A park owner may request approval of a rent adjustment based on capital improvements or emergency capital improvements in accordance with this section.
A. General Procedures.
1. An application for a rent increase based on the cost of a completed capital improvement may be filed with the rent administrator. It shall be approved if it satisfies the definition of capital improvement set forth in Section 15.20.020 and the criteria set forth in the capital improvement guidelines and as set forth in the administrative rules adopted by resolution of the city council; the park owner has provided documentation to demonstrate that prior to the completion of the proposed capital improvement, the park owner met with the park residents and considered input from the park residents regarding any proposed capital improvement; the park owner held a capital improvement ballot election (see sample "Election Ballot Form" in Exhibit A attached to the ordinance codified in this section and incorporated by reference), in an attempt to gain fifty-one (51) percent approval of the occupied rent controlled spaces, with one vote per space having consented to the proposed capital improvement in one of the following methods: (a) at the noticed resident meeting; or (b) ballot mailed via certified mail/return receipt requested to each rent controlled space. Documentation of the meetings with the park residents shall include, but is not limited to, notice of meeting between the park owner(s) and residents, resident attendance sign-in sheets, official minutes from the meeting, a summary of each of the bids or proposals received and a written explanation from the park owner explaining the reasons for the selection of the contractor, and election ballot form(s). The summary shall include sufficient detail for the park residents to understand the nature and extent of the proposed work and the costs to be incurred therein. If the owner proposes to perform the capital improvement with his or her own labor, the summary provided to the residents shall include an explanation of the proposed work and costs. An increase application which meets all other requirements of this subsection but has not been consented to by fifty-one (51) percent of the occupied spaces may be granted when the improvement is necessary to protect the health and safety of the park, its residents and/or its neighbors. The requirement for the resident meeting and capital improvement ballot election shall not apply to improvements that qualify as emergency capital improvements in accordance with subsection B. Any increase granted under subsection A shall remain in effect only during the useful life of the improvement. Any such increase shall not be included as part of the monthly space rent but shall be itemized as a separate charge on the residents' monthly rent statement. Regulations for implementing subsection A shall be set forth in the administrative rules adopted by resolution of the city council.
2. Upon receipt of the application, the rent administrator shall review the application and determine whether it is complete in accordance with Section 15.20.105. A rent increase application filed under this subsection shall be granted or denied within thirty (30) days of receipt of a complete application and written notice of the determination by the rent administrator shall be mailed to the applicant and affected residents within that thirty (30) day period. If the rent administrator determines that an application is incomplete, written notice that an application has been determined incomplete and the reasons for that determination shall be given to the applicant by the rent administrator within thirty (30) days of receipt of the application. A written determination to grant a requested increase or a modified increase shall specify the duration and amount of the monthly rent adjustment granted. If a modified increase is granted, the written determination shall specify the reason for the modification. If an increase is denied, the written determination that the application has been denied shall specify the reasons for the denial. All written notifications shall be issued in accordance with Section 15.20.105(E).
B. Emergency Capital Improvements. The rent administrator may approve a capital improvement rent adjustment for emergency capital improvements, as defined Section 15.20.020 and in this subsection, even if the park owner did not hold a resident meeting and capital improvement ballot election prior to completion of the capital improvement, only upon the terms set forth in this subsection and the administrative rules. The purpose of this subsection is to allow the park owner an opportunity to seek approval of a capital improvement rent adjustment application in those situations in which compliance with the resident meeting and capital improvement ballot election procedures is not feasible or possible due to an imminent threat to public health and safety resulting from an emergency event which damages the park.
