HomeMy WebLinkAboutStatus Review of the Huntington Harbour Mobile Home Estates CITY OF HUNTINGTON BEACH
City Council Interoffice Communication
To: Honorable City Council Members
From: Debbie Cook, Mayor
Date: October 27, 2008
Subject: COUNCIL MEMBER ITEM FOR NOVEMBER 3, 2008, CITY
COUNCIL MEETING— STATUS OF HUNTINGTON HARBOUR
MOBILE HOME PARK
STATEMENT OF ISSUE:
The Huntington Harbour Mobile Home Estates (HHME) is a 130-unit senior mobile
home complex located at 16400 Saybrook Lane. The park was constructed in March
1972, with a 55-year lease term and rates are set by appraisals every five (5) years
commencing in 2002. In May 1999, the residents formed a non-profit corporation and
purchased the lease ($3,896,100). The lease for the mobile home park is separate from
the property. In November 2006, the land was sold to Burnham USA for$19,000,000.
Over the last two years, there have been several lawsuits between the two parties
(HHME and Burhnam). Pursuant to the lease terms, the five-year appraisal was
recently completed (due 7/07; finalized 8/08). The land appraisal in 2002 was
$8,300,000 and the 2007 appraisal has set the land value at $30,800,000. The new
land value is used to calculate the rent of the mobile home park (6% of land value) and
the new rent is due retroactive from 7/07.
The HHME Board had assumed that the land value would be increased and felt that the
amount would be between $14 to $16 million dollars. In anticipation, the Board
collected an increased amount of rent to assist with the retroactive payment due.
However, due to the increased appraised value, the retroactive rent is close to $1.5
million. The Board states it can pay approximately half of the money from reserves and
is trying to negotiate the remaining retroactive payment with Burnham.
Over the last two years, with the anticipated increase in rent due to the new appraisal
and continued litigation, there has been a strain on the residents. The Board had
increased the rent to $1,570 per space in July of 2007, anticipating a higher appraisal of
the property. This increase created a financial burden on the senior complex resulting
in approximately 25 homes for sale in the park. In addition, one senior lost his home to
repossession due to an inability to pay the rent space and mortgage on the home.
11---3 - boa?
Aj
Status of Huntington Harbour Mobile Home Park
Page 2
October 27, 2008
Due to the increase in land value, the rent for the spaces will be increased to $2,141 per
month. There are many additional residents that can not pay the increased amount.
This may lead to additional foreclosures, repossessions, and/or abandonment of units
by owners. The resulting foreclosures create several issues for the HHME and the city:
1) the loss of monthly space rent, which hinders the parks' ability to pay the lease rent;
2) the write off of City Housing Rehabilitation Loans which include four (4) loans for a
combined total of$41,000; and 3) the emotional/physical toll on the senior residents
who lose their home and have no alternative housing.
RECOMMENDED ACTION:
Direct the Mayor to write a letter on behalf of the City asking the Housing Community
Development (HCD) and Attorney's Generals office to review the current situation at
HHME or any other action as determined by the City Council.
Attachment: Huntington Harbour Mobile Home Estates Timeline
Space Rent Comparison
xc: Fred Wilson, City Administrator
Paul Emery, Deputy City Administrator
Bob Hall, Deputy City Administrator
Joan Flynn, City Clerk
Stanley Smalewitz, Economic Development Director
HUNTINGTON HARBOUR MOBILE HOME ESTATES
(SENIOR PARK TIMELINE)
03/06/1972 05/19/1999 06/01/2002 11/29/2006 12/06/06 03/05/07 04/10/07 06/05/07
Park construction and Residents formed First appraisal was HHME offered Land sold for Burnham's offers to Burnham offers Burnham filed two 30
lease starts,key lease non-profit corpora- $8,300,000 $19,000,000 to pur- $19,000,000 to Burn- sell for$40,000,000 ground lease payment day notices re:insur-
items are: tion HHME and chase land. ham USA of$1,650 per space a ance,records etc.
bought lease: month not including
•Between Phelps tax and park operat- •High legal bills on
family and Ghents •Paid$3,896,100 for ing expenses. this issue continued to
(friends),55 year lease($29,970 ea or 02/08.
term.Rents set by $322/monthly loan
appraisals every 5 payment for each
years starting in 2002 resident).
and thereafter.
•Ground Lease pay-
ments are 6%of
appraisal and are
retroactive to lease
appraisal date.
•Tenant maintains
senior park and pays
all costs including
property taxes.
06/07 to 04/08 08&09/07 01/08/08 04/08/08 04/15/08 05/01 to 08/31/08 08/31/08 Current
Burnham suit to Burnham files mul- Burnham offers: Burnham files 2nd Trial on first suit Appraisals delayed by Final appraisal HHME currently
change appraisal tiple 30 day notices of Lease$1650 per mo suit,wants$455,000 1st suit begin $30,800,000 trying to negotiate
methodology various kinds not including taxes or back rent settlement with Burn-
operating expenses or •New rent would be ham
•Litigation caused •7 Inspections claim purchase offer of •Continuing lawsuits over$2,100 mo.
high legal fees approximately 400 $38,000,000 effectively stops sale •Burnham on
($200,000 in this 14 questionable viola- of homes. •Retroactive amounts 09/19/08 threatens to
month period and tions. HHME purchase of$1,500,000 are evict and require land
impacts resale's in counter offer of claimed to be cleared to origi-
park). •More HHME report- $22,000,000 rejected nal state.
ing accounting viola-
tions alleged.
HUNTINGTON BEACH MOBILEHOME SPACE RENT HUNTINGTON BEACH MOBILEHOME SPACE RENT
COMPARISON INCLUDING TAXES AND ALL FEES COMPARISON INCLUDING TAXES AND ALL FEES
Huntington Shorecliffs 20701 Beach Blvd.
Huntington Beach,CA 92648(714)536- 304 $1250
4417 � �
Rancho Del Rey Mobile Estates 16222 PARK NAME&AD6ki` ' SPACES RENTS AS OF
Monterey L Huntington Beach,CA 92649 379 $975-1020 10/08
(714)846-1429(includes 01/01/09 adjust) Huntington Harbour Estates 16400 $1248+$322
Los Amigos MHP 18601 Newland St. Saybrook Ln, Huntington Beach,CA HHME Share
Huntington Beach,CA 92646(714)962- 145 $700 92649(714)846-1010 130 Expense=
7422 Current space rent $1570
Sea Breeze Mobile Estates 5200 Heil Ave.
Huntington Beach,CA 92649(714)846- 65 $700 Huntington Harbour Estates 16400
3888 Saybrook Ln, Huntington Beach,CA $1819+$322
Del Mar Mobile Estates 19251 Brookhurst 92649(714)846-1010 130 HHME Share
Projected new rent Expense=
ro per St.Huntington Beach,CA 92646(714) 142 $695 � p $2141
968-0484 $30,800,000 appraisal
Skandia Mobile CC 16444 Bolsa Chica Huntington By the Sea 21851 Newland St.
