HomeMy WebLinkAbout1994-06-07; City Council; NS-282; CMC 5.26 amends - Mobilehome park space rent regulation...1.
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ORDINANCE NO. NS-282
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 5 OF THE CARLSBAD
MUNICIPAL CODE, BY ADDING CHAPTER 5.26 TO REGULATE MOBILEHOME PARK SPACE RENT.
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9 desirability of mobilehome rent control legislation: and
WHEREAS, the City has received petitions and requests
for mobilehome rent control legislation; and
WHEREAS, the City Council has held a number of special
meetings at the City’s mobilehome parks and received evidence
and heard arguments both pro and con as to the wisdom and
10 WHEREAS, the City Council held a special meeting at ’’ the Lanikai Lane Mobilehome Park on July 19, 1993 in order tc
om l2 carefully consider the relative positions of the park owner and SLUE?
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WHEREAS, the City Council held special meetings at the tlZ
the homeowner; and 26; 13
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Lakeshore Gardens Mobilehome Park on August 16, 1993 in order tc
ZLUO OZl? 16 ““50 kiz 4O-l 50 t ‘ 9 l7 further study the issue and receive evidence, testimony anc
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arguments; and
interested parties, on the necessity and desirability 0: 22
testimony from mobilehome park tenants and owners and othel 21
the City Council Chambers on Friday, October 1, 1993 and hearc 2o
WHEREAS, the City Council held a special meeting ir
May 17, 1994 and heard testimony from mobilehome park tenants 26
the City Council Chambers on Tuesday, May 3, 1994 and Tuesday 25
WHEREAS, the City Council held a regular meeting ii 24
23 mobilehome rent control legislation; and
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and owners and other interested parties, on the necessity and
desirability of mobilehome rent control legislation; and
WHEREAS, mobilehome ownership has historically been ar
economically more accessible form of home ownership,
particularly to individuals on fixed incomes, and offers
substantial benefits to the community in the form of moderate
cost housing: and
WHEREAS, there is a shortage of mobilehome park spaces
in the City of Carlsbad resulting in a low space vacancy rate;
and
WHEREAS, it is difficult to find sites for relocatior
of mobilehomes due to the shortage of spaces, restrictions 01
the age, size and style of mobilehomes enforced by many parks,
and other requirements relating to reinstallation oj
mobilehomes; and
WHEREAS, the cost for moving a mobilehome i:
substantial, with a significant risk of damage: and
WHEREAS, these market conditions have contributed to,
or threaten to contribute to, escalating rental rates: and
WHEREAS, a market of mobilehome park tenants has bee]
created producing an inequitable imbalance in the bargaininc
position of the park owner and the tenants: and
WHEREAS, mobilehome park tenants have placed q
substantial investment in their mobilehomes and appurtenances
and
WHEREAS, above-market space rents and the threat o
escalating rents diminishes the value of the tenants
investments in their mobilehomes: and
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WHEREAS, state law permits mobilehome park owners to
require tenants to improve their homes and such improvements
accrue to the benefit of the park owner by increasing the market
value of the park itself: and
WHEREAS, the City Council wishes to remedy this
inequitable situation and protect the rights of tenants in
mobilehome parks by regulating the amount of space rent which
can be charged by mobilehome park owners in a manner which is
fair and equitable to both tenants and owners: and
WHEREAS, the City Council finds that the adoption of
this ordinance would not have a significant, substantial or
adverse effect on the environment: and
WHEREAS, after reviewing and considering the evidence
and testimony presented, the City Council finds and declares
that it is necessary, and in the public interest, to protect
mobilehome owners from unreasonable space rent increases and/or
assessments, and at the same time, to permit mobilehome park
owners to obtain a fair and reasonable return.,
NOW, THEREFORE, the City Council of the City of
Carlsbad, California, does ordain as follows:
SECTION 1 : That Title 5 of the Carlsbad Municipal
Code is hereby amended to add Chapter 5.26 to read as follows:
Section 5.26.010 Section 5.26.020 Section 5.26.030 Section 5.26.040 Section 5.26.050 Section 5.26.060 Section 5.26.070 Section 5.26.080 Section 5.26.090
"CHAPTER 5.2 6
Title Purpose and intent Definitions Applicability Petition for exclusion Registration Base rent Annual adjustments to base rent Appeal of base rent
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Section 5.26.100 Section 5.26.110 Section 5.26.120 Section 5.26.130 Section 5.26.140
Section 5.26.150
Section 5.26.160
Section 5.26.170
Allowable pass-throughs Duty to maintain Capital expenditures Sale or transfer of mobilehomes Notification to prospective homeowner Base rent upon expiration of exempt lease under Civil Code section 798.17 Retaliation
Administrative guidelines.
