Chapter 9.05 MOBILE HOME RENT STABILIZATION

Chapter 9.05
MOBILE HOME RENT STABILIZATION¹

Sections:

9.05.010 Purpose.

9.05.020 Applicability.

9.05.030 Definitions.

9.05.040 Mobile home rent stabilization board.

9.05.050 Powers and duties.

9.05.060 Registration.

9.05.070 Vacancy control.

9.05.080 Permitted annual rent adjustment.

9.05.090 Rent adjustment based on capital improvements.

9.05.100 Rent adjustment to provide a reasonable return.

9.05.110 Petition for rent adjustment to provide a reasonable return on property.

9.05.120 Appeal.

9.05.130 Maximum rent.

9.05.140 Rental agreements.

9.05.150 Limitation of actions.

9.05.160 Administrative costs.

9.05.170 Remedies.

9.05.010 Purpose.

A. The city council of the city of Calimesa finds and declares that increasing numbers of residents of the city of Calimesa live in manufactured homes and mobile homes and that most of those living in such manufactured homes and mobile homes reside in mobile home parks. Because of the high cost of moving manufactured homes and mobile homes, most owners of manufactured homes and mobile homes reside within mobile home parks for substantial periods of time. Because of the relatively permanent nature of residence in such parks and the substantial investment which a manufactured home or mobile home represents, residents of mobile home parks are entitled to live in conditions which assure their health, safety, general welfare, a decent living environment, and which protect the investment of their manufactured homes and mobile homes. (Health and Safety Code Section 18250.)

B. There is presently within the city and surrounding areas a shortage of available spaces for location of mobile homes, resulting in a low vacancy rate. Coupled with park restrictions on the type of mobile homes which can be accepted, it is virtually impossible for mobile homes to be moved from one park to another within the city.

C. A copy of the city of Calimesa mobile home rent stabilization ordinance will be delivered by the park owner or park management of each mobile home park to every mobile home owner or tenant now residing within their respective mobile home park or parks. A copy of the ordinance will be given to every prospective tenant, whether renter or lessee, prior to the consummation of any occupancy agreement, either written or oral. A record shall be maintained by management to verify compliance with this section. [Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.01.]

9.05.020 Applicability.

A. The provisions of this chapter shall apply to all mobile home parks within the city of Calimesa except:

1. Spaces within mobile home parks occupied pursuant to rental agreements meeting the criteria of subdivision (b) of Civil Code Section 798.17; and

2. Newly constructed spaces held out for rent after January 1, 1990. (Civil Code Section 798.45.)

B. In the case of the conversion of a rental mobile home park to a mobile home subdivision, if any lots were or are conditioned, through the imposition of conditions on the tentative tract map, to mitigate any adverse impacts of the conversion on any existing mobile home residents who do not purchase their lots, including any loss in value of the residents’ coaches and/or other displacement of existing residents, the provisions of this chapter shall continue to apply to all lots of said subdivision as follows:

1. The provisions of this chapter shall continue to apply to each lot of said mobile home subdivision which lot was, prior to the finalization of the subdivision map, a month-to-month space, so long as the current residents, any sublessees of the current residents, any heirs or other inheritors of the current residents, or any first-time transferees, continue to reside on said lot.

2. The provisions of this chapter shall continue to apply to each lot of said mobile home subdivision upon the expiration of any rental agreement meeting the criteria of subdivision (b) of Civil Code Section 798.17, so long as the current residents, any sublessees of the current residents, any heirs or other inheritors of the current residents, or any first-time transferees, continue to reside on said lot. [Ord. 96-1 § 3; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.02.]

9.05.030 Definitions.

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

“Board” means the mobile home rent stabilization board established by this chapter.

“Capital improvement” means the installation of new improvements and facilities and/or the replacement or reconstruction of existing improvements and facilities which consist of more than ordinary maintenance or repairs, and have a useful life of at least five years. Capital improvements include, but are not limited to, improvements which would qualify as capital improvements, rather than ordinary repairs and maintenance, pursuant to applicable regulations of the Internal Revenue Service or California State Franchise Tax Board.

“City” means the city of Calimesa.

“City manager” means the city manager of the city of Calimesa, or his/her designee.

“Consumer Price Index” shall mean the Consumer Price Index for the Bureau of Labor Statistics for the Los Angeles-Anaheim-Riverside Metropolitan Area, All Urban Consumers, or any successor index.

“Homeowner” means a person who has a tenancy in a mobile home park under a rental agreement. (Civil Code Section 798.9.)

“Housing services” means services connected with use or occupancy of a rental space in a mobile home park which are provided to residents for the rent charged for a space, including, but not limited to, utilities, ordinary repairs, replacement and maintenance, laundry facilities, recreational facilities, a resident manager, refuse removal, parking, street cleaning and maintenance, and other benefits, privileges, facilities or terms or conditions of the residency.

“Management” means the owner of a mobile home park or an agent or representative authorized to act on his behalf in connection with matters relating to a tenancy in the park. (Civil Code Section 798.2.)

“Mobile home” means a structure designed for human habitation and for being moved on a street or highway under permit issued pursuant to Section 35790 of the Vehicle Code. “Mobile home” includes a manufactured home, as defined in Section 18007 of the Health and Safety Code, and a mobile home, as defined in Section 18008 of the Health and Safety Code, but, except as provided in subsection (A) of this definition, does not include a recreational vehicle, as defined by Section 799.24 of the Civil Code and Section 18010 of the Health and Safety Code, or a commercial coach as defined in Section 18001.8 of the Health and Safety Code. (Civil Code Section 798.3.)

