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HomeMy WebLinkAboutMINUTES - 06131995 - D3 D. 3 THE BOARD OR SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on _June 13, 1995 by the following vote: AYES: Supervisors Rogers, Smith, DeSaulnier, Torlakson, Bishop NOES: None ABSENT: None ABSTAIN: None SUBJECT: Proposed Mobile Home Rent Control Ordinance, Rental Accord and Standard Lease The Board considered the reports received from County Counsel's Office and Community Development Department staff as presented in the Internal Operations Committee Report this day. (A copy of the reports are attached and included as a part of this document. ) The following persons spoke on the issues: Joe Schneider, 137 Algiers Way, Pacheco; Doug Platt, (no address given) ; Bill Richard, Mariner's Cove Mobile Home Park, Bay Point; June Dellapa, Sun Valley Village Mobile Home Park, 176 Elminya Drive, Pacheco; Russ Harris, Bethel Island Mobile Home Park, Space 40A, Bethel Island; Gary Willson, d2 Corte Del Bayo, Larkspur; and Paul Steward, Rental Housing Association, 3333 Vincent Road, Pleasant Hill. All persons desiring to speak having been heard, the Board discussed the various concerns presented by the tenants and owners and were in agreement to introduce the proposed Ordinance that would provide for a procedure to control mobile home rent increases. Therefore, IT IS BY THE BOARD ORDERED that the proposed Ordinance providing a system of controls on mobile home rent increases is INTRODUCED, reading WAIVED, and June 20, 1995, FIXED as the time for adoption. IT IS FURTHER ORDERED that standard rent increases for mobile home parks be based on 60 percent of the CPI reported in May, and that staff is DIRECTED to prepare findings to support the 60 percent CPI. In conclusion, the Board CLARIFIED that the replacement of coin operated equipment (i.e. , washers/dryers) shall not be construed as a capital improvement. I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN . ATTESTED: _June 13, 1995 Phil Batchelor,Clerk of the Board of Supervisors and County Administrator By v Deputy cc: Director, CDD County Counsel County Administrator TO: BOARD OF SUPERVISORS 5....` Contra INTERNAL OPERATIONS COMMITTEE J - Costa FROM: ?�- - �i i< County q•;lr� ��40 June 5, 1995 DATE: REPORT ON A PROPOSED MOBILE HOME RENT CONTROL ORDINANCE,. RENTAL SUBJECT: ACCORD AND STANDARD LEASE SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: ]. . RECEIVE reports from the County Counsel ' s Office and Community Development Department staff on the following issues : A. A brief review of the changes which have been made to the draft Ordinance, draft Accord and draft Standard Lease since the Internal Operations Committee' s meeting on June 5, 1995 . B. What documentation or. studies did the City of Fremont rely on . in setting its rental increase limit at 60% of the Consumer Price Index. C. A summary of how many mobile home parks would be affected by the proposed draft Ordinance, namely, those parks in the unincorporated area of the County which currently charge rents of at least $350 . 00 per month. [Both members of the Committee endorse this Recommendation] . 2 . Based on the above reports and other testimony, DETERMINE what percentage of CPI should be used to determine standard rent increases, 60%, 75% or some other figure. [Both members of the Committee endorse this Recommendation] . 3 . Based on the above reports, INTRODUCE, WAIVE READING, and FIX June 20, 1995 for adoption . of an Ordinance providing for a system of controls on mobile home rent increases . [Both members of the Committee endorse this Recommendation] . CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER 2 1 SIGNATURE(S): - r 719 "I" ACTION OF BOARD ON .Tune 1 3, 1 9 9 9 APPROVED AS RECOMMENDED OTHER d VOTE OF SUPERVISORS I REBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND C ECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTER N THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS THE DATE SHOWN. ATTESTED Contact: PHIL BATCHELOR,CLERK THE BOARD OF CC: County inlstrator SUPERVISORS AND COUNTY AD ISTRATOR Count Counsel Co unity Development Director BY DEPUTY -2- 4 . Based on the above reports, DETERMINE whether to approve a revised mobile home Accord and Standard Lease. [Only Supervisor Rogers endorses this Recommendation] . BACKGROUND: On April 4 , 1995, the Board of Supervisors referred to our Committee the report of the Special Mobile Home Task Force, along with the proposed mobile home Accord, Standard Lease and proposed mobile home rent control Ordinance. Our Committee was directed to return to the Board within 45 days with our recommendations for how the Board should proceed. On May 23, 1995, the Board of Supervisors extended until June 13, 1995 the deadline for our Committee' s report back to the Board. At our meeting on May 15, 1.995 we heard testimony from a variety of individuals but were unable to address the individual differences of opinion regarding the specific details of the Ordinance. We agreed to meet again on June 5, 1995 in order to review these details and complete work on a final report to the Board of Supervisors . On June 5, 1995, our Committee met with about 40 individuals and received and considered new drafts of an Ordinance, Accord and Standard Lease prepared by the County Counsel ' s Office. Deputy County Counsel Lillian Fujii and County Counsel Vic Westman reviewed each of these documents with us and highlighted where changes had been made from the previous drafts and noted where there was a difference of opinion between mobile home park owners and mobile home owners regarding various provisions of the various documents . We made a number of changes to each of the draft documents which were before us and asked that the documents be revised and returned to the Board of Supervisors on June 13, 1995, as the Board of Supervisors has directed. One of the issues we reviewed was the basis for limiting standard rent increases to the greater of 3%, $10 per month, or 60% of the increase in the Consumer Price Index (CPI) . The 60% figure was provided for in the Fremont Ordinance which was used as the model for our draft Ordinance. We are unclear what basis the City of Fremont had for using 60% . The draft Ordinance we reviewed was changed to 75% on the basis of a study prepared by Golden State Mobilehome Owners League, Inc. which indicated that the average annual rent increase is 75% of CPI . Absent a study in this County documenting that 60% is a more reasonable figure, it may be difficult to defend a lower figure. This is, however, an open question the Board needs to decide, based on the reports from staff and testimony from concerned and affected individuals and organizations . Our Committee also made a number of changes to the proposed Accord and Standard Lease. The testimony provided to our Committee :indicated that many of the mobile home park owners would prefer to leave the situation as it is at present with no Rent Control Ordinance and, therefore, would not be inclined to sign the Accord. However, Supervisor Rogers believes that if the mobile home park owners are confronted with a proposed Accord and Standard Lease versus a Rent Control Ordinance, it may be that most will sign the Accord and offer the Standard Lease to the mobile home owners in their parks . In those cases where a park owner signs the Accord and offers the Standard Lease to all of the mobile home owners in that park, the park would be exempt from the Rent Control Ordinance. Supervisor Rogers believes the. Accord and Standard Lease will accomplish the same objective as a Rent Control Ordinance with far less administrative effort on the part of the County, the cost of which would eventually be passed on to the mobile home owners and therefore recommends that the Board approve the Accord and Standard Lease and provide for them in the Ordinance. However, Supervisor DeSaulnier believes that the Board should simply enact the Rent Control Ordinance and eliminate the Accord and Standard Lease. Because of the split vote by our Committee, it will be necessary for the Board of Supervisors to determine whether to include the concept of an Accord and Standard Lease in the Ordinance. CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT DEPARTMENT DATE: June 8, 1995 TO: Phil Batchelor, County Administrator Attn: Claude Van Marter, Assistant County Administrator FROM: Val Alexeeff, Director Growth Management& Economic Development Agency SUBJECT: Mobile Home Rent Control Ordinance, Rental Accord, and Standard Lease A report and recommendation of the Internal Operations Committee on the above will be before the Board of Supervisors on June 13, 1995. I anticipate that the Board will accept, in substantial form, the IOC recommendation, and proceed with adoption of a Mobile Home Rent Control Ordinance. The proposed Ordinance, and related documentation, contemplate that the Community Development Department will administer the Ordinance. This memorandum estimates our financial requirements, assuming the issue remains contentious, i.e., a large number of mobile home spaces will be subject to the proposed Ordinance. Under more optimistic assumptions where few mobile home spaces are subject to the proposed Ordinance, these costs could be substantially less, and perhaps even handled by existing staff. We understand that mobile home parks will pay feese to cover costs which will be sufficient provided controversy doesn't rage. Staff is not able to accurately predict the extent to which the proposed Ordinance will apply or fees will be adequate to cover costs. Our approach to financial demands of this new responsibility include: 1. Given start-up costs, and a lag between initiating administrative activities and collection of fees, we would request the Board encumber $50,000 from general revenues in order to provide an assurance of funding through the initial period of Ordinance applicability. The,Community Development Department will report to the County Administrator and the Board of Supervisors on a quarterly basis on the status of the need for encumbrance as the effect of the Ordinance and Accord becomes evident; 2. We can begin with an hourly response to demand for service; 3. Due to the complexity of issues, the Mobile Home Advisory Committee, should the Board continue it, will be staffed by the Contract Planner III handling,Mobile Home Rent Control administration; and 4. Contract Planner III - 100% (salary, benefits and overhead)will require $87,500 for full time. Should you have any questions, please feel free to call ori the at 6-1620, or Jim Kennedy at 6-4076. VA:JK:Ih cc: Harvey E.Bragdon Jim Kennedy Kathleen Hamm File sra18/mobilord.mem CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT DEPARTMENT DATE: June 8, 1995 TO: Board of Su ise-rs FROM: Ji enned �— XX_ epu y Director evelopment SUBJECT: Impact o oposed Or on Mobile Home Parks As currentl osed, the mobile home rent control ordinance will potentially apply to mobile home park spaces with rents at or above $350. Based on a June 1994 survey of mobile home parks with 20 or more spaces, the following parks in the unincorporated area of the County will be impacted by the ordinance: Park Name No. Spaces Mean High Rent Rent District 1 Sobrante Mobilodge 44 $335 $360 Tara Hills 250 $450 $480 District 4 Clayton Regency 189 $410 $410 Curry Creek Trailer Park 23 $337 $350 Concord Cascade 283 $440 $445 Rancho Diablo 159 $405 $426 Suri Valley Village 263 $486 $510 District 5 The Willows 172 $309 $396 Crestview Mobile- home Village 87 $402 $412 Emerald Cove 196 $347 $360 Mariners Cove 150 $377 $400 While the data provided above identifies unincorporated parks potentially affected by the proposed ordinance, it does not reflect the number of spaces impacted for the following reasons: survey does not contain data on individual space rent, therefore it was not possible to identify the specific number of spaces with rents of $350 or more in each park; survey does not include parks with less than 20 spaces; survey does not include spaces subject to long-term leases and therefore exempt from the rent control ordinance in accordance with Civil Code Section 798.17. kh/kl/MHRC1 COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ, CALIFORNIA Date: June 9, 1995 To: Board of Supervisors From: Victor J. Westman, County Counsel By: Lillian T. Fujii, Deputy County Counsel Re: Mobilehome Space Rent Stabilization Ordinance and Accord/Lease Agreement On June 5, 1995, the Internal Operations Committee considered for the final time, the draft Mobilehome Space Rent Stabilization Ordinance and draft Standard Mobilehome Park Accord. This report summarizes and/or explains some of the key points of the ordinance and Accord/Lease Agreement, as well as notes those matters requiring further policy direction. Those matters requiring further policy direction are set forth in this memorandum in bold type. ORDINANCE The ordinance considered by the Committee on June 5, 1995 is attached. Substantive changes from the June 5, 1995 draft (most of which were requested by the ................................. Internal Operations Committee) are shown in A for additions and StFiL�mke outs for deletio u :::herli : diltf€ ir�'ar ; ht `it< h >aaed ns o.......r .. : € r..t . ::f...r .:.:......: .:...... . .............. .:.::::::::::::............................:::::.:::.:::::::::::............:... ::::.. :.;:.::.;:.;:.;::.;:.::.;::.;:::.;:«::.:::.:..... .............. :.... :.::::::::::::::: .::::::::::. ::::::::::::::::.:.:............::::::::::::::::::::::::::.::.....................:::::::::::::::.::::........ ......... ... ..:.........:.. ..............:.....::> 1. CITY OF FREMONT MODEL. Pursuant to the recommendation of the Board's Special Mobilehome Task Force, the proposed ordinance was originally based upon an ordinance adopted by the City of Fremont. On April 28, 1995, attorney David Spangenberg, representing some of the park owners in Contra Costa County wrote a letter to Board members, County Administrator Phil Batchelor, and County Counsel Victor J. Westman. In his letter, Mr. Spangenberg advises that since Fremont's adoption of its ordinance, the Fremont ordinance has been the subject of litigation filed by affected mobilehome park owners. Mr. Spangenberg also notes that the City of Fremont has recently adopted a revised ordinance, which addresses many of Mr. Spangenberg's objections to the County's draft ordinance. We have reviewed the amended Fremont ordinance. While it appears that the amended Fremont ordinance is similar to the original Fremont ordinance in many respects, certain Board of Supervisors June 9, 1995 Page 2 provisions have been changed. In many of the situations where the City of Fremont has amended its rent stabilization ordinance, we have incorporated the same amendments into the attached draft. 2. FINDINGS. The findings note that: • There is a difference between renting space in a mobilehome park and an apartment; that mobilehome owners are in the unique position of having made a substantial investment in their residence for which space is rented; and that this difference has been noted by the State Legislature by the adoption of special mobilehome park legislation. • There is a shortage of mobilehome spaces, especially spaces of suitable sizes in the County, and as a result a low vacancy rate. (The City of Fremont's ordinance notes that part of the shortage of spaces may be due to the City's land use policies. However, this office has been advised by Deputy Community Development Director Dennis Barry that this County's policies have encouraged and not discourage construction of new mobilehome parks.) • Once in place, mobilehomes are seldom moved because of difficulty of finding a suitable alternative site, and because of substantial costs and risks associated with moving mobilehomes. • A substantial number of persons living in mobilehomes are persons on fixed incomes or lower incomes, including many senior citizens. • Unreasonably high rents create hardship for mobilehome owners, and may even cause the displacement of some park residents, which would be detrimental to the public health, safety and .welfare. • Unreasonably high rents may erode any reasonable equity a mobilehome owner has in the mobilehome. • Therefore, it is necessary and in the public interest to protect mobilehome owners from unreasonably high rents, and at the same time, recognize and protect a park owner's right to a fair and reasonable return on the park owner's investment. 3. RENT INCREASE PROVISIONS. This ordinance "freezes" mobilehome space Board of Supervisors June 9, 1995 Page 3 rents at September 20, 1994 levels, subject to the following rent increase provisions: a. Standard or annual rent increase. Rent may be increased annually at an amount which is the greater of 3 %, or 60% or 75 % of the San Francisco, Oakland, San Jose area CPI, subject to Board determination. In the previous draft, this office used 75 % of CPI as the adjustment rate based upon the findings of at least one mobilehome owners' association. However, the Fremont Ordinance uses 60 % of the San Francisco, Oakland, San Jose CPI. We contacted Emily Cote, special counsel for the City of Fremont, who indicated that the 60% of CPI was not an issue in the litigation, possibly because 3 % is guaranteed. In any event, we note that the draft ordinance before you provides a mechanism to adjust rents to provide for a fair rate of return (i.e., an adjustment mechanism that clearly states that the park owner is entitled to a fair rate of return, and a procedure that we believe should not result in a "taking" due to an overly time consuming process). The first standard rent increase will be allowed 90 days after the effective date of the ordinance. The current draft states that the CPI index will be the index published for the month of September. (Proposed section 540-2.204(1).) If the Board declares its intent to consider adoption of the ordinance, we will amend this provision to provide more flexibility as to what month's index may be used. We have modified the annual rent increase section to remove the reference to $10.00 per month increases. Since the ordinance only covers spaces with a rental rate that is $350.00 or more, and the minimum annual increase is 3 %, the minimum annual increase will be $10.50 per month. b. Administrative fee increase. This increase is to allow a park owner to pass through the mobilehome owners, 35 % of fees assessed by the County to cover the cost of administering the ordinance. c. Capital improvement rent increase. This increase is to allow the park owner to recover the costs of capital improvements. The capital improvement increase is of limited duration, and the monthly increase is limited to 5 % of the base rent. A capital improvement increase provision was added to the Fremont ordinance partly to provide a mechanism whereby a park owner could obtain rent increase approval in advance of making a capital expenditure. Board of Supervisors June 9, 1995 Page 4 d. Major rent increase. This increase is to allow the park owner to adjust rents to recover other costs (including capital improvement costs if this alternative is elected by the park owner, e.g., in lieu of being limited to 5 % of the base rent), and to otherwise allow for the establishment of rent at an amount sufficient to provide the park owner with a fair and reasonable return on investment if the other rent increase provisions do not provide for a sufficient return. Annual rent increases and major rent increases are added permanently to the base rent upon which future rent increases are based. 