(a) The Community Development Director shall have the authority to grant rent adjustments for capital improvement and rehabilitation work subject to the procedures set forth below for a rental space or spaces located in the same park upon receipt of an application for adjustment filed by the park owner of the rental space or spaces. In the City Council Resolution No. 2021-034 regarding a list of capital improvements, rehabilitation work, and useful life categories, adopted on June 22, 2021, the City Council has defined the eligible capital improvements and rehabilitation work and their useful life categories that are approved for reimbursement to mobile home park owners. Rent increases approved under this section shall be calculated on a per space per month basis and shall be amortized over the useful life of the improvement as set forth in such Resolution and apportioned equally among the total number of rentable spaces in the park. An increase granted under this Section 5-25.08 shall remain in effect only during the amortization period of the improvement. All applications for rent adjustments to reimburse the owner for capital improvements or rehabilitation work shall be governed by the procedures and requirements of this section.
(b) General requirements. A rent increase for purposes of reimbursing a park owner for a capital improvement or rehabilitation work shall be approved, if all of the following requirements are met, and the application for said rent increase otherwise complies with the provisions of this Section 5-25.08:
(1) The expenditure has been made within five (5) years of the date of filing the application.
(2) Work for which reimbursement is requested has been performed by a licensed contractor, where required by law.
(3) The mobile home park owner submits copies of the contract for the work, cancelled checks, paid invoices, and such other documentation as may be necessary in order to verify the costs incurred for the specific work for which reimbursement is sought.
(4) Required annual meeting. Mobile home park owners shall meet with tenants at least once in each calendar year to review and discuss future capital expenditure needs and plans, as well as upcoming potential applications and for rent increases to reimburse for capital expenditures.
(c) Individual tenant space improvements. No increase shall be allowed when the improvement was limited to the interior of a tenant's rental space and said improvement was not necessary to safeguard the landlord's property from deterioration or loss in value, unless the tenant has given express written consent to said increase.
(d) Special requirements. If the rent increase application is for the purpose of reimbursing a park owner for a new improvement, or for replacement of an improvement before the end of its useful life, then the rent increase shall not be approved unless the park owner obtains approval of a majority of tenants voting on the matter in conformance with the following requirements, and also submits satisfactory evidence with the application that demonstrates compliance with said requirements:
(1) All of the tenants whose rent would be increased have been provided notice of the nature of the improvement, its total cost, the rental increase (both monthly amount and duration) that will be requested, their right to vote on the issue of whether the improvement should be eligible for a City-approved rent increase in order to reimburse the owner for its cost, and the time and manner in which an election on the matter will be held;
(2) The notice was given at least ninety (90) days prior to submittal of the application to the City;
(3) The election required by subsection (1) above has been held by secret written ballot with each space affected by the proposed increase entitled to cast one (1) and only one (1) ballot, and the ballot itself shall recite the specific information required in the notice;
(4) A majority of ballots have been cast in favor of the improvement being eligible for reimbursement through a rent increase, as attested jointly by a representative of the park owner and a representative of the tenants, based on personal inspection and count of the ballots. If the tenant representative refuses to attest to the vote, then owner may attest and submit all ballots cast along with said attestation as proof of the vote; and
(5) The mobile home park owner shall provide documentation of number of ballots cast and the names and space numbers of those persons casting ballots in the election.
(e) Special requirements exception. The special requirements set forth in subsection 5-25.08(d)(4) shall not apply to applications for a rent increase to reimburse a park owner for replacement or renovation work before the end of an improvement's useful life, if it is demonstrated to the satisfaction of the Community Development Director, City Manager, or designee, as applicable, that the work was necessary due to conditions of force majeure (floods, fire, earthquakes, or other Acts of God) or other good cause.
(f) Application filing procedure. Applications for rent adjustments under this subsection shall be submitted to the Community Development Department (Department) on forms provided for that purpose and shall be accompanied by a filing fee of Twenty and no/100ths ($20) Dollars plus Five and no/100ths ($5) Dollars per space affected by the proposed increase. The Department shall notify the applicant of its determination whether the application is complete within thirty (30) days of receipt. If the application is not complete, the Department shall identify information that is missing and required for a complete application. If the Department fails to so notify the applicant within thirty (30) days of receipt, then the application shall be deemed complete.
