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HomeMy WebLinkAbout1994-05-17; City Council; 12714; Modilehome park rent control ordinance draftc* .A O? L , z -6 u u 5 4J b G -r4 k w 0 ; I2 rp d -4 a M 0 G rd a k! $2 % $0 uo rnh 0 .. urd aJu cd *d n CI-S am bd 00 a a- rdm s N -ri rd +Jh 3z G- Mh u5 5a a,G bo 0 x ua ha, 4 ZS !-tal u OP uo rdu $66 aJw u TI ma 4J LIE a,aJ CJ aJ4 -A ad brp au a, -la .I4 (I] u Crd vrp L e a \ b \ 4 Ul Clpi OF CARLSBAD - AGEW BILL c-- r AB # - TITLE: DRAFT MOBILEHOME p- RENT CONTROL DEPl MTG. 5/17/94 CITY ORDINANCE DEPT. CA CITY RECOMMENDED ACTION: Review and receive comments on the draft mobilehome pi control ordinance and direct the City Attorney to return appropriate documents and ordinance for introduction. 1 ITEM EXPLANATION The City Council has conducted numerous workshops and held on the necessity and desirability of regulating rents in tk: mobilehome parks. It has also authorized a fair market re entitled the "Mobile Home Park Rental Study by Keyser Associates, Inc. 1I and has considered its conclusil recommendations on this issue. After gathering facts pertz this issue, hearing arguments and receiving evidence, . Council approved a mobilehome rent control program in co its meeting of May 3, 1994 and directed the City Attorney t with a draft ordinance (Exhibit IlAll) for consideratio recommended ordinance is attached which accomplishes the f things : ~ 4 The .ordinance is applicable to all rental mobileho located within the City. However, it provides a n allowing park tenants to exclude the park from the orc operation. The petition must be signed by a majorit] residents within 60 days after the effective date ordinance. 4 The ordinance requires all mobilehome park owners to and to pay a fee to cover the administrative costs as with the administration of the ordinance. z P L 4 The ordinance provides that the Council will estah base rent for each mobilehome park subject to the 01 At its hearing of May 3 , 1994, the Council determi Marston study for Lanikai Lane and Rancho Car: accordance with Exhibit rfB1f. this would be consistent with the low range of th 4 The park owner will annually receive an automatic in( 75 percent of the CPI with a maximum increase of 8 The increase will not be effective if the park own violation of any provision of the ordinance or if t has failed to respond to a notice of correction issuc City, state or a federal government agency which rc the health, safety or welfare of the residents. i, a Supreme Court has determined that this is a const: 3 4 The park owner may appeal the space rent establish€ officer appointed by the City Manager and the cost pa i formula in the ordinance if the owner believes that does not represent a fair and reasonable return. !I requirement. The appeal will be submitted to a z 0 0 Y u 0 0 the party requesting the appeal. The decision of the f officer can only be reviewed by a court. There provision for appeals to the City Council. A major tenants may appeal the space rent if the park owner redl eliminates services without a corresponding adjustm rent e 4 Under the California Mobilehome Residency Law a tenant 1 be charged a fee for other than rent, utilities and inc: reasonable charges for services actually rendered. f expenditures may not be passed-through to tenants exc agreement. A park owner may apply for a rental increasl upon capital expenditures not shared by tenants. FISCAL IMPACT Administration: control ordinance are largely dependent upon the amount 0: time required to administer the program, including the process. Where possible, program costs will be recovered fr paid by the mobilehome park owners and tenants. Costs to administer the rent control program have been estim $52,600. This estimate should be considered as a "best ca includes both routine and non-routine tasks. Routine include: annual registration, collection of fees, and rev. approval of annual adjustments. Non-routine tasks include adjustment appeals, verification of petitions, n requirements, dispute resolution, and associated maintenal operating costs. Annual Adjustment Ameals (Hearing) : In addition to City staff time required to monitor adjustment appeals, the ordinance provides for appointmer Hearing Officer to preside over the appeal process. Si recommending that the direct cost of the appeal process b entirely by the party initiating the appeal. Individuals or groups who appeal the annual adjustment I required to pay a nominal application filing fee and a deposit. The deposit will be used to fund the cost of the As initial funds are depleted, the applicant will be requ deposit additional funds to cover any remaining costs. Petition for Exclusion/Inclusion: Lakeshore Gardens Mobilehome Park has indicated their desir excluded from the provisions of any rent control ordinanc may be adopted. If at some point in the future residc Lakeshore Gardens wish to be eligible for inclusion in control program, the Fair Market Rent Study may need to be accordingly. The original study which included Rancho Carl5 preparing a new study for Lakeshore Gardens would re: additional costs. Annual costs associated with implementation of a mandatc Lanikai Lane cost approximately $15,000 a Expanding the s 0 0 ” u Voter Initiative/Referendum: Owners have indicated they would petition for a referendum initiative, if the City Council adopts a rent control ordi If owners were successful with a referendum petition, th Council would have the option of repealing the ordinance placing the issue on the ballot. If the issue were placed November 1994 ballot, the cost to the City is estimated at 3 If the issue were placed on a ballot at a special electic cost to the City is estimated at $125,000. Lesal Defense of A Mandated Rent Control Ordinance: If the proposed ordinance is adopted, it is probable ‘th validity of the ordinance, in whole or in part, will be COI by one or more lawsuits brought against the City. It is impc to predict the total costs which could be incurred by the ( defending a rent control ordinance. However, recent experil other jurisdictions would indicate the potential liability City at somewhere between $50,000 and $1 million. ENVIRONMENTAL REVIEW The proposed ordinance is undergoing environmental review l appropriate environmental documents will be presented to ( for approval along with the formal introduction of the ord The Council will also need to adopt resolutions specifyinc costs and procedures in order to implement the ordinance. T Manager may adopt administrative guidelines to carry c purpose and intent of the ordinance thereby reducing the co role in the routine administration of the ordinance. EXHIBITS A - Draft Ordinance B - Lanikai Lane Rent Schedule I - 1 2 3 4 5 6 7 a 9 10 11 0 I* a 5. .