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
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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.
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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.
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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.
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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.
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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
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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
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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
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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 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
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HCBAPTBR S.2§
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
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
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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
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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
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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 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
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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.
(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.
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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 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
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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