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HomeMy WebLinkAboutCHARTER AMENDMENT LANGUAGE - CITY COUNCIL MEMBER ITEM FOR TH ,47�,,J CITY OF HUNTINGTON BEACH ;} City Council Interoffice Communication To. Honorable Mayor and City Council Members From: Dave Sullivan, City Council Member P5 Jim Katapodis, City Council Member Date. July 14, 2014 Subject: CITY COUNCIL MEMBER ITEM FOR THE JULY 21, 2014, CITY COUNCIL MEETING— CHARTER AMENDMENT LANGUAGE STATEMENT OF ISSUE: For several months, there has been a steady stream of members of the public bringing forward the extreme rent increases being imposed in mobile home parks. City Charter Section 803, adopted by a vote of the people in 2002, prohibits the City Council from intervening on behalf of the mobile home park residents as it relates to rent. Many of the residents that are impacted by the rent increases are seniors and veterans. There are six exceptions to the prohibition under Section 803(a) permitting regulations related to planning, zoning, building, redevelopment, and transient occupancy tax. RECOMMENDED ACTION: Direct the City Attorney to prepare a resolution, ballot title, statement, and impartial analysis for City Council's consideration at a Special City Council meeting no later than 7/28/14 to establish an additional Charter Amendment (#7) to City Charter Section 803 that exempts any real property within a mobile/manufactured home park as it relates to space rent paid by homeowners who are senior citizens or veterans. xc: Fred Wilson, City Manager Ken Domer, Assistant City Manager Joan Flynn, City Clerk Jennifer McGrath, City Attorney 7*000 C)V� � �0 - �v Item 19. - 1 HB -4-18- Esparza, Patty From: Dombo, Johanna Sent: Monday, July 21, 2014 7:56 AM To: Esparza, Patty; Flynn, Joan; Estanislau, Robin Subject: FW: Surf City Pipeline: Comment on an Agenda Item (notification) From: Surf City Pipeline [ma i Ito:norepllyCab user.govoutreach.com] Sent: Friday, July 18, 2014 6:29 AM To: CITY COUNCIL; Agenda Alerts Subject: Surf City Pipeline: Comment on an Agenda Item (notification) Request# 19041 from the Government Outreach System has been assigned to Agenda Alerts. Request type: Comment Request area: City Council - Agenda& Public Hearing Comments Citizen name: Diane Atkins Description: RE: July 21, 2014 City Council Meeting - Please include all mobile/manufactured homeowners in your recommended action#7 to Item 19, Charter 803. The wording "senior citizens and veterans" excludes thousands of other homeowners in this city who are in grave danger of losing their homes. Of the 18 mobile home parks in HB, 8 of them are family parks including children, disabled citizens and those on fixed and/or low income(s). Thank you! Expected Close Date: July 19, 2014 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. SUPPLEMENTAL COMMUNICATION moons oate: 7 -o,/ -,),D/L,/ AW&IW No. Sam Nevarov 80 Huntington Street, Space 157 Huntington Beach, California 92648 June 5, 2014 Brianne Virden Rental Assistance Administrator Mobile Home AssistanceProgram 25241 Paseo de Alica, Ste 120 Laguna Hills, CA 92653 Dear Ms. Virden: This letter is written to express my appreciation to the MHET program for its assistance and caring concern with the subsidy of my monthly rent at Pacific Mobile Home Park. During my numerous conversations.with you and your office overthe past few years you have been extremely professional, courteous and always willing to help with whatever questions I have. The subsidy money which the program provides has helped to alleviate a Huge monetary burden during my ongoing disability. I sincerely hope that more people in similar situations will be able to take advantage of the benefits MHET has to offer.. Y©urs truly, Sam Neva 0 SUPPLEMENTAL COMMUNICATION Meeting Date: :2 -- A01 Agenda Item No. 19 JA ---- ------- Sf/PPLEMENTAL COMMUNICATION r f " 1 E I I E I , f 4 �� µ SUPPLEMENTAL rr Mobile" g le Home COMMUNICATION .- Assistance Program. Meeting Date:® - - May 22, 2014 Agenda Item No. John Cornick 80 Huntington St. Space 440 e' e Cr Huntington Beach, CA :92648 ( -c Dear Mr. Cornick, Thank you for participating in the MHET sponsored MO bile Home Re tal-Assi tance Pro,rarn. We hope that the program is working well for you. As you are aware; the Manufactured Housing Educational Trusts sponsors the rental assistance program along with its member park owners and that the subsidyyou receive is actually paid for by the owner of the park where you live. We are currently in the process of reviewing our program and. During this process we would. greatly appreciate your feedback in the following areas: 1. How can we improve the;program? v , C'ii e y �,t �j r ►c t. 2. How has the program helped.you' — `ie ur ke—t>) ids I What is your general feeling regarding the program and its administration4. y This program was designed to help you and we sincerely appreciate your feedback. Our intention is to use this feedback to improve our program and to educate the community,about the program.,,,, Your feedback may be published.as part of our promotional campaign to bring light to this program in the hopes that more residents can be assisted.. You may e-mail us at info@mhet.com,send us a note.in_the stamped,addressed envelope or simply give me a call at(949) 380-3311 We thank you for your time. Sincerely, r HET .F3rianne Virden Rental Assistance Administrator i c cc: Park Owner 25241 Paseo de.Alicia Suite 120 Laguna Hills;.CA 92653 Phone: 949-380-3311 Fax: 9497380-33`10 Sponsored by N4anufactured Housing Educational Trust } —_ s ,. z� fa S C x' t. !7• /? �4 t "c°r /Y '�- tJ � a! Vic' i' u j f ^✓r? T FC J5r omm Age July 2, 2014 To. The Huntington Beach City Council Matthew Harper, Mayor Joe Shave, Mayor Pro Teem Connie Boardman, Joe Carchio, Jill Hardy, Jim Katapo is, Dave Sullivan cc; Don Hansen, Mayor (rot), recently received a better from Mayor Don Hansen (ret) informing me that rent control is being considered for Huntington Beach I have been a resident HB homeowner since 1964 and a HB re.ntal property owner since 1977, and I certainly don't need any "'help"' from the city to tell`.me hove much l can charge for rent. The free market does a. pretty good job of that, already. You might also consider that rent control can result in lower property resale values, which can louver the tax base. The bottom line is SAY NO TO HB RENT CONTROL. Sincerely SUPPLEMENTAL Bob Raemer 1032 Kingston Lane Meeting Date: 01� Huntington Beach, CA 92647 Agenda Item No.,-4-..®-- Esparza, Patty From: Flynn, Joan Sent: Friday, July 18, 2014 8:44 PM To: Esparza, Patty; Estanislau, Robin Subject: Fwd: City Council Communication Item 19 Attachments: MHP RENT CONTROL WHO BENEFITS.pdf; ATT00001.htm; RENT CONTROL MHP BULLET POINTS FINAL.pdf; ATT00002.htm; Joy Madison, Modesto Chamber of Commerce.pdf; ATT00003.htm Joan Flynn, City Clerk Huntington Beach Begin forwarded message: From: Vickie Talley <vickientalleyassoc.com> Date: July 18, 2014 at 3:43:03 PM PDT To: "Flynn, Joan" <jflynn(ao,surfcity-hb.org> Cc: Ryan Franklin<Ivangrutherfordinvestments.com>, Don Urie <DonUriegrdmgrntllc.com> Subject: City Council Communication Item 19 Dear Joan, Thank you for distributing this communication and attachments to the members of the City Council and to submit the letter and attachments as part of the public record for the Council Meeting of Monday, July 21, 2014. Thank you, Vickie MHOT SUPPLEMENTAL ' i N -�;!€�!1t',�t-.tl._.l��I�t�;�.'t...-,�li�'�C3.j COMMUNICATION IO Mooting Data, Vickie Talley,Executive Director �,y MHET Agonds� Y) No.�Manufactured Housing Educational Trust /i �J 25241 Paseo de Alicia,Suite 120 Laguna Hills,California 92653 Phone:(949)380-3303 Facsimile:(949)380-3310 Email:vickie@mhet.com MHET has been working to protect mobile home park owners'property rights since 1982! If you are not a member,please ask me about joining today! This email is intended for the sole use of the intended recipient(s)and may contain confidential or privileged information.No one is authorized to copy, re-use,disclose,distribute,take action or rely on this email or any information contained in it.If you are not the intended recipient,we request that you please notify us by reply email and destroy all copies of the message and any attachments.Thank you for your prompt attention. 