FOR THE COUNCIL MEETING OF JUNE 7, 2022
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Assistant City Manager
SUBJECT: MOBILE HOME MODEL LEASE
RECOMMENDATION:
Receive and file a staff presentation on the background of the mobile home model lease and hear public input on the matter.
BACKGROUND:
In 1999, the City Council was asked to adopt a rent control ordinance. The City Council declined and determined that the City should facilitate the creation of a 10 -year Model Lease. In the July 6, 1999, staff report, the City Attorney pointed out that mobile home rent control had been considered by the City Council in 1981, 1982, 1984, and 1990, with the City Council declining to enact such a measure. The 1999 Model Lease was voluntary and consisted of 4 paragraphs that the park owners agreed to place in long-term leases.
In 2009, the City facilitated the negotiation of the 2009 Model Lease, which had a 10 -year term. The 2009 Model Lease was based upon the lease proposals of Casa Grande, Rancho Buena Vista, and Casa Del Rio leases.
In 2018, the City Council directed the City Manager and City Attorney to facilitate a new 10 -year Model Lease. At that time, the park residents, through various representatives, requested that the Model Lease be enforceable, as opposed to voluntary.
In 2019, the park owners, residents, representatives, and City staff met formally five times, with planned agenda meetings to discuss and agree upon model lease terms. The 2019 Agreement for Enforcement of Model Lease 2020 was adopted by City Council on November 19, 2019. Subsequently, 6 mobile home park owners have signed on to the Agreement for Enforcement of Model Lease 2020, which represents 79 percent of the 1,558 mobile home spaces in 14 mobile home parks in the City. There has been one issue related to model lease enforcement, where a mobile home resident was not offered the model lease and who subsequently declined the model lease in favor of the landlord's lease.
Terms of the 2020 Model Lease:
- Enforceable
Annual Rent Adjustment- based on 100 percent of the Bureau of Labor Statistics Consumer Price Index for All Urban Consumers, can be no more than 6 percent of previous rent regardless of the index, plus a percentage of Capital Expenditures Set deposit of one month's rent
Upon sale or transfer, rent can only be increased by up to 7.5 percent and only every five years, regardless of the number of sales during the timeframe At tonight's meeting, the City Council is hearing a historical overview of the Model Lease program and hearing public comment on the matter.
DISCUSSION:
Since its adoption in 2019, the Agreement for Enforcement of Model Lease 2020 has been in use by six mobile home parks. Additionally, the City has explored the following impacts of rent control/rent stabilization:
Financial Impacts: The Model Lease is cost-effective and allows for existing resources to support mobile home residents. In order to do more than facilitate and enforce, the City would have to develop and implement rent control/rent stabilization, which would require outside consulting to develop a program and policy, as well as additional staffing to comply with State and Federal provisions.
Based on comparison to other communities that have recently established rent control/rent stabilization, the cost is estimated at $200,000 one-time and more than $175,000 for staffing, and ongoing. Additionally, the City staff workload would increase due to requirements of such an ordinance (e.g. litigation), on the order of 40-100 staff hours.
Community Impacts: The Model Lease is a cost-effective way for the City to support mobile homeowners, as well as participate in and help maintain tenant - landlord relations while remaining in an enforcement role.
ANDREW HA AN
Assistant City Manager
2 LEASE AGREEMENT
THIS LEASE SHALL BE EXEMPT FROM ANY ORDINANCE, RULE, REGULATION,
OR INITIATIVE MEASURE ADOPTED BY ANY LOCAL GOVERNMENTAL ENTITY
WHICH ESTABLISHES A MAXIMUM AMOUNT THAT A LANDLORD MAY CHARGE A TENANT FOR RENT.
This Lease Agreement ("Lease") is made and executed this day of 20 by and between
("Owner"), and , jointly and severally
("Resident").
1. Leased Premises. Owner hereby leases to Resident, and Resident hereby leases from Owner, that certain Space ("Space"), situated in ("Park").
2. Term. The initial term of this Lease shall be five (5) or ten (10) years, commencing 20_, and terminating
, 20 . In the event that the term of this Lease commences on any day other than the first day of the month, the rent for the partial month shall be prorated on the basis of a thirty (30) day month, and the prorated amount shall be paid promptly by Resident to Owner.
