Ventura County Mobile Home Park Rent Review Board August ... · rent control a space that was the subject of a coach sale from the property owner to the space resident or prospective

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PARTICIPATE IN THIS MEETING, PLEASE CONTACT DILLAN MURRAY, RENT REVIEW BOARD STAFF

COORDINATOR, AT 805-654-5042 OR [email protected]. REASONABLE ADVANCE

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PREFERRED) WILL ENABLE US TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO

THIS MEETING.

Wednesday, August 19, 2020 at 1:00 p.m.

All interested persons are invited to attend and be heard at a public meeting to be held by the Ventura County Mobile Home Park Rent Review Board (RRB) at the date and time noted above using video conference and teleconference formats.

In response to the declared state and local emergencies due to the

novel coronavirus, and in accordance with the California

Governor’s stay at home order and the County of Ventura Health

Officer’s local order, the Hall of Administration is closed to the

public. The RRB public meeting will be conducted online using

video conference and teleconference formats. The RRB meeting is

open to the public. For detailed information regarding listening to

the meeting only, viewing the meeting, and providing public

comment, please read the information below.

LISTENING TO THE MEETING ONLY

If you do not have access to a computer or if you would like to listen to the meeting by phone, please follow the steps below:

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Ventura County Mobile Home Park Rent Review Board

August 19, 2020, Meeting Agenda County of Ventura • Resource Management Agency • Planning Division

800 S. Victoria Avenue, Ventura, CA 93009-1740 • (805) 654-5042 • vcrma.org/divisions/planning

RRB Agenda August 19, 2020 Meeting

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https://us02web.zoom.us/webinar/register/WN_M6ILQPMNTCeDHOPqN8KkAQ

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5. Upon successful registration, you will be given the information needed to access the meeting. Click the link on the screen following the title “Please click this URL to join”. You will be placed into the meeting as an attendee.

PROVIDING PUBLIC COMMENT

Written Comments:

1. While written comments may be submitted by e-mail during the hearing, the public is encouraged to submit comments no later than 10:00 a.m. on Wednesday, August 19, 2020, to Dillan Murray via email at [email protected]. Comments may not exceed 250 words. All comments received prior to the deadline which are 250 words or less will be read into the record by staff. Comments greater than 250 words will be distributed to the RRB at the hearing and included in the public record;

2. Comments submitted must include the following information:

a. Name;

b. Item you are addressing with your comment; and

c. Your mailing address.

Comments Provided at the Public Meeting:

1. If you are accessing the hearing via phone and would like to speak on

an item, dial *9 to raise your hand or *6 to send a request to be unmuted

to provide comment. If you are accessing the hearing online, select the

“raise hand” function;

2. Interested speakers will be called upon in the order received;

3. Comments submitted must include the following information:

a. Name;

b. Item you are addressing with your comment; and



mailto:[email protected]


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c. Your mailing address.

AGENDA

Consideration will be given only as noted to the following:

1. Call to Order

2. Pledge of Allegiance to the Flag of the United States of America

3. Approval of Minutes RRB Meeting held on May 20, 2020

4. Public Comment on Concerns within the Authority of the County Rent

Control Ordinance This time is set aside for public comment on items not otherwise on this agenda which are within the purview of the Rent Review Board. Speakers wishing to address the Board shall be allowed a maximum of five minutes for their comments. The Board is prohibited from taking action on any item that is not part of the printed and published agenda.

5. Review and Adopt Proposed Resolution RRB20-001 for the Purpose

of Clarifying the Rent Control Re-Entry Calculation Outlined in Section 81005 (g) of the Ventura County Ordinance Code Dealing with Mobile Home Park Rent Control Ordinance No. 4462 Presentation by Staff

6. Review and Adopt Proposed Resolution RRB20-002 for the Purpose of Clarifying the Rent Control Re-Entry Calculation Outlined in Section 81005 (g) of the Ventura County Ordinance Code Dealing with Mobile Home Park Rent Control Ordinance No. 4462 when a Base Rent is Not Available Presentation by Staff

7. Review and Adopt Proposed Resolution RRB20-003 for the Purpose of Clarifying Section 81000 “Purpose and Intent” of the Ventura County Ordinance Code Dealing with Mobile Home Park Rent Control Ordinance No. 4462 Concerning the Replacement of Park-Owned Units Presentation by Staff

8. Comments from Rent Review Board Members Brief announcements on the Mobile Home Park Rent Control Program 9. Comments from Planning Staff


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10. Meeting Adjournment

Next meeting date: Wednesday, November 18, 2020 at 1:00 p.m. at the Ventura County Government Center, Hall of Administration, 800 S. Victoria Avenue, Ventura, CA 93009, Third Floor, Multipurpose Room.

Board Members Present: Tom Hundley, Chair Chuck Eskew, Vice Chair Brent Rosenbaum Richard Francis

Board Members Absent: None County Staff Present: Dillan Murray, Staff Coordinator

Denice Thomas, AICP, Planning Programs Manager Charmaine Buehner, Assistant County Counsel 1. 1:00 P.M. HEARING CALLED TO ORDER By Chair Hundley 2. Pledge of Allegiance to the Flag of the United States of America

Due to the meeting being held virtually, Chair Hundley instead acknowledged a moment of silence for the Flag of the United States of America. Ex-parte Communication: None.

3. APPROVAL OF FEBRUARY 19, 2020 MINUTES

Vice Chair Eskew made a motion to approve the February 19, 2020 meeting minutes. Board Member Francis seconded the motion. Motion passed; 3-0. Chair Hundley was absent from the February 19, 2020 meeting and abstained from voting.

4. PUBLIC COMMENT ON CONCERNS WITHIN THE AUTHORITY OF THE COUNTY RENT CONTROL ORDINANCE

Ms. Liz Cole with the Golden State Manufactured-Home Owners League (GSMOL) and Golden Oaks Mobile Home Park inquired as to whether the County of Ventura had extended rent or eviction protections to mobilehome residents who lost work or income due to the COVID-19 crisis. Dillan Murray, Planning Division responded in the affirmative, and noted that the County’s April 22, 2020 Eviction Prevention Ordinance includes protections for mobilehome residents. Additionally, Charmaine Buehner, Assistant County Counsel mentioned the existence of Ventura County Legal Aid (a non-profit not affiliated with the County), an organization that has put

Ventura County Mobile Home Park Rent Review Board

Item 3, Draft Meeting Minutes – May 20, 2020 County of Ventura • Resource Management Agency • Planning Division 800 S. Victoria Avenue, Ventura, CA 93009-1740 • (805) 654-5042 • vcrma.org/divisions/planning

MHPRRB

Minutes May 20, 2020

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together a resource of all the potentially applicable rules governing evictions within the County enacted within the last few months, by area. Ms. Buehner stated that more information can be found at www.vclegalaid.org. Ms. Buehner noted that the question was outside the purview of the Mobile Home Park Rent Review Board (MHPRRB), although Staff were still able to provide the information.

5. RECEIVE A BRIEFING FROM LONG RANGE PLANNING SECTION STAFF

REGARDING THE MOBILEHOME PARK OVERLAY ZONE AND SENIOR MOBILEHOME PARK OVERLAY ZONE AND ONGOING PROGRAM EFFORTS

Presentation by Staff:

Owen Deutsch, Planning Division provided an overview of the Mobilehome Park Overlay Zone and Senior Mobilehome Park Overlay Zone which were established by ordinance of the Ventura County Board of Supervisors in December 2019. Mr. Deutsch discussed the purpose and intent of the zones and operational requirements of the eight Senior Mobilehome Parks in the county, including ongoing certification and supporting documentation submission requirements. Mr. Deutsch noted that any compliance issues would be expected to be handled by condition compliance Staff of the Planning Division.

6. PROVIDE DIRECTION TO PLANNING STAFF ON ESTABLISHING

ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF SECTION 81005 (G) OF THE VENTURA COUNTY MOBILE HOME PARK RENT CONTROL ORDINANCE 4462


Denice Thomas, Planning Programs Manager presented a background on the issue that required direction from the MHPRRB. Ms. Thomas explained that a park owner had requested that a mobile home space exempt from rent control previously for reasons other than purchase by the park owner (i.e. the existence of a storage agreement between two private parties) could re-enter at market rate instead of following the standard rent control re-entry calculation outlined in Section 81005 (g) of the Ordinance. Ms. Thomas explained the Ordinance states this re-entry calculation only applies when spaces leave rent control "because of purchase by the park owner." Therefore, Ms. Thomas summarized, the park owner argued that since the space in question did not leave rent control because of purchase by the park owner, the park owner was able to raise the space rent to market rate at the time of sale. Planning Staff approved the park owner’s request following a review of Planning Division precedent.

