Regular-General Government # 28.
Board of Supervisors
County Administrator
- Meeting Date:
- 10/24/2023
- Brief Title
- Mobile Home Park Rent Stabilization
From:
Gerardo Pinedo, County Administrator, County Administrator's Office
Staff Contact:
Mark Bryan, Deputy County Administrator, County Administrator's Office, x8150
Supervisorial District Impact:
Countywide
Subject
Receive a presentation on mobile home park rent stabilization and provide direction on next steps. (No general fund impact) (Pinedo/Espitia) (Est. Time 10 min)
Recommended Action
- Receive a presentation on mobile home park rent stabilization; and
- Provide direction on next steps.
Strategic Plan Goal(s)
 |
Thriving Residents |
Reason for Recommended Action/Background
The Board of Supervisors previously directed staff to research the possibility of a mobile home parks rent ordinance and policies. The Board of Supervisors considered this issue between 2006 and 2008, but no action was taken at that time.
The staff reviewed legal cases, policies of surrounding counties, and jurisdictions that have implemented such ordinances. In California, only ten counties have some sort of regulation of the rents at mobile home parks, including Alameda, Contra Costa, Humboldt, Los Angeles, Riverside, San Luis Obispo, Santa Barbara, Santa Cruz, Sonoma, and Ventura. Two surrounding counties, Butte and Lake, have also explored the possibility of a rent ordinance for mobile home parks but have not implemented any regulations.
The City of Woodland established the rent ordinance for mobile home parks in November 2001 through a voter initiative, Measure T, "Manufactured Home Space Rent Control." The following year, the voters approved Measure I, which made technical corrections to the ordinance and made it easier for the Manufactured Home Fair Practices Commission to review applications. The commission meets annually to review and approve annual permissive adjustments of a maximum of 3% or increase equal to 75% of the CPI during the 12-month period. If the park owners believe they did not receive a fair return, they can apply for a Special Adjustment. The commission holds fair return hearings to review applications to raise the rent above the rent ceiling. Net Operating Income (NOI) is used to determine if mobile park owners are getting a fair return. The commission last met in 2017 to review and approve a special adjustment rent increase for a mobile home park.
Typically, mobile home residents own their home, but rent space for the structure. Despite their names, mobile homes are not particularly mobile. It is difficult to move the structure to different locations, and the cost of transportation and potential damage can be high. Most people living in mobile homes are low-income, seniors, and veterans. Low-income families and those on a fixed income may find it difficult to pay to move their home, making it almost impossible for mobile homeowners to relocate after rent increases.
Mobile homes are regulated by a complex patchwork of state and local laws. The California Mobilehome Residency Law protects tenants from being unfairly evicted and outlines other rights and obligations for the tenant and the mobile park owner, but it does not currently regulate rents unless the mobile home park is located within and governed by two or more incorporated cities, leaving it up to local governments to decide whether and how to regulate rents for most mobile home parks. There is also a pending bill in the California Legislature, AB 1035 (Muratsuchi), introduced earlier this year that would enact the Mobilehome Affordability Act. AB 1035 would prohibit the management of a mobile home park from increasing the gross rental rate for a tenancy for a mobile home space more than 3% plus the percentage change in the cost of living over the course of any 12-month period. The bill would also prohibit management from increasing the gross rental rate for a tenancy in more than two increments over a 12-month period, after the tenant maintains the tenancy over a 12-month period, among other protections from rent increases. However, this bill has been put on hold due to pending litigation filed in 2022 challenging the rent caps in the California Mobilehome Residency Law.
Below are the three methodologies that have been used to regulate mobile home rent increases in California:
The staff reviewed legal cases, policies of surrounding counties, and jurisdictions that have implemented such ordinances. In California, only ten counties have some sort of regulation of the rents at mobile home parks, including Alameda, Contra Costa, Humboldt, Los Angeles, Riverside, San Luis Obispo, Santa Barbara, Santa Cruz, Sonoma, and Ventura. Two surrounding counties, Butte and Lake, have also explored the possibility of a rent ordinance for mobile home parks but have not implemented any regulations.
The City of Woodland established the rent ordinance for mobile home parks in November 2001 through a voter initiative, Measure T, "Manufactured Home Space Rent Control." The following year, the voters approved Measure I, which made technical corrections to the ordinance and made it easier for the Manufactured Home Fair Practices Commission to review applications. The commission meets annually to review and approve annual permissive adjustments of a maximum of 3% or increase equal to 75% of the CPI during the 12-month period. If the park owners believe they did not receive a fair return, they can apply for a Special Adjustment. The commission holds fair return hearings to review applications to raise the rent above the rent ceiling. Net Operating Income (NOI) is used to determine if mobile park owners are getting a fair return. The commission last met in 2017 to review and approve a special adjustment rent increase for a mobile home park.