A. “Mobile home,” for the purposes of this chapter, other than Section 798.73 of the Civil Code, also includes trailers and other recreational vehicles of all types defined in Section 18010 of the Health and Safety Code, other than motor homes, truck campers, and camping trailers, which are used for human habitation if the occupancy criteria of either subsection (A)(1) or (2) of this definition are met:

1. The trailer or other recreational vehicle occupies a mobile home site in a park, on November 15, 1992, under a rental agreement with a term of one month or longer, and the trailer or other recreational vehicle occupied a mobile home site in the park prior to January 1, 1991.

2. The trailer or other recreational vehicle occupies a mobile home site in the park for nine or more continuous months commencing on or after November 15, 1992.

“Mobile home” does not include a trailer or other recreational vehicle located in a recreational vehicle park subject to Chapter 2.6 of the Civil Code (commencing with Section 799.20), except as otherwise provided in subdivision (b) of Section 799.45 of the Civil Code.

“Mobile home park” means an area of land where two or more mobile home sites are rented, or held out for rent, to accommodate mobile homes used for human habitation. (Civil Code Section 798.4.)

“New construction” means any newly constructed spaces initially held out for rent after January 1, 1990. (Civil Code Section 798.7.)

“Occupancy” means the act, state or condition of being a homeowner, tenant, subtenant or other resident of a mobile home, or becoming a homeowner, tenant, subtenant or resident of a mobile home.

“Park” means a mobile home park. (Civil Code Section 798.6.)

“Rent” means the consideration paid for use or occupancy of a mobile home space and the provision of related housing services.

“Rental agreement” means an agreement between the management and the homeowner establishing the terms and conditions of a park tenancy. A lease is a rental agreement. (Civil Code Section 798.8.)

“Resident” means a homeowner or other person who lawfully occupies a mobile home. (Civil Code Section 798.11.)

“Tenancy” means the right of a homeowner to the use of a site within a mobile home park on which to locate, maintain, and occupy a mobile home, site improvements, and accessory structures for human habitation, including the use of the services and facilities of the park. (Civil Code Section 798.12.) [Ord. 96-1 § 4; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.03.]

9.05.040 Mobile home rent stabilization board.

A. The city council hereby creates a mobile home rent stabilization board within the city of Calimesa consisting of five members who shall be appointed by the mayor with the consent of the city council.

B. One member shall be a resident of a mobile home park within the city of Calimesa appointed for a term of two years and until his or her successor is qualified and appointed.

C. One member shall be an owner of a mobile home park within the city of Calimesa, or an agent or representative of such an owner authorized to act on his or her behalf in connection with matters relating to tenancy within the park, appointed for a term of two years and until his or her successor is qualified and appointed.

D. One member shall be neither a resident or relative of a resident in a mobile home park, nor an owner, agent, representative or relative of an owner of a mobile home park, appointed for a term of one year and until his or her successor is qualified and appointed.

E. One member shall be neither a resident or relative of a resident in a mobile home park, nor an owner, agent, representative or relative of an owner of a mobile home park, appointed for a term of two years and until his or her successor is qualified and appointed.

F. One member shall be neither a resident or relative of a resident in a mobile home park, nor an owner, agent, representative or relative of an owner of a mobile home park, appointed for a term of three years and until his or her successor is qualified and appointed.

G. All successors to the original appointees shall be appointed for a term of two years. Any member of the board may be appointed to successive terms.

H. If a member of the board becomes unable or disqualified to act during his term of office, the mayor shall declare a vacancy and appoint a new member to complete the unexpired term of the disabled or disqualified member.

I. Three members of the board shall constitute a quorum. Three affirmative votes shall be required for a ruling or decision. No member shall be allowed to vote on any issue in which he or she has a financial interest.

J. The mayor, with the consent of the city council, shall also appoint one alternate member who shall be a resident of a mobile home park within the city of Calimesa, for a term of two years and until his or her successor is qualified and appointed. The alternate member appointed under this subsection shall attend all meetings of the board but shall not vote on any issue or participate in any ruling or decision unless a member appointed under subsection (B) of this section is absent, or disqualified under subsection (I) of this section.

K. The mayor, with the consent of the city council, shall also appoint one alternate member who shall be an owner of a mobile home park within the city of Calimesa, or an agent or representative of such an owner authorized to act on his or her behalf in connection with matters relating to tenancy within the park, for a term of two years and until his or her successor is qualified and appointed. The alternate member appointed under this section shall attend all meetings of the board but shall not vote on any issue or participate in any ruling or decision unless a member appointed under subsection (C) of this section is absent or disqualified under subsection (I) of this section.

L. Alternate members appointed under subsection (J) and (K) of this section may be counted toward a quorum if the members they are authorized to vote in place of and instead of are absent. Alternate members shall not, however, be allowed to vote on any issue in which they have a financial interest.

M. No elected or appointed officer, member of a board, commission or committee, or employee of the city of Calimesa shall be eligible to serve on the mobile home rent stabilization board. [Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.04.]

9.05.050 Powers and duties.

Within the limitations provided by law, the mobile home rent stabilization board shall have the following powers and duties:

A. To meet from time to time as requested by the mayor, the city council, the city manager or upon the filing of a petition with the city clerk. All meetings of the board shall be open to the public.

B. To examine any rental agreement submitted to the board by any party to the rental agreement for the purpose of determining whether the space is subject to rent control under this chapter when reviewing a petition for a rent adjustment under this chapter.