Ms. Thomas requested direction from the MHPRRB members as to whether they interpret the Ordinance to only require application of the rent control re-entry

MHPRRB


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calculation when spaces leave rent control "because of purchase by the park owner.” Additionally, Ms. Thomas requested direction from the MHPRRB members as to whether they favored a resolution to clarify this section of the Code. Deliberation and Recommendation: Board Member Francis noted that the language of the Ordinance was clear on the applicability of Section 81005 (g) and posed a sincere problem. Mr. Francis stated that the issue would likely need to be referred to the County Board of Supervisors for revision. Mr. Francis expressed his concern about the potential for subterfuge by park owners through raising rents to market rate via this provision. Mr. Francis inquired as to the Staff analysis and recommendation on this issue. Denice Thomas, Planning Division expressed shared concern about the implications of this apparent loophole. Ms. Thomas noted that the MHPRRB is the body tasked with providing clarification on the Ordinance and the Ordinance itself does not provide guidance in this regard, which is why Staff is requesting direction from the Board. Chair Hundley stated that he was in favor of the existing language of the Ordinance. Mr. Hundley expressed his view that Section 81005 (g) presents a protection for the park owner against conversion of coaches to storage sheds by tenants. Mr. Hundley clarified his view that the course of action followed by Staff in the example case would be acceptable. Board Member Francis noted this belief that any subterfuge would be happening by the park owner, not a tenant, as described by Mr. Hundley. Mr. Francis stated that any private coach owner who used their space for storage would still have some sort of agreement with the park owner. Charmaine Buehner, Assistant County Counsel emphasized that the purpose of Staff’s request for direction on this item is to receive input from the Board on which proposed course of action gives effect to the purposes and policies of the Ordinance. All questions from Board members were adequately addressed. Board Member Francis directed Staff to draft a rule or resolution, for review by the Board at a future meeting, that would enable Staff to apply the rent control re-entry calculation identified in Section 81005 (g) of the Ordinance to mobile home spaces that were previously exempt from rent control and are re-entering a residential rental situation, regardless of the reason for prior exemption.

MHPRRB


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Chair Hundley noted that he would like to see Staff provide greater clarification on the justification for such a change when the proposed resolution is brought forward at a future meeting. Board Member Francis responded that such justification would be derived from Section 81000 “Purpose and Intent” of the Ordinance. A consensus of the Board was in favor of Board Member Francis’s direction for Staff to bring a proposed resolution before the Board at their August 2020 public meeting to address this issue.


ADMINISTRATIVE GUIDELINES FOR THE DETERMINATION OF BASE RENT IN CERTAIN INSTANCES WHEN CALCULATING RENT CONTROL RE-ENTRY PURSUANT TO SECTION 81005 (G) OF THE VENTURA COUNTY MOBILE HOME PARK RENT CONTROL ORDINANCE 4462


Denice Thomas, Planning Programs Manager presented a background on the issue that required direction from the MHPRRB. Ms. Thomas explained that neither the Ordinance nor any identified resolution of the MHPRRB addresses how to calculate rent control re-entry, as outlined in Section 81005 (g), in instances wherein a base rent is not available due to a space never having been previously subject to rent control. Ms. Thomas explained that in the absence of this, Staff have determined that in order to meet Section 81000 “Purpose and Intent” of the Ordinance, Staff would utilize the earliest space rent average on file for the park and apply every sequential approved annual adjustment for the years when the space was exempt from rent control. This method would exclude any decontrols or potential market rate increases of other spaces in the park which would tend to inflate the space rent average for the park over time.

Ms. Thomas requested direction from the MHPRRB members as to whether they agree utilizing the average base rent the first year a park is subject to rent control is consistent with the purpose and intent as stated in Section 81000 of the Prdinance. Additionally, Ms. Thomas requested direction from the MHPRRB members as to whether they favored a resolution that memorializes this interpretation. Deliberation and Recommendation:

MHPRRB


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Vice Chair Eskew stated his view that if the park owner has chosen not to rent the unit, and it is exempt from rent control for whatever reason, they should then not be entitled to current rent based on all ministerial changes that occurred previously. Chair Hundley opined that this situation may occur more frequently as long-time park managers retire and their units re-enter rent control. Mr. Hundley was in agreement with the position Staff took in the example case and would be comfortable with Staff bringing a proposed resolution before the Board to memorialize this interpretation, or referring it to legal staff to ensure any suggestion is consistent with the Ordinance. All questions from Board members were adequately addressed. Board Member Francis requested a Staff recommendation in writing and agreed with Mr. Hundley’s direction. A consensus of the Board was in favor of Chair Hundley’s direction for Staff to bring a proposed resolution before the Board at their August 2020 public meeting to address this issue.


ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF SECTION 81000 “PURPOSE AND INTENT” OF THE VENTURA COUNTY MOBILE HOME PARK RENT CONTROL ORDINANCE 4462 CONCERNING THE REPLACEMENT OF PARK-OWNED UNITS

Presentation by Staff: Denice Thomas, Planning Programs Manager presented a background on the issue that required direction from the MHPRRB. Ms. Thomas explained an example case wherein a park owner had purchased a majority of units within the park with the intention of gradually replacing the units with new coaches over time, selling the coaches, and increasing space rents to market rate. The units would then enter rent control utilizing the market rate as the “base” rent. The park owner has stated that Planning Division Staff have previously indicated this practice would be acceptable. Ms. Thomas requested direction from the MHPRRB members as to whether they concur that the transaction between the property owner and a prospective purchaser of their unit which is not subject to rent control is exempt from the Ordinance. Further, Ms. Thomas requested direction as to whether the Board members concur that after the transaction is consummated, the rent agreed upon by the seller and the purchaser is the new baseline rent once the space re-enters rent control. Additionally, Ms. Thomas requested direction from the Board as to whether they favored a resolution to clarify this practice of the Code.

MHPRRB


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Deliberation and Recommendation: Board Member Francis stated his general concern that a park owner has the ability to control whether a tenant can sell their coach on the open market. Mr. Francis noted his observation that tenants are often denied from selling their units to prospective buyers, which provides the tenant with no alternative but to sell their unit to the park owner. Mr. Francis stated that he did not want to incentivize park owners to follow this practice. Mr. Francis inquired as to what the alternative would be to allowing raising space rents to market rate, as indicated in the case example.

Chair Hundley stated his belief that the rent control re-entry calculation outlined in Section 81005 (g) of the Ordinance should apply in the case example presented. Mr. Hundley stated that this section is intended to prevent this situation, and that this situation is clearly intended to circumvent rent control by purchasing and replacing coaches. Denice Thomas, Planning Division clarified how Staff has handled these situations previous. Ms. Thomas emphasized that a change in this policy would be diversion as to how these cases have been handled previously. Charmaine Buehner, Assistant County Counsel noted that if the Board were to come to a consensus, County Counsel would review any proposed resolution or rule to ensure it is consistent with State law and the Ordinance. Ms. Buehner noted that the Board can develop rules and guidelines consistent with intent and purpose of the Ordinance, but any rule or guideline cannot contradict State law or the Ordinance or fall outside the purview of the Board. Ms. Buehner noted that if past Staff precedent isn’t consistent with the Board’s consensus on this issue, then it can be corrected by the Board.

Chair Hundley requested a Staff recommendation in writing at an upcoming meeting of the Board that would seek to change previous Staff practice regarding this issue.

Denice Thomas, Planning Division also inquired as to what type of proof is acceptable to the Board that a coach has changed ownership. Board Member Rosenbaum noted his belief that titles and/or registrations should be reviewed to ensure the new ownership is new and separate from the seller. Board Member Francis stated his view that he did not want to disincentivize park owners from updating coaches and maintaining the environment of a mobile home park and he expressed understanding for their desire to amortize the purchase cost of new coaches. However, Mr. Francis emphasized the need for Staff to exercise caution in this regard in order to prevent circumvention of rent control

MHPRRB


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requirements. Mr. Francis suggested that the decontrol provisions of the Ordinance could apply in these situations. Denice Thomas noted that Staff have received pushback from park owners who have been dissatisfied with what space rents they are permitted to charge according to the requirements of the Ordinance. Ms. Thomas noted that Staff would seek clarification from the Board at a future meeting as to when decontrol rent increases can be used versus when rent control re-entry can be applied. All questions from Board members were adequately addressed.

A consensus of the Board was in favor of Chair Hundley’s direction for Staff to bring a proposed resolution before the Board at their August 2020 public meeting to address this issue.

9. COMMENTS FROM RENT REVIEW BOARD MEMBERS

Board Member Eskew did not have anything to report and left the meeting at this point. Board Members did not have anything to report.

10. COMMENTS FROM PLANNING STAFF

Denice Thomas did not have anything to report. Dillan Murray reported that Staff are continuing to accept and process Ministerial Rent Increase Applications. Staff have approved seven Ministerial Rent Increase Permit and currently have three applications pending.

