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HomeMy WebLinkAboutSenior Mobile Home Rental Assistance Program - Submitted by 959 2000 Main Street, Huntington Beach, CA {' 92648 r � _ City of Huntington Beach �I'Pi�oyED�,gy�E7✓� File #: 22-548 MEETING DATE: 6/21/2022 Submitted by Councilmember Kalmick and Councilmember Moser - Senior Mobile Home Rental Assistance Program Direct staff to phase out the current TBRA program with existing nonprofit service providers and come back to Council within 60 days with (a) policies and procedures for a Senior Mobile Home Rental Assistance Program, (b) any amendments required by HUD to redirect the existing TBRA program to senior mobile home residents, and (c) a staffing plan or a potential nonprofit partner to administer the new program. City of Huntington Beach Page 1 of 1 Printed on 6/16/2022 powereQt*LegistarT" City Council/ ACTION AGENDA June 21, 2022 Public Financing Authority approval during the November 8, 2022 General Election; and, B) Direct staff to prepare and return ballot measure language and all other materials required for submittal to the County for City Council consideration; and, C) Recognize the Committee's work and dissolve the Committee per HBMC 2.100.010. Approved all amendments taken by straw votes 6-0-1 (Peterson-Absent) Proposed Measure 1— Charter Amendments to "improve wording, make minor clarifications, and modify administrative processes"—Item #'s 1-11 revising Charter Sections 300, 303(a), 303(b), 303(c), 303(d), 304(a), 306, 311(d), 312(a), 312(b), 312(c), 400(d), 601, 604, 612(c), 801(e), and 804 Proposed Measure 2- Charter Amendments to "clarify the roles and responsibilities of the City Attorney, Clerk and Treasurer"—Item #'s 1 and 2 revising Charter Sections 309, 310, and 311 Proposed Measure 3— Charter Amendments "remaining amendments proposed by the Committee"—Item #1 revising Charter Section 300 Proposed Measure 4— Charter Amendments "suggested from City Representatives"— item #5 revising Charter Sections 304(b), 309, 310(new), and bring back clarification on 310(a)(2)(B) At approximately 11:07 PM, a motion was approved 6-0-1 (Peterson-Absent) to continue the meeting past the hour of 11:00 PM. 24. 22-444 TABLED TO JULY 5 Request for City Council direction on regulatory framework and ordinances on commercial cannabis activities Recommended Action: B) DiFeGt Staff tO pFepare nrl ret rn to the City CO U nil r u lakwy and Zoning ordinance C) DiFeGt staff to prepare and retUFn to the City GeunGil fE)F adoptien a reselutien PlaGiRg a City the NIA-Vemher 8 2022 General Pen+'en h-.Iln+ -AS; General Tax Motion to table to July 5 approved as amended 6-0-1 (Peterson-Absent) COUNCILMEMBER ITEMS 25. 22-548 Item submitted by Councilmembers Kalmick and Moser approved as amended - Senior Mobile Home Rental Assistance Program Page 8 of 9 City Council/ ACTION AGENDA June 21, 2022 Public Financing Authority Recommended Action: +4ew-pregrarw. Direct staff to bring forward recommended TBRA Program Guidelines that expands the preference to include mobile home park owners. Recommendations should be based on researching other programs and identifying best practices, leveraging existing relationships with current service providers while recognizing current obligations, and adhering to all federal regulations. Approved as amended 6-0-1 (Peterson-Absent) COUNCILMEMBER COMMENTS (Not Agendized) Councilmember Moser shared belated birthday wishes for Amory Hanson ADJOURNMENT- 11:40 PM The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, July 5, 2022, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov Page 9 of 9 960 i, CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING — COUNCIL MEMBER ITEMS REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: DAN KALMICK, CITY COUNCIL MEMBER NATALIE MOSER, CITY COUNCIL MEMBER DATE: JUNE 21, 2022 SUBJECT: SENIOR MOBILE HOME RENTAL ASSISTANCE PROGRAM Mobile Home living in Huntington Beach has become increasingly difficult. While mobile home owners own their physical home, they do not own the land under their home. If rent becomes unaffordable, picking up and moving, as one might do when renting an apartment, is incredibly difficult. Either it may be cost prohibitive to move a manufactured home or the home may be too old to find a suitable space in a nearby park with more affordable rents. Furthermore, rents in mobile home parks in Huntington Beach are increasing due to a variety of reasons including: sales of Mobile Home Parks, which trigger property tax reassessments, increasing operating costs and rapid inflation. Additionally, the lack of housing supply in the Southern California region have put upward pricing pressure on all types of housing stock, including mobile homes. That, combined with the decrease in family-owned parks and an increase in corporate owned parks, has made it increasingly difficult for many of our senior mobile home park residents to continue to afford their space rents. Through the United States Government's Housing and Urban Development (HUD) HOME program, the City has historically supported a program called Tenant Based Rental Assistance (TBRA). This is a short- term (2 years maximum) rental assistance program for low-income residents that are either about to become homeless or are trying to get rapidly rehoused. With rising rents and rental subsidy caps, the program has struggled to find units that meet HUD's strict living