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HomeMy WebLinkAboutORD 329ORDINANCE NO. 329 AN ORDINANCE OF THE CITY OF PALM DESERT, CALIFORNIA, ADDING CHAPTER 9.50 TO THE CODE OF THE CITY OF PALM DESERT RELATING TO MOBILE HOME PARK RENT REVIEW. WHEREAS, there is presently within the City of Palm Desert a shortage of spaces for the location of mobile homes commensurate with the demand therefor. This inequit- able market situation has resulted in low vacancy rates and contributed to rapidly escalating rents. This situation has resulted in serious concern and hardship among a significant portion of Palm Desert residents living in mobile home parks; and WHEREAS, mobile home owners are property owners with sizable investments in their mobile homes and appurte- nances; and WHEREAS, alternative sites for the relocation of mobile homes are difficult to find due to the shortage of vacant spaces, the restrictions on the age, size or style of mobile homes permitted in many parks and requirements related to the -installation of mobile homes, including the cost of moving a mobile home is substantial and the risk of damage is significant. These facts tend to create a captive market of mobile home park tenants and a great imbalance in the bargaining position of the park owner and the mobile home park tenants in favor of the park owners; and WHEREAS, the City Council finds and declares it necessary to protect the residents of mobile homes from unconscionable changes in rental rates and unreasonable changes in park rules and regulations while simultaneously recognizing and providing for the needs of park owners to receive a just and reasonable return on the present fair market value of their property; and WHEREAS, this proposed ordinance has been reviewed and has complied with the requirements of the "City of Palm Desert Procedures to Implement the California Environmental Quality Act, Resolution No. 80-89", in that the Director of Environmental Services has determined that the project will not have a significant adverse impact on the environment and a negative declaration has been prepared. NOW, THEREFORE, to alleviate the hardship stated above, the City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN as follows: SECTION 1. That Chapter 9.50 shall be and the same is hereby added to the Code of the City of Palm Desert, to read as follows: "Chapter 9.50 MOBILE HOME PARK RENT REVIEW 9.50.010 Title. This ordinance shall be known as the Mobile Home Park Rent Revie Ordinance of the City of Palm Desert. 9.50.020 Definitions. The following definitions shall govern the construction of this. chapter: PES:,iND�D A. 'Management' is the owner of a mobile home park or an agent or representative authorized to act on his behalf in connection with matters relating to a tenancy in the park and also referred to as 'mobile home park owner.' B. 'Mobile home' for the purpose of this chapter shall be as defined by the statutes of the State of California. C. 'Mobile home park' is an area of land where two or mobile mobile home sites are rented, or held out for rent, to accomodate mobile homes used for human habitation. D. 'Park' is a mobile home park. E. 'Rent' or 'space rent' is the consideration, including any bonus benefit of gratuity demanded or received in connection with the use and occupancy of a mobile home space in a mobile home park. F. 'Rental agreement' is an agreement between the management and the tenant establishing the terms and conditions of a tenancy. A lease is a rental agreement. G. 'Rent schedule' is a statement of the rent charged for each tenancy in a mobile home park, together with any supporting data therefor. H. 'Services' means those facilities which enhance the use of the mobile home site, including, but not limited to, repairs, replacements, maintenance, water, utilities, security devices, security patrols, storage, bath and laundry facilities and privileges, janitorial services, refuse removal and recreational and other facilities in common areas of the mobile home nark. 'Services' does not include charges for interest, depreciation, amortization, financing or refinancing of the mobile home park. I. 'Tenancy' is the right of a tenant to the use of a site within the mobile home nark on which to locate, maintain and occupy the mobile home, site improvements and accessory structures for human habitation, including the use of the services and facilities of the nark. J. 'Tenant' is an owner of a mobile home, responsible for paying rent to management. K. 'Representative.' In the event that a petition is filed by more than one tenant, they shall designate one (1) of them to be their representative. L. The 'hearing officer' shall be appointed by the Rent Review Board. The hearing officer shall be knowledgeable in the rules of evidence. The hearing officer shall be impartial and it shall be his duty to conduct an evidentiary hearing pursuant to the provisions of this chapter to obtain evidence from the parties that he deems necessary to make his recommendation and to make recommendations for findings and determinations to the rent review board. M. 'The rent review board' shall be that board appointed pursuant to Section 4. N. 'Consumer Price Index' is the index published by the United States Department of Labor, Bureau of Labor Statistics, known as the 'Consumer Price Index for Urban Wage Earners and Clerical Workers for the Los Angeles, Long -2- Beach, Anaheim Area.' (Base Year = 1967). If this index is changes so that the base year differs from the one defined in this chapter, the index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the index is discontinued or revised, such other governmental index or computation with which it is replaced shall be used or such other action as shall be necessary shall be taken in order to obtain substantially the same result as would be obtained if the index had not been discontinued or revised. 0. A 'contested hearing' is a hearing which results from a petition for adjustment which is filed pursuant to the provisions of this chapter. P. 