ORDINANCE NO._______________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO,

STATE OF CALIFORNIA

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AN ORDINANCE ADDING CHAPTER 1.30 TO THE ORDINANCE CODE,
REGARDING MOBILEHOME RENTS

The Board of Supervisors of the County of San Mateo, State of California, ORDAINS as follows:

SECTION 1. Chapter 1.30 is hereby added to Title 1 of the San Mateo County Ordinance Code to read as follows:

Chapter 1.30

MOBILEHOME RENT CONTROL

Sections:

1.30.010 Findings and purpose.

1.30.020 Definitions.

1.30.030 Maximum rent increase.

1.30.040 Rent increase in excess of increase allowed under Section 1.30.030.

1.30.050 Powers and duties of the Hearing Officer.

1.30.060 Conduct of proceedings, hearings.

1.30.070 Standards of review.

1.30.080 Decision of the Hearing Officer.

1.30.090 Tenant's right of refusal.

Section 1.30.010 Findings and purpose.

There is presently within the unincorporated area of San Mateo County and the surrounding areas a shortage of space for location of mobilehomes. This has resulted in a low vacancy rate and rents have been and are presently rising rapidly and causing concern among a substantial number of residents, as well as threatening to reduce the supply of affordable housing. Because of the high cost of moving mobilehomes and the potential for damage resulting therefrom, the requirements relating to the installation of mobilehomes, including permits, landscaping and site preparation, the lack of alternative homesites for mobilehome owners, and the substantial investment of mobilehome owners in such homes, the Board of Supervisors finds and declares it necessary to protect the owners and occupiers of mobilehomes from unreasonable rent increases, while at the same time recognizing the need of the park owners to receive both a fair return on their property and rental income sufficient to cover increasing costs of repair, maintenance, insurance, employee services and utility-government assessments.

Section 1.30.020 Definitions.

"Capital improvements" means those improvements that materially add to the value of the property and appreciably prolong its useful life or adapt it to new uses and which may be amortized over the useful life of the improvements in accordance with the Internal Revenue Code.

“Consumer Price Index” or “CPI” means the Consumer Price Index for all Urban Consumers for the San Francisco-Oakland-San Jose area, published by the U.S. Department of Labor, Bureau of Labor Statistics.

"Hearing Officer" means the San Mateo County Environmental Services Agency Director or his/her designee.

"Housing services" means services provided by the owner related to the use or occupancy of a mobilehome space, including but not limited to insurance, repairs, replacements, maintenance, painting, lighting, heat, water, refuse removal, laundry facilities, recreation facilities, parking security and employee services.

“Mobilehome” means a mobilehome as defined in section 798.3 of the Civil Code.

“Mobilehome park” means any mobilehome or manufactured home park, as defined in section 798.4 and 798.6 of the Civil Code, which rents or leases spaces in the unincorporated area of San Mateo County.

"Mobilehome park owner" means the owner, lessor, operator or manager of a mobilehome park.

"Mobilehome tenant" means any person entitled to occupy a mobilehome dwelling unit pursuant to ownership thereof or a lease or rental arrangement with the owner thereof.

“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 July, issued in the month of August. In the event that an index is not published for the month of July, the closest preceding month for which an index is published shall be used.

"Rehabilitation" means that work done by an owner to a mobilehome space, or to the common area of the property containing a mobilehome space, 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 such repair is not reimbursed by insurance proceeds.

"Rent" means the consideration, including any bonus, benefits or gratuity demanded or received in connection with the use and occupancy of a mobilehome space in a mobilehome park, but exclusive of any amounts paid for utilities, the use of the mobilehome dwelling unit, subletting or security deposit.

Section 1.30.030 Maximum rent increase.

Except as provided herein, a mobilehome park owner shall not demand, accept or retain rent for a mobilehome space which exceeds the rent in effect on the effective date of this chapter. If a previously rented mobilehome space was not rented on the effective date of this chapter, the owner shall not, except as provided herein, demand, accept or retain rent which exceeds the rent in effect during the last month the space was rented prior to the effective date of this chapter.

The rent payable for use or occupancy of any space in a mobilehome park shall not be increased more than once in any twelve (12) month period. Said rent increase shall not exceed one hundred (100) percent of the Percent Change in the Consumer Price Index, or five percent, whichever may be less. The initial twelve month period shall begin on the effective date of the last rent increase.

This provision shall apply regardless of whether there is a change in the mobilehome tenant occupying the space.

