Item 5 - Ballot Initiative on Mobilehome Rent Control Restrictions /~ ENDA REPORT SUMMAR'- ~
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Manager
INITIATED BY: John D..Fitch, Assistant City Manager's, ~.
Penny R~ley, Senior Management AnalysF,.j~
DATE: May 16, 1995
SUBJECT: Ballot Initiative on Mobilehome Rent Control Restrictions
On May 9, 1995, Councilmember Bob Emery requested that staff obtain information on the
Mobilehome Rent Control Restrictions Act. This report provides a summary of the
measure and requests Council direction for further action.
This item is not subject to CEQA review.
F
There is no fiscal impact associated with this informational report.
None.
t is recommended that the City Council provide direction to staff.
ACTION Continued to 5-18-95. (7/~ (~ /~c~ ~
Marl puty ( y,
\repot ~
1~AY181995 rrEM .5 ..~
i of 12 MAY 1 6 I§§B ITEM 14 ,, )
CITY OF Pow^Y
AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Manager
INITIATED BY: John D. Fitch, Assistant City Manager~~
Penny Riley, Senior Management Analys~)~''
DATE: May 16, lgg5
SUBJECT: Ballot Initiative on Mobilehome Rent Control Restrictions
On May 9, 1995, Councilmember Bob Emery requested that staff obtain information
on the Mobilehome Rent Control Restrictions Act.
FINDINGS
Provided in Attachment A for City Council's consideration is the Attorney
General's title and summary of the ballot initiative: Nobilehome Rent
Assistance. Nobilehome Rent Control Restrictions. The text of the measure is
included as Attachment B.
The initiative generally contains the following p
· Requires mobilehome park management to administer and provide rent subsidy
equal to ten percent discount on monthly rent to tenants meeting residency and
income requirements when ten percent or less of occupied spaces are covered by
rent control or rent subsidy.
· Establishes priorities for, and conditions for losing, rent subsidy.
· Invalidates existing, and prohibits new, state mobilehome rent control laws.
· Limits existing, and prohibits new, local mobilehome rent control laws.
· Prohibits such laws from requiring reductions in rent and limiting '
in rent to less than specified cost of living index.
The ballot initiati e received a sufficient number of verified signatures to
qualify for the bal ct on October 12, 1994. The Nobilehome Rent Assistance.
Hobilehome Rent Con rol Restrictions measure will appear on the ballot for the
statewide election o be held March 26, 1996.
IiAY 1 8 1995 ~[~M ,5 ~.:t'l
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Agenda Report - Rent Control
May 16, 1995
Page 2
PACT
There is no fiscal impact ~ with this inf 1 report.
EVIEW
This item is not subject to CEQA review.
None.
RECOMMENDATION
It is recommended that the City Council provide direction to staff.
JLB:JDF:PAR:eb
Attachments:
A. Attorney General's title and summary of ballot initiative:
Mobilehome Rent Assistance. Mobilehome Rent Control Restrictions
B. Ballot initiative text.
I~AY 1 8 1995 ITEM
blAY ). 6 1995 iTEM 1~+
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Date: January 27, 1994
File No: SP..93RF0042
The Attorney General of Callforrda has prepared the following title and summary of
the chief purpose and points of the proposed measnre:
MOBILEHON[E RENT ASSISTANCE. MOBrLEHO,ME REN"I' CONTROL
RESTRICTIONS. INITIATIVE STATUTE. Requires mobilchomc park
to and pro, de rent subsidy equal 1o ten percent discount or. mr~nth!., tc~;t
to tenants meeting residency and income req when ten percent or less of
occupied spaces are covered by rent control or rent subsidy. Establlshcr priorities for.
and ' ' ' for losing, rent subsidy. Invalidates existing, and proh/bits new, state
mob/dehome rent control laws. 15mits exSsting, and prohibits new, local mobilehome
rent control laws. ?rol-zibits such laws from requiring reductions in rent and limiting
increases in rent to less than specified cost of lMng index. Summary of estimate by
Legsslative Analyst and Director of Finance of fiscal impact on state and local
g No impact on state costs or revenues, l.n the near Term. cities and
counties may increased costs which are unknown, but are not likely to lotal
more than millions of dollars annually. In the long term, local agencies wonld
savings in the range of millions to tens of millions of dollars annually.
