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HomeMy WebLinkAboutOrd 1989-2306 ALTERNATIVE NO. 1 Revised 4/12/89 ORDINANCE NO. 2306 AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 9.50 OF THE CHULA VISTA MUNICIPAL CODE RELATING TO RENTAL MOBILEHOME PARKS The City Council of the City of Chula Vista does ordain as follows: SECTION I: That Chapter 9.50 of the Chula Vista Municipal Code be, and the same is hereby amended to read as follows: Chapter 9.50 MOBILEHOME PARK SPACE-RENT MZ~%~/~ ARBITRATION Sec. 9.50,010 Applicability. This chapter shall apply to a mobilehome that requires a permit to be moved on a street or highway. The procedures contained in this chapter are intended to provide a mechanism for the resolution of disputed increases in rents by making it advantageous for mobilehomes owners and mobilehome park owners to establish a better Understanding for each other's positions ~M//~//~ ~ which will result in agreement on the amount of rent to be charged. %f//j~//~f~qf~'f~f~/~//f/~/A binding arbitration provision is ~ provided for. The procedures of the ordinance are established with the intent ~f/~/~/~/~c/h//~//~d~TD//~ that they be accomplished in a timely fashion. The participating parties shall co~it to the goal of completing the ~Z~f~//~ arbitration process~ within sixty (60) days of the serving of ~//~jTVi~//46//~f~//~i~/~ the notice of rent increase. 9.50,015 Applicability of Chapter 9.50 to Recreational Vehicles. Recreational vehicles as defined in California Civil Code Section 799.24 are subject to the rights and duties set forth in Chapter 9.50 and shall have the right to ~X~//i~/~//~f~'f~/~4~ arbitration ~f~/~ as set forth herein ~g[/~/~ where the recreational vehicle owner/occupant has been in residency for nine or more consecutive months. Notwithstanding the above, this chapter ~ shall not be applicable to recreational vehicles residing in parks operated as recreational vehicle parks, where the predominant number of spaces are occupied for less than nine months. -1- Sec. 9.50,030 Definitions. Words used in this chapter shall have the meaning described to them in this section: 1. "Space rent" means the consideration, including any bonus, benefits, or gratuity demanded or received in co~ection with the use and occupancy of the mobilehome space in a mobilehome park, or for the tr~sfer of the lease for parkspace, services, o~er-provided utilities, and ~enities, subletting and security de~sits, but exclusive of any ~ts paid for the use of the mobilehome dwelling or of major capital improvement pass-throughs as defined in this ordin~ce. ~2. "Mobilehome" means a ~bilehome as defined in the California Mobilehome Home Residenq Law. ~3."Mobilehome park o~er" or "~er" me~s the o~er, lessor, o~rator, manager of a mobilehome park within the purview of this ordin~ce. ~4."Mobileho~ resident" of "resident" means any person entitled to occupy a mobilehome dwelling unit by virtue of o~ership thereof. 15. "Dispute" or "controversy" means a disagreement or difference which is s ject to the arbitration process ~6. "~ns~er price index" or "CPI" shall mean the all urban cons~ers/all ite~ com~nent of the S~ Diego Metropolitan Area U (broader base) cons~er price index. ~7. "Major ~pital Improvement Pass-Through" me~s a separately identified monthly charge to residents which represents the reagent of a cost for a major capital improvement with the following characteristics: a. Said improvement shall have a cost of more th~ ~10,000. b. Said improvement shall ~ exclusive of mainten~ce or replacement of existing facilities. c. Said improvement shall have been a~roved in concept by ~re th~ fifty Frcent (50%) of the mobilehome spaces within the mobilehome park after all spaces in the park have been informed of the nature, general design, timing, and overall cost of said improvement, ~d the ~ount and duration of the related pass-through. -2- Sec. 9.50.050 Owner Meetings and Possible Voluntary Negotiations. Within five days, but not more than 10 days, after service of a notice of increase as provided in Section 9.50,065, the park owner must hold an informal meeting for the benefit of the affected residents to discuss his or her increase. It is hoped that such a meeting may lead to voluntary settlement of the dispute. The meeting should be set for a time and date believed to be convenient for residents and may be changed to a different date based on the reasonable request of the residents. The residents shall have the option to choose whether or not to attend the meeting. Attendance at the meeting shall not affect the residents' right to arbitrate under Section 9.50,070 of this Chapter. R~//~f~f~//~/~/~/~~/~/~ -3- Sec. 9.50,065 Notice of rent increase. In any situation where a mobilehome park owner wishes to