HomeMy WebLinkAboutD-3 Staff Report - Ordinance Amending Mobilehome Rent StabilizationD-3
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: NICO DE ANDA-SCAIA, DEPUTY CITY MANAGER
RICK MCMINN, COMMUNITY IMPROVEMENT MANAGER
MARCO A. MARTINEZ, CITY ATTORNEY
DATE: AUGUST 15, 2022
SUBJECT: FIRST READING OF ORDINANCE AMENDING VARIOUS PROVISIONS OF
ARTICLE XI, DIVISION 2, CHAPTER 18 OF THE AZUSA MUNICIPAL CODE:
RELATING TO THE CITY OF AZUSA MOBILEHOME RENT STABILIZATION
REGULATIONS
BACKGROUND:
At recent City Council meetings, residents have complained that mobilehome park owners have
significantly increased rents in violation of the City’s mobilehome rent stabilization regulations. The
regulations are codified in Article XI, Chapter 18 of the City’s Municipal Code and were originally
adopted in 1992 as Ordinance No. 92-04. While the original staff report for Ordinance No. 92-04 was
unavailable, the Ordinance did include recitals that hinted at the reasons for its adoption. These included
the following:
“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 investments 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.
SCHEDULED ITEM
APPROVED
With Amendments
CITY COUNCIL
8/15/2022
Azusa Mobilehome Rent Stabilization
August 15, 2022
Page 2
Ordinance No. 92-04 generally created a tiered system for allowing rent increases. The largest proposed
increases required approval by a City Mobilehome Park Rent Review Board. However, such a board
does not currently exist and has not existed for many years. Other components of Ordinance No. 92-04
are likely outdated.
City Council Study Session
Given the complaints that have been voiced and the current status of Ordinance No. 92-04, the City
Council held a study session on July 18 to hear comments from tenants and owners. After hearing several
tenants voice their concerns, the Council directed staff to bring back revisions to help clarify the ordinance
and revise permitted rent increases that are not approved by a mobilehome rent review board.
RECOMMENDATION:
Staff recommends that the City Council waive further reading, read by title only and introduce the
following:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA,
AMENDING VARIOUS PROVISIONS OF ARTICLE XI, DIVISION 2, CHAPTER 18 OF THE
AZUSA MUNICIPAL CODE RELATING TO THE CITY OF AZUSA MOBILEHOME RENT
STABILIZATION REGULATIONS
DISCUSSION:
After hearing public comments about the City’s mobilehome rent stabilization regulations and concerns
raised by tenants and the public, the City Council requested staff to bring back amendments. These
amendments are reflected in the attached ordinance and include the following:
A. Definitions – Section 2 of Ordinance
The existing ordinance included several definitions that are used throughout the regulations. The revised
ordinance amends several definitions and adds a few new ones to clarify how to administer the ordinance.
The big change here is the switch from CPI-W to CPI-U. As we learned, CPI-U appears to increase at a
lower rate than CPI-W. The CPI-U is a more general index and seeks to track retail prices as they affect
all urban consumers. It encompasses about 87 percent of the United States' population. The CPI-W is a
more specialized index and seeks to track retail prices as they affect urban hourly wage earners and clerical
workers. For example the CPI-U for July tracked at 7.7% while the CPI-W for July was 7.9% (Los
Angeles, Long Beach, Anaheim). For the first half of the year, the CPI-U was 8.0%, while the CPI-W
was 8.1%.
The other big revision is the added language to the definition of “Board” - here we included language that
states that for purposes of the ordinance, the duties of the board may be carried out by a neutral hearing
officer. Other new definitions include “housing services” and “service reductions.” These terms are new
and help to clarify provisions that allow tenants to request rent decreases when there have been reductions
in services or the amount or quality of service.
Azusa Mobilehome Rent Stabilization
August 15, 2022
Page 3
B. Authorize Use of Neutral Hearing Officers – Section 3 of Ordinance
This section describes the appointment, duties and composition of the rent review board. As noted above,
we do not believe this board was ever established. Nevertheless, rather than delete the section authorizing
the board, we merely added a provision authorizing the use of a neutral hearing officer to undertake the
same duties and responsibilities that the ordinance assigns to the board.
C. Revised Exemptions - Section 4 of Ordinance
The current ordinance contained certain exemptions from the ordinance. These revisions merely update
the list to include exemptions required by state law.
D. Permitted Rent Without Board/Hearing Officer Approval – Section 5 of Ordinance
Under the existing ordinance, Park owners are prohibited from demanding rent exceeding the initial base
rent unless authorized. Permitted increases are of three types: increases permitted without active city
approval (AMC Sec. 18-772); increases based on mediation (AMC Sec. 18-773); and increases based on
rental review board approval (AMC Sec. 18-774).
