City of Visalia | 2024 Analysis 1
2024 Analysis
Visalia Mobile Home Communities
Annual Rents
Introduction
In July 2021, the City of Visalia renewed its Memorandum of Understanding (MOU) with local Mobile Home parks and put into place the 20 20 Standardized Lease Program Agreement , which will expire June 30, 202 5. Due to COVID and the necessity to postpone community meetings where valuable feedback is gathered from the residents, the 2015 MOU was extended until a new MOU could be established.
The Visalia mobile home communities continuing to participate in the Standardized Lease Program are Rancho Robles (formerly known as Mooney Grove Manor), 2120 S Santa Fe LLC (formerly known as Gold Star Mobile Estates ), 2400 W Midvalley LLC (formerly known as Westlake Village Mobile Home Park), Sierra Vista Mobile Manor, and Visalia Estates.
As part of the MOU, the participating communities must complete a Rent Analysis Survey annually to evaluate rent increases in the communities individually and collectively. This year, the survey was mailed to the participating communities on November 13, 2024, and requested data as of December 31, 2024, to be consistent with previous years’ analyses. The listed communities have completed and returned the required surveys.
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History
Beginning in December 2010, City Staff began mailing surveys, each year, to the participating Visalia mobile home parks for a rent analysis, to evaluate rent increases in the mobile parks individually and together as an average.
Historically, the participating mobile home communities include d Mooney Grove MHC, Country Manor MHC , Sierra Vista Mobile Manor , Gold Star Mobile Estates, Westlake Village Mobile Home Park , Visalia Mobile Estates , and Sierra Mobile Village . Sierra Mobile Village withdrew at the expiration of the 2010 MOU and Country Manor withdrew at expiration of the 2015 MOU, disregarding the extension.
Under the MOUs, the communities receive a survey requesting information regarding total number of spaces, number of spaces rented, and the number of spaces rented pursuant to the lease agreement. The survey provides rental amounts, in $25 increments, and requests the communities indicate the number of units within each range. As an example, the survey requests the number of tenants paying between $500-$525; $526-$550, etc. The data is then formulated to identify the average rents as well as provide a comparison to the previous year’s reporting. Details regarding the current ranges of rents charged are shown as Attachment “A”.
Additionally, the communities are requested to briefly provide information regarding other park services billed to the resident, including but not limited to utility fees, charges for late rent, check handling, vehicle storage, and guests. The communities are also asked to provide an accounting of how many spaces are owned by the park itself; and how many spaces are occupied by RVs and travel trailers, as opposed to mobile homes.
City of Visalia | 2024 Analysis 3
Analysis of Survey
This year, Visalia Estates has the highest rate of Lease participation at 95.0% with Sierra Vista Mobile Manor reporting the least Lease participation at 23.5%. Overall occupancy for all the communities decreased only slightly to 84.9% since the 2023 Analysis, when it was 85.5%.
Table 2 “Average Participation” , below, calculates average overall participation in the Lease Agreement, and reflects a current average of 54.1%.
The 2020 MOU continues tracking the different types of leases offered by the Mobile Home Communities , including Month to Month tenancy, Leases Greater than One Month and Other Types of Leases ( i.e., weekly, or biweekly rentals , employee housing ). The City’s
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Standardized Lease Agreement (Master Lease) is a one-year lease and falls into the Greater than One Month category, although it is not the only lease in that category. Table 3 “Lease Tracking”, below, reflects the changes from 2023 to 2024. Decreases are indicated in red with parentheses.
Gold Star Mobile Home Estates and Visalia Estates reflected no change in the number of rented spaces, while Mooney Grove - Rancho Robles and Westlake Village reflected increases in the number of rented spaces, and Sierra Vista Mobile Manor re flected a decrease of 7 rented spaces. Overall, rented spaces decreased by four. There were some significant shifts in the amount of Master Lease participation per park, with an overall increase of 66, with most of the increases occurring within Gold Star and Westlake Village.
There was a decrease in the amount of “Other Types of Leases” and a significant increase to the Greater than Month to Month tenancies of 74. Table 3 also provides statistics about the
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number of Mobile Homes vs Recreational Vehicles, 5th Wheels, etc. The Annual Statements show an overall decrease of six Mobile Homes and an increase of six in the number of RVs.