standard requirements. The money currently being allocated to ourTBRA program(nearly$600,000 annually)could be reallocated to create a Senior Mobile Home Rental Assistance Program (similar to what the City of Fullerton created in 2019, see attached) to help impacted seniors living in mobile homes stay in their homes. The program is federally funded and income qualified (meaning the program would be geared to those residents who make less than $50,000 a year). The subsidy could help 40-100 households at a time for two years, while elected officials at the local, county, state and federal level look for additional resources and alternatives for those experiencing an extreme hardship paying their space rent. RECOMMENDED ACTION Direct staff to phase out the current TBRA program with existing nonprofit service providers and come back to Council within 60 days with(a)policies and procedures fora Senior Mobile Home Rental Assistance Program, (b) any amendments required by HUD to redirect the existing TBRA program to senior mobile home residents, and (c) a staffing plan or a potential nonprofit partner to administer the new program. 960 961 CITY OF FULLERTON TENANT BASED RENTAL ASSISTANCE PROGRAM FOR QUALIFYING SENIOR MOBILE HOME OWNERS AND VETERANS PROGRAM GUIDELINES/OPERATING PROCEDURES I. INTRODUCTION Utilizing HOME Investment Partnerships Program (HOME) funding, the City of Fullerton (City) has elected to assist certain eligible low-income senior mobile home owners and senior veterans by reestablishing its Tenant Based Rental Assistance Program (TBRA). The Program will enable the City to meet the needs of the Participating Tenant Households by providing monthly rental assistance for one year with a proposed one-year renewal (subject to funding availability). II. TENANT SELECTION POLICY A. Eligible Participating Tenant Households - For the purposes of participating in the City's TBRA Program, an eligible Senior Tenant Household must qualify as a low-income household and must meet local preference requirements. For purposes of this Program, the definition of a low-income household is a Tenant Household that has an adjusted annual income that does not exceed fifty percent (50%) of the area median income, adjusted for family size, established by U.S. Department of HUD for the City of Fullerton. (See Attached Income Limits). The City has adopted the following local priorities: 1. Mobile Home Park senior residents (55 years or older) that are paying over 50% of their monthly income for space rent, first-come, first-serve basis. 2. Senior Veterans residents (55 years or older) that are paying over 30% (additional preference for over 50%) of their monthly income towards rent, first-come, first-serve basis. 3. Mobile Home Park senior residents (55 years or older) that are paying over 30% of their monthly income for space rent, first-come, first-serve basis. 4. Specified Mobile Home Park senior residents that are under age 55 if disabled, that are paying over 50% of their monthly income for space rent, first-come, first-serve basis. Applicants shall be selected based on Fair Housing priorities which prohibit discrimination based on age, race, creed, religion, sex, handicap, national origin or familial status. B. Determination of Participating Tenant Household Income - Gross annual income, includes payment from all sources, whether in cash or in kind, that is anticipated to be received by all adult members of the Participating Tenant Household. The Gross Annual Income includes, but is not limited to: 1. Gross amount of wage, salary, overtime pay, commissions, fees, tips and bonuses, 1 961 962 2. Net income from the operation of a business or profession, 3. Interest and other income of any kind from real or personal property, 4. Full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability/handicap or death benefits, 5. Payment in lieu of earnings such as unemployment, worker's compensation and severance pay, 6. Social Security Assistance (SSA) and/or Social Security Disability Supplemental Income Assistance (SSI), and 7. Alimony, child support and other regular contributions. C. Eligible applicants must contribute a minimum of $250 towards monthly rent and have an identified monthly income. D. Eligible applicants cannot have real and personal property, excluding furnishing and one car, valued at over$50,000. III. ELIGIBLE HOUSING UNITS A. Eligible Housing Units - Participating Tenant Households receiving Program assistance from the City of Fullerton must reside in an eligible Housing Unit. An eligible Housing Unit must: 1. Be inspected to demonstrate that the housing unit meets the Federally established Housing Quality Standards (HQS). If necessary, eligible households may apply for assistance (in the form of loans or grants) through the City's Home Improvement Program, if repairs are necessary to pass an HQS inspection. 2. Receive no other rent subsidies from Federal, State or local sources. B. Occupancy Standard - The eligible Housing Unit shall contain at least one bedroom or living/sleeping room of appropriate size. The following occupancy standard shall apply: 1. 0 — bedroom — 1 person 2. 1 — bedroom — 3 persons 3. 2 — bedroom — 5 persons 4. 3— bedroom — 7 persons IV. ADVERTISING TO ELIGIBLE SENIOR HOUSEHOLDS RESIDING IN HOUSING UNITS LOCATED WITHIN THE CITY OF FULLERTON The City shall advertise the Program by distributing flyers and/or offering workshops to the Rancho Fullerton Mobile Home Estates and Rancho La Paz Mobile Home Park and qualifying senior veterans citywide. 