What is the rent control law in Santee?
The City of Santee passed Ordinance No. 412 in 2001, which replaced a 1998 ordinance (No. 381). Ordinance No. 412 was later revised by a 2004 court decision in MHC Financing Limited Partnership Two v. City of Santee (125 Cal.App.4th 1372). The current text of Ordinance No. 412, the Manufactured Home Fair Practices Ordinance, can be downloaded here.
Are all mobile home park spaces subject to rent control?
No. Pursuant to both the Mobile Home Residency Law (MRL) and the city ordinance, the rent control provisions in the ordinance do not apply to spaces that are governed by a lease that exceeds 12 months. Leases of a term less than 12 months, including month-to-month rental agreements, are subject to this rent control ordinance.
How much can my rent be increased under the ordinance?
This calculation can be complex, so I will answer the question in stages.
Initial Adjustment:
December 31, 1989 was the “Space Rent Ceiling Date.” Park owners were entitled an increase in space rent equal to 100% of the annual Consumer Price Index (CPI) from December 31, 1989 through September 1, 1994. (If at that time a park owner believed he would not receive a “just and reasonable net operating income,” the law included a process by which the park owner could apply for an additional adjustment of the space rent ceiling to bring his base year net operating income in line with the annual CPI.)
Annual Adjustments:
Beginning September 1, 1995, annual space rent increases were limited to 100% of the CPI when the CPI was 5% or less, plus 70% of any portion of the CPI that was greater than 5%.
Beginning January 1, 1998, the annual rental increases were reduced even further, which continues today. Annual rent increases are limited to 70% of the CPI when the CPI is 3% or less, plus 40% of the portion of the CPI between 3% and 8%.
If a space was exempt from rent control because it was subject to a lease exceeding 12 months, then the new space rent ceiling is the space rent in effect at the expiration of the agreement.
What about utilities and other charges?
Charges for utility services including gas, electricity, water, trash or sewer are not subject to the rent control provisions, provided they are billed separately from the space rent and are limited to the actual value of the utility services provided to the individual residence.
Do park-owned coaches fall under rent control?
Yes and no. The park owner must separate out the portion of rent allocated to the coach vs. the space. Rent charged for the coach is not subject to rent control, while the portion allocated to the space is.
What if my space was exempt because it was covered by a lease longer than 12 months?
When that rental agreement expires, the new space rent ceiling for that space is equal to the rent in effect on the expiration date of the agreement.
What if the park decreases the level of services or maintenance?
If services or maintenance are reduced, homeowners may file an application for a rent reduction with the Santee Manufactured Home Fair Practices Commission. Rent may be adjusted by an amount proportionate to the reduction in services or maintenance.
Can a park require me to sign a long-term lease that is exempt from Santee’s rent control ordinance?
Absolutely not! Under the MRL, a park may only withhold approval of a prospective tenant for 1) inability to pay the rent, or 2) a pattern of behavior in prior tenancies that indicates the applicant will not follow the park’s rules and regulations. Furthermore, the city ordinance explicitly states that it is unlawful for a park owner or manager to “discriminate against any home owner because of the home owner’s exercise of any right sunder this chapter,” or “to discriminate against any purchaser or prospective purchaser of a mobilehome because of a purchaser’s or prospective purchaser’s choice to enter into a rental agreement subject to the provisions” of the rent control ordinance.
How can I find out what my home’s “space rent ceiling” was, or check the historical increases under the rent control ordinance?
Contact Joyce Easley, Housing Coordinator at the City of Santee, at jeasley@ci.santee.ca.us. These documents are public records that are available for a nominal copy charge.
Monday, August 27, 2007
FAQs: Santee and Rent Control
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1 comment:
People who are new to mobilehome living are generally unaware of the rules, both statewide and in Santee, especially of the rent control laws. In discussions with new neighbors, even though they are given a large packet of papers with a lot of state MRL info which contains the rent control info, they are not given any of the Santee MH laws. They also generally do not employ an attotney or read the content of the MRL to the point where they understand it. Real estate agents also have been woefully unaware or unwilling (loss of commission?) to inform buyers of their rights. I have met a number of new neighbors who not only were upset that they were not informed by management and/or realtors that a month-to-month lease was available, but the few who were aware of it were denied entry to the park. One woman was told a month-to-month lease did not exist. The management was allowed to get away with that because the people who were denied were neither willing nor able to take the time and money to go to court over the issue. A simple and effective method of breaking the law. Find people who can't afford to fight back. The folks at SMOAC tried to help but there is only so much they can do without support. To add insult to injury, when the sale fell through, the homeowners got an offer from the park owner to buy their coach for half-price!
The only solution I see to this is that the current rule that prospective tenants must meet with management before buying a home could also be extended that they must meet with the HOA, or at least have the additional Santee MH rules supplied and an explanation that they are entitled to move in without signing a lease in big bold letters. Informing realtors that they must inform buyers of their options would also help. There could be a packet of info put together that should be delivered to each agent that puts a for sale sign up. And after the sale, check with the new tennants to make sure they got it. The park owner does not want people on rent control and it is not in their best interest to offer short or monthly leases.
My new neighbors were upset that they were not offered a month-to-month lease, they were even more upset when they realized that my yearly rent increases (I am not on a lease) were typically lower than thiers. But this is a situation that has existed for a long time and will continue to until people band together to share information and push for reform.
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