES
The Ombudsman, its Director, or a hearing officer may permit
rent increases, unless otherwise prescribed by law, such that the
owner's net operating income will be increased at the rate of
fifty percent (50%> of the increase in the Consumer Price Index
(CPI) over the base year. The increase in the CPI shall be
calculated by dividing the most recently reported monthly figure
at the time of receipt of the owner's petition for increase by
the monthly figure for December, 1988 (December, 1988 CPI =
) .
SECTIOII 6.11 DISCRETIONARY CONSIDERATIONS
While the Net Operating Income formula should operate to
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 determina-
tion, as set forth in this Ordinance.
SECTIOII 6.12 LIMIT ON INCREASES PENDING BEARING OR LITIGATIOII
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 proceeding is being conducted pursuant to
this Ordinance, nor shall such increase be valid during the
period in which an Ombudsman's decision for that park is being
reviewed by a Court of competent juriSdiction, except those the
tenants shall be required to pay the permissible Adjustment as
1 provided for under Section 3.02 (A) (1). No owner shall increase
2 rents under this Ordinance if the owner:
3 A. Has failed to comply with any provisions of this
4 Ordinance and/or regulations issued thereunder by the Ombudsman
5 or City Council, including any provisions requiring the payment
6 of registration fees and registration penalties.
7 B. Has failed to comply substantially with any applicable
8 state or local housing, health or safety law. No owner shall
9 increase rent unless the notice increasing rent contains a
10 statement in substantially the following form: "The undersigned
11 (owner) certifies that this rental space and common areas of the
12 park are not subject to any uncorrected citation or notices of
13 violation of any state or local housing, health or safety laws
14 issued by any government official or agency." If an owner fails
15 to comply with this subsection, the tenant may refuse to pay the
16 improperly noticed increase, may seek administrative or civil
17 remedies under this Ordinance, and may raise the owner's non-
18 compliance as an affirmative defense in any resulting unlawful
19 detainer action.
20
21 SBCTIO. 6.13. RERT INCREASBS FOR REDUCTIO. IX SERVICES
22 A. No owner shall reduce the level or kind of services
23 provided to tenants as of the date of adoption of this Ordinance
24 or take any other punitive action in retaliation for the exercise
25 by tenants of any of the rights granted by this Ordinance.
26 B. If a mobile home park provides in the rent, without
27 separate charge, utilities or similar services (including, but
28 not limited to, natural gas, electricity, water, sewer, trash,
1 cable television) and converts to separate charge for such
2 service by separate metering, separate charge or other lawful
3 means of transferring to the tenant the obligation for payment
4 for such services, the cost savings shall be passed through to
5 tenants by a rent reduction equal to the actual cost to the park
6 of such transferred utility or similar service (less common area
7 usage) based on costs for the twelve (12)-month period prior to
8 notice to the tenants of the change. Provided compliance with
9 this section occurs, provisions for mediation and/or hearing
10 shall not apply.
11 C. For purposes of subsection 6.13 (A), above, in
12 determining cost savings to be passed on to tenants in the form
13 of decreased rent, the cost of installation of separate utility
14 meters, or similar costs incurred by the owner to shift the
15 obligation for payment of utility costs to the tenants shall not
16 be considered. However, this shall not be construed to prohibit
17 or prevent the consideration of inclusion of such costs as an
18 increased operating expense at mediation or arbitration.
19 D. If a service other than a utility or similar service
20 per subsection (A) above is reduced or eliminated, or if a
21 utility or similar service is reduced or eliminated without a
22 concomitant decrease in rent, the provisions of this Ordinance
23 regarding petition and/or hearing shall apply subject to the
24 following conditions. Any petition initiating mediation or
25 hearing must be filed with twelve (12) months of the date on
26 which the service was reduced or eliminated, and the reduction
27 or elimination in services must continue to exist at the time of
28 the hearing. Rent decreases shall only be granted prospectively.
""
1 SECTIOR 6. 14 . OUAlfTUM OF PROOF AlfD BORDER OF PROOF
2 The decision of the Ombudsman, its Director, or hearing
3 officer must be supported by a preponderance of the evidence
4 submitted at the hearing. The petitioning party shall have the
5 burden of proof in such proceedings.
6
7 SBCTIOR 7.00. APPBAL
8 Any party to a hearing shall be entitled to appeal the
9 decision of the Director or the hearing officer to the Ombudsman.
