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Home My WebLink AboutAGENDA REPORT 1998 0520 CC REG ITEM 10AMOORPARK CITY COUNCIL AGENDA REPORT 59 / • a-- rrEM I D• A* CITY OF MOORPARK, CALIFORNIA City Council Meeting of 5-zo -go ACTION: I(IL -2d used on �i �s{ read � nq - �rd� nGhce BY. TO: Honorable City Council FROM: Nancy Burns, Senior Management Analyst DATE: May 8, 1998 (Mtg. of May 20, 1998) SUBJECT: Consider Revisions to Mobilehome Park Rent Stabilization Ordinance Since early 1997, residents of both of the City's mobilehome parks have expressed their concerns about space rent increases, declining mobilehome values, physical conditions at the parks and possibly improper rent increases. Residents have voiced particular objections to the annual four per cent (4 %) standard space rent increase allowed by the ordinance with no justification for this increase required of park owners. An ad hoc Mobilehome Park Rent Stabilization Ordinance Review Committee was appointed by Council and met during July and August 1997 to consider modifications to the current ordinance and features of existing ordinances in other cities and counties. Staff was directed to investigate other resident concerns and reported the results of these investigations to Council. Since May 1997, Council has been asked to consider matters relating to the City's Mobilehome Park Rent Stabilization Program on twelve occasions. Discussion Modifications to the City's Mobilehome Park Rent Stabilization Ordinance are recommended at this time in order to fulfill the following objectives: C: \M \NLB \AGNDARPT \MH NEWORD with Vacancy Decontrol. -May 11, 1996 1 0000 1.) Create a more equitable rationale for the standard space rent increase; 2.) Require that tenants receive a summary of the provisions of the ordinance that will aid in their understanding of its potential effect on their housing expense; 3.) Identify administrative requirements; 4.) Clarify the definition of Consumer Price Index (CPI); and 5.) Remove from the purview of the ordinance any spaces from which mobilehomes have been physically removed, thereby allowing such spaces to become subject to market influence. The proposed revisions remove the four percent (40) threshold from the annual standard space rent increase and retain the ordinance's existing language regarding the maximum allowed standard space rent increase. This, in effect, will enable the standard space rent increase to be the same percentage change as the annual change in CPI, unless the CPI change exceeds seven percent (70). (The change in CPI for both February and March 1998 from the previous year's values for these months was 1.40.) If the CPI change exceeds 70, the ordinance provides for two thirds (2 /3) of the change above 70, up to and including eighteen percent (180). Thus, a maximum increase is fourteen and one third percent (14' /3$) . A summary of the ordinance's provisions, including projections of its potential effect on tenants' housing expense, will be prepared by the City for park owners to distribute to existing tenants and new tenants as they prepare to enter into rental /lease agreements. Administrative requirements referenced in the revisions include the use of rent schedule forms that are approved by the City and the payment of an administrative fee. The clarification of the CPI is that, in practice, the percentage used is the annual change in the CPI, not the actual value itself. While enabling park owners to receive market rent on spaces from which mobilehomes have been physically removed, tenants in other spaces in the parks will suffer no economic disadvantage from this revision to the ordinance. The allowable space rent increase for a change in occupancy where the mobilehome is not removed would continue to be subject to existing controls: the lesser of five percent (50) or the annual CPI change, providing such increase does not occur more than once in a twelve (12) C: \M \NLB \AGNDARPT \MH NEWORD with Vacancy Decontrol -May 11, 1998 2 OOUqZ"3 month period and not more than two (2) times in a five (5) year period. The term "Vacancy control; No recontrol" is used to denote the removal of any form of rent control on a space following the physical removal of a mobile home from that space. Recommendation Introduce Ordinance No. for first reading. C: \M \NLB \AGNDARPT \MH NEWORD with Vacancy Decontrcl -May 12, 1998 3 000024 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING SECTIONS 5.52.020, 5.52.050 AND 5.52.120 OF CHAPTER 5.52, MOBILEHOME PARK RENT STABILIZATION, OF THE MOORPARK MUNICIPAL CODE WHEREAS, the City Council has determined that in the course of administering Chapter 5.52 of the Moorpark Municipal Code, there is a need to clarify certain provisions of the Mobilehome Park Rent Stabilization Program and that for the benefit of both tenants and owners, a summary