MALIBU MUNICIPAL CODE
ARTICLE VI
TAXES; LICENSES; BUSINESS REGULATIONS
CHAPTER 7
MOBILEHOME PARK RENT REGULATION
6700. Purpose Of Provisions.
A. When the County of Los Angeles adopted Chapter 8.57 of the Los
Angeles County Code (Ordinance No. 87-0228) to regulate
mobilehome parks in the unincorporated areas of the County, the
County found that there was within the County of Los Angeles a
shortage of spaces for the location of mobilehomes. The area
that is now the City of Malibu was previously part of the
unincorporated area of the County and was subject to Chapter 8.57
of the Los Angeles County Code. The City of Malibu incorporated
on March 28, 1991. There continues to be a shortage of
mobilehome spaces in the area that is now the City of Malibu.
Because of this shortage, there is a low vacancy rate and rents
are presently rising and causing concern among a substantial
number of mobilehome park residents. Because of the high cost of
moving mobilehomes; the potential for damage resulting therefrom;
the requirements relating to the installation of mobilehomes,
including permits, landscaping and site preparation; the lack of
alternative homesites for mobilehome residents; and the
substantial investment of homeowners in such homes, a virtual
monopoly exists in the rental of mobilehome park spaces, creating
a situation where park owners have unbridled discretion and
ability to exploit mobilehome park residents and homeowners.
B. Homeowners are in the unique position of having made a
substantial investment in a mobilehome that is situated on land
that is rented or leased. In this situation, both the park owner
and the homeowner have a financial stake in the relationship.
C. Additionally, because park space is virtually unavailable and
relocating difficult and costly, the closure of a mobilehome park
or its change of use has disastrous implications or results for
homeowners, who may find it impossible to relocate to a
comparable park.
D. For these reasons, among others, the City Council finds and
declares it necessary to protect the owners and occupiers of
mobilehomes from unreasonable rent increases, while at the same
time recognizing the need of park owners to receive a fair return
on their property. In addition, the City Council finds that it
is necessary to provide for the preparation and approval of
reports evaluating the impact of changes of use of the parks and
provide for measures to mitigate the impact on residents of these
changes of use.
6701. Definitions.
A. "Allowable legal expenses" means attorney's fees and costs
incurred in connection with successful good-faith attempts to
recover rents owing, and successful good-faith unlawful detainer
actions not in derogation of applicable law, to the extent same
are not recovered from homeowners. Attorney's fees and costs
incurred in proceeding before the Commission, or in connection
with civil actions against the Commission, are not allowable as
operating expenses.
B. "Base rent" means either (1) for spaces not subject to a long
term lease that complies with the provisions of Civil Code
Section 798.17, the space rent charged on December 31, 1984, as
adjusted for the period between that date and the effective date
of this ordinance pursuant to Los Angeles County Ordinance 87-
0228, Section 8.57.070, unless otherwise agreed upon through
binding arbitration between the park owner and the homeowner and
(2) for spaces subject to valid long term leases on March 28,
1991, which leases comply with the provisions of Civil Code
Section 798.17, the last space rent charged under the long term
lease.
C. "Base year" means, for the purposes of this chapter, the calendar
year 1985.
D. 1. "Capital improvements" means the park owner's cost of
constructing new improvements or replacing old improvements
in the mobilehome park, subject to the following
limitations:
a. The improvement must have a life expectancy
of five years or more and must be treated as capital
improvements for federal and state income tax purposes,
and may not be deducted for such tax purposes as
expenses.
b. Normal routine maintenance and repair are not
capital improvements.
c. Insured repairs and replacement are not
capital improvements.
d. The improvements must be permanently fixed in
place or relatively immobile.
e. Those improvements that the park owner
intends to pass through to the homeowner, except for
necessary infrastructure improvements, must be approved
by 50% plus one of the homeowners. (Ord. 75, 9/16/92)
(Ord. 121U, 11/30/94)
2. "Capital improvements" include construction,
installation or replacement of all or a portion of a
clubhouse, laundry facility or other common area facilities,
a swimming pool, sauna, hot tub or other recreational
amenities, streets, security gates, outdoor or common area
lighting, retaining walls, sewer, electrical, plumbing,
water or television reception systems, sprinkler systems, or
any addition to or upgrade of existing improvements. (Ord.
121U, 11/30/94)
E. "Commission" means the Mobilehome Park Rent Stabilization
Commission, as established by this chapter.
F. "CPI" means the Consumer Price Index (all items) prepared by the
Bureau of Labor Statistics for the Los Angeles-Anaheim-Riverside
area relating to all urban consumers. If the method of
calculating the CPI is substantially revised after the adoption
of the ordinance codified in this chapter, the method in effect
upon adoption of such ordinance shall continue to be used, or the
revised CPI shall be adjusted by the City to correspond to that
method.
G. "CPI Adjustment Period." The City shall calculate and furnish a
figure constituting the CPI change for use as the basis of rent
increases. Such figure need only be based upon available data.
This figure shall be based on the changes in the CPI during the
last available 12-month period for which information is available
from the Bureau of Labor Statistics prior to the effective date
of the base rent or current space rent.
H. "Gross income" means and includes the following:
1. Gross rent, computed as gross rental income at 100
percent paid occupancy; plus
2. Interest from rental deposits, unless directly paid by
the park owner to the homeowner (interest shall be imputed
at the rate of five and one-half percent of all deposits,
unless such deposits earn greater interest); plus
3. Income from laundry facilities, cleaning fees or
services, garage and parking fees attributable to mobilehome
spaces; plus
4. All other income or consideration received or
receivable for, or in connection with the housing services;
minus
5. Uncollected rents due to vacancy and bad debts, to the
extent that the same are beyond the owner's control.
Uncollected rents in excess of three percent of gross rents
shall be presumed to be unreasonable, unless proven
otherwise. Where uncollected rent must be proven, the
average of the preceding three years' experience shall be
used, or other comparable method.
I. "Homeowner" means any person entitled to occupy a mobilehome
which is located within a mobilehome park in the City of Malibu.
