HomeMy WebLinkAboutOrdinance 1654 (Mobilehome Rent Stabilization)CLERK'S CERTIFICATE
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, and
Ex -officio Clerk of the Council of said City, do hereby certify that
the foregoing Charter Ordinance No. 1654 entitled:
AN ORDINANCE OF THE CITY OF SAN RAFAEL REPEALING SAN RAFAEL MUNICIPAL CODE CHAPTER
20, MOBILEHOME RENT STABILIZATION ORDINANCE, AND REENACTING AND AMENDING CHAPTER 20,
RENT STABILIZATION ORDINANCE TO CONTINUE TO PROVIDE FOR THE RENT STABILIZATION
PROGRAM INCLUDING NOTICE REQUIREMENTS, PURCHASER'S RIGHTS, BASE RENT AND FREEZE
PROVISIONS
is a true and correct copy of an ordinance of said City and was
introduced at a regular meeting of the City Council
of the City of San Rafael, held on the 15th day of
November , 1993 , published as required by City Charter in the
Marin Independent Journal , a newspaper published in the City
of San Rafael and passed and adopted as an ordinance of said City at
a regular meeting of the City Council of said City
held on the 6th day of December 19 93, by the following
vote, to wit:
AYES: COUNCILMEMBERS : Cohen, Heller, Thayer, Zappeti ni & Mayor Boro
NOES: COUNCILMEb1BERS : None
ABSENT: COUNCILMEMBERS: None
WITNESS my hand and the official seal
of the City of San Rafael this
13th day of December ,
19-U.
JE ?N�MLEOV14, City Clerk
ORDINANCE NO. 1654
AN ORDINANCE OF THE CITY OF SAN RAFAEL
REPEALING SAN RAFAEL MUNICIPAL CODE CHAPTER
20, MOBILEHOME RENT STABILIZATION ORDINANCE,
AND REENACTING AND AMENDING CHAPTER 20, RENT
STABILIZATION ORDINANCE TO CONTINUE TO PROVIDE
FOR THE RENT STABILIZATION PROGRAM INCLUDING
NOTICE REQUIREMENTS, PURCHASER'S RIGHTS, BASE
RENT AND FREEZE PROVISIONS
THE COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:
20.01.010. Findings.
The City Council of the City of San Rafael hereby finds as follows:
A. There is presently within the City of San Rafael and the
surrounding areas, a shortage of lots for the placement of
mobilehomes.
B. Mobilehomes presently constitute an important source of
housing for persons of low and moderate income.
C. A large number of persons living in mobilehomes are
elderly, some of whom live on small fixed incomes. These persons
may expend a substantial portion of their income on rent and may
not be able to afford other housing within the City of San Rafael.
D. There is an extremely low vacancy rate in mobilehome
parks within the City, with no lots presently available in some or
all of the mobilehome parks within the City.
E. Rents for lots within mobilehome parks have, in the few
years preceding adoption of the Rent Stabilization Ordinance by the
City, increased substantially, in parks within the City and other
areas of the State.
F. Homeowners residing in mobilehome parks have very limited
mobility because it is difficult and costly to move mobilehomes;
therefore, such Homeowners are forced to accept and pay substan-
tially increased rents.
G. There is a potential for damage while moving mobilehomes
from one site to another and a considerable amount of cost for
landscaping, awning installations, and site preparation after such
a move.
H. The San Rafael General Plan 2000 Housing Policy H-8
il
i I t
recommends maintaining the City's existing stock of lower cost
units of which the Contempo Marin Mobilehome Park is an example.
I. Owners and/or Operators of mobilehome parks provide an
important housing source for residents of the City of San Rafael.
Unduly restrictive rent review ordinances can operate to discourage
the establishment of new and the expansion of existing mobilehome
parks in the City; to encourage Owners to convert their mobilehome
parks to other uses; and adversely affect the maintenance and other
services offered by mobilehome parks, thereby exacerbating the
shortage of mobilehome lots and the quality of life in mobilehome
parks.
J. It is the purpose of this ordinance to establish a speedy
and efficient method of reviewing rent increases in mobilehome
parks to protect Homeowners from arbitrary, capricious, or
unreasonable rent increases while insuring Owners and/or Operators
and investors a fair and reasonable return and encouraging
competition in the provision of mobilehome lots.
K. Vacancv Control.
The initial Mobilehome Rent Stabilization Ordinance, No.
