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HomeMy WebLinkAboutOrdinance No. 92-O4ORDINANCE NO. 92-04 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING THE AZUSA MUNICIPAL CODE AT SECTION 5.12.070 AND ADDING CHAPTER 5.56 RELATING TO MOBILEHOME PARK RENT STABILIZATION THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council of the City of Azusa does hereby find and determine that: A. The City of Azusa has heard comment on the issues surrounding mobilehome park tenancies in 1990 and has mediated certain disputes within the community. B. Despite progress by the City, unresolved disputes exist and the City finds it necessary to exercise its police powers. C. Mobilehome park tenants are in a poor bargaining position with park owners because of substantial in vestments in their mobilehomes, the high cost of relocation and a lack of alternative sites within Azusa and the region. D. Unregulated mobilehome park rents will be a hardship on vulnerable portions of the City's population, including the elderly, the disabled, and those of low income, forcing these persons to leave the City or, divert a disproportionate amount of income to housing. SECTION 1. The Azusa Municipal Code is hereby amended at Section 5.12.070 to add the underscored language as follows: 5.12.070 MOBILEHOME PARKS. Every person engaged in the business of managing or operating an automobile trailer camp, used for temporary parking of recreational vehicles and trailers, or mobilehome park used for the parking of mobile homes on a continuing basis, shall pay an annual license tax of twenty-four dollars for the first three spaces, then an additional twelve dollars for each parking space or unit available for the parking of trailers or placement of mobile homes. Any such business shall 1771.1 12/16/91 11:00 a.m. 0 0 SECTION 2. The Azusa Municipal Code is hereby amended to add Chapter 5.56 to Title 5, relating to Mobilehome Park Rent Stabilization, to read as follows: CHAPTER 5.56 MOBILEHOME PARK RENT STABILIZATION 5.56.010. PURPOSE. It is the purpose of this Chapter to facilitate the establishment of fair and reasonable rents within mobilehome parks within the City of Azusa. Furthermore, it is the intent of this Chapter to maintain the character and quality of the City's mobilehome parks, providing park owners reasonable rent increases and park residents the security of rent review. 5.56.020 DEFINITIONS. For the purposes of this Chapter only, the following words, terms and phrases shall be defined as follows: BOARD shall mean the Mobilehome Park Rental Review Board of the City of Azusa. CAPITAL IMPROVEMENT shall mean any addition or betterment made to a mobilehome park which consists of more than mere repair or replacement of existing facilities or improvements, which must primarily benefit the homeowner rather than the owner, and which has a life expectancy of five (5) or more years. CPI -W shall mean the Consumer Price Index for Wage Earners in the Los Angeles -Long Beach -Anaheim area published by the United States Bureau of Labor Statistics. DEPARTMENT shall mean the Department of Community Development of the City of Azusa. - HOMEOWNER shall mean a person who has a tenancy in a mobilehome park or an agent or representatives authorized to act on said homeowners' behalf. MOBILEHOME shall mean a mobilehome as defined in the Mobilehome Residency Law as per California Civil Code Section 798.3. MOBILEHOME PARK shall mean any area of land within the City of Azusa where two (2) or more mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes used for human habitation. MOBILEHOME SPACE shall mean the site within a mobilehome park intended, designed, or used for the location or accommodation of a mobilehome and any accessory structures or appurtenances attached thereto or used in conjunction therewith. 1771.1 12/16/91 11:00 e.m- —2— 0 0 NOTICE shall mean written notice sent to the intended recipient through the U.S. Mail, First Class. OWNER shall mean the owner or operator of a mobilehome park or an agent or representatives authorized to act on said owner's or operator's behalf in connection with the maintenance or operation of such park. PASS-THROUGH shall mean charges to the homeowner by the owner which are in addition to the basic space rent except for metered utilities. REHABILITATION WORK shall mean any renovation or repair work completed on or in a mobilehome park which was performed in order to comply with the direction or order of a public agency, or to repair damage resulting from fire, earthquake, or other casualty. RENT shall mean the consideration paid for the use or occupancy of a mobilehome space. RENT ADJUSTMENT shall mean rent increase or rent decrease as determined by the Rental Review Board. RENTAL AGREEMENT shall mean a written agreement, for two (2) months or longer, between the owner and the homeowner establishing the terms and conditions of a park tenancy. A lease is a rental agreement. RENT INCREASE shall mean an increase in basic space rent, pass-throughs, separate assessments or other charges, excluding a lawful utility charge increase. RENT DECREASE shall mean a decrease in basic space rent, pass-throughs, separate assessments or other charges, excluding a lawful utility charge decrease. TENANCY shall mean the right to use or occupy a mobilehome space. TENANT shall mean a person who has a tenancy in a mobilehome park. 5.56.030 THE MOBILE HOME PARK RENTAL REVIEW BOARD. (a) The Mobilehome Park Rental Review Board is hereby established and shall consist of five (5) members and six (6) alternates. In order to provide varied and balanced backgrounds and experience, two (2) members and two (2) alternates shall be homeowners within Azusa mobilehome parks; two (2) members and two 1771.1 12/16/91 I L00 a_m. —3— (2) alternates shall be owners of Azusa mobilehome parks; one (1) member and two (2) alternates shall