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Home My WebLink AboutF-1 Staff Report - 2nd Reading Ordinance Amending Mobilehome Rent Stabilization (2022)F-1 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: SEPTEMBER 19, 2022 SUBJECT: SECOND 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 the City Council meeting of August 15, 2022, City Council discussed certain changes to the City’s existing Mobile home Rent Stabilization provisions. The Council waived first reading, read the ordinance by title only and adopted the ordinance with the following changes: 1.Amended A Portion of Article XI, Division 2, Section 18-772 to read as follows: “(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%).” 2.Amended Section 18-784 as follows: “Sec 18-784. – City Council Review. The City Council shall, from time to time, review the provisions of this division.” All other provisions from the original amended ordinance remain the same. As directed by the Council, staff will be preparing a letter to all mobile home park owners to advise them of these changes. SECOND READING ORDINANCE APPROVED CITY COUNCIL 9/19/2022 Azusa Mobile home Rent Stabilization September 19, 2022 Page 2 RECOMMENDATION: Staff recommends that the City Council adopt 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 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 mobile home 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 amended to read as follows: “Sec 18-784. – City Council Review. The City Council shall, from time to time, review the provisions of this division.” 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 19th day of September, 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