1564, contained vacancy control provisions at its first reading,
and
Said ordinance was thereafter revised to exempt from
coverage space rent or space rent increases upon the transfer of
ownership of a mobilehome where the mobilehome remains in the park,
sometimes referred to as "Vacancy Decontrol", and
Said revisions were made in response to the decision of
the United States Court of Appeal for the Ninth Circuit in Hall v.
Citv of Santa Barbara, and
The decision of the United States Supreme Court in Yee v.
Escondido effectively overruled Hall v. Citv of Santa Barbara, and
the Yee opinion found that vacancy control of rents on in-place
transfers of mobilehomes does not constitute a physical taking of
property without just compensation, and
The Council finds that the City's policy to continue rent
control protection for all mobilehome parks in the City, has proven
K
useful in stabilizing rent in mobilehome parks; and
Establishment of rent regulations on spaces where
ownership of the mobilehome is transferred but the mobilehome
remains, sometimes referred to as "vacancy control", is an
important part of rent control policy as it protects mobilehome
Owners from excessive space rent increases and permits sales of
mobilehomes without "unconscionable" rent increases to the new
Owner; and
Rent control regulations, including vacancy control can
assist in protecting affordable housing in combination with City
programs and actions to help provide a variety of housing types
within a range of costs affordable to the low and very low income
households; and
A significant number of residents have become residents
following the effective date of Ordinance No. 1564 on October 16,
1989, and were required to pay a rental rate substantially higher
than comparable spaces, and
Many residents of such spaces are senior citizens on
fixed incomes and have been forced to pay unnecessarily high rents
and/or have been constrained in their ability to sell their
mobilehomes.
This City Council desires to enact a measure that would
regulate rent increases upon in-place transfers of mobilehomes.
L. The City Council has reviewed the findings above set
forth in paragraphs A. through K. and finds them to be still true
and correct and continues to find a profound need for continued
mobilehome rent stabilization.
20.01.020. Chapter 20 of the San Rafael Municipal Code is hereby
enacted to read as follows:
CHAPTER 20
MOBILEHOME RENT STABILIZATION ORDINANCE
20.02.020. Definitions.
01
A. "Arbitration" is a process much like a trial where the
arbitrator listens to both sides and makes a decision (called an
award) for the disputing parties.
B. "Capital improvements" means those new improvements which
directly and primarily benefit and serve the existing mobilehome
park Homeowners by materially adding to the value of the mobilehome
park, appreciably prolonging its useful life, or adapting it to new
uses, and which are required to be amortized over the useful life
of the improvements pursuant to the provisions of the Internal
Revenue Code and the regulations issued pursuant thereto. "Capital
improvements costs" shall mean all costs reasonably and necessarily
related to the planning, engineering and construction of capital
improvements and shall include debt service costs, if any, incurred
as a direct result of the capital improvement.
C. "Capital replacement" means the substitution, replacement
or reconstruction of a piece of equipment, machinery, streets,
sidewalks, utility lines, landscaping, structures or part thereof
of a value of five thousand dollars ($5,000.00) or more which
materially benefits and adds value to the mobilehome park. Capital
replacement costs shall mean all costs reasonably and necessarily
related to the planning, engineering and construction of capital
replacement and shall include debt service costs, if any, incurred
as a direct result of the capital replacement.
D. "Debt service costs" means the periodic payment or
payments due under any security or financing device which is
applicable to the mobilehome park including any fees, commissions,
or other charges incurred in obtaining such financing.
E. "Representative" means a person appointed in writing by
an Owner, an Operator, a Homeowner, or a group of Homeowners and
authorized to represent the interest of, negotiate on behalf of,
and bind the appointing party.
F. "Filing" means actual receipt of the item being filed by
the person designated in this chapter to receive the item, or by
his or her designee.
G. "Maintenance and operation costs" means all expenses,
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exclusive of costs of debt service, costs of capital improvements,
and costs of capital replacement, incurred in the operation and
maintenance of the mobilehome park, including but not limited to:
real estate taxes, business taxes and fees (including fees payable
by landlords under this chapter), insurance, sewer service charges,
utilities, janitorial services, professional property management
fees, pool maintenance, exterior building and grounds maintenance,
supplies, equipment, refuse removal, and security services or
systems.
H. "Mobilehome" means a structure as defined in Section
798.3 of the Civil Code as follows:
"Mobilehome" is 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. Mobilehome includes a manufac-
tured home, as defined in Section 18007 of the Health and Safety
Code, and a mobilehome, as defined in Section 18008 of the Health
and Safety Code, but does not include a recreational vehicle, as
defined in Section 799.24 of this code and Section 18010 of the
Health and Safety Code or a commercial coach as defined in Section
18001.8 of the Health and Safety Code.
