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A. Except for automatic increases in base rent allowed under Section 5.44.060, an owner or tenant may file with the city clerk an application for a rent adjustment (“application”). The application shall state the amount of the adjustment for each space affected and the reasons for the adjustment.

1. An application shall be accompanied by the payment of a fee as may be established from time to time by the council.

2. An application filed by an owner shall be accompanied by a statement that the tenant for each space affected has been served either personally or by mail with a notice describing the application and the change in rent or services.

3. An application filed by a tenant shall be accompanied with a statement stating that the owner has been either personally or by mail served with the application and with a statement designating not more than three persons to act as representatives for the spaces affected and containing the names and addresses of tenants representing no less than fifty-one percent of the spaces affected by the application and supporting the application and established by a secret election.

4. A statement shall accompany the application and shall notify the receiving party that he/she has thirty days to file an objection and if one is not filed within the time allowed, then the application will be automatically granted.

B. An objection to the application may be filed with the city clerk within thirty days after the notice of application has been served.

The objection shall identify the portions of the application objected to and shall state the grounds of the objection.

1. A copy of an objection filed by an owner shall be mailed to each of the designated tenant representatives.

2. A copy of an objection filed by a tenant shall be mailed to the owner. The tenant’s objection shall designate not more than three persons to act as representatives for the objecting tenants. The objection must be accompanied by a statement containing the names and addresses of tenants representing no less than fifty-one percent of the spaces affected by the owner’s application and verifying that they object to the application, established by secret ballot election.

C. If no objection is filed to an application within the time allowed, or if less than fifty-one percent of the tenants support an objection to an application, then the application will be automatically granted.

D. If an objection is filed within the time provided, then the owner and the tenant representatives shall meet and confer to negotiate in good faith an agreement regarding the application. Either party may request a mediator of their choice to assist in the negotiations, but this is not required. If an agreement is reached within sixty days, then the tenant representatives shall notify all tenants affected by the agreement. The tenants shall have ten days to approve or disapprove of the agreement. If tenants representing a majority of the spaces affected fail to disapprove of the agreement then the agreement shall be binding on the owner and all tenants affected. The city clerk shall be notified that an agreement has been reached. The statements made in negotiations and any agreements reached but not approved shall not be admissible in any subsequent hearings regarding the application.

E. If the owner and the tenant representatives fail to reach an agreement within the time provided or if a majority of the tenants disapprove of an agreement reached, then the applicant shall within ten days notify the city administrative officer that an agreement has not been reached. The city administrative officer shall obtain a list of no less than five qualified hearing officers. Owners and tenants may each delete one person from the list of qualified hearing officers seven days and one of the remaining persons shall be selected by the city administrative officer as the hearing officer. Appointment of the hearing officer shall be completed no later than twenty-one days after filing of the notice that an agreement has not been reached.

F. The hearing officer shall set a hearing on the application complying with the requirements of this section no less than ten days and no more than thirty days after his or her appointment. The hearing officer shall notify the owner and tenants, in writing, of the time, place and date set for the hearing. No hearing or any part thereof may be continued beyond thirty days after the initial hearing date, without the applicant’s consent. If the hearing officer approves an application as requested or as modified, the same shall take effect as noticed by the owner or as the hearing officer may otherwise direct. (Ord. 1117 (part), 1988)