Item 14 - Ballot Initiative on Mobilehome Rent Control Restrictions AGENDA REPO ~T S~ , f
.O: Mayor and Members of the City Council
FROM: James L. Bowersox, City Manager
INITIATED BY: John D. Fitch, As, sistant City Manager~.~
Penny Riley, Sen~or Management Analysf..~W~
DATE: May 16, 1995
SUBJECT: Ballot Initiative on Mobilehome Rent Control Restrictions
On May 9, 1995, Councilmember Bob Emery requested that staff obtain information on the
Mobilehome Rent Control Restrictions Act. This report provides a summary of the -
measure and requests Council direction for further action.
E
'his item is not subject to CEQA review.
There is no fiscal impact ~ with this informational report.
None.
it is recommended that the City Council provide direction to staff.
ACTION
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C, ITY OF P OWAY
AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Manager
INITIATED
BY:
John D. Fitch, A~slstant City Manageri~--,kL._.
Penny Riley, Sen~or Management Analysl~7]J~l~-'
DATE: May 16, 1995
SUBJECT: Ballot Initiative on Mobilehome Rent Control P
BACKGROUND
On May 9, 1995, Councilmember Bob Emery requested that staff obtain information
on the Mobilehome Rent Control Restrictions Act.
FINDINGS
Provided in Attachment A for City Council's consideration is the Attorney
General's title and summary of the ballot initiative: Noailehome Rent
Assistance. Mobilehome Rent Control Restrictions. The text of the measure is
included as Attachment B.
The initiative generally contains the following p
· Requires mobilehome park management to administer and provide rent subsidy
equal to ten percent discount on monthly rent to tenants meeting residency and
income requirements when ten percent or less of occupied spaces are covered by
rent control or rent subsidy·
· Establishes p for, and conditions for losing, rent subsidy·
· Invalidates existing, and prohibits new, state mobilehome rent control laws.
· Limits existing, and prohibits new, local mobilehome rent control laws.
· Prohibits such laws from requiring reductions in rent and limiting '
in rent to less than specified cost of living index.
The ballot initiati'e received a sufficient number of verified signatures to
qualify for the bal ot on October 12, 1994. The Mobilehome Rent Ass/stance.
Nobilehome Rent Con rot Restrictions measure will appear on the ballot for the
statewide election o be held March 26, 1996.
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Agenda Report - Rent Control
May 16, lgg5
Page 2
There is no fiscal impact ~ with this inf 1 report.
~IEW
This item is not subject to CEQA review.
,COl
None.
REI NDA'
It is recommended that the City Council provide direction to staff.
JLB:JDF:PAR:eb
Attachments:
A. Attorney General's title and summary of ballot initiative:
-- Mobilehome Rent A Mobilehome Rent Control R
B. Ballot initiative text.
MAY 1 6 1995 ITEM
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Date: January 27, 1994
File Ne: SA93RF0042
The Attorney General of C..alifomia has prepared the follow/ag title anti summary of
the ckief purpose and points of the proposed measnre:
MOBILEHOM]E RENT ASSISTANCE. MOBILEHOM]E REN-I' CONSOL
RESTRICTIONS. 12qlTIATIVE STATUIIz. Requires park
to ' ' and prow2de rent sub.qidy equal 1o lea percent discount on :n~mth],~
to tenants meeting residency and income req when ten percent or less of
occupied spaces are covered by rent control or rent subsidy. Establ;shc,~ '~riorities for.
and ' ' for losing, rent subsidy. Invalidates ex/sting, and probJbits new, state
mobi.lehome rent control laws. 1.2rrfits exSsting, and prokibits new, local
rent control laws. Prohibits such laws from requiring reductions in rent and limiting
increases in rent to less than specified cost of lix4.ng index. Summa~ of estLmate by
Legislative Analyst and Director of Finance of fiscal impact on state and
~, No impact on state costs or revenues. In the near term. cities and
counties may increased costs which are unknown, but are not likely to total
more than mill/oas of dollars annually. In the long term. local agencies ~vonid
experience say/rigs in the range of millions to tens of millions ,3f dollars annually.
4 of 12 Attachment A )~IAY 1 6 1995
AN THE VO]bRS
The Attorney General of California has prepared the following title and -.um'~ary of
the chief purpose and points of the proposed measure:
(Here set forth the title and summery prepared by the Attorney Ger,~ This tftle
and summary must also be printed top of each page of tl'~e peti~ior~ ~,vhereon
signatures ere to appear.)
