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D. Increases Less Than Maximum Permitted. Nothing herein <br />shall be construed to require that the Park Owner increase <br />rents in any given year by the maximum permitted under this <br />Ordinance. If a Park Owner increases rents in any year by <br />less than the maximum permitted pursuant to this Section, then <br />the Park Owner shall have the right in the next subsequent <br />year to increase rents by the difference between the maximum <br />permitted rent increase pursuant to this Section for the two <br />year period and the actual rent increase in the first year. <br /> <br />E. Compliance with State Law. Rent increases permitted <br />pursuant to this section shall not be effective and shall not <br />be demanded, accepted, or retained until the Park Owner has <br />given the notices required by state law. <br /> <br />Section 6.60,070 Fair Return Adjustments. <br /> <br />A. Purpose. It is expected that a rent increase as provided <br />in Section 6.60.060 of this Chapter will provide the Park <br />Owner with a fair return on investment. However, in the event <br />the Park Owner believes that such rent increases do not <br />provide a fair return, the purpose of this section is to <br />provide a mechanism for the review and approval of requested <br />rental increases in excess of the adjustments provided in <br />Section 6.60,060, and to allow a Park Owner to request rental <br />increases in excess of that allowed in Section 6.60,060, when <br />the Park Owner believes that the adjustment does not allow a <br />fair and reasonable return on his or her investment. The <br />standards to be utilized in determining whether a proposed <br />increase allows for a fair return shall be based upon the <br />terminology and concepts in subsection B. <br /> <br />B. Terminoloqy and Concepts. For the purpose of rent <br />adjustment review hearings, the following terminology and <br />concepts shall apply: <br /> <br /> 1. Net Operating Income equals Gross Income less <br /> Operating and Government Regulated Expenses. <br /> <br /> 2. Gross Income equals the following: <br /> <br /> a. Gross rents computed as gross rental income at <br /> 100% paid occupancy; plus <br /> <br /> b. Interest from rental deposits, unless directly <br /> paid by the Park Owner to the Home Owners (interest <br /> shall be computed at the rate of 4-1/2% of all <br /> deposits, but if such deposits in fact earned <br /> greater interest, then actual interest earned shall <br /> be used); plus <br /> <br /> - 9 - <br /> <br /> <br />