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HomeMy WebLinkAboutAgenda Packet - September 24, 1991 - CC AGENDA ITEM e '41 It City Administrator gialigEfigi OF AZUSA p18)334 25 T TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: HENRY GARCIA, CITY ADMINISTRATORfV DATE: SEPTEMBER 23, 1991 SUBJECT: MOBILE HOME RENT STABILIZATION ORDINANCE In accordance with the City Council's directive, the City Attorney has drafted a rent stabilization ordinance for the Council's consideration. The model used for this proposed ordinance was the City of La Verne's. In previous reports to the City Council, reference has been made to La Verne's ordinance for possible consideration in Azusa, if rent stabilization is desired. La Verne's ordinance is attractive due to several reasons: 1. It provides for several levels of rent review. 2. It uses a mediation process allowing participation by both tenant and owner representatives in decisions on proposed rent increases. 3 . The final step in the process is arbitration. 4. Of the cities surveyed, La Verne had the lowest cost associated with program administration and legal fees. The attached document marked Exhibit B is the proposed ordinance with a detailed explanation of its implementation. Exhibit A is a graphic representation of the proposed rent stabilization process. Briefly, the proposed process is summarized as follows: 1. A Rent Arbitration Administrator (RAA) position would be established. 2. Existing rents would be rolled back to October 1990 levels to establish "base rents". Exceptions would be: A. Spaces under a written lease agreement in existence Oct. 1, 1991, until the lease expires. 94v/9/ ■s 213 East Foothill Blvd., P.O. Box 1395, Azusa, California 91702-1395 B. Spaces subject to certain leases which comply with Section 798.17 of the State Civil Code, until those leases expire. C. Rent agreements meeting certain criteria for the duration of those agreements. 3 . Space rents cannot be increased in excess of the CPI or 7% whichever is less, without approval. 4. A Park Owner may apply to the RAA for a rent increase, which shall be approved by the RAA if certain criteria are met. 5. If the rent increase is denied, a park mediation committee would negotiate a rent increase. The committee would be comprised of 2 tenant representatives of the affected Park, 2 owner representatives, with a 5th member appointed by the first four members. 6. If mediation fails, the Owner may file for arbitration. The RAA would select the arbitrator. 7 . An Owner would be allowed to increase rents to market rate when a space becomes vacant. This is consistent with recent court decisions. The merits of this proposed ordinance will be discussed in a workshop session with the City Council tonight. In the interest of maintaining a balanced perspective, the Western Mobilehome Association, representing the Park Owners' viewpoint has been notified of the meeting. Recommendation The City Council should consider input from the public and take action as it deems appropriate. Exibit A RENT STABILIZATION PROCESS I i8T LEVEL I 2."d LEVEL I 34` t FVat..... RE.�rT'S - owNER AFPLIas I OwNE12 1=11.85 I pow*. To .-..1 FOR Nom+ OCT. i 199 I MEDIATION ARt3ITRAM 0N [ Nile 1 - OW)JEg APPLJP.S PARK A1ATto I NI,� NGITT I FoR W.nsr GoIStGI= . LIT RE I NGI .C.A5l INCRSE I QUEST" I I , 40" I t DELI 552/1 NEGCTIATIc*-J ' I � APPROVED1 DV DE N1 .P 1F IF CRITERIA CRITERIA .I MET' NOT MET" NIED r .. I F PRCTO esi.. I t NOT Acc.@'T'ED APPR4vED PY oo.>w7E2_ ........,. IP NE.60TIATEP prJD 67°k6 PRDPbc:SAL_ IS cF. TC.NArJTS AGCEPTP> _,. 13V cwkIMR-. AMP 67% of I PARK TENANTS! l ' I I I I I 1 I • fi 41 44, . IL 4 16' OP.11 &MI& • BLAW OFFICES EXh�b•♦ BURKE, WILLIAMS & SORENSEN EXMIT v 611 WEST SIXTH STREET, SUITE 2500 MARTIN U SURKE' 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 I MARTIN L BURKE. ROBERT V WADDEN CAMARILLO, CALIFORNIA 93010 CARL K. NEWTON' FRANK H.WHITEHEAD,ICE (805) 987-3468 TE LECO PIER: (213) 236-2700 U ROBERT FLANDRICK' MARYANN LINK GOODKIND NORMAN E. GAARt 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,DZ LIGHTON PLAZA JERRY M. PATTERSON JOHN E.CAVANAUGH 7300 COLLEGE BOULEVARD HAROLD A. BRIDGES' MARK D. HENSLEY SUITE 220 CHERYL U KANE. PETER D.TREMBLAY OVERLAND PARK, KANSAS 66210 RAYMOND U FUENTES. ROGER T. ITO (913)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 September 16, 1991 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 RUFUS C.YOUNG,JR. JANET S.GARMS* 213-236-2722 KATHRYN P PETERS° PAUL C.ANDERSON LISA E. KRANITZ BRENDA L DIEDERICHS OUR FILE NO. 00024-001 KIM E. MCNALLY 'PROFESSIONAL CORPORATION TA PROFESSIONAL ASSOCIATION ADMITTED KANSAS&MISSOURI °ADMITTED KANSAS *ADMITTED IN CALIFORNIA, KANSAS 6 MISSOURI Mr. Henry Garcia City Administrator City of Azusa 213 East Foothill Boulevard Azusa, CA 91702 Re: Proposed Amendments to Azusa Municipal Code Relating to Mobile Home Rent Stabilization Dear Henry: Enclosed with this letter is a proposed ordinance, prepared at City Council direction, amending the Azusa Municipal Code relating to mobile home park rent stabilization. This letter is to describe the proposed ordinance and rent stabilization procedure. At Section 1, the ordinance would modify existing Azusa Municipal Code Section 5. 12 . 