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[4-39-217] Fair Return Rent Increases. <br /> <br />A. Fair Return. A Park Owner has the right to obtain a Rent Increase to maintain net operating <br />income (“MNOI”) equal to the Base Year net operating income adjusted by the percentage <br />increase in the CPI since the Base Year. It shall be presumed this standard provides a fair <br />return. Nothing in this Article shall preclude the Rent Review Officer, or Hearing Officer if on <br />appeal, from granting a Rent Increase that is necessary in order to meet constitutional fair <br />return requirements. <br /> <br />B. If a Park Owner presents evidence to the Rent Review Officer, or Hearing Officer if on appeal, <br />including any financial records requested by the Rent Review Officer, which proves that the <br />Park Owner is denied a fair return by the provisions of this Article, the Rent Review Officer, <br />or Hearing Officer if on appeal, may authorize an increase in Rent as deemed appropriate by <br />the Rent Review Officer, or Hearing Officer if on appeal, to provide a fair return to the Park <br />Owner. The Rent Review Officer, or Hearing Officer if on appeal, shall use the method set <br />forth in this Article to determine the fair return. <br /> <br />[4-39-220] Method to Determine a Fair Return. <br /> <br />A. Maintenance of Net Operating Income: It shall be presumed that the net operating income <br />produced by the property during the Base Year provided a fair return. A Park Owner shall be <br />entitled to Rents sufficient to earn a fair and reasonable return and to maintain and increase the <br />Base Year net operating income in accordance with this Section. This method shall be called <br />maintenance of net operating income (“MNOI”) and shall be included in all Fair Return <br />Applications. <br /> <br />B. Adjustment of Base Year Net Operating Income: The Park Owner or the Affected <br />Mobilehome Owners may apply to the Rent Review Officer to rebut the presumption of fair <br />and reasonable return based upon the Base Year net operating income. To make such a <br />determination and in order to adjust to the Base Year net operating income, the Rent Review <br />Officer, or Hearing Officer on appeal, must make the following findings: <br /> <br />1. Exceptional Expenses in the Base Year. The Park Owner’s operating expenses in <br />the Base Year were unusually high or low in comparison to other years. In such <br />instances, adjustments may be made in calculating operating expenses so the Base <br />Year operating expenses reflect average expenses for the park over a reasonable <br />period of time. The following factors shall be considered in making such a finding: <br /> <br />a. Extraordinary amounts were expended for necessary maintenance and repairs. <br /> <br />b. Maintenance and repairs were below accepted standards so as to cause <br />significant deterioration in the quality of services provided. <br /> <br />c. Other expenses were unreasonably high or low notwithstanding the <br />application of prudent business practices. <br /> <br />2. Exceptional Circumstances in the Base Year. The gross income during the Base <br />Year was disproportionately low due to exceptional circumstances. The following <br />factors shall be considered in making such a finding: <br /> <br />a. If the gross income during the Base Year was lower than it might have been <br />because some Mobilehome Owners were charged reduced rent. <br /> <br />b. If the gross income during the Base Year was significantly lower than normal <br />because of the destruction of the Park and/or temporary eviction for construction or