HomeMy WebLinkAboutReso MHFPC 2020-01 RESOLUTION NO. MHFPC 2020-01
A RESOLUTION OF THE MOBILE HOME FAIR PRACTICES COMMISSION
APPROVING A RENT INCREASE IN THE AMOUNT OF $150.00 FOR SPACES 1, 2,
4, 5, 8, 11A, 14, 16, 17, 18, 19, 20, 23, 24, 25, 28, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41,
42, 43, 44, 45, 47, 49, 50, 51, 53, 54, 55, 56, 58, 59, 65, 66, 67, 68, 69, 70, 72, 74, 75,
76.
PURSUANT TO THE HARDSHIP PETITION SUBMITTED BY THE PARK OWNER OF THE
SKY RIDGE MOBILE HOME PARK
WHEREAS, in 1983, the City Council of Cathedral City adopted Ordinance No. 48,
establishing rent restrictions on Mobile Home Park Owners in the City; and
WHEREAS, Ordinance No. 48 established the City's Mobile Home Fair Practices
Commission ("Commission"), which among other things, has the authority to receive and hear
petitions from tenants or landlords, and make determinations regarding whether a violation of
Ordinance No. 48 has occurred; and
WHEREAS, Ordinance No. 48 provides that the maximum allowable rent increase in a 12
month period is 75 percent of the Consumer Price Index ("CPI"), and in the event a Mobile Home
Park Owner wishes to implement a larger rent increase, the owner must first petition the
Commission for approval of such a rent increase; and
WHEREAS, the Commission is in receipt of a hardship petition by the Mobile Home Park
Owner for the Sky Ridge Mobile Home Park ("Park Owner"), requesting the Commission
authorize a $150.00 per space increase under the provisions of the Ordinance; and
WHEREAS, the Regulations for the Commission provide that the Commission "shall
permit rent increases, unless otherwise proscribed by law, such that the Net Operating Income of
the subject property for the period of the application shall exceed the Net Operating Income of
such property for the base year by at least one-half of the percentage increase in the Consumer
Price Index (CPI) since February 1982; and
WHEREAS, the Park Owner provided evidence that the Park Owner's Base Year NOI is
provided as a normalized amount at $99,903; and
WHEREAS, under the Commission's regulations prescribe how to calculate increases,
and
Commission did hold duly noticed public hearing on November 17, 2020 at which time the
Commission considered all oral and documentary evidence submitted by the Park Owner
and;
WHEREAS, the Commission incorporates all evidence, testimony, and documents,
including the staff report and attachments, into the record by reference; and
NOW, THEREFORE BE IT RESOLVED by the Mobile Home Fair Practices Commission
of the City of Cathedral City as follows:
1. The above recitals are true and correct and material to this Resolution.
2. In making its findings, the Mobile Home Fair Practices Commission relied upon
and hereby incorporates by reference all correspondence, staff reports, and other
related materials.
BE IT FURTHER RESOLVED that by the Mobile Home Fair Practices Commission of the
City of Cathedral City does hereby find that a rent increase is warranted as follows:
1. The Park Owner provided a base year NOI of$99,903.00, adjusted for fluctuations;
2. Under the Commission's Regulations, the Park Owner is entitled to a Net
Operating Income of$243,922.14;
3. The difference between what the Park Owner is entitled to ($243,922.14)and what
has actually been reported ($99,903) is $144,019.14 per year in additional rent;
4. Taking this $144,019.14 and dividing this amount by the number of space rentals
in the park of 73 and then divide by the number of months in a year, which is 12, results in a
$164.41 per month per space rental.
5. Based on the Commission's calculations as set forth in the Commission's
regulations, the Park Owner's requested increase of $150.00 increase is permissible on
the following spaces: 1, 2, 4, 5, 8, 11A, 14, 16, 17, 18, 19, 20, 23, 24, 25, 28, 32, 33, 34,
35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 47, 49, 50, 51, 53, 54, 55, 56, 58, 59, 65, 66,
67, 68, 69, 70, 72, 74, 75, 76.
6. The Park Owner has agreed to implement the rent increase on the subject spaces
as follows: (1) it will be implemented in equal increments over four years, with no interest as to
existing residents; (2) the Park Owner agrees to not implement CPI rent increases for the years
2021 to 2024; and (3)any new move in residents would be required to pay the entire rent increase,
implemented through rent credits given to the residents for the amount of the increase not
implemented and any CPI adjustments;
7. In implementing rent increases, the Park Owner is required to abide by noticing
requirements as provided in the Mobile Home Residency law, the City's Regulations, and any and
all applicable laws; and
8. The Park Owner will provide a rent roll with the following information: the tenant's
names, the space occupied by the tenant, the monthly rent paid by the tenant, and whether the
tenant is subject to a long-term lease, which information shall be provided on monthly to the City
Clerk of the City of Cathedral City in order to ensure compliance with Ordinance No. 48, the
Regulations, and this Resolution.
Passed and adopted at a meeting of the Mobile Home Fair Practices Commission of the City of
Cathedral City, held on the 2nd day of December 2020.
AYES: Commissioners Hoss and Durbin; Vice-Chair Evans
NOES: Commissioner Fernandez and Chairman Saldivar
ABSENT: None:
ABSTAIN: None
ick Sa .ivar, Chair
Mobil- Home Fair Practices Commission
ATTEST:
1
i Al Al • A_._.
racey R. artinez, City Clerk Sii,
APPROVED AS TO FORM:
J�% J /
Eric Vail, City Attorney