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HomeMy WebLinkAboutORD 007 1983 0921ORDINANCE NO. 7 AN ORDINANCE OF THE CITY OF MOORPARK REGULATING MOBILE HOME PARK RENTS THE CITY COUNCIL OF THE CITY OF MOORPARK DOES ORDAIN AS FOLLOWS: SECTION 1. Purpose and Intent. There is presently within the City a shortage of spaces for the location of mobile homes. Because of this shortage, there is a low vacancy rate and rents ,have been for several years, and are presently, rising rapidly and causing concern among a substantial number of City residents. Because of the high cost of moving mobile homes, the potential for damage resulting therefrom, the requirements relating to the in- stallation of mobile homes, including permits, landscaping and site preparation, the lack of alternative home'sites for mobile home residets and the substantial investment of mobile homeowners in such homes, a virtual monopoly exists in the rental of mobile home park spaces, creating a situation where park owners have un- bridled discretion and ability to exploit mobile home park tenants. For these reasons, among others, the City Council finds and declares it necessary to protect the owners of mobile homes from unreasonable rent increases, while at the same time recognizing the need of park owners to receive a fair return on their property and rental income sufficient to cover increases in the costs of repairs, maintenance, insurance, employee services, additional amenities and other costs of operation. SECTION 2. Definitions. (a) "Mobilehome Park Rent Review Board or "Board." The Mobile Home Park Rent Review Board established by this Ordinance. (b) "Capital Improvements." Those improvements that materially add to the value of the property and appreciably prolong its useful life or adapt it to new uses, and which may be amortized over the useful life of the improvement in accordance with the Internal Revenue Code and regulations issued pursuant thereto. (c) "Housing Services." Services provided by the owner related to the use or occupancy of a mobile home space, including, but not limited to, water and sewer, natural gas, electricity, refuse removal, management and ad- ministration (including employee salaries and fringe benefits), maintenance and repairs, supplies, adver- tising, recreation facilities, laundry facilities, parking, security services, insurance, property taxes, other governmental assessments, and other costs reason- ably attributable to the operation of the park. The term "housing services" shall not include legal fees or mortgage payments, whether for principal, interest, or both. -1- (d) "Mobile Home." A structure with dimensions larger than eight 8 feet by forty (40) feet or a size larger than three hundred twenty (320) square feet designed for human habitation, transported over streets and highways to a permanent occupancy site, and installed on the site either with or without a permanent foundation. (e) "Mobile Home Park." An area of land where two or more mobile home spaces are rented or leased out for mobile homes used as residences. "Mobile Home Park" does not include developments which sell lots for mobile homes or manufactured housing, or which provide condominium ownership of such lots, even if any homes in the devel- opment are rented or leased out. (f) "Mobile Home Park Owner " -or "Owner." The owner, lessor, operator or manager of a mobile home park in the City of Moorpark. (g) "Mobile Home Tenant" or "Tenant." Any person entitled to occupy a mobile home which is located within a mobile home or trailer park in the City of Moorpark. (h) "mace Rent." The consideration, including any security deposits, bonuses, benefits or gratuities demanded or received in connection with the use and occupancy of a space in a mobile home or trailer park, or for housing services provided, but exclusive of any amount paid for the use of a mobile home dwelling unit, or utility charges or trash charges which are billed to units separately whether or not the units are individually metered. "Space Rent" does not include reasonable user fees for services actually rendered to some, but not all, of the residents of a park. (i) "Trailer." A structure with dimensions of eight (8) feet by forty(40) feet or less or a size of three hundred twenty (320) square feet or less designed to be drawn by a motor vehicle and to be used for human habitation or for carrying persons and property, including a trailer coach or house trailer. (j) "Trailer Park." An area of land where two or more trailer spaces are rented or leased out for trailers. (k) "Trailer Park Owner." The owner, lessor, operator or manager of a trailer park in the City. (1) "Trailer Park Tenant." Any person entitled to occupy a trailer which is located within a trailer park in the City. (m) "County Staff" shall mean the staff of the County of Ventura so long as the County of Ventura provides staff services and thereafter shall mean the staff of the City of Moorpark. -2- SECTION 3. Exemptions. The provisions of this Ordinance shall not apply to the following: (a) Mobile home park