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HomeMy WebLinkAboutOrd 48 Exhibit "B" ORDINANCE NO. 48 AN ORDINANCE OF THE CITY OF CATHEDRAL CITY ESTABLISHING A MOBILEHOME FAIR PRACTICES COMMISSION. WHEREAS, there is presently within the City of Cathedral City a shortage of spaces for the location of mobilehomes commensurate with the demand therefor. This inequitable market situation has resulted in low vacancy rates and contributed to rapidly escalating rents. This situation has resulted in serious concern and hardship among a significant portion of Cathedral City residents living in mobilehome parks; and WHEREAS, mobilehome owners are property owners with sizable investments in their mobilehomes and appurtenances. Collectively, the mobilehome owners have a greater investment than does the mobilehome park owner. The residents of mobilehome parks consider their relationship with the park owner as a joint housing venture; and WHEREAS, alternative sites for the relocation of mobilehomes are difficult to find due to the shortage of vacant spaces, the restrictions on the age, size or style of mobilehomes permitted in many parks, and requirements related to the installation of mobilehomes, including moving a mobilehome, is substantial and the risk of damage is significant. These facts tend to create a captive market of mobilehome park tenants and a great imbalance in the bargaining position of the park owner and the mobilehome park tenants in favor of the park owners; and WHEREAS, it is found and declared to be necessary to protect the residents of mobilehomes from unconscionable changes in rental rates and unreasonable changes in park rules and regulations while simultaneously recognizing and providing for the needs of park owners to receive a just and reasonable return on the present fair market value of their property. NOW, THEREFORE, to alleviate the hardship stated above, the people of the City of Cathedral City do ordain as follows: Section 1. Definitions A. "Commission" - The Mobilehome Fair Practices Commission established by this ordinance. B. "Mobilehome Park" - An area of land where two or more mobilehome sites are rented, or held out for rent, to accommodate mobilehomes used for human habitation. C. "Park" - A mobilehome park. E. "Space Rent" - The consideration, including any bonus, benefit or gratuity demanded or received in connection with the use and occupancy of a mobilehome space in a mobilehome park. 1 000380 F. "Resident" - Any person entitled to occupy a mobilehome pursuant to ownership thereof or a rental or lease agreement with the owner of the mobilehome. G. "Annual Percentage Change in the Consumer Price Index" - The "annual percentage change in the Consumer Price Index" shall be the percentage increase in the consumer price index from the month and year twelve months prior to the closing month i of the period to be measured and the closing month of that period. H. "Maximum Rent Increase" - From the effective date of this ordinance, until such time as this ordinance is no longer deemed necessary by the City Council of the City of Cathedral City and approved by the majority of the voters of the City of Cathedral City, no mobilehome park owner of any mobilehome space covered by this ordinance shall request, demand or receive a rent increase in any twelve (12) month period in excess of three-fourths (3/4) of the increase in the cost of living as indicated in the Consumer Price Index. No mobilehome park owner shall be entitled to more than one such rent increase in any twelve-month period. As used herein, the term "Consumer Price Index" shall mean that portion of the Consumer Price Index published by the United States Department of Labor for the Los Angeles-Long Beach-Anaheim Metropolitan Area, designated as "All Urban Consumer, All Items, 1967=100." Computation of rent increases allowable by this ordinance shall be according to the following formula: STEP 1 Multiply the "annual percentage change in the Consumer Price Index" by .75. The resulting figure is the allowable annual percentage rent increase, expressed in decimal figures. STEP 2 Multiply the allowable annual percentage rent increase by the base rent. The resulting figure is the allowable monthly rent increase for the coming year, expressed in dollars. STEP 3 To obtain the maximum allowable monthly space rent, add the allowable monthly rent increase (expressed in dollars) to the current rent. The resulting figure is the maximum allowable monthly space rent that the mobilehome park owner may charge for the following twelve months on any mobilehome space covered by this ordinance. At the mobilehome park owner's option, for bookkeeping convenience, the rent (base rent plus allowable increase) may be rounded to the nearest dollar, provided such adjustment is made for all mobilehome spaces included in any group of mobilehome spaces. 