of the provisions of the Program should be provided; and WHEREAS, because of the downward trend of the percentage change in the Consumer Price Index since February 1991; and WHEREAS, it is appropriate for market forces to determine space rent of spaces vacated by mobilehome units; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. The definitions of Compliance and Consumer Price Index in Section 5.52.020, Subsection C of Section 5.52.040, subsection A and subsection A.1 of Section 5.52.050 and Section 5.52.120 of the Moorpark Municipal Code are hereby amended as follows: 5.52.020 Definitions. "Compliance" means the submittal of rent schedule forms as approved by the City, the payment of an administrative fee, as established by resolution of the City Council, for the submission of mobilehome space rent increase applications, and other requested material, documentation, information and responses to staff questions to comply with Section 5.84.868 of this chapter. "Consumer Price Index" means the percentage change in the Consumer Price Index for the U.S. City Average, All Urban Consumers, All Items, for the twelve (12) month period ending four (4) months prior to the effective date of the proposed rent increase (e.g., November effective date would be for twelve (12) month period ending June 30tH). 5.52.040 Rent increase -- Legality. C. Effect on Space Rent Occupancy Change. 1.. Upon a space rent occupancy change that occurs on or after November 6, 1992, that results from a mobilehome in a mobilehome park being vacated voluntarily or involuntarily, leaving 000OZ5 the mobilehome in place upon the space, '' the mobilehome park owner may increase the space rent in effect for that particular space at the time of the change by an amount not to exceed the lesser of five percent (5 %) or the Consumer Price Index. Such an increase shall not be applied more than once in a twelve (12) month period and not more than two (2) times in any five (5) year period. Nor shall such an increase constitute a space rent increase for the purpose of determining when the last space rent increase became effective under Section 5.52.050(A)(2) or Section 5.52.060(A)(1). 2. Upon a space rent occupancy change that occurs on or after July 1, 1998, that results from the complete removal of 'a mobilehome coach from the space it formerly occupied in a mobilehome park, that same space shall no longer be subject to the provisions of this chapter, except Section 5.52.120. 5.52.050 Standard space rent increase. A. Basis for Determination. The procedures and fees set forth in Section 5.52.060 shall not apply to any proposed space rent increase which does not exceed the greater of four pe-rc (4%) or the adjusted Consumer Price Index ( "CPI ") of the total space rent of each affected mobilehome park space, provided that: 1. The adjusted Consumer Price Index means the full CPI above four percent (4)% up to and including seven percent (7 %) and two- thirds (2 /3) of the CPI above the seven percent (7 %) up to and including eighteen percent (18 %) for a maximum total increase of fourteen point thirty -three percent (14.33 %). 5.52.120 Notice to new tenants. Prior to, or at the time of, agreeing to rent or 'lease a mobilehome park space to a new tenant, the owner shall provide the new tenant with a copy of this chapter, as currently in force', along I'with a 'summary of this chapter's key provisions' and ,projections regarding the effect such provisions may have on tenants. This summary shall be prepared and provided by the City to mobilehome park owners for their distribution to current' and incoming new tenants. Within thirty (30') days after receiving such summary from the City, the mobilehome park owner shall provide a copy of same to all current tenants, whether tenants are renting or leasing space. SECTION 2. If any section, subsection, sentence, clause, phrase, part or portion of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The city council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, part of portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, parts of portions be declared invalid or unconstitutional. SECTION 3. The city clerk shall certify to the passage and adoption of this ordinance; shall enter the same in the book of original ordinances of said city; shall make a minute of the passage and adoption thereof in the records of the proceedings of the city council at which the same is passed and adopted; and shall, within fifteen (15) days after the passage and adoption thereof, cause the same to be published once in the Moorpark Star, a weekly newspaper of general circulation, as defined in Section 6008 of the Government Code, for the City of Moorpark, and which is hereby designated for that purpose. PASSED AND ADOPTED this day of ATTEST: Deborah S. Traffenstedt City Clerk Mayor of the City of Moorpark 00 (1027