HomeMy WebLinkAbout1996-01-09 - AGENDA REPORTS - MH RENT STABILIZATION ORD (2)City Manager Approval
Item to be presented by:
Rich Henderson
NEW BUSINESS
DATE: January 9, 1996
SUBJECT: MOBILEHOME PARK VACANCY SURVEY STATUS AND
CONSIDERATION OF AMENDMENTS TO THE EXISTING RENT
STABILIZATION ORDINANCE
ORDINANCE NO. 96-8
DEPARTMENT: Community Development
At its meeting of January 24, 1995, the City Council directed the staff to conduct a mobilehome
park vacancy survey and report back to the Council at a later date. The staff conducted a
survey and reported to the Council at its June 13, 1995 meeting that, under any one of several
different scenarios, the vacancy rate was at least five percent (5%) citywide; furthermore, the
staff recommended that the rent stabilization ordinance be suspended according to the 5%
vacancy factor, necessary for suspension of the ordinance.
Rather than suspend the ordinance, on June 13th, the Council directed the staff and the City
Attorney to work with both sides to seek mutually acceptable ordinance revisions. The
compromise was to include provisions that would guarantee rent would not be increased more
than the CPI; be long term and assumable; have a clearly defined vacancy provision, and that
an independent audit be made of the vacancies.
To achieve these goals, a committee was appointed by the staff consisting of two mobilehome
residents, two park owners, and one neutral party. The committee met with the City staff
monthly between July and December, developed provisions for a revised ordinance that the
committee supports unanimously, and it feels meets the intent of the Council's goals for an
improved rent stabilization ordinance.
Simultaneously with the above committee meetings, the staff issued a request for proposals to
conduct an audit of the vacancy survey, selected a company to prepare the audit, but then
suspended the start of the audit (and related $5,000 expenditure) due to the committee's
successful agreement on a revised ordinance, which if adopted would not deal with a vacancy
factor; therefore, the subject of vacancy would be moot.
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Agenda Item. /9
Council Introduce Ordinance No. 96-8, waive further reading and pass to second reading.
1. Ordinance summary
2. Ordinance No. 96-8
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SUMMARY OF ORDINANCE NO. 96-5
AMENDMENTS TO THE MANUFACTURED HOME PARK
RENT STABILIZATION ORDINANCE
The following proposed ordinance revisions represents a six-month effort among a staff -
appointed committee. Most amendments proposed are those of the committee; a few are staff
recommended to facilitate the daily administration of the ordinance. The committee is
composed of the following members:
Park Owner Park Owners' Association Residents Neutral Party
Bill Reed David Evans Jim Robinson Tom Granlund
Bill Duvall
Sec. 6.02.060 - Registration Fee (p. 456)
Subsection A.
1. ISSUE: It is suspected that not all spaces that are required to have registration
fees paid on them are paying the fee.
CLARIFY: Occupied spaces, or spaces otherwise entitled to have rent collected on
them, are the spaces on which registration fees are paid. These are the
"spaces affected by the ordinance." Additional clarification made in
section 6.02.030 - Applicability, subsection B.
Sec. 6.02.090 - Space Rent Adjustments (p. 457)
Subsection B.
2. ISSUE: The notice period to residents for a rent increase changed when
California Civil Code section 798.30 was amended approximately two
years ago to require a 90 -day requirement (increased from 60 days).
Also, a park owner could be faced with more than one appeal per year.
A limit of only one appeal per year, per mobilehome park (Oct. 1st
requirement) is desired. It also enables the City staff to know within
a 45 -day period (app. Oct. 1 -Nov. 15) each year of what the year's
workload on appeals will be for the following calendar year.
CHANGE: Time period of 'Notice of Proposed Rent Adjustment"
FROM: 60 days -
TO: 90 days and issue notice no later than October 1st. to be effective either
on January 1st, or on resident's anniversary date after January 1st.
All appeals shall be due by this date. The City Clerk shall
subsequently set the date of the hearing for all appeals received.
Summary of Ordinance 96-8
page 2
Subsection B. part 3.
3. ISSUE: Many residents are unaware of the rent stabilization ordinance, the
Panel, and related rights and procedures available to them.
ADD: Language to require an authorized summary of the ordinance (the
current fact sheet will suffice) be posted on the park bulletin board
advising residents of the appeal procedure, and the availability of the
Panel to deliberate appeals, and that mention be made in the proposed
notice of rent increase, that this information shall be posted on the park
bulletin board.
