Chapter 3
MOBILE HOME PARK RENT STABILIZATION*
Sections:
Article 1. Application
11-3.110 Excluded Parks: Prohibition.
11-3.120 Notice of Rent Ordinance to New and Prospective Home Owners.
11-3.130 Rights of Purchasers of Existing Mobile Homes in Existing Mobile home Parks.
Article 2. Base Rental and Yearly Rental Adjustment
11-3.200 Definitions and Methods.
11-3.230 Maximum Rent Increase.
11-3.240 Consumer Price Index.
11-3.250 CPI Indexing Consistency.
Article 3. Surcharges
11-3.300 Allowable Surcharges.
11-3.310 Surcharge Listed Separately.
11-3.328 Purpose and limitation on use.
11-3.340 Supplemental Administrative Fee.
Article 4. Fair Rate of Return
11-3.400 Fair Rate of Return Defined.
11-3.420 Fair Rate of Return Application.
11-3.430 Cost of Expert Analysis.
11-3.440 Appeal for Fair Rate of Return Findings.
11-3.450 Recovering of Expenses in Fair Rate of Return Administrative Proceedings.
Article 5. Procedures
11-3.500 Homeowner Representatives.
11-3.510 Park Owner Submittal.
11-3.515 Disputes Subject to Arbitration.
11-3.520 Selection of Arbitrator.
11-3.530 Request for Findings.
11-3.550 Requirement of Long-Term Rental Agreements.
Article 6. Temporary Rental of Mobile Homes in Mobile Home Parks
11-3.600 Findings and Purpose.
11-3.610 Temporary Rental of Mobile Home.
Article 7. Maximum Rent After Sale or Transfer of Mobile Home
11-3.700 Vacancy Control on Sale or Transfer of Mobile Home.
Article 8. Excessive Rents and Payments
11-3.800 Excessive rents or demands therefor.
11-3.810 Excessive rents—Civil penalties and attorney’s fees recovery.
* Sections 11-3.100 through 11-3.700, codified from Ordinance No. 797-89, amended in their entirety by Ordinance No. 826-89 C-M, effective December 22, 1989, and amended in their entirety by Ordinance No. 1018-96 C-M, effective November 15, 1996.
Article 1. Application
11-3.100 Recitals.
The City finds that:
(a) There is presently, within the City, and surrounding areas, a shortage of spaces for the location of Mobile homes in a Mobile home park, resulting in a low vacancy rate and rapidly rising space rents.
(b) Mobile home owners have invested substantial sums in their Mobile homes and appurtenances.
(c) Alternative sites for the relocation of Mobile homes are difficult to find, and the movement and installation of Mobile homes is expensive, with possibilities of damage to the units.
(d) When all rental spaces in a Mobile home park are occupied, the impracticality of moving Mobile homes eliminates open market space rental competition and provides the Park Owner with monopolistic control over space rents.
(e) It is necessary and reasonable to regulate rents so as to maintain a supply of moderately priced un-subsidized housing for the citizens of the City of Watsonville and to safeguard Homeowner from excessive rent increases, while at the same time provide Mobile home Park Owners with just and reasonable returns for their rental units spaces.
(f) It is in the best interest of the citizens of the city of Watsonville to have a ready supply of moderately priced homes to purchase; and, the opportunity to purchase or sell a Mobile home be made available to as many individuals, within the community, as possible.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.110 Excluded Parks: Prohibition.
This chapter shall not apply to Mobile home parks in which there are no space rents (i.e., spaces are owned by the Mobile home owners); or to parks with ten (10) or fewer spaces for rent. In all other Mobile home parks the Park Owner and agents are prohibited from collecting, or attempting to collect, rents in excess of amounts prescribed by this Chapter.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.120 Notice of Rent Ordinance to New and Prospective Home Owners.
At least three business days before executing an agreement to rent or lease to a new Home owner, the Park Owner shall supply the new or prospective Home owner with a copy of the Ordinance codified in this chapter.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.130 Rights of Purchasers of Existing Mobile homes in Existing Mobile Home Parks.
The purchaser of an existing Mobile home, located in an existing Mobile home park, shall have the rights as the seller of the Mobile home pursuant to a rental agreement. Management may not require directly or indirectly, that any Homeowner or prospective Homeowner to sign a lease or rental agreement that provides that it shall be exempt from local rent control or provides for space rent in excess of that permitted by local rent control as a condition of tenancy in their park. No Park Owner may deny a tenancy to a prospective purchaser of a Mobile home in the park on the grounds that the prospective purchaser will not sign a lease or a rental agreement.
A notice which conforms to the following language and is printed in bold letter of the same type size as the largest type size used in the rental agreement shall be presented to any Homeowner or prospective Homeowner at the time of presentation of a rental agreement creating a tenancy with a term greater than twelve (12) months.