070 to add that mobile home park businesses shall comply with the provisions of Chapter 5. 56 of the Code relating to rent stabilization. 1. Rent Stabilization Overview Section 2 of the ordinance codifies a new chapter to Title 5 of the Code. Chapter 5.56 would be entitled "Mobile Home Park Rent Stabilization. " The mobile home park Mr. Henry Garcia September 16, 1991 Page 2 rent stabilization procedure can be described as a three- step process. In the first step, the rent arbitration administrator ("RAA") , who shall be the City Administrator or his designee, may pre-approve certain rent increases. If that rent increase cannot be approved by the RAA, the proposed increase can go to a park mediation committee for approval. If the park mediation committee does not or cannot mediate an acceptable rent increase, the proposed increase may go to an arbitrator. The decision of the arbitrator shall be final. 2 . Base Rents The ordinance would set an initial "base rent" for each space in the City of Azusa, subject to certain exemptions. The base rent shall be the rent which was in effect for each space on October 1, 1990, subject to an increase of no more than 7% per annum between October 1, 1990 and the effective date of the ordinance and a proportionate share of increases in City special taxes, benefit assessments or service charges since October 1, 1990, if any. No owner can demand or accept a rental increase from this initial base rent, unless the increase has been authorized as set forth in the ordinance. For mobile home spaces with a rent of $150 or less on the effective date of the ordinance, the base rent shall be the rent charged at the effective date. 3 . Exemptions There are certain exemptions under the ordinance and under state law. The ordinance will not apply to any space which is under a written lease agreement in existence on October 1, 1991. At the end of that written lease agreement, the base rent shall shall be that same rent which is paid for the last month before lease termination. There is also an exemption for certain leases which meet criteria set forth at Section 798. 17 of the Civil Code for California. The ordinance provides the base rent for these spaces shall be the rent paid for the last month prior to expiration of the lease agreement. Mr. Henry Garcia September 16, 1991 Page 3 The ordinance also provides an exemption for "space rent agreements. " Where a mobile home park provides a rental agreement meeting certain criteria, the park shall be exempt from the ordinance for the duration of the agreement. The agreement must establish a space rent schedule for a minimum of two years from the effective date of the agreement. The agreement need not be a formal lease or follow any prescribed format, but a written space rent schedule must be binding upon both the park owner and residents for its duration. The agreement must be voluntarily consented to by tenants of 67% or more of the mobile home spaces within the park. Upon the termination of the space rent agreement, the mobile home park shall comply with the ordinance. The monthly rent charged for the last month of the space rent agreement shall be the new base rent for each space for the purposes of any future adjustment. 4 . Rent Increase Application to RAA An owner may file with the RAA a rent increase notification for one or more mobile home spaces for the RAA's review and certification. The RAA shall approve the increase if he finds that (1) there have been no rent increases for the subject spaces for the 12 months; (2) there have been no decreases in services to tenants, except as permitted by the ordinance; and (3) the proposed rent increase is no greater than the lesser of 7% or the increase in CPI (as described in the ordinance) ; and any increase covering added costs due under a valid existing land lease, binding upon the owner, in existence on October 1, 1991, and/or an increase in a special tax, benefit assessment, or service charge, excluding water, sewer and trash. 5. Application For Rent Increase Mediation If the RAA disapproves the rent increase, a park owner may file a request for mediation by a park mediation committee. The park mediation committee shall be made up of two representatives from the affected tenants, two representatives of the park owner, and a fifth member as appointed by the first four members. In a procedure detailed at Section 5. 56. 080, the park mediation committee shall negotiate a proposed rent increase. If the proposal is not accepted by the park owner and at least 67% of the Mr. Henry Garcia September 16, 1991 Page 4 affected tenants, it shall be deemed rejected. The park mediation committee shall attempt to negotiate a second proposed rent increase. If this rent increase cannot be negotiated or is rejected, mediation shall have failed. 6. Application for Rent Increase Arbitration Where mediation fails, the park owner may file with the RAA an application for arbitration of the rent increase. The application for arbitration shall be accompanied by a payment of $10 per space. That fee may be adjusted by the City Council. The park owner may pass through one-half of the fee to the tenants. Section 5. 56. 