HomeMy WebLinkAboutR5- Economic Development ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: BARBARA J.LINDSETH SUBJECT: AMENDMENT TO AN
Acting Director ORDINANCE RELATING TO
MOBILEHOME PARK RENT
DATE: May 9, 1995 INCREASES FOR CAPITAL
IMPROVEMENTS
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Synonsis of Previous Commission/Council/Committee Action(s):
On May 9, 1995,the Housing Committee recommended to the Mayor and Common Council of the City of San
Bernardino the approval of Ordinance Number: ,an ordinance of the City of San Bernardino amending Section
8.90.100 of the San Bernardino Municipal Code relating to Mobilehome Park Rent increases for capital improvements.
Staff was directed to investigate whether interest at two percent(2%)over the prime rate at Bank of America was a
reasonable interest rate to be used in the ordinance change.
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Recommended Motion(s):
FIRST READING
(Mayor and Common Council)
MOTION: That the Mayor and Common Council approve Ordinance No. ,an ordinance of the City of San
Bernardino amending Section 8.90.100 of the San Bernardino Municipal Code relating to Mobilehome
Park Rent Increases for Capital Improvements.(FIRST READING)
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Administrator BARBARA J.LINDSETH
Acting Director
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Contact Person(s): Barbara J.Lindseth/JeM Butler Phone: 5081
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Project Area(s): All Ward(s): Seven(7)
Supporting Data Attached: Staff Report.
FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
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13JL:GWB:lag:05-15-02.cdc COMMISSION MEETING AGENDA
MEETING DATE: 05/15/1995
Agenda Item Number:,�/'-
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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An Ordinance Amending Section 8.90.100 of the San Bernardino Municipal
Code Relating to Mobilehome Park Rent Increases for Capital Improvements
The Mobilehome Board of the City of San Bernardino has spent over six months discussing and
revising this ordinance change. At the Mobilehome Board meeting on April 25, 1995 it was
unanimously approved by all members of the Board for presentation to the Housing Committee
for their approval and submission to the Mayor and Council.
This requested change has already been submitted to Mr. Dennis A. Barlow, Senior Assistant City
Attorney as to form and content. His changes have been included in the attached ordinance
amendment.
Some of the concerns the Mobilehome Board members discussed are as follows:
a. There have been a number of court cases in California where the judge has ruled in favor
of the park owners for a request in space rent increases to cover a capital improvement in
the park.
b. The City of San Bernardino Ordinance is based on the use of the N.O.I. (net operating
income) as a justification for rent increases. There is no provision in the ordinance, at this
time, for capital improvement increases.
C. Historically, in most cities where there is a rent control ordinance, the park owners feel
justified in not properly maintaining the park or making needed capital improvements.
Through this change, this will eliminate the ordinance as a reason for not keeping the
park in good condition. It also protects the homeowners, as over 50% of the homeowners
have to approve the capital improvement, unless the improvement is necessary to protect
the health and safety of the residents.
d. The Mobilehome Board was very careful to make sure that this cost would not be a space
rent increase, but will be a special assessment that will be eliminated when the cost of the
improvement has been fully recovered.
Based upon the foregoing, staff recommends adoption of the form motions.
BARBARA J. LINDSETH,Acting Director
Development Department
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BJL:GWB:lag:05-15-02.cdc COMMISSION MEETING AGENDA
MEETING DATE: 05/15/1995
Agenda Item Number: ')
0
1 ORDINANCE NO.
2
AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION
3 8.90.100 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO MOBILE
HOME PARK RENT INCREASES FOR CAPITAL IMPROVEMENTS
4
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO
5 ORDAIN AS FOLLOWS:
6 SECTION 1. Subsection C of Section 8.90.100 of the San Bernardino
7
Municipal Code is hereby renumbered as Subsection D.
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9 SECTION 2. A new Subsection C is hereby added to Section 8.90.100 of the
10 San Bernardino Municipal Code to read as follows:
I l C. Special Assessment Based on Capital Improvements
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13 1. An application for a special assessment based on the cost of a completed capital
14 improvement may be filed with the Mobilehome Board pursuant to this subsection.
15 For the purposes of this subsection "Capital Improvement" is defined as the
16 installation of new improvements and facilities and/or the replacement or
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reconstruction of existing improvements and facilities which consist of more than
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19 ordinary maintenance or repairs, with a useful life of at least five (5)years, and have
20 been agreed upon between the park owner, the resident committee, if any,
21 and approved by more than 50 percent of the owners of all mobilehomes located
22 within the park in an election called to consider the matter with each space casting
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one vote.
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25 2. A special assessment may be granted at the discretion of the Board considering all
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circumstances without approval of the homeowners if the capital improvement is
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necessary to protect the health and safety of the residents of the park, or to comply
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with governmental laws or regulations.
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1 3. Capital Improvement Assessments shall be amortized over the useful life of the
2
improvement as set forth in Internal Revenue Service "class life" tables then in effect,
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unless the Board in it's discretion determines that the use of such tables is
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5 unreasonable under the circumstances.
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7 4. In addition to the cost of the improvement(s) the Assessment shall include interest
8 at two percent over the prime rate at Bank of America in effect at the time the
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10 assessment is approved calculated annually on the unamortized cost of improvement.
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12 5. Capital Improvement Assessments shall be apportioned equally among all spaces in
13 the mobilehome park and shall be payable monthly, and shall be set forth by the park
14 owner as a separate item from the space rent. The Assessment shall remain in effect
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until the cost of the improvement, plus interest as set forth herein, has been fully
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recovered.
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