5.44.060 Base space rent—Determination—Allowable increases without hearing.
A. The “base space rent” for purposes of this chapter shall be the monthly space rent charged as of March 15, 1982 plus any increases otherwise allowed, pursuant to this chapter. The maximum monthly space rent for any space under a lease, upon expiration of the lease, shall be no more than the rent charged in the last month of said lease. In parks where there is an exemption because 66.67 percent of the spaces are governed by a lease with an initial term of no less than one year, then the maximum monthly space rent shall be the space rent designated in leases for comparable spaces. A schedule of current rents in the park shall be posted in a conspicuous place in the park.
B. Except as otherwise provided in this chapter, the maximum monthly space rent may be increased no more than once a year based on the percentage change in the CPI, or nine percent, whichever is less, calculated as follows:
1. The maximum monthly space rent may be increased at a rate equal to one hundred percent of the CPI up to five percent and seventy-five percent of the CPI in excess of five percent calculated as follows:
a. The change in space rent shall be calculated by dividing the ending CPI index by the beginning CPI index.
b. If the resulting quotient is less than 1.05, then it shall be multiplied by the space rent. The resulting product shall be the new space rent.
c. If the resulting quotient is greater than 1.05, then the difference between the resulting product and 1.05 shall be multiplied by seventy-five percent. The resulting product shall be multiplied by the space rent and that product shall be added to the sum derived from Section 5.44.060(B)(1)(b) above. The sum shall be the new space rent.
d. The beginning CPI index shall be the index for the month used as the ending index for the last CPI adjustment.
e. The ending CPI index shall be the index for the month twelve months after the beginning index.
2. At least every two months the city administrative officer shall publish, by means of an advertisement or similar notice in the newspaper, the percentage change of the CPI allowed under this subsection B for the twelve-month period immediately preceding the month for which CPI information has been most recently published by the appropriate federal agency.
3. It is the intention of this subsection B to allow for automatic increases in space rent based on changes in the cost of living as measured by the CPI. The limitations on such increases are intended to minimize the immediate impact drastic changes in the CPI might have on residents. The limitations are not intended to prevent ultimate adjustments to allow owners to receive a fair return on their property.
C. The maximum monthly space rent of a tenant may be increased by the owner when there is a change of ownership affecting a mobile home. However, such increase shall not exceed ten percent of the then existing space rent and may not be relied upon any more often than once in any thirty-six-month period as the basis to increase rent. In the event of change of ownership resulting from subletting of the mobile home space as may be allowed by state law, should such become state law, then upon any such subletting the space rent may be increased up to ten percent of the then existing space rent. In the event of change of ownership resulting from vacation of the space, then the space rent may be adjusted to fair market rent in the community. Nothing in this paragraph shall preclude an adjustment as may otherwise be provided for in this chapter.
D. No owner shall either (1) demand, accept or retain a rent of or from a tenant in excess of the maximum rent permitted by this chapter, or (2) effect a prohibited rent increase by a reduction of general park facilities and services. However, an owner may modify the nature of park services if reasonable allowance is provided to the tenant. For example, if the owner elects to submeter water so that tenants pay for water consumed by them, then tenants shall receive a reasonable reduction from their base space rent.
E. Space rent may be automatically adjusted based on increases or decreases in expenses for common area utilities, new government-mandated services, garbage service and cable television, where applicable, excluding capital improvements or ongoing maintenance costs. The space rent may be adjusted by dividing the total increase or decrease in any such expenses incurred during a twelve-month period by twelve, less the percentage in the CPI index for the twelve-month period. The quotient shall be allocated to the space rent for each space in the park based on the amount the space rent relates to total space rent for the park. Automatic adjustments to rent authorized by this paragraph E shall not be included in “base space rent” for the purpose of determining CPI increases pursuant to Section 5.44.060(B), but shall be considered as additional rent. Notice of the increase, or decrease, shall be in writing and shall be given as required by law no less than ninety days prior to any such increase or decrease being effective. The notice shall state the amount of the rent increase or decrease, the new space rent, the amount of the total increase or decrease in expenses and the nature of the expense. A copy of the notice shall be given to the city administrative officer. The city administrative officer shall have the authority to resolve questions regarding computation of the space rent increase or decrease based on this section. There shall only be one such increase or decrease in any twelve-month period. (Ord. 1279 § 1, 1995; Ord. 1268 § 1, 1994; Ord. 1226 § 2, 1992; Ord. 1173 § 1, 1990; Ord. 1167 § 1, 1990; Ord. 1146 § 2, 1989: Ord. 1117 (part), 1988)