Section 1.30.040 Rent increase in excess of increase allowed under Section 1.30.030.

A. If dissatisfied with the maximum rent permitted by Section 1.30.030 of this chapter, an owner may request an adjustment in rents according to the provisions of this section. However, no owner of a mobilehome park may request more than one adjustment to rents during the twelve (12) month period following the first full day the rent increase authorized by Section 1.30.030 is put into effect.

B. An owner may request an adjustment in excess of the rent increase authorized by Section 1.30.030 by conforming to the following procedures:

1. The owner of a mobilehome park seeking an adjustment in rents must submit a petition for rent adjustment to the Hearing Officer. The petition shall contain relevant and detailed documentation supporting the level of rent increase requested.

2. The petition shall be filed with the Hearing Officer no later than sixty (60) days before the desired date the requested rent increase is to take effect.

3. The petition shall contain a copy of a certified letter sent to the affected tenants notifying them of the petition and the amount of increase requested.

4. The petition shall contain a statement attesting to the availability of any records required by the Hearing Officer to complete his or her review of the request for rent adjustment. Records shall include, but not be limited to, any audits of the mobilehome park's books, financial statements, and records relating to any governmental or utility assessments which have been levied upon the mobilehome park.

5. The petition shall be accompanied by a check or money order in the amount of three hundred dollars ($300.00) to cover costs incurred by the County in fulfilling the Hearing Officer’s responsibilities. The fee is nonrefundable.

6. The petition shall be submitted under penalty of perjury.

Section 1.30.050 Powers and duties of the Hearing Officer.

The Hearing Officer shall have the following powers and duties:

A. To receive, investigate, hold hearings on, and pass upon the petitions for rent adjustment;

B. To make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary to carry out his or her duties;

C. To adopt, promulgate, amend and rescind administrative rules to effectuate the purposes and policies of this chapter and to prescribe the form for petitions for rent adjustment;

D. To maintain for five years rent adjustment hearing files and dockets listing the time, date, and place of hearings, the parties involved, the addresses involved, and the final dispositions of the petitions.

Section 1.30.060 Conduct of proceedings, hearings.

A. Within ten days of the filing of a petition for rent adjustment the Hearing Officer shall set a date for the hearing and shall have notified all affected parties by mail of the date and time of the hearing.

B. The hearing shall be set for a date not less than twenty (20) nor more than thirty (30) days after the date of filing the petition for rent adjustment.

C. No hearing shall be continued to a date later than forty-five (45) days from the date of filing the petition for rent adjustment.

D. The hearing need not be conducted according to technical rules relating to evidence and witnesses. Any relevant evidence may be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil actions.

E. In the event that either the owner or the tenant or both should fail to appear at the hearing, the Hearing Officer may hear and review such evidence as may be presented and make such decisions just as if both parties had been present or continue the hearing or dismiss the petition for rent adjustment.

F. Materials received by the Hearing Officer in conjunction with a petition for rent adjustment shall be maintained in the County Clerk's office and shall be available for review by the public during normal working hours.

Section 1.30.070 Standards of review.

In determining whether the rent increase proposed by the mobilehome park owner is just, fair and reasonable, the Hearing Officer shall consider, among other relevant factors, the rent lawfully charged for comparable mobilehome spaces in the unincorporated area of San Mateo County, changes in costs to the owner attributable to increases or decreases in master land or facilities lease rent, utility rates, property taxes, insurance, advertising, variable mortgage interest rates, governmental assessments and fees, incidental services, employee costs, normal repair and maintenance, and other considerations, including, but not limited to, capital improvements, housing services, rehabilitation, net operating income, as well as a fair return on the owner's property.

Section 1.30.080 Decision of the Hearing Officer.

A. The Hearing Officer shall adopt findings and a decision no later than ten days after the conclusion of the hearing on any petition. All parties shall be sent a copy of the findings and decision.

B. Based on his or her findings, the Hearing Officer shall deny the rent adjustment requested in the petition, grant the request, or set the rent adjustment at an amount less than requested.

C. The action of the Hearing Officer shall be subject to judicial review pursuant to Code of Civil Procedure Section 1094.5.

Section 1.30.090 Tenant's right of refusal.

A tenant may refuse to pay any increase in rent which is in violation of this chapter. Such refusal to pay shall be a defense in any action brought to recover possession of a mobilehome space or to collect the rent increase.

SECTION 2. This ordinance shall be effective thirty (30) days from the date of passage thereof.

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