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HomeMy WebLinkAbout1994-09-08; Housing Commission; ; MOBILEHOME RENT CONTROLDATE: TO: FROM: SUBJECT: Staff Person -Evan Becker STAFF REPORT SEPTEMBER 8, 1994 HOUSING COMMISSION HOUSING AND REDEVELOPMENT DEPARTMENT MQBILEHOME RENT CONTROL: Informational report on rent control for Mobilehome Parks within Carlsbad. On August 11, 1994, the Housing Commission requested a report on the issue of Mobilehome Rent Control in Carlsbad. Although this issue is not specifically related to affordable housing projects, policies or programs, it will be helpful for the Housing Commission to understand the issue and the solution proposed within the Mobilehome Rent Control Ordinance adopted by the City Council on June 7, 1994 which is now the subject of an initiative for the November 8, 1994 election ballot. BACKGROUND Mobile Home Rent Control has been a controversial issue for many cities for a number of years. In Carlsbad, the City Council received petitions and numerous requests from tenants of mobilehome parks for rent control legislation based on consistent increases in rent for pad spaces, limited options and costs for relocating mobilehomes, reduced values for resales based on increasing rents and the "fixed income" status of a significant number of households within mobilehome parks. After considerable review of the issues and discussions with both the tenants and owners of the various mobilehome parks located in Carlsbad, the City Council decided that there was a need to protect mobilehome owners from umeasonable space rent increases while allowing the mobilehome park owner to obtain a fair and reasonable return on their investment. Consequently, at a special meeting of the Council held on May 23, 1994, the Mobilehome Rent Park Rent Control Ordinance was introduced for adoption. The adoption date of the ordinance was June 7, 1994 and was due to become effective on July 7, 1994. However, representatives of the mobilehome park owners obtained an excess of 6,000 signatures in favor of placing an initiative on the November 8, 1994 election ballot. The intent of the initiative is to repeal the mobilehome park rent control ordinance. The City Council declined to repeal the Ordinance on its own and placeq the initiative on the November 8th ballot. No further action may be taken by 1 the City to implement the adopted Ordinance at this time. Further development of an administrative plan for implementation of the ordinance will remain pending until after the November 8th election. PURPOSE AND INTENT OF THE MOBILEHOME RENT CONTROL ORDINANCE The purpose and intent of the Ordinance is to protect the rights of homeowners within 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 the homeowner and park owner. • PROVISIONS OF THE MOBILEHOME RENT CONTROL ORDINANCE Applicability: The Ordinance applies to all mobilehome parks in Carlsbad and covers spaces not exempt under provisions of state law (i.e., tenants on long term leases are exempt per state law). Exclusions: A park may be excluded from the provisions of the Ordinance if a Petition for Exclusion is filed with the City Clerk within 60 days of the effective date. The petition must include 1) signatures of majority of homeowners within the park and 2) statements for exclusion. The statements for exclusion may include a written agreement between park owner and homeowners which satisfies the intent of the Ordinance. The City Clerk shall then verify signatures and mobilehome park will be excluded. If there is a subsequent change in circumstances, homeowners may petition for inclusion or exclusion from the Ordinance between January 1 and March 1 of each year. The City Council has the discretion to approve, deny or condition the petition during this period of time. Registration: Initially, all park owners shall register within 60 days of the effective date of the Ordinance. Registration shall include 1) name, business address and telephone number of park owner, and mailing address if different from business address; 2) other persons possessing owner interest in park; 3) total number of spaces and total number of spaces occupied; 4) list of rent charged for each space; 5) list of all other charges, with purpose of each charge including expiration date if applicable; 6) any other information per City resolution for implementation and enforcement of the Ordirtance; and 7) list of all services and amenities provided to homeowners. Park owners shall update registration information by April 1 of each year. Each park owner shall pay a monthly registration fee to fully cover the administrative costs for the implementation and enforcement of the Ordinance. This fee shall be established by resolution and adjusted annually on July 1 of each year and paid equally by park owner and homeowners. 