C. To receive, investigate, conduct hearings on and approve, conditionally approve or disapprove petitions for, or protests against, adjustments of rents in mobile home parks.

D. To conduct such studies, surveys, investigations and public hearings and obtain such information as may be necessary to carry out its duties.

E. Subject to the approval of the city council, to adopt, promulgate, amend and rescind such administrative rules and regulations as the board finds reasonable and necessary for the conduct of its affairs and to implement and administer the provisions of this chapter.

F. Except where such rules are in direct conflict herewith, the board shall be subject to the regulations and standards of conduct for city commissioners, committee members and board members as established and amended from time to time by resolution of the city council.

G. To keep records of its proceedings which shall be submitted to the city council and open for inspection by the public.

H. To perform such other duties as may be delegated to the board by the city council. [Ord. 187 § 3, 2001; Ord. 96-1 § 5; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.05.]

9.05.060 Registration.

A. Initial Registration. Every mobile home park shall file an initial registration statement, under penalty of perjury, on a form approved by the city which sets forth the rent charged for each space in the park; the utilities and services included in that rent; utilities and the services charged separately from the rent; a list of each space which is subject to a long-term rental agreement pursuant to Civil Code Section 798.17 (including the rent specified therein and any provisions for periodic increases in rent in such long-term rental agreement); copies of the rent rolls reflecting all such spaces and rents for the current year and for the base year; and the registration fees for the park, within 30 days after the effective date of the ordinance codified in this chapter.

B. Annual Registration. Every mobile home park shall pay the annual registration fees, and shall file an annual registration statement, under penalty of perjury, on a form provided by the city, setting forth the same information as described in subsection (A) of this section, not later than the thirty-first day of January of each year.

C. New Lease Registration. Every park owner shall file a statement on a form approved by the city, whenever the lease terms, services and rental rate for a space changes pursuant to a new or renewed lease which is exempt from the provisions of this chapter pursuant to Civil Code Section 798.17.

D. In the event that a mobile home park owner believes that his/her park contains any space which is exempt from rent control pursuant to the Mobilehome Residency Law (Civil Code Section 798 et seq.), the park owner shall submit documentation setting forth the lease terms, rents, provision for rental increases, execution dates and expiration dates, and any other information necessary to demonstrate compliance with Civil Code Section 798.17. The city manager may, in his or her discretion, require that a mobile home park owner provide copies of any and all leases and other documents to the city in order to verify any information submitted by the mobile home park owner.

E. A registration statement shall be accepted for filing by the city only if it contains all information required by this chapter and any administrative rules and regulations enacted pursuant hereto, and any registration fee adopted by the city.

F. The city council may adopt an annual registration fee based on the number of spaces in the mobile home park to be used for the costs of administering this chapter. Registration fees shall be paid by each park owner to the city for each space which is not exempt pursuant to Civil Code Section 798.17, at the time the initial and annual statements are filed. The fee may be apportioned equally among the nonexempt spaces in the mobile home park and one-half thereof charged by the park owner to the residents of those spaces according to the apportionment in 12 equal monthly installments which may be included with the monthly statement of rent due, but must be separately itemized. The registration fee shall not be included in the rent base when calculating rent increases pursuant to this chapter. Any registration fees shall be established by resolution of the city council.

G. A mobile home park owner who fails to comply with any provision of this section shall not be entitled to charge, collect, retain or apply for any rent increases permitted by this chapter. [Ord. 96-1 § 6; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.06.]

9.05.070 Vacancy control.

A. In any mobile home park containing spaces exempt from this chapter pursuant to the provisions of CMC 9.05.020(A)(2) and Civil Code Section 798.45, as well as spaces subject to this chapter, and subject to the exceptions in subsection (B) of this section, the mobile home park owner may, upon a change in ownership of a mobile home occupying a space subject to rent control, increase the rental rate of that space to the new owner to an initial amount that is no greater than the average of the three most recent rental agreements entered into for comparable spaces (e.g., for “view” spaces, “interior” spaces, and “corner” spaces) which are exempt from the provisions of this chapter pursuant to the provisions of CMC 9.05.020(A)(2) and Civil Code Section 798.45.

B. A change of ownership between husband and wife or parent and child, or a change of ownership made for estate planning purposes, shall not be subject to the rent increase permitted in subsection (A) of this section.

C. Any amendment to this provision within 60 months of its effective date shall be made only upon the unanimous vote of the city council.

D. The terms of this section shall apply exclusively to mobile home parks which were developed in phases prior to April 17, 2000, and in which more than one-third of the constructed spaces, as of April 17, 2000, are exempt from the provisions of this chapter pursuant to CMC 9.05.020(A)(2) and Civil Code Section 798.45. [Ord. 2000-5 § 2; Ord. 2000-4 § 1; Ord. 96-1 § 1; Ord. 94-9 § 1; Code 1990 § 1.6.07.]

9.05.080 Permitted annual rent adjustment.

A. Subject to the requirements of this section, the rent for a mobile home space may be increased by a mobile home park owner once every 12 months by 80 percent of the increase in the Consumer Price Index (“CPI”) during the preceding 12 months. No application or permission is required for the annual adjustment under this section.

B. The annual CPI increase provided in this section may be imposed by a mobile home park owner following the expiration of the 90-day notice requirement imposed by Civil Code Section 798.30. The mobile home park owner shall serve such written notice on each resident of a space to be affected by the permitted annual rent adjustment.