One of the more important figures tracked is the average rents. Table 4 “202 4 Rents”, right, presents a snapshot of the average rents for 202 4, the average difference between rents in 2023 and 2024, and the percentage of increase or decrease for each community.
Per the Lease Agreement, the Owner may adjust the rent at least 3% if the Social Security COLA increase is less than 3% but the owner may not adjust the rent more than 7% per year, even if the Social Security COLA increase is more than 7%. Rent increases are not required by this provision in the agreement.
The Social Security Index information related to Social Security Cost -of-Living Adjustments (COLA), reflected an increase of 3.2% which began in January 2024. For reference, historical information related to the Social Security COLA is included as Attachment “B”.
Conclusion
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Based on the limited data provided , the overall average rent increase for the participating communities was $29.04, or 3.76%, from December 31, 2023, to December 31, 2024, over 2024 rents, which is in compliance with the MOU.
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Attachment “A”: Average Rents per Park 2024
Averages: Monthly Rent Charge # Units Average Rent Median Rancho Robles (Mooney Grove Manor) $551-$575 0 $563 $0
$601-$625 2 $613 $1,226
$626-$650 10 $638 $6,380
$651-$675 57 $663 $37,791
$676-$700 45 $688 $30,960
$1001+ 12 $1,001 $12,012
Average $701.34 126 $701.34
Sierra Vista Mobile Manor $526-$550 0 $538 $0
$601-$625 1 $613 $613
$626-$650 4 $638 $2,552
$651-$675 6 $663 $3,978
$676-$700 3 $688 $2,064
$701-$725 3 $713 $2,139
$726-$750 8 $738 $5,904
$751-$775 9 $763 $6,867
$776-$800 8 $788 $6,304
$801-$825 15 $813 $12,195
$826-$850 12 $838 $10,056
$851-$875 21 $863 $18,123
$876-$900 10 $888 $8,880
$901-$925 9 $913 $8,217
$926-$950 3 $938 $2,814
$951-$975 2 $963 $1,926
$1001+ 1 $1,001 $1,001
Average $814.20 115 $814.20
Gold Star Mobile Estates $501-$525 0 $513 $0
$601-$625 1 $613 $613
$626-$650 2 $638 $1,276
$651-$675 19 $663 $12,597
$676-$700 47 $688 $32,336
$701-$725 55 $713 $39,215
$726-$750 8 $738 $5,904
$751-$775 1 $763 $763
Average $697.02 133 $697.02
Westlake Village Mobile Home Park $576-$600 0 $588 $0
$626-$650 1 $638 $638
$676-$700 1 $688 $688
$701-$725 2 $713 $1,426
$726-$750 5 $738 $3,690
$751-$775 7 $763 $5,341
$776-$800 7 $788 $5,516
$801-$825 14 $813 $11,375
$826-$850 26 $838 $21,788
$851-$875 22 $863 $18,986
$876-$900 14 $888 $12,432
$901-$925 15 $913 $13,695
$926-$950 8 $938 $7,504
$951-$975 5 $963 $4,815
$976-$1,000 3 $988 $2,964
Average $852.75 130 $852.75
Visalia Estates $526-$550 0 $538 $0
$626-$650 1 $638 $638
$651-$675 6 $663 $3,978
$676-$700 1 $663 $663
$701-$725 13 $713 $9,269
$726-$750 40 $738 $29,520
$751-$775 60 $763 $45,780
$776-$800 9 $788 $7,092
$801-$825 2 $813 $1,625
$876-$900 2 $888 $1,776
$951-$975 2 $963 $1,926
$976-$1,000 1 $988 $988
$1,001+ 2 $1,001 $2,002
Average $757.24 139 $757.24
Attachment "A" Average Rents Per Park 2024
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Attachment “B”: Social Security Cost of Living Adjustment History
Source: https://www.ssa.gov/news/cola/
SSA Publication No. 05 -10526 “Cost of Living Adjustment” can be found at https://www.ssa.gov/cola/#:~:text=Beginning%20in%201975%2C%20Social%20Securit y,value%20from%20Social%20Security%20benefits.