HomeMy WebLinkAboutRRC-01RESOLUTION NO. RRC-1
A RESOLUTION OF THE PALM DESERT RENT REVIEW COMMISSION
AMENDING SECTION 101 OF THE RENT REVIEW GUIDELINES FOR
HARDSHIP RENT INCREASE
The Palm Desert Rent Review Commission DOES HEREBY RESOLVE as follows:
Section 1. That Section 101 of the Palm Desert Mobile Home Rent Review Guidelines
for Hardship Rent Increases shall be amended to read as follows:
"101. Allowable Rent Increases
A. Hardship Increases
Upon filing of an individual hardship petition by a landlord, the Commission
shall permit hardship rent increases such that the landlord's net operating
income in the base year will be increased by 50% of the increase in the
Consumer Price Index (CPI) over the base year. The increase in CPI shaLl
be calculated by subtracting the CPI for December, 1982, from the CPI for
the most recently reported month at the time of filing of the petition and
dividing the resulting figure by the CPI for December, 1982.
B. Discretionary Hardship Increases
It shall be presumed that the rent increases allowed by Palm Desert
Municipal Code Section 9.50.060 and the hardship increases allowed by
Subdivision A of this section of the guidelines enable landlords to receive a
fair return on their property. However, a landlord shall be entitled to
present evidence and arguments to the Commission rebutting this
presumption. Interested third parties may also attend the hearing and present
evidence and arguments for or against the landlord. Acknowledging that
what constitutes a fair return on property is debatable, the Commission may
consider any and all evidence or arguments it deems relevant to valuing the
landlord's property such that the result is in conformity with existing law and
operates to prevent a confiscatory taking. Relevant methods for valuing a
landlord's property may include, but are not limited, to the following:
1. Present Fair Market Value
2. Capitalization of Income
3. Comparable Sales
RESOLUTION NO. F"''.-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: Ainsworth, Coates, Wade-Maltais, & White
NOES: None
ABSENT: None
ABSTAIN: None
RANDALtWHI"f' HAIRMAN
ATT ST:
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SHEILA R. GIL IGAN, SEC fARY