O 345 C.S.
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ORDINANCE NO. 345 C.S.
A MOBILEHOME RENT STABILIZATION ORDINANCE
OF THE CITY OF ARROYO GRANDE
ADDING CHAPTER 16 TO TITLE 5
PROVIDING A FORMULA FOR MAXIMUM ANNUAL RENT INCREASES
AND PROVIDING A PROCEDURE FOR HARDSHIP EXCEPTIONS
THE CIT~ COUNCIL OF THE CIT~ OF ARRO~O GRANDE DOES ORDAIN AS
FOLLOWS:
Sec. 5-16.01- FINDINGS AND DECLARATION OF PURPOSE.
A. There is presently within the City of Arroyo Grande and
the surrounding areas a shortage of spaces for the location of
IIIObilehomes. Because of this shortage there is a very low
vacancy rate in mobilehome parks in Arroyo Grande and the
surrounding areas. Kobilehome residents could face large rent
increases and further reduction of their standard of living
without a mobilehome park rent stabilization ordinance. Senior
citizens and others on fixed incomes in particular could be
adversely affected by this situation.
B. Because of the high cost and impracticability of moving
mobilehomes, the potential for damage resulting therefrom, the
requirements currently relating to the installation of mobile-
homes, including permits, landscaping, and site preparation, and
the substantial investment of IIIObilehome residents in such homes,
this Council finds and declares it necessary to take action to
protect residents from unreasonable rent increases, while at the
same time recognizing the need of management to ~ke a suitable
profit. on the operation of IIIObilehome parks, with rental
increases sufficient to cover increased operating costs such as
repairs, maintenance, insurance, utilities, and general upkeep,
and to receive a fair return on the owner's property.
C. This Council finds that with the present low vacancy
rate and with the factors set forth in Paragraphs A and B above,
any large rent increases would be particularly hard upon and
unfair to residents of mobilehome.parks, ~ny of whom are senior
citizens and others on fixed incomes.
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D. This City Council recognizes that a rent stabilization
ordinance must be fair and equitacle for all parties, and provide
appropriate incentives for management to operate its parks
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profitably, as well as to attract additional investors for new
parks.
E. It is the intent of this Council to work with both
residents and management to obtain leases fair and equitable to
both.
F. In fairness to both the residents and the management,
this Council now desires to adopt a maximum rental increase
standard for mobilehomes which is fair and equitable to both
mobilehome residents and management.
G. This Council further finds that the County of Santa
Barbara and other nearby local agencies have utilized 75\ of the
National Consumer Price Index as the reliable indicator for' a
reasonable mobilehome park rent increase. ---.
H. In addition to the foregoing, this Council finds and
determines that it can be seen with certainty that there is no
possibility that the adoption and implementation of this
ordinance will have any significant effect on the environment.
I. This Council hereby further finds that this Ordinance is
fair and equitable to both residents and management of mobilehome
parks within the City.
J. This Council intends that the provisions hereof shall be
compatible with, and supplemental to, State regulations for -
mobilehome parks, and the Ordinance shall be interpreted and
applied consistent with State law' at all times. --<-
Sec. 5~16~62' - DEFINITIONS.
For the purposes of this Ordinance, certain words and
phrases used herein are defined as follows:
A. "Rent or Rental". The consideration, including any
bonus, benefit, or gratuity, demanded.or received in connection
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, with the use and occupancy of a mobilehome space and its
,
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ORDINANCE NO. 345 C.S.
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accompanying services, amenities, etc., in a mobilehome park, or
for the transfer of a lease for mobilehome park space and its
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accompanying services, amenities, etc., in a mobilehome park;
but exclusive of any amounts paid for the use of the mobilehome
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dwelling unit itself.
B. "Management" means the owner, lessor, operator or
manager of a mobilehome park.
C. "Resident" means any person entitled to occupy a
mobilehome dwelling unit pursuant to ownership thereof in a
mobilehome park.
D. "Rent Increase". (1) Any increase in rent as defined
above, or (2) any reduction in services, amenities, etc., in a
mobilehome park.
.._. Sec~ 5-16.03
- RESCISSION OF RECENT LEASES.
Any lease between management and any resident signed within
the ninety days previous to the enactment of this ordinance may
be rescinded at the option of either the resident or management,
if done within thirty days subsequent to the enactment hereof.
.-._. See: 5'~i6:04 - LIMITATIONS ON RENT INCREASES.
A. One Rental Increase Per Year.
(1) Management shall not impose a rent increase more often
than once in every twelve month period; no such increase
shall be retroactive. Management shall notify all
residents at least sixty (60) days prior to the
effective date of any rent increase.
(2) If a rent increase has been established in any
mobilehome park, or portion thereof, within the twelve
- months prior to the effective date of this ordinance,
the date of the most recent rent increase prior to April
1, 1986, shall establish the beginning point of said
twelve month period for the mobilehome park, or portions
thereof, affected by such prior rent increases.
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ORDINANCE No. ~C.S.
i B. Maximum Annual Rental Increase.
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Except as provided in subsection -D- below, the maximum
monthly rental increase for each space in each twelve month
period shall be the lesser of the two following amounts: --
(1) 8% of the monthly rental for the previous twelve month
period,
(2) A percentage increase over the previous year's monthly
rental equal to three-fourths (15%) of the National ,
Consumer Price Index (CPI), utilizing the -all urban
consumers- index for the Los Angeles, Long Beach and
Anaheim column for -all items-, for the preceding twelve
jIIOnth period.