1 H. "Base Rent" - The base rent for purposes of this ordinance, and for computation of allowable rent increases shall be the monthly space rent charged on March 1, 1982, except: 2 000381 If the space was vacant or not yet completed as of March 1, 1982 the base rent shall be the monthly rent charged when the unit first became occupied after March 1, 1982. Section 2. Applicability A. The provisions of this ordinance shall apply to mobilehome parks located within Cathedral City and to those rental spaces in a mobilehome park which are located entirely within the Cathedral City limits. B. The provisions of this ordinance shall apply only to changes in rental rates or park rules and regulations effective on or after the effective date of this ordinance. C. Nothing in this ordinance shall apply to any rental increase agreed to in a lease or to any extension or renewal of an existing lease between a mobilehome park owner and a resident of the park. D. If a space in a mobilehome park is voluntarily vacated by all the residents of a mobilehome park on or after the effective date of this ordinance and while this ordinance is in effect, the rent may be increased upon the re-rental of the space to an amount which does not exceed the average rental rate for comparable space rent in the park. If the space is not rented to one or more of the same residents, the rent in effect on the re- rental shall be the base rent for the purpose of Commission review of any rental rate increases after the date of re-rental. For the purposes of this paragraph, the vacation of a space is voluntary if it was not the result of an eviction, whether for just cause or otherwise or the result of owner's refusal to renew a periodic tenancy or lease agreement. E. If a space was not rented on the effective date of this ordinance, but was subsequently re-rented and continued to be rented to one or more of the same persons, the rental in effect on the re-rental shall be the base rent for the purpose of Commission review of any rental rate increase after the date of re-rental. F. If a space is involuntarily vacated after the effective date of this ordinance, the rental rate in effect on the date of such involuntary vacation shall be the base rent for the purpose of Commission review of any rental rate increase. Section 3. Hardship Increases A. If the application of this ordinance, or any section thereof, would operate to confiscate the mobilehome park owner's property in violation of the United States or California Constitution, then such act, section, or part shall not apply to said owner regarding such property. B. No mobilehome park owner shall increase any rent pursuant to this section unless and until the mobilehome park owner obtains: (1) a hardship adjustment granted by the Commission as provided herein; or 3 000382 (2) after an application by a mobilehome park owner for a hardship adjustment is denied by the "Commission". C. The "Commission" shall hear and determine petitions or applications of mobilehome park owners for hardship adjustments of rent. Any mobilehome park owner who shall petition or apply for a hardship adjustment, and who shall be granted any such hardship adjustment as to any one or more mobilehome spaces, may adjust the rent of such space or spaces in an amount not exceeding the amount of the hardship adjustment so granted or approved by the Commission, upon giving to the resident such written notice as is required by law. Service upon a resident of a copy of the petition or application to such Commission for a hardship adjustment of rent shall be deemed to constitute the notice of rent increase referred to in Section 4 of the ordinance; provided, however, that the resident shall be entitled to at least thirty (30) days written notice of the actual dollar amount of rent increase. Section 4. Notices A. A notice of rent increase allowable by this ordinance may be served at any time. Any such increase shall become effective not less than ninety (90) days after service of notice by the landlord on the resident. All notices of rent increase shall be served in the manner prescribed by law. If any notice, required by this ordinance is not served on the tenant, the tenant shall not be required to pay any increase in rent until ninety (90) days after such notice is served on him. If any notice of rent increase, served pursuant to this section does not state the actual dollar amount of such rent increase a supplemental or additional notice which does state the actual dollar amount of such rent increase shall be served upon the tenant, in the manner prescribed by law, not less than thirty (30) days prior to the effective date of such rent increase. Section 5. Services No mobilehome park owner shall reduce or eliminate any service to any mobilehome space so long as this ordinance 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 mobilehome park owner who provides services to a mobilehome space in the nature of utility services, shall reduce or eliminate such service by separate metering or other lawful means of transferring payment for such services, the cost savings, if any, resulting from such reduction or elimination to be passed on to the resident in the form of a decrease of rent, shall be deemed to be the cost of such transferred utility service for the month of March 1, 1982. If March, 1982 is not representative of the normal or