Important notice to Homeowner regarding the proposed rental agreement for ________ Mobile home park. Please take notice that this rental agreement creates a tenancy with term in excess of twelve (12) months. By signing this rental agreement, you are exempting this Mobile home space from the provisions of the City of Watsonville rent control law. The City of Watsonville and the state Mobile home residency law (California Civil Code Section 798 et seq.) Give you certain rights. Before signing this agreement you may choose to see a lawyer.
Under the provisions of state law, you have the right to be offered a rental agreement for one (1) term of twelve (12) months, or (2) a lessor period as you may request, or (3) a longer period as you and the Mobile home park management agreement. You have the right to review this agreement for thirty (30) days before accepting it or rejecting it. If you sign the agreement you may cancel the agreement by notifying the park management in writing of the cancellation within seventy-two (72) hours of your execution of the agreement. It is unlawful for a Mobile home Park Owner or any agent or representative of the owner to discriminate against you because of the exercise of any rights you may UNDER THE CITY OF WATSONVILLE RENT CONTROL LAW, OR BECAUSE OF YOUR CHOICE TO ENTER INTO A RENTAL AGREEMENT WHICH IS SUBJECT TO THE PROVISIONS OF THAT LAW.
The notice shall contain a place for the Homeowner to acknowledge receipt of the notice and shall also contain an acknowledgment signed by the park management that the notice has been given to the Homeowner according to this section. A copy of this notice executed by the park management shall be provided to the Homeowner.
Absent an agreement to the contrary, the maximum rental fee that may initially be charged to the purchaser of an existing Mobile home, in an existing Mobile home park, is a rental fee that does not exceed the rental fee in force and effect on the date that title of the Mobile home transfers from the seller to the purchaser.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.140 Rights of Homeowners to sell or rent their existing Mobile home in existing Mobile home Parks.
The Homeowners shall have the rights to sell or rent their Mobile home alone or through a properly licensed sales agent. The Park Owner or Park Owner’s sales agent may not represent the sale or rental of a Homeowner’s Mobile home unless the following conditions are achieved to the satisfaction of the City Manager:
(a) The Homeowner requests the sale or rental management services from the Park Owner in writing after the Homeowner’s consultation with the Homeowner’s representative or any other consultant of the Homeowner’s choice.
(b) Park Owner supplies the Homeowner at least five (5) calendar days beforehand, a list of persons who have indicated a desire to provide sales or rental agreement services within the consistency. The list of persons who desire to provide sales or rental management services within the community shall be approved and made available upon request by the City Manager’s Office.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
Article 2. Base Rental and Yearly Rental Adjustment
11-3.200 Definitions and Methods.
Unless the context requires otherwise, the definitions and methods set forth in this Article shall be used in the interpretation and construction of this Chapter.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.210 Homeowner.
“Homeowner” shall mean any registered owner of a Mobile home which occupies a space in a Mobile home park in return for the payment of space rent. For purpose of voting, Homeowner shall mean one person per Mobile home.
Homeowner shall not mean a Park Owner who owns a Mobile home on a space in the park.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.220 Rent.
“Rent” shall mean the consideration, including any bonus, benefits, or gratuities, demanded or received for and in connection with the use or occupancy of a Mobile home within a Mobile home park. Space rent shall not include recreation vehicle (RV) storage, Laundromat, or any utility charges for utility services, including gas, electricity, water, trash and/or sewer service, provided to an individual home (as opposed to the park in general) where such charges are billed to such a residence separately from the space rent and such charges are limited to the value of the utility services in accordance with the regulations of the Public Utilities Commission provided to the individual residence.
Wherever park spaces are occupied by homes belonging to the Park Owner all income and cost attributable thereto, including a prorate allocation of common area costs, shall be excluded from any calculation of Home Owners’ space rent.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.230 Maximum Rent Increase.
“Maximum Rent Increase” shall mean, except as provided in Articles 3 and 4, the maximum annual rent increase that may be imposed on any individual space shall be equal to seventy (70%) percent of the percentage change in the Consumer Price Index, or a maximum annual rent increase of five (5%) percent of existing rent, whichever is less. No rent increase may be imposed without City Manager review pursuant to this Chapter.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.240 Consumer Price Index.
“Consumer Price Index” (CPI) shall mean the “All Cities, United States” Consumer Price Index “all urban consumer” as provided by the Bureau of Labor Statistics.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.250 CPI Indexing Consistency.
“CPI indexing consistency” shall mean that all mobile home parks shall use the same ending month when computing the change in CPI. Such month shall be determined by the City Manager. For Mobile home parks which previously used a different ending month, CPI calculations for the first rent adjustment following the effective date of this Chapter shall not use a twelve (12) month period, but rather the period from the previously used ending month and the new ending month.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.260 Mobile home.
“Mobile home” means a factory produced and assembled structure designed to be used as a permanent residence in a Mobile home park.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.270 Service Reduction.
“Service reductions” shall mean the elimination or reduction of any previously provided service or facility. “Service” shall also include physical improvements or amenities.
