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HomeMy WebLinkAbout2006-02-28 - ORDINANCES - MUNICODE AMEND MH (2)ORDINANCE NO. 06-1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING SECTIONS 6.02 AND 6.04 OF THE SANTA CLARITA MUNICIPAL CODE PERTAINING TO MANUFACTURED HOMES THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. That Section 6.02 and 6.04 are amended to read as shown in Exhibit A, attached. SECTION 2. 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 3. This Ordinance shall be in full force and effect thirty (30) days from its passage and adoption. SECTION 4. That the City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published as required by law. PASSED, APPROVED AND ADOPTED this 28th day of February, 2006. I'02-401 �• ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. 06-1 was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 14th day of February, 2006. That thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council on the 28th day of February, 2006, by the following vote, to wit: AYES: COUNCILMEMBERS: Ferry, Smyth, McLean, Kellar, Weste NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 2 _ ,R 4t� CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL ORDINANCE I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Ordinance No. 06-1, adopted by the City Council of the City of Santa Clarita, CA on February 28, 2006, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this ' _ of 20_. _ Sharon L. Dawson, CMC City Clerk By Susan Coffman Deputy City Clerk "EXHIBIT A" Chapter 6.02 MANUFACTURED HOME PARK RENT ADJUSTMENT PROCEDURES Sections: 6.02.010 Purpose. 6.02.020 Definitions. 6.02.030 Applicability. 6.02.040 Manufactured Home Rental Adjustment Panel. 6.02.050 Registration. 6.02.060 Registration Fee. 6.02.080 Space Rent Limit. 6.02.090 Space Rent Adjustments. 6.02.091 Rent Adjustment Hearing. 6.02. 110 Decision of the Panel. 6.02.120 Standards of Reasonableness to Be Applied to Rent Adjustments. 6.02.130 Reduction in Services. 6.02.140 Amortization Schedule. 6.02.150 Net Operating Income. 6.02.160 Miscellaneous Provisions. 6.02.010 Purpose. A. There is presently within the City of Santa Clarita a shortage of space for the location of manufactured homes. Because of this shortage, there is a low vacancy rate and rents are presently rising rapidly and causing concern among a substantial number of manufactured home park residents in the City. Because of the high cost of moving manufactured homes, the potential for damage resulting therefrom, the requirements relating to the installation of manufactured homes, including permits, landscaping, and site preparation, the lack of alternative home site for manufactured home residents, and the substantial investment of manufactured home owners in such homes, a virtual monopoly exists in the rental of manufactured home park spaces, creating a situation where Park Owners have potentially unbridled discretion and ability to exploit manufactured home Park Residents. B. For these reasons, among others, the Council finds and declares it necessary to protect the owners and residents of manufactured homes from unreasonable rent increases while at the same time recognizing the need of Park Owners to receive a fair return on their property and rental income sufficient to cover reasonable increases in the cost of repairs, maintenance, insurance, employee services, and additional amenities, and other costs of operation. (Ord. 90-38, 11/27/90) 6.02.020 Definitions. "Allowable Legal Expenses" means attorney's tees and costs incurred in connection with successful good faith attempts to recover rents owing, and successful good faith unlawful detainer actions not in derogation of applicable law, to the extent such costs are not recovered from tenants. Attorney's fees and costs in proceedings before the Panel or the Council, or in connection with Civil actions against the City, the Council, or the Panel, are not allowable as operating expenses. "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, appreciably prolonging its useful life, subject to the following limitations: 1. The improvement must have a life expectancy of three years or more and must be treated as capital improvements for federal and state income tax purposes, and may not be deducted for such tax purposes as expenses. 2. Normal routine maintenance and repair is not capital improvement. 3. Insured repairs and replacement are not capital improvements. 4. The improvements must be permanently fixed in place or relatively immobile. "Capital Replacement" means the substitution, replacement, or reconstruction of a piece of equipment, machinery, streets, sidewalks, utility lines, landscaping, structures, or recreational amenities, which materially benefits and adds value to the Park. "CPI" means the Consumer Price Index (all items) prepared by the Bureau of Labor Statistics for the Los Angeles -Long Beach -Anaheim area relating to all urban consumers. 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 resident or 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. 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. "Gross Income" shall be as defined in Section 6.02.150 of this Chapter. "Lease" shall mean an agreement between the Park Owner and the Resident establishing terms and conditions of a tenancy which includes a predetermined fixed space rent increase applied for a predetermined length of time longer than one month. "Manufactured Home" shall be synonymous with the term "Mobilehome". "Manufactured Home Park" and "Park" shall be synonymous with the term "Mobilehome Park" and means an area of land where two or more mobilehome spaces are rented or leased out for mobilehomes used as residences. The term "Manufactured Home Park" does not include developments which sell lots for mobilehomes 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" means the owner, lessor, operator, manager, or designated agent thereof, of a manufactured home park in the City of Santa Clarita. "Manufactured Home Resident" or "Resident' means any person entitled to occupy a manufactured home as the owner thereof or pursuant to a rental or lease agreement with the owner of a manufactured home. "Mobilehome" 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 "Mobilehome" includes a manufactured home as defined in the Health and Safety Code; but does not include either a recreational vehicle or a commercial coach, as such terms are defined in the Health and Safety Code. "Net Operating Income" shall be as defined in Section 6.02.150 of this Chapter. "Operating Expenses" shall be as defined in Section 6.02.150 of this Chapter. "Panel" shall mean the Manufactured Home Rent Adjustment Panel, as established by this Chapter. "Rental Agreement" An agreement between the manufactured home park owner and a resident establishing the terms and conditions of a month-to-month tenancy. "Space Rei -a" The consideration, including any bonus, benefits, or gratuities demanded Gr received for or in connection with the use or occupancy of a manufactured home within a manufactured home park. The use and occupancy of a rental unit shall include the exercise of all rights and privileges and use of all facilities, services, and amenities accruing to the residents thereof for which a separate fee authorized by the Mobilehome Residency Law (California Civil Code §§ 798, et seq.) is not charged. 