10
11 SBCTIOR 7.01. FILIRG OF APPEAL
12 Any party seeking to appeal the decision of the Director or
13 the hearing officer must file such appeal within fifteen (15)
14 days of the date of notice of the decision and must post a
15 deposit of amount sufficient to cover the cost of preparing the
16 Hearing Record.
17
18 SBCTIOR 7.02. APPEAL BEARIRG
19 Upon the request of any party filing an appeal and deposit-
20 ing the sums required in subsection 7.01 hereof, the Ombudsman
21 shall schedule a hearing to be held within thirty (30) days of
22 the filing of appeal and shall direct the Director to notify the
23 parties of such hearing date.
24
25 SBCTION 7.03. APPELLATE REVIEW
26 The Ombudsman shall review the Hearing Record and hear the
27 arguments of the parties at the appeal hearing, but shall limit
28 its review to facts presented at the hearing before the hearing
":l,)
1 officer.
2
3 SECT lOR 7.04. TIME FOR APPELLATE DECISION
4 The Ombudsman shall make a decision no later than five (5)
5 days following the appeal hearing and notify the parties within
6 ten (10) days following the Ombudsman's decision.
7
8 SBCTIOR 7.05. FIRALITY OF DECISION
9 The decision of the Ombudsman on appeal shall be final and
10 binding.
11
12 SBCTIOR 7.06. JUDICIAL REVIEW
13 An owner or tenant aggrieved by any action or decision of
14 the Ombudsman may seek judicial review by appealing to the
15 appropriate Court within the jurisdiction. Sections 1094.5 and
16 1094.6 of the Code of Civil Procedure are applicable herein.
17
18 SBCTIOR 8.00. TBRMIRATIOR OF TBNANCY
19 A. A tenancy which is not subject to the provisions of the
20 Mobilehome Residency Law (Civil Code Sections 798-799.6) shall
21 not be terminated nor shall its renewal be refused, except for
22 one or more of the following reasons:
23 1. Failure of the tenant to comply with a local
24 ordinance or state law or regulation relating to mobile homes
25 within a reasonable time after the tenant receives a notice of
26 non-compliance from the appropriate governmental agency.
27 2. Conduct by tenant, upon the mobile home park
28 premises, which constitutes a substantial annoyance to other
33
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
tenants.
3. Failure of the tenant to comply with a reasonable
rule or regulation of the mobile home park. No act or omission
of the tenant shall constitute such a failure to comply unless
and until the owner has given the tenant written notice of
alleged rule or regulation violation and the tenant has failed
to adhere to the rule or regulation within seven (7) days.
4. Non-payment of rent, utility charges or reasonable
incidental service charges.
5. Condemnation of mobile home park.
6. Change of use of the mobile home park, provided
that the provisions of Subsection (f) of Section 789.56 of the
California Civil Code are followed.
(a) The owner gives the tenant written notice of
the proposed change twelve (12) months or more before the date
of the proposed change.
(b) The owner gives each proposed tenant whose
tenancy will commence within twelve (12) months of the proposed
change, written notice thereof prior to the inception of his
tenancy.
B. Notice of termination or refusal to renew must be given
in the manner prescribed by Section 1162 of the Code of Civil
Procedure at least sixty (60) days prior to the termination date
of the tenancy; said notice shall state the date the tenancy
terminates, the reason for the termination or refusal to renew,
and the specific facts upon which the owner is relying.
III
III
1 SECTION 9.00. REMEDIES FOR VIOLATION
2 A. Civil Remedies - Any person who demands, accepts, or
3 retains any payment in violation of the provisions of this
4 Ordinance shall be liable in a civil action to the person from
5 whom such payment is demanded, accepted, or retained for damages
6 in the sum of three (3) times the amount by which the payment or
7 payments demanded, accepted or retained exceed the maximum rent
8 which could lawfully be demanded, accepted, or retained, together
9 with reasonable attorney's fees and costs as determined by the
10 Court.
11 B. Criminal Remedies - It shall be unlawful for any owner
12 to adjust any rent in an amount in excess of that allowed under
13 this Ordinance or by order of the Ombudsman. Any owner who
14 willfully and knowingly violates any of the provisions of this
15 Ordinance or the orders of the Ombudsman shall be guilty of a
16 misdemeanor and on conviction shall be punished by a fine of not
17 more than $500.00 or by imprisonment for not more than six months
18 or by both such fines and imprisonment.
19 c. Iniunctive and Other Civil Relief - The Ombudsman, the
20 Director, the City, and the tenants and owners may seek relief
21 from the appropriate Court within the jurisdiction within which
22 the rental unit is located to enforce any provisions of this
23 Ordinance or its implementing regulations or to restrain or
24 enjoin' any violation of this Ordinance and of the rules,
25 regulations, orders and decisions of the Ombudsman.