I~iAY 1 8 1995
4 of 12 Attachment A ~IAY 1 0 1995
AN BE THE ¥0 ~ I.~S
The Attorney General of California has prepared the following title and e, um .mary of
the cfaief purpose and points of the proposed measure:
(Here set forth the title and summery prepared by the Attorney Ger,e~al This title
and summary must also be printed top of each page of the ped~Jon whereon
are
To the Honorable State of California:
We, the undersigned, registered, qualified voters of California, ~esident~ of
County (or City end County), hereby propose to [he California
Civil Code, releting to establishment of a subsidy for Clualified Dr, or and
needy on park rent control in lieu
thereof, and prohibitions of of rent control measures by the State
anc by ,oca; charter and genera; ;aw c!ties and counties, and petit,on the Secre;ary
State to submit the same to the voters of California for their adoption or rejection at the
next ;~ general election. The proposed statutory (tull tide ~nd text
of the measure[ read as follows:
._ SECTION 1: TITLE
This Measure shall be cited as The Fairnes~ and
Rental
SECTION 2: FINDINGS AND DECLARATIONS OF PURPOSE
(a) The People of the State of California find and declare as follows:
(1) Soma tenants of parks ir'~ L;a~if..~rrda
are poor end needy and are urgently in need of without dele'~s, expense
or reel tape which state and usuaIfy requires for the 01
rental programs; and
(2) Over 80 local are spending millions of dollars annually
ad ' ' and enforcing mobilehome park rent controls for the exclusive benefit of
owners of mobilehomes which comprise only 5-percent of Cahfarnia'~
housinG units with ::1 controls that are generally not means tested to the poor, so
that mobitehome owners ' 2e value ot ~50,OOO
obtain unfair price controls in of small
b and all the citizens of California: and
(3) These controls jeopardize of
park housing for al! and jeopardize cont!nueCJ an~-
seal! existence in California; and
(4) Reouiring the provis;on of direct rental subsid~e~ Dy requiring
park owners to provide specified reduce~ rer,~s for the p,3or, togettmr w~tn the
on most restrictive features of rent limitations wf~icb have~4Ayadversely[ 8 1995a;~e~a
5 of 1Z Attachment B ~IAY 1 6 1995 ITEM
the and supply of mobile home housing. *s
the continued of affordable mob;ia home housing to the poor; and
(5) The limitation of the rental subsidy provided in ~hi.~ f~':eaSL.'e
to not more than of the spaces in a single park will provide a
amount of to need park tenants, withuu! unduly
burdening the park owner.
(b) It is therefore the intent of the People of the State of California in enacting this
Measure to do all of the fo/lowing as e maker concern:
(1) ReQuire owners of parks to grant directly, without
· ' rental subsidies [o not more th~.c, .~,~ f~e,,cer, t ~f
their
(2) Require iocal to minimize their park rent control
measures by allowing annual to the cost of living and require
to phase out rent control on a space by space ba.',i.'~ ~Jpon
sale, transfer ~r sublease cf any
(3) Prohibit of any new park rent ccnt;ol or ren~'
law by any local g or by the State of California.
lc) This Measure is not intended, nor shall it be to deprive any
owner, tenant or park owner of any right,-.
SECTION 3: AMENDMENT OF CHAPTER 1 OF DIVISION 2 OFCALIFORt~.~ C!'/ILCODE:
Chapter I of Pa~ 2 of Division 2 of the California Civil Code is hereby amended as fo~low, s
by adding new Section 798.13, as follows:
798.~.3 As used in this part, the following terms have the following
la) "Tenant" means a as defined in Section 79~.9 of this C, haptct.
(b~ "Qualified Tenant" who, as of the date of and
during any period while receiving a rental satisfies all of th~ tollowing
(1) The tenant resides in a park in the State of C, alifornia: and
(2) The tenant is a very Iow income as defined in section 50105
of the California Safety Code; and
{3) The tenant is not del~ncluent with any rental has
legal residency in a and owns and occupies such as the tenant's
principal place of residence; and
(4) The tenant, including ell other rasid~r'~j ,n the
is * with ell rules anC~ of thc parl~ arid the
tenant's rental aG
(5) The tenant is not receiving any Federal, State or local housing
including but not limited under Chapter 8 with
section 1404a) of Title 42. United States Code: The Housing and C
Act of 1974 (Public Law 93-383); Chapter 45 v, ith section ;3601) of Trcle
42, United State Code; or any other housing program
adminis*.ered by the D Housing and Urban or a~ provided by
other slate or faders! laws or programs.