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 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 limited to the actual value of the utility service provided in the individual Resident. (Ord. 90-38, 11/27/90) 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. (Ord. 90-38, 11/27/90; amend. Ord. 91-24, 6/11/91; amend. Ord. 96-8, 1/23/96; amend. Ord. 96-8, 1/23/96) 6.02.040 Manufactured Home Rental Adjustment Panel. A. Establishment. The Manufactured Home Rental Adjustment Panel of the City of Santa Clarita is hereby established. B. Membership. The Panel shall consist of a total of five (5) members. The membership of the Panel shall consist of two members elected from and by the Park Owners and two members elected from and by the Residents, and one member from a list of five potential members drawn up by the City Manager, consisting of persons recommended to the City Manager from Voluntary Mediation Services, Dispute Resolution Services, or such other conciliation service as determined by the City Manager. The representatives of the Park Owners and the representatives of the Residents will select the fifth member by utilizing the alternate strike method with the representatives striking first determined by a coin toss. The election of representatives of the Park Owners and the Residents to the Panel shall be conducted by the Community Development Department according to rules and regulations promulgated by the City Manager. Any dispute or contest regarding an election, the election rules and regulations, or election results, shall be determined by the City Manager and the City Manager's decision shall be final. C. Term. Each member of the Panel shall serve for a term of three years. Each member shall hold office until a new member has been duly appointed. D. Absences. Any member who is absent, without sufficient cause, from three (3) consecutive meetings of the Panel shall be deemed to have vacated his office. E. Meetings. Except as expressly provided herein, the Panel shall establish the time and place of its meetings. All meetings of the Panel shall be conducted in accordance with the provisions of the Ralph M. Brown Act. F. 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 Panel in the accomplishment of its duties. The Panel may make and adopt its own rules and regulations for conducting its business consistent with the laws of the State, this Chapter, and any guidelines adopted by the City Council. Any such rules and regulations shall be reduced to writing and be on file with the secretary of the Panel at all times. The Panel may appoint such officers as it may deem necessary to carry out its duties hereunder. G. Staff. The City Manager shall provide all administrative staff necessary to serve the Panel. Staff from the Department of Community Development shall serve as the Secretary of the Panel and shall be responsible for the maintenance of all records of the Panel. The Secretary of the Panel shall keep a record of its proceedings, which 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 Panel. H. Quorum. Three (3) members shall constitute a quorum, so long as such quorum consists of at least the member elected by the Residents, at least one member elected by the Park Owners, and the member selected by the alternate strike method. A majority vote of all members, i.e., three (3) votes, is required for adoption of any findings and/or order pertaining to an application filed hereunder and for the adoption, amendment, or repeal of any rules and regulations of the Panel, or to take action on any other matter. I. Duties. The Panel shall undertake and have the following duties, responsibilities, and functions, together with all powers reasonably incidental thereto: 1. To meet from time to time as may be specified by the rules and regulations of the Panel in order to carry out its duties. 2. To require such registration of manufactured home parks as the Panel may deem necessary to enable it to carry out its duties. 3. To make adjustments in space rent ceilings as provided for in this Chapter 1l 4. To make such studies, surveys, and investigations, conduct such hearings, and obtain such information as is necessary to carry out its powers and duties. 5. To adopt, promulgate, amend, and rescind such administrative rules as may be necessary to effectuate the purposes and policies of this Chapter and to enable the Panel to carry out its powers and duties hereunder. 6. To undertake such other related duties as may be assigned by the City Council. (Ord. 90-38, 11/27/90) 6.02.050 Registration. Within sixty (60) calendar days after the effective date of this Chapter, Park Owners shall register all manufactured home parks and manufactured home rental spaces within such parks with the Department of Community Development. The initial registration shall include: the name(s), business address(es), business telephone number(s) of each person or legal entity possessing an ownership interest in the Park and nature of such interest; the n=...'-er of manufactured home rental spaces within the Park; the name and address of each Resident; a rent schedule reflecting space rents within the Park on the effective date of this Chapter; a listing of all other charges, including utilities not included in space rent, paid by Residents within the Park, and the approximate amount of each such charge; and the name and address to which all required notices and correspondence may be sent. The Department of Community Development is hereby empowered to require such re -registration as it deems necessary. No Park Owner shall be eligible to receive any rent ceiling adjustment as provided for under the provisions of this Chapter unless such current registration as may then be required for the manufactured home park is on file with the Department of Community Development at the time the petition for the rent ceiling adjustment is filed. The registration requirements provided for in this Section or which may be established by the Department of Community Development shall apply to all Manufactured Home Parks, including those exempt from the space rent ceiling limitation by reason of the existence of a valid space rent agreement. (Ord. 90-38, 11/27/90) 6.02.060 Registration Fee. 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 regulated by this chapter 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). B. Penalty. If a park owner does not pay the fee provided for in subsection A above, 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. No hearing or other proceeding shall be scheduled or take place, and no space rent adjustment will be granted or will take effect for any manufactured home park for which there is an unpaid registration bill. No exemption from the provisions of this chapter which are effective by reason of the existence of a valid space rent agreement shall be effective for any manufactured home park for which there is an unpaid registration bill. 