MEETING DATE:
MAY 26, 2026
SUBJECT:
Title
RESOLUTION NO. MHP 2026-50 - SPRINGDALE ESTATES MONTHLY RENT INCREASE FOR THE SPACES AFFECTED BY THE SEPTEMBER 2025 RENT INCREASE NOTICE
Body
Recommendation
Recommendation
ADOPT resolution granting Springdale Estates a monthly rent increase for the spaces affected by the September 2025 rent increase notice.
Body
Board or Commission Action
The San Marcos Mobilehome Rent Review Commission (Commission) held a hearing on May 19, 2026 pursuant to San Marcos Municipal Code (SMMC) Chapter 16.16 and the Commission Procedures (Procedures), adopted by the Commission for the conduct of rent review hearings.
Executive Summary
The Commission is the authority for proposed mobilehome space rent increases, pursuant to “SMMC” Chapter 16.16. In September 2025, the owners of Springdale Estates mobilehome park (Springdale) notified the park tenants of a proposed 4% rent increase, to be effective January 1, 2026. In response, a majority of the affected park tenants signed a petition, which was filed with the City, requesting review of the proposed increase. The hearing was conducted and the Commission, based on the evidence submitted by the parties, the evaluation of the Commission consultants, and testimony presented at the hearing, granted a rent increase as to those spaces affected by the September 2025 notice.
Discussion
Springdale Estates is an all-ages mobile home park located at 2907 South Santa Fe Avenue with 85 spaces. It is owned by Kleege Enterprises. On September 25, 2025, the City received notice that the park owner had notified its tenants of its intent to increase space rents by 4%, beginning January 1, 2026, affecting 84 of the 85 spaces. On October 26, 2025, the City received a petition signed by a majority of the affected Springdale tenants in response to the rent increase notice distributed to them in September 2025 (the Petition). Upon receiving the Petition, the City determined that it met the requirements of SMMC Chapter 16.16 and notified the park owner and tenant representative that the rent increase was stayed pending a review and decision by the Commission.
At its hearing on May 19, the Commission received and considered testimony from the parties and from its fair return expert Dr. Baar, deliberated on the matter, and reached its decision based upon the evidence presented. The Commission determined that a monthly space rent increase equivalent to 75% of the applicable CPI of 4%, calculated to be 3%, was reasonable and necessary to enable the park owner to receive a just and reasonable return on its investment, to be applied as a uniform dollar amount per space. Based on the average Springdale space rent of $879, the Commission unanimously approved a uniform rent increase of $26.37 per space, per month, effective May 26, 2026 pursuant to the Procedures, for the affected 84 spaces.
The attached Resolution memorializing the Commission’s determination is presented for its consideration and action.
Attachments:
Resolution
Prepared by: Jill D.S. Maland, Assistant City Attorney
Approved by: Helen Holmes Peak, City Attorney
Reviewed by: Michelle Bender, City Manager