HomeMy WebLinkAboutOrdinance 1584 (Mobilehome Rent Stabilization)CLERK'S CERTIFICATE
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, and
EY -Officio Clerk of the Council of said City, do hereby certify that
the foregoing Charter Ordinance NO. 1584 entitled:
"AN ORDINANCE OF THE CITY OF SAN RAFAEL - AMENDING ORDINANCE NO. 1564 ENTITLED
"MOBILEHOME RENT STABILIZATION ORDINANCE" TO INCLUDE OWNERS OF LEASED PROPERTY"
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 20TH day of FEBRUARY
19 90 , 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 5TH day of MARCH 19 90
by the following vote, to wit:
AYES: COUNCILMEMBERS : Boro, Brei ner, Shippey, Thayer & Mayor Mul ryan
NOES: COUNCILMEMBERS : None
ABSENT: COUNCILMEMBERS: None
WITNESS my hand and the official seal
of the City of San Rafael this
SIXTH day of MARCH
19 90
f11'/J1!ANNE M. LEONCINI, City Cler
ORDINANCE NO. 1584
AN ORDINANCE OF THE CITY OF SAN RAFAEL - AMENDING
ORDINANCE NO. 1564 ENTITLED "MOBILEHOME RENT STABILIZATION
ORDINANCE" TO INCLUDE OWNERS OF LEASED PROPERTY
THE COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:
follows:
20.01.010. Findings.
The City Council of the City of San Rafael hereby finds as
A. There is presently within the City of San Rafael and the
surrounding areas, a shortage of lots for the placement of
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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 this 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
substantially 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
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
uRIGINAL
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.
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.
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
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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,
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. "Mediation" is a voluntary process by which disputing
parties come together with a professionally trained mediator who helps
them clarify their differences and design their own agreement.
I. "Mobilehome" means a structure as defined in Section
789.3 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
manufactured 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,
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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.
J. "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.
K. "Operator" means the Owner, Operator, or property
manager of a mobile home park within the City of San Rafael.
L. "Owner" means the Owner or lessor of real property used
for a mobile home park within the City of San Rafael.
M. "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 mobile home park, but exclusive of any amounts paid for
the use of the mobilehome dwelling unit.
N. "Rent increase" means any additional rent demanded of
or 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 mobile home park.
O. "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 or
occupancy thereof.
P. "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 mobilehome
park in which the lot are located.
20.03.030. Applicability.
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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.
20.04.040. Increases Subject to Review; Exceptions.
A. Except as provided in B, below, any rent increase other
than on turnover, proposed to take effect on or after October 16,
1989, 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 (2) and (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 the 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%);
but in no event, less than
(3%) per year.
Seventy-five Percent .75 (CPI/C) or five percent (5%), which-
ever 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 percent
(7.5%), whichever is
greater, where CPI/C is
greater than 10 percent
(10%) .
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"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. If a tenancy is terminated voluntarily by a Homeowner,
or as a result of lawful termination of a lease or rental agreement
for the mobilehome, the Operator may increase the rent to any amount
upon re -rental or re -lease of the mobilehome lot provided that upon
re -rental or re -lease of the mobilehome lot future rental increases
shall be subject to this ordinance.
3. Rent increases in any mobilehome park consistent with a
written lease agreement entered into by the Operator and the lessees
of more than fifty percent (50%) of the rental lots located in the
park. The lease agreement shall specify the rent to be charged each
lot and shall be for a single specified term. The lease agreement
must be executed by the Operator and the individual lessees of the
mobilehome lots. This exemption shall apply during the term of the
agreement.
20.05.050. Notices.
Sixty (60) 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. A copy of the notice, together with a
detail as to which lots within the park will be affected, shall be
provided to the City Manager at the same time.
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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 to
an increase as provided herein. The Homeowners of those lots having a
different anniversary date than that established by the Operators
shall pay only a CPI adjustment on his/her rent until the next
anniversary date, at which time the formula set forth below shall be
used for future increases. 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.
Any Homeowner in any park, who has become a resident
Homeowner within the three months preceding the anniversary date for
an anticipated rent increase, shall be excluded from such rent
increase, as may occur on the anniversary date of the park until such
time as three months shall have elapsed, at which time any rent
increase imposed against them shall not exceed the amount imposed
against all other lots in the park.
