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
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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
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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
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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
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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.
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(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.
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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.
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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
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o consolidate more than one notice of objection in the same discussion.
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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
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