Resolution Number 05-11-01-02RESOLUTION NO. 05-11-01-02
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, DENYING PROPOSED RENT INCREASE
BY CAPISTRANO TERRACE, LIMITED, OWNER OF THE CAPISTRANO
TERRACE MOBILE HOME PARK
WHEREAS, Capistrano Terrace Limited, owner of the Capistrano Terrace Mobile
Home Park, noticed an increase in monthly rent for the park in the amount of $54.71,
and
WHEREAS, the subject increase is subject to the mobile home rent control
provisions of Municipal Code sections 2-2.901 et seq., and
WHEREAS, residents of the park filed a valid petition pursuant to Municipal Code
section 2-2.903 protesting the rent increase as not fair and reasonable, and
WHEREAS, the City Council appointed Hearing Officer Stephanie Francone to
conduct a rent review hearing for a recommendation to the City Council as to whether
the proposed rent increase is fair and reasonable in light of the non-exclusive criteria set
forth in Municipal Code section 2-2.903(g), and
WHEREAS, the proposed increase exceeds the CPI limitation as set forth in
Municipal Code section 2-2.902, and
WHEREAS, the Hearing Officer has rendered a 41 page recommendation to the
City Council concluding that the proposed increase is not fair and reasonable, and
WHEREAS, the Housing Advisory Committee reviewed the Hearing Officer
recommendation and voted to recommend to the City Council that the recommendation
be adopted by the City Council, and
WHEREAS, the City Council has carefully considered the administrative record,
hearing officer recommendation, and oral argument of the parties conducted on October
18, 2005,
NOW THEREFORE THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO DOES FIND AND CONCLUDE AS FOLLOWS:
Section 1. Proposed Rent Increase Denied/Findings. The City Council after
due consideration of the administrative record and oral argument of the parties held on
October 18, 2005 hereby accepts the findings and conclusions of the Hearing Officer,
and therefore denies the proposed rent increase in its entirety.
11-01-2005
The Park Owner has received a fair rate of return during the Owner's brief
ownership of the property as determined by the Hearing Officer at pages 33-41 of the
recommendation.
The owner's basis for the proposed rent increase is based upon increases in real
property tax arising from the owner's recent purchase of the park and insurance
premium costs. The owner's contention that these costs can be automatically "passed
through" to the residents regardless of the other factors, such as profitability of the park,
is not valid under the city's rent control provisions, as thoroughly discussed in the
hearing officer recommendation.
The City Council adopts and incorporates herein by reference all of the analyses,
findings, and conclusions contained within the hearing officer recommendation and
administrative record in support of the Council's conclusion to deny the proposed rent
increase.
Section 2. Return of Excess Rents Collected. Pursuant to Municipal Code
section 2-2.903(f), any and all rent increases collected by the park owner from any
tenant/lessee (past or present) pursuant to the rent increase notices subject to this rent
review process shall be returned to said parties immediately.
PASSED, APPROVED, AND ADOPTED this 1st day of November 2005.
ATTEST
MAFkGABtT R. MONA AN, CIT LE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano,
do hereby certify that the foregoing Resolution No. 05-11-01-02 was duly adopted by
the City Council of the City of San Juan Capistrano at a regular meeting thereof, held
the list day of November 2005, by the following vote:
AYES: COUNCIL MEMBERS: Allevato, Bathgate, Soto, Swerdlin & Mayor Hart
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
-;�U1, 4 L (/21,6l ztA
MAR AR R. MONA C ler
11-01-2005