1 Begin forwarded message: From: "Ryan Franklin" <roan(aDrutherford investments.com> Subject: Re: Monday's City Council Date: July 18, 2014 at 1:31:31 PM PDT To: <connie.boa rdman(&-surfcity-hb.orq>, <jcarchio _surfcity-hb.orq>, <ihardy(d)-surfcity- hb.orq>, <iim.katapodis _surfcity-hb.orq>, <Dave.Sullivan(@-surfcity-hb.org> Cc: <matthew.harper(a-surfcity-hb.orq>, <ioe.shavvasurfcity-hb.org>, "'Vickie Talley"' <vickie _talleyassoc.com>, "'Greg O'Hagan"' <greq(c_rutherford investments.corn>, "'Don Urie"' <DonUriea_rdmgmtllc.com>, <CFikes isurfcity-hb.org> Dear Huntington Beach City Council Members, My name is Ryan Franklin and I work with the ownership group of the Villa Huntington Mobile Home Park. I'm reaching out to each of you in regards to the upcoming City Council Meeting and specifically City Charter Section 803, which was adopted by a two-thirds vote of the people in 2002. We consider the residents of Villa Huntington Mobile Home Park to be our customers. We know they have other housing choices and can sell their homes and relocate it should they wish. It is always our goal that our residents are happy with their choice to live in Villa Huntington Mobile Home Park. With that being said,we recognize there are residents who experience financial hardships from time to time and it is our policy to provide the opportunity for rental assistance to those residents. Since purchasing Villa Huntington in February 2005, park ownership has voluntarily, and at our expense, participated in a Mobile Home Rental Assistance Program administered by Manufactured Educational Trust(MHET). This program requires a demonstrated proof of need that is analyzed by MHET. Villa Huntington MHP has always adhered to MHET's recommendation and currently have 3 of our 126 homesites who are receiving a 10%monthly rent credit based upon MHET's independent analysis. Although we have always encouraged any resident that is experiencing a financial hardship to apply for this assistance,over the past nine and a half years we have had a total of nine residents apply for this rent subsidy. It's important to note that this Mobile Home Rental Assistance Program is only available in non-rent control areas. Please find attached three documents which discuss mobile home park rent control. We feel it would be beneficial for you to read the attached information prior to Monday's meeting. We would like the opportunity to discuss this matter further with you. We will follow up after Monday's meeting to schedule a time to meet. Thank you. Ryan Franklin Ryan J. Franklin Rutherford MHC Management LLC 241 W. Main Street Los Gatos, CA 95030 Phone: 408.399.2686 Fax: 408.399.2627 Email: ryan(5 rutherford investments.corn 2 MOBILE HOME PARK RENT CONTROL WHO REALLY BENEFITS? A SEDUCTIVE CONCEPT! At first blush rent control is a very seductive idea and concept. It seems like a painless way to address the perceived needs, wants or pleas of a selected group of individuals who are typically painted as being elderly and in dire financial straits. Who doesn't believe in providing help to the elderly in distress? If one delves further into the concept and researches the results of prior rent control experiences, many more questions are raised and the picture becomes much less appealing and filled with many"unintended consequences". WHAT IS THE BASIS FOR THIS PERCEIVED ASSISTANCE/BENEFIT? IS IT A FAIR BASIS? Does one fact alone,the fact that someone chose mobile home living, entitle them to this perceived assistancelbenefit?Why isn't someone who chose to rent an apartment, or someone who purchased land and a home entitled to this or a similar perceived benefit? They may need help as much, or more! The American dream is based upon people having equal opportunity to work hard and expand their choices; and,they must accept responsibility for their effort and for their choices. Some people choose, or their financial means only permits them to rent. The neighborhood they live in and the quality of the housing they rent is certainly limited by their financial ability. The property owner retains the property rights to the rented property. Some people can afford and choose to purchase land and a home. Again, the neighborhood and home value are limited by their financial means. However, since they purchased both the land and the housing, they have the property rights for both. The people who choose mobile home living choose to purchase a home and lease the land on which it rests.Again, their financial means limits the quality of the manufactured home community and the value of the home in which they live. Since they purchased the home, the property rights relating to the home are theirs. Since they did not purchase the land, they do not have the property rights relating to the land. Those property rights relating to the land are retained by the landowner. Of course, those rights are subject to any agreements the landowner may have made with the homeowner. Subject to any agreement they made with the owner of the land, mobile home owners may sell the home or relocate it. As with other forms of home ownership, selling the home usually involves paying a real estate commission. Mobile home owners also usually have the option of relocating their home. Typically the cost of relocating a mobile home is less than the real estate commission when selling a stick built house, but higher than the real estate commission for selling a mobile home. Does it seem fair that people that make one housing choice should receive a perceived benefit that those making another choice do not receive? Should people who choose mobile home living be immune from taking responsibility for their effort, financial ability and housing choices?When the residential housing market goes down, are those who 1 purchased land and a home protected from the consequences of their choice?Are renters protected from the consequences of their choice when the rental market heats up and rents go up? How have Karl Marx's economic theories faired in practice throughout the world? IS THE NEED REAL? Are all mobile home residents elderly and in dire financial straits?The reality of the demographics of mobile home residents really is far different from the picture that is frequently painted. Residents of manufactured home communities run the gamut in age and financial means. Do mobile home residents really need help?Some certainly do! So do some renters, and as evidenced by foreclosures, so do some people who chose to purchase land and a home. Do ALL mobile home owners have a real need?The vast majority do not! In parks where I voluntarily offer assistance to those who would qualify for Section 8 government housing assistance less than 1.5% (28 of 1956) of the residents qualifies and takes advantage of the program. In these parks, we hire an independent organization which reviews applications for assistance submitted by residents and makes rent credit recommendations to us for those residents who qualify based on their income and assets. We advertise the program to all residents and follow through on the recommendations we receive. Shouldn't any form of assistance require demonstrated proof of need? People make different choices in housing for a variety of reasons. Those who choose to purchase a home in a manufactured home community typically choose it predominantly for one of two reasons: they like the lifestyle that is afforded by this community living or it's all they can afford. Many people who choose mobile home living choose it because of the lifestyle and not any financial limitation as they could afford any housing choice. Many of those who choose mobile home living as a lifestyle have a full array of choices available to them. They are not in financial distress, nor do they require assistance. Based upon my fifteen years experience as a Park owner, these residents are by far in the majority. Those residents who have chosen mobile home living because it is all they can afford are certainly in the minority and perhaps a compassionate society should provide a safety net for those that qualify. Shouldn't any assistance that is provided be based on need rather than simply housing choice? IF ASSISTANCE SHOULD BE PROVIDED, WHO SHOULD PROVIDE IT? Some mobile home owners do experience real financial hardships! Are these financial hardships any different than those experienced by some who rent or purchased land with homes?Are the hardships any different regardless of the source of the tough times? Does the source really matter? Financial hardship is financial hardship!What is the role of government?What roles are filled by private charities? Does our society need a safety net? Probably so! That safety net, if it is to be provided, needs to come from a combination of government programs