I. "Mobilehome Owner" or "Homeowner" means any person
legally occupying a mobilehome dwelling unit pursuant to ownership
thereof within a mobilehome park and holding a rental or lease
agreement with the park Owner.
J. "Operator" means the Owner, Operator, or property manager
of a mobilehome park within the City of San Rafael.
K. "Owner" means the Owner or lessor of real property used
for a mobilehome park within the City of San Rafael.
L. "Rent" means the consideration, including any bonus,
benefits or gratuity, demanded or received in connection with the
use and occupancy of a mobilehome lot in a mobilehome park,
including services and amenities, and for the use of Real Property
used for the operation of a mobilehome park, but exclusive of any
amounts paid for the use of the mobilehome dwelling unit.
M. "Rent increase" means any additional rent demanded of or
5
paid by a Homeowner for a rental lot and related amenities,
including any reduction or elimination of amenities without a
corresponding reduction in the monies demanded or paid for rent,
and any additional rent demanded of or paid by an Operator for
rental of real property used for the operation of a mobilehome
park.
N. "Rental lot" means a lot rented in a mobilehome park or
offered for rent in the City of San Rafael for the purpose of
occupancy by a mobilehome with all services connected with the use
of occupancy thereof.
O. "Services" means those facilities which enhance the use
of the rental lot, including, but not limited to, repairs,
replacement, maintenance, painting, heat, hot and cold water,
utilities, security devices, laundry facilities and privileges,
janitorial service, refuse removal, telephone service, and meeting,
recreational, and other facilities in common areas of the mobile -
home park in which the lots are located.
20.03.030. Applicability.
The provisions of this chapter apply only to mobilehome parks
which contain mobilehomes as defined in this ordinance and to the
mobilehomes within such parks.
20.03.040. Notice Requirements.
Any Owner/Operator wishing to claim an exemption from this
ordinance based upon Civil Code section 798.17 shall provide the
following notice to any person and in the manner specified in this
section.
A notice which conforms to the following language and printed
in bold capital letters of the same type size as the largest type
size used in the rental agreement shall be presented to any
prospective purchaser at the time of presentation of a rental
agreement creating a tenancy with a term greater than twelve (12)
months:
n
IMPORTANT NOTICE TO PROSPECTIVE PURCHASER REGARDING THE
PROPOSED RENTAL AGREEMENT FOR MOBILEHOME
PARK. PLEASE TAKE NOTICE THAT THIS RENTAL AGREEMENT
CREATES A TENANCY WITH A TERM IN EXCESS OF TWELVE MONTHS.
BY SIGNING THIS RENTAL AGREEMENT, YOU ARE EXEMPTING THIS
MOBILEHOME SITE FROM THE PROVISIONS OF THE CITY OF SAN
RAFAEL MOBILEHOME RENT STABILIZATION ORDINANCE FOR THE
TERM OF THIS RENTAL AGREEMENT. THE CITY OF SAN RAFAEL
MOBILEHOME RENT STABILIZATION ORDINANCE AND THE STATE
MOBILEHOME RESIDENCY LAW (CALIFORNIA CIVIL CODE SECTION
798 et seq.) GIVE YOU CERTAIN RIGHTS. BEFORE SIGNING
THIS RENTAL AGREEMENT YOU MAY CHOOSE TO SEE A LAWYER.
UNDER THE PROVISIONS OF THE MOBILEHOME RENT STABILIZATION
ORDINANCE, YOU HAVE A RIGHT TO BE OFFERED A RENTAL
AGREEMENT FOR (1) A TERM OF TWELVE MONTHS, OR (2) A
LESSER PERIOD AS YOU MAY REQUEST, OR (3) A LONGER PERIOD
AS YOU AND THE MOBILEHOME PARK MANAGEMENT MAY AGREE. YOU
HAVE A RIGHT TO REVIEW THIS AGREEMENT FOR AT LEAST 30
DAYS BEFORE ACCEPTING OR REJECTING IT. IF YOU SIGN THE
AGREEMENT, YOU MAY CANCEL THE AGREEMENT BY NOTIFYING THE
PARK MANAGEMENT IN WRITING WITHIN 72 HOURS OF YOUR
EXECUTION OF THE AGREEMENT. IT IS UNLAWFUL FOR A
MOBILEHOME PARK OWNER OR ANY AGENT OR REPRESENTATIVE OF
THE OWNER TO DISCRIMINATE AGAINST YOU BECAUSE OF THE
EXERCISE OF ANY RIGHTS YOU MAY HAVE UNDER THE CITY OF SAN
RAFAEL MOBILEHOME RENT STABILIZATION ORDINANCE, OR
BECAUSE OF YOUR CHOICE TO ENTER INTO A RENTAL AGREEMENT
WHICH IS SUBJECT TO THE PROVISIONS OF THAT LAW.
