§ 540-2.1004. Standards of review for major rent increase.

(a)

Factors. Factors to be considered in evaluating a major rent increase proposed by the park owner include:

(1)

Unavoidable increases in maintenance and operating expenses, including but not limited to the reasonable value of the park owner's labor and any increased costs for services provided by a public agency, public utility, or quasi-public agency or utility;

(2)

The substantial rehabilitation or the addition of capital improvements by the park owner seeking the major rent increase, including the reasonable value of the park owner's labor, as long as such rehabilitation or improvement has been completed and is:

(A)

Distinguished from ordinary repair or maintenance,

(B)

For the primary benefit, use, and enjoyment of the affected mobilehome owners,

(C)

Permanently fixed in place or relatively immobile and appropriated to the use of the mobilehome park,

(D)

Not coin-operated nor one for which a "use fee" or other charge is imposed on affected mobile-home owners for their use, and

(E)

Cost-factored and amortized over the remaining useful life of the rehabilitation or improvement;

(3)

The rental history of the affected mobilehome spaces and the mobilehome park, for the immediately preceding thirty-six months, including:

(A)

The presence or absence of past rent increases,

(B)

The frequency of past rent increases, and

(C)

The occupancy rate of the mobilehome park in comparison to comparable mobilehome parks in the same general area;

(4)

The physical condition of the affected mobilehome spaces and mobilehome park, including the quantity and quality of maintenance and repairs performed during the preceding twelve months, as well as the long term patterns of operating, maintenance, and capital improvement expenditures;

(5)

Increases or reductions in park services since the last rent increase;

(6)

Existing space rents for comparable mobilehome spaces in other comparable mobilehome parks;

(7)

A decrease in net operating income as provided in Section 540-2.1006;

(8)

A fair return on the property prorated among the mobilehome spaces of the mobilehome park;

(9)

Other financial information which the mobilehome park owner provides;

(10)

Whether income or expenses in a base or comparison year are unreasonably high or low. If so, the rent review officer may make an appropriate adjustment.

(b)

No cap shall be placed on rent increases pursuant to this section. It is understood that a park owner is entitled to, and this chapter shall be construed and implemented to afford a park owner a fair and reasonable return on investment.

(Ords. 99-24, § 12; 95-31, § 2).