HomeMy WebLinkAboutGuidelines for Rent Control Ordinance - LAW OFFICES OF
BEST, BEST & KRIEGL. .
January 27 , 1993
MEMORANDUM
TO: Members of the City Council
City of Palm Desert
FROM: Dave Erwin, City Attorney -
RE: Amendment to Rent Control Guidelines
Dear Council Members:
At the Council ' s meeting on January 14 , 1993 , these Guidelines were
continued for discussion with other subjects with residents in
mobile home parks.
I would ask the Council to consider ratification of the proposed
Amendment to the Guidelines prior to the oral arguments in the
Court of Appeal on February 4 , 1993 , so that, should the issue
arise, these would have been ratified by this Council. I did not
realize, at the meeting of January 14 , 1993 , the need to do these
prior to that hearing.
Attached is a copy of the Staff Report for the Proposed Guidelines
that you had at the meeting of January 14 , 1993 .
DJE/vcd
attachment
CITY COUNC ACTION:
DENIED \ _
APPROVED OTHER 0'
RECEIVp
MEETING DA
AYES:
NOES:
ABSENT:
ABSTAIN:
VERIFIED BY: Clerk' s Office
Original on File with City
MEETING DATE 11 µ"I
Zi5CONTINUED TO eD`1 I �'I
❑ PASSED TO 2ND READING
MEMORANDUM
CITY MANAGER
TO: HONORABLE MAYOR & MEMBERS OF THE CITY COUNCIL
FROM: CITY CLERK/P.I.O.
AMENDMENT TO THE APPROVED GUIDELINES FOR
SUBJECT: THE PALM DESERT MOBILEHOME RENT CONTROL ORDINANCE
DATE: January 14, 1993
Recommendation:
By Minute Motion, ratify the Rent Review Commission's adoption of Resolution No. RRC-1
amending the Guidelines of the Mobilehome Rent Control Ordinance.
Discussion:
The Rent Review Commission met on Friday, December 18, 1992, and approved the subject
amendment by Resolution No. RRC-1.
This revision expands the number of methods the Commission may use in determining whether
or not a landlord is receiving a fair return on his property. These methods may include, but are
not limited, to the following: 1) Present Fair Market Value; 2) Capitalization of Income; 3)
Comparable Sales; 4) Replacement Cost; 5) Original Investment. Additionally, it makes the
Guidelines more specific as to the landlord's responsibility to notify affected residents of any
application for rent increase.
The City Attorney's office introduced these amendments to better effectuate the intent and the
actual provisions of the existing City Code. They also makes the Guidelines more defensible
to legal challenge
Reviewed and concurred:
4101'4
SHEILA R. GIL GAN �/)b,
CITY CLERK/P.I.O. BR CE . ALTMAN, CITY MGR.
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RESOLUTION NO. R 1 Page 2
4. Replacement Cost
5. Original Investment
If a landlord successfully rebuts the presumption that the mandatory rent
increase provided by Palm Desert Municipal Code Section 9.50.060 and the
hardship rent increase authorized by Subdivision A of this section of the
guidelines provides the landlord with a fair return on his or her property, the
Commission may award the landlord a discretionary rent increase in the
amount the Commission deems necessary to achieve a fair return.
C. Notification of Residents
Consistent with Section 9.50.070 of the Palm Desert Municipal Code, a
landlord seeking a hardship or discretionary hardship increase pursuant to
this section of the guidelines shall attest in writing to the commission at the
time his or her petition is filed that he or she has served on each affected
resident written notice that the landlord is applying to the Commission for
a hardship or discretionary hardship rent increase. Said notice shall inform
each affected resident where the petition may be obtained or reviewed and
that they have a right to be present at the hearing and present arguments or
evidence to the Commission for or against the south increase. Landlords
shall provide actual notice to all residents a minimum of fifteen (15) days in
advance of the hearing date once it is set. Failure to comply with such
notice requirements shall be grounds, in the Commission's discretion, for
recision of any rent increase granted pursuant to this section of the
guidelines.
Section 2. That the City Clerk shall forward a copy of this Resolution to the City
Council for ratification.
PASSED, APPROVED and ADOPTED this 18th day of December, 1992, at a duly
noticed meeting of the Palm Desert Rent Review Commission, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
RANDALL WHITE, CHAIRMAN
ATTEST:
SHEILA R. GILLIGAN, SECRETARY