The notice shall contain a place for the prospective purchaser
to acknowledge receipt of the notice and shall also contain an
acknowledgment signed by Owner/Operator that the notice has been
given to the prospective purchaser according to this section. A
copy of the notice executed by Owner/Operator shall be provided to
the prospective purchaser.
20.03.050. Purchaser's Rights.
A prospective purchaser of a mobilehome which is subject to an
in-place transfer shall have all the same rights as a Homeowner, as
defined in Civil Code section 798.18 including:
(a) The right to be offered a rental agreement for (1)
a term of 12 months, or (2) a lesser period as the
Homeowner may request or (3) a longer period as
mutually agreed upon by both the Homeowner and
management.
(b) The right to reject the offer of a rental agreement
in excess of 12 months and instead accept a rental
agreement for a term of 12 months or less from the
date the offered rental agreement begins.
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(c) The Owner/Operator of any park shall file a
standard multi-year residency agreement in the
Office of the City Clerk. A standard form of
written rejection approved by the City Attorney's
Office shall also be filed in the Office of the
City Clerk. A prospective purchaser may elect to
reject a rental agreement in excess of 12 months by
executing the standard form of written rejection
which incorporates applicable terms and conditions
of the Owner's standard multi-year residency
agreement on file in the Office of the City Clerk.
The execution of said written rejection shall be
deemed to be a rental agreement between the
purchaser and the Owner with a month-to-month
tenancy and with the rent limitations as set forth
in this chapter sufficient for compliance with
Civil Code section 798.75(a).
20.04.040. Increases Subject to Review; Exceptions.
A. Except as provided in B., below, any rent increase
including rent on change of ownership as hereinafter defined under
Vacancy Control, proposed to take effect on or after February 1,
1993, shall be subject to this chapter.
B. The following rent increases shall be exempt from review
under this chapter.
1. Except as provided in section 20.04.040 (B)(2) and
(B)(3) an increase in rent for any mobilehome lot in any 12 month
period which is equal to or less than the rent charged on the date
12 months prior to date the increase is to take effect, multiplied
by a cost of living factor and rounded off to the nearest dollar.
The cost of living factor shall be as follows:
One Hundred Percent 1.00(CPI/C) where CPI/C is equal to
or less than five percent
(5%) .
Seventy-five Percent .75(CPI/C) or five percent (5%),
whichever is greater,
where CPI/C is greater
than five percent (5%)
and equal to or less than
10 percent (10%).
Sixty-six Percent .66(CPI/C) or seven and a half per-
cent (7.5%), whichever is
greater, where CPI/C is
greater than 10 percent
(10%) .
"CPI/C" shall mean the percentage change in the consumer price
index for California, All Urban Consumers, San Francisco -Oakland -
San Jose areas, as published by Bureau of Labor Statistics, San
Francisco, over the most recent twelve month period for which
figures are available through the month before the month preceding
the date notice of the rent increase is given. The most recently
published CPI figure available at the time the rent increase notice
is given shall be used for the calculation. The City of San Rafael
will supply to each Owner and/or Operator the published CPI figure
to be used in any rent increase. Each Owner and/or Operator shall
post such document in a conspicuous place in the park office or
office area, where it can easily be seen by the park Homeowners.
2. Mobilehome spaces where the Homeowner and the
mobilehome Owner/Operator have entered into a negotiated lease
agreement that exempts the space in accordance with subdivision (b)
of Civil Code section 798.17.
3. Mobilehome spaces that are "new construction" as
defined in Civil Code section 798.7 and as exempted in accordance
with Civil Code section 798.45.
C. Vacancv Control.
When a mobilehome is transferred by the Homeowner to
another with the mobilehome remaining on the space, it is sometimes
referred to as an "in-place transfer". No increase in rent shall
be imposed upon an in-place transfer of a mobilehome.