C. The permitted annual rent adjustment shall be calculated as follows, and the calculations shall be set forth in the written notice:

1. The current CPI shall be determined. “Current CPI” shall mean the CPI most recently available as of the date of the written notice of permitted annual rent adjustment.

2. The prior CPI shall be determined. “Prior CPI” shall mean the CPI in effect 12 months prior to the date of the current CPI determined in accordance with subsection (C)(1) of this section.

3. The prior CPI shall be subtracted from the current CPI. The resulting sum shall be known as the “point change” in the CPI. The point change in the CPI shall then be divided by the prior CPI. The resulting figure shall be multiplied by 100, and shall be known as the “percent change” in the CPI.

4. The percent change in the CPI shall be multiplied by 80 percent. The resulting figure shall be known as the “CPI increase.”

5. The CPI increase shall then be multiplied by the current space rent of the space subject to the written notice, to arrive at the permitted annual adjustment for that space.

D. Any resident or other interested person may challenge the permitted annual adjustment for which notice has been received, by filing said challenge, including all supporting documentation, with the city manager, not later than 15 days after service of the notice of permitted annual adjustment by the mobile home park owner.

E. Any challenge to the permitted annual adjustment by any resident or other interested person shall be resolved by the city manager within 30 days of receipt of the challenge, and a written decision of the city shall be sent to the resident or other interested person who has filed such challenge as well as to the mobile home park owner seeking to impose such permitted annual adjustment.

F. If the city manager sustains the permitted annual adjustment for which the park owner has served notice, the rent increase shall be effective pursuant to the terms of the notice. If the city manager sustains the challenge by a resident or other interested person to the permitted annual adjustment, and approves a permitted annual adjustment in an amount different from the amount stated in the notice served by the park owner, that approved permitted annual adjustment may be imposed upon the expiration of the 90-day notice required by Civil Code Section 798.30.

G. The city manager shall sustain the challenge to a permitted annual adjustment brought under subsection (E) of this section if any of the following findings are made:

1. There has been a prior permitted annual adjustment under this section imposed on the affected space during the 12-month period immediately preceding the proposed effective date of the requested adjustment;

2. There has been a prior net operating income adjustment under CMC 9.05.100 or 9.05.110 for the subject park, in the 12-month period immediately preceding the proposed effective date of the requested adjustment;

3. For any space(s) previously exempt from rent control under Civil Code Section 798.17(a) or any other provision of state law, the proposed increase will be imposed less than 12 months following the last rent increase imposed while the space was exempt from rent control under a long-term lease; or

4. The proposed rent adjustment exceeds 80 percent of the increase in the CPI for the 12-month period immediately preceding the date of the notice of permitted annual adjustment. In the event that all other requirements of this chapter are met, but the proposed adjustment exceeds 80 percent of the increase in the CPI for the 12-month period immediately preceding the date of the notice of permitted annual adjustment, the city manager shall resolve the challenge by the resident or other interested person by approving a rent adjustment in an amount which does not exceed 80 percent of the increase in the CPI over such 12-month period.

H. The decision of the city manager on a challenge to a permitted annual adjustment shall be final.

I. Any amendment to this provision within 60 months of its effective date shall be made only upon the unanimous vote of the city council. [Ord. 2000-5 § 3; Ord. 2000-4 § 2; Ord. 96-7 §§ 1 – 3; Ord. 96-1 § 8; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.08.]

9.05.090 Rent adjustment based on capital improvements.

A petition for a rent increase based on the cost of a completed capital improvement may be filed with the city, in accordance with the following provisions:

A. Subject to subsection (B) of this section, the capital improvement adjustment petition shall be approved if all of the following findings can be made:

1. The work satisfies the definition of capital improvement set forth in CMC 9.05.030, and in any administrative rules and regulations adopted pursuant to this chapter;

2. Fifty-one percent of the occupied spaces in the park, with one vote per space, have consented to the capital improvement;

3. No prior rent increases have been charged based upon or including the cost of the capital improvement; and

4. All documentation and other information required by this chapter pertinent to the requested rent increase has been provided by the park owner.

B. Notwithstanding subsection (A) of this section, a capital improvement rent adjustment shall not be granted if the proposed capital improvement rent adjustment is for any portion or all of a utility distribution system where the utility rates are set by the Public Utilities Commission and the approved rates took into consideration costs of repair, replacement, maintenance, operation and/or capital improvements to the system.

C. A petition which meets all other requirements of this subsection but has not been consented to by 51 percent of the occupied spaces may be granted when the capital improvement is necessary to protect the health and safety of the park, its residents, or neighbors, as determined by the city.

D. Any rent adjustment granted under this section shall be amortized over the useful life of the improvement and apportioned equally among all rental spaces in the mobile home park by dividing the verified cost of the improvement by its useful life (in years), dividing that result by 12 and further dividing by the number of spaces in the mobile home park. Any increase granted under this section shall remain in effect only during the useful life of the improvement. Any such increase shall be included as a separate charge either on the residents’ monthly rent statement or on a separate statement, and shall not be included in the space rent for purposes of determining any other future rent increases under this chapter.

E. For purposes of determining the cost of a capital improvement, an interest cost of the lesser of either the current prime rate plus one percent, or the interest rate actually incurred by the mobile home park owner in financing the improvement, may be added.

F. Management may petition the board for an increase under this section by submittal of a verified petition under penalty of perjury to the city manager. The petition shall state the names, addresses and telephone numbers of all affected residents; the current rent of the affected spaces; the proposed rent adjustment; the documentation supporting the capital improvement and the basis for the requested rent adjustment; such other information relevant to the petition as determined by the city; and two sets of stamped envelopes addressed to each affected resident. All necessary documents and records to support the petitioner’s calculations shall be attached to and shall become part of the petition. Seven copies of the petition and supporting documentation and records, along with proof of service of the notice required by CMC 9.05.110(D), shall be filed with the city manager.