2 962 963 V. MAXIMUM AMOUNT OF RENTAL SUBSIDYITENANT HOUSEHOLD CONTRIBUTION A. Rent Standard - The City shall utilize the Fair Market Rent (FMR) established for the Section 8 Housing Choice Voucher Program, which is published by the U.S. Department of HUD on a yearly basis. (See Attached FY 2020 Fair Market Rent (FMR)) B. Total Tenant Household Payment - Participating Tenant Households shall pay 30% of their adjusted monthly income (as hereafter defined)for housing costs consisting of monthly space rent payment. If rent is above the FMR household will pay 30% of its income toward housing plus the amount by which the unit's rent exceeds the rent standard. C. Rent Reasonableness Review - City shall review the Participating Tenant Household's lease agreement to verify the amount of rent paid on a monthly basis, excluding utilities. VI. LENGTH OF ASSISTANCE The City of Fullerton will provide rental assistance payments for up to twelve months (1-year)from the date of the execution of Rent Payment Contract with the possibility of renewal for a second one-year period following recertification of the Participating Tenant Household's income eligibility and Program qualification. Rental Assistance Payments will be made directly to the Participating Tenant Household by the City on a monthly reimbursement basis. Assistance may be terminated upon verification that the Participating Tenant Household: A. Is no longer income eligible (i.e. income exceeds 50% of area median income adjusted per family size), or B. Fails to complete the recertification process, or C. No longer resides in the eligible Housing Unit on a full-time basis. In addition, rental assistance per this TBRA program could be terminated prior to annual renewal if the City no longer receives HOME funding. If HOME funding to the City is discontinued the TBRA program funding will be terminated on June 30' of the current program year. VII. RECERTIFICATION AND REINSPECTION Federal law requires that the City of Fullerton recertify the income of each assisted Participating Tenant Household annually. This recertification must be completed prior to the execution of a second year Rent Payment Contract. Failure on the part of the Participating Tenant Household to recertify its income eligibility will cause the termination of any further rental assistance. Should a Participating Tenant Household's income exceed fifty-percent (50%) of the area's median income, assistance will be terminated. In addition, a reinspection will be conducted annually during the term to demonstrate that the housing unit continues to meet HQS. Any and all required repairs must be completed prior to the execution of a second year Rent Payment Contract. 3 963 964 VIII. RIGHT TO AN INFORMAL HEARING PROCEDURE Participating Tenant Households have the right to be heard by an impartial official, without prejudice. Program participants may appeal a proposed Program action that may have an adverse effect upon them by submitting a written Request for Hearing to the City of Fullerton, which includes the Participating Tenant Household's objection, name and relationship of all potential parties, list of documents to be presented, current address and telephone number. Appeals must be filed within seven (7) calendar days of notification of proposed Program action. The informal hearing will be scheduled as soon as possible. The informal hearing shall be conducted in English. Notice of Informal Hearing will be issued at least ten days prior to the Hearing appointment. The Participating Tenant Household may bring legal counsel and/or a translator at their expense. Participating Tenant Household may bring person(s) to testify and/or documents at their expense. Participating Tenant Households may review pertinent file documentation as along as such documentation does not infringe on any other party's rights. Within ten business days of the Informal Hearing, the official's decision will be mailed. IX. PROGRAM PROCEDURES 1. The City receives the application with all attachments. 2. Application reviewed by City staff. 3. Annual gross income is verified and adjusted monthly income is calculated to determine the Total Tenant Payment. 4. Unit inspection is conducted. 5. Preparation and execution of the One-Year Rent Payment Contract between the City and the Participating Tenant Household and other related documents. 6. City sets up project on HUD IDIS. 7. City makes twelve monthly reimbursement payments to the Participating Tenant Household upon receipt of proof of rent payment. City shall drawdown Federal funds to reimburse City for such costs. 8. Forty-five days prior to the termination of the Rent Payment Contract, the Participating Tenant Household shall submit monthly income information. City shall review documentation for re- certification and if eligible, a unit inspection will be conducted. 9. The City and the Participating Tenant Household shall execute an additional One-Year Rent Payment contract and related documents, if needed. 