11. ADJOURNMENT The meeting was adjourned at 2:29 p.m. The next meeting date is scheduled for Wednesday, August 19, 2020 at 1:00 p.m. at the Ventura County Government Center, Hall of Administration, 800 S. Victoria Avenue, Ventura, CA 93009, Third Floor, Multipurpose Room

A. PROJECT INFORMATION:

1. Subject: Mobile Home Park Rent Review Board (“RRB” or “Board”) –initiated proposed resolution to the Ventura County Ordinance Code dealing with Mobile Home Park Rent Control Ordinance No. 4462 (“Ordinance”) (Exhibit 1), Resolution No. RRB20-001 (“RRB20-001”) (Exhibit 2). The purpose of RRB20-001 is to clarify the Ordinance at Section 81005 (g), which section governs how rents must be calculated when a previously exempted mobile home space re-enters rent control. RRB20-001 clarifies the circumstances under which Staff should apply Section 81005 (g) to effectuate the purposes and policies of the Ordinance and to ensure the consistent implementation of it.

2. Applicant: County of Ventura Resource Management Agency Planning Division 800 South Victoria Avenue, L#1740 Ventura, CA 93009

3. Request: The Planning Division requests that your Board review this staff report and its attachments and adopt RRB20-001.

4. Decision-Making Authority: The role of the RRB in this process as set

forth in Section 81004 (f) of the Ordinance is to “adopt, promulgate, amend, and rescind administrative rules to effectuate the purposes and policies” of the Ordinance.

5. Project Site Location: Countywide, at mobile home parks within unincorporated Ventura County that are subject to the Ordinance.

6. History: The Ordinance was adopted by the Board of Supervisors on February 15, 1983. The Ordinance established the RRB, which holds hearings on issues related to mobile home park rent stabilization and reviews discretionary rent increases for mobile home spaces that are subject to the Ordinance within unincorporated Ventura County.

Since the adoption of the Ordinance, the RRB has adopted resolutions to establish administrative rules that clarify and effectuate the purposes and policies of the Ordinance. Many of these resolutions were adopted by the

Item 5, Staff Report and Recommendations

Meeting of August 19, 2020

Mobile Home Park Rent Review Board

County of Ventura • Resource Management Agency • Planning Division 800 S. Victoria Avenue, Ventura, CA 93009-1740 • (805) 654-5042 • vcrma.org/divisions/planning

Ventura County Mobile Home Park Rent Review Board Staff Report

August 19, 2020 Page 2 of 4

RRB in the 1980s and 1990s. On May 6, 2014, the Board of Supervisors approved and adopted amendments to the Ordinance, which became effective on June 5, 2014.

7. Background of Proposed Resolution No. RRB20-001: The Ordinance was enacted for two purposes: (1) “to protect the owners of mobile home dwelling units from unreasonable rent increases, while [(2)] at the same time recognizing the need of park owners to receive a fair return on their property and rent income sufficient to cover increases in the cost of repairs, maintenance, insurance, employee services, additional amenities, and other costs of operation.” (Ordinance, § 81000). Section 81005 (g) of the Ordinance provides the method for how space rents are calculated when previously exempted spaces are no longer exempt. When Section 81005 (g) applies, the allowable space rent increase is consistent with the standard allowable rent increases under the Ordinance, as opposed to an increase equivalent to higher market rates. Section 81005 (g) provides, in relevant part: “Mobile home spaces of coaches owned by the park owner on those spaces that were at any time subject to rent control under the terms of the Ordinance, but that thereafter were determined to be exempt from rent control for any period of time because of purchase by the park owner, are thereafter subject to rent control whenever the facts supporting the prior finding of exemption no longer are in effect; and at such time as they re-enter rent control, they re-enter at the same level of rent applicable at the initial point in time when the exemption was determined to be in effect for such spaces plus any and all adjustments to rent that would have applied had these spaces never been entitled to an exemption.” At the May 20, 2020 public meeting of the RRB, Staff requested direction from your Board to establish a resolution that clarifies the circumstances under which Section 81005 (g) applies. Absent the resolution, Section 81005 (g) may be interpreted in a manner inconsistent with the two-fold purpose of the Ordinance. For example, a mobile home space had been previously exempt from rent control because the space had been used as a storage space pursuant to an agreement between two private parties. Upon termination of that private agreement, the park owner sought to rent the now non-exempt space at market rate instead of pursuant to the calculus provided in Section 81005 (g). In support of this request, the park owner pointed to the language of Section 81005 (g), which expressly provides for application of the re-entry calculation when spaces leave rent control "because of purchase by the park owner." Because Section 81005



(g) is silent on any other circumstances for application of Section 81005 (g), Staff approved the park owner’s request. While such a result is arguably consistent with the ambiguous language of the Ordinance, the market-rate rent increase is inconsistent with the Ordinance’s purpose of protecting against unreasonable rent increases. In contrast, the proposed RRB20-001 would have allowed a modest increase in rent in accordance with re-entry calculation at Section 81005 (g) in the example provided, while at the same time protecting against an unreasonable rent increase.

At the May 20, 2020 meeting of the RRB, Staff requested your Board’s interpretation of Section 81005 (g) with respect to the circumstances that appropriately require application of the rent control re-entry calculation, and whether the phrase “because of the purchase by the park owner” was meant to be the exclusive circumstance under which Section 81005 (g) could apply. If not, Staff requested your Board direct Staff to clarify Section 81005 (g) by resolution in order to effectuate the purposes of the Ordinance. After deliberation, your Board directed Staff to clarify that the rent control re-calculation identified in Section 81005 (g) will apply to mobile home spaces that were previously exempt from rent control and which re-enter a residential rental situation for reasons not specifically delineated in the Section consistent with the two-fold purpose of the Ordinance. Further, your Board was in favor of the direction given to Staff to memorialize this interpretation in the form of a proposed resolution.

8. Summary of Proposed RRB Resolution No. RRB20-001: The proposed Resolution No. RRB20-001 memorializes the direction provided to Staff to apply the rent control re-entry calculation identified in Section 81005 (g) to mobile home spaces that were previously exempt from rent control and which re-enter a residential rental situation for any reason not expressly delineated in the Ordinance, except as otherwise permitted or required according to state or federal law. The proposed resolution is attached as Exhibit 2.

B. MOBILE HOME PARK RENT REVIEW BOARD HEARING NOTICE AND

PUBLIC COMMENTS: The Planning Division provided public notice regarding this Board hearing in accordance with the Government Code §54954.2 (a)(1). As of the date of this staff report, Staff have not received any public comments on this matter.

C. RECOMMENDED ACTIONS:



Based upon the preceding analysis and information provided, Planning Division Staff recommend that the RRB take the following actions:

1. CERTIFY that your Board has reviewed and considered the Mobile Home

Park Rent Review Board staff report and all exhibits thereto, and has considered all comments received during the public comment process;

2. FIND based on the substantial evidence presented in this staff report, and the entire record, that the proposed Resolution No. RRB20-001 (Exhibit 2) is in the public interest;

3. ADOPT Resolution No. RRB20-001 (Exhibit 2); and

4. SPECIFY the Planning Division at 800 S. Victoria Avenue, Ventura, CA 93009 as the location and custodian of the documents and materials that constitute the record of proceedings upon which this decision is based.

If you have any questions concerning the information presented above, please contact Dillan Murray at [email protected] or (805) 654-5042. Prepared by: Reviewed by: Dillan Murray, Assistant Planner Denice Thomas, AICP, Manager Planning Programs Section Planning Programs Section (805) 654-5042 (805) 654-2685 EXHIBITS:

Exhibit 1 – Mobile Home Park Rent Control Ordinance No. 4462 Exhibit 2 – Proposed Resolution No. RRB20-001


ORDINANCE NO. 41p AN ORDINANCE OF THE VENTURA COUNTY BOARD OF SUPERVISORS

AMENDING DIVISION 8, BY ADDING CHAPTER 10 TO THE VENTURA COUNTY ORDINANCE CODE,

DEALING WITH MOBILE HOME PARK RENT CONTROL

The Board of Supervisors of the County of Ventura ordains as follows:

Ordinance No. 4366 is hereby repealed and the following provisions are hereby adopted:

Sec. 81000 — Purpose and intent

There is presently within the unincorporated area of the County a shortage of spaces for the location of mobile homes, trailers, and other mobile dwelling units. Because of this shortage, there is a low vacancy rate and rents have been for several years, and are presently, rising rapidly and causing concern among a substantial number of County residents. Because of the high cost of moving these mobile dwelling units, potential for damage resulting therefrom, the requirements relating to the installation of mobile dwelling units, including permits, landscaping, and site preparation, the lack of alternative home sites for mobile dwelling units and the substantial investment of owners in such mobile dwelling units, a virtual monopoly exists in the rental of mobile dwelling unit park spaces, creating a situation where park owners have unbridled discretion and ability to exploit park tenants. For these reasons, among others, the Board of Supervisors finds and declares it necessary to protect the owners of mobile dwelling units from unreasonable rent increases, while at the same time recognizing the need of park owners to receive a fair return on their property and rent income sufficient to cover increases in the cost of repairs, maintenance, insurance, employee services, additional amenities, and other costs of operation.

Sec. 81001—Definitions

"Board" or "Mobile Home Park Rent Review Board" or "MHPRRB". The Mobile Home Park Rent Review Board established by this Ordinance.

"Capital Improvements". 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 improvement in accordance with the Internal Revenue Code and regulations issued pursuant thereto.

