HomeMy WebLinkAbout2017-06-27 - AGENDA REPORTS - FIRST READING OF THE PROPOSED UPDATES TO THE SANTA (2)Agenda Item: 14
CITY OF SANTA CLARITA
Q) AGENDA REPORT
UNFINISHED BUSINESS
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CITY MANAGER APPROVAL: 1
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DATE: June 27, 2017
SUBJECT: FIRST READING OF THE PROPOSED UPDATES TO THE SANTA
CLARITA MUNICIPAL CODE 6.02 - MANUFACTURED HOME
PARK RENT ADJUSTMENT PROCEDURES
DEPARTMENT: Community Development
PRESENTER: Erin Lay
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City Council introduce and pass to second reading an ordinance entitled, "AN ORDINANCE OF
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING
CHAPTER 6.02 OF TITLE 6 OF THE SANTA CLARITA MUNICIPAL CODE
CONCERNING MANUFACTURED HOME PARK RENT ADJUSTMENT PROCEDURES."
BACKGROUND
Over the last two years, the City Council and staff have heard concerns from Park Residents,
Park Owners, and the Manufactured Home Rental Adjustment Panel (Panel) regarding the
difficulty of the appeal hearing process. City staff proposed a number of changes to Chapter
6.02 to address those concerns. The staff report from the City Council meeting of June 13, 2017,
(attached for your reference) outlines the background of this process in greater detail.
At the June 13, 2017, City Council meeting, the City Council gave the following direction:
• Proceed with the Hearing Officer concept as the method to hear rent adjustment appeals;
• Lower the signature threshold required to initiate appeals from 50% -plus -one resident to
33% of the residents;
• Require, rather than encourage, Park Owners to notify residents of planned Capital
Improvements and Capital Replacements prior to the start of construction; and
• Retain the existing language in Chapter 6.02.170C, stating that a decision of the Hearing
Officer shall be final, which is now found in the draft at Chapter 6.02.170D
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A summary of these proposed changes is shown below. The Ordinance containing the redline
version of the proposed changes to Chapter 6.02 is attached to this report.
L Section 6.02.020 - Definitions
a. Language requiring Park Owners to notify Park Residents of planned Capital
Improvements and/or Capital Replacements prior to construction has been included in
the redline version of Chapter 6.02 at Section 6.02.020.
III. Section 6.02.040 - Panel/Hearing Officer
a. A change to the use of a Hearing Officer process rather than a Panel to adjudicate
appeals first appears in this section of the document. Other changes needed for
consistency with this are shown throughout the document.
VII. Section 6.02.120 - Annual Space Rent Adjustment Appeal Petitions
a. Reducing the signature threshold required to initiate appeals from 50% -plus -one
resident to 33% of the residents. Individuals listed on the rent roll or named as owner
on the State registration of the manufactured home on that space are eligible to sign
the petition.
ALTERNATIVE ACTION
Other action as determined by City Council.
FISCAL IMPACT
There is no fiscal impact associated with the First Reading of the Proposed Updates to the Santa
Clarita Municipal Code 6.02.
ATTACHMENTS
City Council Agenda Item 19 - June 13, 2017
Ordinance - with Redline Version of Chapter 6.02
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Agenda Item: 19
CITY OF SANTA CLARITA
AGENDA REPORT
UNFINISHED BUSINESS '�ty,�
CITY MANAGER APPROVAL: A J ��,3
DATE:
June 13, 2017
SUBJECT:
PROPOSED UPDATES TO SANTA CLARITA MUNICIPAL CODE,
CHAPTER 6.02 - MANUFACTURED HOME RENT ADJUSTMENT
PROCEDURES
DEPARTMENT:
Community Development
PRESENTER:
Erin Lay
RECOMMENDED ACTION
City Council discuss the proposed changes and provide direction to staff
BACKGROUND
Chapter 6.02 of the Santa Clarita Municipal Code (Chapter 6.02) - Manufactured Home Park
Rent Adjustment Procedures, was implemented in 1991 to protect manufactured home Park
Residents from excessive space rent increases, while recognizing the legal right of the
manufactured home Park Owners to receive a fair return on their property and sufficient rental
income to cover reasonable costs. The State of California Department of Housing and
Community Development retains jurisdiction for most issues related to manufactured home
parks, including park operations, sales and registration, leases, maintenance, and construction
permits. The City of Santa Clarita's (City) jurisdiction and authority extends only to those issues
specifically addressed in Chapters 6.02 and 6.04.
Over the last two years, the City Council and staff have heard concerns from Park Residents,
Park Owners, and the Panel regarding the difficulty of the appeal hearing process. City staff
proposed a number of changes to Chapter 6.02 to address those concerns. Those proposed
changes were presented at two public comment meetings held on April 3 and 4. Approximately
60 individuals collectively attended the public comment meetings and provided staff with
feedback on the proposed changes. Those attending also commented on other issues related to
the current implementation of Chapter 6.02.
The proposed changes were presented to the City Council Development Committee
(Kellar/Miranda) on April 25. The changes were discussed by the Committee and public
comment was received.
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The proposed changes to Chapter 6.02 were presented to the City Council on May 9. The City
Council commented on a variety of concerns with the proposed changes to Chapter 6.02,
including: the need to make sure that language in Chapter 6.02 would make Park Residents
comfortable with the Hearing Officer concept; that definitions contained in the proposed changes
to Chapter 6.02 would use clear terms; and that comments from public and the City Council
would be considered and incorporated into the proposed changes to Chapter 6.02, where feasible.
Park Residents were encouraged to email the City Council with their concerns. The City Council
requested that the new language be taken back to the Development Committee for review, and
returned to the City Council for further discussion.
Following the May 9 City Council meeting, staff compiled a list of concerns obtained from
comments made at public meetings and written correspondence received by the City Council.
Those concerns were organized to track the relevant sections of Chapter 6.02, and discussions
were held with staff and the City Attorney to make additional draft changes to Chapter 6.02.
The City Council Development Committee again met on June 5 to further discuss this item,
which included the additional changes made in response the City Council's direction on May 9
and the public comments.
The following is a synopsis of those comments, with staff responses below each:
L Section 6.02.020 - Definitions
a. Several commenters requested expanded definitions of terms (i.e. Capital Improvements,
Capital Replacements, Maintenance), along with examples, in Chapter 6.02; it was felt
some terms were not clear for those using the Code.
o A new redline draft of Chapter 6.02 reflecting several expanded definitions is
included with this report.
b. Several commenters stated that it would be good practice to have Park Residents made
aware of Capital Improvements prior to implementation.
o Language encouraging Park Owners to notify Park Residents of planned Capital
Improvements and/or Capital Replacements prior to construction has been included in
the redline version of Chapter 6.02 at Section 6.02.020.
IL Section 6.02.030 - Applicability
a. One commenter requested that Chapter 6.02 should include language informing potential
buyers that long term leases do not fall under purview of Chapter 6.02.
o Language addressing this is already contained in the current version of Chapter 6.02
at Section 6.02.030, and additional language has been added to clarify the issue.
III. Section 6.02.040 - Panel/Hearine Officer
a. A request to change the Panel to include two members elected by the Park Owners and
two members elected by the Park Residents, plus a fifth independent member with
professional certification as an "arbitrator" approved by a majority of the Panel, with the
independent member acting as Chair.
o The decision to utilize a Hearing Officer format instead of a Panel format is an item
for City Council consideration; however, the recommendation to move to a Hearing
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Officer process remains because of the numerous complaints and comments the City
has received on all sides of the issue, including from Panel members themselves,
stating that the Panel appeal process is not timely, efficient, or fair to the parties. In
addition, getting a professional arbitrator to volunteer on the Panel is infeasible.
b. Concerns regarding the hiring standards for Hearing Officers.
o Should the City Council decide to use the Hearing Officer format, the process to
procure qualified Hearing Officers, who must have no ties to manufactured home
parks or residences, will be conducted in compliance with all City purchasing
policies. The award of contracts with Hearing Officers will be taken to City Council
for approval, allowing the public to review the procurement process and comment
prior to the selection of a Hearing Officer or Officers.
c. Concerns that the Hearing Officer concept will not speedup the appeals process.
o The Hearing Officer process eliminates the need to have two meetings per appeal,
thereby speeding up the process. In addition, several Hearing Officers could hear
multiple appeals simultaneously, rendering opinions faster.