4. EXEMPTIONS. The ordinance applies to all mobilehome spaces except: a. Qualifying Leases. Mobilehome spaces covered by a lease qualifying under Civil Code sections 798.17, subdivisions (a) and (b) are exempt. b. Less than $350 per month. Mobilehome spaces for which the space rent is less than $350.00 per month adjusted annually by 100 % of CPI are exempt. s c. Accord. If the Board adopts an ordinance, the Board must decide whether an "accord exemption" will apply, and under what terms. The current draft provides that mobilehome spaces in a park covered by an accord agreement with the Board of Supervisors are exempt, subject to the Board's determination. The attached draft provide for alternative exemptions, EITHER (1) if at least 50 % of the mobilehome owners not covered by a qualifying lease sign the accord's lease OR (2) if the accord's lease is offered to all mobilehome owners in the park. 5. RENT INCREASE PROCEDURE. The following is the general procedure set forth in the ordinance. a. Notice and Meetinq. The first step for any rent increase is the park owner's provision of notice to all affected mobilehome owners, and the holding of a meeting on the proposed increase. b. 50+ % Petition. If the park owner and the homeowners do not resolve any differences regarding the increase at the meeting, the homeowners must file with the rent review officer, a petition signed by more than 50 % of the affected mobilehome owners. If a qualifying petition is not filed (in most cases within 30 days of the effective date of the increase), the increase goes into effect. Board of Supervisors June 9, 1995 Page 5 c. Mediation. If a petition is filed and verified by the rent review officer, mediation efforts are commenced. The parties have 40 days (unless the parties agree to a longer period) from the petition's qualification to mediate their disputes, with the rent review officer serving as mediator. d. Hearing. If mediation is not successful, the rent review officer appoints a hearing officer to hold a hearing. Time limits are placed upon the hearing. The hearing is required to be commenced no sooner than 30 days or later than 60 days from the termination of mediation efforts. Following the conclusion of the hearing, the hearing officer must render and mail a decision within 20 working days of the hearing's conclusion or the rent increase is deemed granted. 5. "Vacancy Control." No exemption is provided upon a sale of a mobilehome; hence, there is "vacancy control." 6. Fees. The ordinance allows the Board to set fees for specified procedures; but in any case, provides for all fees to be recouped from the park owner, subject to "pass-through" provisions. 7. Rent Control Initiative. The County Clerk's Office has confirmed that the initiative measure entitled "Mobilehome Rent Assistance, Mobilehome Rent Control Restrictions, Initiative Statute," has qualified for the March, 1996 presidential primary ballot. This measure would phase-out local (cities and counties) mobilehome rent stabilization ordinances. Pursuant to Supervisor Rogers' request we reviewed the language of the initiative for ways to provide additional measures to protect mobilehome owners should the initiative pass. Initially, we note that the County's ability to enact a mobilehome space rent control ordinance is derived from the County's "police power" - the power granted by Article 11, section 7 of the California Constitution to a general law city or county to "make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws." (Emphasis added.) Thus, the County's police power is limited by general laws, for example, state statutes, including state statutes passed by initiative. Upon reviewing the language of the initiative, it appears that the intent of the drafters of the initiative may be to abolish local mobilehome space rent control measures. Given this probable intent, if the initiative measure passes, it is unlikely that any local ordinance will be able to circumvent its apparent "no local mobilehome space rent control" edict. However, we have added language to the preemption provisions of the ordinance Board of Supervisors June 9, 1995 Page 6 stating that the ordinance continues in effect with these state law provisions. This reinforces the Board's intent, should the Board adopt the ordinance, to have the ordinance operate to the maximum extent allowed under State law, and discourages arguments that with the new state provisions, the ordinance should be declared preempted in its entirety. ACCORD AND LEASE Attached is a draft of the Accord and Lease recommended by the Internal Operations Committee for Board consideration. Most of the changes to the previous (June ................... ............ 5, 1995) draft are shown in d d<t t for additions and tFiL.7177iCe outs for deletions. tiQ .. . . ::::::::: : ::: ;:2:::::r,:::::;::i::i::>: :R:: ......i::i:::::>:::i::i[:':::ii ::.....' ::.................:.:::::: .. ...: " ' ' ::.....i:::i::i:: :`:::::::.....: r r':::: n:::::::. . tt: :: ::r$:< �: n: :::';o1E: d� ectE. n fir. ..sh .wn...on..#h.e..drsft.acoo d.a . ...1 a :e:€: n::shsded ..... ...r..�. :::..t :::::::::: :::.:::::::::.C... .:.:::::::::: ::::t ::: + :::: .:::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::...:::::: .::: .:::::::::: ::::::::::::::::::: .............'9...p...........y ......... . .......... :::.:::.::::.:::.:::.::.:............................................................... .......................................................................................................................................................................... hdild'W ............................ ............................. ............................ ............................. 1. CONCEPT. The Accord is a contract between a park owner and the County. Included as part of the Accord is a standard lease. By entering the accord, the park owner agrees to offer to mobilehome owners in the park, the opportunity to enter the standard lease. In exchange the County agrees that the park owner will be exempt from any rent control regulation enacted by the County to the degree set forth in the accord. 2. ACCORD - PROPOSED SECTION 6, LEASE - OFFER TO MOBILEHOME OWNERS. This section of the Accord will define the park owner's obligation to offer the standard lease to mobilehome owners. As originally drafted, the accord did not require the offer to be extended to all mobilehome owners during the initial offer period (e.g., homeowners in a lease agreement). After the initial offer period, the park owner appeared at liberty to set the rental rate. Issues requiring policy direction if the Board is to adopt the accord concept include: • Who must the standard lease be offered to? All mobilehome owners in the park, including those already a party to a lease? Only those mobilehome owners not a party to a lease? • What rental rate is to be offered? The rent in effect for the space on September 20, 1994, including those subject to a pre-existing lease? • How long must the lease be offered? For a limited time only (e.g., 90 days)? For the life of the accord? (If the lease must be offered only to those mobilehome owners not a party to a lease, must the offer be made after the pre- existing lease expires, and at what rental rate?) Board of Supervisors June 9, 1995 Page 7 3. LEASE TERMS a. Ten years - Coterminous with Accord. The lease is proposed to be coterminous with the term of the Accord, which is ten years. b. Rent. The draft proposes that rental rate be that rate in effect on September 20, 1994. Increases will be allowed as follows: - Standard or annual rent increase, at 60 % of the San Francisco, Oakland, San Jose CPI. - Increases to pass through to mobilehome owners, increases or decreases in fees and assessments. - Increases to pass through to mobilehome owners, costs to repair or replace physical improvements to common facilities to the extent that the costs exceed of $150 per space, with rent increasable by up to $15.00 per month (the $15.00 per month to be adjusted annually by 100 % of CPI). (Improvement costs equalling the first $150.00 per space are to be borne by the park owner.) - Increases to pass through to mobilehome owners, costs to construct new park facilities to the extent that the costs exceed $150 per space, with rent increasable by $15.00 per month (the $15.00 per month to be adjusted annually by 100 % of CPI). If the new facilities are not mandated by law, the costs may only be passed through if agreed to by at least 50+ % of the mobilehome owners. c. Lease Assignable. The lease is assignable, so a buyer of a mobilehome will have the benefit of the rental rate under the lease. 19a:\bd61395.mem ORDINANCE NO. 95/ MOBILEHOME SPACE RENT STABILIZATION ORDINANCE The Board of Supervisors of the County of Contra Costa ordains as follows (omitting the parenthetical footnotes from the official text of the enacted or amended provisions of the County Ordinance Code) : SECTION I . This ordinance adds Division 540 to the County Ordinance Code, to regulate mobilehome park space rents in specified mobilehome parks . SECTION II . Division 540 is added to the County Ordinance Code, to read: DIVISION 540 MOBILEHOME PARRS Chapter 540-2 Mobilehome Space Rent Stabilization Article 540-2 . 2 General, Definitions 540-2. 202 Findings and purpose. (a) The State of California has recognized, by the adoption of special legislation regulating tenancies of mobilehome owners in mobilehome parks, that there is a significant distinction between the tenants (mobilehome owners ) of mobilehome parks and other dwelling units, and the County of Contra Costa likewise recognizes that tenants of mobilehome parks , unlike apartment tenants or residents of other rental housing, are in the unique position of having made a substantial investment in a residence, the space for which (mobilehome space) is rented or leased as distinguished from owned. (b) There is presently within the unincorporated area of . the County and surrounding areas a shortage of developed spaces, especially spaces of suitable sizes, for the location of mobilehomes, and because of this shortage of developed mobilehome spaces there is a low vacancy rate in mobile home parks which rent mobilehome spaces to mobile homeowners . (c ) Mobilehome owners , unlike apartment tenants or residents of other rental units , are in the unique position of having made a substantial investment in a residence for which space is rented June 13, 1995 D R A F T 540-2.204 Definitions . As used in this chapter, the following words and phrases shall have the meanings set forth herein unless it is apparent from the context that a different meaning is intended. (a ) "Affected mobilehome owners" means all mobilehome owners in a mobilehome park who have been notified by the park owner that a rent increase is to become effective on the same date, or who have been otherwise made aware, in the absence of such notification, that a rent increase (including a reduction in housing service) has or is to become effective on the same date. (b) "Base rent" means the space rent charged and allowed by County ordinance on September 20, 1994 , plus any rent increase allowed thereafter pursuant to this chapter unless otherwise provided . The base rent for any mobilehome space that was not occupied on September 20, 1994 shall be the highest space rent charged by the park owner for a comparable space in the park on September 20 , 1994 , plus any rent increases allowed thereafter pursuant to this chapter unless otherwise provided. (c ) "Capital improvements" means those expenditures at a mobilehome park that may be characterized as capital improvements for federal income tax purposes . (d) "Consumer Price Index" means the Consumer Price Index for all Urban Consumers, San Francisco-Oakland-San Jose area (or, if the area designation is revised, for the area which encompasses the County of Contra Costa ) , published by the U.S . Department of Labor, Bureau of Labor Statistics . (e) "Hearing Officer" means a person designated by the Rent Review Officer to hear a petition pursuant to this chapter who is neither a mobilehome owner nor who has an interest in a mobilehome park of a nature that would required disqualification under the provisions of the Political Reform Act if the person is an elected state official . ( f ) "Housing service" means a service provided by the park owner related to the use or occupancy of a mobilehome space, including but not limited to maintenance of the common area of the mobilehome park, for which the park owner expends money or other quantifiable consideration. For purposes of this ordinance housing services do not include intangibles or other benefits associated with living at the property for which the park owner does not expend money or other quantifiable consideration. (g) "Mobilehome" means a structure designed for human habitation and for being moved on a street or highway under permit pursuant to section 35790 of the Vehicle Code. ORD. 95/_ June 13, 1995 - 3 - D R A F T "Mobilehome" includes manufactured home, as defined in the Health and Safety Code, but does not include a recreational vehicle, as defined in section 799 . 29 of the Civil Code, or a commercial coach, as defined in section 18001 .8 of the Health and Safety Code, or factory-built housing as defined in section 19971 of the Health and Safety Code. (h) "Mobilehome owner" means a person who has a tenancy in a mobilehome park under a rental agreement, having the right to the use of a mobilehome space on which to locate, maintain and occupy a mobilehome, site improvements, and accessory structures for human habitation, including the use of the services and facilities of the mobilehome park. "Mobilehome owner" does not include a person who is a resident in a mobilehome but who does not have a tenancy. (i ) "Mobilehome park" means any area or tract of land within the county where two or more mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes . ( j ) "Mobilehome space" means the site within a mobilehome park intended, designed, or used for the location or accommodation of a mobilehome and any accessory structures or appurtenances attached thereto or used in conjunction therewith. "Mobilehome space" does not include any newly constructed space initially held out for rent after January 1 , 1990 . (k) "Park Owner" means a person or entity that owns or operates a mobilehome park business in the unincorporated territory of the County. (1 ) "Percent change in Consumer Price Index" means the annual percent change in the Consumer Price Index, calculated to the nearest tenth, published for the month of September, issued in the month of August. In the event that an index is not published for the month of September, the closest preceding month for which an index is published shall be used. (m) "Rental agreement" means an agreement between the park owner and the mobilehome owner for the use and occupancy of a mobilehome space establishing the terms and conditions of mobilehome park tenancy. A lease is a rental agreement. (n) "Rent increase" means any additional space rent demanded of or paid by a mobilehome owner for a mobilehome space, including any reduction in housing services without a corresponding decrease in the amount demanded or paid for space rent. (o) "Rent Review Officer" means the person or persons ORD. 95/_ June 13, 1995 — 4 — D R A F T designated by the County Administrator to administer and enforce the provisions of this ordinance. (p) "Service reduction" means any reduction in housing service below the level of service existing on or after September 20, 1994, which results in a cost savings to the park owner without a corresponding decrease in rent. The reduction or deferment of maintenance below the level existing on or after September 20, 1994 may constitute a service reduction. However, normal wear and tear or the common area and/or mobilehome space does not constitute a service reduction. (q) "Space rent" means the money demanded and received by a park owner for the use or occupancy of a mobilehome space and the non-exclusive use of the common area facilities, but excluding separately billed utilities or reasonable charges for services actually rendered. Nothing in this chapter shall be deemed to regulate rent charged for mobilehomes , as opposed to mobilehome spaces . (r) "Substantial rehabilitation" means that work done by a park owner to a mobilehome space, housing services , or to the common area of the mobilehome park, exclusive of a capital improvement, the value of which exceeds two hundred dollars and which is performed either to secure compliance with any state or local law or to repair damage resulting from fire, earthquake, or other casualty or natural disaster, to the extent the cost of such work is not reimbursed by insurance, security deposit proceeds, or any other source. (Ord. 95-_, § 2 . ) 540-2. 206 Applicability; exemptions . (a) The space rent increase limitation provisions of this chapter shall apply to all mobilehome spaces in mobilehome parks in the unincorporated area of this County not otherwise exempt from said requirements, either by this section, chapter, or any applicable State or federal law. (b) Exemptions . The space rent increase limitation provisions of this chapter shall not apply to the following: ( 1 ) Mobilehome spaces covered by rental agreements subject to Civil Code section 798 ..17 (a) and (b) , to newly constructed mobilehome spaces pursuant to Civil Code section 798 . 45, or to utilities billed separately pursuant to Civil Code section 798 . 41 . ( 2 ) Mobilehome spaces for which the space rent is less than $350 . 00 per month, adjusted annually by 100 percent of the percent change in the Consumer Price Index. ORD. 95/ June 13, 1995 - 5 - D R A F T ( 3 ) Mobilehome spaces in a mobilehome park covered by an accord between the Board of Supervisors and the park owner, which accord is in the form of a Standard Mobilehome Park Accord approved by the Board of Supervisors; ;< ..;;; ::::;;; c ;;;;;;: xg:<;ats:;: : � at C ue d b AUX. agrqMq n Duh :c tt C ae . .. mt+ ed the stniard 1eata+ h, d::.:t ' cerci: made. .:art . <::. h accord ,agx�ex nt > ::> j;.`so: l r�nq as . :ztandard> as :"a tac iced tc a ;d n d ; a part of t � Co ac ................. f: d tt� 1 ma i lend hers XF:xn ;thy p rk ...n ..ud thea: party tcx base ube,�t trice aril Codeseton l � ; and fib ) ; during the accord r s xnxta 6fl dar las : offer period (4 ) Mobilehome spaces in mobilehome parks in which the highest space rent charged is less than the median space rent charged for mobilehome spaces in comparable mobilehome parks upon the adoption by the Board of Supervisors of a program to determine median mobilehome space rents . A program to establish median mobilehome space rents shall provide for the establishment of median space rents for comparable mobilehome parks by resolution of the Board of Supervisors . The determination of the Board of Supervisors of median space rent in comparable mobilehome parks shall be subject to the reasonable discretion of the Board of Supervisors, taking into consideration at least the following: location of the park and housing services provided by the park owner. (Ord. 95-1, § 2 . ) 540-2. 208 Notices . Rent increases pursuant to this chapter shall not be effective and shall not be demanded, accepted, received or retained until the park owner has given all notices required by state law. Notices required by state law may be given concurrently with proceedings under this chapter. It is understood that the park owner may give notice required by state law before any hearing, decision, or other final action under this chapter. (Ord. 95-,, § 2 . ) Article 540-2.4 Space Rent Increase Limitations 540-2.402 Mobilehome space rent increase limitations. The maximum space rent chargeable for a mobilehome space subject to the provisions of this chapter shall be the base rent. Increases in the base rent shall be allowed only pursuant to the provisions of this chapter. (Ord . 95-_, § 2 . ) 540-2 .404 "Standard" Annual Rent Increases. Except as ORD. 95/ June 13, 1995 - 6 D R A F T provided in section 540-2 . 406 , 540-2 . 408 and 540-2 . 410 , the space rent payable for use or occupancy of any mobilehome space shall not be increased by a park owner within any twelve-month period more than the greater of : ( 1 ) Three percent; or of the percent change in the Consumer Price Index, provided that no rent increase of more than six percent may be imposed pursuant to this section. All standard rent increases shall become a part of the base rent upon which future rent increases are based. The initial standard rent increase shall be allowed on after ninety ( 90 ) days after the effective date ( feffective datel ) of this ordinance provided all required notices have been given. (Ord. 95-_, § 2 . ) 540-2.406 Administration Fee Rent Increases. In addition to the standard rent increase, a park owner may increase the space rent payable for a mobilehome space within any twelve-month period, in order to apportion and pass through on a pro-rata basis , to each mobilehome space subject to the provisions of this chapter on a pro-rata basis, the allowable percentage of 'o :? ................... ....................... administration fees pursuant to section 540-2 . 1602 . The administrative fee shall be noticed and implemented at the same time as any standard rent increase provided the park owner has been given adequate notice of the amount of the administrative fee. The administrative fee rent increase shall not be included as part of the base rent upon which future rent increases are based and shall be deleted from the space rent once the mobilehome owner' s pro-rata share of said administrative fee rent increase has been collected. (Ord. 95-_, § 2 . ) 540-2.408 Capital Improvement Rent Increases. A park owner may increase the mobilehome owner' s rent based on the mobilehome owner' s pro-rata share of capital improvement expenditures in the park. The purpose of this section is to provide the park owner a streamlined procedure for recovering capital improvement dollars invested in the mobilehome park. Any such rent increase shall be amortized over the useful life of the capital improvement, using the table of capital improvement set forth in section 540-2 . 