J. "Housing services" means services provided by the park owner
related to the use or occupancy of a mobilehome space, including,
but not limited to, water and sewer, natural gas, electricity,
refuse removal, management and administration (including employee
salaries and fringe benefits), maintenance and repairs, supplies,
advertising, recreation facilities, laundry facilities, parking,
security services, insurance, property taxes governmental
assessments, and other costs reasonably attributable to the
operation of the mobilehome park. The term "housing services"
shall not include legal fees or mortgage payments, whether for
principal, interest, or both.
K. "Mobilehome" means a structure designated or designed for human
habitation, transported over the highways to a permanent
occupancy site, and installed on the site either with or without
a permanent foundation. "Mobilehome" includes a manufactured
home, as defined in the Health and Safety Code, but does not
include either a recreational vehicle or a commercial coach, as
they are defined in the Health and Safety Code.
L. "Mobilehome park" means an area of land where two or more
mobilehome spaces are rented or leased for mobilehomes used as
residences. "Mobilehome park" does not include developments
which sell lots for mobilehomes or which provide condominium
ownership of such lots, even if one or more homes in the
development are rented or leased out.
M. "Mobilehome park owner" or "park owner" means the owner, lessor,
operator or manager of a mobilehome park in the City of Malibu.
M.5. "Necessary infrastructure improvements" means maintenance (such
as replacement of a necessary component of a system or
improvement, and other than normal maintenance or repair which
constitute "operating expenses" pursuant to Section N) of
streets, electrical, gas, plumbing, sewer or water systems,
except that costs of replacement or repair incurred or required
as a result of the park owner's negligence. (Ord. 121U,
11/30/94)
N. "Operating expenses."
1. "Operating expenses" shall include the following:
a. Real property taxes;
b. Utility costs;
c. Management expenses (contracted or park owner-
performed) including necessary and reasonable
advertising, accounting, insurance and other managerial
expenses, and allowable legal expenses. Management
expenses are presumed to be five percent of gross
income, unless established otherwise;
d. Normal repair and maintenance expenses,
including painting, normal cleaning, fumigation,
landscaping, and repair of all standard services,
including electrical, plumbing, carpentry, furnished
appliances, drapes, carpets and furniture;
e. Park owner performed labor, which shall be
compensated at a reasonable hourly rate, based upon
documentation being provided, showing the date, time
and nature of the work performed;
f. License and registration fees required by
law, to the extent same are not otherwise paid by
homeowners;
g. Capital expenses with a total cost of less
than $100.00 per year, benefitted unit, and the
amortized portion of other capital expenses otherwise
allowed by regulation.
2. "Operating expenses" shall not include:
a. Avoidable and unnecessary expenses since the
base year, including refinancing costs;
b. Mortgage principal and interest payments;
c. Any penalty, fees or interest assessed or
awarded for violation of this or any other law;
d. Legal fees, except allowable legal expenses
as defined in subsection A of this section;
e. Depreciation of the property;
f. Any expense for which the park owner has been
reimbursed by any security deposit, insurance
settlement, judgment for damages, settlement or any
other method;
g. Land lease payments;
h. Cost of replacement or repair incurred or
necessary as a result of the park owner's negligence or
failure to maintain.
O. "Space rent" means the consideration on a monthly basis,
including any bonuses, benefits or gratuities, demanded or
received in connection with the use and occupancy of a mobilehome
space in a mobilehome park, or for housing services provided, but
exclusive of:
1. Any amount paid for the use of a mobilehome;
2. Security deposits and special and limited rent
increases; (Ord. 116, 9-26-94);
3. User fees for services or facilities which may be
utilized at the option of the homeowners and are not
included in monthly space rent; and
4. Utility charges for those mobilehome parks which bill
homeowners separately whether or not the mobilehomes are
individually metered.
6702. Exemptions.
The provisions of this chapter shall not apply to the following
tenancies in mobilehome parks located in the City, except that all
tenancies in mobilehome parks shall be subject to the registration
provisions of Section 6705 and 6706:
A. Mobilehome park spaces rented for nonresidential uses;
B. Mobilehome parks managed or operated by the United States
Government, the State of California, the County of Los Angeles or
the City of Malibu;
C. Tenancies which do not exceed an occupancy of 20 days and which
do not contemplate an occupancy of more than 20 days;
D. Tenancies for which any federal or state law or regulation
specifically prohibits rent regulations;
E. Tenancies subject to rental agreements exempt from local
ordinances pursuant to Civil Code Section 798.17; and
F. Tenancies covered by leases or rental agreements existing at the
effective date of this Ordinance which are not exempt pursuant to
subsection E, above, but only for the duration of such leases or
rental agreements. Upon the expiration or other termination of
such lease or rental agreement, this chapter shall immediately be
applicable to the tenancy, unless that lease or rental agreement
immediately succeeded by a lease or rental agreement referred to
in subsection E of this section.
6703. Repealed by Ordinance 127, 9-25-95.
6704. Repealed by Ordinance 127, 9-25-95.
6705. Registration.
A. Registration Required. Within sixty (60) calendar days after the
effective date of this Ordinance, park owners shall register all
mobilehome park spaces with the City Clerk. No park owners shall
be eligible to receive any rent increases as provided for in this
chapter unless current registration information is on file with
the City Clerk.
B. Initial Registration. The initial registration shall include the
names, business addresses, and business telephone numbers of each
person or legal entity possessing an ownership interest in the
park and the nature of that interest, and all lienholders (no
later than 30 days after acquiring such interest); the number of
mobilehome spaces within the park; the name and address of each
resident; a rent schedule reflecting space rents within the park
on December 31, 1984, for all spaces not exempt from this Chapter
pursuant to Section 6702; a listing of all other charges,
including utilities, now included in space rent, paid by
homeowners and the approximate amount of each such charge; a list
of all spaces exempt from this Chapter pursuant to Section 6702
and the reason for the exemption and, for those exempt pursuant
to leases or rental agreements, the date of the expiration of the
lease or rental agreement and the amount of the rent; and the
name and address to which all required notices and correspondence
may be sent. (Ord 75, 9-16-92).
C. Determination of Rents. The City Manager or his designee shall
determine the base rent. The decision of the City Staff may be
appealed to the Commission. The decision of City Staff or the
Commission on appeal shall be final. The City Manager may
promulgate regulations necessary to effectuate the purpose of
this section.
D. Re-registration.
1. The City Manager or his or her designee may require re-
registration as deemed necessary and may promulgate
regulations to effectuate the purpose of this section.
