Special Meeting Agenda
Monday, September 29, 2025 at 6:00 pm
621 11th Street, Fortuna CA
Zoom Option: 1-669-900-9128 Meeting ID: 897 3383 9821 Password: 383337 • We May Disagree, But We Will Be Respectful of One Another • All Comments Will Be Directed to the Issue at Hand, and Addressed to the City Council • Personal Attacks are Unacceptable
• The City Council May Take Action on any Item on this Agenda.
CALL TO ORDER / FLAG SALUTE / ROLL CALL
Council
Staff
• Council Member Kyle Conley
• Council Member Carlos Diaz
• Council Member Abe Stevens
• Mayor Pro Tem Tami Trent
• Mayor Mike Johnson
• City Manager Amy Nilsen
• Deputy City Clerk Millie Derby
• City Attorney Ryan Plotz
1. ORAL COMMENTS FROM THE PUBLIC
Members of the Public may be heard at this time on any item within the subject matter jurisdiction of the City that is not on the Public Meeting Agenda. It is the practice of this Council to hold public comment for every item of business on the agenda at the time that item is heard. If a speaker cannot stay for a particular item of business, they may be heard during this time. Comments concerning the Consent Calendar may also be heard at this time. Speakers addressing the Council will be limited to 3 minutes per speaker. Be advised that, by law, the City Council can only deliberate or take action
2. Contact: Siana L. Emmons ([email protected] 7077251409) | Agenda published on 09/25/2025 at 1:43 PM on items that are included on the agenda.
Attachments:
• Storz - Royal Crest - Letter to City Council Re Oppostion to Moratorium on Rent Increases - September 25 2025 (Storz_-_Royal_Crest_-_Letter_to_City_Council_R e_Oppostion_to_Moratorium_on_Rent_Increases_-_September_25_2025.pdf)
CITY COUNCIL BUSINESS
Consideration of an Urgency Ordinance Creating a Temporary Moratorium on Rent Increases on Mobilehome Spaces in the City of Fortuna Attachments:
• 3a. RSO Urgency Ordinance Staff Report (3a._RSO_Urgency_Ordinance_S taff_Report.docx)
• 3ab. TEMPORARY MORATORIUM ON RENT INCREASES ON MOBILEHO ME SPACES - Copy (3ab._TEMPORARY_MORATORIUM_ON_RENT_INCRE ASES_ON_MOBILEHOME_SPACES_-_Copy.docx)
a.
3. REPORT OUT AND ADJOURN
Pursuant to Government Code Section 54957.5, any non-confidential documents or writings that the City distributes, less than 72 hours before a regular meeting, to all or a majority of the legislative body's members must be made available to members of the public at the same time as the distribution. Documents and information related to the agenda topics are available for review at City Hall, 621 11th Street, between the hours of 8:00 AM to 5:00 PM. Members of the public are invited to come to the meeting and comment. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (707) 725-7600. Notification prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting
4. Business Item 3a
STAFF REPORT
City Council Business Item
DATE: September 29, 2025
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Consideration of an Urgency Ordinance Creating a Temporary Moratorium on Rent Increases on Mobilehome Spaces in the City of Fortuna STAFF RECOMMENDATION:
Consider adoption of an Urgency Ordinance creating a temporary moratorium on rent increases on mobilehome spaces in the City of Fortuna until April 30, 2026, or the effective date of a mobilehome rent stabilization ordinance, and determination of exemption of the Urgency Ordinance from the California Environmental Quality Act.
EXECUTIVE SUMMARY:
A mobilehome space rent stabilization ordinance applies to mobilehome residents who own a mobilehome and rent the site in a mobilehome park on which a home is placed. A rent stabilization ordinance regulates rent increases for the mobilehome space while at the same time providing park owners with reasonable returns on their investment in the park.