(a) A service reduction complaint shall be submitted to the City Manager alleging in a written form and should state:
(1) The affected spaces;
(2) The prior level of service established by the Park Owner for that Homeowner’s Mobile home space and common facilities used by that Homeowner;
(3) The specific changes in the prior level of services comprising the alleged reduction in service;
(4) The date the service reduction was first noticed by the Homeowner;
(5) The date of notice to the Park Owner of the alleged service reduction, and if such notice was given, whether the notice was given orally or in writing;
(6) When and how the Park Owner responded to the Homeowner’s notice, if notice was given;
(7) Whether the condition was improved or corrected and if so, when and how; and
(8) The status of the condition as of the date the complaint is signed;
(9) Where such service reduction was the result of a vote of a majority of the affected Homeowners.
(b) The City Manager may either: (1) reject the complaint as not presenting sufficient facts to justify a hearing; or (2) set the matter for hearing.
(c) If the City Manager finds that a material service reduction has occurred, the City Manager shall determine the resultant percentage reduction in the Homeowner’s enjoyment of their homes, or the savings in park operating costs, whichever is greatest.
(d) Rent shall be reduced by that percentage or amount. The Homeowners also shall be entitled to a rebate of the following sum: the monthly rent reduction multiplied by the number of months between the date the Homeowners notified the Park Owner of the reduction in service, and the date the City Manager determined the rent reduction.
(e) A service reduction shall not include the elimination or reduction of a recreational facility or service when such elimination or reduction and rent decrease resulting therefrom have the prior written approval of two thirds of the Homeowners. In such cases no rebate shall be required.
(f) No recreational service or facility which has been reduced or eliminated shall be reinstituted at any cost to the Homeowners without prior written approval of two-thirds of the Homeowners.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.290 Park Owner.
“Park Owner” shall mean any owner, lessor, or sublessor (including any person, firm, corporation, partnership, or other entity) who receives or who is entitled to receive rent for the use of any rental space in a Mobile home park, or the agent, representative or successor of any of the foregoing.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
Article 3. Surcharges
11-3.300 Allowable Surcharges.
“Allowable surcharges” shall mean the charges resulting from the privilege of occupying space within a Mobile home park, except rent herein. The following are the only allowable surcharges:
(a) Surcharges for capital improvements which would create an improvement, or feature thereof, which did not previously exist in any fashion prior to the application for applicable surcharge (i.e.: a swimming pool when none previously existed). A surcharge (except as defined in subsection (b) of this section), may only be allowed when the improvement, and the amount and duration of the surcharge (including financing costs, if any), have been approved in writing by a two-thirds of the Home-owners, or required by law.
(b) Surcharges for replacement or repair of any previously existing improvement will be allowed if approved by a simple majority of Homeowners. In each such case the cost, including reasonable financing charges, shall be amortized over the reasonably anticipated lifetime of the replacement or repair.
(c) All permissible surcharges existing on the effective date of this chapter shall automatically expire when charges thereunder are fully paid.
(d) Actual charges in accordance with the regulations of the P.U.C. paid to public utility agencies for public utilities provided to each space occupied by a Mobile home. No share of the cost of utilities to common areas shall be included.
(e) Government mandated fees and assessments on individual Mobile homes for which the Park Owner is specified as the collection agent.
(f) If the Park Owner makes application for surcharge under Section 11-3.300, the City Manager may require the submittal of any additional information which is believed necessary for proper deliberation and determination.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.310 Surcharge Listed Separately.
Surcharges, including expiration dates if any, shall be listed separately from each other and from rent on monthly bills and notices of rent increases.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.320 Administrative Fee.
“Administrative Fee” means a charge, imposed upon the privilege of occupying space within a “Mobile home park”, as defined in Section 11-1.03 of the Watsonville Municipal Code which is also subject to this Chapter. The Administrative Fee is to be paid to the City monthly, collected by the Park Owner with the monthly rent, prorated if necessary. The purpose of the surcharge is to reimburse the City administrative staff for the expenses associated with enforcing the provisions of this Chapter. The Administrative Fee shall be fifty ($.50) cents per Lot per month (as defined in Section 11-1.03 of this Code).
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.325 Rent control fee.
“Rent control preservation fee,” “rent control fee” or “fee,” as used in Sections 11-3.325 to 11-3.329, means a charge upon persons occupying a space within a “mobile home park,” as defined in Section 11-1.03 of the Watsonville Municipal Code, for the privilege granted by this chapter of receiving the specific rent stabilization benefits conferred by this chapter.
(§ 1, Ord. 1291-12 (CM), eff. December 21, 2012)
11-3.326 Collection.
The rent control fee is to be paid to the City monthly, collected from the homeowners by the park owner with the monthly rent, prorated if necessary, from every occupied mobile home space except those spaces that are excluded from paying the fee under Section 11-3.327. This fee shall be deemed a debt owed by the homeowner to the City. Any such fee that has been collected by a park owner, which has not been paid over to the City, shall be deemed a debt owed to the City. Park owners are not required to pay the fee to the City for spaces occupied by homeowners who fail to pay the fee to the park owner and failure to pay the fee shall not be grounds for a mobile home park rule violation or grounds for eviction under Civil Code Section 798.56(a) or (e). Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City of Watsonville for the recovery of such amount.