funded by taxes paid by all citizens and private charities funded by voluntary contributions. Clearly a small selected group of private individuals should not be called on to arbitrarily bear that responsibility simply because politics permits it! 2 IS RENT CONTROL LEGAL? Why should a park owner be singled out and required to provide assistance at his sole expense?Why should he forfeit a portion of his property rights?What are the legalities of government simply transferring valuable resources from one group of citizens to another? These questions are a constant source of property rights litigation. This litigation has been both expensive and surprisingly unpredictable for both park owners and the various government bodies forced to defend their ordinances and laws. It is certain however,that oppressive ordinances and laws singling out park owners alone to bear the costs of a safety net for a select group of people based only on their choice of housing and without requiring any"means testing" will continue to generate litigation. WHAT ARE THE"UNINTENDED CONSEQUENCES" OF RENT CONTROL? Reduced maintenance standards and an increase in deferred maintenance-Over time rent increases that do not keep pace with inflation and required capital reinvestment result in below market rents. This squeeze on the park owner's profit and cash flow ultimately forces them to reduce the maintenance standards and postpone or eliminate required maintenance and necessary capital reinvestments. This gradually, but inevitably results in the deterioration of the park. Elimination of capital improvements-The same ultimate squeeze on park owner's profits which reduced maintenance standards and postponed capital reinvestments totally eliminates any capital improvements! Property Values Decline-The value of the park declines immediately when it becomes subject to rent control. Any real estate investor will tell you that the value of investment property is directly related to its rental income. This is an unavoidable economic law! Reduce the rental income or future potential rental income and you reduce a property's value. In the short term the sale prices of mobile homes in the park will rise as a result of the controlled rents. In the long term, however, the value of these homes too will decline.As the park deteriorates even the low rents cannot maintain the home values as few people want to live in deteriorating neighborhoods. This park deterioration coupled with the decline in economic viability can result in park closures as an alternative to "running in the red". Simply put, you want your landlord to make the normal profit that results from market rents.You just don't want to be gouged. Obviously, reduced property values results in reduced property tax revenue. Increases in government costs and reduced services-Wherever rent control ordinances have been implemented,there have been significant costs to administer them. The more restrictive the ordinance, the higher the administrative costs are. In many cases, legal costs alone have been a crippling burden causing cuts in other services. Declinelloss of community harmony- Many mobile home residents moved into parks based on a life style choice. They liked the community spirit and environment. Once a park becomes involved in rent control battles, that harmony certainly declines and in most cases is lost entirely. It is replaced with resident factions fighting other resident factions and segments of the residents 3 fighting both park owners and park management. The quality of life sought by residents when they moved in is predominately lost forever. Reduced affordable housing- In many cases, the prime motivation for rent control, in addition to pacifying a small but vocal group of residents is to provide affordable housing. Once again, . economic law supersedes this intention as the more profits are regulated and controlled, the less investment you have. With less incentive to invest in mobile home communities, the long term result is less affordable housing from mobile home communities in the future. WHO REALLY BENEFITS FROM MOBILE HOME PARK RENT CONTROL? Does the park owner benefit?-The value of the park owner's property declines, which not only inhibits the ability to secure attractive financing, but reduces the potential sale price of the property. In the short-term, residents receive the benefit of the park owner's loss in higher home values. The park owner alone, rather than the government who created the mandate, or private volunteer charities is required to provide the full measure of assistance to ALL park residents whether they have a legitimate need or not! As a result of providing this assistance, his cash flow, profit and return on investment are reduced below that offered by an unregulated market. With fewer funds available the park owner is forced to reduce the standard of maintenance, postpone or eliminate any needed capital reinvestment and forget any possible capital improvements. While the property is continuing to decline in both appeal and value, the park owner experiences both increased administrative requirements and resident headaches and disharmony. Does this sound like a good and fair deal to you? Do the park residents benefit?-Initially most residents see rent control as a free lunch! They are getting all the benefits from their housing choice with no potential negative consequences. Their home values are artificially inflated in the short-term and their rents are gradually creeping further and further below market. All this through no effort or contribution from them! Overtime this view consistently changes and the disharmony of rent control environments once again becomes magnified! As the park owner is forced to reduce the standard of maintenance, postpone or eliminate any needed capital reinvestment and forget any possible capital improvement; the appeal of the resident's park deteriorates at the same time the value of the resident's home declines. Typically the disharmony of the park escalates with lots of finger pointing between resident groups, park ownership and park management. Both anger and fear take over. Anger is expressed regarding the deterioration of the park. Fear becomes prevalent regarding both the possibility of large mandated rent increases, and the possibility of park closure. Regrettably, by this time the consequences of rent control are readily apparent to the residents; but it is too late! Early education is the only prevention. We all would like to believe there is a free lunch,wouldn't we? Does government or the taxpayer benefit?-By responding to the pressure and pleas of a small, but vocal group of self interested residents, government'really does a disservice to the majority of taxpayers it serves. The end result is very different from that which is intended. Property values ultimately decline, and therefore property taxes go down. Administrative costs increase and exposure to potentially disastrous lawsuits are added into the mix. The necessity of dealing with any number of resident headaches, both real and imagined becomes reality. Any affordable housing objective suffers. It suffers in the short-term, as home prices artificially escalate making homes more difficult to buy. It suffers in the long term when home and neighborhood values 4 deteriorate, and ultimately the supply of desirable affordable housing is reduced. Increased costs with reduced services for the majority of tax payers in order to benefit a minority are not a good recipe for either government or taxpayers. Once rent control is established, like most entitlements, it is extremely difficult to rescind. IF RENT CONTROL DOESN'T BENEFIT PARK OWNERS, IF IT DOESN'T BENEFIT PARK RESIDENTS IN THE LONG TERM, IF RENT CONTROL DOESN'T BENEFIT GOVERNMENT AND TAXPAYERS COULD IT BE THAT IN THE LONG-TERM,THERE REALLY IS NO BENEFIT FROM RENT CONTROL FOR ANYONE? 