To increase rent without active city approval, a park owner is required to provide written notice to affected
tenants and file a statement with the city showing the increase meets several enumerated conditions. Park
owners may not increase rent greater than the sum of (i) the increase in the Consumer Price Index for
Wage Earners (CPI-W) for the 12-month period ending 90 calendar days before the date of receipt of the
statement by the city (not to exceed 7% or $10, whichever is greater) plus (ii) the space’s proportionate
share of an increase due to a land lease binding upon owner and tenant existing as of December 1, 1991
and/or an increase in a city special tax, benefit assessment, or service charge. The rent increase goes into
effect on the anniversary date of the space as established by the park.
The proposed revisions to this section now define the parameters of permitted rent increases without
Board/Hearing officer approval as the lessor of (1) the increase in the CPI-U for the previous 12 months
not to exceed $10.00; or (2) 5%.
E. References to CPI-W replaced with CPI-U – Section 6 of Ordinance
The changes to these section merely replace references to CPI-W with CPI-U.
F. Delete Requirements for Review Hearing – Section 7 of Ordinance
Deletes the current requirement that the Council hold a public hearing every January to review the
ordinance.
All other provisions in the ordinance remain.
Azusa Mobilehome Rent Stabilization
August 15, 2022
Page 4
FISCAL IMPACT
There are significant but unknown fiscal impacts. As noted, a Rent Review Board does not currently exist.
Thus, creation and staffing of such a board will have significant fiscal impacts to both create, staff and
administer such a Board. Alternatively, the amendments will authorize the services of a neutral hearing
officer. These costs may be lower than staffing a board. However, they are not insignificant.
CEQA COMPLIANCE:
This ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”)
under the State CEQA Guidelines because the proposed action as it is not a “project” and has no potential
to result in a direct or reasonably foreseeable indirect physical change to the environment as it imposes
regulations for the rental of mobilehome park spaces. Further, this ordinance is exempt from CEQA as
there is no possibility that this ordinance or its implementation would have a significant effect on the
environment. 14 Cal. Code Regs. § 15061(b)(3).
Prepared by:
Marco A. Martinez
City Attorney
Reviewed and Approved: Reviewed and Approved:
Nico De Anda-Scaia Sergio Gonzalez
Deputy City Manager City Manager
Attachment:
1) Ordinance No. 2022-03
ORDINANCE NO. 2022-03
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, AMENDING VARIOUS
PROVISIONS OF ARTICLE XI, DIVISION 2, CHAPTER 18
OF THE AZUSA MUNICIPAL CODE RELATING TO THE
CITY OF AZUSA MOBILEHOME RENT STABILIZATION
REGULATIONS
WHEREAS, the City of Azusa, California (“City”) is a municipal corporation, duly
organized under the California Constitution and laws of the State of California; and
WHEREAS, by virtue of the police powers delegated to it by the California Constitution,
the City has the authority to enact laws which promote the public health, safety, and general
welfare of its citizens; and
WHEREAS, Article XI, Division 2 of Chapter 18 the Azusa Municipal Code contains the
City’s Mobilehome Rent Stabilization regulations; and
WHEREAS, the City Council wishes to make revisions to the City’s Mobilehome Rent
Stabilization regulation to protects the public health, safety and welfare and further clarify certain
provisions to allow for more efficient and effective enforcement of the regulations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA
DOES RESOLVE AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The City Council finds that all of the foregoing
recitals are true and correct and are hereby incorporated and adopted as findings of the City Council
as if fully set forth herein.
SECTION 2. Article XI, Division 2, Section 18-766 and Section 18-767 of the Azusa
Municipal Code are hereby amended to read as follows:
“Sec. 18-766. Purpose & Applicability.
Purpose. It is the purpose of this division to facilitate the establishment of fair and
reasonable rents within mobilehome parks within the city. Furthermore, it is the intent of this
division 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.
Applicability. This Article shall apply to all mobilehome park owners and
mobilehome owners in mobilehome parks within the city, unless otherwise exempted by state law
or the provisions of this division.
Attachment 1
This Article also applies to a mobilehome spaces containing recreational vehicle,
as defined in Health and Safety Code § 18010, as it may be amended from time to time, in which
the owners of such recreational vehicles have has been residing on the mobilehome space for nine
(9) or more consecutive months pursuant to a rental agreement.
Sec. 18-767. -- Definitions.
The following words, terms and phrases, when used in this division, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a different
meaning:
“Board” means the mobilehome park rental review board. Alternatively, wherever
this Article imposes duties on the Board, such duties may be carried out by a neutral hearing officer
contracted for the purpose described in this Article.
