HomeMy WebLinkAbout2015-02-24 - AGENDA REPORTS - 6.02 HOME PARK RENT ORD (2)Agenda Item: 6
CITY OF SANTA CLARITA
is AGENDA REPORT
NEW BUSINESS
CITY MANAGER APPROVAL:
DATE:
February 24, 2015
SUBJECT:
FIRST READING OF AN ORDINANCE ENTITLED AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
CLARITA, CALIFORNIA, AMENDING CHAPTER 6.02 OF
MANUFACTURED HOME PARK RENT ADJUSTMENT
PROCEDURES
DEPARTMENT:
Community Development
PRESENTER:
Erin Lay
RECOMMENDED ACTION
City Council discuss, approve, and pass to second reading an ordinance entitled "SANTA
CLARITA MUNICIPAL CODE 6.02 - MANUFACTURED HOME RENT ADJUSTMENT
PROCEDURES."
BACKGROUND
Santa Clarita Municipal Code (SCMC) 6.02 - Manufactured Home Park Rent Adjustment
Procedures (Ordinance) was initially adopted by the City Council in 1991. The Ordinance was
developed by a committee of manufactured home park owners and residents, and was designed
to balance the needs of the park owners and park residents. Section 6.02.010 - Purpose,
subsection (B), states:
"The Council finds and declares it necessary to protect the owners and residents
of manufactured homes from unreasonable rent adjustments 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 adjustments in the cost of
repairs, maintenance, insurance, employee services, and additional amenities,
and other costs of operation. "
During the Ordinance update process, staff worked diligently to ensure that the changes proposed
still balanced the needs of the park owners and park residents, as originally intended.
The development of the Ordinance was a voluntary effort on the part of the City; there are no
Ordinance passed to
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federal, state, or local requirements for the City to have an ordinance of this type. The Ordinance
provides controls on the manner and timing of space rent adjustments, but does not set an
absolute limit on the amount of a space rent adjustment. It was not designed to provide
affordable housing or rent control based on the income of the resident, nor does the City have a
rent adjustment ordinance or rent control related to apartments or single family homes.
The key provisions of the Ordinance are:
• Requirement for park owners to register manufactured home spaces periodically;
• Controls on the amount, timing, and noticing requirements for manufactured home
park space rent adjustments;
• A resident appeal petition process for proposed annual space rent adjustments; and
• Creation of an elected Manufactured Home Rental Adjustment Panel (Panel) to hear
appeals of proposed space rent adjustments.
There are 16 manufactured home parks, with a total of approximately 2,000 spaces, which are
governed all or in part by the Ordinance. In at least two of the parks, some residents have long-
term space lease agreements which take precedence over some of the space rent adjustment
limitations in the Ordinance. Within one park, there are 30 spaces rented for the first time after
1991 which are exempt from the Ordinance entirely. Three of the parks, with 437 spaces, are
senior -only and require at least one of the registered owner/residents to be at least 55 years of
age.
Registration fees are currently $4 per occupied space, and park owners are permitted to recover
50% of that cost ($2 per year) from the resident. Registration fees generate an average of $6,857
annually to off -set the costs of administering the Ordinance.
REASONS FOR THE UPDATE PROCESS
Over the last eight years, there have been 10 space rent appeals. During this time, City staff and
the City Attorney have become aware of conflicts and inconsistencies within the Ordinance
overall. The Ordinance has been difficult for park owners and park residents to understand,
resulting in disputes over a number of issues related to the appeal process, including the proper
contents of rent adjustment notices, what issues are subject to review by the Panel, and what
costs may be included in a space rent adjustment. During space rent appeals, the Panel has
expressed concerns about the difficulty of applying the Ordinance to items before them. In
addition, in the last few years a number of manufactured home park residents have contacted
City staff, the City Manager's Office, and the City Council requesting that the Ordinance be re-
evaluated in light of the recent economic downturn.
The difficulty with interpreting and applying the Ordinance has also resulted in significant staff
and City Attorney costs, both during the appeal process and throughout the year. In the last three
years, over 260 Public Records Requests, other requests, or questions related to the interpretation
or application of the Ordinance have been received through the eService system. The difficulty
in administering the current Ordinance is most apparent during the appeal process. Over the past
three years, four appeals have been heard by the Panel. The average cost for staff and City
Attorney time, per appeal, was approximately $41,500.
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The total overall cost of administering the Ordinance is much greater than the registration fees
collected. The chart below shows the direct costs for staff time and City Attorney time to
administer the Ordinance over the last three years. Costs in excess of the registration fees are
paid for by the City General Fund.
The manufactured home registration fee is set by the City Council and is intended to off -set the
cost of administering the Ordinance. Based on the costs over the last three years, the per -space
registration fee would have to be increased from $4 per space to $43 per space to accomplish that
objective. An increase of this amount would result in each resident paying an additional $19.50
per year (50% of the additional $39.00).
LIMITATIONS OF THE CURRENT ORDINANCE
The City's purview within manufactured home parks is limited to those items or areas outlined in
the Ordinance and in SCMC 6.04 - Manufactured Home Park - Change in Use (which is not
addressed in this update process). Specifically, the Ordinance does not provide the City with
authority in manufactured home parks regarding building and safety permits, park maintenance,
guest parking, and space leases.
CURRENT ORDINANCE - ALLOWABLE SPACE RENT ADJUSTMENTS
While there are a number of areas where changes to the Ordinance are proposed, the area that is
of most concern to the park residents and park owners is the amount by which space rents may
be adjusted. The current ordinance allows for an annual space rent adjustment using one of two
methods:
• Adjustment Deemed Reasonable (commonly referred to as CPI): The space rent may be
adjusted by -right in the amount of the Consumer Price Index - All Urban Consumers
(CPI -U), with a minimum allowed of 3% (although park owners may take a lower
amount if they choose) and a maximum of 6%. This method also allows increases in
government -required services and utilities to be apportioned to each space.
• Rent Adjustments Which Exceed Increases Deemed Reasonable: The park owner may
propose a larger than CPI adjustment based on a wide variety of criteria. Adjustments
using this method may be based on information that is very specific (a detailed
calculation of decrease in net operating income for the park) or on assertions by the park
owner that are very broad, such as a fair return on the property or adjustments based on
space rents in comparable parks. The current Ordinance does not specify what costs may
or may not be included in this type of adjustment.
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Total
Registration Fees
Balance of Administrative
Administrative
Collected
Costs Paid from General
Costs
Funds
2012
$58,929
$6,790
$52,139
2013
$99,281
$6,879
$92,402
2014
$101,750
$7,410
$94,340
Totals 1
$259,960
$21,079
$238,881
The manufactured home registration fee is set by the City Council and is intended to off -set the
cost of administering the Ordinance. Based on the costs over the last three years, the per -space
registration fee would have to be increased from $4 per space to $43 per space to accomplish that
objective. An increase of this amount would result in each resident paying an additional $19.50
per year (50% of the additional $39.00).
LIMITATIONS OF THE CURRENT ORDINANCE
The City's purview within manufactured home parks is limited to those items or areas outlined in
the Ordinance and in SCMC 6.04 - Manufactured Home Park - Change in Use (which is not
addressed in this update process). Specifically, the Ordinance does not provide the City with
authority in manufactured home parks regarding building and safety permits, park maintenance,
guest parking, and space leases.
CURRENT ORDINANCE - ALLOWABLE SPACE RENT ADJUSTMENTS
While there are a number of areas where changes to the Ordinance are proposed, the area that is
of most concern to the park residents and park owners is the amount by which space rents may
be adjusted. The current ordinance allows for an annual space rent adjustment using one of two
methods:
• Adjustment Deemed Reasonable (commonly referred to as CPI): The space rent may be
adjusted by -right in the amount of the Consumer Price Index - All Urban Consumers
(CPI -U), with a minimum allowed of 3% (although park owners may take a lower
amount if they choose) and a maximum of 6%. This method also allows increases in
government -required services and utilities to be apportioned to each space.
• Rent Adjustments Which Exceed Increases Deemed Reasonable: The park owner may
propose a larger than CPI adjustment based on a wide variety of criteria. Adjustments
using this method may be based on information that is very specific (a detailed
calculation of decrease in net operating income for the park) or on assertions by the park
owner that are very broad, such as a fair return on the property or adjustments based on
space rents in comparable parks. The current Ordinance does not specify what costs may
or may not be included in this type of adjustment.
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One proposed administrative change to the Ordinance involves a renaming of the two types of
adjustments above in order to improve clarity and ease of use. The proposed change in language
is shown below in italics:
• Adjustments Deemed Reasonable - Standard Adjustment
• Rent Adjustments Which Exceed Increases Deemed Reasonable - Non -Standard
Adjustment
THE UPDATE PROCESS OVERVIEW
Beginning in September 2013, staff conducted an extensive outreach effort to encourage the
participation of all park residents, park owners and managers, and Panel members (stakeholders)
in the update process. The update process consisted of three distinct stages:
• Initial comments (suggestions for changes to the current Ordinance)
• Comments on the proposed draft update
• Comments on the proposed amended draft update
During the initial comment portion of the process, stakeholders received individually mailed
letters inviting them to attend meetings where they could let staff know what changes they would
like to see. Later in the process, stakeholders were notified of additional opportunities to
comment by signing up for the eNotify system, through postings on the City's website, or by
contacting City staff by phone, email, or U.S. Mail.
Public meetings were held during each of the three separate stages in the update process. Over
the course of the entire update process, stakeholders had 14 opportunities to provide comments:
nine public meetings, three Panel meetings, and two City Council Development Subcommittee
meetings. A history showing the date, time, and location of these meetings is attached. Staff
also received comments from park residents and park owners in person, by email, and through
U.S. Mail.
DEVELOPMENT OF THE DRAFT AND AMENDED DRAFT
After the five initial comment meetings were held, staff and the Assistant City Attorney spent
several months crafting a draft update of the Ordinance. The draft was based on initial
comments from stakeholders, historical experience with administration of the Ordinance, and the
desire to honor the original intent of the Ordinance, which was to balance the needs of the park
residents and the park owners.
The draft update was released to the public in May 2014. It was presented to the stakeholders at
three public meetings: a public comment meeting, a Panel meeting, and a City Council
Development Subcommittee meeting. Based on the comments received, staff conducted three
additional public comment meetings in September 2014 to provide stakeholders with further
opportunities to make comments on the draft Ordinance. Proposed amendments were presented
to the City Council Development Subcommittee in November 2014.