G. No petition shall be deemed complete until all documents supporting the petitioner’s calculations and requested rent adjustment have been filed with the city manager. The city shall have 30 days in which to determine the completeness of the petition, and shall notify the petitioner in writing within that period of any deficiency in the petition. Failure to comply with the provisions of this subsection shall be good and sufficient cause to deny the petition.

H. The documents and records submitted in support of the petition must be legible, reproducible, organized and presented in a manner appropriate and acceptable by reasonable accounting standards. The calculation of the proposed rent adjustment and the supporting material must be certified by a certified public accountant as accurate and computed in the same manner as books and records kept for income tax purposes. Management must, upon request of the city manager, or the board, or any designated representative of the board, show to city staff and/or the board or the board’s representative the original document from which any photocopy was made and all documents, papers, or written memoranda which support or are evidence of claimed expenses of any nature. Failure to comply with the provisions of this subsection shall be good and sufficient cause to deny the petition.

I. Management shall serve written notice of the filing of the petition on each resident of a space affected by the petition, in accordance with the requirements of CMC 9.05.110(D). No petition shall be considered as filed until proof of service of such notice and petition is filed with the city manager as required by CMC 9.05.110(D).

J. Written notice of the petition shall be mailed by the city to the affected residents on the date on which the petition is determined to be complete, and shall advise them of their right to submit a written response or protest to the petition, along with all supporting documentation, within 30 days of the date of mailing of the notice.

K. The board shall commence a public hearing on the petition within 45 days after mailing of the notice to the affected park residents that the petition has been deemed complete, and shall render its decision in writing, including findings of fact, within 75 days after the petition is determined to be complete; provided, that the board may extend the time limits under this subsection for reasonable cause, and failure of the board to act within the time limits specified herein shall not result in the automatic approval of any petition. The public hearing shall be conducted in the same manner as and in accordance with the requirements of hearings on petitions under CMC 9.05.110. The board may approve the requested increase or a modified increase, or may deny the increase.

L. Costs of the public hearing shall be paid by management based upon an estimate prepared by the city manager and as established by resolution of the city council. The estimated costs of the public hearing shall be deposited with the city manager no less than 15 days prior to the hearing. Failure to deposit the costs shall be good and sufficient reason to deny the petition. The term “costs” shall have the meaning set forth in CMC 9.05.110(F).

M. Any interested person wishing to respond or object to the petition may do so by filing a written response or protest with the city manager. The written response or protest shall be filed with the city manager not later than the thirtieth day following the date that notice of the complete petition is mailed to the affected residents. All such responses or protests shall be served on management and proof of such service filed with the city manager on forms provided by the city at the time the written response or protest is filed with the city manager.

N. At the conclusion of the public hearing, if the board finds that all requirements of this chapter have been met and an increase as requested in the petition or as modified by the board is authorized, the board shall approve the increase.

O. Management may but need not submit an application to the board for a determination whether a proposed improvement would qualify for a capital improvement adjustment under this section upon its completion. The determination by the board shall be limited to the issue of whether the work proposed constitutes a capital improvement and shall not address the amount of the rent adjustment which would result from completion of the improvement should management prevail on the petition. If an improvement is determined to qualify as a capital improvement under this section the only issues to be determined when the improvement has been completed and a petition for rent adjustment received shall be the amount of the adjustment; provided, that the improvement constructed conforms to the proposed improvement submitted to the board. A hearing shall be held on the application in accordance with CMC 9.05.110.

P. Appeal. Any decision of the board pursuant to this section may be appealed to the city council in accordance with CMC 9.05.120. [Ord. 96-1 § 9; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.09.]

9.05.100 Rent adjustment to provide a reasonable return.

A. It is the intention of the city council that the permitted annual rent increase shall be sufficient to provide a reasonable return and maintain net operating income to a mobile home park owner. Nevertheless, recognizing the possibility of an extraordinary situation, a mobile home park owner may file a petition with the city manager for a rent adjustment in addition to that permitted by CMC 9.05.080 and/or 9.05.090 on the ground that it is required to provide a reasonable return on his or her investment in the park in such situations, in accordance with the following criteria. It shall be presumed, in the absence of evidence to the contrary, that the net operating income produced by the mobile home park during the base year provided the mobile home park owner with a reasonable return to the park.

B. “Gross income” for the park equals:

1. Gross rents computed as gross rental income at 100 percent paid occupancy; plus

2. Interest earned on rental deposits, unless paid by the mobile home park owner to the residents; plus

3. Laundry facilities, cleaning fees or services, garage, storage and parking fees; plus

4. All other income or consideration received or receivable for or in connection with use or occupancy of mobile home spaces and related services in the park, excluding any income or reserves received from submeter discounts; minus

5. Uncollected rents due to vacancy and bad debts to the extent they are beyond the control of the mobile home park owner. Uncollected rents in excess of three percent of gross rents shall be presumed to be unreasonable unless proven otherwise by a preponderance of the evidence.