5 MHP RENT CONTROL BULLET POINTS • A seductive concept with unintended consequences IS THE BASIS FAIR? • Is the basis for MHP rent control simply the fact that someone chose MHP living? • Why should MH owners in parks be entitled to assistance vs. apartment dwellers or homeowners who may just as needy, or needier?Why? • MH owners in parks chose to purchase a MH but lease the land. How can they have property rights for land they didn't purchase?Aren't they responsible for their choices? • MH owners are free to sell their home, like any other homeowner.They also have the option of relocating it.Are they any more captive in their home than any other homeowner? IS THERE A NEED? • Is there a real need?Are all MH residents elderly and in dire straits? Or, do MH residents come in all ages, and in all financial conditions? • What%of the population are MH residents and what% really need assistance? • Based on my experience, less than 1.5%of the MH residents in parks where the equivalent of Section 8 government housing assistance is available applies and receives financial assistance. • Shouldn't any form of assistance be based on proof of need rather than be universal without any proof? WHO SHOULD PROVIDE THE ASSISTANCE? • Should a small selected group of private individuals be arbitrarily required to bear the burden of providing assistance mandated by a government entity? • If any government entity believes assistance should be provided, don't they have a responsibility to fund that assistance and fund it from taxes paid by all citizens? IS RENT CONTROL LEGAL? • Should a park owner be singled out and be required to provide assistance at his sole expense? • Why should he forfeit a portion of his property rights? • What are the legalities of a government entity simply transferring valuable resources from one group of citizens to another? • Without doubt,these issues are certain to continue to generate litigation. WHAT ARE THE UNINTENDED CONSEQUENCES? • Reduced maintenance standards and an increase in deferred maintenance&the ultimate deterioration of the park. • Elimination of any capital improvements • Property values decline. The park value goes down immediately and the value of homes declines as the park deteriorates. • Increases in government costs. In addition to the cost of administering a rent control ordinance, many jurisdictions have spent crippling amounts of money on legally defending their ordinance and sometimes losing. • A decline and ultimate loss of community harmony as resident factions form fighting other residents, as well as park owners and park management. • A reduction in affordable housing as MHPS become less viable investments. No new parks are built and owners of existing parks look for other uses of the land or subdivide and sell. WHO BENEFITS FROM RENT CONTROL? • Does the park owner? NO! • Do the park residents? NOT IN THE LONG TERM! • Does government or the taxpayer? INCREASED COSTS AND REDUCED SERVICES IN ORDER TO BENEFIT A SMALL VOCAL MINORITY IS NOT A GOOD RECIPE FOR EITHER GOVERNMENT OR TAXPAYERS. From Aristotle to today, the rights of property ownership play a major role in the economic viability and vitality of communities worldwide. Our founding fathers believed so strongly in it that it is a part of the 5`h Amendment of the U.S. Constitution. Property ownership and the right to transfer, sell, gift, dower and bequeath are part of the daily course of commerce. We lease, mortgage, and encumber our property willingly and with the knowledge of self-assumed risk. We forgo portions of our property knowingly for easements and zoning requirements because we know it will increase it in value. We separate mineral from surface and we are tenants in common or hold in joint tenancy. We sell in fee simple absolute or by quitclaim deed. We are subject to property taxation on the value of our ownership. In California, we hold property so dear that we set groundbreaking history with Proposition 13. And if the government takes our property by eminent domain, the 5`h Amendment of the U.S. Constitution states we have the right to be compensated fairly for that taking. The law allows us to use our property as we see fit. Commerce is an integral part of property. We farm it. We mine it. We set up shop on it. We even live on it. We are expected to keep it neat and in a safe condition. We fence and keep it free from trespassers. We have the right to reasonably defend it from strangers. And we have the right to profit from it. We know all of this up front. It's not a surprise. We know our limits, our boundaries, not only acre and foot, but by law. Today in Stanislaus County, property rights discussions are taking place to erode some of the fundamental rights we take for granted. A thorough and vigorous debate should be happening. Yet only one side is controlling the discussion. The county has been approached by unhappy land lessees or tenants in mobile home parks. The circumstances, we agree, are heart wrenching. Escalating land use costs are quickly outstripping social security checks. Those affected are articulate, smart and obviously feeling the strain. But the proposal of rent control is devastating to the free market system. By force, the proposal would usurp the rights and diminish the value of property without regard to compensation to the owners who have invested in the property. It is not up to government to assign value. It is up to the marketplace. Commerce is the lifeblood of our economy. Rent control is the antithesis of a strong and vital economy. Our concern is that an important piece of the commerce equation is being forgotten- competition. Competition not government controls the free market system. As elected officials, you stand on the precipice of a slippery slope. Once government steps in, where does it stop? Will government regulate condominium and gated community association fees? Will it progress to multi family rental, individual home rental, and commercial rental caps? What about residential, farm and commercial property sales? Will the county step in and set price caps on goods and services? Unfortunately, our position, though sound, will be construed as unsympathetic. Nothing could be further from the truth. The high costs of property purchase and maintenance are ugly but real. No one is immune. But a government stranglehold on the free market system is worse. The above astute and profoundly inspirational words above were written by Joy P. Madison, president and CEO of the Modesto Chamber of Commerce. Esparza, Patty From: Flynn, Joan Sent: Monday, July 21, 2014 6:08 AM To: Esparza, Patty Subject: Fwd: July 21, 2014, Huntington Beach City Council meeting -Councilmember Item#19 related to mobile/manufactured homes SUPPLEMENTAL COMMUNICATION Joan Flynn, City Clerk Huntington Beach MW DAts`Y Begin forwarded message: 1W Nbw / From:Jodie Wollman<jodiewollman@�mail.com> Date:July 20, 2014 at 10:38:27 PM PDT To:<city.council@surfcity-hb.org>, <Johanna.Dombo@surfcity-hb.org>, <CFikes@surfcity-hb.org>, <ifNnn@surfcity-hb.org>,<imcgrath@surfcity-hb.org> Subject:July 21, 2014, Huntington Beach City Council meeting-Councilmember Item#19 related to mobile/manufactured homes Dear Huntington Beach City Council, You may have received or seen the "Open Letter to our City Council Members* from Huntington Beach Voters" in the Orange County Register on Saturday, July 19, 2014, from MHET's Vickie Talley, Huntington Beach Mayor, Matthew Harper, Former Huntington Beach Mayor Don Hansen, Former Huntington Beach Council Member Devin Dwyer, and Former Huntington Beach City Attorney Gail Hutton. This full-page ad was paid for by the Huntington Beach Property Owners for Property Rights, aka Manufactured Housing Educational Trust ("MHET"), and contains many misrepresentations, if not outright lies. The initiator of this ad would like for you to think that they represent the overall "Huntington Beach Voter" and residential homeowner. They do not. MHET represents MOBILEHOME PARK OWNERS. MHET has absolutely nothing to do with residential homes, condos, townhomes, or apartments. We who reside and own our mobilehomes in mobilehome parks are the recipient of MHET/Park Owner unscrupulous tactics on a daily basis. We need the City Council's assistance in calling them out on their deceitful tactics in this ad and for their previous letter signed by Former Huntington Beach Mayor Don Hansen that was sent to targeted homeowners during the past few weeks. How many of the names listed in their full-page ad are mobilehome homeowners? How many of the people whose names MHET collected understand the very real injustice that is occurring to all mobilehome homeowners? I would suggest there are few, if any. MHET knows very well that comparing mobilehomes to apartments, condos, and residential homes is like comparing "apples to oranges." Mobilehomes are not like condos, apartments, townhomes, or residential homes. Mobilehome homeowners own their homes and someone else owns the land under the homes. This is an issue of an ABUSE OF PROPERTY RIGHTS by the MOBILEHOME PARK OWNERS in conjunction with their lobbying groups, MHET, WMA, and CAR. i The Councilmember