2 A park owner may pass-through amounts to be paid by homeowners on a monthly basis excluding interest and penalties. Base Rent: The base rent shall be established by City Council resolution. It shall be determined after review of a fair market rent study and other relevant information. The_ base rent shall represent the fair market value of the right to occupy space and use of park amenities and services. A park owner may not demand or accept space rent in excess of the base rent. Space rent shall be subject to an annual adjustment on July 1 of each year to 75 % of yearly increase in CPI; there shall be permitted increases from 0% to 8% maximum. If any of the following occurs, the increase will not be effective: • park owner is in violation of Ordinance; or, • park conditions violate any health, safety and welfare laws for which notice of correction was issued. If a park owner contends that space rent does not provide for a "fair and reasonable return, then the owner may file an appeal, with appropriate fees, within 60 days after notice of adjustment. The appeal shall be heard by a hearing officer appointed by the City Manager. A hearing officer's decision is final. The City Council will adopt, by resolution, procedures for the hearing and guidelines for the decision to be made by the hearing officer. Mobilehome owners may use the appeal process to petition for a decrease in space rent if the park owner reduces or eliminates services or amenities without adjusting space rent accordingly. Pass-throughs: In addition to space rent, park owners may charge a homeowner for fees allowed to be passed through by applicable provisions of California Mobile Home Residency Law. These charges shall not be considered as part of space rent. Duty to Maintain: The park owner must keep and maintain physical improvements in common facilities in good working order and condition. A mobilehome owner may bring cause of action against a park owner by giving at least 30 days prior written notice to park owner of intent to commence court action. The notice must be signed by homeowner(s) making allegations and contain a basis for the claim, specific allegations, and remedies requested. 3 Capital Expenditures: Capital expenditures may be made by agreement between park owner and a majority of homeowners. Amounts agreed upon for the capital expenditures may be added to space rent. Capital improvements may also be made by the park owner and corresponding costs considered for an increase in space rent in order to provide a fair return to the park owner as permitted by the Ordinance. Sale or Transfer of Mobilehomes: All provisions of the Ordinance remain in full force and effect upon sale or • transfer of a mobilehome. • Notification to Homeowners: The park owner shall provide all mobilehome ·owners with a copy of the Ordinance together with a schedule of the applicable space rents. Proof of the notification shall be maintained at the park and subject to inspection by the City. Expiration o/Exempted Leases: When a lease which has been previously exempted expires, the Ordinance automatically applies to said space. The final rent paid under the expiring lease shall be the new base rent under the Ordinance. Annual increases will then be subject to the Mobilehome Rent Control Ordinance. Administrative Guidelines: If the Ordinance is upheld based on the results of the November 8th election, the City Manager will be authorized to develop and adopt administrative guidelines which are necessary to fully implement the Ordinance. SUMMARY In addition to the ballot initiative, the Carlsbad Rent Control Ordinance forces a legal challenge filed by two park owners and the bank which holds the note on Rancho Carlsbad. The basis of their legal action is the claim that proper environmental review was not accomplished in the process of adopting the Ordinance. Mobilehome Rent Control Ordinances are also often challenged legally by the park owners on the grounds that they are an unconstitutional "physical talcing" of private property. Although these challenges have generally not been successful to date, the park owners have not ceased in their legal efforts to defeat rent control. The City of Escondido has spent over $1-million to defend their Ordinance and Oceanside has spent nearly $650,000 in legal costs. 