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A. Except as provided in subsections B and C of this section, the space rent payable for use or occupancy of any mobile home space shall not be increased, in any 12-month period, more than 75 percent of the percent change in the Consumer Price Index or three percent, whichever may be less. Any agreement purporting to allow a rent increase greater than what is allowed under this subsection shall be void and unenforceable as against public policy, except such lease agreements exempt from this chapter pursuant to California Civil Code Section 798.17.

B. 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 SMC 9.28.170, 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 the affected tenant is encouraged to contact the Clerk for an explanation of the provisions of this chapter.

2. A rent increase approved pursuant to the provisions of this subsection and in accordance with the procedure set forth in SMC 9.28.070 shall not be considered part of the rent base upon which future rent increases can be made.

C. In the event an owner wishes to increase the rent payable for any mobile home space within a 12-month period more than the amount permitted in subsection A of this section for any reason other than that stated in subsection B of this section, the procedures set forth in SMC 9.28.060 and 9.28.070 shall be followed. In the event an owner wishes to increase the rent payable for any mobile home space within a 12-month period more than 300 percent of the percent change in the Consumer Price Index, a mandatory meet-and-confer meeting and arbitration shall be automatically required to show good cause why such an increase is necessary. The arbitrator may reduce this proposed increase to a figure determined upon the evidence submitted by the park owner or his representative to be a fair return upon investment.

D. A notice of rent increase given by an owner pursuant to subsection A, B or C of this section shall be given in writing at least 90 days before any rent increase is to take effect.

E. A notice of rent increase incorporating within it a proposed capital improvement which is not otherwise authorized as a pass-through pursuant to Civil Code Section 798.49 must be claimed within 12 months of the completion of the project, construction or final billing. (Ord. 1148 § 2, 2023)