(c) "Rental subsidy" as used in Article 4.4 of thi.'; pert ~e.sns a ten-
percent discount from the monthly rent charged for the space; occ,~p~d by
one or more qualified tenants, park man~ge~,.u~tt
monthly The monthly rent level of a Ot~ehfied tenant
who is receiving or is entitled a rental subsidy, may be increa,~ed and
shar~ be as from time to time, so that the ~>~t~-,l¥ ,eat
level shall not, at any time, exceed the average monthly rent level chargec 1or all spaces, in
the mobilehome park then occupied with
Only one rental subsidy shall
of how many ciuaiified tenants who reside in a space, so tha~ no
mob[lehome be entitled to more than one discount from ',he
monthly rent level.
(d) "Exempt space" aa used in of this part mean.~ (ii ,.~n¥ space ir~ a
park which is not occupied by a as of the effective da~ c,f this
Measure, or (ii) any space which is, as of the effective date of this Measure, exernp~ arcm
a park rent control law as a result of any lease or renter covermg
such space including, without limit, at[on, a rental described in section 7DS 17 of
this Chapter.
(e) park. as used in Articles 4.4 and 4.5
means any ordinance, ru~e, regulation, or initiative measure, adopted by anv cit.. county o~
city and county, which a maximum amoun', that the of
13ark may charge any tenant for rent.
(f) ~ event' as used in Articts 4.5 of this part means, with
any space in a park covered by a perk rent CDn.'~ol !aw as et the
effective date of this Measure, the of any of the foIIowir~g e~,~,.Is ~tter the
effective date of this Measure: (f} Any sale. transfer {by old,radon of law
otherwise), or other change in of the {as defined in Section 7gE.3
of this Chapter); (ii) of the tenancy of the persons who are tenants in such
s~ace by eviction, or or (iii) Any sub-lease by the ;anent to a
third party of the or space of this K4easure, prowded
noth;ng contained herein is intended any of the or
space, the provisions of subdivisions (i), (ii), and (iii) here;n,
be deemed to have occurreO upon any transfer of cf a
to the guardian or trustee of a or to a
s 995 ITEM 5 ',
? of AAY 16 1995 ITEM 14
trus! (p,ovlded that the ' ' ' entlt~ed to of the a,.? .~¢rnbers
of ~he fat1311'F), or to a s;~'~:v;n~ s;:ouse upon :he ~ea'h
other spouse, 0r t0 a spouse or the parent(s) 0r Chilaren 0f a
tenon: under this Measure, after ~eOuc[ing the renta~ SdDs~0y
otherwise tawfully to the tenant.
SECTION &: OF CHAPTER 2.5 OF DIVISION 2 OF THE CAL~60~,JIA.
CODE
CheD~er 2.5 of Par~ 2 of D~vls;on 2 of the CaNforn[a Civ{I Code is ner~D~
foJ~ows Dy ad~mg a new Art;cie 4.~. as follows:
Article ~.4 Tenant
798/4.1 A~¥ oualified tenant may apply for and if a¢¢e~ted, sba, r~L'e~,'~,. ,~
:he o~ a ~arK ~n which such tenant resioes, a re~'a~
subsidy subjec: to the terms and conditions provided for ~n :his
7D8.44.2 T~e orovis[on of the rental SuDSiOy S~RII be the sole
and obligation of each of a park and neither the E.tate of
~&[[forn~a nor any. agency shall have any :herefor or exercise
any authority in except as provided in Section 7D~,a-: E Df
A~icte.
798,A~.3 (a) Each ~enan~ seeking ~o obtain a rental subsidy shall p~ovioe
wi;h an together w~th evidence of facts, ';o
tenan~ is a ~ua~]fied ~enan[, This and evidence may be a~ any
subsi0y for ~he ensuing calen0ar year ~ January 1. The evicence
the shall consist of and residency ~r., ~
and such income and other ' as ~s recuired Dy
agency ' ~ the housing benefits for Very Low Income persons
Section 8 of the Uni[ed States Housing Act of 1937 (42 U.S.C. sec. 1437) and such
eviOence es is reauired. However, no Dark
make this ~rocess more to the would be t~e c~se
the tenant were a~Dlying for ~ousing benefits for Very Low Imc3me
under Sectmn 8 of the United States Housing AC~ of 1937 ~42 U.S.C. ~ec.
(b) Each ~ark menag ~romotW uDo~ receipt of such
and evidence specified in ~aragra~b [a}, evaluate t~e same and rep~y to
~enan~ w~h notice within 10 working days. The re~ly shell indicate e~ther (1)
in which case the amount of :he rental suosidy and the mon=hiy
ren~ l~vel shall ~hen be scared; or [2) rejection, m which case the ~asts for such
shah also be stated. Once a ~ualifie~ ~enan= has received a rental s~bs~dy
~ur~nG amy pa~ of a calenOar year, the rental subs,dy shall continue until
31 of ~a~ year, subject to early as provided ;n [~is Article.
