§ 540-02.408. Capital improvement rent increases.

(a)

A park owner may increase a mobilehome owner's space rent based on the mobilehome owner's pro-rata share of capital improvement expenditures in the park. The purpose of this section is to provide the park owner a streamlined procedure for recovering capital improvement dollars invested in the mobilehome park. Any such rent increase shall be amortized over the useful life of the capital improvement, using the table of capital improvement set forth in Section 540-2.1210. If the table of capital improvement life expectancies in Section 540-2.1210 is not applicable, the park owner shall use the "Class Life Asset Depreciation Range System" ("AUTRE System"). Interest may be imputed on any such rent increases using the prime rate in effect thirty days prior to the date of the application, plus two percent. However, in no event may any single rent increase, or any cumulative rent increases under this section exceed five percent of the mobilehome owner's then existing rent.

(b)

Any rent increase implemented under this section based on the cost of capital improvement shall not be included as part of the base rent upon which future rent increases under this chapter are based and shall be deleted from the space rent once the mobilehome owner's pro-rata share of the capital improvement rent increase has been recovered.

(c)

Nothing in this section shall preclude a park owner from foregoing the right to seek a rent increase under this section and instead applying for a major rent increase, including applying for a major increase based on capital improvement expenditures that would otherwise result in a rent increase in excess of five percent of the mobilehome owner's then existing rent.

(Ords. 97-8 § 4; 95-31 § 2).