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HomeMy WebLinkAboutAgenda Packet - November 18, 1991- CC IIRMIGIG ® OF AZUSA 7a PUBLIC WORKS DEPAR7M&V7 INFORMATIONAL TO: HENRY GARCIA, CITY ADMINISTRATOR lip FROM: LOUIE H. PEDROZA JR. , SUPERINTENDENT OF PUBLIC WORKS DATE: NOVEMBER 18, 1991 SUBJECT: PLANTING OF FICUS NITIDA TREES (INDIAN LAUREL) ON FOOTHILL BLVD. AND ALOSTA BLVD. In developing C.I.P. Projects, communication and ideas between departments combine forces and resources to benefit many factors throughout our City. The Public Works and Redevelopment Departments have hoped to improve and beautify the appearance of our main blvds. with the designated parkway tree. This project includes removal of all non-conforming parkway trees and filling in all voids. The purpose is to create uniformity throughout the area. Azusa Ave. will follow later in the fiscal year pending Caltrans approval. This project had originally been scheduled to begin earlier however, due to a citizen opposing the project based on our choice of tree, we delayed the starting date. At this point, we have again scheduled the project to begin on November 19, 1991. LHPJ/rgg 6rup /* (.7 &ft--"-/)-)1 ■■ 213 East Foothill Blvd., P.O.Box 1395,Azusa,California 91702-1395 (818) 334-5125 AGENDA ITEM OF AZUSA 71e& e.] 021.1i TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: ROY E. BRUCKNER, DIRECTOR OF COMMUNITY DEVELOPMENT VIA: HENRY GARCIA, CITY ADMINISTRATOR DATE: NOVEMBER 18, 1991 SUBJECT: MOBILE HOME RENT STABILIZATION ORDINANCE BACKGROUND At the September 24th workshop on mobilehome rent stabilization, the City Council considered and discussed the draft ordinance prepared by the City Attorney, which is patterned after the City of La Verne's. Following extensive discussion, the Council directed the tenants and the park owners to work towards a solution. The tenants subsequently worked very hard to develop their own version of a rent stabilization ordinance. While a joint approach between owners and tenants wasn't used, and the park owners were not involved in the drafting and development of the tenants' proposal, they did receive a copy prior to this Council meeting. Comments received from park owners is presented in Exhibit F. Some of the park owners feel that an ordinance requiring longterm leases would be a better alternative to rent control. (The Foothill Vista Mobilehome Park, for example, uses longterm leases exclusively) . Thus three options are available to the City Council at this time: 1. The City Attorney version, referred to as the La Verne ordinance. 2 . The Tenants' proposal. 3. The Owners' proposal for longterm lease requirements. A summary of these three options, highlighting the key features of each, is presented on the following page. 4190?),6t 6/ iPal, " Page 1 of 6 PAP10-1-4241-- d) " 213 East Foothill Blvd., P.O. Box 1395, Azusa, California 91702-1395 //j0 costs. Under this option, an ordinance would be prepared which would establish a master lease to be used by all mobilehome parks. Contained within such a master lease would be terms and conditions presumably acceptable to both sides. Some parks already use longterm leases successfully, such as Foothill Vista, for example. Others are now beginning to offer such leases to their tenants (Sylvan Villa and Caravan) . Exhibits D and E show 2 examples of longterm leases now in use. Exhibit D is used at Foothill Vista, while Exhibit E is used at Caravan. ANALYSIS The City Attorney has prepared a comparative analysis of the two ordinances, which is presented in Exhibit A. The basic differences between the two ordinances are as follows: 1. The Tenants' proposal would create a standing review board and is therefore based on arbitration. In other words, the Board would make the decisions on rent increases. The La Verne ordinance, on the other hand is based on mediation, where emphasis is placed on settlement and compromise between the affected parties, and ultimately the entire park. Chances for success in reaching agreement without attorney involvement would be greater under the La Verne ordinance than under the Tenants' . 2 . Whereas the La Verne ordinance would exempt from rent control any existing leases or agreements, the Tenants' proposal would exempt only rental agreements which by law are required to be exempt. Any existing agreements which do not meet the letter of the law, such as agreements in excess of 1 year in duration, would not be exempt. This may expose the City to legal challenges. The La Verne ordinance adds an exemption for rent agreements in excess of 2 years, provided that 2/3 of the tenants in the park consent to the agreement. 3 . Regarding rent increase requests, the City would not be directly involved in the administration under the La Verne ordinance. A three step mediation/arbitration process is used with limited City involvement. Thus there would be very little cost to the City. The affected tenants and owner would share any cost of mediation and arbitration. Page 4 of 6 OPTION 1 - La Verne Ordinance (Exhibit B) 1. Base rents would be established by rolling back existing rents to the levels of December 1, 1990 plus 7%. Exceptions would be: a. Spaces under a written lease agreement in existence prior to the effective date of the ordinance, until the lease expires. b. Spaces subject to leases which comply with the State Civil Code. c. Rent agreements meeting certain criteria for the duration of those agreements. 2 . A park owner may institute a rent increase if certain criteria are met. Some of the criteria include: no decrease in services to the tenants has occurred, no rent increases have occurred in the past 12 months, and the proposed increase is no greater than the lesser of 7% or the CPI. 3 . Any affected tenants who feel that the criteria have not been met, can apply for mediation. 4 . A park mediation committee would be created comprised of 2 tenant representatives, 2 owner representatives, and a fifth member, acting as mediator, selected by unanimous vote of the four. Any cost incurred for the mediator would be borne equally by the tenants and the owners. 5. Any negotiated increase must be accepted by the owner as well as a 67% majority vote of the tenants in the affected park. 6. If mediation fails, or a proposed increase does not meet the established criteria, an owner may apply for arbitration. An arbitrator would then make the final decision. 7. The City Council would review the operation of the ordinance annually in a public hearing. Option 2 - Tenants' Proposal (Exhibit C) 1. A 7-member Mobilehome Park Rent Review Board would be created which would review all rent adjustments. The Board would be comprised of 2 tenants representatives, 2 owner representatives, and 3 at-large members who are neither owners or tenants. Page 2 of 6 2 . Rents would be rolled back to December 1, 1990, to establish a base rent. 3 . Space rent agreements and existing leases meeting the requirements of the State Civil Code would be exempt from the ordinance for the duration of the lease or agreement. In order for an entire park to be exempt, 100% of the spaces would have to be under qualified leases. 4 . Any proposed rent increase request must be applied-for and reviewed by the Board in a formal hearing with proper notice to all affected entities. For the first 6 months following the effective date of this ordinance, there would not be a filing fee. Otherwise it would be $10 per affected space, which cannot be passed-through. 5. A tenant may apply to the Board for a rent decrease, using the same formal process that the owner must follow for a rent increase. Again, for the first 6 months following the effective date of the ordinance, there would not be a filing fee. 6. Any denial of a rent increase or rent decrease request may be arbitrated. An amendment to the submitted ordinance by the tenants (see Exhibit C-1) would add that the Arbitrator shall be a member of the American Arbitration Association, to ensure impartiality. 7. Rent could not be increased for any space which becomes vacant, unless approved by the Board. Due to a pending Supreme Court case regarding vacancy control, this provision would be suspended until the outcome of the case. An amendment to the ordinance by the tenants (Exhibit C-1) would add a provision that any increase of rent for a vacant space in excess of 8% be deposited into an account supervised by the City. Once the case has been decided, this amount would be given to either the tenants or the park owners, depending on who wins the case. 8 . The City Council would review the effectiveness of the ordinance after 6 months, and annually thereafter. OPTION 3 - Mandatory Longterm Leases (Exhibits D and E) Some park owners believe that longterm leases provide the same rent-increase protection to the tenants as a formal rent stabilization ordinance without the administrative and legal Page 3 of 6 By contrast, under the Tenants' proposal the City would be extensively involved in the processing of applications, mailing of notices, preparing of documents, staff reports, etc. for the Rent Review Board in much the same manner as Staff now does for the City Council. Only $10 per affected space would be collected to offset this cost, while no fees at all would be collected in the first 6 months. In order to implement the Tenants' Proposal, it is estimated that at least $100,000 should be budgeted in the first year for Staff support, operating expense, and compensation for the Board members. This would not include any city attorney time, other legal costs, or any arbitrator expense. 4 . The Tenants' proposal would allow any tenant to apply for a rent decrease, using the same process as a rent increase. Again, there would be heavy reliance on the City for implementation and administration, thereby adding to the City's cost. Allowing rent decreases would expose the City to the risk of lawsuits challenging the ordinance on grounds of unconstitutional taking without compensation. 5. Vacancy control means limiting the rent that can be charged on spaces that become vacant. There has been much case law generated by this issue. See City Attorney's Report (Exhibit A, page 5) . While the Tenants' proposal contains a provision for vacancy control, it would suspend that provision until a pending Supreme Court case is decided (Yee v. Escondido) . The Tenants' proposal also contains a provision to place any rent collected on vacant spaces in excess of 8% into a special account, to be disbursed to either the tenants or the owner depending on the outcome of Yee v. Escondido (See Amendments, Exhibit C-1) . This would be in conflict with the Azul Pacifico v. Los Angeles decision just decided by the Ninth Circuit Court. The La Verne ordinance would be in compliance with recent case law regarding vacancy control. Longterm Leases The master lease concept has some potential for being successful. The County of Los Angeles has used this Page 5 of 6 approach, but in conjunction with a Rent Review Board. While such leases may work on an individual park basis, it may be difficult to implement on a city-wide basis due to the problem of anticipating all provisions necessary to be incorporated in the master lease to cover all situations in all parks. State Law currently allows exemption from rent control any spaces that are under lease agreements in compliance with the provisions of the State Civil Code. Thus lease agreements could work hand-in-hand with either the Tenants' Proposal or the La Verne ordinance. CONCLUSION It appears that some form of rent stabilization for mobilehome parks is desired in Azusa. How this is accomplished is a key decision to be determined by the City Council. What is best for Azusa? In its determination, the Council should consider the needs of the mobilehome park tenants, the park owners, and the other residents in the City, as well as the potential costs of the rent stabilization program and the impact on other City services, the City's budget, and the potential exposure of the City to lawsuits and related costs. While Staff admires the great amount of time and effort the tenants have spent on their proposal, and have produced an impressive document, Staff believes that the La Verne ordinance, as drafted by the City Attorney, would be best suited for the entire City of Azusa, while still providing an effective form of rent stabilization. The Tenants' Proposal unfortunately creates a new City bureaucracy, is costly to the City due to legal and staff support costs, and has a number of legal flaws that could expose the City to lawsuits. RECOMMENDED ACTION If rent stabilization is desired, the City Council should conduct the public hearing and adopt the La Verne type ordinance presented as Exhibit B. Page 6 of 6 EXHIBIT A City Attorney Analysis LAW OFFICES BURKE, WILLIAMS & SORENSEN 611 WEST SIXTH STREET, SUITE 2500 MARTIN J. BURKE' DENNIS I.FLOYD LOS ANGELES, CALIFORNIA 90017 VENTURA COUNTY OFFICE JAMES T. BRADSHAW,JR* LINDA L DAUBE 2310 PONDEROSA DRIVE MARK C.ALLEN,JR. M. LOIS BOBAK (213) 236-0600 SUITE MARTIN L BURKE' ROBERT V WADDEN CAMARILLO, CALIFORNIA 93010 CARL K. NEWTON` FRANK H.WHITEHEAD,III (805) 987-3468 J. ROBERT FLANDRICK' MARYANN LINK GOODKIND TELECOPIER: (213) 236-2700 NORMAN E.GAARf TIMOTHY B. McOSKER EDWARD M. FOX' DIANA L FIELD ORANGE COUNTY OFFICE DENNIS P. BURKE' RITA J. MUNSON HARRY C.WILLIAMS 3200 BRISTOL STREET LELAND C. DOLLEY' STEVEN J. DAWSON (1912-1967) SUITE 640 THOMAS J. FEELEY. JAMES F. RIGALI ROYAL M.SORENSEN COSTA MESA, CALIFORNIA 92626 NEIL F.YEAGER* TERRY P.KAUFMANN (1914-1983) (714) 545-5559 BRIAN A. PIERIK' STEPHEN R.ONSTOT CHARLES M.CALDERON' JAIME AREVALO PETER M.THORSON. F. DANIELS CRAWFORD,ISLLIGHTCOLLE N PLAZA JERRY M. PATTERSON JOHN E.CAVANAUGH 7300 COLLEGE BOULEVARD SUITE 220 HAROLD A. BRIDGES' MARK D. HENSLEY November 13 1991 OVERLAND PARK, KANSAS 66210 CHERYL J.KANE' PETER D.TREMBLAY RAYMOND J. FUENTES. ROGER T. ITO ' (9131 339-6200 VIRGINIA R. PESOLA GILBERT A.TRUJILLO S. PAUL BRUGUERA GREGORY P. PRIAMOS B. DEREK STRAATSMA DAVID M. MCCARTHY OF COUNSEL DOUGLAS C. HOLLAND JOSEPH P. BUCHMAN DWIGHT A. NEWELL DON G. KIRCHER GREGORY T. DION MICHELE VADON-RIVERA ANTHONY P.CONDOTTI SCOTT F. FIELD AUDREY HO WRITER'S DIRECT DIAL MARY REDUS GAYLE. KAREN J.SCHULDT (2 13) 236-2832 RUFUS C.YOUNG,JR. JANET S.GARMS* KATHRYN P.PETERS° PAUL C.ANDERSON OUR FILE NO. 00024-001 LISA E. KRANITZ BRENDA L DIEDERICHS KIM E. MCNALLY 'PROFESSIONAL CORPORATION to PROFESSIONAL ASSOCIATION ADMITTED KANSAS&MISSOURI °ADMITTED KANSAS *ADMITTED IN CALIFORNIA, KANSAS&MISSOURI Honorable Mayor and Members of the City Council City of Azusa 213 East Foothill Boulevard Azusa, California 91702-1395 Re: C.H.A.M.P. Mobile Home Rent Stabilization Ordinance HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL: This letter is in response to the request of Roy Buckner that the City Attorney's office provide an analysis of the Mobile Home Rent Stabilization Ordinance provided by the Committee Helping Azusa's Mobile Home Parks ("C.H.A.M.P. ") . Attached please find the draft ordinance submitted by C.H.A.M.P. This office has made two substantive changes to this ordinance, following a discussion with C.H.A.M.P. and City staff. Those modifications were to add (1) Section 5.56.085 pertaining to a right to exercise arbitration by dissatisfied tenants or owners and (2) Section 5.56. 090 suspending the vacancy control language. This office does not endorse the C.H.A.M.P. ordinance over the previous proposal drafted by this office. This is best explained by analyzing the C.H.A.M.P. ordinance and the ordinance prepared by the City Attorney's Office under our October 17, 1991 cover letter. (Because the prior ordinance was adapted from the ordinance adopted in La Verne, this letter will refer to that proposal as the "La Verne Ordinance. ") Honorable Mayor and Members of the City Council November 13, 1991 Page 2 5.56.020 - Definitions C.H.A.M.P. adds numerous definitions, namely BOARD, CPI-U, DEPARTMENT, HOMEOWNER, PASS-THROUGH, RENT ADJUSTMENT, RENTAL AGREEMENT, RENT INCREASE and RENT DECREASE. A "rental agreement" is defined as a written agreement for two months or longer. 5.56.030 - The Mobile Home Park Rental Review Board The C.H.A.M.P. ordinance would establish a standing Rent Review Board to hear all cases. The basic form of the model, therefore, is one of arbitration. The La Verne model, on the other hand, would utilize park committees to mediate the disputes to reach mutually agreeable rent increases. Under C.H.A.M.P. members of the Board would be appointed by the Mayor and approved by a majority vote of the City Council. However, any member or alternate may be removed, with or without cause, by a majority vote of the City Council. 5.56.040 - Exempt Leases C.H.A.M.P. exempts from rent control only those rental agreements which, by law, are required to be exempt under Civil Code Section 798. 17. This ignores the de facto exemption of rental agreements of two months or less allowed under the definition "rental agreement" as mentioned above. For example, the proposed lease agreement offered by the Caravan Mobile Home Park owners (submitted to the City) is intended to comply with Civil Code Section 798.17 to be exempt from local rent stabilization. The proposed 5 year term exceeds the one year limit required under Civil Code Section 798. 