2. The registration requirements provided in this section
or which may be established by the City shall apply to all
mobilehome parks and mobilehome park spaces, including those
exempted from the provisions of this chapter by reason of
the existence of a valid rental agreement.
6706. Registration and Administrative Fees.
A. Establishment of Registration Fee. At the time of initial
registration or any subsequent registration, park owners shall
pay to the City of Malibu such registration fee for each
mobilehome rental space within the park as may be established by
resolution of the City Council (not to exceed the reasonable and
necessary costs of administration of this chapter). The City
Council may also provide that up to two-thirds (2/3) of that fee
may be passed through to homeowners if apportioned equally among
the spaces and charged in twelve equal consecutive installments.
(Ord 91, 4-19-93).
B. Late Charge. If a park owner does not pay the fee provided for
in subsection A, above, within the time period established by the
City Council, a late charge shall be assessed in an amount
established by resolution. No late charges may be passed through
to homeowners.
C. Unpaid Fee. No hearing or other proceedings shall be scheduled
to take place, and no rent increase will be granted or will take
effect for any mobilehome park for which there are unpaid
registration fees.
D. Purpose of the Fee. The registration fee provided for by this
section is intended to defray the reasonable and necessary costs
associated with the administration of this chapter and the
regulations promulgated pursuant thereto.
E. Other Administrative Fees. The City Council may set by
resolution other administrative fees to cover the reasonable
costs of processing various requests and appeals, as it deems
necessary.
6707. Rent Increases -- Commission Approval Required When:
On or after March 28, 1991, no increase in space rents in excess of
the amounts permitted pursuant to Section 6708(a) and (b) shall be
effective unless approved by the Commission as set forth in this
chapter.
6708. Rent Increases -- Computation and Determination.
A. Formula Increases. Space rents may be increased automatically
and annually by no more than the total percentage change in the
CPI for the applicable CPI adjustment period as determined by the
City, except that space rent shall not be increased by more than
5% and may be increased by up to 2%. Calculation of the one-year
limitation on Formula Increases shall be from the date the last
formula increase became effective for that particular space.
(Ord. 121U, 11/30/94)
B. Vacancy Increases. Notwithstanding the provisions of subsection
A, above, upon vacancy, space rent may be increased up to 15% of
the then current maximum allowable rent permitted by this Chapter
prior to the vacancy. (Ord. 75, 9-16-92) (Ord. 121U, 11/30/94)
C. Adjustments to Assure a Fair and Reasonable Return. A park owner
may file a rent adjustment application for one, some or all the
spaces in a mobilehome park in order to establish the maximum
allowable rent or to achieve a fair and reasonable return on its
investment. In connection with any such adjustment, all relevant
evidence can be considered including, but not limited to the
following:
1. The rent being charged by comparable mobilehome parks.
2. The amount of investment by the park owner in the
mobilehome park, including without limitation, acquisition
costs.
3. The rate of return on investment earned by the park
owner in previous years.
4. The rate of return on investment earned by other
mobilehome parks in the City and surrounding or comparable
areas.
5. The mobilehome park's pattern of income and expenses
over each of the past five years.
6. The quality of the services, amenities and maintenance
provided at the mobilehome park and any decrease or increase
in services, maintenance and amenities in the current year.
(Ord. 121U, 11/30/94)
D. Special And Limited Rent And Rent Increases.
1. Government required services. The homeowner shall pay
to the park owner, on the herein described terms, no less
than 60 days after the park owner has notified the homeowner
in writing, the increased costs to the park owner of
government required services, which are to be included as
part of the homeowner's rent but separately listed items on
the monthly statement.
a. For the purposes of this chapter, "government
required services" shall be defined as services
required by governmental agencies which are new or in
addition to those services legally required to be
provided by the park owner to homeowners or to the
mobilehome park on March 28, 1991.
b. Such services include fees and charges
legally levied by an agency of federal, state or local
government upon the park owner. Such services do not
include predictable expenses for operation of the
mobilehome park, such as common-area utilities expenses
or expenses which maintain the safe and healthful use
of mobilehome park facilities.
c. The park owner's actual out-of-pocket costs
of providing government required services may be
charged to the homeowner upon 60 days' written notice,
using the following formula: Amount actually paid by
the park owner, divided by the total number of spaces
in the mobilehome park, divided by 12 months, equals
the sum for government required services to be charged
to the homeowner. Notwithstanding the formula
described above, only those costs of providing
governmental required services in the 12 months
immediately preceding the proposed charge shall be
reimbursed to the park owner by the homeowner in the
manner herein described. The park owner shall charge
the homeowner only those costs for government required
services which are not reimbursed to the park owner by
insurance or other sources.
2. Capital Improvements.
a. (1) Necessary infrastructure improvements
subject only to the provisions of Section 6708(D)(2)(c)
and, (2) Subject to the vote requirements and the
capital improvement limitations set forth in Section
6701(D), and also subject to review by the Commission
pursuant to Section 6710, the actual net costs of a
capital improvement plus an interest charge to
compensate the park owner for the use of money in
making the improvement, as described below, may be
charged to the homeowners upon 60 days' written notice,
using the following formula: Net amount actually paid
by the park owner for the capital improvement, plus an
interest charge as described below, divided by the
total number of spaces in the mobilehome park affected
by the improvement, divided by the amortization period
for the capital improvement allowed by the Internal
Revenue Service, equals the monthly sum for capital
improvements to be charged to the homeowners and billed
separately from space rent. (Ord. 74, 8-24-92) (Ord.