3. Rent and Security Deposit.
A. Minimum Guaranteed Monthly Rent. Resident shall pay to Owner as rent, without deduction, setoff, prior notice or demand, the sum of $ ("Minimum Guaranteed Monthly Rent"). Said Minimum Guaranteed Monthly Rent shall be due and payable on the first day of each month of the Lease term. The Minimum Guaranteed Monthly Rent under this Lease shall be the amount due as rent as of the last date of the previous lease, together with the annual Consumer Price Index adjustment as set forth below.
The Minimum Guaranteed Monthly Rent may be adjusted on each anniversary of the Lease according to the following formula: The adjustment shall be calculated based upon one hundred (100) percent of the "United States Bureau of Labor Statistics Consumer Price Index for All Urban Consumers," as published for the B and C Class of City for the Western States index ("Index"). The annual adjustment shall be no less than two and one half percent (2.5%) of the previous rent, and no more than six percent (6.0%) of the previous rent, regardless of the amount of the Index, if more than six (6) percent. Owner's failure to notify Resident in a timely manner of an adjustment to the Minimum Guaranteed Monthly Rent shall not preclude Owner from notifying Resident thereof at a later date and collecting the increase in the rent from the date of the notice to Resident. All rent shall be paid at the Park office, or such other place as Owner may designate in writing.
Model 4ese 2019
An additional adjustment shall be made each January 1 during the term of the Lease, to reflect 1/12 of 1/ [insert number of spaces in park] of any government mandated or non -government mandated capital expenditures assessed against or applicable to the Park or the Space, including, but not limited to, any increase in real estate taxes in excess of two percent (2.0%) over the prior year's real estate taxes, all government mandated capital expenditures, capital expenditures required by the Park's insurance company and/or lender, capital expenditures over Ten Thousand Dollars ($10,000.00) that are not government mandated but are approved by the residents, and capital expenditures equal to or under Ten Thousand Dollars ($10,000.00) that are not government mandated, whether approved by the residents or not.
Capital expenditures shall be characterized by Owner's accountant in accordance with sound accounting principles and the Internal Revenue Code, and shall not include items of repair or maintenance. "Capital Expenditure" means any capital outlay or project with a useful life of at least one (1) year that provides a betterment or addition to the Park, including the replacement of a component part of an asset by an improved or superior asset resulting in a more productive, efficient and longer -lived property. "Betterment" is considered capital outlay when it is "significant," i.e., generally twenty percent (20.0%) or greater of the market value of the component part of the asset. "Maintenance" means any expenditure for repair or alteration to a facility, which neither materially adds to the value of the facility, nor appreciably prolongs its life. Maintenance expenses shall not be passed through or charged back to Resident.
Those Capital Expenditures deemed necessary by Owner that are not mandated by a governmental agency and cost over Ten Thousand Dollars ($10,000.00) shall only have the balance over Ten Thousand Dollars ($10,000.00) charged back to Resident if the Capital Expenditure was approved by a majority vote of the residents (one vote per space) before it was charged back. Should a majority of the residents not approve a Capital Expenditure costing over Ten Thousand Dollars ($10,000.00), Resident shall pay as additional monthly rent during the useful life of the Capital Expenditure an amount equal to 1/12 of 1/ [insert number of spaces in park] of the first Ten Thousand Dollars ($10,000.00) of the cost of the Capital Expenditure's annual depreciation, calculated using a straight line method of depreciation as determined by Owner's accountant. Except for Capital Expenditures approved by a majority of the residents, only one (1) non -government mandated Capital Expenditure may be passed through to the residents in any calendar year.
As used herein, "real estate tax" shall include, but not be limited to, all assessments, whether regular or special, and all other items, including, but not limited to, sewer charges reflected on a real estate tax bill, or similar bill, prepared by the Santa Barbara County Tax Assessor.
In addition to the Minimum Guaranteed Monthly Rent or Adjusted Minimum Guaranteed Monthly Rent, Resident shall pay vehicle and recreational vehicle storage charges by separate agreement, if facilities for such storage are provided by Owner.
