VIEWS: 4 PAGES: 6 POSTED ON: 6/16/2012
Responses: Capitola The City of Capitola has nine mobile home parks and we have recognized for a long time that they make up an important part of our affordable housing stock. The City maintains a Mobile Home Park rent stabilization Ordinance which controls the rents in all rental parks in the City. The park residents pay an annual fee to the City to help cover at least a portion of the legal fees that we must spend every year to protect the ordinance from law suits filed against the city by the current park owners. At some point, as parks convert to other types of ownership, the City will want to find a way to get out from under the costs of maintaining this ordinance. The City's long-range goal is to assist in the conversion of all of the parks to cooperative or non-profit ownership or to assist in the subdivision of the parks. The hope is that we will be able to find ways to include long- term affordability as a part of each of these conversions. Two of our parks have now been converted to resident owned cooperatives. This was accomplished using State MPROP funds, Redevelopment Agency grants and loans and first time homebuyer loans provided using HOME funds. In exchange for the City loan funds the parks have both agreed to long-term affordability restrictions. One park is restricted to households at or below 120% of median and the other is restricted to 100% of median with two new units that are restricted for sale to low-income households. Two of our parks have also now been subdivided. In one case the subdivision took place without the City's involvement and the unit prices have gone up significantly. Although the park remains a source of affordable housing for the current resident who where in the park at the time of the subdivision the units are now selling at prices that are no longer affordable to low or moderate income buyers. Since that time the City has revised its condominium conversion ordinance to make it clear that the subdivision of mobile home parks will require that at least 15% of the units in the park be maintained at prices affordable to moderate-income buyers. The subdivision process is just now being approved and the City will be providing deferred payment first time homebuyer loans to any of the low-income residents that want to purchase their lots. The remaining parks in Capitola that remain rental parks remain a problem. None of the current owners are interested in selling so we are in limbo about what will happen next. If a purchase agreement can be negotiated the City would be willing to offer acquisition loans to the project. We would like to avoid subdivision projects in the future because of the loss of affordability. We also are concerned with the long-term viability of cooperative ownership for some of the smaller parks. Cooperatives require a good deal of on-going cooperative training for the Board of Directors and can really become a burden. We are looking into the alternative of non- profit ownership in which a non-profit affordable housing group would become the actual owner and would then lease the individual lots to the residents. The residents can still have an advisory Board that works with the non-profit but we have the benefits of having an experienced owner ultimately in charge. In all of these different ownership scenarios one of the most important things to remember is that in many cases the parks will have infrastructures that are near the end of their useful life. Most of our parks were developed in the 1950s and 60s and they now need new sewer lines, new electrical, new pedestals and new roads. Especially as newer coaches are coming into the parks the existing infrastructure is being over taxed. Replacement of these infrastructure items needs to be calculated as a part of the financing plan for each project. We also have a mobile home rehab loan program. the program offers grants of up to $7,500 for emergency health and safety repairs for low-income residents and 3% interest deferred payment loans of up to $25,000 for low and moderate-income residents. Citrus Heights Good luck. The problem you will experience is that almost any program designed to improve the mobile home park environment or the individual units (e.g. unit rehab, rental subsidy, allowing the parks to be subdivided, low interest loans to buy the units or infrastructure improvements) simply increases the value of the property and makes it easier to increase space rents. There is a program of HCD that will assist with resident/non profit acquisition of mh parks. It is on the HCD website. National City Allowing mobile homes on individual single family lots may also