When a mobilehome space becomes vacant and the mobilehome
which is located thereon is removed from the space, the space
rental shall not be increased upon re -rental of the space unless
otherwise exempted under the provisions of section 20.04.040
subparagraph B.(2) and (3).
D. Base Rent Provisions.
In the event a mobilehome space is exempted from the
9
provisions of this chapter by reason of the existence of a space
rent agreement that meets the requirements of Civil Code section
798.17, and that agreement expires, the base space rent for that
space shall be the space rent in effect for that space immediately
preceding the expiration of the agreement.
In the event a mobilehome space was subject to the space
rent restrictions of this chapter and between October 16, 1989 and
February 1, 1993, was subject to an in-place transfer, the space
rent that was demanded by the park Owner immediately preceding
February 1, 1993, shall be the base space rent for the space.
E. Freeze.
Notwithstanding the provision for annual adjustment of
space rents as provided in subparagraph B. 1. of section 20.04.040,
a freeze in space rent shall be effected as set forth below for
spaces where a mobilehome space was exempted from the space rental
provisions of this chapter by reason of the existence of a space
rent agreement in accordance with Civil Code section 798.17 and
that agreement expires or where there has been an in-place transfer
of a mobilehome between October 16, 1989 and February 1, 1993.
The base space rent for said spaces shall remain frozen
until such time as the base rent is less than or equal to the rent
said space would have been under the Rent Stabilization Ordinance.
Upon attainment of the level set forth in the preceding sentence,
the space rent freeze provided for in this paragraph shall be
lifted and the rent limitations of subparagraph B. above shall then
apply.
In the event the rent that a particular space would be if
the space had been subject to the provisions of this chapter under
rent stabilization cannot be determined for any reason, the base
rent for said space shall remain frozen until such time that the
lowest rent for a comparable space in a park on February 1, 1993,
where no space rent agreement that was exempt from the provisions
of this chapter expired or where no in-place transfer took place
between October 16, 1989 and February 1, 1993 attains the same
level as the base rent determined in accordance with subparagraph
10
(D) for said space. Thereafter the provisions of subparagraph B.
1. above shall then apply.
The Owners shall not have any obligation to return any
rents heretofore collected under exempt rental agreements or under
rent control ordinances numbers 1564, 1584 and 1644. Ordinance
number 1644 was not intended to impose on Owners any obligation to
roll -back rents at mobilehome parks in San Rafael.
The freeze provisions of this subparagraph E. are to only
have prospective application from the effective date of Ordinance
No. 1644.
20.05.050. Notices.
The Owner/Operator is required to furnish to the City Manager
or an authorized designee at least ninety days before the effective
date of any rent increase, a complete list of the existing rent for
each space within the park together with a copy of any rental
agreement or lease applicable to all spaces within the park. The
lease or rental agreement is required to show the commencement and
expiration date as well as the initial rent applicable under the
agreement.
Ninety (90) days prior to any increase in rents, the Operator
shall provide each Homeowner and the Owner shall provide each
Operator with written notice setting the amount of the proposed
increase, the then current rent and whether or not in the Owners
and/or Operators opinion such increase is exempt from review under
the provisions of this chapter.
20.06.060. Limitations on Rent Increases.
Each park Operator shall, by November 1, 1989, establish an
anniversary date for all Rent Increases, and such yearly increases,
if any, except as specified below, shall be enacted only on the
anniversary date of that park, which date shall also be posted in
the park office or office area where it can easily be seen by the
Homeowners. The increases allowed by the terms of this ordinance
shall be applied equally on such annual basis to all lots subject
11
to an increase as provided herein. The Operator shall notify the
City Manager's office of the City of San Rafael in writing of such
anniversary date on or before November 1, 1989.
The Operator, in calculating the amount of increase allowed,
shall use the average rent per lot subject to the terms of this
ordinance. This figure shall be determined by dividing the number
of lots subject to the terms of this ordinance into the total gross
rent receipts received from those lots. The CPI increase shall
then be applied to that average lot rent, to determine the actual
dollar increase.
The Owner, in calculating the amount of increase allowed,
shall apply increases as allowed in Section 20.04.040 (B) to the
current yearly rent to determine the actual dollar increase.
After the calculations showing the amount of anticipated
increase and how the increase was determined has been approved and
reviewed by the City Manager or his or her designee, said
calculations and method determining the increase shall both be
posted in the park office or office area where it can easily be
seen by the Homeowners and a declaration of posting shall be
forwarded to the City Manager's office of the City of San Rafael
within five days thereafter.