Item #19 for rent stabilization is on the City Council Agenda for Monday, July 21, 2014. This item APPLIES ONLY TO MOBILEHOME HOMEOWNERS. While we who reside in senior parks are thankful for the measure being initiated by Dave Sullivan and Jim Katapodis, the "H" Item, #19, is not complete and inclusive in its current form. Currently, the "H" Item #19 is only in the form of a rent stabilization for senior citizens and veterans. The measure needs to be amended to change the H item to include ALL homeowners in ALL mobilehome parks. This is not just a senior or veteran issue. It is a MOBILEHOME HOMEOWNER issue. If H Item #19 fails to include all mobilehome parks, the owners of senior parks will again be allowed to disrespect the City Council and homeowners. You will recall how the Rancho Huntington owners snubbed their noses at the City Council on July 16, 2013, in blatant disregard for the Senior Overlay that was initiated by City Council the day before. This is a MOBILEHOME HOMEOWNER issue and MUST include all of us. If brought to the ballot in its current form, it will not correct the current injustice and abuse. Please amend this measure before voting on it. Thank you. Additionally, after you pass Item #19 with all parks included, please vote to instruct the Mobile Home Advisory Board (MHAB) to meet every month, rather than every quarter. Their leaders and staff members must be required to give the City Council a complete report immediately after every meeting. If their meeting schedule is left as it currently is, they would only have one meeting before the November 4 election, approximately one week before the election. Thank you for your consideration. Respectfully, Pete and Jodie Pete and Jodie Wollman 19361 Brookhurst Street, Space 84 Huntington Beach, CA 92646-2953 2 Esparza, Patty From: Dombo, Johanna Sent: Monday, July 21, 2014 7:49 AM To: Esparza, Patty; Flynn, Joan; Estanislau, Robin Subject: FW: Role of Mobile Home Advisory Board SUPPLEMENTAL From Tim Geddes [mailto:timgeddes3Ccbgmail.com] Sent: Friday, July 18, 2014 10:14 AM To: CITY COUNCIL Meeting Date- Subject: Role of Mobile Home Advisory Board Agenda Item No. / Dear Mayor and Council Members, " Due to the City Council Member Item (419) placed on the Agenda for the July 21 meeting by MHAB Council Liaisons Sullivan and Katapodis, and its likely passage in some form, it is imperative that the Council direct staff to place the Recommended Action approved on the Agenda for the Mobile Home Advisory Board for its July 28 Quarterly Meeting. Only the Council can make this request (i.e. demand). If the Council decides to schedule a special meeting on July 28 that "bumps" the MHAB meeting, it is also imperative to direct staff to reschedule the MHAB meeting to the following fourth Monday of next month (August 25). Again, only the Council can request this of staff. Also, because any ballot initiative affecting the mobile home community is of obvious concern to the Mobile Home Advisory Board, it is imperative that the Council direct staff to schedule monthly meetings of the MHAB (much as was done with the Senior Resident Park overlay and ordinance) until this issue is resolved. This would then include a meeting of the MHAB on the fourth Monday of September (the 22nd) in front of the next regularly scheduled quarterly meeting of the MHAB on October 27. If the initiative is successful in the November 4 election, then additional meetings in November and December may need to be scheduled to deal with the aftermath. The MHAB is the only forum for manufactured housing homeowners and mobile home park owners (and their representatives) to discuss issues and actions pertaining to this matter. Failure to authorize special meetings in August and September would mean the MHAB has only one quarterly meeting in October (one week before the election) to address issues and concerns. That is clearly not enough for perhaps the biggest issue in a decade for the mobile home community. I am making this request as an At-Large member of the MHAB and not as a representative of the board. I am acting as an individual concerned citizen. Please make sure that the Mobile Home Advisory Board is fully engaged in any civic process affecting the stability of the mobile home community. If the Council would also request a report or recommendations from the MHAB, either individually or collectively, in order to fulfill its "advisory" role, then that should be communicated to all parties as well. Thank you for attention to this matter. i Sincerely, Tim Geddes, Chair Elect Huntington Beach Mobile Home Advisory Board. z Esparza, Patty From: Dombo, Johanna Sent: Monday, July 21, 2014 12:27 PM To: Esparza, Patty Subject: FW: Surf City Pipeline: You have been assigned a new Request#: 19079 From: Surf City Pipeline [mailto:noreply@user.govoutreach.com] Sent: Monday, July 21, 2014 12:06 PM To: Dombo, Johanna Subject: Surf City Pipeline: You have been assigned a new Request #: 19079 Request# 19079 from the Government Outreach System has been assigned to you. Request type: Comment Request area: Inquiry to a City Council Member Citizen name: Mary Landin Description: I am sending this e-mail about the lack of rent control in Huntington Beach. I lived in Huntington Shorecliff mobile home park from 2008 -r 20101 was forced to move because of the hight rent increases. The park was a 55+which means that as seniors we lived on a fix income and could not continue to pay the higher rent. We were not able to sale our mobile home and the park offered like or nothing for the mobile home. I watched my neighbors move out after there 5 year lease was up and rents went up. My mobile home was SPC # 157 I'm asking for those who are facing losing their mobile homes due to hight rent increases. Pass rent control Sincerely, Mary Landin Expected Close Date: July 31, 2014 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. SUPPLEMENTAL COMMUNICATION Meebng Date: Agenda Item No. - i Esparza, Patty From: Surf City Pipeline [noreply@user.govoutreach.com] Sent: Monday, July 21, 2014 12:59 PM To: CITY COUNCIL; Agenda Alerts Subject: Surf City Pipeline: Comment on an Agenda Item (notification) Request# 19083 from the Government Outreach System has been assigned to Agenda Alerts. Request type: Comment Request area: City Council - Agenda& Public Hearing Comments Citizen name: Joan Walker Description: I am a resident in Huntington Shorecliffs Mobile Home Park. I moved here to be close to my family when I retired as a professor from Cerritos College in Norwalk CA. In 2000 when Lpurchased my mobile home in the park my space rent was $432.00 per month. It is currently $1765.00 per month. With no control in sight I do not know how long I can remain in my home on my retirement income. Several residents have already lost their homes or have sold for as little as $3000.00 because they could not afford the rent increases. I strongly urge you to vote for the Measure to add RentStabilization for ALL mobile home park homeowners in our city. I truly feel the lack of rent stabilization in our city is an abuse not only to senior citizens and veterans but on anyone who rents space in a mobile home park. Sincerely, Joan Walker Expected Close Date: July 22, 2014 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. SUPPLEMENTAL coMMUNICATION Meeting Date: —2/ —"/ '� Agenda Item No. i Esparza, Patty From: Surf City Pipeline[noreply@user.govoutreach.com] Sent: Monday, July 21, 2014 5:57 PM To: CITY COUNCIL; Agenda Alerts Subject: Surf City Pipeline: Comment on an Agenda Item (notification) Request# 19088 from the Government Outreach System has been assigned to Agenda Alerts. Request type: Comment Request area: City Council - Agenda& Public Hearing Comments Citizen name: S Green Description:Hello got out of work too late &won't be able to attend tonight's meeting. I purchased my mobile a couple of years ago as a vacation home (pacific mobile home park). Things have changed &now it is my permanent home. Where else can one live by the sand at such a low payment. Over time space rent has increased which has been reasonable for some &not for others. Unfortunately some residents have had to move. The park is benefitting by taking over the empty trailers &renting them out. Very very slowing the new owners are making improvements & excuse the slang the trailer trash are leaving. Trailer trash leaving is fine but it is sad to see the elderly that have been there many many years. Each year a slight increase is expected but they are increasing the monthly rent a few hundred dollars per household. There has got to be some sort of rule not to allow them to do what ever they want. I am sure the park was purchased for a lot of money & it is a business but something needs to be done to stop these unreasonable amounts. Expected Close Date: July 22, 2014 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. i RECOVED FRS -Afif'o:� AS PUBLIC REC Rp R 5,,U�V MEETMI CO at/Wt Fl(,E JOAN L.FLYNN,CrTY CLERK .S� ee / 7S r i t 4 - - eA r -__ - P 4 ::s n - �\�-' TALI:It,,. , j. =ASSOCIATES, v INC. ps r�menrai i2e funk� dL-meac ,ec - . Aars.