Huntington Beach,CA 92649(714)846- 167 $699 Huntington Beach,CA 92649(714)536- 306 $1200-$1400
9693 1 1 1 3826
Pacific Mobile Home Park,80 Huntington,
Huntington Beach,CA(714)536-3832 252 $925
Cabrillo MP 21752 Pacific Coast Hwy
NOTE:HHME"share expense"of$322.00 represents the monthly cost of owning a Huntington Beach,CA 92643 (714)421- 45 $1350-1575
3148
share of the HHME Homeowners Association.These funds were spent to purchase Villa Huntington Mobile Castles,7850
the existing lease between the landowner(now Burnham USA)and HHME in Slater Ave,Huntington Beach,CA(714) 125 $850
1999.The purchase of the lease by HHME(A Non-Profit Mutual Benefit CA 847-1181
Corporation)was done to ensure the lowest possible total rent cost for the Huntington-by-the-Sea Mobile Village,
shareholders.All shareholders are over 55 years old and most are retired and on (714) Newland St,Huntington Beach,CA 306 $1100 1450
(714) Newland
fixed incomes.The rent increase resulting from the$30,800,000.00 appraisal will Huntington Mobile Estates 7652 Garfield
trigger a reduction of shareholders(economic eviction)and further increase the Ave.Huntington Beach,CA 92648(714) 105 $820-945
monthly rent figure. 847-3888
Sea Aire Village,6241 Warner Ave,
Current shareholder delinquency as of October 2008 and projected forecast of Huntington Beach,CA 92648(714)847- 230 $989
1121
delinquency and space vacancies project a monthly rent cost of$2438.00 Beach View MHP 17261 Gothard St.
($21 16.00+$322.00)by December. Huntington Beach,CA 92647(714)847- 82 $584-614
4444(includes 01/01/09 adjustment)
Rancho Huntington MH Estates 19361
Brookhurst St.Huntington Beach,CA 194 $700
92646(714)962-7311
Brookfield Manor 9850 Gafield Ave.
Huntington Beach,CA 92646(714)968- 139 $715-740
0484(includes 01/01/09 adjustment)
Mariners Pointe 19350 Ward St.
Huntington Beach,CA 92646(714)968- 98 $695
0820
10/14/08 10/14/08
ORDINANCES FOR ADOPTION
16. (City Council) Adopt Ordinance No. 3816 Amending Chapter 10.12 of the
Huntington Beach Municipal Code (HBMC) Relating to Speed Limits.
Approved for Introduction October 20, 2008.
Recommended Action:
After City Clerk reads by title, Adopt Ordinance No. 3816, "An Ordinance of the
City of Huntington Beach Amending Chapter 10.12 of the Huntington Beach
Municipal Code Relating to Residential Speed Limits."
Approved 7-0
COUNCILMEMBER ITEMS
17. (City Council) Submitted by Mayor Debbie Cook Requesting a Status
Review of the Huntington Harbour Mobile home Estates (HHME).
Recommended Action:
Direct the Mayor to write a letter on behalf of the City asking the Housing
Community Development (HCD) and Attorney's Generals office to review the
current situation at Huntington Harbour Mobile Home Estates (HHME) or any
other action as determined by the City Council.
Item moved forward to first item on agenda.
Motion to:
1) Direct the Mayor to write a letter on behalf of the City asking the
Housing Community Development(HCD) and Attorney's Generals
office to review the current situation at Huntington Harbour Mobile
Home Estates (HHME), and
2) Direct the City Attorney to look into strengthening the Mobile Home
Conversion ordinance for this and other future issues, and
3) Direct staff to broker a meeting between HHME and Burnham USA.
Approved 4-3 (Hansen, Green, Carchio no)
COUNCILMEMBER COMMENTS (Not Agendized) LL-
ADJOURNMENT— 10:24 P.M.
Council/Agency adjournment to a Special Meeting on Monday, November 10, 2008
at 6:00 PM in the City Council Chambers, 2000 Main Street, Huntington Beach,
California for a Public Hearing on the Appeal of the Planning Commission's Approval of
EIR 07-004, ZTA 07-003, GPA 07-001, ZMA 07-004, and CUP 08-043 - The Ripcurl
Project.
The next regularly scheduled meeting will be Monday, November 17, 2008 at 4:00
PM in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California.
INTERNET ACCESS TO CITY COUNCIUREDEVELOPMENT AGENCY AGENDA AND
STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT
httpJ/www.surfcity-hb.ora
Council/Agency Agenda— Monday. November 3, 2008 Page 7 of 7
Fax sent bg : 9497600430 BURNHAM USA 18-31-88 82:87p Pe: 2/4
HUNTINGTON MOBILE HOME INVESTMENTS, LLC
2200 Newport Center Drive,Suite ISO
Newport Beach,California 926.60
(949)760-9150
ra
Q
cm
October 31,2008 S7 o wiz-
Mayor Debbie Cook 'TM�
Members of the City Council - -0
City of Huntington Beach r'
2000 Main Street > }
Huntington Beach,California 92648 d w
Re: Huntington Harbour Mobile Estates
Ladies and Gentlemen:
This letter is mitten in response to the many inquiries that you've received from Huntington
Harbor Mobile Estates residents.No doubt, you have heard the HONs side of the story and we
wanted to make sure that our position as"land owner"was also being fairly portrayed.
As you can imagine,this is a very complex matter so it's best to start with a few basic facts that
are indisputable,but necessary for you to•gain an understanding of the position that we as lmd
owner are being forced to take.
In the past, the land owner has had no involvement in the operations of the park. The land
owner is only responsible for leasing the fee land(pursuant to a ground lease)to an entity that
in turn leases the spaces to the individual residerb. When the park was originally developed
many years back, the land owner entered into a ground lease w th the original mobile home
park developer. As is customary in these types of developments, the developer was
responsible for establishing the operational budgets to be provided to the individual residents
based on overall costs of the park including its obligations(financial and otherwise) under the
ground tease. The sum total of these costs would be the basis upon which the monthly rent for
its resents would be established. Rightly or wrongly, the HOA agreed some years ergo to
assume(acquire)the developer's leasehold position and is'now subject to the same terms and
conditions that the original developer agreed to be bound by with the land owner.
The 1971 ground lease (or "agreement") that the original land owner and original developer
entered into is a very straightforward document that, like most lease agreements, spells out the
basic lease details such as length of term, amount of rent, rent increase fomwlas over the
lease term,etc. It is important to understhnd that this is not a new agreement and one that has
existed in exactly the same form and substance since the park's inception. It is critical to
understand that we did riot create the agreement or modify it in any way. Rather we inherited it
when we bought the fee interest in late 2006. Furthermore, every individual resident would
have been aware of the ground tease, as it was presumably either referenced or attached to
their lease.
