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File Number: 19-271 <br />The proposed Ordinance will establish a method to review mobilehome park space rent <br />increases, protect Mobilehome Owners from arbitrary, capricious, or unreasonable rent <br />increases, and ensure that mobilehome park owners, operators and/or investors receive a fair <br />and reasonable return on their investment. In response to the March 4, 2019 City Council Meeting, <br />Staff held two meetings--one with Mobilehome Owners on April 17and one with Mobilehome Park <br />Owners and industry representatives on April 25. See “Summary of Public Outreach” section <br />below for more information on both of these meetings. <br />Given the feedback received from both of stakeholder meetings and public comments received to <br />the first version of the Ordinance that was presented for first reading (see Attachment B), there <br />were two significant changes to the Ordinance since the March 4 first reading. <br />The first change involves adding a section for “Just Cause for Evictions” to the Ordinance using <br />the State of California Mobilehome Residency Law (MRL) Section 798.56 “Seven Authorized <br />Reasons for Termination of Tenancy” as a basis. The MRL “just cause” eviction protections <br />prohibit the owner of a mobilehome park from terminating or refusing to renew the tenancy of an <br />individual who rents a mobilehome space except for specific reasons. Examples of such reasons <br />include the nonpayment of rent, failure of a resident to comply with a rule in a rental agreement, <br />and conduct by the resident that constitutes a substantial annoyance to other residents. The MRL <br />also includes specific requirements regarding the opportunity to correct a violation that must be <br />provided to the resident before an eviction can occur. The protections of the MRL apply <br />throughout California. <br />The proposed ordinance will apply the just-cause eviction provisions of the MRL to all individuals <br />renting a mobilehome space, regardless of the structure located thereon. For example, the <br />provision will apply to individuals who locate certain types of recreational vehicles that fall under <br />the proposed Ordinance on mobilehome spaces. The proposed Ordinance’s just cause eviction <br />provision applies to the rental of mobilehome spaces, but not the mobilehomes themselves. The <br />rental of mobilehomes is governed by the City’s Rent Review Ordinance (SLMC Chapter 4-32) <br />and the Tenant Relocation Ordinance (SLMC Chapter 4-37) in addition to specific existing <br />California laws regulating landlord-tenant contracts. <br />The second change replaces the Consumer Price Index (CPI), All Urban Consumers, West <br />Region from the March 4th Ordinance with the CPI, All Urban Consumers, San <br />Francisco-Oakland-Hayward as an annual rent increase threshold. Staff evaluated all suggested <br />versions of the Consumer Price Index (CPI), accounting for public comments. Consequently, staff <br />recommends that the CPI (SF-Oakland-Hayward) be used in the Ordinance because it is <br />geographically specific. Attachment C provides a table and line graph that shows a comparison <br />over time of the West Region vs. the San Francisco-Oakland-Hayward CPI Tables. Both CPI <br />indices have changed annually at a similar average rate over the last 8 years, although the CPI <br />(SF-Oakland-Hayward) rate is slightly higher (2.9% vs 2.2%) over this period. <br />Definitions <br />Base Rent - rent in effect for a Mobilehome Space on July 1, 2018. <br />Page 2 City of San Leandro Printed on 5/14/2019