An amended draft Ordinance was released in November 2014. The amended draft was presented
to the stakeholders at a Panel meeting and a public comment meeting. The current Ordinance,
with the proposed draft changes and amendments in red -line, is attached. Also attached is a
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clean copy of the proposed amended draft Ordinance, with all changes accepted.
COMMENTS RECEIVED - PARK RESIDENTS
Throughout the update process, the most common verbal and written comments from park
residents was concerning the amount of the space rent allowed as part of a Standard Adjustment.
Many residents requested the minimum adjustment allowed in a Standard Adjustment be reduced
from 3% to as low as 0%. Some residents also suggested adjustments for seniors should be less
than adjustments for other residents, that the adjustment be tied to increases in Social Security
payments, or that long-term resident's rents should be capped. A few residents expressed the
view that park owners should not be allowed to adjust space rents in any way and that park
owners should not be allowed to make a profit on the parks.
Two photocopied resident petitions, one with 11 names listed and one with 14 names listed, were
received regarding the Panel -Approved Summary (Summary). The Summary is a document
used to inform residents of their rights under the Ordinance, which was most recently updated
and approved by the Panel in 2014. These two petitions requested that the currently approved
Summary be set aside, and an earlier version of from 2007 be used instead. A petition signed by
16 residents expressed the opinion that the Ordinance should not be changed in any way.
Residents also voiced concerns about a number of items which were outside the direct purview
of the Ordinance, including park maintenance, building and safety permits, guest parking, and
tenant -landlord disputes. When those comments were received, staff directed the residents to the
most appropriate agency for that complaint, which included the State of California Department
of Housing and Community Development and the Department of Consumer Affairs.
COMMENTS RECEIVED - PARK OWNERS
The most frequent comments by park owners also addressed the minimum adjustment allowed in
a Standard Adjustment. The amended draft retains the 3% minimum for Standard Adjustments,
but significantly reduces an owner's options for Non -Standard Adjustments. When presented
with the amended draft, most park owners stated that they would be amenable to the new
limitations in the Non -Standard Adjustments, but only if the minimum 3% in the Standard
Adjustment was retained.
Owners argued that the minimum 3% should be retained because it is needed in order to maintain
and improve their parks. Park owners also expressed the belief that the CPI -U calculation does
not accurately represent their annual adjustment in costs of operating a manufactured home park
because it is based on a sampling of costs of consumer goods and services, not on business
investments. Several of the owners of larger parks pointed out that they had never imposed a
Non -Standard Adjustment because they were able to address maintenance and improvement
costs using only the Standard Adjustment, even when it was the minimum 3% allowed. They
further stated that reducing the 3% minimum in a Standard Adjustment would force them to
begin imposing Non -Standard Adjustments, potentially resulting in larger adjustments for the
residents.
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Historically, Non -Standard Adjustments approved during an appeal process are larger than
Standard Adjustments. The chart below illustrates this by showing actual adjustments approved
in the most recent Non -Standard adjustment appeals, compared to what the adjustments would
have been if a 3% Standard Adjustment had been imposed instead.
Non -Standard Adjustment Range of Potential
Approved on Appeal Adjustments under 3%
Standard Adiustment
2010 1 $68.78 per month 1 $11 - $20 per
2013 (SandI $57.37 per month I $15 - $18 per month
Canyon)
Park owners also made the argument that they cannot legally be made responsible for providing
affordable housing for lower-income residents or be required to limit rent adjustments based on a
resident's ability to pay.
PROPOSED UPDATES TO THE ORDINANCE
The amended draft retains the balance between the needs of the park residents and the park
owners. The 3% minimum for a Standard Adjustment is retained, but the amended draft
significantly limits the types of costs allowed in a Non -Standard Adjustment. The amended draft
also proposes to allow a market -rate adjustment of vacant spaces.
Attached is a summary of the proposed changes to the Ordinance. The key changes are outlined
below:
Space Rent Adjustments
o Significant reduction in the allowable justifications for a Non -Standard Adjustment
o Removal of option for adjustment based on a decrease in the owners net operating
income
o Clarification and expansion of requirements for noticing residents
o Requirement for park owners to provide supporting documentation to residents for a
Non -Standard Adjustment
o Expansion of the amortization schedule to items allowable by the IRS
o Change in allowance of adjustments from once every 365 days to once each
calendar year
Manufactured Home Rental Adjustment Panel
o Process for seating alternates
o Majority vote process for fifth Panel member
o Increased options for formation of a quorum
Appeal Hearings
o Clarification of what issues may be appealed
o Increased options for Panel to request supporting documentation
o Creation of appeal petition form for residents
o Removal of reduction in services section - default to State regulations
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ALTERNATIVE ACTION
City Council discuss alternative economic structure for the ordinance to include variations to the
standard and non-standard rate increases.
City Council not approve the update.
Other action as determined by City Council.
FISCAL IMPACT
This item has no fiscal impact.
ATTACHMENTS
History of Public Comment Opportunities
SCMC 6.02 Proposed Changes in Red -Line
SCMC 6.02 - Changes Accepted
Summary of Proposed Changes to SCMC 6.02
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I 6.a I
SANTA CLARITA MUNICIPAL CODE 6.02 UPDATE PROCESS
History of Public Comment Opportunities
Date
Type of Meeting
Attendees or Speakers
t:
June 2, 2014
Panel Comment on Draft
4
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September 9, 2013
Initial Public Comment
35
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June 9, 2014
City Council Subcommittee
7
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September 16, 2013
Initial Public Comment
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September 2, 2014
Public Comment on Draft
35
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September 19, 2013
Initial Public Comment
20
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September 3, 2014
Public Comment on Draft
8
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October 10, 2013
Initial Public Comment
9
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September 4, 2014
Public Comment on Draft
56
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November 4, 2013
Initial Panel* Comment
2
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November 17, 2014
City Council Subcommittee
12
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Draft Update Released — May 2014
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Amended Draft Update Released — November 2014
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May 29, 2014
Public Comment on Draft
26
* Manufactured Home Rental Adjustment Panel
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t:
June 2, 2014
Panel Comment on Draft
4
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June 9, 2014
City Council Subcommittee
7
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September 2, 2014
Public Comment on Draft
35
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September 3, 2014
Public Comment on Draft
8
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September 4, 2014
Public Comment on Draft
56
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November 17, 2014
City Council Subcommittee
12
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Amended Draft Update Released — November 2014
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December 3, 2014
Panel Comment on Amended Draft
12
December 10, 2014
Public Comment on Amended Draft
2
* Manufactured Home Rental Adjustment Panel
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6.b
6.02.01OSanta Clarita Municipal Code 6.02 -DRAFT
Chapter 6.02
MANUFACTURED HOME PARK RENT ADJUSTMENT
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-.
6.02.080070
Space Rent Limit:
6.02.080 Annual Space Rent Adjustment Notice
6.02.090 Allowable Methods for Annual Space Rent Adjustments:
6.02.110 Deeision of the Panel-.
6.02.120 Standards of Reasona leness to ` App"ed to Rent Adjustments.
6.02.=30 Reduetion in Sen,iees.
6:02340 Amortization Schedule-.
6.02.120 Annual Space Rent Adjustment Anneal Petitions
6.02.130 Change in Ownership Space Rent Adjustment Procedures
6.02.150 Vacant Spaces
6 15SHearings.
6.02.160 Appeal Hearings
6.02.170 Decision of the Panel
6.02.180 Miscellaneous Provisions
6.02.010 Purpose.
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Santa Clarita Municipal Code 6.024. W - DRAFT
BA. A manufactured home park resident's tenancy in a manufactured home park is substantively
different than traditional apartment tenancy in that the park resident owns their manufactured home, while
still being subject to space rents. Manufactured homes are costly and difficult to move and there may not be
available spaces in other nearby manufactured home parks to relocate to, resulting in the park resident
having fewer options to move out of the park to find lower rents.
B. Park owners, having made a business investment in the manufactured home park. have the right to S
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receive a fair return on their property. Nonetheless, as a result of the unique tenancy circumstance that park tx
residents are in, park owners should be subject to reasonable procedures in the imposition of space rents.
C. For these reasons, among others, the Council finds and declares it necessary to preteetthe eHwefs
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md-residents-e€provide a process whereby manufactured home residents are not 9
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subiect to excessive rent increases, while at the same time recognizing the neednights of park owners to
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receive a fair return on their property and rental income sufficient to cover reasonable increases in the cost R
of repairs, maintenance, insurance, employee services, and -additional amenities, and other costs of f
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operation. �!?
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6.02.020 Definitions.
the
!`ouneil or the panel a net allowable.,...,.,e,..,F:.,..e',,.,e.,..e.. '
"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 capital improvement must have a life expectancy of three (3) years or more and must be
treated as a capital imprevementsimprovement 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 existing
equipment, machinery, streets, sidewalks, utility lines, landscaping, structures, or recreational amenities,
which materially benefits and adds value to the park.
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` 02 "' ^Santa Clarita Municipal Code 6.02 -DRAFT
1. The capital replacement must have a life expectancy of three (3) vears or more and must be
treated as capital replacement 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 replacement
3. Insured repairs are not capital replacement.
"Chapter" means all sections of Chapter 6.02 of the City of Santa Clarita Municipal Code.
"CPI" means the Consumer Price Index (all items) prepared by the Bureau of Labor Statistics for the
Los Angeles IeRg Beaeh XnaheifaRiverside-Orange County 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.
"GFess ineeme" ,.hall he .....1eAned_ in cession c 02 1 cn ec this ehapte.
"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.=" and shall mean a structure
designated or designed for human habitation, transported over the highways to a pennanent occupancy site,
and installed on the site either with or without a permanent foundation. The term "manufactured home" does
not include either a recreational vehicle or a commercial coach, as such terms are defined in the Health and
Safety Code.
"Manufactured home park" and "park" shall be synonymous with the term "mobilehome park" and
means an area of land where two (2) or more wmWehememanufactured home spaces are rented or leased
out for fnebilehemesowner-occupied manufactured homes used as residences. The term "manufactured
home park" does not include developments which sell lots for x+ebileheawsmanufactured homes or which
provide condominium ownership of such lots, even if one or more homes in the development are rented or
leased out.
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8.6
Santa Clarita Municipal Code 6.02:0440 -DRAFT
"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 Clarity
"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.
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the Wealth Find 9A445, Code.
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."Opeffifing expenses" shall be as de4ised ia Seetien 6.02.159 of this ehapteF.