090 provides a detailed description of the procedure to be followed by the arbitrator. The arbitrator shall approve a rent increase as determined to be just, fair, and reasonable. The arbitrator shall consider, but not be limited to, certain factors, including (1) changes in the Consumer Price Index, (2) the rent lawfully charged for comparable spaces in the City, (3) the history and pattern of all prior rent increases of the park, (4) the completion of any capital improvements or rehabilitation of the park, (5) changes in property taxes and other taxes, (6) changes in rent paid by the owner for land, (7) changes in utility charges, (8) changes in reasonable operating and maintenance expenses, (9) the amount and quality of services to be provided, (10) the need for rehabilitation work at the park, (11) and tenant comments regarding the proposed increases. The arbitrator shall not consider any expenses for which the park owner is reimbursed or any attorney's fees and costs incurred in any proceedings under the ordinance. 7 . Vacancy Decontrol At Section 5.56. 100, 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 the ordinance. The rent charged for the first month of the new tenancy following such vacancy shall be the base rent for the purposes of any subsequent increases. However, a change in ownership shall not include Mr. Henry Garcia September 16, 1991 Page 5 transfers to a conservator of the person or of the estate of a tenant, transfers which take effect upon the death of a spouse, transfers to a spouse, or former spouse, or the creation, transfer, or termination solely between spouses of a co-owner's interest. This provision expressly provides that the City will not control or stabilize rent at the vacancy of a site. This ordinance is modeled after a similar ordinance in the City of La Verne. The City of La Verne has recently been in litigation over its ordinance, and the issue of "vacancy decontrol. " It is the City Attorney's understanding that the City of La Verne has negotiated a settlement of the litigation by eliminating the vacancy control. The provision to be codified at Azusa Municipal Code Section 5. 56. 100 is designed to avoid a claim that the City is taking property of the park owner without compensation and to avoid costly litigation over the rent stabilization ordinance. 8. Miscellaneous Issues The ordinance also provides that the park owner may not terminate or eliminate certain services which are currently provided to tenants. The theory behind this prohibition is that such a diminution in services can be considered tantamount to a rent increase. Finally, the ordinance would provide, at Section 5. 56. 120, for an annual review and public hearing. The RAA would provide a report on the operation of the ordinance each year. In January of the new year, the Council would conduct a public hearing to consider oral and written comments from the public and the RAA's report. The purpose of the public hearing would be to consider any necessary modifications to the rent stabilization ordinance. If you have any comments or questions, please do not hesitate to contact me. Sincerely, PET R M. THORSON Of BURKE, WILLIAMS & SORENSEN PMT/sjw tbm/LTR178613 Enclosure 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 STABILIZATION The City Council of the City of Azusa, California does hereby ordain as follows: SECTION 1. 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 business 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 2 . 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: CHAPTER 5.56 MOBILE HOME PARK RENT STABILIZATION 5.56. 010. PURPOSE. It is the purpose of this Chapter to facilitate 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: -1- WPX/TBM/ORD690690 CAPITAL IMPROVEMENT shall mean any addition or betterment 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 as per 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 accommodation of a mobile home and any accessory structures or appurtenances attached thereto or used in conjunction therewith. 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. RENT ARBITRATION ADMINISTRATOR (RAA) shall mean the City Administrator or his designee. 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. 030 DUTIES OF RENT ARBITRATION ADMINISTRATOR. In addition to the specific duties described elsewhere in this Chapter, the RAA shall: -2- WPX/TBM/ORD690690 (a) Make any recommendation he deems appropriate to the City Council regarding the implementation of this Chapter; (b) Adopt, subject to City Council approval, procedures and guidelines for the implementation of this Chapter; (c) Select an arbitrator for any proceeding under Section 5.56. 090. 5.56. 040 EXISTING AND EXEMPT LEASES. (a) Notwithstanding any provision of this Chapter 5. 56, rents agreed to under a written lease agreement in existence on October 1, 1991, may be collected until the expiration of the lease agreement. (b) Notwithstanding any provision of this Chapter 5. 56, rents agreed to under a lease agreement exempt from local ordinance pursuant to California Civil Code section 798. 17 may be collected until the expiration of such lease agreement. 5.56. 