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 City Manager is directed to maintain an accurate accounting of all direct and indirect costs of administering the regulations contained in this chapter. The City Manager shall submit a report to the Department of Community Development and City Council of such costs and any recommendations for a change in the registration fee at least annually from and after the effective date of the ordinance codified in this chapter. (Ord. 90-38, 11/27/90; amend Ord. 96-8, 1/23/96) 6.02.080 Space Rent Limit. Beginning the first month which commences following the one hundred twentieth day after the effective date of the ordinance codified in this chapter, no manufactured home 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. If a park is exempt from the application of this chapter by reason of the existence of a space rent agreement and this agreement expires, the space rent limit for that park shall be the space rent in effect on the date immediately preceding the date on which the agreement expires. (Ord. 90-38, 11/27/90) 6.02.090 Space Rent Adjustments. A. Prohibition of Adjustments. No increase in space rent shall be permitted except for an annual rent adjustment as provided for herein. B. Notice. Prior to the annual rent adjustment, which adjustment shall occur no more than once every three hundred sixty-five (365) days, the park owner shall provide the resident with a notice of proposed rent adjustment at least ninety (90) days prior to the effective date of such adjustment and issue such notice no later than October 1st, to be effective either on January 1st or on the resident's anniversary date following January 1st. The park owner shall post a summary of this chapter approved by the Panel on the park bulletin board by the date on which the first notice of rent adjustment is sent. The Department of Community Development 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: 1. The amount of the rent increase both in dollars and as a percentage of existing rent and either: a. A statement that the park owner considers the rent increase consistent with the limitation set forth in Section 6.02.120(A) of this chapter; or b. Documentation supporting the level of increase desired including, but not limited to: a summary of the unavoidable increases in maintenance and operating expenses; a statement of the cost, nature, amortization, and allocation among manufactured home spaces of any substantial rehabilitation or capital improvement; the summary of the increased cost of the park owner's debt service and the date and nature of the sale or refinancing transaction; a summary of the park owner's net operating income for the preceding twelve (12) months compared to that for the most recent twelve (12) month period; or other relevant information that supports the level of rent increase desired and as may be required by the Council or the Panel. 0 2. The identity of all affected residents and the spaces which they rent; 3. The right of the resident to request a hearing before the Panel, pursuant to subsection D of this section and the fact that a summary of this chapter approved by the Panel advising residents of the appeal procedure and of the availability of the Panel to deliberate appeals is posted on the park bulletin board. 4. The park owner and resident shall execute a single document related to the annual rent adjustment, stating that the information, documents or notices required by this section have been received by the tenant. The original of the document acknowledging receipt of information, documents, or notices required by this section shall be retained by the owner and a copy thereof provided to the resident. In the event a resident fails or refuses to execute the document required herein within ten (10) days after the park owner's request that the tenant do so, the park owner shall prepare a declaration under penalty of perjury stating that the information, documents, or notices required by this section have been delivered to the resident, the date the park owner regaw ed u',o Resident to sign the j:,int document acknowledging receipt, and the date the declaration was executed. C. Failure to Provide Notice. A park owner failing to provide a resident the information, documents, or notices required by this section shall not be entitled to collect any rent increase otherwise authorized by this chapter from that resident nor to any rent increase that might otherwise be awarded by the Panel and such failure by the park owner shall be a defense in any action brought by the park owner to recover possession of a manufactured park space or to collect any rent increase from the resident. A park owner may cure the failure to serve any notice or the obligation to provide information to a resident which is required under this chapter by giving such notice or information before initiating an action for possession of the space or collecting any rent increase otherwise authorized hereunder. D. Effective Date of Adjustment. The rent increase specified in the notice of rent adjustment shall become effective on the date specified in said Notice or on the ninety-first day after the notice was served on the resident, whichever is later, unless an appeal petition signed by residents of at least fifty (50) percent of the spaces regulated by this chapter and affected by the proposed rent increase, plus one additional regulated and affected space, requests a hearing on the proposed rent increase before the Panel. A request for a hearing must be filed with the Department of Community Development within forty-five (45) days of service of the notice of rent adjustment. The Department of Community Development 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. E. Notwithstanding the above, if a mobilehome is voluntarily vacated by all tenants as a result of a sale of the mobilehome, and the mobilehome is not removed from the site, then the maximum rent or maximum adjusted rent may be increased by an amount not to exceed ten (10) percent. As long as the mobilehome continues to be owned by one or more of the same persons, no other rent increase shall be imposed pursuant to this section. The rent may only be increased pursuant to this subsection once in any twelve (12) consecutive month period. F. A manufactured home owner may provide notice to a park owner of the home owner's intent to sell the manufactured home. If such notice is provided, the park owner may file an appeal of the ten (10) percent rent increase limitation set forth in subsection E of this section. If such a notice is 7 provided by the manufactured home owner, then the park owner may file a rent increase adjustment request for hearing with the Department of Community Development and serve a copy of such notice upon the manufactured home owner, within thirty (30) days of such notice. If no such notice is provided by the manufactured home owner, then the park owner shall be entitled to file a rent increase adjustment request for hearing with the Department of Community Development within thirty (30) days of the sale of a manufactured home. Such requests shall be made on the basis that the increase is necessary to achieve a fair and reasonable return. The standards of reasonableness shall be those set forth in Section 6.02.120(B) and the request shall be processed and decided by the Panel in the same manner as prescribed in this chapter for annual rent adjustments. (Ord. 90-38, 11/27/90; amend. Ord. 91-24, 6/11/91; amend Ord. 96-8 1/23/96; amend Ord. 97-8, 5/13/97) 6.02.091 Rent Adjustment Hearing. A. Conduct of Hearing. The park owner and resident 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 as determined by the Panel upon the consent of the parties or upon a finding of good cause for such continuance made by the Panel. All hearings and deliberations of the Panel shall be open to the public. B. Rules of Evidence. The hearing need not be conducted according to the technical rules 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 conduct of serious affairs. A full and fair hearing shall be accorded to the parties to the hearing. C. Preserving the Record. The proceedings shall be tape recorded. Any party who desires that the proceedings be recorded stenographically, shall make arrangements with the C—ify- Clerk Department of Community Development at least five (5) 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 taped recording at the time of or after the hearing, he or she shall make arrangements to copy the official tape recording with the Department of Community Development. All expenses incurred for the transcript will be borne by the requesting party. D. Subpoenas. The Panel 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 upon request by