4 As stated previously, the subject Ordinance applies to Mobilehome Parks only; it does not effect apartment or other rental units. All mobilehome owners, regardless of income, will benefit by the regulation of rents. Therefore, this is not an affordable housing issue. But, the Council has noted that mobilehome ownership has historically been an economically more accessible fonn of home ·ownership, particularly to individuals on fixed incomes, and offers substantial benefits to the community in the form of moderate cost housing. ATTACHMENTS 1 -Copy of Mobilehome Park Rent Control Ordinance. 5 1 2 3 4 5 6 7 8 9 10 11 0 12 a ... 1 13 J ~ -: J~ ... , 14 ~ I!; i < m ► ::I z er!::;;~ 15 0 U O i. ~. < ~ ~►fg< w ..I 0 16 a:Za:. ~<i · t: o m <!~ 17 ~-~ u u 18 19 20 21 22 23 24 25 26 27 28 Al IAl.iHMt:.N I 1 ORDINANCE NO. NS-282 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARISBAD, CALIFORNIA, AMENDING TITLE 5 OF THE CARLSBAD MUNICIPAL CODE, BY ADDING CHAPTER 5.26 TO REGULATE MOBILEHOME PARK SPACE RENT. 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 receiyed evidence and heard arguments both pro and con as to the wisdom and desirability of mobilehome rent control legislation; and· WHEREAS, the city Council held a special meeting at the Lanikai Lane Mobilehome Park on July 19, 1993 in order to carefully consider the relative positions of the park owner and the homeowner; and WHEREAS, the City Council held special meetings at the Rancho Carlsbad Mobilehome Park on August 4, 1993 and at the L_akeshore Gardens Mobilehome Park on August 16, 1993 in order to further study the issue and receive evidence, testimony and arguments; and WHEREAS, the City Council held a special meeting in the City council Chambers on Friday, October 1, 1993 and heard testimony from mobilehome park tenants and owners and other interested parties, on the necesslty and desirability of mobilehome rent control legislation; and WHEREAS, the City Council held a regular meeting in the City Council Chambers on Tuesday, May 3, 1994 and Tuesday, May 17, 1994 and heard testimony from mobilehome park tenants mobilplwrdntjb/rcv. sn8JIJ4 .. 1 and owners and other interested parties, on th, necessity and 2 desirability of mobilehome rent control legislation; and 3 WHEREAS, mobilehome ownership has historically been an 4 economically more accessible form of home ownership, 5 particularly to individuals on fixed incomes, and offers 6 7 s 9 10 11 12 13 14 15· 16 17 18 19 20 21 22 23 24 25 26 27 28 substantial benefits to the community in the form of moderate cost housing; and WHEREAS, there is a shortage of mobilehonie park spaces in the City of Carlsbad resulting in. a low space vacancy rate; and WHEREAS, it is difficult to find sites for relocation of mobilehomes due to the shortage of spaces, restrictions on the age, size and style of mobilehomes enforced by many parks, and other requirements relating to reinstallation of mobilehomes; and WHEREAS, the cost for moving a mobilehome is 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 been created producing an inequitable imbalance in the bargaining position of the park owner and the tenants; and WHEREAS, mobilehome park tenants have placed a substantial investment in their mobilehomes and appurtenances; and WHEREAS, above-market space rents and the threat of escalating rents diminishes the value of the tenants• investments in their mobilehomes: and mobilpk/ordlkjh/n:Y. 5/18194 2 -' .. 1 2 3 4 5 6 7 8 9 10 11 12 0 wil Ju 13 14 i~~~ ~ :::! ~ a:: -> 0 15 0 <.> 0 11,. ... '~ -!~(/)~ z..1U 16 ~ a:: 0 <c t: u :& C ~ _. 17 ~-~ c::s u 18 19 20 21 22 23 24 25 26 27 28 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 mobilehom~ 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 l: 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 mobilpklordi1tjh/rcv. S/lM-4 HCBAPTBR S.2§ Title Purpose and intent Definitions Applicability Petition for exclusion Registration Base rent Annual adjustments to base rent Appeal of base rent 3 ' I i i ; I ,, , 2 3 4 5 6 7 ·a 9 10 11 12 0 0, awl 13 51 , .. -~ i 14 ..J :5 (;..JZ rz: -> ~ 15 0 C.> i LI,. ..J • -l ~m~ z ..J C.> 16 ~~Q s~i 17 r; -' u C.> 18 19 20 21 22 23 24 25 26 27 28 Section Section Section Section Section Section Section Section 5.26.100 5.26.110 5.26.120 5.26.130 5.26.140 5.26.150 5.26.160 5.26.170 Allowable pass-throughs Duty to ma~ntain 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. s.26.010 Title. This chapter shall be known as the "Mobilehome Park Rent Control Ordinance.