050 BASE RENT. (a) The initial base rent per month for each space shall be the rent in effect for that space on October 1, 1990, subject to either or both of the following adjustments: (1) An increase of no more than seven percent (7%) per annum between October 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 October 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 -3- WPX/TBM/ORD690690 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 space is exempt under Section 5.56.060. (d) For those spaces with 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 RENT AGREEMENTS. (a) Any mobile home park which provides a rental agreement meeting the criteria set forth in this Section 5.56. 060 shall be exempt from the provisions of this 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 need not be a formal lease or follow any prescribed format but a written space rent schedule must be binding upon both the park owner and residents for its duration. The agreement may contain such other provisions as may be agreed upon 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 the signature of at least one adult tenant from the requisite number of spaces, with such signature shown on a lease agreement or on such other form as may be permitted by the RAA. (c) This exemption shall terminate upon the expi- ration of the space rent agreement unless such agreement is renewed or extended by mutual agreement of the park owner and sixty-seven percent (67%) of the residents. Consent to any such renewal or extension of a space rent agreement must meet the criteria set forth in subsection (b) of this sec- tion. 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 rent agreement shall -4- WPX/TBM/ORD690690 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 file with the RAA a rent increase notification for one or more mobile home spaces for the RAA's review and certification. (b) Upon receipt of a rent increase notification, the RAA shall review it and shall certify the increase and notify the affected tenants if the RAA finds that: (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 (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 rice Index (CI-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 notification by the RAA. (B) Any increase covering only each space's proportionate share of: (i) An increase due under a valid, existing land lease, binding upon the owner, 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, a park owner may file with the RAA a request for mediation by a park mediation committee. An owner shall be limited to one such application per park, per calendar year. -5- WPX/TBM/ORD690690 (a) An application for a rent increase pursuant to this section shall be filed upon a form prescribed by the RAA. The mediation application shall specify the address and numbers of all spaces for which an owner requests a rent increase. All applications shall be made under penalty of perjury. (b) Upon receipt of the mediation application, the RAA shall mail a notice to the affected tenants at the mobile home spaces designated in the application. Said notice shall include the amount of the requested rent increase and a brief summary of the owner's justification for the request. (c) Upon notification of the proposed increase, a five member park mediation committee shall be formed to meet and confer on the rental increase, endeavor to reach a mutual understanding of the owner and tenant viewpoint, and to negotiate a mutually satisfactory rent increase. The park mediation committee shall be composed of two (2) representatives designated by the owner and two (2) representatives selected by the tenants affected by the proposed rent increase. All four such members shall be selected within ten (10) days of the RAA'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 RAA's notice, they shall request, in writing, that the RAA appoint a fifth member. Any fees payable to the mediator, whether appointed by the park mediation committee or the RAA, shall be borne equally by the owner and the affected tenants. (d) The park mediation committee shall establish procedures for the conduct of its affairs not otherwise in conflict with the provisions of this Chapter, including, but not limited to, the number of affirmative votes it may require to take or effect any action. (e) If the park mediation committee negotiates a proposed increase, written notice thereof shall be given to all of the 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. (f) 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 -6- WPX/TBM/ORD690690 shall be deemed approved and effective. 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. (g) If the increase is disapproved as provided under Section 5.56. 080 (f) of this Chapter, the park mediation committee 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 (f) of this Chapter. (h) An application for rent increase submitted under this Section is deemed denied if: (1) The park mediation committee fails to negotiate an initial proposed rental increase within thirty (30) days after the appointment of the fifth member; or (2) The park mediation committee fails to renegotiate 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 within fifteen (15) days of the written notice thereof. When mediation fails, an application may be submitted by the park owner for arbitration pursuant to Section 5.56.090 of this Chapter. 5. 56. 