121U, 11-30-94).
b. The interest charge that may be added to the
costs of materials and labor is the current rate
derived from the then-current prime interest rate,
computed on a declining balance over the amortization
period for the capital improvement allowed by the
Internal Revenue Service. (Ord 75, 9-16-92).
c. Notwithstanding the provisions of Sections
6708(D)(2)(a) and 6710, the City Manager may approve
special and limited rent increases for necessary
infrastructure improvements upon a showing by the park
owners that the proposed improvement meets the
requirements of Section 6701(M.5) and that the park
owner obtained a minimum of three bids from qualified
persons/entities to perform the work, if possible, and
that the park owner selected the person/entity
submitting the lowest responsible bid to perform the
work for the proposed necessary infrastructure
improvement. No Commission review is required or
permitted. (Ord. 121U, 11-30-94)
E. 1. Sublease Surcharge. Notwithstanding the provisions of
subsection A, above, upon sublease of a space and/or lease
of a mobilehome, the space rent may be increased up to 15%
of the rent otherwise permitted under this Chapter. This
rent surcharge shall be effective only for the duration of
the sublease and shall be eliminated when and if the
sublease is terminated. A sublease surcharge shall not
become effective until 12 months after the last vacancy
increase pursuant to subsection B. The sublease surcharge
rent amount shall be calculated separately and shall not be
included in the maximum allowable rent for the purposes of
calculating formula increases pursuant to Section 6708(A).
The provisions of this subsection shall not apply to those
spaces granted hardship exemptions pursuant to Section
6708(F) for as long as the space is eligible for such
exemption. (Ord. 121U, 11-30-94)
2. Absentee Owner Surcharge. Notwithstanding the
provisions of subsection A, above, in the event that a
homeowner does not use his or her mobilehome at a mobilehome
park as a primary or principal residence and said homeowner
is not otherwise subject to subsection E(1) above, the
homeowner's space rent may be increased up to 15% of the
rent otherwise permitted under this Chapter. This rent
increase shall be effective only until said homeowner
occupies his or her mobilehome at the mobilehome park as a
primary residence or the homeowner subleases his or her
space or mobilehome and becomes subject to Subsection E(1)
above. For purposes of this chapter, a primary residence is
a residence where the homeowner resides for over 185 days
during a calendar year. (Ord. 121U, 11-30-94)
F. Sublease Hardship Exemption. Upon application, the City Manager
may grant a hardship exemption in connection with the Sublease
Surcharge, which exemption shall last for a term of one year. At
the expiration of any particular term of the exemption, the
applicant may apply to renew the one year term by again
establishing qualification for the exemption. The application
and renewal application shall be in the forms provided by the
City Manager with a copy to the park owner and, shall include
sufficient evidence to establish whether the applicant qualifies
for an exemption pursuant to this Section and shall be signed by
the applicant under penalty of perjury. The City Manager shall
grant the exemption for any qualified applicant. (Ord. 121U, 11-
30-94)
1. Qualification. To qualify for the sublease hardship
exemption, the applicant must satisfy all of the following
criteria:
a. The applicant must own a mobilehome at the
applicable park, and must have occupied said mobilehome
as his or her primary residence for a minimum of three
years prior to applying for this exemption.
b. The applicant must present adequate evidence
that he or she would qualify for the Low Income Rate
Payer Assistance Program for Submetered Households.
c. The combined value of assets owned by the
applicant must not exceed $150,000 excluding the value
of the mobilehome itself.
d. No person other than the applicant can
declare the applicant as a dependent for purposes of
federal or state taxes.
In the event that the applicant, after receiving the
hardship exemption, at any time ceases to satisfy all of the
foregoing criteria, from that point on, the applicant will
not be qualified to receive, and shall not receive, the
hardship exemption. (Ord. 121U, 11-30-94)
2. Effect of Exemption. Each applicant who qualifies for
the hardship exemption shall be exempt from the sublease
surcharge provided in Section 6708E of this chapter. (Ord.
121U, 11-30-94)
6709. Repealed and reserved. (Ord 74, 8-24-92).
6710. Rent Adjustments -- Commission Review.
A. 1. In order to implement a rent increase as permitted
under Section 6708(C) of this chapter or a rent decreased
based on a reduction of housing services, the applicant must
file with the Commission a proposed rent schedule on the
form provided by the Commission. Any proposed capital
improvement to be passed through to homeowners must be
approved by the Commission after the park owner files an
application showing the amount of the expense, the amount to
be passed through and proof of a majority vote in favor of
the special and limited rent increases. (Ord. 116, 9-26-94)
2. Where the park owner is the applicant, the park owner
shall serve each affected homeowner, either personally or by
mail, with written notice of the proposed increase, in
accordance with state law, and with notice that a request
for approval of same is being filed with the Commission.
Where a homeowner (or homeowners) is the applicant, the
homeowner shall served the affected park owner by mail or
personally at the address and to the person designated in
the registration form submitted by the park owner to receive
notices on behalf of the park owner. The applicant shall
file proof of such service with the Commission concurrent
with the filing of the rent increase or decrease
application. Copies of the rent schedule, request for
increase and supporting documentation shall be available to
any homeowner requesting same at the park owner's office in
the affected mobilehome park.
B. If the City determines that the application is not complete,
accurate, or not in compliance with this chapter, within 21 days
of the date on which the application was filed, the City shall
give written notice of the deficiencies to the application.
C. The City shall set a hearing on any request complying with the
requirements of this chapter no sooner than 20 days and no later
than 40 days after the application is accepted as complete. The
City shall send written notice to the park owner, who shall post
such notice in a conspicuous place, of the time and place set for
the hearing. If the Commission approves an increase as
requested, or lower than requested, the same shall take effect as
noticed by the owner or as the Commission may otherwise direct.
D. In the application for rent adjustment under this chapter, the
park owner shall indicate which, if any, of the mobilehome spaces
are covered by leases or contracts which provide for more than a
month-to-month tenancy, together with expiration date of each
such lease or contract. Any rent increase approved by the
Commission under this chapter shall not be applicable to spaces
covered by such leases or contracts during the term of such
leases or contracts.
E. Homeowner(s) in a mobilehome park may initiate Commission review
of a proposed land rent increase by filing with the City Clerk a
written petition. The petition shall be in substantially such
form and contain such information as may be required by the
Commission.
6711. Review Hearings.
A. All review hearings conducted by the Commission shall be open to
the public.
B. All parties to the hearing may have assistance from an attorney
or such other person as may be designated by the parties in
presenting evidence or arguing their position. All witnesses
shall be sworn in and all testimony shall be under penalty of
perjury.
C. In the event that either the park owner or the homeowner(s)
should fail to appear at the hearing at the specified time and
place, the Commission may hear and review such evidence as may be
presented and make such decision as if both parties had been
present.
D. All review hearings shall be tape-recorded. Tapes shall be
preserved for six months, or longer, if required by either party
affected by the hearing.