$ *‘ ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITJ CARLSBAD, CALIFORNIA, AMENDING TITLE 5 OF THE CARL MOBILEHOME PARK SPACE RENT. WHEREAS, the City has received petitions and requ MUNICIPAL CODE, BY ADDING CHAPTER 5 @ 26 TO REGU for mobilehome rent control legislation; and WHEREAS, the City Council has held a number of spe meetings at the City’s mobilehome parks and received evid and heard arguments both pro and con as to the wisdom desirability of mobilehome rent control legislation; and WHEREAS, the City Council held a special meetin 1 the Lanikai Lane Mobilehome Park on July 19, 1993 in orde I 12 Sm 395 carefully consider the relative positions of the park ownel &zm the tenants ; and an8 l3 JOW2 JUO 14 2044 >JZ WHEREAS, the City Council held special meetings ai Uk’E 9 ODlL < 4- 15 ““$1. 0 Lakeshore Gardens Mobilehome Park on August 16, 1993 in ordt E:; zq 17 a>a$ Rancho Carlsbad Mobilehome Park on August 4, 1993 and at zwm 0 Z A O. 16 a02 60 further study the issue and receive evidence, testimony arguments; and 18 19 WHEREAS, the City Council held a special meetiX the city Council Chambers on Friday, October 1, 1993 and 1 20 21 22 23 24 25 26 testimony from mobilehome park tenants and owners and ( interested parties, on the necessity and desirabilit: mobilehome rent control legislation; and WHEREAS, mobilehome ownership is an economically accessible form of home ownership, particularly to indivic on fixed incomes, and offers substantial benefits to 27 // community in the form of moderate cost housing; and 28 II mobilpklordlkjhlrev. 5/11/94 1 * 0 0 - 1 WHEREAS, there is a shortage of mobilehome park SP 2 and 3 in the City of Carlsbad resulting in a low space Vacancy r 4 WHEREAS, it is difficult to find sites for reloca 5 and other requirements relating to reinstallation 7 the age, size and style of mobilehomes enforced by many pa 6 of mobilehomes due to the shortage of spaces, restriction 8 9 10 11 12 om SWF &E& 13 $035 14 m> a08 oug iUU dt5‘T: qyoB 15 a>$? zwmo ““90 002 58Y >$I% 17 50 tJZ 0Z-l ~ 16 18 19 20 21 22 23 24 25 26 27 28 mobilehomes; and WHEREAS, the cast for moving a mobilehome substantial, with a significant risk of damage; and WHEREAS, these market conditions have contributec or threaten to contribute to, escalating rental rates; and WHEREAS, a captive market of mobilehome park ter has been created producing an inequitable imbalance in bargaining position of the park owner and the tenants; anc WHEREAS, mobilehome park tenants have plact substantial investment in their mobilehomes and appurtenar and WHEREAS, above-market space rents and the threz escalating rents diminishes the value of the ten; investments in their mobilehomes; and WHEREAS, state law permits mobilehome park ownei require tenants to improve their homes and such improve] accrue to the benefit of the park owner by increasing the mi value of the park itself; and WHEREAS, the City Council wishes to remedy inequitable situation and protect the rights of tenant mobilehome parks by regulating the amount of space rent ’ mobilpk/ord/kjh/rev. 5/11/94 2 I/ 0 0 ll - 1 can be charged by mobilehome park owners in a manner whic 2 fair and equitable to both tenants and owners; and 3 WHEREAS, the City Council finds that the adoptio 4 6 adverse effect on the environment; and 5 this ordinance would not have a significant, substantia. WHEREAS, after reviewing and considering the evid 7 and testimony presented, the City Council finds and decl 8 that it is necessary, and in the public interest, to prc 9 mobilehome owners from unreasonable space rent increases ar 10 owners to obtain a fair and reasonable return, 11 assessments, and at the same time, to permit mobilehome 12 NOW, THEREFORE, the City Council of the Cit] om ?2 KLTA J"U% ao8 JLJ-0 4046 m,jZ U''5 sk%; "5%" E:? c22 &u?j 9 00, I a- OZA - aod 0" - 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Carlsbad, California, does ordain as follows: SECTION I: That Title 5 of the Carlsbad Munic Code is hereby amended to add Chapter 5.26 to read as fol: "CHAPTER 5.2 6 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 Section 5.26.100 Section 5.26.110 Section 5.26.120 Section 5.26.130 Section 5.26.150 Section 5.26.160 Section 5-26.140 Title Purpose and intent Definitions Applicability Petition for exclusion Registration Base rent Annual adjustments to base rent Appeal of base rent Allowable pass-throughs Duty to maintain Capital expenditures Sale or transfer of mobilehomes Notification to prospective tenant Retaliation Administrative guidelines. 5.26.010 Title. This chapter shall be known as the IIMobilehome Rent Control 0rdinance.I' 5.26.020 Purpose and Intent. The purpose and intent of this chapter is to pr mobilpk/ord/kjhlrev. 