17 (b) . Provided the park owners otherwise comply with state statutes, a valid lease of this form could be exempt. However, this office can not and will not provide legal advice on the private landlord - tenant relationship. The C.H.A.M.P. Ordinance would not exempt rental agreements in existence as of the anticipated effective date of the Mobile Home Park Rent Stabilization Ordinance. Because the issue of the retroactivity of a mobile home rent control ordinance to rental 161.1 Honorable Mayor and Members of the City Council November 13, 1991 Page 3 agreements already in existence has not been judicially resolved, the lack of an exemption for existing rental agreements in C.H.A.M.P. 's ordinance may prompt a legal challenge. 5.56.050 - Base Rent The base rent is calculated differently under the La Verne ordinance and the C.H.A.M.P. ordinance. The La Verne model allows the base rent, although fixed at December 1, 1990 levels, to be increased seven percent and/or increased in an amount equal to a proportionate share of expenses such as City special taxes, benefit assessments, or service shares. In contrast, C.H.A.M.P. calculates the base rent at December 1, 1990 levels. All increases from the December 1, 1990 roll-back must be approved by the Board. 5.56. 060 - Space Rent Agreements The La Verne ordinance provides an additional exemption from rent control for those owners and tenants accepting a written schedule for a minimum of two years, so long as two-thirds or more of the tenants consent to the schedule. Section 5.56.070 - Permitted Rent Increases Based Upon An Application Approved By Board The La Verne ordinance removes the City from involvement in a park owner's request for a rent increase by installing a three step process: (1) ministerially permitting a rent increase if certain criteria are met (Section 5.56.070) ; (2) authorizing a park mediation committee composed of representatives designated by the owner and the affected tenants with any decision of said committee required to be approved by the owner and two-thirds of the affected tenants (Section 5.56.080) ; and (3) if mediation fails, the owner may file for arbitration for the proposed rent increase with the City selecting the arbitrator. The determination of the arbitrator is final (Section 5.56.090) . In contrast, any proposed rent increase by an owner must go before a Mobile Home Park Rental Review Board under the C.H.A.M.P. ordinance. The processing of applications and the administering of these requests by the Board is very much the same as the process undertaken by the arbitrator at Section 5.56.090 of the La Verne ordinance. Some of the more significant changes follow. 161.1 Honorable Mayor and Members of the City Council November 13, 1991 Page 4 Under the C.H.A.M.P. ordinance, the Department of Community Development will be heavily involved in processing applications for rent increases submitted to the Board. The Department is responsible for accepting the rent increase applications, requesting the applicant to produce any records, receipts or documents deemed necessary for the Board to make its determination, mails notices in english and spanish to the affected tenants of said rent increase and a brief summary thereof, and determines whether the owner's application is complete. However, the City only collects a fee of $10.00 per affected space and no fee is charged for applications filed within the first six (6) months after the effective date of C.H.A.M.P. 's ordinance. Under the La Verne ordinance, the City bears no expense if the owner submits to mediation and arbitration. Under mediation, the fees payable to the mediation committee are borne equally by the owner and the affected tenants while under arbitration the owner bears the cost but is limited to passing through to the tenants only one-half of that fee. However, under the C.H.A.M.P. ordinance, the owner is not allowed to pass-through any of its reasonable costs and fees to the tenants. 5.56.080 - Permitted Rent Decreases The C.H.A.M.P. ordinance would allow any tenant to apply for a rent decrease. The processing of rent decrease applications and the administration thereof by the Board is substantially the same as applications for rent increases submitted by owners to the Board under Section 5.56.070 of the C.H.A.M.P. ordinance. Again, this involves the Department of Community Development to a degree greater than that generally permitted under the La Verne ordinance for rent increases. More importantly, permitting the Board to authorize rent decreases under a City ordinance exposes Azusa to the risk of a lawsuit challenging the ordinance on the ground that it is an unconstitutional taking without compensation in violation of the United States and California constitutions. Already, a mobile home park owner may not terminate or refuse to renew a tenant's lease except for cause (Civil Code Section 798.55) and must rent the pad on which sits the mobile home to a purchaser of the tenant (Civil Code Section 798.74) . 161.1 Honorable Mayor and Members of the City Council November 13, 1991 Page 5 Section 5.56.090 - Vacancy Control The C.H.A.M.P. ordinance does not allow rent increases other than those approved after a hearing by the Board when a mobile home space becomes vacant or the ownership of mobile home is transferred ("vacancy control") . This is contrary to Section 5.56.100 of the earlier proposed ordinance and certain Federal decisions. As mentioned in our June 27, 1991 letter, the Ninth Circuit has determined that a mobile home park owner may allege that a vacancy control provision such as Section 5.56. 090 of the C.H.A.M.P. ordinance amounts to an unconstitutional taking without compensation Hall v. Santa Barbara (9th Cir. 1986) 833 F.2d 1270. In fact, on November 5, 1991, the decision by the Ninth Circuit in Azul Pacifico, Inc. v. City of Los Angeles (91 Daily Journal D.A.R. 13599) was made public. This decision further undermines the vacancy control provision in the C.H.A.M.P. ordinance. The court determined that an ordinance restricting rent increases upon vacancies or transfers of ownership to those charged for comparable sites or 10 percent, whichever is less, is unconstitutional. Id. at 13604. The C.H.A.M.P. ordinance, without the vacancy control suspension, would provide a blanket prohibition on rent increases when the mobile home is vacated and a new tenant enters. It could allow an outgoing tenant to sell a mobile home to a third party at a premium. The unconstitutionality of the scheme lies in the effect of the ordinance in "taking" this premium from the owner and the fact that the owner has not been compensated by the City. Id. at 13601, 13604. The Ninth Circuit further determined that the taking occurred on the effective date of the ordinance, which could increase the calculation of the compensation payable by a City enacting vacancy control. Id. at 13602. Although certain state law cases have upheld vacancy control provisions, they are currently being appealed to the United States Supreme Court and a final decision on their effect may not occur until 1992. (Yee v. Escondido (1990) Cal.App. 3d 1349 (cert. granted 10/91) ; Palomar Mobile Home Park Association v. San Marcos (1991) CA Court of Appeal, 4th District, unpublished. ) Because of the fact that mobile home park owners can rely on the Federal Ninth Circuit decisions and not these state cases (Azul Pacifico at 13600) , the vacancy control provision in the C.H.A.M.P. ordinance may be challenged. 161.1 Honorable Mayor and Members of the City Council November 13, 1991 Page 6 Therefore, after discussion with C.H.A.M.P. , this office added subsection (b) to Section 5.56.090 of the C.H.A.M.P. ordinance to suspend vacancy control until such time as the City Council resolves to reinstate it following the anticipated United States Supreme Court decisions. Also, we have elected not to incorporate the provisions of the City of San Jose's mobile home rent control ordinance allowing a maximum 8% rent increase to park owners because of the Azul Pacifico decision. Conclusion The La Verne and C.H.A.M.P. ordinances represent different approaches to the question of mobile home rent stabilization. Based upon the discussion in this letter, should the Council desire to proceed with mobile home rent stabilization, this office recommends the La Verne model. Sincerely, 74 Timothy B. cOsker for BURKE, WILLIAMS & SORENSEN TBM:PCA cc: Henry Garcia, City Administrator Peter M. Thorson, City Attorney Roy Bruckner, Director of Community Development 161.1 EXHIBIT B La Verne Ordinance ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING THE AZUSA MUNICIPAL CODE AT SECTION 5. 12. 070 AND ADDING CHAPTER 5.54 RELATING TO MOBILE HOME RENT STABI- LIZATION 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 mobile home park tenancies in 1990 and 1991 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. Mobile home park tenants are in a poor bargaining position with park owners because of substantial investments in their mobile homes, the high cost of relocation and a lack of alternative sites with Azusa and the region. D. Unregulated mobile home park rents will be a hardship on vulnerable portions of the City's population, includ- ing the elderly, the disabled, and those of low income, forcing PCAN1/690690-3.ORD . • these persons to leave the City or divert a disproportionate amount of income to housing. SECTION 2 . The Azusa Municipal Code is hereby amended at Section 5. 12 .070 to add the underscored language as follows: 5. 12 . 070 MOBILE HOME PARKS. Every person engaged in the busi- ness of managing or operating an automobile trailer camp, used for temporary parking of recreational vehicles and trailers, or mobile home 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 comply with the provisions of Chapter 5. 56 of this code relating to rent stabilization. SECTION 3 . The Azusa Municipal Code is hereby amended to add Chapter 5.56 to Title 5, relating to Mobile Home Park Rent Stabilization, to read as follows: PCA#1/690690-3.ORD -2- CHAPTER 5.56 MOBILE HOME PARK RENT STABILIZATION 5. 56. 010. PURPOSE. It is the purpose of this Chapter to facili- tate the establishment of fair and reasonable rents within mobile home parks within the City of Azusa. Furthermore, it is the intent of this Chapter to maintain the character and quality of the City's mobile home 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: CAPITAL IMPROVEMENT shall mean any addition or better- ment made to a mobile home park which consists of more than mere repair or replacement of existing facilities or improvements and which has a useful life of five (5) or more years. MOBILE HOME shall mean a vehicle as defined in the Mobile Home Residency Law, California Civil Code Section 798 . 3 . MOBILE HOME PARK shall mean any area of land within the City of Azusa where two (2) or more mobile home spaces are rented, or held out for rent, to accommodate mobile homes used for human habitation. MOBILE HOME SPACE shall mean the site within a mobile home park intended, designed, or used for the location or accom- PCAUI/690690-3.ORD -3- a modation of a mobile home and any accessory structures or appur- tenances attached thereto or used in conjunction therewith. 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 mobile home 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. REHABILITATION WORK shall mean any renovation or repair work completed on or in a mobile home 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 mobile home space. TENANCY shall mean the right to use or occupy a mobile home space. TENANT shall mean a person who has a tenancy in a mobile home park. 5. 56. 040 EXISTING AND EXEMPT LEASES. (a) Notwithstanding any provision of this Chap- ter 5. 56, rents agreed to under a written lease agreement in existence on December 1, 1991, may be collected until the expira- tion of the lease agreement. PCA#1/690690-3.ORD -4- • (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 shall be the rent in effect for that space on December 1, 1990, subject to either or both of the following adjustments: (1) An increase of no more than seven percent (7%) per annum between December 1, 1990, and the effective date of this Chapter. (2) Increases equal to a proportionate share to each mobile home space of an increase in a City special tax, benefit assessment, or service charge, between December 1, 1990, and the effective date of this Chapter. (b) Any mobile home 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 Section 5. 56. 070, 5.56. 080, or 5. 56. 090, or a vacancy increase occurs pursuant to Section 5. 56. 100, or the PCA#1/690690-3.ORD -5- space is exempt under Section 5.56. 060, or the lease agreement is exempt under Section 5.56. 040. (d) For those spaces covered by an existing or 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 RENTAL AGREEMENT. (a) Any mobile home park which provides a space rental agreement meeting the criteria set forth in this Section 5.56. 060 shall be exempt from the provisions of this Chapter 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 rent schedule for a minimum of two (2) years from the effective date of the agreement. (2) The agreement must be in writing and be binding upon both park owner and residents for its duration but need not be a formal lease or follow any prescribed format. The agreement may contain such other provisions as may be agreed upon by the parties to it. (3) The agreement must be voluntarily consented to by tenants of sixty-seven percent (67%) or more of the mobile home spaces within the park. This consent shall be evidenced by PCAA1/6906903.ORD -6- the signature of at least one adult tenant from each of the requisite number of spaces, with such signature shown on the agreement or on such other form as may be permitted by the City. (c) This exemption shall terminate upon the expiration of the space rental agreement unless such agreement is renewed or extended by mutual consent of the park owner and sixty-seven percent (67%) of the residents. Consent to any such renewal or extension of a space rental agreement must meet the criteria set forth in subsection (b) (3) of this section 5.56.060. Upon termination of the exemption, the mobile home park shall comply with this Chapter. 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. 5. 56. 070 PERMITTED INCREASES WITHOUT MEDIATION OR ARBITRATION. (a) An owner may increase the rent for one or more mobile home 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; and (2) There have been no decreases in services to the tenants, except for decreases permitted by Section 5.56. 110 of this Chapter; and PCA#1/690690-3.ORD -7- 4f (3) The proposed rent increase is no greater than the sum of (A) and (B) : (A) The lesser of seven percent (7%) or the increase in the United States Department of Labor Consumer Price Index (CPI-U) for the Los Angeles-Long Beach Metropolitan Area for the twelve (12) month period ending ninety (90) calendar days prior to the date of receipt of the statement by the City. (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 October 1, 1991; and/or (ii) An increase in a City special tax, benefit assessment, or a service charge, excluding water, sewer and trash. 5. 56. 080 PERMITTED RENT INCREASES BASED UPON MEDIATION. In the event a proposed rent increase for one or more spaces does not meet the criteria set forth in Section 5.56. 070, an affected tenant may file an application with the City for mediation by a park mediation committee within twenty (20) days of receipt of the notice of the rent increase required under Section 5.56. 070. The tenant shall show on the mediation application the manner in which the owner's proposed rent increase does not meet the criteria set forth in Section 5. 56. 070. PCA#I/690690-3.ORD -8- Upon receipt of the mediation application, the City shall mail a notice to the owner and affected tenants. Said notice shall include a brief summary of the case. (a) Upon notification by the City, a five member park mediation committee shall be formed to meet and confer on the rental increase, review the sufficiency of the owner's statement filed with the City pursuant to Section 5.56. 070 and the tenant's mediation application, ascertain if the owner's proposed rent increase meets the criteria set forth in Section 5.56. 070 and, if not, endeavor to reach a mutual understanding of the owner and tenant viewpoints and negotiate a mutually satisfactory rent increase. The park mediation committee shall be composed of two (2) representatives designated by the owner and two (2) represen- tatives selected by the tenants affected by the proposed rent increase. All four such members shall be selected within ten (10) days of the City's 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 members selected by the owner and tenants cannot agree on the fifth member within twenty (20) days of the City's notice, the City shall appoint a fifth member. Any fees payable to the mediator, whether appointed by the park mediation committee or the City, shall be borne equally by the owner and the affected tenants. PCA#U6906903.ORD -9- (b) The park mediation committee shall establish procedures for the conduct of its affairs not otherwise in conflict with the provisions of this Chapter, including, but not limited to, the number of affirmative votes it may require to take or effect any action. (c) If the park mediation committee determines the proposed rent increase meets the criteria set forth in Section 5. 