Subsection D. - (p: 458)
4. ISSUE: Consistency with proposed change in subsection B (above)
CHANGE: The effective date that the rent increase notice was served
FROM: The sixty-first day
TO: The ninety-first day
5. ISSUE: Presently, just one person can act alone and initiate an appeal. An
equitable number of people (majority of park residents) should be
required to effectuate an appeal.
CHANGE: The minimum number of residents required to initiate an appeal
FROM: The resident
TO: To fifty (50%) percent of the affected spaces, plus one affected space.
6. ISSUE: Additional time is reasonable to allow for gathering the fifty (50%)
percent, plus one, signatures described above.
CHANGE: The time period required to file an appeal from the date the notice is
served on the residents.
FROM: Twenty (20) days
TO: Forty-five (45) days
7. ISSUE: Presently there is not a sufficient time period to process an appeal.
Summary of Ordinance 96-8
page 3
Appeal panel only meets once per month, as necessary. This provision
only allows little more than two weeks to process the request. Also, it
is essential to convince the appellant and the appellee to meet during
this time (hopefully more than once). Two weeks is usually not enough
time to facilitate this interaction.
CHANGE: The time period from date of receipt of a request for a hearing for the
City Clerk to schedule the hearing to commence.
FROM- 30 days
TO: 45 days
See. 6.02.120 Standards of Reasonableness (p. 459)
Subsection A. part 1.
8. ISSUE: Presently the 5% vacancy factor is vague. Park owners are willing to
eliminate this provision in exchange for gaining a minimum annual
rent increase. Park residents benefit by ,knowing that the rent
stabilization ordinance will always be in effect. There is no longer a
provision that suspends the ordinance (such as the present provision
that when a citywide 5% vacancy rate is reached, the ordinance is
suspended). Negotiated by the committee. (See proposed revision to
sec. 6.02.160 for the elimination of the vacancy factor.)
CHANGE: The range of percentage of CPI change to be used as basis for a rent
increase and eliminate the 5% vacancy factor.
FROM: The lesser of 6% or average annual adjustment in the CPI -U
TO: A minimum annual increase of 3% of the space rent, to a maximum of
the lesser of either 6% or the CPI -U
9. ISSUE: Required time periods in subsection B and D of section 6.02.090 (above),
do not presently correspond.
CHANGE: The time period of the CPI change
FROM: October 1 of the preceding year through September 30 of the current
year.
TO: September 1 to August 31.
Summary of Ordinance 96-8
page 4
10. ISSUE: How the CPI -U change is presently required to be computed by the
ordinance is confusing, and leaves the ordinance subject to
interpretation. There is no need to require a computation, because in
the CPI -U change notice, a figure is provided that gives the past year's
change. Reliance on this figure would eliminate the confusion. Also
this enables anyone to subscribe to the CPI change notification and
have the information available immediately, without waiting for the
City to receive the information first. It eliminates the need for any
computations and instead, relies on a published figure.
CHANGE: The method of determining the annual CPI change
FROM: The present computation of averaging the monthly changes during the
period
TO: The "percent change for the year ending in September of the year of a
proposed rent increase" as provided by the United States Bureau of
Labor Statistics.
11. CLARIFY: It will be a staff function to receive the CPI change information and
then mail it to all park owners. The Panel will not be required to take
action on the determination of the CPI change.
Sec. 6.02.160 Miscellaneous Provisions ( p. 466)
Subsection A.
12. ISSUE: Deletion of the 5% vacancy factor (discussed in issue no. 8, above. This
was negotiated by the committee. Park residents benefit from this
revision in exchange for creating a 3% minimum annual rent increase
which benefits park owners. See proposed revision to sec. 6.02.120 for
the change in the minimum allowable rent increase.)
DELETE: The entire subsection A. that creates the 5% vacancy factor as a basis
for suspending the ordinance.
