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Home My WebLink About1995-01-24 - AGENDA REPORTS - STUDY MOBILE HOME RENT ORD (2)AGENDA REPORT City Manager Approval Item to beresented by: � 'ch Hederso�E(�1� NEW BUSINESS DATE: January 24, 1995 SUBJECT: A study to determine whether the Mobilehome Rent Stabilization Ordinance should be suspended because the vacancy rate exceeds five percent. DEPARTMENT: Community Development On November 18, 1994, the City of Santa Clarita received a letter from Dowdall Law Offices, representing a group of Santa Clarita mobilehome park owners.. The letter questions the validity of continuing mobilehome park rent control as governed by the City's Mobilehome Rent Stabilization Ordinance, contending that the citywide mobilehome space vacancy rate exceeds 5%. Under the existing ordinance, the rent control ordinance ceases to be in effect if the space vacancy rate exceeds 5%, provided that the vacancies are not caused by the earthquake or other emergency. The original ordinance adopted by the Council specified a 5% percent vacancy rate to inactivate the Ordinance. Following the Northridge Earthquake, on June 28, 1994, the Council approved Ordinance No. 94-9 specifying that the vacancies could not be attributable to the earthquake. Copies of the staff report, minutes, and ordinance changes approved in response to the earthquake are attached. ANALYSIS According to the City's Ordinance and the Dowdall letter, if all manufactured home parks which are subject to the City's regulation have a combined space vacancy rate greater than 5%, then all such parks would be exempt from the requirements of the Rent Stabilization Ordinance. The Dowdall letter estimates a current vacancy rate of 8%, and as a result, requests that the City Council suspend the Rent Stabilization Ordinance. However, the Ordinance states that a space vacancy rate in excess of 5% shall not be caused, in whole or in part, by a major disaster or emergency. Due to the fact that the City incurred substantial damage from the Northridge Earthquake on January 17, 1994, the City Attorney's office has recommended that staff conduct a study in order to assess the percentage of mobilehome park space vacancies not attributable to the disaster. If a determination is made that this percentage is 5% or less, the Ordinance would stay in effect. If the vacancy rate is greater than 5%, the existing ordinance stipulates that the rent stabilization program would be discontinued. Direct staff to document the vacancy rates of the City's mobilehome parks and return to City Council within 60 days with a summary of the data for further discussion and possible action. GAC:RAH:KJM:JDR ® fi;A,dj� r� � Ageudaltem:-2A ORDINANCE NO. 94-9 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, PROVIDING THAT CHAPTER 6.02 OF THE SANTA CLARITA MUNICIPAL CODE, THE MANUFACTURED HOME PARK RENT ADJUSTMENT PROCEDURES, SHALL NOT BE SUSPENDED IF A SPACE VACANCY RATE EXCEEDS FIVE PERCENT BECAUSE OF A MAJOR DISASTER. WHEREAS, the City Council of the City of Santa Clarita is concerned that a major disaster could potentially cause an artificial increase in space vacancy rates related to the deleterious effects of the earthquake rather than the natural vicissitudes of the manufactured home space rental market; WHEREAS, the City Council of the City of Santa Clarita is further concerned that such an artificial increase in space vacancy rates might result in a space vacancy rate in excess of five percent, requiring the suspension of Chapter 6.02 of the Santa Clarita Municipal Code providing for the manufactured home park rent adjustment procedures; WHEREAS, such suspension might result in further harmful effects on citizens already suffering from the effects of the disaster and deprive them of their rights to fair rents; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: Section 1. Amend § 6.02.160 subparagraph A. to read: A. Suspension of Provisions. The provisions of this ordinance shall remain in full force and effect unless and until the space vacancy rate of all Manufactured Home Parks regulated hereunder, except as provided below; exceeds five percent (5%). The space vacancy rate shall be calculated by dividing the total number of rental spaces in the applicable parks into the total number of such spaces which are not occupied by manufactured homes or are occupied by abandoned manufactured homes. Parks which have not been in operation for more than two (2) years from the date of occupancy of the first manufactured tome, not including manufactured homes occupied by Park Owners or employees hereof, shall not be included in the vacancy calculation. Upon recognition by the City Council by resolution that the vacancy rate exceeds five percent (5%), the provisions of this ordinance shall be suspended. The provisions of this ordinance shall be automatically reinstituted upon the adoption of a resolution by the City Council declaring the vacancy rate to be five percent (5%) or less. Notwithstanding the above, the suspension provisions of this paragraph shall not apply if the space vacancy rate exceeding five percent (5%) is caused, in part or in whole, by a major disaster or emergency. Section 2. The City Clerk shall certify to the passage of this ordinance and shall cause the same to be published as required by law, PASSED AND APPROVED THIS 2$thday of 19__q(_ YO STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Donna H. Grinder . City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. 