56. 070 or the Tenant's mediation application has not been duly submitted in accordance with this Section 5. 56. 080, the rent increase shall be deemed approved and effective and shall be noticed to all affected tenants and the owner. (d) 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) days of such notice, the affected tenants shall take a secret ballot, with one vote per space. (e) If at least sixty-seven percent (67%) of the affected mobile home 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 percent (67%) of the affected mobile home spaces of the park consent to the increase, or the park owner rejects the increase, then it shall be deemed disapproved. (f) If the increase is disapproved as provided under Section 5. 56. 080 (e) of this Chapter, the park mediation commit- PCM/1/690690-3 ORD -10- tee shall meet within ten (10) days after such rejection for the purpose of renegotiating a proposed increase. If such a proposed increase is renegotiated, written notice by the park mediation committee shall be given and a secret ballot by the affected tenants shall be taken in accordance with the provisions of Section 5.56. 080 (d) and (e) of this Chapter. (g) An owner's proposal for a rent increase submitted to mediation under this Section is deemed denied if: (1) The park mediation committee fails to negoti- ate an initial proposed rental increase within thirty (30) days after the appointment of the fifth member; or (2) The park mediation committee fails to renego- tiate a second proposed rental increase within thirty (30) days after the initial proposal is rejected; or (3) After developing a renegotiated rental increase, the affected tenants or owner reject or fail to consent to the increase. Such disapproval shall be noticed to all affected tenants and the owner. 5. 56. 090 PERMITTED INCREASES BASED UPON ARBITRATION. (a) If a proposed rent increase does not meet the criteria set forth in Section 5. 56. 070 and a mediated settlement per Section 5. 56. 080 cannot be reached, an owner may file with the City an application for arbitration on the applicable mobile home spaces within twenty (20) days following any instance of the denial of the proposed rent increase under Section 5. 56. 080 (g) . PCA#1/690690-3.ORD -11- ` _11/13/91 16:48 $213 236 2700 BW&S LA AZUSA REDEV AGCY L1002 • (b) An application for arbitration pursuant to this sec ion shall be made under penalty of perjury and shall be filed upo a form prescribed by the City accompanied by the payment of a f=e established by resolution of the City Council. If the own=r files for arbitration, only one-half of the fee may be cha.ged by the owner to the tenants of the affected spaces in the for of a one-time pass-through. The arbitration application she 1 specify the address of the mobile home park, the space num-ers for which rent is requested to be increased, the amount of -he requested rent increase, and the facts supporting the req est. The City shall select the arbitrator. (c) The arbitrator shall determine within sixty (60) day after rteceipt of an application whether said application is com-late. It the arbitrator determines that an application is not complets, the arbitrator shall notify the applicant in wri .ing as to what additional information is required. (d) Upon a determination that the application is con.lete, the Arbitrator shall mail a notice to the owner and the aff=cted tenants at the mobile home spaces designated in the app ication. The notice shall include the amount of the request- ed .ent increase, a brief summary of the owner's justification for the request, notice that any supporting documents may be ins.ected at City Hall, notice of the right of the affected ten-nt or owner to submit written statements, photographs or doc ments relating to the application within thirty (30) days aft'r the date the notice is mailed, and the address where such PCA#U/. •,•'i.ORb -12- '� Iia -N; statements, photographs, or documents may be mailed or delivered. All written statements submitted by a tenant or owner for consid- eration 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 increase. The applicant shall produce any records, receipts, or other documents that the arbitrator may deem necessary to approve a rent increase. 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 to the standards established by subsection (g) of this section, approving or disapproving the requested rent increase. PCA#1/690690-3.ORD -13- t e (7) Changes in the utility charges for the subject mobile home park paid by the applicant and the extent, if any, of reimbursement from the tenants. (8) Changes in reasonable operating and mainte- nance expenses. (9) The amount and quality of services provided by the applicant to the affected tenant. (10) The need for rehabilitation work at the park. (11) Tenant comments regarding the proposed increase. (i) The arbitrator shall not consider the following facts in rent arbitration hearings: (1) Any expense for which the park owner is reimbursed. (2) Attorneys fees and costs incurred in proceed- ings under this Chapter. (j) The Arbitrator may provide that an increase in rent or a portion of an increase in rent granted be limited to the length of time necessary to allow the park owner to reason- ably amortize the cost of a capital improvement, including interest. Such increase granted as a result of the capital improvement shall not continue beyond the time necessary for reasonable amortization of the cost of such improvement. (k) Notice of the arbitrator's determination shall be mailed to the applicant and the affected tenants. The determina- tion of the arbitrator shall be final. PCAk1/690690-3.ORD -15- s (1) If the arbitrator is unable to act and make his/her final determination on a completed rent increase applica- tion within seventy-five (75) calendar days after the application is deemed complete, the arbitrator may approve such interim rent increase for the mobile home space or spaces specified in said application as clearly appears 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 arbitrator by the affected tenants, and any other facts known to the arbitrator. An approved interim rent increase shall expire on either: (1) the last day of the month within which the arbitrator makes his/her final determina- tion disapproving a rent increase; or (2) the effective date of a rent increase which is approved by a final determination of the arbitrator. (m) 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 pursuant to subsection (k) of this section. 5. 56. 100 VACANCY INCREASES. When a mobile home space becomes vacant or the ownership of a mobile home is transferred, the park owner may adjust the monthly rent without regard to this Chapter 5.56. The rent charged for the first month of the new tenancy following such vacancy shall be the base rent for the purposes of PCA#1/690690-3.ORD -16- • 1 any subsequent increases as provided under this Chapter. A change in ownership shall not include any of the following: (a) Transfers to a conservator of the person and/or of the estate of a tenant. (b) Transfers which take effect upon the death of a spouse; (c) Transfers to a spouse, or former spouse in connec- tion with a property settlement agreement or decree of dissolu- tion of marriage or legal separation; or (d) The creation, transfer, or termination solely between spouses, of any co-owner's interest. 5.56. 110 TERMINATION OF SERVICES. No mobile home park owner shall reduce or eliminate any service to any mobile home space so long as this Chapter is in effect, unless and until a proportion- ate share of the cost savings resulting from such reduction or elimination is passed on to the resident in the form of a de- crease in space rent. If a mobile home 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. The cost of installation of separate utility meters, or similar costs to the owner which allow a shift in obligation for PCA#1/690690-3.ORD -17- • payment of utility costs to the resident may not be passed to the resident. 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. 120 ANNUAL REVIEW. 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 day of , 1991. Mayor of the City of Azusa ATTEST: City Clerk PCA#1/690690-3.ORD -18- • ORDINANCE NO. 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING THE AZUSA MUNICIPAL CODE AT SECTION 5. 12070 AND ADDING CHAPTER 5.56 RELATING TO MOBILEHOME PARK RENT STABILIZATION AND PROVIDING FOR ITS ADOPTION AS AN URGENCY MEASURE 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 2. 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 comply with the provision of Chapter 5.56 of this code relating to rent stabilization. PCA1l140521-3.ORD DRAFT 11/06/91 SECTION 3 . 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-U shall mean the Consumer Price Index for All Urban Consumers in the Los Angeles-Long Beach-Anaheim Metropolitan Area published by the 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. PCA1/740521-3.ORD DRAFT 11/06/91 -2- 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 utility hike. RENT DECREASE shall mean a decrease in basic space rent, pass-throughs, separate assessments or other charges, excluding a 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 Mobilehome Park Rental Review Board. (a) The Mobilehome Park Rental Review Board is hereby established and shall consist of seven (7) members and seven (7) alternates. In order to provide varied and balanced backgrounds and experience, two (2) members and two (2) alternates shall be homeowners within mobilehome parks; two (2) members and two (2) alternates shall be owners of mobilehome parks; three (3) members and three (3) alternates shall be "public members" who are neither PCA1/740521-3.ORD DRAFT 11/06/91 -3- homeowners nor owners and must be residents of the City of Azusa. 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, to the extent feasible, hearings shall be conducted by a full Board of seven (7) . Alternates shall be called first by same background, then by rotation, for service on the Board. (c) Each member and alternate shall be appointed by the Mayor and approved by a majority vote of the City Council for a one (1) year term to end on the next June 30 after the appointment and until a successor is appointed. Any member or alternate may be removed, with or without cause, by a majority vote of the City Council. Should a vacancy exist,an appointment shall be made by the Mayor and approved by a majority vote of the City Council for the unexpired portion of the term. The compensation of Board members and alternates 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 City Administrator, 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 Mayor effective upon ratification by the City Council. (e) The Board shall establish the time of any hearings or meetings shall be 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: (1) The Board shall create its own regulations by majority vote to carry out the provisions of this Chapter 5.56. PCA1/740521-3.ORD DRAFT 11/06/91 -4- (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 EXEMPT LEASES. (a) Notwithstanding any provision of this Chapter 5.56, only those rents agreed to under a written lease agreement exempt from local ordinance pursuant to California Civil Code Section 798. 17 may be collected until the expiration of such lease agreement. As set forth in subsection (b) of California Civil Code Section 798. 17 such lease agreements shall be in excess of twelve (12) months duration. (b) No mobilehome park in its entirety shall be exempt from the provisions of this Chapter 5. 56 unless one-hundred percent (100%) of the homeowners are under written leases exempted from this Chapter. Notwithstanding the percentage of people signing leases in any particular park, no individual homeowner shall be denied the rights afforded to him under this Chapter 5.56. 5.56. 050 BASE RENT (a) The initial base rent per month for each space 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 City special 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 Section 5.56. 070. (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. PCA1/740521-3.ORD DRAFT 11/06/91 -5- 5.56.060 SPACE RENT AGREEMENTS. (a) Nothing in this Chapter shall operate to restrict the right of a homeowner and management to enter into an agreement in accordance with California Civil Code 798. 17. Pursuant to Civil Code Section 798.17 (c) the homeowner shall have the option to reject the offered rental agreement and accept a rental agreement for a term of twelve (12) months or less, including a month-to-month agreement. 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. (b) 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. (c) 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. 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 of ten dollars ($10) per affected space; provided, however, that no fee shall be charged for applications filed within the first one hundred eighty (180) days after the effective date of this Chapter. 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 PCA1/740521-3.ORD DRAFT 11/06/91 -6- 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. (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 PCA1/740521-3.ORD DRAFT 11/06/91 -7- 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 All Urban Consumers in the Los Angeles-Long Beach-Anaheim Metropolitan Area published by the 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, construction, interest, permit fees and other items as the Board deems appropriate. (5) Changes in property taxes or other taxes related to the subject mobilehome park. (6) Changes in the rent paid by the applicant for the lease of the land on which the subject mobilehome park is located. (7) Changes in the utility charges for the subject mobilehome park paid by the applicant and the extent, if any, of reimbursement from the homeowners. (8) Changes in reasonable operating and maintenance expenses. (9) The need for repairs caused by circumstances other than ordinary wear and tear. (10) The amount and/or quality of services provided by the applicant to the affected homeowner. (11) Any existing written lease lawfully entered into between the applicant and the affected homeowner. (12) 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 PCA1/740521-3.ORD DRAFT 11/06/91 -8- 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 shall be final. (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; (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 of ten dollars ($10) per affected space; provided, however, that no fee shall be charged for applications filed within the first one hundred eighty (180) days after the effective date of this Chapter. 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 PCA1l740521-3.ORD DRAFT 11/06/91 -9- 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 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: PCA1/740521-3.ORD DRAFT 11/06/91 -10- (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 the utility charges in the utility charges for the subject mobilehome park paid by the owner(s) and the extent, if any, of reimbursement from the homeowners. (9) Changes in reasonable operating and maintenance expenses. (10) Any existing written lease unlawfully entered into between the applicant and the affected owner. (h) Notice of the Board's determination shall be mailed to the applicant(s) and the affected owner(s) . The determination of the Board shall be final. (i) In the event that the Board is unable to act and make its final determination on a completed rent decrease application within the time limitations prescribed by subsections (d) -(f) of this Section, and after the thirty (30) days for the owner(s) to file statements or documents in opposition to the application under subsection (c) shall have expired, the Board may approve such interim rent decrease 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 owner(s) , and any other facts known to the Board. An approved interim rent decrease shall expire on either: PCA1/740521-3.ORD DRAFT 11/06/91 -11- (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 of a fee established by resolution of the City Council. If the owner files for arbitration, only one-half of the fee may be charged by the owner to the tenants of the affected spaces in the form of a one-time pass-through. 