"Completely New Capital Improvements". Those improvements which are entirely new in the mobile home park. Examples include a new swimming pool, golf green, electric security gate, etc. Not included are additions, replacement, upgrades, modernization, repairs or modifications of existing features or facilities.

"Housing Services". Services provided by the park owner related to the use of occupancy of a mobile dwelling unit space, including, but not limited to, water and

Exhibit 1 – Mobile Home Park Rent Control Ordinance No. 4462

1

sewer, natural gas, electricity, refuse removal, management and administration (including employee salaries and fringe benefits), maintenance and repairs, supplies, advertising, recreation facilities, laundry facilities, parking, security services, insurance, property taxes, other governmental assessments, and other costs reasonably attributable to the operation of the park. The term "housing services" shall not include legal fees or mortgage payments, whether for principal, interest, or both.

"Mobile Dwelling Unit". A dwelling unit designed for human habitation which may be towed by another vehicle or which is self-contained and self-powered, including mobile homes, trailers, and recreational vehicles.

"Mobile Home". A structure with dimensions larger than eight (8) feet by forty (40) feet or a size larger than three hundred twenty (320) square feet designed for human habitation, transported over streets and highways to a permanent occupancy site, and installed on the site either with or without a permanent foundation.

"Mobile Home Park". An area of land having two or more spaces on which are located mobile homes, trailers, or other mobile dwelling units used as residences.

"Mobile Home Park Owner" or "Owner". The owner, lessor, operator or manager of a mobile home park in the unincorporated area of Ventura County.

"Mobile Home Tenant" or "Tenant". Any person entitled to occupy a mobile home, trailer, or other mobile dwelling unit which is located within a mobile home or trailer park in the unincorporated area of Ventura County.

"Park". An area of land where two or more spaces for mobile dwelling units are rented or leased out to tenants.

"Recreational Vehicle". A vehicle for human habitation, which is self-propelled or towed by a light-duty vehicle, in which the plumbing, heating, and electrical system contained therein, may be operated without connection to outside utilities. Recreational vehicles do not fall within the definition of mobile homes.

"Social Security Cost of Living Adjustment". This is a rent adjustment based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), United States City Average, as determined by the United States Bureau of Labor Statistics, Department of Labor. The Consumer Price Index is a measure of the average change in prices over time in a fixed market basket of goods and services.

"Space Rent". The consideration, including any security deposits, bonuses, benefits, or gratuities demanded or received in connection with the use and occupancy of a space in a mobile home or trailer park, or for housing services provided, but exclusive of any amount paid for the use of a mobile dwelling unit, or utility charges or trash charges which are billed to units separately whether or not the units are individually metered.


2

"Space rent" does not include reasonable user fees for services actually rendered to some, but not all, of the tenants of a park.

"Trailer". A structure with dimensions of eight (8) feet by forty (40) feet or less or a size of three hundred twenty (320) square feet or less designed to be drawn by a motor vehicle and to be used for human habitation or for carrying persons and property, including a trailer coach or house trailer.

"Trailer Park". An area of land where two or more trailer spaces are rented or leased out for trailers.

"Trailer Park Owner". The owner, lessor, operator, or manager of a trailer park in the unincorporated area of the County.

"Trailer Park Tenant". Any person entitled to occupy a trailer which is located within a trailer park in the unincorporated area of the County.

"Utility Separation". The separation from the Space Rent of utility charges (water, sewer, electricity, trash, gas).

"Violation". Failure to conform to any provision of this Ordinance.

"Violator". Any person, firm, or corporation who violates a provision of this Ordinance.

Sec. 81002 — Exemptions

(a) Mobile home park spaces rented for non-residential uses.

(b) Mobile home or trailer parks, the construction of which began after September 1, 1982; provided, however, that additional spaces created by the expansion of existing parks are not hereby exempted from the provisions of this Ordinance. For the purposes of this section, "construction" shall mean the erection of structures.

(c) Mobile home or trailer parks managed or operated by the United States Government, the State of California, or the County of Ventura.

(d) Tenancies for which any Federal or State law or regulation specifically prohibits rent regulations.

(e) Tenancies covered by leases or contracts which provide for more than a 12 month tenancy, but only for the duration of such lease or contract. Upon the expiration or other termination of any such lease or contract, this Ordinance shall immediately be applicable to the tenancy.

(f) Parks which sell all spaces or lots for factory built or manufactured housing.


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(g) Those spaces in a mobile home park which provides condominium ownership, provided the owner of the mobile dwelling unit is also the owner of the lot or space on which the mobile home dwelling unit is located.

(h) Those sections of existing parks which have an approved permit modification identifying a separate area with reduced size spaces specifically designated for travel trailers provided the modification was approved prior to the effective date of this Ordinance.

Sec. 81003 — Mobile Home Park Rent Review Board

(a) There is hereby established a Mobile Home Park Rent Review Board consisting of five (5) members who shall be appointed by, and serve at the pleasure of, the Board of Supervisors.

(b) The five (5) members of the Board shall be persons who are neither connected with the real estate or rental housing industry for their personal gain nor tenants with any direct or indirect financial interest (as defined by State law) in any mobile home or mobile home park. Said members shall file a declaration to this effect with the County.

(c) Board members may be compensated for their services and may receive reimbursement as provided by the Board of Supervisors for traveling and other expenses incurred while on official duty.

(d) Terms of Board members shall be three (3) years.

Sec. 81004 — Powers and Duties of the Board

Within the limitations provided by law, the Board shall have the following power and duties:

(a) To meet from time-to-time as required by the County staff or upon the filing of a rent increase request and to utilize the County offices and facilities as needed.

(b) To receive, investigate, hold hearings on, and pass upon the issues relating to mobile home park rent stabilization as set forth in this Ordinance.

(c) To make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary to carry out its duties.

(d) To adjust maximum rents either upward or downward upon completion of its hearings and investigations.


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(e) To render a tri-annual comprehensive written report to the Board of Supervisors concerning its activities, holdings, actions, results of hearings, and all other matters pertinent to this Ordinance which may be of interest to the Board of Supervisors.

(f) To adopt, promulgate, amend, and rescind administrative rules to effectuate the purpose and policies of this Ordinance.

Sec. 81005 — Legality of Increases and Ministerial Social Security Cost of Living Adjustment Increase

(a) Unless specifically exempted by this Ordinance, on and after September 1, 1982, no increase in space rents for any mobile dwelling unit space located in any mobile home parks or trailer parks or mobile home parks containing mobile dwelling units which allow for condominium ownership shall be effective unless approved as set forth in this Ordinance. Additionally, on or after March 7, 1997, no permanent or extended reduction of significant housing services shall be permitted without a corresponding reduction in the amount of space rent.

(b) A ministerial Social Security Cost of Living Adjustment space rent increase not less than 2%, nor more than 8% shall be granted if:

(1) The proposed increase is to become effective no sooner than one (1) year from the date the last increase was approved as required by this Ordinance and became effective at the particular park; the applicant cannot include a request on a space which has had an increase since the last application pursuant to the vacancy decontrol provisions of this Ordinance.

(2) The park owner files:

a) A schedule of existing and proposed rents for each affected space;

b) Proof that he has provided copies of said schedule to the tenants 90 days prior to the rent increase effective date;

c) Written notification of their right to file complaints with County staff;

(3) The park owner shall file the schedule of existing and proposed rents and other documents no less than forty-five days prior to the effective date of increase.

(c) Special Limitations on space Rent Increases Upon Sale of Coaches. The Board finds that restrictions on space rent increases at the time of the sale of the coaches are necessary to provide reasonable rent to incoming tenants and also to deter the use of the monopoly power described in Section 81000 (Purpose and


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Intent) of this Ordinance to force the sale of coaches, to either new tenants or to the park owners themselves, at unreasonably low prices, or to force the abandonment of coaches in place. Therefore, the rent for a space occupied by a mobile home dwelling unit which has changed ownership may be increased no more than once every four years no more than fifteen percent (15%) of the average of the existing space rent of the affected spaces or seventy-two dollars ($72.00), whichever is less, effective upon the change of ownership subject to the following conditions:

(1) A mobile home dwelling unit shall be deemed to have changed ownership when an existing tenant transfers all of his or her right, title and interest in it, except that it shall be deemed not to have changed ownership when either (1) an existing tenant acquires a replacement mobile home dwelling unit and locates the replacement on, and continues to occupy, the space on which the replaced unit had been located or (2) when there is a transfer of all right, title and interest in the mobile home dwelling unit by a tenant to any joint tenant or family relative by gift, devise or operation of law.

(2) Within fifteen (15) days after receiving a written request by certified or registered mail, or personal delivery, the park owner, or his designated agency, shall provide to the tenant requesting it a written commitment stating the exact amount of the space rent to be effective upon the change of ownership of the mobile home dwelling unit in the space occupied by the tenant requesting the written commitment. This written commitment shall be effective for six (6) months from the date it is received by the tenant. The park owner shall post in a prominent place in the park where other notices are customarily posted the name and address of the individual to whom such request for a written commitment is to be directed.