“Capital improvement” means the addition, substantial repair or replacement of any
improvement to a mobilehome space within the geographic boundaries of a mobilehome park
which materially adds to the value of the mobilehome park and appreciably prolongs its useful
life or adapts it to new uses, and which is of the same type of improvement as those allowed to be
amortized over the useful life of the improvement in accordance with the Internal Revenue Code
and its regulations.
“City” means the City of Azusa, California.
“Code” means the Azusa Municipal Code.
“CPI-U” means the Consumer Price Index for All Urban Consumers in the Los
Angeles-Long Beach-Anaheim area published by the United States Bureau of Labor Statistics.
“Department” means the department of community development.
“Homeowner” means a person who has a tenancy in a mobilehome park or an agent
or representative authorized to act on the homeowner’s behalf.
“Housing services” means all services provided by a mobilehome park owner
related to the use or occupancy of a mobilehome space, including water and sewer, natural gas,
electricity, refuse removal, management and administration, maintenance and repairs, recreation
facilities (including pools), laundry facilities, storage space, and parking (including one or more
automobiles), security services, insurance and the payment of property taxes. The term "housing
services" shall not include legal fees or mortgage payments, whether for principal, interest, or both.
“Mobilehome” means a mobilehome as defined in the Mobilehome Residency
Law.
“Mobilehome park” means any area of land within the city where two or more
mobilehome spaces are rented or held out for rent to accommodate mobilehomes used for human
habitation.
“Mobilehome Residency Law” means Civil Code §§ 798 through 799.11, as it may
be amended from time to time.
“Mobilehome park owner” or “park owner” means the owner, lessor, operator or
manager of a mobilehome park who receives, or is entitled to receive, rent for the use and
occupancy of any mobilehome space, and the agent, representative or successor of any of the
foregoing.
“Mobilehome space” or “space” means the site within a mobilehome park intended,
designed or used for the location or accommodation of one mobilehome and any accessory
structures or appurtenances attached thereto or used in conjunction therewith.
“Rent” means the consideration paid for the use or occupancy of a mobilehome
space, including the use of the services and facilities of the park. Rent does not include any of the
following:
1. Any amount paid for renting the mobilehome, as opposed to the space;
2. Security deposits;
3. User fees for services or facilities which may be utilized at the option of the
homeowners and are expressly not included as rent in the rental agreement;
4. Utility charges for those mobilehome parks which bill homeowners
separately whether or not the mobilehome spaces are individually metered; or
5. Any pass-through that requires approval pursuant to this division.
“Rent adjustment” means rent increase or rent decrease above or below the
maximum annual rent increase as determined by the department or hearing officer. Rental
agreement means a written agreement, for two months or longer, between the park owner and the
homeowner establishing the terms and conditions of a tenancy. A lease is a rental agreement.
“Resident” means a homeowner or other person who lawfully occupies a
mobilehome, such as a subtenant.
“Service reduction” or “decrease in the amount or quality of service” shall mean a
decrease or diminution in the level of housing services provided by the mobilehome park,
including but not limited to, services the mobilehome park owner is required to provide pursuant
to:
1. California Civil Code section 1941 et. seq., as it may be amended from time
to time;
2. The Mobilehome Residency Law;
3. The Mobilehome Parks Act, California Health and Safety Code section
18200 et seq., as it may be amended from time to time;
4. The mobilehome park owner's implied warranty of habitability, which
cannot be contractually excluded or waived;
5. A rental agreement;
6. The level of service as implied by the condition of improvements, fixtures,
and equipment, and their availability for use by the homeowner at the time of execution of the
rental agreement with the mobilehome park owner; or
7. Applicable rules or regulations of the mobilehome park.
“Tenancy” means the right to use or occupy a mobilehome space for locating,
maintaining, and occupying a mobilehome, site improvements, and accessory structures for human
habitation, including the use of the housing services and facilities of the mobilehome park.”
SECTION 3. Subsection (h) is hereby added to Article XI, Division 2, Section 18-68 of
the Azusa Municipal Code to read as follows:
“(h) Notwithstanding the provisions authorizing the creation of a mobilehome
park rental review board and the duties assigned to such board, the City shall have the authority to
contract with one or more hearing officers to perform the duties of the board.”
SECTION 4. Article XI, Division 2, Section 18-769 of the Azusa Municipal Code is
hereby amended to read as follows:
“Sec. 18-769. -Exemptions.
(a) A space subject to a rental agreement exempt from local ordinance pursuant
to Civil Code § 798.17, as may be amended from time to time. Such a rental agreement must be
over 12 months in duration, must be between the mobile park owner and homeowner for the
personal and actual residence of the homeowner, and must meet all other criteria in Civil Code §
798.17. This exemption does not apply to a rental agreement entered into on or after February 13,
2020 pursuant to Civil Code § 798.17(i) and (j), until that statute expires on January 1, 2025.
