ORD 1843 - Laserfiche WebLink

G. Authorized Adiustments. The hearing officer shall grant an increase to a park owner in excess of that allowed by Section 6.60.040 of this Chapter if the Hearing Officer finds and determines that it is necessary to provide the park owner with a net operating income, after adjustment for one hundred percent (100%) of the increase in the cost of living, equal to the net operating income realized for the park during the base year. The percentage rent increase needed to cover increases in operating expenses and real property taxes shall be calculated in the following manner which is structured to permit growth of the net operating income of the park and to provide a fair and reasonable return on investment based upon objective standards: 1. For 2002, adjust the base year net operating income by adding thereto one hundred percent (100%) of the cost of living; subtract therefrom the 2001 net operating income; and divide by the 2001 gross rents. 2. For 2003 and thereafter, adjust the base year net operating income by adding thereto one hundred percent (100%) of the increase in the cost of living; subtract therefrom the current year net operating income; and divide by the current year gross rents. H. Return On Investment. It is presumed subject to rebuttal that this formula will provide a fair and reasonable return on investment. The park owner may establish by clear and convincing evidence that this formula will not provide a fair and reasonable return on investment, and that an alternative method should be used by the hearing officer in evaluating the petition. In evaluating the petition, the hearing officer may consider any relevant factors necessary to permit a fair and reasonable return on investment. 6.60.070 Base Year Rent Adjustments. A. Purpose. It is presumed that the base year rent is reasonable and reflects general market conditions. However, in the event the park owner believes that such base year rent is not reasonable or does not reflect general market conditions, the purpose of this Section is to provide a mechanism for the review and adjustment of a requested increase in the base year rent. B. Presumption That Base Year Rent Was Reasonable And Reflected General Market Conditions. For the purpose of determining whether the base year rent should be adjusted, it shall be presumed that the base year rent was reasonable and reflected general market conditions. C. Base Year Rent Adiustments. The hearing officer may determine that the base year rent was not reasonable or did not reflect general market conditions. In that case, the hearing officer shall grant an increase to the base year rent if the hearing officer finds and determines that it is necessary to provide the park owner with an adjustment in order for the base year rent to be reasonable or to reflect general market conditions. In order to make such determination, the hearing officer shall consider the following: 1. Whether the park owner (or the park owner's predecessor in interest) had agreed to the base year rent; 17