(A) Eligibility. A mobile home park owner may petition the city for an adjusted space rent increase in addition to the permissive annual increase set forth in § 5.80.080 by following the procedures in this section. A mobile home park owner shall be eligible for an adjusted space rent increase pursuant to this section upon a showing by a preponderance of the evidence that the requested adjusted space rent increase is necessary to provide the mobile home park owner with a fair return.
(B) Adjusted space rent increase petition. A mobile home park owner shall submit a petition for a proposed adjusted increase in rent. Such petition for review shall be filed with the City Manager, or their designee. The petition shall include a detailed explanation of the need for the increase, the names and addresses of the tenants affected, and shall be under penalty of perjury. The petition shall be accompanied by a processing deposit equal to $1 per space subject to the chapter to cover the cost of preparing the petition for review. Any actual cost of review in excess of the deposit shall be invoiced in advance by the city to the mobile home park owner and shall be paid within 30 days. Until such invoice is paid, the processing of the petition will be paused. In the event the deposit fee exceeds the actual costs of review of the petition, the amount of the deposit in excess of the costs of review shall be returned to the mobile home park owner.
(C) Notice of hearing. The City Manager shall serve by mail notice of the date, time and place of hearing to the mobile home park owner and to each affected tenant.
(D) Hearings. All hearings on petitions submitted pursuant to this section shall be conducted by a hearing officer appointed by the City Manager in an informal manner consistent with due process of law. All parties to the hearing may have assistance in presenting evidence or in setting forth by argument their positions from an attorney or such other persons as may be designated by said party. The hearing may be continued by the hearing officer from time to time as may be reasonable and necessary. The hearing officer shall have the authority to administer oaths and affirmations, and to render a final decision on the merits of the application, subject to the provisions of this chapter.
(E) Burden of proof. The decision of the hearing officer must be supported by the evidence submitted at the hearing. The petitioning party shall have the burden of establishing its entitlement to the adjusted space rent increase sought by the petition by a preponderance of the evidence. It shall be presumed that the net operating income (NOI) produced during the base year provided a fair return. The petitioner may rebut such presumption by presenting evidence to the hearing officer that the base year's operating expenses were unusually high or low, or that the NOI for that year did not provide a fair return.
(F) Factors for consideration. The hearing officer shall evaluate any request for an adjusted space rent increase based upon, but not limited to, the following factors:
(1) Changes in the CPI, to the extent not already encompassed in the permissive annual increase set forth in § 5.80.080.
(2) The rent lawfully charged for comparable mobile home spaces in the city.
(3) The length of time since the last ruling on a petition pursuant to this section or the last increase in space rent if no previous petition has been submitted.
(4) The completion of any capital improvements or rehabilitation work related to the mobile home space or spaces identified in the petition and the cost thereof, including materials, labor, construction interest, permit fees, and other items the hearing officer deems appropriate.
(5) Changes in property taxes or other taxes related to the mobile home park.
(6) Changes in the rent paid by the petitioner for the lease of the land on which the mobile home park is located.
(7) Changes in the utility charges for the mobile home park paid by the petitioner, and the extent, if any, of reimbursement from the tenants.
(8) Changes in reasonable operating and maintenance expenses.
(9) The need for repairs caused by circumstances other than ordinary wear and tear.
(10) The amount and quality of services provided by the applicant to the affected tenant(s).
(11) Any existing rental agreement lawfully entered into between the petitioner and the affected tenant(s).
(12) The applicability of any state law requirement on allowable space rent increases, including but not limited to Cal. Civil Code § 1947.12, as amended.
(G) Decision. The decision of the hearing officer shall be given in writing to all parties. The findings and conclusions of the hearing officer shall be final and there shall be no right of appeal to the City Council.
(H) Appeal to court. An appeal of the findings and decision of the hearing officer may be made to a court of competent jurisdiction pursuant to Cal. Code of Civil Procedure §§ 1094.5 and 1094.6.
(I) Collection pending hearing. Following a mobile home park owners' submission of a petition, the mobile home park owner may collect the full amount of the adjusted space rent until the hearing officer makes a final decision on the merits, unless otherwise agreed upon by the affected tenants and mobile home park owner in writing. If the hearing officer denies the petition in whole or in part, any increased space rent collected from tenants in violation on this chapter, in an amount determined by the hearing officer, shall be returned to the affected tenants along with the interest thereon computed at the current legal rate of interest on a judgement. This division does not authorize a mobile home park owner to collect retroactive increased space rent if a petition is granted.
(Ord. 2023-366, passed 3-1-2023)