usual cost of such utility service at that time, or if either mobilehome park owner or resident shall protest the use of the March, 1982 billing as a measure of such cost savings, then the computation of such cost savings for the period of March, 1982 through April, 1982, inclusive or such other period as the parties shall mutually agree is representative of such cost savings. For purposes of this section in determining cost savings to be passed on to the resident in the form of decreased rent, the cost of installation of separate utility meters, or similar or analogous costs to the mobilehome park owner to shift the obligation for payment of utility costs to the resident, shall not be considered. Nothing stated herein 4 000383 shall be construed to prohibit or prevent the consideration or inclusion of such costs, together with other operational costs of a mobilehome park owner, in any proceedings before a duly appointed board, commission or other appointed body, authorized to hear and determine requests for hardship adjustment. Section 6. Mobilehome Fair Practices Commission A. The Mobilehome Fair Practices Commission for Cathedral City is hereby established. B. The Commission shall consist of a total of five (5) members who shall be resident electors who are neither mobilehome owners nor tenants nor mobilehome park owners, operators or managers. C. Members of the Commission shall be appointed by the City Council and shall serve at its pleasure. D. Any member who is absent without being excused by the Commission from three successive regular meetings of the Commission shall be deemed to have vacated his office. E. Except as expressly provided herein, the Commission shall establish the time and place of its meetings. All meetings of the Commission shall be conducted in accordance with the provisions of the Ralph M. Brown Act. F. Disclosures. All candidates for appointment to the Commission shall disclose in a verified statement all present holdings and interests in real property, including interests in corporations, trusts or other entities owning real property within this jurisdiction as defined by California Government Code Section 82035. Such disclosure statement shall be made available to the City Council prior to appointment of members of the Commission, and shall be filed with the City Clerk not less than ten (10) days after appointment. Disclosure of holdings required herein shall be in addition to any other disclosure required by state or local law for holders of public office. G. The Commission shall make and adopt its own rules and regulations for conducting its business consistent with this ordinance and laws of the State. Such rules and regulations shall be reduced to writing and shall be on file with the City Clerk at all times. The Commission shall appoint such officers as may be necessary. H. The Commission shall keep a record of its proceedings, which shall be open for inspection by any member of the public. I. Each member of the Commission shall be entitled to such compensation as may be set by the City Council by ordinance to be paid entirely from filing fees paid to the City. The Commission shall not have authority to expend or authorize the expenditure of any public funds except with the prior express approval of the City Council. 5 000384 J. The City Manager shall designate an employee who shall serve as the secretary of the Commission. The City Clerk shall be responsible for the maintenance of all its permanent records. K. Three members of the Commission shall constitute a quorum. Three affirmative votes are required for a decision, including all motions, orders and rulings of t the Commission. Section 7. Powers and Duties of the Commission Within the limitations provided by law, the Mobilehome Fair Practices Commission shall have the following powers and duties: A. To meet at such times as may be regularly scheduled by the Commission, or from time to time at the call of the Chairman to hear and determine petitions filed hereunder, at the request of the City Manager, or otherwise to conduct business of the Commission, and to utilize city offices and facilities as needed and as available. B. To receive, hear and determine petitions or other requests of tenants or other interested persons for the interpretation of this ordinance, hereinafter referred to as "the ordinance" , or for review of a mobilehome park owner's actions pursuant to the ordinance. In hearing such petitions or requests of residents or other interested persons, the Commission shall have no authority to fix or award civil penalties, damages or attorney's fees, but shall have the authority to assess against a mobilehome park owner appearing in such proceedings the actual cost, in whole or in part, of the conduct of such proceedings in those cases where the Commission shall find and determine that the mobilehome park owner has, in fact, violated the terms of the ordinance. The findings and determination or decision of the Commission shall be available in written form for use in any judicial proceedings which may be brought pursuant to the ordinance. C. To receive, investigate, hear