ORD 1843 - Laserfiche WebLink

6.60.040 Establishment of Adjusted Monthly Rents and Space Rent Adjustments. A. Adjusted Monthly Rent. For purposes of calculating the Adjusted Monthly Rents for 2003 and thereafter, the Adjusted Monthly Rents for each space within the mobilehome parks are set forth in Exhibits A-l, A-2, A-3 and A4 to this Ordinance and incorporated herein by reference. B. Process to Adjust Rents; Notification to City Manager; Method of Calculation. A park owner shall only adjust space rents as provided in subsections 1, 2, and 3 of this Section. A park owner shall notify the City Manager by October 2002 whether the park owner intends to use Formula A or Formula B in calculating annual rents. Ifa Park Owner fails to notify the City Manager by October 1, 2002 which Formula the Owner intends to use, the Owner shall use Formula A. Thereafter the Park Owner shall not use a different Formula without providing 12 months written notice to the City of its intention to do so. For purpose of the calculations in this Section, where the terms operating expenses, real property taxes, and capital improvement costs are used, calculate these expenses by dividing such items by 12 and further dividing by the number of mobilehome spaces within the mobilehome park. 1. Formula A: Ifa park owner selects Formula A, the adjusted monthly rents shall be adjusted no more than once annually, beginning January 2003, and shall be calculated as set forth below: (a) From the adjusted monthly rent, subtract the capital improvement costs (see Section 6.60.100 of this Chapter) if any. This is the monthly rent. (b) Multiply (a) by the cost of living, but not by less than 1% nor by more than 5%. (c) Add the amount in Co) to the monthly rent. (d) Add the capital improvement cost, if any, to (c). Round to the nearest half dollar. This is the adjusted monthly rent. 2. Ifa park owner has selected Formula A and if there has been a change of park ownership (see California Revenue and Taxation Code, section 60 et seq.) and, as a result of that change of ownership, the real property taxes (as defined in this Chapter) for the year (ending September 30) are more than 105% of the real property taxes for the prior year (ending September 30), the adjusted monthly rents shall be adjusted no more than once annually and shall be calculated as set forth below: (a) From the adjusted monthly rent, subtract the capital improvement costs (see Section 6.60.100 of this Chapter) if any. This is the monthly rent. (b) Multiply (a) by the cost of living, but not by less than 1% nor by more than 5%.