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?98.44.4 ) any other provision of this Article to tt~
~'a} ~,!1 tn s~ ' in which Dark ~nt c~n~toI ~5 ~ ~ffect, ~e
of a park sha[~ flora the rental subs[dy
prows;oas of this Article if, end es long es, more than pt the ~p,~¢ e5 occupied
by mobilehomes in such mobilehome park are covered by any form of park
ren~ con[roi.
(2) In any ' in park rent contrOl iS in effect, if
any time of t~ ~ by mobilehomes in a
Dark are covered by any form of mobilehome park rent control, the of
Dark shall be subject to the provisions of this A~icle and shall be reouired to
provide rental subsidy to a qualified tenant; provi0ed, however the[
of the be requ~re~ to ~ovi0e such rental
subsidy if granting the subsidy would result in more than of the
spaces in the mobUehome park being covere~ either by any form o1 pa~k
control or bythe rental prowded byth~s Article. The priority ~or
granting renta~ subsidy shat~ be governed ~ ' ' ,c~ of t~
798.44.4.
{b) ~n any ' in which there is no form of Dark rent control
eftect, the of a park shell be required to provide the rer,ta~
subsidy ~rovided by this Article to Qualified tenants ~ not more than
of the occupied in such park. The
priority for granting rental ' sha~! be governed by {c) of
section 798.44.4.
(C) (1) Jn Jn which ~a)(2) or (b) of th,s
sect;on a~Dly, the of a park $halJ be required to gra¢~t the rentat
subsidy ~rovided for in this A~icle to those qualihed tenants who are f~rst
time to have been granted a rental subsidy by the of
park.
(2) In ' ' the number of aualified which the
of a Dark shall be required to provide rental un3e~ subdiws,on
(a}(2), the management of the park shall aetermine the numaEr of ~ue~ified
tenants which rental subsidy, by the
0f s~aces then subject to some form of park re~t co~trol fro~ the r~umaer
of the total number of s~aces then OCCupied by in
the park.
79~.44.5 ~a) Any ~uelified tenant receiving a rental subsidy shall lose the right
t0 such rental )sidy upon the of any of the follow~ng events:
{1) The Oay the monthly rent in with t~e rental
(as reduced by the w~th~n five days ct ~ts Oue dare;
0r
(2) The tenant no longer meets the criteria for e Quallfie~ tenant for any
reason.
9 of 12
[b) The rnobilehorne park may, upon 10 days' written notice t,> the
tenant, term;hate the tenant's rental subsidy for a reason .~pecifled ~n
{1} or (2} of (a~.
(c) A tenant whose subsidy has been pur.,uant to
subdivision {b} may not subsidy for a period of ~ ;- months
(d) For purposes of the forth in section 798 44.4. a ret.[al
' ' ~b) shell be deemed to have been
on the last day of the
798.44.6. Any or damaged by any violation of [his
Article may petition the municipal Court of the judicial district in wh.ch the
park is located for a judicial of his or her rights under this Article.
aggrieved tenant prevailing in such an action shall to la) actual dame[les
c~ns;sting of the amount of rental subsidy lost due to the violation and (b)
a~orneys fees and costs. A tenant aggrieved by a violation of tn,s .;,rli~le shal
also be entitled to ' ' relief, and any other equitable
section 526 of the Code of Civil
A juqgment of the municipal court shah be by the appellate
of the superior court of the county in which the action arose.
798.~-4.7. (a) A perk' shall not terminate the :ur.~nc~ of any
tenant, or do so. or retaliate or ~o
result of a request ID for a rental subsidy or the exercise
of any r~ghts relating provided in this Article.
(b) Any demand by a mobilehome for rent in axce~$ o~ th~
rental charge from any Qualified tenant whose for a rental
subsidy is approved for t~e calendar year or whose wes denied
violation of this Article shell constitute a defense to any action brought b~ the
park management for (1) the excess rent over the rental charge or (2) eviction
of the qualifie~ the park for of rem[.
However, this ' ' does not apply if of the rental charge
would violate any right of the owner of the park ~o a fair rate of
return.