the Panel. Said subpoenas shall be signed by the chairperson or his or her designated substitute and attested by the secretary. Failure to comply with such subpoena shall result in contempt proceedings under Government Code Sections 37106 through 37109. (Ord. 90-38, 11/27/90) 6.02.110 Decision of the Panel. The Panel shall render its findings and decisions on the proposed rent adjustment no later than the end of the next Panel meeting following the close of the Panel's discussion on the matter. The _ secretary shall, within ten (10) days after such decision is rendered, send a copy of the Panel's findings and decision to the park owner or other person designated on the park's registration and, by first class postage prepaid, to the resident or residents requesting the hearing, and to such other residents as may request a copy of the findings and decision. Any decision of the Panel must be supported by a preponderance of the evidence. The decision of the Panel shall be final and binding on all parties. The Panel's allowance or disallowance of any rent increase or portion thereof may be reasonably conditioned in any manner necessary to effectuate the purpose of this Chapter. After reviewing the record and any additional evidence requested of the parties which has been provided, the Panel shall determine the amount of the rent adjustment, if any, in accordance with the standards specified in this Chapter. (Ord. 90-38, 11/27/90; amend. 92-11, 9/8/92) 6.02.120 Standards of Reasonableness to Be Applied to Rent Adjustments. The Panel shall determine whether rent adjustments are reasonable under the circumstances, taking into consideration that the purpose of this Chapter is to permit Park Owners a fair and reasonable return on their investment, while protecting Residents from arbitrary, capricious, or unreasonable rent increases. The Panel's determination shall be made with reference to the following standards: A. Adjustments deemed rear sable. The following adjustments in rent shall be deemed reasonable: 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 August for the previous twelve month period of August through July 31 reported by the Bureau of Labor Statistics for the Los Angeles -Anaheim -Riverside areas. Such adjustment shall apply to all rental increases effective during the following calendar year. The Director of Community Development, or designee, annually, will receive the CPI -U updated result and cause notice of such to be mailed to each Park in the City. (amend. Ord. 91-24, 6/11/91; amend Ord. 92- 11, 9/8/92; amend Ord. 96-8, 1/23/96) 2. A pass through adjustment of the increases in the cost of government required services. 3. A pass through adjustment of any increases in utility costs where such utilities are included in the space rent. 4. Repealed. (amend. Ord. 92-11, 9/8/92) 5. Repealed. (amend. Ord. 92-11, 9/8/92) B. Standards Applicable to Rent Adjustments Which Exceed Increases Deemed Reasonable. In order to assure to Park Owners a fair and reasonable return, the Panel shall, when the amount of any rent adjustment or portion thereof exceeds any of the standards identified in subsection A of this Section, determine what is reasonable under the circumstances, taking into account all relevant factors, including the following: 1. 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: a. Refinancing of the outstanding principle 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 0' b. 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. c. 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. In 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 refinancing were reasonable and consistent with prudent business practices under the circumstances. 2. The rental history of the Manufactured Home Park, including: a. The presence or absence of past in:xe cs; b. The frequency of past rent increases and the amounts; c. The Park Owner's response to any cost reduction measure; d. The occupancy rate of the Mobilehome Park in comparison to comparable units in the same general area. 3. The physical condition of the mobilehome space or the Park of which it is a part, including the quantity and quality of maintenance and repairs performed during the last twelve (12) months; 4. Any increases or reduction in services during the twelve (12) months prior to the effective date of the proposed rent increase. 5. Existing space rents for comparable spaces in comparable Parks. 6. A decrease in net operating income as provided in Section 6.02.150 of this Chapter. 7. A fair return on the property pro rated among the spaces of the Park. 8. Other financial information which the owner is willing to provide. (Ord. 90-38, 11/27/90) 9. The cost of capital replacement or capital improvement. The Panel may take into account the life expectancy of the capital replacement or improvement as set forth in Section 6.02.140. (amend. Ord. 92-11, 9/8/92) 6.02.130 Reduction in Services. No Park Owner shall reduce or eliminate any service to any rental space unless a proportionate share of the cost savings, due to such reduction or elimination, is simultaneously passed on to the 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 any case where the Panel determines that a reduction in services has effectively resulted in an increase of rent without notice thereof, the Panel may either order the owner to fix, repair, or otherwise cure the reduction in services, or 10 reduce the rent owed to the Park Owner in an amount that will compensate the Resident for such reduction in services. (Ord. 90-38, 11/27/90) 6.02.140 Amortization Schedule. For the purpose of determining any rent adjustment permitted under the provisions of thi: Chapter, the cost of capital improvements shall be amortized according to the following schedule: Tvpe of Improvement Amortization period Backflow Device 10 years 5 years -Carpeting 6 years -Copier pipes 10 years -Copper Court Co c. -Y 5 years -Drapes Garden vacuum 5 years Gas barbecue 3 years Gas line 15 years Gas saw 4 years Gas valve & fire hydrant 10 years Golf net 3 years Heater motor 5 years Houses 30 years fixtures 5 years -Light Linoleum floor 5 years Oven 6 years Patio furniture 5 years Pool heater 5 years of Improvement Amortization period -Type 5 years -Purnp 6 years -Refrigerator Clubhouse 5 years -Repaint Replaster pool 5 years Reroofing 18 years Security fence 5 years Sewer line construction 15 years seal 3 years -Slurry Solar system 10 years Street repair 10 years Street seal 3 years Street seal, drainage area 3 years 11 Telephone sstem 6 years Tree trimming 5 years Truck 5 years Wall, paving 10 years Wallpapering 5 years Water heater 10 years Water softener 5 years (Ord. 90-38, 11/27/90; amend. Ord. 92-I1, 9/8/92) 6.02.150 Net Operating Income. In evaluating a space rent increase imposed by a Park Owner to maintain the Park Owner's net operating income from the Park, the definitions and provisions described in this Section shall apply. A. Net Operating Income (NOI). For purposes of this Chapter, the Net Operating Income (NOI) of a Manufactured Home Park shall equal Gross Income (GI) less Operating Expenses (OE). B. Gross Income (GI). For purposes of this Chapter, the Gross Income (GI) of a Manufactured Home Park shall equal the sum of Items 1, 2, and 3 below, less 4. -- 1. Gross space rents, computed as gross space income occupancy. 2. Other income generated as a result of the operation of the Park, including, but not limited to, laundry and recreational vehicle storage. 3. Revenue received by the Park Owner from the sale of gas and electricity to Park Residents where such utilities are billed individually to the Park Residents by the Park Owner. This revenue shall equal the total cost of the utilities to the Residents minus the amount paid by the Park Owner for such utilities to the utility provided, and minus the State provided allowance for system maintenance and repair. 