IV. Section 6.02.060 - Park Registration Fee
a. Concern that rent increases can be requested by parks that don't have current registration.
o New language will be included in the redline to address this concern, stating that no
appeal hearing shall be scheduled or take place regarding a park until that park's
registration fees, including any penalties, are current. In addition, City staff monitors
all Park Owners to ensure payment including payment of late penalties.
V. Section 6.02.080 - Annual Space Rent Adjustment Notice
a. A request that space rent adjustment notices be given by September 1 to allow more time
for appeals.
o State law provides that a Park Owner has a minimum of 90 days to provide notice of
a rent adjustment. The City is therefore preempted by State law to require more notice
be provided to Park Residents.
b. Several individuals felt that staff should validate that rent increase notices are in
compliance with the Ordinance before the notices go to Park Residents.
o The redline of Chapter 6.02 contains new language to address this concern. These
documents will be due to staff on September 1 to allow reviews to be complete by
September 15; then notices to Park Residents would go out by October 1. Associated
changes were made in 6.02.020 and 6.02.090, moving the CPI calculation date a
month earlier. This will allow sufficient time for Park Owners to prepare their Notices
one month earlier than previously required.
VI. Section 6.02.090 - Allowable Methods for Space Rent Adiustments
a. A concern that Park Residents are no longer required to receive supportive documents for
proposed rent increases, previously in Section 6.02.090 B(1)(b).
o Chapter 6.02 never required that each individual Park Resident receive their own
copy of supportive documents. The update in 2015 introduced the requirement, but it
does require that supportive documents be available for review in the individual park
office. The redline changes contain new language to address concerns regarding
availability of documents by requiring that supportive documents be available for
review in both the individual park office and at City Hall.
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b. A request for language specifying that only current year costs may be "passed through" to
the Park Residents.
o The current Ordinance contains language stating that Park Owners can only charge
for items that are completed and paid for within the last 24 months.
c. Concern over the change from "365 -day" to "annual" increases.
o The change from "once every 365 days" to "once each calendar year" was
implemented with the 2015 update of Chapter 6.02. The goal was to allow a Park
Owner to continue to implement rent adjustments on January 1, even if the previous
year's rent increase had been delayed due to a protracted appeal process.
d. Would like supportive documents to be required for Standard increases in government -
required services and utilities, with only annual increases or decreases allowed.
o The proposed redline includes a requirement for the submittal of documentation for
government -required services. State law preempts the City's ability to limit Park
Owners to only annual increases.
VII. Section 6.02.120 - Annual Space Rent Adiustment Appeal Petitions
a. Request to allow individual Park Resident appeals, not just appeals based on 50% -plus -
one resident in a given park.
o This is an item for City Council consideration; however, the number of appeals could
increase dramatically with such a change, increasing the costs of administering
Chapter 6.02 and appeals as well.
b. Concern that Chapter 6.02 requires use of an official petition form.
o The current language in the Chapter 6.02 under Section 6.02.120 D outlines the
petition form. The use of an official petition form was created in order to provide
assistance to Park Residents as to the information required by Chapter 6.02, and to
assist staff in making timely and efficient reviews of the petitions in order to schedule
an appeal hearing. The current form used was approved by the Panel.
c. Concern that Section 6.02.155 was eliminated in the previous update.
o While the Section was eliminated in the previous update, the language itself was not.
Language formerly in Section 6.02.155 A is now found at Section 6.02.120 D.
Language formerly in Section 6.02.155 B is now found at 6.02.120 G.
VIII. Section 6.02.170 - Decision of the Panel/Hearine Officer
a. Request that Panel or Hearing Officer decisions be appealable to the City Council.
o Currently Chapter 6.02 states that decisions of the Panel are not appealable. Part of
the rationale for the Hearing Officer concept lies in the complete impartiality of the
Hearing Officer and their experience in understanding complex issues and rendering
fair opinions, making appeals of decisions unnecessary. If decisions of the Hearing
Officer are made appealable to the City Council, the Hearing Officer essentially
becomes a necessary but ineffective step in the process, with all decisions likely to be
appealed. This ultimately makes the City Council the Panel. This is an item for City
Council consideration; however, the recommendation is to continue the practice of
appeal decisions being final. Appeals can be made through a court process.
b. Remove all verbiage requiring Park Residents or Park Owners to use the legal system
when disagreement with an appeal hearing decision is made. Use of the courts is always
an option which can be pursued.
o This language is intended for procedural clarification.
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IX. Comments made not relatine to specific Sections of Chapter 6.02
a. An individual requested reinstatement of a previous requirement for Park Owners to
reduce space rent, appropriately, when Park services are diminished or eliminated.
o The redline addresses this by adding back language previously in Section 6.02.130.
b. A request was made to reinstate a previous requirement that Park Residents approve
Capital Improvements and Capital Replacements which would subsequently be added to
the Park Residents' space rent.
o That particular provision applied only to rent increases that were requested as a result
of a reduction in Net Operating Income (NOI). The NOI methodology was only used
once in the history of Chapter 6.02 and required accountants be hired to interpret the
information. As a result, the process for requesting a rent increase using the NOI
method was eliminated. No other methods of increases require property owners to get
consent from residents to improve their property.
A number of other comments were made at public meetings regarding the update, but many of
those comments were general in nature, and there was nothing to include in the changes to
Chapter 6.02 based upon those comments. A list of such comments is attached.
At the Development Committee meeting on June 5, Committee members discussed the threshold
for appeal petitions, which currently requires signatures from 50% -plus -one of the residents in
the park. The comment was that this threshold may be too difficult, especially in larger parks.
The Committee members also discussed and recommended changing the word from
"encouraged" to `required" relative to Park Owners notifying Park Residents of planned Capital
Improvements and/or Capital Replacements prior to their construction. In order to make
notification a requirement, the following issues need to be resolved: the timing of the notice; the
format of the notice; and whether or not failure to give such notice is grounds for an appeal.
Based on the information received from the public, the City Council Development Committee,
and the City Council, staff feels that the proposed changes should address a number of on-going
concerns related to the administration of Chapter 6.02. The City continues to be aware of the
need to balance the needs of the Park Owners and Park Residents, and the proposed changes to
Chapter 6.02 are intended to maintain that necessary balance.
Pending the direction of the City Council, the potential timeline for the amendments to Chapter
6.02 is as follows:
• June 27, 2017 - Present First Reading to the City Council
• July 11, 2017 - Present Second Reading to City Council.
• September 26 or October 10, 2017 - City Council to consider the award of contracts for
Hearing Officers and appropriate funding for the effort.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
There is no fiscal impact associated with this phase of the update to SCMC 6.02.
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ATTACHMENTS
Matrix of 6.02 Issues - Specific to Sections
Matrix of 6.02 Issues - General Comments
6.02 FINAL REDLINE
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ORDINANCE NO. 17 -
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, AMENDING CHAPTER 6.02 OF TITLE 6 OF THE
SANTA CLARITA MUNICIPAL CODE CONCERNING
MANUFACTURED HOME PARK RENT ADJUSTMENT PROCEDURES
WHEREAS, almost all of the manufactured homes in the City of Santa Clarita (City) are
located in rented spaces in manufactured home parks; and
WHEREAS, in the City, there are 16 manufactured home parks containing just under
2,000 spaces; and
WHEREAS, manufactured homes in manufactured home parks provide an important
alternative form of housing for City residents; and a
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WHEREAS, a significant number of manufactured home owners and residents are older
individuals, many of whom live on fixed incomes. A significant number of manufactured home
owners and residents are of low or lower income. These persons may expend a substantial c
portion of their income on rent and may not be able to afford other housing within the City; and •A
WHEREAS, there is currently a serious shortage of affordable housing in the City; and
WHEREAS, manufactured homes have unique characteristics as a form of housing.
