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HomeMy WebLinkAboutMINUTES - 09271994 - 2.2 TO: BOARD OF SUPERVISORS FROM: Victor J. Westman, County Counsel DATE: September 27, 1994 SUBJECT: Ordinance Providing for a Temporary Stabilization and Control of Rents within Mobilehome Parks SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: Pursuant to the Board' s September 20, 1994 directions, consider: 1. Introducing, waiving reading and adoption, by at least a four- fifths vote, the Ordinance Providing for a Temporary Stabilization and Control of Rents within Mobilehome Parks . 2 . With introduction and waiving of reading by at least three votes, fixing October 4, 1994 for second reading (unless waived) and regular adoption of the aforementioned Ordinance. FISCAL IMPACT: County cost of administering and enforcing the ordinance is not known at this time. BACKGROUND/REASONS FOR RECOMMENDATIONS: On September 20, 1994, the Board directed the County Counsel ' s Office to prepare an urgency measure and ordinance providing for a temporary moratorium on rental increases in mobilehome parks in the unincorporated areas of the County, similar to the moratorium ordinance adopted by the City of Concord. The attached ordinance was developed from the ordinance adopted by the City of Concord, modified for adoption by the Board based upon facts applicable to the unincorporated area. The attached ordinance stabilizes rents in mobilehome parks based upon rental amounts in effect on September 20, 1994 . The ordinance will remain in effect for 120 days, unless further action is taken by the Board. CONTINUED ON ATTACHMENT: YES 444�, r RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON September 27 , 1994 APPROVED AS RECOMMENDED * OTHER See Addendum A for Board of Supervisors action. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: Iy,y, III NOES: II ACTION TAKEN AND ENTERED ON THE ABSENT: I ABSTAIN: - MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. September 27, 1994 Orig: County Counsel ATTESTED: Phil Batchelor, Clerk of cc: County Administrator the Board of Supervisors and Community Development Dir. County Administrator Redevelopment Dir. By: AAJ n LTF.14a:\mobi1e.bo1 Deputy Clerk ADDENDUM A Victor Westman, County Counsel, presented the staff recommendations contained in the report and explained the alternatives to the Board with respect to the adoption of either an urgency ordinance or a regular ordinance. The following persons presented testimony for Board consideration on the proposed ordinance : Bill Rickard, 710 Treasure Drive, Bay Point; Martha Mary Willson, 2 Corte Del Bayo, Larkspur; John Wolfe, 820 Main Street, Martinez; Gary E. Willson, 2 Corte Del Bayo, Larkspur; Scott Carter, 2678 N. Main St . #22, Walnut Creek; Gretchen Carter, 138 Skelly Court, Hercules; Hal R. Yeager, 89 Baylor Lane, Pleasant Hill; Barbara Allenza, 261 Magda Way, Pacheco; Dick Craig, 55 Pacifica Avenue, Bay Point; Elena Canepa, 320 Blueberry Drive, Scotts Valley; Joseph E. Schneider, 137 Algiers Way, Pacheco; Dan Bennett, 169 Valley Hill Drive, Moraga; Supervisor DeSaulnier moved adoption of recommendation 2 to introduce the ordinance for further action on October 4 , 1994 . Supervisor Torlakson seconded the motion. Supervisor Smith expressed opposition to the motion and he spoke in support of government using the least obtrusive method of solving a problem in as rapid a manner possible and he expressed that this was not the least obtrusive method. Supervisor Bishop spoke in support of the motion. IT IS BY THE BOARD ORDERED that recommendation 2 is APPROVED. ORDINANCE NO. PROVIDING FOR A TEMPORARY STABILIZATION AND CONTROL OF RENTS WITHIN MOBILEHOME PARKS The Board of Supervisors of the County of Contra Costa ordains as follows: SECTION I . FINDINGS AND PURPOSE. A. Since the late 1970 's, with the establishment of the Mobile Home Advisory Committee, the County has worked with owners and residents of mobilehome parks to foster an environment conducive to the resolution of disputes, including disputes as to the rents to be charged for a space within a given park. Those efforts have been largely successful and with regard to rent increases have been principally aimed at allowing a park owner to achieve a just and reasonable return from his ownership interest while ensuring that residents are not subject to exorbitant and/or unconscionable rent increases that could deny them the ability to remain in the park. B. There continues to exist in the unincorporated area of the County a shortage of new spaces and vacant spaces within mobilehome parks and said shortage contributes to a low