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 the arbitrator. (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 increase, 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. PCA1/740521-3.ORD DRAFT 11/06/91 -12- (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 application 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 increase. The applicant shall produce any records, receipts, or other documents that the arbitrator may deem necessary to approve a rent increase. A party 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 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 to the standards established by subsection (g) of this section, approving or disapproving the requested rent increase. (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 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 PCA1/740521-3.ORD DRAFT 11/06/91 -13- 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 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 a resolution 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; (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 PCA1/740521-3.ORD DRAFT 11/06/91 -14- 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 for anything other than rent or utilities with the 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: PCA11740521-3.ORD DRAFT 11/06/91 -15- (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 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. PCA1/740521-3.ORD DRAFT 11/06/91 -16- (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: (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 . Unless this ordinance takes effect immediately a number of mobilehome residents may suffer unnecessary hardship. Further, any delay in the implementation and enforcement of this ordinance will continue the uncertainty that now exists between landlords and residents in the mobilehome parks within the City. This Ordinance effects the public peace, health, welfare and safety and shall take effect immediately. PCA1/740521-3.ORD DRAFT 11/06/91 -17- SECTION 5. 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 day of , 1991. Mayor of the City of Azusa ATTEST: City Clerk PCA1/740521-3.ORD DRAFT 11/06/91 -18- / EXHIBIT C-1 AMENDMENTS TO THE RESIDENTS' PROPOSED ORDINANCE 5. 56.020 (page 3) The definitions of RENT INCREASE and RENT DECREASE are to read as follows : 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. 5.56.050 (page 5) (c) Add to the end of paragraph: "or Section 5. 56. 085. " 5. 56. 070 (page 9) ( i ) Change the last sentence of paragraph to read: "The determination of the Board may be appealed to an Arbi— trator as set forth in Section 5. 56. 085. " 5. 56. 080 (page 11) (h) Change the last sentence of paragraph to read : "The determination of the Board may be appealed to an Arbi— trator as set forth in Section 5. 56. 085. " 5.56. 085 (page 13) Subsection ( i ) to read as follows : • ( 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. 5. 56. 090 (page 14) Subsection (b) ( 1 ) to read as follows : (b) ( 1 ) Transfers to a conservator of the person and/or the estate of a tenant and/or the individual heir of a tenant ; 1 i AMENDMENTS TO THE RESIDENTS' PROPOSED ORDINANCE 5.56.085 (page 12) Subsection (b) to read as follows : (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 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 mobilehome park, the space numbers for which rent is requested to be adjusted, the amount of the requested rent adjustment, and the facts supporting the request. The City shall select an independent arbitrator who is a member of the American Arbitration Association. (pages 12-13) Change the phrase "rent increase" to "rent adjustment" in Subsections (d) and (g) . 2 .. .1c m - . AMENDMENTS TO THE RESIDENTS' PROPOSED ORDINANCE 5.56. 090 (page 14) Add Subsection (c) as follows: (c) Pending the U. S. Supreme Court decision on Yee vs. City of Escondido, a rent increase greater than eight percent (8%) upon change of ownership of a mobilehome must be reported to the Department. The portion of the increase in excess of eight percent (8%) shall be deposited in a special account supervised by the City. Upon the U. S. Supreme Court decision the money in said account shall be returned immedi- ately to the appropriate park owners if the Court decides in the favor of Yee. If the Court decides in the favor of the City of Escondido, the money shall be distributed immediately to the appropriate homeowners, and their basic space rent shall be rolled back to the basic space rent in effect the month prior to change of ownership plus eight percent (8%) of that prior space rent. 3 EXHIBIT D Foothill Vista Lease . MOBILE HOME Ey: ASSOCIATES 3532 DAMIEN AVE, • LA VERNE.CALIFORNIA 91760 RECEIVED t...)" E.FOOTHILL BLVD. • AZUSA,CALIFORNIA 917(1 City of Azusa NOV 121991 213 E . Foothill Blvd . COMMUNITY DEVELOPMENT Azusa, Ca. 91702 DEPARTMENT CITY OF AZUSA Att : Roy Bruckner Regarding: Proposed mobile home park rent ordinance . 7 November 1991 Dear Roy , Please find enclosed a copy of the rental agreement currently in effect at Foothill Vista M. H.P. It was revised slightly in January of this year ( 1991 ) to reflect changes in the Calif . Civil Code and some aspects in our current society . The rent formula is, however , identical to our original rental agree- ment first put into effect in 1977 . All of our residents , except for 2 who' s homes are up sale , have signed a five year agreement . Prior to 1984 all of our residents received rent increases on Feb . 1st of each year . Since that time all new residents have an anniversary date on the date of their 1st occupancy and received rent increases on that date each year . All increases are based on the most current C. P . I . figure plus any pass thru' s calculated for the Feb . increases . This coming year , Feb . 1992 , there are still 49% of our residents receiving increases . The average increase will be $13 . 23 . This is the C. P . I . figure for Sept . of 3 . 52% + pass-thru' s for property tax and rubbish fee increases . As you can see this is a reasonable increase. Done without the need of a rent ordinance . We still feel that a fair rental agreement is the best approach to the situation rather than a city administered ordinance. Sincerely, '7 d - 4 Robert L . Clifford General manager Foothill Vista Mobile Home Park The Fountains Mobile Home Park 840 East Foothill Blvd 3530 Damien Avenue Azusa California 91702 La Verne, California 91750 Phone (818) 334-1134 Phone (714) 593-4131 RENTAL AGREEMENT 1. INTRODUCTION: Resident to comply within fourteen (14) days. (5) A 1.1 THIS AGREEMENT WILL BE EXEMPT guest charge of Dollars ($ ) FROM ANY ORDINANCE, RULE, REGULA- per day may be charged for each guest staying more TION, ADMINISTRATIVE DECISION, OR INI- than twenty (20) consecutive days or thirty (30) days in a calender year.This additional charge for guests shall TIATIVE MEASURE ADOPTED BY ANY not, however, apply if the guest is a member of the LOCAL GOVERNMENTAL ENTITY WHICH Resident's immediate family as defined by the ESTABLISHES A MAXIMUM AMOUNT THAT Mobilehome Residency Law, or if the guest comes with- MAY CHARGE YOU FOR RENT. This is a Rental in Civil Code§ 798.34 (b). (6) Other monthly charges (specify): Agreement (Agreement) and it incorporates by refer- ence the "General Provisions to Rental Agreement" ("General Provisions"). 1.2 SPACE: Owner rents to Resident and Charges for guests, recreational vehicles, and charges Resident rents from Owner Space No. (herein the listed after title "Other monthly charges" may be "Space") in (hereinafter increased upon sixty (60) days' notice to Resident. If rent and utilities are not paid when due, those amounts the"Community"),located shall bear interest at the rate of 10% per annum from at ,California. the date due until paid. 2. TERM: 3.2 Base Rent (Check one block only) 2.1 APPLICABLE TERM (Check one block only) A A . The base rent shall be A. The tenancy created under this ---- Dollars ($ ) per month Agreement shall be for a period of and it shall remain in effect for the entire term of the ( ) months and shall commence on Agreement. 19 , and end on , 19 , unless ittermi- B . The base rent shall be nates earlier per the termination paragraphs of the ---- Dollars($ ) per month and General Provisions or is automatically renewed/extend- it shall remain in effect until 19_ ed per paragraph 16. Resident's Initials Effective ,19 , the base rent shall be B. The tenancy created under this increased by Dollars($ ) Agreement shall be on a month-to-month basis and per month and it shall remain effective until shall commence on , 19 . Resident's 19_ Initials ____C . The base rent shall be Dollars ($ ) per month. 2.2 Resident acknowledges that Owner has offered Resident the option of: a month-to-month rental This base rent may be increased at any time upon sixty (60) days'notice to Resident from Owner. agreement, a rental agreement having a term of D D . The base rent shall be ( ) months, a twelve (12 ) month rental ---- Dollars ($ ) per month. agreement, or a rental agreement having a term which This base rent shall be adjusted in accordance with the is longer than a month-to-month tenancy but less than provisions of paragraph 3.3. below. twelve (12) months in length. Resident acknowledges his understanding that he may elect to accept any one 3.3 For those Residents choosing a long - term of these options and that this election is solely at resi- lease, the base monthly rent specified in paragraph dent's option. Resident further acknowledges that even though he has these options, he has voluntarily elected 3.2.D. may be increased by an amount equal to cost of living increases plus property tax increases and increas- the term of tenancy set forth above. Resident's Initials es in the cost of government required services. Costs of living increases will only go into effect on the first day of _ _ _ (anniversary month) during each year of this Agreement. Increases for property taxes and costs of governmental required services may go into effect at 3. RENT: any time upon (60) days' notice from Owner. Owner 3.1 Resident shall pay as rent to Owner without Shall have the option not to increase rent even though deduction or offset(without waiving Civil Code §1942) Atherwiee permitted to do so under the terms of this and on the first day of each month: (1)The base rent(as Agreement. it may be adjusted) as specified in Paragraph 3.2 below. A. The cost of living increase will be (2) All utility charges billed to Resident by Owner during " each rttonth.(Please note:Utility rates for utilities bitted "._computedeae follows:The__index"that will be used is the to Resident by Owner are set by the Public Utilities consumer Price Index (CPI) for Urban Wage Earners & Clerical Workers for Los Angeles-Anaheim-Riverside, Commission and other governmental agencies. California area.The amount of the cost of living increase Therefore, charges for these utilities may be increased will be computed by measuring the change between the at any time in accordance with rates established by "Beginning Index" and the "Ending Index". This period these other parties and no advance notice of increases will be for the closest 12 month period proceeding the will be given to Resident by the Owner.) (3) anniversary date above to permit notice in accordance Recreational and extra vehicle storage charges of with Para. 3.3 D below. Dollars ($ )per month for each vehi- cle stored in the Recreational Vehicle Storage Lot. (4) Owner may charge a reasonable fee for services related B. Government Expenses will be com- to the maintenance of the land and premises upon puted by the amount of the increase, divided by the which the mobilehome is situated in the event Resident amount of the spaces, divided by twelve (12) and added fails to maintain such land or premises in accordance to the monthly base rent.Owner and residents agree that with the Rules and Regulations of the Park after written property taxes and costs of governmental required ser- notification to the Resident and the failure of the vices are part of the rent Residents are required to pay RA-MHA-JAN 1991 1 • (over) and are only identified for the purpose of explaining how are those of a debtor and not a trustee.We can maintain rent adjustments will be calculated. Government the security deposit with our general and other funds. Expenses include costs the community is required to We shall not be required to pay you interest on the secu- absorb, but does not have control over. By way of exam- rity deposit. ple, Government Expenses include, but are not limited to: services or facilities which we are required by 5. UTILITIES: Government to provide, or do provide voluntarily, to the Owner will determine and advise Resident of residents of the community, including services provided the electrical capacity (amps)available for each individ- by utility companies, private parties and quasi-govern- ual Space. Resident is responsible for insuring that mental entities as well (such as utilities, fire protection Resident's mobilehome and all present or future acces- and paramedic services or facilities); all real estate sory equipment and appliances in Resident's mobile- taxes, personal property taxes, bonds, fees, charges, home are compatible with the then available electric ser- surcharges,and assessments, or other charges made in vice, and Owner shall have no liability or responsibility lieu of real property taxes which we are required to pay to Resident if the available electric amperage is incom- and any tax or excise of rents or any other tax which is patible or otherwise insufficient.Owner shall provide and assessed against the Community as a direct substitution separately bill to Resident natural gas and electrical for any real property taxes. power. Owner may, however, upon sixty (60) day's C. Special Note: For bookkeeping purpose, all notice to Resident, elect to charge Resident for any of rents and increases will be rounded off to the nearest the utilities currently provided to the Resident without $.25 when totaled. separate charge without a change in the other terms of D. Residents will be given sixty (60) days'writ- this agreement. Resident shall not connect, except ten notice of the amount of the increase in the base through existing electrical or natural gas outlets or water monthly rent and other monthly charges computed in pipes on the Space, any apparatus of device for the pur- accordance with the above. pose of using electric current, natural gas or water. E. If the consumer Price Index referred to Maximum capacity for this Space: amps. above decreases, then the base monthly rent will be The cable T.V. service is provided by a company which decreased in accordance with the same procedure and operates entirely independent of the Community and we formula set forth above: In no event will the base month- have no responsibility for that service, the amount ly rent or other monthly charges ever be less than the charged or any other aspect of the operation of the amounts specified in paragraph 3.2.D. of the rental cabie T.V. agreement. F. Owner agrees that except as set forth above, 6. RENTING, SUBLETTING or ASSIGNING: the rents provided for in this Agreement shall not be Resident shall not sublease,or otherwise rent all increased to Resident by any amount at any time during or any portion of Residents Mobilehome or the Space. the term of this agreement. If, however, this Agreement Resident shall not assign or encumber its interest in this is terminated for any reason or if Resident Voluntarily, agreement or space. Any sublease, other renting, involuntarily, or by operation of law sells or otherwise assignment or encumbering shall be void. If Resident ransfers Resident's mobilehome to another party or consists of more than one person, a purported assign- tiesident ceases to be a Resident of Owner's mobile- ment,voluntary, involuntary, or by operation of law, from home Community, then this Agreement shall terminate one person to another shall be deemed an assignment and Owner may increase the rental rate to the new by the terms of this agreement. Subletting or subleasing Resident of the Space by any amount Owner, in its sole means any renting, regardless of the time period or how discretion, deems appropriate. Resident may not assign it is characterized, of the Mobilehome or Homesite or otherwise transfer in any manner, either in whole or (Space). part, any of Resident's rights under this Agreement to any other party. 7. TERMINATION BY RESIDENT: The Resident/s occupying the Space may elect 3.4 All rents payable hereunder shall be paid to terminate this Agreement on sixty (60) days notice to by check or money order. Owner may, upon ten (10) the Owner if one of the following occurs: days' written notice to Resident require payment be A.All persons occupying the Space rent- made in cash or equivalent. If the entire rent owed by ed to the Residents by this agreement terminate their Resident is not paid by 12:00 noon of the fifth (5th)day residency as to said Space and remove their of the month, Resident shall pay a late charge of up to Mobiiehome from the Community. In such event, the 10%to Owner. Resident shall also pay to Owner an up Space shall revert to the Owner's control and the Owner to 10% charge for each check of Resident's which is may lease or rent the Space to another party on any returned or dishonored for any reason by Owners bank. terms he chooses. The acceptance by Owner of any late payment shall not B. All persons occupying the Space rent- constitute a waiver of any breach of any term or provi- ed to the Residents by this agreement terminate their sion of this Agreement, or any rule, regulation, term or residency as to said Space and sell their Mobilehome to provision contained in any document referred to in this another party who has been approved by the Owner for Agreement, nor shall it reinstate, continue or extend the Residency in the Community in accordance with the term of this Agreement or effect any notice, demand or terms of this agreement. Any sale of Mobilehome shall suit hereunder. be made in accordance with the provisions of Para. 9 below. 