SECTION 5: OF ARTICLE 4.5 OF PART 2 OF DIVISION 20I~ THE
C CIVIL CODE
Article 4.5 of Pa~t 2 of Division 2 of the California Civil Code ' to add the
following new Sections 798.45.1,798.45.2, and 798.46.3 as follows:
798.46.1 On or after the effective date of this Measure, no city, county, or city
county, shell, (a) enact any new park rent control law or (bi amend or rnodlfv
any existing park rent control law to apply its on maximum rents to
any space in a park which i$ not. on the effective date of this M~e~ure, by
)' IAY S 1995
6
10 of 12 1 6 1995 ITEM i
reason of a long or under the
park rent control law.
798.46.2 Every mobilehome park ~ law in effect as of the ef~ech.e cate of
this Measure shall be subject to the following ' '
(e) On or after January 1 of the year following the effective date of th~s MeasurE,
no park rant control Jaw may, with respect to the a
perk for a space w/thin such park, either (i) re:~uire that the rent
for such be reduced from that before the effective date ct this
Measure or as of any subsecluent date, or (iii limit any annual rent increase [~ 3~ amo,~nt
which is less than the full annual cost of living increase, by the cf,ant'jo in
such cost of living from the 12-month period ending in the calendar month precedinr=l the
date in which a notice of rent increase is given by the park at
any time, and from time to time, after the effective date of th~s Measure.
For purposes cf this the cost of living sh~ll be using
the Ca~f0rnia Consumer Price tndex ('CCPI"J, as pub~she~ by the ,~t'
Re~at;ons for att items and alt urban and th~s index for thc 1,°82-, 284 p(~r~od
shaU be computed as 100.
ih) No ' any park rent control law ~hal; require
the of a park to attend any hearing or submit an~ to
- such jurisdiction so [cng es limits the rental increases for any space attected
by such mob[lehome park law tO the full annual CCPt ~ncrease as provided in
subdivision (a) of this section.
{c) On or of this Measure. no park rent control
law shall impose any restriction on the amount Of rent that the of
a park may Charge for e space w~thin such park upon or after a
ct event, as defined in Section 798.13 (fl.
(d) On or after the effective date of this Measure, no park rent
]aw shat impose any restriction on the amount of rea! that the of
e perk may charge for a space within such park which is an exempt space, as
defined in Section 798.1:3 (d). Afl shall be, for all purposes of~ or a/tar
effective date of this Measure, exempt from any and all park rent con[roi
laws.
798.46.:3 The State of California statute or the
restriction of, the maximum amount of of a park
may charge for · space in a park. Any statute having e~acted
before or date of this Measure shall be void and
SECTION 6: AMENDMENT OR REPEAL OF MEASURE
The provisions of this Measure may be amended or repealed by ~he set
- forth in this section. If any portion of (a) ' invat;d, then
(b) shall be the exclusive means of amending this title.
(a} The provisions of this be amended to further its purposes by
statute, passed * by rollcell vote entered in t~e journal of the
ancl signed by the Governor.
(b) The provisions of this IV' be emended or repealed by a statute that
becomes when approved by the electors.
SECTION 7: DATE
.'The of thls Measure shall be the day after the electior, at w~,ch i! is
approved by the voters.
$~:CTION 8: CONSTRUCTION OF MEASURE
The Measure shall be liberally construed to achieve The purposes of this Measure
and to preserve its validity.
SECTION 9: $ Y
If any provlsion of this Measure, or the to any I~e,son or
is held invalicl or void. such invalidity or voidness shall not affect othe, or
which can be given effect without the invalid or void prowsion or
and to this end, all of the provisions of this Measure are declared to be
SECTION 10: ELECTORS' INTENTION IN THE EVENT OF PASSAGE OF POSSIBLE
CONFLICTING MEASURES
In the event to be voted on by the voters at the same e~.ction as
this Measure, and which e scheme, receives more
votes then this Measure, the that any provision ~' ' ' of
this Measure not in direct and apparent any provision or ' ' of another
Measure, shall not be deemed to be in and shal~ be save:ed from any
other provision or provisions of this Measure which are in direct anc~ apparent conflict with
the ' ' of another Measure. In such event, the provisions snail be severed
according to the provisions of Section g of this Measure upon ~o any court of
Y tAY 1 8.1995 ITEM 5 f
s tAY 1 6 1995 ITEM
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C : for Mobilehome Fairness
' RECEiVEr
ty of Po~ay
MA GERS OFFICE
O. Box 789
~ay, CA 92064
e ~ai~ess bas
96 ballot. ~e would ~tst~
r~t control through vac~cy -- wh~ curr~t t~ts
333 S. G~nO Ave
Sui~e2S20 move, rental ra=es for their spaces ~ould be set by market -- ~d
would a ~d
LOS Angeles
ck~o07~ subsidy progr~ for ~en~ts ~der the s~ate Health ~d Safety code.
