Appendix 81006. Other rent adjustments.

(a)

Completely New Capital Improvements. Space rent may not be increased to cover completely new capital improvements as defined in Section 81001, unless written consent of a majority of affected spaces in the park is obtained prior to making the expenditure. Tenant approval is not necessary, however, if such new capital improvements are required by law.

(1)

The provisions of this Section shall apply equally to Section 81005 and Section 81007 applications.

(2)

An application for a special rent increase based on the cost of a completely new capital improvement may be filed not less than one hundred twenty (120) days before the effective rent increase date. Section 81005 applications including a completely new capital improvement, shall be approved by staff when the definition of a capital improvement set forth in this Chapter and any related Board procedures are satisfied. Any special rent increase granted under this Section shall be amortized over the useful life of the improvement, in line with IRS rules and Board guidelines, and apportioned equally among the affected park spaces.

(3)

A special rent increase application must be filed in conjunction with a Section 81005 or Section 81007 application and shall be processed according to the requirements of Section 81011. After receipt of a completed application, written notice of the determination by the staff shall be mailed to the applicant and the affected tenants' representative within that time. Written notice that an application has been determined to be incomplete and the reasons for that determination shall be given to the applicant within thirty (30) days of receipt of the application. A written determination to grant a requested special rent increase or a modified special rent increase shall specify the duration and amount of the monthly rent adjustment granted.

(4)

Whenever an application is submitted, all affected tenants are entitled to copies of all documents in support of such application and they shall be furnished to such persons by the park owner upon request and upon payment by the tenant of reasonable copying fees comparable to competitive rates available locally.

(5)

Increases authorized and approved under this Section shall be effective as of the rent increase anniversary date, but not earlier than 90 days after the park owner gives affected tenants notice of the proposed increase pursuant to the provisions of the State mobilehome residency law.

(6)

Reasonable market rate interest on any debt incurred to fund completely new capital improvements shall be allowed.

(7)

A park owner or tenant appealing a decision of the staff pursuant to the provisions of this subsection must file a written notice of appeal not later than twenty (20) days after the receipt of the notice of said decision to the park owner. The notice of appeal must specify the decision appealed from and the grounds for the appeal.

(8)

In computing rent increases, the staff shall not include in the current base rent any amounts that represent approved completely new capital improvement costs.

(Ord. No. 4462, 5-6-2014)