be an option, which most cities do not permit. National City is preparing a Specific Plan for an area in the city which may allow reduced lot sizes and setbacks – 2,500 sf lot where the minimum of 5,000 sf is currently required with reduced setbacks (less than 5’ side yards) which would allow modular houses (the new mobile home) therefore making the lot and the unit both more affordable. San Rafael San Rafael General Plan 2020 policy H-10 protect existing housing stock has an implementing program: H-10e. Retention of Mobilehomes and Preservation of Existing Mobilehome Sites. Retain where possible this type of housing, which includes the 400-home Contempo Marin and the 30-home B- Bar-A mobilehome park, and its affordability by continuing to implement the Mobilehome Rent Stabilization Ordinance. Mobilehomes typically provide lower cost housing by the nature of their size and design. Responsibility: City Attorney Timeframe: Ongoing Resources: Staff Time San Rafael also has a 'rent stabilization' ordinance, http://ordlink.com/codes/sanraf/index.htm (title 20). Your city attorney can contact our city attorney for more information. Santa Cruz County Mobile Home Change Out Program - Replacing existing units with new manufactured homes Mobile Home Rehibilitation - Correcting life threatening and health/safety issues Mobile Home Park Purchase - Owner occupants interested in purchasing their park Simi Valley We have a few things down here in Simi Valley (Ventura County) to assist mobile homes. We operate a direct rental subsidy program for low income seniors living in mobile homes and paying more than 30% of the adjusted monthly income towards rent with up to 2/3 of any space rent increase. There is an exemption for new move-ins and the program only assists those not already in long term leases where they have agreed to specified rental terms into the future. The second program is sponsored by the City and assists in settling rental rate disputes between the park owners and tenants, taking care to allow for a reasonable rate of return on investment and being fair with necessary rental rate increases to tenants, most in fixed income situations. It is referred to as the Mobile Home Rent Mediation Board. Board decisions can be appealed by either park owner or tenants; appeals are heard by a retired judge and their decision is final. The cost of the appeal is ultimately paid by the losing party, but the up front costs are the responsibility of the appealing party. Lastly, our Home Rehabilitation Program does allow assistance in the form of interest rate buydowns for mobile home improvement loans obtained commercially. To my knowledge, no one has taken us up on it. We frankly have difficulty spending money for improvements on a structure that is not permanently affixed to a foundation, so this is the way we assist them. Turlock Last year, this city addressed the concerns of mobile home residents faced with rising rental costs. We adapted a program that we saw used by the City of Vista. We have an agreement with the five park owners in the City whereby they agree to accept the median City-wide mobile home park rent for their low-income residents. The income qualified residents must pay rent equal to 30% of their income, with the City making up the difference with RDA LMI Housing funds. We had to make some findings to include the parks that are outside of the Redevelopment agency. The program has a built-in sunset control (it only applies to low income residents who were living in the parks when the program was started). The program has been very well received, and ended the calls for rent- control. I would be happy to provide more details if requested. San Juan Capistrano Housing Rehabilitation Loan Program The City's program offers zero percent interest deferred payment loans of up to $20,000 for mobile homes and up to $30,000 for single-family homes (one-to-four units) to eligible low- income homeowners to make needed health and safety repairs. Mobile Home Park Space Rent Increases Mobile home parks within the San Juan Capistrano city limits are subject to the provisions of the City's Mobile Home Rent Control ordinance. The ordinance mandates that mobile home park rent increases imposed by the mobile home park property owners cannot exceed the average Consumer Price Index (CPI) for the preceding calendar year. The maximum allowable rent increase that may be imposed by a mobile home park owner from April 1, 2007 through March 31, 2008 is 4.3 percent. Antioch The City of Antioch does provide a rental subsidy to our one senior park for spaces rented by low/mod seniors. It is funded with redevelopment housing set aside funds. There