2 Model lent 2019
B. Security Deposit. Upon initial occupancy in the Park, at Owner's option, Resident shall deposit with Owner the sum of one (1) month's rent as a security deposit for the performance by Resident of the provisions of this Lease. If Resident defaults on the Lease, Owner may use the security deposit, or any portion thereof, to cure the default or compensate Owner for any damage sustained as a result of the default.
Resident shall, immediately upon demand, pay to Owner a sum equal to the portion of the security deposit used by Owner as provided in this paragraph, so as to maintain the security deposit in the sum initially deposited with Owner. If Resident is not, upon the expiration or termination of this Lease, in default, Owner shall return the security deposit to Resident. Owner's obligation with respect to the security deposit is that of a debtor and not a trustee. Owner may maintain the security deposit separate and apart from Owner's general funds, or may co -mingle the security deposit with Owner's general and other funds. Owner shall not be required to pay Resident interest on the security deposit. If Resident pays all rent, utilities and reasonable service charges owing to Owner within five (5) days of the date such amounts are due for any consecutive twelve (12) month period, or upon resale of the mobile home, whichever is earlier, and makes a written request for return of the security deposit, the security deposit shall be returned to Resident within thirty (30) days following the end of the twelve (12) month period, or the date of resale of the mobile home.
4. Utilities.
[list those utilities that are included in rent and/or paid to the park] Resident shall contract with and pay directly to the applicable providers the costs of all other utilities required by Resident. If Resident fails to pay any utility costs and such failure results in a lien being placed on Owner's property, the amount owing shall be added to Resident's monthly statement, as additional monthly rent, and shall be paid by Resident upon receipt thereof. Resident shall contact the appropriate providers to commence service. Owner shall not be liable for, and Resident shall not be entitled to, any abatement or reduction of rent by reason of any failure to furnish any of the foregoing utilities, when such failure is caused by accident, breakage, repair, strikes, lockouts or other labor disputes of any nature, any force majeure, or by any other cause, similar or dissimilar, beyond the reasonable control of Owner. Owner shall not be liable under any circumstances for loss of or injury to property, however occurring, through or in connection with or incidental to any failure to furnish any of the foregoing utilities, with the exception of willful misconduct or gross negligence of Owner. Resident shall not connect, except through existing electrical outlets, natural gas or water pipes on the Space, any apparatus or device for the purpose of using electricity, natural gas or water.
5. Maintenance. Resident shall keep and maintain the Space, and every part thereof, in first class repair and condition. The Park may charge a reasonable fee, which shall be additional rent, for services relating to the maintenance of the Space in the event that Resident fails to maintain it in accordance with the Park's Rules and Regulations and the other Park documents. The Park may charge the fee only after it has notified Resident in writing of such failure and Resident has not complied within 3 Model Lease 2019
fourteen (14) calendar days. The written notice shall state the specific condition to be corrected, and an estimate of the fee to be charged if Resident does not correct the condition and the Park or its agents do so.
6. Late Charges. Resident acknowledges that late payment by Resident to Owner of the Minimum Guaranteed Monthly Rent or Adjusted Minimum Guaranteed Monthly Rent will cause Owner to incur costs not contemplated by this Lease, the exact amount of such costs being extremely difficult and impracticable to fix. Such costs include, without limitation, processing and accounting charges and the late charges that may be imposed on Owner by the terms of any encumbrance and/or note secured by any encumbrance covering the Space. Therefore, if any payment due from Resident is not received by Owner within five (5) calendar days of its due date, Resident shall pay to Owner an additional sum of [insert flat amount or percentage of overdue payment] as a late charge, which shall be additional monthly rent. The parties agree that this late charge represents a fair and reasonable estimate of the costs Owner will incur by reason of late payment by Resident, and that acceptance of any late payment or late charge shall not constitute a waiver of Resident's default with respect to the overdue amount, nor prevent Owner from exercising any of the other rights and remedies available to Owner. Additionally, there will be a $ [insert amount] handling charge for all checks dishonored by Residents bank for any reason.