be "public members" who are neither homeowners or owners. No attorney shall serve on the Board or be present to represent either side. (b) An alternate shall serve on the Board in the absence of a member of the Board. If more than one (1) member shall be absent, as many alternates as are available shall serve as needed to replace absent members so that hearings shall be conducted by a full Board of five (5). Alternates shall be called first by same background, then by rotation for service on the Board. (c) Park owners shall appoint their members and alternates; homeowners, through their park association or resident representatives, shall appoint their members and alternates. Said members and alternates shall be approved by a majority vote of the City Council for a one (1) year term and until a successor is appointed. The "public member" and alternates shall be mutually agreed upon by the existing members of the Board and approved by a majority vote of the City Council. Any member or alternate may be removed, with or without cause, by a majority vote of the Board. Should a vacancy exist, an appointment shall be made by a majority vote of the Board and approved by a majority vote of the City Council for the unexpired portion of the term. The compensation of Board members shall be determined by the City Council. (d) If a member of the Board is absent from three (3) successive regular meetings without being excused by the Board, or is absent for any reason for more than six (6) regular meetings in any twelve (12) month period, the office of such member may be vacated and the Board Chair shall immediately notify the Department, who shall notify the City Council that said office is vacant. Upon such notification, a successor for the remainder of the term of such member shall be appointed by the Board effective upon ratification by the City Council. (e) The Board shall establish the time of any hearings or meetings held pursuant to this Chapter, and such hearings or meetings shall be held in the City Hall or any other place stated by the City Council as often as the Board determines to be necessary to discharge its duties hereunder. (f) The Board shall elect one (1) of its members as chairperson and said election shall be held as soon as practicable after each new term commences. Five (5) members shall constitute a quorum for the purpose of conducting a hearing or meeting. Decisions of the Board shall be made by a majority vote of the members present. (g) The duties and responsibilities of the Board shall include, but not be limited to, the following: 1771.1 12/16/91 11:00 a.m. —4— (1) The Board shall create its own regulations by majority vote to carry out the provisions of this Chapter 5.56. (2) The Board shall make any recommendations it deems appropriate to the City Council regarding the implementation and enforcement of the provisions of this Chapter. (3) The Board shall hear all rent adjustment applications and determine whether to approve or disapprove a rent increase or decrease in the manner provided by Sections 5.56.070 and 5.56.080. 5.56.040 EXISTING AND EXEMPT LEASES. (a) Notwithstanding any provision of this Chapter 5.56, rents agreed to under a written lease agreement in existence on December 1, 1991, may be collected until the expiration of the lease agreement. (b) Notwithstanding any provision of this Chapter 5.56, rents agreed to under a lease agreement exempt from local ordinance pursuant to California Civil Code Section 798.17 may be collected until the expiration of such lease agreement. 5.56.050 BASE RENT (a) The initial base rent per month for each space within the Azusa Mobilehome Park shall be two -hundred fifteen dollars ($215). The initial base rent per month for each space within the Sylvan Villa Mobilehome Park shall be five dollars ($5) less than the rent in effect for that space on December 1, 1991. The initial base rent per month for each space within the remaining parks covered by this Chapter shall be the rent in effect for that space on December 1, 1990, excluding pass-throughs, utilities and/or separate assessments, subject to increases equal to a proportionate share to each mobilehome space of an increase in a special City tax, benefit assessment, or service charge, between December 1, 1990, and the effective date of this Chapter. (b) Any mobilehome space that has a rent of one hundred fifty dollars ($150) or less at the effective date of this Chapter shall not be subject to this Section 5.56.050. The base rent for these spaces shall be the rent charged at the effective date of this Chapter. (c) No owner shall demand or accept or retain rent for any space exceeding the initial base rent unless an increase has been authorized under Sections 5.56.063, 5.56.067, 5.56.070 or Section 5.56.085. 1771.1 12!16!91 11:00 a.m. — 5 — (d) For those spaces covered by an existing exempt written lease agreement pursuant to Section 5.56.040, the base rent shall be the actual monthly rent for the last month of the lease agreement prior to expiration. 