To the Honorable S Stale of California:
We, the qualified voters of California, ~ec. ident~
County (or City and County), hereby propose to [he Calitornia
Civil Code, relating to establishment of a rentat subsidy for ouelified p~or and
needy on pa~k rent control in
thereof, and prohibitions of of rent control measures by the State
a~c b'~, ,ocs; c~arter and genera~ [aw clties and counties, and Det~t~on the Secr~.~er¥
State ~o submit the same to the voters of California for their adoption or rejection a; the
nex~ general election. The proposed statutory (tull ti:la ~nd ~ext
of the measure) read as follows:
SECTION 1: TITLE
This Measure shall be known and may be cited as The Fairn~s~ and
Rental
SECTION 2.: FINDINGS AND DECLARATIONS OF PURPOSE
Ia} The People of the State of California find and declare as follow, s:
(1) Some tenants of spaces in parks i~'~ Ca,if .~rr~ia
are Poor and needy and are urgently in need of rental without dela,,~s, expense
or red tape which state and local usually requires for thF: 01
rental programs; and
I2) Over 80 local are spending millions of dollars annually
ad ' ' and enforcing park renz controls for the exch~siv~ bane. fir of
owners of mobilehomes which comprise only 5-percent of
housing units with :1 controls that are generally not means ~ested to the poor. so
that mobilehome owners ' with an average value pt S40 CC0 :,~ ~50,000
obtain unfair price controls in rent controlled areas at the expense of
b and all the citizens of California: ~nd
(3} These controls ieopardize of
park housing for el! and jecpardi:e con'.:n..:cd eno
small existence in California; and
(4) Requiring the provision of direct rental
park owners ~o provide specified reducecl rer~rs for the ~.~r, togetr~er ~w~n the
on most restrictive features of rent [imita~ions which h3,'c~ adversely affected
5 of 12 Attachment B MAY 1
the and supply of such affordable mobile home housing. ~s to assu,e
[he con=inued of affordable mobile horrm housing tO the poor; and
15) The limitation of the rental subsidy provided in rhi~ i~'easL,-e
to not more than of the spaces in a single park will prcvide a
amount of to needy park tenants, without unduly
burdening the property interests Of the park owner.
(b} It is therefore the intent of the People of the State of California in enac~mg this
Measure to do elf of the following es a matter of statewide Concern:
(1) Require owners of parks to grant directly, without
· ' rental subsidies To not more th~.~ .~:'~ p~;'ce~t Of
their space tenants.
(2) Require ioca[ to minimize their park rent control
measures by allowing annual rent increases equal to the cost of living end reQu,e :cc~l
to phase PUl rent control on a space by ~pece t~a:,i~ ~:pon the
sale, transfer ~r sublease of
(3) Prohibit of any new park refit control pr rent
law by any local g or by the Slate of Callforn~a.
{c) This Measure is not intended, nor shall it be to deprive anv
owner, tenant or park owner of any rights,
SECTION 3: AMENDMENT OF CHAPTER 1 OF DIVISION 2 OF CALIFOR~'~:*~ r~!'/[L CODE:
Chapter 1 of Pert 2 of Div;sion 2 of the California Civil Code is hereby amended as fo;lov~,s
by addiz~g new Section 798.13, as follows:
79@.~.3 Aa used m this part, the following terms have the following
(a) "Tenant" means a as defined in Section 79S.9 of thls C. haptcr.
~b) "Oualif;ed Tenant" who. as of the date of and
during any period while receiwng a rental subsidy, satisfies all cf ~t',~ ~oilowing
(1) The tenant resides in a park in the State of C. alifb~i;~; and
{2) The tenant is a very Iow income as defined in section 50105
of the California Health and Safety Coc~e; and
(3) The tenant is not delinquent with any rental has a
legal residency in a and owns and occupies such as the tenant's
principal place of residence; and
6 of 3.2 2 MAY 1 6 1995 ITEi 14 '
(4) The tenant, including all other resid;r'~j ~r3 [he
is in with all rules and of the. park a;~d the
tenant's rental agreement; and
(5) The receiving any Federal, State or local housing
including but not under Chapter 8 with
section 140~,a) of Title 42. United States Code; The Housing and C
Act of 1974 (Public Law 93-383); Chapter 45 with se.ct~on 3601) of
42, United State Code; or any other housing program
administered by the Del; Housing and Urban or a,'~ provided by
other state at federal lawe or programs.