4. SECURITY DEPOSIT: On execution of this Agreement, you shall deposit with us Dollars ($, ) as a security 8. TERMINATION BY COMMUNITY: deposit for the performance by you of the provisions of This Agreement may be declared forfeited and the Agreement-4f you are atitiadra rosident of the thollesiaency-and right to possession of-the Space-be- -- Community at the time you sign this Agreement, the terminated in accordance with the provisions of the amount of any security deposit you have previously Mobilehome Residency Law and other applicable law. given to us will be inserted in the prior sentence and will Any such rights granted to the Community due to any be the applicable amount of that deposit.) If you are in amendments, deletions or modifications to Mobilehome default,we can use the security deposit, or any portion Residency Law and other law may be enforced by the of it, to cure the default or to compensate us for any Community.The issuance of a termination of Residency damage sustained by us resulting from your default.You notice shall be considered an election to forfeit the shall immediately on demand pay to us a sum equal to Residency within the meaning of this agreement. the portion of the security deposit expended or applied by us as provided in this paragraph so as to maintain 9. APPROVAL OF PURCHASER AND SUBSE- the security deposit in the sum initially deposited with QUENT RESIDENTS: us. Our obligations with respect to the security deposit 9.1 Resident/s may sell their Mobilehome at RA-MHA-JAN 1991 2 any time pursuant to the rights and obligations of known as the Mobilehome Residency Law effective Resident and the Community under the Mobilehome January 1st of current year. Residency Law and other applicable law. Resident must, C. General Provisions to Rental however, immediately notify the Community in writing by Agreement in effect at the time of this Agreement. signing a statement in the Community office of their D. Rules and Regulations in effect at the intent to sell and request for the inspection of the exteri- time of this Agreement. or of their Mobilehome and Space if they intend the E. Other Mobilehome to remain in the park, Said buyer must do 13.2 In additions, the use of the clubhouse, the following upon making a deposit or opening of an recreation, laundry and all other Community facilities are escrow on the Mobilehome: (1) Make appointment with conditioned upon compliance with the Rules and the Community office and complete an application for Regulations posted in and around said facilities, as they Residency; (2) be accepted by the Community; (3) exe- may be amended, modified or otherwise changed from cute a Community Rental Agreement, including Rules time to time, as permitted by the terms of this and other Residency documents prior to the close of an Agreement. escrow or taking possession of the Mobilehome. The Rental Agreement, Rules and Regulations and other 14. CONFLICTS: Residency documents signed by the New Resident may In the event of any conflicts between the terms be different in their terms and provisions from this of this Agreement, the terms of the General Provisions Agreement and other Agreements, Rules and or Rules and Regulations which are incorporated by ref- Regulations and other documents now in effect. IF THE erence in this Agreement, the terms and provisions of PURCHASER FAILS TO EXECUTE THE COMMUNI- this Agreement will prevail. TY'S RENTAL AGREEMENT, HE SHALL HAVE NO RIGHTS OF RESIDENCY. 15. ACKNOWLEDGEMENT: 9.2 Except for guests, the requirements in 15.1 New Resident: Para. 9.1 for completion of an application, approval by - -• • ! - - - • - - - - the Community, and the execution of documents shall • • _ == - - _ • -_ - - - _ _ _ -- . also apply before any additional persons other than the If you decide to accept this Agreement, then after sign- ones listed on the last page of this Agreement shall be ing it you may have seventy two (72) hours to rescind permitted to become a Resident in the Community or this Agreement by delivering to us a written statement reside with the Resident on a semi-permanent or long stating your election to cancel this Agreement. If you term basis. ALL PERSONS IN RESIDENCY AT THE complete the purchase, transfer or other acquistion of SPACE OR MOBILEHOME MUST SIGN THE RENTAL the Mobilehome without signing this Agreement or have AGREEMENT IN ORDER TO HAVE ANY RIGHTS OF cancelled this Agreement as is your right above, you RESIDENCY. have no rights of Residency in the Community or leave the Mobilehome you purchased or acquired here. 10. COMPLIANCE WITH LAW AND RULES AND 15.2 New Resident:You further acknowledge REGULATIONS: You agree to comply with all that you have not been compelled by us to establish applicable laws, ordinances, regulations and all terms Residency in our Community or purchase or acquire any and provisions of this Agreement, the Rules and Mobilehome located in the Community. You agree that Regulations, and all terms and provisions contained in the rent and other terms of this Agreement are satisfac- any document referred to in this Agreement, as they tory and that you will comply with all the terms of these may be changed by the Community per the terms of this documents. Agreement. 15.3 New Resident: THIS AGREEMENT WILL NOT BE EFFECTIVE UNLESS YOU COMPLETE 11. ALTERATION, CHANGE OR AMENDMENT OF THE PURCHASE OR OTHER ACQUISITION OF THE AGREEMENT: Except for the length of Term of MOBILE HOME. IF YOU DO NOT YOU WILL HAVE NO Residency and Rent Provisions, which may not be RIGHTS OF RESIDENCY IN THE COMMUNITY. changed, this Agreement (including all Incorporated 15.4 Resident (which includes each o the per- Documents) may be altered or changed by the Resident sons whose names are listed below), acknowledges that only by written agreement signed by both parties. This they have read, understood and received copies of this Agreement may be altered, changed or amended by the Agreement, including all Incorporated Documents. Community by written agreement by both parties in any Resident understands that by executing this Agreement manner provided or permitted by the Mobilehome they are bound by the terms and conditions therein, Residency Law or other applicable law. This Agreement including other Rules and Regulations in and about the may also be altered, changed or amended as a require- Community. ment of law. 16. AUTOMATIC RENEWAL: THIS AGREEMENT 12. ENTIRE AGREEMENT: Please understand that WILL BE AUTOMATICALLY RENEWED AND EXTEND- our Community Manager, other personnel, ED ON THE SAME TERMS AND CONDITIONS, mobilehome dealers, the sales person who sold you INCLUDING THE SAME RENT INCREASE PROVI- your mobilehome and other persons are not authorized SIONS, FOR ANOTHER SIXTY (60) MONTHS to make any representations or agreements with you UNLESS ONE OF US GIVES WRITTEN NOTICE TO about the Community unless those agreements and rep- THE OTHER THAT THEY DO NOT WANT THIS resentations are contained in this Agreement and the AGREEMENT TO BE AUTOMATICALLY RENEWED other documents and posted signs referred to in It. AND EXTENDED. BOTH OF US HAVE THE OPTION Therefore, you agree that this Agreement and the other TO GIVE ONE ANOTHER WRITTEN NOTICE THAT documents and posted signs referred to in it are the WE DO WANT THIS AGREEMENT TO TERMINATE AT entire agreement between you and us regarding the THE END OF ITS ORIGINAL SIXTY (60) MONTH subjects covered by this Agreement, other documents TERM. IF EITHER OF US DOES NOT WANT THIS and signs. This Agreement supersedes all prior and AGREEMENT TO BE AUTOMATICALLY RENEWED contemporaneous agreements, representations and AND EXTENDED, THE REQUIRED WRITTEN NOTICE understandings of you, any other person, or us. MAY NOT BE GIVEN ANY EARLIER THAN ONE HUN- DRED TWENTY (120) DAYS OR ANY LATER THAN 13. INCORPORATED DOCUMENTS: NINETY (90) DAYS BEFORE THE END OF THE ORIG- 13.1 The following documents as they may be INAL TERM OF THIS AGREEMENT. amended, modified or otherwise changed from time to time as permitted by the terms of this Agreement, are incorporated herein by this reference, and Resident acknowledges receipt of the documents listed below: A.This Agreement B. California Civil Code provisions RA-MHA-JAN 1991 3 (over) 17. EXECUTION: HOMEOWNER/S This Rental Agreement is executed on the date following each signature and is effective on the date shown in Paragraph 2. of this Agreement. PLEASE DATE NOTE THAT ALL PERSONS IN RESIDENCE AT THE SPACE OR MOBILEHOME MUST SIGN THIS RENTAL AGREEMENT. The on-site Park Manager or Property Manager DATE is authorized to sign this Agreement, other documents it refers to, and other documents that you receive in the future, on the Owner's behalf. DATE PLEASE NOTE THAT PARAGRAPH 16. OF THIS Person/s in addition to the above who will reside in the AGREEMENT CONTAIN AN AUTOMATIC RENEWAL/ above Homesite: EXTENSION PROVISION. OWNER OR OWNER'S AUTHORIZED REPRESENTA- TIVE: DATE Date DATE DESCRIPTION OF MOBILEHOME: MAKE: SIZE: YEAR RA-MHA-JAN 1991 4 Foothill Vista Mobile Home Park The Fountains Mobile Home Park 840 East Foothill Boulevard 3530 Damien Avenue Azusa, California 91702 La Verne, California 91750 Phone: (818) 334-1134 Phone (714) 593-4131 GENERAL PROVISIONS TO RENTAL AGREEMENT 1. INTRODUCTION: These General Provisions conform to any or all energy conservation programs are part of the Rental Agreement ("Agreement") established by government or utility companies. which you are signing simultaneously with these General 2.3 SECURITY: Resident acknowledges that Provisions. These General Provisions contain things the Community is not a "security" Community. We have which are important to your tenancy so you should read not made any representations or warranties that the them carefully. Community is secure from theft or other criminal acts which may be perpetrated by any resident of the 2. SERVICES AND IMPROVEMENTS: Community or other persons. 2.1 RESPONSIBILITY OF THE COMMUNITY: A. It is the responsibility of the Community to 3. USE AND OCCUPANCY: provide and maintain the physical improvements in the 3.1 Your mobilehome and Homesite may be common facilities of the Community in good working used only as a private residence and no business or order and condition. The Community shall provide all of commercial activity may be conducted there. This the physical improvements and services which are now prohibition applies to any commercial or business activity, in existence in the Community and provided to the including but not limited to, the following: (a) any activity Resident or which may be added at a later date. These requiring the issuance of a business license or permit; physical improvements include the non-exclusive use of and (b) the leasing, subleasing, sale, or exchange of all of the common areas and common facilities in the mobilehomes. We , or someone we designate, may Community which includes without limitation all streets, conduct a mobilehome sales business in the Community. non-restricted parking areas, all recreation facilities and No persons other than those listed on the last page of equipment, buildings, pools, lawns, laundry facilities and this Agreement may reside at the Homesite or the all other equipment and conveniences located in the Community without the Community's prior written common areas and common facilities for the use of consent. At all times, at least one of the persons listed on Residents. These services include the services provided the last page the Rental Agreement must be the by the Community Manager and other persons employed "registered" owner of the Mobilehome. The only by the Community and the utilities specified in this exception to the above is that by consent of the agreement. Community, a member of the immediate family may be B. Only normal maintenance and repair will be the "registered" owner of the Mobilehome. No person/s done as is deemed reasonable and necessary so that other than those listed on the last page of the Rental the facilities and improvements are maintained in a good Agreement has any rights of Residency, regardless of serviceable condition. You agree that the standard of whether they are a "registered" owner or not. maintenance and repair that we are held to with regard to 3.2 You agree not to do anything that will the Community is that of an average mobilehome constitute waste, nuisance, or unreasonable annoyance community in California which is of similar age and to the other residents in the Community. You also agree condition as our Community. not to do anything which will cause damage to the C. With respect to the Community providing any Homesite or the Community. You also agree not to permit services or facilities (including utilities) to Resident, any any act or maintain or permit to be maintained any prevention, delay, or stoppage due to strikes, walkouts, condition on your Homesite or mobilehome which may labor disputes, acts of god, inability to maintain labor or cause an increase in the rate of insurance we pay or materials or reasonable substitutes for them, government increase our costs of maintenance and repair or in any restrictions, regulations or controls, judical orders, way increase the risk of damage to the Homesite, or the fire/flood or other natural disaster or casualty, breakage, Community, or any person. repairs and other causes beyond the reasonable control 3.3 You represent and warrant that the of the Community, will excuse the Community's information you have provided to us regarding you, other performance of these obligations for a period equal to members of your household or your mobilehome is true any such prevention, delay, stoppage or repair time. and correct. You also agree to promptly notify us, in Resident will remain responsible, without abatement or writing, of any change in this information. reduction for the rent, utilities and other charges per the 3.4 If Resident is living alone and wishes to terms of this agreement. The Community will use all share the Homesite with another person, for whatever reasonable efforts to reinstate or repair any services or reason, they may do so without extra charge in facilities, including utilities, which have been interrupted accordance with the provisions of the Mobilehome as set forth above. Note that we purchase our utilities Residency Law. This person will have such rights of from utility companies and we are not responsible for any Residency and use of Community facilities as approved defects in the quality or the service of these utilities by by the Community and must have an interview with the utility company. Community management and agree to abide by the 2.2 CHANGES IN STANDARDS OF Rules and Regulations of the Community and sign an MAINTENANCE, SERVICES, EQUIPMENT, OR amendment to the Rental Agreement written specifically PHYSICAL IMPROVEMENTS: for that purpose. The Community's general standards of maintenance, standards of maintenance of physical improvements in 4. ENTRY UPON RESIDENT'S HOMESITE: the Community, together with services (including utilities), The Community shall have the right of entry equipment and physical improvements within the upon the space which a Mobilehome is situated for Community may be changed from time to time as maintenance of utilities, for maintenance of the space provided or required by the Mobilehome Residency Law where the Resident has failed to maintain the space in and other applicable law . Any such rights granted to the accordance with the Rules and Regulations as provided Community due to any amendments, deletions or for in the Mobilehome Residency Law, and the modifications of the Mobilehome Residency Law or other protection of the Community, provided that the right of applicable law may be enforced by the Community. We the Resident to the use of the Homesite is not will use all reasonable efforts to keep the swimming pool unreasonably interferred with. The Community may enter and spa heated, common areas properly irrigated and the Mobilehome or Homesite without written consent of other facilities properly heated or cooled. In the future, the Resident in the case of emergency or when the however, the Community will have to abide by and Resident has abandoned the Mobilehome. GP-MHA-JAN 1991 1 (over) 5. INSPECTION: By signing this Agreement, Resi- condemnation proceedings are pending or the utility ident acknowledges that they have inspected the systems or other portions of the Community are or will be Homesite that they are renting, the Communities services affected by the condemnation to the point where, in our and facilities and have found them to be safe and as sole opinion, it is not economically desirable to continue represented by the Community, either orally or in writing, operations, we will have the right to terminate this and Resident accepts them as they are. Agreement as of the date the condemning authority takes possession. The entire amount of any award for taking 6. ALTERATIONS AND ADDITIONS: You agree not of all or any part of a Homesite or the Community or for to make any alterations, improvements, addi- any other reason under the power of eminent domain will tions or utility installations to, on or about your be our property whether such award shall be made as Homesite or mobilehome, nor install, remove or compensation for diminution in value of the leasehold or change any existing improvements, or modify the for taking the fee or the taking of any interest you