First, ownership is split. The individual who owns the manufactured home typically does not
own the pad on which the home is placed. Instead, the manufactured home owner typically rents
a space at a manufactured home park, on which the manufactured home is placed and then
affixed with a foundation and landscaping. Second, manufactured homes are not mobile. Once a
manufactured home is placed on a pad in a manufactured home park, it is costly to move and
relocate the home. Plus, moving a manufactured home can damage the home. Third, unlike
those who rent apartments or single family residences, manufactured home owners make a
substantial financial investment in the homes. Fourth, senior citizens living on fixed incomes
and people of low or lower income often rely on manufactured homes for their housing.
Together, these factors create a unique situation where the manufactured home owners are
essentially captives of the manufactured home parks. The manufactured home Park Owners are
in a position to charge excessive and exorbitant rents, knowing that the manufactured home
owners cannot readily relocate in response to rent increases. Thus, in an unregulated market,
there is disparity between the respective bargaining positions of those who own the
manufactured homes and those who own the manufactured home parks; and
WHEREAS, manufactured homes constitute an important source of housing for senior
citizens and persons of low and moderate income. There is a limited amount of alternative
housing affordable to and suitable for the typical manufactured home resident, and manufactured
home parks are a valuable resource of affordable housing; and
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WHEREAS, the disparity in bargaining power discussed above still exists, and therefore
the need for effective and fair manufactured home space park rent adjustment procedures
continues; and
WHEREAS, the City Council desires to amend the Santa Clarita Municipal Code,
consistent with state law and its police powers to regulate for the protection and benefit of the
public health, safety, and general welfare of its residents, in order to address the concerns
presented to the City Council by manufactured home Park Residents, Park Owners, and City
staff regarding the continued implementation and application of the City's Manufactured Home
Park Rent Adjustment Procedures; and
WHEREAS, based on the above findings, related staff reports and presentations, and
public input, the City Council hereby adopts the following Ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
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SECTION 1. Chapter 6.02 of the Santa Clarita Municipal Code is hereby amended to W
read as follows:
MANUFACTURED HOME PARK RENT ADJUSTMENT PROCEDURES
6.02.010 Purpose
6.02.020 Dermitions
6.02.030 Applicability
6.02.040 Hearing Officer
Qualifications
6.02.050 Registration
6.02.060 Registration Fee
6.02.070 Space Rent Limit
6.02.080 Annual Space Rent Adjustment Notice
6.02.090 Allowable Methods for Annual Space Rent Adjustments
6.02.100 Appeal Considerations
6.02.110 Amortization Schedule
6.02.120
Annual Space Rent Adjustment Appeal Petitions
6.02.130
Change in Ownership Space Rent Adjustment Procedures
6.02.140
Reduction in Services
6.02.150
Vacant Spaces
6.02.160
Appeal Hearings
6.02.170
Decision of the Hearing Officer
6.02.180
Miscellaneous Provisions
6.02.010 Purpose.
A. A Manufactured Home Park Resident's (Park Resident) tenancy in a manufactured home
park is substantively different than traditional apartment tenancy in that the Park Resident
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owns their manufactured home, while still being subject to space rents.
lqempq eTo move a manufactured home is costly and difficult4o=sae, and there may
not be available spaces in other nearby manufactured home parks in which to relocate,
resulting in the Park Resident having fewer options to move out of the park to find lower
rents.
B. Manufactured Home Park Owners, (Park Owner), having made a business investment in
the manufactured home park, have—the right to receive afair return on their property.
Nonetheless, as a result of the unique tenancy circumstances of a a h F)m-c Park
Residents, Park Owners should be subject to reasonable procedures in the imposition of
space rents.
C. For these reasons, among others, the City Council finds and declares it necessary to
provide a process whereby Park Residents are not subject to
excessive rent increases, while at the same time recognizing the rights of Park Owners to
receive a fair return and rental income sufficient to cover reasonable increases in the cost
of repairs, maintenance, insurance, employee services, additional amenities, and other �
costs of operation. W
D. Further, the intent of this Chapter and its continued implementation is to:
1. Prevent excessive and unreasonable manufactured home park space rent increases
2. Rectify the disparity of bargaining power that exists between owners of manufactured
homes and owners of manufactured home parks;
3. Provide a a h F)m-e Park Owners with an annual "by -right' Standard space
rent increase; and
4. Provide a process for ensuring w.,.....a..tured h Rm Park Owners a fair rate of return
where the annual Standard space rent increase does not provide a fair return.
6.02.020 Dermitions.
"Capital Improvements" means those new improvements which directly and primarily
benefit and serve the existing residents by materially adding to the value of the park,
appreeia4ly ....,.i,...,.ing its us .a.i life, sWbj et to the fA .. ffg li ffl t,.t:80Swith a life
expectancy of three (3) years or more. Capital Improvements must be completely
improvements, not a replacement of existing or previously existing improvements.
Expansions of existing Capital Improvements may be eligible under this definition only if
they are wholly new. Capital Improvements that are required as a result of improperly
deferred maintenance are not eligible Capital Improvements. The Capital Improvement must
be permanently fixed in place or relativelv immobile. New furniture, computer equipment,
and televisions, or movable music systems are not Capital Improvements. Examples of
Capital Improvements are:
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a. Brand new buildings.
b. Phvsical expansions of existing buildings (additional square footage).
c. Brand new parking areas, sidewalks, or roads in addition to those previously available
to residents.
d. Brand new trees or landscaping in addition to those previously available to residents.
e. New plav areas, pools, laundry rooms, common areas, and bathrooms in addition to
those previously available to residents.
Capital Improvement costs eligible to be passed through to Park Residents may only be those (o
which are directly attributable to the Capital Improvement itself and not those ancillary costs
which do not on their own meet the definition of Capital Improvement. Work completed by
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an emplovee or long-term independent contractor of the park as part of their usual duties is U
not a permissible Capital Improvement. a
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Park Owners must notifv Park Residents and the Director of Communitv Development in
writing of planned Capital Improvement work at least fourteen (14) calendar days prior to the c
project being undertaken. This notification must contain the following information: 'm
a. A general description of the project to be undertaken; and
a -b. The estimated start date: and
c. The estimated cost of the project: and
d. A statement that the Park Owner considers the project to meet the definition of
Capital Improvement at Santa Clarita Municipal Code 6.02.020.
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The notification to the Park Residents may be mailed to each Park Resident or affixed to the
main entry door of the each Park Resident's manufactured home. This notification is for
informational purposes only, and the Park Owner is not required to obtain approval from the
Park Residents prior to the start of the Capital Improvement project. Failure to meet this
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requirement for notification will result in the Park Owner being prohibited from including the
costs of the Droiect in afuture space rent increase based on Section 6.02.090 (D) (1).
"Capital Replacement" means the substitution, replacement, or complete reconstruction of a
piece of existing equipment, machinery, streets, sidewalks, utility lines, landscaping,
structures, or recreational amenities, or similar items within the manufactured home park
which materially benefits and adds value to the park-, with a life expectancy of three (3)
years or more. Capital Replacements must include the substitution or replacement of an
entire portion of the existing equipment, machinery, streets, sidewalks, utility lines,
landscaping, structures, or recreational amenities. Capital Replacements that are required as
a result of improperly deferred maintenance are not eligible Capital Replacements. Capital
Replacement items must be permanently fixed in place or relativelv immobile. Furniture,
computer equipment, televisions, or movable music systems are not Capital Replacements.
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Normal routine maintenance and repair is not Capital Replacement. Work completed by °r°
an emDlovee of the nark as Dart of their usual duties is not a permissible Capital Replacement
cost. c
Capital Replacements Renerallv occur as a planned activity, with a defined time period for 'w
completion of the project, and are completed by a long-term independent contractor.
Examples of what constitutes a Capital Replacement, what is a repair, and what is routine
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maintenance are listed below.
CAPITAL REPLACEMENT
REPAIR
Replacement of an entire HVAC unit with a new
Replacing parts of an HVAC unit
unit
Replacing the entire roof on a whole building
Repairing a portion of the roof
Replacing the entire pump system for a pool
Replacing parts in a pool pump
Planned replacement of an entire section of
Replacement of a few plants to address
permanent landscaping with all new plants
disease or damage
Replacing the entire plumbing system in a
Repair of plumbing leaks
building
Replacement of existing streets
Slurry Seal of streets
Replacement of a park monument sign with a
Replacement of some portions of an
existing monument sign.
completely new sign.