3
Q�
Fax sent W : 9497608430 BURNHAI9 USA 18-31-80 82:88P Ps: 3/4
Mayor Debbie Cook
Members of the City Council
City of Huntington Beach
October 31,2008
Page 2
When the ground lease was originally negotiated,it set forth a specific length of lease term. In
fact it was a term that would have expired over 10 years ago.However, before the property was
developed, the mobile home park developer(predecessor to HOA)pleaded with the than land
owner to extend the ground lease for a much longer term due to its banks financing
requirements. The land owner reluctantly agraW to do so, but only in exchange for the land
value being reappraised every live(5)years during that extended period to its"highest and best
use". The appraisal process was designed to protect the land owner's interest. This was also
later proven in Court proceedings.
The matter of disagreement with the HOA has to do with the rent tease, which is fair and
reasonable, as well as consistent with the underlying ground lease. The lease called for the
adjustment to occur In 2007.which was to be based on the fair market value of the land at its
"highest and best use" as of May 2007. The language was clearly defined and we can only
speculate why the HOA asserts there was or is a different intent. Nonetheless, the ground
lessee (HOA) has now gone through multiple law firms in less than two years defending an
unfounded position, so it could defer the inevitable rent increase. In every instance, the Court
has found in favor of the land owners position and both parties have been%Meded to wasted
attorneys'fees. We believe the HOA has clearly received bad advice.
Earlier this year the land owner was forced to have the Court determine the intent of the Clause
in the ground lease having to do with the land valuation.The Court reeled that the ground lease
language in question was in fact unambiguous and the rent for the property was to establish by
an appraisal process which an parties agreed to be bound by in the Ground Lease Agreement.
Accordingly, the parties each selected their own appraiser. Those two appraisers selected a
mutually agreed upon third appraiser. All three appraisers conducted evaluations as to value.
The process requires just 2 of the 3 appraisers to agree.All 3 appraisers unanimously agreed to
a market value and thus the rent.
As an aside, the HOA has set up a reserve account specifically for monies due the ground
lessor in connection with the adjusted rent. We fait it would exhibit good faith on the part of the
HOA to release the fund held in the reserve account, and stated that those funds would need
to be paid toward back rent in advance of any further negotiations. Those monies have yet to
be paid.
Despite what you might otherwise hear from the HOA, based on the new market land valuation
that was unanimously agreed upon by all 3 appraisers in August 2008, a new net ground rent
was established that is to be paid to ground lessor. The new ground vent equals $154,000 per
month which is to be divided among 130 residents (using simple math and dividing payment
equally among the 130 individual resident spaces, this equals$1,186 per month per individual
space).
In connection with the appraisal process called for In the ground lease, the HOA hired its own
appraiser,who issued a report in August 2007. In that report the HOA's own appraiser stated
that a reasonable and well supported rental rate for the mobile home park would be$►1,600 per
Fax sent W : 9497688430 BURPIIi O USA 18-31-88 82:88p PS: 4/4
Mayor Debbie Cook
Members of the City Council
City of Huntington Beach
October 31,2008
Page 3
month. He also says that this rate is based on space rent only, with no submetered or pass-
through utility or other ancillary services Included.
The now total spece rent for each resident to be charged by the HOA would be$1,185 for
ground rent, approxhmately $154 for taxes, plus operating expenses (Including
Insurance)of approx➢niately$300 per month.Thus,the total maorithly space rent that the
parks homeowners would pay to the HOA under ttte unanimous land valuation would be
almost exactly the same as the nwnthly rent the HONs own expert stated was
appropriate over a year agoll
Finally, the land owner recognizes that there are many senors living in Huntington Harbour
Mobile Estates and it has absolutely no interest in leaving anyone without a home. As a result.
it has repeatedly offered to work together with the HOA on financing aid to help insure that no
qualified, long-term tenant in good standing will otherwise be required to relocate due to their
Inability to afford the increase in space rent(directly due to the increase in ground rent from the
property s 2007 valuation).This,of course, assumed that the HOA was in good stancling under
the ground lease and continued to abide by the terms of the underlying agreement.
We are available for your questions and would be happy to schedule a meeting with you to
discuss this issue. We hope that this better clarifies the issues for you.
Sincerely
Therese Hotvedt
Manager
THlif
CC. Jennifer McGrath,City Attorney
Fred Wilson,City Administrator
Vickie Talley,Talley and Associates
OUR STORY
HHME,
ter.;
r3
Senior Mobile Home Park
1
IN LESS THAN 2 WEEKS
OBTAINED OVER 29100
SIGNATURES FROM LOCAL
RESIDENTS AND BUSINESSES
SUPPORT US TO
SAVE OUR HOMES!
HHME IS A NON-PROFIT
MUTUAL BENEFIT
CORPORATION
® All costs are passed through to each
resident equally, not allowed to make a
profit
Total rent is determined by:
— Ground Lease paid to Burnham
— All Maintenance and maintenance fees
— Taxes and insurance
— Maintain a Reserve Account required by law
2
WE ONLY WANT TOTAL
COMPARABLE RENT TO
OTHER MOBILE HOME
PARKS IN HUNTIN TON
BEACH SO ICE CAN
KEEP OUR HOMES!
Huntington Harbour Mobile Estates
Current Space Rent
® 130 Spaces
® $1248 Rent + 2
(Rent, including all expenses and the
HHME Corporate Stock Share)
® TOTAL CURRENT RENT
$ 1570
3
Huntington Harbour Mobile Estates
® Current Rent ® New Rent
• $1248 Rent + ° $1819 Rent + $322
$322 (Based on NEW
appraisal of
$30,800,000)
1 570 $2141
Rancho Del Rey Mobile
Estates
COMPARABLE
® Most comparable to us
s Next Door - We share a common wall
® 379 Spaces
*Total Current Rent 7 - 100
4
HHME SHOULD BE LOWER
NOT ALMOST DOUBLE THE
RENT OF
RANCHO DEL REY
•HHME Approximately - 2000
*Rancho Del Rey - $1020
*Average Mobile Rents $900
(All Huntington Beach Mobile Home
Parks)
TOTAL RENTS INCLUDING LAND LEASE,TAXES,OPERATING COST AND
ALL FEES
2500 __........._ ___.......... ........_._..... __.__ ____. --
Appros Rent @$30.8M
2000 __._._.._._.—._.--- L525.75
2,00�__2
WW1500
... 1,248 Current Rent
W1000.._.—.____.____........__—_______._..._ _..__...__. Average Me Mobile Home Space Rent
510 82As Of 10/14/08-$909500 ... _......... ..... _._...._..... ____. .... -........_... _.
