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BACKGROUND The City has adopted a mobilehome rent stabilization ordinance, codified in Chapter 6.60 of the Pleasanton Municipal Code (Mobile home Ordinance). Mobile home park owners who enter into rent stabilization agreements with the City are exempt from the Mobile home Ordinance. The existing Rent Stabilization Agreement (Current Agreement) with the owner of Vineyard Villa was entered into in 2007 and amended in 2010, and will expire at the end of 2022. With input from representatives of the Vineyard Villa Homeowners' Association, and good faith negotiations between the Park owner and the City, a proposed Amendment to the Agreement has been reached (Proposed Amendment). City staff provided the Park residents with a copy of the Proposed Amendment along with an overview of its terms. DISCUSSION Key Terms of the Proposed Amendment The following are some of the key terms of the Proposed Amendment: • Does not change the formula for increases to monthly rents Under the Current Agreement, monthly rents may be adjusted annually by multiplying the monthly rent by the Cost of Living, but not less than 2 percent nor more than 5 percent. The Proposed Amendment does not change this formula. • Extends the term of the Current Agreement by 10 years The Current Agreement is set to expire on December 31, 2022. The Proposed Amendment would extend the term of the Current Agreement until December 31, 2032. • Establishes a new monthly rent upon a transfer of ownership Under the Current Agreement, upon a transfer of ownership (when a mobile home is sold), the Park owner may increase the monthly rent for that space by multiplying the highest monthly rent in effect for that year in the park by the Cost of Living; provided, however, that the percentage change shall be no less than 2 percent nor more than 5 percent. "Cost of Living" means the change in the Consumer Price Index for the San Francisco-Oakland-San Jose Metropolitan Area for the 12-month period ending in August each year as published by the Bureau of Labor Statistics. The current Cost of Living is 5.7 percent. Based on this, the highest monthly rent in the park for this year is $1,288. Under the Proposed Amendment, upon a transfer of ownership occurring on or after January 1, 2023, the Park owner may establish a new monthly rent of $1,600. This Page 2 of 3