(3) In setting the rents to be effective upon the change of ownership the park owner shall not discriminate on any basis prohibited by California Civil Code Section 51 et seq. or discriminate on some retaliatory or punitive motive, or on any other basis prohibited by law. A tenant shall have the right to petition the Mobile Home Park Rent Review Board to have a hearing concerning such discrimination. The tenant shall have the initial burden of presenting evidence tending to show the existence of such unlawful discrimination, which the park owner shall have the opportunity to rebut. If the Board finds, based on a preponderance of the evidence, that such illegal discrimination has occurred, the Board shall have the authority to reduce the proposed rent increase by that amount it finds is based on the unlawful discrimination.

(d) In any application for rent increase under this Ordinance, the park owner shall indicate which, if any, of the mobile home spaces are covered by leases or contracts which provide for more than a month-to-month tenancy, together with


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the expiration date of each such lease or contract. Any rent increase approved under this Ordinance shall not be applicable to spaces covered by such leases or contracts; during the terms of such leases or contracts; provided, however, that in acting upon any application for rental increase hereunder, the rents shall be set in accordance with this Ordinance for spaces covered by leases or contracts which shall become applicable to such spaces upon the expiration of each such lease or contract.

(e) A Utility Separation can be granted at any time during the year. The park owner shall request the Board in writing to hear the matter and the park owner shall notice the tenants at least 90 days in advance of the utility separation effective date. The utility separation shall not become effective unless approved by the Board. The park owner must provide the most recent utility bill(s) and any other information which will help the Board make an accurate decision on the amount of the space rent reduction.

(f) (1) In addition to the usual case of an increase in the dollar amount of space rent, on or after March 7, 1997, a rent increase may occur when significant housing services are permanently reduced or disrupted for an unreasonable length of time without a corresponding reduction in the dollar amount of the space rent. It is the specific intent of this Ordinance to prohibit such indirect rent increases.

(2) A permanent or extended reduction of significant housing services may be found to occur when specifically enumerated significant housing services either have been permanently eliminated or are not provided for an unreasonable length of time considering the nature of the service and the reasons for its disruption.

(3) If a majority of affected tenants concur in writing that such a significant reduction in services has occurred, and they are unable to satisfactorily resolve the dispute with park management, a representative group of tenants may petition the Ventura County Mobile Home Park Rent Review Board for a finding of the reduction in services. Prior to presenting such a petition, the tenant group must demonstrate that they have attempted in good faith to resolve the dispute through the mediation process, and that the park management has either (1) refused to participate in the mediation process or (2) the attempt to mediate the matter with both parties participating in good faith, was unsuccessful. No rent increase application shall be processed until the reduction in services dispute is resolved.

(4) Pursuant to the current Board of Supervisors' —adopted Planning Division Fee Schedule and Section 81017 (Penalties) of this Ordinance, when the Mobile Home Park Rent Review Board, following a Section 81009 public hearing, has determined that the affected tenants' Service Reduction Application/petition is justified and that a significant reduction in services


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occurred pursuant to Section 81011(c), the subject park owner(s) shall be responsible for all enforcement costs incurred by the County in processing the Service Reduction Application/petition (pursuant to the adopted contract hourly rate), which may include, but are not limited to, inspections, public reports, hearings, staff reports, and communications with the park owner and affected tenants. This is consistent with the Board of Supervisors policy of full cost recovery for all programs and the general legal principle that regulatory fees be reasonably related to the fee payer's burden on the regulatory system, including the recovery of costs associated with enforcement activities.

(5) Nothing in this Section shall be construed to affect the rights or obligations set forth in California Civil code sections 798.84, et. seq.

(g) Mobile home spaces of coaches owned by the park owner on those spaces that were at any time subject to rent control under the terms of the Ordinance, but that thereafter were determined to be exempt from rent control for any period of time because of purchase by the park owner, are thereafter subject to rent control whenever the facts supporting the prior finding of exemption no longer are in effect; and at such time as they re-enter rent control, they re-enter at the same level of rent applicable at the initial point in time when the exemption was determined to be in effect for such spaces plus any and all adjustments to rent that would have applied had these spaces never been entitled to an exemption.

Sec. 81006 — Other Rent Adjustments

(a) Completely New Capital Improvements: Space rent may not be increased to cover completely new capital improvements as defined in Section 81001 herein, unless written consent of a majority of affected spaces in the park is obtained prior to making the expenditure. Tenant approval is not necessary, however, if such new capital improvements are required by law.

(1) The provisions of this section shall apply equally to Section 81005 and Section 81007 applications.

(2) An application for a special rent increase based on the cost of a completely new capital improvement may be filed not less than 120 days before the effective rent increase date. Section 81005 applications including a completely new capital improvement, shall be approved by staff when the definition of a capital improvement set forth in this Ordinance and any related Board procedures are satisfied. Any special rent increase granted under this section shall be amortized over the useful life of the improvement, in line with IRS rules and Board guidelines, and apportioned equally among the affected park spaces.


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(3) A special rent increase application must be filed in conjunction with a Section 81005 or Section 81007 application and shall be processed according to the requirements of Section 81011 of this Ordinance. After receipt of a completed application, written notice of the determination by the staff shall be mailed to the applicant and the affected tenants' representative within that time. Written notice that an application has been determined to be incomplete and the reasons for that determination shall be given to the applicant within 30 days of receipt of the application. A written determination to grant a requested special rent increase or a modified special rent increase shall specify the duration and amount of the monthly rent adjustment granted.

(4) Whenever an application is submitted, all affected tenants are entitled to copies of all documents in support of such application and they shall be furnished to such persons by the park owner upon request and upon payment by the tenant of reasonable copying fees comparable to competitive rates available locally.

(5) Increases authorized and approved under this section shall be effective as of the rent increase anniversary date, but not earlier than 90 days after the park owner gives affected tenants notice of the proposed increase pursuant to the provisions of the State of California Mobilehome Residency law.

(6) Reasonable market rate interest on any debt incurred to fund completely new capital improvements shall be allowed.

(7) A park owner or tenant appealing a decision of the staff pursuant to the provisions of this subsection must file a written notice of appeal not later than 20 days after the receipt of the notice of said decision to the park owner. The notice of appeal must specify the decision appealed from and the grounds for the appeal.

(8) In computing rent increases, the staff shall not include in the current base rent any amounts that represent approved completely new capital improvement costs.

Sec. 81007 — Discretionary Increases

(a) A park owner may apply for a discretionary rent increase in cases where he contends that the facts and circumstances of this particular case warrant such an increase. A park owner shall submit with the Rent Schedule a request for such discretionary increase, together with supporting documentation, no less than seventy-five (75) days prior to the effective date of the proposed increase. The notice and proof of service requirements set forth below shall apply to such request. The park owner shall also deposit the appropriate processing fee listed


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in the current Board of Supervisors' adopted Planning Division Fee Schedule to cover costs of processing the request and conducting any hearing or meeting held to consider the request. Upon conclusion of such meeting or hearing, the balance of the deposited processing fee, if any, shall be refunded to the park owner. If additional expenses are incurred, the park owner shall be billed for, and shall be responsible for, payment of such additional expenses.

(b) The Board shall set a hearing on any request complying with the requirements of subdivision (a) above no sooner than ten (10) days and no late than seventy-five (75) days after receipt of the request and proof of service. The Board shall notify the park owner and tenants, in writing, of the time and place set for the hearing. No hearing or any part thereof may be continued beyond thirty (30) days after the initial hearing date without the park owner's consent. If the Board approves an increase as requested, or lower than requested, the same shall take effect as noticed by the park owner or as the Board may otherwise direct.

(c) Procedures — The park owner shall also deposit the appropriate processing fee listed in the current Board of Supervisors' adopted Planning Division Fee Schedule to cover costs of processing the proposed Rent Schedule and/or utility separation applications and conducting any hearing or meeting held to consider the proposed Rent Schedule. Upon conclusion of such meeting or hearing, the balance of the deposited processing fees, if any, shall be refunded to the park owner. If additional expenses are incurred, the park owner shall be billed for, and shall be responsible for, payment of such additional expenses.

The park owner shall serve affected tenants, either personally or by mail, with written notice of the proposed increase, in accordance with State law, and with written notice that a request for approval of same is being filed with the Board. The park owner shall file proof of such service with the Board concurrent with the filing of the rent increase requests. Copies of the Rent Schedule, request for increase, and supporting documentation shall be available free of charge to any tenant requesting same at the park owner's office in the affected park.

Sec. 81008 — Administrative Fees

The Board of Supervisors finds that this Ordinance protects the owners of mobile dwelling units from unreasonable rent increases and recognizes the need of park owners for a fair return on their property and a sufficient rental income. The Ordinance services a limited segment of the public, the tenants and park owners. Therefore, that service is not generally applicable to the public at large. The tenants benefit from the Ordinance provisions, but the park owners also benefit. For instance, the administration of the Ordinance provides a certain level of stability for the park owners in that they know they are annually eligible for a reasonable rent increase and that there is a fair process to resolve tenant concern with rent increases. Additionally, in recent years there have been amendments made to the Ordinance and procedures that have allowed greater rental income over and above the annually permitted increases and, or


10

reduced costs to the park owners, i.e., vacancy decontrol, utility separations, amortization extensions and sliding scale application fees. Also, this fee accompanies the elimination of the Section 81005 application fee for the park owners. Furthermore, during the administration of the Ordinance it is often necessary for staff to work with tenants and park owners to assist in resolving issues of concern to both. This has benefited the park owners as well as the tenants.