4 964 965 DEFINITIONS Fair Market Rent (FMR) The Fair Market Rent (FMR) is a rent standard that is established and published by the U.S. Department of HUD for individual jurisdictions based upon the rent for standard units within that jurisdiction. Housing Unit Characteristics The Housing Unit Characteristics are certain minimum housing quality standards that meet local building codes as well as established Federal Section 8 Program minimum housing quality standards. Initial Income Verification Initial Income Verification determines if program applicants are income-eligible by reviewing original source documents. Income eligibility Income eligibility is based on anticipated GROSS ANNUAL income from all sources as follows: 1. The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; 2. The net income from operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation or assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the Family; 3. Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as a deduction in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the Family. Where the Household has Net Household Assets in excess of $5,000, annual Income shall include the greater of the actual income derived from all Net Household Assets or a percentage of the value of such Assets based on the current passbook savings rate, as determined by HUD; 4. The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including a lump-sum payment for the delayed start of a periodic payment; 5. Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except for certain exclusions (3)); 6. Welfare Assistance. If the Welfare Assistance payment includes an amount specifically designed for shelter and utilities that is subject to adjustment by the Welfare Assistance agency in accordance with the actual cost of shelter and utilities, the amount of Welfare Assistance income to be included as 5 965 966 income shall consist of: (i) The amount of the allowance or grant exclusive of the amount specifically designated or shelter or utilities, plus (ii) The maximum amount that the Welfare Assistance agency could in fact allow the Household for shelter and utilities. If the Household's Welfare Assistance is reduced from the standard of need by applying a percentage, the amount calculated shall be the amount resulting from one application of the percentage; 7. Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling; 8. All regular pay, special pay and allowances of a member of the Armed Forces and; 9. Any earned income tax credit to the extent it exceeds income tax liability. GROSS ANNUAL income does not include the following: 1. Income from employment of children (including foster children) under the age of 18 years; 2. Payments received for the care of foster children; 3. Lump-sum additions to Household assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (unless listed in inclusions paragraph (5)); 4. Amounts received by the Household that are specifically for, or in reimbursement of, the cost of medical expenses for any family member; 5. Income of a live-in aide, as defined in 24 CFR 813.102; 6. Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the Government to a veteran, for use in meeting the costs of tuition, fees, books, equipment, materials, supplies, transportation, and miscellaneous personal expenses of the student. Any amount of such scholarship or payment to a veteran not used for the above purposes that is available for subsistence is to be included in income; 7. The special pay to a Household member serving in the Armed Forces who is exposed to hostile fire; 8. (i) Amounts received under training programs funded by HUD (ii) Amounts received by a Disabled person that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for used under a Plan to Attain Self-Sufficiency (PASS); or (iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child-care, etc.) and which are made solely to allow participation in a specific program; 6 966 967 9. Temporary, nonrecurring or sporadic income (including gifts); 10. For all initial determinations and reexaminations of income carried out on or after April 23, 1993, reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era; or 11. Amounts specifically excluded by any other Federal stature from consideration as income for purposes of determining eligibility or benefits under a category or assistance programs that includes assistance under the United States Housing Act of 1937. Lease The lease must be a written document and have a term of at least one year. Maximum TBRA Payment The maximum TBRA payment is the difference between 30% of the Participating Tenant Household's adjusted monthly income and the rent limit (payment standard) established by the City. Program Participant Selection Participant selection occurs upon the receipt of a complete application package from a tenant household that is processed on a first-come, first-serve basis. Rent Standard The City of Fullerton utilizes the Santa Ana-Anaheim-Irvine, CA HUD Metro (FMR)Area as a basis for its rent standards. If rent is above the FMR household will pay 30 percent of its income toward housing plus the amount by which the unit's rent exceeds the rent standard. Tenant Based Rental Assistance (TBRA) Tenant based rental assistance is a rental subsidy reimbursement program provided by the City to help individual households afford housing costs. Total Tenant Payment The total tenant payment is the share of the amount of monthly rent to be paid by the Participating Tenant Household. 