Dec-06 Jun07 Dec07 Oct08 Future
5
Orange County Register
Reports
* ®C lowest rent increase in 6
years
* Property values falling
NOT A FAIR FI HT !
® Retired Seniors with limited income just
trying to survive and save their homes
® Against large investors with deep pockets
and professional full time staffs
WE NEE® YOUR HELP
6
VALUATION
KEY ISSUES
1 . Lease "With the zoning classification
existing or obtainable at that time"
2. No where in our lease does it say — "We
have to return the property to the lessor
in it bare land condition" as in the
Sept. 19, 2008 Scare Letter
SPIRIT AND INTENT OF LEASE
Paragraph 13.3
® STATES; The parties acknowledge that
under the "R-2" classification, the
Premises are much more valuable than
under an W-H" classification, and that
once the zoning change is made, the City
will not allow landlord to rezone the
premises "R-2"
Reconciliation of Value
"In this assignment, we (the appraisers) were
instructed to estimate the `AS IS' market value of
the fee simple estate interest in the land."
* This assumes that residents or Burnham are
responsible to return the park to bare land.
* Burnham bought a mobile home park and not
vacant land!
* It has been zoned Mobile Home Park since 1972.
8
(As quoted by)
Neet Appraisal 2007 of $12, 00,00
" Rate for hypothetical newly constructed
mobile home park would be $1,600 per
month = "based on space rental only, with no
sub-metered or pass-through utility or other
ancillary services included."
"Recent sales for similar communities...found in
the range of $12,000,000 to $45,000,000
...based on average rental rates in the range
of $400 to $1 ,150 per month."
(As quoted from the appraisers)
Walden-Marling Inc. 08/8/2007
($30,800,000 appraisal)
Extraordinary Assumptions #1
• "Our analysis specifically excludes the
existing improvements, leases or other
encumbrances between the land
owner and the improvements owner."
9
(As quoted from the appraisers)
Walden-Marling Inc. 08/8/2007
($30,800,000 appraisal)
Extraordinary Assumptions #2
s "The analysis assumes the site is vacant
and available to be put to the highest and
best use. Under the assumption of a vacant
site any existing political or social
encumbrances which may have been created
by the existing improvements is assumed
to be removed."
HOW ABOUT EXISTING ZONING?
EXTRAORDINARY
1 a: going beyond what is usual, regular,
or customary <extraordinary powers>
b: exceptional to a very marked extent
<extraordinary beauty >
Webster's dictionary
10
WHERE IS THE MORAL
JUSTIFICATION
• Seniors lose their homes without compensation
• Veterans on disability
• Widows and Widowers without family support
• Average age 78 year old
• Seniors on Fixed Incomes
THEY ALL PLAYED BY THE RULES AND
CONTRIBUTED TO OUR SOCIETY AND NOW
FACE POSSIBLE EVICTION
ECONOMIC EVICTION
11
WE ARE BEING PUSHED INTO
ECONOMIC EVICTION SV
UNJUSTIFIED RENT INCREASES
The land has been zoned and valued
as a mobile home park since 1972.
The new appraisal was done as
"Highest Use without Regard to
Current Mobile Home Zoning"
Which caused the inflated rent
12
SPACE + HOME MARKET PRICE
• Before Burnham • After Burnham
2007 O Space + Home Average
• Space + Home Average $50,000
$225,000 • Share Price $0
® Share Price $29,000
Prior to Burnham there was a waiting list
Continual litigation scared potential buyers from purchasing our homes!
09/08/2008 BURN HAM
SCARE LETTER
® Retroactive Rent $1 ,493,000
® They want $840,000 NOW
$700,000 paid over 2 year @5% interest
Loan would add $236 per month per
space
13
$30,800,000 Ground Lease Appraisal
Ground Lease payment $1,184.62
Taxes, maintenance, and
all expenses $ 416.00
Burnham Loan Pmt.
($700,000 @5% - 2 yrs) $ 236.00
Reserve Contribution $ 46.97
TOTAL MONTHLY PAYMENT $1 ,6 3a59
(Assuming HHME pays $840,000 back rent)
TOTAL PROPOSED RENT $1 ,6 3.59
Does not include Corporate Stock
share payment $ 322.06
Does not include attorney fees
($200,000 in the last year)
Total $ 2,205.65
14
09/19/2008 BURNHAM
SCARE LETTER
® Retroactive payment of $1,493,000 due within 5
days consider this the demand letter
HOA required to quit and surrender
• Return property to the lessor in its bare land
condition would still apply
• This letter sent fear and stress
throughout the community
WE JUST
WANT
COMPARABLE
RENTS !
15
HUNTINGTON HARBOUR
MOBILE ESTATES
SENIOR PARK
TIMELINE
Mar 6, 1972
• Park construction and lease starts
• Ground Lease payments are 6% of
appraisal beginning in 2002
• Tenant maintains the senior park and pays
all costs, including property taxes and
insurance
16
May 19, 1999
• Residents formed non-profit corporation
HHME and bought lease
• Paid $ , 96,100 for the ground lease
2 , 70 per household
• Or $ 2/monthly payments
June 1 , 202
• First Appraisal was
$ 9 0 5000
17
Nov 29, 2006 ° HHNIE learned land was for
sale and offered
$199000,000
to purchase land
Dec 6, 2006 Land sold for
$1 ,000, 00 to
Burnham USA
• Burnham's offers to sell land
Mar 5, 2007 to HHIVIE for $40,000,000
Apr 10, 207
• Burnham offers ground lease
payment of 160 per space, NOT
including taxes and park operating
expenses, in lieu of new appraisal
due in two months, 6/07
18
Jun 2007 to Apr 2008
• Burnham legal suit to determine appraisal
methodology
• Litigation caused high legal fees -
$200,000 in this 14 month period
• Parks resale's are severely impacted
Aug007 to Sep 2007
• Burnham files multiple 30 day notices to
perform or quit (eviction)
• Multiple inspections claim approximately
400 questionable violations
• More HHME reporting accounting
violations alleged
19
Jan 8, 200
• Burnham offers — Lease $1650 per
month not including taxes or operating
expenses
• Burnham offers to sell to HHMIE for
$3890 ,000
® HHME Counter offer - Purchase
$ ,000,000
• Burnham rejects counter offer
Apr8, 2008
• Burnham files 2nd lawsuit wanting
$ 55,000 in back rent
• High legal costs continue
• Continuing lawsuits effectively stops sale
of homes.