At the September 15, 2025, City Council meeting, a Study Session was held on mobilehome Rent Stabilization. After a significant amount of public comment in support of an immediate moratorium on rent increases and favoring an ordinance over a negotiated Memorandum of Understanding with mobilehome park owners, the City Council directed staff to return with a rent stabilization moratorium and a review of mobilehome rent stabilization case law.
Prior to the September 15 meeting, on July 17, City staff and the Mayor Pro Tem met with residents of the Royal Crest Mobilehome Park to hear their concerns about increasingly unaffordable rent increases. On July 21, 2025, the City Council received additional public comments from the community emphasizing the need for a mobilehome rent stabilization ordinance.
In addition, before the July 21 meeting, the Council received numerous email communications from Royal Crest mobilehome Park tenants. Royal Crest residents have continued to attend City Council meetings to advocate for rent stabilization.
Staff also met with representatives from Storz Management on August 28.
DISCUSSION:
California Mobilehome Residency Law
In response to the special situation of mobilehome park residents (whose homes are, practically, immobile), California has adopted laws which provide special protections for mobilehome park Business Item 3a
residents (California Civil Code sections 798 and following: The mobilehome Residency Law (MRL). The MRL regulates rental agreements for mobilehome spaces, park rules and regulations, and sale of mobilehomes. The MRL does not regulate rent stabilization and leaves that up to local jurisdictions but addresses three aspects of mobilehome residency that bear upon the issue of rent stabilization: mandates a 90-day notice for rent increases; outlines seven specific reasons for lease termination, including noncompliance with laws, disturbing conduct, and nonpayment of rent; and it allows cities to regulate spaces rented before January 1, 1990, with exemptions for long-term leases and non-primary residences. Spaces rented thereafter are not subject to rent control to incentivize creation of new mobilehome parks.
Investment in Residence
Mobilehomeowners, unlike apartment tenants or residents of other rental units, are in the unique position of having made a substantial investment in a residence which is located on a rented or leased parcel of land (the mobilehome park) either through acquisition of a mobilehome from a prior owner or through purchase of a new mobilehome which is then assembled on-site or delivered there by the vendor. The investment commonly includes the purchase of the mobilehome (varying in price depending on the size and amenities, up to $150,000 or more) and/or the cost of installing the mobilehome on its space and installing related improvements, such as a foundation, carports, and integrated landscaping (depending on the job and local contractor costs, up to $20,000 or more). Alternatively, the investment consists of the purchase of an “in-place” mobilehome (varying in price from $27,000 to $185,000 depending on size, space rent, condition, and location).
The mobilehomeowner rents a space in a mobilehome park upon which the mobilehome is located.
The investments of mobilehome park residents can only be realized by continuing occupancy in the mobilehome or by an “in-place” sale/transfer of the mobilehome since:
• Physical relocation of mobilehome is costly;
• Relocation within other mobilehome parks is difficult because there are frequently no vacant spaces in mobilehome parks;
• Park owners generally will not permit older mobilehomes to be moved into their parks when they do have vacant spaces for rent; and
• The supply of mobilehome park spaces in California is either stable or declining.
Mobilehome park construction in urbanized areas of California virtually ceased by the early 1980s as alternative land uses became more profitable and land use policies continually tightened restrictions on the construction of new mobilehome parks.
Given the substantial investment by mobilehomeowners in the physical structure of the mobilehome but the lack of mobility or alternative options to move that physical structure from an existing mobilehome park, mobilehome park owners have unequal power over mobilehome owners to charge high/excessive space rent increases.