spaces rented for non - residential uses. (b) Mobile home or trailer parks, the construction of which began after September 1, 1982 provided, how- ever, that additional spaces created by the expansion of existing parks are not hereby exempted from the provisions -of this ordinance. For the purposes of this section, "construction" shall mean the erection of structures. (c) Mobile home or trailer parks managed or operated by the United States Government, the State of California, the County of Ventura or the City of Moorpark. (d) Tenancies which do not exceed an occupancy of twenty (20) days and which do not contemplate an occupancy of more than twenty (20) days. (e) Tenancies for which any Federal or State law or regula- tion specifically prohibits rent regulations. (f) Any mobile home park or trailer park which is occupied by less than fifteen (15) mobile homes. (g) Tenancies covered by leases or contracts which provide for more than a month -to -month tenancy, but only for the duration of such lease or contract. Upon the expiration or other termination of any such lease or contract; this Ordinance shall immediately be appli- cable to the tenancy. (h) Mobile home parks which sell lots for factory -built or manufactured housing, or which provide condominium ownership of such lots, even if any homes in the development are rented or leased out. SECTION 4. Mobile Home Rent Review Board. (a) There is hereby established a Mobile Home Rent Review Board - consisting of five (5) members who, along with their alternates, shall be appointed by, and serve at the pleasure of, the City Council. (b) The City Council shall appoint five (5) regular members and for each regular member, an alternate member to serve in the absence of the regular member. -3- (c) The five (5) members of the Board and their alternates shall be persons who are not connected with the real estate or rental housing industry for their personal gain; provided that neither said members nor their alternates shall be tenants or have any direct or indirect financial interest (as defined by State law) in any mobile home or mobile home park. Said members and alternates shall file a declaration to this effect with the City Clerk. (d) Board members and their alternates shall not be comp- ensated for their services as such, but may receive reimbursement as provided by the City Council for traveling and other expenses incurred while on official duty. (e) Terms of Board members shall be two (2) years. SECTION 5. Powers and Duties of the Board. Within the limitations provided by law, the Board shall have the following powers and duties: (a) To meet from time -to -time as required by the C60nty staff or upon the filing of a rent increase request and to utilize County and City offices and facilities as needed. (b) To receive, investigate, hold hearings on, and pass upon the issues relating to mobile home park rent stabilization as set forth in this Ordinance. (c) To make or conduct such independent hearings or inves- tigations as may be appropriate to obtain such infor- mation as is necessary to carry out its duties. (d) To adjust maximum rents either upward or downward upon completion of its hearings and investigations. (e) To render at least semi - annually a comprehensive written report to the City Council concerning its activities, holdings, actions, results of hearings and all other matters pertinent to this Ordinance which may be of interest to the City Council. (f) To adopt, promulgate, amend and rescind administrative rules to effectuate the purposes and policies of this Ordinance. SECTION. —6 Legality of Increases. (a) On and after the effective date of this ordinance, no increase in space rents for mobile homes located in the mobile home parks and trailer parks covered by this Ordinance shall be effective unless approved by the Board as set forth in this Ordinance. -4- Secetion 6 Legality of Increases. (cont.) (b) The procedures and fees set forth in Sections 7 through 11, below, for board review and determination of allowable increases shall not be applicable to proposed increases of no more than five percent (5 %) of the total space rent of each affected space if (1) The proposed increase is to become effective no sooner than one (1) year from the date the last increase became effective at the particular park, (2) The park owner files a schedule of existing and proposed rents for each affected space with the Rent Review Board along with proof that he has provided copies of said schedule to the tenants and written notification of their right to pro- test the proposed increase by filing a written objection with the Rent Review Board within Twenty (20) days after receipt of such notification, and (3) No more than fifty percent (50 %) of the affected tenants file written objections with the Rent Review Board within twenty (20) days after receipt of notification of the proposed increase. If such majority protest is not filed, the proposed increase shall be placed on the Rent Review Board's next agenda for approval as a ministerial matter; however, if such majority