4. Uncollected space rents due to vacancy and bad debts to the extent that the same are beyond the Park Owner's control. Uncollected space rents in excess of three percent (3%) of gross space rents shall be presumed to be unreasonable unless established otherwise and shall not be included in computing gross income. Where uncollected space rents must be estimated, the average of the preceding three (3) years experience shall be used, or some other comparable method. C. Operating Expenses (OE). For purposes of this Chapter, Operating Expenses (OE) of Manufactured Home Park shall include the following: 1. Real property taxes and assessments. 2. Utility costs to the extent that they are included in space rent. 3. Management expenses, including the compensation of administrative personnel (may include the value of any manufactured home space offered as part of compensation for such services), reasonable and necessary advertising to ensure occupancy only, legal and accounting services as 12 permitted herein, and other managerial expenses. Management expenses are presumed to be not more than five percent (5%) of gross income, unless established otherwise. 4. Normal repair and maintenance expenses for the grounds and common facilities, including, but not limited to, landscaping, cleaning, repair of equipment and facilities. 5. Owner performed labor in operating and/or maintaining the Park. In addition to the management expenses listed above, where the owner performs managerial or maintenance services which are uncompensated, the owner may include the reasonable value of such services. There shall be a maximum allowance of five percent (5%) of gross income unless such a limitation would be substantially unfair in a given case. It shall be presumed that a Park Owner must devote substantially all of his or her time, i.e. at least forty (40) hours per week, to performing such managerial or maintenance service in order to warrant the maximum five percent (5%) allowance. No allowance for such services shall be authorized unless the Park Owner documents the hours utilized in performing such services and the nature of the services provided. 6. Operating ,upp"i s snd equipment such as janitorial supplies, corn on areas and landscaping supplies and materials, and appliances and equipment if solely devoted to Park operation. 7. Insurance premiums actually paid. 8. Reserve for replacement of necessary capital improvements. This amount shall not exceed five percent (5%) of gross income. The reserve shall be documented. The reserve may be included as an Operating Expense in a particular annual adjustment only to the extent that additional money is added to any previously approved reserve, up to a maximum of five percent (5%) of current gross income. 9. Necessary capital improvement costs exceeding reserves for replacement. A Park Owner may include the costs of necessary capital improvement expenditures which exceeded reserves for replacement, if any existed, though not required to be maintained, for which the Park Owner has been given prior credit. A necessary capital improvement shall be an improvement required to maintain the common facilities and areas of the Park in a decent, safe and sanitary condition or to maintain the existing level of Park amenities and services, and which is dedicated solely to Park use. Capital improvement includes all loan costs, origination fees and all interest costs at commercially available rates, and once fully reimbursed, shall be ordered deleted from the then payable space rent paid by the tenant. Expenditures for capital improvements to upgrade existing facilities or increase amenities or services shall be allowable operating expense only if documented and only if the Park Owner has: a. Consulted with the Park Residents prior to initiating construction of the improvements regarding the nature and purpose of the improvements and the estimated cost of the improvements. b. Obtained prior written consent of at least one adult Resident from a majority of the manufactured home rental spaces to include the cost of the improvement as an operating expense. Evidence of such consent must be presented at the time of filing the application seeking to include such a capital improvement expenditure as an operating expense. Any capital improvement expense shall be amortized over the life of the improvement as provided in the Amortization Schedule described in Section 6.02.140. 13 _ c. In the event that the capital improvement expenditure is necessitated as a result of an accident, disaster, or other event for which the Park Owner receives insurance benefits, only those capital improvement costs otherwise allowable exceeding the insurance benefits may be calculated as operating expenses. 10. Involuntary Refinancing of Mortgage or Debt Principle. A Park Owner may, under the provisions of this subsection be able to include certain debt service costs as an operating expense in a NOI adjustment application. 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: a. Refinancing of the outstanding principal owed for the acquisition of a Park where such refinancing is mandated by the terms of a financing transaction entered into prior to January 1, 1987 made on commercially available terms, e.g. termination of a loan with a balloon payment, or b. Increased interest cows incurred as a result of a variable interest rate loan used to finance the acquisition of the Park and entered into prior to January 1, 1987 of the Park on commercially available terms. 11. Increases in rental payments made on leases of land entered into prior to January 1, 1990, as follows: The Park Owner may include as expenses an amount not to exceed the increase in such land lease rental payments occurring since the previous Panel approved rental adjustment for the Park where said increase in land lease rental payments is the result of inflation or the increase in space rental income or based on other terms documented in writing. Such increased land lease rental obligations shall be permitted to be considered as an operating expense only where the Park Owner can show that the terms of the lease are reasonable and consistent with prudent business practices under the circumstances. In 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 refinancing were reasonable and consistent with prudent business practices under the circumstances the terms of commercially available financing. 