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"Panel" shall mean the manufactured home rentrental adjustment panel, as established by this chapter. C
"Panel -Approved Summary" shall mean a document approved by the panel, providing manufactured R
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home park owners and residents with a summary of requirements related to the contents of a rent adjustment v
notice and the right of the resident to request a hearing before the panel, pursuant to section 6.02.120. 0)i
"Rental agreement" means an agreement between the manufactured home park owner and a resident a
establishing the terms and conditions of a month-to-month tenancy.
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"Space rent" means the consideration, including any bonus, benefits, or gratuities, demanded or J
received for or in connection with the use or occupancy of a manufactured home within a manufactured z
home park. The use and occupancy of a rental unit shall include the exercise of all rights and privileges and S
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use of all facilities, services, and amenities accruing to the residents thereof for which a separate fee orn
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authorized by the Mobilehome Residency Law (California Civil Code Section 798, et seq.) is not charged. v
Nothing herein shall be construed to prevent a park owner from establishing such fees as may be authorized u
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by the Mobilehome Residency Law. _Space rent shall not include utility charges for utility services, a
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including gas, electricity, and/or sewer service provided to an individual manufactured home residence (as a`
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opposed to the park in general) where such charges are billed to such a resident separately from the space m
rent and such charges are limited to the actual value of the utility service provided in the individual g
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residence. (^-,, 90 QQ 1 W27/90; n -a n< 1 c i anoint) N
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
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6.b
` 02 01 "Santa Clarita Municipal Code 6.02 -DRAFT
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. '^-a. 90 38, 112W90
6.02.040 Manufactured Home Rental Adjustment Panel.
A. A—Establishment. The manufactured home rental adjustment panel of the City of Santa Clarita
is hereby established.
B_8 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, two members elected from and
by the residents, and one member chosen from a list of €bleat least two potential members drawn up by the
City Manager; eensisEieg. The fifth member shall not be a resident of peFsens Feeontnieiidedg manufactured
home park, have an ownership interest in a manufactured home park, or receive financial benefit from
investment in a manufactured home park. Such member shall not have a personal or professional
involvement in matters relating to manufactured home narks. The fifth member shall be chosen by maiori
vote of the four elected members. In the case of a tie. the City Manager fFeFR Veluiitafy Mediation SeMees,
shall cast the deciding vote.
B:C. In no case shall both resident -representatives af•he paFlE awnefs and !he ^r both owner -
representatives e#be from the Fesidenis will sel the fiQh fnembe- by u644 ..^ same manufactured home
park. If a panel election process results in the highest two vote -getters for the alternate lFike
methedresident-representative position, or the highest two vote -getters for the owner -representative position
being from the same park, the individual with the
The elee4ion of Fepi:ese...atives of the . aFk ^..,..,._. and .h_ -..-:.,.._...homer number of votes from that nark
will be seated. The second seat will be awarded to the paMel shall be cendueted by the Gamma^it•
regulations ulgated by the ^ ty Manager. next highest
vote -getter from another park. Any dispute or contest regarding an election, the election rules-wA
regulations, procedures, or election resultsT shall be determined by the City Manager and the City Manager's
decision shall be final.
Q — Ngah ....,...h.._ e fthe panel -hall qPPOR a.- a tp of thfoe n) .....-.. Bach ..,,....h__ Shall he!
D. P.—Term of Elected Representatives. Each member of the panel shall serve for a term of three
(3) years. Each member shall hold office until a new member has been duly sworn -in. In the case of a
resignation from the Panel during the 3 -year term, the next highest vote -getter from the most recent election
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Santa Clarita Municipal Code 6.02-.048 - DRAFT
will be asked to fill the vacant seat as long it does not result in both resident -representatives or both owner -
representatives being from the same park. If the appointment of the next highest vote -getter will result in
both resident -representatives or both owner -representatives being from the same Dark. the next highest vote -
getter from another Park will be appointed. In the case of a panel member resignation or inability to serve
on the Panel during the three-vear term, and when there are no resident -representatives or owner -
representatives willing or available to fill the seat, an election will be held to fill the seat according to
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procedures and a schedule set by the City Manager.
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E. Term of the Appointed Member. The appointed member shall serve for a three-year term.. In the
case of a resignation or inability to serve on the Panel during the three-year term. the City Manager shall
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provide the four elected members of the Panel with a list of at least two (2) potential candidates and the
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Panel shall conduct a majority voting process as outlined in this section..
GF.Absences. Any member who is absent, without sufficient cause, from three (3) consecutive
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meetings of the panel shall he deemed to have vacated histhe office.
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&G. 9. Nilee finge Exeepf as a essly . ..:ded hemi the . ..el shall establish the time
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and ple^e of Its .eeting. Meetings. All meetings of the panel shall be conducted in accordance with the
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provisions of the Ralph M. Brown Act.
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&H. F—. ---Guidelines, Rules, and Regulations. The City Council may from time to time adopt
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by resolution such guidelines as it deems necessary to assist and direct the panel in the accomplishment of
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its duties. The panel may make and adopt its own rules and regulations for conducting its business consistent
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with the laws of the State, this chapter, and any guidelines adopted by the City Council. Any such rules and
regulations shall be redueed-te up t in writing and be on file with the secretary of the panel at all times. The
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panel may appoint such officers as it may deem necessary to cant' out its duties hereunder.
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F:1_Fi—Staff. The City Manager shall provide all administrative staff necessary to serve the panel.
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Staff from the Department of Community Development shall serve as the secretary of the panel and shall be
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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
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designee of the City Attorney shall act as legal counsel to the panel.
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LH—.—Quorum. A quorum shall be constituted in only one of two waw
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]_Three (3) members with at least
theone1 member elected by the residents, at least one (lmember elected by the park owners, and the
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fifth member seleetedchosen by the .four elected members.
2. Four (4) members with at least two (2) members elected by the residents. and at least two (2)
members elected by the Dark owners.
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02 n, nSanta Clarita Municipal Code 6.02 - DRAFT
G — Adoption of Findings A majority vote of all members, i.e., three (3) votes, is required for
the 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.
#:L. 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 cavy out its duties.
2. To Fee•d..e such registration of manufaettiFed 1.eme ...._Ls as the panel Fnay dee.....
e :able it to ean�,-out its esbear appeals brought before them and:
3. To make determinations on space rent adjustments in as provided for in this
chapter.
43. To make such studies, surveys, and investigations, conduct such hearings, and obtain such
information as is necessary to carry=out its powers and duties.
34. To adopt, prenvAgate amend, and rescind such administrative rules as may be necessary to
e€feetuatecarry-out the purposes and policies of this chapter and to enable the panel to carry -out its
powers and duties hereunder.
65. To undertake such other related duties as may be assigned by the City Council. (9rd-90 38,
6.02.050 Registration.
A. sir,.,,:., ,. itm ,.,.,e..d.,.. d,.. .. ,.a... .,... _ra d c t, .,• d•P a � �.•
ehapteF;Registration. Park owners shagmust register all manufactured home parks and manufactured home
rental spaces within such parks with the DeparFment of Community Development Department. The initial
registration shall include-. all of the following:
1 All information requested on forms sent by the City to the na::e(s), busi :ess-d- d ess(es),
'Hesstelephone-Park owner for the purpose of registration
2. A rent roll for the month immediately precedingthe he registration reflectin¢ the space number(s)
Of ea6h PeFSOH or legal entity possessing an awnership iFitefost in the paFk, and nmufe of sueh interest-,
the_RUFgbeF ,.c..,a..0 f et...ed ,,,.a.,. _ tall spaees r within the padii; the name and address aC by resident=
..eliedule ..eF,eeting within the ...._l. ,. the e4Y'eeti a date o f h d'
_ ._... name, space rents � ,::r�_-- r--- --- .------_---.- _--- _...._ .,......a.__
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e9dified :ms- aptw-,and a listing of all other charges; paid by the park resident including;
a. Utilities not included in space rent, paid b; residents within !be par::, and the e
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Santa Clarita Municipal Code 6.02,049 - DRAFT
b. Any amortized capital improvement or replacement charges.
c. Any other monthly fees as may be required nefiees and eemspendenee may be seRt.of the
resident.
B. Re -registration. The Depe 4mem of -Community Development Department is hereby empowered
to require such re -registration as it deems necessary. NO PW4 O'A%BF shall be eligible te reeeive any Feat
FREE)' than 198 Mqtdfed &F 1140 MaHH&OWFOd 148FRO Pa& is OR filO With the Depai4meflt of GOFAMHH4!�
Development at 4he 6fae !he petifien for the rent eeiling adjustment is filed.
A -.C. Applicability. The registration requirements provided for in this section or which may be
established by the Department of Community Development Department shall apply to all manufactured
home parks, including those exempt from the space rent ceiling limitatienlimitations and procedures in the
chanter by reason of the existence of a valid space rent agreement. ,
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6.02.060 Registration Fee.
A. Establishment of Fee. , Park owners m
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shall pay to the City of Santa Clarity sueha registration fee for each manufactured home rental space
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regulated by this chapter within the park as may be established by resolution of the City Council. Half of the
fee paid for each space may be hazged by the perS
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ewaeF-to the residents aeoeMing te said appeFtiepneFitpark resident occupying that space by a single O1
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a.Flnaalseparately specified one-time charge on a space rent bill whigh -hall be _,._. ___ti-eside_. within v
thk4y (39)sixty (60) calendar days after the fees have been paid to the City. Sush fees shall not be insk-dod
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44he-rent-. w The registration fee shall not apply to parks and spaces exempt from *is-ebepteFthe o
payment of fees by State law (inclusive of Civil Code Section 798.17). a
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B. Penalty._ If a park owner does not pay the fee provided for in subsection A of this section within
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the time period established therein, a late charge shall be assessed in an amount as established by resolution V
of the City Council. w
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C. Unpaid Fees. No panel appeal hearing eF ethef preseedieg-shall be scheduled or take place, and fie
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regardiog_a park for 0
which there is an unpaid registration bill. NO .....,...ptiOn ffO,..the P,, .iSiO^^ Of this ehaptO- Which aFe
....cv.r...by FeasaR of the �cxc.
heme pads G_ which thee. is If an unpaid registration billispaid, including any penalties accrued, a hearing
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< 0 n, 0Santa Clarita Municipal Code 6.02 -DRAFT
may then be scheduled. Failure to vav a Citv reeistration fee is not grounds for a space rent adiustment
appeal. I
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 Gity A4anager The Director of Community Development is directed to I c
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maintain an accurate accounting of all direct and indirect costs of administering the regulations contained in w
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this chapter. The City Managef shall submit a Fepeo to the DepaAmentDirector of Community Development
andshall submit to the City GeuneilManager amort of such costs and ", Feeefameadatiens for a Mange ift
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the regis#atien fee at least annually [1,.ffi e..d ewe_ the a ffeet:..e date of the .._d:..enee e..d:aed :_ this �
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ehapte.. (/l..d nn vo 1112W90; 04 n< 0 1123A96; Ord nc 1 c 1 onom<)
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6.02.080070 Space Rent Limit.
