MOBILE HOME RENT CONTROL
ORDINANCE
City Council
November 29, 2022
Megan Basinger, Director Housing
& Community Services
Jeff Berk, Chief Assistant City Attorney
1 MobilehomeParkLocations
2 Mobilehome Parks
16 Mobilehome Parks in the City of Santa Rosa
*Spaces
currently
under rent
control
Spaces
currently NOT
under rent
control
Total
spaces
Senior-Age Parks
(55+)
12 1,356 398 1,754
All-Age Parks 4 334 67 401
TotalParks 16 1,690 465 2,155
3 *Spaces subject to rent control as of February 1, 2022 Uniqueness of Mobilehome Parks
• Rented apartments/homes fundamentally
different
• Own home, but rent space
• Not “mobile”
• Low space turnover
• Seniors/fixed incomes
4 OrdinanceHistory
1993
• Added Chapter 6-66 to the City Code
• Purpose: To allow for reasonable annual rent increases to protect mobilehome residents, while providing a fair return to mobilehome park owners
• Legal Test: Park Owners are entitled to a fair return, but cities and counties have significant discretion
5 OrdinanceHistory
• Established Mobilehome Park Policy Board
(MHPPB) to administer and enforce the
Ordinance
• Operated from 1993-2001
• 5 Board Members appointed by the Council
• 2 non-voting board advisors selected by the
Board, one each to represent the residents and
the park owners 6
OrdinanceHistory
1995 – 2004
• Council adopted amendments to the Ordinance
13 times.
• Eliminated MHPPB. Created a process for pass-
throughs and fair return rent increases hearings
heard by an independent arbitrator
• Hearings paid for by administrative fees collected
7 History of Allowable Annual
Rent Increases
• 100% of CPI
• 1993: Max 8% / Min 4%
• 1995: Max 7% / Min 3%
• 2004: Max 6% / No Min
8 Sonoma County jurisdictions
with Mobilehome Rent Control
Annual Limits – 100% CPI / 6% Cap
• County of Sonoma
• Cotati
• Petaluma
• Sebastopol
• Windsor
Rohnert Park – ½ of 1% Less than CPI/4% Cap
City of Sonoma – 80% CPI/5% Cap 9
Stakeholder Meetings
• August 18, 2022, with Mobilehome Park Owners
• August 25, 2022, with Mobilehome Park
Residents
• Residents want annual increase reduced, raised
concern about protecting those most
economically vulnerable
• Park Owners shared that that concern
10 Stakeholder Meetings (cont’d)
• Ad Hoc of Owners and Residents met with
staff
• Goal: To reach a consensus
• 3 Meetings held in October/November
• Progress was made, both sides moved off
original positions
• Key elements emerged
• Percentage of CPI
• Annual Cap
• In-place transfers
11 In-Place Transfers
• Occurs when Resident sells home to
another person
• Currently, Ordinance provides for a limited
increase in half of the parks and no
increase in other half
• Typically, jurisdictions that have a less than
100% CPI increase, allow Park Owners an
in-place transfer increase
12 Proposals
CURRENT RESIDENTS OWNERS STAFF
RECOMMENDATION
CPI 100% 65% 75% 75%
CAP 6% 3.5% 6% 5%
IN-PLACE
TRANSFERS
NONE/
MINIMAL
3.5% 15% 10%
VOLUNTARY
SUBSIDY
FUND*
$100,000/
YEAR
13 * (TO PROTECT MOST ECONOMICALLY VULNERABLE RESIDENTS) Rent Subsidy/Rent Deferral
• Concern voiced by Residents at stakeholder
meeting
• Administrative fee balance is about $800,000
• Funds may be needed to address Ordinance
• Owners’ offer is a subsidy – not a loan
• Based on their proposal of 75% of CPI, 6% cap
• Additional time needed to evaluate program -
return to Council in 2023
14 Rationale for Staff’s
Recommendation
• Provides for decrease in annual rent increases
• No request for fair return hearing since 1999
• Last 10 years – CPI increases outpaced Social
Security COLA by about 10%
• Owners - If amendment is less than
recommendation:
• Significant risk of frequent fair return hearings
• Park maintenance may be impacted
15 Average Rent
• Currently = $721/month
• If no Ordinance Change = $762/month
(starting January 1, 2023)
• 75% of CPI = $752/month
• 65% of CPI = $748/month
16 Recommendation
It is recommended by the Housing and Community
Services Department and the City Attorney’s Office, that Council introduce an ordinance amending Chapter 6-66
of the Santa Rosa City Code to: (1) reduce the allowable annual rent increases from 100% of CPI with a 6% cap to 75% of CPI with a 5% cap; (2) allow for a 10% increase
in space rent following an In-Place Transfer; and (3)
make other minor amendments to conform to changes in
State law.
17 QUESTIONS?
18