protest is filed, the proposed increase may not be implemented unless and until approved by the Rent Review Board after pay- ment of the fee(s) and satisfaction of the require- ments set forth in Sections 7 through 11, below. SECTION 7. Determination of Base Rent and Allowable Increases. (a) The base rent for purposes of this Ordinance shall be the monthly space rent in effect as of September 1, 1982. For purposes of determining allowable increases in space rent, the base rent or space rent, as the case may be, shall be divided into two components as follows: (1) Housing Services; That portion of the rent attributable to the cost of housing services, as defined in Section 2(c), less other park- related income. (2) Remainder; The remainder of the base rent or space rent. (b) Mobile home space rents may be increased no more than once per year according to the following formula: (1) Housing Services. The amount of space rent may be increased as necessary to cover documented increases in housing service costs. Increases in income from other park- related sources shall be deducted in determinimg the amount of increase in costs. Section 7 0 -1) cont. In the event a park owner who does not separately bill utilities converts from a commonly shared metered system to each unit, or when the owner initiates a segregated charge or a separate trash or utility billing to the units, such a charge shall be reviewed by the Board, which shall determine the amount to be deducted from the space rent as a result of such separate charges or billing. Thereafter, such charges or billings shall not be a part of space rent. (2) Remainder - The amount of space rent may also be in- creased by adding a sum equal to no more than seven percent (7 %) of the remainder of the base rent, for the first year, or a sum equal to no more than seven percent (7 %) of the remainder of the then existing space rent, for subsequent years. (c) Calculation of the one -year limitation on rental increases as provided herein shall be from the date the last increase became effective at the particular park. SECTION 8 Initiation of Board Review (a) In order to implement a rent increase as permitted under Section 7, the owner of a park must file with the Board a proposed Rent Schedule on the form provided by the Board. The Rent Schedule shall show the proposed new maximum rents for each space, calculated according to the formula set forth in Section 7 above. The owner shall also deposit $500. as a processing fee to cover costs of processing the proposed Rent Schedule and conducting any hearing or meeting held to consider the proposed Rent Schedule. Upon conclusion of such meeting or hearing, th( balance of the deposited processing fees, if any, shall be refunded to the owner. If additional expences are incurred, the owner shall be billed for, and shall be responsible for payment of such additional expenses. The owner shall serve each affected residence, either personally or by mail, with written notice of the proposed increase, in accordance with State law, and with written notice that a request for approval of same is being filed with the Board. The owner shall file proof of such service with the Board concurrent with the filing of the rent increase requests. Copies of the Rent Schedule, request for increase, and supporting documentation shall be available free of charge to any tenant requesting same at the owner's office in the affected park. (b) At its next meeting, but no later than thirty (30) days from filing, the Board shall review the Rent Schedule for complete - n iz�ss, accuracy and compliance with this Ordinance. If the Board determines that the Rent Schedule is complete, accurate and in compliance with this Ordinance, it shall approve the schedule and the new rents shall become effective as noticed by the owner. If the Board determines that the proposed Rent Schedule is not -6- Section 8 (b) cont. complete, accurate and /or in compliance with this Ordinance, it shall deny the increase without prejudice based on the deficiency. It shall inform the owner of the deficiencies and take or direct other appropriate action. If the Board approves an increase lower than that originally noticed by the owner, the same shall be effective as of the date noticed by the owner. (c) An owner may apply for a discretionary rent increase above that allowed in Section 7 in cases where he contends that the facts and circumstances of his particular case warrant such an increase. If the owner requsts an increase above that allowed by the formula set forth in Section 7, he shall submit with the Rent Schedule a request for such discretionary increase, together with supporting documentation. The notice and proof of service requirements set forth in subdivision (a) above shall apply to such request. The owner shall also deposit $600. as a processing fee to cover costs of processing the request and conducting any hearing or meeting held to consider the request. Upon conclusion of such meeting or hearing, the balance of the deposited processing fee, if any, shall be refunded to