A. U
Beginning the r. ..
,Effective Date. No manufactured home park owner �
shall charge space rent for any manufactured home space in an amount greater than the space rent in effect
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on August 1, 1990, except as permitted pursuant to the provision of this chapter.
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B. Exemption. If a park space is exempt from the application of the space rent limitation or
registration fee portion of this chapter by reason of the existence of a space rent agreement and this c
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agreement expires, the space rent limit for that par-kspace shall be the space rent in effect on the date I
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immediately preceding the date on which the agreement expires. u
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6.02.090 80 Annual Space Rent Adjustments.
A FFohib:.:e., eG Ad:.............e TL.:�Fease spaceFen;shall be p .ted except for a annual ..
ent
B. Adjustment Notice.
A. Notice. Prior to the annual space rent adjustment,
e_, ihme hund..ed si*t., a..e (365) days, the park owner shall provide the resident with a notice of
proposed rent adjustment at least ninety calendar (90) days prior to the effective date of owlithe adjustment
and issue suehthe notice no later than October 4 -AI to be effective either on January 4-A of the following
year or on the resident's anniversary date following January ist. The paFIE e..,..ef shall post a suni...e.., ec
Packet Pg. 62
Santa Clarita Municipal Code 6.0219 - DRAFT
heafing for allappeals feceived. " netiee of rent adjustmentshall ferthl. All space rent adjustment
notices shall contain all of the following information:
1. A listine of all affected spaces by space number only. The name of the resident and amount of
thesespace rent increase bethshall not be included in dellans and esthe listing. Affected spaces include all
those spaces beine notified of a POFOORtagO Of wdstifigproposed space rent Adiustment: andeithef
a2.A copy of the current Panel -Approved Summary of this chapter. The Summary will be
provided annual) t�park owner by the City for inclusion in the annual space rent adjustment notice;
and
B. Standard Space Rent Adjustments. For a space rent adjustment which is based on 6 02 090(C) –
Standard Space Rent Adjustments:
1. A statement that the park owner considers that portion of the space rent irtereaseadjustment to be
consistent with the 4R4tatienlimitations set forth in section 6.02. "�90(C) of this chapter; eF
of the ineFeases in fna:RteRaRee and operating e"enses; a statement of the east, nature ,
Viand
fef 4he pfeeeding t3A,e!N,e (12) menths eeflipared to that fOF the-niest-f� twelve (12) fnenth pefied; or
etheF Felevant infeFfflatien that suppefts the level of rent increase desifed and as Fnay be FequiFed by the
Gaun it of the panel,
2 — The identityamount of all affee4ed FesideRts and the spaeeswhieh theythat resident's space rent:
3. The fight ,.e the F@SidePA W -e^ adjustment both in dollars and as a
panel advising Fesidents ef the appeal pFeeedure and of the ak,ailability of the panel to delibeFate appeals
is posted on the pvAE bulletiR-I)awd,
percentage of existine rent: and
3. The amount of the resident's space rent adjustment attributable to an increase in government
required services in dollars, and
4. The amount of the resident's space rent adjustment attributable to an increase in utility costs in
dollars.
C`4—Non-Standard Space Rent Adjustments. For a space rent adjustment which is based on
6.02.090(D) – Non -Standard Space Rent Adjustment:
1. A statement that the park owner considers that portion of the space rent adjustment to be
consistent with the limitations set forth in Section 6.02.090(D)
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` ^' ^ ^Santa Clarita Municipal Code 6.02 -DRAFT
2. The amount of that resident's space rent adjustment both in dollars and as a percentage of
existing rent, and3. Information supporting the level of non-standard space rent adjustment proposed
Such information must include all of the following:
a. Specific reference to which allowable costs are being included in the proposed non-standard
rent adjustment by citation from section 6.02.090(D): and
b. The mathematical calculations or analysis relied upon by the park owner to determine the
amount of the proposed non-standard space rent adjustment, including the amortization time period
assigned to each capital improvement or capital replacement as provided for in section 6 02 110 (A)7
and
c. A statement informing the resident that the importing documentation for the non-standard
space rent adiustment will be available to park residents at the park management office during all
normally observed office hours beginning the same day the notice is provided
D. Supporting Documentation All non-standard space rent adjustments shall be supported by source
documentation related to the amount of the space rent adjustment and the mathematical calculations or
analysis contained in the notice. The source documentation for a non-standard space rent adjustment shall
be kept in the nark management office for at least forty-five (45) days, beginning on the date of the notice
and will be available for review by affected park residents during all normally observed office hours In
cases where a space rent appeal petition has been submitted which meets the criteria set forth at section
6.02.120, the supporting documentation shall remain available until a final determination is made on the
appeal.
During the periods described above copies of all supporting documents will be provided to affected
residents upon reouest. A resident may reouest the documentation in one or both of the following formats:
a Physical copies shall be provided at a fee set by the park owner, not to exceed $ 25 per page
b. Electronic copies shall be provided free of charge in a PDF or similar format as an email
attachment sent to the requesting resident's email address.
E. 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
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Santa Clarita Municipal Code 6.02:848 - DRAFT
B.b
park owner requested the resident to sign the joint document acknowledging receipt, and the date the
declaration was executed.
6.02.090 Allowable Methods for Annual Space Rent Adjustments.
A. Frequency. The annual space rent adiustment may occur only once every calendar year.
B. Annual Space Rent Adjustment Methods. Any annual space rent adjustment shall follow only one
of the two methods outlined below: either an annual space rent adjustment based on section 6.02.090 (C) —
Standard Space Rent Adjustments. or an annual space rent adjustment based on section 6.02.090 (D)—Non-
Standard Space Rent Adjustments.
C. Standard Space Rent Adjustments. The following adjustments in rent shall be permitted by right
and may not be appealed except in the situations specified in section 6.02.120(A). This adjustment shall be
calculated using the Consumer Price Index (CPI) reported each August for the previous twelve (12) month
period of August V throuph July 31" reported by the Bureau of Labor Statistics for the Los Angeles
Riverside -Orange County area.
1. An adiustment of space rent less than or equal to a minimum of 3% and a maximum of the
lesser of either 6%, or the annual adjustment in the CPI reported each August for the previous twelve
(12) month period of August I" through July 31' reported by the Bureau of Labor Statistics for the Los
Angeles -Riverside -Orange County areas. In such cases where the CPI is at or below 0%. a reduction in
space rent is not required: and
2. An adjustment based on the actual increase in the cost of government -required services: and
3. An adjustment based on the actual increase in utility costs where such utilities are included in
the space rent.
The Director of Community Development or designee, annually, will receive the CPI updated result and
cause notice of such to be mailed to each park owner and park resident in the City. Such standard space rent
adiustments will be calculated on the space rent only and will not be calculated on monthly costs related to
amortized capital improvements or replacements, utilities, or other costs not part of the space rent.
D. Non -Standard Space Rent Adjustments. An adjustment to pay for the actual costs of capital
improvement or capital replacement as defined in the definitions section of this chapter, which were
incurred within the 24 months prior to the rent adjustment notice, and are not otherwise disallowed by State
law. Costs must be amortized as permitted in section 6.02.110.
E. Appeal Considerations — Standard Space Rent Adjustments. In the case of a Standard space rent
adjustment, an appeal may only be brought before the Panel in the situations outlined in section
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6.02.01OSanta Clarita Municipal Code 6.02 -DRAFT
6.02.120(A). In making their determination. the Panel may consider all relevant information and may
request any such information or documentation as they deem necessary, including but not limited to:
1. Verbal testimony
2. Copies of bills, invoices, or statements
3. Copies of receipts or checks
4. Other documents supporting the level of adjustment proposed
F. Appeal Considerations — Non -Standard Space Rent Adjustments. In making their determination
on the appeal of a Non -Standard Space Rent Adjustment the Panel may consider all relevant information
and may request any such information or documentation as they deem necessMincluding but not limited
to:
1. Verbal testimony
2. Copies of documents made available to the residents as part of the noticing requirement,
outlined in section 6.02.080(D)
3. Other documents supporting the level of increase proposed
6.02.110 Amortization Schedule.
A. For the purpose of determining any rent adjustment pennitted under the provisions of this chapter.
the cost of capital improvements or capital replacements shall be amortized according to the following
schedule, for those items listed. For items meeting the definition of capital improvement or capital
replacement herein, but not listed on the amortization schedule, the amortization period shall be consistent
with that prescribed by federal law for depreciation.
Type of Improvement or Replacement
Amortization period
Backflow device
10 years
Carpeting
5 years
Copier
6 years
Copper pipes
10 years
Drapes
5 years
Gas barbecue
3 years
Gas line
15 years
Gas valve and fire hydrant
10�years
Heater motor
5 years
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Santa Clarita Municipal Code 6.02,010 - DRAFT
Houses
30 years
Liaht fixtures
5 years
Linoleum floor
5 years
Oven
6years
Patio furniture
5 years
Pool heater
5 years
Pump
5 years
Refri e�or
6 years
Roofing
Ig years
Security fence
5 years
Sewer line construction
15 ye
Solar system
10 year
Telephone system
6 veers
Water heater
10 veers
Water softener
5years
SOFN'ed eB the-e-:ae... ,, hiGhe„e- iS laleF, ._,e« . appOal POIWOFI Signed ,,Space Rent Invoice
Documentation. Any amortized capital improvement or capital replacement cost imposed as part of a non-
standard space rent adiustment must be clearly marked on the space rent invoice, or on another document
included with the space rent invoice, with name of the capital improvement or capital replacement, the
monthly amount, and the date the cost will expire. If a cost is not removed from the space rent invoice in a
timely manner, residents may reouest an appeal before the Panel.
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6.02.0 ! "Santa Clarita Municipal Code 6.02 -DRAFT
C. Amortized Costs not Removed. A request for a hearing based on an amortized cost not removed in
a timely manner may be part of the appeal petition of an annual space rent adjustment or as a separate item
If an appeal petition based on an amortized cost not removed in a timely manner is submitted outside the
annual space rent adjustment appeal process, it must meet the requirements of section 6.02.120 (B) through
(F). If the Panel determines that an amortized cost was not removed in a timely manner, resulting in
overpayment by the park residents the Panel may require the amortized cost to be removed and may require
the park owner to reimburse affected residents the amount of overpayment, subject to any limitations
imposed by law at the time of the Panel's decision.