E. The Commission may promulgate regulations to effect the purpose
of this section and to assure fair hearings.
6712. Standards For Evaluating Rent Increases.
A. Factors For Consideration. In evaluating the rent increase
proposed by the park owners, the Commission shall consider, along
with all relevant factors, changes in costs to the park owner's
income from the operation of the park, utility rates, property
taxes, insurance, advertising, variable mortgage interest rates,
governmental assessments and fees, incidental services, employee
costs, normal repair and maintenance, and other considerations,
including, but not limited to, capital improvements, upgrading
and addition of amenities or services, and the level of rent
necessary to permit a just and reasonable return on the owner's
property.
B. Presumption Of Fair Base Year Net Operating Income. Except as
provided in subsection C of this section, it shall be presumed
that the base rent adjusted pursuant to Section 6708(A) and
6708(B) of this chapter provides a fair return to the park owner.
C. Rebutting The Presumption. It may be determined that the base
rent adjusted pursuant to Section 6708 of this chapter yielded
other than a fair return on property, in which case it may be
adjusted accordingly. In order to make such a determination, the
Commission must make at least one of the following findings:
1. The park owner's operating and maintenance expenses in
the base year were unusually high or low in comparison to
other years. In such instance, adjustments may be made in
such expenses so the base year operating expenses reflect
average expenses for the property over a reasonable period
of time. The Commission shall consider the following
factors:
a. The park owner made substantial capital
improvements during 1991, which were not reflected in
the rent levels on the base year date,
b. Substantial repairs were made due to damage
caused by natural disaster and vandalism,
c. Maintenance and repair was below accepted
standards so as to cause significant deterioration in
the quality of housing services, and
d. Other expenses were unreasonably high or low,
notwithstanding the following of prudent business
practice. In making this determination, the fact that
property taxes prior to 1991 may have been higher than
in the base year shall not be considered. It is not
the intent of this chapter to reward inefficient
business practices;
2. The rent on the base date was disproportionate due to
one of the enumerated factors below. In such instances,
adjustments may be made in calculating gross rents,
consistent with the purposes of this chapter:
a. The rent on the base date was established by
a lease or other formal rental agreement which provided
for substantially higher rent at other periods during
the term of the lease.
b. The rent on the base date was substantially
higher or lower than at other times of the year by
reason of seasonal demand or seasonal variations in
rent, or
c. The rent on the base date was substantially
higher or lower than preceding months because of the
premiums being charged or rebates being given for
reasons unique to particular units or limited to the
period determining the base rent.
6713. Rent Adjustments -- Commission Decision Authority.
A. The Commission's decision shall be based on the preponderance of
the evidence at the hearing. All parties to the hearing shall be
advised of the Commission's decision and given a copy of the
findings upon which the decision is based.
B. Consistent with its findings, the Commission may:
1. Permit the requested increase to become effective, in
whole or in part;
2. Deny the increase; or
3. If circumstances justify, order a reduction in rent to
a rate determined by the Commission.
4. Order that the park owner reimburse the applicant(s)
the full amount, or any part of the amount, of the
application fee where (a) the applicant for a rent reduction
was successful, (b) the park owner has not proven that the
rent reduction ordered or the award of costs would deprive
the park owner of a fair return as defined in this Chapter,
and (c) circumstances otherwise warrant the award of costs
to the applicant. (Ord. 135, 10-25-95)
C. If the Commission finds that an increase that went into effect,
or any portion thereof, is not justified, the park owner shall
refund the amount found to be unjustified to the homeowner within
60 days after the decision of the Commission is announced.
D. If the Commission finds that a proposed increase, or any portion
thereof, that was previously inoperative is justified, the
homeowner shall pay the amount found justified to the park owner
within 60 days after the decision of the Commission is announced.
E. The conclusions and findings of the Commission shall be final.
F. Any party disputing the final conclusions and findings of the
Commission may seek review of the Commission's actions pursuant
to Sections 1094.5 and 1094.6 of the California Code of Civil
Procedure.
6714. Hearing -- Evidence And Procedural Irregularities.
Formal rules of evidence or procedure which must be followed in court
shall not apply to Commission proceedings, except to the extent that
the Commission shall determine. No action of the Commission hereunder
shall be held void or invalid or be set aside by any court on the
grounds of any improper admission or rejection of evidence, or by
reason of any error, irregularity, informality, neglect or omission
(hereinafter called "error") as to any matter pertaining to
applications, notices, findings, records, hearings, reports,
recommendations or any matters of procedure whatever, including but
not limited to those included in this section, unless after an
examination of the entire case, including the evidence, the court
shall be of the opinion that the error complained of was prejudicial,
and that by reason of such error the party complaining or appealing
sustained and suffered substantial injury, and that a different result
would have been probable if such error had not occurred or existed.
There shall be no presumption that error is prejudicial or that injury
was done if error is shown.
6715. Implementation Guidelines.
After a noticed public hearing, as it deems necessary, the City
Council may adopt by resolution guidelines to aid in the
implementation of this chapter.
6716. New And Prospective Homeowners.
A. Prior to or at the time of agreeing to rent space to a new
homeowner in a mobilehome park, the owner shall provide each new
homeowner or prospective homeowner with a copy of the Mobilehome
Park Rent Stabilization Ordinance as currently in force.
B. No owner may require, directly or indirectly, that any resident
or prospective resident sign a lease or rental agreement that
provides that it shall be exempt from local rent control or
provides for space rent in excess of that permitted by this
chapter as a condition of tenancy in the park and no owner may
deny a tenancy to a prospective purchaser of a mobilehome in the
park on the ground that the prospective purchaser will not sign
such a lease or rental agreement. (Ord 74, 8-24-92).
C. The notice shall contain a place for the homeowner to acknowledge
receipt of the notice. The park owner shall sign an
acknowledgment that the required noticed has been given to the
homeowner and provide the homeowner with a copy of the executed
acknowledgment.
6717. Homeowner's Right Of Refusal.
A homeowner may refuse to pay any increase in rent which is in
violation of this chapter. Such refusal to pay shall be a defense in
any action brought to recover possession of a mobilehome space or to
collect the rent increase.