increase the space rent above the applicable CPI, he or she must first give notice as follows: NOTICE -RENT IN(I~EASE IN EXCESS OF CPI   IF YOU DO NOT TAKE ACTION TO ARBITRATE WITHIN THIRTY DAYS, THIS INCREASE SHALL BE AUTOMATICALLY EFFECTIVE This notice of increase exceeds the current annual rate of the Consumer Price Index (CPI). The CPI is % and this increase is % of your current rent. Under the City's Municipal Code, you are entitled to the following rights: 1. To this end, I am required to hold a meeting with the residents to discuss the reasons for the increase. The meeting will be at (time and place). You are encouraged to attend but are not required to do so. Under the City's ordinance, owners and residents are encouraged to attempt to resolve differences regarding this increase. 2. You have the right to file for arbitration with the City's Community Development Department. You may file for arbitration whether or not you attend the meeting to discuss the increase. To file for arbitration, you must place a deposit of $ with the City's Comunity Development Department within thirty days of the date this notice is served on you. If you do not place the deposit, you forfeit your right to arbitrate the rent increase. If you or other affected residents are lower-income (below $13,000-$15,000 per year), you may be eligible to receive assistance with part of the cost of arbitration from the City's Community Development Department. If you have questions regarding arbitration or need more information, you can call the City at 691-5047. The following space numbers are subject to this increase: 1. If the residents within the affected mobilehome park have established a representative body and notify the owner in writing of its existence, a copy of the rent increase notice must be sent to the chairperson of that body. -5- 2. A copy of the rent increase notice must be given to the Community Development Department of the City of Chula Vista at least 15 days prior to issuance of the notice to the residents. Staff will provide copies to the Mobilehomo Issues Committee. 3. The rent increase notice must contain the space numbers of all residents who are subject to the increase which is above the amount of the applicable CPI. 4. The notice shall advise recipients that a deposit of 25% of the cost of arbitration shall be made within thirty (30) days of the date of service of notice or the right to arbitration is waived. The deposit shall be made with the Director of Community Development. Sec. 9.50.070 Initiation of ~f~ arbitration. In any situation where the space rent increases in a twelve month period exceed cumulatively the increase of the consumer price index as defined herein for the year preceding the rent increase notice, the following procedures shall apply unless the owner receives written consent to the increase from more than 50% of the spaces affected by the notice of increase. The owner must file the original of the written consent with the Community Development Department and notify the residents that this has been filed. 1. Residents shall be required within thirty days of the date of service of the notice of increase to deposit with the City Community Development Department 25% of the estimated arbitration cost for one day of arbitration. Arbitration shall begin in not less than 20 days nor more than 30 days after the date of service of the notice of increase, provided the residents' deposit has been made. 2. Upon receipt of the residents' deposit and notification to the park owner, he shall have 7 days to provide a deposit which shall be equal to 75% of the estimated cost for one day of arbitration. 3. The cost of arbitration including costs incurred by the American Arbitration Association in cases where a settlement is reached prior to any hearing will be shared. The owner shall be responsible for 75% and the residents responsible for 25% of the first $750. Any costs of arbitration above $750 shall be shared equally by both parties. Additional costs above the amount of deposit shall be due and payable subject to the requirements of the American Arbitration Association. 4. The arbitration shall be conducted according to the applicable rules of arbitration of the American Arbitration Association and under the auspices of the American Arbitration Association. 5. The decision of the arbitrator shall be binding and shall be applicable to all mobilehome residents subject to the rent increase being arbitrated. Factors to be considered shall include but not be limited to a just and reasonable return on the owner's property. The burden of proof shall be on the park owner to demonstrate that the rent increase is necessary to provide a just and reasonable return on the property. 