511 1/94 3 L - iwg a> 2;sz 008 &E& ,Ow% >3z dtSK OZ-I? ""90 Eo3 >:$ 60 608 ,La 30<6 zula 683 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2o 21 ~ 22 23 , 24 25 26 27 28 I1 0 e the rights of tenants in mobilehome parks by regulating amount of rent which can be charged by mobilehome park owner a manner which is fair and equitable to both tenants and own 5.26.030 Definitions, The following definitions apply for purposes of chapter: (a) "Consumer Price Index" - the San Diego Co Consumer Price Index (All Items - Urban Consumers, 1984 = 1 (b) "Mobilehomer1 - a mobilehome is a structurc defined in California Civil Code section 798.3. (c) "Mobilehome park" or llparklt - an area of where two or more mobilehome sites are rented, or held out rent, to accommodate mobilehomes used for human habitation within a mobilehome park which can accommodate the locat maintenance and human habitation of a mobilehome. (e) "Mobilehome park owner" or Itpark ownert1 - owner of a mobilehome park or an agent or representz authorized to act on behalf of the owner in connection matters relating to tenancy of a mobilehome park space. (d) glMobilehome park space" or '!space1g - a (f) '!New construction" - any newly constructed SI (9) "Space Rent" - total consideration authorizt initially held out for rent after January 1, 1990. this chapter to be received by a park owner for occupancy space and services and amenities of a park. (h) "Tenantll - person who has a tenancy : mobilehome park under a rental agreement, with the t I1tenancyv1 and "rental agreement" as defined in Civil sections 798.8 and 798.12. 5.26.040 Armlicabilitv. The provisions of this chapter shall apply to mobilehome parks within the City of Carlsbad and to 1 mobilehome park space within such parks except as providc this chapter, except new construction and spaces exprc exempted from this chapter by Civil Code section 798.17 other express provisions of state or federal law. SI exempted by Civil Code section 798.17 shall automatically bl subject to all provisions of the chapter upon expiratic termination of the written lease agreement. 5.26.050 Petition for Exclusion. (a) A mobilehome park may be excluded fron provisions of this chapter if a Petition for Exclusion is with the city clerk within 60 days after the effective da this ordinance. signatures of a majority of the tenants in the park, with space entitled to one signature counting toward the majo Spaces exempted under Civil Code section 798.17 shall be co for purposes of determining a majority, and tenants residi those spaces shall be entitled to sign the peti notwithstanding the exemption from the other requiremen. this chapter stated in section 5.26.040. The petition (b) The Petition for Exclusion shall co mobilpklordlkjhlrev. 511 1/94 4 I/ 0 0 - 1 2 3 4 5 6 7 8 9 10 11 12 O sug Yr rah a08 dUC3 oug so<< dtSK >dZ <>-a< OZJ? Knqo aoA 9 (JOB I <- FZ$ 60 Q zuv) 0 >%!= 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 also contain statements for exclusion from the provision: this chapter, such as a written agreement between the ten' and the park owner which satisfies the purpose and inteni this chapter. (c) The clerk shall verify the signatures and mobilehome park will be excluded from the provisions of chapter, with the exception of the initial registra requirements contained in sections 5.26.060(a) and (b). has been excluded and it is appropriate to apply the provis of this chapter to be applied to the excluded park, the ten may petition for reinclusion between January 1 and March each year provided a petition meeting the requirement: subdivision (b) is filed with the city clerk, and prov further that petition shall contain statements for inclu within the provisions of this chapter. The City Council approve, deny or condition the petition so that inclusion oj park is consistent with the purpose and intent of this chapt (d) If there are changed circumstances after a 5.26.060 Reqistration. (a) Initial Registration. Within 60 days after effective date of this chapter, all mobilehome park owners s register the park in the manner required by this section. (b) Registration shall include: 1) the name, business address and teler number of the mobilehome park owner and the address to whi official notices shall be sent if different from the busi address; 2) the name, business address and teler number of all other persons or legal entities possessin ownership interest in the park and the nature of such inter6 3) the total number of spaces in the park an( 4) a list of the rent charged for each SI including spaces which are exempt pursuant to section 8.25. I 5) a list of all other charges, wit description of the amount and purpose of each charge, inclt expiration dates if applicable; and 6) any other information deemed necessary by Council resolution for the implementation and enforcemer this chapter, 7) a list of all services and amenities pro to park tenants. (c) Annual Registration. Each mobilehome park q shall update the registration information by April 1 of year D (d) Registration Fee. The mobilehome park 1 shall pay a registration fee to fully cover the administr, costs for the implementation and enforcement of this cha: The registration fee shall be established by resolutior adjusted annually on July 1 of every year. The fee sha: paid by the end of each month thereafter. Registration fee paid by the 10th day of the month following their due date be delinquent and subject to penalties and interest accordi Chapter 3.12 of this code. number of such spaces which are occupied; mobilpWordlkjh1rev. 91 1194 5 I/ - a am mu? m> &EW Jvug a08 252, ;g$g E:? goo? a;$: zumg 0Z-l - ““%a E:% a01 00 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ~ 0 0 (e) Pass-through of Registration Fees. Registra. fees shall be equally paid by the park owner and tenants and park owner shall be entitled to pass-through the amounts tl paid by the tenants on a monthly basis, but excluding inte: and penalties. 