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 20.04.040B to the current
yearly rent to determine the actual dollar increase.
The calculations showing the amount of anticipated increase
and how the increase was determined shall both be posted in the office
or office area where it can easily be seen by the Homeowners and a
copy forwarded to the City Manager's office of the City of San Rafael.
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20.07.070. Petition Filing.
Any Homeowners who will be or have been subjected to a
proposed rental or service charge increase, not exempted by the
provisions of Section 20.04.040, may initiate a rent review hearing
process by filing a petition, within thirty (30) days of the date of
notice, signed by Homeowners representing more than fifty percent
(50%) of the lots subject to the increase, with the San Rafael City
Manager. The Homeowners shall provide the Operator or Representatives
with a copy of such petition at the same time that it is filed with
the City Manager. Such petition shall include the names, addresses,
and telephone numbers of the authorized Homeowner Representative(s).
Any Operators who will be or have been subjected to a
proposed rental or service charge increase, not exempted by the
provisions of Section 20.04.040, may initiate a rent review hearing
process by filing a petition, within thirty (30) days of the date of
notice, with the San Rafael City Manager. The Operator shall provide
the Owner Representatives with a copy of such petition at the same
time that it is filed with the City Manager. Such petition shall
include the name, address, and telephone number of authorized Operator
Representatives.
20.08.080. Petition -Form.
A petition for mediation or arbitration must be filed with
the City Manager on the form prescribed by the City and must be
accompanied by such supporting material as is necessary to clearly
support the request. The petition shall contain the following
certification: "I certify under penalty of perjury that the foregoing
is true and correct." The petition shall be dated and subscribed by
the petitioners and the place of execution shall be specified.
20.09.090. Cost of Filing.
The filing of a petition shall be accompanied by a cash
deposit in the amount of four times the then current hourly rate
charged by the Marin County Mediation Services. Upon receipt of the
petition and filing fee from the Homeowners, or Operator, the City
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Manager shall notify the Owner and/or Operator of the receipt of the
petition and shall require from the Owner and/or Operator a like cash
deposit. All or part of said cash deposits shall be used to pay for
the City's administration costs and the mediation services established
hereunder. The filing fees may be adjusted by City Council resolution
from time to time to reflect cost increases.
20.10.100. Petition -Effect of Timely Filing.
Upon filing of a timely and completed petition, that portion
of the requested and noticed rental increase (and only that portion)
which exceeds the amount exempted under Section 20.04.040 shall not
take effect unless and until such time as there is a mediation
agreement or an arbitrator allows such increase or portion thereof
pursuant to the provisions of this chapter. That portion equal to the
amount exempted under Section 20.04.040 shall be allowed to take
effect as noticed.
20.10.110. Mediation.
A. Upon receipt of a timely filed and completed petition for
mediation, the City Manager shall refer the petition to the Marin
County Mediation Services.
In addition, the City Manager may from time to time employ
the services of an accountant to supply information to the mediator or
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 mediator or arbitrator. In such event, the cost of such
accountant may be paid from the filing fees or by the City from
redevelopment low and moderate income set aside funds.
B. Any Homeowner(s) believing that any of the provisions of
this ordinance are being violated, shall give written notice of such
alleged violation(s) to the Operator/Representative and the
Operator/Representative shall respond in writing within thirty days,
denying such allegations or agreeing to correct such violation(s)
within the following thirty days. In the event that the
Operator/Representative shall deny any or all of the allegations and
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refuse to take corrective action within the following thirty days, the
Homeowner(s) shall have the right to have the matter arbitrated
pursuant to Section 20.10.130 herein.
Any Operator believing that any of the provisions of
this ordinance are being violated, shall give written notice of such
alleged violations(s) to the Owner/Representative and the
Owner/Representative shall respond in writing within thirty days,
denying such allegations or agreeing to correct such violation(s)
within the following thirty days. In the event that the
Owner/Representative shall deny any or all of the allegations and
refuse to take corrective action within the following thirty days, the
tenant(s) shall have the right to have the matter arbitrated pursuant
to Section 20.10.130 herein.