(§ 1, Ord. 1291-12 (CM), eff. December 21, 2012)
11-3.327 Excluded spaces.
Only homeowners occupying spaces that receive the specific rent stabilization privileges granted and benefits conferred by this chapter shall be assessed this rent control fee. Persons occupying spaces that are excluded from the rent stabilization privileges granted and benefits conferred by this chapter, either through State law or otherwise, shall not be charged this rent control fee.
(§ 1, Ord. 1291-12 (CM), eff. December 21, 2012)
11-3.328 Purpose and limitation on use.
The purpose of the fee is to partly reimburse the City for the reasonable costs of conferring the benefits and privileges provided by this chapter to the benefit of the mobile home owners who are collectively paying the fee. These costs shall be strictly limited to the costs of defending the rent control provisions of this chapter from litigation challenging them; the costs of defending the administrative decisions of the City that would preserve the application of the rent control provisions of this chapter to mobile home parks sought to be converted to subdivided lots or other uses that would result in the loss of the rent stabilization benefits and privileges conferred by this chapter; and providing grants to mobile home park homeowners’ associations, or legal service providers, to partly cover the costs of providing the legal services necessary for enforcing their rights in administrative proceedings under this chapter. All monies collected by the City through this rent control fee.
(§ 1, Ord. 1291-12 (CM), eff. December 21, 2012)
11-3.329 Amount of the fee.
For the first year of implementation, the fee shall be set in the amount of Five and no/100ths ($5.00) Dollars per month as soon after the effective date of the implementing ordinance codified in this section as is practicable. The fee shall be increased automatically each year by the amount of the increase of the Consumer Price Index.
(§ 1, Ord. 1291-12 (CM), eff. December 21, 2012)
11-3.340 Supplemental Administrative Fee.
In addition to the Administrative Fee imposed upon the privilege of occupying space within a Mobile Home Park, as set forth in Section 11-3.320 of this Code, a Supplemental Administrative Fee shall be paid to the City monthly, collected by the Park Owner with the monthly rent, prorated if necessary. The purpose of the Supplemental Administrative Fee is to provide additional, ongoing reimbursement to the City administrative staff for the expenses associated with enforcing the provisions of this Chapter. The Supplemental Administrative Fee shall initially be Fifty Cents ($.50) per Lot (as defined in Section 11-1.03 of this Code) per month and shall be allowed to increase as described below. In conjunction with the City’s calculation of the annual “Maximum Rate Increase” (as defined in Section 11-3.230 of this Code) for Mobile Home Parks of each successive year, the City staff shall determine the rise in the Consumer Price Index, as defined in Section 11-3.240 of this Code, between December to December. The Supplemental Administrative Fee shall be increased each year by this percentage amount, rounded to the nearest Five Cents ($.05), effective as of the same date as the Maximum Rate Increase for Mobile Home Parks. The amount of the increase to the Supplemental Administrative Fee shall be communicated to the Park Owners by the City staff by letter in conjunction with the Maximum Rate Increase for Mobile Home Parks.
(§ 1, Ord. 1152-02 C-M, eff. November 15, 2002)
Article 4. Fair Rate of Return
11-3.400 Fair Rate of Return Defined.
“Fair rate of return” shall mean that assigned to that term by courts of competent jurisdiction with reference to reasonable return on investment rather than return on property value. Changes in ownership of a park after the effective date of this Chapter shall not entitle any succeeding Park Owner to higher rents than would have been paid if the original owner had remained the Park Owner.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.420 Fair Rate of Return Application.
It shall be presumed that application of this Chapter and current rent as of July 1, 1988, result in a fair rate of return on investment. A Park Owner or a Homeowner’s agent, who believes that presumption can be overcome may apply to the City Manager for determination of the minimum rent adjustment necessary to produce a fair rate of return. Any such application must articulate the definition of fair rate of return under which the claim is being made and cite the authority which establishes that the existing return is not the minimum fair rate of return. The application should also contain all such supporting information as is necessary or appropriate for an accurate disposition of the application. If the application is successful, rents shall be adjusted to the minimum amount necessary to produce a fair rate of return.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.430 Cost of Expert Analysis.
Upon the receipt of a fair rate of return application, the City Manager should determine if the employment of experts will be necessary or appropriate for a proper analysis of the applicant’s presentation. If the City Manager so determines, it shall also determine the anticipated cost of employing any such experts. The resulting figure shall be communicated to the applicant. The application shall not be further processed until the applicant has paid to the City the estimated cost of expert analysis. Any unused portion for payments so collected shall be refunded to the applicant. An application for a fair rate of return adjustment shall be decided by the City Manager within sixty (60) days of the date that the application, including the receipt of fees for expert analysis, has been completed. Any experts hired pursuant to this Section shall be instructed to give an unbiased analysis.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.440 Appeal for Fair Rate of Return Findings.