C. “Operating expenses” for the park include:

1. Real property taxes; plus

2. Reasonable management expenses, contracted for or performed by the mobile home park owner, including necessary and reasonable advertising, accounting, insurance and other managerial expenses including allowable legal expenses as specified in subsection (E) of this section. Management expenses are presumed not to exceed five percent of gross income unless proven otherwise by a preponderance of the evidence; plus

3. Reasonable normal repair and maintenance expense, such as painting, normal cleaning, fumigation, landscaping and repair of all standard services, including electrical and plumbing (and excluding the repair of, maintenance to, or the replacement of any component or meter of any submetered utility distribution system if the approved utility rates took into consideration the cost for operation, repair, replacement and/or maintenance of that type of service), carpentry, furnished appliances, drapes, carpets, furniture, pool, laundry and recreational equipment; plus

4. Owner-performed labor if actually performed by the park owner. Owner-performed labor shall be compensated at an amount not to exceed the average hourly rate charged for such work within the same industry in the city of Calimesa or the surrounding area, and only upon a satisfactory showing of the date, time and nature of the work performed. Owner-performed labor in excess of five percent of gross income is presumed to be unreasonable unless proven otherwise by a preponderance of the evidence; plus

5. Licenses and registration fees required by law to the extent they are not paid by the residents; plus

6. Capital improvements with a total cost of less than $100.00 per year per benefitted unit; plus

7. Capital improvements and major repairs with a total cost of more than $100.00 per year per benefitted space, provided such costs are amortized on a straight line basis over the life of the improvement. When the useful life of the improvement exceeds four years, an interest cost of the lesser of either the current prime rate plus one percent, or the interest rate incurred by the mobile home park owner in financing the improvement or repair may be added.

D. Operating expenses shall not include:

1. Unnecessary and avoidable expense increases since the base year; and

2. Mortgage principal and interest payments and payments of any underlying ground lease, or any other debt service except as expressly provided in this section; and

3. Any penalties assessed or awarded for violations of this or any other law; and

4. Legal costs and fees except as provided in subsection (E) of this section; and

5. Depreciation of the property; and

6. Any expenses for which the mobile home park owner has been reimbursed by any security deposit, insurance settlement, judgment for damages, or any other method; and

7. Reserve accounts; and

8. Accounting or other similar expert expenses incurred by the park owner in seeking any rent adjustment under this chapter, including but expressly not limited to any costs incurred in preparing or submitting any petition, or in presenting any petition to the board or the city council; any costs of the public hearing incurred by the park owner in seeking any rental adjustment under this chapter; or any accounting or other similar expert expenses incurred in judicial or other administrative proceedings involving challenges to this chapter, any decision of the city under this chapter, or the defense of lawsuits or other proceedings brought by residents and/or the city under this chapter; and

9. Any capital improvement for which a capital improvement adjustment has been approved under CMC 9.05.090.

E. Allowable legal expenses shall include reasonable attorneys’ fees and costs incurred in successful good faith attempts to recover rents owing and unlawful detainer actions to the extent such fees and costs are not recovered from the defendants; and reasonable attorneys’ fees and costs incurred in connection with matters pertaining to the title or normal operation of the mobile home park. Allowable legal expenses shall not include attorneys’ fees and costs for proceedings under this chapter; or for judicial or other administrative proceedings involving challenges to this chapter, any decision of the city under this chapter, or the defense of lawsuits or other proceedings brought by residents and/or the city under this chapter; or any payments made to any organization for the purpose of litigating or challenging rent control. Except as provided in this subsection, no other attorneys’ fees and costs are allowable as operating expenses.

F. The term “base year” shall mean the fiscal year commencing July 1, 1991, and ending June 30, 1992.

G. The term “net operating income” shall mean gross income less operating expenses for the park.

H. For purposes of determining a rent adjustment under subsection (I) or (J) of this section, the gross income and operating expenses for the entire park shall be determined, including for those spaces which are exempt from rent control pursuant to a long-term rental agreement under Civil Code Section 798.17(a). However, in calculating a net operating income adjustment under subsection (I) of this section or a readjustment to the base year net operating income under subsection (J) of this section for the regulated spaces, the net operating income of the park shall be adjusted to reflect only that portion of the park that is subject to this chapter, and a prorated amount of the park’s net operating income adjustment shall be allocated to the individual regulated spaces such that the regulated spaces shall be required to pay only that portion of the net operating income adjustment attributable to the regulated spaces. Spaces exempt from rent control shall pay the space rent required pursuant to their individual long-term leases.

I. Net Operating Income Adjustment. A mobile home park owner may petition the board to increase the park’s base year net operating income by 80 percent of the increase in the Consumer Price Index since June 30, 1992, and the date of the petition. For the purpose of this subsection, the June 30, 1992, Consumer Price Index shall be the Consumer Price Index provided by the Bureau of Labor Statistics for the Los Angeles-Anaheim-Riverside area for June 30, 1992; and the current Consumer Price Index shall be the Consumer Price Index last reported as of the date the petition is deemed complete. The petition shall be filed in accordance with CMC 9.05.110.

J. Adjustment to Base Year NOI. A mobile home park owner may rebut the presumption that the park’s base year net operating income provided a just and reasonable return on the park owner’s investment at that time by presenting evidence that:

1. The park’s operating expenses in the base year were unusually high or low. In such instances, the board may adjust the calculation of base year NOI by adjusting the expenses to reflect the average of the park’s expenses over a reasonable period of time or the average of expenses in comparable mobile home parks in that year.

2. Capital improvements were made during the base year, but were not reflected in increases collected during that year.

3. Unusual repairs were made in the base year due to damage caused by uninsured natural events or vandalism.

4. Other expenses were unreasonably high or low notwithstanding prudent business practices.

5. The rent during the base year was disproportionately low due to the fact that it was not established in an arms-length transaction, rent had not been increased during that year or other peculiar circumstances.