• s.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) "Mobilehome" -a mobilehome is a structure as defined in California civil Code section 798.3. (c) "Mobilehome park" or "park" -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 "space" -a site within a mobilehome park which can accommodate the location, maintenance and human habitation of a mobilehome. (e) "Mobilehome park owner" or "park owner" -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. (g) "Space Rent" -total considerati~n authorized by this chapter to be received by a park owner for occupancy of a space and services and amenities·of a park. (h) "Homeowner" -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 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 mobilplclordJkjh/rcY. snl!IM 4 1 2 3 4 5 6 7 8 9 10 11 12 l wi 13 i 5!i 14 ~!~ . ~=I cc -> 0 15 0 U OIL ~ • C:; ~ > CD < w (I) u 1~0 16 c1~ 17 ~-~ u 0 18 19 20 21 22 23 24 25 26 27 28 exempted by Civil Code section 798 .17 shall automatically become subject to all provisions of the chapter upon expiration or termination of the written lease agreement. s.26,oso 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. (b) The Petition for Exclusion shall contain signatures of a majority of the ~omeowners 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 sign 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 between 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 registration requirements contained in sections 5.26.060(a) and (b). . (d) If there are changed circumstances after a.park has been included or excluded the homeowners may petition for exclusion or inclusion between January 1 and March 1 of each year provided a petition meeting the requirements of subdivision (b) is filed with the city clerk, and provided further that the petition shall contain statements for exclusion or inclusion within the p~ovisions of this chapter. The City Council may approve, deny or condition the petition so that inclusion of the park is consistent with the purpose and intent of this chapter. 5.26,060 Registration. (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 telephone number of the mobilehome park owner and the address to which official notices shall be sent if different from the business address; 2) the name, business address and telephone number of all other persons or legal entities possessing an ownership interest in the park and the nature of such interest; 3) the total number of spaces in the park and the 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 a description of the amount and purpose of each charge, including expiration dates if applicable; and mobilptA)nfAtjbln:v. 5/18194 5 { 1 2 3 4 5 6 7 8 9 10 11 12 •i• 13 Ji• 14 oUo! 15 . It I~ 16 !51 c§; 17 ~-c u u 18 19 20 21 22 23. 24. 25 26 27 28 6) any other information deemed necessary by city Council resolution for the implementation and enforcement of this chapter. 7) a list·of all services and amenities provided to park homeowners. (c) Annual Registration. Each mobilehome park owner shall update the registration information by April 1 of each year. (d) • Registration Fee. The mobilehome park owner shall pay a registration fee to fully cover the administrative costs for the implementation and enforcement of this chapter. The registration fee shall be established by resolution and adjusted annually on July 1 of every year. The fee shall be paid by the end of each month thereafter. Registration fees not paid by the 10th day of the month following their due date shall be delinquent and subject to penalties and interest according to Chapter 3.12 of this code. (e) Pass-through of Registration Fees. Registration fees shall be equally paid by the park owner and homeowners and the park owner shall be entitled to pass-through the amounts to be paid by the homeowners on a monthly basis, but excluding interest and penalties. 5,26.070 Base Rent. (a) The base rent for each mobilehome park space subject to this chapter shall be established by resolution of the City council. The City council shall make the determination after a review of a fair market rent study applicable to the space, and any other relevant information. The base rent shall represent the fair market value of the right to occupy the space and use the amenities and services of the park. There shall be a rebuttable presumption ·that the base rent established by the City council is the fair market rental value of the space. There shall also be a rebuttable presumption that the base rent represents a fair and reasonable return to the park owner.