may drainage or landscaping nor make any contract for have because of this Agreement or any other lease or such work without our prior written consent and rental agreement you have with us or your tenancy in the approval. In giving or withholding our consent to any Community. Nothing contained in this paragraph, such work, we may, at our option, take into account however, will preclude you from obtaining any award and base our agreement or refusal of consent entirely from the condemning authority to you for the loss of or upon aesthetic considerations and the compatibility of damage to your mobilehome or other removable such changes to the Community. If you fail to obtain personal property. our prior written consent and approval, all such alterations, improvements, additions or utility 11. ZONING, USE PERMIT AND OWNER installations shall be promptly removed by you, at your INFORMATION: The nature of the zoning which expense, upon our request. the Community operates is: . The Conditional Use or other permits required to operate the Community are 7. MAINTENANCE OF IMPROVEMENTS: not subject to expiration or renewal. Foothill Vista Mobile You are financially responsible to maintain your Home Park is not located on land we lease from mobilehome and all equipment, structures and other someone else. We do, however, have the right at any improvements to your homesite in good condition and time in the future to lease the land on which the repair and in an anesthetically pleasing condition at all Community is located to someone else. Should we do times. The foregoing includes, without limitation, the so, we will give you written notice of the expiration date following: your mobilehome, accessory equipment and of that new lease. The Fountains Mobile Home Park is structures, fences and landscaping. located on land we lease from someone else. The initial expiration date of that lease is June 20, 2009. There are, 8. INDEMNIFICATION: however, two (2) twenty (20) year options to extend this 8.1 The owner and Community shall not be lease (a total of forty (40) years) which we presently liable for any loss, damage or injury of any kind intend - but are not obligated to - exercise and if we do, whatsoever to the person or property of any Resident or the lease will not terminate until June 30, 2049. any of the employees, guests, invitees, permittees, or licensees of any Resident, or any other person 12. TRANSFER OF COMMUNITY'S INTEREST: whosoever, caused by any use of the Community or If we sell or otherwise transfer our interest in the space, or by any defect in improvements erected Community to anyone else, we will be automatically thereon, or arising from any cause whatsoever, unless relieved of our obligations under this Agreement which resulting from the negligence or willful act of the Owner occur after the date of the transfer; however, these or Community. obligations must be assumed in writing by the buyer or 8.2 Resident understands that there are transferee. variables inherent in a Mobilehome investment including the risks of obsolescence, changes in demand, location, 13. NOTICES: All notices required or allowed by this mobilehome maintenance, wear and tear, age, Agreement must be in writing and may be served technological advances, interest rates and terms, by any method then allowed by the law. You understand economic climate and development, neighborhood that any notice terminating your tenancy must be given to change and other factors beyond our control. The value you in writing in the manner described in §1162 of the of your Mobilehome may increase or decline in the California Code of Civil Procedure. The service of any future. Resident agrees to indemnify, discharge, release, other notice on you may be validly served if it is and hold the Community free and harmless against and personally served on you or mailed to you at your in the event of economic loss, diminution in market value, address in the Community by First Class United States or depreciation of the Mobilehome, its accessory Mail, postage prepaid. structures or equipment and other improvements, including lack of demand, which results in the future. This 14. WAIVER OF DEFAULT: If you fail to meet any of indemnification and release does not relieve the your obligations under this Agreement, a delay or Community of any legally-imposed duty of care as to omission by us in exercising any right or remedy we have injury or property damage (for example, physical damage because of your default will not impair any of our rights or we have a duty to repair or compensate Resident for). remedies against you, nor will it be considered a waiver by us of any right or remedy. No waiver by us of our right 9. INSURANCE: The Community does not carry to enforce any provision of this Agreement after any public liability or property damage insurance to default on your part will be effective unless it is made in compensate you, your guest, or any other person from writing and signed by us, nor will it be considered a any loss, damage, or injury except those resulting from waiver of our rights to enforce each and every provision situations where the Community would be legally liable of this Agreement upon any further or other default on for such loss, damage, or injury. You should obtain, at your part. Our acceptance of rent will also not be a your own cost, extended coverage for your mobilehome, waiver of any breach by you of any term or provision of fire, earthquake, and other casualty insurance on the this Agreement, including any rule, regulation or other mobilehome, other improvements and contents to the full term or provision contained in any document referred to insurable value, personal liability and such other in this Agreement. insurance as is necessary to protect you, your guest, or others from loss or liability. 15. ATTORNEY'S FEES: Attorney's fees and costs may be awarded to you or us per the provisions of 10. CONDEMNATION: If any portion of the Commu- the Mobilehome Residency Law, or other laws, including nity is taken under the power of eminent domain, changes to these laws which may occur in the future. or is sold to any authority having the power of eminent The same is true of any litigation between the two of us domain, either under threat of condemnation or while that is not covered by the Mobilehome Residency Law or other laws. 2 16. ' HEADINGS: The titles of the paragraphs and 23. EXECUTION:These General Provisions are signed subparagraphs in this Agreement or in other concurrently with the execution of the Rental documents or posted signs are only for convenience and Agreement and are effective on the same date as the under no circumstances are they to be considered as any Rental Agreement. PLEASE NOTE THAT ALL part of this Agreement. PERSONS IN RESIDENCE AT THE SPACE OR MOBILEHOME MUST SIGN THESE GENERAL 17. PARTIAL INVALIDITY: If any part of this Agree- PROVISIONS. ment or any document referred to in this Agree- ment is, in any way, invalid or unenforcable, the remainder The on-site Park Manager or Property Manager is of this Agreement or the other document shall not be authorized to sign this document and other documents affected, and will be valid and enforceable to the fullest you may receive in the future, on the Owner's behalf. extent permitted by law. The same is true if the application of any part of this Agreement, or any OWNER OR OWNER'S AUTHORIZED document referred to in this Agreement, is, in any way, REPRESENTATIVE: invalid or unenforcable to any person or circumstance. 18. LIENS AND CLAIMS: You will not allow any lien, claim or demand arising from any work of DATE: construction, repair, restoration, maintenance or removal done for you, or for your mobilehome or Homesite, to be enforced against us, and you will pay all liens, claims and HOMEOWNER'S: demands before any action is brought to enforce them. You agree to hold us free and harmless from all liability for any and all such liens, claims or demands. DATE: 19. HOLD OVER TENANCY: If you continue to live in the Community after the term of this Agreement has expired or been terminated per the termination paragraphs of this Agreement (including any extension of DATE: the initial term we agree to), and you have not signed a new rental or lease agreement with us, you shall be on a month-to-month tenancy. During any such month-to- month tenancy, you will pay all rent and other charges DATE: required by this Agreement and its terms shall continue to apply to you. We may, however, increase the rent or charges you pay or change any other terms of this Agreement upon 60 days'written notice to you. PERSON/S IN ADDITION TO THE ABOVE WHO WILL RESIDE IN THE HOMESITE. 20. MOBILEHOME REGISTRATION:You shall furnish us a copy of the registration card issued by the Department of Housing and Community Development for your mobilehome within 10 days after you receive it and DATE: within 10 days after receipt of each annual renewal thereof. 21. OPPORTUNITY TO REMEDY:If,at any time, you DATE: believe we have not fulfilled any legal obligation we may have to you or other Homeowners, you agree to immediately give us written notice specifying what you believe we have failed to do and indicating what you believe we have to do to fulfill these obligations. This notice shall be as detailed as possible so that we may fully understand your concerns. You agree that we will have at least ninety (90) days, or such longer period as is reasonably necessary, after receipt of your notice to remedy the problem/s you have identified in your notice. If we do remedy the problem/s within the time period allotted, you agree that we will have no liability whatsoever to you for any expense, cost, injury or damage you may have sustained. If you fail to promptly give us this written notice as soon as you are aware of any problem/s, or you fail to give us a reasonable opportunity to remedy the problem/s, we will have no liability to you for any expense, cost, damage or injury which you may sustain as a result of the problem/s. If we fail to remedy the problem/s within a reasonable period of time after receipt of your written notice, the problem/s will be subject to Reference per paragraph 22. below. 22. RESOLUTION OF DISPUTES: It is agreed that any problem or dispute between us with respect to this agreement and your tenancy in the Community will be submitted to a General Reference per California Code of Civil Procedure Section 638. The "Referee" will be a retired judge who shall have the power to decide all Questions of law and fact. Each of us shall share equally the cost of Reference and we agree to have any dispute decided by the Referee, not a jury. Resident's Initials: GP-MHA-JAN 1991 3 trimmed, watered, and fertilized and all weeds and debris kind on any car, other vehicle, boat trailer or motorhome removed. To avoid damage to underground wiring or may only be done in the RV storage lot, or other areas plumbing, Resident must have Community's consent before designated by management. All major repairs must be done digging or driving rods or stakes in the ground. Resident outside of the Community. Cars and other vehicles may only shall bear the cost of repairs to any utilities or property be washed in the area provided, not on the Residents space damaged by Resident. Any plant which creates a or street. Vehicles dripping gas or oil must use a drip pan or detrimental spreading problem such as bamboo, rice paper the vehicle must be removed from the Community to plant, horse tail, etc. may not be planted. prevent damage to driveways. Drippings must be removed 12 ACCESSORY EQUIPMENT, STRUCTURES AND by the Resident and repair of damage to driveway is the APPLIANCES: responsibility of the Resident.Vehicles shall be driven slowly Prior to commencing any installation of or a change and safely and the posted speed limits and other traffic and in accessory equipment and structures or installation of or a parking control signs obeyed. Motorcycles, mopeds, change in accessory equipment and structures or motorbikes and other simular two (2) and three (3) wheeled installation of or Change in any appliance which is Vehicles are not permitted to be ridden in Foothill Vista connected to the gas, electric or water supply, Resident Park. In The Fountains Park these vehicles may be ridden must have Owner's approval. The installation or changing of only to Residents space by most direct route. appliances, accessory equipment and structures by 15. LAUNDRY: Resident shall be completed in a timely manner. Only Residents must leave the laundry room clean and manufactured accessory equipment and structures and neat. Machines are to be wiped off, lint traps cleaned and appliances are permitted and no such "homemade' other debris swept up and disposed of. Drying lines are not equipment, structures or appliances may be installed. Only to be used on Sundays and Holidays. one (1) storage shed of legal size, made of aluminum with 16. HITCHES: baked enamel finish or matching siding of the mobilehome All new mobilehomes must have detachable hitches is permitted. Where it is legal and with the Community's which are removed and stored under the mobilehome. All approval a second shed may be installed providing the total existing non-detachable hitches must be covered with park square footage of both sheds does not exceed the total approved material. permitted by code. Any skirting or awning posts that are 17. GARBAGE AND REFUSE DISPOSAL: missing or dented must be replaced immediately. The Each mobilehome shall be equipped with a mechan- temporary redwood steps usually furnished or loaned by ical garbage disposal which is maintained in a good dealers may be used only during the first thirty (30) days of operating condition. Refuse such as bone, corn husks, etc occupancy. Window air conditioners are not permitted. which cannot be disposed of in the garbage disposal must Central type gas or electric air conditioners are permitted. be wrapped thoroughly before placing them in the trash bins Prior approval of the Community, however, must be provided in designated areas in the Community. All garbage, obtained before installation because of amperage trash and other refuse must be deposited in the trash bins, requirements for a particular space. Only certain types of not in the areas surrounding these bins. water coolers may be installed as approved by the 18. FOR SALE SIGNS AND COMMERCIAL ACTIVITY: Community, except as replacements for existing water Automobiles,trailers, etc. and other property may not coolers. No fences or walls may be installed in the be advertised in the Community , except for designated Community without the consent of the Community. Existing bulletin boards. Resident may, however, advertise the sale fences or walls shall be maintained in good condition and of there mobilehome in accordance with laws then in effect. repair. Resident may install one television antenna at the 19. PETS: rear of the mobilehome which is a maximum of six (6)feet in Pets, other than birds, fish, etc. are not permitted. If height. No other antenna may be installed without approval a guest brings a pet into the Community, the pet must be of the Community. Only certain types of antenna are quiet and confined to an automobile or the Residents home. permitted in The Fountains North Section per city ordinance. No pets may be walked in the Community or be allowed to See Community manager for details. Resident is required to stay overnight. maintain in good condition and repair all accessory 20. PARAGRAPH HEADINGS: equipment, structures and appliances which are presently The headings and titles of the paragraphs within installed or may be installed on the space. This obligation these rules and regulations are included for purposes of includes replacement of any such items which are missing convenience only, and shall not effect the construction or or are damaged to the point that they cannot be reasonably interpretation on any of the provisions and policies. repaired. This also includes the repainting of the 21. APPROVAL: mobilehome, accessory equipment, structures and The words owner and Community have been used appliances when they are reasonably in need of repainting. interchangeably and have the same meaning. The on-site All such items shall be in accordance with all applicable Community manager is authorized to sign all required laws, regulations or codes. If Resident voluntarily approvals on behalf of the Owner. undertakes to make a change or addition to Residents space without approval and those changes or additions do I have read the above Rules and Regulations and agree to not comply with Community regulations or applicable laws abide by them: and codes, they may be required to remove them at their cost. All awnings must be of manufactured aluminum. No curbs, sidewalks, patio's, etc. may be painted without RESIDENT: DATE approval of the Community. 