5.56.060 SPACE RENT AGREEMENTS. (a) Any mobile home park which provides a rental agreement meeting the criteria set forth in this section 5.56.060 shall be exempt from the provisions of this ordinance for the duration of such agreement. (b) The exemption provided in subsection (a) herein shall be effective only if the space rental agreement meets all of the following criteria: (1) The agreement must establish a space rental agreement for a minimum of two (2) years from the effective date of the agreement. (2) The agreement shall be a formal agreement with a written space rent schedule or formula binding upon both the park owner and resident for its duration. (3) The agreement must be voluntarily consented to by the residents of at least seventy-five percent (75%) of the mobile home spaces within the park. This consent shall be evidenced by the signature of at least one resident from the requisite number of spaces. (c) This exemption shall terminate upon the expiration of the space rental agreement unless such agreement is renewed or extended by mutual agreement of the park owner and seventy-five percent (75%) of the residents. Consent to any such renewal or extension of a space rental agreement must meet the criteria set forth in subsection (b) of this section. Upon termination of this exemption, the mobile home park shall comply with this ordinance. The monthly rent charged for the last month of the space rental agreement shall be the new base rent for the purposes of any future adjustment in rent. (d) Homeowners shall have the right to a thirty (30) day review or rejection of any offered written rental agreements or leases. They shall have the right to rescind their signatures on said document within three (3) days of signing. Park management must obtain an Acknowledgment from the homeowner, in writing, stating that they have in fact been advised of these rights. Management's failure to obtain written Acknowledgment from the homeowner may void the lease or rental agreement at the homeowner's option. 1771.1 12116191 11:00 a.m. —6— 0 0 (e) Prior to, or at the time of agreeing to rent a space to a new homeowner in a mobilehome park, the owner shall provide each new homeowner or prospective homeowner with a copy of the Azusa Mobilehome Park Rent Stabilization Ordinance, as currently in force. (f) No owner may require, directly or indirectly, that any homeowner or prospective homeowner sign a lease or rental agreement with a term in excess of twelve (12) months or that provides that it shall be exempt from local rent stabilization or provides for space rent in excess of that permitted by this Chapter 5.56 as a condition of tenancy in the park, and no owner may deny a tenancy to a prospective purchaser of a mobilehome in the park on the ground that the prospective purchaser will not sign such a lease or rental agreement. 5.56.063 PERMITTED RENT INCREASES WITHOUT MEDIATION, BOARD APPROVAL, OR ARBITRATION. (a) An owner may increase the rent for one or more mobilehome spaces, upon written notice to each affected tenant and the filing of a statement with the City showing that the increase meets all of the following conditions: (1) There have been no rent increases for the subject spaces for the past twelve (12) months. (2) There has been no decrease in services to the tenants, except for decreases permitted by Section 5.56.100 of this Chapter; and (3) The proposed rent increase is no greater than the sum of (A) and (B): (A) The increase in the United States Department of Labor Consumer Price Index for Wage Earners (CPI -W) for the twelve (12) month period ending ninety (90) calendar days prior to the date of receipt of the statement by the City, not to exceed seven percent (7%), or ten dollars ($10) whichever is greater. (B) Each space's proportionate share of: (i) An increase due under a valid, existing land lease, binding upon the owner and tenant, in existence on December 1, 1991; and/or (ii) An increase in a City special tax, benefit assessment, or a service charge. 1771.1 12/16/91 11:00 a.m. —7— 0 0 (4) The rent increase for each affected tenant shall go into effect on the anniversary date of the space as established by the respective park. (b) An owner may increase the rent for one or more mobilehome spaces in excess of the increase permitted in subsection (a)(3) of this section upon written notice to each affected tenant and the filing of a statement with the City showing that fifty-one percent (51%) or more of the affected spaces approve the rent increase. One vote shall be allowed per affected space. (c) An owner may pass through the cost of a capital improvement upon written notice to each affected tenant and the filing of a statement with the City showing approval of an itemized estimate by fifty-one percent (51%) or more of the affected spaces. One vote shall be allowed per affected space. 5.56.067 PERMITTED RENT INCREASES BASED UPON MEDIATION. (a) In the event a proposed rent increase for one (1) or more spaces does not meet the criteria set forth in Section 5.56.063 of this Chapter, an owner may mail a notice to the affected tenants and to the Department requesting mediation. Said notice shall include the amount of the proposed increase and a brief statement of the basis for the proposed increase. (b) Upon notification by an owner, a five (5) member park mediation committee shall be formed to meet and endeavor to negotiate a mutually satisfactory rent increase. (c) The park mediation committee shall be composed of two (2) representatives designated by the owner and two (2) representatives selected by the tenants affected by the proposed rent increase. All four (4) such members shall be selected within ten (10) days of notification. The fifth member of the park mediation committee shall be a mediator appointed by the unanimous vote of the other four (4) members. In the event the four (4) members selected by the owner and tenants cannot agree on the fifth member within twenty (20) days of the notification, the City Attorney shall name a professional mediator as the fifth member. Any fees payable to the mediator shall be borne equally by the owner and the affected tenants. (d) The park mediation committee shall establish procedures for the conduct of its affairs not otherwise in conflict with the provisions of this Chapter 5.56. A majority vote shall be required to take or effect any action. (e) If the park mediation committee negotiates a proposed increase, written notice thereof shall be given to all affected tenants of the park and the park owner. Within ten (10) 1771.1 12/16/91 11:00..m. -8- 0 0 days of such notice, the affected tenants shall take a secret ballot, with one vote per space. (f) If at least sixty-seven percent (67%) of the affected mobilehome spaces of the park consent to the increase, and the owner consents to the increase, then it shall be deemed approved and effective and shall be noticed to all affected tenants and the owner. If fewer than sixty-seven (67%) of the affected mobilehome spaces of the park consent to the increase, then it shall be deemed disapproved. (g) If the increase is disapproved as provided under this section, the owner may then file with the Department an application for approval by the Board pursuant to Section 5.56.070. 