Space Rent
In addition to the substantial investment made by the mobilehomeowner (which might require mortgage payments), rent must be paid for a space in a mobilehome park. While space rent is required to continue occupancy, just like an apartment, overall affordability of the housing depends on rent, utility and service charges, and the cost of the mobilehome. Due to the unique nature of Business Item 3a
the mobilehome space tenancies, the amount paid for space rent has a direct correlation to the value of the mobilehome. As space rents increase, the mobilehome will depreciate in value (loss in equity) while the land value appreciates (gain in equity). The general industry rule of thumb is that for every $10 per month space rent increase, $1,000 in mobilehome equity is lost. This is a key rationale why; besides State law, local laws have been incorporated regulating the rate at which space rents can be increased. Without regulation, park owners can strip homeowners of the values of their homes, sometimes buying them and placing them in the rental market or reselling them.
Rent Stabilization in Fortuna
According to the California Department of Housing and Community Development (HCD) Mobilehome/RV Parks database there are 115 parks in Humboldt County but only 97 of the parks have mobilehome spaces. The others may be campsites or house RVs. These 97 parks have 3,018 mobilehome spaces that are licensed and monitored by the State Department of Housing and Community Development (HCD). According to HCD, the City of Fortuna contains 4 mobilehome parks within its city limits for a total of 283 spaces. Fortuna’s four parks, which vary in size from 3 to 205 spaces, are located at:
• 544 Fortuna Boulevard – 3 spaces
• 2432 Newburg Road – 30 spaces
• 365 Fortuna Boulevard – 43 spaces
• 2283 Crest Drive – 205 spaces
Rent stabilization mechanisms are relatively consistent with Council’s goals through the Housing Element and General Plan to: (1) Provide decent housing for all persons regardless of age, sex, race, marital status, ethnic background, income, or arbitrary factors; (2) Provide adequate housing by location, type, price, and tenure, including for those of low and moderate income; and (5) Improve and conserve existing residential neighborhoods.
It has been a long time since new mobilehome parks have been developed. Many mobilehome parks that were originally developed in low-density areas are now surrounded by higher-density and residential uses, and the underlying lands have increased in value. The increased value of land as well as increases in utilities and insurance has also increased pressure on rent prices. The impact of rent increases are considerable, bearing in mind that mobilehome residents often live on a fixed income, and each rent increase is money not being spent on mortgage or other living costs.
Table 2 below analyzes rent trends at Royal Crest Mobilehome Estates from 2012 to 2025.
Average.
Table 2: Royal Crest Mobilehome Increases
Rent
Effective
Date
Space
Rent
Annual
Increase $
Value
% Increase CPI - San
Francisco Bay
Area, August
2012 $419
2013-
Sept. $441 $22.00 5.25% 2.00%
2014-Oct. $462 $21.00 4.76% 3.00%
Business Item 3a
2015-Oct. $487 $25.00 5.41% 2.60%
2016-Oct. $509 $22.00 4.52% 3.10%
2017-Oct. $535 $26.00 5.11% 3.00%
2018-Oct. $570 $35.00 6.54% 4.30%
2019-Nov. $609 $39.00 6.84% 2.70%
2020-Dec. $669 $60.00 9.85% 1.60%
2021-Dec $699 $30.00 4.48% 3.70%
2022 $699 $0.00 0.00% 5.70%
2023-Jan. $733 $34.00 4.86% 3.40%
2024-Jan. $777 $44.00 6.00% 2.70%
2025-Jan. $822 $45.00 5.79%
The average annual increase is $31.00 per year or 5.34%. The highest increase was $60 in 2020 (9.85%), significantly above CPI (1.6%). In most years, rent increases exceeded inflation, especially in 2020 and 2019. Cumulative growth in rent rose from $419 in 2012 to $822 in 2025 — a 96% increase over 13 years.
A majority of the residents in mobilehome parks in the City of Fortuna are older individuals or couples living on fixed incomes, and these residents qualify as “low” and “very low” income households who cannot sustain these significant rent increases.
Urgency Ordinance
The purpose of the urgency ordinance is to place a temporary moratorium on rent increases on mobilehome spaces to preserve housing status for vulnerable populations and affordable housing for the community while staff further investigates and develops a permanent Mobilehome Rent Stabilization Ordinance.