7. Default and Owner's Remedies. Resident shall be in default and in breach of this Lease if Resident does not pay the monthly rent when the same becomes due, or does not pay any other charge for which Resident is liable when the same becomes due, or if Resident fails to cure a breach of any other term of this Lease, including the documents incorporated herein, after receipt of notice from Owner of the nature of the breach. Upon default, Owner shall have all remedies available under this Lease and the then -applicable California law. Such remedies include, but are not limited to, the filing of a complaint for unlawful detainer, which will go to trial within twenty (20) days of the Park's filing of a request to set for trial, and which may be followed by an eviction by the Sheriffs Department within five (5) calendar days of entry of judgment and issuance of a writ of possession. Judgment will include all past due rent, utilities and other charges, holdover rent, utilities and other charges, and the Park's attorneys fees and costs as ordered by the court
8. Owner's Lien. The Park may assert a lien on Resident's mobile home, if any, pursuant to Civil Code Section 798.38, as it may be revised from time to time.
9. Abandonment Prohibited. Resident shall not abandon the Space at any time during the term of this Lease. Abandonment is defined as a failure to occupy the Space, and a failure to pay rent on the Space for at least sixty (60) days, without giving written notice to Owner of an intention not to occupy the Space for such a period. Should Resident abandon the Space, Resident shall not be relieved of any of the obligations under this Lease, including, but not limited to, the obligation to make timely rent payments. 4 Model Leese 2019
10. Owner's Right of Entry. Resident shall permit Owner, or its authorized agents, to enter upon the Space for the purposes listed in Civil Code Section 798.26. To the extent possible, such entry shall not be in a manner or at a time that would unreasonably interfere with Resident's quiet enjoyment of the Space. Owner may enter Resident's mobile home or enclosed accessory structure without Resident's prior written consent in case of an emergency or when Resident has abandoned the mobile home or accessory structure.
11. Age Restrictions and [delete the foregoing if not a senior park] Prohibited Uses. The Park is for seniors only. The age restrictions applicable to all residents are stated in the Park's Rules and Regulations. [delete the foregoing two sentences if not a senior park]
Resident shall not use or permit the Space, or any part thereof, to be used for any purpose other than a residence for the persons named herein, all of whom must comply with all duties and obligations imposed upon Resident hereunder respecting the use and occupancy of the Park and the Space. No other persons may reside at the Space without the prior written permission of Owner, which shall not be unreasonably withheld.
Written permission is required from Owner for guests visiting longer than twenty (20) consecutive days or a total of thirty (30) days in a calendar year, and such guests may be charged a guest fee.
In order to comply with Department of Housing and Community Development requirements, Resident must provide the Park with a copy of the most recent registration on his or her mobile home.
12. Indemnification. Resident hereby waives all claims against Owner for any damage or injury to Resident or Resident's property occurring on the Space or in the Park at any time arising by reason of any cause other than the negligence, gross negligence or willful misconduct of Owner or its employees. Resident hereby agrees to indemnify, defend, protect and hold Owner harmless from liability for Resident's failure to properly repair and maintain the mobile home and the Space, or the negligence of Resident, any person residing with Resident, or Resident's guests. Resident shall pay immediately upon written demand from Owner for any damage to the Space or the Park caused by Resident, any person residing with Resident, or Resident's guests.
13. Insurance. Resident understands and hereby acknowledges that Owner does not provide insurance for damage to or loss of Resident's mobile home, accessory structures, household goods, furnishings or other personal property. Resident must obtain such insurance in an amount equal to the value of those items. Such insurance shall include, but not be limited to, liability coverage of not less than One Hundred Thousand Dollars ($100,000.00) for bodily injury and property damage occurring on the Space as a result of the negligence of Resident, any person residing with Resident, or Resident's guests. Resident shall be solely liable for Resident's failure to maintain such insurance.