The party seeking mediation, if successful, may recover all
actual costs including but not limited to filing fees, attorneys fees,
accounting fees, expert witness fees, plus an amount to be decided by
the mediator not to exceed the sum of five hundred dollars ($500.00)
as and for expenses related to travel, meals and nonexpert witness
time for preparation and/or testimony.
C. Within thirty (30) days of the date that the City
Manager notifies the Owner and/or Operator of the filing of petition
under 20.09.090, the parties shall provide all information that is
reasonably available that the mediator deems necessary to resolve the
dispute. Failure to provide the requested information may be deemed a
refusal to mediate in good faith. All information submitted shall be
in writing and shall be certified in the same manner as set forth in
Section 20.08.080.
D. In the event that the parties agree to a specific rental
increase, the mediator shall prepare a mediation agreement so
specifying between the Owner and/or Operator and the affected
Operator and/or Homeowners. The mediation agreement shall be executed
by the affected parties, or designated representatives. A copy of the
agreement shall be sent to the City. If the mediation process fails
to establish a mutually agreed amount of rental increase within (30)
days, or sooner as hereinafter provided, or if at any time during the
mediation process, the mediator may determine that there is an
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impasse, or that further mediation is impractical or not likely to be
of further value, the mediator shall recommend the matter for
arbitration and shall so notify the City in writing.
20.10.120. Request for Arbitration.
A request for arbitration may be made either by the Owner,
the Operator, or by the affected Homeowners in the affected mobilehome
park. A request for arbitration shall be made by filing the request
in writing with the City Manager no later than seven (7) working days
after the postmarked date that the mediator's recommendation is mailed
to the parties under Section 20.10.100. Requests for arbitration by
Homeowners shall include the name and signature and rental lot
number(s) of Homeowner's designated representative in the request for
arbitration.
20.10.130. Arbitration - Paying All Costs
The party requesting such 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
Operator, and the final arbitration award is eighty percent (80%) or
more of the increase requested by the Operator, not previously granted
by an arbitrator, the Operator shall be allowed to pass the cost
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 a 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.
The party requesting such 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, and the final arbitration award is eighty percent (80%) or more
of the increase requested by the Owner, not previously granted by an
arbitrator, the Owner shall be allowed to pass the cost through to the
operator, spread over a one-year period in addition to any increase
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allowed. If the arbitration is requested by the Operator and the
final arbitration award is eighty percent or more of the reduction
requested by the Operator, not previously granted by an arbitrator,
the Owner shall refund such cost in a lump sum to the Operator within
thirty (30) days to be distributed to the contributing Operator.
20.10.140. Arbitration Without Mediation.
Upon the mutual request of the parties to a rent increase
dispute, a petition may be referred directly to arbitration without
mediation. Such a request must be in writing, signed by all parties,
or their representatives, and filed with the City Manager prior to
selection of an arbitrator. In this event only, the fee of the
arbitration shall be divided equally between the Homeowners and the
Operator and not awarded in accordance with the provisions of Section
20.10.130.
20.10.150. Arbitration -Process.
A. Upon receipt of a timely and completed request for
arbitration, the City Manager shall refer the petition to arbitration.
manner:
B. An arbitrator shall be appointed in the following
Either interested party may submit to the City Manager a
list of three nominees who are members of the American Arbitration
Association. The nominees shall be experienced professional
arbitrators with particular expertise in rental disputes arbitration
or with experience or training showing the capabilities to deal with
the issues found in the rental dispute. The lists of nominees shall
include the resumes of each detailing their qualifications. To be
eligible for nomination, the arbitrator shall not own an interest in a
mobilehome park, shall not be a resident of a mobilehome park, and
shall not be an employee, officer, member or otherwise affiliated with
any group or organization which has or is viewed by a significant
number of Owners, Operators or Homeowners as having taken advocacy
positions in rent control matters. The City Manager shall review the
lists, conduct such investigation and/or interviews as he deems
necessary, and consult with both parties in an attempt to select an
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arbitrator acceptable to both. In the event of disagreement by either
party or both of the parties, the City Manager's selection shall be
final .
