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11 <br /> <br />viii. Interest Allowance on Amortized Expenses. <br /> <br />b. Exclusions from Operating Expenses. Operating expenses shall not include the <br />following: <br /> <br />i. Mortgage principal or interest payments or other debt service costs. <br /> <br />ii. Penalties, fees or interest assessed or awarded for violation of any provision <br />of this Chapter or other provisions of law. <br /> <br />iii. Land lease expenses. <br /> <br />iv. Political contributions and payments to organizations which are substantially <br />devoted to legislative lobbying purposes. <br /> <br />v. Depreciation. <br /> <br />vi. Expenses for which the Park Owner has been reimbursed by any utility <br />rebate or discount, security deposit, insurance settlement, judgment for <br />damages, settlement or any other method or device. <br /> <br />vii. Unreasonable increases that deviate substantially from the historical average <br />increase in expenses since the base year. <br /> <br />viii. Expenses associated with the provision of master-metered gas and electricity <br />services. <br /> <br />ix. Expenses attributable to unreasonable delays in performing necessary <br />maintenance or repair work or the failure to complete necessary <br />replacements. <br /> <br />x. Expenses attributable to a Park-owned Mobilehome, including but not <br />limited to any Mobilehomes rented out by the Park Owner except when <br />provided to a Park manager as a component of employment compensation. <br /> <br />xi. Expenses attributable to Spaces exempt from Rent limitations by state law or <br />this Chapter shall be excluded, for the purpose of determining applicable <br />rents for non-exempt spaces, by reducing the total allowed operating <br />expenses by the amount attributable to exempt spaces. This may be done by <br />reducing the total allowed operating expenses by the percentage of operating <br />expenses attributable to the total number of exempt Spaces in the Park, or by <br />another method approved by the Rent Review Officer. <br /> <br />c. Adjustments of Operating Expenses. Base Year and/or current operating expense <br />items shall be averaged with other expense levels for the same types of items for <br />other years or amortized or adjusted by the CPI or may otherwise be adjusted, in <br />order to establish an expense amount for the item(s) that most reasonably serves the <br />objectives of obtaining a reasonable comparison of Base Year and prior year <br />expenses. Grounds for such adjustments include, but are not limited to: <br /> <br />i. Either the amount or nature of an expense item for a particular year is not <br />representative. <br /> <br />709