ORD 1701 - Laserfiche WebLink

Ordinance No. Page 2 Chapter, to stabilize mobilehome rents in parks owned by owners who chose not to enter into the March 17, 1992 agreement. G. This Chapter establishes 1992 as the base year for purposes of determining fair remm adjustments (Section 6.60.070) and as part of that process, looks to the base year gross income; base year gross income is predicated on the base year rents. H. Under this Chapter, a park owner who believes that the base year (i.e. 1992) rents are not reasonable or do not reflect general market conditions can petition for an adjustment to the base year rents. In 1995, the park owner of the Pleasanton Mobilehome Park filed such a petition and a hearing officer determined that effective February 1, 1993, the monthly rent for the spaces in that park was $335. The hearing officer did not determine the monthly rents for 1992 but because those rents were between $222.31 and $302.11 (depending on the space), presumably those rents should have been higher in 1992 (than the $222.31 - $302.11) in order to yield the $335 per month rent effective February 1, 1993. Accordingly, should there ever be a fair remm adjustment petition for that park, the gross income for the base year (1992) shall be deemed $328.55. I. The March 17, 1992 agreement was due to expire on December 31, 1996 and the parties to that agreement met during 1996 to discuss the terms and conditions of a revised Mobilehome Kent Stabilization Agreement. J. The parties to the March 17, 1992 agreement reached agreement on a revised Mobilehome Kern Stabilization Agreement (the November 1996 agreement). K. The one park owner who had not entered into the March 17, 1992 agreement was offered the opportunity to participate in the November 1996 agreement but again refused to do so. L. The City Council declares that it is necessary in the public interest to establish a means by which to resolve the potentially divisive and harmful impasse between park owners and mobilehome owners. After consideration of numerous factors, among which are the relatively small number of parks located within the City, the level of organization and communication between mobilehome owners in each park, and the mandates of state law, regulations which best fit the needs of the City have been selected. M. The regulations which are set forth in this Chapter are designed to produce stability in rent increases for mobilehome owners while recognizing the rights of park owners to receive a fair return on their investment. The standards, utilizing the concept of net operating income and a 1992 base year, intend to provide the necessary adjustment mechanisms to meet constitutional requirements.