1210 . If the table of capital improvement life expectancies in section 540-2 . 1210 is not applicable, the park owner shall use the Class ORD. 95/_ June 13, 1995 - 7 - D R A F T Life Asset Depreciation Range System ( "ADR System" ) . Interest may be imputed on any such rent increases using the prime rate in effect thirty ( 30 ) days prior to the date of the application, plus two percent ( 2 a ) . However, in no event may any single rent increase, or any cumulative rent increases under this subsection exceed five percent ( 5 0 ) of the mobilehome owner' s then existing rent . Any rent increase implemented under this section based on the cost of capital improvement shall not be included as part of the base rent upon which future rent increases under this chapter are based and shall be deleted from the space rent once the mobilehome owner's pro-rata share of the capital improvement rent increase has been recovered. Nothing in this section shall preclude a park owner from foregoing the right to seek a rent increase under this section and instead applying for a major rent increase, including applying for a major increase based on capital improvement expenditures that would otherwise result in a rent increase in excess of five percent (5 % ) of the mobilehome owner' s then existing rent. (Ord. 95-_, § 2 . ) 540-2.410 Major Rent Increases . An increase in the space rent payable for any mobilehome space within any twelve-month period more than the amounts permitted in sections 540-2 . 404 , 540-2 . 406 , 540-2 . 408 and/or a reduction in a housing service( s ) without a concurrent decrease in space rent shall be considered a major rent increase and is subject to the provisions set forth in article 540-2 . 6 , and other provisions of this chapter. All major rent increases shall become a part of the base rent upon which future rent increases are based. (Ord. 95-_, § 2 . ) Article 540-2. 6 Rent Increase - Notice, Meeting 540-4 .602 Notice and Meeting. (a) Notice. Before instituting a rent increase and/or decreasing a housing service, a park owner shall serve a written notice by personal delivery or U. S . mail , first class postage prepaid, of the proposed action, to all affected mobilehome owners and the Rent Review Officer, which notice shall also provide all of the following information: ( 1 ) A time and place for an informal meeting to be scheduled at a time or times convenient for as many affected mobilehome owners as practicable and held on the premises of the ORD. 95/ June 13, 1995 - 8 - D R A F T mobilehome park, giving affected mobilehome owners at least ten ( 10 ) calendar days ' notice, at which time the park owner will be available to meet with the affected mobilehome owners to explain and answer questions related to the proposed action; ( 2 ) Standard and/or administrative rent increase. For rent increases pursuant to subsection (a) and/or (b) of sections 540-2 . 404 and/or 540-2 . 406 , the amount of the rent increase both in dollars and as a percentage of existing space rent and either one or both of the following: (A) A statement that the park owner considers the rent increase consistent with the standard rent increase limitations of section 540-2 . 404 and/or (B) A statement that the proposed rent increase is to recover the cost of rent stabilization administration fees pursuant to section 540-2 . 406 . The notice shall include information supporting the increase, including calculations used by the park owner to apportion the cost of the administrative fee among the affected mobilehome owners ; ( 3 ) Reduction in housing service. For a reduction in a housing service with or without a decrease in space rent, the specific housing service or services to be reduced and the decrease in space rent to be effectuated, if any. The park owner shall also provide any explanation or justification for the proposed action; ( 4 ) Capital Improvement Increase. For a capital improvement increase, the amount of the rent increase both in dollars and a percentage of existing rent, the duration of the rent increase, facts explaining and supporting the increase, including calculations used to determine the how the amount of the increase was determined and apportioned; (5 ) Major rent increase. For a major rent increase other than a reduction in housing service without a concurrent decrease in space rent, the amount of the rent increase both in dollars and as a percentage of existing space rent and facts supporting the increase. (b) Informal meeting. The informal meeting to be held pursuant to subsection (a) shall be conducted for the purpose ' of providing the park owner an opportunity to further explain the proposed rent increase, including providing any -documentation, and allowing both the park owner and affected mobilehome owners the opportunity to resolve any questions or differences they may have concerning the proposed rent increase . The informal . meeting, once begun, may be continued by the park owner to ORD. 95/_ June 13, 1995 9 - D R A F T another date or time . (Ord. 95-_, § 2 . ) 540-2. 604 Failure to comply. Any rent increase, other than a reduction in housing service without a concurrent decrease in space rent, imposed by the park owner without providing notice that substantially complies with the requirements of section 540- 2 . 602 or without holding a meeting shall be void and invalid, and such failure to comply by the park, owner shall be a defense in any action brought by the park owner to recover possession of the mobilehome space or to collect any rent increase that should have been covered by such notice and meeting. (Ord. 95-_, § 2 . ) 540-2 . 606 Rent increase. Following the provision of notice that substantially complies with the requirements of section 540- 2 . 602 and the holding of a meeting, and the provision of all notices required by state law, the rent increase may be implemented unless a timely petition substantially meeting the requirements of section 540-2 . 804 has been filed, in which case collection of the increased rent shall be stayed upon the filing of a qualifying petition pending review of the rent increase. (Ord. 95-_, § 2 . ) Article 540-2.8 Rent Increase Review 540-2. 802 Rent increases - Petition Required. Any rent increase, including a reduction in service without a concurrent decrease in space rent, proposed by a park owner, may be reviewed pursuant to the provisions of this article . (Ord. 95-,, § 2 . ) 540-2.804 Petition. (a) The Rent Review Officer shall review a rent increase upon the filing of a petition in the Office of the Clerk of the Board of Supervisors . The petition shall be signed by more than fifty percent of the mobilehome owners affected by the rent increase. For purposes of determining the sufficiency of the petition, only one homeowner per occupied space shall be counted. The petition shall include a brief summary of the amount of disputed space rent increase or reduction in service without concurrent decrease in space rent, and shall designate the name and address of the mobilehome owners ' representative, the name and address of the mobilehome park, and the name and address of the park representative if known to the homeowners . (b) The petition shall be filed within thirty days of the effective date of the rent increase, except that for a reduction ORD. 95/_ June 13, 1995 _ 10 - D R A F T in housing service without a concurrent reduction in space rent for which notice and a meeting was not provided, a petition may be filed within sixty ( 60 ) days of discovery of the alleged rent increase. With respect to major rent increases effective before the effective date of this chapter but after September 20, 1994 , the petition shall be filed within 30 days after the effective date ( [effective date of chapterl ) of this chapter. No petition may be filed to review rent increases effective on or before September 20 , 1994 . (c) The petition shall be accompanied by any filing fee imposed by the Board of Supervisors to defray the cost to the County of processing the petition and conducting the major rent increase review. (d) Upon the filing of the petition, the Clerk of the Board of Supervisors will forthwith forward the petition to the Rent Review Officer. (Ord. 95-_, § 2 . ) 540-2.806 Verification of petition. Within sixteen ( 16 ) days of the filing of the petition with the Clerk of the Board, the Rent Review Officer shall verify that the petition has been signed by the requisite number of homeowners, and may require the park owner to provide such verifiable information as is necessary to determine what constitutes a requisite number of homeowners . The Rent Review Officer may deem a petition sufficient if the Rent Review Officer is not provided or is unable to obtain verifiable information regarding the adequacy of the petition. (Ord . 95-_, § 2 . ) 540-2 . 808 Mediation. Upon verifying that the petition has been signed by the requisite number of homeowners , the Rent Review Officer shall promptly notify the park owner and the homeowners ' representatives that the petition has been received and found to be sufficient. Within ten ( 10 ) days of verifying a petition as sufficient, the Rent Review Officer shall convene a meeting with the park owner and the homeowners ' representative for the purpose of mediating the rent dispute. In mediating the dispute, the Rent Review Officer may require both sides to submit any information and/or documentation reasonably necessary to resolve the dispute, including the information set forth in sections 540-2 . 1002 and/or 540-2 . 1204 and 540-2 . 1206 , as may be appropriate. If the dispute is not resolved within 40 days of petition verification, the Rent Review Officer shall terminate mediation efforts and, within ten ( 10 ) days of such termination, prepare a record of findings , including findings regarding the parties ' participation and cooperation in the mediation efforts, and transmit said findings to the Hearing Officer, which findings may be considered by the Hearing Officer. The 40-day period for ORD. 95/ June 13, 1995 - 11 - D R A F T resolving disputes may be continued by agreement of the parties . (Ord. 95-_, § 2 . ) 540-2. 810 Hearing. If no satisfactory resolution of the dispute is reached within 40 days of petition verification, or such longer period of time as the parties may agree, the Rent Review Officer shall appoint a Hearing Officer who shall schedule a hearing on the disputed rent increase . The hearing shall be on a date no sooner than 30 days , nor later than 60 days from the termination of the mediation efforts . The Rent Review Officer shall provide mailed notice, first class mail postage prepaid, to the park owner and the mobilehome owners ' representative. The notice shall inform that parties of the date, time and location of the hearing, and that the park owner shall file with the Hearing Officer, two sets of any information necessary to review the rent increase, including any information requested by the Hearing Officer. For major rent increases , the information required by section 540-2 . 1002 shall be provided. For capital improvement rent increases, the information required by section 540-2 . 1204 and 540-2 . 1206 shall be provided. The information shall be provided no later than ten days before the hearing, one set to be provided to the homeowners ' representative by the Rent Review Officer. If the park owner is unable to provide the information in a timely manner, the Hearing Officer shall grant a continuance no longer than ten days after the two sets of the required information is submitted by the park owner. (Ord. 95-_, § 2 . ) 540-2 .812 Hearing Fee. Any hearing fee established by the Board of Supervisors shall be paid by the park owner concurrently with the filing of the any required information. The fee shall be used to pay costs of the County incurred in holding the hearing, including, without limitation, Hearing Officer costs, County staff time, noticing, audit costs, accountant costs and postage. (Ord. 95-_, § 2 . ) 540-2.814 Hearings. (a) General . Hearings to review a rent increases shall be conducted pursuant to the procedures prescribed in this section. .(b) Conduct of Hearing. The park owner and affected mobilehome owners may appear at the hearing and offer oral and documentary evidence. The Hearing Officer shall have such authority and may make such orders as necessary to assure that the hearing is conducted in a timely manner and a decision rendered within the time limits set forth in this section. The hearing Officer shall exercise discretion in the determination of facts . The hearing officer need not require that formal rules of evidence be observed, provided that constitutional rights for a ORD. 95/ June 13, 1995 - 12 - D R A F T fair hearing are protected. The hearing Officer may grant not more than two continuances of the hearing for not more than ten ( 10) working days each, except that the Hearing Officer may grant additional continuances upon the park owner' s request provided the homeowners ' representative is provided a reasonable amount of time to review any additional evidence submitted by the park owner. (c ) Representation of Parties . The parties in a hearing are entitled to be represented by a person or persons of the party' s choosing. The representative need not be an attorney. The written designation of a representative(s ) shall be filed with the Hearing Officer at or prior to the time of representation. (d) Hearing Findings and Determination. The Hearing Officer shall, within fifteen ( 15 ) working days of the conclusion of the hearing, submit a written statement of decision and the reasons for the decision by mail to the park owner; the homeowners ' representative, and the Rent Review Officer. The Hearing Officer may allow the parties to submit briefs or additional information; however, any such submittal shall not ; prolong the decision except upon the written waiver of the park owner. The Hearing Officer' s decision shall determine the amount of rent increase, if any, and the effective date of the rent increase consistent with providing a fair and reasonable return on the involved park owner' s investment . (e) Burden of Proof . The burden of proving the reasonableness of a proposed major rent increase for a fair and reasonable return on investment, other than a reduction in service without a concurrent decrease in space rent, shall be on the park owner. The burden of proof shall be upon the affected mobilehome owners for a housing service reduction without a concurrent space rent decrease. ( f ) Attorneys Fees. This chapter makes no provision for attorneys fees and costs as between park owners and mobilehome owners with respect to any administrative proceeding regarding this chapter, including any appeal of any administrative decision made pursuant to this chapter. Except as expressly provided herein, under no circumstances shall any provision in this chapter be construed to allow either party to apply for or recover attorneys fees from the other in proceedings under this chapter. (g) Decision Final. The decision of the Hearing Officer is final and binding upon the park owner and all affected mobilehome owners, regardless of whether any affected mobilehome owner signed the petition for a hearing or was present or ORD. 95/_ June 13, 1995 - 13 - D R A F T represented at the hearing. The decision of the Hearing Officer shall be subject to judicial review pursuant to section 1094 . 5 of the Code of Civil Procedure. The parties to the hearing may enter an agreement, which shall be signed by the Hearing Officer, that the decision of the Hearing Officer shall be final and binding upon all parties on the same basis as an arbitrator' s decision subject to confirmation, correction or vacation, pursuant to section 1285 et seq. of the Code of Civil Procedure. (h) No decision. If the Hearing Officer does not render and mail a decision within twenty ( 20 ) working days of the conclusion of the hearing, the requested rent increase shall be deemed granted for the period commencing the day after said 20th working day. (Ord. 95-_, § 2 . ) 540-2 .816 Subpoenas . (a) Affidavit. Upon the filing of an affidavit or a declaration under penalty of perjury showing good cause by any party, the hearing, Officer may, at the hearing Officer' s discretion, issue a subpoena requiring a person or entity to attend at a particular time and place to testify as a witness and/or to produce records , documents, or things . Subpoenas shall be issued and attested to by the Hearing Officer in the name of the County. The affidavit or declaration shall specify the exact matters of things desired to be produced, setting forth in full detail the materiality thereof to the issues involved in the proceeding, and stating that the witness has the desired matters or things in the witness ' possession or under the witness ' control, and a copy of such affidavit shall be served with the subpoena. Subpoenas shall designate the business records , documents, and tangible things to be produced either by specifically describing each individual item or by reasonably particularizing each category of item. (b) Service of Subpoenas . Any subpoena requiring that a witness personally appear to give testimony at a petition hearing shall be served in person at least five ( 5 ) calendar days before the witness ' attendance is commanded. Any subpoena duces tecum requiring production of business documents only may be served by first-class mail, and must be served at least twenty ( 20 ) calendarldays before the date set forth on the face of the subpoena . Upon good cause being shown, such time limits may be shortened as is reasonable and necessary. Any subpoena or subpoena duces tecum issued pursuant to the provisions of this section shall be deemed issued by and in the name of the County. (c) Payment of Costs for Subpoenas Duces Tecum. All reasonable costs incurred by any witness not a party to the ORD. 95/ June 13, 1995 - 14 - D R A F T hearing pursuant to a subpoena duces tecum may be charged against the party serving the subpoena duces tecum. "Reasonable cost, " as used in this section shall include, but not be limited to, the following specific costs : ten cents per page for standard reproduction of documents of a size eight and one-half by fourteen inches or less ; twenty cents per page for copying of documents from microfilm; actual costs for the reproduction of oversize documents requiring special processing; reasonable clerical costs incurred in locating and making the records available to be billed at the maximum rate of sixteen dollars per hour per person, computed on the basis of four dollars per quarter hour or fraction thereof; actual postage charges; and actual costs , if any, charged. to the witness by a third person for the retrieval and return of records held by that third person . The requesting party shall not be required to pay those costs or any estimate thereof prior to the time the records are available for delivery pursuant to the subpoena, but the witness may demand payment of costs pursuant to this section simultaneous with actual delivery of the subpoenaed records, and until such time as payment is made, is under no obligation to deliver the records . If a subpoena is served to compel the production of business records and is subsequently withdrawn or modified, the witness shall be entitled to reimbursement for all costs incurred in compliance with the subpoena to the time that the requesting party has notified the` witness that the subpoena has been withdrawn or modified. Where the records are delivered to the attorney or the attorney' s representative for inspection or photocopying at the witness ' place of business, the fee for complying with the subpoena shall not exceed fifteen dollars, plus actual costs, if any, charged to the witness by a third person for retrieval and return of records held off-site by a third person. If the records are retrieved from microfilm the reasonable cost, as defined above, shall also apply. (d) Payment of Costs for Subpoenas Requiring Personal Attendance. When the personal attendance of the custodian of a record or other qualified witness not a party to the hearing is required, said witness shall be entitled to witness fees for each day' s actual attendance in the amount of thirty-five dollars a day plus twenty cents per mile actually traveled, both ways , or such other fee as is provided by statute for the attendance of that witness in courts of the State of California . The fee for one day' s attendance and mileage must be delivered to the witness at the same time the subpoena is served upon said witness , if demanded by him or her. (e) Exclusive Means of Discovery. Other than the subpoenas described in subdivision (a ) above, there shall be no additional discovery in proceedings before the Hearing Officer. (Ord. 95-_, § 2 . ) ORD. 95/ June 13, 1995 - 15 - D R A F T 540-2 . 