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The cost of a Capital Replacement for which a Park Owner is covered under insurance is not
edible as a Capital Replacement.
Park Owners must notify Park Residents and the Director of Community Development in
writing of planned Capital Replacement work at least fourteen (14) calendar days Prior to the
project being undertaken. This notification must contain the following information:
a. A general description of the project to be undertaken: and
b. The estimated start date: and
c. The estimated cost of the Project: and
d. A statement that the Park Owner considers the project to meet the definition of
Capital Replacement at Santa Clarita Municipal Code 6.02.020.
The notification may be mailed to the Park Resident or affixed to the main entry door of each
Park Resident's manufactured home. This notification is for informational purposes onlv and
the Park Owner is not required to obtain approval from the Park Residents prior to the start of
the Capital Replacement project. Failure to meet this requirement for notification will result
in the Park Owner being prohibited from including the costs of the project in a future space
rent increase based on Section 6.02.090 (D)(1).
"Chapter" means all Sections of Chapter 6.02 of the Santa Clarita Municipal Code.
"CPP' means the Consumer Price Index (all items) prepared by the Bureau of Labor Statistics
for the Los Angeles -Riverside -Orange County area relating to all urban consumers-,
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Replacement of windows on an entire building to
Replacement of a broken window
increase security and energy efficiency
Replacement of an entire section of wall or fence
Repair of fallen brick, stones, or wood
Replacement of street signs, parking signs,
or hazard signs
ROUTINE MAINTENANCE
Interior or exterior painting
Replacement of light bulbs
Landscape services, street sweeping, pool
cleaning, janitorial services
The cost of a Capital Replacement for which a Park Owner is covered under insurance is not
edible as a Capital Replacement.
Park Owners must notify Park Residents and the Director of Community Development in
writing of planned Capital Replacement work at least fourteen (14) calendar days Prior to the
project being undertaken. This notification must contain the following information:
a. A general description of the project to be undertaken: and
b. The estimated start date: and
c. The estimated cost of the Project: and
d. A statement that the Park Owner considers the project to meet the definition of
Capital Replacement at Santa Clarita Municipal Code 6.02.020.
The notification may be mailed to the Park Resident or affixed to the main entry door of each
Park Resident's manufactured home. This notification is for informational purposes onlv and
the Park Owner is not required to obtain approval from the Park Residents prior to the start of
the Capital Replacement project. Failure to meet this requirement for notification will result
in the Park Owner being prohibited from including the costs of the project in a future space
rent increase based on Section 6.02.090 (D)(1).
"Chapter" means all Sections of Chapter 6.02 of the Santa Clarita Municipal Code.
"CPP' means the Consumer Price Index (all items) prepared by the Bureau of Labor Statistics
for the Los Angeles -Riverside -Orange County area relating to all urban consumers-,
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Packet Pg. 127
14.b
published each vear in Julv for the preceding twelve (12) months. If the method of
calculating the CPI is substantially revised after the adoption of the Ordinance codified in
this Chapter, the method in effect upon adoption of such Ordinance shall continue to be used,
or the revised CPI shall be adjusted by the Finance Director of the City to correspond to such
method.
"Government --Required Services" means services required by governmental agencies which
are new or which are in addition to those services legally required to be provided by the Park
Owner or the Park Resident of the park on August 1, 1990. Such services include fees,
bonds, assessments, and charges legally levied by an agency of the federal, state, or local
government upon the Park Owner. Examples of allowable costs include, but are not limited
to: property taxes. City or Countv Fire District fees. Citv or Countv Vector Control fees, or
Citv or Countv Park District fees. Such services do not include predictable expenses for
operation of the park, such as common area utilities, expenses, or expenses which maintain
the safe and healthful use of the park facilities.
"Lease" means an agreement between the Park Owner and the Park Resident establishing �
terms and conditions of a tenancy which includes a predetermined fixed space rent increase W
applied for a predetermined length of time longer than one month. _
"Manufactured Home" shall be synonymous with the term "mobilehome," and means a
structure designated or designed for human habitation, transported over the highways to a
permanent occupancy site, and installed on the site either with or without a permanent
foundation. The term "manufactured home" does not include either a recreational vehicle
or a commercial coach, as such terms are defined in the Health and Safety Code.
"Manufactured Home Park" and "park" shall be synonymous with the term "mobilehome
park'—'," and mean an area of land where two (2) or more manufactured home spaces are
rented or leased out for owner -occupied manufactured homes used as residences. The term
"manufactured home park" does not include developments which sell lots for manufactured
homes or which provide condominium ownership of such lots, even if one or more homes in
the development are rented or leased out.
"Manufactured Home Park Owner" or "Park Owner" mean the owner, lessor, operator,
manager, or designated agent thereof of a manufactured home park in the City of Santa
Clarita.
Appeal Process Summary" means a document approved by the
panel Community Development Director (Director) providing m F a hRm-c Park
Owners and Park Residents with a summary of requirements related to the contents of a rent
7
Packet Pg. 128
14.b
adjustment notice, and the right of the Park Resident to request a hearing before Eke-�a
Hearing Officer, pursuant to Section 6.02.120.
"Rental Agreement" means an agreement between the Park Owner and a
Park Resident establishing the terms and conditions of a month-to-month tenancy.
"Space Rent" means the consideration, including any bonus, benefits, or gratuities,
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demanded or received for or in connection with the use or occupancy of a manufactured
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home within a manufactured home park. The use and occupancy of a rental unit shall
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include the exercise of all rights and privileges and use of all facilities, services, and
amenities accruing to the Park Residents thereof for which a separate fee authorized by the
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Mobilehome Residency Law (California Civil Code Section 798, et seq.) is not charged.
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Nothing herein shall be construed to prevent a Park Owner from establishing such fees as
may be authorized by the Mobilehome Residency Law. Space rent shall not include utility
charges for utility services, including gas, electricity, and/or sewer service provided to an
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individual manufactured home residence (as opposed to the park in general) where such �?
charges are billed to such a resident separately from the space rent, and such charges are a
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limited to the actual value of the utility service provided in the individual residence. W
6.02.030 Applicability.
A. General. The provisions of this Chapter shall apply to all manufactured home park sites.
B. Leases. The provisions of this Chapter shall not apply to tenancies covered by a lease
agreement in existence at the time this Chapter becomes effective. This exemption shall
apply only for the duration of the lease. Upon the expiration or termination of such lease,
this Chapter shall automatically become applicable to the tenancy. Spaces not covered by
such a lease and not exempt from this Chapter by state law (inclusive of Civil Code
Section 798.17) shall be deemed to be spaces regulated by this Chapter. Residents who
enter into a lease meetine the terms of Civil Code Section 798.17. which includes leases
in excess of twelve (12) months, either when moving into the nark or as a current tenant,
shall be subiect to the terms of their lease and not the terms of this Chanter as reauired by
state law
6.02.040 Hearing Officer
Qualifications
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A. Anneals shall be heard by an imnartial Hearing Officer. A Hearine Officer selected by °r°
the Citv Council, consistent with the Citv's Request for Qualifications process
undertaken by City staff, shall consider and decide appeals for rental increases. The c
Hearing Officer shall be assigned to hear the appeal by the Director within a reasonable 'm
period of time after the Director has accepted an appeal petition as complete. The 'w
Hearing Officer shall meet one of the following criteria:
1. Completion of a Juris Doctor or equivalent degree from a school of law, and
experience in arbitration, mediation, or conflict resolution which, in the sole judgment
of the Director, provides that person with the knowledge and skills to conduct a
manufactured home space rent hearing in a professional and successful manner: or
2. Possession of the knowledge and skills to conduct a rent increase hearing, and
completion of at least three (3) rent increase appeal proceedings that involved issues
the Director considers similar to those raised in space rent appeals.
A -B. Guidelines, Rules, and Regulations. The City Council may from time to time
adopt by resolution such guidelines as it deems necessary to assist and direct the iffile! in
t�. is fit t:,. 'n., i a ,.a,...t :t i a
axE-3EE9H3pri Entvris She thin i-mc�s Own Pules Fans
Put in Wfiting and be R" Me 11I the seefetafy of the panel at a4l times. Thepanelma�
appoifAsookow4eers as :t may a n teaffy :t II
.Hearing Officer in
the accomplishment of his or her duties.