Failure to timely comply with the provisions of sections
20.05.050 and 20.06.060 shall defer the effective date of any
proposed annual increase until ninety (90) days after compliance.
20.07.070. Rental Dispute Hearing Process.
A. Petition Filing.
Within forty-five (45) days after the notice provided in
20.05.050, upon the written petition of more than twenty-five (25%)
percent of the Homeowners of any mobilehome park without rental
agreements exempt in accordance with Civil Code section 798.17
filed with the City Clerk as set forth in this chapter, the rental
dispute hearing process may be invoked. A copy of the petition
shall be provided to the Operator or Representatives at the same
time. The petition shall include the names, addresses, and
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telephone numbers of the authorized Homeowner Representatives. The
petition shall also include such supporting materials as the City
Manager shall prescribe including, but not limited to, a copy of
the Owner's notice of space rent increase. The petition shall be
verified.
B. Filing Fees.
The fee for filing a petition shall be two times the then
current daily rate for American Arbitration Association services.
Upon receipt of the petition and filing fee from Homeowners, the
City Manager shall notify the Owner/Operator of the receipt of the
petition and shall require from the Owner/Operator a like fee. The
filing fees may be adjusted by Resolution of the City Council from
time to time to cover administrative costs and the cost of
arbitration services.
C. Consultant Services.
The City Manager may, from time -to -time, employ the
services of an accountant to supply information to the arbitrator
such as the past twelve months' CPI, a profit income to revenue
statement, a profit income to investment statement, or such other
financial data as may be independently required for or requested by
the arbitrator. The fees for the consultant services may be paid
from the filing fees or by the City from Redevelopment low and
moderate income set aside funds.
D. Supporting Information.
Within thirty (30) days after the filing of a petition,
the Homeowners and the Owner/Operator shall file with the City
Clerk all information reasonably available in support of or
opposition to any proposed increase of rent. Copies of said
supporting information shall be provided to the opposing party and
the arbitrator.
E. Submission of Petition by Owner or Operator.
Any Operator or Owner whose mobilehome park is subject to
the provisions of this chapter and who seeks to increase rent in
excess of the provisions of this chapter, or contends that the
freeze of rents as provided by section 20.04.040 subparagraph E
13
does not result in a just and reasonable return shall be required
to invoke the hearing process by a petition filed with the City
Clerk which shall be heard and processed in the same manner as
provided in this chapter for Homeowner applications, provided that
the Owner/Operator shall notify, in writing, all Homeowners or
Operators subject to such rental increase with proof of service of
such notification listing the names and addresses of each affected
Homeowner and/or Operator.
F. Appointment of Arbitrator.
The City Manager shall appoint the arbitrator. The
parties may submit to the City Manager a list of three nominees who
are members of the American Arbitration Association. The City
Manager may also consider retired judges of courts of record, or
additional members of the American Arbitration Association or other
experienced professional arbitrators. The City Manager will give
deference to any nominee agreed to by the parties. The arbitrator
shall not own any interest in a mobilehome park, or the operator of
a mobilehome park or be a resident of a mobilehome park.
G. Arbitration Hearing.
The arbitrator shall set a hearing within thirty (30)
days after the date the arbitrator was selected.
Any party or their counsel may appear and offer such
documents, testimony, written declarations or other evidence as may
be pertinent to the proceedings. The hearing may be continued at
the request of each party for not to exceed ten (10) days. The
arbitrator may continue the hearing for a reasonable time upon a
showing of good cause. The burden of proving the amount of a rent
increase is reasonable shall be on the Owner by a preponderance of
the evidence. The hearing need not be conducted according to
technical rules of evidence.
The arbitrator shall render within fifteen (15) days of
the hearing a written decision together with the reasons for said
decision determining the amount of allowable rent increase, if any,
in accordance with the standards of Section 20.10.180.
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H. Recording.
The party requesting arbitration shall arrange to have a
court reporter present to record the proceeding before the
arbitrator.
I. Appeal.
Upon the written request of any party within f ifteen (15 )
days of the arbitrator's decision, the decision of the arbitrator
can be appealed and reviewed by the City Council. The appeal shall
consist of a review of the record of the proceedings before the
arbitrator and upon a showing of good cause in accordance with the
provisions of CCP §1094.5(e), the City Council may permit
additional evidence at the hearing on the appeal. The appealing
party shall cause a transcript to be prepared by the certified
court reporter. Within fifteen (15) days after the original
transcript is filed with the City Clerk the appeal will be set for
hearing. The City Council may affirm, modify or reverse the
decision of the arbitrator. The decision of the City Council is
final. The decision of the City Council will be subject to the
provision of California Code of Civil Procedure section 1094.5.
