How Can We Keep Mobile Homes Affordable Near You?

The Golden State Manufactured-home Owners League (GSMOL) has tirelessly advocated for the rights of mobile home residents for over six decades, ensuring that these communities remain a vital source of affordable housing. This article explores the ongoing debate surrounding rent stabilization in Sonoma County, particularly in light of recent commentary by local mobile home park owner Bill Feeney, who argues that such regulations threaten the viability of mobile home parks.

Last updated: 05 October 2023 (BST)

Key Takeaways

• GSMOL has been protecting mobile home residents' rights for over 60 years.
• Bill Feeney claims rent stabilization threatens park owners, but evidence suggests otherwise.
• Ground rents in some parks are significantly higher than in others.
• New regulations under Assembly Bill 2782 aim to protect residents from escalating rents.
• Vacancy decontrol proposals could undermine homeowner equity and affordability.

The Importance of Mobile Home Communities

Mobile homes provide a unique and essential housing option for various demographics, particularly seniors, immigrants, and individuals on fixed incomes. Over the years, the GSMOL has worked to promote safe and enjoyable living conditions for these residents. As the pressures of housing affordability continue to rise, the role of mobile home parks becomes even more crucial.

Feeney’s Claims on Rent Stabilization

In a recent opinion piece, Bill Feeney contended that Sonoma County’s rent stabilization ordinances are driving park owners out of business. He suggested that these regulations are detrimental, claiming they inhibit the ability of park owners to maintain their properties and provide stable housing options.

However, Feeney’s assertions have been met with scepticism. The average reported monthly rent at his park, The Cottages in Petaluma, is £1,552—twice as high as rents in other local parks. This raises questions about the actual impact of rent control measures on park profitability.

Understanding Ground Rent

Ground rent refers to the fees charged by park owners for the space on which residents place their mobile homes. Unlike traditional homeowners, mobile home residents do not own the land their homes sit on, creating a unique dynamic that can lead to increased vulnerability to rising costs.

The Reality of Rent Increases

Feeney highlighted concerns about the sustainability of rent stabilization, citing the Little Woods mobile home park's staggering 146% rent increase since 1994, averaging nearly 5% per year. This figure illustrates a troubling trend in mobile home parks, where residents face escalating costs that threaten their financial stability.

Moreover, the sale of mobile home parks for significant sums indicates that the market remains lucrative for investors. For instance, Youngstown was purchased for £14 million in 2020, while Capri Mobile Villa sold for £4.25 million last year. These transactions suggest that mobile home parks are still profitable despite the presence of rent stabilization laws.

Long-Term Leases and Their Implications

A key aspect of Feeney's argument revolves around long-term leases, which he claims offer stability and predictability for residents. However, the reality is that these leases often come with higher rents and are not exempt from future increases. New buyers may unknowingly enter into agreements that lack the protections provided by local rent stabilization ordinances.

Assembly Bill 2782 and Its Impact

As of January 1, 2023, Assembly Bill 2782 has mandated that all leases are subject to local rent stabilization protections. This legislation aims to put a cap on how much park owners can increase ground rents, addressing some of the concerns raised by mobile home residents.

Feeney and his associates, however, have initiated legal action against Governor Gavin Newsom and Attorney General Rob Bonta in an attempt to block this bill. Their request for a preliminary injunction was denied, but the case continues to progress through the courts.

The Controversy Over Vacancy Decontrol

Feeney advocates for the adoption of "vacancy decontrol," which would allow park owners to reset the ground rent baseline when a mobile home is sold. He argues that this would help reduce housing costs, preserve communities, and minimise legal disputes. However, critics point out that vacancy decontrol could undermine the equity of current homeowners, as studies indicate that for every £100 increase in rent, homeowner equity can decrease by £10,000.

The Role of Rent Stabilization Ordinances

Rent stabilization ordinances serve a critical function in protecting residents from the potential abuses of park owners. These regulations are designed to maintain affordable housing options, especially for vulnerable populations such as seniors and those on fixed incomes. They also help preserve the integrity of mobile home communities, ensuring that residents can continue to live in their homes without fear of exorbitant rent increases.

Conclusion: What’s at Stake?

The debate surrounding rent stabilization in Sonoma County reflects broader issues of housing affordability and the rights of mobile home residents. While park owners like Feeney argue that regulations threaten their businesses, the evidence suggests that these measures are essential for protecting the equity and wellbeing of residents. The ongoing legal battles and proposed changes to regulations indicate that this issue will remain at the forefront of local discussions.

As the landscape of mobile home ownership continues to evolve, it is crucial for residents to remain informed and engaged. The outcomes of these debates could significantly impact the future of affordable housing in communities across California.

FAQs

What is the Golden State Manufactured-home Owners League (GSMOL)?

The GSMOL is an organisation dedicated to advocating for the rights of mobile home residents in California, focusing on promoting safe and affordable housing options.

What are ground rents in mobile home parks?

Ground rents are fees paid by mobile home residents to park owners for the land their homes occupy. These rents can vary significantly between parks.

What is Assembly Bill 2782?

Assembly Bill 2782 is legislation that requires all leases in mobile home parks to adhere to local rent stabilization protections, reducing the ability of park owners to increase rents excessively.

How do rent stabilization ordinances protect residents?

Rent stabilization ordinances help to cap rent increases, ensuring that mobile home residents can afford to live in their homes without facing sudden and significant financial burdens.

What is vacancy decontrol, and why is it controversial?

Vacancy decontrol allows park owners to reset ground rents when a mobile home is sold. Critics argue it can threaten homeowner equity and lead to increased costs for new buyers.