The Board of Supervisors finds that the County incurs certain costs administering this Ordinance in the interests described in Section 810001 (Purpose and Intent), and as noted above. The Board concludes that a fee that bears a reasonable relationship to the services provided is necessary.

(a) Program Administration Fee: The total of said fee is in the current Board of Supervisors' adopted Planning Division Fee Schedule.

(b) The percent of said fee paid by the park owner and the affected tenants shall be proportionate to the services provided to each as determined by the standards set forth in the Board of Supervisors' adopted Planning Division Fee Schedule. The tenant portion of the fee shall be collected by the park owner in twelve (12) equal monthly installments which may be included with the monthly statement of rent due, but must be separately itemized.

(c) This fee shall not be included in the rent base when calculating ministerial rent increases, but may be used in enumerating housing service costs. The fee for the entire park must be submitted with the annual rent increase request as part of the annual rent increase application, or in the event there is no application, the fee shall be paid on the month and day of the most recent application's effective date.

(d) The Planning Director shall report to the Board of Supervisors triennially with a recommendation regarding the amount necessary to recover the costs of administering this Ordinance, and the proportion of said fee levied on the tenants and the park owners based on the relative service provided to each. A notification of the hearing on any proposed fee changes shall be mailed at least 10 days in advance to each park owner and to the manager of each park for public posting.

Sec. 81009 — Conduct of the Hearing

(a) All meetings and hearings conducted by the Board shall be open to the public.

(b) All parties to a hearing may have assistance from an attorney or such other person as may be designated by said parties in presenting evidence or in setting forth by argument their position. All witnesses shall be sworn in and all testimony shall be under penalty of perjury.


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(c) In the event that either the park owner or the tenant(s) should fail to appear at the hearing at the specified time and place, the Board may hear and review such evidence as may be presented and make such decisions as if both parties had been present.

(d) All meetings and hearings shall be tape recorded. Tapes shall be preserved for six months, or longer if requested by any party affected by the meeting or hearing.

Sec. 81010 — Standards of Review

(a) In evaluating a rent increase proposed under Section 81007 by the park owner, the Board shall consider, along with all relevant factors, changes in costs to the park owner attributable to increases or decreases in master land and/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, upgrading and addition of amenities or services, net operating income, and the level of rent necessary to permit a just and reasonable return on the park owner's property.

(b) The Board shall adopt guidelines for discretionary rent increases which will assure a just and reasonable return to park owners of parks subject to this Ordinance. Said guidelines shall include, but not be limited to, those items listed in Section 81010(a), in addition to procedures for determining eligibility for discretionary rent increases and evaluating such increases.

Sec. 81011 — Decisions

(a) Staff Decisions: Decisions by staff shall constitute a written finding of application completeness and a resolution and shall be rendered within 30 calendar days of receipt.

(b) All other Decisions: The Board shall make a final decision no later than ten (10) days after the conclusion of its hearing. The Board's decision shall be based on the preponderance of the evidence submitted at the hearing. All parties to the hearing shall be advised of the Board's decision and given a copy of the findings upon which the decision is based.

(c) Pursuant to its findings, the Board may: (1) permit the requested increase to become effective, in whole or in part; (2) deny the increase; or (3) if circumstances justify, order reduction in rent to a rate(s) determined by the Board.

(d) If the Board finds that an increase which went into effect, or any portion thereof, is not justified or authorized by this Ordinance, the park owner shall refund the


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amount found to be unjustified or unauthorized to the tenant(s) within thirty (30) days after the decision of the Board is announced.

(e) If the Board finds that a proposed increase, or any portion thereof, which was previously inoperative is justified, the tenant(s) shall pay the amount found justified to the park owner within thirty (30) days after the decision of the Board is announced.

(f) The conclusions and findings of staff of Section 81005 ministerial annual rent increases and all other decisions by the Board shall be final and there shall be no right of appeal to the Board of Supervisors.

Sec. 81012 — Tenant's Right of Refusal

A tenant may refuse to pay any increase in rent which is in violation of this Ordinance, provided that staff or the Board has either not reached its decision or has found the increase violates the provisions of this Ordinance. Such refusal to pay shall be a defense in any action brought to recover possession of a mobile home space or to collect the rent increase.

Sec. 81013 — Retaliatory Eviction

Notwithstanding Section 81011 above, in any action brought to recover possession of a mobile home space, the court may consider as grounds for denial any violation of any provision of this Ordinance. Further, the determination that the action was brought in retaliation for the exercise of any rights conferred by this Ordinance shall be grounds for denial. Any action brought within three (3) months of the determination of a request for rent increase, petition, complaint filed by the tenant, or public testimony of a tenant at a public hearing pursuant to this Ordinance shall be presumed to be retaliatory; this presumption affects the burden of proof and is rebuttable by the park owner.

Sec. 81014 — Other Retaliation

(a) It shall be unlawful for a landlord to retaliate against a tenant or tenants for organizing, petitioning government for rent relief, providing public testimony at a hearing, or exercising any right granted under this Ordinance.

(b) It shall also be unlawful for a landlord to engage in any form of harassment that causes the tenants to quit the premises.

(c) In an action by or against a tenant, evidence of the assertion or exercise by the tenant of rights under this Ordinance or other activity in furtherance of tenant's rights and organizations within three months of 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 tenant's assertion or exercise of rights under this Ordinance.


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Sec. 81015 — Agreements

Nothing in this Chapter shall operate to restrict the right of a tenant and the management to enter into an agreement in accordance with California Civil Code, §798.17. Pursuant to California Civil Code, §798.17(c) the tenant shall have the option to reject the offered rental agreement and accept a rental agreement for a term of twelve (12) months or less, including a month to month agreement. No park owner may require, directly or indirectly, that any tenant or prospective tenant sign a lease or rental agreement with a term in excess of twelve (12) months or that provides that it shall be exempt from local rent control as a condition of residency in the park, and no park owner may deny a tenancy to a prospective purchaser of a mobile home in the park on the ground that the prospective purchaser will not sign such a lease or rental agreement.

Sec. 81016 — Civil Remedies

If any park owner demands, accepts, receives, or retains any payment of rent in excess of the maximum lawful space rent, as determined under this Ordinance, the tenants in such park affected by such violation, individually or by class action, may seek relief in a court of appropriate jurisdiction for injunctive relief and/or damages. In any such court proceeding, the prevailing party shall be awarded his reasonable attorney's fees and the court, in its discretion and in addition to any other relief granted or damages awarded, shall be empowered to award to each affected tenant civil damages in the sum of not more than three times the total monthly space rent demanded by the park owner from each such tenant.

Sec. 81017 — Enforcement Costs and Penalties

(a) Any person, firm, or corporation who violates any of the provisions of this Ordinance shall be deemed guilty of a misdemeanor and such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of the provisions of this Ordinance is committed, continued, or permitted, and upon conviction of any such violation, such person shall be punishable by a fine of not more than $1,000.00 (one thousand dollars), or by imprisonment for not more than six (6) months, or both such fine and imprisonment.

(b) Additionally, the County may impose fees and charges on persons as established by resolution adopted by the Board of Supervisors to cover the full costs incurred by the County or its contractors for enforcing activities related to violations of this Ordinance. When the Mobile Home Park Rent Review Board has determined that any person, firm, or corporation has violated any of the provisions of this Ordinance, the violator is responsible for all enforcement costs incurred by the County in enforcing applicable terms and conditions of this Ordinance.


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eputy Clerk of the Board

Sec. 81018 — Procedural Irregularities

Formal rules of evidence or procedure which must be followed in court shall not apply to staff or Board proceedings, except to the extent that staff or the Board shall determine. No action hereunder shall be held void or invalid or be set aside by any court on the ground of the improper admission or rejection of evidence, or by reason of any error, irregularity, informality, neglect, or omission (hereinafter called "error") as to any matter pertaining to applications, notices, findings, records, hearing, reports, recommendations, or any matters or procedure whatever, including but not limited to those included in this section, unless after an examination of the entire case, including the evidence, the court shall be of the opinion that the error complained of was prejudicial, and that by reason of such error the party complaining or appealing sustained and suffered substantial injury, and that a different result would have been probable if such an error had not occurred or existed. There shall be no presumption that error is prejudicial or that injury was done if error is shown.

Sec. 81019 — Notice to New and Prospective Tenants

Prior to or at the time of agreeing to rent space to a new tenant in a park, the park owner shall provide each new tenant or prospective tenant with a copy of this Ordinance, as currently in force.