20.10.130. Arbitration -Paying All Costs.
The party requesting arbitration shall be responsible for
paying all costs associated with the selection and retention of the
arbitrator, provided, that if the arbitration is requested by the
Owner/Operator, and the final arbitration award is eighty percent
(80%) or more of the increase requested by the Owner/Operator, not
previously granted by an arbitrator, the Owner/Operator shall be
allowed to pass the costs through to the Homeowners, spread over a
one-year period in addition to any increase allowed. If the
arbitration is requested by the Homeowners and the final
arbitration award is eighty percent (80%) or more of the reduction
requested by the Homeowners, not previously granted by an
arbitrator, the Operator shall refund such cost in a lump sum to
the Homeowners within thirty (30) days to be distributed to the
contributing Homeowners in accordance with their contributions.
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20.10.180. Standards of Reasonableness to be Applied to Rent
Increases.
A. Standards of reasonableness applicable to rent increases
in order to assure Owner and/or Operator a fair and reasonable
return to be considered by the Arbitrator are:
ing:
1. The rental history of the mobilehome park, includ-
(a)
The
presence or absence of
past increases;
(b)
The
frequency
of past rent
increases and the
amounts;
(c) The Owner and/or Operator's response to any
tax -reduction measure;
(d) The occupancy rate of the mobilehome park in
comparison to comparable units in the same
general area.
2. The physical condition of the mobilehome park,
including the quantity and quality of maintenance and repairs
performed during the last twelve (12) months.
3. Any increases or reductions in services during the
twelve (12) months prior to the effective date of the proposed
increase.
4. Other financial information which the Owner and/or
Operator are willing to provide.
5. Existing market value of rents for mobilehome spaces
in communities with housing comparable to San Rafael.
6. Cost to replace the park.
7. Changes in the Consumer Price Index for all urban
consumers, San Francisco -Oakland, San Jose areas published by the
Bureau of Labor Statistics.
8. Any costs incurred as a result of a natural disaster
and only to the extent such costs have not been reimbursed to the
Owner by insurance or other sources.
9. The arbitrator shall not consider changes in
operating or other expenses caused by the park Owner's refinancing
of the park.
B. In determining an Owner and/or Operator's fair and
16
reasonable return, the arbitrator shall consider all relevant
factors, such as the Owner's and/or Operator's investment in the
mobilehome park and the Owner's net operating income; provided,
that the determination may include a review of the replacement cost
of the park.
In any determination of what constitutes a reasonable
rent increase under the circumstances, the arbitrator shall
consider and weigh evidence establishing the nature and extent of
any violations by either the Owner, the Operator, or Homeowners of
the City of San Rafael building and housing codes. Any rent
increase may be disallowed, reduced, or made subject to reasonable
conditions, depending on the severity of such violations.
20.10.190. Services.
During the term of operation of this chapter, no Operator
shall reduce or eliminate any service to any rental lot unless a
proportionate share of the cost savings, due to such reduction or
elimination, is simultaneously passed on to the Homeowner in the
form of a decrease in existing rent or a decrease in the amount of
a rent increase otherwise proposed and permitted by this chapter.
20.10.205. Fair Return Hearing.
In the event an Owner invokes the Rental Dispute Process by
reason of the freeze provisions contained in section 20.04.040
subparagraph E. the Owner shall include in the petition the
following additional information:
1. The name and address of the mobilehome park Owner.
2. The name of the mobilehome park.
3. For each mobilehome space subject to a freeze by
reason of an in-place transfer or expiration of a rental agreement
in excess of twelve (12) months:
a. The number of the lot or space on which the
mobilehome is located together with an executed copy of the most
recent rental agreement for said space.
b. The name and address of the transferor of the
17
mobilehome.
mobilehome.
return.
C. The name and address of the transferee of the
d.
The
date
of transfer.
e.
The
rent
charged prior to transfer.
f.
The
rent
charged following the transfer.
g.
The
rent
proposed as a fair and reasonable
h. All previous transfers of the mobilehome
located in the affected mobilehome space since October 16, 1989,
together with the information requested in (a) - (g) for each such
transfer.
4. The name and address of the person who signed the
Notice.