5.26.010 Title. This chapter shall be known as the "Mobilehome Par% Rent Control 0rdinance.l8
5.26.020 Purpose and Intent. The purpose and intent of this chapter is to protect the rights of homeowner in mobilehome parks by regulating the amount of rent which can be charged by mobilehome park owners in a manner which is fair and equitable to both homeowner and owners.
5.26.030 Definitions.
The following definitions apply for purposes of this
chapter:
(a) !#Consumer Price Index" - the San Diego County Consumer Price Index (All Items - Urban Consumers, 1984 = 100). (b) Wobilehomegf - a mobilehome is a structure as defined in California Civil Code section 798.3. (c) ltMobilehome park" or lrparklt - an area of land where two or more mobilehome sites are rented, or held out for rent, to accommodate mobilehomes used for human habitation.
(d) "Mobilehome park space" or flspacevt - a site within a mobilehome park which can accommodate the location, maintenance and human habitation of a mobilehome. (e) 'IMobilehome park owner" or "park owner1$ - the owner of a mobilehome park or an agent or representative authorized to act on behalf of the owner in connection with
matters relating to tenancy of a mobilehome park space.
( f) "New construction" - any newly constructed spaces initially held out for rent after January 1, 1990.
(9) 'Ispace Rent" - total consideration authorized by this chapter to be received by a park owner for occupancy of a
space and services and amenities of a park. (h) IfHomeownerl1 - is a person who has a tenancy in a mobilehome park under a rental agreement as those terms are defined in Civil Code sections 798.8 and 798.12.
5.26.040 Applicability. The provisions of this chapter shall apply to all 1 mobilehome parks within the City of Carlsbad and to each
~ mobilehome park space within such parks except as provided in this chapter, except new construction and spaces expressly
exempted from this chapter by Civil Code section 798.17, or other express provisions of state or federal law. Spaces
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1 exempted by Civil Code section 798.17 shall automatically become
termination of the written lease agreement. 2
subject to all provisions of the chapter upon expiration or
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5.26.050 Petition for Exclusion.
(a) A mobilehome park may be excluded from the
provisions of this chapter if a Petition for Exclusion is filed
with the city clerk within 60 days after the effective date of this ordinance.
signatures of a majority of the homeowners in the park, with
each space entitled to one signature counting toward the majority. Spaces exempted under Civil Code section 798.17 shall
be counted for purposes of determining a majority, and
homeowners residing in those spaces shall be entitled to sigr the petition, notwithstanding the exemption from the other requirements of this chapter stated in section 5.26.040. The petition shall also contain statements for exclusion from the provisions of this chapter, such as a written agreement betweer the homeowners and the park owner which satisfies the purpose and intent of this chapter. (c) The clerk shall verify the signatures and the mobilehome park will be excluded from the provisions of this chapter, with the exception of the initial registratior requirements contained in sections 5.26.060(a) and (b).
(d) If there are changed circumstances after a par1 has been included or excluded the homeowners may petition fox exclusion or inclusion between January 1 and March 1 of eack year provided a petition meeting the requirements of subdivisior (b) is filed with the city clerk, and provided further that the petition shall contain statements for exclusion or inclusior within the provisions of this chapter. The City Council ma] approve, deny or condition the petition so that inclusion of the park is consistent with the purpose and intent of this chapter.
(b) The Petition for Exclusion shall contair!
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5.26.060 Resistration. (a) Initial Registration. Within 60 days after the effective date of this chapter, all mobilehome.park owners shall register the park in the manner required by this section. (b) Registration shall include:
1) the name, business address and telephont number of the mobilehome park owner and the address to which official notices shall be sent if different from the busines: address ;
2) the name, business address and telephonc number of all other persons or legal entities possessing a] ownership interest in the park and the nature of such interest;
3) the total number of spaces in the park and tht number of such spaces which are occupied:
4) a list of the rent charged for each space including spaces which are exempt pursuant to section 8.25.040;
5) a list of all other charges, with i description of the amount and purpose of each charge, includinc expiration dates if applicable; and
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6) any other information deemed necessary by Cit Council resolution for the implementation and enforcement 0: this chapter.
7) a list of all services and amenities provide1 to park homeowners. (c) Annual Registration. Each mobilehome park owne:
shall update the registration information by April 1 of eacl
year.
(d) Registration Fee. The mobilehome park owne:
shall pay a registration fee to fully cover the administrativl costs for the implementation and enforcement of this chapter The registration fee shall be established by resolution anc adjusted annually on July 1 of every year. The fee shall b( paid by the end of each month thereafter. Registration fees no.
paid by the 10th day of the month following their due date shal be delinquent and subject to penalties and interest according tl Chapter 3.12 of this code. (e) Pass-through of Registration Fees. Registratio: fees shall be equally paid by the park owner and homeowners ant the park owner shall be entitled to pass-through the amounts tl be paid by the homeowners on a monthly basis, but excludinc interest and penalties.