6.02.120 Annual Space Rent Adjustment Appeal Petitions.
A. Time Limits. A petition requesting an appeal hearing for an annual space rent adjustment as
allowed for in this chapter must be filed with the Community Development Department within forty-five
(45) calendar days of service of the notice of proposed space rent adjustment or forty-five (45) calendar dam
from the date of the space rent increase if no notice is received, whichever applies. Appeals may not be
heard for a Standard space rent adjustment based on section 6.02.090(C). except for one or more of the
following reasons:
1. The CPI percentage adjustment proposed in the notice is above the actual CPI percentage
provided in the City's most recent notice to the park residents and park owners.
2. The increased costs of government required services or utility costs in the proposed space rent
adiustment are greater than the actual costs incurred by the park owner.
3. A notice that is not substantially in conformance with the requirements at section 602.080.
B Appeal Request Form Appeal petitions must be submitted on an Aktpeal Request Foran approved
by the Director of Community Development and obtained from Community Development Department staff.
All pages of the form must be complete and the petition signature page must contain signatures from
residents of at least fifty percent (50%) of the spaces regulated by this chapter and affected by the proposed
space rent iaereaseadiustment, plus one additional regulated and affected space, reqUOSIS a h0afift OR._
C. Park Owner Notification. The residents submitting the appeal must
provide a full copy of the panel " Fequest f - a he.,_:_g must be "_a - kh-ppeal cetition to the BepeAffient
of -park owners within ten (10) calendar days of submission to the Community Development within fet{y-
five (45) days of seMee of Department.
D. Determination by Director of Community Development. It shall be the sole discretion of fent
adjustment. The he Director of Community Development shall neti WDirector)to determine if
the basis upon which the petition for appeal is filed meets the criteria set forth in this chapter. No hearing
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Santa Clarita Municipal Code 6.02,04-0 - DRAFT
will be scheduled unless such a determination is made. Only if the Director determines that the appeal
meets the criteria of this chanter will a hearing be scheduled
1. If the Director determines that an appeal petition does not meet the criteria set forth in this
chapter, the Director shall cause the park owner or other person designated on the park's registration and
the affected residents to be notified. Such notice shall be mailed, first-class postage prepaid within
fifteen (15) calendar days of the submission of the appeal petition
4:2. If the Director determines that an appeal petition meets the criteria set forth in this chapter
he shall cause the park owner or other person designated on the park's registration and the affected
residents to be notified of the time, date, and place of the hearing. _Such notice shall be mailed, first-
class postage prepaid, at least fifteen (15) calendar days prior to the scheduled hearing date.
6.02.13014 Change in Ownership Space Rent Adjustment Procedures.
A. Manufactured Home Sale. Notwithstanding the above, if a faebilehoineanyather provision of this
chapter, if a manufactured home is voluntarily vacated by all tenants as a result of a sale of the
anebilehememanufactured home to a new owner, and the meb4eheeaemanufactured home is not removed
from the site, then the mffidmum rent eF Fniudinum aEljustedrent may be increased by an amount not to
exceed ten (10) percent. As leRg as the mebileheme eentinues !@ be awned by OFIO OF fRE)Fe Of the Saffie
Pemens, He ethef MR! iflefease shall be The rent may only be increased pursuant to this section—.T-he
once in any twelve (12) consecutive -month period,
regardless of additional changes in ownership A change in ownership increase does not preclude an annual
space rent adjustment in the same calendar year so long as all noticing requirements as set forth in section
6.02.080(C) are observed.
B. Notice to Prospective Manufactured Home Buyer. As required in California Civil Code section
798.74.5, within two (2) business days of receiving a request from a prospective homeowner for an
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911 IM
B. Notice to Prospective Manufactured Home Buyer. As required in California Civil Code section
798.74.5, within two (2) business days of receiving a request from a prospective homeowner for an
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6.02.01OSantaClarita Municipal Code 6.02 -DRAFT
application for residency For a specific space within a manufactured home park if the management has been
advised that the manufactured home occupying that space is for sale the management shallivg a the
prospective homeowner a separate document entitled "INFORMATION FOR PROSPECTIVE
HOMEOWNERS," which will include the space rent for the prospective manufactured home buyer.
C. Notice to Manufactured Home Seller. The park owner will also provide a copy of
"INFORMATION FOR PROSPECTIVE HOMEOWNERS." to the resident selling their manufactured
home. It shall be the responsibility of the current manufactured home owner selling the manufactured home
to verify that the proposed space rent for the prospective buyer of their manufactured home does not exceed
the increase allowed in this section.
D. Remedy. If a manufactured home park resident seller or prospective manufactured home park
buyer believes that the park owner is exceeding the permitted 10% increase on space rent for a change in
ownership, the party may seek any Judicial remedy provided bylaw to enforce this section.
6.02.150 Vacant Spaces.
If a space becomes vacant by virtue of there being no manufactured home situated on the space or the
manufactured home on the space is owned by the park owner, and the space has not been rented to a resident
for at least thirty (30) calendar days, the space rent may be increased to a rate as determined by the park
owner at the time the space is initially rented to a new manufactured home owner. Once the space is rented
to a new manufactured home owner, all other controls in this chanter shall become effective.
6.02.091 Rent Adjustment HeariR9160 Appeal Hearin s.
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. Rliles of Ey a'- -.B. Appeal Justifications. Rent Adjustment hearings may only be held for the
causes specified in 6.02.080 — Annual Space Rent Adjustment Procedures, and 6.02.110 — Amortization
Schedule.
C. 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
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Santa Clarita Municipal Code 6.02:810 - DRAFT
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.
GD. Preserving the Record. The proceedings shall be tape-recorded electronically. Any party
who desires that the proceedings be recorded stenographically shall make arrangements with the DepaAment
of -Community Development Department at least five (5) calendar days before the hearing. Any transcripts
prepared by a reporter at the party's request shall be at his or her expense, and the original shall be filed with c
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the Pepc Community Development.- Department. If the party makes a request for a transcript of m
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the tapedelectronic recording at the time of or after the hearing, he or she shall make arrangements to copy
the official tape-recording with the 1L
tape- g sepaR+xe�-e€-Community Development Department. All expenses
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incurred for the transcript will be borne by the requesting party.
DE. Subpoenas._ The panel may issue subpoenas requiring the attendance of witnesses and/or the M
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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
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designated substitute and attested by the secretary. Failure to comply with such subpoena shall result in w
contempt proceedings under Government Code Sections 37106 through 37109. (QFd nn 38, 1 , / W90; OFd CO.
6.02.118170 Decision of the Panel.
A. Timine. After reviewing the record and anv additional evidence reuuested of the Darties which has
been provided, the panel shall make its determination in accordance with the standards specified in this
chapter. The panel shall render its findings and decisions on the .._epesea rent adjustment no later than
the end of the next panel meeting following the close of the panel's discussion on the matter. before them.
A -.B. Notification of Determination. 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 {e^iaent ,._.e.'ae..«.. _e .esting the
he g to .. eh ,.«tiff . •a is e « ofthe findings d ,leeisio.. n
••_"•"'b. :•• •,».. ... .c59aen co as :2o.j rcglwcSc$ocP�j�rcrtozmr:iressairovwrsrnrzrnT
..el shall he final and binding on all pailie.. The panes all.... anee or , isallowa e F any fent
the purpose of this ehapter. After feviewing the fecord and— �e Fequested of the
pantie ..hieh has been p .idea the el shell de«e..mitie «he fthe i f
�_____: .- __-_ ___�_ -____ �". .___, .._ tee"__ shall ____.._...._ ..._ ......,...... .,...._ ._...adjustment, ..
any, in aeeeFdaiiee with the standa do.s ..ei ed h' ehapte.. (Ord 90 38, 1112W90, na 92 11,
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6.02.01OSanta Clarita Municipal Code 6.02 -DRAFT
maim. n.,, ^c , r , 2 M^� affected residents residing in the park for which the space rent adjustment
appeal was brought.
6.02.120 Final Decision. Any decision of Reasonableness to BP Applied to Rent
Adjustments.
the panel
must be supported by a preponderance of the evidence The panel's deteffflinatien shall be made with
A. Adjustmews Deemed Reasonable. The fellewing at�ustoients in rent shall be deemed Feaseflable!
allowance or disallowance 1. An adjustmeat of gess spaeO re -t liowneequal to a minimum o
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Attachment: SCMC 6.02 Proposed Changes in Red -Line (1108 : SCMC 6.02 Update - First Reading)
B.b
< 02nlnSanta Clarita Municipal Code 6.02 -DRAFT
Gas valve and fife hydfm# 0 Years
Gel ne! 3 Years
14ARter teeter 3 years
Teases 30 years
biot &AUFOS 3 years
i,+neleam #Icer 3 years
oven 6years
PaEie € tmitufe 3 years
Peel heater 3 Years
Pump
Re€rigerater 6 yeeFs
Repaint olubheuse
Reglaster peel ;;`ears
Roree€teg 4S years
Sesa-ity-t'eaca ;years
Sewer line 6ORStFUS690
I S Years
Slarq-seal 3 years
Selar system 39�'ears
StReHepelr a 0 Years
Street seal ;'ears
3yeafs
TRO trimming 3 rears
3t+1e1e 3 years
Wall pev+ng 1-0 years
Alallpapefing
Water heater 10 years
Waterseiener 3 years
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Santa Clarita Municipal Code 6.024W - DRAFT
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Santa Clarita Municipal Code 6.0219 - DRAFT
that the teFM5 ef the fefiflareing were reasenable and eensistepit with prudent business pfaeiiees under
e4mumstanees and the terms efeemmemially available fifianeing.
12 All interest expenses ..ted as e deduetien e F de_el and state t..-.:.... authority
13. Operatingexpenses shall ..et:.elude the felle..:.
expenses;a. Aveidab'e and unReeessary
h Mortgage pal and
..
B:L. d Any peR..N fees, interest assessed A —AN..dad fA NI O f thi
ether -Panel reconsideration. A party not satisfied with a decision of the Panel may seek my Judicial remedy
provided bylaw;,
e. Regis4reAien fees required under !h I's agmement;
f Legal fees, exeept allowable legal expeases;
g. ne...ee:et•,. Of the.. ..ew.,.
h46 n..., e.,..e....e C.._..,h:..h r he...,..1. ........... has been fe:...h.wsed.
j. Any fete ehe_..es Ofieuffed h., the ...._h ,. _ for filure . pay fegistratian fees . the e
allthOFized by this chapter-,
lE. Attorney's feeg And IeF Posts insuffed in judgments 13FIBUght agaiRS! a Park ewaeF, arising ffefR a
exteeds the fiermal ifidustr�, or other eempasable standard, the park evmeF shall bear the burden of preving
the reasonableness of the empense. To the wctent the panel finds any sueb expense panel te be Hfireaseflable;
the panel shall adjust the expense te . the .........el :..d...a.... OF other ee.....e_eble standard i!1_d nn 383
1 lQ7/90. Ord. 06 1 c 1 228106t
6.02.195 Heeriegs.
.