Sec. 81020 — Severability

If any provisions or clause of this Ordinance or the application thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by a final judgment of any court of competent jurisdiction, such invalidity shall not affect other provisions or clauses or applications thereof which can be implemented without the invalid provision or clause or application, and to this end, the provisions and clauses of this Ordinance are declared to be severable.

Passed and adopted this Zto day of ifl ,2014, by the following vote:

Supervisors 6074, li z , w A / , a-rtd dred61

IdaLU -

CI-AIR, BOARD OF SUPERVISORS

AYES:

NOES:

ABSENT:

ATTEST:

MICHAEL MICHAEL POWERS Clerk of e Board of Supervisors County Ven ra, StY e o alifornia

By:


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Exhibit 2 – Resolution No. RRB20-001

Page 1 of 2

Resolution No. RRB20-001

A Resolution of the Ventura County Mobile Home Park Rent Review Board Clarifying the Rent Control Re-Entry Calculation Outlined in Section 81005 (g) of the Ventura

County Ordinance Code Dealing with Mobile Home Park Rent Control Ordinance No. 4462 (Ordinance)

WHEREAS, the Purpose and Intent of the Ordinance (Sec. 81000) establishes that

there exists “a shortage of spaces for the location of mobile homes, trailers, and other mobile dwelling units” within the unincorporated area of the County, resulting in rents “…rising rapidly and causing concern among a substantial number of County residents. Because of the high cost of moving these mobile dwelling units, potential for damage resulting therefrom, the requirements relating to the installation of mobile dwelling units, including permits, landscaping, and site preparation, the lack of alternative home sites for mobile dwelling units and the substantial investment of owners in such mobile dwelling units, a virtual monopoly exists in the rental of mobile dwelling unit park spaces, creating a situation where park owners have unbridled discretion and ability to exploit park tenants”; and,

WHEREAS, the Purpose and Intent of the Ordinance (Sec. 81000) further

establishes that for the reasons stated previously, among others, “the Board of Supervisors finds and declares it necessary to protect the owners of mobile dwelling units from unreasonable rent increases, while at the same time recognizing the need of park owners to receive a fair return on their property and rent income sufficient to cover increases in the cost of repairs, maintenance, insurance, employee services, additional amenities, and other costs of operation”; and,

WHEREAS, Section 81005 (g) of the Ordinance provides that “Mobile home spaces of coaches owned by the park owner on those spaces that were at any time subject to rent control under the terms of the Ordinance, but that thereafter were determined to be exempt from rent control for any period of time because of purchase by the park owner, are thereafter subject to rent control whenever the facts supporting the prior finding of exemption no longer are in effect;...” and,

WHEREAS, Section 81005 (g) of the Ordinance further provides that at the time such spaces re-enter rent control, “they re-enter at the same level of rent applicable at the initial point in time when the exemption was determined to be in effect for such spaces plus any and all adjustments to rent that would have applied had these spaces never been entitled to an exemption”; and,

WHEREAS, it is the intent of the Mobile Home Park Rent Review Board to establish a consistent method of application of the rent control re-entry calculation outlined in Section 81005 (g) of the Ordinance that is consistent with the purposes and policies of the Ordinance.


Page 2 of 2

NOW, THEREFORE, BE IT RESOLVED that the rent control re-entry calculation outlined in Section 81005 (g) shall apply to all mobile home spaces that were previously exempt from rent control and that re-enter a residential rental situation, for any reason not expressly provided in the Ordinance, except as otherwise provided by state or federal law. Passed and adopted this 19th day of August 2020, by the following vote: AYES: ________________________________________________ NOES: ________________________________________________ ABSENT: ________________________________________________

_________________________ _____________

RRB Chair Date

Ventura County Mobile Home Park

Rent Review Board

Attest: ____________________ _____________

Dillan Murray Date

RRB Staff Administrator


1. Subject: Mobile Home Park Rent Review Board (“RRB” or “Board”) initiated proposed resolution to the Ventura County Ordinance Code Dealing with Mobile Home Park Rent Control, No. 4462 (“Ordinance”) (Exhibit 1), Resolution No. RRB20-002 (“RRB20-002”) (Exhibit 2). Section 81005 (g) of the Ordinance governs the method by which base rent shall be determined when calculating rent of a mobile home park space upon re-entry of that space to rent control. Section 81005 (g) is silent, however, as to whether the Section applies to mobile home spaces that have never been subject to rent control previously. RRB20-002 clarifies that the rent calculation method provided in Section 81005 (g) applies to non-exempt spaces that have not previously been subject to rent control consistent with purposes and policies of the Ordinance and to ensure the consistent implementation of it.


3. Request: The Planning Division requests that your Board review this staff report and its attachments and adopt RRB20-002.


forth in Section 81004 (f) of the Ordinance is to “adopt, promulgate, amend, and rescind administrative rules to effectuate the purposes and policies” of the Ordinance.


6. History: The Ordinance was adopted by the Board of Supervisors on February 15, 1983. The Ordinance established the RRB, which holds hearings on issues related to mobile home park rent stabilization and reviews discretionary rent increases for mobile home spaces that are subject to the Ordinance within unincorporated Ventura County.







Since the adoption of the Ordinance, the RRB has adopted resolutions to establish administrative rules to effectuate the purpose and policies of the Ordinance. Many of these resolutions were adopted by the RRB in the 1980s and 1990s. On May 6, 2014, the Board of Supervisors approved and adopted amendments to the Ordinance, which became effective on June 5, 2014.

7. Background of Proposed RRB Resolution No. RRB20-002: The Ordinance was enacted for two purposes: (1) “to protect the owners of mobile home dwelling units from unreasonable rent increases, while [(2)] at the same time recognizing the need of park owners to receive a fair return on their property and rent income sufficient to cover increases in the cost of repairs, maintenance, insurance, employee services, additional amenities, and other costs of operation.” (Ordinance, § 81000). Section 81005 (g) of the Ordinance provides the method for how rents are calculated for spaces “that were any time subject to rent control under the terms of the Ordinance, but that thereafter were determined to be exempt from rent control for any period of time. . . .[and] are thereafter subject to rent control . . . .” Section 81005 (g) is silent as to how rents shall be calculated for mobile home park spaces that were not previously subject to rent control. Absent clarification of the Ordinance in this regard, Section 81005 (g) may be interpreted as allowing such spaces to enter rent control at market rates. This possible result is inconsistent with the two-fold purpose of the Ordinance. At the May 20, 2020, public meeting of the RRB, Staff requested direction from your Board to establish guidelines for a consistent interpretation of Section 81005 (g) regarding how to calculate base rents for non-exempt spaces that are not expressly addressed in the Ordinance. At the meeting, Staff explained that neither the Ordinance nor any identified resolution of the RRB addresses how to calculate base-level rent, as outlined in Section 81005 (g), in instances wherein a base rent is not available due to a space never having been previously subject to rent control. When presented with this issue recently, Staff determined that the calculation method most consistent with the Ordinance was to utilize the earliest space rent average on file for the park and apply every sequential approved annual adjustment for the years when the space was exempt from rent control. Staff excluded any decontrols or potential market rate increases of other spaces in the park as those factors would tend to inflate the space rent average for the park over time. After deliberation at the May 20, 2020 meeting of your Board, your Board determined that the calculation method described above is consistent with



the purposes and policies of the Ordinance. Further, your Board favored memorializing this calculation method to determine rents for mobile home park spaces not previously subject to rent control in the form of a proposed resolution.

8. Summary of Proposed RRB Resolution No. RRB20-002: The proposed Resolution No. RRB20-002 memorializes the direction provided to Staff for instances wherein a base rent is not available because the space was not previously subject to rent control. RRB20-002 establishes that the rent shall be calculated by establishing the earliest space rent average on file for the park and then applying every sequential approved annual adjustment for the years when the space was exempt from rent control. The final resolution is attached as Exhibit 1.


PUBLIC COMMENTS: The Planning Division provided public notice regarding this RRB hearing in accordance with the Government Code §54954.2 (a)(1). As of the date of this staff report, Staff have not received any public comments on this matter.

C. RECOMMENDED ACTIONS: Based upon the preceding analysis and information provided, Planning Division Staff recommend that the RRB take the following actions:






If you have any questions concerning the information presented above, please contact Dillan Murray at [email protected] or (805) 654-5042.