the owner. If additional expenses are incurred, the owner shall be billed for, and shall be respon- sible for payment of, such additional expenses. The granting of any rent increase by the Board shall not give rise to the inference that prior rents were the minimum required or confiscatory. The Board shall presume that all rents received by park owners both prior and subsequent to all rent increases allowed by the Board were, and are above the minimum required and not at a confiscatory level, unless there is clear and convincing evidence to the contrary. (d) The Board shall set a hearing on any request complying with the requirements of Subdivision (c) above no sooner'than ten (10) days and no later than thirty (30) days after receipt of the request and proof of service. The Board shall notify the owner and tenants, in writing, of the time and place set for the hearing. No hearin or any part thereof may be continued beyond thirty (30 days after the initial hearing date without the owner's consent. If the Board approves an increase as requested, or lower than requested, the same shall take effect as noticed by the owner or as the Board may otherwise direct. (e) In any application for rent increase under this Ordinance, the owner shall indicate which, if any, of the mobile home spaces are covered by leases or contracts which provide for more than a month -to -month tenancy, together with the exp- iration date of each such lease or contract. Any rent increase approved by the Board under this Ordinance shall not be applicable to spaces covered by such leases or contracts during the terms of such leases or contracts; provided, how- ever, that in acting upon any application for rental increase hereunder, the Board shall set rents in accordance with -7- Section 8 (e) cont. this ordinance for spaces covered by which shall become applicable to such ation of each such lease or contract. SECTION 9 Conduct of the Hearing leases or contracts spaces upon the expir- (a) Except as authorized by state law, all meetings and hearings conducted by the Board shall be open to the public. (b) All parties to a hearing may have assistance from an attorney or such other person as may be designated by said parties in presenting evidence or in setting forth by argument their position. All witnesses shall be sworn in and all testimony shall be under penalty of perjuty. (c) In the event that either the owner or the tenant(s) should fail to appear at the hearing at the specified time and place, the Board may hear and review such evedence as may be presented and make such decisions as if both parties had been present. (d) All meetings and hearings shall be tape recorded. Tapes shall be preserved for six manths, or longer if requested by any party affected by the meeting or hearing. SECTION 10 Standards of Review (a) In evaluating the rent increase proposed by the park owner, the Board shall consider, along with all relevant factors, changes in costs to the owner attributable to increases or decreases in master land and /or facilities lease rent, utility rates, property taxes, insurance, advertising, variable mortage interest rates, governmental. assessments and fees, incidental services, employee costs; normal repair and maintenance, and other considerations including, but not limited to, capital improvements, upgrading and addition of amenities or services, not operating income, and the level of rent necessary to permit a just and reasonable return on the owner's property. (b) The Board shall increases which owners of parks shall include, Section 10 (a), eligibility for such increases. adopt guidelines for discretionary rent will assure a just and reasonable return to subject to this Ordinance. Said guidelines but not be limited to, those items listed in in addition to procedures for determining discretionary rent increases and evaluating SECTION 11 Decision of the Board (a) The Board shell make a final decision no later than ten (10) days after the conclusion of its hearing. The Board's decision shall be based on the preponderance of the evidence M Section 11 (a) cont. submitted at the heariu. All parties to the hearing shall be advised of the Board s decision and given a copy of the findings upon which the decision is based. (b) Pursuant to itsfindings, the Board may (1) permit the requested increase to become effective, in whole or in part; (2) deny the increase; or (3) if circumstances justify, order a reduction in rent to a rate(s) determined by the Board. (c) If the Board finds that an increase which went into effect, or any portion thereof, is not justified or authorized,by this Ordinance, the owner shall refund the amount found to be unjustified or unauthorized to the tenant(s) within thirty (30) days after the decision of the Board is announced. (d) If the Board finds that a proposed increase, or any portion thereof, which was previously inoperative is justified, the tenant(s) shall pay the amount found justified to the owner within thirty (30) days after the decision of the Board is announced. (e) The conclusions and findings of