5.56.070 PERMITTED RENT INCREASES BASED UPON AN APPLICATION APPROVED BY THE BOARD. (a) An owner may file with the Department a rent increase application for one or more mobilehome spaces for approval by the Board. (b) An application for a rent increase pursuant to this Section shall be filed upon a form prescribed by the Department and shall be accompanied by the payment of a fee per affected space equal to the actual cost of processing the application. Said fee shall not be "passed through" to the homeowner. Said application shall specify the address of the mobilehome park, the space number or numbers for which rent is requested to be increased, the amount of the requested rent increase, and the facts supporting the requested increase. The applicant shall produce at the request of the Department any records, receipts, reports, or other documents that the Department may deem necessary for the Board to make a determination whether to approve or disapprove a rent increase. The application shall be made under penalty of perjury and supporting documents shall be certified or verified as requested by the Department. (c) Upon receipt of a rent increase application, the Department shall mail a notice in Spanish and English to the affected homeowners at the mobilehome spaces designated in the application, informing them of the receipt of such application, the amount of the requested rent increase, a brief summary of the owner's justification for the request, any supporting documents which may be inspected at the City Hall, the homeowner's right to submit written statements, photographs or other documents relating to the application within thirty (30) days after the date the notice is mailed, and the address where such statements or documents may be mailed or delivered. 1771.1 12/16/91 11:00 a.m. —9 u r] (d) The Department shall determine within thirty (30) days after receipt of a rent increase application whether said application is complete. If the Department determines that an application is not complete, it shall notify the applicant in writing as to what additional information is required. (e) A copy of each rent increase application shall be provided to each member of the Board after such application is determined to be complete. The Board shall hold a hearing on said application within sixty (60) days after such determination is made except as provided in subsection (j). Notice in Spanish and English of the time, date, and place of the hearing shall be mailed to the applicant and the affected homeowners at the mobilehome spaces designated in the application at least ten (10) days prior to the hearing. (f) At the hearing, the applicant and the affected homeowners may offer any testimony that is relevant to the requested rent increase. The applicant and the affected homeowners may offer documents, written declarations, or other written evidence for the first time at the hearing only if good cause is shown why such evidence was not filed with the Department prior to the hearing. Formal rules of evidence shall not be applicable to such proceedings. Except as provided in subsection (j), within fifteen (15) days after the close of the hearing, the Board shall make its determination, pursuant to the standards established by subsection (g) of this Section, approving or disapproving a rent increase for the mobilehome space or spaces specified in the rent increase application. (g) The Board shall approve such rent increase as it determines to be just, fair and reasonable. The Board shall consider the following factors, in addition to any other factors it considers relevant, in making such determination: (1) Changes in the Consumer Price Index for Wage Earners (CPI -W) in the Los Angeles -Long Beach -Anaheim area publish- ed by the United States Bureau of Labor Statistics. (2) The rent lawfully charged for comparable mobilehome spaces in the City of Azusa. (3) The length of time since either the last hearing and final determination by the Board on a rent increase application or the last rent increase if no previous rent increase application has been made. (4) The completion of any capital improvements or rehabilitation work related to the mobilehome space or spaces specified in the rent increase application, and the cost thereof, including such items of cost, including materials, labor, 1771.1 12/16/91 11:00 a.m. —10— 0 0 construction, interest, permit fees and other items as the Board deems appropriate. (5) Changes in property taxes in excess of the two percent (2%) annual increase or other taxes related to the subject mobilehome park. (6) Changes in reasonable operating and maintenance expenses. (7) The need for repairs caused by circumstances other than ordinary wear and tear. (8) The amount and/or quality of services provided by the applicant to the affected homeowner. (9) Any and all other factors that the Board may deem relevant. (h) The Board may provide that a separate assessment be granted by the Board and be limited to the length of time necessary to allow the park owner to reasonably amortize the cost of a capital improvement, including interest. Such separate assessment granted as a result of the capital improvement shall not continue beyond the time necessary for reasonable amortization of the cost of such improvement. (i) Notice in Spanish and English of the Board's