Temporarily pausing rent increases on any mobilehome spaces until April 30, 2026, or the effective date of a mobile rent stabilization ordinance, will prevent an undue rush on rent increases on mobilehome spaces before the effective date of an ordinance that will be designed to protect mobilehome space tenants. Such rushed increases could defeat the purpose of rent stabilization or defer its benefits for years.
FINANCIAL IMPACT:
City staff time and the costs associated with developing an urgency ordinance will be funded through the General Fund, and potentially through General Fund reserves, due to the high likelihood of litigation. This is an additional program that will incur costs to the City. An administrative fee ranging from $5 to $20 per mobilehome space can be charged to residents once a Mobilehome Rent Stabilization Ordinance is adopted to help cover the cost of the program.
RECOMMENDED COUNCIL ACTION:
1. Receive staff presentation and review Council questions with staff.
2. Open and close Public Comment
3. Motion to approve an urgency ordinance creating a temporary moratorium on rent Business Item 3a
increases on mobilehome spaces in the City of Fortuna until April 30, 2026, or the effective date of a mobilehome rent stabilization ordinance, and determination of exemption of the Urgency Ordinance from the California Environmental Quality Act.
ATTACHMENTS:
Attachment A – Urgency Ordinance Creating a Temporary Moratorium on Rent Increases on Mobilehome Spaces in the City of Fortuna
ORDINANCE 2025-776
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORTUNA,
CALIFORNIA TO IMPOSE A TEMPORARY MORATORIUM ON RENT
INCREASES ON MOBILEHOME SPACES IN THE CITY OF FORTUNA UNTIL THE EARLIER OF APRIL 30, 2026, OR THE REPEAL OF THIS ORDINANCE AND
DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA
(URGENCY ORDINANCE — 4/5TH VOTE REQUIRED)
The city council of the City of Fortuna, California does ordain as follows:
Section I. Purpose; Authority. This ordinance is enacted pursuant to California Constitution, Article XI, section 7 and California Government Code section 36934. The purpose of this ordinance is to establish a temporary moratorium until the earliest of (i) April 30, 2026, (ii) the effective date of an ordinance amending the Fortuna Municipal Code to regulate rent increases on mobilehome spaces in the City, or (iii) the date of its repeal.
Section II. Definitions. The following definitions apply to the construction of this ordinance:
“Mobilehome” means a structure designed for human habitation and for being moved on a street or highway. “Mobilehome” includes a manufactured home, as defined in Section 18007 of the California Health and Safety Code, and a mobile home, as defined in Section 18008 of the California Health and Safety Code, but does not include a recreational vehicle, as defined in Section 799.20 et seq. of the California Civil Code and Section 18010 of the California Health and Safety Code, or a commercial coach, as defined in section 18001.8 of the California Health and Safety Code except when such a vehicle has continuously remained within a mobilehome park for nine (9) months or more. “Mobilehome park” means any area of land within the City on which two (2) or more mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes used for human habitation.
“Mobilehome parkowner” means any owner, lessor, or sublessor of a mobilehome park in the City who receives or is entitled to receive rent for the use or occupancy of any mobilehome space thereof, and the representative, agent or successor of such owner, lessor or sublessor.
“Mobilehome space” means any site within a mobilehome park located in the City intended, designed or used for the location or accommodation of a mobilehome and any accessory structures or appurtenances attached thereto or used in conjunction therewith except: (1) sites rented together and concurrently with a mobilehome provided by a Mobilehome parkowner and (2) “new construction” as defined by Civil Code Section 798.45. “Mobilehome space” shall also include rentable spaces within mobilehome parks which have been occupied by a “recreational vehicle” as defined by Civil Code Section 799.24 for nine (9) months or more.
“Mobilehome space resident” means a resident, tenant, subtenant, lessee, or sublessee, or any other person entitled to the use or occupancy of any mobilehome space not otherwise a party to a rental agreement exempt from regulation under this article pursuant to Civil Code Section 798.17. “Mobilehome space resident” does not include a mobilehome park owner.