the Board shall be final and there shall be no right of appeal to the City Council. SECTION 12 Tenant's Right of Refusal A tenant may refuse to pay any increase in rent which is in violation of this Ordinance, provided that the Board has either not reached its decision or has found the increase violates the pro- visions of this Ordinance. Such refusal to pay shall be a defense in any action brought to recover possession of a mobile home space or to collect the rent increase. SECTION 13 Retaliatory Eviction Notwithstanding Section 12 above, in any action brought to recover possession of a mobile home space, the court may consider as grounds for denial any violation of any provision of this Ordin- ance. Further, the determination that the action was brought in retaliation for the exercise of any rights conferred by this Ordinance shall be grounds for denial. Any action brought within three (3) months of the determination of a request for rent increase, petition, or complaint filed with the Board by the tenant pursuant to this Ordinance, shall be presumed to be retaliatory; this pre- sumption affects the burden of proof and is rebuttable by the owner. SECTION 14 Civil Remedies If any owner demands, accepts, receives or retains any payment of rent in excess of the maximum lawful space rent, as determined under this Ordinance, the tenants in 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 M Section 14 cont. discretion and in addition to any other relief granted or damages awarded, shall be empowered to award to each affected tenant civil damages in the sum of not more than three times the total monthly space rent demanded by the owner from each such tenant. SECTION 15 Termination This Ordinance shall terminate March 31, 1986 unless earlier repealed or extended by the City Council. SECTION 16 Review by the City Council The City Council shall review the effectiveness of this Ordinance in addressing the problems giving rise to its enactment at least three (3) manths before its termination and take approp- riate legislative action thereon. SECTION 17 Procedural Irregularities Formal rules of evidence or procedure which must be followed in court shall not apply to Board proceedings, except to the extent that the Board shall determine. No action of the Board hereunder shall be held void or invalid or be set aside by any court on the ground of the improper admission or rejection of evidence, or by reason of any error, irregularity, informality, neglect or omission (hereinafter called "error ") as to any matter pertaining to appli- cations, notices, findings, records, hearings, reports, recommendations, or any matters of procedure whatever, including but not limited to those included in this section, unless after an examination of the entire case, including the evidence, the court shall be of the opinion that the error complained of was prejudicial, and that by reason of such error the party complaining or appealing sustained and suffered substantial injury, and that a different result would have been probable if such error had not occurred or existed. There shall be no presumption that error is prejudicial or that injury was done if error is shown. SECTION 18 This Ordinance is intended to be a continuation of County of Ventura Ordinance No. 3635 SECTION 19 Notice to New and Prospective Tenants Prior to or at the time of agreeing to rent space to a new tenant in a park, the owner shall provide each new tenant or pros- pective tenant with a copy of this Ordinance, as currently in force. SECTION 20 Severability If any provision or clause of this Ordinance or the application thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by a final judgment of any court of competent jurisdiction, such invalidity shall not affect other provisions or clauses or applications thereof which can be implemented -10- Section 20 cont. without the invalid provision this end, the provisions and to be severable. SECTION 21. or clause or application, and to clauses of this Ordinance are declared The City Clerk shall, within 15 days after the passage of this ordinance, cause it to be posted in at least the three public places designated by resolution of the City Council; shall certify to the adoption and posting of this ordinance; and shall cause this ordinance and its certification together with proof of posting, to be entered in the book of ordinances of this City. 1983. APPROVED AND ADOPTED this 21st day of _September , ` adr o t o f M o ark, California ATTEST: (SEAL) i STATE OF CALIFORNIA ) COUNTY OF VENTURA ) ss. CITY OF MOORPARK ) I, DQRTQ Q , City Clerk of the City of oorpar , a iornia, do hereby certify that the foregoing Ordinance No. 7 was adopted by the City Council of the City of Moorpark, at a regular meeting thereof, held on the 21st day of September , 1983, and that the same was adopted by the following vote, to wit: AYES: Councilmembers Straughan, Harper, Beaulieu, Prieto and Mayor Yancy- Sutton; NOES: None; ABSENT: None. WITNESS my hand and the official seal of said City this 21st day of September , 1983. (SEAL) CITY CLERK