(c) "Rental ;)sidy' es used in of thi.'~ parr r~e.lns a ten-
percent discount from the monthly rent charged for the space; occ,~p~d by
one or more qualified tenants, by park manag~r.e~t (the
monthly The monthly rent level of e c~u3hfieC tenant
who is receiving or iS entitled a rental subsidy, may be increa,~(,d and
she!', be as from time to time, so that the mor~l~.~V
level shall not, at any time, average monthly rent level chargec t0r all space5 in -
the park then occupied with
Only one rental subsidy shall
regardless of how many qualified tenants who reside in a space, sc that no
be entitled to more than one d=scount from ',he
monthly rent level.
(d) "Exempt space" as used in Article 4.5 of this part meen.~ (il ,~n¥ .space ir~ a
park. which is not occupied by a as of the effective da~ c,~ this
Measure, or (ii} any space which is, as of the effective date of this Measure, exernp~
a perk rent control law as e result of any lease or rental covering
such space including, without limitation, a rental described in eection 79~ 17 of
this Chapter.
(el park ~ent control" as used in Articles 4.4 and ' r' ~!
means any rule, or initiative measure, adopted by any tit . county or
city end county, which maximum amana', that the of a
mobilehome park or resident for rent.
(fl 'D ;~ event" as used in Article 4.5 of this part means, with respect to
any space in e mobilehome by a park ren~ con'~rol !aw as cf the
effective date of this Measure, the of any of the follow,~g e~ .Ts after the
effective date of this Measure; (il Any sale, transfer (by opcraqnn of law
or other change in of the (as defined in Section 79[.3
of this Chapter); (ii) of the tenancy of the persons who ara tenants in such
space by eviction, or or (iii) Any sub-lease by the :anent to a
third party of the Or space after the effective date of this Measure, prowded
nothing contained herein' ' to author{ze eny such sub-lease of the or
space, the provisions of subdivisions (il. (ii), and (iii) harem,
;~ be deemed to have occurred upon of cf a
to the guardian or trustee of a or to a
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trust (D,ovided that the ' ' entitled to Ownership of the a'.? .~c"nbers
other spouse, or to a spouse or the parent(s) 0r chil0ren o~ a
(gl 'Subsidized rental charge" means the amount of ~ent tc :~e ~JaHhed
otherwise lawfully to the tenant.
SECTION 4: OF CHAPTER 2.5 OF DIVISION 2 OF THE CALIFORrJIA CtV:L
CO~E
Chapter [.5 of Part 2 of D{v~s;on 2 of the California Civil Code is ~ereby amen_:(.c 3~
follows Dy addmg a new Article 4.4. as follows:
Article ~.4 Tenant Rental
79~.-'4.1 Any oualified tenant may a~ply for a~ if acce~ted, sha~ ~ue,,'~', ~ "~;~
of a Dark m which such tenant res,oes, a re~'a{ ,~
subsidy subject to the terms and conditions ~rowCed for m :~s Ar:~c~e.
798.44.2 The orov(sion of the rental Subsidy shall be the sole
and obligation of each of a park and neither [r,e Etate of
California nor any . ' agency shah have any therefor or exercise
any authority in except as prov(Oed i~ Section 798.~-: g of
A~Jcle.
798.44.3 (al Each tenanl seeking to obtain a rental subsidy Shall ptOv~oe
w)th an together w~h evidence of facts. :c
tenant is e Qualified ~enant. This and evidence may be a~ any
subsiOy for the ensuing calen0ar year ~ January 1. The evicenCe
a~d SUCh i~come and other ' as is ,ecuired Dy
agency a the housing benefits for Very Low Income persons unoe,
Section 8 of the United States Housing Act of 1937 (42 U.S.C. sec. 1437) and Such
evidence as is required. However, no Dark sba}:
make this ~rocess more to ~he would be ,he case
the ~enant were applying for ~ousing benefits for Very Low IncDme [
under Section B of the United States Housing AC: of 1937 [42 U.S.C. ~ec.