determination shall be mailed to the applicant and all affected homeowners at the mobilehome spaces designated in the application. The determination of the Board may be appealed to an Arbitrator as set forth in Section 5.56.085. (j) In the event that the Board is unable to act and make its final determination on a completed rent increase application within the time limitations prescribed by subsections (d) -(f) of this Section, and after the thirty (30) days for the homeowner to file statements or documents in opposition to the application under subsection (c) shall have expired, the Board may approve such interim rent increase for the mobilehome space or spaces specified in said application which clearly appears to be warranted when the factors set forth in subsection (g) of this Section are considered, based upon the facts stated in the application, any written statements or documents filed with the Department by the affected homeowners, and any other facts known to the Board. An approved interim rent increase shall expire on either: (1) The last day of the month within which the Board makes its final determination disapproving a rent increase, or; 1771.1 12116/91 11:00 a.m. -11- 0 0 (2) The effective date of a rent increase which is approved by a final determination of the Board. (k) The time within which the Board 'may conduct a hearing as provided in subsection (e) or make its determination as provided in subsection (f) may be extended twice by the Board for periods of time not to exceed sixty (60) days each if the Board approves an interim rent increase pursuant to subsection (j). 5.56.080 PERMITTED RENT DECREASES BASED UPON AN APPLICATION APPROVED BY THE BOARD. (a) Homeowner(s) may file with the Department a rent decrease application for one or more mobilehome spaces for approval by the Board. (b) An application for a rent decrease pursuant to this Section shall be filed upon a form prescribed by the Department and shall be accompanied by the payment of a fee per affected space equal to the actual cost of processing the application. Said application shall specify the address of the mobilehome park, the space number or numbers for which rent is requested to be decreased, the amount of the requested rent decrease, and the facts supporting the requested decrease. The applicant(s) and/or owner(s) shall produce at the request of the Department any records,receipts, reports, or other documents that the Department may deem necessary for the Board to make a determination whether to approve or disapprove a rent decrease. The application shall be made under penalty of perjury and supporting documents shall be certified or verified as requested by the Department. (c) Upon receipt of a rent decrease application, the Department shall mail a notice to the affected owner(s) informing them of the receipt of such application, the amount of the requested rent decrease, a brief summary of the homeowner's justification for the request, any supporting documents which may be inspected at the City Hall, the owner's right to submit written statements, photographs or other documents relating to the application within thirty (30) days after the date the notice is mailed, and the address where such statements or documents may be mailed or delivered. (d) The Department shall determine within thirty (30) days after receipt of a rent decrease application whether said application is complete. If the Department determines that an application is not complete, it shall notify the applicant(s) in writing as to what additional information is required. (e) A copy of each rent decrease application shall be provided to each member of the Board after such application is determined to be complete. The Board shall hold a hearing on said 1771.1 12/16/91 11:00 e.m. —12— 0 application within sixty (60) days after such determination is made except as provided in subsection (i). Notice of the time, date, and place of the hearing shall be mailed to the applicant(s) and the affected owner(s) at least ten (10) days prior to the hearing. (f) At the hearing, the applicant(s) and the affected owner(s) may offer any testimony that is relevant to the requested rent decrease. The applicant(s) and the affected owner(s) may offer documents, written declarations, or other written evidence for the first time at the hearing only if good cause is shown why such evidence was not filed with the Department prior to the hearing. Formal rules of evidence shall not be applicable to such proceedings. Except as provided in subsection (i), within fifteen (15) days after the close of the hearing, the Board shall make its determination, pursuant to the standards established by subsection (g) of this Section, approving or disapproving a rent decrease for the mobilehome space or spaces specified in the rent decrease application. (g) The Board shall approve such rent decrease as it determines to be just, fair and reasonable. The Board shall consider the following factors, in addition to any other factors it considers relevant, in making such determination: (1) A decrease in the amount and/or quality of services provided by the owner to the affected homeowner(s). (2) A loss or decrease of common areas and/or common area facilities and/or amenities. (3 ) A loss or decrease in maintenance of common areas and/or common area facilities. (4) The rent lawfully charged for comparable mobilehome spaces in the City of Azusa. (5) The failure of any capital improvements or rehabilitation work related to the mobilehome space or spaces specified in the rent decrease application. (6) Changes in property taxes or other taxes related to the subject mobilehome park. (7) Changes in the rent paid by the owner for the lease of the land on which the subject mobilehome park is located. (8) Changes in reasonable operating and maintenance expenses. (9) Any existing written lease unlawfully entered into between the applicant and the affected owner. 