HomeMy WebLinkAbout19 MOBILE PRK RNT CNTR 09-19-05
AGENDA REPORT
Agenda Item
Reviewed:
--1JL
City Manager
Finance Director ~
MEETING DATE: SEPTEMBER 19,2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
LOIS JEFFREY, CITY ATTORNEY
FROM:
SUBJECT:
MOBILE HOME RENT CONTROL
RECOMMENDATION
Pleasure of the City Council.
FISCAL IMPACT
Estimated consultant costs of $50,000 or less to determine if rent control is feasible at
the Senior Park, and if so, the determination of "base rent" and the recommend
administrative body to administer the program. The costs of program establishment and
administration are unknown at this time.
BACKGROUND
The regulation of rent charged for mobile home spaces is within the City's police power.
However, rent control must serve a legitimate governmental purpose and permit the
landlord to earn a just and reasonable return on the landlord's investment. The
protection of tenants from excessive rents and the protection of tenant welfare is a
purpose that the courts have upheld. The facts justifying rent control must be gathered
to support such a purpose prior to adopting an ordinance providing for rent control.
In addition, it is prudent to gather facts to know how many, if any of the tenants of the
mobile home park would qualify for rent control. If a tenant in a mobile home park has a
lease of a year or more, the space could not be subject to rent control. If the space was
constructed after January 1, 1990, it is not subject to rent control. If the space is not the
tenant's primary residence, it is also exempt from rent control.
In addition to gathering facts to determine if rent control is needed and whether in this
case, a sufficient number of spaces could be regulated to justify the costs of the
program, a base rent would need to be established, based on what is "fair and
reasonable" in the mobile home space market like the park at issue. The base rent
could be less than what is being charged, or similar to what is being charged. A
mechanism must be recommended by the consultant as how to evaluate and establish
annual increases. Finally, a recommendation would be needed on how to staff the
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Honorable Mayor and Members of the City Council
September 15, 2005
regulation of rent control. For example, the review of individual rent adjustment
applications is a quasi-judicial procedure which requires a noticed public hearing and a
meaningful opportunity for the applicant to be heard. There is likely to be an increase in
litigation costs for the City as well, as applicants frequently challenge the Cities' rent
control decisions in court.
Once the Consultant has gathered the facts and presented recommendations on base
rent and the administrative procedure, and if a sufficient number of spaces can be
regulated to justify the costs, an ordinance can be prepared. We would estimate
approximately six (6) months for this process once the Consultant was on board.
Respectfully Submitted,
~í~
LOIS E. JEFFR
CITY ATTORNEY
LEJ:jlo
cc:
William A. Huston, City Manager
Elizabeth A. Binsack, Director of Community Development
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