5 Model Leese 2019
14. Attorney's Fees. In the event of any dispute arising out of or in any way related to this Lease, including the interpretation or enforcement thereof, the prevailing party in such dispute shall be entitled to reimbursement for its actual attorney's fees, if reasonable, and all other costs of such dispute actually and necessarily incurred, including fees and costs incurred. This agreement is made for the benefit of the Owner, Resident, and by extension the City of Santa Maria. The City may enforce any provisions provided herein as an express third party beneficiary of this agreement.
15. Waiver by Owner. The waiver by Owner, or any failure of Owner to take action for breach of any term, covenant or condition in this Lease, shall not be deemed a waiver of such term, covenant or condition, or subsequent breach thereof, or any term, covenant or condition herein. The subsequent acceptance of rent by Owner shall not be deemed to be a waiver of any preceding breach by Resident of any term, covenant or condition in the Lease, other than the failure of Resident to pay the particular rent so accepted, regardless of Owner's knowledge of such preceding breach at the time of accepting such rent.
16. Holding Over. Any holding over after the expiration of the term of this Lease shall be construed to be a tenancy from month to month at the monthly rental as adjusted in accordance with the terms of this Lease, and shall otherwise be on the terms and conditions herein specified so far as applicable. Notwithstanding the foregoing, the amount of rent due for such period of holding over may be altered in accordance with the terms of the Mobile home Residency Law, Civil Code Section 798, et seq. ("Mobile home Residency Law").
17. Sale. Increase upon Sale or Transfer and Subletting. Resident may sell Residents mobile home at any time pursuant to the rights and obligations of Resident and Owner under California law. Resident must, however, give Owner sixty (60) days' written notice of Resident's intent to vacate his or her tenancy and allow his or her mobile home to remain in the Park. One purpose of the notice is to enable the Park to schedule and perform an inspection upon sale pursuant to Civil Code Section 798.73.5. If a prospective buyer of the mobile home intends for the mobile home to remain in the Park, said prospective buyer must (1) complete an application for residency; (2) be approved for residency by Owner, including being in compliance with the Park's age restrictions, as stated at Paragraph 11 above and in the Park's Rules and Regulations [delete after "Owner" if not a senior park]; (3) execute a lease agreement; and (4) execute and deliver to Owner copies of the documents listed at Paragraph 23 below, all of which are incorporated by reference as though fully set forth herein.
Upon any sale or transfer of Resident's mobile home to any person other than an immediate family member, defined as Residents parents or children, the Minimum Guaranteed Monthly Rent or Adjusted Minimum Guaranteed Monthly Rent may be increased by up to seven and one half percent (7.5%) but in no event shall it exceed seven and one half percent (7.5%). An adjustment on sale may only be made once every five (5) years, regardless of the number of sales which occur during that time frame, if this lease is for a term of more than five years. The rent will not be 6 Model lease 2019
increased upon any transfer to Residents immediate family members, but such persons must meet the residency requirements if they wish to reside in the Park, and the rent will be increased when such persons sell the mobile home to a person who is not an immediate family member. All other terms of the lease agreement between the Park and the buyer shall not differ substantially from the terms of this Lease. [Insert whether subletting is allowed only as required by Civil Code Section 798.23.5 or under additional circumstances]
18. Responsibility of Owner. In addition to the utilities specified above as provided by Owner, if any, Resident shall enjoy for so long as this Lease shall remain in effect and Resident shall not be in default hereof, the non-exclusive use of the common areas of the Park, including, without limitation, all streets, drives and non -restricted parking areas, all recreational facilities, buildings, pools (except as prohibited by law), and all conveniences. [revise as applicable] Resident's use of all such services and facilities shall be limited and restricted as specified in this Lease and by the Park's Rules and Regulations as legally adopted from time to time. Except as otherwise provided herein, Owner agrees to provide and maintain these common areas in good working order and condition, and to continue such services and facilities without addition, alteration, depletion of services, equipment or physical improvements for the period of Resident's occupancy of the Space, except to the extent that Owner is prevented from doing so by good cause, accident, breakage, repairs, strikes, lockouts or other labor disturbances of any nature, force majeure, or by any other cause, similar or dissimilar, beyond the reasonable control of Owner.
