09-21-2004 CC RPT 14 - Laserfiche WebLink

Home

City of Riverside City Council Memorandum People Serving People HONORABLE MAYOR AND CITY COUNCIL DATE: September 21, 2004 ITEM NO: 14 SUBJECT: Mobile Home Park Rent Stabilization-Annual Public Hearing BACKGROUND: Section 5.75.080 of the Riverside Municipal Code requires that each September an annual report be made by the City Manager and a public hearing held regarding the activities undertaken with respect to the Mobile Home Ordinance during the prior twelve-month period. In the last 12-month period, no matters were scheduled before the Mobile Home Rent Review Hearing Board. However, staff has answered questions regarding the Consumer Price Index (CPI) as it relates to maximum rent increases and we have also provided interpretations of the Municipal Code as it applies to tenant/owner inquiries, particularly in relation to capital improvement pass-through. Specific inquiries were related to increases at Meadows, Mission Village, and Village Riverside Home Parks, most of which were found to be within code with a few matters pending further review. Rent increases are allowed for certain items under the City ordinance, provided that they meet the defined criteria. Specifically, Section 5.75.040 of the RMC allows annual increases in rent each calendar year: 1) for up to 80% of the change in the CPI for the year ending August 31, 2004; 2) Changes in property taxes or government mandated costs in excess of two percent per year; 3) capital improvements to existing facilities; 4) increases in state inspection fees; 5) rent increases associated with sale of a space. For information purposes, the increase in the CPI for the year ending August 31, 2004 is 3.3%. Therefore, the maximum allowable rent increase associated with the CPI in 2005 is 2.6%. Park owners are allowed to pass on the CPI adjustment once each calendar year, with a 90 days notice to residents. Therefore, rent increases may go into effect no earlier than January 1,2005. As a courtesy, staff generally notifies owners and tenants on record of the maximum allowable increase following the public hearing in September. We recommend that this practice continue. 14-1