Laserfiche WebLink
City of Santa Ana Mobile Home Parks <br />Assessment of Existing Conditions and Policy Options <br />May 21, 2019 <br />Of the 101 jurisdictions in California with rent stabilization ordinances, 56 (55%) include <br />some form of vacancy control in their ordinance. Vacancy control ordinances typically <br />allow anywhere from a 5%, 10% or 15% increase within a two, five or ten year period. <br />The amount of the allowable increase varies by market and jurisdiction. Alternatively, <br />the amount of allowable increase may be tied to a percentage of the CPI, ie. 125% of <br />the CPI. <br />Owners of mobile home parks often contend that vacancy control keeps rents artificially <br />low thereby allowing the mobile home owners to profit by selling their coaches at a <br />premium. In other words, buyers are often willing to pay a higher price for a mobile <br />home when there is a guarantee of a lower space rental rate. Park owners contend that <br />this amounts to an unfair transfer of wealth to the mobile home owner. Mobile home <br />owners, on the other hand, contend that without rent control, the park owner can raise <br />the space rental ree to such an extent that the value of the mobile home drastically <br />declines. <br />Park Closure and Relocation Fee Ordinance <br />State law limits what a city can do to preserve existing mobile home parks when a park <br />owner decides to close a park, or convert a park to a new use. For example, a city <br />cannot prohibit a park owner from closing or converting a park or otherwise limit the use <br />of the property to a degree that it deprives the owner of the use or value of the property. <br />However, a city can regulate the closure, cessation or conversion of a mobile home <br />park by establishing a process that mobile home park owners will have to go through <br />prior to closure or conversion. The process could include hiring a consultant, selected <br />by the City, to prepare a detailed relocation impact report and public hearings before the <br />city's Planning Commission, and Community Redevelopment and Housing Commission <br />as well as the City Council. <br />State law grants local government the authority to decide whether park owners need to <br />pay for reasonable relocation costs but does not require it. Therefore, a city may <br />require that mobile home relocation assistance be offered for residents of a mobile <br />home park who are displaced under certain conditions such as a park closure or <br />conversion. Assistance may be made available for eligible seniors, disabled or low- <br />income households, and may include a space rent subsidy payment of up to 24 months, <br />payment to move the mobile home, or compensation for the mobile home if it cannot be <br />moved. For example, the City of Sunnyvale has a Mobile Home Relocation Ordinance <br />in which relocation assistance is paid by the property owner for relocation up to 100 <br />19 <br />65A-22 <br />