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6.02.01GSantaClaritaMunidpal Code 6.02 -DRAFT
6.82160180 Miscellaneous Provisions.
A. Waiver Ability._ Rental agreements between a park owner and resident which are exempted from
local regulation by California Civil Code Section 798.17 or other State statutes are permitted. The rental
rates and other terms of such agreements shall prevail over regulations and decisions made pursuant to this
chapter. For all such rental agreements which expire, the last monthly rental rate charged under the rental
agreement shall be the space rent ceiling used to calculate the annual adjustment for the space. Any other
provisions or agreement, whether oral or written, in or pertaining to a rental agreement whereby any
provision of the ordinance or decision 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.
B. Severability. if any provision or clause of this chapter or the application thereof to any person or
circumstance is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction,
such invalidity shall not affect other chapter provisions or clauses or applications thereof which can be
implemented without the invalid provision or clause or application, and to this end, the provision and
clauses of this chapter are declared to be severable.
C. 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 stilipeenas shall be signed by the NU)'OF eF his or he
designated substitute and attested by the City-Glefle Failure to comply with such subpoena shall result in
contempt proceedings under Government Code Sections 37106 through 37109. "d. 90 38 1 "^"n"; ^-a
on n <Nwnn. n..a 96 8 1123,196; OFEI. 06 1 c 1 228106)
—SHIN aW2 W25
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Santa Clarita Municipal Code 6.02 - DRAFT
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
6.02.070
Space Rent Limit
6.02.080
Annual Space Rent Adjustment Notice
6.02.090
Allowable Methods for Annual Space Rent Adjustments
6.02.110
Amortization Schedule
6.02.120
Annual Space Rent Adjustment Appeal Petitions
6.02.130
Change in Ownership Space Rent Adjustment Procedures
6.02.150
Vacant Spaces
6.02.160
Appeal Hearings
6.02.170
Decision of the Panel
6.02.180
Miscellaneous Provisions
6.02.010 Purpose.
A. A manufactured home park resident's tenancy in a manufactured home park is substantively
different than traditional apartment tenancy in that the park resident owns their manufactured home, while
still being subject to space rents. Manufactured homes are costly and difficult to move, and there may not
be available spaces in other nearby manufactured home parks to relocate to, resulting in the park resident
having fewer options to move out of the park to find lower rents.
B. Park owners, having made a business investment in the manufactured home park, have the right to
receive a fair return on their property. Nonetheless, as a result of the unique tenancy circumstance that park
residents are in, park owners should be subject to reasonable procedures in the imposition of space rents.
C. For these reasons, among others, the Council finds and declares it necessary to provide a process
whereby manufactured home residents are not subject to excessive rent increases, while at the same time
recognizing the rights of park owners to receive a fair return on their property and rental income sufficient to
Packet Pg. 79
Santa Clarita Municipal Code 6.02 - DRAFT
cover reasonable increases in the cost of repairs, maintenance, insurance, employee services, additional
amenities, and other costs of operation.
6.02.020 Definitions.
"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 capital improvement must have a life expectancy of three (3) years or more and must be
treated as a capital improvement 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 existing
equipment, machinery, streets, sidewalks, utility lines, landscaping, structures, or recreational amenities,
which materially benefits and adds value to the park.
1. The capital replacement must have a life expectancy of three (3) years or more, and must be
treated as capital replacement 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 replacement.
3. Insured repairs are not capital replacement.
"Chapter" means all sections of Chapter 6.02 of the City of Santa Clarita Municipal Code.
"CPP" means the Consumer Price Index (all items) prepared by the Bureau of Labor Statistics for the
Los Angeles -Riverside -Orange County area relating to all urban consumers. 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.
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Santa Clarita Municipal Code 6.02 - DRAFT
"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" and shall mean 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 tern "manufactured home"
does not include either a recreational vehicle or a commercial coach, as such terms are defined in the Health
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and Safety Code.
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"Manufactured home park" and "park" shall be synonymous with the term "mobilehome park" and
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means an area of land where two (2) or more manufactured home spaces are rented or leased out for owner-
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occupied manufactured homes used as residences. The term "manufactured home park" does not include
developments which sell lots for manufactured homes or which provide condominium ownership of such
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lots, even if one or more homes in the development are rented or leased out.
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"Manufactured home park owner" or "park owner" means the owner, lessor, operator, manager, or
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designated agent thereof of a manufactured home park in the City of Santa Clarita.
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"Manufactured home resident" or "resident' means any person entitled to occupy a manufactured
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home as the owner thereof or pursuant to a rental or lease agreement with the owner of a manufactured
home.
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"Panel" shall mean the manufactured home rental adjustment panel, as established by this chapter.
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"Panel -Approved Summary" shall mean a document approved by the panel, providing manufactured
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home park owners and residents with a summary of requirements related to the contents of a rent adjustment
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notice and the right of the resident to request a hearing before the panel, pursuant to section 6.02.120.
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"Rental agreement" means an agreement between the manufactured home park owner and a resident
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establishing the terms and conditions of a month-to-month tenancy.
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"Space rent" means the consideration, including any bonus, benefits, or gratuities, demanded or
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received for or in connection with the use or occupancy of a manufactured home within a manufactured
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home park. The use and occupancy of a rental unit shall include the exercise of all rights and privileges and
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use of all facilities, services, and amenities accruing to the residents thereof for which a separate fee
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authorized by the Mobilehome Residency Law (California Civil Code Section 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
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Santa Clarita Municipal Code 6.02 - DRAFT
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 residence.
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.
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,
two members elected from and by the residents, and one member chosen from a list of at least
two potential members drawn up by the City Manager. The fifth member shall not be a
resident of a manufactured home park, have an ownership interest in a manufactured home
park, or receive financial benefit from investment in a manufactured home park. Such member
shall not have a personal or professional involvement in matters relating to manufactured home
parks. The fifth member shall be chosen by majority vote of the four elected members. In the
case of a tie, the City Manager shall cast the deciding vote.
C. In no case shall both resident -representatives or both owner -representatives be from
the same manufactured home park. If a panel election process results in the highest two vote -
getters for the resident -representative position, or the highest two vote -getters for the owner -
representative position being from the same park, the individual with the higher number of
votes from that park will be seated. The second seat will be awarded to the next highest vote -
getter from another park. Any dispute or contest regarding an election, the election rules,
regulations, procedures, or election results shall be determined by the City Manager, and the
City Manager's decision shall be final.
D. Tenn of Elected Representatives. Each member of the panel shall serve for a term
of three (3) years. Each member shall hold office until a new member has been duly sworn -in.
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Santa Clarita Municipal Code 6.02 - DRAFT
In the case of a resignation from the panel during the 3 -year term, the next highest vote -getter
from the most recent election will be asked to fill the vacant seat, as long it does not result in
both resident -representatives or both owner -representatives being from the same park. If the
appointment of the next highest vote -getter will result in both resident -representatives or both
owner -representatives being from the same park, the next highest vote -getter from another
park will be appointed. In the case of a panel member resignation or inability to serve on the
panel during the three-year term, and when there are no resident -representatives or owner -
representatives willing or available to fill the seat, an election will be held to fill the seat
according to procedures and a schedule set by the City Manager.
E. Term of the Appointed Member. The appointed member shall serve for a three-year
term. In the case of a resignation or inability to serve on the panel during the three-year term,
the City Manager shall provide the four elected members of the panel with a list of at least two
(2) potential candidates, and the panel shall conduct a majority voting process as outlined in
this section..
F. Absences. Any member who is absent, without sufficient cause, from three (3)
consecutive meetings of the panel shall be deemed to have vacated the office.
G. Meetings. All meetings of the panel shall be conducted in accordance with the
provisions of the Ralph M. Brown Act.
H. 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 put in 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.
I. 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.
J. Quorum. A quorum shall be constituted in only one of two ways:
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Santa Clarita Municipal Code 6.02 - DRAFT
1. Three (3) members, with at least one (1) member elected by the residents, at least one (1)
member elected by the park owners, and the fifth member chosen by the four elected members.
2. Four (4) members, with at least two (2) members elected by the residents, and at least two (2)
members elected by the park owners.
K. Adoption of Findings. A majority vote of all members, i.e., three (3) votes, is
required for the 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, ai
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or to take action on any other matter. m
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L. Duties. The panel shall undertake and have the following duties, responsibilities,
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and functions, together with all powers reasonably incidental thereto: ii
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. a
2. To hear appeals brought before them and make determinations on space rent adjustments as o
so
provided for in this chapter. v
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3. To make such studies, surveys, and investigations, conduct such hearings, and obtain such w
information as is necessary to carry -out its powers and duties. m
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4. To adopt, amend, and rescind such administrative rules as may be necessary to carry -out the
purposes and policies of this chapter and to enable the panel to carry -out its powers and duties w
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hereunder. v U
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5. To undertake such other related duties as may be assigned by the City Council. H
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6.02.050 Registration. V
A. Registration. Park owners must register all manufactured home parks and o
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manufactured home rental spaces within such parks with the Department of Community v
Development. The registration shall include all of the following: y
1. All information requested on forms sent by the City to the park owner for the purpose of c
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registration. t
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2. A rent roll for the month immediately preceding the registration, reflecting the space number, z
resident name, space rents and a listing of all other charges paid by the park resident including
a. Utilities not included in space rent.
b. Any amortized capital improvement or replacement charges
c. Any other monthly fees as may be required of the resident.
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Santa Clarita Municipal Code 6.02 - DRAFT
B. Re -registration. The Department of Community Development is hereby
empowered to require such re -registration as it deems necessary.
C. Applicability. The registration requirements provided for in this section or which
may be established by the Department of Community Development shall apply to all
manufactured home parks, including those exempt from the space rent ceiling limitations and
procedures in the chapter by reason of the existence of a valid space rent agreement.
6.02.060 Registration Fee.
A. Establishment of Fee. Park owners shall pay to the City of Santa Clarita a registration fee for each
manufactured home rental space regulated by this chapter within the park as may be established by
resolution of the City Council. Half of the fee paid for each space may be charged to the park resident
occupying that space by a separately specified one-time charge on a space rent bill within sixty (60) calendar
days after the fees have been paid to the City. The registration fee shall not apply to parks and spaces
exempt from the payment of fees by state law (inclusive of Civil Code Section 798.17).