Prepared by: Reviewed by: Dillan Murray, Assistant Planner Denice Thomas, AICP, Manager Planning Programs Section Planning Programs Section (805) 654-5042 (805) 654-2685 EXHIBITS:



Page 1 of 2


A Resolution of the Ventura County Mobile Home Park Rent Review Board Clarifying

How Staff Should Apply the Rent Control Re-Entry Calculation Outlined in Section 81005 (g) of the Ventura County Ordinance Code Dealing with Mobile Home Park Rent

Control Ordinance No. 4462 (Ordinance) When a Base Rent is Not Available

WHEREAS, the Purpose and Intent of the Ordinance (Sec. 81000) establishes that there exists “a shortage of spaces for the location of mobile homes, trailers, and other mobile dwelling units” within the unincorporated area of the County, resulting in rents “…rising rapidly and causing concern among a substantial number of County residents. Because of the high cost of moving these mobile dwelling units, potential for damage resulting therefrom, the requirements relating to the installation of mobile dwelling units, including permits, landscaping, and site preparation, the lack of alternative home sites for mobile dwelling units and the substantial investment of owners in such mobile dwelling units, a virtual monopoly exists in the rental of mobile dwelling unit park spaces, creating a situation where park owners have unbridled discretion and ability to exploit park tenants”; and,




WHEREAS, Section 81005 (g) of the Ordinance further provides that at the time such spaces re-enter rent control, “they re-enter at the same level of rent applicable at the initial point in time when the exemption was determined to be in effect for such spaces plus any and all adjustments to rent that would have applied had these spaces never been entitled to an exemption”;

WHEREAS, Planning Division Staff utilize the last year a space was subject to rent control as the “base rent” when calculating the rent control re-entry level, in accordance with the aforementioned provisions;


Page 2 of 2

WHEREAS, due to certain spaces never having been subject to rent control, not every space contains a known base rent for calculating rent control re-entry; and

WHEREAS, it is the role of the Mobile Home Park Rent Review Board to advance

the purpose and intent of the Ordinance, including in the application of the rent control re-entry calculation outlined in Section 81005 (g). NOW, THEREFORE, BE IT RESOLVED that in instances wherein a base rent is not available due to a space never having been previously subject to rent control, Staff shall utilize the earliest space rent average on file for the park and apply every sequential approved annual adjustment for the years when the space was exempt from rent control, excluding calculations that include space rents adjusted to market rate or space rents that were subject to decontrol. Passed and adopted this 19th day of August 2020, by the following vote: AYES: ________________________________________________ NOES: ________________________________________________ ABSENT: ________________________________________________

_________________________ _____________

RRB Chair Date


Rent Review Board

Attest: ____________________ _____________

Dillan Murray Date



1. Subject: Mobile Home Park Rent Review Board (“RRB” or “Board”) initiated proposed resolution to the Ventura County Ordinance Code Dealing with Mobile Home Rent Control, No. 4462 (“Ordinance”) (Exhibit 1), Resolution No. RRB20-003 (“RRB20-003”) (Exhibit 2). The purpose of RRB20-003 is to clarify that the space rent calculation method set forth in the Ordinance at Section 81005 (g) governs when calculating space rents for park-owned units that have been replaced by the park owner, consistent with Section 81000 “Purpose and Intent” of the Ordinance. In addition, RRB20-003 will effectuate the purposes and policies of the Ordinance while ensuring consistent implementation of it.


3. Request: The Planning Division requests that your Board review this staff report and its attachments and adopt Resolution No. RRB20-003.


forth in Section 81004 (f) of the Ordinance is to “adopt, promulgate, amend, and rescind administrative rules to effectuate the purpose and policies” of the Ordinance No. 4462.


6. History: The Ordinance was adopted by the Board of Supervisors on February 15, 1983. The Ordinance established the RRB, which holds hearings on issues related to mobile home park rent stabilization and reviews discretionary rent increases for mobile home spaces that are subject to this Ordinance within unincorporated Ventura County.

Since the adoption of the Ordinance, the RRB has adopted resolutions to establish administrative rules that clarify and effectuate the purposes and policies of the Ordinance. Many of these resolutions were adopted by the







RRB in the 1980s and 1990s. On May 6, 2014, the Board of Supervisors approved and adopted amendments to the Ordinance, which became effective on June 5, 2014.

7. Background of Proposed Resolution No. RRB20-001: The Ordinance was enacted for two purposes: (1) “to protect the owners of mobile home dwelling units from unreasonable rent increases, while [(2)] at the same time recognizing the need of park owners to receive a fair return on their property and rent income sufficient to cover increases in the cost of repairs, maintenance, insurance, employee services, additional amenities, and other costs of operation.” (Ordinance, § 81000). Section 81005 (g) of the Ordinance provides the method for how rents are calculated for spaces “that were any time subject to rent control under the terms of the Ordinance, but that thereafter were determined to be exempt from rent control for any period of time. . . .[and] are thereafter subject to rent control . . . .” Section 81005 (g) is silent as to how rents shall be calculated for mobile home park spaces with park-owned coaches that have been replaced and sold by the park owner. Absent clarification of the Ordinance in this regard, Section 81005 (g) may be interpreted as allowing such spaces to enter rent control at market rates or by whatever calculus that is agreed upon by the park owner and park resident. This possible result is inconsistent with the two-fold purpose of the Ordinance. At the May 20, 2020 public meeting of the RRB, Staff requested direction to establish administrative guidelines that would establish the method for calculating base rents in circumstances not expressly provided for in the Ordinance. At the meeting, Staff explained that a park owner had purchased a majority of units within the park with the intention of gradually replacing the units with new coaches over time, selling the coaches, and increasing space rents to market rate. The park owner advocated for the units to then enter rent control at a base rent equivalent to the market rate, instead of a base rent calculated as provided in Section 81005 (g). In other words, the park owner sought for these units to be exempt from rent control. As noted above, absent clarification of the Ordinance, this result is possible yet it is inconsistent with the purposes of the Ordinance. After deliberation, at the May 20, 2020 meeting of your Board, your Board determined that the Ordinance should not be interpreted to exempt from rent control a space that was the subject of a coach sale from the property owner to the space resident or prospective purchaser of the space. Further, your Board determined that the Ordinance should be interpreted to require that the space rent in such circumstances be calculated according to the method provided in Section 81005 (g). Finally, your Board directed Staff to



prepare a resolution clarifying that Section 81005 (g) should be the method of rent calculation in the circumstance described.

8. Summary of Proposed Resolution No. RRB20-003: The proposed

Resolution No. RRB20-003 memorializes the direction provided to Staff, and is consistent with the purposes of the policies of the Ordinance. RRB20-003 clarifies that the method for determining space rent identified in Section 81005 (g) applies to spaces that contain a unit that was purchased by the park owner and then sold to a new buyer. The final resolution is attached as Exhibit 1.


PUBLIC COMMENTS: The Planning Division provided public notice regarding this Board hearing in accordance with the Government Code §54954.2 (a)(1). As of the date of this staff report, Staff have not received any public comments on this matter.

C. RECOMMENDED ACTIONS: Based upon the preceding analysis and information provided, Planning Division Staff recommend that the RRB take the following actions:






If you have any questions concerning the information presented above, please contact Dillan Murray at [email protected] or (805) 654-5042.




Prepared by: Reviewed by: Dillan Murray, Assistant Planner Denice Thomas, AICP, Manager Planning Programs Section Planning Programs Section (805) 654-5042 (805) 654-2685 EXHIBITS:

Exhibit 1 – RRB Resolution No. RRB20-003


Page 1 of 2


A Resolution of the Ventura County Mobile Home Park Rent Review Board Clarifying How Staff Should Interpret Section 81000 “Purpose and Intent” of the Ventura County

Ordinance Code Dealing with Mobile Home Park Rent Control Ordinance No. 4462 (Ordinance) Concerning the Replacement of Park-Owned Units

WHEREAS, the Purpose and Intent of the Ordinance (Sec. 81000) establishes that

there exists “a shortage of spaces for the location of mobile homes, trailers, and other mobile dwelling units” within the unincorporated area of the County, resulting in rents “…rising rapidly and causing concern among a substantial number of County residents. Because of the high cost of moving these mobile dwelling units, potential for damage resulting therefrom, the requirements relating to the installation of mobile dwelling units, including permits, landscaping, and site preparation, the lack of alternative home sites for mobile dwelling units and the substantial investment of owners in such mobile dwelling units, a virtual monopoly exists in the rental of mobile dwelling unit park spaces, creating a situation where park owners have unbridled discretion and ability to exploit park tenants”; and,




WHEREAS, Section 81005 (g) of the Ordinance further provides that at the time such spaces re-enter rent control, “they re-enter at the same level of rent applicable at the initial point in time when the exemption was determined to be in effect for such spaces plus any and all adjustments to rent that would have applied had these spaces never been entitled to an exemption”;

WHEREAS, the Ordinance at Section 81005 (g) is silent as to how rents shall be calculated for mobile home park spaces with park-owned coaches that have been replaced and sold by the park owner; and,


Page 2 of 2

WHEREAS, it is the role of the Mobile Home Park Rent Review Board to advance the purpose and intent of the Ordinance, including in aforementioned instances; NOW, THEREFORE, BE IT RESOLVED that the method for determining space rent identified in Section 81005 (g) applies to spaces that contain a unit that was purchased by the park owner and then sold to a new buyer. Passed and adopted this 19th day of August 2020, by the following vote: AYES: ________________________________________________ NOES: ________________________________________________ ABSENT: ________________________________________________

_________________________ _____________

RRB Chair Date


Rent Review Board

Attest: ____________________ _____________

Dillan Murray Date


Documents

Ventura County Mobile Home Park Rent Review Board August ... · rent control a space that was the subject of a coach sale from the property owner to the space resident or prospective