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12 <br /> <br />ii. The Base Year expense is not a reasonable projection of average past <br />expenditures for that item in the years immediately preceding or following <br />the base year. <br /> <br />iii. The prior year expense is not a reasonable projection of expenditures for that <br />item in recent years or of future expenditures for that item. <br /> <br />iv. If a particular item of expense exceeds the normal industry or other <br />comparable standard for the area, the Park Owner shall bear the burden of <br />proving the reasonableness of the expense. To the extent that it is found that <br />the expense is unreasonable it may be adjusted to reflect the normal industry <br />standard. <br /> <br />v. A Base Year expense is exceptionally low by industry standards and/or on <br />an inflation adjusted basis is exceptionally low relative to the prior year <br />expense although the level or type of service for which the expense is <br />incurred has not changed significantly. <br /> <br />vi. An increase in maintenance or management expenses is disproportionate to <br />the percentage increase in the CPI, while the level of services has not <br />changed significantly and/or is not justified by special circumstances. <br /> <br />D. Constitutionally Required Fair Return: Notwithstanding any other provisions of this Chapter, <br />the Rent Review Officer or Hearing Officer, if on appeal, is authorized to approve any Rent <br />Increase that is constitutionally required by law to yield a fair return.3 <br /> <br />E. Rent Increase Effective Date: Rent Increases approved by the Rent Review Officer shall be <br />effective on the date given by the applicant in the notice to the Affected Mobilehome Owners <br />required in section 798.30 of the California Civil Code. In the event that the period for <br />determining the allowable Rent Increase exceeds 120 days, the Park Owner may recover a <br />Rent charge retroactive to 120 days after the Fair Return Application is deemed complete. <br />Delays or continuances that are mutually agreed to in writing by all parties concerned, <br />extensions authorized in this Article, and the number of days that lapse between applicant <br />receiving notice of the necessity of replenishing their cost account with the City and paying <br />the required amount pursuant to the fee payment procedure for review of Fair Return <br />Applications, including any costs of expert analysis ordered pursuant to this Article, shall not <br />be counted in determining whether said 120-day period has expired. In order to avoid undue <br />hardship on the Mobilehome Owners affected by the decision, the retroactive Rent charge <br />shall be amortized and paid over a period of five years, unless the Rent Review Officer, or <br />Hearing Officer if on appeal, determines that a different amortization period is more <br />reasonable. Interest may be charged on this amortized Rent. <br /> <br />F. Per Space Rent Adjustment Pursuant to Fair Return Standard: The allowable Rent Increase per <br />Mobilehome Space pursuant to this Section may not be increased as a result of exempt Spaces <br />in the Park. <br /> <br />[4-39-222] Settlement Proposals. <br /> <br /> <br />3 Fisher v. Berkeley," 37 Cal. 3d 644, 693 P.2d 261, 209 (The court held that a standard allowing the landlord to <br />recover a reasonable return on investment was sufficient to withstand a facial challenge. The court suggested a <br />Net Operating Income Method would be acceptable, provided landlords' income was not indefinitely frozen at the <br />nominal amount earned in the base year.) <br />710