space vacancy rate within parks in the unincorporated area. C. A substantial number of persons in the unincorporated area of the County who reside in mobilehome parks are persons on fixed incomes, including senior citizens and persons of low income. D. Through the efforts of the County, the Mobile Home Advisory Committee, park owners and residents worked together to develop long-term leases, and many mobilehome owners are parties to long-term leases . E. Recently, however, the Board of Supervisors has received public testimony and written and oral complaints that some parks within the unincorporated area have been and are charging increased rental amounts without service improvements . In some cases, the testimony has been that service levels have actually decreased in the parks charging the high rents . F. Such rental increases, especially when coupled with a lack of service or other justifying factor, create hardships on mobilehome park residents, and may cause the displacement of park residents . Such displacements would be detrimental to the public health, safety and welfare by adversely affecting the lives of a substantial number of unincorporated area residents who reside in these mobilehomes . G. Efforts by the County and leaders in the mobilehome park industry to obtain voluntary cooperation by landlords to maintain rents at reasonable and affordable levels have been successful in many instances, but the problems detailed in the foregoing paragraphs continue. H. It is necessary and in the public interest to protect mobilehome park residents from unreasonable rental increases, while at the same time recognizing landlords ' need to have rental increases sufficient to cover increased costs of operation and maintenance. I . Therefore, the County is. now studying the feasibility, practicality and desirability of various measures designed to address the problems relative to mobilehome park rents within the unincorporated area. J. Pending the conclusions of such study and the development of a more comprehensive response to the problems involved, the Board finds, for the reasons set forth above, that it is necessary and in the public interest to institute interim mobilehome park rent stabilization and control measures as set forth herein. SECTION II. DEFINITIONS. The following words and phrases shall have the meaning set forth in this section unless the context clearly otherwise requires . A. "Housing Services" means services connected with the use or occupancy of a rental unit, including, but not limited to, utilities, (including cable TV, light, heat, water & telephone) , ordinary repairs or replacement, and maintenance, including painting. This term shall also include the provision of laundry facilities and privileges, common recreational facilities, janitorial service, resident manager, refuse removal, furnishings, parking, and any other benefits, privileges, or facilities. B. "Landlord" means and includes an owner, lessor, or sublessor (including any person, firm, corporation, partnership or other entity) , who receives or is entitled to receive rent for the use of any rental unit, or the agent, representative or successor of any of the foregoing. C. "Rent" means the consideration, including any bonus, benefits or gratuity, demanded or received by a landlord for or in connection with the use or occupancy of a rental unit, or the assignment of a lease for such a unit, including but not limited to any monies demanded or paid for parking, furnishings, housing services of any kind, subletting or security deposits. D. "Rental unit" means all mobilehomes and mobilehome - 2 - ORDINANCE NO. 94/ spaces in the unincorporated area designed for rental use or actually rented at any time on or after September 20, 1994, including mobilehomes and mobilehome parks, together with the land and buildings appurtenant thereto, and all services, privileges, furnishings and facilities supplied in connection with the use or occupancy thereof. The term shall not include the following dwelling units. 1. Spaces or dwelling units in non-profit cooperatives owned and controlled by a majority of the residents . 2 . Spaces or dwelling units which a government unit, agency or authority owns, operates, or controls rent or which are specifically exempted from municipal rent regulation by State or Federal law or administrative regulations . The rental units for which rental assistance is paid pursuant to 24 CFR 882 ( "HUD Section 8 Federal Rent Subsidy Program" ) may be exempted wholly or partially from the terms of this ordinance on an individual basis by resolution of the Board pursuant to a written request from HUD and after notice to the tenant and landlord involved. 