1771.1 12/16/91 11:00 a.m. —13— (10) Changes in the Consumer Price Index for Wage Earners (CPI -W) in the Los Angeles -Long Beach -Anaheim area publish- ed in the United States Bureau of Labor Statistics. (11) Any and all other factors that the Board may deem relevant. (h) Notice of the Board's determination shall be mailed to the applicant(s) and the affected owner(s). The determination of the Board may be appealed to an Arbitrator as set forth in Section 5.56.085. (i) In the event that the Board is unable to act and make its final determination on a application within the time limitations (d) -(f) of this Section, and after the owner(s) to file statements or docume application under subsection (c) shall h approve such interim rent decrease for spaces specified in said application wh warranted when the factors set forth i Section are considered, based upon t application, any written statements or Department by the affected owner(s), an the Board. An approved interim rent either: completed rent decrease prescribed by subsections thirty (30) days for the nts in opposition to the ave expired, the Board may the mobilehome space or ich clearly appears to be n subsection (g) of this he facts stated in the documents filed with the d any other facts known to decrease shall expire on (1) The last day of the month within which the Board makes its final determination disapproving a rent decrease, or; (2) The effective date of a rent decrease which is approved by a final determination of the Board. (j) The time within which the Board may conduct a hearing as provided in subsection (e) or make its determination as provided in subsection (f) may be extended twice by the Board for periods of time not to exceed sixty (60) days each if the Board approves an interim rent increase pursuant to subsection (i). 5.56.085 PERMITTED INCREASES OR DECREASES BASED UPON ARBITRATION. (a) An owner or tenant may file with the Department an application for arbitration on the applicable mobile home spaces within twenty (20) days following any instance of the denial of the proposed rent decrease under Section 5.56.080(g) or increase under Section 5.56.070(g). (b) An application for arbitration pursuant to this section shall be made under penalty of perjury and shall be filed upon a form prescribed by the Department accompanied by the payment 1771.1 12/16/91 11:00 a.m. -14- 0 0 of a fee established by resolution of the City Council. The applicant for arbitration, whether owner or tenant, shall pay the fee established by the City Council, and said fee shall not be made a pass-through to the tenants. The arbitration application shall specify the address of the mobile home park, the space numbers for which rent is requested to be increased, the amount of the requested rent increase, and the facts supporting the request. The City shall select an independent arbitrator who is a member of the American Arbitration Association. (c) The arbitrator shall determine within sixty (60) days after receipt of an application whether said application is complete. If the arbitrator determines that an application is not complete, the arbitrator shall notify the applicant in writing as to what additional information is required. (d) Upon a determination that the application is complete, the Arbitrator shall mail a notice to the owner and the affected tenants at the mobile home spaces designated in the application. The notice shall include the amount of the requested rent adjustment, a brief summary of the owner's justification for the request, notice that any supporting documents may be inspected at City Hall, notice of the right of the affected tenant or owner to submit written statements, photographs or documents relating to the application within thirty (30) days after the date the notice is mailed, and the address where such statements, photographs, or documents may be mailed or delivered. All written statements submitted by a tenant or owner for consideration by the arbitrator shall be signed and submitted under penalty of perjury. (e) The applicant shall produce, at the request of the arbitrator, any records, receipts, or other documents that the arbitrator may deem necessary. (f) The arbitrator shall hold a hearing on the appli- cation within sixty (60) days after such application is deemed complete. Notice of the time, date, and place of the hearing shall be sent to all of the parties at least ten (10) days prior to the hearing. (g) At the hearing, any party may offer any testimony that is deemed relevant by the arbitrator to the requested rent adjustment. The applicant shall produce any records, receipts, or other documents that the arbitrator may deem necessary to approve a rent adjustment. A party may offer documents, written declara- tions, or other written evidence for the first time at the hearing only if good cause is shown why such evidence was not filed prior to the hearing. Formal rules of evidence shall not be applicable to such proceedings. Within fifteen (15) days after the close of the hearing, the arbitrator shall make his/her determination pursuant 1771.1 12/16/91 11:00 a.m. —15— 0 0 to the standards established by subsection (g) of this section, approving or disapproving the requested rent adjustment. (h) The arbitrator shall approve the requested rent adjustment as he/she determines to be just, fair, and reasonable. The arbitrator shall consider, but not be limited to, the factors available to the Board under Sections 5.56.070(g) and 5.56.080(g). (i) The Arbitrator may provide that an adjustment in rent or a portion of an adjustment be in the form of a separate assessment and be limited to the length of time necessary to allow the park owner to reasonably amortize the cost of a capital improvement, including interest. Such adjustment granted as a result of the capital