7 967 968 FAIR MARKET RENTS FY 2019 Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area FMRs for All Bedroom Sizes 2019 FMRs Per Unit Based on Number of Bedrooms One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom $1,526 $1,885 $2,643 $3,052 Fair Market Rents (FMRs)are published by HUD to be used by the Orange County Housing Authority (OCHA) for administration of the Housing Choice Voucher Program effective October 1, 2018. s 968 Moore, Tania From: Vickie Talley <vickie@talleyassoc.com> Sent: Monday,June 20, 2022 4:18 AM To: CITY COUNCIL; supplementalcomm@surfcity-hb.org Cc: Hopkins, Travis;Yoon-Taylor, Grace; Robert Evans;Julie Paule; Eileen Cirillo; Laura Reid Subject: 6/21 Council Agenda Item - Senior Mobile Home Rental Assistance Program - Support Importance: High Mayor Delgleize and Members of the City Council, Huntington Beach mobile home community owners are supportive of providing rental assistance based on need and therefore support the concept being proposed by Council Members Kalmick and Moser of a city funded rent subsidy program. What our members do not support is any form of government mandated rent control that requires property owners to provide private rent subsidies of below market rent to ALL TENANTS regardless of economic need! And, most importantly, Huntington Beach voters agree with us on this important property rights issue. As you are aware, MHET and Huntington Beach Park owners have provided monthly rent subsidies to qualified low-income residents of their parks for the past 35 years. The MHET rental assistance program guidelines are very similar to the proposed city program with the exception that our program is not limited to two years. Sincerely, Vickie } T .Lt_tu.:���t..r•.:yl I,bsG��ir;;:i+:n -r. 4 - SUPPLEMENTAL Vickie Talley, Executive Director COMMUNICATION MHET Manufactured Housing Educational Trust 25241 Paseo de Alicia, Suite 120 Meeft Dels: Laguna Hills,California 92653 Phone: (949)380-3303 Facsimile: (949)380-3310 ` gende 11 M NO'. 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 Moore, Tania From: Fikes, Cathy Sent: Tuesday, June 21, 2022 9:22 AM To: Agenda Alerts Subject: FW: Help our vulnerable mobile home park residents & home owners -----Original Message----- From: Linda Eide<lindaeide7@gmail.com> Sent:Tuesday,June 21, 2022 9:06 AM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject: Help our vulnerable mobile home park residents& home owners I am NOT a mobile home owner or resident, but I've been a homeowner in Huntington Beach for over 40 years and strongly believe the Council should work together to support these residents. They are caught in a situation where they have few options to deal with institutional investor groups that have taken over ownership of the mobile home park land their homes sit on. Rents have soared and California's Tenant Protection Act doesn't cover mobile home parks and HB's City Charter doesn't have a "carve-out" protection for mobile home parks... Please work together to help protect these residents and owners from exorbitant rent increases in these days of high inflation. Many are on fixed incomes, have worked hard to have a good life in HB and are in danger of losing their homes, way of life, etc. I DO believe that HB residents would support a plan guided by our Council to work to find potential solutions for this problem...Amend the City Charter, help write/support a November ballot measure to protect mobile home park residents, explore/support government assistantance programs for low-income seniors and residents in mobile home parks... These folks need your help! Thank you! Linda Eide SUPPLEMENTAL COMMUNICATION Meaft Dade:_ (o (I�e7� .Agenda Ibm No., 9&1 . Moore, Tania From: Robert Evans <rob@talleyassoc.com> Sent: Tuesday,June 21, 2022 3:22 PM To: Vickie Talley; CITY COUNCIL; supplementalcomm@surfcity-hb.org Cc: Hopkins,Travis;Yoon-Taylor, Grace;Julie Paule; Eileen Cirillo; Laura Reid Subject: OC Independent Article Huntington Beach Mayor Delgleize and Members of the City Council, Wanted to share this article about the Huntington Beach Charter and Rent Control that is on the OC Independent website. It further illustrates the positive direction that can be made through the use of the Rental Assistance Program that you are considering tonight. The ability to help residents in need is something we all support. https:Hocindependent.com/2022/06/opponents-supporters-of-mobile-home-rent-control-again-squaring-off-at- huntington-beach-city-council-meeting/ SLNIHeT �ucui,a+:l Ilwi v ri:w,n,t.� Robert Evans MHET Manufactured Housing Educational Trust 25241 Paseo de Alicia, Suite 120 Laguna Hills,California 92653 Phone: (949)380-3303 Facsimile: (949)380-3310 Email: rob@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. From: Vickie Talley<vickie@talleyassoc.com> Date: Monday,June 20, 2022 at 4:17 AM To: City Council <city.council@surfcity-hb.org>, "supplementalcomm@surfcity-hb.org" <supplementalcomm@surfcity-hb.org> Cc: Travis Hopkins<thopkins@surfcity-hb.org>, "Yoon-Taylor, Grace" <grace.yoon-taylor@surfcity-hb.org>, Robert Evans <rob@talleyassoc.com>, Julie Paule <julie@pauleconsulting.com>, Eileen Cirillo 1 <eileen@starmanagement.com>, Laura Reid <laura@talleyassoc.com> Subject: 6/21 Council Agenda Item - Senior Mobile Home Rental Assistance Program - Support Mayor Delgleize and Members of the City Council, Huntington Beach mobile home community owners are supportive of providing rental assistance based on need and therefore support the concept being proposed by Council Members Kalmick and Moser of a city funded rent subsidy program. What our members do not support is any form of government mandated rent control that requires property owners to provide private rent subsidies of below market rent to ALL TENANTS regardless of economic need! And, most importantly, Huntington Beach voters agree with us on this important property rights issue. As you are aware, MHET and Huntington Beach Park owners have provided monthly rent subsidies to qualified low- income residents of their parks for the past 35 years. The MHET rental assistance program guidelines are very similar to the proposed city program with the exception that our program is not limited to two years. Sincerely, Vickie MHeT 11:�ufart. d liousi[>;�E'►turatax>,�1 Vickie Talley, Executive Director MHET Manufactured Housing Educational Trust 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. 