9.28.110 Standards of review.
In evaluating the space increase proposed or imposed by the owner, the following factors may be considered:
A. Beneficial increases in maintenance and operating expenses, 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 SMC 9.28.050(B) and 9.28.170.
B. The substantial rehabilitation of 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; and
6. Does not constitute maintenance of the infrastructure of gas or electrical lines within the mobile home 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 mobile home park.
C. Increased costs of debt service due to a sale or involuntary refinancing of the park within 12 months of the increase; provided, that:
1. The sale or refinancing is found to have been an arm’s length transaction;
2. The proceeds of such refinancing is found to have been used for park improvements or similar park-related uses;
3. The aggregate amount from which total debt service costs arise constitutes no more than 70 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; and
3. The occupancy rate of the park in comparison to comparable parks in the same general area.
E. The physical condition of the mobile home space or park of which it is a part, including the quantity and quality of maintenance and repairs performed during the preceding 12 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” defined in SMC 9.28.120(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.