13. PARKING: No parking of passenger car or other vehicle is permitted on the Community streets (State Safety Code for RESIDENT: DATE streets the width of those in the Community). Workmen who need their tools, etc. may park on the streets only for the time it takes to make the necessary repairs or maintenance. Other vehicles may park on street only for loading and RESIDENT: DATE unloading. Residents may only park cars and other vehicles in their driveway. No large overhead campers,travel trailers, boats or boat trailers, motorhomes or other similar vehicles may be parked on Residents space. Guests may only park in designated guest parking areas or on the host Residents space. Residents may not park in areas designated for guests, except to make room for guests in their driveway. We are required to provide two (2) parking places per space. If a Resident has more than two (2) vehicles and all of those vehicles will not fit in the driveway, then the Resident must make other arrangements for the extra vehicles. 14. VEHICLES: Minor maintenance, repair or other minor work of any RR-MHA-JAN 1991 2 • Foothill Vista Mobile Home Park The Fountains Mobile Home Park 840 East Foothill Boulevard 3530 Damien Avenue Azusa, California 91702 La Verne, California 91750 Phone: (818) 334-1134 Phone (714) 593-4131 RULES AND REGULATIONS 1. INTRODUCTION: twenty (20) consecutive days or thirty (30) days in a These Rules and Regulations have been designed calendar year. Any guests staying longer than that period to encourage Residents to cooperate with the Owner and will be required to apply for, and be approved for Residency promote the enjoyment and convenience of all Residents and sign the Residency Documents. Guests under the age alike in the Community and to protect the property of both of eighteen (18) may not remain in the community for more Residents and the Community. than fourteen (14) consecutive days or a total of thirty (30) 2. USE OF FACILITIES: days in a calendar year, except for special circumstances as Residents and Guests are extended the right to use approved in writing by the Community. the premises and Community facilities provided they abide 8. HOME SIZE AND CONDITIONS: by theses Rules and Regulations and other conditions of Unless owner consents, only new mobilehomes will Residency._Only Residents and their guests may use the be permitted to move onto any empty space in the Community's recreation and other facilities. Community or be used as a replacement for a mobilehome 3. OCCUPANCY: that is being removed from the Community. Only double- Resident acknowledges and understands that this wide mobilehomes will be permitted to be moved onto a Community is a community for"Older Persons". At least one space unless size of space will not permit. Double-wide person residing in the Mobilehome and Homesite must be at means either 24ft or 20ft wide, the largest of which is to be least 55 years of age. Other person or persons must be at selected if possible. All mobilehomes moving into the least 18 years of age. You understand that you may be Community shall be at least forty (40) feet long. Any used required to provide written proof of age. mobilehome that the Owner might permit to move into the 4. CONDUCT: Community must be in excellent condition and the condition Actions of any nature which disturb the reasonable approved by the Owner. Unless Owner consents, all new or peace and quiet of others are not permitted. Radios, used mobilehomes coming into the Community must be: (A) televisions, record players, musical instruments and other skirted with brick or masonry skirting on the street side equipment must be used so as not to disturb others. Such (front) of the mobilehome and a minimum of one foot on equipment (including noisy air conditioners) is to be turned carport side and through the steps on the patio side and full down or off after 10:00 PM or before 7:00 AM. Motorized or porch on front entry homes. (B) skirted on the remainder of noisy maintenance or repair equipment is not to be used the home shall be matching masonry or skirting matching before or after the above hours. Persons shall not trespass the siding of the mobilehome. (C) any mobilehome with front on any Residents space or on any area which is not open entry must have a front porch (minimum 6ft wide) and must for general use by Residents and their guests. All of the have awnings across the full width of the front ( including Community's property which is not open for the use of driveway). (D) all new mobilehomes must have full length Residents and guests, included but not limited to gas, awnings on the carport side unless lot will not accommodate electric, water and sewer connections and other equipment it, otherwise at least 75% of the length of the mobilehome. connected with utility services, tools and equipment shall be Three band unitizing or approved matching fascia on the avoided and not used, tampered or interferred with in any outer edges of all awnings. Guttering must be installed on all way. Soliciting or peddling or the distribution of any literature side roof lines where there are no awnings or eaves. Before is not permitted without consent of the Community. any new or used mobilehome comes into the Community 5. COMMUNITY FACILITIES IN GENERAL: the lot shall be cleared and excavated so that the Community recreation and other facilities hours are mobilehome will set as low as possible, as sewer drop will posted. Residents are required to comply with the permit. All concrete slabs will be removed so that entire restrictions on the use of the facilities which are posted in mobilehome will be set on common ground. All costs for lot and about these facilities.ALCOHOLIC beverages may not preparation shall be paid by the mobilehome dealer or be brought to or consumed in any recreation or other area of Resident. No mobilehome say be set that exceeds the the Community which is open to Residents and guests, electric current capacity of the particular lot. without the consent of the Community. Food or drink is not 9. CHILDREN: allowed except in kitchen and dining rooms or other All children must be accompanied by a Resident at designated areas except for authorized parties. No furniture, all times (including when children are bike riding, walking or equipment or other items provided by the Community for otherwise on the streets or entering other Residents yards). use in the facilities may be removed without the consent of No ball playing, frisbee throwing, playing catch or excessive the Community. No bare feet or wet or dry swim wear, noise is permitted. No roller skate, skateboards, etc. undershirts, tank tops without sleeves (except for exercise permitted in the Community. Children under eighteen (18) class members, then only during class) permitted in may not use any of the Communities game, exercise or recreation hall (including pool room). Shirts and normal recreational equipment except the swimming Pool as streetwear are required. indicated above. 6. SWIMMING POOL AND HOT POOL AREAS: 10. LOT MAINTENANCE AND APPEARANCE: Footwear must be worn to pool area. Manufactured Residents shall maintain their space and swim wear only, no cut off jeans, etc. may be worn in the mobilehome and all landscaping, structures and other things pools. Swimmers must shower before entering pools. If attached or placed thereon in a neat, clean, attractive and indoor showers are used, please dry thoroughly before well kept manner. Wheels and hitches or ladders are the entering and leaving dressing rooms. When lounges or only things that may be stored under the mobilehome. chairs are used please return them to their proper place Except upon any cloths lines which are provided by the before leaving. When using lounges and chairs in swim Community for that purpose, nothing, including laundry is to wear please cover with towels to preserve the webbing. be hung out to dry or air any place on the space or within Please read and comply with all rules posted on the side of the Community. Only standard type patio furniture and a building or in hot pool room. No one under sixteen (16) plastic trash can (which is to be used for storage of leaves years of age may use the hot pool at any time. HOT POOL and other similar gardening debris) are permitted to be MAY NOT BE USED AT ANY TIME WITHOUT A stored or located outside of the mobilehome or storage COMPANION. Children may only use the swimming pool shed. Resident shall remove from the street all dirt and between the hours of 11:00 AM and 2:00 PM. Both other debris coming from Residents space. Resident is swimming pool and hot pool hours are 8:00 AM to 10:00 PM responsible for arranging for the care and maintenance of unless otherwise posted. their mobilehome and space when Resident is on vacation 7. GUESTS: or otherwise absent from the Community. Residents are responsible for the conduct of their 11. LANDSCAPING: guests and invitees at all times. Guests must be Prior to commencing any landscaping, including accompanied at all times by a Resident when in any of the changes to existing landscaping, Resident must obtain Community's recreation or other facilities. All guests must Community approval. All landscaping shall be completed in register with the Community if they stay more than a total of a timely manner. All landscaping shall be kept mowed, RR-MHA-JAN 1991 i love EXHIBIT E Caravan Lease LEASE AGREEMENT THIS LEASE AGREEMENT SHALL BE EXEMPT FROM ANY ORDINANCE, RULE, REGULATION OR INITIATIVE MEASURE ADOPTED BY ANY LOCAL GOVERNMENTAL ENTITY WHICH ESTABLISHES A MAXIMUM AMOUNT THAT A LANDLORD MAY CHARGE A TENANT FOR RENT. 1 . PARTIES AND TERM: This Lease Agreement between CARAVAN MOBILE HOME PARK (Park Owner) and is for the lease of space for a period of 60 months beginning and ending The tenancy may however be terminated earlier by Park Owner but only in accordance with the provisions of the Mobile Home Residency Law and other applicable law. The term of this Agreement include this Lease Agreement, Park Rules and Regulations and other residency documents that now apply to homeowners tenancy. 2 . RENT AND RENT ADJUSTMENTS: The base rent for homeowner space will initially be Dollars ($ )per month. The base rent will be increased on and on the same date of each subsequent year, (the "rent adjustment anniversary date"), by 5% or an amount equal to increases in the Consumer Price Index ("CPI") whichever is greater,plus capital improvements. Increases in government required services and property taxes will also be periodically added to the rent. Homeowners shall continue to pay for water, trash, natural gas, electricity and if applicable, R.V. storage. These rent increase calculations are explained below. Reference is also made to rental adjustments pursuant to paragraph 9. 1 A. COST OF LIVING ADJUSTMENT: The cost of living portion of the rent increase will be calculated as follows: the Consumer Price Index that will be used will be the "Consumer Price Index for all urban consumers, Los Angeles, all items (1982-1984=100)." If the CPI increases by more than 8%, then 75% of the increase over 8% will be added to the rent. However in no event will the total amount of percentage increase in rent exceed 15% of the CPI increase. If the Index is changed so that the base year differs from that used in this Agreement, the Index shall be converted in accordance with the conversion factor published by the U.S. Department of Labor Bureau of Labor Statistics. If the Index is discontinued or revised during the term of this Agreement such other governmental index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinue or revised. B. GOVERNMENT REQUIRED SERVICES: Actual increases or decreases in the cost of government required services over those in previous calendar years may be passed on as an annual increase on a pro-rata basis. Government required services include without limitation changed services which the Park Owner is required by government to provide or does provide to homeowners or the Park, fees, bonds, assessments, charges or other costs and expenses for electricity, hot water, sewer, trash pick up and trash bin rental, and utilities provided by the Park. C. PROPERTY TAXES: If Park Owner's property taxes increase, then the amount of the increase will be passed on at the time the increase occurs on a pro-rata basis. The term property taxes are all general and special real estate taxes, personal property taxes, bonds, fees, charges and surcharges and assessments, including any taxes, assessments or charges on offsite or onsite improvements, or in lieu of real property taxes including any costs or taxes resulting from any change in assessed 2 value. Property taxes also includes any gross receipts or excise tax on rents or any such other tax however described which is levied or assessed against Park Owner. D. CAPITAL IMPROVEMENT ASSESSMENTS: The term "capital improvements" is defined to include all items which may be claimed as capital improvements pursuant to either federal or state income tax laws and regulations. The "cost"of capital improvements shall be the actual cost of the improvement. To the extent that Park Owner incurs expenditures for capital improvements, such expenditures, together with interest at the rate of 10% per annum may be recovered through rental increases amortized in the equal monthly payments over a period of five years. E. SERVICES TO BE PROVIDED BY THE PARK FOR THE HOMEOWNER DURING THE TERM OF THIS AGREEMENT UNLESS CHANGED: Service: Charge: Trash Pick-up $9.27 F. FACILITIES TO BE PROVIDED BY PARK FOR THE HOMEOWNER DURING THE TERM OF THIS AGREEMENT UNLESS CHANGED: 3 G . LATE PAYMENT: Twenty-five Dollars ($25.00) after the fifth (5th) day of the month. Additional late charges will accrue for each succeeding delinquent month. Returned check charge (NSF) will be Twenty Dollars ($20.00). H. UTILITIES: Paid by Tenant Park Will Included Directly to Bill Tenant Un- in Rent Utility Company , Monthly , available Natural Gas: X Electricity: X Water: X • Cable T.V.: X Trash: X Sewer: X R.V. Storage: X Other: X Utilities are due and payable the first day of the month following receipt of the bill. Utility rates for utilities billed to homeowner are set by the Public Utilities Commission and other governmental agencies. Therefore charges for these utilities may be increased at any time in accordance with the rates established by these parties and no advanced notice of increases in these rents will be given. Should the Park Owner elect to submeter a utility service included in the rent, the annual rent will be reduced by an amount equal to the previous 12 months utility costs less a percentage attributable to the common area. Said percentages to be determined by the Park Owner. If the cost of a utility is included in the current space rent and if utility rates are increased by the Public Utilities Commission or the City of Azusa, only the actual documented 4 Public Utilities Commission or City of Azusa approved increase may be allowed in the annual pass through. I. SECURITY DEPOSIT: Dollars ($ ) The above stated security deposit is due on or before initial occupancy. If tenant has timely paid rent for a period of 12 consecutive months after posting the security deposit and has otherwise performed all of the required obligations under this Lease, the security deposit shall be returned upon receipt of tenant's written request, without interest at the end of such 12 months. Provided, however, that the landlord may in its discretion require a new deposit equal to one month's rent upon assignment of a Lease Agreement pursuant to the terms of this Lease Agreement if the original deposit has already been refunded pursuant to this Section. J. GUEST FEE: Extra persons who reside in Park for more than 30 days in any calendar year must register with the Manager and there will be a charge of$25.00 per month per person. K. INFORMATION CONCERNING THE MOBILE HOME WHICH PRESENTLY OCCUPIES OR WILL OCCUPY THE SPACE WHICH IS THE SUBJECT OF THIS AGREEMENT IS AS FOLLOWS: (i) Legal Owner's Name: Address: Telephone Number: 5 (ii) Registered Owner's Name: Address: Telephone Number: (iii) License or Decal Number: (iv) Make of Mobile Home: (v) Model of Mobile Home: (vi) Year of Manufacturer: (vii) Vehicle I.D. Number: 3 . TERM THIS AGREEMENT WILL BE IN EFFECT: This Agreement shall begin on the date set forth on the front page of this Agreement and will continue for the number of months thereafter set forth on the first page of this Agreement. Tenant shall have 72 hours from execution of this Agreement to cancel this Agreement by delivering to Park Owner a written cancellation of this Agreement. 4 . RENT: Tenant shall pay the rent set forth in paragraph 2 on the first day of each month. On the rent anniversary adjustment date, the amount of rent due will be changed as set forth in paragraph 2. Tenant agrees to pay the Park rent set forth in this Agreement without setoff or deduction whatsoever. Payment will be made to the Park Office, or such other location as the Park may designate from time to time. Rent day ends at 12:00 noon. 6 5 . PARK RULES: The Park rules are incorporated herein by reference as though fully set forth at this point. Tenant agrees to comply with all Park rules that now exist and such additional rules as may be promulgated by the Park from time to time accordance with the Mobile Home Park Residence Law or any other law now in effect or as amended. 6 . MOBILE HOME PARK RESIDENCY LAW: Tenant hereby acknowledges receipt of the Mobile Home Park Residence Law, a part of the Civil Code of the State of California. Terms and provisions of the Mobile Home Park Residency Law are specifically made a part of this Agreement and are incorporated herein by reference as though fully set forth at this point. 