Provided however, that any rent increase under this subsection
B is limited to an increase in the money paid for rent and shall
not include or refer to any decrease in services, amenities, etc.
C. Base Date For Rent Increases.
The effective date for calculating rent increases under this
ordinance shall be April 1, 1986.
Any rent increases imposed after that date in excess of the
amount authorized herein shall be rolled back as of the effective
date of this ordinance to the maximum rental amount permitted
herein, provided, however, the management shall be entitled to
enforce and retain, and shall not be required to credit or
refund, any of the excess rental increase due and owing between
April 1, 1986 and the effective date of this Ordinance.
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D. Hardship Exceptions.
Management which has been required to make unanticipated and
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 City Council for a rental increase in
addition to the maximum increase permitted by Section IV-8 above.
The petition shall be set for public hearing by the Council,
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ORDINANCE No. 345 C.S.
and the burden. of proof shall be on management. The City shall
give written notice of said hearing to the residents and to the
management involved at least thirty (30) days prior to the
hearing. Any relevant evidence may be presented by management in
support of its claim, provided, however, that all such evidence
must be given to (1) the City Manager and (2) a recognized
association for the residents in the affected mobilehome park, at
least ten (10) days prior to the hearing for purposes of analysis
and rebuttal.
The Council shall have full and sole discretion to grant all,
part, or none of the requested increase; provided that the Council
shall make formal findings as to the reasons for its decision.
....'See:' 5-16:05 - PROHIBITIONS, DUTIES AND RIGHTS.
A. No owner shall demand, accept, or retain more than the
maximum rent. permitted by this ordinance, and no owner shall
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effect a prohibited rent increase' through the reduction of
services, amenities, etc.
B. Owners shall keep detailed records concerning the
monthly rents and rent increase dates for all spaces in the
mobilehome park. Such records shall be available for inspection
by the City during business hours.
C. Evictions.
No owner shall bring any action to recover possession of a
space subject to the provisions of this Ordinance unless:
(1) The Resident has violated an obligation or covenant of
her or his tenancy other than the obligation to
surrender possession upon proper notice and has failed
.- to cure such violation after having received written
notice thereof from the landlord;
(2) The Resident is committing, or permitting to exist, a
nuisance on, or is causing substantial damage to, the
space, or is creating a substantial interference with
the comfort, safety Or enjoyment of the owner or other
occupants of the mobilehome park)
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i ORDINANCE NO. 345 C.S.
i (3) The Resident is convicted of using or permitting the
space to be used for any illegal purpose,
(4) The Resident has refused the owner reasonable access to
the space for the purpose of'making necessary repairs or
improvements required by the laws of the United States, .-
, the State of California or any subdivision thereof, or
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for the purpose of inspection as permitted or required
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by law.
D. ~efusal of a Resident to Pay a Rent Increase.
A Resident may refuse to pay' any increase in rent which is
in violation of this ordinance and such violation shall be a
[ defense in any action brought to recover possession of a space or
to collect the illegal rent increase.
E. Violation of Ordinance.
. It shall be unlawful for management to demand, accept,
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receive or retain any payment of rent in excess of the maximum -~
lawful rent set forth in this Ordinance, or to otherwise violate
the provisions of this Ordinance. A violation of this Ordinance
shall be a defense in any action brought by an owner to recover
possession of a space.
Sec. 5-16;06 - SUNSET CLAUSE.
This Ordinance shall expire one year after its effective
date, unless it is further extended by another ordinance adopted
by the Council. However, the expiration of the Ordinance shall
not affect, render moot, or otherwise prevent or terminate any
action, administrative or judicial, pending on said expiration -
date, including, without limitation actions by the City, .
residents or management.
Sec. 5-16.07 - SUBCOMMITTEE OF COUNCIL.
The City Council shall establish a subcommittee of two
council members to review the mobilehome rent stabilization
problem, and to report recommendations to this Council on or
before January 1, 1987, concerning the necessity of a follow-on
ordinance, and the proposed content of any such ordinance.
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ORDINANCE NO.345 C.S.
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However, failure for any reason to present such a report shall
not affect the Council's power to adopt a follow-on ordinance as
the whole Council deems appropriate.
. --- .....- - CODIFICATION, VIOLATION A MISDEMEANOR,
Sec. 5-16.0B
ALTERNATIVE CIVIL ENFORCEMENT.
A. The City Clerk shall codify this ordinance as a part of
the Arroyo Grande Municipal Code. ,
B. Any violation hereof shall be a misdemeanor as provided
by the Municipal Code.
C. At the sole option of the City Council, the City may
also enforce the provisions hereof through nuisance abatement, or
other civil proceedings deemed appropriate by the council.
Sec. 5-16.09 - SEVERABILITY.
If any section, subsection, sentence, clause or phrase of
this Ordinance is for any reason held to be invalid or unconsti-
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tutional by the decision of any court of competent jurisdiction,
such decision shall not affect the validity of the remaining
portions of the Ordinance. The City Council hereby declares that
it would have passed this Ordinance and each section, subsection,
sentence, clause and phrase thereof, irrespective of the fact
that anyone or more sections, sUbsections, sentences, clauses or
phrases be declared invalid or unconstitutional.
On motion of Counci lmember Gallagher, seconded
by Counc i 1 member Johnson, and on the following roll
call vote, to wit:
AYES: Mayor Smith and Councilmembers Gallagher, Johnson, Moots and Porter
NOES: None
ABSENT: None
the foregoing Ordinance was passed and adopted this 13th day of
May, '. 1986.
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MAYOR
ATTEST: ~ a. ~
C lTY L K
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