B. Penalty. If a park owner does not pay the fee provided for in subsection A of this section within
the time period established therein, a late charge shall be assessed in an amount as established by resolution
of the City Council.
C. Unpaid Fees. No panel appeal hearing shall be scheduled or take place regarding a park for which
there is an unpaid registration bill. If an unpaid registration bill is paid, including any penalties accrued, a
hearing may then be scheduled. Failure to pay a City registration fee is not grounds for a space rent
adjustment appeal.
D. Purpose of Fee. The registration fee provided for by this section is intended to defray any
reasonable and necessary costs associated with the administration of the regulations contained in this
chapter.
E. Accounting of Funds. The Director of Community Development is directed to maintain an
accurate accounting of all direct and indirect costs of administering the regulations contained in this chapter.
The Director of Community Development shall submit to the City Manager a report of such costs at least
annually.
6.02.070 Space Rent Limit.
A. Effective Date. 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.
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Santa Clarita Municipal Code 6.02 - DRAFT
B. Exemption. If a park space is exempt from the application of the space rent limitation or
registration fee portion of this chapter by reason of the existence of a space rent agreement and this
agreement expires, the space rent limit for that space shall be the space rent in effect on the date
immediately preceding the date on which the agreement expires.
6.02.080 Annual Space Rent Adjustment Notice.
A. Notice. Prior to the annual space rent adjustment, the park owner shall provide the resident with a
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notice of proposed rent adjustment at least ninety (90) calendar days prior to the effective date of the
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adjustment, and issue the notice no later than October 1, to be effective either on January I of the following
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year or on the resident's anniversary date following January 1. All space rent adjustment notices shall
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contain all of the following information:
1. A listing of all affected spaces by space number only. The name of the resident and amount of
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space rent shall not be included in the listing. Affected spaces include all those spaces being notified of
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a proposed space rent adjustment; and
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2. A copy of the current Panel -Approved Summary of this chapter. The Summary will be
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provided annually to the park owner by the City for inclusion in the annual space rent adjustment notice;
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and
B. Standard Space Rent Adjustments. For a space rent adjustment which is based on 6,02.090(C)—
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Standard Space Rent Adjustments:
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I. A statement that the park owner considers that portion of the space rent adjustment to be
consistent with the limitations set forth in section 6.02.090(C) of this chapter; and
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2. The amount of that resident's space rent adjustment both in dollars and as a percentage of
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existing rent; and
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3. The amount of the resident's space rent adjustment attributable to an increase in government
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required services in dollars; and
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4. The amount of the resident's space rent adjustment attributable to an increase in utility costs in
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dollars.
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C. Non -Standard Space Rent Adjustments. For a space rent adjustment which is based on
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6.02.090(D)—Non-Standard Space Rent Adjustment:
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1. A statement that the park owner considers that portion of the space rent adjustment to be
consistent with the limitations set forth in Section 6.02.090(D),
2. The amount of that resident's space rent adjustment both in dollars and as a percentage of
existing rent; and
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3. Information supporting the level of non-standard space rent adjustment proposed. Such
information must include all of the following:
a. Specific reference to which allowable costs are being included in the proposed non-standard
rent adjustment by citation from section 6.02.090(D); and
b. The mathematical calculations or analysis relied upon by the park owner to determine the
amount of the proposed non-standard space rent adjustment, including the amortization time period
assigned to each capital improvement or capital replacement as provided for in section 6.02.110 (A);
and
c. A statement informing the resident that the supporting documentation for the non-standard
space rent adjustment will be available to park residents at the park management office during all
normally observed office hours beginning the same day the notice is provided.
D. Supporting Documentation. All non-standard space rent adjustments shall be supported by source
documentation related to the amount of the space rent adjustment and the mathematical calculations or
analysis contained in the notice. The source documentation for a non-standard space rent adjustment shall
be kept in the park management office for at least forty-five (45) days, beginning on the date of the notice,
and will be available for review by affected park residents during all normally observed office hours. In
cases where a space rent appeal petition has been submitted which meets the criteria set forth at section
6.02.120, the supporting documentation shall remain available until a final determination is made on the
appeal.
During the periods described above, copies of all supporting documents will be provided to affected
residents upon request. A resident may request the documentation in one or both of the following formats:
a. Physical copies shall be provided at a fee set by the park owner, not to exceed $.25 per page.
b. Electronic copies shall be provided free of charge, in a PDF or similar format, as an email
attachment sent to the requesting resident's email address.
E. 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 requested the
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Santa Clarita Municipal Code 6.02 - DRAFT
resident to sign the joint document acknowledging receipt, and the date the declaration was
executed.
6.02.090 Allowable Methods for Annual Space Rent Adjustments.
A. Frequency. The annual space rent adjustment may occur only once every calendar year.
B. Annual Space Rent Adjustment Methods. Any annual space rent adjustment shall
follow only one of the two methods outlined below: either an annual space rent adjustment
based on section 6.02.090 (C) — Standard Space Rent Adjustments, or an annual space rent
adjustment based on section 6.02.090 (D) —Non -Standard Space Rent Adjustments.
C. Standard Space Rent Adjustments. The following adjustments in rent shall be
permitted by right and may not be appealed except in the situations specified in section
6.02.120(A). This adjustment shall be calculated using the Consumer Price Index (CPI)
reported each August for the previous twelve (12) month period of August 1 through July 31
reported by the Bureau of Labor Statistics for the Los Angeles -Riverside -Orange County area.
1. An adjustment of space rent less than or equal to a minimum of 3% and a maximum of the
lesser of either 6%, or the annual adjustment in the CPI reported each August for the previous twelve
(12) month period of August 1 through July 31 reported by the Bureau of Labor Statistics for the Los
Angeles -Riverside -Orange County areas. In such cases where the CPI is at or below 0%, a reduction in
space rent is not required; and
2. An adjustment based on the actual increase in the cost of government -required services; and
3. An adjustment based on the actual increase in utility costs where such utilities are included in
the space rent.
The Director of Community Development or designee, annually, will receive the CPI updated result and
cause notice of such to be mailed to each park owner and park resident in the City. Such standard space rent
adjustments will be calculated on the space rent only, and will not be calculated on monthly costs related to
amortized capital improvements or replacements, utilities, or other costs not part of the space rent.
D. Non -Standard Space Rent Adjustments. An adjustment to pay for the actual costs
of capital improvement or capital replacement as defined in the definitions section of this
chapter, which were incurred within the 24 months prior to the rent adjustment notice, and are
not otherwise disallowed by State law. Costs must be amortized as permitted in section
6.02.110.
E. Appeal Considerations — Standard Space Rent Adjustments. In the case of a
standard space rent adjustment, an appeal may only be brought before the panel in the
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Santa Clarita Municipal Code 6.02 - DRAFT
situations outlined in section 6.02.120(A). In making their determination, the panel may
consider all relevant information and may request any such information or documentation as
they deem necessary, including but not limited to:
1. Verbal testimony
2. Copies of bills, invoices, or statements
3. Copies of receipts or checks
4. Other documents supporting the level of adjustment proposed
F. Appeal Considerations — Non -Standard Space Rent Adjustments. In making their
determination on the appeal of a non-standard space rent adjustment, the panel may consider
all relevant information and may request any such information or documentation as they deem
necessary, including but not limited to:
I. Verbal testimony
2. Copies of documents made available to the residents as part of the noticing requirement,
outlined in section 6.02.080(D)
3. Other documents supporting the level of increase proposed
6.02.110 Amortization Schedule.
A. For the purpose of determining any rent adjustment permitted under the provisions
of this chapter, the cost of capital improvements or capital replacements shall be amortized
according to the following schedule, for those items listed. For items meeting the definition of
capital improvement or capital replacement herein, but not listed on the amortization schedule,
the amortization period shall be consistent with that prescribed by federal law for depreciation.
Type of Improvement or Replacement
Amortization period
Backflow device
10 years
Carpeting
5 years
Copier
6 years
Copper pipes
10 years
Drapes
5 years
Gas barbecue
3 years
Gas line
15 years
Gas valve and fire hydrant
10 years
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Santa Clarita Municipal Code 6.02 - DRAFT
Heater motor
5 years
Houses
30 years
Light fixtures
5 years
Linoleum floor
5 years
Oven
6 years
Patio furniture
5 years
Pool heater
5 years
Pump
5 years
Refrigerator
6 years
Roofmg
18 years
Security fence
5 years
Sewer line construction
15 years
Solar system
10 years
Telephone system
6 years
Water heater
10 years
Water softener
5 years
B. Space Rent Invoice Documentation. Any amortized capital improvement or capital
replacement cost imposed as part of a non-standard space rent adjustment must be clearly
marked on the space rent invoice, or on another document included with the space rent invoice,
with name of the capital improvement or capital replacement, the monthly amount, and the
date the cost will expire. If a cost is not removed from the space rent invoice in a timely
manner, residents may request an appeal before the Panel.
C. Amortized Costs Not Removed. A request for a hearing based on an amortized cost
not removed in a timely manner may be part of the appeal petition of an annual space rent
adjustment, or as a separate item. If an appeal petition based on an amortized cost not
removed in a timely manner is submitted outside the annual space rent adjustment appeal
process, it must meet the requirements of section 6.02.120 (B) through (F). If the panel
determines that an amortized cost was not removed in a timely manner, resulting in
overpayment by the park residents, the panel may require the amortized cost to be removed
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and may require the park owner to reimburse affected residents the amount of overpayment,
subject to any limitations imposed by law at the time of the panel's decision.
6.02.120 Annual Space Rent Adjustment Appeal Petitions.
A. Time Limits. A petition requesting an appeal hearing for an annual space rent
adjustment as allowed for in this chapter must be filed with the Department of Community
Development within forty-five (45) calendar days of service of the notice of proposed space rent a
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adjustment, or forty-five (45) calendar days from the date of the space rent increase if no notice m
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is received, whichever applies. Appeals may not be heard for a standard space rent adjustment
based on section 6.02.090(C), except for one or more of the following reasons: a
1. The CPI percentage adjustment proposed in the notice is above the actual CPI percentage
provided in the City's most recent notice to the park residents and park owners.