It shall be presumed that the maximum rent increase permitted under Sec. 11-3.230 of this chapter yields a Fair Rate of Return. A Park Owner or a Homeowner’s agent, who wants to appeal the decision of the City Manager shall apply for arbitration pursuant to Sec. 11-3.515.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.450 Recovering of Expenses in Fair Rate of Return Administrative Proceedings.
(a) Recitals and Purpose. The purpose of this Ordinance is to:
(1) Ensure that the owners of mobile homes located in mobile home parks that are subject to the Watsonville Mobile Home Park Rent Stabilization
Ordinance are not precluded from participating in the underlying administrative proceeding in a Park Owner’s request for a Fair Rate of Return for mobile home space rent increase because of the high cost of professional expenses reasonably required in order to be able to effectively participate.
(2) Ensure that owners of Mobile Home Parks that are subject to the Watsonville Mobile Home Park Rent Stabilization Ordinance can recover the cost of professional expenses reasonably incurred in the following three (3) situations:
(i) If the Park Owner accepts the designated Homeowners’ representative’s settlement offer under Section 11-3.445 of this Code; or
(ii) If such expenses were incurred in order to participate in administrative proceedings that have been made unnecessarily and unduly expensive as a result of requests for information by the City which deliberately flout existing law; or
(iii) If the landlord would suffer confiscation if such expenses were not recoverable.
(3) Encourage both Park Owners and Mobile Home owners to minimize, to the extent possible, the cost and expense of Fair Rate of Return Mobile Home Space Rent Administrative Proceedings by providing a mechanism for the early settlement of Fair of Rate Return administrative proceedings.
(4) Discourage Park Owners from filing requests for Fair Rate of Return Mobile Home space rent increases that are grossly in excess of the amounts that they are reasonably likely to recover, a practice that has occurred in this and other jurisdictions.
(5) Discourage Mobile Home owners from unreasonably opposing legitimate requests for Fair Rate of Return Mobile Home space rent increases.
(6) Avoid unnecessarily protracted Fair Rate of Return administrative proceedings which impose excessive costs on the City which is charged with enforcing the Ordinance.
(b) Encouragement of Reasonable Settlement Offers. At any time after filing a Fair Rate of Return Rent Application the designated representative of the residents of the Mobile Home Park may serve an offer in writing in the Mobile Home Park Owner who has filed that petition to stipulate to a compromise amount for the Fair Rate of Return rent increase requested in the petition. The designated representative shall also file a copy of this written settlement offer with the City in a separately sealed envelope and with a statement on the outside of the envelope stating that it is a written settlement offer pursuant to this Subsection. The sealed copy of the written settlement offer that is so filed with the City is not to be opened by the City until it is either accepted by the Park Owner or if it is not accepted by the Park Owner, after a final rent increase award or denial has been made on the Park Owner’s petition by either the City Manager under Section 11-3.510 of this Code, or by the arbitrator under Section 11-3.515 of this Code. Upon receiving such offer to compromise, the Mobile Home Park Owner has seven (7) days to accept the offer by filing a written acceptance with the City Clerk.
(c) Recovery of Reasonable Expenses in a Fair Rate of Return Administrative Proceeding.
(1) Recovery of Expenses by the Owner of a Mobile Home Park.
(i) Except as provided in (c)(1)(iv) below, the Mobile Home Park Owner’s reasonable expenses, fees, and other costs for professional services, including, but not limited to, legal, accounting, appraisal, bookkeeping, consulting, property management, or engineering services, reasonably incurred in the course of successfully pursuing a Fair Rate of Return Rent Increase Application shall be included as a limited duration pass-through expense in any calculation of net operating income and operating expenses used to determine a Fair Rate of Return to the Mobile Home Park Owner in the following three situations:
(aa) If the Mobile Home Park Owner accepted the designated Homeowners’ representative’s settlement offer under Section 11-3.445 of this Code; or
(ab) If such expenses were incurred in order to participate in administrative proceedings that have been made unnecessarily and unduly expensive as a result of requests for information by the City which deliberately flout existing law; or
(ac) If the landlord would suffer confiscation if such expenses were not recoverable.
All expenses, fees, and other costs reasonably incurred by a Mobile Home Park Owner in relation to administrative proceedings for purposes specified in this Subsection, subject to the limitations provided in Subsection (c)(1)(iv) and (d) below shall be included in the calculation specified in this Subsection as a limited duration pass-through expense.
(ii) Notwithstanding Subsection (I), absent substantial evidence in the record that the expenses reasonably incurred in the underlying proceeding will reoccur annually, expenses determined to be reasonable pursuant to this Section shall be amortized and passed through to the residents as a limited duration pass-through expense, for a period of five (5) years, except that in extraordinary circumstances, the amortization period may be extended to a period of eight (8) years. This pass-through expense shall be deleted from the residents monthly rent at the end of the amortization period. The amortization schedule shall also include a reasonable rate of interest.