improvement shall not continue beyond the time necessary for reasonable amortization of the cost of such improvement. (j) Notice of the arbitrator's determination shall be mailed to the owner and the affected tenants. The determination of the arbitrator shall be final. (k) If the arbitrator is unable to act and make his/her final determination on a completed application within seventy-five (75) calendar days after the application is deemed complete, the arbitrator may approve such interim rent increase or decrease for the mobile home space or spaces specified in said application as clearly appears warranted when the factors set forth in subsection (h) of this section are considered, based upon the facts stated in the application, any written statements or documents filed with the arbitrator by the affected tenants, and any other facts known to the arbitrator. An approved interim rent increase or decrease shall expire on either: (1) the last day of the month within which the arbitrator makes his/her final determination disapproving a rent increase or decrease; or (2) the effective date of a rent increase or decrease which is approved by a final determination of the arbitrator. (1) The time within which the arbitrator may conduct a hearing or make his/her determination may be extended twice by the arbitrator for periods of time not to exceed sixty (60) days each if the arbitrator considers and, if grounds exist, grants an interim rent increase or decrease pursuant to subsection (k) of this section. 5.56.090 VACANCIES. (a) When a mobilehome space becomes vacant or the ownership of a mobilehome is transferred, no rent increases other than those approved after a hearing by the Board may be demanded, accepted or retained by the owner. The rent charged to a prospective resident purchasing a mobilehome in a park shall be the 1771.1 12/16/91 11:00 a.m. —16— 0 0 same as the rent permitted under this Chapter 5.56 and charged to the selling homeowner. Regulation of rent charged to purchasers of mobilehomes is necessary to protect the investment of existing residents in their mobilehomes and their ability to sell their homes. (b) The provisions of this Section 5.56.090(a) are suspended until such time as the City Council adopts an ordinance terminating this suspension. During the period of suspension, the owner may adjust the monthly rent without regard to this chapter 5.56 upon a vacancy or change of ownership of a mobilehome. For purposes of this section, a vacancy or change of ownership shall not include: (1) Transfers to a conservator of the person and/or the estate of a tenant and/or the individual heir of a tenant; (2) Transfers which take effect upon the death of a spouse; (3) Transfers to a spouse or former spouse in connection with a property settlement agreement or decree of dissolution of marriage or legal separation; or (4) The creation, transfer or termination solely between spouses of interests in the mobilehome space. 5.56.100 TERMINATION OF SERVICES. (a) No mobilehome park owner shall reduce or eliminate any service to any mobilehome space so long as this Chapter is in effect, unless and until a proportionate share of the cost savings resulting from such reduction or elimination is passed on to the homeowner in the form of a decrease in space rent. If a mobilehome park owner who provides utility services reduces or eliminates such service by separate metering or other lawful means of transferring to the resident the obligation for payment for such services, the cost savings shall be deemed to be the cost of such transferred utility service for the twelve (12) months prior to the installation and use of the submetering system. (b) The cost of installation of separate utility meters, or similar costs to the owner which allow a shift in obligation for payment of utility costs to the homeowner may not be passed to the homeowner. Nothing stated herein shall be construed to prohibit or prevent the recovery of such costs by an application for rental increase as provided in this Chapter 5.56. 5.56.110 FEES. A tenant whose tenancy is not regulated by the provisions of the Mobilehome Residency Law shall not be charged a fee by the Owner for anything other than rent or utilities with the 1771.1 12!16191 11:00 a.m. —17— exception of incidental reasonable charges for services actually rendered. 5.56.120 PERMISSIBLE REASONS FOR TERMINATING OR REFUSING TO RENEW A TENANCY. (a) A tenancy which is not subject to the provisions of the Mobilehome Residency Law shall not be terminated nor shall its renewal be refused, except for one or more of the following reasons: (1) Failure of the tenant to comply with a local ordinance or State Law or regulation relating to mobilehomes within a reasonable time after the tenant receives a notice of noncompliance from the appropriate governmental agency. (2) Conduct by the tenant, upon the mobilehome park premises, which constitutes a substantial annoyance to other tenants. (3) Failure of the tenant to comply with a reasonable rule or regulation of the mobilehome park. No actor omission of the tenant shall constitute such a failure to comply unless and until the owner has given the tenant written notice of the alleged rule or regulation violation and the tenant has failed to adhere to the rule or regulation within seven (7) days. (4) Nonpayment of rent, utility charges, or reasonable incidental service charges. (5) Condemnation of the mobilehome park. (6) Change of use of the mobilehome park, provided the owner: (i) gives the tenant written notice of the proposed change twelve (12) months or more before the date of the proposed change. (ii) gives each proposed tenant whose tenancy will commence within twelve (12) months of the proposed change, written notice thereof prior to the inception of his tenancy. (b) Notice of termination or refusal to renew must be given in writing in the manner prescribed by Section 1162 of the Code of Civil Procedure at least sixty (60) days prior to the termination date of the tenancy. Said notice shall state the date the tenancy terminates, the reason for the termination or refusal to renew, and the specific facts upon which the owner is relying. 