A contentious public meeting at the Napa County Fairgrounds in Calistoga last week revealed that mobile home park residents and owners are still far from reaching an accord on rent stabilization in Calistoga.
Seniors who live in mobile home parks are concerned that changes in rent control and related laws will reduce the affordability of mobile home living and perhaps force them out of their homes. Owners are saying restrictive rent control measures are ruining their ability to operate the parks efficiently or profitably.
The Monday meeting was called so that the Mobile Home Park Rent Stabilization Ordinance Advisory Committee — a committee of mobile home park tenants, park owners, elected officials and city staff formed by the city two years ago — could report its progress to the Calistoga City Council at a future meeting.
It was the 12th meeting of the committee since July 2005, and its members continue to be at odds over issues ranging from the maximum annual rent increase allowed under local law to maintenance, rent increases following a home sale and more.
Currently, Calistoga park owners are allowed to increase rents at the rate of about 75 percent of the consumer price index. Park owners, including Dean Moser, general manager of the Novato-based HCA Management, owners of Rancho de Calistoga, want that raised to 100 percent of the CPI — a rate City Attorney Michelle Kenyon has said is rarely approved.
She said many cities hold rent increase levels to around 66 percent.
Both Moser and Calistoga Springs owner Jack Kendall have gone on record saying they cannot make a fair return on their investments at the lower rate.
Current city ordinance provides park owners a chance to petition the city to be allowed to charge higher rents, but only if park owners file a statement of net operating income, or NOI, which allows the city to gauge the park owner’s financial situation. Both park owners objected to that proposed requirement.
Moser has repeatedly stated that in recent years his expenses have gone up 9 percent while his income has gone up only 1.4 percent — but has refused to discuss the park’s NOI statements before the committee, or in a public forum.
“I’ll show them to the city council privately, but not in a public forum such as we’re in here,” he said.
Park tenants at Rancho de Calistoga have said HCA has been collecting higher rents than allowed for years. Moser, at past meetings has admitted that audits have uncovered a “few mistakes” that he has corrected by returning the money to those overcharged.
Monday’s meeting began raucously with Mayor Jack Gingles, the meeting chair, admonishing tenant representative Marvin Braun, “I’m going to either ask you to be quiet or ask you to leave. End of story.”
Gingles’ warning followed a charge by Braun.
“What you’re going to hear is Mr. Moser do everything to avoid talking about the ordinance,” Braun said. “The reason he doesn’t want to go to the ordinance (to ask the council for more money) is that if he goes he’ll have to open up his books.”
Another committee member — attempting to keep the peace — suggested the meeting could turn into a dogfight if personal comments were allowed to get out of hand.
“It’s been a dogfight up to now,” Braun said.
Rent control
Critical to the mobile park home owners is “vacancy control,” the limits on what rents they can charge new occupants to the park.
Moser suggested a 10 percent increase over what previous occupants paid.
“They can say they can afford it or can’t afford it,” he said. “Who we care for are the people who’ve been there a long time. We know they’re on Social Security.”
Calistoga Springs park owner Jack Kendall said vacancy controls have jeopardized parks all over California.
“I know a fellow who has 12 parks in California; he can’t get rid of them because of vacancy control. I can tell you, it killed the apartment house business,” Kendall said. “The main reason they are in trouble is because of rent control.”
Capital improvements and maintenance costs have also presented park owners with challenges, Kendall said. Parks are permitted to charge tenants for some costs using pass-through clauses in the ordinance. Some years ago, a pass-through permitted the owner of Chateau Calistoga to charge tenants $600 for road repairs if they paid at one time, or $900 if they paid over time, according to that park’s home owners association president, Donald Hollinsworth.
“Pass-throughs are not a panacea,” Kendall said. “I put the money up front (for improvements and repairs) and then take six to 10 years to collect the money I paid. That’s not a very good alternative, but I view it as a partnership with my mobile home owners, which should be fair — and I hope to hell I’ve been fair.”
Kendall said he realizes that one-third of the residents at Calistoga Springs are economically challenged and says he has never raised their rents. He also said he has never assessed his residents a pass-through charge.
Gingles instructed Calistoga Planner Charlene Gallina and City Attorney Marchetta Kenyon to further amend the rent stabilization ordinance for presentation to the City Council later this year.
No date was set.
City staff will focus on half a dozen key changes to the ordinance proposed by park owners:
• A rent-increase “floor” of 3 percent and “ceiling” of 6 percent — an item that drew criticism from tenant members of the committee.
• NOI (net operating income) formula increase from 75 to 100 percent;
• Establishment of a new base rent
• Recognition of a 10 percent “management” expense rather than the current 5 percent;
• An allowance for some “pass through” expenses to mobile home owners for capital improvements and substantial rehabilitation
• The ability to charge more rents to non-primary (vacation-home) residents.
“You know, the Bill of Rights was written in two years,” said resident committee member Bill Daly. “I think it’s time we get the show on the road.
AROUND CALIFORNIA - NEWS FOR OWNERS OF MOBILE/MANUFACTURED HOMES 