818 Withdrawal of Petition. Nothing in this ordinance shall preclude or invalidate an agreement between the park owner and the affected mobilehome owners which results in the mobilehome owners withdrawing a petition, either before or after the Hearing Officer' s decision or the decision of a court, provided that the agreement contains no provision by which the mobilehome owners waive rights under this chapter. Any such waiver shall be deemed contrary to public policy and void and unenforceable . (Ord. 95-_, § 2 . ) Article 540-2. 10 Major Rent Increase 540-2. 1002 Required information - Major rent increase. If a hearing on a proposed major rent increase is scheduled, the park owner shall, under penalty of perjury, submit any and all information reasonably required by the Rent Review Officer, including, but not limited to the following: (a) The address of the mobilehome park; (b) The space number of each mobilehome space for which a rent increase is requested; (c) The current and proposed rent schedules for each mobilehome space in the mobilehome park, including the amount of the requested rent increase for each mobilehome space; (d) The facts supporting the requested rent increase,. including supporting documentation; (e) The actual income and operating expenses by category for the mobilehome park for each year of a two year period ending no more than six months before the proposed effective date of the rent increase; ( f ) A schedule of other anticipated fees and income from the mobilehome park; (g) The vacancy rates in the mobilehome park during the preceding two year period; (h) A list of any current leases for mobilehome spaces unaffected by the proposed rent increase extending beyond the effective date of the rent increase, showing the date that each lease expires and the amount and date of change in the space rent for such lease; (i ) Any other information affecting the need for the ORD. 95/ June 13, 1995 - 16 - D R A F T proposed rent increase which is required by the Rent Review Officer; and ( j ) Any other information which the park owner deems relevant. (Ord. 95-_, § 2 . ) 540-2. 1004 Standards of review for major rent increase. (a) Factors . Factors to be considered in evaluating a major rent increase proposed by the park owner include: ( 1 ) Unavoidable increases in maintenance and operating expenses , including but not limited to the reasonable value of the park owner' s labor and any increased costs for services provided by a public agency, public utility, or quasi-public agency or utility. ( 2 ) The substantial rehabilitation or the addition of capital. improvements by the park owner seeking the major rent increase, including the reasonable value of the park owner' s labor, as long as such rehabilitation or improvement has been completed and is : (A) Distinguished from ordinary repair or maintenance; (B) For the primary benefit, use, and enjoyment of the affected mobilehome owners; (C) Permanently fixed in place or relatively immobile and appropriated to the use of the mobilehome park; (D) Not coin-operated nor one for which a "use fee" or other charge is imposed on affected mobilehome owners for their use; and (E) Cost-factored and amortized over the remaining useful life of the rehabilitation or improvement . ( 3 ) The rental history of the affected mobilehome spaces and the mobilehome park, for the immediately preceding thirty-six months, including: (A) The presence or absence of past rent increases; (B) The frequency of past rent increases; and (C)The occupancy rate of the mobilehome park in comparison to comparable mobilehome parks in the same general area . ( 4 ) The physical condition of the affected mobilehome spaces and mobilehome park, including the quantity and quality of' maintenance and repairs performed during the preceding twelve months, as well as the long term patterns of operating, maintenance, and capital improvement expenditures . ORD. 95/ June 13, 1995 - 17 - D R A F T (5 ) Any increase or reduction of housing services since the last rent increase. ( 6 ) Existing space rents for comparable mobilehome spaces in other comparable mobilehome parks . ( 7 ) A decrease in net operating income as provided in section 540-2 . 620 . ( 8 ) A fair return on the property prorated among the mobilehome spaces of the mobilehome park. ( 9 ) Other financial information which the mobilehome park owner provides . ( 10 ) Whether income or expenses in a base or comparison year are unreasonably high or low. If so, the Rent Review Officer may make an appropriate adjustment. (b) No cap shall be placed on rent increases pursuant to this section. It is understood that a park owner is entitled to, and this chapter shall be construed and implemented to afford a park owner a fair and reasonable return on investment . (Ord. 95-_, § 2 . ) 540-2. 1006 Net operating income evaluation for major rent increases . In evaluating a major rent increase proposed to maintain the park owner' s net operating income from the mobilehome park, the following definitions and provisions shall apply: (a) Net operating income of a mobilehome park means the gross income of the mobile home park less the operating expenses of the mobilehome park. (b) Gross income means gross income from the operation of the mobilehome park business, including the sum of the following: ( 1 ) Gross space rents received, provided that uncollected space rents in excess of one percent of gross space rent shall be presumed to be unreasonable and shall be computed as income . The park owner may rebut the presumption by demonstrating that reasonable efforts to collect said uncollected rents , in conformance with industry standards have been made; plus ( 2 ) All other income or consideration received from operation of the mobilehome park business, and/or in connection with use or occupancy of a mobilehome space and related service, including, but not limited to interest paid by the mobilehome ORD. 95/ June 13, 1995 - 18 - D R A F T owners to the park owner. (c) Operating expenses means actual expenditures in operating the mobilehome park business, including the sum of the following: ( 1 ) Real property taxes and assessments . ( 2 ) Utility costs to the extent that they are included in space rent. ( 3 ) Management expenses , including the compensation of administrative personnel (including the value of any such services ) , reasonable and necessary advertising to ensure occupancy only, legal and accounting services as permitted herein, and other managerial expenses . Management expenses are presumed to be not more than five percent of gross income, unless greater management expenses can be documented. ( 4 ) Normal repair and maintenance expenses for the grounds and common facilities of the mobilehome park, including but not limited to landscaping, cleaning, and repair of equipment and facilities . ( 5 ) Park owner-performed labor in operating or maintaining the park. In addition to the management expenses listed in paragraph ( 3 ) , where the park owner performs managerial or maintenance services which are uncompensated, the park owner may include the reasonable value of such services . Park-owner- performed labor shall be limited to five percent of gross income unless the Hearing Officer finds that such limitation would be unfair in a given case. No credit for such services shall be authorized unless the park owner documents the hours utilized in performing such services and the nature of the services provided. ( 6 ) Operating supplies such as janitorial supplies , gardening supplies, stationery, and so forth. ( 7 ) Insurance premiums prorated over the life of the policy. ( 8 ) Other taxes , fees, and permits, except administration fees assessed or paid pursuant to section 540- 540-2 . 1602 are passed through to mobilehome owners . ( 9 ) Reserves for replacement of long-term improvements or facilities, provided that accumulated reserves shall not exceed five percent of gross income. ( 10 ) Capital improvement costs , to the extent said ORD. 95/ June 13, 1995 - 19 - D R A F T capital improvement costs are not passed through in the form of a rent increase pursuant to section 540-2 . 408 . (A) To be included as an operating expense, a capital improvement expense shall be amortized over the reasonable like of the improvement or such other period as may be deemed reasonable under the circumstances when considered in light of existing IRS standards, using the "Class Life Asset Depreciation Range System ( "ADR System" ) . (B) In the event that the capital improvement expenditure is necessitated as a result of accident, disaster, or other event for which the park owner receives insurance benefits, only those capital improvement costs otherwise allowable exceeding the insurance benefits may be calculated as operating expenses . ( 11 ) Involuntary refinancing of mortgage or debt principal . The park owner may include- certain debt services costs as an operating, expense. Such costs are limited to increases in interest payments from those interest payments made during 1994 which result from one of the following situations or the equivalent thereof: (A) Refinancing of the outstanding principal owed for the acquisition of the mobilehome park where such refinancing is mandated by the terms of a financing transaction entered into prior to the effective date of this ordinance (e.g. ) for termination of a loan with a balloon payment . (B) Increased interest costs incurred as a result of a variable interest rate loan used to finance the acquisition of the mobilehome park and entered into prior to the effective date of this ordinance . In refinancing, increased interest shall be permitted to be considered as an operating expense only where the park owner can show that the terms of the refinancing were reasonable and consistent with prudent business practices under the circumstances . (d) Operating expenses shall not include the following: ( 1 ) Avoidable and unnecessary expense increases since the base year. ( 2 ) Debt service expenses , except as provided in subsection (c) ( 11 ) . ( 3 ) Depreciation. ORD. 95/ June 13, 1995 - 20 - D R A F T ( 4 ) Any expense for which the park owner has been or will be reimbursed by any security deposit, insurance payment, judgment for damages, settlement, or any other method. ( 5 ) Legal or attorney' s fees or costs incurred or related to proceedings under this chapter. ( 6 ) Any damages, penalties, fees , or interest assessed or awarded for violation of any provision of this ordinance or of any other provision of law. ( 7 ) Reserve accounts except as set forth in subdivision (c) ( 9 ) of this section. . ( 8 ) Expenses unrelated to the operation of the mobilehome park. ( 9 ) Expenses clearly excessive in relation to the industry standard for the same item. ( 10 ) Expenses related to the sale or conversion of the mobilehome park. ( 11 ) The costs of capital improvements associated with the purchase and/or installation of meters or other similar devices used for the separate billing of utilities, unless the park owner can demonstrate said capital improvement benefits the mobilehome owners . (e) All operating expenses must be reasonable. Whenever a particular expense exceeds the normal industry or other comparable standard, the park owner shall bear the burden of proving the reasonableness of the expense. To the extent that the Hearing Officer finds any such expense to be unreasonable, the Hearing Officer shall adjust the expense to reflect the normal industry or other comparable standard. ( f ) Base year operating expenses and gross income for purposes of this ordinance shall mean operating expenses and gross income in calendar year 1994 . (g) Notwithstanding any other provision of this chapter, in evaluating- a major rent increase proposed on the ground that the park owner is not receiving a fair and reasonable return on investment, the Hearing Officer shall consider all relevant factors, without limitation, including actual income and actual expenditures associated with operation of the mobilehome park business to determine that return. (Ord. 95-_, § 2 . ) ORD. 95/ June 13, 1995 - 21 - D R A F T Article 540-2. 12 Capital Improvement Rent Increases 540-2.1202 Capital improvement rent increases . In order to provide an incentive to park owners to improve their properties and guaranteeing a fair and reasonable rate of return for such improvements , while at the same time protecting mobilehome owners from excessive rent increases , capital improvement rent increases shall be granted in accordance with the requirements of this article. Further, in order to promote advance fiscal planning, park owners shall have the option of obtaining approval for capital improvements before performing the work. In the alternative, park owners may commence rent increase procedures after the work is completed. (Ord. 9 5-_, § 2 . ) 540-2. 1204 Requirements. (a) Criteria. Costs of capital improvements may be approved where the following criteria are met: ( 1 ) The capital improvements were completed or are to be completed on or after September 20, 1994 ; ( 2 ) The park owner has not yet increased the rent or rents to reflect the cost of the work; ( 3 ) The park owner has not been or will not be compensated for the work by insurance proceeds; ( 4 ) The park owner seeks a rent increase pursuant to section 540-2 . 408 no later than twenty-four months after the work has been completed; ( 5 ) The costs are capital improvements as opposed to routine repair; ( 6 ) The costs of the capital improvement are not associated with the purchase or installation of meters or other similar devices used for the separate billing of utilities ; ( 7 ) The individual mobilehome owner' s pro-rata share of the capital improvement costs, or the cumulative capital improvement costs assessed if one or more capital improvement rent increases have been imposed and are still being charged, will not exceed five percent (5%) of the then existing base rent. (b) Cost Allocation. The cost of capital improvements shall be allocated on a pro-rata basis to affected mobilehome ORD. 95/_ June 13, 1995 - 22 - D R A F T owners . (c) Declaration Re: Tax Treatment of Capital Improvement. At the time the park owner notices a capital improvement rent increase, the park owner shall submit to the Rent Review Officer a declaration under penalty of perjury stating that the park owner has , or will, treat the capital improvement as a capital improvement for federal income tax purposes . Once each year during the amortization period for the capital improvement the Rent Review Officer may request the park owner to provide an updated declaration stating under penalty of perjury that the park owner treated the capital improvement as a capital improvement for federal income tax purposes on the park owner' s most recent tax return. In the event the park owner does not provide the Rent Review Officer with such a declaration within 60 days of the Rent Review Officer' s request, the Rent Review Officer may appoint a Hearing Officer to conduct hearings in order to recalculate the amount of the capital improvement rent increase. The hearing and recalculation shall proceed on the presumption that the park owner received a tax deduction for all of the previously non-amortized portion of the capital improvement expenditure during the year immediately following the last year for which the park owner submitted a declaration stating that he was amortizing the capital improvement in accordance with federal law. The sole purpose of the hearing shall be to adjust the amount of the capital improvement rent increase to disallow any excess income the park owner may receive by expensing all of the previously non-amortized portion of the capital improvement in the year immediately following the park owner' s most recent declaration on the subject, rather than continuing to amortize the capital improvement . The park owner shall not be required to submit such a declaration and no such recalculation shall occur if federal law has been changed so that the capital improvement may no longer be amortized, or if the park is sold, in which case the new owner may not be able to amortize any capital improvement expenditure made by the previous owner. (Ord. 95-_, § 2 . ) 540-2. 1206 Required Information. If a hearing on a proposed capital improvement rent increase is scheduled, the park . owner shall, under penalty of perjury, submit any and all information reasonably required by the Rent Review Officer, including, but not limited to the following: (a ) a description of the improvement; (b) contracts documents (including receipts, cancelled checks etc . ) or bid documents showing the cost or estimated cost of the proposed improvement; ORD. 95/ June 13, 1995 - 23 - D R A F T (c) the amortization period to be used; (d) the interest rate to be used or obtained; (e) the formula used to calculate the pro-rata share of each resident; ( f ) the monthly cost to each resident in dollars ; (g) a statement that the cumulative cost of all capital improvement rent increases in effect and to be approved will not exceed five percent ( 5 % ) of the then existing base rent of each tenant . (Ord. 95-_, § 2 . ) 540-2. 1208 Effect of prior approval. Where a park owner obtains prior approval for a capital improvement rent increase pursuant to a hearing, the park owner may make the improvements and is entitled to recover the pre-approved rent increase asset forth in this section. Upon the completion of the improvement the park owner shall submit to the Rent Review Officer, documentation of the actual cost of the capital improvement, and the Rent Increase Notice to be sent to the affected mobilehome residents . If the actual cost is less than the estimated cost, only the amounts actually incurred may be passed through to the mobilehome owners in their proportionate share . If the actual cost of the capital improvement is more .than estimated, the park owner may waive the excess amount and collect only the pre-approved amount, or, the park owner may provide a second notice of capital improvement rent increase for the full amount incurred. In the event that the park owner notices an increase for the full amount, affected mobilehome owners will be entitled to only that portion of the increase which exceeds the pre-approved amount . (Ord. 95-_, § 2 . ) 540-2 . 