6. The arbitrator's decision shall be submitted to the City Council. -6- 7. Written information submitted to the City Council by the arbitrator shall be maintained at City Hall. 8. In the event that the owner reduces the rent increase to the applicable CPI, or more than 50% of the affected residents agree in writing to settle the dispute,the arbitration process automatically terminates. 9__~. Arbitration shall also be applicable to the situation where space rent is increased upon change of ownership of the mobilehome or removal of the unit. Either the incoming or outgoing owner-occupant shall have the right to arbitrate. If an outgoing mobilehome owner intends to sell his or her mobilehome, he or she may request, and the owner shall be obligated to provide within 15 days of the request, a written statement as to the rental rate to be offered to the incoming owner-occupant. If the rate of increase in rent to the new owner-occupant is above the amount of the applicable CPI as provided in Section 9.50.070, then either the current resident or incoming resident shall have the right to arbitrate the increase under the provisions of Section 9.50.070. The right to arbitrate is subject to the outgoing or incoming resident placing a deposit pursuant to Section 1 above, within 30 days of either (a) service of the owner's written statement to the outgoing resident or (b) the date of execution of a purchase contract between the incoming and outgoing residents, which is the latter. The park owner's statement shall contain the following: NOTICE - RENT INCREASE IN EXCESS OF CPI IF YOU DO NOT TAKE ACTION TO ARBITRATE IN A TIMELY MANNER, THIS INCREASE SHALL BE AUTOMATICALLY EFFECTIVE UPON THE SALE OF YOUR MOBILEHOME This statement of increase exceeds the current annual rate of the Consumer Price Index (CPI). The CPI is % and this increase is % of your current rent. Under the City's Municipal Code, the outgoing or the incoming resident are entitled to file for arbitration with the City's Communit~y Development Department. In order to arbitrate, you must place an arbitration deposit of $ with the City's Co~nunity Development Department within thirty days of the date this notice is served on you or the date of execution of a purchase contract on the mobilehome. If you do not place the deposit, you forfeit your right to arbitrate the rent increase. If you are low income (below ~13,000-15,000 per year), you may be eligible to receive assistance for part of the cost of arbitration from the City's Community Development Department. If you have questions regarding arbitration or need more information, you can call the City at 691-5047. -7- -8- 9.50.090 Deferral of Rent Increases. In any case where a proposed rent increase exceeding the CPI, as provided herein, is subject to dispute said excess increase shall not become effective until the f~Z///~f~///~ arbitration process~ ha~ been complied with in accordance with the provisions of Chapter 9.50 provided, however, an increase in the amount of the CPI may take effect immediately and only the amount in excess thereof shall be deferred until the completion of the/~X~X~/~4~ arbitration process. SECTION II: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by Approved as to form by 5521a -9- FIRST READ AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTAj CALIFORNIAj HELD April 11 , 19 89 , AND - FINALLY PASSED AND ADOPTED AT A REGULAR MEETING THEREOF HELD April 18 19 89 , BY THE FOLLOWING VOTE~ TO-WIT: AYES: Councilmen: McCandliss, Nader, Cox, Moore _~NAYES: Counci|rnen: None ABSTAIN: Cotn:ilmen: None ABSENT: Councilmen: Malcolm STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) sS. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Visto, Colifornio, DO HEREBY CERTIFY thor the obove ond foregoing is o full, true ond correct copy of ORDINANCE NO. 2306 ,oncl fhot the some hos not been omendedor repeoled. DATED City Clerk CC-660 CI1Y OF CHULA VISTA OFFIOE OF THE GITY GLERK ORDINANCE NO. 2306 AN ORDINANCE OF THE CITY OF CHULA VISTA, CALIFORNIA AMENDING CHAPTER 9.50 OF THE CHULA VISTA MUNICIPAL CODE RELATING TO RENTAL MOBILEHOME PARKS At its meetin9 of April 18, 1989, the City Council placed the ordinance on second reading and adoption (Councilman Malcolm was absent during the vote). The Ordinance covers the requirements for (1) Burden of Proof on Reasonable Return; (2) Arbitration Costs; (3) Reduction of Increase to CPI Ends Arbitration Process; (4) Petition Requirement and Requirement to Negotiate; (5) Voluntary Negotiation; (6) Owner's Rent Increase Notice and (7) Rent Increase at Time of Sale of Mobilehome. Copies of the ordinance are available at the office ol the City Clerk, City Hall, 276 Fourth Avenue, Chula Vista, California. Dated: 4/24/89 276 FOURTH AVENUE/CHULA VISTA, CALIFORNIA 92010/(619) 691-5041