12. All interest expense reported as a deduction to Federal and State taxing authority 13. Operating Expenses shall not include the following: a. Avoidable and unnecessary expenses; b. Mortgage principal and interest payments; c. Rental payments made on leases of land, except as provided above; d. Any penalty, fees, or interest assessed or awarded for violation of this or any other law; e. Registration fees required under this agreement; f. Legal fees, except allowable legal expenses; g. Depreciation of the property; It. Any expense for which the Park Owner has been reimbursed; 14 i. Attorney's fees and costs incurred in legal proceedings which relate to challenging the facial validity of this Chapter; j. Any late charges incurred by the Park Owner for failure to pay registration fee to the City authorized by this Chapter; k. Attorney's fees and/or costs incurred in judgments brought against a Park Owner, arising from a cross-complaint or cross-complaint in intervention. D. Burden on Park Owner. All operating expenses must be reasonable. Whenever a particular expense exceeds the normal industry or other comparable standard, the Park Owner shall bear the burden of proving the reasonableness of the expense. To the extent the Panel finds any such expense "Panel" to be unreasonable, the Panel shall adjust the expense to reflect the normal industry or other comparable standard. (Ord. 90-38, 11/27/90) 6.02.155 Hearings. A. Except as otherwise provided in section 6.02.090(D), all requests for hearings in front of the Panel must be made by a signed petition stating clearly the reasons for the requested hearing and that such matter is within the subject matter jurisdiction of this Chapter and within the Panel's authority to review. The petition must be signed by residents of at least fifty (50) percent of the spaces which are subject to regulation by this Chapter and affected by the matter which is the subject of the requested hearing, plus one additional regulated and affected space. B. The request for the hearing must be filed with the Director of Community Development. The Director shall notify the park owner or other person designated on the Park's registration and the affected residents whether the petition satisfies the requirements of the Chapter providing for permissible hearings. It shall be in the Director's sole discretion to determine if the requested hearing is within the subject matter jurisdiction of the Panel. If the requested hearing is eligible, the Director 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) days prior to the scheduled hearing date. 6.02.160 Miscellaneous Provisions. A. Repealed (amend. Ord. 94-9, 6/28/94; amend Ord. 96-8 1/23/96) A. Waiver Ability. Rental agreements between a Park Owner and Resident which are exempted from local regulation by California Civil Code §§ 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 Ordinance. 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 or regulation of the Panel for the benefit of a resident is waived, shall be deemed to be against public policy and shall be void. (amend Ord. 96-8, 1/23/96) 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 or 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. (amend Ord. 96-8, 1/23/96) C. Subpoenas. The Panel may issue subpoenas requiring the attendance of witnesses and/or the 15 7 - production of books or other documents necessary for evidence of testimony in any action or proceedings before the Panel upon request by the Panel. Said subpoenas shall be signed by the Mayor or his or her designated substitute and attested by the City Clerk. Failure to comply with such subpoena shall result in contempt proceedings under Government Code Sections 37106 through 37109. (Ord. 90-38, 11/27/90; amend. Ord. 96-8, 1/23/96) Chapter 6.04 MANUFACTURED HOME PARKS—CHANGE IN USE Sections: 6.04.010 Purpose. 6.04.020 Definitions. 6.04.030 Relocation Impact Report. 6.04.040 Application and Fee. 6.04.050 Notice to Residents Regarding Proposed Change in Use. 6.04.060 Hearing on the Change in Use. 6.04.070 Allcwablc Relocation Costs and Co.^.didons on Park Change in Use. 6.04.080 Eligibility of Nonresident Owners for Relocation Mitigation Measures. 6.04.090 Tentative Permit. 6.04. 100 Notice to Residents Regarding Hearing on Final Permit. 6.04.110 Notice After Public Hearing and City Approval. 6.04.120 Final Permit. 6.04.130 Appeal from Imposition of Conditions for Change of Use. 6.04.140 Notification. .— 6.04.150 Park Bankruptcy. 6.04.160 Approval Must be Obtained Prior to Change in Use. 6.04.170 Nonexclusive Remedy. 6.04.010 Purpose. The City Council finds and declares, because of the high cost of moving mobilehomes, the potential for damage resulting therefrom, the requirements relating to the installation of mobilehomes, the cost of landscaping or lot preparation, it is necessary that the owners of mobilehomes occupied within mobilehome parks be provided with the unique protection from actual or constructive eviction afforded by the provision of this chapter. It is not the intent of this chapter to prevent an owner of a mobilehome park from closing his or her mobilehome park, and the City acknowledges the right of a mobilehome park owner to close a mobilehome park or convert part into any legally permissible use. (Civ. Code § 789.55.) (Ord. 97-6, 4/22/97) 6.04.020 Definitions. For purposes of this chapter only, the following definitions shall apply unless based on the context, another definition is clearly intended: "Applicant" means the park owner or his or her designee of an existing manufactured home park that applies under this chapter for a change in use of such park. "Change in use" means use of a park for a purpose other than rental or the holding out for rental of two (2) or more manufactured home sites to accommodate manufactured homes for human habitation. A change of use may affect the entire park or any portion thereof. A change of use includes, but is not limited to, a change of the park or any portion thereof to a condominium, stock cooperative, planned unit development, or any form of ownership wherein spaces within the park are to be sold. A "change in use" shall not include a decision by a mobilehome park owner 16 not to rent or lease a vacant space or a space occupied by a vacant mobilehome owned by the park. "Final permit" means the permit granted pursuant to Section 6.04.120 once a park owner has substantially complied with all conditions of a tentative permit. "Illegal addition" is an addition to a manufactured home for which all required building permits were not obtained or which does not currently comply with the Santa Clarita Municipal Code. "Illegal structure" is a structure which did not comply with applicable building and/or design regulations and laws at the time which it was built. "Manufactured home" is synonymous with the term "mobilehome." "Manufactured home owner" is a person who has a tenancy in a manufactured home park under a rental agreement with the park and has an ownership interest in the manufactured home. "Manufactured home park" or "park" means an area of land where two (2) or more manufactured home spaces are rented or leased out for 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 manufactured homes in the development are rented or leased out. "Manufactured home park owner" or "park owner" means the owner, lessor, operator, manager or designated agent thereof, of a park located in the City of Santa Clarita. "Manufactured home resident" or "resident' is a manufactured home owner or other person who lawfully occupies a manufactured home in a park. "Mobilehome" means that definition used in Civil Code Section 798.3, and includes a structure designed for human habitation and for being moved on a street or highway under permit. The term "mobilehome" includes a manufactured home, as defined in the Health and Safety Code Section 18007. "Mobilehome owner" is synonymous with the term "manufactured home owner." "Mobilehome park" is synonymous with the term "manufactured home park." "Mobilehome resident" is synonymous with the term "manufactured home resident." "Nonresident owner" is a person who owns a manufactured home located within a park but does not reside there. A "nonresident owner" shall not include the park owner or applicant in circumstances where the park owner or applicant owns one or more manufactured homes in the park. "Panel" is the Manufactured Home Rent Adjustment Panel as established by Chapter 6.02 of Title 6 of the Santa Clarita Municipal Code. "Report" means the relocation impact report required by Section 6.04.030 17 "Tenancy" is the right of a manufactured home owner to use a site within a park on which to locate and maintain a manufactured home, site improvements, and the necessary accessory structures for