Commencing in calendar year 1990, park owners shall be entitled to the following annual adjustments.
A. Permissive Adjustment - A park owner shall be entitled to an annual permissive adjustment of gross space rental income equal to eighty percent (80%) of the percentage adjustment in the CPI from the date of the most recent initial or annual adjustment to the date of application for the proposed adjustment.
B. Net Operating Income Adjustment
1. In the event a park owner believes he or she does not receive a just and reasonable return on park property after receiving the maximum permissive adjustment provided for above, said park owner may upon payment of a filing fee established by resolution of the Mayor and City Council, file an application with the City Manager for an adjustment of the space rent ceiling, providing adequate justification for the proposed increase.
2. If the City Manager 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 names, address and telephone number of the applicant, the name and address of the tenant of each rental space which would be affected if the petition were granted, a statement of the facts giving rise to the petition for a Net Operating Income (NOI) adjustment in sufficient detail that if established, such facts would demonstrate the existence of a decrease in the NOI warranting such NOI adjustment. Within thirty (30) working days after the petition has been submitted to the City Manager for filing, petitioner shall be given notice of the time and place of the hearing, which notice together with a copy of the petition shall be served upon or mailed to each tenant of a rental space which would be affected by the NOI adjustment if granted. When a declaration of service has been submitted to the City Manager, the petition for an NOI adjustment shall be deemed filed.
3. A park owner shall be entitled to an adjustment of the space rent ceiling so as to enable the park owner's Net Operating Income (NOI) for the subsequent year to be increased by a rate which, when added to the maximum permissible adjustment provided for above will give the park owner a just and reasonable return on park property.
C. Special Assessment Based on Capital Improvements.
1. An application for a special assessment based on the cost of a completed capital improvement may be filed with the City Manager pursuant to this subsection. For the purposes of this subsection "Capital Improvement" is defined as the installation of new improvements and facilities and/or the replacement or reconstruction of existing improvements and facilities which consist of more than ordinary maintenance or repairs, with a useful life of at least five (5) years, and have been agreed upon between the park owner, the resident committee, if any, and approved by more than 50 percent of the owners of all mobile-homes located within the park in an election called to consider the matter with each space casting one vote.
2. A special assessment may be granted at the discretion of the Hearing Officer considering all circumstances without approval of the homeowners if the capital improvement is necessary to protect the health and safety of the residents of the park, or to comply with governmental laws or regulations.
3. Capital Improvement Assessments shall be amortized over the useful life of the improvement as set forth in Internal Revenue Service "class life" tables then in effect, unless the Hearing Officer in his/her discretion determines that the use of such tables is unreasonable under the circumstances.
4. In addition to the cost of the improvements(s) the Assessment shall include interest at two percent over the prime rate at Bank of America in effect at the time the assessment is approved calculated annually on the unamortized cost of improvement.
5. Capital Improvement Assessments shall be apportioned equally among all spaces in the mobile-home park and shall be payable monthly, and shall be set forth by the park owner as a separate item from the space rent. The Assessment shall remain in effect until the cost of the improvement, plus interest as set forth herein, has been fully recovered.
D. No annual adjustment shall become effective if the previous annual adjustment became effective within the previous twelve (12) months unless approved by the Hearing Officer pursuant to Section 8.90.100 B.
(Ord. MC-1481, 4-14-18; Ord. MC-944, 6-08-95; Ord. MC-865, 3-24-93)