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Mayor Pulido and City Council Members
<br />May 21, 2019
<br />Page 2 of 3
<br />age restricted, meaning the tenants are 55 years and older and, thus, many are on a fixed income.3
<br />This greatly limits their ability to absorb a rent increase, especially the exorbitant rent increases
<br />scheduled to go into effect on June 1 st which range from $39 to $205 per month.4 Moreover, rental
<br />prices for new incoming residents are starting at $1,100 which is too high for seniors on a fixed
<br />income,5 thus prompting Bali Hi residents' fears that the mobile home park with be converted to a
<br />family park, which presents disastrous financial implications for the senior residents. The higher
<br />space rental prices depreciate the value of the mobile homes hindering residents' abilities to sell
<br />their homes, a strategy suggested by the Bali Hi management company, J & H.6
<br />Given that the Bali Hi rent increases are scheduled to go into effect June 1st, the Commission
<br />urges the City to act immediately and approve the proposed emergency ordinance. The City
<br />should also reach out to mobile home park residents and conduct a thorough analysis of who
<br />is living in Bali Hi and other mobile home parks that are currently or will potentially be
<br />experiencing rent increases, in order to fully assess the adverse impacts these increases will
<br />have on these residents' lives. Implementing the proposed emergency ordinance and
<br />conducting a definite study will allow the City to implement a more permanent solution. It is
<br />important to note there are 29 mobile park homes in Santa Ana, amounting to a total of 3,913 rental
<br />spaces.7 None of the residents in these parks are protected from the rent gouging practices
<br />experienced by the Bali Hi residents. Six of these mobile home parks, including Bali Hi, are age
<br />restricted constituting a total of 1,020 rental space units.8 It is imperative to approve the proposed
<br />ordinance in order to extend protections to these mobile home residents, a substantial amount of
<br />which are seniors who are financially limited and health vulnerable.
<br />The case of the Bali Hi residents is situated within the greater context of the affordable housing and
<br />homelessness crisis Orange County is currently facing. It is ranked among the top ten least
<br />affordable metropolitan areas in the country.' A resident must earn at least $36.08 per hour to afford
<br />a two -bedroom apartment at a fair market rent of $1,876 a month.10 Over the past seven years,
<br />Orange County renters have paid an average of $355 more a month and rents are projected to
<br />continually rise.11 During 2000 to 2015, Orange County's inflation -adjusted median rent increased
<br />by 28 percent while the median renter income decreased by 9 percent. 12
<br />The impact of this crisis is dire. Many Orange County renters are rent burdened where they spend
<br />more than 30% of their income towards housing costs. Struggling to make ends meet, many take on
<br />more jobs, including seniors, or live in overcrowded substandard households. With high rents, low
<br />vacancy rates and an increasing number of residents needing affordable homes, the supply of
<br />affordable homes being built for lower income households has also not kept up with the demand.
<br />3 City Council Agenda Report, Item 65A, p. 8, May 21, 2019.
<br />4 City Council Agenda Report, Item 65A, p. 12, May 21, 2019.
<br />5 City Council Agenda Report, Item 65A, p. 12, May 21, 2019.
<br />6 City Council Agenda Report, Item 65A, p. 15, May 21, 2019.
<br />9 City Council Agenda Report, Item 65A, p. 7, May 21, 2019.
<br />8 City Council Agenda Report, Item 65A, p, 7, May 21, 2019.
<br />9 Out of Reach 2018. The High Cost of Housing, National Low Income Housing Coalition, p.14, 2018.
<br />10 Out oIReach 2018- The High Cost of Housing, National Low Income Housing Coalition, p.38, 2018,
<br />u Southern Californians Scrimp to Get By As Average Rents Hit $1,900, Orange County Register, February 15, 2018.
<br />12 California Rents Have Risen to Some of the Nation's Highest. Here's How that Impacts Residents, Orange County Register, February 15, 2018,
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