6. The rent during the base year was disproportionately low when compared to rents being charged for spaces in comparable mobile home parks in the city and comparable parks in the surrounding areas.

7. The rent during the base year was not sufficient to provide a just and reasonable return by providing evidence of the return on investment actually earned by the park in the base year and of the return on investment earned by comparable parks in the city and surrounding areas since the base year.

The mobile home park owner shall have the burden of proving that one or more of the circumstances listed above existed and of providing the evidence needed to make appropriate adjustments in base year income and expenses. The petition shall be filed in accordance with CMC 9.05.110. [Ord. 96-1 § 10; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.10.]

9.05.110 Petition for rent adjustment to provide a reasonable return on property.

Petitions for a rent adjustment to provide a reasonable return shall be submitted in accordance with the following requirements:

A. Management shall file a verified petition under penalty of perjury with the city manager for a rent adjustment to provide a reasonable return and to maintain net operating income pursuant to CMC 9.05.100(I) or (J). The petition shall state the names, addresses and telephone numbers of all affected residents; the current rent of the affected spaces; the proposed increase; the calculations pursuant to CMC 9.05.100 to support the proposed increase and a request to the board to review and approve the proposed increase; such other information relevant to the petition as determined by the city; and two sets of stamped envelopes addressed to each affected resident. All necessary documents and records to support the petitioner’s calculations shall be attached to and shall become part of the petition. Seven copies of the petition and supporting documentation and records, along with proof of service of the notice required by subsection (D) of this section, shall be filed with the city manager.

B. No petition shall be deemed complete until all documents supporting the petitioner’s calculations and requested increase have been filed with the city manager. The city shall have 30 days in which to determine the completeness of the petition, and shall notify the park owner in writing within that period of any deficiency in the petition. Failure to comply with the provisions of this subsection shall be good and sufficient cause to deny the petition.

C. The documents and records submitted in support of the petition must be legible, reproducible, organized and presented in a manner appropriate and acceptable by reasonable accounting standards. The calculation of the proposed rent increase and the supporting material must be certified by a certified public accountant as accurate and computed in the same manner as books and records kept for income tax purposes. The petitioner must, upon request of the board, or any designated representative of the board, show to the board or the board’s representative the original document from which any photocopy was made and all documents, papers, or written memoranda which support or are evidence of claimed income or expenses of any nature, or which are otherwise pertinent to the board’s decision on the petition. Failure to comply with the provisions of this subsection shall be good and sufficient cause to deny the petition.

D. Management shall serve written notice of the filing of the petition on each resident of a space affected by the petition. Management shall also serve a copy of the petition and all supporting documentation and records on the designated representatives of the park residents. The representatives shall be selected by the park residents and shall not exceed four persons. Service of the notice and petition may either be in person or by mail to the last known address of each resident and representative. No petition shall be considered as filed until proof of service of such notice and petition is filed with the city manager. The notice shall also advise the residents that four copies of the petition and supporting documentation are available for their review and copying at the park office and in the park recreation building or other common facility; and that the petition and supporting documentation may be reviewed at City Hall. The notice shall be on a form provided by the city manager.

E. Written notice of the petition shall be mailed by the city to the affected residents on the date on which the petition is determined to be complete, and shall advise them of their right to submit a written response or protest, along with all supporting documentation, to the petition within 30 days of the date of mailing of the notice. The city clerk shall call a meeting of the board to commence a public hearing within 75 days after the petition has been deemed complete by the city. The city clerk shall publish notice of the public hearing at least 72 hours prior thereto. The board shall render its decision, in writing, including findings of fact, within 90 days after the petition is determined to be complete; provided, that the board may extend the time limits under this subsection for reasonable cause, and failure of the board to act within the time limits specified herein shall not result in the automatic approval of any petition.

F. Costs of the public hearing shall be paid by management based upon an estimate prepared by the city manager. The estimated costs of the public hearing shall be deposited with the city manager no less than 60 days prior to the hearing. Failure to deposit the costs shall be good and sufficient reason to deny the petition. As used in this subsection, the term “costs” means all city staff and other expert time incurred by the city in reviewing the petition and presenting the petition to the board and city council; copying and duplication costs, and costs of providing public notice. Costs shall be established by resolution of the city council.

G. Any resident or other interested person wishing to protest or respond to the petition may do so by filing a written protest with the city manager. The written protest shall be filed with the city manager not later than the thirtieth day following the date that notice of the complete petition is mailed to the affected residents. All such protests shall be served on management and proof of such service filed with the city manager on forms provided by the city at the time the written protest is filed with the city manager.

H. In seeking a rent adjustment under any provision of this chapter, the petitioner shall bear the burden of proof. All parties to the public hearing may have assistance in presenting evidence and developing their position from legal counsel, residents, resident or park owner organizations, or experts designated by such parties. In the event that the city retains a certified public accountant or other expert as a designated representative of the board to examine the petition and supporting material and testify as an expert witness, the cost to the city to employ such an expert shall be a part of the cost of the public hearing. Any and all expenses shall be reasonable.

I. At the conclusion of the public hearing, if the board finds that an increase as requested in the petition or as modified by the board is authorized by CMC 9.05.100, the board shall approve the increase. If the board finds an increase is not authorized under CMC 9.05.100, the board shall deny the increase. The petitioner shall not be permitted more than one increase under CMC 9.05.100 in any 12-month period. [Ord. 96-1 § 11; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.11.]