6718. Retaliatory Eviction.
Notwithstanding Section 6717, in any action brought to recover
possession of a mobilehome space, the court shall consider as grounds
for denial any violation of any provision of this chapter. Further,
the determination that the action was brought in retaliation for the
exercise of any rights conferred by this chapter shall be grounds for
denial. Any action brought within one year of a petition or complaint
filed with the Commission by the homeowner pursuant to this chapter
shall be presumed to be retaliatory; this presumption affects the
burden of proof, and is rebuttable by the park owner.
6719. Violation -- Civil Remedies.
If any park owner demands, accepts, receives or retains any payment of
rent in excess of the maximum lawful space rent, as determined under
this chapter, then the homeowners in such mobilehome park affected by
such violation, individually or by class action, may seek relief in a
court of appropriate jurisdiction for injunctive relief and damages.
The prevailing party will recover costs and reasonable attorneys' fees
as part of any court judgment.
6720. Violation -- Penalty.
Any person violating any provision, or failing to comply with any
requirement of this chapter shall be guilty of a misdemeanor. Any
person convicted of a misdemeanor under the provisions of this chapter
shall be punished by a fine of not more than $500.00 or by
imprisonment for a period of not more than six months, or by both.
Each violation of any provision of this chapter, and each day during
which any such violation is committed, permitted or continued, shall
constitute a separate offense.
6721. Just And Reasonable Return.
Nothing in this chapter shall be construed to prevent the grant of a
rent adjustment upon application by a park owner when required to
permit a fair and reasonable return to the park owner. This section
is a savings clause which provides the basis for the City to receive
relevant evidence, in accordance with applicable regulations,
demonstrating that a landlord is not receiving a fair and reasonable
return.
6722. Severability.
If any part or provision of this chapter is held invalid by a court of
competent jurisdiction, such part or provision shall be considered a
separate and distinct provision and such court holding shall not
affect the validity and enforceability of the other provisions of this
chapter.
6723. Mobilehome Park Relocation Impact Reports.
A. Statement of Purpose. The purpose of this section is to
implement the provision of state law addressing the adverse
impacts on the residents and homeowners in a park which is
converted, closed or where the park's use is changed or ceased.
(Ord 74, 8-24-92).
B. Definitions. For purposes of this section, the following
definitions shall apply in addition to those listed in Section
6701.
1. "Advisory Agency" means the Planning Department,
Commission, or Hearing Officer as designated by the City
Council.
2. "Change of use" means a use of a mobilehome park for
the purpose other than the rental, or the holding out for
rent, of two or more mobilehome sites to accommodate
mobilehomes for human habitation. "Change of use" includes,
but is not limited to, a change of the park or any portion
thereof to a condominium, stock cooperative, or any form of
ownership wherein spaces within the park are to be sold, and
the cessation of use of all or a portion of the park,
whether immediately or on a gradual basis, or the closure of
the park. "Change of use" shall not include mere purchase
of the park by its existing homeowners.
3. "Comparable housing" shall mean housing which is
comparable in floor space area, deck and lot size, and
number of bedrooms and other relevant factors to the
mobilehome to which comparison is being made, which housing
meets the minimum standards of the State Uniform Housing
Code.
4. "Comparable mobilehome park" means any other mobilehome
park substantially equivalent in terms of park condition,
amenities, ocean views and beach access and other relevant
factors.
5. "Date of application for change of use" means the date
of filing of an application for rezoning, General Plan
amendment, use permit, site development permit or other
discretionary development approval under this code, which
application seeks approval of a change of use of a
mobilehome park or the date of the closure or cessation of
use. (Ord 74, 8-24-92).
6. "Eligible homeowner" means a homeowner whose mobilehome
or manufactured home was located in a mobilehome park on the
date of the application for a change of use.
C. General Requirements.
1. Any person who files an application for a rezoning,
General Plan amendment, subdivision map, use permit, site
development permit or for any other discretionary
development approval, for the purpose of a change of use of
a mobilehome park or closure, shall file with the Advisory
Agency a report on the impact of the conversion, closure, or
cessation of use (hereinafter "closure") upon the residents
of the mobilehome park who will be displaced, no later than
the filing of the first such application necessary to
authorize such closure. (Ord 74, 8-24-92).
2. No application shall be considered or deemed completed
or processed for consideration and approval unless and until
such conversion impact report shall have been filed as
required by this subsection.
3. Use of a property as mobilehome park shall not be
terminated for the purpose of conversion to another land use
or cessation of use until approval by the Advisory Agency or
the City Council on appeal has been received. (Ord 74, 8-24-
92).
4. No building permit shall be issued on property occupied
by a mobilehome park at the effective date of this chapter
or hereinafter for uses other than those associated with the
mobilehome park use and allowed under the special use
permit, until approval under this section has been received.
D. Conversion Impact Report.
1. The conversion impact report shall address the
availability of adequate replacement housing in mobilehome
parks and the cost of replacing displaced residents.
2. In order to evaluate adequately and address those
issues, the conversion impact report shall contain the
following information:
a. The names, addresses and mobilehome site
identification numbers of all persons owning
mobilehomes within the mobilehome park and of all
mobilehome residents on the date of application for
change of use.
b. The age, including date of manufacture, of
each mobilhome within such park, including the type of
mobilehome, width characteristics, size, and number
identifying the mobilehome site being occupied.
c. A list of vacant mobilehome sites in
comparable mobilehome parks within a 50 mile radius of
the park which is the subject of the application or
request.
d. The list shall contain a schedule of site
rental rates for each park listed and the criteria of
the management of each park for acceptance of new
homeowners and used mobilehomes.
e. The names, addresses and telephone numbers of
one or more housing specialists from the list compiled
by the Advisory Agency, and the names, addresses and
telephone numbers and fee schedules of persons
qualified as mobilehome movers and of persons who are
qualified appraisers of mobilehomes and an explanation
of the services the housing specialists will provide.
f. The applicant may designate other housing
specialists, and mobilehome movers and appraisers,
provided that use of any such persons pursuant to this
chapter shall be subject to approval by the Advisory
Agency.
g. A relocation plan which will include:
(1) timetable for implementing the
physical relocation of mobilehomes,
(2) implementation of relocation assistance,
(3) payment of relocation costs,
(4) conversion of the park to one or
more other uses.
