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HomeMy WebLinkAboutMINUTES - 05041993 - 1.52 1 -51 Contra TO: BOARD OF SUPERVISORS ''^ Costa ,. County FROM: Jim Kennedy Deputy Director - Redevelopment DATE: May 4, 1993 SUBJECT: + Mobile Home Advisory Committee Report on Model Leases SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Accept the Contra Costa County Mobile Home Advisory Committee report on the feasibility of a model lease for mobile home parks . FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS As requested by the Board of Supervisors, the Mobile Home Advisory Committee has explored the feasibility of developing a model lease agreement for mobile home parks in Contra Costa County. Due to substantial diversity in the operating characteristics and needs of the County' s mobile home parks and their residents, the Committee has concluded that it is neither feasible nor desirable to produce a single model lease for use in all parks . Instead, the Committee has developed guidelines for recommended lease elements wh' h are either CONTINUED ON ATTACHMENT: X YES SIGNATURE: V RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDTI OF BO RD COMMI EE APPROVE OTHER i i SIGNATURE(S) : ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT ��' ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Kathleen Hamm 646-4208 ATTESTED 01 cc: County Administrator PHIL BA HEL , CLERK OF County Counsel THE BOAC D OF SUPERVISORS Community Development ND COUNTY ADMINISTRATOR BY , DEPUTY required by current California statutes or recommended by the Committee as beneficial to the interests of park owners and residents . The Committee' s recommendations are hereby presented to the Board of Supervisors in the Mobile Home Advisory Committee Report on the Feasibility of a Model Lease (attached) . kh/kl/MHAC7 Mobilehome Advisory Committee Report on the feasibility of a model lease March 25, 1993 The Board of Supervisors requested the Mobilehome Advisory Committee to explore possibility of producing a model lease that could be offered for use in Mobilehome Parks in Contra Costa County. The Committee reviewed several submitted leases and heard discussions on the application and use of various provisions. The Committee found there to be a great diversity in the operational needs of mobilehome parks in the County. Many of the provisions which were thought to be necessary or useful in a rental agreement would work fine in some parks and not in others. The use and construction of lease provisions varied widely in rental agreements or leases depending on many factors such as the type and size and age of the parks; the social makeup of residents in a park, considering its homogeneity or diversity of lifestyle; the existence or lack of community facilities or amenities, and various management styles. We found it impossible to produce a "model lease" that could serve all or even most mobilehome parks due to the diversity of needs which make the operation of each mobilehome park virtually unique. However, the Committee agreed that certain elements are common to all leases, and depending on the individual operation, certain other provisions would be recommended or found to be beneficial to both residents and management when tailored to individual parks. We therefore submit the provisions herein as "guidelines only" which one may wish to consider when constructing a lease. The list is not. meant to be exhaustive. The following suggestions for lease construction are enumerated as provisions: (1) required, (2) recommended, and (3) beneficial. Suggested elements of a Lease/Rental Agreement (1) Statutory requirements for mobilehome park rental agreements. (see attached excerpt of the Mobilehome Residency Law) : (2) Recommended rental agreement provisions: -If capital replacement costs will be passed through during the term of the agreement, a clear description of the formula(s) that will be used to recover said costs. 1 -if residents are asked to reimburse the costs of capital improvements (as opposed to capital replacements) during the term of their agreement, then in addition to the description of the formula to be used, there should be a provision describing how the residents will be able to participate in the decision making process. We believe that where a vote of Residents is required by contract, the fairest method of resident participation would be the utilization of one Homeowner vote per mobilehome space. -A clear statement of the circumstances under which either party may terminate the rental agreement. -A provision offering agreement to arbitrate unresolved disputes including binding arbitration. Such provision to be stated in the rental agreement in a manner consistent with the California Civil Code and to include a separate place for the resident to initial indicating acceptance of the provision. We believe arbitration clauses in rental agreements provide a less costly and more expeditious approach to resolving good faith disputes between residents and park management. (3) Other Beneficial provisions: -a provision establishing a process for resolving resident complaints or grievances concerning park operations or management. The provision could also include mediation or binding arbitration. Many mobilehome communities have not established or publicized a simple, yet adequately defined procedure for residents to use in getting grievances addressed. We believe a contractual obligation to handle grievances in a specified way would tend to put both management and residents on equal footing. It would also benefit both parties by providing an inexpensive and effective procedure to resolve resident problems and complaints concerning park operations or management. -a provision providing that management meet periodically with the residents as a whole or with resident representatives to discuss issues of importance to residents or park management. We believe such a provision would be mutually beneficial because regular communication is essential to any good relationship. -a provision plainly describing how and when a long term lease may be terminated by a resident during the term of the agreement. This will help to allay fears some residents may have that a beneficial long term lease "locks" them in. -a provision describing how and when a rental or lease agreement may be extended or renewed 2 i -Where it is practical and legally permissible to do so, park owners should break out from base rent and bill separately for those utilities and services whose cost are not controlled by the park owner. The services which should be considered are electric, gas, water, garbage, sewer, patrol service and tv cable service. We believe doing so will be beneficial to both parties because it will give residents greater visibility of the cost breakdown and will tend to reduce misplaced animosity toward park management who has no control over when and how much these cost are increased. -a beneficial attachment or accompaniment to the rental agreement would be a statement of management policies, such as office hours, times when amenities are available, the chain of command - a listing of emergency response personnel including the order in which they should be contacted and any other useful information concerning the specific mobilehome community. -where practical and financially feasible for management, a provision establishing a rent deferral or rent loan program to assist Homeowners experiencing a unique financial hardship. -expanded detail on the methods and timing used when billing separately for utilities and services, such as: electric, gas, water, garbage, sewer, patrol, cable service, ry storage, long term guests, extra parking, pets where facilities are provided, space maintenance charge. Late fees and returned check charges should be stated. 3 i STATUTORY REQUIREMENTS FOR MOBILEHOME PARR RENTAL AGREEMENTS. Excerpt of the California Civil Code CHAPTER 2.5. MOBILEHOME RESIDENCY LAW ARTICLE 1. GENERAL § 798.15. Writing; required contents The rental agreement shall be in writing and shall contain, in addition to the provisions otherwise required by law to be included, all of the following: (a) The term of the tenancy and the rent therefor. (b) The rules and regulations of the park. (c) A copy of the text of this chapter shall be attached as an exhibit and shall be incorporated into the rental agreement by reference. Management shall provide all homeowners with a copy of this chapter prior to February 1 of . each year, if a significant change was made in the chapter by legislation enacted in the prior year. (d) A provision specifying that it is the responsibility of the management to provide and maintain physical improvements in the common facilities in good working order and condition. (e) A description of the physical improvements to be provided the homeowner during his or her tenancy. (f) A provision listing those services which will be provided at the time the rental agreement is executed and will continue to be observed for the term of tenancy and the fees, if any, to be charged for those services. (g) A provision stating that management may charge a reasonable fee for services relating to the maintenance of the land and premises upon which a mobilehome is situated in the event the homeowner fails to maintain such sand or premises in accordance with the rules and regulations of the park after written notification to the homeowner and the failure of the homeowner to comply within 14 days. The written notice shall state the specific condition to be corrected and an estimate of the charges to be imposed by management if the services are performed by management or its agent. (h) All other provisions governing the tenancy. § 798.16. Inclusion of other provisions The rental agreement may include such other provisions permitted by law, but need not include specific language contained in state or local laws not a part of this chapter. 4