human habitation. "Tentative permit" means the permit granted pursuant to Section 6.04.090. (Ord. 97-6, 4/22/97) 6.04.030 Relocation Impact Report. A. Prior to the change in use of a park, the applicant shall file with the City's Department of Community Development a relocation impact report which outlines the impact of the change in use on displaced manufactured home owners. In determining the impact of the conversion, closure, or cessation of use, the report shall address the availability of adequate replacement housing in mobilehome parks and relocation costs. The report shall include, but not be limited to, the following information: 1. The number of spaces within the existing park. 2. A list of names and addresses of all manufactured home owners and residents within the park. 3.A list of names and addresses of all nonresident owners within the park. 4. The number and location of all park -owned manufactured homes in the park. 5. Any manufactured homes which the park owner contends are illegal structures or to which illegal additions have been made. 6. The current rent charged for each space in the mobilehome park and the number of residents occupying each manufactured home affected by the proposed change in use. 7. Written commitments from the owners of parks with alternative sites within the City of Santa Clarita accepting all the manufactured homes to be relocated, and acknowledging: (1) the type of such homes to be relocated therein, (2) the condition of such homes, (3) the rent applied, (4) the applicable manufactured home owner, residents, and (5) the space to which the manufactured home is to be relocated. The City shall use its good offices to assist the park owner and manufactured home owner to find spaces for relocation, to encourage the development of spaces for relocation and to expedite processing of land use entitlements for new mobilehome spaces. 8. A proposed time schedule for manufactured home owners and nonresident owners to vacate the existing park. (Ord. 97-6, 4/22/97) 6.04.040 Application and Fee. Submission of the relocation impact report and a proposed tentative permit to the City's Department of Community Development shall constitute an application for a tentative permit for a change of use pursuant to Civil Code Section 798.56(g). The application shall be accompanied by a fee in an amount set by resolution of the City Council pursuant to Government Code Section 66016. (Ord. 97-6, 4/22/97) 6.04.050 Notice Regarding Proposed Change in Use. At least thirty (30) days prior to the hearing before the Panel on the change in use, the applicant shall provide notice to all residents and manufactured home owners, affected by the change in use. Such notice shall state the time, date, place and nature of the hearing, shall include a copy of the relocation impact report and a proposed tentative permit and shall inform each manufactured ON home owner that he or she has a right to appear to object to the failure to meet the requirements of this chapter with respect to his or her home's relocation have not been met. Such notice shall also state whether the applicant contends that a manufactured home owner's manufactured home is illegal and, if illegal, informs the manufactured home owner that he or she has sixty (60) days to bring the manufactured home into compliance with applicable laws, as determined by the State of California, or lose the rights of a manufactured home owner under this chapter. The hearing shall not be held until the applicant has satisfactorily verified to the City that all persons have received proper notification. (Ord. 97-6, 4/22/97) 6.04.060 Hearing on the Change in Use. A hearing shall be held before the Panel on any proposed change in use. At this hearing, the Panel shall review the relocation impact report. (Ord. 97-6, 4/22/97) 6.04.070 Allowable Relocation Costs and Conditions on Park Change in Use. A. The Panel may impose payment for the relocation costs outlined in this section on the applicant as conditions of the tentative permit, subject to the provisions of Section 6.04.080. The Panel shall not require any applicant to pay any relocation costs for the relocation of residents who rent their manufactured home from another. The applicant is to pay for the following relocation costs for each manufactured home owner's manufactured home in the park if such costs are imposed by the Panel. 1. Reasonable moving expenses charged by a professional mover for packing and moving the manufactured home owner's personal items within the city limits of the City of Santa Clarita, including full value replacement insurance on the goods being moved. 2. Payment for any necessary storage expense while the manufactured home is being set up in a new park. 3. Payment of an amount set by the City Council by resolution to cover lodging, meals, and incidental expenses from the time when a manufactured home owner in an existing park is required to move out of his or her manufactured home to relocate until the time when the manufactured home is set up in the new park and ready for habitation. This provision shall be inapplicable in the event that the mobilehome cannot be relocated within the City of Santa Clarita and the manufactured home owner is compensated pursuant to subsection B5 below. B. The Panel shall impose as conditions to the tentative permit, the following mitigation measures: 1. The applicant shall move and relocate all manufactured home owners' manufactured homes to a legal location within the City limits of the City of Santa Clarita comparable to the prior location in terms of amenities, rent, location and space size, including professional moving, preparation and take-down services incidental to preparation of the manufactured home for moving to the extent a site is available. A site is not deemed available unless a mobilehome park in the City is willing to accept the specific mobilehome and its manufactured home owner. "Comparable rent" as used herein shall mean rent not more than one percent higher than the previous rent unless a higher rent is justified by an increased space size or other compensating factors and the manufactured home owner consents to such an increase. 2. The applicant shall obtain and retain insurance for moving the manufactured home owner's manufactured home for the full replacement value of the manufactured homes for the entire time of the move including take-down and reinstallation. The replacement value shall be determined in 19 the same manner as used by insurance companies authorized to do business in the State of California in determining the replacement value of the mobilehome if it had been destroyed while situated in the mobilehome park. Insurance shall be with a company authorized to do business in the State of California. 3. The applicant shall install the manufactured home owner's manufactured homes in a comparable parks within the City limits of the City of Santa Clarita, including rebuilding existing legal structures and legal additions to the manufactured home. 4. The applicant replace the manufactured home with a comparable manufactured home if the manufactured home is destroyed or severely damaged in transit to the new park. The manufactured home owner may elect, at his or her sole option, to receive the cash value of the manufactured home destroyed or severely damaged in transit. If a manufactured home owner receives compensation pursuant to this subsection, he or she shall not be entitled to receive any insurance payment. 