3 . Non-profit housing accommodations . These are housing accommodations operated by an organization exempt from federal income taxes under Section 501(c) (3) of the Internal Revenue Code, provided that the gross income derived therefrom does not constitute unrelated business income as defined in Section 512 of the Internal Revenue Code. 4 . Any space or rental unit exempt pursuant to California Civil Code section 798 . 17 . F. "Tenant" means and includes a tenant, subtenant, lessee, sublessee or any other person entitled to the use or occupancy of any rental unit. SECTION III . PROHIBITION OF RENTAL INCREASE DURING TERM OF INTERIM ORDINANCE. A. Beginning on the effective date of this Ordinance and continuing for a period ending 120 days after its effective date, or until such time as the Board of Supervisors adopts an ordinance providing for rent stabilization on a permanent or on- going basis, or until the Board of Supervisors repeals this ordinance, whichever occurs first, the amount of rent for a rental unit, -as defined herein, shall not be increased except as provided in Subsection B. 3, below. B. During the period of time established in Subsection A, immediately above, the maximum rent for a rental unit in the unincorporated area shall be the following: - 3 - ORDINANCE NO. 94/ 1 . For a rental unit which was rented as of. September 20, 1994, and continued to be rented thereafter to one or more of the same persons, the rent shall not exceed that in effect on September 20, 1994 . The level of housing services provided to the rental unit on that date shall not be reduced during the period set forth in Subsection A, above. 2 . For a rental unit which was not rented as of September 20, 1994, but was subsequently rented and continued to be rented to one or more of the same persons, the rent shall not exceed the lessor of (a) the rent the unit was offered for or available for on September 20, 1994; or (b) the rent in effect on September 20, 1994 for a same or similar unit, so long as such unit continues to be rented to one or more of the same persons. The level of housing services provided to the rental unit on the re-rental date shall not be reduced during the period set forth in Subsection A above. 3. For a rental unit voluntarily vacated on or after September 20, 1994 and prior to the end of the period set forth in Subsection A, above, if the vacancy was voluntary (i .e. , not the result of an eviction, whether for just cause or otherwise) , then the rent may be increased upon the re-rental of the unit. So long as such unit continues to be rented to one or more of the same persons, such rent shall not exceed that in effect on the date the rental is re-rented, nor shall the level of housing services provided on that re-rental date be reduced during the period set forth in Subsection A, above. 4 . For rental units vacated other than voluntarily after September 20, 1994, the rent for such rental unit shall not thereafter exceed the rent in effect immediately prior to such involuntary vacation, unless the unit is subsequently voluntarily vacated. The level of housing services provided prior to such involuntary vacation shall not be reduced during the period set forth in Subsection A, above. SECTION 4 . VIOLATION OF ORDINANCE. It shall be unlawful for any landlord to demand, accept, receive or retain any payment in excess of the maximum lawful rents set forth in this ordinance. Any person violating any of the provisions, or failing to comply with any of the requirements of this ordinance, shall be guilty of a misdemeanor. Any person convicted of a misdemeanor under the provisions of this ordinance shall be punishable by a fine of not more than One Thousand Dollars ($1,000) or by imprisonment in the county jail for a period of not more than six (6) months, or by both. Each violation of any provisions of this ordinance, and each day during which any such violation is committed, permitted or continued, shall constitute a separate offense. SECTION 5 . REFUSAL OF TENANT TO PAY A RENT INCREASE. A tenant - 4 - ORDINANCE NO. 94/ may refuse to pay any increase in rent which is in violation of this ordinance and such violation shall be a defense in any suit brought to recover possession of a rental unit or to collect rent. SECTION 6 . RETALIATORY EVICTION. In any action brought to recover possession of a rental unit or to collect rent, the court may consider as grounds for denial any violation of any provision of this ordinance. Further, the determination that the action was brought in retaliation for the exercise of any rights conferred by this ordinance shall be grounds for denial. SECTION 7 . CIVIL REMEDIES. Any landlord who demands, accepts, receives, or retains any payment of rent in excess of the maximum lawful rent, in violation of the provisions of this ordinance, shall be liable (to the extent allowed by law) as hereinafter provided to the tenant from whom such payment is demanded, accepted, received or retained, for reasonable attorney' s fees and costs as determined by the court, plus damages in the amount of Five Hundred Dollars ($500. 