That the Housing Authority:
A. Approve the removal of an unoccupied and uninhabitable mobile home located on space 70 located at 1750 West Lambert Road; and

B. Approve the removal of the unoccupied and uninhabitable mobile home located on space 114 located at 1750 West Lambert Road; and

C. Authorize Augusta Communities, LLC to act as the licensed retailer on behalf of the Housing Authority, as outlined in Exhibit A, Scope of Services, in the Asset and Mobile Home Park Agreement between the Housing Authority and Augusta Communities LLC, dated December 1, 2025, for the purchase of three manufactured homes to be placed on spaces 70 and 114 in View Park Estates and on space 37 in Park La Habra Mobile Homes; and

D. Authorize the Executive Director to sign and/or approve any documents including, but not limited to, bids, proposals, agreements, invoices and purchase orders needed for the removal of the existing mobile homes and the purchase and installation of the three manufactured homes, including construction costs; and

E. Approve a budget appropriation of $485,000 from fees collected from housing developers that are designated specifically for affordable housing to cover partial cost of the purchase and installation of the manufactured homes; and

F. Approve a budget appropriation of $103,687 in Neighborhood Stabilization Funds to cover partial cost of the purchase and installation of the manufactured homes; and 

G. Approve a budget appropriation of $74,034 in Housing Authority Funds to cover the remaining cost associated with the purchase and installation of the manufactured homes.

The Housing Authority of the City of La Habra (Housing Authority) owns and operates two mobile home parks in the City of La La Habra, View Park Estates (View Park) located at 1750 West Lambert Road, and Park La Habra Mobile Homes (PLH), located at 1731 West Lambert Road. 

In 2023, PLH management went through an eviction process with the owner of a mobile home located on space 37.  The process was initiated because the former owner had begun to allow people that were not authorized to live in the mobile home unit to live there and stopped paying rent.  One unauthorized guest stayed in the unit up until the unit was locked-out by the Orange County Sheriff's Department.  Even after the lock-out, staff had to work with management to board the unit to prevent people from continuing to trespass at this location. Although the mobile home was offered for sale, there were no bidders; and, due to the deteriorated condition of the unit, park management was able to arrange the removal of the unit at no cost to someone who was going to take the unit apart to scrap it for any potential valuable parts. Therefore, PLH management processed the necessary paperwork to transfer the ownership of the mobile home to the Housing Authority.  During this process, staff was working on potentially expanding supportive housing options through the use of units at the mobile home park and asked management to hold off installing a new unit, until staff had decided if and what type of unit would be suitable for this purpose.

In June 2025, the Housing Authority purchased the mobile home unit on space 114 in View Park from the family of a deceased resident that previously owned the unit.  Originally, the Housing Authority intended to rehabilitate the unit, but after going through a bidding process, it became evident that, due to rising construction costs and the added cost of required wage compliance, it would be more economical to replace the existing mobile home with a new manufactured home, than to rehabilitate the existing unit. In addition, staff identified that the unit would need significant rehabilitation to last as long as a newer manufactured home. 

In October 2025, View Park management went through an eviction process with the owner of the mobile home unit on space 70 for nonpayment of rent.  Although the mobile home was offered for sale, there were no bidders for the mobile home unit, as it was in uninhabitable condition and the sale was only for the mobile home itself, not the space that the mobile home unit occupied.  After no bidders attended the lien sale, View Park management processed the necessary paperwork to transfer the ownership of the mobile home to the Housing Authority.

Since the two units in View Park are uninhabitable and there is a vacant space in PLH, staff is recommending the removal of the two inhabitable units and the purchase and installation of three new manufactured homes to further the long-term goal of the Housing Authority to provide sustainable, affordable housing opportunities for the community.  These recommended actions will provide potential options for affordable housing programs such as:

Permanent Supportive Housing
Homelessness is a growing crisis that continues to impact communities throughout California, including those in Orange County.  To help meet the challenge, the City of La Habra has been an active participant in the North Service Planning Area, working in close collaboration with other North Orange County cities to provide funding for short and mid-term homeless sheltering and housing.  While more shelter beds are becoming available, there remains a lack of longer-term supportive housing for individuals who seek a path out of homelessness. These units could provide the opportunity for the City to utilize the units to implement a supportive housing program that would provide qualified and eligible individuals with a potential exit from homelessness, one that offers longer-term housing and social services options that can lead to greater independence and self-sufficiency.