20
Apr 15, 2003
• Trial on first lawsuit concludes
• Sent back to appraisers to
determine value of land
Aug 31 , 2003
• Directed appraisal - $30,800,000
(rejected by HHME)
• New total rent would be over $2,000 per
month
• Retroactive amounts of $1,500,000 back
rent are claimed
21
CURRENT
• HHME currently trying to negotiate
settlement with Burnham
® Burnham on Sep 19, 2008 threatens to
evict seniors and require land to be
cleared to original state
WHERE IS THE MORAL
JUSTIFICATION
• Seniors lose their homes without compensation
• Veterans on disability
• Widows and Widowers without family support
• Average age 78 year old
• Seniors on Fixed Incomes
THEY ALL PLAYED BY THE RULES AND
CONTRIBUTED TO OUR SOCIETY AND NOW
FACE POSSIBLE EVICTION
22
PART 5
HIGHEST AND BEST USE A
BARE LAN® AND WITHOUT
MOBILE HOME PARK ZONING IN
ORDER TO INCREASE RENTS
TO SENIORS THROUGH
ECONOMIC EVICTION
23
We have not gone through
multiple law firms. We still have
the same corporate attorney that
represented us in the first lawsuit.
We have hired an additional law
firm to fight continuing litigation
from Burnham, USA.
BA® LEGAL ADVICE?
There has been only one trial and in
accordance with the judge's ruling, the
parties thereafter entered into the
appraisal process.
24
The disagreement is about rent and their
demands are not
"fair and reasonable".
All we want is comparable total rent— not double our
most comparable community next door. The
percentage increase demanded by Burnham will
increase our rent as compared to 2002 levels by:
2 0%01
Appraisers made��
"EXTRAORDINARY ASSUMPTIONS"
To achieve the $30,800,000
25
(As quoted from)
Neet Appraisal 2007 Of $12,300,000
" Rate for hypothetical newly constructed mobile
home park would be $1 ,600 per month =
"based on space rental only, with no sub-metered
or pass-through utility or other ancillary services
included."
"Recent sales for similar communities...found in the
range of $12,000,000 to $45,000,000 ... based on
average rental rates in the range of $400 t®
1 ,160 per month."
They say "NO qualified, long term tenant in
good standing will otherwise be required to
relocate due to... .the increase in space
rent. . .caused by the increase in ground
rent".
None of our residents can afford double the
fair market total rent of $2,000
26
They need to negotiate in Good Faith !
For the sake of seniors in our park that have
lived this nightmare for 2 long years it
must end now.
We need comparable total rents to
Save our Homes
27
RECEIVED FROM
D q� _. . CORD R iL E f
FORCO 3'° P110 (�
CITY OF C1 FILE
aff OLM OFFIC" JMN L FLYNN.,CITY CLERK
MAN L.FLYNK CIT"�"
CHAPTER 2. MOEILEHOME PARKS AND INSTALLATIONS
Article 1. Administration and Enforcement
§ 1000.Application and Scope.
(a) Except as otherwise provided in sections 18300, 18303, and 18304, Health and Safety Code,the
provisions of this chapter shall apply to the construction, use, maintenance, and occupancy of mobilehome
parks, mobilehome and special occupancy lots, permanent buildings, accessory buildings or structures,
and building components wherever located, both within and outside of mobilehome parks, in all parts of the
state.These provisions shall also apply to the use, maintenance, and occupancy of manufactured homes,
mobilehomes, multi-unit manufactured homes and recreational vehicles,and the installations for supplying
fuel gas,water,electricity, and the disposal of sewage from accessory buildings or structures, building
components, recreational vehicles, manufactured homes, multi-unit manufactured homes and mobilehomes
wherever located within mobilehome parks, in all parts of the state.
(b) Provisions that apply only to Special Occupancy Parks, or separate designated special occupancy
park sections within a park, are located in Title 25, California Code of Regulations, Division 1, chapter 2.2
of this division.
(c),.Existing construction, connections,and,installations of units,=accessory,buildings:.and structures,
building.components Plumbing,electrical,;fuel_ga&:.fire.protection, earthquake=resistant.braci, and
permanent'buildings�made�before�the effective:dateiof�the-:requirements_ofuthis chapt6umaycontinue:in:u5.
so'long.as,.theyvere in compliance-with.requirementsrin�effect-at the:date of�thelr�instatlationiand�are..not-
found to--be.substandard:
NOTE:Authority cited:Section 18300,Health and Safety Code.Reference:Sections 18303,18304,18552,18605,18610,
18612, 18613, 18620, 18630, 18640, 18670, 18690,and 18691, Health and Safety Code.
§ 1002. Definitions.
In addition to the definitions contained in this section,which apply only to this chapter,the definitions
contained in sections 18200-18700 of the Health and Safety Code and those definitions relating to building
standards contained in Title 24, California Code of Regulations Parts 2, 3,4,and 5,are also applicable to
-this.chapter.
.(1)Accessory building or structure. Any awning,window awning,cabana, ramada, storage cabinet,
storage building, private garage,carport,fence,stairway, ramp, or porch, or any other building or
structure other than a patio, established for the use of the occupant of a unit.
(2)Approved. Reviewed and/or inspected and deemed acceptable to the local enforcement agency.
(3)Architect. A person licensed by the State of California,qualified to practice architecture in this state.
For purposes of this chapter, an architect designing or approving plans shall have skill, knowledge, and
expertise in that scope of practice.
(4)Awning.An accessory structure, used for shade or weather protection, supported by one or more
posts or columns and partially supported by a unit or other accessory structure installed, erected, or used
on a lot.
(5)Awning Enclosure.An enclosure designed for outdoor recreational purposes, not for habitation,
constructed under an awning or freestanding awning,which may include a screen room, and either an
accessory building or structure,or a building component. 7
111,3109
Mobilehome Parks and Installations Page 1. Updated January 2,2007
T:dlw 7C f6�nr4nv?
RECEIVED FROM
S AS PUBLIC RECORD NC
CITY CLERK'OFFICE
JOAN L.FLYNN,CITY CLERK
a✓=ly _. _.-e cz==es=:r_= : . cz5-c .a Lan: a7 _ne
SUc=es=-=rS a.a. ass .: =f __ a =::C all _n
._;,]s Zease t0 ":,aIIr_. - " and "ienan t" snail be deemed; t:)
refer to and _... __de --ne su=cesscrs and ass-4 gns of Land-
lord and Tenant, res=ect4-ve=1r, without spec: mention
successors or ass ns.
14, 6 Subordination. Landlord shall under
no circumstances be required under any provision of this
Lease to subordinate his fee interest in the Premises, or
any part thereof, to a lender in order to secure any loan
obtained by Tenant with respect to the Premises.
is. Quiet Sniovment.
