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HomeMy WebLinkAboutAgenda Packet - March 3, 1990 - CC AGENDA ITEM CITY OF AZUSA Azusa, California TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL FROM: #i OY E. BRUCKNE 'RECTOR OF COMMUNITY DEVELOPMENT DATE: MARCH 19, 1990 SUBJECT: STATUS REPORT: RENT STABILIZATION FOR MOBILE HOME PARKS Some time ago, the City Council directed staff to explore the issue of rent control in Azusa mobile home parks. Staff has been researching the subject and has been gathering information in order to develop a comprehensive report exploring the various aspects of the issue, which would help the City Council make more informed decisions. The report will focus on the extent of the problem in Azusa, and the most appropriate method of dealing with the problem. While the report has not yet been completed, the following important facts have been found: 1. Many cities in California have wrestled with the issue of rent control in mobile home parks over the years. This has resulted in the adoption many local ordinances and State laws and has generated extensive case law. 2 . Because rent control pits the residents against the owners, with cities often caught in the middle, the majority of cases have ended up in court, with cities having to expend significant legal costs, as well as costs of administering rent control ordinances. Escondido, for example, has a budget of over $300, 000 per year to administer the program. Carson has spent over $1 million in legal costs since rent control enactment in 1979. Santa Barbara has spent $300,000 in attorney fees. With Azusa's austere budget, the City has to be careful in selecting a solution to the problem which is fiscally responsible. 3 . There are six (6) mobile home parks in Azusa. These vary in age, quality and amenities. Perhaps the oldest is Smithy's Trailer Park and the newest include Arrow Pines and Foothill Vista. Recreational amenities range from none at Azusa Mobile Home Park on Loren Avenue to pool, spa, recreation building and shuffleboard courts at Foothill Vista. 1 / .,� ,x: +r MEMO TO CITY COUNCIL RE: RENT STABILIZATION FOR MOBILE HOME PARKS PAGE 2 4. The extent of the residents' dissatisfaction with rent increases appears to vary among the various parks. In other words, perceptions are stronger in some parks than in others. Staff intends to explore this further, because once the extent of the problem is known, the selection of the most feasible option would be easier. 5. Among the options available to the City Council in dealing with the issue, are the following: • A complete rent control ordinance with administrative budget and staff for implementation. • An ordinance requiring the execution of long-term lease agreements between owners and residents. • Mobile home residents' purchase of the mobile home parks. Some limited State funding assistance is available in the form of short term loans. This would only be possible if the park owners are willing. • Rent subsidies to qualified residents. • Direct negotiations with the owners of parks where rent escalation has been a problem for the residents. • Condominiumizing the mobile home park, so that residents would own their own spaces, coaches, and a portion of the common areas. This would only be possible if the park owners are willing. • Unit sharing. Staff will be completing interviews with mobile home park owners and residents within the next week. It is anticipated that the report will be completed for Council consideration in the next few weeks. A staff recommendation will be made at that time. REB/lmr 2