and determine petitions of landlords for hardship adjustment of rent pursuant to Section 3 of the ordinance. D. To make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary to carry out its duties, and to delegate its power to hear individual rent adjustment petitions to its individual members as hearing examiners, or to such other hearing examiners as may be appointed by the City Council, or to panels of two or more of such members of other hearing examiners. The Commission shall review and make the final determination based upon the findings of such hearings examiners or panels. All decisions of the Commission shall be prospective, and not retrospective, in operation and application. The Commission shall have no power or authority to order the reimbursement of rent by a mobilehome park owner to residents, nor to authorize any mobilehome park owner to impose retroactively any increase of rent. If the Commission shall find that a mobilehome park owner has accepted, received or retained any rent payment in excess of the amounts permitted by the ordinance, or that the mobilehome park owner has otherwise violated the terms of the ordinance, the remedy of the resident shall be a judicial proceeding pursuant to Section 10 of the ordinance. Nothing stated herein shall be construed to prohibit or preclude voluntary adjustment or settlement of any claims or causes of action which may exist between the mobilehome 6 000385 park owner and the resident. E. To authorize an increase in the maximum amount of rent otherwise permitted to be charged by a mobilehome park owner pursuant to the ordinance. Such authorization shall be given only in those cases where the Commission finds that the application of the ordinance, apart from such authorized increase, results or would result in undue hardship to the mobilehome park owner, or would prevent a mobilehome park owner from obtaining a just and reasonable return on the mobilehome park owner's property. Such authorization to increase the maximum rent may take the form of a redetermination of base rent, a surcharge of a given dollar or percentage amount, a separate charge for utility or other services, or such other form as the Commission shall find most appropriate. In determining whether a hardship rent increase should be authorized, the Commission may consider, among other relevant facts, increased costs to the mobilehome park owner attributable to increases or decreases in master land and/or facilities lease rent, utility rates, property taxes, insurance, advertising, debt service cost, governmental assessments and fees, incidental services, normal repair and maintenance, capital improvements, upgrading and addition of amenities or services, net operating income, as well as just and reasonable return on the mobilehome park owner's property. F. To render, at least semi-annualy, a written report to the City Council concerning its activies, rulings, actions, results of hearings and all other matters pertinent to the ordinance, including recommendations for amendment thereof, within the limitations of Section 8 of the ordinance. G. To adopt, promulgate, amend and rescind administrative rules of procedure. Nothing in this Subsection shall be construed as authority for the Commission to make any administrative rules affecting the substantive rights of either mobilehome park owners or residents. H. To maintain and keep at City Hall, hearing files and dockets listing the time, date and place of hearings, the parties involved, the addresses of said parties and final disposition of each such petition with appropriate findings. I. To recommend to the City Council the adoption of a fee schedule setting such fees and charges as appear necessary or desirable to defray in whole or in part the costs of administration of the Commission and conduct of its assigned duties. Section 8. Initiation of Commission Proceedings A. Any resident of a mobilehome park affected by the ordinance, upon payment of such filing fees as shall be duly established, may petition the Commission for an interpretation of the ordinance, or for a determination whether a proposed or actual action by the mobilehome park owner of such resident is legal, valid, and within the terms of the ordinance. If the Commission shall establish forms for such petitions, the petition shall be prepared and submitted upon such form. In the absence of such designated form, the petition shall contain the name, address and telephone number, if any, of the petitioner, and the name, address, and telephone number, if known, of the mobilehome park owner, manager, or other person authorized to represent the mobilehome park owner of the mobilehome space, a brief statement of the facts giving rise to the request for 7 000386 interpretation or determination; and a statement that a copy of the petition has been personally served or mailed to the mobilehome park owner, manager or other person authorized to accept and receive notices to the mobilehome park owner. B. Any mobilehome park owner of a mobilehome park affected by the ordinance may, upon payment of such filing fee as shall be duly