26 D. Non-Waiver of Riahts - Any waiver or purported waiver
27 by a tenant of rights granted under this Ordinance prior to the
28 time when such rights may be exercised, whether oral or written,
':Ie::.
1 shall be void as contrary to public policy.
2
3 SECT lOR 10.00. PERIOD REVIEW OF ORDIRANCE
4 A. The City Council shall review the provisions of the
5 Ordinance one year following the date of adoption thereof, and
6 at any other time deemed appropriate, in order to consider the
7 following:
8 1. Whether rent control continues to be necessary to
9 protect the public health, safety, and welfare.
10 2. Whether the implementation of the provisions of
11 this Ordinance have been adequate; and
12 3. Whether the provisions of this Ordinance should
13 be amended to provide more effective regulations or to avoid
14 unnecessary hardship.
15
16 SECTION 11.00. SEVERABILITY
17 If any provisions of this Ordinance or application thereof
18 to any person or circumstances is held invalid, this invalidity
19 shall not affect other applications of this Ordinance which can
20 be given effect without the invalid provision or application, and
21 to this end, the provisions of this Ordinance are declared to be
22 severable. This Ordinance shall be liberally construed to
23 achieve the purposes of this Ordinance and to preserve its
24 validity. This Ordinance shall take effect thirty (30) days
25 after its adoption. The City Clerk shall certify to the passage
26 of this Ordinance and cause same or a summary thereof to be
27 published within fifteen (15) days after adoption in a newspaper
28 of general circulation, printed and published in San Bernardino,
...,..
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
1 California.
PASSED, APPROVED and ADOPTED this _ day of
1990.
ATTEST:
(Name)
City Clerk
City of San Bernardino
,
(Name)
Mayor
City of San Bernardino
.., ..
ERN ARDINO 300 NORTH "0" STREET, SAN BERNARDINO, CALIFORNIA 92418
March 5, 1990
Mr. Butler,
This is a suggested proposal concerning the process of
informing mobile home owners and mobile home park owners about
the City's proposed agreement between these two parties, to
stablize rents of mobile home spaces in San Bernardino.
The Telcommunications Division is proposing a process that
would consist of five public meetings held at a public facility
in San Bernardino (i.e" the Struges Auditorium of the Feldheym
Library), The first four meetings would be intended for the
mobile home owners, with the fifth meeting intended for the
mobile home park owners, These meetings would give detailed
information about the agreement as well as allow for puhlic
questions. It is suggested that the meetings be held in the
afternoon and evening, to allow everyone the opportunity to attend.
Meetings could be held at 3 p.m. and 7 p.m, of the same day.It
should also be a consideration to have the second set of meetings
during a separate week. The fifth meeting would be held after the
other four were completed,
To assure the information about the agreement is reaching as
much of the effected population as possible, it is suggested that
the first meeting be televised. For the considerstion of televising,
that meeting should be structured in a way that the information
is easily understood by the telvision viewing audience. From the
Division's persective, the structure should be something along the
lines of having a panel of six officials,related to the agreement,
on stage with one person introducing the rest of the panel and
opening the program. Questions from the audience should be in
written form and read by the person who will be answering the
question. The other four people on the pane: should be dignitaries
involved with the project. This type of stc~~:ure would be the
best suited for televising the meeting.
Advertizing for the meetings should begin at least two weeks
before the first meeting, It should include notices on the Community
Access Channel's Bulletin Board, announcements on local radio
stations and in local newspapers.
Thank you for your time and consideration.
Sinerely,
~-yr --/j C ( /
B. Carter Hill
Telecommunications Division
i /\
$-10
(7-.;.~) 88a~9804
L..'W OFFICES OF
ROBERT J, JAGIELLO
& ASSOCIATES
FAX (7l41 885-4574
50s "'ORTH ,'\RROWHEAD ^VENUE, SUITE 500
S^", BERN^RDINO. C'\L1FORNI^ 92401
February 23, 1990
Mayor W.R. Bob Holcomb
300 North "0" street
San Bernardino, CA 92401
city Councilwoman
Norine Miller
300 North "D" Street
San Bernardino, CA 92401
City Councilwoman
Esther Estrada
300 North "D" Street
San Bernardino, CA 912401
City Councilwoman
Valerie Pope-Ludlam
300 North "D" Street
San Bernardino, CA 92401
I
city Councilman Jack Reilly
300 North "D" Street
San Bernardino, CA 92401
city Councilman Jess Flores
300 North "D" Street
San Bernardino, CA 92401
City councilman
Michael Maudsley
300 North "D" Street
San Bernardino, CA 92401
City Councilman Tom Minor
300 North "D" Street
San Bernardino, CA 92401
Mike Gordon
The Sun
399 North "D" Street
San Bernardino, CA 92401
Ken Henderson
Head of Community Services
City Council
300 North "0" Street
Dear Sir or Madam:
As you will recall, on August 17, 1989, I directed a letter to
each of you voicing a concern of mobilehome park owners regarding
pending efforts to enact rent control legislation.