2 6/21/22,3:40 PM Opponents,Supporters of Mobile Home Rent Control Again Squaring Off At Huntington Beach City Council Meeting-OC Indepen... f(https://www.facebook.com/orangecountyindependent) @(https://www.instagram.com/orangecountyindependent/) 0(https://www.youtube.com/channel/UC2ysVh3Tl Z04XrbRvooB-xg) IM(https://www.linkedin.com/company/78452353) Search OC Independent... Q News([tQps%[tYc s:// �depQndent.ionn/,cpteg,pfy/� oT Lifeb 11�i` P�p�leFi�� l OC INDEPENDENT v u Contact(https://ocindependen (https:Hocindependent.com) Us action%3Aaction%3Dp Opponents, Supporters of Mobile Home Rent Control Again Squaring Off At Huntington Beach City Council Meeting June 21,2022(https://ocindependent.com/2022/06/21/) 9 Matthew Cunningham(https:Hocindependent.com/author/mjcunningham/) Housing(h"ps:Hocindependent.com/category/housing/),News (https://ocindependent.com/category/news/) >I (https://secureservercdn.net/198.71.233.110/ep6.753.myftpupload.com/wp- content/uploads/2022/03/skandia-feat-1 jpg?time=1655850620) Photo credit:OC Independent Email Facebook [Twitter CReddit By:Matthew Cunningham Tomorrow night,the Huntington Beach City Council will consider whether to on https://ocindependent.com/2022/06/opponents-supporters-of-mobile-home-rent-control-again-squaring-off-at-huntington-beach-city-council-meeting/ 1/7 6/21/22,3:40 PM Opponents,Supporters of Mobile Home Rent Control Again Squaring Off At Huntington Beach City Council Meeting-OC Indepen... the November 2022 ballot a series of amendments to the city charter formulated by its charter review committee.These include converting the City Attorney,City Clerk, and City Treasurer from positions elected by the people into posts appointed by the city council,as well as several more technical changes. Not on the agenda will be a demand by a group of mobile home residents for a ballot measure exempting mobile home parks from the city charter's prohibition on rent control.That push is opposed by park owners and other mobile home park residents who contend rent control infringes on property rights that will do nothing to increase the supply of affordable housing. Time is running out for mobile home rent control proponents,who want to avoid the arduous process of qualifying their"carve out"measure for the ballot by pushing the city council to place it on the November ballot for them. Last month,the city's Mobile Home Advisory Board voted 5-4 to recommend placing a"carve out"on the ballot,although one of the five"aye"votes,Scott Miller,openly questioned the wisdom of doing so. READ:Huntington Beach Advisory Board Narrowly Backs Putting Mobile Home Rent Control"Carve Out"On Ballot (https.Ilocindependent.coml2o22lo5lhuntington-beach- advisory-board-narrowly-backs putting-mobile-home-rent- control-carve-out-on-ballot/) Section 803 of the city charter(the Property Rights Protection Measure)prohibits rental control of any kind and was added in 2002 with the support of 68.7 of Huntington Beach voters. (http://www.smartvoter.Org/2002/03/05/ca/or/meas/EE/)The mobile residents group wants a"carve out"for mobile home parks only,leaving the rent control ban in place for apartment dwellers and other tenants. The"carve out"campaign was born last year in the 167-space Skandia Mobile Country Club,following an ownership change in which Investment Property Group(IPG)purchased the 58-year park for$6o million from the family that had owned it since 1964. Under Proposition 13,property is only re-assessed for property tax purposes when it changes hands. IPG's purchase of Skandia triggered a new assessment and the park's property tax bill skyrocketed.On a per space basis,the property tax surged from $50 to $26o per space. IPG also invested an additional$1oo,000 into community improvements such as asphalt and new pool furniture. Since the costs of operating the park had gone up significantly,a rent increase was unavoidable.At the time of the acquisition,most Skandia residents paid a monthly space rent of$1,128. READ:Rent Control Push Divides Skandia Mobile Home Owners(https.Ilocindependent.coml2o22lo3/rent-control- push-divides-skandia-mobile-home-owners/) https://ocindependent.com/2022/06/opponents-supporters-of-mobile-home-rent-control-again-squaring-off-at-huntington-beach-city-council-meeting/ 2/7 6/21/22,3:40 PM Opponents,Supporters of Mobile Home Rent Control Again Squaring Off At Huntington Beach City Council Meeting-OC Indepen... The owners adopted a two-pronged approach:the monthly space rent for new residents would increase to$2,195(about the market rate for the area)while the monthly rent increase for existing residents would be capped at$75 a month or 6.6%—below the current Consumer