19. Notice of Changes to Rules and Regulations, Etc. The Park's Rules and Regulations, the other Park documents, and the Park's maintenance standards, services, equipment and physical improvements may be changed from time to time as provided by the Mobile home Residency Law. Management shall meet and consult with the residents upon written request, either individually, with duly elected representatives, or collectively, on the following matters: (a) amendments to Rules and Regulations; (b) maintenance standards regarding physical improvements in the Park; and (c) additions to or alterations or deletions of services, equipment, or physical improvements. Any collective meeting shall be conducted only after notice thereof has been given to all requesting residents ten (10) calendar days prior to the date set for the meeting.
20. Subordination. This Lease is subordinated to all current encumbrances on the Park, and at the option of a lender or proposed lender of Owner, it shall be subordinated to future encumbrances placed on the Park by Owner. Resident agrees to execute any instrument or document necessary to effect any such subordination within five (5) business days of request by Owner.
7 Model lease 2014
21. Transfer of Owner's Interest. In the event that Owner transfers its interest in the Park, or any portion thereof, Owner shall be relieved of any obligations hereunder accruing after the date of such transfer, and such obligations shall be assumed by the transferee, provided that Owner shall not transfer said interest unless the transferee is reasonably capable of discharging Owner's obligations hereunder.
22. Management of the Park. Owner shall be represented by management and/or its other authorized agents, who shall be vested with all legal right and authority to act on behalf of Owner, and to enforce on behalf of Owner this Lease and the documents incorporated into the Lease, unless said right and authority have been specifically reserved to Owner. Management and/or Owner's other authorized agents' decisions shall be final. The term "management," as used in the Lease and the documents incorporated into the Lease, shall mean Owner, the Park manager(s), and/or Owner's other authorized agents.
23. Incorporated Documents. The following documents, as they may be amended from time to time, are incorporated herein by this reference, and Resident acknowledges receipt of copies thereof:
A. The current Mobile home Residency Law, a copy of which is attached hereto as Exhibit "A";
B. The Park's current Rules and Regulations, a copy of which is attached hereto as Exhibit "8";
[insert additional Park documents];
The document entitled "Important Notice to All Manufactured Home/Mobile Home Owners," required by Civil Code Section 798.150), a copy of which is attached hereto as Exhibit " "; and
_ The document entitled "Mobile home Park Rental Agreement Disclosure Form," required by Civil Code Section 798.75.5, a copy of which is attached hereto as Exhibit " '
In addition to the foregoing, the use of the clubhouse, recreational and other Park facilities is conditioned upon compliance with the rules and regulations posted in and around said facilities, as said rules and regulations may be amended from time to time, and said rules and regulations are incorporated herein by this reference.
24. Megan's Law Notice. The following notice is provided for Resident's information, and must be provided in all residential rental agreements:
Pursuant to Section 290.46 of the Penal Code, information about specific registered sex offenders is made available to the public via an Internet website maintained by the Department of Justice at www.meoanslaw.ca.cov . Depending on an offender's 8 Model Leese 20I
criminal history, this information will include either the address at which the offender resides, or the community of residence and ZIP code in which he or she resides.
The law further provides that based on this notification, the Park, the seller of the mobile home, and the real estate broker(s), are not required to provide information in addition to that contained in the notice regarding the proximity of registered sex offenders. The information in the notice is deemed to be adequate to inform the prospective buyer of the mobile home about the existence of a statewide database of the locations of registered sex offenders and information from the database regarding those locations. The information in the notice will not give rise to any cause of action against the disclosing party by a registered sex offender.
25. Inspection of Premises. By signing this Lease, Resident acknowledges that Resident has carefully inspected the Space and all of the Park's facilities, has found them to be in good and sanitary order, condition and repair as represented by Park to Resident, either orally or in writing, and to the extent that they are not exactly as represented, either orally or in writing, agrees to accept them as they are.
26. Miscellaneous Provisions.
A. Time of Essence: Time is of the essence in this Lease.
B. Captions: The captions to the various paragraphs and subparagraphs of this Lease are for convenience and ease of reference only, and do not define or limit the scope, content or intent of this Lease.
C. Severability: If any particular part of this Lease should be determined to be invalid, unenforceable or otherwise illegal, such part shall be severed therefrom, and the remaining clauses and parts thereof shall remain in full force and effect.