5.26.070 Base Rent, (a) The base rent for each mobilehome park s: subject to this chapter shall be established by resolutio: the City Council. The City Council shall make the determina after a review of a fair market rent study applicable to space, and any other relevant information. The base rent s represent the fair market value of the right to occupy the s and use the amenities and services of the park. There shal a rebuttable presumption that the base rent established by City Council is the fair market rental value of the sp There shall also be a rebuttable presumption that the base represents a fair and reasonable return to the park owner. (b) The mobilehome park owner shall not deman accept space rent for a mobilehome park space in excess of base rent. 5.26.080 Annual Adjustments to Base Rent. (a) The base rent shall be adjusted annually t percent of the yearly increase in the Consumer Price Ir (1984 = loo), except that the annual increase shall be a mir Such increase shall be effective only if nor the following events have occurred: (1) the mobilehome park owner is in violatic any provision of this chapter, including but not limited payment of fees; (2) conditions exist within the mobilehome which violate provisions of local, state or federal law relz to the health, safety and welfare of the residents, for h the enforcing agency has issued a notice of correctio: similar notice, and such violation has not been corrected, violations must be of a substantial nature, affecting the and enjoyment of the space tenancy, as determined by building official. (b) The date of the annual adjustment shall 1 July 1 of each year. (c) There shall be a rebuttable presumption tha adjusted base rent represents a fair and reasonable retul of zero (0) percent and a maximum of eight (8) percent, the park owner. 5.26.090 Ameal of space rent. (a) Upon the payment of the appropriate applic, fees and deposits, and within 60 days after notice of an a: adjustment to base rent, a mobilehome park owner may appea space rent established by this chapter if the park 1 contends that the space rent does not represent a fail reasonable return. (b) The appeal shall be heard by a hearing of appointed by the City Manager. The filing fees and 1 1 mobilpk/ord/kjh/rev. 5/11/94 I 6 I I/ 0 0 - 1 2 3 4 5 6 7 8 9 10 11 12 am 3US Yr =E& 13 ao8 Ow8 dU, soqa 14 >52 CrksCr 9pnS 15 BEZx 16 2&$2 Fsl 401 $23 17 u 18 19 20 21 22 23 24 25 26 27 28 associated with filing an appeal shall be initially borne by party requesting the appeal. The costs shall ultimate11 awarded to the prevailing party and paid through adjustm through an increase or decrease in the space rent appropriate. (c) The appeal shall be heard within forty-five days after a complete application is accepted by the Manager by a park owner and served on the tenants of affected space. A proof of service shall be included with application. The hearing officer shall select a hearing and notice the parties in writing at least fifteen (15) prior to the hearing. (d) At the request of the park owner or the tena or on the hearing officer's own motion, the hearing officer issue subpenas in accordance with the provisions of Codc Civil Procedure section 1985 & seq. Service of process s be subject to the provisions of Title 3, Part 4, Chapter the Code of Civil Procedure and such process shall extend tc parts of the state. All witnesses appearing pursuani subpena, other than a park owner or tenant, shall be paid and mileage as prescribed by law for witnesses in civil act party who made the request for the subpena, (e) The hearing officer shall receive relc evidence and allow the parties a reasonable opportunity t heard. The hearing officer shall determine whether the I rent represents a fair and reasonable return to the park oh The City Council shall adopt a resolution containing procec for the hearing and guidelines for the decision made by hearing officer. The resolution shall contain a nonexclL list of factors to be used in making the determination. procedures and guidelines shall comply with state and fec constitutional requirements regarding the property rights 0: park owner. The decision of the hearing officer shall k writing and contain references to the guidelines adopted b: City Council. The hearing officer shall keep a complete re of the proceedings and submit it to a reviewing court or city, if requested, along with copies of all exhibits. in superior court. The fees and mileage shall be paid bj (f) The decision of the hearing officer will be (9) Tenants may use the procedure in this secti petition for a decrease in space rent if the park owner re1 or eliminates services or amenities without adjusting the rent accordingly. An application must be submitted > contains the signatures of a majority of the tenants oj spaces subject to the space rent, with each space entitll one signature counting toward the majority. The applic must also include a proof of service on the park owner written claim signed by at least one tenant specifi describing the allegations against the park owner and the r requested. The proof of service must show at least 30 notice prior to the application submittal. (h) If an appeal is granted, the space re1 determined by the hearing officer will be effective 90 after tenants are notified by the park owner of the incr notwithstanding the provisions of section 1.20,600 of this 1 mobilpklordlkjhlrev. 511 1/94 7 ll 0 0 II 1 Decreases will be effective on the first day of the m following the decision. 2 3 4 5 6 7 8 9 5.26.100 Allowable pass-throuqhs A mobilehome park owner may, in addition to the rent, separately charge a tenant for any fees allowed t passed through by applicable provisions of the Califc Mobilehome Residency Law contained in Division 2, Par1 Chapter 2.5 of the Civil Code (Civ.Code S 798 et seq.) successor statutes. These charges shall not be considere part of the space rent. No other separate charges shal allowed. 5.26.110 Dutv to maintain The mobilehome park owner has a duty to mair physical improvements in the common facilities of the mobile park in good working order and condition. 10 11 12 CJm Ye Ea& lVuJ2 <:os JUU aoaq m,j, at55 f! a a- OOLL 22;$ OZJO ""%a SuJ? Fool p2 - <OJ 0" 13 14 15 16 17 18 19 20 21 5.26.120 Capital expenditures Capital expenditures may be made by agreement bet the park owner and a majority of tenants and agreed upon amc added to space rent. Capital improvements may also be mat the park owner and the appropriate capital expenses consic for an increase in space rent as permitted by the procedure! forth in this chapter. 5.26.130 Sale or transfer of mobilehomes (a) All of the provisions of this chapter I continue in full force and effect upon sale or transfer mobilehome. (b) A mobilehome park owner shall not requir coerce purchasers or prospective purchasers of mobilehome sign a lease which exempts them from this chapter under ( Code section 798.17. 