HomeMy WebLinkAboutAGENDA REPORT 1997 1105 CC REG ITEM 08BTO:
MOORPARK CITY COUNCIL
AGENDA REPORT
Honorable City Council
59i . a-
ITEM 8• 00
AL4erx! -� —
FROM: Nancy Burns, Management Analyst b=
DATE: October 14, 1997 (Mtg. of 11/5/97)
SUBJECT: Consider Revisions to Mobilehome Park Rent
Stabilization Ordinance
Background
At the Town Hall meeting April 12, 1997, and at various Council
meetings since that time, mobilehome park residents have
expressed their concerns about conditions at the City's
mobilehome parks and about space rent increases. They described
concerns with general maintenance of the parks and maintenance of
utility meters, in particular. Tenants also spoke to Council of
their concerns about the declining value of their mobilehomes and
the lack of affordability in mobilehome parks to low income
residents.
Staff was directed to investigate utility charges to mobilehome
park residents, make a comparison of space rents at mobilehome
parks in the area, and investigate charges of improper space rent
increases at the two mobilehome parks in Moorpark. The City
Council enacted a moratorium, effective May 28, 1997, which
prevented space rent increases and directed that another
ordinance was to be prepared for future consideration, following
the review of resident concerns and identification of mediation
procedures which could be available in conjunction with the
regulation of mobilehome space rents. The moratorium on space
rent increases expired August 21, 1997. In order to obtain input
from residents and mobilehome park owners alike in the fashioning
of a new ordinance, a committee was formed with representatives
of tenants and owners from both mobilehome parks in the City.
Discussion
As previously reported to Council, investigations were made into
the areas of concern to residents. The procedures for billing
gas and water service to mobilehome residents were studied, and
actual bills of residents at Villa del Arroyo were examined.
Fees charged were found to be within expected ranges.
C: \M \NLB \AGNDARPT \MHNUORD- 10/19/97- October 28, 1997 — 1
A survey was made of rents at twenty -one mobilehome parks in
neighboring jurisdictions. The rents charged at the City's two
mobilehome parks fall within the ranges for rents at similar
parks in other nearby locations.
Resident concerns about maintenance of park facilities and
utility meters were addressed by providing information, as
previously reported to Council. Residents were advised of the
jurisdiction of the State's Department of Housing and Community
Development, Office of the Mobilehome Ombudsman, for matters
pertaining to health and safety within mobilehome parks, and the
Ventura County Department of Weights and Measures for gas meters.
Conditions at the City's smaller mobilehome park have prompted
tenants to form a homeowners' association.
Staff investigated charges of improper space rent increases at
both mobilehome parks in the City and found that the questions
about space rent increases concerned situations involving an
allowable increase due to a change in occupancy, sometimes
coupled with a standard space rent increase which occurred within
a short span of time.
On June 4, 1997, the City Council authorized the formation of a
Mobilehome Park Rent Stabilization Ordinance Review Committee.
The committee was composed of representatives of residents at
both the City's mobilehome parks, the homeowners association at
Villa del Arroyo, management at both parks, and a citizen at
large. (Moorpark Mobilehome Park did not have a homeowners
association at the time the committee was formed.) The committee
was chaired by Councilmember Chris Evans and met during July and
August to provide input for a new Mobilehome Rent Stabilization
Ordinance.
Tenant representatives on this committee expressed the concerns
of tenants about the possibility of two space rent increases in
one year: the increase due to a change in occupancy and the
annual standard space rent increase. It was reported that some
tenants did not understand these provisions in the ordinance or
did not remember being notified of them when they moved to the
park.
Tenant representatives expressed a preference for mediation
provisions in a new ordinance. They asserted that a park owner
should be required to justify a request for an increase in space
rent by "opening the books" of the park, rather than enjoy an
automatic annual increase. Tenants called for a review of the
standard space rent increase, which has been 4% for the last few
years, while the CPI has been declining since early 1991.
C: \M \NLB \AGNDARPT \MHNUORD- 10/19/97- October 29, 1997 —
i V Zd.12
Staff reviewed rent stabilization ordinances from other
jurisdictions and held discussions with those who administer
these ordinances, particularly to learn of the staff time
required to administer other rent stabilization programs.
The revisions being presented to the Council will clarify
administrative language in the Mobilehome Park Rent Stabilization
Ordinance and will affect the standard space rent increase by
removing the current minimum annual adjustment of 40. Tenants
will receive a summary of the provisions of the ordinance that
will aid in their understanding of its affect on their housing
expense. The resident concerns that are addressed by the
proposed revisions are summarized in "Attachment A ".
Recommendation
1. Open public hearing and accept public testimony on
Ordinance No. , revisions to Mobilehome Park Rent
Stabilization;
2. Close public hearing; and
3. Introduce Ordinance No. for first reading.
C: \M \NLB \AGNDARPT \MHNUORD- 10/14/97- 0ctober 29, 1997
000243
Attachment A
Concern
Recommended Action
Effect
1. "Automatic" 40
1. Eliminate floor
1. Reduces standard
increase annually,
for rent increase;
space rent increase
when CPI has been
limit allowable
in this time of
declining for years.
standard space rent
declining CPI; still
increase to CPI.
allows owner to
petition for an
increase under other
sections of
ordinance if he can
demonstrate this
need in order to
enjoy a fair return.
