MEETING DATE:
APRIL 14, 2026
SUBJECT:
Title
ACCEPT SAN MARCOS MOBILE ESTATES RENT REVIEW PETITION AND SET HEARING BEFORE THE MOBILEHOME RENT REVIEW COMMISSION TO CONSIDER PROPOSED SPACE RENT INCREASE
Body
Recommendation
Recommendation
ACCEPT the City Clerk’s Certification of the rent review petition filed with respect to San Marcos Mobile Estates, SCHEDULE a hearing before the Mobilehome Rent Review Commission concerning said proposed space rent increase, recommended to occur on June 9, 2026 at 3:00 pm, and acknowledge that the City Manager or designee may reschedule said hearing in the event the parties mutually request a revised hearing date and time pursuant to Resolution 2023-9242 and revised Mobilehome Rent Review Commission Procedures.
Body
Relevant Council Strategic Theme
Not applicable
Executive Summary
The Mobilehome Rent Review Commission (“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 provides a process for mobile home park owners to receive a fair and reasonable rate of return on their investments.
The City is in receipt of a mobile home park review petition from San Marcos Mobile Estates mobile home park. 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 hearing. In the interim, the City Clerk or his designee notifies the park owner that the proposed space 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.
Discussion
Pursuant to City Council Resolution 2023-9242, the updated Mobilehome Rent Review Commission procedures, the hearing before the Commission must be scheduled to occur no sooner than forty-nine (49) days and no later than sixty (60) days from the receipt of the petition by the City Council. As part of this agenda item the City Council will accept the tenant petition and also set a Mobilehome Rent Review Commission hearing to consider the proposed increases.
San Marcos Mobile Estates Mobilehome Park
On January 23, 2026, the City Clerk received a notice of proposed rent increase that would go into effect May 1, 2026. A majority of the affected residents of San Marcos Mobile Estates mobilehome park signed a petition requesting a hearing before the Mobilehome Rent Review Commission on the proposed 4% space rent increase issued by the park’s owner, which was submitted to the City Clerk. Staff recommends that the City Council schedule a hearing to occur on June 9, 2026 at 3:00 pm.
The Certificate of Adequacy, which is included in this agenda packet, confirms that sixty-nine percent (69%) of the residents who are subject to the rent increase requested a rent review public hearing, exceeding the threshold for scheduling a hearing. The purpose of the hearing will be to determine whether or not the rental increase is reasonable. The park owner’s representative has been advised that the space rent increase in question is stayed until a final determination is made by the Mobilehome Rent Review Commission.
Suggested Hearing Dates
Pursuant to San Marcos Municipal Code section 16.16.070 and related Council procedures, the time frame within which to hold the hearing is between 49 and 60 days of the date of this Council meeting, or at the latest by June 13, 2026, unless a different hearing date is agreed upon by all interested parties. Staff recommends that the public hearing for San Marcos Mobile Estates be scheduled to occur on Tuesday, June 9, 2026 at 3:00 pm, and that the City Manager or designee be authorized to administratively reschedule the date in the event the parties mutually request a revised hearing date and time that is compatible with the Commissioners’ schedules. The parties are required to engage in good faith negotiations in an attempt to reach a mutual agreement prior to the public hearing.
Environmental Review
The activity performed under this action is not a “project” as defined under Section 15378 of the California Environmental Quality Act Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3, Sections 15000 - 15387), and is therefore not subject to environmental review pursuant to Guidelines Section 15060(c)(3).
Fiscal Impact
The costs associated with the Mobilehome Rent Review Commission hearings are budgeted in the approved Fiscal Year 2025- 26 budget. The costs are split between General Fund (100) and San Marcos Housing Agency Fund (Fund 250).
Attachment(s)
San Marcos Mobile Estates Certificate of Adequacy
Prepared by: Phillip Scollick, City Clerk
Reviewed by: Helen Holmes Peak, City Attorney
Approved by: Michelle Bender, City Manager