“Space rent” means the total consideration, including any bonus, benefit or gratuity, demanded or received by a mobilehome parkowner for or in connection with the use or occupancy of a mobilehome space or any housing services provided with the mobilehome space. Space rent shall not include any amount paid for the use or occupancy of a mobilehome, unless the amount paid for the use or occupancy of a mobilehome is or includes consideration paid to a mobilehome parkowner under a rental agreement or other document evidencing tenancy of the mobilehome.
Section III. Moratorium. During the effectiveness of this Ordinance, no mobilehome park owner shall increase space rent for a mobilehome space in the City except pursuant to a variance issued using the procedures established for land use variances by section 17.07.070 of the Fortuna Municipal Code and upon a showing that such an increase is necessary to allow the mobilehome park owner a constitutionally adequate rent.
Section IV. Findings. The Fortuna City Council finds that the adoption of this ordinance on an urgency basis is necessary to preserve the public peace, health, and safety of the residents, businesses and property owners of the city. The Fortuna City Council further finds that the facts constituting the basis for the urgency and the need for the temporary moratorium are as follows:
A. Mobilehomes in mobilehome parks provide an important alternative form of housing for a substantial number of city residents; and B. A significant majority of the residents of mobilehome parks in the city are older individuals or couples living on fixed incomes. These residents qualify as “low” and “very low” income households and typically expend more than 30 percent of their household income on housing; and
C. Nearly all mobilehome park residents own and occupy their mobilehome and have made a substantial investment to live in a mobilehome park; and D. Residents of a mobilehome park have very limited mobility due to the impracticality of relocating a mobilehome; and
E. Alternative housing affordable to and suitable for the typical mobilehome park resident is limited in and near the City and mobilehome parks are a valuable resource of affordable housing for low- and very low-income individuals and families; and F. A number of residents of mobilehome in parks in the City have expressed the concern that they could become homeless if mobilehome park owners continue to impose significant rent increases; and
G. The City is considering a Mobilehome Park Space Rent Stabilization Ordinance to provide further protections for mobilehome space tenants; and H. Temporarily pausing space rent increases will prevent rushed space rent increases before adoption of regulations to stabilize mobilehome space rents that would defeat the purpose of such regulations to protect both existing tenants and affordable housing supply.
I. For the foregoing reasons, the Fortuna City Council finds that it is necessary to adopt, on a temporary basis, a moratorium on space rent increases as provided herein unless it be shown that an increase is necessary to respect the property rights of a mobilehome park owner.
Section V. Violations.
A. Any person who violates any provision of this ordinance shall be subject to any and all remedies available at law or in equity for a violation of the Fortuna Municipal Code.
B. A violation of this ordinance is hereby declared a public nuisance, which may be abated in accordance with the law.
Section VI. CEQA. The City Council finds and determines that this ordinance is exempt from the California Environmental Quality Act pursuant to Section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that this ordinance may have a significant effect on the environment. The basis for this determination is that this ordinance establishes a temporary moratorium on space rent increases in the City. This moratorium will not result in any significant adverse direct or indirect physical changes to the environment. The Director of Community Development is directed to file a notice of determination that this ordinance is exempt from CEQA and the State CEQA Guidelines.
Section VII. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance. The City Council hereby declares that it would have passed this ordinance and every section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared unconstitutional or invalid.
Section VIII. Effective Date. This ordinance shall be and the same is hereby declared to be in full force and effect immediately upon its passage. The Clerk shall cause this Ordinance to be published in the manner required by Government Code section 36933.
In a special meeting of the Fortuna City Council, passed this 29th day of September, 2025, on regular roll call of the members ofsaid Council by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Mike Johnson, Mayor
ATTEST:
___________________________
Millie Derby, Deputy City Clerk