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October 5, 2021 RE: Public Comment Regarding Santa Ana Rent Control Hearing- Bali Hi Mobile Homes Lodge As I mentioned at the last hearing, I have been managing mobilehome parks and manufactured home communities for almost 4 decades. The apartment association representative and apartment owners have and will again supply the facts and statistics which demonstrate rent control is not needed nor is it fair. Vickie Talley with MHET and Julie Paulie have and will continue to offer factual information as to why rent control is unwarranted. With almost 40 years of experience operating and managing both types of communities, I have found that rent control of mobilehome parks and manufactured home communities is counterproductive and actually hurts those senior citizens and families it proposes to help. Please consider the following: Rent control is a windfall benefit to mobilehome owners in land lease parks. As sought by rent control proponents, initial and ongoing space rents below fair market is the obvious and immediate benefit. Just as impactful is the proven fact that in every locale with rent control the mobilehomes resale prices are higher than before rent control, and those prices accelerate each year, often many times above the true value of the mobilehomes. Eventually, home Prices will reach levels that nut them out of reach of buyers needing affordable housing More succinctly stated, there is an inverse relationship between the prices of mobilehomes and the space rent charged. Rent control eventually prices young families and seniors on a budget out of the mobilehome market. o Not surprisingly, the current sales prices of mobilehomes in Santa Ana mobilehome parks is currently higher than their true value as mobilehomes indicating the fact that space rents are already under market. o One unfortunate result of rent control causing artificially inflated home prices on older homes is the fact that the oldest of homes which have 50 year old wiring and plumbing and may be unsafe for habitation remain in the park because the artificially buoyed prices of these homes prohibits their replacement by newer, safer, more energy efficient new homes. New homes would be available at affordable prices as the most obsolete of homes are otherwise replaced. o There is no incentive for park owners and operators to improve the communities. At best, rent control attempts to support the status quo in a rapidly changing world. There is no incentive for park ownership to improve or increase utility services or amenities 22880 Savi Ranch Parkway a Yorba Linda, CA 92887-4610 • (714) 974-0397