Typically, mobile home residents own their home, but rent space for the structure. Despite their names, mobile homes are not particularly mobile. It is difficult to move the structure to different locations, and the cost of transportation and potential damage can be high. Most people living in mobile homes are low-income, seniors, and veterans. Low-income families and those on a fixed income may find it difficult to pay to move their home, making it almost impossible for mobile homeowners to relocate after rent increases.
Mobile homes are regulated by a complex patchwork of state and local laws. The California Mobilehome Residency Law protects tenants from being unfairly evicted and outlines other rights and obligations for the tenant and the mobile park owner, but it does not currently regulate rents unless the mobile home park is located within and governed by two or more incorporated cities, leaving it up to local governments to decide whether and how to regulate rents for most mobile home parks. There is also a pending bill in the California Legislature, AB 1035 (Muratsuchi), introduced earlier this year that would enact the Mobilehome Affordability Act. AB 1035 would prohibit the management of a mobile home park from increasing the gross rental rate for a tenancy for a mobile home space more than 3% plus the percentage change in the cost of living over the course of any 12-month period. The bill would also prohibit management from increasing the gross rental rate for a tenancy in more than two increments over a 12-month period, after the tenant maintains the tenancy over a 12-month period, among other protections from rent increases. However, this bill has been put on hold due to pending litigation filed in 2022 challenging the rent caps in the California Mobilehome Residency Law.
Below are the three methodologies that have been used to regulate mobile home rent increases in California:
1. Consumer Price Index (CPI) for All Urban Consumers for All Items
a. Measures the average change over time for the prices paid by consumers for consumer goods (US Bureau of Labor Statistics)
i. Calculated over a 12-month period, and the CPI for September is 3.7 % in the US
b. California CPI is updated in February, April, and June by the Department of Industrial Relations
i. CA CPI from June 2022 to June 2023 is 3.1%
ii. San Francisco Bay Metropolitan Area is equal to 2.9%
ii. San Francisco Bay Metropolitan Area is equal to 2.9%
c. Based on the counties' rent ordinances, they use the CPI to calculate the percent increase of rent by taking some or all of the total CPI.
2. Net Operating Income (NOI) used for major rent increases
a. Calculation: Net Operating Income = (Gross Operating Income + Other Income) - Operating Expenses
b. Gross Operating Income includes space rental and other revenue from operating the park
c. Operating Expenses can include taxes, fees, staff compensation, repairs, supplies, and improvements
b. Gross Operating Income includes space rental and other revenue from operating the park
c. Operating Expenses can include taxes, fees, staff compensation, repairs, supplies, and improvements
3. Calculate Cost-of-Living Adjustments (COLA)
a. Rent increase that aligns with US Social Security adjustments
These three existing methods provide a reference for the County to consider potential pathways toward a rent stabilization policy. However, rent control regulations present a complicated balancing of various policy considerations, which may require input from several departments and community outreach, as well as monitoring of AB 1035. Staff seeks Board direction on next steps including further analysis and interest in identifying a recommended regulatory structure.
Collaborations (including Board advisory groups and external partner agencies)
County Counsel
Community Services
Community Services
Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $
- Amount budgeted for expenditure:
- $
- Additional expenditure authority needed:
- $
- On-going commitment (annual cost):
- $
Source of Funds for this Expenditure
- General Fund
- $0
Attachments
- Att. A. Presentation
- Att. B. Correspondence from Dean J. Moser
- Att. C. Correspondence from Matt Davies
- Att. D. Correspondence from Saulo Londono
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Mark Bryan | Mark Bryan | 09/27/2023 01:26 PM |
| Mark Bryan | Mark Bryan | 10/03/2023 03:07 PM |
| Berenice Espitia | Berenice Espitia | 10/12/2023 03:57 PM |
| Berenice Espitia | Berenice Espitia | 10/16/2023 10:00 AM |
| Mark Bryan | Mark Bryan | 10/16/2023 02:24 PM |
| County Counsel | Kimberly Hood | 10/19/2023 10:41 AM |
- Form Started By:
- Julie Dachtler
- Started On:
- 09/13/2023 09:50 AM
- Final Approval Date:
- 10/19/2023