3. The application shall include within the conversion
impact report the steps proposed to mitigate any adverse
impact on the ability of displaced homeowners to find
adequate housing in a mobilehome park, including the
reasonable costs of relocation.
a. All eligible homeowners and all mobilehome
tenants of eligible homeowners shall be provided with
the services of one or more housing experts to assist
them in relocating to available and adequate housing
upon their request. Any such experts shall be those
approved pursuant to this section.
(1) A factor to be considered is that
the conversion will not result in the displacement
of low-income individuals or households who cannot
afford rents charged in other parks.
(2) A factor to be considered is if the
conversion is to another residential use, the
homeowners have first opportunity to occupy and
the construction schedule will not result in long-
term displacement.
b. No benefits shall be provided to any person
who is renting a mobilehome from the owner of the
mobilehome park where such person shall have executed a
written agreement with such mobilehome park owner
waiving his or her rights to any such benefits. No
such waiver shall be valid unless it contains the text
of this section, and unless such person shall have
executed a written acknowledgement that he or she has
read and understands his or her rights pursuant to this
chapter and knowingly agrees to waive them.
c. In order to facilitate the intentions of the
homeowners or tenants and an application for a change
of use with regard to a change of use, the parties may
agree to mutually satisfactory relocation assistance.
To be valid such an agreement shall be in writing,
shall include a provision stating that the homeowner is
aware of the provisions of this chapter, shall include
a copy of this chapter as an attachment, shall include
a provision in at least ten-point type which clearly
states the right to seek and the importance of
obtaining an attorney's advice prior to signing the
agreement, and shall be drafted in form and content
otherwise required by applicable state law. Any person
signing such an agreement may rescind it in writing
within ten (10) business days of final approval of
change of use. Any such agreement which is procured by
fraud, misrepresentation, coercion or duress of any
kind shall be void and unenforceable. (Ord 74, 8-24-
92).
E. Hearing and Notice.
1. Upon the receipt of an impact report, within thirty
(30) days the Advisory Agency shall examine the same and
advise the applicant whether it is complete. When a
complete impact report has been filed and accepted by the
Advisory Agency, within thirty (30) days the Advisory Agency
shall set a time, place and date for a hearing.
2. At least thirty (30) days prior to the hearing, the
Advisory Agency shall mail notice to the applicant and the
homeowners of the date, time and place of the meeting.
3. At least fifteen (15) days prior to the scheduled
public hearing before the Advisory Agency on the conversion
impact report, the application shall provide the homeowner
and all other persons described with a copy of this chapter,
a copy of the conversion impact report, and date and time
for an informational meeting pursuant to subsection 4.
4. Not less than ten (10) days prior to the date of the
scheduled public hearing before the Advisory Agency, the
applicant shall conduct an informational meeting for the
residents of the mobilehome park regarding the status of the
application, the timing of proposed relocation of residents,
proposed relocation costs and assistance, and the contents
of the conversion impact report. The meeting shall be
conducted on the premises of the mobilehome park. The
housing specialist(s) designated in the impact report shall
be present at such meeting.
5. Within five (5) days prior to the public hearing, the
applicant shall file with the Advisory Agency a statement
made under penalty of perjury that all requirements pursuant
to subsection 3 and 4 have been complied with and include
the date, time and place where such meeting as required by
subsection 4 occurred.
F. Findings And Decision. At the conclusion of the hearing, the
Advisory Agency shall render its decision. The Advisory Agency
shall approve, conditionally approve or disapprove the location
impact report. The Advisory Agency shall approve the relocation
impact report if it finds that the relocation impact report
contains the information required pursuant to this section. In
approving the relocation impact report, the Advisory Agency may
impose such conditions as it finds necessary to mitigate the
adverse impacts on the residents; however, any steps required to
be taken by the park owner pursuant to this section shall not
exceed the reasonable costs of the relocation. Notice of the
Advisory Agency action shall be mailed to the park owner, to all
homeowners and to all persons who have filed written request
therefor.
G. Request For Appeal. The park owner or any homeowner may appeal
the Advisory Agency's decision to the City Council. The appeal
shall be filed with the City on a form provided for that purpose
within 10 days after the action of the Advisory Agency. When an
appeal is filed, it shall be accompanied by a fee in an amount
determined according to Section 6706. The City shall, within 45
days, set a time and date for a hearing, and shall mail written
notice of such hearing to the park owner, all homeowners, the
person requesting the hearing, the Advisory Agency and all
persons who have filed written request therefor, at least 15 days
prior to the hearing.
For all requests for hearing, the City Council may sustain,
modify, reject or overrule any recommendations or rulings of the
Advisory Agency and may make such findings as are not
inconsistent with the provisions of this section.
H. Extensions. Any of the time limits specified in this section may
be extended by mutual consent of park owner and the Advisory
Agency, or the City Council, on appeal, with notice to affected
homeowners, except where prohibited by state law. (Ord 74, 8-24-
92).
I. Expiration And Extension Of Relocation Impact Report. The
approval of a relocation impact report shall be come null and
void after 36 months from the date of the mailing of the final
approval of the relocation impact report. Thereafter, the park
owner shall not convert, close or case the use of the park until
such time as a new relocation impact report is approved.
However, upon application of the park owner, filed with the
Advisory Agency on or before the date of expiration, the
relocation impact report may be extended by the Advisory Agency
up to an additional 36 months. An application for an extension
shall be subject to the notice and hearing procedures of this
section.
J. Conditions. In the approval of a mobilehome park conversion, the
City may attach conditions deemed reasonable in order to mitigate
the impacts associated with the conversion. Such conditions
shall not be limited to, but may include, the following:
1. If the land occupied by the park is to be sold, the
homeowners shall be given the right to first negotiation
(from the seller) and matching rights (right of last
refusal) for the purchase of the park and all the
improvements.
2. The homeowners be given the option of a long-term lease
of the land and purchase of the improvements.
3. The City may attach an effective date upon their
approval of the conversion. Said date will provide
sufficient time for the relocation of the mobilehome to
other parks.