Landlord covenants that upon payment by
`cn—1,%t :f th= rent herein reserved and upon nbRjj-rver,ce an
performance by Tenant of all the covenants, conditions and
agreements herein contained and on the part of Tenant to be
observed and performed, and subject to matters of record or
which could be ascertained by an inspection or by making
inquiry of persons in possession or by a correct survey,
Tenant shall peaceably hold and enjoy the Premises during
the term hereof without hindrance or interruption by Land-
lord or by anyone _awfully or equitably claiming by, throug.i
or under Tandlord.
16. Surrender and Termination,
16.1 Termination of Lease. ,Upon she- termite;
is-,Lease- from_any _cau5e-whatsoevex;"Tenant -w.ilh
/ 7
-sz.. //3/oo �,
_,. and surrender, and will ;lace Landlord in the excl;s ive
and peaceable possession of the Premises which, except to the
extent ot:erarse expressly . rovided for in any other par.. of
�.ls Lease, c rd
t'h; s..,a_1- be _:�._a.^od order ana. reoai:, o.-. nzr}
wear =nc ear the =o .. z e ' =rovided__ =now"ever �ni
Tenant sha_1._no-_- .hen--be --in-default- - er� under this Lease; Tenant
may, within thirty (30) days after such termination, remove
any trade fixtures installed by Tenant during the term of
this Lease, on condition that.Tenant shall at its own ex-
pense repair promptly all damage caused by such removal.
As used herein, the expression "trade fixtures" shall not
include any buildings or permanent improvements constructed
by Tenant on the Premises, nor any pipes, lines, poles or
connections for utility service.
16.2 Termination of Rights and Oblictations.
Except as otherwise expressly provided for in any other Sec-
tion of this Lease, as of and after the date of to ,i nation
of this Lease from any. cause whatsoever the rights and obli-
gations of the parties to each other, and of Tenant in and
to or with respect to the Premises shall terminate; provided,
however, Tenant shall fully perform any obligation under
this Lease relating to an event occurring or circumstances
existing prior to the date of such termination, including,
but without limitation, the payment of any taxes, assess-
ments, or charges which Tenant is obligated to pay under
Section 6 hereof and which may be a lien upon the Pre-
mises at the date of such termination.
-5 3-
4 'Olt
GARY L. VOGT & ASSOCIATES
REAL ESTATE APPRAISERS AND CONSULTANTS
33191 PASEO BLANCO
SAN JUAN CAPISTRANO,CA 92675
(949)489-8029 GARY L.VOGT,MAI
(949)489.8028 MEMBER,APPRAISAL INSTITUTE
givogt@cox.net CERTIFIED GENERAL NO.AGO07272
January 23, 2008
Robert S. Coldren, Esq.
Hart, King & Coldren
200 Sandpointe, Fourth Floor
Santa Ana, CA 92707
RE: Land Underlying Huntington Harbour Mobile Estates
NEC Heil Avenue & Saybrook Lane, Huntington Beach
Dear Mr. Coldren:
In response to your request, I have estimated the market value of the fee simple interest in the
land underlying Huntington Harbour Mobile Estates. It is my understanding that the function of
this appraisal is to assist in the revaluation of the land under the terms of a 55-year ground
lease entered into in 1971. The effective date of value of this appraisal is May 1, 2007.
As a result of my investigation and analysis, I have concluded that the market value of the fee
simple interest in the appraised land was $33,500,000 as of May 1, 2007.
THIRTY-THREE MILLIKON h,vv FIVE HUNDRED THOUSAND DOLLARS
$33'5001000
In accordance with Clause 5.4.2 of the ground lease, the land is valued at "highest and best use
exclusive of buildings and improvements thereon, in fee simple, clear of all mortgages, liens_or
other encumbrances, including the ground lease, and consistdnt with the_zoning classification
existing or obtainable at that time;. Accordingly, it should be understood that the existing mobile
-_- _.
home park improvements have not been inspected or valued and no consideration is given in
this appraisal to any time delays, legal or physical costs, or land use entitlement issues
associated with closing the mobile home park and removing and/or relocating the existing
tenants and improvements.
Your attention is invited to the accompanying appraisal report which sets forth certain
descriptions, exhibits, market data, calculations, analyses, assumptions and limiting conditions
from which, in part, the value conclusion was derived. In particular, your attention is directed
to the Special Assumptions and Limiting Conditions set out on page four of the
appraisal report.
Respectfully Submitted:
i
Gary L. Vogt, MAI L"
Certified General Appraiser
CA No.AG007272
SPECIAL ASSUMPTIONS AND-LIMITING`C®NDITIU.N$/
I;�addition to the standard assumptions and limiting conditions set out on the prior two pages,this
appraisal is made subject to the following Special Assumptions and Limiting Conditions:
1. That, in accordance with Clause 5.4.2 of the Ground Lease dated July 1971, originally
between—Wilson W. & Arthur D. Phelps, Landlord, and David L. & Angelita B. Ghent,
Tenant-theiand,is valued at"highest:and-best use exclusive ofibuildings and improvements
4hereon,.in fee_-simple,-clear_of-ail-mortgages; liens or--other..encumbrances,-_including.this-
lease,and consistent-with-the zoning classificafion=existmg:_ot obtai�able.at thataime ._;__
2. That the existing mobile home park improvements have not been inspected or valued and
no consideration is given in this appraisal to any time delays, legal or physical costs, or land
use entitlement issues associated with closing the mobile home park and removing and/or
relocating the existing park tenants and improvements.
The foregoing comments are intended as illustrative of the methodology used in this
appraisal. The methodology, as set out in paragraph 1 above, has been conducted in strict
accordance with the definitions and requirements set forth in the ground lease.Said ground
lease provides specific criteria and definitions. However, because this appraiser has been
instructed by the fee owner to consider the possibility that the ground lessee has a different
view of how the appraisal process should be completed, additional work has been
undertaken. Specifically, at the request of the appraiser, documentation concerning the
mobile home park and uses of the park have been undertaken and studied by Robert
McFarland as set forth in his Market Opportunity Evaluation dated September 2007
performed by Market Watch, LLC. In conjunction with that additional research, a
consultation report by James Netzer, MAI, and Netzer &Associates dated October 2007
was also performed and provided to this appraiser.The additional research and background
provided by the two foregoing reports are included in the Addenda of this report. I have also
had an opportunity to review an appraisal report dated November 2006 prepared by the fee
owner's lender, Bank of America. The materials and methodology in those reports have
been reviewed by this appraiser. They also set forth potential factual criteria for appraisal
if the ground lease definitions and criteria are waived or altered by the parties or by judicial
order. Therefore, the highest and best use stated in this Appraisal and the valuation
methodology employed to reach a value conclusion may be subject to change.