5. The park Owner shall mail a copy of the petition to
all mobilehome Owners whose rents are the subject of the petition.
The petition shall contain a proof of service that a copy of the
petition was mailed to all such mobilehome Owners.
6. The park Owner shall bear the burden of proving by
a preponderance of the evidence at the hearing that because of the
rent freeze, the park Owner is unable to obtain a fair and
reasonable return.
7. The fair and reasonable return hearing shall be in
accordance with the arbitration proceedings of this chapter.
20.10.210. Retaliation.
A. No Operator shall in any way retaliate against any
Homeowner for the Homeowner's assertion or exercise of any right
under this chapter. Such retaliation shall be subject to suit for
actual and punitive damages, injunctive relief and attorney's fees
and costs. Such retaliation shall also be an available defense in
an unlawful detainer action.
No Owner shall in any way retaliate against any Operator
for the Operator's assertion or exercise of any right under this
chapter. Such retaliation shall be subject to suit for actual and
M
punitive damages, injunctive relief and attorney's fees and costs.
Such retaliation shall also be an available defense in an unlawful
detainer action.
B. No Homeowner shall in any way retaliate against any
Operator for the Operator's assertion or exercise of any right
under this chapter. Such retaliation shall be subject to suit for
actual and punitive damages, injunctive relief and attorney's fees
and costs.
No Homeowner shall in any way retaliate against any Owner
for the Owner's assertion or exercise of any right under this
chapter. Such retaliation shall be subject to suit for actual and
punitive damages, injunctive relief and attorney's fees and costs.
20.10.220. Civil Remedies.
If any Owner or Operator demands, accepts, receives, or
retains any payment of rent in excess of the maximum lawful lot
rent, as determined under this Ordinance, the Homeowners of such
park affected by such violation, individually or by class action,
may seek relief in a court of appropriate jurisdiction for
injunctive relief and/or damages. In any such court proceeding,
the prevailing party shall be awarded his reasonable attorney's
fees and the court, in its discretion and in addition to any other
relief granted or damages awarded, shall be empowered to award to
each affected Homeowner civil damages in the sum of not more than
three times the total monthly lot rent demanded by the Operator
from each such Homeowner.
If any Owner demands, accepts, receives, or retains any
payment of rent in excess of the maximum lawful lot rent, as
determined under this Ordinance, the Operators of such park
affected by such violation, individually or by class action, may
seek relief in a court of appropriate jurisdiction for injunctive
relief and/or damages. In any such court proceeding, the prevail-
ing party shall be awarded his reasonable attorney's fees and the
Court, in its discretion and in addition to any other relief
granted or damages awarded, shall be empowered to award to each
19
affected Operator civil damages in the sum of not more than three
times the total monthly lot rent demanded by the Owner from each
such Operator.
20.10.230. Penalties.
Any person, firm, or corporation violating any of the
provisions of this ordinance shall be deemed guilty of a misdemean-
or and such person shall be deemed guilty of a separate offense for
each and every day or portion thereof during which any violation of
the provisions of this Ordinance is committed, continued, or
permitted, and upon conviction of any such violation, such person
shall be punishable by a fine of not more than $500.00 (five
hundred dollars), or by imprisonment for not more than six (6)
months, or both such fine and imprisonment.
20.10.240. Validity.
If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid, such decision shall
not affect the validity of the remaining portion of this ordinance.
The City Council of the City of San Rafael hereby declares that it
would have adopted the ordinance and each section, subsection,
sentence, clause or phrase thereof, irrespective of the fact that
any one or more sections, subsections, sentences, clauses or
phrases shall be declared invalid.
20.10.250. Publication.
This ordinance shall be published once in full before its
final passage in a newspaper of general circulation, published and
circulated in the City of San Rafael, and shall be in full force
and effect thirty (30) days after its final passage.
20
20.10.260. Administration
The City Manager shall establish administrative procedures for
the implementation of this ordinance.
L$tT J ,�i8ORO , Mayor
Attest:
JEANNE M. LEONCIRI, City Clerk
The foregoing Ordinance No. ,1654 was read and introduced
at a regular meeting of the City Council of the City of San Rafael,
held on the 15th day of November 1993, and ordered passed
to print by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
and will come up for adoption as an Ordinance of the City of San
Rafael at a regular meeting of the Council to be held on the 6th
day of December , 1993.
Revised 11/16/93
21
)% .
JE 2' M. LEONC�III;, City Clerk