(bi Each Dark managemen~ shall, promDtW uDo~ receipt of such
and evidence specified in paragraph la), evaluate :~e same and ~e~ly :o
tenant w~Th no,ice within 10 working days. The redly shari indicate e~:her (1)
ir, which case the amount of the rental Subsidy and the moa:air
rea: level shall t~en be sca:ed; or [2) rejection, m which case :he bas~s for such
shall also be sta:ed. Once a QualifJe0 tenant has receiveO a rea:al subsidy
~uri~g a~y pa~ of a calendar year, the rental subs,dy shall contmue until
31 Of t~a: year, suOject to early as p~ovided ;n tmis
[ iAY 1 6 1995 ITEM
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798.44.4 any other provision of this Art~;le to tt~e c~Jr~trar~:
of a park shal~ tfom the rental subs[dy
Drovis,ons of this Article if, and as long as, more than of the ~p.,( e~ occupied
by mobilehomes in such mobilehome park are covered by any form of park
ren~ con[roi.
{2) In any ' in which park rent control is in effect, rf
any time f ~ the spaces occupied by in a
Dark are covered by any form park rent control, the of
~ark shall be subject to the ~rovislons of th~s Article end sh~ll be ~0uired to
provide rental subsid~ to a qualified tenant; proviOed, however thai
of the ~ark shatl not be requ~re~ to proviae such rental
subsid~ if granting the subsidy in more than of the
spaces in the park being covered either by any form o1 p~k
control Or by the rental subsidy prowded by this Article The priority ~or
grent~ng rentai s~bs~dy shat~ be governed n~ ' ' ,c~ of th~5
79S
(b) In any in which there is no form of pa~k rent c~ntrol ,~
effect, the management of a park shall be ~equlred to provide the rental
subsid~ provided by this Article t0 ~ualified ten,nfs not more than
- of the occupied by in such park. The
priority for ~rant~ng renta~ s~bs~dy sha~ be governed by (c~ of
section 798,44,4.
(c) (1) in which ' ' iai(2) or ' ' (b) of
section apply, the of a park shal~ be required to gra~: the rental
subsidy provided for in this A~icle to those qualified tenants who a,'e f~rst
time to have been granted a rental subsidy by the of the
parE.
(2~ ' ' the number of ~ualified which the
of a park sha~l be required to provide rental un~e~
la}(2}, the management of the mobilehome park sha~ determine the n~m~er of
tenants which represent subsJOy, by the
of S~aCUS then sub~ect to some form of ~ark ~ent control from the
of the total number of spaces then occupied by
park.
79~.44.5 (a) Any qualified ' ' 3 a rental subsidy shall lose the
~o such rental upon the of any of the follow,nd events:
{as reduced by the rental w~thln five days cf ~s Oue date;
or
(2) The tenant no longer meets the criteria for a Qualifie~ ~enent for
reason.
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MAY 1 6 1995 ITEM
(bi The park may, upon 10 days' written notice t.~ the
tenant, term;hate the tenant's rental subsidy for a reason ~Decif;e,d m
paragraphs (1) or (2i of (aL
(c) A tenant whose rental subsidy has been our.~uant to
subdivision (bi may not rental subsidy for a period of ~ ~- months
(d) For purposes cf the set forth in sectian 798 44 4. a ret, ts]
· ' ',ID) shall be deemed to have IDeen
· on the last day of the calendar year.
798.44.6. Any qualified or damaged by any violation of this
Article may petition the munlcipal court of the judicial district in wh.ch the
park is located for a judicial of his or her rights under this Article.
aggrieved tenant prevailing in such an action shall De entitled to la) actual damaces
ccns;s+,ing of the amount of rental subsidy lost due to the violation aha (b}
attorneys fees and costs, Atenant aggrieved bye violation ol
also ~e entitled to ' ' relief, and any other equitable remedi~,.~ 3vai[.',bh
section 526 of the Code of Civli
A judgment of the municipal court shall be by the appellate:
of the superior court of the county in which the action arose.
798.4,4.7. (e) A perk', shall not terminate the ,.er.~nc~ of any
tenant, or do so, or retaliate against or co
result of a request by that tenant for a rental s~,bsidy or the e~rcise
of any r*ghts relating thereto as provided in this Article.
(b) Any demand by a rnobilehome rent in axce,*~
rental charge from any qualified tenant whose for 8 rental
subsidy is approved for the calendar year or whose w~s denied
violation of this Article shall constitute a defense to any action brought b~' the
park management for {1) the excess rent over the rental charge or (2} eviction
of the clualifieci tenant from the perk for of that excess rent.
However, this ' ' does not apply if of the rental charge
would violate any right of the owner of the park ~o a fair rate of
return.