(b) Newly constructed mobilehome spaces initially held out for rent after
January 1, 1990, pursuant to California Civil Code § 798.45.
(c) Mobilehome spaces owned, managed, or operated by a government agency.
(d) Mobilehome spaces occupied by a resident whose mobilehome is not the
resident’s primary residence and none of the conditions set forth in Civil Code § 798.121(f) apply.
(e) Mobilehome spaces rented out solely for non-residential uses.
(f) Mobilehome spaces which are excluded from rent regulation pursuant any
other provisions of the Mobilehome Residency Law, or are otherwise exempt under state or federal
law.
It shall be the burden of the park owner to prove a mobilehome space is not subject
to this article.
SECTION 5. Article XI, Division 2, Section 18-772 of the Azusa Municipal Code is
hereby amended to read as follows:
“Sec. 18-772. Permitted increases without mediation, board/hearing officer
approval or arbitration.
(a) A mobilehome park owner may increase the rent for one or more
mobilehome spaces, upon written notice to each affected tenant and the filing of a statement with
the city showing that the increase meets all of the following conditions:
(1) There have been no rent increases for the spaces for the past 12 months;
(2) There has been no decrease in services to the tenants, except for decreases
permitted by section 18-778; and
(3) The proposed rent increase represents the lesser of:
a. The increase in the CPI-U for the 12-month period ending 90 calendar days
prior to the date of receipt of the statement by the city, not to exceed seven percent or $10.00,
whichever is greater; or
b. Five percent (5%).
(4) The rent increase for each affected tenant shall go into effect on the
anniversary date of the space as established by the respective park.
(b) An owner may increase the rent for one or more mobilehome spaces in
excess of the increase permitted in subsection (a)(3) of this section upon written notice to each
affected tenant and the filing of a statement with the city showing that 51 percent or more of the
affected spaces approve the rent increase. One vote shall be allowed per affected space.
(c) An owner may pass through the cost of a capital improvement upon written
notice to each affected tenant and the filing of a statement with the city showing approval of an
itemized estimate by 51 percent or more of the affected spaces. One vote shall be allowed per
affected space.”
SECTION 6. Article XI, Division 2, Section 18-774(g)(1) of the Azusa Municipal Code
is hereby amended to read as follows:
“(1) Changes in the CPI-U in the Los Angeles-Long Beach-Anaheim area
published by the United States Bureau of Labor Statistics.”
SECTION 7. Article XI, Division 2, Section 18-775(g)(10) of the Azusa Municipal Code
is hereby amended to read as follows:
“(10) Changes in the CPI-U in the Los Angeles-Long Beach-Anaheim area published in
the United States Bureau of Labor Statistics.”
SECTION 8. Article XI, Division 2, Section 18-784 of the Azusa Municipal Code is
hereby deleted in its entirety.
SECTION 9. CEQA Compliance. This ordinance is exempt from the requirements of the
California Environmental Quality Act (“CEQA”) under the State CEQA Guidelines because the
proposed action as it is not a “project” and has no potential to result in a direct or reasonably
foreseeable indirect physical change to the environment as it imposes regulations for the rental of
mobilehome park spaces. Further, this ordinance is exempt from CEQA as there is no possibility
that this ordinance or its implementation would have a significant effect on the environment. 14
Cal. Code Regs. § 15061(b)(3).
SECTION 10. Severability. If any section, sentence, clause or phrase of this
ordinance or the application thereof to any entity, person or circumstance is held for any reason
to be invalid or unconstitutional, such invalidity or unconstitutionality does not affect other
provisions or applications of this ordinance that can be given effect without the invalid provision
or application, and to this end the provisions of this ordinance are severable. The City Council of
the City of Azusa hereby declares that it would have adopted this ordinance and each section,
sentence, clause, and phrase thereof, irrespective of the fact that any one or more section,
subsections, sentences, clauses or phrases might be declared invalid or unconstitutional.
SECTION 11. Effective Date. This Ordinance shall become effective thirty (30)
days after its adoption by the City Council.
SECTION 12. Publication. The City Clerk shall certify to the adoption of this
ordinance. Not later than 15 days following the passage of this ordinance, the ordinance, or a
summary thereof, along with the names of the City Council members voting for and against the
Ordinance, shall be published in a newspaper of general circulation in the City.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Azusa this
______ day of _______, 2022 by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
______________________________
Robert Gonzales, Mayor
ATTEST:
______________________________
Jeffrey Cornejo, City Clerk
APPROVED AS TO FORM:
______________________________
Marco A. Martinez, City Attorney