B -C. Staff. The City Manager shall provide all administrative staff necessary to serve
in the pffHeIcanducting of appeal hearings. Staff from the Department of Community
Development shall sen e as the .sent, n of the panel ands�be responsible for the
maintenance of all records 4 @ panel. T-ke seer.taf ,.Ftp.@ panel sliall llreepLelated to
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anneal hearings. A record of 4s preeeedings w4i,9 all hearings shall be kept and shall be
open for inspection by any member of the public. The City Attorney or the designee of
the City Attorney shall act as legal counsel to the all anneal hearings.
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6.02.050 ReListration.
A. Registration. Park Owners must register all manufactured home parks and manufactured
home rental spaces within such parks with the Department of Community Development.
The registration shall include all of the following:
1. All information requested on forms sent by the City to the Park Owner for the
purpose of registration; and
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14.b
2. Arent roll for the month immediately preceding the registration, reflecting the space
number, resident name, space rents, and a listing of all other charges paid by the Park
Resident, including:
a. Utilities not included in space rent;
b. Any amortized Capital Improvement or Capital Replacement charges; and
c. Any other monthly fees as may be required of the Park Resident.
B. Re -registration. The Department of Community Development is hereby empowered to
require such re -registration as it deems necessary.
C. Applicability. The registration requirements provided for in this Section, or which may a
be established by the Department of Community Development, shall apply to all t
manufactured home parks, including those exempt from the space rent ceiling limitations �?
and procedures in the Chapter by reason of the existence of a valid space rent agreement. C4
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6.02.060 Registration Fee.
A. Establishment of Fee. Park Owners shall pay to the City of Santa Clarita a registration
fee for each manufactured home rental space regulated by this Chapter within the park as
may be established by resolution of the City Council. Half of the fee paid for each space
may be charged to the Park Resident occupying that space by a separately specified one-
time charge on a space rent bill within sixty (60) calendar days after the fees have been
paid to the City. The registration fee shall not apply to parks and spaces exempt from the
payment of fees by state law (inclusive of Civil Code Section 798.17).
B. Penalty. If a Park Owner does not pay the fee provided for in Subsection A of this
Section within the time period established therein, a late charge shall be assessed in an
amount as established by resolution of the City Council.
C. Unpaid Fees. Nom appeal hearing shall be scheduled or take place regarding a park
TWuntil that park's registration 4 fees including any penalties
are current. Failure to pay a City registration
fee is not grounds for a space rent adjustment appeal.
D. Purpose of Fee. The registration fee provided for by this Section is intended to defray
any reasonable and necessary costs associated with the administration of the regulations
contained in this Chapter.
E. Accounting of Funds. The Director of Community Development is directed to maintain
an accurate accounting of all direct and indirect costs of administering the regulations
contained in this Chapter. The Director shall submit to the
City Manager a report of such costs at least annually.
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6.02.070 Space Rent Limit.
A. Effective Date. NF) maau4iaurea he r eNo Park Owner shall charge space rent for any
manufactured home space in an amount greater than the space rent in effect on August 1,
1990, except as permitted pursuant to the provision of this Chapter.
B. Exemption. If a park space is exempt from the application of the space rent limitation or
registration fee portion of this Chapter by reason of the existence of a space rent
agreement and this agreement expires, the space rent limit for that space shall be the
space rent in effect on the date immediately preceding the date on which the agreement
expires.
6.02.080 Annual Space Rent Adiustment Notice.
A. Notice. Prior to the annual space rent adjustment, the Park Owner shall provide the City
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and each Park Resident with a notice of proposed rent issu adjustment. �?
The notice shall be provided to each Park Resident no later than October 1, to be a
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effective either on January 1 of the following year or on the resident's anniversary date 00
following January 1. All ..paeo refA a dju............04iPA....l.,.n .04#RiB ,.n 04:414
B. The Annual Space Rent Adiustment Notice (Notice) and the documents in suDDort of an
increase, as specified in Section 6.02.080(E), shall be provided to the City, as set forth in
Section 6.020.080(H), for a preliminary review no later than September 1 for anv
increase DroDosed to be effective January 1 of the followine vear or on the resident's
anniversary date following January 1
C. Contents of Notice. All Space Rent Adjustment Notices shall contain all of the following
information:
1. A listing of all affected spaces 4 -}including space number and name only. The Sze
,.4441P. _p iden4 �amount of the space rent shall not be included in the listing.
Affected spaces include all those spaces being notified of a proposed space rent
adjustment; and
2. A copy of the current Panel of this Chapter. The Summary will
be provided annually to the Park Owner by the City for inclusion in the wee
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__n+ a- - ustwe4 Notice.
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C. Standard Space Rent Adjustments. For a space rent adjustment which is based on Section
6.02.090(C) — Standard Space Rent Adjustments:
1. A statement that the Park Owner considers that portion of the space rent adjustment to
be consistent with the limitations set forth in Section 6.02.090(C) of this Chapter;
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2. The amount of that Park Resident's space rent adjustment both in dollars and as a
percentage of existing rent;
3. The amount of the Park Resident's space rent adjustment attributable to an increase in
government -required services in dollars;. Documentation for that increase must be
provided to the Park Residents and City, consistent with Section 6.02.080(E) below
and
4. The amount of the Park Resident's space rent adjustment attributable to an increase in
utility costs in dollars. Documentation for that increase must be provided to the Park
Residents and City, consistent with Section 6.02.080(E) below.
D. Non -Standard Space Rent Adjustments. For a space rent adjustment which is based on
Section 6.02.090(D)—Non-Standard Space Rent Adjustments:
1. A statement that the Park Owner considers that portion of the space rent adjustment to �?
be consistent with the limitations set forth in Section 6.02.090(D); a
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2. The amount of that Park Resident's space rent adjustment both in dollars and as a
percentage of existing rent; and
3. Information supporting the level of Non -Standard space rent adjustment proposed.
Such information must include the following:
a. Increases based on Section 6.02.090(D)(1): Specific reference to the amortization
time period assigned to each Capital Improvement or Capital Replacement as
provided for in Section 6.02.110-(A) and any interest costs being included;
b. Increases based on Section 6.02.090(D)(2): The mathematical calculations or
summary of the analysis relied upon by the Park Owner to determine a fair rate
of return and the amount of the proposed Non -Standard space rent adjustment to
yield that fair rate of return, as provided for in Section 6.02.090(D)(2); and
c. A statement informing the Park Resident that the supporting documentation for
the Non -Standard space rent adjustment will be available to Park Residents at the
park management office during all normally observed office hours beginning the
same day the Notice is provided.
E. Supporting Documentation. The supporting documentation for a Non -Standard space
rent adjustment shall be kept in the park management office for at least forty-five (45)
days, beginning on the date of the Notice of the proposed rent increase, and will be
available for review by affected Park Residents during all normally observed office
hours. In cases where a space rent appeal petition has been submitted which meets the
criteria set forth at Section 6.02.120, the supporting documentation shall remain available
until a final determination is made on the appeal. The Park Owner shall provide a copy
of the supporting documentation to the Citv Clerk's office when it is first made available
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14.b
in the nark management office so that affected Park Residents may also review the
documentation at Citv Hall.
F. During the periods described above, copies of all supporting documents will be provided
to affected Park Residents upon request. A Park Resident may request the documentation
in one or both of the following formats:
1. Physical copies shall be provided at a fee set by the Park Owner, not to exceed $.25
per page; and
2. Electronic copies shall be provided free of charge, in a PDF or similar format, as an
email attachment sent to the requesting Park Resident's email address.
G. The paAi owner and resia ...t glqa" *Ap..*Notice will contain a s]«rt'� a
rehAedss ace for the Park Resident to the ial felt adiustmenA statiftgLignattesting that t
F doeumefAs ,.r notioes ired b t4 is ...:,...they have beetrreceived 4�, U
the tepaHtNotice. The original of the signed document, acknowledging receipt of C4
infe .....,alien deet.w.,...t.. of netieesthe Notice required by this Section, shall be retained W
by the Park Owner and a copy thereof provided to the Park Resident. In the event a Park
Resident fails or refuses to e*esH4es� the 4eeH*+et4Notice as required herein within ten c
(10) days after the Park Owner's request that the tenant do so, the Park Owner shall v_,
prepare a declaration, under penalty of perjury, stating that the �F� �t ��, aoetffnefAs, �>
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aNotice required by this Section 4amaehas been delivered to the Park Resident, the
date the Park Owner requested the Park Resident to sign the joint document
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acknowledging receipt, and the date the declaration was executed.