Extremely-Low Income Housing
Many families and individuals in La Habra, along with those from many Southern California communities, struggle to pay market rate rents.  An extremely-low income household typically makes 30 percent of the area median income. For example, in 2025, an extremely-low income for a household of four in Orange County is $50,750 or less, according to the US. Department of Housing and Urban Development (HUD).  A one-person household meets the definition of extremely-low income if they make $35,550 or less.  By creating housing options restricted to qualified, extremely-low income households, La Habra could help prevent additional homelessness.  The new manufactured homes would be used to implement an extremely-low income housing program could be designed to emphasize the following:

1.  Families of four or fewer (could be larger depending on the size of the unit) that meet the income restrictions;
2.  Elderly or disabled residents who meet income restrictions;
3.  Veterans who meet income restrictions

Relocation Programs
From time to time, the City will purchase a property for governmental purposes that is occupied by tenants. Relocation of these tenants is often provided by the Housing Authority. For instance, the Housing Authority is currently in the process of finding suitable housing for tenants that need to be relocated due to a recent property purchase in 2024.  One of these new manufactured houses may become a viable option to relocate the tenants. Units within the mobile home parks have been used in the past to relocate tenants from an apartment in PLH to a new mobile home, as well as relocate a large family that was living in a small two-bedroom, one-bath home on a property that the City purchased, into a three-bedroom, two-bath manufactured home in one of the mobile home communities owned by the Housing Authoirty.  

Staff will continue to evaluate all options to provide additional affordable housing in the City. Based on the above options, staff is recommending the purchase of manufactured homes that meet the criteria below. The proposed floor plans for these units are attached to this report.
 

Space No.	Mobile Home Park	Number of Bedrooms	Number of Baths
37	PLH	2	2
70	View Park	3	2
114	View Park	3	2

In order to remove the existing mobile home units and purchase and install new manufactured homes for the above spaces, the Manufactured Housing Act of 1980, requires the Housing Authority to use a retailer that is licensed by the State Department of Housing and Community Development (HCD) to transact business related to the purchase and sale of new manufactured homes, mobile homes, multi-family manufactured homes and commercial modular units.  Before the Council this evening is an agenda item for an agreement with Augusta Communities, LLC (Augusta), an experienced licensed retailer who has managed the City's mobile home parks since 2018 and would be able to complete the aforementioned project elements pursuant to their Scope of Work, included in Exhibit A of their Asset and Management Agreement. Therefore, if approved by the Council, staff is recommending that the Housing Authority authorize Augusta Communities, LLC to act as the licensed retailer on behalf of the Housing Authority.

During the process of pricing the units, Augusta Communities reached out to three manufacturers, Cavco (formerly Fleet Wood), Skyline, and Clayton (formerly Golden West).  Fleet Wood was non-responsive to the pricing request and Skyilne was 15% higher in cost per unit than Cavco for a comparable product; therefore, staff is recommending the purchase of manufactured homes from Cavco.

The total cost, including a three percent contingency to purchase and install the three manufactured homes, is approximately $662,721.  Augusta Communities has arranged to have the units removed from the park by a company that will scrap the units for any valuable parts at no additional cost.  The following is a breakdown of the cost per unit:
 

Staff is proposing funding for this request that will have no impact on the City's General fund.  Staff is requesting the approval of the following budget appropriation of funds:

A. Affordable Housing Fund: There is currently $485,000 in developers' fees restricted to the provision of affordable housing; staff is requesting that all of this funding be applied to this project.  Staff anticipates that an additional $660,000 will be added to this fund due to current housing development projects that are in the pipeline over the next 12 months; and therefore, this fund will be replenished in the near future for other projects.

B. Neighborhood Stabilization Fund. There is $103,687 in the Neighborhood Stabilization Fund (NSP) that is currently available.  This funding was provided to jurisdictions during the Housing Crisis of 2008, to help stabilize neighborhoods at a time when there was an abundance of foreclosures on the market.  The funds the City originally received from the NSP were to purchase and rehabilitate a home to provide housing to a low-income household.  The funds currently available are from a loan repayment from the family that received assistance through the program in 2012.  These funds can be used to purchase and rehabilitate housing units made available to low-income households.  Staff is requesting that all of this funding be applied to this project.

C. Housing Authority: Staff is recommending that the balance of the funding ($74,034) come from the Housing Authority's budget.