'Capital improvement cost' are all expenditures which are required to be 'capitalize' rather than 'expensed' for state or federal income tax purposes, having a life of five years or more. 9.50.030 Exemptions. The provisions of this chapter shall not apply to the following tenancies in mobile home parks located in the City: A. Mobile home park spaces rented out for nonresidential uses. B. Mobile home parks, the construction of which began after the effective date of the ordinance codified in this chapter; provided, however, that such exemption continues in effect for only two years after the issuance of the building permit for the same, or until the park is seventy-five percent (75%) occupied; for the purposes of this section, 'construction' means the erection of structures. C. Mobile home parks managed or operated by the United States Government, the State of California, or the City of Palm Desert. D. Tenancies for which any federal or state law or regulation specifically prohibits rent regulation. E. Tenancies covered by a rental agreement in existence at the time this chapter becomes effective or entered into at anv time thereafter where such agreement has a duration exceeding that of a month -to -month tenancy. This exemption shall apply only for the duration of the agreement, including any renewal or extension therefor. Upon the expiration of such agreement, this chapter shall automatically become applicable to the tenancy. F. Mobile home narks which sell lots for mobile homes, factory -built or manufactured housing, or which provide condominium ownership of such lots, even if one or more homes in the development are rented or leased out. G. Mobile home parks with twenty (20) or less mobile home spaces. 9.50.040 Rent review board. A. There is hereby established within the City of Palm Desert a mobile home park rent review board consisting of five members appointed by the City Council and serving at the pleasure of the City Council. -3- B. Any member who is absent without being excused by the board from three successive regular meetings of the board shall be deemed to have vacated his office. C. Except as expressly provided herein, the board shall establish the time and place of its meetings. All meetings of the board shall be conducted in accordance with the provisions of the Ralph M. Brown Act. D. Disclosures - All candidates for appointment to the board shall disclose in a verified statement all present holdings and interests in real property, including interests in corporations, trusts or other entities owning real property within this jurisdiction as defined by California Government Code Section 82035. Such disclosure statement shall be made available to the City Council prior to appointment of members of the board and shall be filed with the City Clerk not less than ten (10) days after appointment. Disclosure of holdings required herein shall be in addition to any other disclosure required by state or local law for holders of public office. E. The board shall make and adopt its own rules and regulations for conducting its business consistent with this ordinance and laws of the state. Such rules and regulations shall be reduced to writing and shall be on file with the City Clerk at all times. The board shall appoint such officers a:9 maybe necessary. F. The board shall keep a record of its proceedings, which shall be open for inspection by any member of the public. G. Each member of the board shall be entitled to such compensation as may be set by the City Council by ordinance to be paid entirely from filing fees paid to the City. H. The City Manager shall designate an employee who shall serve as the secretary of the board. The City Clerk shall be responsible for the maintenance of all its permanent records. I. Three members of the board shall constitute a quorum. Three affirmative votes are required for a decision, including all motions, orders and rulings of the board. 9.50.050 Powers of the rent review board. Within the limitations provided by law, the rent review board shall have the following powers: A. To meet as such times as may regularly scheduled by the board, or from time to time at the call of the chairman to herein determine the petitions filed hereunder at the request of the City Manager, or otherwise to conduct the business of the board. All meetings shall be conducted at City Hall in the City of Palm Desert. B. To appoint and designate hearing officers for the conduct of evidentiary hearings to be conducted hereunder. C. To receive, investigate, hear and determine petitions of landlords for hardship adjustment of rent pursuant to Section 9.50.060 of the Code of the City of Palm Desert. IXAU D. To make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary to carry out their duties. E. To authorize an increase in the maximum amount of rent otherwise permitted to be charged by a mobile home park owner pursuant to this ordinance. Such authoriza- tion shall be given where the board finds that the applica- tion of the ordinance apart from such authorized increase, results or would result in undue hardship to the mobile home park owner or would prevent a mobile home park owner from obtaining a just and reasonable return on the mobile home park owner's property. In determining whether a hardship rent increase should be authorized, the board may consider, among other relevant factors, increased cost to the mobile home park owner attributable to increases or decreases in master land and/or facilities lease rent, utility rates, property taxes, insurance, advertising, government assess- ment and fees, incidental services, normal repair and maintenance, capital improvements, upgrading and addition of amenities :r services, net operating income, as well as just and reasonable return on the mobile home park owner's property. E. To adopt, promulgate, amend or rescind administrative rules to effectuate the purposes and policies of the ordinance. E. To maintain and keep at City Hall, rent review hearing files and dockets listing the time, date and place of hearings, the parties involved, the address involved and the final disposition of the hearing. G. To recommend to the City Council the adoption of a fee schedule setting such fees and charges as appear necessary or desirable to defray in whole or in part the costs of administration of the board and conduct of its assianed duties. 