established, petition the Commission for an interpretation of the ordinance, or for a determination whether a particular proposed course of action by said mobilehome park owner is allowable, valid and in conformity with the ordinance. The Commission may designate forms for the filing of such petitions. In the event that no such form has been designated, the petition shall be in writing, and shall contain the name, address and telephone number, if any, of the person requesting the interpretation or opinion; the name and address of each resident of a mobilehome space owned or managed by the person requesting the interpretation or opinion, if it is intended that such interpretation or opinion affects such mobilehome space; a brief statement of the facts giving rise to the request for interpretation or opinion; and a statement that a copy of such petition has been personally served upon or mailed to each such resident who might be affected thereby. C. A mobilehome park owner or any representative of the mobilehome park owner, operator or manager of a mobilehome space affected by the ordinance, upon payment of such filing fee as shall be duly established, may petition the Commission for a hardship increase of the maximum rent permitted to be charged pursuant to the ordinance. If the Commission shall designate a form for the filing of such petition, such petition shall be filed upon such form. If no such form shall be designated, such petition shall be in writng, verified by the applicant, and shall contain the name, address and telephone number of the applicant; the name and address of the resident of each mobilehome space which would be affected if the petition were granted; a statement of the facts giving rise to the petition for hardship increase, in sufficient detail that if established, such facts would demonstrate the existence of a hardship upon the mobilehome park owner warranting such hardship increase; a statement that a copy of the petiton has been served upon or mailed to each resident of a mobilehome park space which would be affected by the hardship increase if granted. Section 9. Conduct of Commission Proceedings A. Each party to a hearing may have assistance in presenting evidence or in setting forth by argument his position, from any attorney or such other person as may be designated by said party. B. Formal rules of evidence shall not apply in Commission proceedings, however, all oral testimony offered as evidence shall be under oath. C. In the event that any party shall fail to appear at the time and place set for hearing of a petition, the Commission may hear and review such evidence as may be .[ presented, and may make such findings and decisions as shall be supported by the evidence presented. D. The Commission, or designated hearing officer, shall make findings based on the evidence as to each fact relevant to the Commission's decision on the petition. The 8 000387 decision of the Commission shall be based upon the findings, and shall (1) interpret the ordinance; and/or (2) determine whether the action or proposed action of a mobilehome park owner is valid, permitted, and in conformity with the ordinance; and for (3) determine whether a hardship exists, and if so, the nature and amount of relief to be L granted or authorized to the mobilehome park owner. E. The Commission shall make a final decision no later than ten (10) days after the conclusion of its hearing on any petition. No rent increase shall be authorized unless supported by the preponderance of the evidence. A notice of the Commission's decision shall be sent to each party to a proceeding. Unless good cause to the contrary shall appear, each decision of the Commission shall apply on a space by space basis, taking into account the possibility of differences in base rent, services provided, and other facts differentiating rental units. F. Nothing in this ordinance, or in any decision of the Mobilehome Fair Practices Commission shall require any mobilehome park owner to raise rents or charges to residents. If an increase in the maximum permissible rent is authorized, a mobilehome park owner may raise rents or charges by a lesser amount, or for a lesser time than is authorized by the decision of the Commission. G. The findings and decisions of the Commission shall be final administrative action. There shall be no right of appeal to the City Council. Such findings and decisions shall be public record, and may be certified by the secretary of the Commission, if any, or by the City Clerk. Section 10. Remedies A. If a mobilehome park owner demands, accepts, receives or retains any space rent payment in excess of the amounts permitted by this ordinance, residents may recover said sum from mobilehome park owner as actual damages, together with a civil penalty of $500.00 per violation, and reasonable attorney's fees as determined by a court of competent jurisdiction. B. In any action for recovery of space rent, or for unlawful detainer based on nonpayment of rent, the resident may defend such action on the ground that the amount of space rent is in excess of the space rent allowed by this ordinance. C. Cathedral City may bring an action for injunctive relief to prevent or remedy any violation of this ordinance. D. In any action involving the validity of any proposed or actual space rent increase, the mobilehome park owner shall have the burden of proving all facts sustaining the space rent increase. i E. Nothing in this section is intended to limit or preclude any other lawful defense, cause of action, or claim of the mobilehome park owner or resident. 