After months of negotiations, it appears that the City is
prepared to enact rent control and the only method that a park
owner can use to avoid rent control is to execute an "approved
agreement" which, as the city Council knows from our prior
discussions, is not acceptable to the park owners.
This office represents park owners who collectively own at least
1800 spaces, and we want to take this opportunity to advise the
City that immediately after the passage of the proposed Rent
Control Ordinance, we will be filing Rent Increase Applications
for each and every space in excess of $100.00 per month premised
on the constitutional argument that we are entitled to a "fair
.'
lff/
February 23, 1990
Page Two
return" u~d7r United stat7s Supreme Court and California Supreme
Court dec1s1ons. The not1ces of the proposed rent increases will
be mailed as soon as practical after passage of the Ordinance,
and petitions on behalf of the park owners will be filed with the
ombudsman immediately upon passage of the Ordinance.
The exhaustion of the administrative processes is simply a
prelude to seeking court review by way of writ of any
administrative decision which does not provide us with a "fair
return."
As I pointed out in my earlier letter, park owners typically
receive no more than two to three percent return on their equity
in the property because a component of their return, over the
long-run, is increased appreciation due to rising property
values. Now that the City has decided to limit the income
expectation to those amounts received from cash flow, we will be
seeking a return of 15 to 16 percent on the equity in the
property in order to provide a return sufficient to "attract new
capital and guarantee the integrity of the business" as the
United States Supreme Court recognized in the Great Hope Natural
Gas case.
The net amount that will be at issue on behalf of my clients will
be a minimum of $180,000.00 per month, and in the event we are
successful, we will of course expect compensation from the City
for any losses sustained.
It can also be anticipated that we will be seeking recovery for
damages sustained during the prolonged rent freezes imposed by
the City as a prelude to passage of rent control.
At issue are multi-million dollar property interests of my
clients, and we will be prepared to exhaust every available legal
remedy to vindicate our interests in the event the City decides
to go down the clearly discredited path of rent control.
I regret that the original thesis underlined at settlement .
negotiations of "keeping the park owner whole" and guarantee1ng
that the tenant would receive what he paid for the coach was not
actualized. That opportunity was missed, and now it appears that
the City is determined to force this to the courts as a last
resort.
Very truly yours,
.j /;L%~~
Y:;/14 7--:
Robert J. agiello
.
March 6, 1990
Mayor W.R. "Bob" Holcomb members of the Common Council, and
City Attorney James Penman, City of San Bernardino.
The Mobilehome Owners committee, in good faith have sat at
the negotiating table for a rent agreement that would give the
Park Owners a fair return on their investment, yet give the
Mobilehome Owners protection against rent ~ou~in~.
It was clearly established that with the "Rent Agreement"
a Rent Ordinance would also be implemented to protect the
Mobilehome Owners in Mobile Parks where the Park Owners refused
to offer the Rent A~reement.
This committee was established by Mayor "Bob" Holcomb at
the request of the Park Owners. We the committee were against
negotiating, however with our faith in the Mayor and Council
Members the Mobilehome Owners committee came forward to
negotiate.
The letter sent by Attorney Jagiello dated February 23,
1990 was pure intimidation against the Mayor and City Council
Members. The Park Owners and their representatives presented a
negotiating facade. The February 23rd letter clearly states
their position to what the Mobilehome Owners have stated, Rent
Gou~in~. Eighteen hundred Mobilehome spaces represents less
than half of the four thousand (4000) spaces in the city of San
Bernardino, with more Mobile Parks to be built in the future. A
$100.00 per month space rent increase is a clear statement of
what type of people the Mobilehome Owners must deal with on a
day to day basis.
Since the enactment of the Rent Moratorium things have
been quiet other than the rumors of a high rent increase when
the Rent Moratorium is lifted.
In many of the negotiating meetings the Park Owners stated
"THEN GET A RENT ORDINANCE" when the Mobilehome Owners
committee tried to negotiate their excessive demands to a
logical and tolerable level of acceptance.
The Mobilehome Owners are logical and understanding
citizens who only want fairness to all parties involved and not
financially harm anyone.
We the Mobilehome Owners ask the Honorable Mayor W.R.