(2~3)s~-2s22 ~alyses by ~d ho~g e~erts ~dtcate the
F~: 891-2828
will have a~ worst a neutral impact on mobilehome houses
F~: 8~1-~22~
for 1~- ~d ten,ts '~d may~ because of the
subsidy have the effect of houstns for
these groups.
From the of local ~ the w/11 have several
posi:ive ~pac=s. As you ~ow, r~= control h~ be~ a
issue ~ m~y Pressure from t~t ~roups or r~= con~rol
has resulted ~ t~payer ~se
~d of where they ave been adopted.
Some cities have ~ded ~ ~cess of $1 million such
~d costs ~ ~to the h~dreds of
of dollars. ~e state's ~alyst, ~ the
official ballot s,,mma~, has ~he w~ld save local
j :ens of millions of dollars each year.
rent control has also ~d distorted the local ~litical
process ~ m~y ci~ias. Adoption of the Fai~ess
this issue ~d ~eplaces it with ~
~d f~ded syst~ which protects bo~h t~ts h need
~d property o~ers.
At a t~e wh~ ~he public is a ~ the size ~d scope of
the Fai~ess offe:s local J a
ch~ce =o reduce ~d ~ses while still
the public ~ezest.
Please join ns ~ the Fal~ess ~etuE the
enclosed card ~oday so we c~ add you~ n~e to the
g~owhg list of local elected this badly needed refo~.
S. Houston James W. Silva
Mayor
San Diego County City of Dublin Orange County
. m,e~V??-
may my name to the growing list of elected officials
You
add
who support the Mobilehome Fairness Initiative.
Office
Jurisdiction
Street Address
City State Zip
Day Phone Evening Phone Fax
The ¢31iforni'~ Mobilehome
Fairness b,iti-~tive
Qualified for the March 1996 Statewide Ballot
for Policy
A Briefing from
Californians for Mobilehome Fairness
(213) 891-2822
April, 1995
MAY ]. 8 1995 ITEM .5
CONTENTS
Page 1 Summary of Benefits
Page 3 Official Ballot Title and Summary
Page 4 Text of the Initiative
Page 15 Executive Summary - Real Estate and Land Use Institute's
Study June 1, 1994.
'1995
MU NICIPAL BENEFYI o
from passage of the
CALIFORNIA MOBIl FHOME FAIRNESS INITIATIVE
"In the lOng term, lOCal ng ' Id exp
millions to tens Of millionS of doll ' lly
Change is in the ~ir. You don't need to be a political expert to know that
changes in the way they are governed. At the local level
* Better ~ * Improved public safety
* More eft' ?tax dollars * More responsive 8
Examples of this shiff : ;~e. Besides reali ' California in
1994, :litionally liberal Massachusetts approved ~ rent
control statewide. The messa~t focus on the
truly needy and the broader public - not just si:
Local& t new ways to safeguard tA ' tout
increasing regulatory ~ending limited taxpayer dollars in the proce~
The Mobilehome Fairness Initiative offers just such an opportunity.
The Mobilehome Fairness ] ~e trend in C J less
8 t I while retaining loc ~the public good and
promoting changes imi:
Average mobile~ period is 10 years. A decade will pass before
this law is fully implemented.
The Initiative offers a 10% rent subsidy to 10% ofresid led
parks - 60% of the state 'spark residents, equal to 300,000people will be
immediately eligible if they quailS. Qualification is based on Section 50105 of the
California Health and Safety Code criteria. Park )ayers, pay for the
subsidy.
B By g the need for costly enf b )' and
litigation expenses, the Mobilehome Fairness I !1 save taxpayers
millions of dollars that can be used on vital publ like police and fire
p p community priorities these days.
Th ~ported by broad-based ting park resident
rej: parkowners, taxpayer groups, and oth 3' and civic
organizations. Because the subsidy will I; ~le to tens of thousands of park
tiately, whil' y offering parkowners the regulatory relief
they need to stay in business, and because local 8 will benefit fi.om phasing
out layers of regulatory bureaucracy, this initiative has the opportunity to be a win-
win-win for California.
Polls show that if th /ay, 63% of Id vote yes on the
initiative because of its progressive reforms and benefits for local g
budgets.
i What other factors make th'
nes
Th t at th t of ~er tl~ )lie-
home neighborhoods. Publ' has shifted in favor of targeted assistance
rather than blanket benefits regardless of need.