9.05.120 Appeal.

A. Either party may, and prior to commencing any action in a court of competent jurisdiction shall, appeal any final decision or order of the board to the city council by filing written notice of the appeal with the city manager not later than 15 days after the date of deposit in the mail of the decision of the board to the petitioner and affected residents. The appellant shall serve written notice of the filing of the appeal, along with any documents supporting the appeal, on the opposing party. Such service may either be in person or by mail to the last known address of the opposing party. No appeal shall be considered as filed until proof of service of such notice and supporting documentation are filed with the city manager, and the cost of the appeal is deposited with the city manager. The cost of the appeal shall be estimated by the city manager. Proof of service shall be on a form provided by the city manager. The city manager shall set the appeal for a public hearing at a regular meeting of the city council to be commenced within 30 days after the appeal is filed. No appeal shall be considered filed until proof of service of such notice, supporting documentation and deposit is filed with the city manager.

B. As used in this section, the term “costs” means all city staff and other expert time incurred by the city in reviewing the appeal and presenting the appeal to the city council; copying and duplication costs; and costs of providing public notice. The costs shall be set by resolution of the city council.

C. The city council may require any party to the appeal to provide it with any books, records, papers or other documents pertinent to resolving the matters raised in any appeal. Failure of any appellant to comply with the provisions of this subsection shall be good and sufficient cause to deny the appeal.

D. The city council shall issue its decision in writing, including findings of fact, within 45 days of the commencement of the public hearing; provided, that the city council may extend the time limits under this subsection for reasonable cause, and failure of the city to act within the time limit specified herein shall not result in the automatic approval of any petition. The decision of the city council on any appeal shall be final. [Ord. 96-1 § 12; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.12.]

9.05.130 Maximum rent.

A. The maximum permitted rent at any given time for each space shall be the space rent approved by the city under this chapter or any other prior rent control ordinance.

B. A mobile home park owner, or anyone acting on behalf of a mobile home park owner, shall not demand, accept, receive or retain from any resident or prospective resident more than the maximum rent permitted by this chapter. A mobile home park owner, or anyone acting on behalf of a mobile home park owner, shall not increase the rent on any space except in compliance with the provisions of this chapter.

C. A mobile home park owner, or anyone acting on behalf of a park owner, shall not serve written or verbal notice of rent increase on any resident until the rent increase has been approved by the city in writing pursuant to this chapter.

D. A resident may refuse to pay any rent in excess of the maximum permitted rent. The fact that such unpaid rent is in excess of the maximum permitted rent under this chapter shall be a defense in any action brought to recover possession of the mobile home space for nonpayment of rent or to collect the illegal rent.

E. A resident may bring an action in any court of appropriate jurisdiction in which injunctive relief may be granted to recover any rent paid in excess of the maximum permitted rent under this chapter. The prevailing party shall be awarded his or her reasonable attorneys’ fees and the court, where applicable, shall be empowered to award treble damages for any rents charged in excess of the maximum permitted by this chapter. [Ord. 96-1 § 13; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.13.]

9.05.140 Rental agreements.

Nothing in this chapter shall operate to restrict the right of a resident and the park owner to enter into a written rental agreement, signed by both parties; provided, that no park owner, or anyone acting on behalf of a park owner, shall require, directly or indirectly, that any resident or prospective resident sign a lease or rental agreement with a term in excess of 12 months, or that provides that it shall be exempt from local rent control, as a condition of tenancy in the park or which otherwise requires any resident or prospective resident to waive any of his or her benefits under this chapter. No park owner, or anyone acting on behalf of a park owner, shall deny a tenancy to a prospective purchaser of a mobile home in the park on the ground that the prospective purchaser will not sign such a lease or rental agreement that exempts the space from rent control or otherwise requires the prospective purchaser to waive his or her rights under this chapter. [Ord. 96-1 § 14; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.14.]

9.05.150 Limitation of actions.

Any action to attack, review, set aside, annul or void of any final decision under this chapter shall not be maintained by any person unless such action or proceeding is commenced and service is effected within 90 days of the final decision. [Ord. 96-1 § 15; Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.15.]

9.05.160 Administrative costs.

The city manager shall, from time to time, calculate the total costs of conducting a meeting of the mobile home rent stabilization board and appeal to the city council and file such figures in his office. Such figures shall be used in determining the deposits and costs for holding a meeting of the board and appeal to the city council. [Ord. 94-9 § 1; Ord. 93-17 § 1; Code 1990 § 1.6.16.]

9.05.170 Remedies.

A. Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor punishable by a fine of $1,000 or imprisonment for a term of six months or both; provided, that where the city attorney determines that such action may be in the best interests of justice, the city attorney may specify in the accusatory pleadings that the offense shall be an infraction.

B. Any park owner, park manager, or any other person acting on behalf of a park owner or park manager, who demands, accepts, receives or retains any money as rent from a resident to which said park owner is not entitled under the provisions of this chapter shall be liable to the resident for any actual damages, hearing fees, attorneys’ fees and costs incurred by the resident as a consequence thereof. In addition to all other remedies set forth in this chapter, any person violating any provision of this chapter shall be liable for an additional penalty of $500.00 upon a finding that such person willfully violated the provisions of this chapter.

C. The city council may institute a civil action to compel compliance with this chapter.

D. All remedies set forth herein are hereby declared to be cumulative and nonexclusive. [Ord. 96-1 § 16; Code 1990 § 1.6.17.]

Prior legislation: Ords. 91-1 and 96-3.