D. Notices: All notices and demands required to be given hereunder shall be deemed, unless the law provides otherwise, to be received upon the earlier of (i) delivery to the person to be notified; or (ii) two (2) days after being deposited in the United States mail with postage prepaid and addressed to the party to be notified at the last address on file with the party giving notice.
E. Zoning, Etc.: The zoning of the Park is [insert zoning]. The Park operates under a permit that does not have an expiration date [OR The Park operates under a permit that expires on I. The Park operates under a land lease that expires on [OR The Park does not operate under a land lease].
9 )'lodel Lease 2019
27. Information Regarding Mobile Home and Legal Owner Thereof.
Resident understands that Owner is entitled to know the legal owner of Resident's mobile home, if other than Resident, and that Owner is required by law to send copies of certain notices to the legal owner, so Resident hereby provides that information:
Name:
Address:
In addition, Resident understands that Owner is entitled to know the manufacturer, model, year of manufacture and decal number of the mobile home, so Resident hereby provides that information:
Manufacturer:
Model:
Year of Manufacture:
Decal Number:
Resident agrees to update the foregoing information in the event that it changes during the term of this Lease.
28. Acknowledgments. Owner and Resident agree that this Lease, and the documents incorporated herein, contain the entire agreement between the parties. All prior negotiations or agreements that preceded or accompanied the execution of this Lease are conclusively deemed to have been superseded. This Lease may be altered only by written agreement of Owner and Resident, or by operation of law. Resident acknowledges that Resident has received, read and understood copies of this Lease, and the exhibits hereto, including a copy of the current Mobile home Residency Law, and agrees to be bound by their terms.
Resident also acknowledges that Resident had at least thirty (30) days from the date this Lease was first offered to Resident to accept or reject it.
Finally, Resident acknowledges that Resident had seventy-two (72) hours after signing this Lease and returning it to management to notify management in writing that Resident wished to void the Lease, and that Resident did not provide any such notification.
10 Model Lease 1019
The parties hereto have executed this Lease Agreement as of the date first noted above.
RESIDENT: OWNER:
[insert name of Park owner]
By:
By:
By:
By:
OTHER PERSONS WHO WILL OCCUPY THE
SPACE:
11 Model Lease 2010
By:
CITY OF SANTA MARIA
Mobile Home Model Lease
Agreement
Purpose of Presentation
Provide historical context
Overview of 2020 Model Lease terms
Current Status of 2020 Model Lease
Council Discussion & Public Comment
CITY OF SANTA MARIA
Historical Context
1999 City Council decision to implement a Model Lease
Rent control had been considered by City Council in
1981, 1982, 1984 and 1990
The City Implemented a follow-up Mode Lease in 2009,
which had a 10 -year term
In 2019, the City Council Adopted the 10 -year 2020
Model Lease, which was signed by 6 mobile home parks
(79% of total spaces in the City). This Model Lease is
currently in effect.
CITY OF SANTA MARIA
2020 Model Lease Terms. Residents, Park Owners,
Representatives and City Staff met formally 5 times in 2019 to develop and discuss terms, which resulted a draft Model Lease.
- Enforceable
Annual Rent Adjustment based on 100% of the Bureau of
Labor Statistics Consumer Price Index for All Urban
Consumers
- Can be no more than 6% of previous rent (regardless of index), plus a percentage of Capital Expenditures
Set deposit of one month's rent
Sale or transfer: Can only be increased by up to 7.5%
and only every 5 years, regardless of number of sales
during timeframe
CITY OF SANTA MARIA
- Current Status of 2020 Model Lease
- 6 Mobile home parks use model lease (79% of total mobile home spaces in City)
- 1 model lease enforceability event
- Fiscal Impacts: Model Lease is cost-effective. Rent
Control/Rent Stabilization Ordinance would increase staff time by 40-100 hours; $200,000 required to contract to have program developed
- Community Impacts: Model Lease allows the City to support residents, as well as help keep tenant -landlord relations productive through facilitation and enforcement of the
Model Lease.