- (b) The mobilehome park owner shall not demand or accept space rent for a mobilehome park space in excess of the base rent. s.26.oao Annual Adjustments to Base Rent. (a) The base rent shall be adjusted annually to 75 percent of the yearly increase in the Consumer Price Index, (1984 = 100), except that the annual increase shall be a minimum of zero (O) percent and a maximum of eight (8) percent. Such increase shall be effective only if none of the following events have occurred: ( 1) the mobilehome park owner is in violation of any provision of this chapter, including but not limited to, payment of fees; (2) conditions exist within the mobilehome park which violate provisions of local, state or federal law relating to the health, safety and welfare of the residents, for which the enforcing ·agency has issued a notice of correction or similar notice, and such violation has not been corrected. Such violations must be of a substantial nature, affecting the use mobilpklonMljlr/rev. 5/11.94 6 ·1 2 3 4 5 6 7 8 9 10 11 12 0 0, mC III i 13 >-~l!i 14 i~~~ . ~=I a: -> 0 15 0 U O 11. SIii~►!~ 16 cO ~u~ c!~ 17 ~-~ u (.) 18 19 20 21 22 23 24 25 26 27 28 and enjoyment of the space tenancy, as determined by the building official. (b) The date of the annual adjustment shall be on July 1 of each year. (c) There shall be a rebuttable presumption that the adjusted base rent represents a fair and reasonable return to the park owner. 5.26.090 Appeal of space rent. (a) Upon the payment of the appropriate application fees and deposits, and within 60 days after notice of an annual adjustment to base rent, a mobilehome park owner may appeal the space rent established by this chapter if the park owner contends that the space rent does not represent. a fair and reasonable return. (b) The appeal shall be heard by a hearing officer appointed by the City Manager. The filing fees and costs associated with filing an appeal shall be initially borne by the party requesting the appeal. The costs shall ultimately be awarded to the prevailing party and paid through adjustments through an increase or decrease in the space rent as appropriate. Filing fees and costs may be awarded, apportioned 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 City Manager by a park owner and served on the homeowners of each affected space. A proof of service shall be included with the application. The hearing officer shall select a hearing date and notice the parties in writing at least fifteen (15) days prior to the hearing. ( d) At the request of the park owner or the homeowners, or on the hearing officer's own motion, the hearing officer may issue subpenas in accordance with the provisions of Code of Civil Procedure section 1985 et seq. Service of process shall be subject to the provisions of Title 3, Part 4, Chapter 2 of the Code of Civil Procedure and such process shall extend to all parts of the state. All witnesses appearing pursuant to subpena, other than a park owner or homeowner, shall be paid fees and mileage as prescribed by law for witnesses in civil actions in superior court. The fees and mileage shall be paid by the party who made the request for the subpena. (e) The hearing officer shall receive relevant 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 procedures 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 federal constitutional requirements regarding the property rights of the park owner. The decision of the hearing officer shall be in writing and contain references to the guidelines adopted by the city Council. The hearing officer shall keep a complete record mobllpklordltJ11/re\'. 511&94 7 ; • 1 2 3 4 5 6 7 8 9 10 11 12 h~ 13 -hi 14 a:; i I 15 0 ui"' .., . -,► ~ 16 I a ~I§ 17 u 18 19 20 21 22 23 24 25 26 27 28 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. (g) Homeowners may use the procedure in this section to petition for a decrease in space rent if the park owner reduces or.eliminates services or amenities without adjusting the space rent accordingly. An application must be submitted which contains the signatures of a majority of the homeowners of the spaces subject to the space rent, with each space entitled to one signature counting toward the majority. The application must also include a proof of service on the park owner of a written claim signed by at least one homeowner specifically describing