9 000388 Section 11. Effect on Local Law This ordinance shall not be construed to prohibit or preempt the Cathedral City Council from enacting legislation supplementing this ordinance, whether by enforcement, Einterpretation, or further regulation, so long as City Council in no way diminishes any protection which this ordinance affords to residents. Section 12. Retaliation No mobilehome park owner shall in any way retaliate against any resident for the resident's assertion of, or exercise of any right under this ordinance. Such retaliation shall be subject to suit for actual and punitive damages, injunctive relief, and attorney's fees. Such retaliation shall also be an available defense in any unlawful detainer action. In any action in which such retaliation is an issue, the burden shall be on the mobilehome park owner to prove that the dominant motive for the act alleged to be in retaliation was in fact other than retaliatory. Section 13. Mandatory Procedure The proceedings of the Mobilehome Fair Practices Commission are administrative proceedings, and are mandatory. Every person, whether mobilehome park owner or resident, is required to file a petition, and to carry proceedings from the Commission to conclusion before exercising the right to seek judicial relief. There shall be no appeal, as such, from a final determination of the Commission. A party not satisfied with such decision may then seek judicial remedy provided by the ordinance or otherwise provided by law. Section 14. Priorities -- Timeliness of Proceedings The Mobilehome Fair Practices Commission shall establish categories of petitions or requests, and may set priorities for those categories deemed most urgent. In view of the protections provided for tenants elsewhere in this ordinance, the highest priority for the proceedings of the Commission shall be given to the category for petitions of mobilehome park owners for hardship increase, and among such petitions, the highest priority shall be given to petitions based upon hardship alleged to be created by the mobilehome park owner's payment of utilities or other necessary services used in mobilehome spaces. The Commission shall so arrange its affairs that each petition filed by a mobilehome park owner seeking a hardship rent increase shall be heard and determined not later than 90 days following the filing of such petition. If the Commission shall deem it necessary in order to meet such time constraints, it shall request of the City Council the appointment of one or more hearing officers to hear such cases, make findings thereon, and recommend disposition thereof to the Commission. If any case in which a verified petition, or any affidavit or declaration under penalty of perjury has been filed by a mobilehome park owner statings facts which appear prima facie to constitute a hardship, if such petition is not heard and determined within 90 days of its filing, exclusive of any delays requested, consented to or caused by the mobilehome park owner or his representative, no fees, charges or costs shall be charged or assessed against said mobilehome park owner for any 10 000389 of the hearing costs of said Commission. Section 15. Partial Invalidity If any section, subsection, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdicton, such portion shall be deemed a separate, distinct and independent provision and such a decision shall not invalidate the remaining portion thereof. Section 16. No Waiver Any provision of a lease agreement, by which the resident agrees to modify or waive any right granted under this ordinance shall be void as contrary to public policy. This section shall apply only to rental agreements executed on and after the effective date of this ordinance. Section 17. Challenges in Validity of Act If any action in which the validity of this ordinance or any part thereof is challenged, reasonable attorney's fees shall be awarded to the prevailing party or parties. Section 18. Effective Date This ordinance shall take effect and be in full force and effect ten (10) days after passage. Section 19. Publication The City Clerk is hereby ordered and directed to cause same or a summary thereof or a display advertisement, duly prepared according to law, to be published in accordance with law. The foregoing ordinance was approved by a majority of the voters of the City of Cathedral City voting thereon at a special election held on March 8, 1983 and pursuant to Elections Code Section 4013 is considered as adopted upon the date of March 15, 1983, the date that the vote of such election was declared by Resolution No. 83-15 of the City Council. Al 41,( V--12- "it 4.1i MAYOR ATTEST: / CI CLERK 11 000390