H. Submission of Annual Space Rent Adjustment Notices to Communitv Development
Department.
1. If a Park Owner intends to notice a rent adiustment at its Dark for the uDcomine vear
the Notice and all supportive documents for the increase required in Section 6.02.080
(E) must first be provided to the Community Development Department on or before
September 1, for a Preliminary review for consistencv with the requirements of this
Chapter. Staff will have until September 15, or the Monday following that date, to
notify a Park Owner of any Notice deficiencies that should be corrected.
2. If a Park Owner wants to anneal the Citv's determination reeardine deficiencies in the
Notice, the Park Owner may appeal to the Hearing Officer by not correcting the
Notice, but including in the Notice sent to the Park Residents a statement as to which
portions of the Notice the Citv considers deficient and why the Park Owner disagrees
with the City's determination. If such an appeal is made, the Notice must still be
delivered to the Park Residents by the deadline set forth in Section 6.02.080(A). The
Citv's determination with respect to the Preliminary review of the Notice does not
preclude any challenge or appeal of any portion of the Notice or proposed rent
adjustment by the Park Residents. The Hearing Officer will resolve anv appeals by
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14.b
Park Residents, as well as anv disputed matters between the Citv and the Park Owner
at the same hearing.
6.02.090 Allowable Methods for Annual Space Rent Adiustments.
A. Frequency. The annual space rent adjustment may occur only once every calendar year
B. Annual Space Rent Adjustment Methods. Any annual space rent adjustment shall utilize
the following methods-_ (1) an annual space rent adjustment based on Section 6.02.090
(C) — Standard Space Rent Adjustments; and/or (2) an annual space rent adjustment
based on Section 6.02.090{D) — Non -Standard Space Rent Adjustments.
C. Standard Space Rent Adjustments. The following adjustments in rent shall be permitted
by right and may not be appealed except in the situations specified in Section
CL
6.02.120(C). This adjustment shall be calculated using the Consumer Price Index (CPI)
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reported each rAJuly for the previous twelve (12) month period of A+ego-AJuly 1 �?
through TJune 30 reported— by the Bureau of Labor Statistics for the Los Angeles- �
Riverside -Orange County area. W
1. An adjustment of space rent not to exceed the lesser of the annual adjustment in the
CPI reported each-Wuly for the previous twelve (12) month period of
A+tgwAJuIy 1 through T. June 30 reported by the Bureau of Labor Statistics for
the Los Angeles -Riverside -Orange County areas or five percent (5%). In such cases
where the CPI is at or below zero percent (0%), a reduction in space rent is not
required;
2. An adjustment based on the actual increase in the cost of government -required
services; and
3. An adjustment based on the actual increase inutility costs where such utilities are
included in the space rent.
The Director of Community Development or designee, annually, will receive the CPI
updated result and cause notice of such to be mailed to each Park Owner and Park
Resident in the City. Such Standard space rent adjustments will be calculated on the
space rent only, and will not be calculated on monthly costs related to amortized Capital
Improvements or Capital Replacements, utilities, or other costs not part of the space rent.
D. Non -Standard Space Rent Adjustments. A Non -Standard space rent adjustment may be
based on any of the following:
1. An adjustment, prorated equally among all the spaces in the park, to pay for the actual
costs of Capital Improvement or Capital Replacement, as defined in the definitions
Section of this Chapter, which were incurred within the twenty-four (24) months prior
to the date of then��Notice, and are not otherwise disallowed by state
law. Costs must be amortized as permitted in Section 6.02.110. The interest costs
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14.b
incurred to finance the Capital Improvement or Capital Replacement may be included
in the total amount amortized. If such interest costs are included, they may not
exceed those amounts which are based on commercially available rates for financing
obtained from outside sources or the Wall Street Journal prime rate for funds
borrowed internally; and/or
2. An adjustment, prorated equally among all the spaces in the park, designed to provide
the Park Owner with a fair and reasonable rate of return on investment. This
adjustment must be supported by:
a. An explanation of how the Park Owner has determined what it considers to be a
fair rate of return. This explanation could include, but is not limited to,
documents supporting the prevailing standards for a rate of return on investments
in manufactured home parks, or other similar investments; and
b. A financial analysis of the proposed rent increase showing information that �?
demonstrates *e�that the proposed increase is necessary to receive a fair C4
rate of return. °r°
c. In reviewing a fair rate of return increase, the Hearing Officer shall
determine what is fair and reasonable under the circumstances, taking into
account all relevant factors, which may include the following non-exclusive list of
factors:
i. Debt Service Costs. Where such costs are limited to increases in interest
payments from those interest payments made during the base year which
result from one of the following situations, or the equivalent thereof:
1) Refinancing of the outstanding principal owed for the acquisition of a park
where such refinancing is mandated by the terms of a financing
transaction made on commercially available terms, e.g., termination of a
loan with a balloon payment; or increased interest costs incurred as a
result of a variable interest rate loan used to finance the acquisition of the
park on commercially available terms; or
2) Increases in rental payments made on leases of land, and under such
circumstances, the Park Owner may include as expenses an amount not to
exceed the increase in such land lease rental payments occurring since the
previous rental adjustment for the park where such increase in land lease
rental payments is the result of inflation or the decrease in space rental
income, or based on other terms documented in writing. Such increased
land lease rental obligations shall be permitted only where the Park Owner
can show that the terms of the lease are reasonable and consistent with
prudent business practices under the circumstances. hi refinancing,
increased interest shall be permitted to be considered as an operating
expense only where the Park Owner can show that the terms of the
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14.b
refinancing were reasonable and consistent with prudent business practices
under the circumstances.
ii. The rental history of the manufactured home park, including:
1) The presence or absence of past increases;
2) The frequency of past rent increases and the amounts;
3) The Park Owner's response to any cost reduction measure; and
4�— The occupancy rate of the manufactured home park in comparison
to comparable units in the same general area.
iii. The physical condition of the manufactured space or the park of which it is a t
part, including the quantity and quality of maintenance and repairs performed �?
during the last twelve (12) months. a
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iv. Any increases or reduction in services during the twelve (12) months prior to _
the effective date of the proposed rent increase.
v. Existing space rents for comparable spaces in comparable parks, with
consideration given to the comparable quality of the park amenities and
services.
vi. A fair return on investment prorated among the spaces of the park.
vii. Other financial information in support of the increase.
viii. The cost of Capital Replacement(s) or Capital Improvement(s) as defined in
Section 6.02.090{D)(1).
E. Duplication of Costs. An amortized Capital Improvement or Capital Replacement cost
imposed as part of a Non -Standard space rent increase permitted in Section 6.02.090
(D)(1) may not be used in the calculation of a subsequent annual increase to recover a fair
and reasonable return on the property as permitted in Section 6.02.090-(D)(2).
Conversely,— a cost used in the calculation of an increase imposed as part of a Non -
Standard increase permitted in Section 6.02.090(D)(2) may not be used in a subsequent
annual increase as —an amortized cost provided for in Section 6.02.090(D)(1).
Furthermore, costs that are not permitted to be passed on to the Park
Residents under state law shall not be permitted in any rent increase.
6.02.100 Appeal Considerations.
A. Standard Space Rent Adjustments. In the case of a Standard space rent adjustment,
an appeal may only be brought' a..�in the situations outlined in Section
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6.02.120(C). In making a determination, the Hearing Officer may consider all
relevant information and may request any such information or documentation as tkey
deenzdeemed necessary, including but not limited to:
1. Verbal testimony
2. Copies of bills, invoices, or statements
3. Copies of receipts or checks
4. Other documents supporting the level of increase proposed
B. Non -Standard Space Rent Adjustments. In making the4a determination on the appeal
of a Non -Standard space rent adjustment, the Hearing Officer may consider all
relevant information, including but not limited to:
1. Verbal testimony
2. Copies of documents made available to the Park Residents as part of the noticing
requirement, outlined in Section 6.02.080(D)
3. Other documents supporting the level of increase proposed
C. Burden of Proof. The burden is on the Park Owner to provide sufficient information and
documentation to support the level of increase proposed in a Non -Standard increase. The
paHi4F[earing Officer will have the authority to determine the sufficiency of the
information and documentation provided, and to request, as they-deer*deemed necessary,
additional documentation to assist bkem in the4making a determination.