the allegations against the park owner and the relief 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 month following the decision. s.26.100 Allowable pass-throuqhs A mobilehome park owner may, in addition to the base rent, separately charge a homeowner for any fees allowed to be passed through by applicable provisions of the California Mobilehome Residency Law contained in Division 2, Part 2, Chapter 2.5 of the Civil Code (Civ.Code § 798 et seq.) and successor statutes. These charges shall not be considered as part of the space rent. No other separate charges shall be allowed. s.26.110 Duty to maintain The mobilehome park owner has a duty to keep and maintain the physical improvements in the common facilities of the mobilehome park in good working order and condition and to maintain or exceed the existing level of park amenities and services. A homeowner may bring.a cause of action against a park owner pursuant to Civil Code section 798.84 provided the homeowner first at least 30 days prior written notice of the intention.to commence court.action. The notice shall be in writing, signed by the homeowner or homeowners making the allegations and shall notify the park owner of the basis of the claim, the specific allegations, and the remedies request~d. s.26.120 capital expenditur.,es . Capital expenditures may be made by agreement between the park owner and a majority of homeowners and agreed-upon amounts added to space rent. Capital improvements may also be made by the park owner and the appropriate capital expenses considered for an increase in space rent as permitted by the procedures set forth in this chapter. mobilptJontltjbhw. 5/18,94 8 . 1 2 3 4 5 6 7 8 9 10 11 12 I "' wl 13 ~ !i 14 ~~~ -it=~z a: -> 15 oUo.._ ~ > ~ ::; 2 w (I) < 16 !~i <!~ 17 l: -~ G u 18 19 20 21 22 23 24 25 26 27 28 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 a mobilehome. (b) A mobilehome park owner shall not require or coerce purchasers or prospective purchasers of mobilehomes to 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 Park Rent Control Ordinance together with a schedule showing the applicable space rent under this chapter prior to the time an agreement to pay space rent to the park owner is executed. Proof of notification shall be maintained at the park . and subject to inspection by the City. 5.26.150 Base rent upon expiration of exempt lease under Civil Code section 798.17 When a lease which is exempt under Civil Code section 798.17 expires this chapter shall automatically apply to said space and the space rent for purposes of this chapter shall not include any pass-throughs prohibited by this chapter. s.26.160 Retaliation It shall be unlawful for any person to retaliate against a homeowner for exercising any rights provided by this chapter, or registering a complaint relating to enforcement of its provisions. 5.26.170 Administrative guidelines. The City Manager is authorized administrative guidelines as are necessary to the purposes and intent of this chapter." to adopt such fully implement SECTION 2: If this ordinance is declared invalid or unenforceable for any reason, then Ordinance No. NS-263 shall become enforceable and in full force and effect in place of this ordinance. Until that time, Ordinance No. NS-263 shall not be effective for any other purpose. SECTION 3: 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 mobilpklordlkjh/rcv. 5/1&94 9 I 1 2 3 4 5 6 7 8 9 10 11 12 I 0, IU I 13 . ~i 14 ~!s ~JZ a: -a: -> 15 oc.>o~ I . ~ ~ ru (I) cS tii 16 CI !J 17 ~-~ 0 (.) 18 19 20 21 22 23 24 25 26 27 28 validity of the remaining portions ot this ordinance. The City Council declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, parts, or portions be declared invalid or unconstitutional. EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the City Clerk shall certify the adoption of this ordinance and cause it to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the and thereafter day of ______ , 1994, PASSED AND ADOPTED at a regular meeting of the City 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/onllkjh/rev. S/1&94 10 "EVOLUTION OF MOBILEHOME RENT CONTROL" BACKGROUND • City assistance in the negotiation of rent stabilization provisions within park lease. • City assistance in conversion to resident ownership (i.e., Solomar Mobilehome Park). • Expiration of leases renews rent stabilization issue. • Attempts to negotiate voluntary "accords". Assessing resident purchases. Council chooses to draft a Rent Control Ordinance. • Emergency