5.56.130 REFUSAL OF HOMEOWNER TO PAY ILLEGAL RENT. A home -owner may refuse to pay any rent in excess of the maximum rent permitted 1771.1 12116/91 11:00 a.m. —18— 0 6 by this Chapter. The fact that such unpaid rent is in excess of the maximum rent shall be a defense in any action brought to recover possession of a mobilehome space for nonpayment of rent or to collect the illegal rent. 5.56.140 PROHIBITED ACTS. (a) It shall be unlawful for any park owner, manager, employee, agent or representative to take or cause to be taken any retaliatory action against any park resident as a result of the resident exercising any right conferred upon such resident by this Ordinance or by any rule or order issued by the Board pursuant thereto. Retaliatory action shall include any action or proceeding to recover possession of a rental space; action which would increase space rentals or service fees, decreased services, increase the obligation of the resident or constitute undue or unusual inconvenience, violate the privacy of the resident, harass the resident, or otherwise discriminate against the resident; and any refusal to honor an existing rental agreement or lease or any provision thereof; and any other form of threat, coercion, or intimidation. (b) It shall be unlawful for any person to fail to comply with any order of the Board. 5.56.150 REMEDIES. (a) Any person who demands, accepts or retains any payment of rent in violation of the provisions of this Chapter shall be liable in a civil action to the person from whom such payment is demanded, accepted or retained for damages in the sum of three (3) times the amount by which the payment or payments demanded, accepted, or retained exceed the maximum rent which could be lawfully demanded, accepted, or retained together with reasonable attorneys' fees and costs as determined by the court. (b) Any person violating any of the provision of this Chapter shall be guilty of a misdemeanor and shall be punishable in the manner provided by the Azusa Municipal Code. 5.56.160 SEVERABILITY. If any Section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. 5.56.170 CITY COUNCIL REVIEW OF THIS CHAPTER. (a) The City Council shall review the provisions of this Chapter six (6) months after the date of adoption thereof, in order to consider the following: 1771.1 12/16/91 11:00 a.m. —19— (1) Whether mobilehome park rent stabilization continues to be necessary to protect the public health, safety, and welfare; (2) Whether the implementation of the provisions of this Chapter have been adequate; and (3) Whether the provisions of this Chapter should be amended to provide more effective regulation or to avoid unnecessary hardship. (b) In January of each year, beginning in January 1993, the City Council shall hold a public hearing to consider the operation of this Chapter during the preceding year and oral and written comments of the public. The purpose of such public hearing is to determine what revisions, if any, to this Chapter may be appropriate. SECTION 4. The City Clerk shall certify to the passage and adoption of this ordinance and shall cause the same to be published as prescribed by law. APPROVED AND ADOPTED this 6th. day of January , 1992. ATTEST: .� MayorPro-m of the City of Azusa 1771.1 12/16/91 11:00 a.m. —20— STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF AZUSA ) I, Adolph Solis, City Clerk of the City of Azusa, do hereby certify that the foregoing Ordinance No. 92-04 was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 16th. day of December, 1991. That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 6th. day of January, 1992, by the following vote, ` to wit: AYES: COUNCILMEMBERS: STEMRICH, NARANJO, MOSES NOES: COUNCILMEMBERS: DANGLEIS ABSENT: COUNCILMEMBERS: ALEXANDER ABSTAIN: COUNCILMEMBERS: NONE - 21 - 0 ORDINANCE NO,`9'2=:04 u AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING THE AZUSA MUNICIPAL CODEAT SECTION 5.12.070 AND ADDING, CHAPTER 5.56 RELATING TO MOBILEHOME PARK RENT STABILIZATION (The following is a summary of the Ordinance. The Ordinance, in its entiretv, is on file in the Office of the City Clerk, and is available for public sxxmkixx during normal working ours) inspection THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The Azusa Municinal Code is hereby amended at Section 5.12.070 MOBILHOME PARKS........ SECTION 2. The Azusa Municipal Code is hereby_ amended to add Chanter 5.56 to Title 5 CHAPTER 5.56 MOBILEHOME PARK RENT STABILIZATION 5.56.010. PURPOSE. 5.56.020 DEFINITIONS. 5.56.030 THE MOBILE HOME PARK RENTAL REVIEW BOARD. 5.56.040 EXISTING AND EXEMPT LEASES. 5.56.050 BASE RENT 5.56.060 SPACE RENT AGREEMENTS. 5.56.063 PERMITTED RENT INCREASES WITHOUT MEDIATION, BOARD APPROVAL, OR ARBITRATION. 5.56.067 PERMITTED RENT INCREASES BASED IJPON MEDIATION. 5.56.070 PERMITTED RENT INCREASES BASED UPON AN APPLICATION APPROVED BY THE BOARD. 5.56.080 PERMITTED RENT DECREASES BASED UPON AN APPLICA- 5.56.085 PERMITTED INCREASES OR DECREASES BASED UPON ARBITRATION. 5.56.090 VACANCIES. 5.56.100 TERMINATION OF SERVICES. 5.56.110 FEES. 5.56.120 PERMISSIBLE REASONS FOR TERMINATING OR REFUSING TO -RENEW 5.56.130 REFUSAL OF HOMEOWNER TO PAY ILLEGAL RENT. 5.56.140 PROHIBITED ACTS. 5.56.150 REMEDIES. 5.56.160 SEVERABILITY. 5.56.170 CITY COUNCIL REVIEW OF THIS CHAPTER. SECTION 4. The City Clerk shall certify to the passage and adoptioof this ordinance and shall cause the same to be published as prescribed by law. APPROVED AND ADOPTED THIS 6th. day of January 1992. /s/HARRY L. STEMRICH Mavor Pro -Tem of the City of Azusa ATTEST: /s/ADOLPH A. SOLIS