2. The increased costs of government required services or utility costs in the proposed space rent o
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adjustment are greater than the actual costs incurred by the park owner. v
3. A notice that is not substantially in conformance with the requirements at section 602.080. v
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B. Appeal Request Form. Appeal petitions must be submitted on an Appeal Request o
Form approved by the Director of Community Development and obtained from Department of
Community Development staff. All pages of the form must be complete and the petition 9d
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signature page must contain signatures from residents of at least fifty percent (50%) of the u
spaces regulated by this chapter and affected by the proposed space rent adjustment, plus one
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C. Park Owner Notification. The residents submitting the appeal must provide a full cti
copy of the appeal petition to the park owners within ten (10) calendar days of submission to the o
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Department of Community Development.
D. Determination by Director of Community Development. It shall be the sole
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discretion of the Director of Community Development (Director) to determine if the basis upon c
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which the petition for appeal is filed meets the criteria set forth in this chapter. No hearing will t
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be scheduled unless such a determination is made. Only if the Director determines that the >4
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appeal meets the criteria of this chapter will a hearing be scheduled.
1. If the Director determines that an appeal petition does not meet the criteria set forth in this
chapter, the Director shall cause the park owner or other person designated on the park's registration and
the affected residents to be notified. Such notice shall be mailed, first-class postage prepaid, within
fifteen (15) calendar days of the submission of the appeal petition.
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2. If the Director determines that an appeal petition meets the criteria set forth in this chapter, he
shall cause the park owner or other person designated on the park's registration and the affected
residents to be notified of the time, date, and place of the hearing. Such notice shall be mailed, first-
class postage prepaid, at least fifteen (15) calendar days prior to the scheduled hearing date.
6.02.130 Change in Ownership Space Rent Adjustment Procedures.
A. Manufactured Home Sale. Notwithstanding any other provision of this chapter, if a manufactured rn
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home is voluntarily vacated by all tenants as a result of a sale of the manufactured home to a new owner,
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and the manufactured home is not removed from the site, then the rent may be increased by an amount not to
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exceed ten percent (10%). The rent may only be increased pursuant to this section once in any twelve (12) a
consecutive -month period, regardless of additional changes in ownership. A change in ownership increase
does not preclude an annual space rent adjustment in the same calendar year, so long as all noticing
requirements as set forth in section 6.02.080(C) are observed.
B. Notice to Prospective Manufactured Home Buyer. As required in California Civil Code section
798.74.5, within two (2) business days of receiving a request from a prospective homeowner for an
application for residency for a specific space within a manufactured home park, if the management has been
advised that the manufactured home occupying that space is for sale, the management shall give the
prospective homeowner a separate document entitled "INFORMATION FOR PROSPECTIVE
HOMEOWNERS," which will include the space rent for the prospective manufactured home buyer.
C. Notice to Manufactured Home Seller. The park owner will also provide a copy of
"INFORMATION FOR PROSPECTIVE HOMEOWNERS," to the resident selling their manufactured
home. It shall be the responsibility of the current manufactured home owner selling the manufactured home
to verify that the proposed space rent for the prospective buyer of their manufactured home does not exceed
the increase allowed in this section.
D. Remedy. If a manufactured home park resident seller or prospective manufactured home park
buyer believes that the park owner is exceeding the permitted ten percent (10%) increase on space rent for a
change in ownership, the party may seek any judicial remedy provided by law to enforce this section.
6.02.150 Vacant Spaces.
If a space becomes vacant by virtue of there being no manufactured home situated on the space or the
manufactured home on the space is owned by the park owner, and the space has not been rented to a resident
for at least thirty (30) calendar days, the space rent may be increased to a rate as determined by the park
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owner at the time the space is initially rented to a new manufactured home owner. Once the space is rented
to a new manufactured home owner, all other controls in this chapter shall become effective.
6.02.160 Appeal Hearings.
A. Conduct of Hearing. The park owner and 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 of
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persons as may be designated by said parties. The hearing may be continued for a reasonable period of time m
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as determined by the panel upon the consent of the parties or upon a finding of good cause for such
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continuance made by the panel. All hearings and deliberations of the panel shall be open to the public. a
B. Appeal Justifications. Rent adjustment hearings may only be held for the causes specified in m
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6.02.080 —Annual Space Rent Adjustment Procedures, and 6.02.110 —Amortization Schedule. V
C. Rules of Evidence. The hearing need not be conducted according to the technical rules relating to 0
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evidence and witnesses, as applicable in courts of law. To be admissible, evidence shall be of the type on c>
which responsible persons are accustomed to rely in the conduct of serious affairs. A full and fair hearing y
shall be accorded to the parties to the hearing, co
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D. Preserving the Record. The proceedings shall be recorded electronically. Any party who desires
that the proceedings be recorded stenographically shall make arrangements with the Department of 2
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Community Development at least five (5) calendar days before the hearing. Any transcripts prepared by a u
reporter at the party's request shall be at his or her expense, and the original shall be filed with the H
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Department of Community Development. If the party makes a request for a transcript of the electronic c
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recording at the time of or after the hearing, he or she shall make arrangements to copy the official recording v
with the Department of Community Development. All expenses incurred for the transcript will be borne by o
the requesting party. v
E. Subpoenas. The panel may issue subpoenas requiring the attendance of witnesses and/or the N
production of books or other documents necessary for evidence of testimony in any action or proceedings c
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before the panel upon request by the panel. Said subpoenas shall be signed by the chairperson or his or her t
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designated substitute and attested by the secretary. Failure to comply with such subpoena shall result in
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contempt proceedings under Government Code Sections 37106 through 37109.
6.02.170 Decision of the Panel.
A. Timing. After reviewing the record and any additional evidence requested of the
parties which has been provided, the panel shall make its determination in accordance with the
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standards specified in this chapter. The panel shall render its findings and decisions no later
than the end of the next panel meeting following the close of the panel's discussion on the
matter before them.
B. Notification of Determination. 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, first class postage prepaid, to the affected
residents residing in the park for which the space rent adjustment appeal was brought.
C. Final Decision. Any decision of the panel must be supported by a preponderance of
the evidence. The panel's allowance or disallowance of any rent adjustment or portion thereof
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may be reasonably conditioned in any manner necessary to carry out the purpose of this
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chapter. The decision of the panel shall be final and binding on all parties and shall not be
subject to appeal or any additional panel reconsideration. A party not satisfied with a decision
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of the panel may seek any judicial remedy provided by law.
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6.02.180 Miscellaneous Provisions.
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A. Waiver Ability. Rental agreements between a park owner and resident which are exempted from
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local regulation by California Civil Code Section 798.17 or other state statutes are permitted. The rental
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rates and other terms of such agreements shall prevail over regulations and decisions made pursuant to this
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chapter. For all such rental agreements which expire, the last monthly rental rate charged under the rental
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agreement shall be the space rent ceiling used to calculate the annual adjustment for the space. Any other
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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
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be deemed to be against public policy and shall be void.
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B. Severability. If any provision or clause of this chapter or the application thereof to any person or
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circumstance is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction,
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such invalidity shall not affect other chapter provisions or clauses or applications thereof which can be
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implemented without the invalid provision or clause or application, and to this end, the provision and
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clauses of this chapter are declared to be severable.
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C. Subpoenas. The panel may issue subpoenas requiring the attendance of witnesses and/or the
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production of books or other documents necessary for evidence of testimony in any action or proceedings
before the panel upon request by the panel. Failure to comply with such subpoena shall result in contempt
proceedings under Government Code Sections 37106 through 37109.
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Summary of Proposed Changes
SANTA CLARITA MUNICIPAL CODE 6.02 -
MANUFACTURED HOME PARK RENT ADJUSTMENT PROCEDURES
Annual Space Rent Adjustment
Retains the 3% minimum for Standard Adjustments
Reduces Non -Standard Adjustments to only amortized capital improvements/capital
replacement costs, and removes (among others):
• Comparable park space rent
■ Fair return on investment
■ Decrease in net operating income
• Debt service costs
• Rental history of the park
• Limits Non -Standard Adjustments to items completed within the past 24 months
• Allows only a Standard OR Non -Standard Adjustment each year
• Defines capital replacement per IRS regulations
• Allows amortization of capital improvements or capital replacements which are not on the
ordinance schedule, as long as they meet IRS regulation
• Requires amortized items to be listed with space rent invoice
• Changes allowable annual space rent adjustment from once every 365 days to once per
calendar year
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• Requires City to send a notice of the CPI -U to each park resident individually
• Requires the park owner to send Panel -Approved Summary to each resident with the
space rent adjustment notice
• Requires the park owner to provide analysis and calculations for a Non -Standard
Adjustment of space rent as part of the notice
• Requires park owner to keep supporting documentation for Non -Standard Adjustment of
space rent in the park office
• Clarifies what must be in the space rent adjustment notice
• Specifies that failure to provide notice is grounds for an appeal
Manufactured Home Park Rental Adjustment Panel
Allows a process for alternates to be seated in case of a Panel member resignation
Redefines the qualifications for the fifth Panel member, and creates a majority vote
process to appoint
Allows quorum to be constituted in two ways
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Requires the two resident representatives or two owner representatives to be from the
different parks to prevent Panel deadlock due to recusal
Broadens the Panel's discretion in requesting supporting documentation during a space
rent appeal hearing
Appeal Hearings
Requires park owner to make supporting documentation for Non -Standard Adjustments
available to residents throughout the appeal process, and provide them to residents upon
request:
• No charge for emailed documents
■ Minimal fee for hard copies
• Specifies what can be appealed:
■ Non -Standard Adjustment space rent increases
• Previously amortized items not removed in a timely manner
■ Standard Adjustments with inaccurate information
• Adjustment without a notice substantially in compliance with the ordinance
• Creates appeal forms for use by park residents
Other Space Rent Increases
Maintains the change -in -ownership increase at 10% but removes the option for appeal by
the park owner for a higher adjustment
Requires the park owner to notify a potential buyer of the amount of the new space rent
prior to purchase
Allows a one-time market -rate adjustment of space rent when a unit is owned by the park
or a space is vacant for at least 30 days
Sections Removed
Net Operating Income (NOI) - Allows space rent adjustment based on park owners
decrease in net operating income
• Requires complex fiscal analysis to verify the decrease in NOI which is paid for by
the City. Most recent analysis of this type required $10,000 consultant subcontract
• Used successfully only once
Reduction in Services - Allows a reduction in a proposed space rent adjustment, or
decrease in existing space rent if park residents can show there has been a reduction in
services resulting in a cost savings to the park owner
■ State manufactured home law provides protections in this area
• Residents do not have access to park financial information to support a claim of
cost savings to the park owner
• Requires complex fiscal analysis to verify a cost saving to the owner, which is paid
for by the City
■ Never used successfully
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