GARY L. VOGT&ASSOCIATES Page 4
Real Estate Appraisers&Consultants
r �
GENERAL INFORMATION
INTRODUCTION, FUNCTION, AND PURPOSE OF APPRAISAL:
The appraised property consists of±15 acres of land located at the northeast corner of Heil Avenue
and Saybr000k Lane in Huntington Beach, California. Pursuant to a 55-year ground lease entered
into in July of 1971, the land is currently improved with a 130-space mobile home park known as
Huntington Harbour Mobile Estates.
The function of the appraisal is to assist the parties to the ground lease in arriving at an adjusted
land rental for the 5-year period commencing May 1, 2007.
In accordance with Clause 5.4.2 of the ground lease, the purpose of the appraisal is to estimate
the market value of the land "at highest and best use exclusive of buildings and improvements
thereon, in fee simple, clear of all mortgages, liens or other encumbrances, including the ground
lease, and consistent with the zoning classification existing or obtainable at that time'.
DATE OF VALUE:
The effective date of value of this appraisal is May 1, 2007.
DEFINITION OF VALUE:
The term "Market value" as used in this report is defined as :
"the most probable price which a property will bring in a competitive and open
market under all conditions requisite to a fair sale, with the buyer and seller each
acting prudently, knowledgeably, and for self-interest, and assuming that neither is
under undue duress."
Implicit in this definition is consummation of a sale as of a specified date and the
passing of title from seller to buyer under conditions whereby:
• buyer and seller are typically motivated
• both parties are well informed and each acting in his own best interest
• the property is exposed for a reasonable time in the open market
• payment is made in terms of cash in U.S. Dollars or in terms of
financial arrangements comparable thereto; and
• the price represents the normal consideration for the property sold
unaffected by special financing or sales concessions granted by anyone
associated with the sale.
j The Dictionary of Real Estate Appraisal,Appraisal Institute, Fourth Edition
GARY L. VOGT&ASSOCIATES Page 5
Real Estate Appraisers&Consultants
/ s
11AA,
AWALDEN-INAARLING, INC.
r�3'�'i AN�I,e ...s-',I CL.0 � �...c .� �S� (�l EVA,'F'.^,"R� �E.''.cH
August 8, 2008
Therese Hotvedt
Huntington Mobile Home Investments,LLC
1100 Nexvport Center Drive
Suite 150
Newport Beach,CA 92660
And
Cynthia Goebel
Vice President
HHIVIE Homeowners Association
18400 Saybrook Lane
Huntington Beach, CA 92649
Subject: Appraisal of:
Huntington Harbour mobile Estates Land
16000 Saybrook Lane
Huntington Beach California 92649
Dear Clients:
In accordance with your request and authorization, we have prepared a summary appraisal
report estimating the market value of the fee simple interest in the above-referenced real
property. Our analysis is inclusive of only the land. The appraisal will be used by The Clients
for establishing the land value and subsequent rent for the land. The analysis was conducted
subject to the inteipretations presented inn the judgment related to the subject issued by the
Superior Court of the State of California issued Rlay 12,2008.
The subject property is a land parcel located at the north east corner of Saybrook Lane and Heil
Avenue in Huntington Beach, CA. Per Assessor Counts records the site is a 15.005 acres, or
653,618 square feet. The site is improved with a 130 space mobile home park. The,
improvements are not part of our valuation. The site is treated as free and clear of all existing
improvements and any encumbrances created through the ground lease.
Throughout our analysis, we h2ve retied on infornnaLion provided by representatives of the
property- owner or public records, which is assumed to be accurate. Should it subsequently be
discovered that any of this information is incorrect, we reserve the right to amend the value
conclusion rendered herein.
1 3C 'I i?G`�✓L "f FILL"( n l i f{ Gv Q ;L rti'f t S LA C! i, C,r, 'L66C�
WWW.WALDEN-MARLING.COM
Therese Hotvedt
Huntington Mobile Home investments, I.LC
HC
Cynthia Goebel
HHME Homeowners association
August 8, 0008
Page 2
Our analyses, opinions and conclusions were developed, and this report has been prepared, in
conformity- the Uniform Standards of Professional _appraisal Practice (USP AP) of the
Appraisal Foundation and the requirements of the Code of Professional Ethics and Standards of
Professional appraisal Practice of the Appraisal Institute.
By virtue of our inspection, investigation and analyses, it is our opinion that the market value of
the fee simple interest in the subject property (land only) as described herein, as of i1lav 1, 2007,
is:
THIRTY MILLION EIGHT HUNDRED THOUSAND DOLLARS
$30,800,000
Eztraordthary Ass%tinptiaras:,
1. Our analysis specifically excludes the existing improvements, leases or other
encumbrances between the land owner and the u iprovements owner.
2. The analysis assumes the site is vacant and available to be put to the highest and best '
use. Under the assumption of a vacant site any existing political or social encumbrances ' !
_which-tnav have been created by the existing improvements is assumed to be removed. r,
Further, this value estimate is based on the assumptions, limiting conditions, and certification in
the report. The report in its entirety, including all assumptions and limiting conditions, is an
integral part of, and inseparable from, this letter.
It has been a pleasure to assist you on this assignment. If you have any questions concerning the
analysis, or if-,;-e can be of further service,please do not hesitate to contact us.
Respectfully submitted,
WALDEN-MARLING, INC.
Keith_k.Strobl,_WU
Principal
Certified General Real Estate_appraiser
State of CA No.AG014220
Expiration Date:October 4,2009
Jo ® NEET,
APPRAISAL&CONSULTING SERVICES FOR MANUFACTURED HOUSING COMM Tl�-14t+y,1 , ARKS
August 16,2007 ;+
OCT
Mr.Gordy Hein,President 3 "`
HI-IME Homeowners Association
Huntington Harbour Mobile Estates '--o
16400 Saybrook Lane
Huntington Beach,CA 92649
Re: Huntington Harbour Mobile Home Park, 16000 Saybrook Lane, Huntington Beach, CA
Dear Mr.Hein:
As requested and authorized, I have inspected and appraised the captioned property for the
purposes of formulating and expressing my opinion of the hypothetical market value of the site
underlying the subject property based-on the directions contained in Section 5.4.2 of the ground
lease agreement dated July 19, 1971 referenced herein. The interests appraised are those of the
fee simple estate.
As a result of my investigation and analysis, it is my conclusion that the market value of the land
underlying the subject property, as of August 2, 2007 (the date of last inspection), based on
mobile home park usage as the legally permissible use and subject to the assumptions,
certification,and limiting conditions stated herein, is
TWELVE MILLION THREE HUNDRED THOUSAND DOLLARS
$12,300,000
The valuation is based on mobile home park usage to a development of 130 units as permitted
under the current zoning ordinance and general plan designation. This designation is very
restrictive, and represents a strict interpretation of Section 5.4.2 of the ground lease, which states
in part that the value is to be established "consistent with the zoning classification existing or
obtainable at that time for the Premises." This valuation premise is based on the narrow
interpretation of that statement, since according to the current zoning designation, the only use
that would be permitted without obtaining either a conditional use permit, zone change, or
general plan amendment would be a mobile home park.