6.02.110 Amortization Schedule.
A. For the purpose of determining any rent adjustment permitted under the provisions of
this Chapter, the cost of Capital Improvements or Capital Replacements shall be
amortized, according to the following schedule, for those items listed. For items meeting
the definition of Capital Improvement or Capital Replacement herein, but not listed on
the amortization schedule, the amortization period shall be consistent with that prescribed
by federal law for depreciation.
Type of Improvement or Replacement
Amortization period
Backflow device
10 years
Carpeting
5 years
Copier
6 years
Copper pipes
10 years
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Drapes
5 years
Gas barbecue
3 years
Gas line
15 years
Gas valve and fire hydrant
10 years
Heater motor
5 years
Houses
30 years
Light fixtures
5 years
Linoleum floor
5 years
Oven
6 years
Patio furniture
5 years
Pool heater
5 years
Pump
5 years
Refrigerator
6 years
Roofing
18 years
Security fence
5 years
Sewer line construction
15 years
Solar system
10 years
Telephone system
6 years
Water heater
10 years
Water softener
5 years
B. Space Rent Invoice Documentation. Any amortized Capital Improvement or Capital
Replacement cost imposed as part of a Non -Standard space rent adjustment must be
clearly marked on the space rent invoice, or on another document included with the space
rent invoice, with the name of the Capital Improvement or Capital Replacement, the
monthly amount, and the date the cost will expire.
C. Amortized Costs Not Removed. A request for a hearing based on an amortized cost not
removed in a timely manner may be part of the appeal petition of an annual space rent
adjustment, or as a separate item. If an appeal petition based on an amortized cost not
removed in atimely manner is submitted outside the annual space rent adjustment appeal
process, it must meet the requirements of Section 6.02.120-(D) through (G). If the
pffl+elHearing Officer determines that an amortized cost was not removed in a timely
manner, resulting in overpayment by the Park Residents, the Hearing Officer may
require the amortized cost to be removed, and may require the Park Owner to reimburse
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affected Park Residents the amount of over -payment, subject to any limitations imposed
by law at the time of the p*HeFsHearing Officer's decision.
6.02.120 Annual Space Rent Adiustment Appeal Petitions.
A. Time Limits. A petition requesting an appeal hearing for an annual space rent adjustment
as allowed for in this Chapter, must be filed with the Department of Community
Development within forty-five (45) calendar days of service of the Notice of proposed
space rent adjustment, or forty-five (45) calendar days from the date of the space rent
increase if no Notice is received, whichever occurs earlier.
B. Insufficient Notice. Appeals may be filed for either Standard or Non -Standard space rent c
adjustments based on the claim that a Notice is insufficient because it does not meet the
requirements of Section 6.02.080. However, if no appeal petition meeting the a
requirements of this Section is received, or if the appeal petition does not identify
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insufficiency of the Notice as a cause for appeal, the Notice will be considered valid and �?
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C. An appeal may not be filed and will not be heard for a Standard space rent adjustment
based on Section 6.02.090(C), except for one or more of the following reasons:
1. The CPI percentage adjustment proposed in the Notice is above the actual CPI
percentage provided in the City's most recent notice to the Park Residents and Park
Owners;
2. The increased costs of government --required services or utility costs in the proposed
space rent adjustment are greater than the actual costs incurred by the Park Owner;
and
3. A Notice that is not substantially in conformance with the requirements of Section
6.02.080.
D—Appeal Request Form. Appeal petitions must be submitted on an Appeal Request Form
apprwi-ed b the panel and obtained from the Community Development Department.
&D. All pages of the form must be complete, and the petition signature page must
contain signatures from residents of at least fiftythirty-three percent (3933%) of the
spaces regulated by this Chapter and affected by the proposed space rent adjustment -yrs
Individuals signing the space rent petition must be
those listed on the nark rent roll or named as the owner on the State registration of the
manufactured home on that space. Signatures of individuals not meeting at least one of
those criteria will not be counted toward the thirty-three percent (33%) requirement.
F --L. Appeal Justifications. The appeal petition must contain all causes for appeal
when it is submitted. Additional causes for appeal may not be added to the petition after
the petition has been submitted. Net- ithstffidin -, if the paiie' in its ii stig4ien
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FrF. Park Owner Notification. The rpsi a ...t....ubmi,+:..,. t4-- --' .. *City will
provide a full copy of the app @a! pet4iet}Reguest for Appeal package to the Park Owners
within ten (10) calendar days of submission of a complete Appeal Package to the
Department of Community Development.
H-. G. Determination by Director of Community Development. It shall be the sole w
discretion of the Director of Community Development (P4F@ete++to determine if the basis
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upon which the pet4iea*Reguest for Appeal is filed meets the criteria set forth in t4 is C
ehaptef.Section 6.02.120. No hearing will be scheduled unless such a determination is c
made. Only if the Director determines that the Request for Appeal meets the criteria of
this Chapter will a hearing be scheduled. However, the Director's determination that the
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Request for Appeal meets the criteria set forth in Section 6.02.120 of this Chapter does
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not eliminate the Park Owners richt to challenee durine an anneal hearine the validitv of U
the petition or assertions made in the petition during the appeal process. a
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1. If the Director determines that an Request for Appeal does not meet
the criteria set forth in *Section 6.02.120 the Director shall cause the Park c
Owner or other person designated on the park's registration and the affected Park v_,
Residents to be notified. Such notice shall be mailed, first-class postage prepaid, �>
within fifteen (15) calendar days of the submission of the appeal petition; and
2. If the Director determines that a appeal pet4iet}Reguest for Appeal meets the criteria
set forth in t4is ekap4efSection 6.02.120 he shall cause the Park Owner or other
person designated on the park's registration and the affected Park Residents to be
notified of the time, date, and place of the hearing. Such Notice shall be mailed, first-
class postage prepaid, at least fifteen (15) calendar days prior to the scheduled hearing
date.
6.02.130 Chance in Ownership Space Rent Adiustment Procedures.
A. Manufactured Home Sale. Notwithstanding any other provision of this Chapter, if
a manufactured home is voluntarily vacated by all tenants as a result of a sale of the
manufactured home to a new owner, and the manufactured home is not removed from
the site, then the rent may be increased by an amount not to exceed ten percent (10%).
The rent may only be increased pursuant to this Section once in any twelve (12)
consecutive -month period, regardless of additional changes in ownership. A change
in ownership increase does not preclude an annual space rent adjustment in the same
calendar year, so long as all noticing requirements as set forth in Section 6.02.080(C)
are observed.
B. Notice to Prospective Manufactured Home Buyer. As required in California Civil Code
Section 798.74.5, within two (2) business days of receiving a request from a prospective
homeowner for an application for residency for a specific space within a manufactured
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home park, if the management has been advised that the manufactured home occupying
that space is for sale, the management shall give the prospective homeowner a
sepatetecopy of the State -required document entitled "INFORMATION FOR
PROSPECTIVE HOMEOWNERS," which will include the space rent for the
prospective manufactured home buyer.
C. Notice to Manufactured Home Seller. The Park Owner will also provide a copy of
T F F)_ D :. 14omeov,44...s 4o 414 A "INFORMATION FOR PROSPECTIVE
HOMEOWNERS" to the Park Resident selling their manufactured home. It shall be the
responsibility of the current manufactured sihomeowner selling the
manufactured home to verify that the proposed space rent for the prospective buyer of
their manufactured home does not exceed the increase allowed in this Section.
D. Remedy. If a Park Resident seller or prospective manufactured °'
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home park buyer believes that the Park ownef is exceeding the permitted ten t
percent (10%) increase on space rent for a change in ownership, the party may seek any U
judicial remedy provided by law to enforce this Section. N
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6.02.140 Reduction in Services.