Independent studies prove that while th ' tfall to park residents
wh is introduced, the benefits disappear when first 8
sell their h ting tenants. Over the long term, the free market provides
more equitable protection for both parkowners and tenants.
Rent control is a d There have been no mobilehome
parks built in California in the last five years, and th plans to build
any. This h ' leading to a shortage of ,le and
affordable housing ~ecially f :1 young families.
For further information pi ' James Vaughn a~ (213) 891:2822~
1995 ITEM 5
Title & Summary
MOBILEHOME RENT ASSISTANCE. MOBILEHOME RENT
CONTROL RESTRICTIONS. INITIATIVE STATUTE. Requires
mobilehome park management to administer and provide rent subsidy equal to
ten percent discount / rent to tc ag residency and income
req~ when ten percent or less of occupied si: t by rent
control or rent subsidy. Establishes priorities for, and conditions for losing,
rent subsidy. Invalidates existing, and prohibits new, state mobilehome rent
control laws. Prohibits such laws ~rom requiting reductions in rent and
limiting increases in rent to less than specified cost of living index. Summary
of estimate by Legislative Analyst and ~ Finance of fiscal impact on
state and local I~ No impact
term, cities and counties may expe~ience increased costs which are unknown,
but are not likely to total more than millions of dollars anm~*lly. In the long
term, local a// t cxg ~s of million to t~ns of ~
doll ~ ry.
January 27,. 1994
~¥ 1 8 ~995 ITEM
AN INITIATIVE MEASURE TO BE
SUBMITTED DIRECTLY TO THE VOTERS
The Attorney C-eneral of California has prepared the following title ~xi summary of the
chief'purpose and points of the proposed measure: (Here set forth the title ~md summary
prepared by the Attorney C~neral. This title and summary must .tsu be ~
the top of each page of the petition w~ )pear.)
To the Honorable Secretary of State of California:
We, the undersigned, registered, qualified voters of C ' dents of
County (or city or county), hereby propose amendments to the California Civil Code,
relating to establishment of )sidy for qualified poor and needy
mobilehome park tenants, 1/ )ilehome park in lien thereof,
and prohibitions of ~mobileE measures by the State and by
local charter and general l t t petition the Secretary of State to
submit tl~ ae voters of California for their adol: the next
succeeding 1/ The proposed statutory amendments (full title and text of
the measure) read as follows:
SECTION 1: Title
This Measure shall be known and may be cited as The Mobilehome Fairness and Rental
Assistance Act,
SECTION 2: Findings and E ?Purpose
A. The People of the State of California find and declare as follows:
1. S :' mobilehome spaces in mobilehome parks in C poor
and needy and are urgently in need of without delays,
red tape which state and local ~ ' y requires of th ' '
I~iAY 18 1995 ITEM
-4-
2. Over $0 local i~ ting millions of dol~
a~d ~forc'mg mobilehome park rent controls for t~ benefit of owners of
mobilehomes which comprise approximately only.5% of California's housing units
with unrestricted controls that are generally the poor, so that
mobileh~ '~ilehomes with nn average value of $40,000 to $50,000
obtain unfair 1= ' led area~ at the expense of~mall
busine~s-parkowners and all t~ ~C '
3. TI controls jeopardize th ~' ~ilehome park
housing for all Californians and jeopard ~d employment and small
business-parkowners' ' California; and
4. Requiring the provision ofd ' >sidles by requiring
mobilehome park owners to provide specified reduced rents for the poor, together
with the ~' features of rent I~' ' gch have
ndversely affected the availability and supply of such affordable mobilehome
housing, is necessary to n~sure the continued availability of affordable mobilehome
housing to the poor; and
5. The limitation oft~ ~sidy provided in this M
than 10% of the Sl~ >ilehome p~rk will provide a reasonable
nmount of .~dy mobilehome park tenants, without unduly burdening
the property interests of the mobilehome park owner.
B. It is therefore the intent oftha People of the State of Cal'tfornia in
enacting this Measure to do all of the following
statewide concern:
1. R :'mobilehome parks to grant directly, without ~n
~, ' ~sid ~an 10% of their
mobilehome sp
2. Require local 1~ ' ' ' ~eir mobilehome park
measures by allowing equal to the cost of living and require
local I~ phase ' ~, on a space by space
I~ai$, upon the sale, ~lease of any mobilehome.