A further complication of any valuation based upon a changing of the projected land use from
the current zoning is the influence of a California case known as Humphries Investments, Inc., et
al., v. Lucille I Walsh (202 Cal. App. 3d 766), hereinafter referred to as "Humphries", which
addressed this particular issue. In general terms, this case involved a ground lease agreement
under the terms of which the periodic adjustment was based upon the highest and best use as if
vacant, but the sole use permitted under the terms of the ground lease was mobile home park
26845.JEFFERSON AVENUE,SUITE A P.O.Box 1379
MURRIETA,CA 92562 LAKE ELSINORE,CA 92531
(951)461-7755 FAx(951)356-3558 john.neet@johnneet_com
THE SITE RESIDUAL APPROACH
Introduction
This approach involves the estimate of the market value of the subject property, developed to its
highest and best use, as though complete and operating at stabilized levels of occupancy. From
this base figure, cost of construction and achieving stabilized occupancy levels are deducted as
well as an allowance for entrepreneurial profit requirement. The residual amount represents an
estimate of the market value of the site.
Estimate of Market Value As If Completed and Stabilized
This estimate is made based on a limited scope analysis, based on recent sales of parks with
similar or comparable levels of rents (based on economic rents for the proposed development) in
high cost urban areas. A comprehensive Income Approach and Sales Comparison Approach has
not been completed, but the data and analysis considered is sufficient for the purpose of this
assignment.
A survey of other mobile home parks in the immediate neighborhood and in other coastal
influenced areas of Orange County has indicated that there are market rental transactions
occurring in the range of approximately$1,000 to approximately $1,900 for non-waterfront sites.
Waterfront sites extend to beyond $3,000 in some recent transactions. As the subject has a good,
beach oriented location but is somewhat removed from the actual water amenity, a reasonable
and well supported rental rate for the.hypothetical newly constructed mobile home park would be
$1 600 pec month.-"This rate is based on-space rental only,:with no subinetered_or pass through" _
- _. -
_ utility or other ancillary services included:
There have been a number of recent sales of mobile home parks located in urban, high rental rate
areas in this state that provide a value indication for the subject, as if constructed in the manner
proposed for this hypothetical analysis.
Recent.sales-prices.for_similarly_located manufactured Housing communities have been found in
the range of`$-12;000,000 ao_$45,000,0007 and reflect sales prices in the range of $55,000 to
$143,000 per unit; based.on_average rental rates_in the range of$400 to $l,_150.Der.month..iRental
_,-
multipliers reported in these transactions have been in the range of 125 to 175 times monthly
rent, with the higher multipliers reported for properties with submarket rents. As a result, the
appropriate multiplier for the subject would fall to the lower portion of the range.
16
Huntington Harbour Mobile Estates
16400 Saybrook Lane, Huntington Beach, CA 92649 714-846-1010 Fax 714-377-9690
A Senior Community00
RECEIVE® FROM
AS PUBLIC RECOR &FORCk MEETING
OF tt55
r November 3,2008 CITY CLERKIOFF16t
JOAN L,FLYNN,CITY CLERK
HELP US SAVE OUR HOMES
1
Don Hansen, Council Member
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Dear Don,
9
0 All of us at Huntington Harbour Mobile Estates really appreciate everything you have done
6 for us. We know its an uphill battle,but having you on our side helps us all sleep more
soundly at night.
Huntington Harbour senior citizens are facing economic eviction by huge unjustified
i increases in rent. We don't understand why this is happening when according to the
I Orange County Register, "OC has seen the smallest rent increases in 6 years." It also
! states that rents have basically stalled in 2008 and housing values continue to fall. Yet,
our new proposed total space rent is increasing from$1,248 to over$2,000,which doesn't
I include the mortgage payments and property taxes and insurance on our mobile homes
t which is higher than any other park in the City of Huntington Beach. This increase would
I cause our rent to be almost twice that of the Rancho Del Rey Park immediately adjacent to
HHME. Such an increase would cause most of our residents to lose their homes with no
viable alternative in sight.
Our landlord Burnham's two overlapping lawsuits have made it next to impossible to sell
our homes. We are all senior citizens,many are veterans, who saved and invested in their
homes, expecting to retire and spend their golden years here in Huntington Beach. Now
we find ourselves in danger of losing everything!
The recent August 30 appraisal of our park at$30,800,000 is based on the May 2007
market. The appraisal at the insistence of our new(two years) landlord was made at the
"highest and best use obtainable"rather than as a mobile home park. Our park has been
zoned and used as a mobile home park since its inception in 1972. For the past.36 years
the rents have been based on a land appraisal as a"Mobile Home"zoned property.
1 / t D
i
i
Since the purchase of the park two years ago by a Major Developer/Investor with deep
pockets we have been besieged by two law suits and a dozen"30 day"notices_Our
landlord hires the best lawyers and has full time professional staff working against senior
► citizens with limited incomes just trying to survive. It is not a fair fight!
Comparable fair market rent should determine what the total rent should be. We ask that
our total rent including taxes,maintenance and all fees be comparable with surrounding
parks. Our neighboring park is Rancho Del Rey. We share a common wall with that
i community and their rent is$1.020. This park is gated and has more amenities. Their rent
should be higher than ours.
1 Our adjacent Huntington Beach neighbors want us to remain as a senior mobile home park.
1 We create no crime,traffic and are good neighbors. Approximately 1,500 of our neighbors
1 and friends(growing daily)have signed our petitions.
1 We want to work together with our new landlord(Burnham, USA)to continue to live in
1 our beautiful park and to keep our homes.
B
1 Sincerely,
1
1 Homeowners of Huntington Harbour Mobile Estates
1
1
1
1
1
1
1
1
1
1
/
1
1
1 2
/
KEEP SENIORS FROM LOSING THEIR HOMES!
Senior citizens, living on fixed incomes, in Huntington Harbour Mobile
Estates, purchased their mobile Homes so they could spend their retirement
years in peace, dignity and harmony. Now, they are being threatened with
displacement from their homes_
The current total space rent is $1,570. The proposed new monthly rent will
be increased to $2,140,which does not include their mortgage payment or
utilities.
Tell the City and State enough is enough! Stop outrageous rent increases
and retain the Huntington Beach Mobile Home Conversion Ordinance
as written_ Keep Huntington Beach Seniors in their homes!
We the undersigned, ask the City and State to protect Mobile Horne Seniors.
NAME ADDRESS SIGNATURE
PETITION SIGNATURES ON FILE IN THE
OFFICE OF THE CITY CLERK OF THE
CITY OF HUNTINGTON BEACH - RECEIVED 11-03-08