MEETING DATE:
June 8, 2021
SUBJECT:
Title
LAKEVIEW MOBILE ESTATES RENT REVIEW PETITION FOR PROPOSED RENT INCREASE
Body
Recommendation
Recommendation
SCHEDULE a public hearing before the Mobilehome Rent Review Commission on one of the dates listed below.
Body
Board or Commission Action
Mobilehome Rent Review Commission
Relevant Council Strategic Theme
Not applicable
Relevant Department Goal
Not applicable
Executive Summary
A majority of the residents of Lakeview Mobile Estates have submitted a petition requesting a public hearing before the Mobilehome Rent Review Commission on a proposed $163.83 space rent increase issued by the park’s owner to take effect on July 1, 2021. The purpose of the hearing shall be to determine whether or not the rental increase is reasonable. The proposed $163.83 space rent increase is between 26.92% and 36.88% based on the lowest rent in the park of $444.20 and the highest rent in the park of $608.66 for a proposed lowest rent of $608.03 and a proposed highest rent in the park of $772.49. The San Marcos City Council established the Mobilehome Rent Review Commission in 1978. The Commission was established to provide a process for manufactured home owners in rental parks to request a review of proposed space rent increases from manufactured home park owners. The Commission also provides a process for mobilehome park owners to receive a fair and reasonable rate of return on their investments.
Discussion
Pursuant to the Mobilehome Rent Review procedures, if the required number of eligible tenants have signed the petition, the City Clerk accepts the petition for filing, then forwards the petition to the Commission for the purpose of setting the public hearing. In the interim time period, the City Clerk or his designee notifies the park owner that the proposed rent increase is stayed until both parties agree on a proposed space rent increase or until the Mobilehome Rent Review Commission renders a final decision on the proposed increase.
The attached Certificate of Adequacy confirms that 77% of the residents subject to the rent increase requested a rent review public hearing.
The hearing must be scheduled before the Commission to occur no earlier than 40 days and no later than 60 days from the receipt of the petition by the City Council, which is the date this agenda item will be considered, June 8, 2021. The 40 - 60 day time frame will therefore run between July 18, 2021 and August 7, 2021, unless a different hearing date is agreed upon by all interested parties. Staff recommends scheduling the public hearing on Tuesday July 27 at 2 PM. Both parties are aware that good faith negotiations must take place in an attempt to reach a mutual agreement prior to a public hearing.
Environmental Review
There is no environmental review required.
Fiscal Impact
The costs associated with the Mobilehome Rent Review Commission hearings are typically budgeted on an annual basis. Since the hearing, should it occur, will be in Fiscal Year 2021 - 22 which does not commence until July 1, 2021, staff plans to include funding in its recommended budget for this activity. Those costs are typically split between San Marcos Housing Agency Fund (Fund 250) and the General Fund (Fund 100).
Attachment
Certificate of Adequacy
Prepared by: Sean Harris, Management Analyst
Submitted by: Sean Harris, Management Analyst
Reviewed by: Helen Holmes Peak, City Attorney
Approved by: Jack Griffin, City Manager