C. The arbitrator shall conduct a hearing with the parties, and/or
their representatives, within thirty (30) days of the date the
arbitrator was selected. At the option of the arbitrator, the
arbitrator may choose to meet only with the representatives of one of
the parties at a time. During this hearing process, the concerns of
each party shall be discussed, and the arbitrator shall indicate the
amount and nature of further information he will need from any party
in order to reach a determination. All information submitted shall be
in writing and shall be certified in the same manner as set forth in
Section 20.08.080. The burden of proof regarding the reasonableness
or unreasonableness of the rent increase shall be on the party
requesting arbitration. Each party shall comply with the arbitrator's
request for information within ten (10) working days of the request.
The arbitrator may proceed under this part regardless of whether any
party defaults in providing any of the requested information.
20.10.160. Arbitration -Determination.
After reviewing the record and any additional evidence
requested of the parties which has been provided, the arbitrator shall
determine the amount of allowable rental increase, if any, in
accordance with the standards of Section 20.06.060, if applicable, and
Section 20.10.180, and the increase, if any, shall be effective as of
the date for which it was originally noticed.
20.10.170. Arbitration -Determination Final -Conditions.
The determination of the arbitrator shall be final, and
shall be delivered to the City Manager and the parties in writing,
together with the written findings of fact supporting such
determination within fifteen (15) working days of the hearing provided
in Section 20.10.150. The arbitrator's allowance or disallowance of
any rent increase or portion thereof may be reasonably conditioned in
any manner necessary to effectuate the purposes of this chapter.
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20.10.180. Standards of Reasonableness to be Applied to
Rent Increases.
Arbitrators shall determine whether rent increases are
reasonable under the circumstances, taking into consideration that the
purpose of this chapter is to permit Owners and/or Operators a fair
and reasonable return on their investment, while protecting
Homeowners from arbitrary, capricious, or unreasonable rent increases
in light of the mobilehome housing market conditions in the
surrounding areas and appropriate provisions of the City's General
Plan. The arbitrator's determination shall be made with reference to
the following standards:
A. Increases deemed reasonable.
Where the amount of the proposed rental increase
consists only of passing through one or more of the following:
1. Costs of capital improvements approved by a majority
of the occupied lots within the park.
2. Costs of capital replacement in excess of five
thousand dollars ($5,000) approved by a majority of the occupied
lots within the park.
Any improvements or replacements regardless of the
amount, when such improvements or replacements have been ordered by a
court of competent jurisdiction, any city, county or state agency, or
are of an emergency nature and required to preserve the health and
safety of the Homeowners.
Costs of capital improvements, if any, must be
averaged on a per lot basis, and amortized over a period of not less
than sixty (60) months, and are to be treated as an assessment to be
paid off over not less than sixty (60) months, and excluded from the
rent amount on which calculations of future rent increases are based;
Costs of capital replacements, if any, must be
averaged on a per lot basis, and amortized over a period not less than
thirty-six (36) months, and are to be treated as an assessment to be
paid off over not less than thirty-six (36) months; and excluded from
the rent amount on which calculations of future rent increases are
based;
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Costs of capital improvements or capital replacement
may be passed through only if related to capital improvement or
capital replacement work completed during the twelve (12) months
preceding the date notice of the rent increase is given and not to any
work in progress at the time of any rent increase is given.
foregoing.
B. Standards applicable to rent increases which exceed the
1. In order to assure the Owners and/or Operators a
fair and reasonable return, the arbitrator shall, when the amount of
any rent increase or portion thereof exceeds any of the foregoing
standards under subsection A of this Section, determine what is
reasonable under the circumstances, taking into account all relevant
factors, including the following:
a. Debt service costs due to refinancing, subject
to paragraph 2, below;
b. Debt service costs due to sale, subject to
paragraph 3, below;
including:
amounts;
C. The rental history of the mobilehome park,
(1) The presence or absence of past increases;
(2) The frequency of past rent increases and the
(3) The Owner's and/or Operator's response to
any tax -reduction measure;
(4) The occupancy rate of the mobilehome park in
comparison to comparable units in the same general area.
d. The physical condition of the mobilehome park,
including the quantity and quality of maintenance and repairs
performed during the last twelve (12) months;
e. Any increases or reduction in services during
the twelve (12) months prior to the effective date of the proposed
rent increase;
f. Other financial information which the Owner
and/or Operator is willing to provide;
g. Existing market value of .rents for lots in
communities with housing comparable to San Rafael.
