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Conversion foes are now lobbying the governor

County's mobile home owners push for bill


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If a mobile home park owner decides to convert the park to condominium ownership, should residents have a right to decline to buy their lot and still retain their existing rent-control protection?

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SACRAMENTO — Mobile home owners in Ventura County, who mobilized last week to help persuade reluctant lawmakers to give them protection against unwelcome condominium conversions, are now focusing their lobbying efforts on Gov. Arnold Schwarzenegger.

At issue is AB1542, a bill that would close what proponents call a loophole in existing state law that allows owners to convert parks to condominiums. The park owner is then freed from local rent-control ordinances as soon as a single lot is sold.

The owners of three mobile home parks in the county have begun proceedings to conduct such owner-initiative conversions.

"It's a big issue in Ventura County with the residents," said Supervisor Steve Bennett of Ventura, who took a statewide lead in lobbying for the bill. He said local residents made scores of telephone calls to the offices of undecided senators last week.

"We've got the e-mail addresses of hundreds of people, and we've contacted them all and asked them to now send a letter to the governor," Bennett said.

The bill would maintain local rent controls for residents who choose not to purchase their lots. It also would give counties and cities that already have mobile home rent control ordinances the ability to place conditions on a park owner's application to subdivide a park.

Sign or veto date is Oct. 12

Strongly opposed by park owners, the measure squeaked through the Senate by a single vote last week on the final day of the lawmaking session. Schwarzenegger now has until Oct. 12 to sign or veto the legislation.

Assemblywoman Noreen Evans, D-Santa Rosa, said she met with Schwarzenegger's staff earlier this month and was told the administration is undecided on the issue, and has not ruled out signing the bill.

Opponents, led by the Western Manufactured Housing Communities Association, argue that existing law encourages park owners to make conversions and thus allow mobile home residents to own the property beneath their coaches.

The association's executive director, Sheila Dey, said earlier this year that the current situation benefits both park owners and their residents, because it gives owners a chance to get out from under "oppressive" rent-control laws and gives residents a chance to build up equity in their homes.

300 have rent-control laws

About 300 California counties and cities have rent-control laws for mobile home parks, including Ventura County and most of its cities.

Proponents of the bill say the change would protect seniors, who are much more concerned with having predictable housing expenses than with investing in real estate.

"The park owners have done their best to obfuscate the issue," Evans said. "We all believe in the American Dream. If you can afford to buy your lot, I'm all for that. But if you're a senior on a fixed income, a condo conversion creates an enormous amount of fear and anxiety."

Under existing law, those residents who meet the state definition of "low income" would be protected by a state rent-control law after a conversion. Those above that income level, however, could see their rents climb over four years to whatever rate the market would bear.

Proponents of the law note mobile home residents are in a unique economic situation, since they own their house but not the ground under it. Their home's resale value is dependent upon a buyer's ability to pay monthly installments on a home loan and also monthly rents. If future rent increases are unpredictable, the home's value decreases.

Bennett said removing rent controls would amount to a transfer of wealth from mobile home owners to park owners.

If Schwarzenegger vetoes the bill, Bennett said there will be the potential for "a flurry" of conversions. "Because we have so many parks in Ventura County, the potential here is very significant."

Discussions

Posted by jskdn on September 18, 2007 at 1:53 p.m. (Suggest removal)

" Bennett said removing rent controls would amount to a transfer of wealth from mobile home owners to park owners."

Of course, just as rent control has transferred the wealth of park owners to mobile home owners. The more pertinent question is not wealth but rather whose property is being expropriated. If a mobile home worth $25,000 by itself is sold for many multiples of that when located in a rent-controlled park, what is it that is actually being sold? The problem that scenario creates is that many people have already paid the previous owners of their coaches for the value of the sub-market rents that come with government price controls. That money is gone from the equation so in effect there are legitimate claims that are greater than the land value in question.

Posted by frutsun on September 18, 2007 at 2:52 p.m. (Suggest removal)

jskdn makes a valid point. Also, since when is it a property owner's responsibility to provide affordable housing? Isn't that what our government is supposed to do? Maybe our local officials should provide some tax incentives for more affordable housing.

Posted by horsespinner on September 20, 2007 at 10:32 p.m. (Suggest removal)

thus no more mobile home parks. that is what happens when socialists take over



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