9.50.060 Maximum rent. Except as otherwise provided in this chapter, the maximum rent for each mobile home space that management of a mobile home park shall request, demand or receive shall not exceed three-quarters (3/4-ths) of the increase in the cost of living as indicated in the Consumer Price Index. Said increase shall initially be calculated from the monthly space rent charged on April 28, 1983 and shall be determined based upon the latest available Consumer Price Index for the twelve (12) month period preceding the date of the rate increase. No mobile home park owner shall be entitled to more than one such rent increase in any twelve (12) month period. No mobile home park owner shall increase any rent in excess of the above set forth allowable increase, unless and until the mobile home park owner obtains: 1. A judicial declaration that such increase in rent is necessary under this section; or 2. A hardship adjustment is granted by the rent review board as provided herein. 5-� 9.50.070 Initiation of review and hearing process. A. A mobile home park owner or any representa- tive of the mobile home park owner, operator or manager of a mobile home park space affected by the ordinance, upon payment of such filing fee as shall be duly established, may petition the board for a hardship increase of the maximum rent permitted to be charged pursuant to the ordinance. If the board shall designate a form for the filing of such petition, such petition shall be filed upon such form. If no such form shall be designated, such petition shall be in writing, verified by the applicant and shall contain the name, address and telephone number of the applicant; the name and address of the resident of each mobile home space which would be affected if the petition were granted; a statement of the facts giving rise to the petition for hardship increase, in sufficient detail that if established, such facts would demonstrate the existence of a hardship upon the mobile home park owner warranting such hardship increase; a statement that a copy of the petition has been served upon or mailed to each resident of a mobile home park space which would be affected by the hardship increase if granted. B. Any resident of a mobile home park or a mobile home park owner, affected by the ordinance, upon payment of such filing fee as shall be duly established, may petition the board for an interpretation of the ordinance, for a determination of whether a particular course of action, either proposed or actual, is legal, valid and within the terms of the ordinance. If the board shall establish forms for such petitions, the petition shall be prepared and submitted upon such form. In the absence thereof, the petition shall contain the name, address and telephone number of the person requesting the interpretation or opinion, the name address and telephone number of the mobile home park owner, manager or other person authorized to represent the mobile home park owner, and the name, address and telephone number of any other residents of mobile home space of individuals requesting such determination; a brief statement of the facts giving rise to the request for for interpretation or determination. C. In the event that a petition is filed, the petitioner shall serve a notice of the filing of same. If said petition is by management, service shall be on each tenant within the mobile home park in a form provided by the City; of said petition is by a tenant or tenants, service of a notice of the filing of the same shall be on management. D. Within twenty (20) days after the filing of the proof of service of the notice under the preceding sections, the opposing party may file opposition. E. The hearing officer shall establish a date for hearing, giving notice to all parties thereof and shall promptly consider and decide all petitions filed pursuant to this chapter. The matter shall be considered and decided in the order filed. The party filing any petition shall deposit with the City of Palm Desert the estimated cost as estimated by the City Manager to the City of all costs to the City, including without limitation the cost of the meeting of the rent review board, the full cost of conducting the hearings as herein provided, the cost of the hearing officer, and the cost of preparation of any record. In the event the funds so deposited exceed the City's cost, any excess shall be refunded to the parties so depositing ri the same and any deficiency must be agreed to be paid by such party. Additional deposits may be required to cover costs when it is determined that the initial deposit is not sufficient to satisfy the same. In the event such deposits, when required, are not made in a timely manner, the petition shall be deemed withdrawn and the proceeding terminated. E. The hearing officer shall consider all relevant facts presented at the hearing and may require additional information to be presented by the manager or others to determine what adjustments, if any, should be made. F. For any contested hearing, if there is more than one party on a side, the hearing officer may require the parties on one side to designate a representative to receive service of notices, papers and documents with respect to the same, and after such designation, the service on the representative so designated shall be deemed to be giving service to all such parties on that side. G. In the event of any contested hearing, each tenant in the affected mobile home park shall be mailed a notice of the time and place of the commencement of the hearing and the