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h. Cost to replace the park.
2. In the case of a refinancing (other than a
refinancing for capital improvements or capital replacement) the debt
service costs of which are included as a capital improvement cost
under Sections 20.02.020 A & B, a rent increase to cover the increased
costs of debt service shall not be allowed unless not allowing the
increase would place a demonstrable financial burden on the continued
operation of the mobilehome park. If the proposed rent increase for
debt service meets this criteria, the arbitrator may allow all or part
of the requested increase, taking into account the following factors:
the investment;
a. The purpose of the refinancing;
b. The arms length nature of the transaction;
C. The Owner's and/or Operator's rate of return on
d. The frequency of past resales or refinances;
e. The extent to which prior rental increases have
made provisions for appreciation of asset value; and
f. Any other factors the arbitrator deems relevant.
3. In the case of increased costs of debt service due
to a sale, a rent increase shall not be allowed if, at the time the
property was acquired, the Owner and/or Operator could reasonably have
foreseen such increased expenses would not be covered by the rent
schedule then in effect.
4. In determining an Owner's and/or Operator's fair and
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.
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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.
20.10.200. Homeowner and/or Operator Remedies.
A. If notice required by Section 20.05.050 is not provided,
the Homeowner and/or Operator may withhold the rent increase until
such notice is provided.
B. In any action for recovery of rent or for unlawful
detainer based on nonpayment of rent, the Homeowner and/or Operator
may defend the action on the ground that the amount of rent claimed is
in excess of the rent allowed by this chapter.
C. Any Homeowner(s) believing that any of the provisions of
this ordinance are being violated, shall give written notice of such
alleged violation(s) to the Operator/Representative and
Operator/Representative shall respond in writing within thirty days,
denying such allegations or agreeing to correct such violation(s)
within the following thirty days. In the event that the
Operator/Representative shall deny any or all of the allegations and
refuse to take corrective action within the following thirty days, the
Homeowner(s) shall have the right to have the matter arbitrated
pursuant to Section 20.10.140 herein. The party seeking arbitration,
if successful, may recover all actual costs including but not limited
to filing fees, attorneys fees, accounting fees, expert witness fees,
plus an amount to be decided by the arbitrator not to exceed the sum
of five hundred dollars ($500.00) as and for expenses related to
travel, meals and nonexpert witness time for preparation and/or
testimony.
Any Operator believing that any of the provisions of this
ordinance are being violated, shall give written notice of such
alleged violation(s) to the Owner/Representative and the
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Owner/Representative shall respond in writing within thirty days,
denying such allegations or agreeing to correct such violation(s)
within the following thirty days. In the event that the
Owner/Representative shall deny any or all of the allegations and
refuse to take corrective action within the following thirty days, the
Operator(s) shall have the right to have the matter arbitrated
pursuant to Section 20.10.140 herein. The party seeking arbitration,
if successful, may recover all actual costs including but not limited
to filing fees, attorneys fees, accounting fees, expert witness fees,
plus an amount to be decided by the arbitrator not to exceed that sum
of five hundred dollards ($500.00) as and for expenses related to
travel, meals and nonexpert witness time for preparation and/or
testimony.
D. Nothing in this Section is intended to limit or preclude
any other lawful defense, cause of action or claim of the Homeowner or
Park Owner and/or Operator in a Court of competent jurisdiction.
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, injunction 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
punitive damages, injunction relief and attorney's fee 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
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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 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 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 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 misdemeanor
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),
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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.
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.
20.10.260. Administration.
The City Manager shall establish administrative procedures
for the implementation of this ordinance.
Attest:
- - .
JE M. LEONCINI; City Clerk
J
LAWRENCE E. MULRYAN
Mayor
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The foregoing Ordinance No. 1584 was read and introduced
at a REGULAR meeting of the City Council of the City of San
Rafael, held on the 20TH day of FEBRUARY , 1990, and ordered passed
to print by the following vote, to wit:
AYES: COUNCILMEMBERS : Boro, Brei ner, Shippey, Thayer & Mayor Mul ryan
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
day of MARCH 5th , 1990.
J 'NK M. LEONCI I, City Clerk
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