MAR:Iep
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ORDINANCE NO, 96-8
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA, CALIFORNIA,
AMENDING CHAPTER 6.02 OF THE
SANTA CLARITA MUNICIPAL CODE
PERTAINING TO MANUFACTURED HOME PARK
RENT ADJUSTMENT PROCEDURES
WHEREAS, the City of Santa Clarita has found it necessary to provide a method by
which manufactured home park rent increases may be reasonably managed; and
WHEREAS, the City took necessary action on November 27, 1990 to adopt Ordinance
No. 90-38 governing such rent increases; and
WHEREAS, at its meeting of January 24, 1995, the Council of the City of Santa Clarita
directed its staff to conduct a vacancy survey as part of the administration of such ordinance;
and
WHEREAS, the Council heard a report from the staff at its meeting of June 13, 1995
reporting on the status of the manufactured home park vacancies; and
WHEREAS, the Council directed the staff to further consider amendments to its
manufactured home park rent stabilization ordinance; and
WHEREAS, a committee was formed to meet and discuss solutions to the difficulties of
administering the rent stabilization ordinance; and
WHEREAS, the committee met over a six-month period and unanimously, agreed on a
revised ordinance which addressed the issues and concerns previously found to make the
administration of the ordinance cumbersome; and
WHEREAS, on January 9, 1996, the Council of the City of Santa Clarita received the
recommendation of the committee in the form of a revised rent stabilization ordinance, and
accepted public testimony on the same.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 6.02.030 shall be amended to read as follows:
"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 a lease
shallbe med spaces affected by the ordinance,"
Ordinance No. 96-8
page 2
SECTION 2. Section 6.02.060 shall be amended to read as follows:
"A. Establishment of Fee. At the time of initial registration or any subsequent
registration, Park owners shall pay to the City of Santa Clarita such registration fee for each
manufactured home rental space affected by the ordinance within the Park as may be
established by resolution of the City Council. Half of the fee may be apportioned equally among
the spaces in the Park and charged by the Park owner to the Residents according to said
apportionment by a single annual bill which shall be sent to each Resident within thirty (30)
days after the fees have been paid to the City. Such fees shall not be included in the rent. Such
registration fee shall not apply to parks and spaces exempt from this Chapter by State law
(inclusive of Civil Code Section 798.17)."
SECTION 3. paragraph one, of Subsection B, of Section 6.02.090 shall be amended to
read as follows:
"B. Notice. Prior to the annual rent adjustment; the park owner shall provide the
resident with a Notice of Proposed Rent Adjustment at least U days prior to the effective date
of such adjustment, and issue such notice no later than October first to be effective either on
January first, or on the Resident's anniversary date following January first. The City Clerk
shall subsequently set the date of the hearing for all appeals received.. A Notice of Rent
Adjustment shall set forth all of the following information:"
SECTION 4. Part 3 of subsection B, of Section 6.02.090 shall be amended to read as
follows:
•• •. •, •• • •. •• �...• . . ..•. •... . •. _• �. • ..y•.. .•
shall be I)osted on the park Milletin board. The right of the Resident to request a hearing before
the Panel, pursuant to Subsection D of this Section."
SECTION 5. Subsection D of Section 6.02.090 shall be amended to read as follows:
"D. Effective Date of Adjustment. The rent increase specified in said notice or on the
fire (91 day after the notice was served on the Resident, unless an appeal petition is
ordinance. plus one affected space requesting a hearing on the proposed rent increase before the
Panel. A request for a hearing must be filed with the City Clerk within foM-five (45) days of
service of the notice of proposed rent adjustment. Upon receipt of the request for hearing, the
City Clerk shall schedule the hearing to commence no later than [Qrty-five (45) days from the
date of receipt of the request for hearing. The City Clerk shall notify the Park Owner or other
person designated on the Park's registration and the affected Residents 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."
Ordinance No. 96-8
page 3
SECTION 6. part 1 of Subsection A, of Section 6.02.120 shall be amended to read as
follows:
"1. An adjustment of gross space rental income equal to a minimum of three percent
(3%) and a maximum equal_ to the lesser of either six percent (6%) or the annual adjustment in
the CPI -U reported each September for the previous twelve month period of September 1
through August 31 reported by the Bureau of Labor Statistics for the Los Angeles -Anaheim -
Riverside areas. Such adjustment shall apply to all rental increase effective during the following
calendar year. The Director of Community Development or designee annually. will receive th_e
CPI -U updated result and cause notice of such to be mailed to each Park in the ('itv
SECTION T Section 6.02.160 shall be amended by deleting Subsection A.
SECTIONS. That if any portion of this Ordinance is held to be invalid that portion shall
be stricken and severed, and the remaining portions shall be unaffected and remain in full force
and effect.
SECTION 9. That the City Clerk shall certify to the passage of this ordinance and shall
cause it to be published in the manner prescribed by law.
PASSED, APPROVED AND ADOPTED this day of
'19—.
MAYOR
ATTEST:
CITY CLERK
r
Ordinance No. 96-8
page 4
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF SANTA CLARITA )
I, Donna M. Grindey, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Ordinance No. was regularly introduced and placed upon its first reading
at a regular meeting of the City Council on the day of ,
19 . That thereafter, said Ordinance was duly adopted and passed at a regular meeting
of the City Council on the day of 19 by the
following vote, to wit:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCEIMEMBERS
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CITY CLERK