1. Approval shall not be granted for a rent adjustment based on emergency capital improvements unless the rent administrator finds that all of the following requirements are met:
a. The work meets the definition of an emergency capital improvement; and
b. There was no time to hold a resident meeting and capital improvement ballot election prior to carrying out the emergency capital improvements due to the need to immediately prevent or correct the imminent threat to public health and safety of the park, its residents and/or its neighbors; and
c. The park owner commenced construction of the emergency capital improvement not later than two weeks (fourteen (14) days) after the event constituting the emergency and completed the improvements as expeditiously as possible. "Commencement of construction" means that within two weeks of the emergency event, the park owner obtained signed contracts with contractors, builders and other third parties necessary to carry out the emergency capital improvements, obtained necessary permits and commenced substantial physical construction on the improvements. If physical construction did not actually begin within the two-week period, the city may find that the park owner commenced construction within the required two-week period if the park owner provides documentation establishing that within the two-week period all of the following were met: (i) the park owner obtained signed contracts for construction, (ii) the park owner obtained (or applied for and made reasonable efforts to obtain) all necessary permits, (iii) the park owner established a firm date for the commencement of construction, (iv) construction actually commenced in accordance with that time schedule, and (v) construction proceeded in an expeditious manner and was completed prior to submittal of the application; and
d. The application for a capital improvement rent adjustment based on emergency capital improvements is submitted to the city: (i) within one month (thirty (30) days) of completion of the improvements, or (ii) within four months from the date of occurrence of the emergency, whichever occurs later. In no event shall an application for a rent adjustment based on emergency capital improvements be submitted more than six months after the occurrence of the emergency except as otherwise provided in the administrative rules.
2. Any increase granted under this subsection shall remain in effect only during the useful life of the emergency capital improvement. Any such increase shall not be included as part of the monthly space rent but shall be itemized as a separate charge on the residents' monthly rent statement.
C. Application for Approval of Capital Improvement Rent Adjustment following Denial of Emergency Capital Improvement Adjustment Application. If the city issues a final decision denying a park owner's application for a rent adjustment based on emergency capital improvements because the city finds that the work does not constitute an emergency capital improvement as defined in Section 15.20.020, or because the park owner failed to comply with the time deadlines set forth in subsection (B)(1)(c) or (B)(1)(d), the rent administrator shall not approve a subsequent capital improvement rent adjustment application based on the same work unless the park owner conducted a resident meeting and a capital improvement ballot election and either: (1) fifty-one (51) percent of the residents approved the improvement; or (2) the improvement was necessary for the health and safety of the park, its residents and/or its neighbors, as provided in the administrative rules. As used in this subsection, a "final decision" means either of the following: (1) a decision that becomes final due to the failure of the park owner or resident to file a timely appeal from the rent administrator's decision denying the emergency capital improvement rent adjustment application; or (2) a decision of the hearing officer denying the emergency capital improvement rent adjustment following a timely appeal of the rent administrator's decision on such application.
D. Exclusion of Capital Improvement Costs from Special Rent Adjustment Applications.
1. Costs incurred for capital improvements or emergency capital improvements shall not be included as operating expenses in an application for an MNOI rent adjustment or a rent adjustment based on a readjusted 1987 NOI under Section 15.20.100(A) or (B). If a park owner includes expenses for capital improvements or emergency capital improvements in any such application, those expenses shall be processed and heard as a separate capital improvement rent adjustment application under subsection (A)(1) and (2) and the administrative rules. The city shall not approve a separate capital improvement rent adjustment unless such an application meets all requirements of subsection (A)(1), except that if the park owner held the resident meeting and capital improvement ballot election but did not obtain at least fifty-one (51) percent resident consent, the city shall not approve the application unless the city determines that the work qualifies as an improvement necessary for the health and safety of the park, its residents, and/or its neighbors and complies with all other requirements of subsection (A)(1) and (2) and the administrative rules.
2. Costs incurred for capital improvements shall not be included in a special rent adjustment application for a fair return under Section 15.20.100(C) except as expressly provided in the administrative rules. The requirements for a resident meeting, capital improvement ballot election and majority resident consent shall not apply to capital improvements submitted as part of a special rent adjustment application under Section 15.20.100(C).
E. Appeal of Rent Administrator Decision. Any decision of the rent administrator on the merits of a capital improvement rent adjustment or emergency capital improvement rent adjustment application pursuant to this section may be appealed to the Hearing Officer by filing an application for appeal within ten days of the date the rent administrator's written determination is mailed to the affected park owner and residents. Except as otherwise provided in this subsection, appeals shall be filed, processed, and determined in accordance with Sections 15.20.105 and 15.20.110 and the administrative rules adopted by resolution of the city council.
(Ord. 422 § 1, 2023; Ord. 351 §§ 2, 3, 2016; Ord. 311 § 5, 2011; Ord. 255 §§ 9, 10, 11, 2007; Ord. 214 § 3, 2002; Ord. 193 § 8, 1999: Ord. 161 § 7, 1996: Ord. 152, 1996; Ord. 140, 1995; Ord. 126 § 7, 1994)