090 PERMITTED INCREASES BASED UPON ARBITRATION. (a) If a proposed rent increase application is denied pursuant to Section 5.56.070 and a mediated settle- ment per Section 5.56.080 cannot be reached, an owner may file with the RAA an application for arbitration for a rent increase on one or more mobile home spaces. An owner shall be limited to one application for arbitration per park, per year. (b) An application for a rent increase pursuant to this section shall be filed upon a form prescribed by the RAA and shall be accompanied by the payment of a fee of ten dollars ($10) per space for which an application for a rent -7- WPX/TBM/ORD690690 increase is made. Such fee may be reviewed and adjusted by resolution of the City Council. 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 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 RAA shall select the arbitrator. (c) The applicant shall produce, at the request of the arbitrator, any records, receipts, or other documents that the arbitrator may deem necessary. The application shall be made under penalty of perjury and supporting documents shall be certified or verified as requested by the arbitrator. (d) The arbitrator shall determine within sixty (60) days after receipt of a rent increase 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. (e) Upon receipt of a rent increase application, the RAA shall mail a notice to 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 tenant's right 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 the tenants for considera- tion by the arbitrator shall be signed and submitted under penalty of perjury. The arbitrator shall hold a hearing on said 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 the applicant and the affected tenants at the mobile home spaces designated in the application at least ten (10) days prior to the hearing. (f) At the hearing, the applicant and the affected tenants may offer any testimony that is deemed relevant by the arbitrator to the requested rent increases. The appli- cant shall produce any records, receipts, or other documents that the arbitrator may deem necessary to approve a rent increase. The applicant and affected tenants may offer -8- WPX/TBM/ORD690690 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, approved or disapproving a rent increase for the mobile home space or spaces specified in the rent increase application. (g) The arbitrator shall approve such rent increase as he/she determines to be just, fair, and reasonable. The arbitrator shall consider, but not be limited to, the following factors in making such determinations: (1) Changes in the Consumer Price Index for All Urban Consumers for the Los Angeles-Long Beach Metropolitan Area, published by the United States Bureau of Labor Statistics for the twelve (12) month period ending ninety (90) calendar days prior to the application for the proposed increase. (2) The rent lawfully charged for comparable mobile home spaces in the City of Azusa. (3) The history and pattern of all prior rent increases of the park, and any prior arbitration proceedings. (4) The completion of any capital improvements or rehabilitation work related to the mobile home 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 such other items as the arbitrator deems appropriate. (5) Changes in property taxes and other taxes related to the subject mobile home park. (6) Changes in the rent paid by the applicant for the lease of the land on which the subject mobile home park is located. (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. -9- WPX/TBM/ORD690690 (8) Changes in reasonable operating and maintenance 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. (h) 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 proceedings under this Chapter. (i) 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 reasonably 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. (j) Notice of the arbitrator's determination shall be mailed to the applicant and all affected tenants at the mobile home spaces designated in the application. 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 rent increase application within seventy-five (75) calendar days after the application is deemed complete by the RAA, 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 determination disapproving a rent increase; or (2) the -10- WPX/TBM/ORD690690 effective date of a rent increase 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 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 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 connection with a property settlement agreement or decree of dissolution 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 proportionate share of the cost savings resulting from such reduction or elimination is passed on to the resident in the form of a decrease 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 payment of utility costs to the resident may -11- WPX/TBM/ORD690690 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 both a report of the RAA on the operation of this Chapter during the receding 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 3 . 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 , 19_. Mayor of the City of Azusa ATTEST: City Clerk -12- WPX/TBM/ORD690690