AGENDA PACKET_2021-09-21 - Laserfiche WebLink

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EXHIBIT 1 (b)No later than June 30th each year, beginning with the year 2022, the City shall announce the amount of allowable rent increase based on subsection (a) herein, which shall be effective as of September 1st of that year. Section 8-1998.2Reasonable Rate of Return. This ordinance allows for an annual adjustment of residential real property or mobilehomespace rent of up to three percent (3%), or eighty (80%) of the change in the Consumer Price Index, whichever is less.A ConsumerPrice Index-based increase is found and determined to provide a just and reasonable return on an and has been adopted to encourage good management, reward efficiency,and discourage the flight of capital, as well as to be commensurate with returns on comparable investments, but not so high as to defeat the purpose of curtailing excessive rents and rental increases. Notwithstandingthe foregoing, however, any owner of residential real property or a mobilehomepark who contends that the limit on rental increases set forth in Section 8-1998.1above will prevent the owner from receiving a fair and reasonable return on theirproperty may petition for relief from the cap set forth in section 8-1998.1pursuant to the procedures set forth in section 8- 1998.3. Section 8-1998.3Fair Return Petition for Rent Increase. (a)An owner of residential real property or a mobilehomepark ownermay petition for a rent increasein excess of that provided in section 8-1998.1in order to obtain a fair and reasonable return on theirproperty.Such Fair Return Petition shall be on an application form prescribed by the City Manager and shall be decided by the City Manager,or theirOwner shall provide a copy of any Fair Return Petition submitted to the City to the applicable tenant(s), and provide City with proof of completing such service to the applicable tenant(s). The tenant(s) will then have thirty (30) days from the date of receiving the Fair Return Petition to reply or provide additional materials to the City in response to the Fair Return Petition. The applicant shall bear the burden of establishing that a rate increasein excess of that provided in section 8-1998.1is necessary to provide the applicant with a fair and reasonable return on theirproperty, including by providing an independent financial report and verified financial data demonstrating that without such an increase, theywill not realize a fair and reasonable return on theirproperty. (b) review of the Fair Return Petition. Upon receipt of a Fair Return Petition, the City Manager shall determine the anticipated costs of review and if the employment of request. If the City Manager so determines, the City Managershall also determine the anticipated costs of employing such expert(s).The resulting figure shall be communicated to the applicant, and the Fair Return Petitionshall not be processed until the applicant has paid to the City the estimated cost of the completeanalysis.City will