` At _ tT - _ _ ` -� --3 -.: t - _ - - - - ,`� - - � '.� -S1. - J} IVtt.1l3 -� _ - _ - £ongra [ on Mott mere-�,.)et ire a S Subs faro t ie o_n _f �€�ils . ��statement sl o�tld # a-ice--qua-too S liemg de ct d +our._ , PARTY rno dtffe gragras 15.20 from then subsidy: Rentai ice ft I by th010 owner and dot "!r any payT.ment,$DINT 6 comes fro tPAY.he tmt-ANng Shored Speeta S idy i p'I- -,,Leh subsidizes a a—.� auo t of t ant ea et tonic of e .ati ebR. -1 Z $mo d e l �ac�C#�o the park0': ih��uea�tthat o i ar mate home�You�e�. 'W Widen-ac he preyfhe.-af her agrecm y _ ..wed.�'hese s--;__ es P .I..X be effete for delve months;unto__ � 3t� � Bch time you any i ifyaa i ontia I�fo:ba Iles for___ -, a-11 i aid giact Ict we r "abir ao .i'i c rfyQu hake any quctans �mciy, -- ;; py� -: - t- V1C' -. --T - - _ T - _ _ _ - - _ - - - _ - - _ 33}Q a de'_hhcia Saste F" Z"l 1 9 38U `- _ . �'I u"j! x cater ss -A& 0 ORANGE COUNTY BUSINESS COUNCIL 2 Park Plaza,Suite 100 1 Irvine,Ui 926141 P 949.476.2242 1 F 949.476.0043 1 w\Aw.ocbc.org July 21, 2014 The Honorable Mayor and City Council City of Huntington Beach JUL 2 12014 2000 Main Street Huntington Beach,CA 92649 Huntington Beach CITY COUNCIL OFFICE Re: OPPOSE Item 19—Rent Control Dear Mayor Harper, On behalf of Orange County Business Council (OCBC), I respectfully request that you OPPOSE Item 19 on this evening's City Council Agenda, Item 19 is an attempt erode the private property protections that were overwhelmingly approved by the voters of Huntington Beach.OCBC is strongly opposed to public policy that threatens the private property rights of citizens or private entities. As Orange County's housing stock continues to age, it is critical that property owners not be discouraged from investing in the protection of such an important component of our community. OCBC opposes any attempt to arbitrarily control the marketplace for housing in the City of Huntington Beach, and throughout Orange County. We join the Huntington Beach Chamber of Commerce, the California Apartment Association —South Coast Division and many other community groups in urging you to oppose any effort that would lead to a weakening of property rights in your city. Thank you for your thoughtful consideration. Sincer y, Bryan arr Senior Vice President, Government Affairs Cc: City Council Members THE LEADLNG VOICE OF BUSINESS RV ORANGE COUNTY abed 91:91 t lOZ lZ lnr RECEIVED FROM AS PUBLIC RECORD,FOR C UNCIL M ET _. OF— ' CITY CLERK O ICE N ?"HB RIGHTS OP MoauSmw ®>71 �A L LYN =CITY LERK . . �:.. �y a "All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens rl•< of the United States and the State wherein they reside. No state shall make or enforce ANY law which shall i . .� abridge the privileges or immunities of citizens of the United States;norAall any State deprive any person of life, liberty, or property without due process of law; nor deny to any person within itsJurisdiction the equal protection of the laws." I So; it is my opinion, based on the 14th Amendment to the United States Constitution .that any Mobile f , `.Home Landlord Tenant Law,and other laws that regulate the owners of manufactured housing are"illegal and unconstitutional. These laws that classify the owners of manufactured housing as a distinct, separate } class of citizens based on them owning and living in manufactured homes is illegal and unconstitutional 1 r :These laws do not offer.egual rights and protection under the_laws that ALL other.property owners have. i l For 30 years the landlords thorough their own organizations have fought to protect their property rights; and the privilege of.controlling the property rights of the home owners and property they do not own. This is made possible:by all parties concerned using the wrong premise of law concerning manufactured housing on leased land. `Under state Real Estate Land-Lease Laws, all property on leased land-are regulated x by this law except for manufactured Housing. You have mountain cabins, all types of buildings, and even } conventional'housirig developments sitting on leased or rented land that are regulated by Real Estate Land { lease Laws. I will say this once again. Until manufactured housing on leased or rented land is regulated by Real Estate Land-lease Laws, the owners of manufactured housing will NEVER achieve full property rights and a ual protection under state laws. That is how simple it is to solve the problems you have faced for more i than ;-ears notiv..Placing in housing on leased or rented land under Real Estate Land-lease ;' { a Latins will fix the problem permanently. The owners of manufactured housing should be treated the same �. ' as all other property owners. Any other actions are A:waste of time and money. " My book is called "Mobile Home Wars" and covers 28 years of history and legislative activity concerning , {r manufactured housing This book is for homeowners so they can get the information they need about the ' .laws and issues:that regulate them nationwide. I am happy that Mobilehome Magazine is giving you an .., opportunity to read my book. I would hope that Californians would support this organization and join _ their effort to obtain the same rights and protection under the laws for all Californians who own and live in manufactured housing. God Bless, Donald R. DeVore - { se Y Introduction Ch-9:Home Owner Associations M - Ch-1:The History Of Mobile/Manufacturcd Housing Ch-10:Legal Battles Q�l } b Ch-2:Transformation Of Mobile/Manufactured Housing Ch-I I:Financing And Insurance For Manufactured Housing Ch 3 Manufactured Housing Institute Y� s i Ch-12:Tax Supported Agencies is Ch=4:Mobile Home Landlord/Tenant Laws . Ch-13:Management i Ch-5:Assessment And Taxation Of Manufactured Housing `= Ch44:Rental And Lease Agreements E + Ch-6:Classifying And Regulating Manufactured Housing x Ch-15:Governmental Agencies Ch-7:Manufactured Housing Issues i Ch-16:Legislation For The Future Model Manufactured t Ch-8:the Image Of Manufactured Housing Housing Act Declaration&Legislative Intent 1 kA x _ sn fir. s� 'Lr. .:% -., ..Y"""-..w-•itk'""'s3, ,k2,"" assi�w a3'ar{--es,,.'S'Z:. -..> .,�--.' xs 3.r , 3.•-.-t.' M� fix T4 -7 P Ofy r "PUSH RE NTS RELENTLESSLYrr "...TENANTS WILL ACCEPT PRETTY MUCH WHATEVER YOU RAISE THE RENTS TO." "YOU SHOULD ONLY CET INTO THE MOBILE HOME PARK BUSINESS TO MAKE MONEY http://www.nuwireinvestor.com/howtos/how-to-make-money-in-the-mobile-home-dark-business-51898 ast)x How To Make Money In The Mobile Home Parr Business 5imp'de and proven strategies i pub ished on: Tuesday,August 12,2008 j +Y"ftten ty°: Nyld H=C10% i 1Lie t _ i;litlt a star CO ra4a. i Advice can due diligence and buying and operating mobile home parks effectively has filled dozens and dozens of books, but the general theory of hose to make money with mobile home 3 park. investments could fit on the back of an envelope.This article will explain in a few, simple Ru steps how to make money in mobile home parks. 61W a park in a► lig mwket it doesn't have to be New York City, but you need a market large enough size to fill vacant lots Q 4�1MAAtr,�. and push rents. A mobile home park in a tiny town suffers from little population growth and high dependency on the employment trends of a few large, local employers. Also, you need prevailing two- bedroom apartment runts in the S700 or so range. in housing markets where the rent for a two-bedroom apartment is $295 per month, tenants do not need mobile homes for affordable housing and owners cannot push rents. i Mick to city water md city steer, if Vou can if you can avoid private utilities,.you can avoid huge potential capital expenditures. Using public utilities, the worst capital expenditure you may face is a few thousand dollars on pothole repair. But if you have a water well or packaging plant or lagoon, the overnight cash you might have to cough up could be 550,000 to $250,000. 