(A) An owner of residential real property may petition for a rent increase in excess of that provided in section 27-21 in order to obtain a fair and reasonable return on their property (“fair return petition”). Such fair return petition shall be on an application form prescribed by the city manager and shall be decided by the city manager, or their designee (“city manager”). The owner shall provide a copy of any fair return petition submitted to the city to the applicable tenant(s), and provide the city with proof of completing such service to the applicable tenant(s). The tenant(s) will then have 30 days from the date of receiving the fair return petition to reply or provide additional materials to the city in response to the fair return petition. The owner shall bear the burden of establishing that a rate increase in excess of that provided in section 27-21 is necessary to provide the owner with a fair and reasonable return on their property, including by providing an independent financial report and verified financial data demonstrating that without such an increase, they will not realize a fair and reasonable return on their property.
(B) The owner shall be responsible for all costs associated with the city’s review of the fair return petition. Upon receipt of a fair return petition, the city manager shall determine the anticipated costs of review and if the employment of expert(s) will be necessary or appropriate for a proper analysis of the owner’s request. If the city manager so determines, the city manager shall also determine the anticipated costs of employing such expert(s). The resulting figure shall be communicated to the owner, and the fair return petition shall not be processed until the owner has paid to the city the estimated cost of the complete analysis. The city will provide owner with an invoice of all costs incurred after the review of the fair return petition. Any unused portion of the advance payment for analysis shall be refunded to the owner. If additional funds are required, payment will be required before owner receives the determination on the fair return petition from the city.
(C) The factors the city manager may consider in deciding a fair return petition may include, but not be limited to:
(1) Changes in the Consumer Price Index for All Urban Consumers in the Oxnard-Thousand Oaks-Ventura Metropolitan Area published by the Bureau of Labor Statistics.
(2) The length of time since the last determination by the city manager on a rent increase application, or the last rent increase if no previous rent increase application has been made.
(3) The completion of any capital improvements or rehabilitation work related to the residential real property or mobile home space or spaces specified in the fair return petition, and the cost thereof, including materials, labor, construction interest, permit fees, and other items the city manager deems appropriate.
(4) Changes in property taxes or other taxes related to the subject residential real property or mobile home park.
(5) Changes in the rent paid by the owner for the lease of the residential real property or land on which the subject mobile home park is located.
(6) Changes in the utility charges for the subject residential real property or mobile home park paid by the owner, and the extent, if any, of reimbursement from the tenants.
(7) Changes in reasonable operating and maintenance expenses.
(8) The need for repairs caused by circumstances other than ordinary wear and tear.
(9) The amount and quality of services provided by the owner to the affected tenant(s).
(D) A fair return petition shall be decided by the city manager within 60 calendar days of the date that the application has been deemed complete, including proof of service of the fair return petition on the applicable tenant(s). The decision shall be emailed and sent by mail, with proof of mailing to the subject property owner, the owner's designated representative(s) for the fair return petition, the applicable tenant(s), and the designated representative of the tenant(s), if any. The decision of the city manager shall be final and not appealable.
(Ord. No. 3013)