(a) Increase prohibited. No increase in space rent ceiling shall be permitted except as provided for herein.
(b) Initial adjustment.
(1) Permissive adjustment. A park owner shall be entitled to an initial permissive adjustment of gross space rental income equal to the lesser of the three percent increase per annum since the base year or an increase equal to the percentage increase in the Consumer Price Index (CPI) from the end of the base year to the date of application for the adjustment.
(2) NOI adjustment. In the event a park owner does not receive a just and reasonable return on the park property after receiving the maximum permissive adjustment provided for above, a park owner may file an application with the commission for an initial adjustment of the space rent ceiling.
A park owner shall be entitled to an adjustment of the space rent ceiling so as to enable the park owner’s base year net operating income (NOI) to be increased by a rate equal to the lesser of: (a) the percentage increase in the CPI since the end of the base year multiplied by that percentage of the CPI which composes the expenditure category of housing or the equivalent thereof, or (b) forty percent of the percentage increase in the CPI since the end of the base year. The percentage increase in the CPI shall be calculated by using the procedure set forth in Section 16B-8(b)(1).
No further space rent ceiling adjustment shall be permitted in calendar year 2002, with the exception of any applicable pass-through adjustment provided for herein.
(3) Filing of application. An application for either an initial permissive or NOI adjustment may be filed with the secretary to the commission no sooner than sixty (60) days following enactment of this ordinance. The application shall be submitted on such form as may be provided by the commission.
The commission shall review any such application in accordance with the provisions of this chapter.
(c) Annual adjustment. Commencing on April 1 in the year following the date any manufactured home park initially becomes subject to the provisions of this chapter, and every subsequent year thereafter, any park owner subject to this chapter shall be entitled to the following annual adjustments:
(1) Permissive adjustment. A park owner shall be entitled to an annual permissive adjustment of gross space rental income equal to the lesser of a three percent increase or an increase equal to seventy-five percent of the percentage increase in the CPI during the full twelve calendar months immediately preceding the date of the application as reported by the Bureau of Labor Statistics. The percentage increase in the CPI during the twelve month period shall be calculated by comparing the CPI reported for the last month of the twelve month period with the CPI reported for the month immediately preceding the twelve month period.
(2) NOI adjustment. In the event a park owner believes he would not receive a just and reasonable return on his investment in the park after receiving the maximum permissive adjustment provided for above, a park owner may file an application with the commission for an alternative adjustment of the space rent ceiling based upon the park’s net operating income (NOI).
A park owner shall be entitled to an adjustment of the space rent ceiling so as to enable the park owner’s net operating income (NOI) during the full twelve calendar months immediately preceding the date of the application to be increased by a rate equal to the lesser of: (a) the percentage increase in the CPI during the full twelve calendar months immediately preceding the date of the application multiplied by that percentage of the CPI which composes the expenditure category for housing, or (b) forty percent of the percentage increase in the CPI during the full twelve calendar months immediately preceding the date of the application. The percentage increase in the CPI during the twelve month period shall be calculated in the same manner described in Section 16B-8(c)(1).
(3) Effect of previous annual adjustment. No annual adjustment shall become effective if a previous annual adjustment became effective within the previous twelve months. An annual adjustment may, however, be approved by the commission within such twelve month period provided that such an adjustment shall not become effective within such twelve month period.
(d) Pass-through of government assessments.
(1) A manufactured home park owner may file an application with the commission to pass through to the residents of the park governmental assessments related to the operation of the park. The application shall be submitted in such form, and at such time, as may be provided by the commission.
(2) For governmental assessment increases of a continuing nature, the commission shall permit the park owner to adjust the space rent ceiling by an amount deemed necessary to cover the increase in such assessments. The space rent ceiling for each manufactured home rental space shall be adjusted equally in an amount necessary to cover increases in such costs.
(3) Government assessments representing a single one-time payment, or a single assessment payable over a fixed period of time, shall not affect the space rent ceiling for the park. Park owners may pass through such assessments to the residents of the park upon terms and conditions as approved by the commission.
(4) For the purposes of this chapter, government assessments shall not include federal, state or local taxes, governmental license or registration fees, or fees paid and costs incurred pursuant to the requirements of this chapter.
(f) Distribution of space rent ceiling adjustments. In the event the commission grants any adjustment or pass-through pursuant to any provision of this chapter, the amount of the gross adjustment or pass-through shall be distributed to each individual space in the park based upon the percentage increase in the gross space rents of all manufactured home spaces in the park subject to this chapter. The individual space rent shall thus increase by the same percentage increase as the increase allowed to the gross space rents in the park.
The park owner shall adjust the space rent ceiling for each such manufactured home rental space within the park accordingly and impose this adjustment simultaneously to all manufactured home rental spaces in the park.
(g) Consumer Price Index (CPI). The Consumer Price Index utilized herein shall be the Consumer Price Index for all urban consumers in the west urban area, including all items and not seasonally adjusted, as reported by the U.S. Department of Labor, Bureau of Labor Statistics, with an index measure of one hundred for the base period of 1982-84 or such other prevailing base period as may be adopted from time to time by the Bureau of Labor statistics. In the event that the Consumer Price Index as defined in this section is discontinued, the commission shall use in its place the substantially similar index thereafter employed by the Bureau of Labor Statistics in lieu of the Consumer Price Index to report the increase in the cost of living of urban consumers in the western United States. As used in this section, “Bureau of Labor Statistics” shall mean that agency or its successor agency of the United States Government. (Ord. No. 1362, § 1 (part).)