(g) Notice to tenants by landlord. Upon the Community Development Department determining an application is complete, or if the application is deemed complete pursuant to subsection 5-25.08(f), the landlord shall provide a notice within seven (7) days to each tenant whose rent would be increased that an application has been filed, the nature of the work for which reimbursement is sought, and the amount and duration of rent increase requested. The park owner shall make available to tenants for inspection a copy of the complete application, including all supporting information and documentation, and upon a tenant's request shall provide a copy at a reasonable direct cost of copying.
(h) Tenant opportunity to object. Tenants affected by the proposed rent increase may submit objections regarding the application to the Community Development Department, along with supporting information that evidences noncompliance with the provisions of this section and/or City Council Resolution regarding a list of capital improvements, rehabilitation work, and useful life categories (resolution number to be provided after resolution adoption).
(i) Consideration by Community Development Director. If the Community Development Director receives no objections, or no objections that are supported by evidence of non-compliance, from any tenant within thirty (30) days after the application is complete, and can make all of the findings required by Section 5-25.08(m) of this chapter, the Community Development Director may approve the application, in whole or in part, without hearing. The Community Development Director shall notify the applicant of the decision in writing no later than sixty (60) days after the application is accepted as complete or deemed complete, and the decision shall state the amount and duration of the approved increase, effective date, and recite the findings required by subsection 5-25.08(m) of this chapter, if applicable.
(j) Consideration by City Manager. Except for applications or parts thereof approved by the Community Development Director pursuant to subsection 5-25.08(i), all other appeals of applications or parts thereof that are not approved shall be decided by the City Manager, or designee. Any appeal must be requested in writing to the City Manager within fourteen (14) days of the Community Development Director's decision. The hearing shall take place no later than forty- five (45) days after the Community Development Director's written decision. The City Manager shall consider the information provided in the application, any information submitted by tenants affected by the requested rent increase, the provisions of the Resolution referenced in Section 5-25.08, and any other factors he or she deems to be relevant to the purposes of these provisions. The City Manager may provide additional procedural rules for consideration of applications under this subsection.
(k) Notice of hearing. Notice of any hearing required pursuant to this subsection shall be given by mailing at least fourteen (14) days prior to the hearing, to the applicant and to all tenants whose rent would be increased. The notice shall state the date, time, and location of the hearing.
(l) Decision of City Manager. The City Manager or designee shall render a decision on the application in writing to the park owner and Community Development Director no later than thirty (30) days after the hearing date. The City Manager's decision shall state the amount and duration of the approved increase, effective date, and reasons for the decision, and the findings required by subsection 5-25.08(m) of this chapter, if applicable. The park owner shall post a copy of the decision at the Park Office in a conspicuous location.
(m) Findings for approval. A rent increase for purposes of reimbursing a park owner for a capital improvement or rehabilitation work shall be approved, if all the following findings have been made:
(2) Landlord has given notice to tenants as required by subsection 5-25.08(g), above.
(3) The type of capital improvement or rehabilitation work and its useful life are listed in and comply with the provisions of the Resolution referenced in Section 5-25.08 above. If the particular capital improvement or rehabilitation work is not listed in said Resolution, then a determination of the useful life has been made based on similar items listed in the Resolution and/or other competent evidence.
(n) Effective date. Any rent adjustment granted under this section shall become effective after the landlord has received the decision from the Community Development Director or City Manager, or designee, as applicable, and upon providing such notice of the approved increase to tenants whose rent is adjusted pursuant to the decision as may be required by the Civil Code of California.
(o) Finality of decision. The decision of the Community Development Director or City Manager, or designee, pursuant to this Section 5-25.08, shall be final, and no appeal of that decision may be taken by any party to the Planning Commission, City Council or any other officer of the City.
(§ 2, Ord. 1254-NS, eff. January 23, 1996 as amended by Ord. 1686-NS, eff. August 19, 2021)