(iii) Any determination of the reasonableness of the expenses claimed, of an appropriate amortization period or of the award of an upward adjustment of rents to compensate the owner for expenses and costs incurred shall be made within thirty (30) days following the final decision in the underlying administrative proceeding by either the City Manager under Section 11-3.510 of this Code, or, by the arbitrator under Section 11-3.515 of this Code.
(iv) A Mobile Home Park Owner is not entitled to recover expenses, fees, or other costs if the Mobile Home Homeowner’s designated representative is determined to have made a prevailing offer under Subsection (2)(i) below, or if the Park Owner has failed to achieve a rent increase that is greater than forty percent (40%) of the original amount of the rent increase requested in the Mobile Home Park Owner’s original petition.
(2) Recovery of Expenses by the Mobile Homeowners.
(i) The reasonable expenses, fees, and costs of their preparation for and participation in the administrative proceeding underlying the Mobile Home Park Owner’s Fair Rate of Return rent increase request shall be awarded to the designated Homeowners’ representative, and the petitioning Mobile Home Park Owner shall be required to pay this award, if either (1) the designated Homeowners’ representative is determined to have made a prevailing offer, or if (2) the Park Owner has failed to achieve a rent increase that is greater than forty percent (40%) of the original amount of the rent increase requested in the Park Owner’s original petition.
The designated Mobile Home owners’ representative shall be determined to have made a prevailing offer if a settlement offer has been made, under Section 11-3.445 (b) of this Code, and that offer has not been accepted by the Park Owner within seven (7) days after the making of that offer, and the Park Owner’s rent increase award fails to exceed the amount of that settlement offer.
(ii) Any award of, and the determination of the reasonableness of the expenses claimed of the designated Homeowners’ representative’s expenses, fees and costs incurred shall be made as part of, or within thirty (30) days following, the decision in the underlying administrative proceeding by either the City Manager under Section 11-3.50 of this Code, or, by the arbitrator under Section 11-3.515 of this Code. The award of the expenses, fees, and costs to the designated Homeowners’ representative shall be made in a one lump sum payment and shall be made directly to the Homeowners’ designated representative and/or his attorney, and shall not be amortized.
(iii) Any award of expenses, fees, and costs against a Park Owner to a designated Homeowners’ representative shall be paid to the designated Homeowners’ representative, or to his attorney, within thirty (30) days following the decision that awards such expenses, fees, and costs. If such payment is not made within this time period, then the designated Homeowners’ representative shall have the right to file a civil action pursuant to this chapter to recover the awarded, expenses, fees, and costs. In any such civil action filed to recover the designated Homeowners’ awarded expenses, fees, costs, the prevailing party shall also be entitled to recover court costs, and court expenses, including the additional attorney fees of that litigation.
(d) Factors to be Considered In Determining Reasonableness of Claimed Expenses. Any and all of the following factors shall be considered in the determination of the reasonableness of the expenses, fees, or other costs authorized by Subsections (c)(1) and (c)(2) of this Code:
(1) The rate charged for those professional services in the relevant geographic area.
(2) The complexity of the matter.
(3) The degree of administrative burden or judicial burden, or both, imposed upon the Park Owner.
(4) The amount of adjustment sought or the significance of the rights defended and the results obtained.
(5) The relationship of the result obtained to the expenses, fees, and other costs incurred (that is, whether professional assistance was reasonably related to the result achieved).
(6) The relationship between the amount of the rent increase award and the original amount requested in the Fair Rate of Return petition and also the relationship between the amount of the rent increase award and the settlement offer, if any, offered by the designated representative of the Mobile Homeowners under Section 11-3.450(b) of this Code.
(§ 1, Ord. 1152-02 C-M, eff. November 15, 2002)
Article 5. Procedures
11-3.500 Homeowner Representatives.
The Park Owner shall not participate in, or influence in any manner whatsoever, the process of selecting and designating the Homeowners Representative. Any such designation should be signed by the persons owning a majority of the Mobile homes located within the applicable Mobile home park. The persons submitting the designation should certify under penalty of perjury that the signatures thereon are true and correct to the best of the declarant’s knowledge. If the Homeowners fail to designate a representative through the foregoing procedures, the City Manager may establish any such procedure, such as mailed sealed ballots, reasonably likely to yield a democratically selected representative.
Once a representative has, for any particular year, being properly designated, all notices to Home-owners may be directed to that representative. Any Homeowner who can show that his or her individual interests are not likely to be fully represented by the Homeowners’ representative may request that the arbitrator allow that person, or group of persons, to represent him, her, or themselves. An example would be a Homeowner who claims to be the victim of retaliatory Park Owner practices not directed against a majority of the Homeowners of a Mobile home park.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.510 Park Owner Submittal.