2. Desire for owner
2. No action.
2. Owner still
to justify a request
required to justify
for standard space
request for increase
rent increase.
under other sections
of ordinance, if
standard space rent
increase does not
provide fair return.
3. Substantial rent
3. Clarify language
3. Ensures greater
increase when coach
in vacancy control
degree of equality
is removed from
section to include
among residents;
space; possible
situations where
prevents tenants in
incentive for park
coach is removed.
new coaches from
owners to vigorously
bearing
enforce park rules
substantially higher
and pressure
economic burden than
residents to vacate,
other tenants.
along with coach.
Provides consistency
for owner's ability
to increase rent due
to a change in
occupant or the
removal of the coach
(vacancy control).
\M \NLB \AGNDARPT \MNNUORD- 10/14/97- October 28, 1997 — 4
0(0244
Concern
Recommended Action
Effect
4. Possibility of 2
4. Provide summary
4. More complete
rent increases in 1
of ordinance in
information
year (1 due to
clear,
disclosed to
change of occupancy;
understandable
prospective tenants;
1 due to standard
terms; require
better awareness of
space rent increase)
owner to provide
terms of tenancy for
and the lack of
summary in addition
existing tenants.
awareness of this
to text of ordinance
provision by
to all tenants.
tenants.
C: \M \NLB \AGNDARPT \MHNUORD- 10/14/97- October 28, 1997 — 5
Upp245
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;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK,
CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. The definitions of Compliance, Consumer Price
Index, and Space rent occupancy change in Section 5.52.020,
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 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).
"Space rent occupancy change" means any time that a
mobilehome in a mobilehome park
is vacated voluntarily or as a result of an eviction
action or a resale of the mobilehome, or any time a mobilehome is
removed from the space in a mobilehome park, either voluntarily or
as a result of an eviction action or resale of the mobilehome.
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 perce-rrt
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 o 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 (180) 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 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 with a summary cif this chapter's'' key
provisions'' and the effect such provisions may have on tenants'.
This summary shall be provided by the City. Within thirty (30);
days after receiving such summary from the City,; the owner shall
provide a copy of same to all existing tenants.
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.
v0247
+�'
PASSED AND ADOPTED this day of
ATTEST:
Lillian E. Hare
City Clerk
Mayor of the City of Moorpark
000248
MOORPARK
1 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
November 4, 199 -,
Ms. Norma Johnson, CPM
Property Manager
Bessire & Casenhiser, Inc.
725 Brea Canyon Road, Suite 6
Walnut, California 91789
Dear Ms. Johnson:
The purpose of this letter is twofold: 1) to confirm the
original schedule of noticed space rent increases to be effective
January 1, 1998, at Villa del Arroyo, which was submitted
September 25, 1997, and to declare your application complete for
a standard space rent increase for Villa del Arroyo Mobilehome
Park, effective January 1, 1998; and 2) to confirm your
understanding of provisions of Chapter 5.52 of the Moorpark
Municipal Code (the Mobilehome Park Rent Stabilization
Ordinance). Specifically, this will confirm the effect of space
rent increases on spaces already receiving a discount due to an
approved hardship waiver of a previously noticed rent increase.
The spaces in question at this time are #84, #87, #107, #125,
#164, #226, #237 and 4240. These spaces received a full or
partial waiver of the noticed four per cent (40) rent increase
which became effective December 1, 1996.
The ordinance provides for an annual standard space rent increase
which is based on the space rent in effect for each space. The
space rent will not be the same as the discounted rent being paid
if a waiver was granted previously. As your letter of November
3, 1997, correctly states, "The reduced rent is a benefit only to
the existing resident who applies and qualified for the rent
reduction and is not transferable to a new party." Furthermore,
this benefit is valid for one year only to qualified and approved
applicants. Each applicant needs to reapply on an annual basis.
If an applicant's financial situation improves, he /she may or may
not be eligible for a hardship waiver of the next noticed space
rent increase. If a tenant who previously was granted a hardship
C: \M \NLB \MOBILHOM \VILLA DEL ARROYO \98 RENT INCREASE SUPPLEMENT 4 CLARIFICATION RE WAIVERS - November 4, 1997
r1A1 mit'r, nuN I tH tstHNAHUU M. PEREZ CHRISTOPHER EVANS DEBBIE RODGERS TEASLEY JOHN F_ W07NIOK
INTEROFFICE MEMORANDUM - 5 1997
TO: Steve Kueny, City Manager
FROM: Nancy Burns, Management Analyst --�
DATE: November 5, 1997
SUBJECT: City Council Agenda for November 5, 1997,
Item No. 8B under Public Hearings:
Consider Revisions to Mobilehome Park Rent
Stabilization Ordinance
This item was inadvertently placed in the Public Hearing Section
of tonight's regular City Council meeting agenda, through no
error of the City Clerk's office. The item does not require a
Public Hearing and was not noticed as such. I will preface the
staff report with a statement to this effect.
Please advise if you recommend any other action. Thank you.
cc: Honorable City Council
Lillian Hare, City Clerk
John Nowak, Interim Redevelopment Agency Manager
C: \M \NLB \MOBILEHOM \VILLA DEL ARROYO \MEMOSK - November 5, 1997