No Park Owner shall reduce or eliminate anv service to anv rental space unless a
proportionate share of the cost savings, due to such reduction or elimination, is
simultaneouslv passed on to the Park Resident in the form of a decrease in existing rent or a
decrease in the amount of a rent increase otherwise proposed and permitted by this Chapter.
In anv case where the Hearing Officer determines that a reduction in services has effectively
resulted in an increase of rent without notice thereof, the Hearing Officer may either order
the Park Owner to fix, repair, or otherwise cure the reduction in services, or reduce the rent
owed to the Park Owner in an amount that will compensate the Park Resident for such
reduction in services
6.02.150 Vacant Spaces.
If a space becomes vacant by virtue of there being no manufactured home situated on the
space, or the manufactured home on the space is owned by the Park Owner and the space has
not been rented to a resident for at least thirty (30) calendar days, the space rent may be
increased to a rate as determined by the Park Owner at the time the space is initially rented to
a new manufactured home owner. Once the space is rented to a new manufactured home
owner, all other controls in this Chapter shall become effective.
6.02.160 Appeal Hearings.
A. Conduct of Hearing. The Park Owner and Park Residents may appear at the rent
adjustment hearing and offer oral and documentary evidence. All parties to a rent
adjustment hearing may have assistance in presenting evidence and testimony, and
developing their position, from attorneys, experts, or such other persons as may be
designated by said parties. The hearing may be continued for a reasonable period of time
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as determined by the panel ..pon tl...,...sefA 4t4...&Aies orupon ,, Anding , f,.,.,.,1
ARMIN ,. 44.«..1.,.1. ,.,.«t:......«,.,. Made b tl.,. panel All 1.8..«:..,... and deliber..t:,..... ,.f4.,.
paiiel shall be Open to the pubblie. Hearing Officer.
B. Timeliness. During the course of an appeal hearing, the palselHearing Officer may
request information from the Park Owners or Park Residents. If such information is not
provided in a timely manner, or such information is not sufficient for the palselHearing
Officer to make t4eifa determination, the Hearing Officer may disallow all or any
portion of the proposed space rent adjustment. The panelHearing Officer will have the
authority to determine the timeliness and sufficiency of any information provided.
C. Appeal Justifications. Rent adjustment hearings for Standard space rent increases may
only be held for the causes specified in Section 6.02.120(B) and (C). Rent adjustment
hearings for Non -Standard increases may be held for causes specified in Section
6.02.120(B), of athef ,.....ses ,l,.t,.««.:"Pd t,. hp, AI :tl.:« the PHI=View of the panel as ,...tl:
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D. Rules of Evidence. The hearing need not be conducted according to the technical rules °r°
relating to evidence and witnesses, as applicable in courts of law. To be admissible,
evidence shall be of the type on which responsible persons are accustomed to rely in the c
conduct of serious affairs. A full and fair hearing shall be accorded to the parties to the v_,
hearing.
E. Preserving the Record. The anneal hearing proceedings shall be recorded electronically.
Any party who desires that the proceedings be recorded stenographically shall make
arrangements with the Department of Community Development at least five (5) calendar
days before the hearing. Any transcripts prepared by a reporter at the party's request
shall be at his or her expense, and the original shall be filed with the Department of
Community Development. If the party makes a request for a transcript of the electronic
recording at the time of or after —the hearing, he or she shall make arrangements to copy
the official recording with the Department of Community Development. All expenses
incurred for the transcript will —be borne by the requesting party.
F. Subpoenas. The palselHearing Officer may issue subpoenas requiring the attendance of
witnesses and/or the production of books or other documents necessary for evidence of
testimony in any action or proceedings before the panel ..pen «.,.."...t b the
peH,&1-Hearing Officer. Said subpoenas shall be signed by the ekaifp ers @*Hearing Officer
or his or her designated substitute and attested by the seef= _ ;=staff assigned to the appeal
hearing. Failure to comply with such subpoena shall result in contempt proceedings
under Government Code Sections 37106 through 37109.
6.02.170 Decision of the Pmte4-. Hearing Officer
!RlRRR!!f YRRf YRlR'Jslf E!LlY.RRf YRlRE R!!RRlR�L!!R�![Yf YYlYS
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«:44044 «,...,.1..4:,.44 440 1..4,.« 414..44 414 @Rd ,441.8 44,.H,4 44..44,.1 «4884:0,.
41.,.panel's ,1:..,.......:,..4 044 414.. «4..44..« 14..4..«.. 414..«4
A. Time for Decision. The Hearing Officer shall make a final decision within ninetv (90)
days of the assignment of the appeal hearing from the Director, and no later than twenty-
one (21) days after the conclusion of the hearing on any petition. The time limits maybe
extended upon consent of the Park Owner.
B. Rent Increases. If the Hearing Officer's determination is that all or a portion of the
proposed rent increase shall be granted under the circumstances, then the Hearing Officer
shall grant all or such portion of the rent increase effective as of the time such increase
would have been otherwise effective without the intervention of this Chapter.
B -C. Notification of Determination. The s�ity shall, within ten (10) days after
such decision is rendered, send a copy of the panel's findings and decision, by first class Q
postage prepaid, to the Park Owner or other person designated on the park's registration t
and to the occupants of the affected residei.4s _-- _spaces in the park for which the �?
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GD. Final Decision. Any decision of the paf+4F[earing Officer must be supported by a
preponderance of the evidence. The panel's allowance or disallowance of any rent c
adjustment or portion thereof may be reasonably conditioned in any manner necessary to v_1
carry out the purpose of this Chapter. The decision of the Hearing Officer shall be �>
final and binding on all parties, and shall not —be subject to appeal or any additional
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reconsideration. A party not satisfied with —a decision e f4� may seek any c
judicial remedy provided by law.
6.02.180 Miscellaneous Provisions.
A. Waiver Ability. Rental agreements between a Park Owner and Park Resident which are
exempted from local regulation by California Civil Code Section 798.17, or other State
statutes, are permitted. The rental rates and other terms of such agreements shall prevail
over regulations and decisions made pursuant to this Chapter. For all such rental
agreements which expire, the last monthly rental rate charged under the rental agreement
shall be the space rent ceiling used to calculate the annual adjustment for the space. Any
other provisions or agreement, whether oral or written, in or pertaining to a rental
agreement whereby any provision of the Ordinance or decision of the
paHi4F[earing Officer for the benefit of a resident is waived, shall be deemed to be against
public policy and shall be void.
B. Severability. If any provision or clause of this Chapter, or the application thereof to any
person or circumstance, is held to be unconstitutional or to be otherwise invalid by any
court of competent jurisdiction, such invalidity shall not affect other Chapter provisions
or clauses or applications thereof which can be implemented without the invalid
provision or clause or application, and to this end, the provision and clauses of this
Chapter are declared to be severable.
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C. Subpoenas. The p*F-4Hearing Officer may issue subpoenas requiring the attendance of
witnesses and/or the production of books or other documents necessary for evidence of
testimony in any action or proceedings. befefe the pane' ..pen «.,.."..d b the Pmol
Failure to comply with such subpoena shall result in contempt proceedings under
Government Code Sections 37106 through 37109.
SECTION 2. Severability. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of
competent jurisdiction, such decision will not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each
and every section, subsection, sentence, clause, or phrase not declared invalid or
unconstitutional, without regard to whether any portion of the Ordinance would be subsequently
declared invalid or unconstitutional.
SECTION 3. This Ordinance shall be in full force and effect thirty (30) days from its
passage and adoption.
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SECTION 4. The City Clerk shall certify to the passage of this Ordinance and shall 00
cause the same to be published as required by law. _
ATTEST:
CITY CLERK
DATE:
PASSED, APPROVED, AND ADOPTED this day of 2017.
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Ordinance 17- was regularly introduced and placed upon its first reading at a regular
meeting of the City Council on the 27a' day of June 2017. That thereafter, said Ordinance was
duly passed and adopted at a regular meeting of the City Council on the 11th day of July 2017, by
the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
AND I FURTHER CERTIFY that the foregoing is the original of Ordinance 17- and
was published in The Signal newspaper in accordance with State Law (G.C. 40806).
CITY CLERK
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