5.26.070 Base Rent. (a) The base rent for each mobilehome park spacl subject to this chapter shall be established by resolution o the City Council. The City Council shall make the determinatio: after a review of a fair market rent study applicable to th,
space, and any other relevant information. The base rent shal
represent the fair market value of the right to occupy the spaci and use the amenities and services of the park. There shall bi a rebuttable presumption that the base rent established by thi City Council is the fair market rental value of the space There shall also be a rebuttable presumption that the base ren represents a fair and reasonable return to the park owner. (b) The mobilehome park owner shall not demand 0: accept space rent for a mobilehome park space in excess of thi
base rent.
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5.26.080 Annual Adjustments to Base Rent.
(a) The base rent shall be adjusted annually to 7
percent of the yearly increase in the Consumer Price Index
(1984 = loo), except that the annual increase shall be a minimu of zero (0) percent and a maximum of eight (8) percent. Such increase shall be effective only if none o the following events have occurred:
(1) the mobilehome park owner is in violation o
any provision of this chapter, including but not limited to payment of fees;
(2) conditions exist within the mobilehome par which violate provisions of local, state or federal law relatin to the health, safety and welfare of the residents, for whic
the enforcing agency has issued a notice of correction o similar notice, and such violation has not been corrected. SUC violations must be of a substantial nature, affecting the us
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and enjoyment of the space tenancy, as determined by the
building official. (b) The date of the annual adjustment shall be or July 1 of each year.
(c) There shall be a rebuttable presumption that thc
~ adjusted base rent represents a fair and reasonable return tc
~ the park owner.
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5.26.090 Appeal of space rent.
(a) Upon the payment of the appropriate applicatior
fees and deposits, and within 60 days after notice of an annual
adjustment to base rent, a mobilehome park owner may appeal thc
space rent established by this chapter if the park ownel contends that the space rent does not represent a fair anc
reasonable return.
(b) The appeal shall be heard by a hearing off ice] appointed by the City Manager. The filing fees and cost5 associated with filing an appeal shall be initially borne by thc
party requesting the appeal. The costs shall ultimately bc
awarded to the prevailing party and paid through adjustment:
through an increase or decrease in the space rent as
appropriate. Filing fees and costs may be awarded, apportionec
or denied in the discretion of the hearing officer.
(c) The appeal shall be heard within forty-five (45)
days after a complete application is accepted by the Citl Manager by a park owner and served on the homeowners of eacl affected space. A proof of service shall be included with thc
application. The hearing officer shall select a hearing datc
and notice the parties in writing at least fifteen (15) days
prior to the hearing.
homeowners, or on the hearing officer's own motion, the hearinc officer may issue subpenas in accordance with the provisions oj Code of Civil Procedure section 1985 et seq. Service of process
shall be subject to the provisions of Title 3, Part 4, Chapte~
2 of the Code of Civil Procedure and such process shall extenc to all parts of the state. All witnesses appearing pursuant tc
subpena, other than a park owner or homeowner, shall be paic fees and mileage as prescribed by law for witnesses in civil actions in superior court. The fees and mileage shall be paic
by the party who made the request for the subpena. (e) The hearing officer shall receive relevanl evidence and allow the parties a reasonable opportunity to be heard. The hearing officer shall determine whether the space
~ rent represents a fair and reasonable return to the park owner The City Council shall adopt a resolution containing procedure: for the hearing and guidelines for the decision made by the hearing officer. The resolution shall contain a nonexclusive
list of factors to be used in making the determination. The
procedures and guidelines shall comply with state and federa:
constitutional requirements regarding the property rights of thc
park owner. The decision of the hearing officer shall be ii
writing and contain references to the guidelines adopted by thc
City Council. The hearing officer shall keep a complete record
(dl At the request of the park owner or thc
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of the proceedings and submit it to a reviewing court or the city, if requested, along with copies of all exhibits. (f) The decision of the hearing officer will be final notwithstanding the provisions of section 1.20.600 of this code, (9) Homeowners may use the procedure in this sectiol to petition for a decrease in space rent if the park ownel reduces or eliminates services or amenities without adjustinc
the space rent accordingly. An application must be submittec which contains the signatures of a majority of the homeowners ol the spaces subject to the space rent, with each space entitlec
to one signature counting toward the majority. The applicatior
must also include a proof of service on the park owner of z
written claim signed by at least one homeowner specificall!
describing the allegations against the park owner and the reliej requested. The proof of service must show at least 30 days notice prior to the application submittal. (h) If an appeal is granted, the space rent as determined by the hearing officer will be effective 90 days
after homeowners are notified by the park owner of the increase, Decreases will be effective on the first day of the montl following the decision.