1210 Review of Capital Improvement Rent Increases . (a) Park owner's Initial Burden of Proof . The burden shall initially be on the park owner to establish that the required information regarding the capital improvement in the park owner' s rent increase notice is accurate, including ( 1 ) The cost of the capital improvement project . ( 2 ) The interest rate used by the park owner. ( 3 ) The amortization period used by the park owner. ORD. 95/ June 13, 1995 - 24 - D R A F T (4 ) The formula used to calculate the pro-rata share of each mobilehome owner. ( 5 ) The cumulative capital improvement rent increases will not exceed five percent ( 5% ) of the then existing base rent. (b) Mobilehome Owner's Burden of Proof to Rebut. Once the park owner establishes that the required information regarding the park owner' s capital improvement proposed rent increase is accurate, the burden shall shift to the mobilehome owners ' representative to show that the rent increase is unwarranted or excessive based upon any and only on the following four alternative grounds : ( 1 ) The cost of the capital improvement project was clearly excessive given industry standards . ( 2 ) The capital improvement was necessitated due to the elimination, reduction, or deferment of maintenance below the level existing on or after September 20 , 1994 , thereby requiring replacement of the pre-existing improvement prior to the expiration of its normal expected life, as adjusted pursuant to this article. ( 3 ) That the interest rate charged is greater than financing reasonably available to the park owner in an arm' s length transaction with a private lending institution. ( 4 ) That the improvement was not reasonably related to the operation of the mobilehome park business . (c) Remedy if Burden of Proof Met By Mobilehome Owners . The purpose of the provisions in this chapter providing for contesting capital improvement rent increases is to ensure the good faith of park owners, including but not limited to ensuring that park owners do not engage in nepotism, kick backs and/or deferred maintenance, or make improvements which are unnecessary to the operation of the mobilehome park business . If the Hearing Officer determines that the tenants have satisfied their burden . of proof with respect to all or any part of .the cost of a capital improvement expenditure, the Hearing Officer may reduce the amount of the rent increase by a corresponding amount, but not more, subject to the limitations set forth in this article and chapter. In the event the Hearing Officer determines that the park owner has engaged in perjury, fraud, nepotism, or kick-backs with respect to a capital improvement rent increase, the Hearing Officer may reduce the amount of the rent increase to the level the Hearing Officer deems appropriate under the circumstances consistent with providing a fair and reasonable return on investment. ORD. 95/ June 13, 1995 - 25 - D R A F T (d) Limitations On Grounds For Contesting Rent Increase. In determining the normal expected life of a capital improvement the Hearing Officer shall look first to the amortization table in this section or, if not applicable, the ADR System and/or the regulations , guidelines and amortization tables established by the internal Revenue Service for capital improvements . It is recognized that the normal expected life of a capital improvement is based on averages and that the actual life may. fall short of the normal expected life, for reasons other than deferred maintenance. In the event the normal expected life of a capital improvement is less than five years , the "adjusted expected life" of the capital improvement shall be 90% of its normal expected life . In the event the normal expected life of a capital improvement is five years or more, the "adjusted expected life" of the capital improvement shall be 80% of its normal expected life. Where a petition is filed challenging a capital improvement rent increase, the Hearing Officer may not reduce the amount of the rent increase by an amount in excess of the difference between the actual life of the capital improvement and its "adjusted expected life. " For example, if the mobilehome owners establish that as a result of deferred maintenance a pre- existing capital improvement with an expected life of 10 years and an "adjusted expected life" of 8 years, in fact only lasted 7 years, the Hearing Officer may reduce the amount of the requested rent increase by 10%, but no more. In no event may the Hearing Officer reduce the amount of a capital improvement rent increase based on alleged deferred maintenance where the capital improvement rent increase is necessitated by a catastrophe, act of God, or other uncontrollable circumstance, including earthquakes, landslides , earth movement, fire or flood. (e) Schedule of Amortization of Capital Expenditures for mobilehome Parks. The following amortization schedule shall be used for the amortization of capital improvements unless the parties present clear and convincing evidence to the contrary. Item Asset Life in Years Air conditioning units 17 Air ducts Galvanized steel 20 Aluminum 25 Plastic 30 Air duct insulation 15 Appliances 5 ORD. 95/_ June 13, 1995 - 26 - D R A F T Dishwasher 2 Garbage disposal 5 Refrigerator 5 Stove 5 Water heater 5 Boilers 15 Fans and ancillary items Fans and motors 12 Electric controls 10 Pneumatic controls 12 Heating and cooling coils 12 Humidifiers and air washers 10 Land improvements , such as sidewalks , roads 20 canals, waterways , drainage facilities , sewers, bridges , fences, landscaping, shrubbery Laundry equipment 10 Lights 10 Painting Exterior 5 Interior 5 Paving Reslurry 4 Resurfacing 8 Pipe Galvanized 12 Copper 25 Pipe valves and special items 12 Plastering 10 Plumbing Fixtures 10 Pipes 10 Pumps Pool 5 Sump 10 Recreation Equipment 10 ORD. 95/ June 13, 1995 - 27 - D R A F T Refrigeration machines Reciprocating 15 Rotary 20 Roofing 15 Sauna 25 Security entry telephone intercom 10 Stokers and burners 12 Stucco 15 Swimming pools 25 Tennis courts 25 Therapy pools 25 Water cooling towers 15 Water evaporative condensers 20 Windows Awnings 5 Drapes 5 Screens 5 Shades 5 (Ord. 95-_, § 2 . ) Article 540-2 . 14 Rights and Obligations 540-2. 1402 Obligation of the parties . (a) If the final decision by the hearing Officer finds that the rent increase, or any portion thereof , is justified, each affected mobilehome owner shall pay, to the extent such payment has not already been made by the mobilehome owner, the amount found justified to be paid to the park owner, within thirty ( 30 ) calendar days after the decision is made . Payment for pre-approved capital improvement rent increases shall commence after the improvements are completed and 30 days ' notice of the rent increase is given. (b) If the final° decision by the hearing Officer finds that the rent increase, or any portion thereof, is not justified, the park owner shall refund any amount found to be unjustified, to the extent such amount has already been paid by the affected ORD. 95/ June 13, 1995 l - 28 - D R A F T mobilehome owner, to each affected mobilehome owner within thirty days after the decision is made. If such refund is not made within thirty ( 30 ) calendar days, the affected mobilehome owner may, to the extent allowed by law, withhold the amount from the next space rent payment, or payments until the full amount of the refund has been made. (c ) Any sum of money that under the provisions of this section is the obligation of the park owner or an affected mobilehome owner, as the case may be, shall constitute a debt and, subject to the foregoing provisions of this section, may be collected in any manner provided by law for the civil collection of debts by private parties . (Ord. 95-_, § 2 . ) 540-2. 1404 Mobile home owner's right of refusal to pay. To the extent allowed by law, an affected mobilehome owner may refuse to pay any rent increase which is in violation of this chapter provided the affected mobilehome owners have filed with the clerk of the board of supervisors, a petition representing more than 50 percent of the affected mobilehome owners . Such refusal to pay shall,, to the extent allowed by law, be a defense in any action brought to recover possession of a mobilehome space or to collect the rent increase, which action is attributed to the refusal to pay. (Ord. 95-_, § 2 . ) 540-2. 1406 Retaliation; mobilehome owners' right to organize. (a ) No park owner, manager, or agent thereof may retaliate against a mobilehome owner for the mobilehome owner' s assertion or exercise of rights under this ordinance, in any manner, including but not limited to: improperly threatening to bring or bringing an action to recover possession of a mobilehome space, engaging in any form of harassment; improperly decreasing housing services; improperly increasing the space rent; or improperly imposing a security depositor any other charge payable by a mobilehome owner. (b) In an action by or against a mobilehome owner, evidence of the assertion or exercise by the mobilehome owner of rights under this chapter or other activity in furtherance of mobilehome owners ' rights and organizations within six months prior to the alleged act of retaliation shall create a presumption affecting the burden of producing evidence that the park owner' s conduct was in retaliation for the mobilehome owner' s assertion or exercise of rights under this ordinance . (c) To the extent allowed by law, any mobilehome owner whose rights under this chapter are violated may bring a civil action for declaratory, and/or injunction relief, and/or for ORD. 95/ June 13, 1995 - 29 - D R A F T damages . To the extent allowed by law, any park owner who retaliates in violation of subsection (a) shall be liable to the affected mobile home owner in a .civil action for the actual damages sustained, plus reasonable attorney' s fees and costs . Although a park owners agent may be sued for declaratory and/or injunctive relief under this section, in no event may a mobilehome owner bring an action for damages against a park owner' s agent or recover attorneys fees from the park owner's agent. (Ord. 95-_, § 2 . ) 540-2 .1408 Mobilehome owner's right to agree to term of lease. (a) Every mobilehome owner and prospective mobilehome owner shall have the option to reject an offered rental agreement and accept a rental agreement for a term of 12 months or less, including a month-to-month agreement . (b) Before any rental agreement or lease in excess of 12 months is executed by the mobilehome owner or prospective mobilehome owner, the park owner must ( 1 ) offer the mobilehome owner or prospective mobilehome owner the option of a rental agreement for a term of 12 months or less, ( 2 ) provide the mobilehome owner or prospective mobilehome owner with a copy of this ordinance, and ( 3 ) inform the mobilehome owner or prospective mobilehome owner in writing that if he or she signs a lease or rental agreement with a term in excess of 12 months , the lease or rental agreement may not be subject to the terms and protection of this ordinance. (c) A notice, which conforms to the following language and printed in bold letters of the same type size as the largest type size used in the rental agreement, shall be presented to the mobilehome owner or prospective mobilehome owner at the time of presentation of a rental agreement creating a tenancy with a term greater than twelve ( 12 ) months : "IMPORTANT NOTICE TO MOBILEHOME OWNER REGARDING THE PROPOSED RENTAL AGREEMENT FOR MOBILEHOME PARR: PLEASE TARE NOTICE THAT THIS RENTAL AGREEMENT CREATES A TENANCY WITH A TERM IN EXCESS OF TWELVE (12) MONTHS. BY SIGNING THIS RENTAL AGREEMENT, YOU ARE EXEMPTING THIS MOBILEHOME SPACE FROM THE PROVISIONS OF THE COUNTY OF CONTRA COSTA MOBILEHOME SPACE RENT STABILIZATION ORDINANCE FOR THE TERM OF THIS RENTAL AGREEMENT. THIS ORDINANCE AND THE STATE MOBILEHOME RESIDENCY LAW (CALIFORNIA CIVIL CODE SEC. 798 et seq. ) GIVE YOU CERTAIN RIGHTS. BEFORE SIGNING THIS RENTAL AGREEMENT, YOU MAY CHOOSE TO SEE A LAWYER. UNDER THE PROVISIONS OF STATE LAW, YOU HAVE A RIGHT TO ORD. 95/ June 13, 1995 - 30 - D R A F T BE OFFERED A RENTAL AGREEMENT FOR (1) A TERM OF TWELVE ( 12) MONTHS, OR (2) A LESSER PERIOD AS YOU MAY REQUEST, OR (3) A LONGER PERIOD AS YOU AND THE MOBILEHOME PARR MANAGEMENT AGREE. YOU HAVE A RIGHT TO REVIEW THIS AGREEMENT FOR THIRTY (30) DAYS BEFORE ACCEPTING OR REJECTING IT. IF YOU SIGN THE RENTAL AGREEMENT YOU MAY CANCEL THE RENTAL AGREEMENT BY NOTIFYING THE PARR MANAGEMENT IN WRITING OF THE CANCELLATION WITHIN SEVENTY-TWO (72) HOURS OF YOUR EXECUTION OF THAT AGREEMENT. IT IS UNLAWFUL FOR A MOBILE HOME PARK OWNER OR ANY AGENT OR REPRESENTATIVE OF THE OWNER TO DISCRIMINATE OR RETALIATE AGAINST YOU BECAUSE OF THE EXERCISE OF ANY RIGHTS YOU MAY HAVE UNDER THE COUNTY MOBILEHOME ORDINANCE, OR BECAUSE OF YOUR CHOICE TO ENTER INTO A RENTAL AGREEMENT WHICH IS SUBJECT TO THE PROVISIONS OF THAT ORDINANCE. " (d) The notice described in the previous subsection shall contain a place for the mobilehome owner or prospective mobilehome owner to acknowledge receipt of the notice and shall also contain an acknowledgement signed under penalty of perjury by the park owner or manager that the notice has been given to the mobilehome owner or prospective mobilehome owner in accordance with the previous subsection. A copy of the notice executed by the park owner or manager shall be provided to the mobilehome owner or prospective mobilehome owner. (e) Pursuant to Civil Code section 798 . 17 , the provisions of this article regulating the amount of space rent which a park owner may charge for a mobilehome space shall not apply to any tenancy created by a rental agreement which is in excess of 12 months in duration. If a rental agreement subject to Civil Code section 798 . 17 expires or is terminated and a new agreement is not entered, the last space rent charged under the provisions of the previous rental agreement shall be space rent charged for the mobilehome space, and the space rent for that mobilehome space may be increased only in accordance with the provisions of this chapter . (Ord. 95-,, § 2 . ) Article 540-2. 16 Administration and Enforcement 540-2 . 1602 Administration fee. (a) Imposition. A rent stabilization administrative fee shall be imposed upon each mobilehome space subject to the rent stabilization requirements of this chapter. Said fee is imposed for the purpose of funding or defraying all costs of administering and enforcing the requirements of this chapter, and may include fees paid for hearings and other proceedings under this chapter unless ORD. 95/ June 13, 1995 - 31 - D R A F T otherwise collected. (b) Amount. The County Administrator shall report to the Board of Supervisors not less than once each fiscal year, his recommendation regarding the amount of the fee necessary to pay the costs of administering this chapter. The amount of the fee shall be as determined by resolution of the Board of Supervisors . The fee shall not exceed the amount reasonably necessary to administer and enforce the requirements of this chapter. (c ) Payment. The park owner shall pay the fee for all of the mobilehome spaces in a park upon which the fee is levied within forty-five days of mailing of the billing. (d) Proration. The County Administrator may allow the payment of prorated fees if a mobilehome space is subject to the rent stabilization requirements of this ordinance for a period of nine months or less of the year for which the fee is levied. (e) Payment by mobilehome owners . A park owner may pass through thirty-five percent of the administration fees assessed against the mobilehome spaces in the park to mobilehome owners . The portion of the fee to passed through shall be apportioned equally among the affected mobilehome spaces . Sixty-five percent of the fee must be borne by the park owners and may not be passed through in any manner to the mobilehome owners . ( f ) Required information. The Rent Review Officer may require a park owner to provide any and all information reasonably required by the Rent Review Officer to determine and verify the amount of the administrative costs chargeable to a park owner. Upon teri ( 10 ) days ' written request by the Rent Review Officer, the park owner shall provide any and all information reasonably required by the Rent Review Officer to determine and verify the amount of the administrative costs chargeable to a park owner. (Ord. 95-_, § 2; Civ.Code, § 798 . 49 . ) 540-2 . 1604 No waiver. Any provision, whether oral or written, in or pertaining to a rental agreement whereby any provision of this chapter is waived or modified, is against public policy and void. (Ord. 95-_, § 2 . ) 540-2 .1606 Remedies and penalties . In addition to those remedies and penalties set forth elsewhere in this chapter, the following remedies and penalties shall apply: (a) Award by Rent Review Officer. When a Rent Review Officer finds that a park owner has demanded, received, or ORD. 95/ June 13, 1995 - 32 - D R A F T retained space rent from any mobilehome owner to which the park owner is not entitled, the Rent Review Officer to the extent allowed by law may award any actual monetary damages and costs incurred by the mobilehome owners as a result of the space rent demanded, received, or retained by the park owner. In no event shall a Hearing Officer or court award damages where a park owner has cured an alleged mistake within fifteen ( 15 ) days of notice of the alleged mistake from the Rent Review Officer. (b) Court decision. When a court in reviewing a decision of the hearing Officer finds that a park owner has demanded, received, or retained space rent to which the park owner is not entitled, the court may, to the extent allowed by law, award costs and reasonable attorney' s fees to the mobilehome owner as a result of space rent demanded, received, or retained, by the park owner. (Ord. 95-_, § 2 . ) 540-2. 1608 Review of ordinance by Board of Supervisors . If a park owner reports in writing to the Director of Community Development the occurrence of a vacancy rate of five percent among the mobilehome spaces in the mobilehome park owned by such park owner in the preceding calendar month, the Director of Community Development shall track the vacancy rate for each and all mobilehome parks for the next six months , and if the vacancy rate for all mobilehome spaces in all the. mobilehome parks in the unincorporated area exceeds five percent for each of the six months , the Director of Community Development shall promptly . report such occurrence to the County Administrator who shall schedule the report for consideration by the Board of Supervisors at a regular or special meeting called for such purpose. Upon receipt of the report the Board shall review the report and the effectiveness of this Chapter in addressing the problems giving rise to its enactment and take appropriate legislative action thereon. Notice of the time and place of Board of Supervisors review shall be published a least ten days prior to said date in a newspaper of general circulation in the County. In addition, notice shall be posted in a public place within each mobilehome park . (Ord. 95-_, § 2 . ) SECTION III. SEVERABILITY. This ordinance shall be liberally construed to achieve its purposes and preserve its validity. If any provision or clause of this ordinance or application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance ORD. 95/ June 13, 1995 - 33 - D R A F T are declared to be severable and are intended to have independent validity. SECTION IV. PREEMPTION. Nothing in this ordinance is intended, and should not be deemed, to excuse or prevent compliance with any State or federal law. If any provision of this ordinance is found by a court of competent jurisdiction to be preempted by any applicable State or federal law, the Board of Supervisors declares that its intent is for such provision to be severable from the remainder of the ordinance, and the remainder of the ordinance is to be given effect in accordance with the provisions of Section III of this ordinance. In particular, should the measure known as the "Mobilehome Rent Assistance, Mobilehome Rent Control Restrictions, Initiative Statute" be adopted at a statewide election in 1996 , the measure' s mandated rent increase and rent reduction limitations (Measure' s proposed Civil Code section 798 . 46 . 2 ) shall be utilized to allow the continued administration and implementation of this ordinance in lieu, of conflicting provisions contained herein. SECTION V. EFFECTIVE DATE. This ordinance becomes effective 30 days after passage, and within 15 days of passage shall be published once with 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 : ABSENT: ABSTAIN: ATTEST: Phil Batchelor, Clerk, of the Board of Supervisors and County Administrator By: Deputy Board Chair [SEAL] LTF.19A:\ord61395.dr ORD. 95/ June 13, 1995 - 34 - D R A F T DRAFT ACCORD - TABLE OF CONTENTS 1. RECITALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2. DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 A. "Effective Date" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 B. "County of Contra Costa" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ............................................ X. t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ........................................... ............................................ ........................................... ............................................ D. "Initial Rent Registration Statement" . . . . . . . . . . . . . . . . . . . . . . . . . . 1 E. "Mobilehome" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 F. "Mobilehome Park" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 G. "Mobilehome Space" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 H. "Park Owner" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 I. "Rent" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 J. "Homeowner" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 K. "Contra Costa County Standard Mobilehome Park Space Lease" . . . . . 2 L. "Standard Mobilehome Park Accord" . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3. CONSIDERATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4. DURATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5. PREEMPTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 > EROERt<M+DfLEhfE3l ::: 1 +[EK . . . . . . . . . . . . . . . . . . . . . . 