STAFF REPORT
City of Lancaster
PH 1
10/28/2025
TN
Date: October 28, 2025
To: Mayor Parris and City Council Members
From: Patti Garibay, Director - Community Development
Sam McNutt, Manager - Community Preservation
Subject:Approval of Ordinance No. X Amending the Lancaster Municipal Code Section 11.08.060 Annual Rent Increase Formula for Mobilehome Parks Recommendation:
Approve Ordinance No. X amending the Lancaster Municipal Code, Title 11, Section 11.08.060, changing the annual mobilehome park rental increase calculation from the current formula of 60% of the Consumer Price Index (CPI) to an annual increase structure based on the annual CPI, at a minimum of 2.5% and a maximum of 3%.
Fiscal Impact:
None
Background:
Since 1993, the City of Lancaster has regulated mobilehome park rent increases through the Lancaster Municipal Code. The current formula calculates the annual rental increase by multiplying CPI for All Urban Consumers (Los Angeles Area) × 60%. This automatic calculation has resulted in variable annual increases:
Previous Annual Rate Increase
Year Rate Effective Date
2022 2.4% October 1, 2021
2023 1.3% October 1, 2022
2024 5.2% October 1, 2023
2025 1.5% October 1, 2024
2 0
6 4
Year Rate Effective Date
2026 1.9% October 1, 2025
The current CPI-based formula creates unpredictable year-to-year variations, making it difficult for both residents and park owners to plan ahead. For example, the 2024 increase of 5.2% represented a 300% jump from the previous year’s 1.3%. Mobilehome park residents are often seniors on fixed incomes or low-to-moderate income families. These households face unique challenges, as they own their homes but must rent the land beneath them. Large rent increases create financial hardship for these vulnerable populations. Utilizing the annual CPI and ensuring a minimum 2.5% increase and a maximum 3% cap aligns with modest cost-of-living adjustments, offering protection for residents while maintaining affordability.
Although the current formula limits increases to 60% of CPI, it can still result in significant swings during periods of high inflation. The 2024 spike to 5.2% illustrates how sensitive the formula is to economic volatility.
The proposed formula establishes a predictable range for annual rent increases that balances the needs of park owners and residents, as follows:
Minimum increase of 2.5%, when CPI is below 2.5%; or,
Actual CPI-based increase, when CPI is between 2.5% and 3%; or, Maximum increase of 3%, when CPI is above 3%.
Park owners receive guaranteed annual revenue growth of at least 2.5%, ensuring they can cover operating costs even in low-inflation periods. Residents are protected from inflationary spikes, never facing increases above 3%. Both parties gain planning certainty with a narrow, predictable range that eliminates the volatility of the current system.
In 2024, when CPI reached 5.2%, residents would have saved 2.2% under the proposed cap, while park owners would still receive a meaningful 3% increase.
For City staff, the amendment would reduce the administrative burden by eliminating the need for annual CPI calculations and notifications. Compliance monitoring would be simplified, and the number of disputes or tenant complaints could potentially decrease as a result of greater predictability and fairness.
In conclusion, the proposed amendment to cap annual mobilehome park rental increases at 2.5% minimum and 3% maximum would enhance housing stability for vulnerable residents, provide predictable revenue for park owners, and simplify administration for the City, while positioning the community as a regional leader in mobilehome resident protection.
SM/gb
Attachment:
Ordinance No. X