4 I Never count any la-eeae but lot resat You can't use any mobile horse rentals, note income or laundry income in your calculations. You can only rely on lot rent. Period. Even if you insist on including other income in your application, your bank will stop you by r refusing your loan. PAGE 1 OF 2 -OVER- Buhr at a 1096 cap rate or better You should only get in the mobile home park business to make money, and positioning yourself to do that is crucial. Buying parks at a 6%or 89%return is starting off behind the 8-ball. You may only cover your mortgage with no cash flow as reward for all your time, effort and risk. Push rents relentlessly = ��, -�4 � �t k � � x F a�'�g fir' shx���� Fd' There i5 no Better way to nlalte money in the mobile r, -c home park business than to increase rents. Every " F TM fi x dollar that increase goes directly to the bottom line { 4 yfi s ' and is worth 10 times more in determining the value of the park. increasing rents by S 1,000 per month }: A yields S120,000 in sales value enhancements. at a s . 1096 cap rate. Groom the into a 2096 cap rate park p if you push the rents by about 1096 each year, it will take you only about seven years to double the rent. Can you push rents this aggressively?You bet. At $3,000 or so to move a mobile home, there is a huge barrier to moving out, so tenants will accept pretty much whatever you raise the rents to. That's the entire roadmap to success. ifs not complicated, but people make errors every day. in an effort to buy something quickly, many people will sacrifice their lives and buy a mobile home park on which they can't possibly profit. if you respect yourself,you have to hold your ground with our strategic deal points. if the seller won't sell at a 1096 cap rate, then walk away from the deal. The same is true with all the other subpoints. Without the correct alignment,the park will be an inescapable and profitless burden. Don't try to get fancy if you want to make a million dollars in the mobile home park business. Follow proven formulas such as ours and you will have the best chance at success. Dave Reynolds fs an acrAe ccmmuniry invesrcr aad afsc,rJe;;'--under and'.truer cf MHR5.corn and AfH3-avccm_Lave recently Ieame+d up tstirh anorherindustry r>;•cr"essior�ofand inr�esror, Frank.rZclFe and.agerner,te r lave created an entre serEes an H©wi-0 Bvy,5641 Operate and Tur narcUrrr#.MH Ccmrnunwe_r. Aar mo.e mfcr rnaricn ccrracr us ai the webs.iies or ar 1-800-950-7.364. PAGE 2OF2 RECEIVED FROV MHeT AS PU13Ir,iC RECORD, FOPOU CIL'MEETM oF—_.T. Manufactured Housing Educational CITY CLERK OFFIC ! ��!�FLYNN,CITY CLERK Mobile 1'�ome ssistance Program 25241 Paseo de Alicia•Suite 120• Laguna Hills, CA 92653• (949)380-3311 ®range County Eligibility Guidelines To qualify for temporary rental assistance sponsored by MHET, all of the following guidelines need to be met. If you meet these criteria, you may be eligible to receive a subsidy equal to 10% of your monthly space rent. To request an application to apply for rental assistance call (949) 380-3311 or write to the address above. 1. The applicant needs to be a homeowner who has owned and lived in the mobile home and community they are currently residing in for at least the past three consecutive years. 2. Applicants need to meet the very low-income guidelines* used by the local Housing Authority for the Section 8 rental assistance program (Gross annual income from all sources is 50% of the median income or less). 3. Applicants must meet one or more of the following criteria: (1) be at least 62 years of age or older; (2) be a family of two or more; (3) or be disabled. 4. Monthly housing costs (rent, mortgage and utilities: gas, water, electric, trash, sewer) need to exceed 40% of the total monthly income of all residents in the home. 5. Real property (land, rental property, second home, etc.) may not exceed $10,000. 6. Personal property (bank accounts, automobiles, stocks and bonds,jewelry, etc.), except for the mobile home in which the applicant lives, may not exceed $20,000. 7. The applicant does not receive assistance from any other rental assistance program. 8 The space on which the applicant resides is not regulated by rent control and not more than 10% of the residents in the Park are already receiving assistance r 9. All of the forms provided in the Rental Assistance Application packet must be completed with every question answered. 10. The applicant must be in compliance with the park rules and regulations and the mobile home or manufactured home may not be in foreclosure by any financial institution or in bankruptcy proceedings. * Qualification guidelines for Section 8 (for more information call Orange County Housing Authority at (714)480- 2700). Current gross annual income from all sources within the following limits for family size: 1 person $33,750 5 people $52,050 2 people $38,550 6 people $55,900 3 people $43,350 7 people $59,750 4 people $48,150 8+people $63,600 This assistance program is strictly voluntary on the part of the park owners and may be changed,revised, or discontinued at any time with or without notice. -.0® unauthorized reproduction prohibited. Contact MHET Mobile Home Rental Assistance Program at(949)380-3311. MHeT l Rev. 12/13 4 MHeT Manufactured Housing Educational Progra►na de tencia Para la yenta 25241 Paseo de la Alicia •Suite 120• Laguna Hills, CA 92653• (949)380-3311 ®range County Requisitos de Elegibilidad Para calificar a la asistencia temporal para la renta patrocinados por el MHET, todas las siguientes pautas deben ser cumplidas. Si usted reOne estos requisitos puede ser elegible para recibir un subsidio equivalente al 10% de su renta mensual del espacio. Para solicitar una aplicaci6n para asistencia para la renta Ilame al (949) 380-3311 o escriba a la direcci6n que esta arriba. 1. El solicitante necesita ser un dueno de casa, haber poseldo y vivido en la casa m6vil que estan residiendo actualmente por to menos durante el transcurso de tres anos consecutivos. 2. Los solicitantes necesitan encontrarse dentro de las pautas de ba'os ingresos* utilizadas por la Autoridad de Vivienda (HUD) local para la Secci6n 8 del programs de asistencia para la renta. (El ingreso bruto anual de todas las fuentes es el 50% o menor del ingreso medio). 3. Los solicitantes deben cumplir uno o mas de los siguiente requisitos: (1)tener al menos 62 anos de edad o mas; (2) ser una famila de dos o mas personas; (3) o estar discapacitado. 4. Los costos de vivienda mensual (renta, hipoteca y servicios publicos: gas, agua, electricidad, basura, drenaje) necesitan exceder el 40% del ingreso total mensual de todos los residentes de la vivienda. 5. Propiedades Inmuebles (terreno, propiedad en renta, segunda Casa, etc.) no pueden exceder de $10,000. 6. Propiedades Personales (cuentas bancarias, automobiles, acciones y bonos, joyas, etc.) excepto la casa movible en la cual el aplicante vive, no puede exceder de $20,000. 7. El aplicante no puede recibir ayuda de cualquier otro programa de asistencia para la renta. 8---- - -El-espacio en el cual el solicitante reside no esta regulado por control de la yenta y no mas del 10% de los residentes del parque estan ya resibiendo asistencia! 9. Todas las formas proporcionadas en el paquete de Aplicaci6n de Asistencia para la Renta debe completarse con todas sus preguntas contestadas. 10. El aplicante debe estar en cumplimiento con las reglas y regulaciones del parque, y la casa movible o manufacturada no puede estar en venta forzosa por ninguna institucion financiera o en proceso de bancarrota. *Pautas de la calificaci6n para Secci6n 8 (para mas informaci6n Ilame a I HUD del Condado de Orange al (7'14) 480-2700). Ingreso anual bruto de todas las fuentes dentro de los siguientes rangos para el tamano de la unidad familiar: 1 person $33,750 5 people $52,050 2 people $38,550 6 people $55,900 3 people $43,350 7 people $59,750 4 people $48,150 8+people $63,600 Este programa de asistencia es estrictamente voluntario por parte de los propietarios del parque y puede cambiarse,revisarse, o discontinuarse en cualquier momento sin previo aviso. ��AA Unauthorized reproduction prohibited. Contact MHET Mobile Home Rental Assistance Program at(949)380-3311. MH Rev.03/13 "�. "' RECEIVED FROM I�ED2/ N LMEETINGMobile Home Park Resident a UBCR // / Prospective Resident Income JO N� °.CITY CLERK?