00) or not more than three times the amount by which the payment or payments demanded, accepted, received or retained exceed the lawful amount of rent, whichever is the greater. Enforcement of this section shall be by the involved parties through ordinary legal proceedings . SECTION 8. SEVERABILITY. If any provision or clause of this ordinance or the application thereof to any person or circumstances is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other ordinance provisions or clauses or applications thereof which can be implemented without the invalid provision or clause or application, and to this end the provisions and clauses of this ordinance are declared to be severable. Further, the Board declares that if the urgency nature of this ordinance is invalidated, it intends the ordinance without the urgency provisions to remain valid and effective and that it would have passed the ordinance even without the urgency provisions . Therefore, the Board directs that this ordinance be treated and published, effective and operative, as both an urgency and non-urgency ordinance. SECTION 9 . DECLARATION OF URGENCY. This Ordinance is hereby declared to be an urgency ordinance for the immediate preservation of the public safety, health, and welfare, and shall take effect immediately upon its adoption. The facts constituting the urgency of this ordinances 's adoption are set forth herein n Section I and in this section. The Board of Supervisors finds and determines that said findings, including the findings regarding existing housing supply and hardships to persons of fixed or limited incomes, and the possible displacement of such persons, represent a serious threat to all - 5 - ORDINANCE NO. 94/ economic segments of the community and especially to senior citizens, persons on fixed incomes, and persons of low income. SECTION X. EFFECTIVE PERIOD, PUBLICATION. This ordinance becomes effective immediately upon passage by four-fifths vote of the Board as provided in Government Code section 25123. If this ordinance is passed by less than four-fifths vote of the Board, it shall become effective thirty days after passage (on second reading) . This ordinance shall continue in effect for a period ending 120 days after its effective date, or until such time as the Board of Supervisors adopts an ordinance providing for rent stabilization on a permanent or ongoing basis, or until the Board of Supervisors repeals this ordinance, whichever occurs first. Within fifteen days of passage, the Clerk shall publish this ordinance once the names of the Supervisors voting for and against it in the a newspaper published in this County. PASSED on by the following vote: AYES: NOES: ABSTAIN: ABSENT: Chair, Board of Supervisors ATTEST: Phil Batchelor, Clerk of the Board of Supervisors and County Administrator By: Deputy Clerk (Seal) LTF 14 .ordmob.994 6 _ ORDINANCE NO. 94/ June 16, 1994 Sun Valley Tenants 125 Sahara Drive Pacheco, CA 94553 To all it may concern, When management and homeowner's representatives' negotiated the current lease agreement, we expected inflation to grow at a faster pace. With inflation moving at a 3% annual gate, we would like to offer the following as an option to all tenants who signed the three year lease. Extend current lease to expire January 31, 1999 with an increase in rents as follows: February 1, 1995 15.00 February 1, 1995 18.00 February 1, 1997 20.00 February 1, 1998 .25.00 Except for pass thrus, all other provisions will remain the same. Pass thrus will be limited to State and Local taxes or other charges. THERE WILL BE NO PASS THRUS FOR ANY CAPITAL IMPROVEMENTS TO THE PARK. This program will also be available to "the few tenants who did not sign the lease agreement. July 31, 1994 will be the cut off date for anyone wishing to participate in this program. Thank you for your attention regarding this matter. in erely, Jesse D. Yohanan Westates Management a September 26, 1994 URGENT A#7 . Dear Supervisor DeSaulnier, Re;Mobile Home Park Rent Control This is to let you know that as a Contra Costa County park owner, we have