5.26.140 Notification to tenants and Drospec tenants The mobilehome park owner shall provide all te~ with a copy of the Mobilehome Park Rent Control Ordinance ] to the time an agreement to pay space rent to the park ownc executed. Proof of notification shall be maintained at the and subject to inspection by the City. 22 23 It shall be unlawful for any person to reta. 24 chapter, or registering a complaint relating to enforceme: 25 5.26.150 Retaliation against a tenant for exercising any rights provided by its provisions. 5.26.160 Administrative quidelines. 26 the purposes and intent of this chapter." 27 The City Manager is authorized to adopt SECTION 2: If this ordinance is declared inval 28 administrative guidelines as are necessary to fully imp1 mobilpWordlkjhlrev. 5/11/94 8 0 0 1 effective for any other purpose. 4 ordinance. Until that time, Ordinance No. NS-263 shall no 3 become enforceable and in full force and effect in place of 2 unenforceable for any reason, then Ordinance No. NS-263 s 5 SECTION 3: If any section, subsection, sente 6 each section, subsection, sentence, clause, phrase, par’ 11 Council declares that it would have adopted this ordinance 10 validity of the remaining portions of this ordinance. The g competent jurisdiction, such decision shall not affect 8 reason held to be. invalid or unconstitutional by any cour 7 clause, phrase, part or portion of this ordinance is for 12 Dm SUF yz ElIh _IOU% an8 &4< m>iz ktSa 009 OZJO ““90 cz9 2i& FZi? aoA 50 13 14 15 16 17 18 19 portion thereof, irrespective of the fact that any one or sections, subsections, sentences, clauses, phrases,’ parts portions be declared invalid or unconstitutional, EFFECTIVE DATE: This ordinance shall be effec thirty days after its adoption, and the City Clerk shall cer the adoption of this ordinance and cause it to be publish< least once in a newspaper of general circulation in the Cil Carlsbad within fifteen days after its adoption. i 20 INTRODUCED AND FIRST READ at a regular meeting 0: 21 and thereafter 22 Carlsbad City Council on the day of I- 23 24 25 26 27 28 /// /// //I /// /// //I mobilpk/ord/kjh/rev. 511 1/94 9 0 0 1 PASSED AND ADOPTED at a regular meeting of the 2 1994, by the following vote, to wit: 3 Council of the City of Carlsbad on the day of 4 AYES: 5 6 7 8 9 10 11 Dm slug &E& a08 olug llU0 $055 ktg" OOLL zw** 0Z-l ~ ""90 *>- >JZ 0 :;sz E:$ gF9 - aoJ 00 12 13 14 15 16 17 18 19 20 21 22 23 NOES : ABSENT: APPROVED AS TO FORM AND LEGALITY RONALD R. BALL, City Attorney ATTEST: CLAUDE A. LEWIS, Mayor ALETHA L. RAUTENKRANZ, City Clerk I 24 25 26 27 28 mobilpklordlkjhlrev. 5/11/94 10 0 - RENT CONTROL ORDINANCE 0 ' - LANlKAl LANE RENT SCHEDULE SINGLE WIDE SPACE = $400 DOUBLE WIDE SPACE = $425 hanikai Lane base rent includes trash removal. Gas, electric, cable TV, water an1 sewer services are paid by resident. RANCHO CARLSBAD RENT SCHEDULE KMA FAIR MARKET RENT RANGE (Lot Premiums) = $600 to $800 1 # MOBILEHOMES 1 Rent as of Dec 31, 1993 I 44 $645 14 $71 1 27 $677 34 $666 29 $657 $871 29 $835 10 $827 17 $800 93 $783 67 $755 74 $736 45 $726 49 [Total # MH's 502 I - - I - KMA Adjusted Rent $606 $61 7 $625 $635 $667 $682 $691 $708 $735 $751 $777 $784 $81 7 1994 @ 75% CPI 1~ - - Rental Amount INCR/(DECR) ($39) ($40) ($41) ($42) ($44) ($44) ($45) ($47) ($48) ($49) . ($51) ($54) ~ ($50) NOTE: Proposed KMA rent structure is based upon existing individual lot locatic premiums. Rancho Carlsbad base rent includes trash removal, water and sewer services, ar cable TV. Gas and electric services are paid by resident. - 0 a. , &.+ r. May 17, 1994 TO : Mayor and City Council City Manager City Clerk Community Development Director Housing and Redevelopment Director Senior Management Analyst Haas FROM : City Attorney DRAFT MOBILEHOME RENT ORDINANCE - REDLINED Attached is a copy of the redlined draft mobilehome rent ordinan and a chart which shows what was 'proposed and how we implement those proposals. Copies will be made available for tonight meeting . n LJ+ RONALD R. BALL City Attorney rmh mu? 8a &E& a08 Oug w> iUC3 s:z$ U''8 OZ-IO CC:qO E52 c22 2;sz OOLL ZuUJ 0 4o-l GO 1 2 3 4 5 6, 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 e DRll ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY CARLSBAD, CALIFORNIA, AMENDING TITLE 5 OF THE CARL: MUNICIPAL CODE, BY ADDING CHAPTER 5.26 TO REGUl MOBILEHOME PARK SPACE RENT. WHEREAS, the City has received petitions and requc for mobilehome rent control legislation; and WHEREAS, the City Council has held a number of spec meetings at the City's mobilehome parks and received evidc and heard arguments both pro and con as to the wisdom desirability of mobilehome rent control legislation; and WHEREAS, the City Council held a special meetin5 the Lanikai Lane Mobilehome Park on July 19, 1993 in ordel carefully consider the relative positions of the park owner the homeowner; and WHEREAS, the City Council held special meetings at Rancho Carlsbad Mobilehome Park on August 4, 1993 and at Lakeshore Gardens Mobilehome Park on August 16, 1993 in orde further study the issue and receive evidence, testimony arguments; and WHEREAS, the City Council held a special meetin! the City Council Chambers on Friday, October 1, 1993 and hc testimony from mobilehome park tenants and owners and 0' interested parties, on the necessity and desirability mobilehome rent control legislation: and ...................... ~ ................................. ' .i:.:.i'.:.:.:.: .............. .................................................................................................... < .............. WHEREAS, mobilehome ownership & ~.