3 7. MOBILEHOME PARK REGISTRATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 8. DEFAULT, BREACH OR TERMINATION. . . . . . . . . . . . . . . . . . . . . . . . . . . 4 9. MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 June 13, 1995 1 DRAFT STANDARD MOBILEHOME PARK ACCORD CONTRA COSTA COUNTY THIS STANDARD MOBILEHOME PARK ACCORD ("Accord") is made as of , 199_ ("Effective Date"), between the County of Contra Costa ("County") and , ("Park Owner") who agree as follows: 1. RECITALS. This Accord is executed in contemplation of the following facts and circumstances: A. Park Owner is an owner of , a Mobilehome Park located within the boundaries of the Unincorporated County, which, as of the date first written above, has Mobilehome Spaces, more particularly described as follows: [e.g., #s of various sizes of spaces] B. It is the intent of the parties, by this Accord, to avoid controversy while protecting both Homeowners' rights and Park Owner's rights. To effect this intent, Park Owner is willing to provide Homeowners with access to benefits to which Homeowners otherwise are not entitled, and, in exchange, County is willing to exempt Park Owner duringthe ;+ t #t #h[ tird from the effects of an action Count Y Y may take which would or could otherwise affect the amount of Rent Park Owner could charge for the occupancy of any Mobilehome Space. 2. DEFINITIONS. For purposes of this Accord, the following words and phrases, when capitalized, shall have the meanings hereinafter stated unless the context otherwise requires: A. "Effective Date" shall mean the date shown in the first paragraph of this Accord. B. "County of Contra Costa" ("County") shall mean the County of Contra Costa, a political subdivision of the State of California. ....::.::....::.:...::..;;:.::.:.....:.....::.;:.;...:<.; >:.;::::...::.;:.;:.::.::.::.::.::.::.::.:.....::.::.::::.:;.: >:;:.;::.::.::::.:.. "1r t *9t 0#1 r: ;s�tafi:::> a n::>:P ark:: :>s:.: ke :.;: f f+o r :.a .: to ' a Own. .. ......................................................................................................................................................... th z.:: a h<:<l OmeO er.:s:rp t<:::it r t: >: : .a.:...:.. � Kase�nrE ............................� p:::::.:::.:::::::::. : 1 .::: ::::::::.:::::.........:..................:.:...:.:::::.::::::::::::::::::::::::::. �t.. .;:. .F.x. :.. •• aye e:>with�n:<:siix : .>: t# ;<rl :. :s::>:::>:: >:: cn#hs�:>:>:<:oar:::::»:::�r::>rr� rths:::>:: ::::a :: e:::: ferr .: ?...:....: Etta..d.....::::.:.:.:...:.: ................. ......:::::::::::::::. .::::::. .:::::::: :.:::::::::::::::::::::::::::::::::::::::::::::.:::::::::::::::::::. :. .::::::::.::::::: :::............................ i .............................. ....... ............. ........................... .:::::::: ::::::::::::: :::.:: o .:t :�s.:�c�c�r�.s ��.:t�€e:���s�t��a �a��± .af....:� �s>: ���arr�: � :: .:. . D. "Initial Rent Registration Statement" ("Registration Statement") shall mean the form attached to this Accord as Exhibit "B" and any modifications to said June 13, 1995 1 DRAFT form. E. "Mobilehome" shall mean a structure designated for human habitation and for being moved on a street or highway under permit, pursuant to Section 35790 of the California Vehicle Code. Mobilehome includes a manufactured home, as defined in Section 18007 of the California Health and Safety Code, and a mobilehome, as defined in Section 18008 of the California Health and Safety Code, but, does not include a recreational vehicle, as defined in Section 799.29 of the California Civil Code and Section 18010 of the California Health and Safety Code, or a commercial coach as defined in Section 18001.8 of the California Health and Safety Code. F. "Mobilehome Park" shall mean any area of land within the Unincorporated County where two or more mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes used for human habitation. G. "Mobilehome Space" shall mean any site within a Mobilehome Park intended, designed, or used for the location or accommodation of a Mobilehome and any accessory structures or appurtenances attached thereto or used in conjunction therewith. H. "Park Owner" shall mean the party so designated in the first paragraph of this Accord and any agent(s) or representative(s) authorized to act on said Park Owner's behalf in connection with the maintenance or operation of the Mobilehome Park named in Subparagraph I-A. of this Accord. I. "Rent" shall mean the consideration, in connection with the use and occupancy of a Mobilehome Space, and shall include services, amenities, benefits, taxes, amassments, maintenance and capital improvement pass-throughs, and utilities. J. "Homeowner" shall mean any person entitled to occupy a Mobilehome pursuant to ownership thereof and to agreement with Park Owner. K. "Contra Costa County Standard Mobilehome Park Space Lease" ("Lease") shall mean the form attached to this Accord as Exhibit "A," and any modified form produced pursuant to Section 5 of this Accord. L. "Standard Mobilehome Park Accord" ("Accord") shall mean an agreement of the same name and intent as this document, entered into between any owner of any Mobilehome Park and County. June 13, 1995 2 DRAFT 3. CONSIDERATION. Park Owner enters into this Accord and agrees to abide by its provisions and conditions in consideration of the County Board of Supervisors' agreement, on behalf of County, that ur"r i �rr�a� n c d..the County Board of Supervisors will not adopt any ordinance, rule, ......................... ..................................................................................................... regulation, or initiative or referendum measure ("""'A...d€ �r�te�TMi�t�fiatai� �a t�r�a which would establish a maximum amount that Park Owner may charge any Homeowner for Rent. Park Owner would not enter into this Accord or agree to provide Homeowners with access to the extraordinary benefits described in this Accord if it were not for the agreement of the County Board of Supervisors, on behalf of County, that during the duration of this Accord, the County Board of Supervisors will not adopt any ordinance, rule, regulation, or propose any initiative or referendum measure which would establish a maximum amount that Park Owner may charge any Homeowner for Rent. Nothing in this Accord shall be construed to restrict the County Board of Supervisors from adopting any ordinance, rule, regulation, or initiative or referendum measure which would establish a maximum amount that any Mobilehome Park owner not a party to an Accord may charge any Homeowner for Rent. 4. DURATION. This Accord shall commence on the Effective Date first written above and shall expire on [specify date certain] ,::which is a date that is approximately ten years from the effective date hereof. 5. PREEMPTION. To the extent that any provision or condition in this Accord is ever inconsistent during the term of this Accord with any other action taken by the County Board of Supervisors, including, without limitation, any policy, regulation, rule or ordinance, this Accord shall govern. Upon discovery of any subsequently enacted state or federal law which is in conflict with this Accord, each of the parties to this Accord shall provide the other party with written notice of the state or federal law or regulation, and a written statement of conflicts with the provisions of this Accord. The parties shall thereafter implement this Accord in good faith in compliance with such state or federal law or regulation while still preserving the terms of this Accord and the rights of Park Owner as derived from this Accord to the maximum feasible extent. County agrees to cooperate with Park Owner in resolving the conflicts in a manner which minimizes any financial impact of the conflicts upon Park Owner. Park Owner would not enter this Accord or agree to provide Homeowners with access to the extraordinary benefits described in this Accord if it were not for the agreement of the County Board of Supervisors, on behalf of the County, that the County Board of Supervisors will provide the protections of this Section to Park June 13, 1995 3 DRAFT Owner. :.:::.:.. .... ..... .......... .;::......... ....:..:....;.......:........... ...:.... i...:..... .»: ::::::. ........ .......... ::>. M:E:::Llftp:ERS° l �ttn> >IL« :..::::..,.:: F.F .R.:7 ::M )E3I..,E t .:.......::..:: :::::::::::::::::::::::::::::::::.::::::::::::.:::::::::::::::::::::::::::::::::::::::::::: ::::: .... rr�flrEt# af.ithe::::Eff .;:Qt .;: ;ti :..:...Cc .................. w.... .. ;:.: ........;:.;:.;:.;:.;:.; ::: ;.i..i:.;:.: ::. ............ s# 1�::::m$ ,�:::>t ' ::::;.::':: n r:::: a :;: :rntf: ::: ::. <::> . ....:;lease t:> <.>$ �h .taenw..:: .:::.::::. ..................... ...... ... .............:::...::.::..::::::::::::::::::::::::::::....... .::.::::.::.i::::iiiiiiii':.i:::G ii:.ii::<:'«« :' j :::...i....:i::i::i::i:i'.:::::::':':::i::i::i'<i:i:::....:........... :......: ':'.iii;4;4i;: # a i l i :to> nt......IC:eta: ars:ln�:. :::......................... Wit' is �:iy: d: 7 " ............................. ::::::::::::::::::::t:. fi :.i:l ; r elf>:the:::[sass:: urua nt:ta::; 1 :< M.S:: >:fry:r::ea+ :h:::Hoa n. :r........ . ►�.. .. a e >:: ffer>:::>�f:::: t$ ::: r................ .: . : .:> :; nen s:<:>?:::> f:;: s :. :::::.:: .::::::::y.::::::::::::::::: : : ::::::::::::::::::: .::::: . :s .:: .::::::::::::::: ::::. ........<::::::.::::<.:::::::::::.::::::::::::::::: :::::.:::::.:.::::::::::::::::::::::. .::::: .:::::::::::::::::::::::::::::::..................................................................... 40 Upon discovery of any subsequently enacted state or federal law which is in conflict with the Lease, each of the parties to this Accord shall provide the other party with written notice of the state or federal law or regulation, a copy'of the law or regulation, and a written statement of conflicts with the provisions of the Lease. Promptly thereafter the parties shall meet and confer in good faith in a reasonable attempt to modify the Lease, as necessary and to the extent allowed by law, to comply with such state or federal law or regulation. In such negotiations, the parties agree to preserve the terms of the Lease and the rights of Park Owner as derived from the Lease to the maximum feasible extent while resolving the conflict. County agrees to cooperate with Park Owner in resolving the conflict in a manner which minimizes any financial impact of the conflict upon Park Owner. 7. MOBILEHOME PARK REGISTRATION. Within sixty (60) days of written notice by the Community Development Director or his designee, Park Owner shall be required to file with the Director of Community Development an Initial Rent Registration Statement ("Registration Statement"), attached hereto as Exhibit B and incorporated herein by reference, for Park Owner's Mobilehome Park. The Director of Community Development shall devise such Registration Statement so as to call only for information necessary to carry out the purposes and policies of this Accord, and shall mail such to Park Owner in sufficient time as to allow Park Owner to timely file a Registration Statement. County shall not charge Park Owner any fee in connection with this Section, nor any other provision of this Accord. Park Owner shall provide periodic reports to County only as requested by County and only if such are necessary to carry out the purposes and policies of this Accord. 8. DEFAULT, BREACH OR TERMINATION. Upon the occurrence of default or breach, Park Owner or County may terminate this Accord only after providing the other sixty (60) days written notice specifying the nature of the alleged default or breach and the manner(s) in which said default or breach may be satisfactorily cured. June 13, 1995 4 DRAFT After proper notice and expiration of said sixty (60) day cure period without cure, this Accord may be terminated, and the aggrieved party may institute legal action to cure, correct, or remedy any default or breach, to specifically enforce any covenants or agreements set forth in this Accord, or to enjoin any threatened or attempted violation of this Accord, or to obtain any remedies consistent with the purpose of this Accord. Failure or delay in giving notice of default or breach shall not constitute a waiver of any default or breach, nor shall such failure or delay change the time of default or breach. Legal actions shall be instituted in the Municipal or Superior Court of the County of Contra Costa, State of California, or in the Federal District Court for the Northern District of California. 9. MISCELLANEOUS. A. This Accord shall be interpreted according to the laws of the State of California. B. The meaning, construction and interpretation of all defined terms in this Accord shall be determined by reference to Section 11 of this Accord. The titles and headings of the sections of this Accord have been inserted for convenience of reference only, and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof or be considered or given any effect in construing this Accord or any provisions hereof or in ascertaining intent, if any question of intent shall arise. C. If any action or proceeding is brought to enforce or interpret this Accord, the prevailing party (the Park Owner or the County), as determined by the court or arbitrator, shall be entitled to recover, in addition to all the relief awarded by the court or arbitrator, applicable costs and expenses, but not including attorneys' fees, incurred in connection with such action or proceeding. D. The provisions of this Accord shall be binding upon and shall inure to the benefit of the heirs, personal representatives, successors and assigns of the parties. E. If any provision of this Accord or the application thereof to any person or circumstance is held to be unlawful or is otherwise invalidated by a final judgment of any court of competent jurisdiction, such invalidity shall not affect other provisions or applications of this Accord which can be implemented without the invalid provision or application, and to this end, the provisions of this Accord are deemed to be severable. F. All notices, demands and correspondence required or permitted by June 13, 1995 5 DRAFT this Accord shall be in writing and delivered in person or mailed by first class or certified mail, postage prepaid, addressed as follows: If to Park Owner, to: With copies to: If to County, to: County of Contra Costa 651 Pine St., No. Wing Martinez, CA 94553 Attn: Community Development Director A party may change its address by giving notice in writing to the other party. Thereafter, notices, demands and correspondence shall be addressed and transmitted to the new address. Notice shall be deemed given upon personal delivery, or, if mailed, two (2) business days following deposit in the United States mail. G. To the extent that the context of this Accord so requires, the singular shall include the plural and the masculine, feminine and neuter genders shall each include the other. H. Time is expressly made of the essence with respect to the performance hereof. I. This Accord constitutes the entire agreement between the parties with respect to the subject matter hereof. All prior negotiations and agreements, oral or June 13, 1995 6 DRAFT written, are hereby merged into and superseded by this Accord. This Accord may not be altered, amended or revoked except by an instrument in writing executed by County and Park Owner. Any waiver of any provision of this Accord must be in writing. J. The following exhibits attached to this Accord are hereby incorporated by this reference: Exhibit "A" - Contra Costa County Standard Mobilehome Park Space Lease ("Lease"). Exhibit "B" - Initial Rent Registration Statement ("Registration Statement"). IN WITNESS WHEREOF, the parties hereto have executed this Accord on the Effective Date first written above. COUNTY OF CONTRA COSTA Chair, Board of Supervisors ATTEST: Phil Batchelor, Clerk of the Board and County Administrator By: Deputy,Clerk Date Park Owner By: Signature, Title Date June 13, 1995 7 DRAFT By: Signature Date LTF19a:\acc613.95 June 13, 1995 8 DRAFT TABLE OF CONTENTS 1. Rent Control Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.1 "Park" 1 2.2 "Homeowner(s)" 1 2.3 "Space" 1 2.4 "Term" 1 2.5 "Beginning Monthly Space Rent" 2 2.6 "Anniversary Date" 2 2.7 "Base Period" 2 2.8 "Physical Improvements in the Common Facilities" 2 2.9 "Services" 2 2.10 "Utility" 3 2.11 "Proportional Share" 3 2.12 "Zoning and Use Permit Information" 4 3. Agreement to Lease Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4. Rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4.1 Adjustments to Beginning Monthly Space Rent 4 4.1.1 First Cost of Living Adjustment . . . . . . . . . . . . . . . . . . . . . . 5 4.1.2 Second and Subsequent Annual Cost of Living Adjustments . 5 4.1.3 New Services or Facilities Required by Government . . . . . . . 5 4.1.4 Repair or Replacement of Physical Improvements in the Common Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4.1.5 New Park Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 (a) Non-Discretionary New Construction 7 (b) Discretionary.New Construction 7 5. Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6. Responsibility for Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7. ' Duty te RepeFt Defec4s . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 8. Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 9. Maintenance of the Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 10. Guests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 June 13, 1995 1 I DRAFT 31. Invalidity of Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 32. Condemnation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 33. Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 June 13, 1995 3 DRAFT CONTRA COSTA COUNTY STANDARD MOBILEHOME PARK SPACE LEASE 1. Rent Control Exemption: THIS LEASE WILL BE EXEMPT FROM ANY ORDINANCE, RULE, REGULATION OR INITIATIVE MEASURE ADOPTED BY THE CONTRA COSTA COUNTY BOARD OF SUPERVISORS WHICH ESTABLISHES A MAXIMUM AMOUNT THAT A LANDLORD MAY CHARGE A TENANT FOR RENT.. The Provisions of this Lease will set the terms of rent between the Park and the Homeowner(s). [California Civil Code § 798.17] 2. Definitions: For purposes of this Lease, the following words and phrases shall have the meanings stated in this section: 2.1 "Park" shall mean: (NAME): (ADDRESS): (PHONE NUMBER): 2.2 "Homeowner(s)" shall mean: (1) ; (2) ; (3) ; (4) ; (5) The term Homeowner(s) shall apply to all of the above jointly and singularly. 2.3 "Space" shall mean: 2.4 "Term" shall mean the period of time this Lease will be in effect which shall be ten (10) years, except that the term shall not exceed the term of the Accord between the County of Contra Costa and the Park Owner and, if the Park is subject to a land lease and/or use permit as indicated in subsection 2.12 and fewer than ten (10) years remain on the land lease and/or use permit as of the beginning date of this Lease, the Term shall be a period of time less than ten (10) years as defined by the beginning date and ending date of this Lease and not exceeding that of the land lease or land use permit. Beginning Date: at 12:00 noon. Ending Date: at 12:00 noon. 2.5 "Beginning Monthly Space Rent" shall mean: $ ................................................................................................................................... Rni 'ffC#>o f;`iiif l '' gIS > <'' ..........::�.....::.>:.>:.::.::.::;.:;::::.::.::.>.::.;.::.» ........................................................:............:............:................................................ 2.6 Anniversa Date shall meanft1 ::<crte rY June 13, 1995 1 DRAFT ...................................................... ........................................................ :, . _2.7 Base Period shall ...... p: , >:d . t ..t c a r €�rt tt�t cxn t fleet ;d to f€ r. egse .......................................................................... ........................................................................... ........................................................................... 2.8 "Physical Improvements in the Common Facilities" shall mean: 1 fcl�t� s "'I :d:::: the dormon oftl Homedvurtr , includifig bt�t oed #o a ¥ t1dV11 >'< f11< #t <: > : . °>:`:` . :: <`: ,.: ...............:.:.,..................b .......... t:: tt .:: r rr an.... m......M rt.:an€.:..:: , ::::: .:: :::::::.:::::::.:::::::.�..:: ::::::::::::......:::::::P.....Y,.:::::::::::::::::.:: ub#t©use snd ani. ro�erty wEthin a Glubt ©use, poa1,. aeuzz�, spy, saur�a,. hu�l�fxoard curt.:I ..nd.. ftllt. a.r :al.l:..:.rp.: ::.: thr± tn.,::cfi.Ir .: :: 1 .�j.