ORD 1843 - Laserfiche WebLink

difference) shall be added over the next three years in equal increments. In those three years (and assuming no further change of ownership), the real property taxes shall be calculated as follows: in the first year, (1) + (2) above and (3) the difference between the real property taxes for the year following the year identified in (2) and the year identified in (2); in the second year, (1) + (2) + (3) above and (4) the difference in the real property taxes between the second year following the year identified in (2) and the first year following the year identified in (2); in the third year, (1) + (2) + (3) + (4) above and (5) the difference in the real property taxes between the third year following the year identified in (2) and the second year following the year identified in (2). This Section shall survive the termination of this Chapter if while this Chapter was in effect: 1) there has been a change of ownership; 2) the remaining dollar difference calculated in (b) above has not been fully recovered as provided in this Section; and 3) a new or revised ordinance providing for the stabilization ofmobilehome rents has not been adopted. 6.60.060 Fair Return Adjustments. A. Purpose. It is expected that a rent increase as provided in Section 6.60.040 of this Chapter will provide the park owner with a fair return on investment. However, in the event the park owner believes that such rent increases do not provide a fair return, the purpose of this Section is to provide a mechanism for the review and approval of requested rental increases in excess of the adjustments provided in Section 6.60.040 of this Chapter, and to allow a park owner to request rental increases in excess of that allowed in Section 6.60.040 of this Chapter, when the park owner believes that the adjustment does not allow a fair and reasonable remm on his or her investment. The standards to be utilized in determining whether a proposed increase allows for a fair return shall be based upon the terminology and concepts in subsection B of this Section. B. Terminology And Concepts. For the purpose of fair return adjustment hearings, the following terminology and concepts shall apply: 1. Net operating income equals gross income less operating expenses and real property taxes. 2. Gross income equals the following: a. Gross rents computed as gross rental income at one hundred percent (100%) paid occupancy; plus b. Interest from rental deposits, unless directly paid by the park owner to the residents (interest shall be computed at the rate of 4 1/2% of all deposits, but if such deposits in fact earned greater interest, then actual interest earned shall be used); plus c. Income from utilities (to the extent the charges are not deemed rent), laundry facilities, cleaning fees or services, garage, storage and parking fees; plus 13