At least three (3) months before the anticipated date of any intended rent increase, the Park Owner shall submit a calculation of any rent increase under Section 11-3.220, and any application under Article 4. A statement of his/her individual space rent increase shall be sent on the same date to each Homeowner in the park. The Homeowner’s rent increases notice shall include a statement of the official CPI percentage increase. If either the City Manager or the Homeowner representative, within ten (10) days of its receipt, disagree with the Park Owners mathematics concerning the Section 11-3.220 rent increase or application under Article 4, the dispute shall be promptly set for City Manager determination.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.515 Disputes Subject to Arbitration.
All disputes arising out of the City Manager’s interpretation and enforcement of the provisions of this Chapter may be resolved by mandatory binding arbitration pursuant to the Commercial Arbitration Rules of the American Arbitration Association, unless all parties agree to other rules of arbitration.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.520 Selection of Arbitrator.
All disputes arising out of the interpretation and enforcement of the provisions of this Chapter shall be conducted according to the following rules:
(a) Within fifteen (15) working days of receipt of a petition for relief, an Arbitrator shall be appointed to conduct the hearing. Final retention of the Arbitrator shall be subject to the payment of costs under (c) of this section.
(b) The Arbitrator shall be appointed in the following manner:
(1) Any interested person may submit to the City Manager a list of nominees. The nominee shall be an experienced arbitrator with particular expertise in Mobile home rental disputes or with experience or training showing the capabilities to deal with the issues found in a Mobile home rental dispute. The lists of nominees shall include the resumes of each, detailing their qualifications.
(2) To be eligible for nomination, the arbitrator shall not own a real estate interest in a Mobile home park, shall not be a tenant of a Mobile home park, and shall not be an employee, officer, member or otherwise affiliate with any group or organization which has or is viewed, in the City Manager’s opinion, by a significant number of owners or tenants as having taken advocacy position in rent control matters.
(3) The City Manager shall review the lists, conduct such investigations and/or interviews as he/she deems necessary, and refer the lists to the City Council together with a recommendation.
(4) The City Council shall review the lists, shall conduct such investigations and/or interviews as it deems necessary, and shall select an arbitrator. The arbitrator, selected by the City Council, may but need not, appear on either list submitted, but shall meet the eligibility criteria set forth in subdivision 2 of this subsection. The decision of the City Council under this section shall be final.
(c) Upon appointment of the Arbitrator, the City Manager shall notify the petitioner by mail of the estimated cost of the hearing officer and request payment. If payment is not received from the petitioner within ten (10) days of the notice, the petition shall be deemed withdrawn.
(d) If the payment made under subsection (c) of this section is insufficient to pay the full cost of the Arbitrator, the petitioner shall pay the difference to the City Manager within ten (10) working days of receiving notice of the amount due. If the payment made exceeds the full cost of the Arbitrator, the excess shall be refunded by the City Manager to the petitioner after the Arbitrator is paid in full.
(e) Upon receipt of payment under subsection (c) of this section, the hearing officer shall be deemed retained.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.530 Request for Findings.
Any party desiring findings regarding decisions made by the arbitrator under this Chapter must request them in writing. Such request must be received in the arbitrator’s place of business within ten (10) calendar days of the date the arbitrator made the decision and shall specify those issues upon which findings are requested.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.540 Certification.
Any party to an arbitration pursuant to this Chapter in which a decision has been made may petition the Santa Cruz County Superior Court to confirm, correct or vacate the decision pursuant to Article 1 of Chapter 4 of Title 9 of Part 3 of the Code of Civil Procedure, commencing with Section 1285.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.550 Requirement of Long-Term Rental Agreements.
It shall be unlawful for any Mobile home Park Owner or manager to directly or indirectly require any Homeowner or prospective Homeowner to sign a rental agreement with a term in excess of twelve months as a condition of residence in the park.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
Article 6. Temporary Rental of Mobile Homes in Mobile Home Parks
11-3.600 Findings and Purpose.
The City finds that various Mobile home parks prohibit the owner of a Mobile home from renting it for any period of time, and that such non-rental rules from time to time impose hardships on owners of Mobile homes who are unable to reside in their Mobile homes, but are held liable for the space rental and upkeep of their Mobile home while it is vacant and until the Mobile home can be sold or otherwise re-occupied. It is the purpose of this Article to alleviate hardships on such owners who are unable to reside in their Mobile homes by allowing the temporary rental of the Mobile home for a reasonable period required for the owner to sell or re-occupy the Mobile home.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
11-3.610 Temporary Rental of Mobile Home.
No owner of a Mobile home occupying a rental space in a Mobile home Park shall rent the home except under the following conditions:
(a) The home may be rented for one year only.
(b) The owner is unable to occupy the home by reason of (1) illness, (2) death, or (3) absence from the area for other than vacation reasons.
(c) The owner has resided in the home for at least a one-year period prior to the vacancy that necessitates renting the home and no longer meets the rules of occupancy of the park by reason of a change in circumstances (i.e., the birth of a child in a senior only Mobile home park, etc.).