SECTION 5: OF ARTICLE 4.5 OF PART 2 OF DIV~SIOI~J 2 OF THE
CIVIL CODE
Article 4.5 of Part 2 of Division 2 of the California Civil Code is amended to add the
following new Sections 798.46.1, 798.46.2., and '/98.46.3 as folicw~:
798.46.1 On or after the effective date of this Measure, no city, county, or c*ty and
county, shall, (si enact any new park rent control law or lb) amend or modify
any existing park rent control law to apply its on maximum rents to
any space in · park which ~s not. on t~e effective date of ti~i5 E~a~ure, by
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reason of 8 long or subject to rent under The
park ten! control law.
?95.45.2 Every mobilehome Dark law in effec~ as of the ef~ech.e ('~ of
this Measure shall be subject to the following ' '
ia) On or after January 1 of the year following the effective date of th~s Measure,
~ark rent control Jaw may, with respect t~ the ~ent which
p~rk for a such perk., either (i) require that the rent
for such be reduced from ~fore the effective date of
Measure or es of any subsequent da~e, or (JJ) limi~ any annual ren~ increase ~ ~ amoun~
which is less t~an the full annual cost of living increasc, by the
such cost of living from the 12-month period ending in the calen~ar month pr~ced~n~ the
date in which a notice of rent ' given by the park management
any time, and from t~me effective date of th~s Measure.
For purposes of this the cost of living sh~l~ ~e , using
th~ C~;forn;e Consumer Price Index ('CCP['), as ~ubi~sh~ by the ~ .~ h'.d~s~r~a~ _
RelaSons for all items and all urban and th~s index for thc 1
sh~ll b~ c~mpu~ed ~s 100.
(b} No ' ' ' any perk rent control law zhall require
the of a mob{lehome park to attend any hearing or submit an~ to
such 'jurisdiction so IonO lin}ts the renta~ increase~ for any space eftected
by such p~rk rant cc~tro~ law tc the full annual CCPI mcrease a~ provided in
subdivision
(c) On or of this Measure. no ~ark r~nt control
law shal~ impose on the amount of rent the~ ~he of
a ~ar~ may charge for a mobilehome space within such Dark upon or after a
event, es defined in Sect{on 798.13
(d) On or a~er the effective date of this Measure, no ~ark ren~ ccntrO)
Jaw shaJJ ~mpose any restriction on the amount of ren~ that the managemen¢ of
a ~ark may charge for a s~ace within such park which is a~ exempt space, as
defined in Section 798.13 (d). All shall be, for atl ~urDose~ on or after the
effective date of th)s Measure. exempt from any and al~ park rent
laws.
798.46.3 The State of California shall enact no statute or the
of, the maximum amount of management of a park
may charge for a space in a park. Any S~a~ute having U3at effec~ and
before or of this Measure shell be void and
SECTION 6: AMENDMENT OR REPEAL OF MEASURE
The provJs}ons of th~s Measure may ~e amende~ or repealed by ~he set
fo~h in this section. If any portion of ' ' [a) ' inval;d, then
(b) shell be the exclusive means of amending or repealing this title.
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I1 of i2 I~iAY 1 6 1995 ~T~.M 14
la) The provisions of this be amended to further its purposes tDy
statute, Ioassed ' by rollcall vote entered in the journal, of the
and signed by the Governor.
Ibl The provisions of this amended or repealed by a statute that
becomes effective only when approved by the electors.
SECTION 7: EFFECTIVE DATE
,'The of this Measure shall be the day a~ter the election, at ~-/h,ch it ;s
approved by the voters.
SECTION 8: CONS OF
The Measure shall be liberally construed to achieve ,.he IDurposes of this Measure
and to preserve its validity.
SECTION g: SE ¥
If any provision of this Measure, or the ~o any pa'son or
iS held invalid or void. such invalidity or voidness shall not affect othe, or
which can be given effect without the invalid Or void prows~on or
and to this end, all of the provisions of this Measure are declared to be
SECTION 10: ELECTORS' INTENTION IN THE EVENT OF PASSAGE OF POSSiBLF G MEASURES
In the event another Measure to be voted on by :he voters at the same ela~ction as
this Measure, and which a scheme, receives more
votes then this Measure, the electors intend that any provision o~ ' ' of
this Measure not in direct and a~Dl~aren: conflict with any provision or ' ' of another
Measure, sheii not be deemed to be in end shall be save:ed from any
other provision or provisions of this Measure which are in direct ancl apparent confiict with
the ' ' of another Measure. In such event, the ' ' snail be severed
according tO the provisions of Section 9 of this Measure upon to an}, court of
12 of 22 s 16 1995 ITEM