Ordinance to suspend rent increases (November 2, 1993). • Rent Control Ordinance adopted by Council (June 7, 1994). • Referendum suspends Ordinance implementation (July, 1994). ORDINANCE APPLICABILITY • Applies to all mobilehome parks within Carlsbad. • Applies to all spaces which are not exempt under State Law (generally, long-term leases). CARLSBAD MOBILEHOME PARKS Rental: • Lanikai Lane -143 spaces • Rancho Carlsbad -502 spaces • Lakeshore Gardens -383 spaces Ownership: • Solomar PROVISIONS FOR EXCLUSION FROM MANDATED RENT CONTROL • Residents/Owners can petition for exclusion from the pr0¥1sjoo of a rent control ordinance under the following conditions: 1. Individual tenants and owners elect to enter into a mutually acceptable long-term lease agreement. 2. ·An owner offers all residents a new long-term lease agreement, and 51 % of the residents in the mobi lehome park accept the offer. 3. 51 % of tenants in any mobilehome park petition for exclusion from the rent control ordinance, for any reason. RENT CONTROL ANNUAL REGISTRATION 1. Park owners to provide registration information to the Housing and Redevelopment Department within 60 days of the effective date of the ordinance. 2. Initial registration information to include: • Name, business and mailing address, and phone number of the mobile home park owner and all other persons having an ownership interest in the park. • Number of spaces (vacant/occupied), name of tenants assigned to each space, and rent charged (both exempt and non-exempt spaces). • List of all additional charges, including the amount charged and purpose of the charge. • Current list of services and amenities provided to park tenants. 3. Registration information to be updated and submitted to the City by April 1 of each year. 4. Park owner shall pay an annual registration fee for each non-exempt space. The total annual fee will be spread evenly over the period and paid by the park owner at the end of each month. 5. Park owner shall be permitted to "pass-through• one half of the registration fee per non-exempt space, to the tenant. BASE RENT KEYSER MARSTON LOW RANGE BASE RENT WILL APPl Y TO THE FOLLOWING: • • • Homeowners with expired lease ••lffllflts, who ~ted not to exte~ those lease agreement. • ' . Hom~s with leases txpir~ p,w It-.~ elate of the rent FC)fttrol ordinance, Md whc elect Mt • extend tlhose lease agreements. Homeownws with a. '110A4tl to ITlOOtn Nnaney . EXCEPTIONS: Homeowners with rental agreements in excess of a ·12.month duration, which do not expire until after the effective elate of the rent control ordinance and who chose not to enter into a 111W rental aereement in excess of 12 months, will ha¥I a base rent ~ as cited in the California Mobilehome Residency Law. The Law states that for those with IOOC t«m lease agr~,nts; •the last rental rate charged for the space under 1'he p,IYious r:enta,I agreement shall be the base rent for pt1rposes of appficabte provisions of law concerning rent regulation• APPEALS AND DISPUTE RESOLUTION • Appeal of base rent by Park Owner based on "fair and reasonable return". • Appeal of base rent by Mobilehome Owner based on reduction of services/amenities. • Third-party arbitration. • Costs born by parties. OTHER PROVISIONS • Pass-throughs as permitted by Mobilehome Residency Law. • Duty to maintain. • Capital Expenditures. • Sale or Transfer of Mobilehomes. • Administrative Guidelines. • Administrative Costs. MOBILE HOME PARK RENT CONTROL ESTIMATE ANNUAL ADMINISTRATIVE COSTS ROUTINE ADMINISTRATION Tasks: ·• Annual registration of all spaces and rents • Review and approval of annual adjustments " • Review and approval of pass-though changes Cost: • Staff • Legal 10 hours C $150/hour • Maintenance and Operating Cost • Indirect Cost ROUTH ADMINISTRATION SUB TOTAL ·NON-ROUTtNE ADMINISTRATION Tasks: • Base Rent appeals • An~ ~ustment appeals • Pass-Through Appeals • Petitioos for exclusion/reinclusion • Other dispute resolution Cost: • Staff • Arbitration Services 60 hours@ $1W* • LegcM -20 hours C $150/hour . • Ma4nlenooce and Operating Costs • Indirect Cost NON-ROUTINE ADMINISTRATION SUB TOTAL TOTAL $23,(XX) 1,500 4,(XX) 2,500 $31,(XX) $ 6,600 6,(XX) . 3,(XX) 5,(XX) 1,00) $21,600 $52,600 ALLOCATION COSTS PER SPACE TOTAL ESTIMATED ANNUAL ADMINISTRATIVE COSTS • $52,600 # of Spaces 200 Monthly Cost/Space $ 22 400 600 800 l(XX) * ** 11 7 5 4 Costs wrn be charged on an actual recCMrY basis; estimates do not include litigatioo Use of a Rent Control Board could alter this estimate