Price Index for Orange County is currently 8%. "The Skandia property tax increase has not been passed on to the park's current residents,"IPG states in its May 2022 newsletter to park residents. Eligible residents could also apply for the rental assistance program operated by the Manufactured Housing Education Trust.Under the MHET program, qualifying residents receive subsidies equivalent to io%of their monthly space rent,which is greater than the$75-a-month increase.As of the end of May,three Skandia residents were receiving the rent credit,with more going through the application process. Nonetheless,a group of Skandia residents organized the self-styled Skandia Home Owners Association(https://www.soshbmhp.net/)under the leadership of Carol Rohr,a three-year Skandia homeowner.Their goal: carve out an exemption for mobile home parks from the city's rent control ban. In Between Home Ownership And Apartment Living Living in a mobile home park occupies a middle ground between home ownership and apartment life.They are both homeowners and tenants:they own personal property in the form of their manufactured home,but rent the real estate that it's on. Likewise,mobile home residents pay the property tax on the value of their manufactured home,while the park owner pays the property tax on the land it sits on. A manufactured home is a house,it is more properly understood as personal property in the same sense that a car is.It—in and of itself—depreciates over time. Separated from the leased space on which it sits,a mobile home loses value. However,a manufactured home increases if affixed to real estates: on a leased space in a mobile home community. It's true that if one puts the mobile home on a truck for transport,it loses re-sale value.The reality is this rarely happens.Virtually all mobile homes are sold in place.The owner has a right to sell their mobile home on the space leased from the park owner,which confers value on the leasehold interest,and therefore the mobile home the new buyer purchases. Are Manufactured Homes In Skandia Losing Value Or Not? A core contention of Rohr and the Skandia HOA is that raising the space rent for new residents reduces the re-sale value of their manufactured homes.The group's website claims the increase for new residents is a disincentive to buy in Skandia and has caused"home values of current residents to plummet$75,000 and more!" "Carve-out"opponents say this argument is disingenuous,saying Rohr and her group want to hold on to the top-of-the-market price their mobile homes were commanding before the sale of Skandia.Given the desirability of Skandia's https://ocindependent.com/2022/06/opponents-supporters-of-mobile-home-rent-control-again-squaring-off-at-huntington-beach-city-council-meeting/ 3/7 6/21/22,3:40 PM Opponents,Supporters of Mobile Home Rent Control Again Squaring Off At Huntington Beach City Council Meeting-OC Indepen... location and its continued affordability relative to other housing options,those values will continue to increase,they contend. "Skandia HOA activists want a premium for their home with well-below market rent.They have no contract entitling them to either,"commented Julie Paule, regional representative for the Western Manufactured Housing Communities Association(https://www.wma.org/),which advocates for owners,operators,and developers of manufactured home communities in California. IPG contends the claims of lost value are baseless. "The statement that home values have dropped$100,000 to$150,000 and more is blatantly false,"the park owner contends in its May newsletter to Skandia residents. "Home sales prices in Skandia are at an all-time high.Eight homes have sold since the park sold in 2021,"according to IPG. MHVilleage.com,the top website for buying,renting,or selling manufactured homes,lists 12 mobile homes for sale in Skandia (https://www.mhvillage.com/parks/4463),ranging in price from$340,000 to $95,000—the latter for a 2 bedroom, 2 bath mobile home dating from 1963. Studies have shown that the resale value of manufactured homes goes up and down with the traditional housing market if they are affixed to a space in a mobile home park. This past December,the New York Times reported on a Lendingtree.com study(https://www.nytimes.COM/2021/12/og/realestate/mobile- home-values-have-been-migrating-upward-at-breakneck-speed.html) showing mobile home values increased more rapidly than those of traditional homes between 2014 and 2019.According to the study,which relied on Census Bureau data,the median value of mobile homes rose 39%during that period, versus 33%for traditional homes. In California,the rise in mobile home values has been even more dramatic: during the same five-year period,the median value of a manufactured home in the Golden State rose 85%,to$91,40o. Rents also increased during that same period, undercutting the argument that rising space rents undermine appreciation. Daniel Weisfield,whose company Three Pillars Communities invests in mobile home communities,disputes the idea of manufactured home owners as"victims." In June 8,2022 column on Linkedin (https://www.linkedin.com/pulse/my-letter-washington-post- response-were-all-afraid-rent-weisfield/),Weisfield wrote: https://ocindependent.com/2022/06/opponents-supporters-of-mobile-home-rent-control-again-squaring-off-at-huntington-beach-city-council-meeting/ 4/7 6/21/22,3:40 PM Opponents,Supporters of Mobile Home Rent Control Again