received absolutely no notification about your proposed rent moratorium on for TOMORROW' S Board of Supervisor' s agenda. We only know of it through reading the article in the September 9, 1994 West County Times as the Supervisors forge ahead with a rent moratorium, and a rent control ordinance, We are a family owned and operated Park. We are offended by your false stereotyping of us and other small park owners as "corporate park owners" and "self-serving" . in reality it could be that you are the self-serving one with great interest in being reelected. The system is breaking down as you attempt to destroy our right to due process in that we have been given no notice of the proposed moratorium. The County constantly notifies us about taxes, inspections, increased permit fees , and other, notices requiring our immediate compliance. Why then are we kept in the dark about what is occurring at meetings of the Mobile Home Task Force and the proposed rent moratorium? Our private property rights are very much affected when rent control is imposed. We immediately loose 25% of the value of our family investment. As property owners and Contra Costa County property tax payers we are being denied due process. That is illegal. . Sin .ey, he Frizzell am " Marina Mobile Manor RECEIVED cc: Hoard of Supervisors SEP 2 6 1994 CLERK ONTRA OF SUPERVISORS Tn Inn' OH G'C : R V6. 9Z d3S ZOLZ8SZ80V : QI HSS3A1.J39 ZO To: -Supervisor Tom Powers, Reference: -Mobile Home Parks Dear Mr. Powers, You will I trust excuse me for corresponding with you, but my speech impediment I beleave hampers me from giving my true feeling to what I am about express. On September 20th. 1994 at the Supervisors meeting, I requested a moratorium be placed on all Mobile Home Park rents within the unincorporated area of Contra Costa County. My reasons for this are simple, rent stabilization will not be obtained without a great deal of expession by the following: - 1 . . . . . Park Owners who have gouged their residents, will obviously object to any form of rent stabilization. 2. . . . . Residents may have apprehension as to their future, even with rent stabilization. 3. . . . . I am positive all Park Owners will require a return on their investment. There are many more problems, which no doubt you are going to encounter before you must make a very tricky decision. Therefore a moratorium on rents must be implemented back to September 20th. 1994. Thank you. Sincerely, ° Doug. Platt, resident of the Willows Mobile Home Park. September 26, 1994 URGENT Dear Supervisor DeSaulnier, Re;Mobile Home Park Rent Control This is to let you know that as a Contra Costa County park owner, we have received absolutely no notification about your proposed rent moratorium on for TOMORROW' S Board of Supervisor' s agenda. We only know of it through reading the article in the September 9, 1994 West County Times as the Supervisors forge ahead with a rent moratorium, and a rent control ordinance. We are a family owned and operated Park. We are offended by your false stereotyping of us and other small park owners as "corporate park owners" and "self-serving" . In reality it could be that you are the self-serving one with great interest in being reelected. The system is breaking down as you attempt to destroy our right to due process in that we have been given no notice of the proposed moratorium. The County constantly notifies us about taxes, inspections, increased permit fees , and other notices requiring our immediate compliance. Why then are we kept in the dark about what is occurring at meetings of the Mobile Home Task Force and the proposed rent moratorium? Our private property rights are very much affected when rent control is imposed. We immediately loose 25% of the value of our family investment. As property owners and Contra Costa County property tax payers we are being denied due process . That is illegal. cere he Frizz 11 Fily Marina Mobile Manor cc: Board of Supervisors RD OF SuPgRVISORS CIERKCO 0,COSTA CO. September 26, 1994 URGENT 7(.11.14 t <� �� Dear Supervisor DeSaulnier, �•rr Re;Mobile Home Park Rent Control This is to let you know that as a Contra Costa County park owner, we have received absolutely no notification about your proposed rent moratorium on for TOMORROW'S Board of Supervisor' s agenda. We only know of it through reading the article in the September 9, 1994 West County Times as the Supervisors forge ahead with a rent moratorium, and a rent control ordinance. We are a family owned and operated Park. We are offended by your false stereotyping of us and other small park owners as "corporate park owners" and "self-serving" . In