~~~~~~~~~~~~~~~~~~ ............................................................................................................................ an economically more accessible form of home owners particularly to individuals on fixed incomes, and offers mobilpk/ord/?ijh/rev. 5/17/94 1 1 2 3 4 5 6 7 8 9 10 11 am &E& u:o8 om% 5UU ~0~22 dk5E DOOQ OZLO aEs:o SUEj m> >-_I2 si;? E22 >?2 Lo a01 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 m substantial benefits to the community in the form of moder cost housing; and WHEREAS, there is a shortage of mobilehome park spa in the City of Carlsbad resulting in a low space vacancy ra and WHEREAS, it is difficult to find sites for relocat of mobilehomes due to the shortage of spaces, restrictions the age, size and style of mobilehomes enforced by many par and other requirements relating to reinstallation mobilehomes; and WHEREAS, the cost for moving a mobilehome substantial, with a significant risk of damage; and WHEREAS, these market conditions have contributed or threaten to contribute to, escalating rental rates; and WHEREAS, a ea-pt2-2 market of mobilehome park ten; 1 ~ has been created producing an inequitable imbalance in bargaining position of the park owner and the tenants; and WHEREAS, mobilehome park tenants have placec substantial investment in their mobilehomes and appurtenanc and WHEREAS, above-market space rents and the threa- escalating rents diminishes the value of the tena investments in their mobilehomes: and WHEREAS, state law permits mobilehome park owner require tenants to improve their homes and such improvem accrue to the benefit of the park owner by increasing the ma value of the park itself: and mobilpWord/kjh/rev. 5/17/94 2 II 1 ~ 0 0 WHEREAS, the City Council wishes to remedy t 2 6 fair and equitable to both tenants and owners; and 5 can be charged by mobilehome park owners in a manner whick 4 mobilehome parks by regulating the amount of space rent wl 3 inequitable situation and protect the rights of tenants WHEREAS, the City Council finds that the adoptiol 7 this ordinance would not have a significant, substantial 8 adverse effect on the environment; and 9 WHEREAS, after reviewing and considering the evidc 10 mobilehome owners from unreasonable space rent increases anc 12 that it is necessary, and in the public interest, to pro- 11 and testimony presented, the City Council finds and dedi - Lg a> &z& 13 iLU 14 $$$$ p;? E22 pz 17 q.08 ow2 cr'tga: qyaQ 15 a:u%a OZJo- 16 0 <OJ - 00 18 assessments, and at the same time, to permit mobilehome ] owners to obtain a fair and reasonable return. NOW, THEREFORE, the City Council of the City Carlsbad, California, does ordain as follows: SECTION 1: That Title 5 of the Carlsbad Munic 1 Code is hereby amended to add Chapter 5.26 to read as foll l9 I/ "CHAPTER 5.2 6 20 21 22 23 24 25 26 27 28 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 Section 5.26.100 Section 5.26.110 Section 5.26.120 Section 5.26.130 Title Purpose and intent Definitions Applicability Petition for exclusion Registration Base rent Annual adjustments to base rent Appeal of base rent Allowable pass-throughs Duty to maintain Capital expenditures Sale or transfer of mobilehomes mobilpk/ord/kjh/rev. 5/17194 3 /I e 0 1 2 3 4 5 6 7 a 9 10 om m> 3w5 &zcb a08 Ow% soaa 5L, k''8 >.iZ OOLL OZJ? ""%a >Z% 60 ;i$? Fool aoA 11 12 13 14 15 16 17 18 19 20 2' II Section 5.26.160 Retaliation Section 5.26.170 Administrative guidelines. 5.26.010 Title, This chapter shall be known as the "Mobilehome E Rent Control 0rdinance.ll 5.26.020 Pumose and Intent. The purpose and intent ................................................................ of this chapter is to prot the rights of - h&E@)w@g ................................................. in mobilehome parks regulating the amount of re-nt..whrcKcan ............................................. be charged by mobilek park owners in a manner which is fair and equitable to L ~n+~s .................................................................... f#ja@&-&$@&& and Owners .,.:;.-;.:: ........ : ..... :.: .................................... .................................. .................................. 22 23 24 25 26 5.26.040 Applicability. The provisions of this chapter shall apply to mobilehome parks within the City of Carlsbad and to mobilehome park space within such parks except as providec this chapter, except new construction and spaces expre exempted from this chapter by Civil Code section 798.17, other express provisions of state or federal law. Sp exempted by Civil Code section 798.17 shall automatically be subject to all provisions of the chapter upon expiratio] termination of the written lease agreement. 27 ll 28 mobilpk/ord/kjh/rev. 5/17/94 4 // 0 0 28 )I this chapter. mobilpk/ord/kjh/rev. 5/17/94 5 I1 0 0 . 1 2 3 4 5 6 7 8 9 10 7) a list of all services and amenities provi (c) Annual Reglstration. Each mobilehome park OW shall update the registration information by April 1 of e year. (d) Registration Fee. The mobilehome park OW shall pay a registration fee to fully cover the administrat costs for the implementation and enforcement of this ChaPt The registration fee shall be established by resolution adjusted annually on July P of every year. The fee shall paid by the end of each month thereafter. Registration fees paid by the 10th day of the month following their due date St be delinquent and subject to penalties and interest accordin< Chapter 3.12 of this code. (e) Pass-through of Registration Fees. Registrat fees shall be equally paid by the park Owner and e hg~g~we~~ and the park owner shall be entitled ..................................................................... to Pass-thrc basis, but excluding interest and pena~~les':"''~ ................ to park - :.:.:.:.:.:.: ~~~.~~~~~. ............................................................ ............................................................. :: ... :.:.:.:.:.:.:.:.:.:.:.:.:.:~:*:~~~.~,:~~ ............................................................. ~~ : ......................... :. e amounts to be paid by the - h&$ii~@$j&jf~ on a mont :::*=z$$;*.s.. 1,'. '.:.:f.::.:.:::~.*:~ 11 5.26.070 Base Rent. (a) The base rent for each mobilehome park SI 12 subject to this chapter shall be established by resolutior am the City Council. The City Council shall make the determinal 3W5 yr. 13 represent the fair market value of the right to occupy the SI jtL, 14 space, and any other relevant information. The base rent SI gg after a review of a fair market rent study applicable to ow2 aoaa 9 ('nu. 8 a- o z -I 0. 