Ordinance Number 456ORDINANCE NO. 456 27
MOBILEHOME PARK SPACE RENT REGULATIONS
AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, AMENDING ARTICLE 9, CHAPTER 2,
TITLE 2 OF THE SAN JUAN CAPISTRANO MUNICIPAL
CODE
THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Amendment.
Article 9 of Chapter 2 of Title 2 0£ the San Juan
Capistrano Municipal Code is hereby amended to read as follows:
"Section 2-2.902. Definitions.
"(d) 'Maximum Allowable Increase' shall mean the
Maximum Allowable Increase in mobilehome
space rent that an Owner may charge, unless
a higher increase is approved by the City
after petition and hearing as hereinafter
provided. The Maximum Allowable Increase
shall be as provided in this subsection (d)
and shall be determined by either of the
following formulae that an Owner may choose
to apply:
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1. Take operating expenses of the park for
the twelve month period immediately
preceding the date upon which
notification of any rent increase is to
be made;
"Multiply that sum by the percentage of
increase in the CPI -U appearing in the
latest published Consumer Price Index;
"Multiply that produce by a factor of 1.1
to arrive at the maximum allowable
annual increase in rent for the entire
park;
"Divide by the number of units in the
park to compute the maximum allowable
annual rent increase (in dollars) for
each space.
"or
"2. Secure the percentage of increase in
CPI -U appearing in the latest published
Consumer Price Index prior to the date
upon which notification of any rent
increase is to be given;
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"Compute a 'Modified CPI -U' which applies
to rental of mobilehome spaces by deleting
those items in the CPI -U which do not
have a substantial bearing upon the
rental of mobilehome spaces; i.e., Food
and Beverage; Apparel and Upkeep;
Entertainment; Medical Care;
"Multiply the above 'Modified CPI -U' by
a factor of 1.1 to arrive at the maximum
allowable rent increase percentage and
apply that product to each space rent. s
"The percentage increase computed by either of
the foregoing methods shall be applied to
each space and shall not be applied to the
park's mean rent. There shall, moreover, be
no more than one increase in space rents
within a park during any twelve month period,
without the prior approval of the City."
"(g) 'Rent' shall mean the consideration charged
solely for the use and occupancy of a mobilehome
space in a park and shall not include any
amount paid for the use of the mobilehome
dwelling unit or for facilities or amenities
in a park other than a mobilehome space,
or any other fees or charges regulated by
state law."
"Section 2-2.905. Review and Hearing Process.
"(a) Upon the written petition of an Owner, or of
Residents representing more than fifty percent
(50%) of the spaces within a park excluding
management space, concerning proposed or
actual increases in rent that exceed the
Maximum Allowable Increase, the Committee
shall hold a public hearing. Any such public
hearing shall be held not later than thirty
(30) days after receipt of the petition by
the Secretary, and the Secretary shall notify
the Park Owner, Petitioner and all other
persons specifically requesting such notice
at least ten (10) days prior to the date set
for hearing.
"(b) At the hearing on such petition the Committee
shall make a preliminary investigation to
determine if the rent increase that is the
subject of such petition exceeds the Maximum
Allowable Increase as defined in Section
2-2.902(d) of this Ordinance. If the
Committee determines that the rent increase
does not exceed the Maximum Allowable
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Increase, it shall reject the petition and -
not proceed further with the hearing
thereon. If, on the other hand, the
Committee determines that the rent increase
exceeds the Maximum Allowable Increase, it
shall proceed with the hearing to determine
the necessity or justification for the rent
increase.
"(c) Any hearing under this Ordinance shall be
governed by the procedures provided in
Ordinance No. 449, Chapter 6, Title 1, of
the San Juan Capistrano Municipal Code. At
such hearing any person may offer any
testimony, documents, written declarations
or other evidence that is relevant to the
subject matter of the hearing.
"(d) The Committee shall make its decision no
later than ten (10) days after the conclusion
of the hearing and forthwith submit its
findings and recommendations to the Council.
"(e) The Council shall review. the decision of the
Committee at its next regularly scheduled
meeting that is at least ten (10) days after
the Committee makes its decision on a petition.
The Council shall not reopen the public
hearing held by the Committee unless to do so
is necessary or appropriate, in the Council's
discretion, to its proper determination of
the rent increase under consideration. The
Council, based on findings of the Committee
and on any other evidence the Council may
receive, may approve the rent increase or
require reduction of the rent increase to a
point not lower than the Maximum Allowable
Increase. The Council shall make its
decision in writing within ten (10) days
after it reviews the decision of the
Committee, and the decision of the Council
shall be final.
"(f) Any rent increases that are collected by an
owner pursuant to an increase which is the
subject of a petition for hearing, and which
later is determined by the Council to exceed
the Maximum Allowable Increase or such greater
increase as the Council approves, shall be
either returned to the Residents or credited
to future space rents; provided, however, no
increase collected prior to December 5, 1980,
shall be returned.
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"(g) In evaluating the rent increase proposed or
effected by the mobilehome park owner, the
Committee and Council shall consider all
relevant factors, including, but not limited
to, increased or decreased costs to the
mobilehome park owner attributable to utility
rates, property taxes, insurance, advertising,
governmental assessments, cost of living
increases attributable to incidental services,
normal repair and maintenance, capital
improvements, and the upgrading and addition
of amenities or services, as well as a fair
rate of return on investments and increased
property values."
SECTION 2. Effective Date.
This Ordinance shall take effect and be in force thirty
(30) days after its passage.
SECTION 3. City Clerk's Certification.
The City Clerk shall certify to the adoption of this
Ordinance and cause the same to be posted in, the duly designated
posting places within the City of San Juan Capistrano within
fifteen (15) days after its passage.
PASSED, APPROVED AND ADOPTED this 4th day of
May 1 1982 , by the following vote, to wit:
AYES: Councilmen Friess, Hausdorfer, Bland,
Schwartze, and Mayor Buchheim
ATTEST:
CITY CLE
NOES: None
ABSENT: None
WRENCE F. HEIM, MAYOR