possible effect upon his or her rent. Said mobile home nark tenants shall be given a chance and an opportunity to be heard at the contested hearing. No further notice shall be required to be given under this chapter for any continuances of the hearing. H. All meetings and hearings shall be open to the public and notice thereof given as required by law. Meetings shall be held as necessary to hear and decide petitioners. t I. The City Manager shall notify the petitioning party filing of an opposition on receipt thereof and as soon as possible thereafter shall notify both parties of the time, date and place of hearing. J. Upon receipt of a valid petition pursuant to this chapter, the rent review board, unless it conducts the hearing itself under the provisions of this section, shall refer to he opposition and the petition to a hearing officer who shall conduct an evidentiary hearing upon the petition. At the evidentiary hearing, the hearing officer shall take all evidence and may require any party to the proceedings to provide him with pertinent books records, papers, etc. In furtherance of this power, the hearing officer may request the City Council to issue a subpoena for the same if they are not voluntarily produced, or he may take a refusal to produce the same as evidence, that such evidence, if produced, would be adverse to the party refusing to produce the same. K. The management may substitute for any books, records and papers, a certified audit by an independent certified public accountant using generally accepted accounting principles consistently applied or a verified statement under oath by an independent certified public accountant of what the information sought from such books, records and papers consist of. Notwithstanding this Paragraph 'K', the hearing officer may require production of the books records and papers. L. The hearing officer shall rule upon the admissibility of all evidence at the evidentiary hearing and shall have the power and authority to conduct the evidentiary hearing in all respects. -7- M. The hearing officer shall keep detailed notes of the evidence produced and provide for recording of all of the testimony presented at the evidentiary hearing. N. The evidence presented at the evidentiary hearing shall constitute the exclusive record for the decision of the issues involved. 0. At the conclusion of the evidentiary hearing, the hearing officer shall prepare a summary of all testimony and evidence admitted at the evidentiary hearing, a statement of all materials officially noticed and prepare proposed findings of fact and a recommended decision to the rent review board and shall promptly submit the same to the rent review board, along with copies of all documentary evidence received. Copies of the hearing officer's summary, matters officially noticed and proposed findings and recommendation for decision shall be mailed to all parties participating in the hearing. The hearing officer's proposed findings and recommended decision shall become the final findings and decision of the rent review board within fifteen days after the filing of the same with the clerk for the revent review board (i.e., the City Clerk) without further action of the board unless any party participating in the hearing shall file a petition to review the hearing officer's proposed findings and determination with the clerk of the rent review board. P. Upon receipt of the hearing officer's summary, proposed findings, official noticed material and recommendations, and the documentary evidence admitted in the proceedings and a petition to review filed pursuant to Paragraph '0' of this section, the rent review board shall hear arguments by the parties based upon the material submitted to it by its hearing officer. Any party at a proceeding may also have prepared, at his expense, a transcript of the hearing to be presented to the rent review board. No further evidence shall be permitted nor allowed at the hearing before the rent review board, but it shall be based solely upon the materials presented to the hearing officer at the evidentiary hearing. Q. 1. At the conclusion of the hearing on the proposed findings and recommended decision of its hearing officer before the rent review board pursuant to Paragraph 'P' of this section, the board shall act within thirty (30) days after the date of the hearing; a. Accept and confirm the recom- mendations of the hearing officer and adopt his findings and recommendations; or b. Amend the findings and recom- mendations of the hearing officer; or c. Send the matter back to the hearing officer for further hearings on the issue pursuant to any instructions provided by the rent review board. -8- • 2. Upon issuing the findings of fact, pursuant to Subparagraphs l(a) or l(b) of this Paragraph 'Q', the rent review board shall render its final decision. The final decision shall be final and conclusive upon all parties. The final decision by the board may include a provision equalizing the rents among all of the tenants of the mobile home park based upon the location size, and improvements supplied by management of each mobile home site, notwith- standing any previous disparity between rents charged on equivalent mobile home sites. Any tenant whose rents will be so equalized upwards shall be given special notice of the same and a chance to be heard. R. Any order of the rent review board shall, unless otherwise specified in its final decision, be effective as of the date thirty (30) days after the filing of the petition for adjustment. S. Any party to a hearing may be assisted by attorneys of the party's choice. T. No member of the rent review board may participate in the hearing or decision concerning a mobile home park in which he resides or has a financial or management interest. U. The rent review board shall keep minutes of its meetings and make an official record of a hearing. V. Decisions of a rent review board shall be supported by a preponderance of the evidence. W. The evidentiary