Loading...
Ord 1973 - Amending Article 14.85 Regardung Mobile Home Rental and Other Tenant/Landlord DisputesORDINANCE 1973 ORDINANCE OF THE TOWN OF LOS GATOS AMENDING ARTICLE 14.85 REGARDING MOBILEHOME RENTAL AND OTHER TENANT /LANDLORD DISPUTES THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY ORDAIN: SECTION I Section 14.85.020 of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.020. Definitions For the purposes of this article, unless otherwise apparent from the context, certain words and phrases used in this article are defined as follows: a. Arbitrator. An individual designated by the Town Manager or the Town Manager's designee to conduct the hearing procedures of this article and to determine the reasonableness of rent increases. b. . Affected tenants. All mobile home tenants in a mobile home park who have been notified by the park owner that a rent increase (including service reduction) is to become effective during the following calendar year. C. Capital improvements. The installation of new improvements and facilities or the replacement or reconstruction of existing improvements and facilities which consist of more than ordinary maintenance or repairs. d. Consumer price index (CPI). The consumer price index for all urban consumers for the San Francisco /Oakland /San Jose Area (all items) index (1967 equals 100) as reported by the U.S. Bureau of Labor Statistics. e. CPI rent increase. An annual rent increase equal to the amount of increase in the CPI in the previous twelve (12) months up to five (5) percent. f. Housing services. Those services provided and associated with the use or occupancy of a mobile home space, including but not limited to repairs, insurance, maintenance, replacement, painting, light, heat, water, laundry facilities and privileges, refuse removal, parking, recreation facilities, security service and any other benefits, privileges or facilities. g. Mobile home. A structure designed for human habitation which is transportable in one or more sections along a street or highway, commonly referred to as a mobile home. h. Mobile home owner or tenant. Any person owning a mobile home who has a tenancy or right of use or occupancy of a mobile home space in a mobile home park. L Mobile home park. An area of land where two (2) or more mobile home spaces are rented, or held out for rent, or made available for use, to accommodate mobile homes used for human habitation. j. Mobile home space or space. The site within a mobile home park intended, designed, or used for the location or accommodation of a mobile home and any accessory structures or appurtenances attached thereto or used in conjunction therewith where public utilities are provided. k. Owner or Mobile home park owner. The owner, lessor, operator or manager of a mobile home park in the Town. 1. Owner's petition. A petition filed by an owner seeking a supplemental rent increase. m. Rental agreement or lease. An agreement entered into between the park management or owner and a mobile home tenant establishing the terms and conditions of a mobile home park tenancy. n. Service reduction. Any reduction in housing services which results in a cost savings to owner without a corresponding reduction in the monies demanded or paid for space rent. o. Space rent. The total consideration, including any bonus, fees, surcharges, benefits or gratuity demanded or received in connection with the use or occupancy of a mobile home space in a mobile home park, or for housing 2 services provided, and security deposits, but exclusive of any amount paid for the use of the mobile home as a dwelling unit. P. Space rent increases. Any additional rent above the base space rent which is demanded of or paid by a tenant for a mobile home space including service reductions. q. Supplemental rent increase. An increase in space rent in excess of the annual CPI Rent Increase, determined by the arbitrator to result in a fair and reasonable return to the owner. r. Tenant's petition. A petition filed by one or a group of affected tenants and supported by at least 20 percent of affected tenants. S. Town's agent. The individual or agency designated by the Town council to perform the services defined herein. SECTION II Section 14.85.050 of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.050. Extension of time; mutual agreement. By written agreement of the parties or upon application to the arbitrator and for good cause shown, the time frames provided for under this article may be extended. SECTION III Section 14.85.055 (b) and (c) of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.055. Duty of owner to provide copy of article and rental data. (b) All mobile home park owners shall cause documentation of the rent charged for each space in December 1985 and December 1992 to be filed with the Town's agent by February 1, 1993. By February 1 of each year thereafter, the mobile 3 home park owner will document and file with the Town's agent the rent charged in December of the previous year, for each space occupied by a tenant -owned home. (c) Aqy owner that fails to provide the information required by this Section shall not be entitled to any rent increase until the information is provided. The failure of one or more owners to provide the information shall not adversely affect the rights of any other owner or