COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

August 28, 2003

BOARD MEETING DATE:

September 9, 2003

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Introduction of a Mobilehome Rent Control Ordinance

Recommendation

1.

Introduce a mobilehome rent control ordinance, and waive reading of the ordinance in its entirety.

2.

Continue the consideration of the ordinance to the Board's next meeting for final adoption.

Background

At the July 15, 2003 meeting, your Board directed staff to draft a mobilehome rent control ordinance for consideration at your meeting of August 12, 2003. At the August 12^th meeting, your Board directed the Office of the County Counsel to consider changes to the ordinance based on comments by interested parties, including changes proposed by the El Granada Homeowners Association ("Association").

Discussion

Over the past few years, the Board and County staff have been working on finding ways to preserve affordable housing options for residents of manufactured or mobilehome communities. In October 2001, your Board first considered a draft mobilehome rent control ordinance. The ordinance brought to the Board in August proposed the annual increase in the Consumer Price Index as the cap for rent increases. It also provided for vacancy control, meaning that the annual limit on rent increases applies even in the case where a new tenant occupies a unit. The ordinance applies to all eight mobilehome parks within the unincorporated area of the County. However, under state law, certain units which are governed by long term leases are exempt from rent control.

The proposed ordinance now being presented has been amended to incorporate some of the changes proposed by the Association. The changes are reflected in the redline draft presented with this report. The major changes to the August 12th version are as follows:

1.

Revised and expanded findings are included in the form suggested by the Association.

2.

The annual limit in rent increases has been changed from 100% of CPI to 75% of CPI. The Association had proposed an annual limit of 60% of CPI. Mobilehome park owners may still petition the County for a higher increase if they contend a higher increase is necessary to secure a fair return.

3.

The initial twelve month period for determination of base year rent remains as measured from the date of the last rent increase before the date the ordinance becomes effective. This does not represent a change from the August 12 version. The Association has proposed that the initial twelve month period be measured from January 1, 2001.

4.

The standard for determining "fair return" as proposed by the Association has been added to the ordinance. This standard calls for maintaining the net operating income achieved by the park during the 12 months preceding the base year date with appropriate allowance for inflation and properly amortized new capital improvement.

5.

Changes have been made in the hearing procedures and timelines, extending the time from 45 days to 120 days for completion of the hearing, and providing the Hearing Officer 30 days (instead of 10 days) within which to render a decision.

6.

Application costs have been increased, and provision made for hiring experts. In the event that the mobilehome park owner is successful in petitioning for an adjustment, these costs may be passed through to the tenants. These changes were recommended by the Association.

Vision Alignment

The proposed ordinance furthers the County's efforts to offer a full range of housing choices, and to promote responsive, effective and collaborative government.

Fiscal Impact

The ordinance may have a small unknown General Fund impact due to an increased workload for the Environmental Services Agency in administering hearings, but at least part of the cost would be defrayed by fees required for filing a petition for rent increase.