(y.r...aun+d,.: .: urn:: .r.. t3r .:::Qu :,;;StOrfac:latas.: .r..:: t1 s::c�.r..::b #s, Ml:: rr� :::: # #tin,::.:la:.: rand ttt : ertt dt ,::::ori wash hf. bb':;; ':: : >: r .:::.: ::.> e' i: » . .. etlltl- ::h............ :. .::..ro with. ..:t n.rtl :; ..... ::::::::Y::::::::::. .: :::: ::: :..:,.: _. taEldba).;;: .c t...bask t l.l.::ccturt..artd::.all.::c her a tt fa t t y b eque.. grttc>area ii +�tt ....r....:::::::::::................::::.:::::::::.......................:::::::::::::::................................................,................................,. R.:::: :::::::::::::::::. ................. . ......... t ht h© s> sae p ....................................murt�y. afd t r a t 2.9 "Services" shall mean: Tlie s Vices clud� hut.not lim�tecl t4, l'�ccsal<` >,>;:>r'>y'' ::may:. >::>::>{�,t::>: ";}�:�»y><;:�j<::: <.>_>::::<:::#>y }; y;:>{::>y:trt:< ��y:�>j�y:":�;y:;"�'y`{: y� :::;,+,Jl .` Gf.; iG,, �Ik �J�.r g•.Li 3—i pl�l ,�.i�,..11l�ltli G1..G111�C—i 3.Ft 4�i.i.1.{.{3� Q{riiA 7 . .............:�` ........t........ ?Vs't .:.::�.. l`#.: .: '::I .tt�rs...:.v:.....�4'�a.. i:@�WCs'��(!C� .:�.sir°f�t.:��'.:::..:s'�rc'��11 1�. rartsp..>rttcrt, rr� st ..rtament, a eine Masses, ied ..Itbrary, sena© t f+ rm tic n: aye:b:le< r:::satall:tt :::>sa t >>: : t:>:stat... ...child.. at~ ..s IV.C. s...sacu.rtt.. tt• ... ,::.pg:,.:::. , ::.y::p::::::::::::t. _. etc. .....::....... 2.10 "Utility" shall mean those services listed in the chart below. Payment for the Utilities shall be as indicated. "Direct payment" means the Homeowner(s) will be billed directly each month by an outside company. "Submetered" means the Park will read a meter on the Space and bill the Homeowner(s) monthly for the amount of usage in the prior month. "Share" means the Homeowner(s) will be billed monthly for the Homeowner(s)' proportional share of the bill the Park receives from an outside company for that particular service. "Included in the rent," means there is no separate charge for this service at this time. The way Utilities are charged may be changed on sixty (60) days written notice to the Homeowner(s). Direct Proportional Included Utilities Payment Submetered Share in Rent Natural Gas Electricity Water Cable TV Trash June 13, 1995 2 DRAFT Sewer 2 .11 "Proportional Share" shall mean cost divided by the number of spaces in the Park. As an example, if there are one hundred (100) spaces in the Park, the Homeowner(s) ' proportional share would be one percent (lo) of the cost of the item. 2 .12 "Zoning and Use Permit Information" : [California Civil Code 798 . 271 The land upon which the Park is located is zoned as : [ ] There is no Use Permit . [ ] There is a Use Permit . [ ] It has no expiration date . [ ] It will expire on [ ] The land on which the Park is located & not subject to a land lease. [ ] The land on which the Park is located is subject to a land lease that will expire on 3 . Agreement to Lease Space: The Homeowner (s) agrees to rent from the Park, and the Park agrees to rent to the Homeowner(s) , the Space listed at 2 . 3 above under the provisions and conditions set forth in this Lease. 4 . Rent. The Homeowner(s) agrees to pay the Park the Beginning Monthly Space Rent indicated at 2 . 5 above until the first Cost of Living Adjustment as per 4 . 1 . 1 below. Rent is due in advance on the first day of each month for that month and will be considered past due on the sixth. 4 .1 Adjustments to Beginning Monthly Space Rent : On the Anniversary Date set forth above at 2 . 6 and on each annual anniversary of that date thereafter the total monthly Space rent shall be changed as indicated below for the next twelve-month period: 4 .1 . 1 First Cost of Living Adjustment: The total monthly rent the Homeowner (s) has been paying during the Base Period ................... shall be increased or decreased by an amount equal to of the percentage of increase or decrease` iii the orisumer Price Index for all Urban Consumers (All Items) (1982 1984 =!99+ for the San Francisco-Oakland-San Jose Area, published by the United States Department of Labor, Bureau of Labor Statistics ( "C. P. I . " ) referred to be " for the twelve-month period ending with the month immediately preceding the month which is four calendar months prior to the Anniversary Date. June 13, 1995 3 DRAFT 4 .1.2 Second and Subsequent Annual Cost of Living Adjustments : The total monthly rent the Homeowner (s) was paying for the last month of the previous twelve-month period shall be increased or decreased by an amount equal to >a> <' ' <; .:::::. .::: elf'; percentage of increase or decrease of the t. P_I : described above during the twelve-month period ending with the month immediately preceding the month which is four calendar months prior to the month which includes the Anniversary Date. 4 .1.3 New Services or Facilities Required by. Government: If any governmental entity such as the County of Contra Costa, State of California, United States of America or any other governmental agency or district increases or decreases the amount of fees, assessments or other charges to which the Park is subject as of the effective date this Lease, upon ninety (90) days' written notice to the Homeowner(s) , the total monthly rent the Homeowner(s) is paying for the Space will be increased or decreased by the Homeowner(s) ' proportional share. 4 .1.4 Repair or Replacement of Physical Improvements in the Common Facilities : Should it become necessary to repair or replace any of the Physical Improvements in the Common Facilities, the Park will pay for that repair at no additional cost to the Homeowner (s) , up to and including an amount not to exceed an amount equal to the number of spaces in the Park multiplied by one hundred fifty dollars ($150 . 00) per calendar year. If the repairs or replacement exceed that amount, the Homeowner(s) ' rent will be increased by the Homeowner(s) ' proportional share of that cost at the next Anniversary Date. The amount of the total monthly Space rent Homeowner(s) is paying shall be increased by the Homeowner (s) ' proportional share of the repairs or replacement costs, amortized over the next year, payable monthly. If, however, this amortization would increase the amount of the Homeowner(s) '. rent by more than $15 . 00 ::.;:.per month, then the costs w be "amortized over a longer' per od of time at the rate of 1 5 . 00 ::::. :.:. .:..::::.P: :;::: per month $ �.�..,�;:::kz `::<::<�,,(7� ;o:.::o�.::::�:::;�.);. Puntil the Park is 'completely reimbursed for the costs . When the costs of the repairs or replacement are fully amortized, the monthly rent Homeowner(s) is then paying shall be reduced by that amortized amount . 4 . 1.5 New Park Facilities: stew park aei!4-tzes-ai e en�ae t ed, the llemeewner(-` l rent will-beinereas ed 15y the H__ neper-i ona l share-erre-eens t-ae�en-ee s t s, .................................................................................. yeard . e ....... as... ...:........ d: ............�.......::(. .)::::::::: .::::................: :............. .r...................::::b::............ tame4::::::: : :s.}::::::.. :::: . aa .:::$ ::::a .::c. :::: . . .::::c.c . .::::a::::c. . .. . ::::'.x.:::.::. :::::::::::::::::::::::::::::::: :.::::::::::::::::::::::::: ::::::::: :XX rY :::: : :::::::... June 13, 1995 4 DRAFT €a>> >": : c:4 ::::::::: t: rih ;tha faint:::;>'>ariizi . ..... .. an ....:>::>: ne :.................................... .................... ..<...................::::::. ::::::::::::::: :.::::::::::::::::::::._ :::.. :::::............:::::........................ n> :::a.n....e .t ....t.......a cs6 .... ... .... ....a te ...... ax:::. :ecsc.,...:.. . Z. ::::::..:,....p............::::::::::... ric:...e he amo::::HE of the 66 If however; this amortization would rease t u t ................................. Homeowner (s) rent by more than $15 . 00 per months :::::::.... ual ``:> k : : <l t7;.;:.;:.a:.;:.; f:.;CP:.1 lii: then the costs will be amortized over a longer period of time at the rate of $15 . 00 per month :: z ar� u1y b °� ref ' te costsheri until the Park is completely reimbursed for h .. Cthe `costs of construction are fully amortized, the monthly rent the Homeowner(s) is then paying shall be reduced by that amortized amount . (a) Non-Discretionary New Construction. If the new construction is required by local, state or federal law, or by a governmental or quasi-governmental entity or agency, a utility company, or some other person or entity having the ability to require the new construction, the Park need not obtain the written consent of tenants in the Park, and the Park may increase rents as described above . (b) Discretionary New Construction. If the new construction is not required by local, state or federal law or by a governmental or quasi-governmental entity or agency, a utility company, or some other person or entity having the ability to require new construction, and the Park wishes to construct new park facilities and require the Homeowner(s) to pay the Homeowner(s) ' proportional share, the Park must obtain the advance written consent of the Homeowner(s) representing 50 0 plus one space' in the Park. 5 . Utilities : The Homeowner(s) will pay for Utilities as indicated in the chart in section 2 . 10 above . The rates charged for Utilities may be changed from time to time . Submetered Utilities will be charged in accordance with the rate charts provided by the outside company. A copy of the rate chart shall be posted in a conspicuous place in the Park office . The method of charging for Utilities may be changed from time to time on no less than sixty (60) days' written notice to the Homeowner(s) . except that a change in method or frequency of charging following a change in the method the utility is charging the Park, may be put into effect as soon as practicable following the change . Notice may be given concurrently but in any event within a reasonable period of time after notification to the Park. 6 . Responsibility for Maintenance: The Park will furnish and maintain the Physical Improvements in the Common Facilities in good working order and condition. .In the event of sudden or unforeseeable breakdown or deterioration of these improvements, the Park shall have a reasonable period of time after the Park knows or should have known of the breakdown or deterioration to June 13, 1995 5 DRAFT repair the sudden or unforeseeable breakdown or deterioration and bring the improvements into good working order. For purposes of this section, "a reasonable period of time to repair a sudden or unforeseeable breakdown or deterioration" shall be as soon as possible in situations affecting a health and safety condition, and shall not exceed 30 days in any other case except where exigent circumstances justify a delay. [California Civil Code 798 . 15 (d) . ] Homeowner(s) acknowledges, however, that it is impossible for the Park to maintain the Physical Improvements in the Common Facilities in perfect order. To determine "good working order" , the parties agree that from time to time Physical Improvements in the Common Facilities (e . g. water lines, sewer lines, electrical distribution system, natural gas distribution system, streets, buildings, appliances, etc . ) will break down. The parties agree such breakdowns are inevitable and expected even if the Physical Improvements in the Common Facilities are kept in "good working order" . The parties agree that the Park is not in any way responsible for the following because they are beyond the Park' s control : (a) Failure of Utilities caused or substantially contributing to by the supplier of these Utilities to the Park; (b) Condition, taste, color or smell of water delivered to the Homeowner(s) if it is delivered in the same condition as which it is received from the water supplier; failure—a the—Hemeawne (_) ' equipffient in their mnhi 1 ehnme eeulel step sewer i the lemeewner(s) l—s-iele of the sewer (c) The failure of any one or more of the Utilities .caused by a problem on the Homeowner (s) ' side of the meter or hookup. The Homeowner (s) will maintain the Utilities on the Homeowner(s) ' side of the meter or hookup. The Park shall have no liability for any such problem. The Homeowner (s) further agree his/her/their failure to correct any problem on the Homeowner (s) ' side of the meter or hookup may result in damage to their neighbors and/or the Park if the Homeowner(s) fail to correct the problem. 4 . Hemeewner (s) l Duty to Repert Defeets . As substantial eensiderati-en fems—this—Ueas:,the Hemeewn_r-(s) agrees t_n repert June 13, 1995 6 DRAFT ................................................................................................. Ee te33—F �'cz tTes e 4:: E t e# !E Mire3�r but— net g 44ffi4:4=-eeI t e water 1641 s galea i 9 et h6l6s-e r-eraeltsin the insuffieient trash bin eapae-J -1y, dirty ti-ash ai-eas, dust, dii-t debL-is en i-eaels,p red l effiswith the-heating e r-e e e l i ng.-«e eemmen buildings, 35ael sfflell�ng or inadequate water s�plyer pressuire, pr bl ^:,s,::=th the—Park' s enmmnn rel (mem e 1 systemsleaks,baeleups, er la-ek of _al__-ity of the-Park' e ' tern fleer eevers eiL-bdindew eevertng in the—Parie s buildings, spets in fleers, deeks er stairs, dirty peel er spa er any ether Ele€el=cin the Park, s equipment,, buldings, faeilities tis netiee in writinef te-the-Pate-ear-site fflanager, delive=lam--( rreh the en site ...a- a -- shall rersena ly aeeept ea_nel mewl eelgein iotriting i€-request registered U.S . Ta , (return reee_T -q_ . sten) within thirty Perth abeve-se they may be-eer-ree ted wi thin a reasenabl e-peri ed e E 4=-iffle by the Park. Sheuld the Hemeewmer (s) pay the rent, utilities and ether e-harges due under- the terfas--ef this i3ea-se,- he Hemeewe-(s) s a, , by iFeasen ofsue h unreperte-� defeat _ r-- �- Ne ngin this lease-i s neper} a de-feet shall net sine-et tl:t fine, penalty ef assessment Per -side failure . 8 . Entry: The Park and its agents may enter upon the Space at any reasonable time to maintain the Utilities and/or to protect the Park, but may not enter in a manner or at a time which would interfere with the Homeowner(s) , quiet enjoyment . 9 . Maintenance of the Space: The Park may enter upon the Space and 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(s) fails to maintain such land or premises in accordance with the Park' s rules and regulations after written notification to the Homeowner(s) and the failure of the Homeowner (s) to comply within fourteen days . The written notice shall state the specific conditions to be corrected and an estimate of the charges to be imposed by the Park if the services are performed by the Park or its agent . Any such charge shall be an addition to rent and shall be due as rent . [California Civil Code 798 . 15 (8) ] . June 13, 1995 7 DRAFT 10 . Guests: If the Homeowner(s) is living alone and wishes to share his/her mobilehome with one person, the Homeowner(s) may do so, and the Park shall not impose any fee, charge or increase in rent for that additional person. The person staying with the Homeowner (s) shall be considered the Homeowner(s) ' guest and shall register with the Park, sign all residency documents and agree in writing to be bound by all of the Park' s rules and regulations . [California Civil Code 798 . 34 (b) ] . 11. Seniors May Have In-Home Care Providers: If the Homeowner (s) is over fifty-five years of age and living alone, the Homeowner(s) may have a caregiver over the age of eighteen years live with the Homeowner (s) in the Homeowner(s) ' mobilehome and the Park will not charge the Homeowner(s) any additional fee or increase in the Homeowner(s) ' rent as long as the caregiver is required by a written treatment plan provided by the Homeowner(s) ' physician. The caregiver shall have no rights of tenancy in the Park and shall agree in writing to comply with all of the Park' s rules or regulations . When the caregiver is no longer required, the caregiver will move out . [California Civil Code 798 . 34 (c) ] . 12 . Use of Mobilehome and Space: The Homeowner(s) ' mobilehome and the Space shall be used only as the Homeowner(s) ' personal, actual and private residence . They shall not be used for any commercial or business purposes . . At all times at least one of the persons listed as the Homeowner(s) at 2 . 2 on the first page of this Lease shall be the "registered" owner of the mobilehome to be maintained upon the Space. 13 . Abandonment of the Space: If the Homeowner(s) abandons the Space by moving the Homeowner(s) ' mobilehome off the Space and is no longer paying rent, Utilities and other reasonable charges as set forth in this Lease, the Park may declare this Lease void and automatically take possession of the Space. At that time the Homeowner(s) will have no further rights or interest in the Space or this Lease . 14 . Sale of the Homeowner(s) ' Mobilehome: If the Homeowner(s) wishes to sell the Homeowner(s) ' mobilehome to someone who wishes to become a new tenant of the Space, the Homeowner(s) may do so as long as the Homeowner (s) complies with the provisions of the Mobilehome Residency Law, a copy of which has been attached to this Lease as required by law. The buyer shall be allowed to assume the unexpired portion of this Lease, in which event the Homeowner(s) will have no further- rights or duties under this Lease . This' Lease will be binding for its full Term on the June 13, 1995 8 0 DRAFT Homeowner(s) , the Homeowner (s) ' heirs, executors, and trustees, assigns and successors-in-interest, for its full Term, just as it will be binding on the Park and its assigns, successors-in-interest, executors, trustees, and heirs . If the Homeowner (s) wishes to sell the Homeowner(s) ' mobilehome, the Homeowner(s) may place such signs in or upon the mobilehome or the Space as are allowed by the most restrictive terms of the Mobilehome Residency Law. 15 . Termination of This Lease by the Homeowner(s) : The Homeowner(s) may terminate this Lease by removing the Homeowner(s) ' mobilehome from the Space and the Park and signing a relinquishment agreement terminating this Lease and surrendering the Space to the Park. If the Homeowner (s) does not comply with the provisions of this section, this Lease will remain in full force and effect and the Homeowner(s) will be liable to pay rent and other charges under this Lease, whether or not the Homeowner(s) occupies the Space. 16 . Termination of This Lease by the Park: The Park may terminate this Lease and declare it a forfeiture for any of the reasons set forth in the Mobilehome Residency Law as attached to this Lease or subsequently amended. 17 . Subleasing: The Homeowner(s) may not, nor shall the Homeowner (s) have the power to, sublet the Space or the Homeowner(s) ' mobilehome located upon the Space except under all of the following circumstances for reasons of hardship: 17 .1. The Homeowner(s) has been required to move out of the mobilehome because medical reasons, or has been transferred away or required to take a job out of the area, or all Homeowners have died, and 17 .2 . The mobilehome has been listed for sale for a continuous period of at least six months with a licensed mobilehome dealer or real estate broker at a price suggested by that dealer or broker, and 17 .3 . No offer has been made within ten percent (10%) of the listing price . If all the conditions listed above have been met then Homeowner(s) or the Homeowner (s) ' heirs or executors may sublease the Space and mobilehome if each of the following conditions are met : 17 .4 . The sublease is for a period of not less than 12- months, and June 13, 1995 9 DRAFT 17 .5 . The sublease is for a period of not more than 24-months, and 17 . 6 . The subtenant is acceptable to the Park, with the understanding that the Park cannot withhold its permission except for the reasons set forth in the Mobilehome Residency Law as if the subtenant were a purchaser of the mobilehome within the Park, and 17 .7 . The subtenant agrees to be bound by all rules of the Park, and 17 . 8. The Park will look only to the Homeowner(s) or the Homeowner (s) , heirs or executor for payment of all rent, Utilities and incidental service charges for the Space and not the subtenant . Upon the expiration of the sublease new permission must be obtained to re-sublease the mobilehome or the Space. This new permission must be in writing and may be withheld at the sole discretion of the Park or its successors-in-interest . 18 . Insurance and Injury to the Homeowner (s) or the Homeowner(s) ' Guests: The Park does not carry public liability or property damage insurance to compensate the Homeowner (s) , the Homeowner(s) ' guests, or any other person from any loss, damage, or injury except those resulting from actions the Park would be legally liable for. The Homeowner (s) is responsible for obtaining, at the Homeowner(s) ' own expense, extended coverage for the Homeowner (s) ' own liability for injury, damage, and loss by fire, flood, earthquake or theft as the Homeowner (s) feels necessary. 