K. Revocation And Amendment. Any time prior to the closure of the
mobilehome park, the Advisory Agency may, in its discretion, and
upon good cause shown, initiate proceedings for the revocation or
amendment of an impact report. Good cause may include, but is
not limited to, change of circumstances which render the
conditions or requirements of the relocation impact report no
longer necessary or appropriate, negligent or fraudulent
misrepresentation of fact relating to the relocation impact
report, or noncompliance with the conditions of the impact
report. Prior to revoking or amending a relocation impact
report, the Advisory Agency shall conduct a hearing in accordance
with the applicable procedures set forth in subsection E. Upon
revocation, the park owner shall not convert, close, cease or
change the use of the park until such time as a new relocation
impact report is approved. Such revocation or amendment is
subject to the same request for hearing as is provided in
subsection G of this section.
L. Evictions Pending Compliance With Relocation Impact Report.
Termination of a tenancy of any resident pursuant to Civil Code
Section 798.56 or any other provision of law shall not relieve
the park owner of its obligation to comply with the conditions or
requirements of the relocation impact report applicable to that
resident. However, if the termination of tenancy is based on
subdivisions (a), (b), (c), (d), (e) or (f) of Section 798.56 of
the Civil Code, the Advisory Agency, upon request by the park
owner, may grant to the park owner extensions of time within
which to comply with the conditions of the relocation impact
report.
M. Additional Authority Of The Advisory Agency. If, notwithstanding
the fact that the park owner has not served a six months' or
twelve months' notice on the residents, the Advisory Agency finds
that the park owner is attempting to close or convert a park,
then the Advisory Agency shall require the filing of a relocation
impact report.
N. Obligations Of Applicant After Approval Of Conversion Impact
Report. After the date of determination that the conversion
impact report complies with the requirements of this chapter, the
applicant shall undertake or be responsible for performance of
the following obligations:
1. Not later than thirty (30) days from the date of such
determination, the housing specialist or specialists shall
make personal contact with each homeowner of the mobilehome
park and commence consultations to determine the applicable
costs and assistance to be provided. The housing specialist
or specialists shall give each homeowner and former resident
eligible to receive relocation assistance written notice of
his or her rights to relocation assistance as determined by
the City under this chapter.
2. Not less than one-hundred twenty (120) days prior to
the date any homeowner is required to vacate the mobilehome
park, any cash or monetary relocation costs required by this
chapter shall be paid to such homeowner, to any former
corporation performing relocation related services for the
homeowner, as the homeowner may direct. If the applicant
purchases the mobilehome, the homeowner shall be required to
promptly submit to the applicant all documents necessary to
transfer complete title and ownership of such mobilehome to
the applicant, free and clear of all security interest,
liens, or other encumbrances.
3. The date upon which any resident of the mobilehome park
is required to vacate such park, or upon which any
mobilehome is required to be removed from the mobilehome
park, shall not be less than six (6) months from the date of
notice of termination of tenancy pursuant to Civil Code
Section 798.56(f).
4. If the owner of the mobilehome park, the applicant,
homeowner or tenant specifically requests that any of the
time limitations required by this section be modified, the
City shall consider any such modification and evidence
relating to the need therefore at the public hearing on the
conversion impact report. The City shall have the power to
make modification in such time limits, both in response to a
request and on its own motion, in conjunction with any
approval of a conversion impact report, as the City may deem
just and reasonable.
O. Payment Of Relocation Assistance Benefits -- Prerequisite To
Issuance Of Building Permit To Redevelop Park. No building
permit shall be issued for the development of any real property
which has been or is being converted from a mobilehome park
pursuant to this chapter unless and until the applicant or the
owner of the property, as the cay may be, who is responsible for
payment of any required monetary relocation assistance, shall
have filed with the Advisory Agency a verified statement made
under penalty of perjury that relocation assistance payments
required pursuant to this chapter have been paid. Such statement
shall specify in itemized form each payee, the amount paid, the
date of payment, and the type relocation or other assistance for
which each such payment was made.
P. Violations. Violations of this section shall constitute a
misdemeanor. In addition, any park owner or applicant who
violates any rights of any homeowner or mobilehome tenant
established under this chapter shall be liable to said person for
actual damages caused by such violation, plus costs and
reasonable attorneys' fees. No park owner shall take any willful
action to threaten, retaliate against or harass any park resident
with the intent to prevent such residents from exercising his or
her rights under the ordinance. (Ord 48U, 12-3-91).
* * *
MALIBU MUNICIPAL CODE
ARTICLE II
CHAPTER 11
(Ordinance 127, 9-25-95)
COMMISSIONS
MOBILEHOME PARK RENT STABILIZATION COMMISSION
21111. Mobilehome Park Rent Stabilization Commission --
Establishment and Organization.
A. There is hereby established a Commission to be known as the
"Malibu Mobilehome Park Rent Stabilization Commission” or
“Mobilehome Park Rent Stabilization Commission.” The Commission
shall be comprised of five residents of the City. A member of
the Commission shall be appointed to a vacant position by 4/5
vote of the City Council and may be removed by 4/5 vote of the
City Council. In no event shall any member of the Commission be
or, at any time during the immediately five years, have been a
park owner or homeowner.
B. The City Manager shall provide all administrative staff necessary
to serve the Commission. The City Clerk shall serve as Secretary
of the Commission and shall be responsible for the maintenance of
all records of the Commission. The Secretary shall keep a record
of its proceedings, which shall be open for inspection by any
member of the public. The City Attorney or the designee of the
City Attorney shall act as legal counsel to the Commission.
21112. Term.
Each member of the Mobilehome Park Rent Stabilization Commission
shall serve a four (4) year term. Commissioners shall be
appointed at a regular City Council meeting following a general
municipal election. The Commission seats shall be divided into
two groups, one group of three Commissioners and one group of two
Commissioners. Each group of Commissioners’ terms shall expire
respectively after alternate municipal elections.
21113. Mobilehome Park Rent Stabilization Commission -- Powers and
Duties.
Within the limitations provided by law, the Commission shall have
the following powers and duties:
A. To receive, investigate, hold hearings on, and pass upon all
issues relating to mobilehome park rent stabilization, as set
forth in this chapter;
B. To make or conduct such independent hearings or investigations as
may be appropriate to obtain such information as is necessary to
carry out its duties;
C. To adjust space rents either upward or downward upon completion
of its hearings and investigations; and
D. To adopt, promulgate, amend and rescind administrative rules to
effectuate the purposes and policies of this chapter, within the
limitations provided by law or by rules adopted by the City
Council.
* * *