§ 540-2.1208. Effect of prior approval.

(a)

Approval Pursuant to Hearing. Where a park owner obtains prior approval for a capital improvement rent increase pursuant to a hearing, the park owner may make the improvements and is entitled to recover the pre-approved rent increase as set forth in this section. Upon the completion of the improvement, the park owner shall submit to the rent review officer, documentation of the actual cost of the capital improvement, and the rent increase notice to be sent to the affected mobilehome residents, which notice shall specify the amount of the rent increase. The park owner may not commence collecting the increased rent until thirty days after providing said notice to the affected mobilehome owners.

If the total actual cost (which includes the actual interest cost) is less than the total pre-approved amount, only the costs actually incurred may be passed through to the mobilehome owners in their proportionate share, except that if the park owner does not borrow the funds to pay for the improvement, the park owner shall be entitled to receive interest on his funds at the rate of prime plus two percent.

If the total actual cost of the capital improvement is more than the total pre-approved amount, the park owner may waive the excess amount and, following provision of thirty days' notice, collect only the pre-approved amount. In the alternative, the park owner may provide a second notice of capital improvement rent increase for the full amount incurred, in which case the park owner shall comply with all requirements for a rent increase.

(b)

Approval Without Petition. Where a park owner obtains prior approval for a capital improvement rent increase, which approval was not subject to a petition, the park owner is entitled to recover the pre-approved rent increase as set forth in this section. Upon completion of the capital improvement, the park owner shall submit to the rent review officer, documentation of the actual cost of the capital improvement, and the rent increase adjustment (decrease) notice, if any, to be sent to the mobilehome owners.

If the total actual cost (which includes the actual interest cost) is less than the total pre-approved amount, only the costs actually incurred may be passed through to the mobilehome owners. If the total actual cost of the capital improvement is more than the total pre-approved amount, the park owner may waive the excess amount and continue collecting only the pre-approved amount. In the alternative, the park owner may provide a second notice of capital improvement rent increase for the full amount incurred, in which case the park owner shall comply with all requirements for a rent increase.

(Ords. 99-24, § 14; 95-31, § 2).