—/ New Resident Moving Into Mobile Home Parks are not low income. In order to move into a mobile home park, a prospective resident needs to qualify to be able to afford to pay the rent and mortgage, if there is a mortgage. The typical rule of thumb is that the: Household Income Must = 3 X the total housing costs (rent, mortgage, utilities) Rent + Mortgage Example Monthly rent in our park of$1,150 + $150 utilities + $1,000 mortgage = $2,300 X 12 = $27,600 in annual housing costs $27,000 annual housing cost X 3 = $82,800 annual income required Rent Only Example Purchaser pays cash for mobile home, which is very common in Huntington Beach; the annual income requirement is much lower. Monthly rent of$1,150 + 150 utilities = $1,300 X 12 = $15,600 $15,600 annual housing cost X 3 = $46,800 annual income. According to the City's website: - The Median Household Income in HB is $77,642 - The Average Household Income in HB is $99,098 Presented by Craig Houser, Rancho del Rey Mobile Home Park July 21, 2014 FIR — A'S N-191-1901 RE001 11 C2NCIL MEET;NG aV GLE. OFFICCE V .0 L,H�'yNK 01;Y CLERK Mobile/Manufactured Home Rent Stabilization I am Jack Siart, resident of Huntington Shorecliffs, a former landlord here in Huntington Beach and currently licensed for both Real Estate and Manufactured Home Sales. Owners of Mobile and Manufactured Homes on leased land in Huntington Beach need the cities protection from predatory space rent increases. In the last several years rents have increased from an average of$600 per month to$1,700 or more in some parks. This has resulted in over 100 homeowner Families(mostly Seniors) being forced out on the street in Huntington Shorecliffs alone. The park owner seized their homes with no compensation when the MH owners couldn't afford the increased rent. The park owner then spent a nominal sum to rehab the homes and rent them out at rates just below area apartments. In typical rental situations the renter can move if they have the first month's rent and a security deposit. Moving a Mobile or Manufactured home can cost$30,000 or more and many other parks may not have a vacancy or accept homes that are older. In fact,the value of some of these homes may be less than the amount to move them. Current State laws covering landlord seizure of"abandoned" personal property were written with the typical renter of an apartment or home in mind. Since Mobile Homes on Leased land are personal property(not real estate),they are subject to the same rules.—The California state legislature is currently considering modifications to protect these owners. It is important to understand exactly what is being rented—so with a picture being worth 1,000 words please review the picture of a typical plot of dirt that is the subject of this effort. Would you pay close to $2,000 per month to rent this(with no utilities included)? Before you listen to the arguments by the park owners, a little math is in order.—The Huntington Shorecliffs park was purchased six years ago by the current owner who changed the park from a Senior Park to an all age Park and embarked on predatory rent increases. At current rental rates the income from the 304 homeowners is over$500,000 per month and the loan servicing is less than$300,000, therefore gross income is more than$200,000 per month prior to management expenses. This business model proved so lucrative that the owner recently purchased Pacific Mobile Home Park with its 267 spaces. The same math yields another gross income of more than$200,000 per month. Please allow the voters in Huntington Beach to vote on rent stabilization to protect the 2865 mobilehomes in our 18 parks from further onerous rent increases. Respectfully submitted July 21, 2014; Jack Siart 714-454-5781 jacksiart@yahoo.com � , _ ; �� �1 a �� �''�+ t- �•+� s R �. �+ .�,'�► �' �`- ' v >� ► sue.y 1 � ti .1 �` >,i ► me M401 om."1ol ff Sharon Dana, space 200 Huntington PUBLIC ton Shorecliffs Mobilehome Park S PUBLIC RECORD FOR"'OUNCIL�3�ETyC To: Huntington Beach City Council Members CITY^ FFIC a� / July 21, 2014 JOAN L FLYNN,CITY CLERK Good evening Mayor and City Council Members. My name is Sharon Dana, and I live in Huntington Shorecliffs Mobile Home Park. I am on the Mobile Home Advisory Board of Huntington Beach, am the President of GSMOL 571, and am a former member of the Huntington Shorecliffs HOA. I am here tonight to speak as a private citizen and resident of Huntington Shorecliffs Mobile Home Park regarding Item #19 on the agenda--the proposed amendment to the City Charter regarding the exemption of real property as it relates to space rents paid by seniors and vets. I have lived in Shorecliffs for almost 17 years. During that time there have been many changes. I moved into Shorecliffs when the Park was home to Senior Citizens and the space rent was reasonable. In the years since my moving into the Park the rent has more than tripled and the Park is now a family Park. Manufactured housing and Mobile Homes are an affordable option for low and moderate income households, which includes most seniors. The rent that is paid is rent on the bare dirt that the home sits on. The homeowner pays for landscaping, repairs, appliances, furnaces, hot water heaters, roofing, painting, and all other costs to the home. An apartment dweller can just pick up and move when the rents becomes too much for them to pay. The homeowner cannot do so. Most seniors living in Manufactured housing have planned out their lives. They worked hard, and chose a place to live that they could afford on their restricted income. And now they are being priced out and forced to abandon their homes. Rents are being increased by hundreds of dollars a month, sometimes as much as $500 at a time. And heaven help them if their mate or significant other dies. Many seniors lose over 50% of their income at that time. And when a senior can no longer pay the space rent, they must leave. Shorecliffs is a prime example. Where the space rent was once affordable by the senior residents, that is no longer the case. Since changing to an all age Park, almost 50% of the seniors that once lived there no longer do so. They cannot afford the rents being charged for the dirt under their homes. They were forced to abandon their homes. May. or Don Hansen Durze 23,2014 Dear Surf City Help t®r°, Down'tit seem like eve ,week e are learin soy M"hzether it is a sta y.�7 of the NSA sy- * go i n out®f con V- 01. dly,even our greaudzy hpsnft ef-xi i-mg mu_e to ---he cue. he gr ery tore You may hamve noticed dhat you row have to pay for Paper��Pggs aft M, oc s .a because sonne on,our CTy Coy ndl derided to ban pIM T 0Ce7 b2 :3 i7l 7-oory f-7nrkpa3,nnga dime for the- per oases. Put thatisn't even escadiestImug vermnent boon'dome 07,matent.I.Tng our dity. There haE been a °o .t^ r °ng that some or our C; umcil have t � �a#a y e pis ed" at auo�2 to I ��2002. i W-amt vur �ov o'r `ch city v°m o we re cc,-- 1,and set up a biff,new,e m-;n cf-C.-V to P_ terfi in!An MOMS' and dell them how much can charge th--r tenanLs for her- M7 909 have yu these s® of city bures macracies.And you I -novkT w'zt? are totz disaptez,rs,and not the-Id nd of places Hantma on Beach ought to b--emula ` n ®n each s @fad soghz to gs diffe enrly,to Rio th `.-ngs belie And how,me take care for out lower-im mbe resident residentts is no differrem, Over PI^ cio. . 4 H'�.�� a< on P-ezch "'#?�`�-vu-rse '€P-``a apt,Rfg�;- e A, of ij �' -dba f�ausor- E da'9 " a ITr S Page 2 Even the lowest of l cn e Tessi er !n our e�� f o�sc vr`ho live On the most 41mit d. fix ed i �es g �: C1W Obile pa& , n ecshpe tent subsidies the mobile henne xr ks' c3A e - at zero cosy:to ove en" And 6 S°A7 4.. 1..t c rt't 3'd e'a. in- ing into everya-spect of our Ever, to do 'M Twelve yearF ago, ;ood upbe protected in � glito aA the e to, 'W C a say,acid t'ZTY,¢'7R. S �_f US voted to P r0teCt a m The people have spo_ �>t; but- g� has been a flea°. And nvvv, some at t Hall n � �' ���� ��� � Est Enclosed you wfli find a p-a car all r e dk'r to send a vresspge to tlhoFe on our y Cour,cfl that Surf City doesWt need a Yuca i a-oraSan ta-N1on c a- e re nt cc in u-n1 Please, sign and return Ite enclosed poster x at your earble co vc. nience. We are asidng p u to folin us. Lees speck together ve�th One s r"g- Voice _ ani z 3ne City CouncAl 11°mow that-vve dar,"t mnt any experisive rent c nzy--r-1 urea f- a It just!set rigbt f'r HU notlBriton. mea h. It�"s IsA"t fiaa"T for s Mayor Don Hansen (ret, ®YWIU i am opposed to rent control and a Santa Monica-style bureauaacy in Huntington Beach.You may use my name to send a strong message to our City's leaders. WametTtie Comparry Y ^^���` Ad f State: Zip: r, ill,A Preferred pha� Email: Huntington Beach Property Owners for Property Rights-A Project of MHET 19744 Beach Blvd,#379 Huntington Beach,CA 92648