19 . Hold-Over Tenancy: To the extent allowed by law, the provisions of this Section shall be applicable . At the expiration of this Lease the Homeowner (s) will be offered a choice of the following: a lease for the period of twelve months, a lease for such lesser period as the Homeowner (s) may demand, or a lease for such longer period as the parties may agree upon at that time . The terms of the lease for a period of twelve months shall not differ from the terms of any lease for a lesser period during that same period. Should the Homeowner(s) fail or refuse to execute any of the offered leases, the Homeowner(s): will be a month-to-month tenant and that tenancy will be governed by the terms of this Lease . The monthly rent for the first month following the expiration of this Lease will be the same monthly rent the Homeowner(s) was paying during the last month of this Lease and thereafter the Homeowner(s) , rent may be increased by the terms of the rental agreement the Homeowner (s) chooses or an June 13, 1995 10 DRAFT allowed by law at that time . (California Civ. Code 798 . 181 . 20 . Subordination: This Lease and any leasehold interest which may be created by it shall be subordinate to any encumbrance of record before or after the date of .this Lease affecting the Park, any and all buildings or other improvements therein, and/or the land of which the Space leased to the Homeowner(s) is a part .. Such subordination is effective without any further act of the Homeowner(s) . The Homeowner(s) agrees, however, to execute and deliver any documents or instruments which may be required by any lender to effectuate any subordination promptly upon request by the Park. The Homeowner(s) hereby irrevocably constitutes and appoints the owner of the Park as the Homeowner(s) ' special attorney-in-fact to execute and deliver any such documents or instruments if the Homeowner(s) fails to execute and deliver any such documents or instruments within ten days of delivery of request to do so. 21 . Incorporation of Other Documents Attached: A copy of the current Mobilehome Residency Law, and the rules and regulations of the Park have been attached to this Lease and their provisions are incorporated into and are made a part of this Lease. 22 . Waiver of Default: Any delay or omission in the exercise of any right or remedy the Park may have by reason of the Homeowner(s) ' default under or violation of the provisions of this Lease, or the Park' s acceptance of rent after such default or breach or the service upon the Homeowner (s) of any notice of termination of tenancy or declaration of this Lease as a forfeiture shall not constitute a waiver of any right the Park has or may have under the provisions of this Lease, the law or of any breach of this Lease . 23 . Resolution of Disputes: Should any dispute arise between the parties over their respective rights or duties under this Lease, other than their respective rights to immediate possession to the Space, the parties agree to resolve any such dispute as follows to minimize costs and delays : 23 .1. Private Meeting: Prior to contacting -any outside agency or party, the parties will sit down face-to-face in a private meeting and attempt to resolve the matter in a reasonable and equitable manner that is fair to all parties . 23 .2 . Mediation: If it is not possible to resolve the matter as indicated above in 23 . 1, the manner will be submitted to a mutually agreeable professional mediator. The parties will meet with the mediator as required by the mediator to attempt to June 13, 1995 11 DRAFT resolve the matter in dispute . Meetings will continue to be held with the mediator as long as the mediator believes such meetings have a chance of resolving the matter in dispute. If any fee is charged by the mediator, the parties will each pay one half of that cost in advance . 23 .3 . Arbitration/Reference: Should the matter fail to be resolved through the procedure set forth above at 23 . 1 and 23 . 2 , the parties agree that the matter will be resolved by binding arbitration. If the Homeowner(s) brings the matter to arbitration, then the Homeowner(s) will pay one half of that cost and the Park will pay one half of that cost . If the Park brings the matter to arbitration, then the Park will pay the total cost . Neither party waives any rights to discovery, the rules of evidence, or appeal . 24 . Choice of Laws and Venue: This Lease and all documents referred to in this Lease shall be construed and enforced in accordance with the laws of the State of California. The parties to this Lease agree the proper venue for any action brought to enforce any rights under or to interpret this Lease is the County of Contra Costa. 25 . Acknowledgement of Offer of Other Rental Documents and Options: The Homeowner(s) acknowledges receipt of an offer of a rental agreement for a term of twelve months, or such lesser period as the Homeowner (s) may request, or such longer period as the parties may agree to, and that the terms of the twelve-month agreement, or the agreement for a lesser period do not differ from those being offered to month-to-month tenants for the same period. 26 . Acknowledgment of No Force or Coercion: The Homeowner(s) agrees and acknowledges that the Homeowner(s) has not been required, forced, coerced, or offered anything other than the things set forth in this Lease, and, has signed it of the Homeowner(s) ' own free will and accord. 27 . Entire Agreement: This Lease and the documents referred to in it constitute the entire agreement between the parties regarding rental of the Space. This Lease supersedes all prior and any other contemporaneous agreements, representations and understandings either oral or in writing between the parties . 28 . Modification of this Lease: This Lease may be modified only by a written document signed by the parties . 29 . Headings: The titles of the paragraphs -and the subparagraphs contained in this Lease are inserted solely for June 13, 1995 12 DRAFT convenience and under no circumstance are they or -any of them to be treated or construed as any part of this Lease nor do they constitute, in and of themselves, any part of the agreement between the parties . 30 . Time of the Essence: Time is of the essence with respect to the performance of every provision of this Lease in which time is a factor. 31. Invalidity of Provisions: Certain provisions of this Lease and other documents referred to in this Lease refer to and restate or summarize provisions of the Mobilehome Residency Law and other applicable laws . In every instance it is intended that these references, restatements and summaries will accurately reflect the law and correctly set forth the Homeowner(s) ' and the Park' s rights, liabilities, duties and obligations to one another and to other persons . The same is true of all of the provisions of this Lease and other documents used by the Park. If any of the provisions of this Lease or the other documents used by the Park fail in any way to meet the above criteria, then it is unintentional and all such provisions shall be deemed to be automatically revised to correctly reflect the rights, liabilities, duties and obligations of the parties under the provisions of the Mobilehome Residency Law and all other applicable laws . The Homeowner(s) agrees to promptly notify the Park in writing of any instance where the Homeowner(s) believes that any of the provisions of this Lease or the other documents used by the Park fail to meet the above mentioned criteria. If any provision of this Lease, or any documents referred to in this Lease, or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease or the other documents or the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and such provision of this Lease or the other documents shall be valid and be enforced to -the fullest extent permitted by law. 32 . Condemnation: If the Space or any portion of the Common Facilities and Common Areas in the Park are taken by the power of eminent domain, or sold by the Park under the threat of said power (all of which is herein referred to as "condemnation" ) , this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession, whichever occurs first . If more than. twenty percent (20o) of the Space, or more than twenty percent (200) of the land area of the Park is taken by condemnation, either party may terminate this Lease as of the date the condemning authority June 13, 1995 13 DRAB takes possession. This termination will be effected by giving notice in writing of such election within twenty (20) days after the Park shall have notified the Homeowner(s) of such taking or, in the absence of such notice, then within twenty (20) days after the condemning authority shall have taken possession. If this Lease is not terminated by either party as provided hereinabove, then it shall remain in full force and effect as to the portion of the Park remaining. All awards for the taking of any part of the premises or any payment made under the threat of the exercise of the power of eminent domain shall be the property of the Park, whether made as compensation for the diminution of the value of the leasehold or for the taking of the fee or as severance damages; provided, however, that the Homeowner(s) shall be entitled to any award for loss of or damage to the Homeowner(s) ' mobilehome and removable personal property, including storage sheds, awnings, skirtings and patios . Each party hereby waives the provisions of Code of Civil Procedure Section 1265 . 130 allowing either party to petition the Superior Court to terminate this Lease in the event of a partial taking of the premises . Rent shall not be abated. or reduced during the period from the date of taking until the completion of restoration by the Park, if any, and all other obligations of the Homeowner (s) under this Lease shall remain in full force and effect . Mun "`ed>> c €€€> XX en .::..:...... ut.::;:...:.:::::::;.:::::::::::::. ::::.::.:::::::::::::: h . han ;.:xes de t ....use:::a aQ ... .�...::adnee:.:,e. ..::.; : . 1. home:.;:. k::::;::a: ::::>:: c3d::::car.::a.:::.z . . :xs.�.orx :°td ' te >gnat : : ....:.....::.:::........;:.;...;;:.;: .....: n :::>::::.;::.: .::: :.::::::.:.:..:.::. . .:..:.:.... ::::> :::::::::::::.:::::::::.::.:::::.�3............:: :::::::::::::::::.:::::::::::::.:::.. ................................................. Via .... .e .........:.: ..:.:,:U. :::: .. e.e r .:::bra. h.:::...:.::;..:::::.:::::: :::::::: : :rt : a:::<: : at >«<::<w : : hvex:>:::: s :ur :» : :rs:t:>: 33 . Acknowledgement: The parties each specifically acknowledge that they have read this Lease and understand its provisions . The Homeowner (s) has been given a completed copy of this Lease, the Rules of the Park and a current copy of the Mobilehome Residency Law with the copy of the completed Lease . By signing this Lease, the Homeowner (s) acknowledges receipt of an offer of a rental agreement for the term of twelve months, or such lesser period as the Homeowner(s) may demand or such longer period as the parties may agree upon. (Civ. Code, § 798 . 18) ....: L. Qx ...:::: a .dge.::.:;s; :::::::::::::::::::: :::::::::::: F.::::::::::::::::: :: crepe r; ] June 13, 1995 14 DRAFT THIS COMMUNITY DOES NOT DISCRIMINATE IN THE RENTAL OF MOBILEHOME SPACES ON THE BASIS OF RACE, SEX, RELIGION, NATIONAL ORIGIN OR SEXUAL PREFERENCE. THE HOMEOWNER(S) AGREES THE PARK, ITS MANAGER AND OWNERSHIP HAVE NOT REQUIRED THIS LEASE TO BE SIGNED, NOR REQUIRED THE HOMEOWNER(S) TO PURCHASE, RENT, OR LEASE ANY GOODS OR SERVICES FROM THE PARK, ITS MANAGEMENT OR ANYONE ELSE. BY SIGNING THIS LEASE, THE UNDERSIGNED CONSENT TO THE RULES IT CONTAINS PURSUANT TO CALIFORNIA CIVIL CODE SECTION 798 .25 . THE PARK FIRST OFFERED THIS LEASE TO THE HOMEOWNER(S) ON , AND PROVIDED THE HOMEOWNER(S) AT THAT TIME WITH WRITTEN NOTICE THAT THE PARK' S OFFER TO -ENTER INTO THIS LEASE WITH THE HOMEOWNER(S) WOULD REMAIN OPEN FOR AT LEAST 30 DAYS. THE HOMEOWNER(S) ACKNOWLEDGES THE PARK COMPLIED WITH PROVISIONS OF THE MOBILEHOME RESIDENCY LAW BY PROVIDING THE HOMEOWNER(S) WRITTEN NOTICE THAT THE HOMEOWNER(S) HAD AT LEAST 30 DAYS FROM THE DATE THIS LEASE WAS FIRST OFFERED TO THE HOMEOWNER(S) TO ACCEPT OR REJECT THIS LEASE. HOMEOWNER HOMEOWNER DATE DATE HOMEOWNER DATE THE PARK HEREBY PROVIDES THE HOMEOWNER(S) WITH NOTICE THAT THE HOMEOWNER(S) MAY VOID THIS LEASE BY NOTIFYING THE PARK'S MANAGEMENT IN WRITING WITHIN 12 HOURS OF THE HOMEOWNER(S) ' EXECUTION OF THIS LEASE. THE HOMEOWNER(S) ACKNOWLEDGES RECEIPT OF THIS NOTICE: HOMEOWNER HOMEOWNER June 13, 1995 15 DRAFT DATE DATE HOMEOWNER DATE THE HOMEOWNER(S) HAS BEEN ADVISED TO TAKE THIS LEASE TO A LAWYER AND OBTAIN THE LAWYER'S ADVICE BEFORE SIGNING IT. [ ] I/we have taken the Park' s advice and have taken this Lease to a lawyer before signing it . The lawyer is : Name : Address : Telephone : FAX: [ ] Despite the Park' s advice, I/we have declined to seek legal advice before signing this Lease . IN WITNESS WHEREOF, the parties hereto have executed this Lease as of 199 i HOMEOWNER HOMEOWNER HOMEOWNER Park By: (Position) June 13, 1995 16 i DRAFT Which of the following services are provided to residents as part of the monthly rent? Yes No Not Available (Utility Bills Directly) Water Sewer Trash Gas Electricity Paramedic Other (Specify) June 13, 1995 18 DRAFT How are the following services metered? Park Meter Individual Not available Space Meter Water Sewer Trash Gas Electricity Paramedic June 13, 1995 19 DRAFT TOTAL NUMBER OF SPACES WITHIN PARK NUMBER OF SPACES UNDER CONTRA COSTA COUNTY STANDARD MOBILEHOME SPACE LEASE NUMBER OF SPACES UNDER OTHER LEASE AGREEMENTS) On attached sheets please indicate the EXACT amount of the current rent for all mobilehome spaces within the -park (both Contra Costa County Standard Mobilehome Space Lease (s) and other lease or rental agreements) . Owner' s or Agent' s Signature Date LTF :df 19a : \leas613 . 95 June 13, 1995 20 -� TEL No . Jun 13 , 95 9 :09 No .004 P .01 THE LAW FIRM of SPANGENBERG & ASSOCIATES . post-it'"brand fax transmittal memo 7671 Morpagea I, 265 Hamilton Avenue, Suite 430 David 5pangenberg, Esq. Pato Alto, California 94301 Lark L. Ritson, Esq. �. F C�r�1� 5 Fail: (416) 326-4491 {4151 325-4494 Mari L. Gottdiener, Esq. co,r � � co. v Phone N Susan Crockett, Paralegal ax M Fax N Jason Heard, Executive Assist • /QS $ fpl�L" n Ken Fitzhugh, Real Estate ConbUIL01.. JUN IJDJ June 12, 1995 SUPEJU QR OFFIQF: FEDERAL EXPRESS Chairperson Gayle Bishop Hon. Mark DeSaulnier Contra Costa Co. Board of Supervisors Contra Costa Co. Board of Supervisors 18 Crow Canyon Court, Suite 120 2301 Stanwell Drive San Ramon, California 94583 Concord, California 94520 Hon. Jim Rogers Hon. Thomas Torlakson Contra Costa Co. Board of Supervisors Contra Costa Co. Board of Supervisors 100 37th Street, Room 270 300 E. Leland Avenue, Suite 100 Richmond, California 94805 Pittsburg, California 9456.5 Hon. Jeff Smith Phil Batchelor, Chief Admin. Officer Contra Costa Co. Board of Supervisors 651 Pine Street, 11th Floor 651 Pine Street, Room 108-A Martinez, California 94553 Martinez, California 94553 Victor J. Westman, Esq. Contra Costa County Counsel 651 Pine Street, 9th Floor Martinez, California 94553 Re: Proposed Mobilehome Space Rent Stabilization Ordinance Dear Supervisors, Mr. Batchelor and Mr. Westinan: This letter comes to you on behalf of several of the mobilehome parkowners of the County of Contra Costa. This office has been asked to look into the revised draft Mobilehome Park Space Rent Stabilization Ordinance. Although there have been many improvements made to the original draft ordinance, two changes need to be made in order for the ordinance to be palatable to my clients. The original ordinance provided for an automatic indexing of rent increases at 60% of the Consumer Price Index. It is my understanding that the latest version of the ordinance calls for an indexing at 75% of the Consumer Price Index. D:1M11006L\B0ARD.002 T It is our position that recent case law, such as City of Berkeley v. City of Berke4 Rent Stabilization Bogd, 27 Cal.AppAth 951 has held that anything less than 100% of CPI is confiscatory, In City of Berkeley, at page 969, the Court stated: "In Hirkenfeld [citation] our Supreme.Court held that a rent control system is only constitutional when it contains a mechanism for adjusting rents across the board which will avoid the confiscatory effectsQf inflation on rents frozen by regulations. (Emphasis added) The Consumer Price Index is a measure of the erosion of the purchasing power on our dollar. The County's proposal to adopt a 75% of CPl indexing standard will have the net effect of reducing rents in real dollars by 25% of CPI. Nothing less than 100% of CPI will be tolerated by the parkowners of Contra Costa County since anything less than the full indexing of CPI will result in a reduction"in rent in real dollars. Any reduction of rent is confiscatory. Accordingly, we urge the Board to reconsider its 75% of CPl proposal and replace it with 100% of CPI. Only by using the 100% of CPI factor will the rents be held consistent year after year in real dollars. The next substantial error the County makes in its proposed rent control ordinance is the requirement that the parkowner pay any portion of the annual fee for the rent control ordinance. The efforts to obtain rent. control have been exclusively spearheaded by the residents and are for the residents' benefit. It is wholly inappropriate that the -parkowners should share in the cost of administering a rent control ordinance which is drafted for the primary and exclusive benefit of residents. Accordingly, we would request that the cost of administering this ordinance through annualized assessments be a pass-through to the residents. We urge the Board to consider these changes to the ordinance in order to make it workable to the parkowners of Contra Costa County, Very trul U�s, AVID SPA GENRE G DSlvf U:\h1\1OOOL\SQARU.UQ2 JUN-12-95 MON 05 : 12 PM REMI RL MvW;;-A"U1A 92 , RENTAL HOUSING ASSOCIATIONr o npa-men Me •tie Post-It-brand fax transmittal memo 7671 M 0f pages ► �- � p JP?h.MO s June 12 , 1.9 95 °oj/'t wes�i7'}N N �t, .J S Fax N ax M U �O 9>t> z'7 Gayle Bishop, Chairwoman Contra Costa County Board of Supervisors ' 651 pine Street, Room 106 Martinez, CA 94553--1293 Dear Chairwoman Bishop and Supervisors: Tomorrow you will be considering the final recommendations of the internal Operations Committee regarding the imposition of Mobile home rent control. -As noted constantly, the concept of rent control, in any form, is an anathema and in this case, an expensive and avoidable one. We would draw your attention to two inseparable items which should have primary bearing on your deliberations: . 1. ) You are $24 Million abort of meeting the FY 1995-96 budget of $718 million. This is a shortfall which you are trying to rectify by cutting existing programs. ag why, as the ultimate repository of fiduciary responsibility, woy d you r,onsi.der _thp, additlon of a now bureaucracy? 2. ) The cost to implement a rent control/lease-accord program, according to the staff accounting memo of April 4, can range from $410,267.63 to $94,468.80 and that did not include any cost for a Housing Assaistant. How, the cost is anti.oipAted to be $137,600-- and you h&ViA't even made a decision on the issue yet! The cost to administer the city of Hayward's mobile home rent control ordinance is only $111, 000 and it's been in effect for years. Clearly, the Board cannot afford to adopt a mobile home rent control ordinance -or- an accord/lease program (given the relatively similar costs to administer) . Or if so, must then decide which health, social services, sheriff Is department, or other programs and personnel will be cut to accomodate that decision. 3333 Vincent Road,Suite 220•Pleasant Hill, California 845;3• (510)932-3234•Fax (510)932-4678 JUN-12-95 MON 05 : 17 PM RENTAL HOUSING 518 esu 40tH r • �+� rj. 1 1 1 r2- The 2-The more prudent course voula be to monitor the voluntary acceptance of long term leases Vitb a report back in a time frame sufficient to provide meaningful and aocurate data. And since the bulk of tenant concerns are primarily maintenance related, state law already gives the county sufficient leverage, using current stuffing, for enforcement on a park-by-park basis. The Rental Housing Association of contra costa county urges your consideration of the only logical, cost efficient approach to this issue. Thank you for the opportunity to provide our input. . Respectfully Paul. A. Stewart rI Executive Directcz- PAS/pas