16 a rebuttable presumption that the base rent established by accept space rent for a mobilehome park space in excess of 00 (b) The mobilehome park owner shall not demanc aoJ represents a fair and reasonable return to the park owner. "E90 There shall also be a rebuttable presumption that the base 1 ;ggg City Council is the fair market rental value of the spz s&$$ l5 and use the amenities and services of the park. There shal: Fzii ps 17 - 18 base rent e 19 5.26.080 Annual Adiustments to-Base Rent. (a) The base rent shall be adjusted annually tc 20 percent of the yearly increase in the Consumer Price In1 24 payment of fees: any provision of this chapter, including but not limited 23 the following events have occurred: 22 Such increase shall be effective only if non of zero (0) percent and a maximum of eight (8) percent. 21 (1984 = loo), except that the annual increase shall be a min (2) conditions exist within the mobilehome which violate provisions of local, state or federal law rela 25 to the health, safety and welfare of the residents, for w the enforcing agency has issued a notice of correctiol 26 similar notice, and such violation has not been corrected. violations must be of a substantial nature, affecting the 27 and enjoyment of the space tenancy, as determined by building official. 28 (1) the mobilehome park owner is in violatic * mobilpk/ord/kjh/rev. 5n7i94 6 /I ll m 0 (. 1 2 3 (b) The date of the annual adjustment shall be (c) There shall be a rebuttable presumption that July 1 of each year. adjusted base rent represents a fair and reasonable return the park owner. 4 5.26.090 Appeal of space rent. (a) Upon the payment of the appropriate applicat 5 fees and deposits, and within 60 days after notice of an anr 6 reasonable return. 7 space rent established by this chapter if the park oh (b) The appeal shall be heard by a hearing off j 8 appointed by the City Manager. The filing fees and cc associated with filing an appeal shall be initially borne by 9 party requesting the appeal. The costs shall ultimately adjustment to base rent, a mobilehome park owner may appeal contends that the space rent does not represent a fair awarded to the prevailing party and paid throuyh adjustmc 10 through an increase or decrease in the space rent appropriate. days after a complete application is accepted by the ( 12 Manager by a park owner and served on the - hGS?~x~gx$ 11 (c) The appeal shall be heard within forty-five I 003 each affected space. A proof of service shall be included 1 SUA: Yr 13 the application. The hearing officer shall select a heal 5UU 14 days prior to the hearing. m>,z (d) At the request of the park owner or the &w ......... i.. ...... ................................ ~i:~";."".:.:.:.:.~:.: n.. ..................... Err& 4n8 0wg date and notice the parties in writing at least fifteen ~ 4055 rrtga: gynB 15 :* .:.:....,:; w ..:.:.:.:.:,:.:.:. :.: .:.:.:.:.:.:.:.:. I @@@$@~@@$ or on the hearing officer's own motion, the heal a>Sz officer may issue subpenas in accordance with the provision: ZWV)" 0 z -I - 16 Code of Civil Procedure section 1985 et seq. Service of pro( ~u%n shall be subject to the provisions of Title 3, Part 4, Cha] sod 17 2 of the Code of Civil Procedure and such process shall ex1 .. ..,.. . i,...... . ..... ............. ..........,., . ..,.. ...............in E:? zcz - to all parts of the state. All witnesses appearing pursuan 0 18 subpena, other than a park owner or - @g&tfg@~~~, shal: paid fees and mileage as prescribed by law for witnesses 19 civil actions in superior court. The fees and mileage shal paid by the party who made the request for the subpena. evidence and allow the parties a reasonable opportunity tc z1 heard. The hearing officer shall determine whether the s: rent represents a fair and reasonable return to the park ow 22 The City Council shall adopt a resolution containing proced for the hearing and guidelines for the decision made by 23 hearing officer. The resolution shall contain a nonexclu list of factors to be used in making the determination. 24 procedures and guidelines shall comply with state and fed constitutional requirements regarding the property rights of 25 park owner. The decision of the hearing officer shall bm writing and contain references to the guidelines adopted by 26 City Council. The hearing officer shall keep a complete re of the proceedings and submit it to a reviewing court or (f) The decision of the hearing officer will be f 28 notwithstanding the provisions of section 1.20.600 of this c ....A .................................................. :;;,*;,*;;;;; .............................. 20 (e) The hearing officer shall receive rele 27 city, if requested, along with copies of all exhibits, mobilpk/ord/kjh/rev. 5/17/94 7 11 L 1 2 3 4 5 6 7 8 9 0 0 ............................................................. :.:.:.:.:.:::: ................................... (g) - ~~~&$~~~;g may use the procedure in t ....................................... ................. section to petition for a decrease in space rent if the F owner reduces or eliminates services or amenities with adjusting the space rent accordingly. An application must submitted which contains the signatures of a majority of - h~~~~~~~ of the spaces subject to the space rent, u entitled to one signature counting toward majority. The application must also include a proof of sen on the park owner of a written claim signed by at least each sp.a.ce ............... ................................ .v .......... ~ ~~~~~~~, specifically describing the allegations agai the parx ........................... ...................... owner .. ................................ ...and the relief requested. The proof of se~ ....... must show at least 30 days notice prior to the applicat submittal. (h) If an appeal is granted, the space rent determined by .... the hearing officer will be effective 90 c after - month following the decision. ~:~~~~~~~~ are notified by the park Owner of increase* Dec.reases.wzl.l be effective on the first day of ... ............................................................. .......................................................... 