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O 448 C.S. .. ..~. ORDINANCE NO. 448 C.S. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING THE MOBILE HOME RENT STABILIZATION ORDINANCE, ~ITLE 5, CHAPTER 16 OF THE MUNICIPAL CODE TO INCLUDE VACANCY CONTROL AND TO ESTABLISH A MOBILE HOME RENT REVIEW BOARD WHEREAS, tenants in mobile home parks desiring to sell their mobile homes have had difficulty finding buyers because, upon a change of occupancy, the park owner was able to raise the rent without regard to the city's rent stabilization ordinance; and WHEREAS, tenants have disparate rent payments depending on when they purchased their mobile homes. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The Mobile Home Rent Stabilization ordinance, Title 5, Chapter 16 of the Arroyo Grande Municipal Code, is amended as set forth in Exhibit A attached hereto and incorporated herein by reference. SECTION 2. This ordinance shall become effective thirty (30) days after the date of its adoption, and within fifteen (15) days after its adoption, it shall be published once, together with the names of the Council Members voting thereon, in a newspaper of general circulation within the city. On motion of council Member Smith , seconded by council Member Dougall , and on the following roll call vote, to.wit: . AYES: Council Members Smith, Dougall, Moots, Gallagher. and Mayor Millis NOES: None ABSENT: None the foregoing Ordinance was passed and adopted this 28th day of July , 1992. . ATTEST: a.~ VIS, CITY CLERK APPROVED AS TO FORM: . ~. ---.-.-.. . ATTORNEY I, NANCY A. DAVIS, city Clerk of the city of Arroyo Grande, County of San Luis Obispo, state of California, do hereby certify under penalty of perjury that the foregoing ordinance is a true, full and correct copy of said ordinance passed and adopted at a regular meeting of said council on the 28th day of July , 1992. WITNESS, my hand and the Seal of the city of Arroyo Grande affixed this 4th day of August , 1992. ~a.~ NANCY A. D IS, CITY CLERK . . OR~INANCE NO. 448 C.S. EXHIBIT A The following sections of Title 5, Chapter 16 of the Arroyo Grande Municipal Code are amended, repealed or added as follows: See, 5-16.01. Findinas and Declaration of Purcose. (k) In Ootober, 1989, oontrary to past praotices, the City council of Arroyo Grande interpreted the Rent Stabilization ordinanoe not to prohibit increases in rent upon a ohange in occupancy. Based on suoh interpretation, several mobile home park owners did institute substantial inoreases in rent charged to the new tenant when a mobile home was sold or ocoupancy changed. such inoreases have led to inequities in that tenants similarly situated in th~ same mobile home park are paying substantially different rents, with new rents sometimes being nearly twice the amount of other rent in the park. (1) This council finds that the above interpretation allowing decontrol of rent upon vacancy has led to unfair and unreasonable rent increases causing a hardship on tenants and making it difficult for tenants to sell or transfer their mobile homes. (m) This Council further finds that provisions allowing annual rent increases together with the provisions allowing rent increases upon a showing of necessity pursuant to the hardship exemption, protect the park owner's right to a fair retu:>::,n on investment, thus eliminating the need for rent increases upon vacancy. . ....... (n) This Council finds that is necessary" to now adapt provisions to reduce the inequities in rent to those who purchased their mobile homes after the adoption of ordinance No. 345 C.S. (June 13, 1986) and incurred large rent increases by reason of the change in occupancy. Sec. 5-16.04. Limitations on Rent Increases. (a) One Rental Increase Per Year. (3) If a rent increase has been established after the adoption of Ordinance No. 345 C.S. (June 13, 1986) by reason of a change in oocupancy whioh increased the rent for any space more than eight percent (8%) greater than the rent for similar spaces in the same park, then the rent for such space shall be frozen and not subject to the annual rent increases. Suoh rent may be increased annually pursuant to paragraph (a) (I) hereinabove in conjunction with other similar spaoes in the park only after the rent on such space is not more than eight percent (8%) greater than fifty percent (50 %) of all similar spaces in the same park. Rent for such spaces may be increased pursuant to Sec. 5-16.04 (e) in an equitable manner as allowed by the Mobile Home Rent Review Board. ( (d) Rent control remains with chanae of OCCUDancv. Upon a change of occupancy of any space in a mobile home park, the rent shall remain oontrolled; provided, however, in the event the park owner believes he is unable to obtain a reasonable return on his investment without an increase in rent for that space, taking into consideration his income and expenses on ~he entire park, he may apply to the Mobile Home Rent Review Board for a hardship exception pursuant to section 5-16.04 (e) below. However, the park owner or any affected tenant may appeal to the city council the decision of the Mobile Home Rent Review Board. (e) Hardship Exception. Management which has been required to make unanticipated and . . . . ORDINANCE NO. 448 C.S. PAGE 2 OF EXHIBIT A unusual expenditures of such substantial amounts that it will be unable to make a reasonable profit and return on the property involved, may petition the Mobile Home Rent Review Board for a rental increase in addition to the maximum in9rease permitted by Sec. 5-l6.04(b) above. Sec. 5-16.06. Mobile Home Rent Review Board - Established - Members - Term~ (a) There is established a Mobile Home Rent Review Board consisting of five members as follows: one Council Member, one mobile home park owner, one mobile home owner who is a tenant in a mobile home park, and two persons not conneoted with mobile homes or mobile home parks. Members of the Mobile Home Rent Review Board sha11.be confirmed by vote of the Council, after nomination by the Mayor, and serve at the pleasure of the City Council. (b) The city Manager shall appoint a staff member to be liaison and secretary to the Board. The secretary shall maintain an accurate pUblic record of the activities and official actions of the Board. (c) Board members shall not be compensated for their services as such, but may receive reimbursements as provided by the city budget for traveling and other expenses incurred while on official duty. (d) Members of the Board shall serve for a period of three (3) years commencing with the effective date of, this ordinance. The term of two (2) members shall expire on June 30, 1994, and every three (3) years thereafter: the term of two (2) members shall expi~e on June 30, 1995, and every thre~ (3) years thereafter. The term of the member who is a Council Member shall coincide with that member's term on the city Council. Sec. .5-16.07. Codification: Violation A Misdemeanor: Alternative civil Enforcement. (c) At the sole option of the city Council, after reviewing the recommendations of the Mobile Home Rent Review Board, the city may also enforce the provisions hereof through nuisance abatement or other civil proceedings deemed appropriate by the Council. ---.......---.-.,,-