6.50.100 Standards of review.
In evaluating a space rent increase proposed by an owner that is in excess of the rent permitted in accordance with Section 6.50.040(A), the arbitrator may consider the following factors or any other factors deemed relevant by the arbitrator in determining whether the proposed space rent increase is reasonably necessary based on the preponderance of the evidence to provide the owner a reasonable return in accordance with Section 6.50.060 and other applicable provisions of this chapter:
A. Increases in maintenance and operating expenses directly benefitting the tenants, including but not limited to the reasonable value of the owner’s labor and any increased costs for services provided by a public agency, public utility, or quasi-public agency or utility; provided, however, that any increased costs in rent stabilization administration fees shall be subject to the provisions of Sections 6.50.040(D) and 6.50.170.
B. The substantial rehabilitation or the addition of capital improvements, including the reasonable value of the owner’s labor, as long as such rehabilitation or improvement has been completed and is:
1. Distinguished from ordinary repair or maintenance;
2. For the primary benefit, use, and enjoyment of the tenants;
3. Permanently fixed in place or relatively immobile and dedicated to the use of the property;
4. Not coin-operated nor one for which a "use fee" or other charge is imposed on tenants for its use;
5. Cost-factored and amortized over the good faith estimate of the remaining useful life of the rehabilitation or improvement;
6. Does not constitute maintenance of the infrastructure of gas or electrical lines within the mobilehome park for which the public utility has permitted the park owner a special premium with the intent that it be used to replace or otherwise maintain the system within the mobilehome park.
C. Increased costs of debt service due to a sale or refinancing of the park within twelve months of the increases; provided, that:
1. The sale or refinancing is found to have been an arm’s length transaction;
2. The proceeds of such purchase money loan or refinancing are found to have been used for park improvements or similar park-related uses that are of direct benefit to the tenants, and not merely incurred to fund the owner’s purchase or refinancing of the park;
3. The aggregate amount from which total debt service costs arise constitutes no more than seventy percent of the value of the property as established by a lender’s appraisal.
D. The rental history of the space or the park of which it is a part, including:
1. The presence or absence of past increases;
2. The frequency of past rent increases;
3. The occupancy rate of the park in comparison to comparable parks in the same general area.
E. The physical condition of the mobilehome space or park of which it is a part, including the quantity and quality of maintenance and repairs performed during the preceding twelve months.
F. Any increase or reduction of housing services since the last rent increase.
G. Existing space rents for comparable spaces in comparable parks.
H. A decrease in "net operating income" as defined in Section 6.50.110(A).
I. A fair return on the property prorated among the spaces of the park.
J. Other financial information which the owner is willing to provide.
K. Any costs incurred as a result of a natural disaster and only to the extent such costs have not been reimbursed to the owner by insurance or other sources.
L. Notwithstanding any other provision to the contrary, no provision of this section or this chapter shall be applied to prohibit the granting of a rent increase that is demonstrated to be necessary to provide an owner with a fair and reasonable return.
(Ord. 2857 NCS §3 (Exh. A), 2023; Ord. 1949 NCS §1 (part), 1994.)