10 11 12 92 13 ou$j Do, Su$ & $055 14 iq Si;: M 22% 17 iUC3 >JZ o(")oL 15 0 2 -I? 16 "E50 QO_I 5.26.100 Allowable Dass-throuqhs A mobilehome park owner may, in addition to the 1 to be passed through by applicable provlsions-of the Calif01 Mobilehome Residency Law contained in Division 2, Part Chapter 2.5 of the Civil Code (Civ.Code !j 798 et seq.) successor statutes. These charges shall not be considerec part of the space rent. No other separate charges shall allowed. rent, separately charge a - ~~~~~~~ for any fees allc ~;~~~~~~~~~-:~*~:~~.~:: 5.26.110 Duty to maintain The mobilehome park owner has a duty to main1 physical improvements in the common facilities of the mobile1 park in good working order and condition. to 18 procedures set forth in this chapter. 21 considered for an increase in space rent as permitted by be made by the park owner and the appropriate capital expel 20 upon amounts addedto space rent. Capital improvements may i the park owner and a majority of mkz h$@%?W$j!?F@ and agrt 19 Capital expenditures may be made ............................. by .................... agreement bet1 5.26.120 Capital expenditures ...;.;. :.:.:.:.; :-.*.:-* ..:.:.: ..... c' ..................................................... ,:.:. 22 23 24 25 5.26.130 Sale or transfer of mobilehomes (a)' All of the provisions of this chapter SI continue in full force and effect upon sale or transfer ( mobilehome. coerce purchasers or prospective purchasers of mobilehome: sign a lease which exempts them from this chapter under C Code section 798.17. (b) A mobilehome park owner shall not requirt 26 27 5.26. 140 Notification to ~~~~:" ~~~~~~~~~ ......................................... .................. .................................................................. ............................ :x.:.., rOs ective - ~ .................................... ...................................... ;....;. .............. Theowner ........................................................................ .. ...... shall provide all - .. ... .: .: : ... ............. ..; ,.,.; ......................................... ~ .:.:. :(.:(:.:fL .:.:.:.:: :: ::. ......................................................... .:.:,:,:.: ............................................. :.:.:.: ...................................................... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ......... with a copy of mobilpk/ord/kjh/rev. 5/17/94 8 28 .:,; .:,: i.:,:. :.:. x:2V ......:.: ............................................................... ....i....i...._i... .................................................................... .................................................... .......................................................................................................................................................... /I 0 0 . .) 1 C 1 2 3 7 5.26.160 Retaliation 8 The City Manager is authorized to adopt h 11 this chapter, or .regi..sterLng .:.:.;.:..: ...................................................... a cornplaint relating to enforcen 9 It shall be unlawful for any person to retalj against a - ~~~.~~~~~ for exercising any rights provide( . . . . . . . .._ . of its provisions. 10 5.26.170 Administrative suidelines. administrative guidelines as are necessary to fully impler 12 the purposes and intent of this chapter. '' $a 22~ 13 mu8 ZlUU a08 SECTION 2: If this ordinance is declared invalic uug unenforceable for any reason, then Ordinance No. NS-263 SI 14 $045 cftgn: 9 y D 2 15 become enforceable and in full force and effect in place of 1 g$&$- 16 ordinance. Until that time, Ordinance No. NS-263 shall no1 >JZ SZ$Z E:; E25 17 0 <OJ effective for any other purpose. GO 18 21 reason held to be invalid or unconstitutional by any courl 20 clause, phrase, part -or portion of this ordinance is for 19 SECTION 3: If any section, subsection, sentei competent jurisdiction, such decision shall not affect 22 validity of the remaining portions of this ordinance. The 1 23 Council declares that it would have adopted this ordinance 24 each section, subsection, sentence, clause, phrase, part 25 26 portion thereof, irrespective of the fact that any one or ' 28 portions be declared invalid or unconstitutional. 27 sections, subsections, sentences, clauses, phrases, parts mobilpWord/kjh/rev. 5/17/94 9 I# 8 s 1 2 3 4 5 6 7 8 9 10 11 12 &us 00, Yr ach ao0, ow2 dUC3 $045 ktsg 9 00U I ai 2x3 F:; p% - tJZ 0Z-l - ua%o a01 ov " 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e e EFFECTIVE DATE: This ordinance shall be effect thirty days after its adoption, and the City Clerk shall cert the adoption of this ordinance and cause it to be published least once in a newspaper of general circulation in the Citl Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of Carlsbad City Council on the day of , 1s and thereafter PASSED AND ADOPTED at a regular meeting of the ( Council of the City of Carlsbad on the day of 1994, by the following vote, to wit: AYES : NOES : ABSENT: APPROVED AS TO FORM AND LEGALITY RONALD R. BALL, City Attorney CLAUDE A. LEWIS, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk mobilpk/ord/kjh/rev. 5/17/94 10 , II Y Q TRENT CONTROL ORDINANCE 0 *- 'LANlKAl LANE RENT SCHEDULE I KMA Adjusted Rent SINGLE WIDE SPACE Lanikai Lane base rent includes trash removal. Gas, electric, cable TV, water anc DOUBLE WIDE SPACE $4251 1 $432, $4001 j $406 sewer services are paid by resident. i 1994 @ 75% CPI RANCHO CARLSBAD RENT SCHEDULE KMA FAIR MARKET RENT RANGE (Lot Premiums) = $600 to $800 ! I I # MOBILEHOMES 1 Rent as of KMA Adjusted Rent Rental Amount I ~ Dec 31, 1993 INCR/(DECR) 1994 @ 75% CPI 14 ($44) $667 ! $71 1 27 ($42: $635 $677 34 ($41 1 $625 $666 29 ($40) $61 7 $657 14 ($39) $606 $645 I 49 (SV $708 74 ($45) $691 45 ($44) $682 $726 I ($48) 93 $751 ($49) 10 $784 ($51 ) 67 ($54) $81 7 29 ($50) $777 17 $735 [Total # MH's 502 1 NOTE: Proposed KMA rent structure is based upon existing individual lot locatic premiums. Rancho Carlsbad base rent includes.trash removal, water and sewer services, a1 cable TV. Gas and electric services are paid by resident.