has been a longstanding agreement with the park owner, which expires next year and will be renegotiated. Credit to Janet Kennedy, Housing Coordinator for the City of Antioch, for providing the following information: East Bay Communities AGENCY City of Pleasanton DATE ORDINANCE ESTABLISHED Original in 1-19-88, revised 3-17-92 ANNUAL FEES Allowed in ordinance, but have not been collected. STAFF ASSIGNED Handled out of the City Manager’s office, but no direct staff assigned. BRIEF DESCRIPTION Agreement between the city and three mobile home parks establishing rent increases for each park individually through 2006. Annual adjustments are based on the CPI (not less than 1% or more than 5%) Can include a pass-through for capital improvement costs. Additional increases or disputes regarding increases must be submitted in writing to the City Manager. If City Manager is unable to resolve the dispute parties shall designate an impartial arbitrator, costs to be split equally between the Park Owner, Resident(s) and City. AGENCY Contra Costa County DATE ORDINANCE ESTABLISHED 9-94 ANNUAL FEES No STAFF ASSIGNED 1 person assigned from the Community Development Dept. and services from County Counsel as needed. BRIEF DESCRIPTION Mobile homes under rental agreements that exceed 12 months, or are owned by the park owner, are exempt from ordinance. Standard annual increase within any 12-month period is the greater of 2% or 75% of the per cent change in the CPI, not to exceed 6%. Can pass through a pro rata share of capital improvements, but cannot exceed 5% of the existing rent. Written notice required 90 days before any increase. Rent review officer will review petitions signed by more than 50% of the affected mobile home owners. If no resolution, a hearing officer will be retained to hear the petition. Cost of the hearing officer, and associated costs, is the responsibility of the park owner. AGENCY Concord DATE ORDINANCE ESTABLISHED 1994 ANNUAL FEES Established by ordinance, but not collected. STAFF ASSIGNED Housing division staff the Mobile Home Rent Review Board along with other responsibilities. BRIEF DESCRIPTION Allows for annual rent increases based on 60% of the CPI, not to exceed 5%. This is currently under review. Exemptions under the ordinance include those with long term leases, vacant spaces, or mobile homes constructed after 1990. Three-member Mobile Home Rent Review Board appointed by the City Council. Members cannot be a mobile home park resident, owner or manager. Increases over and above can be petitioned to the Mobile Home Rent Review Board after notice to effected residents. Decision of the Board is appealable to the City Council. Where applicable, the park owner may apply for a special rent increase if they can show that regular increase does not allow them a fair and reasonable rate of return. A decision of the Board regarding two parks in Concord has been in dispute for the past several years. AGENCY City of San Jose DATE ORDINANCE ESTABLISHED N/A ANNUAL FEES For administration of the ordinance $6.26 per space, half can be passed on to the resident. STAFF ASSIGNED One full time analyst in the Housing Department. BRIEF DESCRIPTION All mobile homes fall under ordinance unless they have a rental agreement on or after Jan. 1986, the rental agreement is in excess of twelve months, or the mobile home is the personal residence of the park owner. Rents can be increased annually by a maximum annual percentage, which is based on 75% of the CPI, with a minimum of 3% and a maximum of 7%. Oversight of the ordinance by the Mobile Home Advisory Commission, which meets every other month. Owner can petition for an increase higher than allowed with proper documentation. Hearing conducted by the administrative hearing officer. Administrative hearing officer’s decision is binding. Landlord, owner or resident may seek judicial review if not satisfied with the hearing officer’s decision. AGENCY City of Hayward DATE ORDINANCE ESTABLISHED 1989 and amended in 1992 and 2005 ANNUAL FEES Established by ordinance, unknown if it is collected. STAFF ASSIGNED Handled by the City Manager’s office BRIEF DESCRIPTION Exemptions to the ordinance include mobile homes with long term leases, vacancies. Increases cannot be more than the greater of three percent or sixty percent of the change in the CPI, not to exceed six percent. Park owner can request an increase above that specified by petitioning the Rent Review Officer and notifying affected residents. If a dispute arises regarding any increase or service decrease, and the park owner and resident do not resolve it the may file for with the Rent Review Officer. There will be a mandatory meet