hearing need not be conducted according to technical rules relating to evidence and witnesses. Any relevant may be admitted if it is in the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil actions. X. The rent review board may in its final decision direct the prevailing parties' cost in these proceedings, including anyfunds paid to the City pursuant to the provisions of this section, shall be reimbursed by the losing party. Such an order for costs maybe enforced by a court of law of appropriate jurisdiction. In the event that the rent review board determines that any petition or opposition is frivolous, it may award reasonable attorneys' fees to the other party or parties. Y. The rent review board or its hearing officer may spread anyretroactive rent adjustment under Paragraph ' R' of this section over several months of future rent. 9.50.080 Agreements. Nothing in this chapter shall operate to restrict the right of a tenant and management to enter into agreements providing for a fixed term and/or a fixed rent for mobile home tenancies. 9.50.090 Enforceability. In the event of a violation by the management of a mobile home park of any maximum rents, an effective rent schedule, or a final decision and order of the rent review board relief for such a violation shall be enforceable by the individual tenants of that park in a court of the appropriate jurisdiction in which injunctive relief may be granted and damages shall be allowed for any rent paid in excess of the effective rent schedule or any final determination of the rent review board. In any such court proceeding, the prevailing party shall be awarded his reasonable attorney's fees and the court, where applicable, shall be empowered to order treble damages for anyrents charged in excess of any effective rent schedule, maximum rent, or in violation of the final decision of the board (i.e., three times any excessive rent or overcharge). 9.0S0.100 Limitation of action to attack a final decision - Order of the rent review board. Any action or proceeding to attack, review, set aside, annul or void a final decision and order of the rent review board, or reasonableness, legality or validity of any provision or condition attached thereto, shall not be maintained by any person unless such action or proceeding is commenced and service of the summons is effected within ninety (90) da-ys of the filing with the City Clerk of the final determination and order and notice of the same has ben given to the City Clerk. 9.50.110 Negative declaration. A negative declaration of environmental impact is hereby approved. 9.50.120 Termination. This chapter shall remain in effect until April 28, 1986, unless extended by the City Council. 9.50.130 Retaliation. No mobile home park owner shall in any way retal- iate against any resident for the resident's assertion of, or exercise of any right under this ordinance. Such retaliation shall be subject to suit for actual and punitive damages, injunctive relief and attorney's fees. Such retaliation shall also be an available defense in an unlaw- ful detainer action. In any action in which such retaliation is an issue, the burden shall be on the mobile home park owner to prove that the dominant motive for the act alleged to be in retaliation was in fact other than retaliatory. 9.50.140 Termination of services. No mobile home park owner shall reduce or eliminate any service to any mobile home space so long as this ordinance is in effect, unless and until a proportionate share of the cost savings resulting from such reduction or elimination is passed on to the resident in the form of a decrease in space rent. If a mobile home park owner who provides services to a mobile home space in the nature of utility services, shall reduce or eliminate such service by separate metering or other lawful means or transferring from the mobile home park owner to the resident -10- the obligation for payment for such services, the cost savings, if any, resulting from such reduction or elimination to be passed on to the resident in the form of a decrease of rent, shall be deemed to be the cost of such transferred utility service for the month of April, 1983. If for any reason the utility bill for such service for the month of April, 1983, is not representative of the normal or usual cost of such utility service at that time, or if either mobile home park owner or resident shall protest the use of the April, 1983 billing as the measure of such cost savings, then the computation of such cost savings shall be based upon the average monthly charge for such service for the period of March, 1982, through April, 1983, inclusive, or such other period as the parties shall mutually agree is representative of such cost savings. For the purposes of this section in determining cost savings to be passed on to the resident in the form of decreased rent, the cost of installation of separate utility meters, or similar or analogous costs to the mobile home park owner to shift the obligation for payment of utility costs to the resident, shall not be considered. Nothing stated herein shall be construed to prohibit or prevent the consideration or inclusion of such costs, together with other operational costs of a mobile home park owner, in any proceedings before a duly appointed board, commission or other appointed body, authorized to hear and determine requests for hardship adjustments." SECTION 2. The City Clerk shall certifying to the passage and adoption of this ordinance and shall cause the same to be published once in a newspaper of general circulation printed, published and circulated within the City of Palm Desert and the same shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED and ADOPTED this 23rd day of June, 1983, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: SHEILA R. G�IGAN, C City of Palm Desert,/t Councilmen Kelley, Snyder, Wilson and Puluai. Councilwoman Jackson. None. None. i 0 EO S . PULUOI , Mayor City of Palm Desert, California Clerk ifornia -11-