6.50.040 Residential rent increase limitations.
A. Except as provided in subsection D or E of this section, or otherwise expressly authorized in this chapter, the space rent payable for use or occupancy of any mobilehome space shall not be increased within twelve months of the effective date of the preceding rent increase. Except as provided in subsection F of this section or otherwise expressly authorized in this chapter, no initial rent increase shall be imposed sooner than twelve months after the last preceding rent increase regardless of whether the preceding rent increase was effective prior to the effective date of the ordinance codified in this chapter. Said increase shall be the lesser of:
1. Seventy percent of the percent change in the CPI; or
2. Four percent.
If the change in the CPI is negative, no rent increase is permitted.
B.
1. Notice by Clerk. The allowable rent increase shall be annually calculated by the clerk and posted by August 15th of each year or as soon thereafter as is reasonably practicable in the Petaluma City Hall and on the city’s website, and shall be provided to any mobilehome park owner or tenant who requests the annual rent increase limit.
2. Notice by Mobilehome Park Owners. A copy of the clerk’s notice of the allowable rent increase for that year shall be posted in a prominent place by each park owner in each mobilehome park or provided to the tenants within five working days after it is received by the mobilehome park owner.
C. An increase in a space rent pursuant to subsection A of this section may only be imposed upon registration of the mobilehome space in the city’s registry system, pursuant to Section 6.50.230, payment of the required annual rent stabilization administration fee pursuant to Section 6.50.170, and otherwise subject to and in compliance with all applicable requirements of this chapter and other applicable federal, state, and local laws and regulations.
D. If a park owner wishes to apportion to each space on a pro rata basis the allowable percentage of any current rent stabilization administration fee, in addition to any increase of space rent in accordance with subsection A of this section, the following provision shall apply:
1. The owner shall provide to all affected tenants documentation supporting the allowable amount to be collected in order to recover a portion of rent stabilization administration fees. At a minimum such documentation shall include: billing notices or other equivalent documents from the city imposing the rent stabilization administration fee; a copy of Section 6.50.170 which authorizes the apportionment of rent stabilization administration fees; and the calculations used by the owner to apportion the cost of the allowable percentage among the affected tenants. In addition, the owner shall provide all affected tenants with the address and telephone number of the clerk and the fact that affected tenants are encouraged to contact the clerk for an explanation of the provisions of this chapter.
2. A rent increase in accordance with the provisions of this subsection and the procedure set forth in Section 6.50.170 for applying a portion of the rent stabilization administrative fee shall not be considered part of the rent base upon which future rent increases can be made.
E. In the event an owner wishes to increase the rent payable for any mobilehome space within a twelve-month period in excess of the amount permitted in subsection A of this section for any reason other than that stated in subsection D of this section, the procedures set forth in Sections 6.50.050 and 6.50.060 shall be followed to establish why such an increase is necessary. The arbitrator may reduce the proposed increase to a figure (which may be zero) determined based upon the preponderance of the evidence submitted to be reasonably necessary to result in the park owner receiving a fair return upon investment.
F. A notice of rent increase given by an owner pursuant to subsection B, C or E of this section shall be given in writing at least ninety days before any rent increase is to take effect.
G. The initial rent increase as defined by Section 6.50.020(I) may be allowed within twelve months of the effective date of the preceding rent increase if the mobilehome park owner can clearly establish to an arbitrator based on the preponderance of the evidence submitted that extraordinary circumstances exist which require an increase to result in the mobilehome park owner receiving a fair and reasonable return. In the event an owner wishes to increase rent payable for any mobilehome space under this subsection, the procedures set forth in Sections 6.50.050 and 6.50.060 shall apply.
H. A mobilehome park owner who does not impose an annual rent increase or a portion of the permitted annual rent increase in any twelve-month period, as provided in this section, waives the permitted annual rent increase or the remaining portion of the permitted annual rent increase, for the remainder of the tenancy.
(Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1 (part), 1994.)