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File Number: 19-102 <br />grandchildren, nieces or nephews. <br />Fair Return Rent Increases <br />The Ordinances establishes a method to ensure a fair rate of return to park owners based on the <br />concept of Maintenance of Net Operating Income (MNOI). <br />·Provides a method to calculate Net Operating Income (NOI) based on Gross Rental <br />Income and Operating Expenses (as both are defined in the Ordinance). NOI would be <br />calculated by subtracting operating expenses from gross rental income. <br />·Gross rental income would not include: utility charges for submetered gas and electricity; <br />charges for water, refuse disposal, sewer service and/or other services provided by or <br />charged to the Mobilehome Owner solely on a pass-through basis and/or are regulated <br />by state or local law, laundry service charges, storage charges, and rental income <br />spaces exempted from rent limits by state law or the Ordinance. <br />·Operating expense exclusions would include: mortgage principal or interest payments or <br />other debt service costs; penalties, fees or interest assessed or awarded for violations of <br />the Ordinance or other laws; depreciation; political contributions; and master-metered <br />gas and electricity services. <br />Process to Consider Alternate or Settlement Proposals <br />The Ordinance allows an opportunity for - and a period where - either the Mobilehome Owner(s) <br />or Mobilehome Park landowner may propose an alternative and mutually agreeable rent change. <br />If an offer for settlement is rejected and the rejecting party fails to obtain a more favorable <br />decision or award, the rejecting party cannot recover his or her post-offer legal expenses and <br />must pay for the offering party’s legal costs from the time of the offer. When settlement offers <br />have been submitted in a timely manner, but neither were accepted, the Rent Review or Hearing <br />Officer may assign responsibility for legal costs based on which party failed to obtain a more <br />favorable decision. <br />Procedures for Rent Review <br />The Ordinance allows Mobilehome Park Owners and affected Mobilehome Owners a request for <br />review by the Rent Review Officer once within any 12-month period year for applications seeking: <br />·Rent increase based on a Fair Rate of Return; <br />·Temporary increase in rent based on a Capital Improvement Cost pass-through; <br />·Temporary increase in rent based on a Capital Replacement Cost pass-through; <br />·Rent reduction based on a reduction of services by the Mobilehome Park Owner. <br />Page 5 City of San Leandro Printed on 2/26/2019