5.26.100 Allowable Dass-throushs A mobilehome park owner may, in addition to the bast rent, separately charge a homeowner for any fees allowed to bc passed through by applicable provisions of the Californi; Mobilehome Residency Law contained in Division 2, Part 2, Chapter 2.5 of the Civil Code (Civ.Code 5 798 et seq.) an( successor statutes. These charges shall not be considered a: part of the space rent. No other separate charges shall bt allowed.
5.26.110 Duty to maintain The mobilehome park owner has a duty to keep an( maintain the physical improvements in the common facilities 0: the mobilehome park in good working order and condition and tc maintain or exceed the existing level of park amenities an(
services. A homeowner may bring a cause of action against ;
park owner pursuant to Civil Code section 798.84 provided thc homeowner first at least 30 days prior written notice of thc intention to commence court action. The notice shall be ii writing, signed by the homeowner or homeowners making thc allegations and shall notify the park owner of the basis of thc claim, the specific allegations, and the remedies requested.
5.26.120 Capital expenditures
Capital expenditures may be made by agreement betweel the park owner and a majority of homeowners and agreed- up01 amounts added to space rent. Capital improvements may also bc made by the park owner and the appropriate capital expense: considered for an increase in space rent as permitted by thc procedures set forth in this chapter.
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5.26.130 Sale or transfer of mobilehomes (a) All of the provisions of this chapter shall continue in full force and effect upon sale or transfer of z
mobilehome.
(b) A mobilehome park owner shall not require 01 coerce purchasers or prospective purchasers of mobilehomes tc
sign a lease which exempts them from this chapter under Civil Code section 798.17.
5.26.140 Notification to homeowners and Prospective homeowners The mobilehome park owner shall provide all homeowners and prospective homeowners with a copy of the Mobilehome Par1 Rent Control Ordinance together with a schedule showing tht applicable space rent under this chapter prior to the time a1
agreement to pay space rent to the park owner is executed< Proof of notification shall be maintained at the park an( subject to inspection by the City.
5.26.150 Base rent upon expiration of exempt leas6 under Civil Code section 798.17
When a lease which is exempt under Civil Code sectiol 798.17 expires this chapter shall automatically apply to saic space and the space rent for purposes of this chapter shall no1 include any pass-throughs prohibited by this chapter.
5.26.160 Retaliation
It shall be unlawful for any person to retaliatt against a homeowner for exercising any rights provided by thi3 chapter, or registering a complaint relating to enforcement 01 its provisions.
5.26.170 Administrative suidelines. The City Manager is authorized to adopt sucl administrative guidelines as are necessary to fully implemenl the purposes and intent of this chapter.I1
19 SECTION 2: If this ordinance is declared invalid 01
2o unenforceable for any reason, then Ordinance No. NS-263 shal:
21 // become enforceable and in full force and effect in place of thi!
22 I/ ordinance, Until that time, Ordinance No. NS-263 shall not bl
23 11 effective for any other purpose.
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SECTION 3: If any section, subsection, sentence
clause, phrase, part or portion of this ordinance is for an:
reason held to be invalid or unconstitutional by any court o
27 // competent jurisdiction, such decision shall not affect thc
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portions be declared invalid or unconstitutional. 6
sections, subsections, sentences, clauses, phrases, parts, 01 5
portion thereof, irrespective of the fact that any one or morc 4
each section, subsection, sentence, clause, phrase, part 01 3
Council declares that it would have adopted this ordinance an( 2
validity of the remaining portions of this ordinance. The Cit!
7 EFFECTIVE DATE: This ordinance shall be effectivc
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Carlsbad within fifteen days after its adoption. 11
least once in a newspaper of general circulation in the City 0: 10
the adoption of this ordinance and cause it to be published ai 9
thirty days after its adoption, and the City Clerk shall certif!
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INTRODUCED AND FIRST READ at a regular meeting of thr
Carlsbad City Council on the 23rd day of MAY , 1994,
and thereafter
PASSED AND ADOPTED at a regular meeting of the Cit!
Council of the City of Carlsbad on the 7th day of JUNE ,
1994, by the following vote, to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard
NOES: Council Member Finnila
ABSENT : None
ED AS TO FORM AND LEGALITY
-.e Q. R-“
RONALD R. BALL, City Attorney 6. 8-W-
ATTEST :
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28 ALETHA L. RAUTENKRANZ, City Cle$k
mobilpk/ord/kjh/rev. 5/18/94 10