94-9 was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 14th day of June , 19__gA_. That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the .28 Lbday of i un , 19 CM . by the following vote, to wit: AYES: COUNCILMEMBERS: Boyer, Darcy, Heidt, Smyth, Pederson NOES: COUNCILMEM 3ERS: ABSENT: COUNCILMEMBERS: fi74Ira cf y (OVA lil M;hvfes Jvne 181 i9� y On roll call vote: Ayes: Smyt oyer, Heidt, Pederson Noes: Day v t xc]a5ect: None A sent: None Resolution Nos. 94-59, 94-78, 94-79 adopted. ITEM 5 Rich Henderson, City Planner, reported that on May 24, 1994, the UNFINISHED BUSINESS City Council discussed earthquake related issues regarding MOBILEHOME PARK RENT mobilehomes. The Council determined that staff should return STABILIZATION with an amendment to the Rent Stabilization Ordinance, relating ORDINANCE to the provisions for possible suspension of the Ordinance in a ORDINANCE NO. 94-9 mobilehome park with a vacancy rate in excess of five percent. At the City Council meeting of June 14, 1994, the City Council considered the amendment, made minor text addition in Section 1, and passed the item to second reading. City Attorney, Carl Newton, read the title to Ordinance No. 94-9. It was moved by Boyer and seconded by Darcy to waive further reading and adopt Ordinance No. 94-9, an amendment to the Mobilehome Park Rent Stabilization Ordinance. On roll call vote: Ayes: Smyth, Boyer, Heidt, Pederson Noes: Darcy Excused: None Absent: None Ordinance No. 94-9 adopted ITEM 8 Gail Foy, Pubic Information Officer, reported that last spring, the UNFINISHED BUSINESS City Council voted to implement a public access program in Santa PUBLIC ACCESS PROGRAM Clarita through the franchise agreement with Time -Warner and King Videocable. Expenses, together with the earthquake have delayed the opening of the studio which is located at San Fernando Road and 14th Street. In a June 14, 1994, communication from Susan Shapiro, Director of the public access studio, it is the staffs understanding the studio will open no later than January of 1995. Addressing the Council on this item was Allan Cameron. It was moved by Darcy and seconded by Boyer to direct staff to work with volunteers to tape City Council meetings to air on public access television by September, 1994, at no cost. AGENDA REPORT City Manager Item to be presented &.Ao..de+ti Rich Henderson UNFINISHED BUSINESS DATE: June 28, 1994 SUBJECT: MOBILEHOME PARK RENT STABILIZATION ORDINANCE ORDINANCE NO. 94-9 DEPARTMENT: COMMUNITY DEVELOPMENT BACKGROUND On May 24, 1994, the City Council discussed earthquake related issues regarding mobilehomes. The Council determined that staff should return with an amendment to the Rent Stabilization Ordinance, relating to the provisions for possible suspension of the Ordinance in a mobilehome park with a vacancy rate in excess of five percent. At the City Council meeting of June 14, 1994, the City Council considered the amendment, made a minor text addition in Section 1, second sentence, "....or are occupied by abandoned manufactured homes", and passed the item to second reading. That language has been added and the ordinance is ready for adoption. RECOMMENDATION Waive further reading and adopt Ordinance No. 94-9, an amendment to the Mobilehome Park Rent Stabilization Ordinance. RH:lep council%agt ptmh.rh Adopted; - � �l ATTACHMENT Ordinance No. 94-9 Ager -'7 Item: AGENDA REPORT City Manager Item to be presented /0J7 UNFINISHED BUSINESS Lynn M. Harris Y DATE: May 24,1994 SUBJECT: MOBILEHOMES: EARTHOUAKE RELATED ISSUES DEPARTMENT: Community Development BACKGROUND This Item was continued from the May 10, 1994 meeting. The January 17,1994, Northridge Earthquake and following aftershocks caused extensive damage to mobllehomes throughout the City. As a result of the quake, several Issues regarding mobilshomes require attention. These Include: Mobilehome parks are under the jurisdiction of the State of California. All inspections and permitting are conducted by the California Department of Housing and Community Development. The state collects all the permit fees associated with these activities and bears the administrative costs. The City may wish to consider taking over jurisdiction of the parks, as this may offer speedier service to the parks. The potential costs and benefits should be analyzed prior to a decision. However, should the City decide to take jurisdiction of the parks, the City would not be able to adopt ordinances that would pre-empt state legislation, such as requiring earthquake bracing, which Is currently not required by the state. 2. The existing rent stabilization ordinance was approved in a public participation process that Included homeowners and park owners. Section 6.02.160 of the ordinance states that the provisions of the ordinance will be suspended In a park If the vacancy rate exceeds five percent. A letter from a moblishome resident Indicates concern that this five percent figure may have already been reached In Mulberry Mobilehome Park. Staff believes that this possibility may exist In other parks. The ordinance was adopted at a time of extremely low vacancy rates, and there was a concern that the limited space openings could cause space rents to rise faster than Inflatlon The homeowner Is concerned that the current Increase In vacancies results from the earthquake; and that homeowners should be protected from the suspension of the rent stabllization ordinance. The decision to pursue either of the Issues Identified would Involve substantial policy shifts, which would involve the adoption of ordinances and negotiations with the state. Furthermore, staff has serious concerns In this time of dwindling resources, about taking on the responsibilities and costs of acquiring jurisdiction from the state. The earthquake taught us lessons about preparedness which lead us to believe that it may be wise to be In a position of acquiring jurisdiction during an emergency for a temporary period. Consultations with homeowners and park owners would be necessary, as well as the expenditure of considerable staff resources. Prior to Initiating a policy review of any or all of these policy directions, staff requests Council direction. Aja-;,'altem: RECOMMENDATION Staff recommends that the Council: 1. Direct staff to Investigate the pros and cons of preparing ourselves to acquire jurisdiction over mobilehome parks during an emergency. 2. Discuss the vacancy staff should draft a provisions in place. GAC:KJM:twb cwn.Mm gik#n rate provision of the rent stabilization ordinance and determine whether revision, pursue an analysis of pros and cons, or leave the existing