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9 <br /> <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 <br />repairs. <br /> <br />c. The pattern of rent increases in the years prior to the Base Year and whether those <br />increases reflected increases in the CPI. <br /> <br />d. Base Year Rents were disproportionately low in comparison to the Base Year Rents <br />of other comparable parks in the City. <br /> <br />e. Other exceptional circumstances, excluding any comparisons of Base Year Rents to <br />Rents of other comparable parks located outside of the City or to market rents <br />determined from comparable Parks located outside of the City. <br /> <br />C. Calculation of Net Operating Income. <br /> <br />1. Net Operating Income. Net operating income shall be calculated by subtracting <br />operating expenses from gross rental income. <br /> <br />2. Gross Rental Income. <br /> <br />a. Gross rental income shall include the following: <br /> <br />i. Gross Rents calculated as gross rental income at 100 percent occupancy, <br />adjusted for uncollected Rents due to vacancy and bad debts to the extent <br />such vacancies or bad debts are beyond the control of the Park Owner. <br />Uncollected Space Rents in excess of three percent of gross Space Rent shall <br />be presumed to be uncollectable unless established otherwise and shall not <br />be included in computing gross rental income. <br /> <br />ii. All other income or consideration received or receivable in connection with <br />the use or occupancy of the Rental Unit, except as excluded below. <br /> <br />b. Gross rental income shall not include the following: <br /> <br />i. Utility charges for submetered gas and electricity. <br /> <br />707