HomeMy WebLinkAbout1991-04-09 - AGENDA REPORTS - MH PARK RENT ADJUSTMENT ORD (2)AGENDA REPORT
City Manager Approval v .
Item to be presented �
NEW BUSINESS Lynn M. Harris Ccs
DATE: April 9, 1991
SUBJECT: City Mobilehome Park Rent Adjustment Ordinance
DEPARTMENT: Community Development
Background
Over a period of approximately ten months, commencing February 1990, City
staff, under the direction of City Council, formed a working committee
comprised of Mobilehome Park resident representatives, Mobilehome Park owner
representatives, and staff, including attorney assistance. The purpose of
these meetings and subsequent negotiations to develop the above referenced
ordinance was to afford local City protection to existing mobilehome park
residents from excessive rent increases.
The ordinance was presented to the City Council on November 13, 1990 , and
subsequently adopted after receipt of testimony from both committee members
and members of the public at large.
Since the adoption of this ordinance; much confusion and misunderstanding
about the intent and purpose of the ordinance has occurred. The City Council
has received numerous calls and letters of complaint. Staff feels it is
appropriate to identify those areas which seem to have generated.the most
disappointment and confusion for possible City Council consideration of
amendment.
• Method of selecting Manufactured Home Rent Adjustment Panel.
• Clarification of exemptions under Section 8.57.030.0 and 8.57.030.B of the
Ordinance.
• Clarification of the space rent limits and August 6, 1990 rent rollbacks.
• Clarification that the Manufactured Home Rent Adjustment Ordinance is not a
vehicle for the solution of Code enforcement problems.
• Clarification of whether or not space rent adjustments are annual.
• Use of annual or fluctuating monthly consumer price index for determining
rental increases.
Agenda Item:
Agenda Report
April 9, 1991
Page 2
It is important that the Council understand, as the Committee before them did,
that rent stabilization in Mobilehome Parks is primarily regulated through the
state offices of Housing and Community Development, and that the local
government is pre-empted from many areas they.might otherwise wish to
control. For example, these include:
• Rent exemptions related to new manufactured home construction.
• Civil Code exemptions as specified in Section 798.17 of the California Civil
Code.
• Provisions performing to manufactured home.
• Mobilehome licensing registration.
Recommendation
Staff recommends the City Council discuss the above and give possible
direction to staff, the Manufactured Home Rent Adjustment Panel,
and the previous committee for areas of possible future amendments to this
ordinance.
Attachment: Information Flyer (Manufactured Home.Rent Stabilization Program)
iA CST
A A
Y 'I
CITY OF SANTA CLARITA
HONE RENT STABILIZATION PROGRAM
On December 26, .1990, the. Mobilehome Park Rent Adjustment Ordinance No. 90-38
was adopted by the City Council because existing mobilehome park residents
were experiencing. space rental increases higher than the Consumer Price Index
cost, an inflationary index of the prices of all goods and services in the Los
Angeles County area. The Mobilehome Rent. Adjustment Ordinance became
effective to protect current residents from rent increases higher than. the
cost of living, while recognizing the need of .the mobilehome park owners .to
receive a fair income to cover the costs.of repairs and operating expenses.
VHOM DOES THE MOBILEHOME RENT STABILIZATION PROGRAM SERVE?
• Space Renters: Space rental increases are limited to a maximum of six
percent (6Z) of the base rent or a percentage increase in the most recent
Consumer Price Index figures - whichever is less.
• Park Owners: Allows the. park owners to recover costs for physical
improvements within the park by passing the improvement costs to the
residents.
VSAT THE MOBILEHOME RENT STABILIZATION PROGRAM DOES
• Stabilizes rents for existing tenants and provides long-term certainty in
rent costs for tenants.
• Provides for a Manufactured Home Rent Adjustment Panel which gives tenants
an opportunity to be heard if they feel they have had an illegal rent
increase.
• Protects residents by not allowing park owners to reduce any services
within a mobilehome park without passing the savings along to the
mobilehome tenants.
WHAT THE MOBILEKOMS RENT STABILIZATION PROGRAM DOES NOT DO
• Act as a mediator in tenant/landlord disputes which do not -involve rental
increases.::
• Protect".residents. entirely from space rental increases such as costs
passe& -,-on' to the park tenants` from the park owners for capital
improvements, for 'example, new washing machines, paving, new sewer lines,
increases'in utility costs,.and required governmental services.
• Require the owner to upgrade the park.
• Change any state laws regarding mobilehomes. '
WHAT DOES IT MEAN VEEN A MOBILSSOME PABA BECOMES EEEIO?T?
• When the park owner meets the City or State requirement for exemption,
then the Panel issues an exemption. Each park must request its exemption
on an annual basis.
• Tenants may.. be asked by the park owner to sign a consent form when they
sign a lease. This consent form helps the park owner qualify for an
exemption.
• When the park is exempt, then the tenants no longer have the protection of
the City's ordinance.
HOW IS THE RENT ADJUSTMENT ORDINANCE ADMINISTERED?
• City Staff: City staff acts as advisers to the Rent -Adjustment Panel at
their meetings. The City Clerk, City Attorney, and one Community
Development staff person will attend. The City Clerk is responsible for
the maintenance of all records of the Panel. The City Attorney acts as
legal counsel only to the Panel.
• Rent Adjustment Panel: A five (5) member Manufactured Home Rent
Adjustment Panel was established by the Rent Stabilization Ordinance to
carry out its duties as established by the Ordinance. Duties include:
1. Issue exemptions based on a review of the facts relating to both
state and City ordinance provisions for exemption.
2. Make adjustments in space rent ceilings as provided for in the
Ordinance.
HOW IS THE RENT ADJUSTMENT PAHEL ESTABLISHED?
• Tvo,(2) members are elected for and by the space renters.
• Two (2) members are elected for and by the park owners.
• One (1) appointed member by the other panel members.
WHAT ARE THE IMPORTANT -DATES INVOLVED PITH THE RENT STABILISATION PROGRAM?
February 24, 1991 - Manufactured Home Registration Deadline forParkOwners
April 8; 1991.- First Panel Meeting: Procedural Only
May 1, 1991 - Effective Date of Rent Stabilization Protection
Fourth Monday bf Each Month - Regular Meeting of the Rent Adjustment Panel
at 3 p.m. in the Council Chambers, 23920 Valencia Blvd.
FOR FURTHER INFORMATION PLEASE CONTACT COMMUNITY DEVELOPMENT DEPARTMENT
805-255-4330
Prepared by Community Development, March 1991