tenant of the other owner to the procedures and processes provided by this article. Any information so missing shall either be ignored or estimated by the Town or arbitrator, as applicable, so as to achieve the purposes of this article. SECTION IV Section 14.85.105, last paragraph, of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.105. Space rent increase -- Notice. The park owner shall, upon written request, provide each affected tenant with a list of all tenants with their respective space numbers who received a notice of rent increase. SECTION V Section 14.85.125 of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.125. Same -- Submission of tenant's petition. (a) Any tenant who wishes to limit any rent increase or to reduce any current rents may file a tenant's petition with the Town's agent. Upon receipt, the Town's agent shall send a ballot to each affected tenant to determine her /his support for the petition. To be a valid petition, it must be supported by at least twenty (20) percent of the affected tenants as determined by ballots received. The sole basis for such a petition shall be to compensate for a reduction in service. Before filing a tenant's petition, written notice of the 0 alleged service reduction and a reasonable opportunity to restore service must be given to the mobile home park owner. (b) If a group of tenants seeks review, the affected tenants shall designate in writing to the Town's agent an individual to serve as the tenant representative for the purposes of receipt of all notice, correspondence, decisions and findings of fact required in this article, within ten (10) days of original petition submittal. Service of notice upon the designated tenant representative will constitute adequate and sufficient notice to the tenants who signed the petition. Failure to designate a tenant representative within ten (10) days of original petition submittal will render the petition incomplete and the petition will not be accepted for filing. (c) A tenant's petition may include a request for audit and Net Operating Income (NOI) analysis for the preceding three (3) years; however, no such audit and analysis may be required more frequently than every three (3) years. The auditor shall be selected by Town or its agent. The cost of such audit and analysis shall be paid by the Town from the regulatory fees collected. The full audit shall be confidential and presented to the arbitrator only. A summary shall be prepared and presented to the mobile home park owner and tenant representative. Disclosure of any information not included in the summary shall be disclosed only as deemed necessary in the exclusive discretion of the arbitrator. SECTION VI Section 14.85.130 of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.130. Petitions - -Form. (a) The form of the owner's and tenant's petition shall be prescribed by the Town's Agent and must be accompanied by supporting material as prescribed by the Town's agent. An owner's petition shall contain the printed name and address (i.e. space number) of each tenant whose rent is being increased. Appended to the 5 petition shall be a copy of the notice given by the park owner which indicated the date it was served. Appended to the tenant's petition shall be a copy of the tenant's notice to the mobile home park owner of that service reduction. The petition shall be made under penalty of perjury and supporting documents shall be certified or verified as requested by the Town's agent. (b) All petitions received by Town's agent concerning similar issues at the same mobile home park will be merged at the Town agent's discretion. SECTION VII Section 14.85.135 of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.135. Same - -Time for filing. An owner's petition must be filed at least thirty (30) days before the first effective date of the increase stated in the notice to tenant. A tenant's petition must be filed within thirty (30) days after expiration of the reasonable time given to the mobile home park owner to restore services. SECTION VIII Section 14.85.145 of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.145. Hearing -- Procedures. (a) Parties. Parties to an owner's petition include the owner and all tenants affected by the proposed rental increase. Parties to a tenant's petition include the owner and affected tenants. (b) Time. Within sixty (60) days from the date a petition is received by the Town's agent, an arbitrator shall conduct a hearing open to representatives of all parties. (c) Notice. The Town's agent shall mail written notice to all parties at least twenty (20) calendar days before the hearing. T (d) Submittal of evidence. Materials to be considered at the hearing must be logged with the Town's agent at least twelve (12) days in advance of the hearing who shall make them available to all parties to the hearing at least seven (7) days in advance of the hearing. (e) Extensions. Extensions of time for the hearing process may be mutually agreed upon by both parties with the concurrence of the arbitrator. SECTION IX Section 14.85.160, (b) (2) of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.160. Same -- Determination. (2) If an audit and analysis prepared pursuant to the provisions of section 14.85.125 indicates that a park's NOI exceeds five (5) percent more than a fair and reasonable return as defined by section 14.85.245, it shall be considered prima facie evidence of a service reduction and the burden of proof shall switch to the park owner to establish that a service reduction has not occurred. SECTION X Section 14.85.165 of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.165. Hearing; determination; notification. Within twenty days following the conclusion of the hearing, the arbitrator shall deliver to the Town's agent a written statement of determination and findings of fact upon which such determination is based. The Town's agent shall cause copies of the determination and the findings to be mailed by regular first class mail to all parties. 