Squaring Off At Huntington Beach City Council Meeting-OC Indepen... "The idea that`manufactured homes cost a lot to move,and this puts park residents at a disadvantage'is wrong,and is based on a misunderstanding of how the market for manufactured homes actually works,"wrote The reality is that more than go%of manufactured homes installed in parks will never move. When a park resident decides to move, the home remains in place,and the resident sells the home to someone who wants to live in the park.As a result,manufactured homes in parks behave like real estate,and they tend to appreciate over time." Skandia Owners Offering Multi-Year Leases IPG maintains it has done its best to mitigate the ownership change on Skandia residents,including in the area of leases for existing and new residents. In response to resident feedback,the company is officering a range of multi-year leases to all Skandia residents. These include: • No lease/existing lease,on a month-to-month basis. • A 12-month lease • A 5-year lease,in which annual rent increases would be capped at CPI • 15,20 and 25-year lease agreements,under which annual rent increases in 2022,2023 and 2024 would be limited to$75 per month. Beginning in 2025, annual rent would increase by the CPI(and not less than 5%). Rohr says that several of her group's members have already signed leases under the new ownership. "Carve Out"Proponents Refuse To Say What Rent Control Would Look Like While pressing the city council for months to place a"carve out"on the November ballot,proponents refuse to provide specifics on the rent control regime they want. Earlier this month,I had the opportunity to meet with Rohr and about a dozen elderly mobile home residents from Skandia and other Huntington Beach mobile home parks,for a spirited and often chaotic conversation.A good deal of the discussion consisted of these residents advocating the same points they have been making at city council meetings for the last several months. All were adamant in their demand for placing a"carve out"on the ballot. However,when pressed to describe what kind of rent control they want— maximum annual rent increases,creation of a rent control board to approve increases,etc.—no one would answer the question. I noted that since the imposition of rent control was their goal,and the"carve out" merely a means to that end,then voters would reasonably expect to know end goal of rent control advocates when considering whether to support the"carve out." "I think you're asking for something specific and we really don't want to cover that today,"Rohr said at one point."We won't do it." https://ocindependent.com/2022/06/opponents-supporters-of-mobile-home-rent-control-again-squaring-off-at-huntington-beach-city-council-meeting/ 5/7 6/21/22,3:40 PM Opponents,Supporters of Mobile Home Rent Control Again Squaring Off At Huntington Beach City Council Meeting-OC Indepen... Rental Assistance v.Rent Control Chris Houser and his brother own the Rancho Del Rey Mobile Home Estates in Huntington Harbour. His family has operated the 379-space park since 1965. The median monthly space rent is$1465,although half the residents pay more than $1,500. Houser says rent control demanded by Rohr's group is inequitable and unfair. "We are more than happy to assist residents that need help,and we participate in the MHET's rent subsidy program,"said Houser. "But I am opposed to singling out mobile home park owners for rent control,"said Houser. "Who is going to put limits on the increases to our expenses,which go up every year: insurance,employment costs,constantly climbing maintenance costs." "It would just lead to rundown mobile home parks,"he said. Rent control opponents point out that while rental assistance is means-tested in order to target it at residents in need,rent control makes no distinction between the wealthy and those struggling on fixed incomes. Rohr,who is leading the fight for mobile home rent control,is herself a landlord: she owns a fourplex in the upscale Belmont Shores neighborhood of Long Beach. "I'm an apartment owner under rent control,in Long Beach,"said Rohr,referring to AB 1482,the 2019 state law that limited rent increases to CPI plus 5%,with a cap at io%.Given the current bout of record inflation,all California housing providers can now legally increase rents by io%annually. "I don't have any problems staying within those guidelines,and still getting what I want,"said Rohr,who said she rarely increases her rent. Slightly smaller 1-bedroom, 1-bathroom units in the same ZIP code as Rohr's fourplex are renting for around$2,000 a month (https://www.westsiderentals.com/apartments/go803-apartments/? gclid=CjoKCQjw2MW VBhCQARIsAIjbwoPwBEj_phYLZxMgyKoyrarrRMSYVickaJIvMnpi This highlights an equity issue,say opponents of imposing rent control on mobile home parks,pointing out that—unlike rental assistance programs—there is no means-testing in rent control.They contend there is an equity issue when more affluent mobile home residents like Carol Rohr,who is paying below market space rent and receiving rental income on her fourplex,in addition to any other retirement investments,have their rent capped. "Is that fair to other mobile home owners who are less affluent,not to mention park owners,whose rising costs are not controlled?"said Paule. "This is where rent control turns into a property owner-funded rent subsidy." 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