reality it could be that ,you are the self-serving one with great interest in being reelected. The system is breaking down as you attempt to destroy our right to due process in that we have been given no notice of the proposed moratorium. The County constantly notifies us about taxes, inspections, increased permit Fees , and other, notices requiring our immediate compliance. Why then are we kept in the dark about what is occurring at meetings of the Mobile Home Task Force and the proposed rent moratorium? Our private property rights are very much affected when rent control is imposed. We immediately loose 25% of the value of our family investment. As property owners and Contra Costa County property tax payers we are being denied due process . That is illegal. Sin#e eY, 0441 he Frizzell am " Marina Mobile Manor RECEIVED cc: Hoard of Supervisors SOARC)or SEP 2 6 1994 CLERKCONTRA COSTA CgORS CO- Tn• A b6, 9Z d3S 7.0ZZ8SZ80b: QI t1SS3Ald 139 ZO RECEIVED (� ? rl-1 9�D/,vrf 7>R. :2. 31 SEP 2 6 1994 ylo4 cf{F-ro CA yS'37-3 CLERK BOARD OF SUPERVISORS �� 1 CONTRA COSTA CO. i> ,9 u-rhr Zip- .,4k AY� eta x Z7 4'rA ov� 0--4�1441 �Ml11Qf48[7 RENTAL HOUSING ASSOCIATION A member of the California Apartment Association September 23, 1994 Supervisor Tom Powers, Chair Contra Costa Board of Supervisors County Administration BuildingRECEIVED 651 Pine Street Martinez, CA 94553-1229 - - - SFP 2:6W RE: Mobile Home Rent ControlCLEt's_ '�, �OF SUPEF�VISORS CogTA CO. Dear Supervisor Powers: On Tuesday, September 27, you will considering an emergency ordinance to freeze rents in mobile home parks. This proposal is part of an apparent overall direction to adopt a mobile home rent control ordinance "or procedure" for Contra Costa County. The Rental Housing Association is adamantly opposed to rent control. It does not protect housing opportunities for seniors or low income persons. A 1994 study by the Real Estate and Land Use Institute at U.C.-Berkeley concluced that rent control has, in fact, casued a loss of housing available to those two census groups. The study compared these census groups for Berkeley/Alameda County and Santa Monica/Los Angeles County. Further, has the Board considered the cost of creating a rent control bureaucracy? The Task Force considered three virtually identical ordinances. CoCoMOA's (which was drafted by GSMOL, the state mobile home tenant's group) and which is the basis for the Fremont and Milpitas (AKA Concord) ordinances. The Concord City Council was told by GSMOL representatives that the administrative costs for the Milpitas (Concord/Fremont/GSMOL) ordinance were very low. So how much will a mobile home rent control ordinance cost the County? Let's use a mobile home rent control ordinance which is actually more lienient (thereby creating fewer hearings, disputes, etc. ) and has been in effect since 1980 (thereby creating a economic/legislative history) . That ordinance is from the City of Hayward. 3333 Vincent Road, Suite 220 o Pleasant Hill, California 94523- (510) 932-3234- Fax (510) 932-4678 -2- According 2-According to a staff report from the City of Hayward, the cost to administer the rent control program in Hayward for FY 1993-94 was $159,589: But let's be more specific. The cost to administer the mobile home rent control (yes, Hayward has both forms of rent control) is $68,816. . .and that does not include $86, 197 in what is termed "common costs. " The largest single component is the cost for employee services. Assuming an even split of common costs, is the County prepared to spend $111,914 to administer a mobile home rent control program? A program which by the very wording of the ordinance is more restrictive than the City of Hayward's. By the way, the per space fee to administer the program in Hayward is $37.91-- which by law is passed on to the tenants. Why enact a mobile home rent control ordinance which covers everyone to solve the problems of a few? For example, park closures are a direct side effect which the Board may have to face given the proposed ordinances. It would appear that voluntary agreements and/or mediation between parks owners and tenants would be the prudent approach. Yes, the RHA recognizes there are distinct differences between mobile home parks and fixed structure rental housing, but also remember all it takes is two weeks' notice and three votes on the Board and the whole scenario changes. Rent control does not work. We strongly urge the Board to reject the proposed ordinances and work on more equitable process to resolve the issue. Resp 7ctfully, �i�v Paul A. Stewart II Executive Director cc: Board of Supervisors PAS/pas