7 SECTION XI Section 14.85.170 of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.170. Increase determined not reasonable; remedies. Any rent increases collected by a mobile home park owner pursuant to a CPI or supplemental increase which is the subject of a tenant's petition and later determined to be unjustified because of a service reduction, shall, within ninety (90) days be either returned to the tenants or credited to future rental charges at the option of the mobile home park owner. SECTION XII Section 14.85.175 of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.175. Determination; applicability. The determination made under the provisions of this article shall be effective with respect to all mobile home park spaces, unless the tenant of such space has a written lease which meets the criteria of Civil Code Section 798.17, with the owner which otherwise sets forth the rights and obligations of the parties with respect to rent. SECTION XIII Section 14.85.180 of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.180. Determination and appeal. The determination of the arbitrator shall be final. Any party disputing the determination and findings may seek review pursuant to Sections 1094.5 and 1094.6 of the California Code of Civil Procedure. Section 1094.6 expressly applies to proceedings under this article. SECTION XIV Section 14.85.235, (a) (5) of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.235. Calculation of gross income. (5) Proceeds from a sale of a mobile home park asset which exceed the book value of the asset. If an asset is conveyed from the mobile home park to another entity via a non -sales transaction, then, for this subparagraph, the transaction would be considered a sale and the sales price would be set at the fair market value of the asset. SECTION XV Section 14.85.240, (a) (4) of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.240. Calculation of operating expenses. (4) License, registration fees, and the regulatory fee required by Section 14.85.030 as required by law to the extent not otherwise paid by the residents. Section 14.85.240, (a) (5) (e) of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.240. Calculation of operating expenses. e. If a capital improvement is removed from service, then the related depreciation shall discontinue accrual to operating expenses. Depreciation for a capital improvement shall also discontinue accrual to operating expenses when the book value of the capital improvement is reduced to the salvage value or zero, whichever is greater. 2 SECTION XVI Section 14.85.315, (c), of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.315. Determining value of unreasonable service reductions. (c) The arbitrator shall apply the percentage reduction to the monthly rent, divide by thirty (30), and multiply by the number of days commencing from the date service reduction began to the date of restoration of the service to the Basic Service Level. SECTION XVII Section 14.85.315, (c), of Chapter 14 of the Town Code is hereby amended to read as follows: Section 14.85.405. Unsupervised efforts of the parties. (a) Notice of objection. One or more tenants, or the mobile home park owner, may at any time file a written objection with the other, as to maintenance, capital improvement, housing services, or any other concern related to the physical condition or habitability of the mobile home park. (b) Informal meeting. Within ten (10) days after service of the written objection from a tenant, the mobile home park owner shall set a time and place for a meeting to be held on the mobile home park premises, giving the tenant at least seven (7) days' notice of the time and place. In the case of a written objection filed by the park owner, a time and place for discussion shall be set forth in the notice. The purpose of this meeting shall be to allow the parties the opportunity to resolve any differences they may have concerning non - rental disputes. The meeting may be continued to another time and place agreeable to the parties. The parties may agree t o consolidate more than one notice of objection in the same discussion. 10 SECTION XVIII This ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on March 7, 1994, and adopted by the following vote as an ordinance of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on May 2, 1994. This ordinance takes effect thirty (30) days after it is adopted. COUNCIL MEMBERS: AYES: Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin, Mayor Randy Attaway NOES: None ABSENT: None ABSTAIN: None SIGNE 9CALIF .- - • • • • • • • ATTEST: CLERK OF THE TOWN OF LOS��GATOS LOS GATOS, CALIFORNIA 11