"Bob" Holcomb, the Common Council, and City Attorney James
Penman for an emergency rent ordinance for Mobilehome Parks in
the City of San Bernardino under "Quo Warranto".
- 1 -
~l~
Eespectfully
Committee Members:
~~~~
Donald A. Scheradella
Sequoia Plaza Mobilehome Park.
p'
c4'~-c_~ a a>-~~
Lillian Anderson
Arrowlane Mobilehome Park.
,J2~ ~f}
Dexter Goody
Sequoia PLaza Mobilehome Park
d~~~11~rV
Kenneth Jensen [
Thunderbird Mobilehome Park.
~~~I ':;;if~
Armond LeDoux
Pepper Villa Mobilehome Park.
- 2 -
V6/0i/~v V~ ~L
'0' i 14 ~::I4 ~L i .:.
ct.-_>...;, I Kt....I..:-\..)C,;\..
-L '.".1'-'
-
-
~eJ'Jire &' 'C'dsenniser:lItC.
March 7, 1990
TO: All city of San Bernardino Mobile Home Park Owners
REt Impending Rent Control
Dear park Ownert
Please find enclosed two (2) very important documents.
1. Titlad as "Exhibit A".
-.
2. Titled as IIAn Ordinanca of the City of San Bernardino,
C~lifornia .It
Per the meeting of the San Bernardino park owners Association
Representative Group, Mayor Bob Holcomb, Councilman Jess Flores,
councilwoman Norine Miller / Councilman Mike Maudsley, and the
MuL.1.1l;lohvlIIl;lo Owner:) ~eprei!lentQtive ~l:Ol.1p, ne~a on l'larcn 0, .1.~~U, \:.Ulll
following is the bottom line position on rent control in the City
of San Dernardino.
YOU as park owners, ~ advise one of the contacts noted at the
end of this letter, by no later than Tuesday March 13, 1990 at
5~OO p.m., whether or not you are going to:
1. Yes, I will offer "Exhibit A" to all my park residents
currently not under a long term lease, so that I will not
be governed by the new proposed city rent control
ordinance.
OR
2.
liQ, I will not offer "Exhibit A" to all my park residents
currently not under a long term lease. I will instead
take my chances under the new proposed city rent control
ordinance.
Do not misconstrue this decision you have to make, as a blessing
by you of either prugrarn. What we are telling you is, that it
aooears as though Mayor Holcomb may have enough votes to pass the
proposed rent control ordinance you have before you now.
The only real question which the city of san Bernardino is trying
to resolve is, whether to offer "t;xhibit A" with the ordinance or
not. "Exhibit A" will only be offered with the ordinance if
"enough" park owners answer ~ to this letter to warrant the city
to offer "Exhibit A" as a "model lease".
_ ., A 'L . _ .,,_._... ""_"'_._l~ O'''AO.. "'A/"Oil.n."-I'l~ . t:AX 41 7i4/5Q4.5272
Jb-/~
- -
-
~)0' U I ' ~V .)0::......
'Ci. i'1: .:):;:;1"'1. :j.....,.;..
, ,-'..... ~. ..'....'
On Wednesday, March l4, 1990, the San Bernardino Park Owner.
Association is to tlIeet again with the aforementioned people to
advise them of the park owners choice ot the city proqrama offered.
If vou don't rescond, the assumption will be made that you do not
want Lu urr~r "E~libit A" and you are willing to take your chances
with passage of the propo~ed ordinance.
Based on what our group tells the city on March 14, 1990, the city
will then decide during the next city council meeting of March 19,
1990, whether to pass an "Emergency Ordinance" or to pas. an
f1Elnf!rgency Ordinance" with an "Exhibit A" rider.
Keeping in mind that the current rent moratorium ends on or about
the second week of April, you can rest assured that the city of San
Bernardino is going to take one action or the other during their
next scheduled city council meeting.
There is to ~e no more discussion on the matter. Please contact:
..
Pat Anderson
or
RiChard Elias
Home # 793-4565
Work # 862-4444
Work (I 594-0501
And advise either one by phone as to your ~ or ~ decision by
March 13, 1990.
Should you have cwy quel;;tions regarding the city I s position and./or
your options, please feel free to contact either Pat Anderson or
Richard Elias.
~/A~~
- R chard Ellas
San Bernardino Parle Owner I s Representative
RE/pr
cc: All city of San 13ernanlillu Mob.ilehome Parks
IMPORTANT:
Keep in mind that if you do agree to offer "Exhibit A"
as a model lease, and anyone of your tenants refuses
it, they fall prey to what the ma~ket will bear. They
will not be afforded the protectlon of the ordinance.