5. The applicant shall ensure that the manufactured homes meet the requir:,ments of the new park(s) in which they are relocated. The applicant shall rehabilitate manufactured homes to enable them to be accepted into a new park within the City of Santa Clarita. C. Notwithstanding the above, if a manufactured home is illegal, as determined by the State of California, the applicant will only be responsible for moving the manufactured home to a legal location for storage and the applicant will not be responsible for the costs and mitigation measures in subsections (A)(2), (3) and B of this section, even if the same are imposed as conditions by the Panel. The applicant shall not be responsible for paying any storage costs for the illegal manufactured home. Notwithstanding the above, a manufactured home owner shall have sixty (60) days notice pursuant to Section 6.04.050 to bring his or her manufactured home into compliance with applicable law. If the manufactured home comes into compliance with the applicable laws of the State of California, within the sixty (60) day period, as evidenced by the manufactured home owner having provided to the applicant proof from the State of California that the home complies with California law, then the home shall be considered legal for all purposes of this chapter the manufactured home owner and shall be entitled to all rights accorded by this chapter except, that when the tentative permit is granted, the owner shall not be accorded the rights of a legal owner at that time. However, at the time of granting of this final permit, the applicant must provide all of the relocation benefits set forth in Section 6.04.070 with respect to such manufactured homes. D. Notwithstanding the above, if a manufactured home includes illegal additions or structures, the applicant shall not be responsible for the costs associated with tearing down, moving, or setting up the same at a new location. E. If a manufactured home owner locates his or her manufactured home in a park after notice has been given of a change in use which would affect the portion of the park in which the manufactured home would be located, the manufactured home owner shall not be entitled to any of the relocation benefits provided by this chapter. If the proposed change of use does not take place or does not affect the manufactured home owner, then the manufactured home owner shall be eligible for all applicable relocation benefits for any subsequent change of use which affects that manufactured home owner. The manufactured home owner shall sign a written statement acknowledging that said owner is aware that a change of use is contemplated for the park. (Ord. 97-6, 4/22/97) 20 6.04.080 Eligibility of Nonresident Owners for Relocation Mitigation Measures. If the manufactured home owner is a nonresident owner, then the manufactured home owner shall only be entitled to the relocation mitigation measures specified in Section 6.04.070(B) as determined by the Panel as a condition to the Tentative Permit and not the relocation costs set forth in Section 6.04.070(A). (Ord. 97-6, 4/22/97) 6.04.090 Tentative Permit. Following the hearing on the change of use, the Panel shall grant a tentative permit if it determines that all of the requirements of Sections 6.04.030, 6.04.040 and 6.04.050 have been satisfied. (Ord. 97-6, 4/22/97) 6.04.100 Notice to Residents Regarding Hearing on Final Permit. At least thirty (30) days prior to the hearing before the Panel on the final permit, the applicant shall provide notice to all residents and manufactured home owners affected by the change in use. Such notice shall state the time, date, place and nature of the hearing and shall inform each manufactured home owner that he or she has a right to appear to object to the failure to meet the requirements of thus chapter Of the tentative permit with respect to 'Lis o: her home's relocation. The hearing shall not be held until the applicant has satisfactorily verified to the City that all persons have received proper notification. (Ord. 97-6, 4/22/97) 6.04.110 Final Permit. A. After notice is provided as required by Section 6.04.100 and a hearing held regarding compliance by the applicant with the tentative permit, the Panel shall grant the applicant a final permit when he or she has both: (1) substantially complied with the conditions of the tentative permit and (2) substantially complied with the requirements of Section 6.04.070 with respect to all manufactured homes which were illegal at the time that notice was provided pursuant to Section 6.04.050 but came into compliance with all laws within sixty (60) days of such notice. B. The applicant and a manufactured home owner may agree to a resolution different than that approved in the tentative permit after the approval of the tentative permit, and compliance with said agreement by the applicant shall constitute "substantial compliance" under this section with respect to matters relating to such manufactured home owner's home set forth in the tentative permit. The agreement shall include a copy of this chapter as an attachment, together with a statement that the homeowner is aware of his or her rights under this chapter, and that he or she is recommended to consult with an attorney. Any such agreement which is in which it is proven that the agreement was procured by fraud or misrepresentation shall be null and void. C. Notwithstanding the above, the final permit shall not be issued if the applicant has disturbed or caused to be disturbed the area and facilities of the park that are the subject of the application in anticipation of closure of the park to facilitate future development until the affected manufactured home owners receive fair and reasonable compensation for the inconvenience, resulting from such disturbance, as such compensation is determined by the Panel. The panel shall make this determination at the hearing held pursuant to this Section 6.04.120. For the purposes of this section, the removal of uninhabited manufactured homes from the park shall not be considered a disturbance under this Chapter. (Ord. 97-6, 4/22/97) 6.04.120 Appeal from Imposition of Conditions for Change of Use. The applicant, manufactured home owner and nonresident owners affected by the proposed change in use have fifteen (15) days to appeal to the City Council either the Panel's decision to grant a tentative permit or the Panel's decision to grant a final permit. If no appeal is filed within fifteen (15) days of either action, the Panel's decision on either the tentative permit or final 21 permit, as the case may be, shall be deemed final. If an appeal is filed on either action, the City Council shall hear the appeal within thirty (30) days. The City Council's decision shall be final as of the date it is rendered. (Ord. 97-6, 4/22/97) 6.04.130 Notice After Public Hearing and City Approval After the tentative permit is deemed final, the applicant shall give manufactured home owners, nonresident owners, and residents written notice of termination of tenancy as required by State law. (Ord. 97-6,4/22/97) 6.04.140 Park Bankruptcy or Expiration of Land Use Permit. The provisions of this chapter are inapplicable if the change in use of a park is the direct result of a bankruptcy adjudication of the expiration of a land use permit needed to operate the park at its current location. (Ord. 97-6, 4/22/97) 6.04.150 Approval Must be Obtained Prior to Change in Use. No building permit shall be issued on property occupied by a park for uses other than those associated with the park use until a final permit has been obtained pursuant to this chapter. (Ord. 97-6, 4/22/97) 6.04.160 Nonexclusive Remedy. This chapter is not intended to substitute for any legal or equitable remedy otherwise available under law and should be understood to provide remedies which are cumulative thereto and otherwise nonexclusive. (Ord. 97-6, 4/22/97) 22