6.50.060 The rent dispute resolution process

6.50.060 The rent dispute resolution process.

A. Tenant’s Right to Contact Clerk. Tenants may contact the clerk for an explanation of the provisions of this chapter.

B. Petition. If an owner seeks to increase space rent above the rent authorized by Section 6.50.040(A), the owner or their representative must file with the clerk a petition for space rent review and a copy of the notice of rent increase within twenty-one days after the date upon which the rent increase notice is received. Upon the filing of a petition, the rent increase is not effective and may not be collected until and only to the extent it is awarded by an arbitrator or until the petition is abandoned except for that portion of the rent increase permitted pursuant to Section 6.50.040(A). As used herein, the term "abandoned" refers to lack of prosecution of the arbitration by the owner or owner’s representative(s).

1. Petitions for space rent review must set forth the total number of affected rented spaces in the mobilehome park, identify the space occupied by each tenant and state the date upon which the notice of the rent increase was received by the tenant(s) and include all other information specified in the official petition form as prepared and provided by the clerk.

2. The owner shall deliver the petition or mail it by registered or certified mail to the clerk at the following address: Petaluma City Hall, 11 English Street, Petaluma, California 94952 (or successor address or agency). No petition shall be accepted unless it is complete and is received in the office of the clerk within the twenty-one-day period set forth in subsection B of this section. The owner shall provide a copy of the completed petition form to the arbitrator, and the service providers specified in the petition form within seven working days of filing the petition with the city.

D. Information Questionnaire. After the clerk has accepted a petition for space rent review, the clerk shall remit to the owner and tenants an information questionnaire in such form as the clerk may prescribe. The petitioning owner and affected tenants must return the completed information questionnaire to the clerk at least five working days prior to the date scheduled for the arbitration hearing. The clerk will provide copies of the completed information questionnaires to the owner, the affected tenants and the arbitrator.

E. Assignment of Arbitrator and Hearing Date. Upon receipt of a rent review petition or upon an affected tenant’s claim of a vacancy control violation where an unauthorized rent increase has been sought, or upon an owner’s request to adjust the initial base rent pursuant to Section 6.50.030(B), the clerk shall, within seven working days, assign an arbitrator. The clerk shall set a date for the arbitration hearing no sooner than fourteen days nor later than sixty working days after the arbitrator is assigned; except that no arbitration hearing shall be set in December except in cases of exceptional, unforeseen circumstances upon a showing of good cause by the petitioning owner as determined in the sole discretion of the arbitrator. The owner and affected tenant(s) shall be notified immediately in writing by the clerk of the date, time, and place of the hearing and this notice shall be served electronically and either in person or by ordinary mail. The arbitrator may grant or order one continuance each not to exceed fifteen days from the hearing date set by the clerk to the petitioning owner and affected tenants. The arbitrator may grant further continuances that are stipulated to by the petitioning owner and the affected tenants.

F. Meet and Confer. At least ten days before the date of an arbitration hearing, affected mobilehome tenants and mobilehome park owners and/or their representatives shall meet and confer. The time, place and date of the meeting shall be agreed to by the parties to the arbitration or, if the parties cannot agree, shall be determined by the clerk. At the meeting, the parties and/or their representatives shall exchange the documentary evidence that they in good faith then know will be used to support their respective positions in the arbitration, and discuss the issues in dispute. In the case of an owner, all financial data upon which any proposed increase is claimed shall be supplied to affected tenants at the meet and confer meeting. The parties may request that the clerk provide a mediator, applying the proceeds of the fees collected pursuant to Section 6.50.170, to assist with the meet and confer meeting. The arbitrator may deny a proposed rent increase based on the petitioning owner’s failure to participate in good faith in the meet and confer process, or may rule as to the admissibility or inadmissibility in the arbitration of information not provided in the meet and confer meeting as required.

1. In any arbitration pursuant to this chapter there shall be a rebuttable presumption that the annual net operating income earned by a mobilehome park owner and rent increases permitted in accordance with Section 6.50.040(A) provide the mobilehome park owner with a reasonable return. Mobilehome park owners shall bear the burden to prove to the arbitrator based upon the preponderance of the evidence the reasonable necessity of any rent increase sought in addition to that permitted pursuant to Section 6.50.040(A) to earn a reasonable return.

2. The owner and tenant(s) may appear at the hearing and offer oral and documentary evidence. Both the owner and tenant(s) may designate a representative or representatives to appear for them at the hearing. The hearing need not be conducted according to technical rules relating to evidence and witnesses. The rules of evidence and manner of producing evidence shall be those rules set forth in California Government Code Section 11513 for the conduct of hearing under the Administrative Procedure Act. These rules may be relaxed at the discretion of the arbitrator in the interest of justice.

3. The arbitrator shall, within fourteen days of the hearing, submit by mail and electronic mail a written statement of decision and the reasons for the decision to the clerk who shall forthwith distribute by mail and electronic mail copies of the decision to the owner and affected tenant(s). The arbitrator’s statement of decision shall set forth the amount of rent increase, if any, in excess of that permitted in accordance with Section 6.50.040(A), that is reasonably necessary to provide the owner a reasonable return in accordance with subsection (G)(1) of this section and other applicable provisions of this chapter and other applicable laws and regulations.

4. An arbitrator shall not allow more than one rent increase per park per twelve-month period unless the owner clearly establishes based on the preponderance of the evidence that a subsequent rent increase is necessary to cover costs of operation, maintenance, capital improvements or substantial rehabilitation not reasonably foreseeable at the time notice of the preceding rent increase was given so as to obtain a reasonable return.

5. The decision of the arbitrator, rendered in accordance with this section, shall be final and binding upon the owner and all affected tenants. The decision of the arbitrator will be subject to the provisions of California Code of Civil Procedure Section 1094.5.

6. Any party may have electronic recording equipment or a court reporter present to record and prepare a transcript of the hearing before the arbitrator; however, such equipment or reporter shall be provided at that party’s own expense, and no electronic equipment or court reporter is required to conduct the arbitration.

7. The arbitrator is authorized to modify the time periods set forth in this chapter at their discretion to promote the purposes of this chapter provided a final decision is rendered within ninety days of the notice of proposed rent increase.

8. Any procedural or jurisdictional dispute regarding the proceedings set forth in this section may be decided by the arbitrator.

(Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1 (part), 1994.)