FOR THE COUNCIL MEETING OF JANUARY 16, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Interim Assistant City Manager Chuen Wu
SUBJECT: Receive a Status Update on the Mobile Home Model Lease Program
Description:
The City Council will hear a status update on the mobile home model lease program, following direction provided by the City Council at its June 7, 2022, meeting.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Receive a presentation providing a status update on the mobile home model lease program.
BACKGROUND:
In 1999, the City Council was asked to adopt a rent control ordinance. The City Council declined and determined that the City should facilitate the creation of a 10 -year Mobile Home Model Lease, which would serve as ano ther lease agreement option between a park owner and resident, with terms on annual rent adjustments. The 1999 Mobile Home Model Lease was voluntary and consisted of four paragraphs that the park owners agreed to include in long -term leases. In 2009, the C ity facilitated the negotiation of the 2009 Mobile Home Model Lease, which had a 10 -year term. The 2009 Mobile Home Model Lease was based on the lease proposals of Casa Grande, Rancho Buena Vista, and Casa Del Rio leases.
In 2018, the City Council direct ed the City Manager and City Attorney to facilitate a new 10-year Mobile Home Model Lease. At that time, the park residents, through various representatives, requested that the Mobile Home Model Lease be enforceable, as opposed to voluntary. The 2019 Agreement for Enforcement of Mobile Home Model Lease 2020 was adopted by the City Council on November 19, 2019 (Attachment A).
On June 7, 2022, the City Council met to discuss the Mobile Home Model Lease 2020 Agreement and to receive public comment. Following City Council discussion and public input, on the motion, direction was given to staff to work with community members and 2 park owners to examine enhancing the Model Lease Agreement to see if there was room for improvement and to look at alternatives.
DISCUSSION:
Following City Council direction, City staff held several meetings with community members and park owners to identify areas of improvement and to look for alternatives:
9/22/2022 Meeting with City, resident, and park owner representatives 11/29/2022 Meeting with City and resident representatives 2/22/2023 Meeting with City and resident representatives 6/20/2023 Meeting with City and park owner representatives 7/21/2023 Meeting with City and resident representatives 11/14/2023 Meeting with City, resident, and park owner representatives
Through these series of meetings, resident and park owner representatives shared their input on the existing Mobile Home Model Lease and identified and discussed four key issues: 1) participation; 2) outreach; 3) enforcement; and 4) financial terms. There is some agreement within these key issues, but also fundamental differences between the two stakeholder groups’ positions, with park owners opposed to any form of rent stabilization, and residents still advocating for such an option.
A December 13, 2023, letter from Bruce Stanton details the position of the resident group (Attachment B), and a November 27, 2023 , letter from Lisa Toke deta ils the position of the park owners group (Attachment C). It is noted that these letters do not represent the view of all mobile home residents, nor all mobile home park owners, but reflect the positions of those stakeholders that have been engaged in the discussions over the past year.
Participation
As of the date of the preparation of this report, six mobile home parks are signed and participating, four are committed, and five remain not participating. The six mobile home parks represent 69 percent of the total mobile home park spaces. The addition of the four committed parks would raise this percentage to 85 percent. Newlove and Ranchwood Mobile Home Parks have signed the agreement electronically.
Santa Maria Mobile Home Park Model Lease Participation
Signed and Participating # spaces percent Not Signed # spaces percent Airport MHP 96 Anderson TP 10
Casa Grande 420 El Capitan Village 152
Casa del Rio 236 Highway TP 21
Rancho Buena Vista 209 Mobile Gardens 11
Santa Maria RV 7 Santa Maria TP 39
Trailer Rancho 100 Total not signed 233 15%
Total signed 1068 69%
Committed # spaces percent
La Maria 152
3 Newlove 26
Ranchwood 42
Riverside 22
Total committed 242 16% Total mobile home spaces 1543
Outreach
There is general agreement between the stakeholder groups that outreach is needed. In discussions on outreach, the City has committed to provide assistance in efforts to disseminate information and to educate the public about the Mobile Home Model Lease program. This may include in -person and virtual meetings, letters to mobile home park residents, posting of information on the City’s website, and translation of letters and educational materials (but not contractual materials) in Spanish. The City will also help in the formation of an “outreach committee” that will provide guidance and direction on ongoing outreach efforts.
Enforcement
The Mobile Home Model Lease is enforced by civil remedy. To date, the City has received one complaint, which has been suff iciently remedied. Both stakeholder groups agree to make information available, in outreach communications, on how a homeowner can make a complaint to the City regarding possible violations of the Mobile Home Model Lease program. Both groups also agree to an amendment to Paragraph 2.02 of the Enforcement Agreement that would require the Mobile Home Model Lease to be offered to new buyers at the same time as any other lease agreement. The current language provides a 60-day time frame. Both groups agree that park owners report to the City, annually, how many residents have signed the Mobile Home Model Lease. There was also discussion to create a volunteer committee of resident and park owner representatives to address any issues prior to a complaint filed with the City, to minimize City staff time.
Financial Terms
The stakeholder groups did not discuss the financial terms of the Mobile Home M odel Lease; the park owners group emphasizes that they have entered into a binding agreement and have complied with its terms. The groups did discuss the potential of mobile home parks voluntarily providing financial assistance programs that could aid residents experiencing hardship.
Alternative(s)
The City Council may provide additional direction to staff, with recognition of the terms in the existing enforcement agreement of Mobile Home Model Lease 2020.
Fiscal Considerations
The City’s commitment to assist in outreach efforts would require time and associated costs of City staff.
Impact to the Community
The 2020 Mobile Home Model Lease program provides another lease option for prospective mobile home residents. Improved efforts in participation, outreach , and enforcement will help prospective residents, including seniors. 4 ATTACHMENTS
A: Agreement for Enforcement of Mobile Home Model Lease 2020 B. December 13, 2023, letter from Bruce Stanton
C: November 27, 2023, letter from Lisa Toke