and confer session. If no resolution is made the Rent Review Officer will provide a list of at least five qualified hearing officers/arbitrators and the selection of a hearing officer will be made by both parties. Arbitrator’s decision is final. Other California Communities AGENCY City of Clovis DATE ORDINANCE ESTABLISHED 1978, amended 3/93 ANNUAL FEES $2.00 a month per space collected with the water bill and paid to the City Clerk. STAFF ASSIGNED Handled through the City’s Finance Department BRIEF DESCRIPTION Established in 1978 and was amended due to a legal challenge of the original ordinance. Annual increases up to 80% of CPI if CPI is 5% or less; 52% of CPI plus 1.4 if CPI is more than 5% but less than 10%; 23% plus 4.3 if CPI is excess of 10%. Increases allowed in the case of an in-place sale, not to exceed 5% of current rent. Requires a 60 day written notice. Any increase above the allowed annual increase requires a copy of the notice and supporting documentation to the City Manager and request a hearing before a hearing officer, cost of which is paid by the park owner. AGENCY City of Vista DATE ORDINANCE ESTABLISHED 1-96 ANNUAL FEES No STAFF ASSIGNED Housing staff person as needed, convenes the Mobile Home Citizen Review Panel twice a year. BRIEF DESCRIPTION Known as an “Accord”, which sunsets 20 years from establishment. All park owners agreed to use a Mobile Home Rental Agreement, known as a Model Lease, with some exceptions. Typical annual increase is approximately 75% of the CPI. Rents for units determined to be below market can have an independent appraisal. If found to be below market, rent can be adjusted no more then one-third the amount the first year and one-third a year for the next two years. Established a Mobile Home Citizen Review Panel, made up of residents of Vista that do not live, own, or have any interest in a mobile home park. Panel hears rental disputes and requests for increases outside the terms of the Model Lease. In the event that the Panel is unable to resolve the dispute, the City will engage the services of a mediator. AGENCY City of Simi Valley DATE ORDINANCE ESTABLISHED 3/83, amended in ‘84,’88,’91,’92,’93,’95, and ‘99 ANNUAL FEES None noted. STAFF ASSIGNED No direct staff. BRIEF DESCRIPTION Adopted first in 1983, the Mobile Home Rent Mediation Board was amended several times. Exemptions to the ordinance include mobile homes with long term leases, vacant mobile homes or spaces, parks with 20 or fewer spaces. Requests for rent increases, or a reduction of service must be noticed 90 days prior to it going into effect. Disputes regarding the increase can be petitioned to the Mobile Home Rent Mediation Board, a five-member board appointed by the City Council. Members cannot be a mobile home resident, owner or manager. General costs of the Board meetings are borne by the City, but additional costs related to recording or transcription are divided equally amongst the parties. If the decision of the Board is challenged by either party a hearing officer will be hired by the City Manager or their designee. Costs of the hearing officer will be divided between the parties at the hearing officer’s discretion. Rent increases shall only permit a fair rate return, but are not tied to the CPI. AGENCY City of La Verne DATE ORDINANCE ESTABLISHED Unknown ANNUAL FEES No STAFF ASSIGNED Handled through the City Manager’s office BRIEF DESCRIPTION Exemptions to the ordinance include mobile homes with long term leases, increases that are equal to the proportionate share of increase in city fees or tax, vacant spaces, or any mobile home with a space rent of $150.00 or less per month at the time of the ordinance. No rent increase or service decrease will not take effect until approved by the Rent arbitration administrator (RAA), which is the city manager or their designee. Increase may be no greater than the lesser of 7% of the rent in effect at the time of the requested increase or the increase in the CPI for the LA area for the previous 12 month period. If an increase requested is for an amount different than specified by the ordinance, the owner can petition the RRA and a park mediation committee will be established. (They have not to go to a committee thus far.) Park committee will consist of two members or representatives of the park owner, two members selected from the affected tenants, and a mediator selected by the four committee members. If they cannot agree on the mediator, the RAA will make the selection. Park owners and affected tenants will pay the costs of the mediator. If an agreement can be reached it must be approved by 67% of the affected residents.
"Antioch League of California Cities"