7 . CHANGES IN RULES, STANDARDS OF MAINTENANCE, SERVICES, EQUIPMENT, OR PHYSICAL IMPROVEMENTS: The Park's Rules and Regulations, standards of maintenance of physical improvements in the Park,together with services, (including utilities),equipment and physical improvements within the Park may be changed from time to time in accordance with the Mobile Home Park Residency Law. 8. RENTING OR SUBLETTING: Tenant shall not sublease or otherwise rent all or any portion of tenant's mobile home or the premises. 9. ASSIGNMENT OF LEASE BY TENANT; TERMINATION OF TENANCY BY TENANT, RIGHT TO INCREASE TRANSFEREE'S RENT: 7 Tenant may assign the Lease for the space,provided he is otherwise in compliance with the Lease Agreement and Rules and Regulations, not in default on the rent, and he complies with paragraph 10 of this Agreement. If the Lease Agreement is assigned, Park Owner shall have the right to increase the base rent. However, tenant shall have the right,prior to assigning the subject lease pursuant to this Section, to make written requests upon Park Owner to provide a written quote on the increase in the base rent to be effected upon assignment. Park Owner agrees to provide a binding quote on the rent increase to be effected upon assignment pursuant to these provisions within thirty (30) days of the request. 10. TERMINATIONS BY TENANT: Tenant may terminate this Agreement by giving at least 60 days advance written notice and vacating the space. If the tenant is one individual, this Lease shall terminate upon the death of tenant. If two persons constitute tenant, this Lease shall survive the death of one such tenant but shall terminate upon the death of the second of such tenants to die. 11. APPROVAL OF PURCHASER AND SUBSEQUENT RESIDENCE: Homeowner may sell his Mobile Home at any time. The Park is required by law to allow such sale under state law. Homeowner must however immediately notify the Park in writing of homeowner's intent to sell his Mobile Home. If the prospective buyer of the Mobile Home intends for the Mobile Home to remain in the Park, or for the buyer to reside in the Park, said buyer must (1) complete an application for tenancy; (2) be accepted by the Park; (3) execute a Rental Agreement or other Agreement for occupancy of the premises; and (4) execute and deliver to the Park a copy of the Park's then effective Rules and Regulations. If the buyer fails to execute a Rental Agreement he shall have no rights of tenancy. 8 These same requirements for completion of an application approval by the Park and the execution of documents shall also apply before any person other than the ones listed shall be permitted to become a tenant or resident of the Park. The Rental and other Agreements and Rules and Regulations signed by the new tenant or resident may be different in their terms and provisions from this Agreement and other Agreements and Rules and Regulations now in effect. 12. REMOVAL OF MOBILE HOME: The Park may at its option in order to upgrade the quality of the Park,require the removal of Mobile Homes from the premises in accordance with the provisions of the Mobile Home Park Residency Law and other applicable law. Any rights granted the Park due to amendments, deletions or modifications of the Mobile Home Park Residency Law and other applicable law may be enforced by the Park. 13. TERMINATION OF TENANCY BY PARK: This Lease at the sole option of the Park may be terminated and/or the tenancy may be terminated and/or tenant's right to possession terminated in accordance with the provisions of the Mobile Home Park Residency Law and other applicable law. Any such rights granted the Park due to any amendments,deletions or modifications of the Mobile Home Park Residency Law and other applicable law may be enforced by the Park. 14. HOLD OVER TENANCY: If Tenant without the Park's consent remains in possession of the premises after the expiration of the term of this Agreement and has not executed a new Agreement with respect to the premises, said possession of tenant shall be deemed month-to-month tenancy terminable in accordance with the provisions of paragraph 12 of this Agreement. In such event the Park may, on lawful notice, increase the rental rate charged by tenant by any amount the Park in its sole discretion deems appropriate. 9 • 15. ENTRY UPON TENANT'S SPACE: The Park shall have a right of entry upon the land upon which a Mobile Home is situated for maintenance of utilities, maintenance of premises if the occupant fails to do so and the protection of the Mobile Home Park at any reasonable time,but not in a manner or at a time which would interfere with the occupant's quiet enjoyment. The Park may enter a Mobile Home without the prior written consent of the occupant in the case of any emergency or when the occupant has abandoned the Mobile Home. Tenant hereby releases Park Owner from any responsibility from injuries or damages occurring upon the premises or nearby streets and from claims from damages that may be caused from re-entering and taking possession by management under these conditions or conditions of the Rules and Regulations. 16. INSPECTION OF THE PREMISES: By signing this Agreement tenant has acknowledged that tenant has carefully inspected the space to be rented and all the Park's facilities and has found them to be in every respect as represented by the Park either orally or in writing and to the extent that they are not exactly as represented, accepts them as they are. 17. SITE MAINTENANCE: The Park may charge a reasonable fee for services relating to the maintenance of the land and premises upon which the Mobile Home is situated in the event tenant fails to maintain such land or premises in accordance with the Rules and Regulations of the Park after written notification to the tenant of the failure of the tenant to comply within 14 days. The written notice shall state the specific condition to be corrected and an estimate of the charges to be imposed by the Park if the services are performed by the Park or its agent. 10 18. SALE OF PARK: Homeowner's rights under this Lease shall survive the sale of the Mobile Home Park owned by Park Owner, and shall be binding upon and shall inure to the benefit of the Park Owner, Park Owner's successors and assigns. 19. TENANT MEETINGS: The Park's management shall meet and consult with tenant's upon written request either individually, collectively or with representatives of a group of tenants who have signed a request to be so represented on the following matters: (A) Amendments to Park Rules and Regulations; (B) Standards for maintenance of physical improvements in the Park; (C) Additions, alterations or deletions of service equipment or physical improvements; and (D) Rental Agreements offered pursuant to Section 798.17. Any collective meeting shall be conducted only after notice has been given to all requesting tenants 10 days before the meeting. The Park shall set the date,time and place of the meeting. 20. ALTERATION OF THIS AGREEMENT: This Agreement may be altered only by written Agreement signed by both of the parties or by operation of law. 21. EFFECT OF THIS AGREEMENT: Tenant agrees that this Agreement contains the entire Agreement between the parties regarding the rental space within the Mobile Home Park. All prior negotiations or stipulations concerning this matter which preceded its execution are conclusively deemed to have been superseded by this written Agreement. 11 22. WAIVER: No delay or omission in the exercise of any right or remedy of Park Owner on any default by Homeowner shall impair any such right or remedy or be construed as a waiver. No waiver by Park Owner of his right to enforce any provision hereof after any default on the part of Homeowner shall be effective unless made in writing and signed by Park,nor shall it be deemed a waiver of Park Owner's right to enforce each and all provisions hereof upon any further or other default on the part of homeowner. The acceptance of rent hereunder shall not be or become construed to be a waiver of any breach of any term or provision of this Agreement or any rule, regulation, term or provision contained in any document referred to in this Agreement, nor shall it reinstate, continue or extend the term of this Agreement or affect any notice, demand or suit hereunder. 23. ATTORNEY'S FEES AND COSTS: In any action arising out of tenant's tenancy this Agreement or the provisions of the Mobile Home Residency Law,the prevailing party shall be entitled to reasonable attorney's fees and costs. A party shall be deemed a prevailing party if the Judgement is rendered in his favor or where the litigation is dismissed in his favor prior to or during the trial unless the parties otherwise agree in the settlement or compromise. 24. TIME OF THE ESSENCE: Time is of the essence of this Agreement. 25. INTERPRETATION: Each provision of this Agreement is separate, distinct and individually enforceable. In the event any provision is declared to be unlawful or unenforceable the validity of all other provisions shall not be affected. 12 26. GOVERNING LAW: This Lease Agreement shall be construed and enforced in accordance with the laws of the State of California. 27. CAPTIONS: The paragraph headings of this Lease Agreement are for convenience and reference only and are not to be considered in construing the Lease Agreement. 28. PARK OWNER: The Owner of this Mobile Home Park is (address). 29. ACKNOWLEDGEMENT: Tenant (which includes each of the people set forth above), acknowledges that they have read, understood and received copies of this Agreement, together with a copy of the Park Rules and a copy of the Mobile Home Park Residency Law, and further, that they have read and understood each of these documents. Tenant understands that by executing this Agreement they will be bound by the terms and conditions thereof. TENANT ACKNOWLEDGES THAT THIS AGREEMENT DOES NOT CONTAIN TERMS OR CONDITIONS WITH RESPECT TO INITIAL CHARGES FOR RENT, UTILITIES OR INCIDENTAL SERVICE CHARGES OTHER THAN WOULD BE OFFERED TO TENANT ON A MONTH-TO-MONTH BASIS. TENANT ACKNOWLEDGES THAT MANAGEMENT HAS NOT REQUIRED TENANT TO PURCHASE RENT OR LEASE GOODS OR SERVICES FOR LANDSCAPING FROM ANY PERSON, COMPANY OR CORPORATION. 13 Tenant further acknowledges being offered a Rental Agreement for a term of 12 months, month-to-month, or longer than month-to-month but less than 12 months. Tenant has agreed, however, to accept a longer term provided for in this Agreement. Dated: PARK OWNER Dated: TENANT Dated: TENANT 14 EXHIBIT F Park Owners Comments MOBILE HOME ASSOCIATES 3530 DAMIEN AVE. • LA VERNE,CALIFORNIA 91750 490 E.FOOTHILL BLVD. • AZUSA,CALIFORNIA 917t* Roy Bruckner Directory of Community Developement City of Azusa 213 E . Foothill Blvd . Azusa , Ca . 91702 Re: Foothill Vista Mobile Home Rent Ordinance 12 November 1991 Dear Roy , Thanks for your quick response in sending me a copy of the rent ordinance submitted by the tenants committee . I have read the copy and will give you my commentary below. First tho I would like to comment that it was my understanding that at the conclusion of the workshop on Sept . 24th that this additional time was given to give the owners and residents one more chance to resolve their situation . That if that could not be accomplished that the Council would be inclined to pass the ordinance as submitted by the City Administrator . That because of other pressing matters this matter would not be continued further . This apparently has not happened . I , also , did not understand that this time was to provide the residents an opportunity to generate and submit a counter ord- inance of their own . If this submittal is accepted then it seems only fair that the owners be permitted time to properly prepare their arguments . This would increase the time for clearing this matter . My following commentary is more of a comparison between the ordinance submitted by the City Administrator , based on the La Verne ordinace and the one submitted by the tenants committee. My comment- ary does not cover any of the detail workings or criteria for reviewing rents thru a board or thru arbitration but only the general concept of the proposal . GENERAL The one submitted by the tenants committee seems to obviously be slanted in favor of the residents rather than the reasonably fair one submitted by the city . There is no mention of an RAA from the city having the authority and requirement to approve an increase that is within an established set of fair criteria . All increases would have to be approved by a board who would have sole prerogative to say what is fair . There are several sections that seem to be in conflict with or are completely addressed under the provisions of the Calif . Civil Code . There are some sections that could be and probably would be open to legal challenge . It has been my observation that the Council does feel an obligation to help in this process and provide a fair ordinance, barring another solution , but with minimal or reasonable cost to the city . I do not feel that this proposed ordinace will do that . 1 RENTAL REVIEW BOARD The proposed ordinance sets up a 7 member board , cumbersome by its very size , with a very small percentage of owner representaion . "Public members" , with very little knowledge of circumstances and no personal interest can easily be persuaded against a " landlord" when dealing with resident/landlord issues . This ordinance also provides for compensation for the board , apparently on a continueing basis , Who pays? EXEMPT LEASES (b) This section is not acceptable . There is no reasonable reason why an agreement by 2/3 of a population would not be acceptable to a government body . This is self serving to the residents and could at sometime in the future even impact our park . BASE RENT This is simply a roll-back . There is no provision for an adjustment between Dec . 1990 and the effective date for cost of living increase . SPACE RENT AGREEMENTS This subject is covered completely by the Calif . Civil Code . The law states what type of agreements an owner must offer to a perspective resident . There are no provisions in the law that require an owner to also offer an additional choice of city administered rent stabil- ization . PERMITTED RENT INCREASES (b ) Provides for a $10 . 00 fee per space for rent increase , any increase, to be borne totally by the owner with not even a portion passed thru . That means the owner must always pay in order to get even a fair increase. The residents will counter that they have to pay a fee for application for a rent decrease . This is another subject and will be further addressed . PERMITTED RENT DECREASES This is a new twist . This does provide for a $ 10 . 00 fee for application . This does not provide for a fee during the first 6 months of the ordinance . This same provision is , indeed , also provided for the owner for rent increases . This does , however , set up a condition where in addition to the roll-back , the residents also have 6 months to apply for additional rent decreases without fee. The first 6 months of this ordinance could be spent by the board reviewing rent decrease applications , which could be numerous . The owners would have to spend most of their time defending their existing rents , let alone having time to make applications for rent increases . This 6 month grace period for fees is weighted heavily in favor of residents . Once a base rent is established it is unreasonable to provide a procedure for residents to apply for additional rent decreases . The provision in the City proposed ordinance is quite adequate to provide for reduction in services to a space. 2 VACANCIES This is the sort of vacancy control that has been challenged and overturned in other communities . The statement that vacancy control is necessary to permit existing residents to more easily sell their homes and protect their investment is one sided . There is another side . Homes , typically , even those on real property , do not appreciate very much . Only the land appreciates . Mobile homes appreciate in value only because they are situated on a space in a park which the home owner does not own . The value of the mobile home is inflated because of this . The mobile home owner wishes to take advantage of this without compensation to the land owner . If a resident has been in the park for a long time this profit on the home is sometimes quite substantial . I have yet to see a mobile home owner offer to share their profit with the park owner . The only income to the owner is thru the rental of the space . The owner deserves the right to bring his rent on that space to a fair market value upon turn over . I do realize that there is a section here that permits the Council to suspend this provision . Again , the Civil Code covers circumstances for transfer of ownership within a family or an estate . REASONS FOR TERMINATING The Calif . Civil Code quite adequately covers reasons for terminating a residency or agreement . I feel that this proposal is unreasonable and , again , self serving to the residents . I urgently request that the Council not consider this proposal . If in the end , even tho we do not want rent stabiliz- ation in any form, if it seems there is no other solution , then we can at least live with the ordinance submitted by the city . Sincerely, %n 4-1 Robert L . Clifford General manager 3