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1. The Park Owner's Operating and Government Regulated <br /> Expenses in the base year were unusually high or low in <br /> comparison to other years. In such instances adjustments <br /> may be made in calculating such expenses so the base year <br /> of Operating and Government Regulated Expenses reflects <br /> average expenses for the Park over a reasonable period of <br /> time. The following factors shall be considered in <br /> making this decision. <br /> <br /> a. The Park Owner made substantial Capital <br /> Improvements during the base year which were not <br /> reflected in the rent levels; <br /> <br /> b. Substantial repairs were made due to damage <br /> caused by natural disaster, vandalism or other <br /> unusual cause. <br /> <br /> c. Other expenses were unreasonably high or low <br /> due to unusual circumstances, notwithstanding <br /> prudent business practices. <br /> <br /> 2. The Gross Income during the base year was <br /> significantly lower than normal because of destruction of <br /> the premises and/or temporary eviction for construction <br /> or repairs, or other special circumstances. <br /> <br />F. Schedule of Increases in Operating and Government Related <br />Expenses. Where the schedule of rent increases or other <br />calculations require projections of a prior year's income and <br />expenses, it shall be presumed, subject to rebuttal, that <br />Operating and Government Regulated Expenses, exclusive of <br />property taxes and management expenses, increased at the Cost <br />of Living, that property taxes increased at 2% per year, and <br />that management expenses are 5% of gross income. <br /> <br />G. Authorized Adjustments. The Hearing Officer shall grant <br />an increase to a Park Owner in excess of that allowed by <br />Section 6.60.060 if the Hearing Officer finds and determines <br />that it is necessary to provide the Park Owner with a Net <br />Operating Income, after adjustment for 100% of the increase in <br />the Cost of Living, equal to the Net Operating Income realized <br />for the Park during the base year. The percentage rent <br />increase needed to cover increases in Operating and Government <br />Regulated Expenses shall be calculated in the following manner <br />which is structured to permit growth of the Net Operating <br />Income of the Park and to provide a fair and reasonable return <br />on investment based upon objective standards: <br /> <br /> For 1993, adjust the base year Net Operating Income by <br /> adding thereto 100% of the Cost of Living; subtract <br /> therefrom the 1992 Net Operating Income; and divide by <br /> the 1992 gross rents. <br /> <br /> - 13 - <br /> <br /> <br />