(d) The owner or person in a fiduciary capacity who has received ownership of, or the possessory rights to, a Mobile home through probate, bankruptcy, foreclosure, or the owner’s incapacity, and procedures require time to arrange for the sale of the home or to arrange for occupancy of the home by the owner.
(e) For purposes of this section, “renter” refers to the person or persons who pay rent to the Mobile home owner in exchange for the temporary right to reside within the subject Mobile home (and the related right to occupy the space upon which the Mobile home is located), but not as a co-occupant with the owner. Any renter of a Mobile home must meet all the rules of occupancy of the Mobile home park in which the Mobile home is located with the exception of any rule which directly or indirectly prohibits, in conflict with this Article, the temporary rental of a Mobile home. Prior to the Mobile home renter’s taking occupancy, that renter and the Mobile home owner shall provide the Park Owner with:
(1) The true names and date of birth, for senior parks only, of all intended occupants and their residential phone number;
(2) Business telephone numbers for all adult occupants who have such numbers;
(3) An agreement signed by all adult occupants which reads as follows:
I have received copies of the Park Rules. I understand that the Park Owner may directly enforce this within agreement against me without giving up any rights against the Mobile home owner.
(f) Such temporary rentals authorized by this Article are subject in each case to notification by the owner of the home to the Park Owner, the Homeowners’ Representative, and the City Manager, specifying that the following conditions have been met:
(1) The rent charged for the home shall be no greater than the Homeowner’s total out of pocket cost of ownership, including space rent and surcharges, reasonable allowance for home maintenance, insurance, mortgage payments if any, and a Home Management Agents’ fee if any.
(2) The Park Owner shall comply with Section 11-3.140 when attempting to represent the Homeowner during the sale or rental of the Homeowners Mobile home.
(3) A copy shall be attached of a written rental agreement signed by the Renter showing a maximum of one-year duration and rent to be charged, shall be provided as an attachment to the notification.
(4) The notification shall contain the name of the licensed real estate agent handling the sale, and, in the case of absence due to illness, the name and telephone number of the attending physician.
(5) The rental time period may be extended for a maximum of one year upon the approval of any two of the Park Owner, Homeowners Representative, and the City Manager upon written presentation of reasonable evidence that the vacancy is indeed temporarily necessary, and that a reasonable sales effort is being made.
(6) Any further extensions of the temporary rentage, beyond two (2) years may be granted only through arbitration under Sec. 11-3.515.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
Article 7. Maximum Rent After Sale or Transfer of Mobile Home
11-3.700 Vacancy Control on Sale or Transfer of Mobile Home.
The maximum rent which may be charged pursuant to this Chapter 11-3 shall not be modified upon the sale, transfer, or rental of the Mobile home to a third party, or by the replacement of the Mobile home by the Homeowner. Park Owners who raised space rent for such reasons must reduce those rents to the level which otherwise would have been charged. Park Owners affected by the rollbacks required under this Article 7 of this Chapter may apply for a determination of the fair rate of return pursuant to the provision of this Chapter. Where the prior tenant had been paying unusually low rent based on special concessions not extended to all other Homeowners, the Park Owner may adjust the rent upward so that the new Homeowners is paying rent which is no more than that paid by other Homeowners enjoying the same or similar accommodations and benefits.
(§ 1, Ord. 1018-96 C-M, eff. November 15, 1996)
Article 8. Excessive Rents and Payments
11-3.800 Excessive rents or demands therefor.
It shall be unlawful for a park owner to demand, accept, receive, or retain any rent in excess of the amounts authorized by this chapter.
(§ 1, Ord. 1291-12 (CM), eff. December 21, 2012)
11-3.810 Excessive rents—Civil penalties and attorney’s fees recovery.
(a) If any person is found to have demanded, accepted, received or retained any payment of rent in excess of the maximum rent allowed by this chapter, such person shall be liable to the mobile home owner or mobile home tenant from whom such payment was demanded, accepted, received, or retained for damages as determined by a court of competent jurisdiction.
(b) In the event a mobile home owner or mobile home tenant is the prevailing party in a civil action against a person found to have demanded, accepted, received or retained any payment of rent described in subsection (a) of this section, such mobile home owner or mobile home tenant, in addition to damages as determined by the court pursuant to subsection (a) of this section, may, in the discretion of the court, be awarded an amount not to exceed Five Hundred and no/100ths ($500.00) Dollars or three (3) times the damages determined by the court pursuant to subsection (a) of this section, whichever is greater, and they shall also be awarded their reasonable attorney’s fees and costs. For the purposes of this subsection, a mobile home owner or mobile home tenant shall be deemed to be a prevailing party if the judgment is rendered in such mobile home owner’s or mobile home tenant’s favor or if the litigation is dismissed in such mobile home owner’s or mobile home tenant’s favor prior to final judgment, unless the parties otherwise agree in the settlement or compromise.
(§ 1, Ord. 1291-12 (CM), eff. December 21, 2012)