3. Prohi~ : of eny new mobilehome park rent control or rent
law by any local ~n by the State of California.
-5-
C. This 1~' ted, nor shall it I to deprive
any mobil ~ilebome park owner of any
SECTION 3: Amendment of Chapter I of Division 2 of Californht Civil Code (D~-itions)
Ch&pter One of Part 2 of Division 2 of the California Civil Code is hereby amended as
follows by adding new Section 798.13, as follows:
798.13 As used in this part, the following terms have the following meanings:
A. "Tenant" means a 1~ defined in Section 798.9 of this
Chapter.
B."Quali~ed Tenant" means any tenant who, as of the date of
application, and during any period wi ' ' ~ a rental
~sidy, satisfies all of the following
1. TI ' :les in a mobilehome park in the State of California; and
TI -y l household, as defined in Section 50105 of the
California Health and Safety Code; and
3. The delinquent with any rental payments, has established a legal
residency in a mobilehome, and owns and occupies such mobilebome as the
tenant's principle place of residence; and
4. Th :ling all other residents regularly residing in the mobilehome, is
in compliance with :l regulations of the mobilebome park and the
5. T~ ' ' g any Federal, State or local housing assistance,
including but not limited :let Chapter $ ( g with
Section 1404a) of Title 42, United States Code; The Housing and Community
Development Act of 1974 (Public Law 93-383); Chapter 45 ( g with
~'tion 3601) of Title 42, United State Code; or any other ~ housing
assistance ~ ~ by the Department of Housing and Urban
Development or as provided by other state or federal laws or programs.
IYIA¥ 1 8 1995 ITEM
-.6-
C. "R )sidy' as used in Article 4.4 of this I:
10% ~' the monthly rent ~ for the mobilehome space
occupied by qualified ~ished by mobilehome
park management (the pre-subsidy monthly rent level). The pre-subsidy
monthly rent level of a q w~ ' ' ~ or is entitled to
race subsidy, may I ! shall be
decreased, as appropriate, that the pre-subsidy
monthly rent level shall not, at any time, exceed the average monthly rent
level charged for all spaces in the mobilehome park then occupied with
mobilehomes.
Only )sidy shall apply to any mobilehome space
regardless ofhow many qualified tenants who reside in a mobilehome
space, so that no mobilehome space shall be entitled to more than one
10% ~ ~e pre'subsidy monthly rent level.
D. "Exempt space" as used in Article 4.5 of this part means (I) any space in a
mobilehome park which' :~ied by a mobilehome as of the
effective date of this Measure, or (ii) any space which is, as of the
effective date of this Measure, exeml: ~ilehome park rent
control I ~any I ~ such
space including, without l ~ described in
Section ?98.1 ? of this Chapter.
E. "Mobilehome park "as used in Articles 4.4 and 4.5 of this
I: ! ord' , ~lation, )ted
by any city, county or city and county, which establish
amount that the management of a mobilehome park may charge any
· Jent for rent.
F. "Decontrolling Event" as used in A~ticle 4.5 of this part means, with
respect to any si: ~ilehome park covered by a mobilehome
park law as of the effective date of this Measure, the
~any of the following events after tt ~'this
Measure: (I) Any, by t' operation oflaw or
otherwise, or other chamt ~ip of the mobilehome (as defied in
Section 798.3 of this Chapter); (ii) Any ~the tenancy of the
persons wl~ ~ space by eviction, voluntary vacancy or
otherwise; or (iii) Any sub-lease by t~ ~ird party of the
mobilehome or space a~er the effective date of this Measure, provided
1995 [TI:M 5
nothing contained ~ ' ' ied to authorize any such sub-lease of
the mobil :)ace.
Notwithstanding the ~ ' ' :' subdivisions (l), (ii), and ('tii) herein, no
decontrolling event shall be deemed to I i upon any transfer of'
ownership of a mobilebome to t~ guar~li,~ ~ a
~ ~ provided that the beneficiaries
entitled to ownership of the mobile~ ~ of the
~ ~iate family, ' ' ~ spouse upon the death
of the other spouse, or to a spouse or the parent(s) or children of a
"Subsidized Rental Charge" means t~ ~rent chargeable to the
qualified tenant under this Measure, aRer deducting the
subsidy from the rent otherwise lawfully chargeable to the tenant.
SECTION 4: Amendment of Chapter 2.5 of Division 2 of the California Civil Code
Chapter 2.5 of Division 2 of the California Civil Code is hereby amended as follows by
adding a new Article 4.4 as follows:
Article 4.4 Tenant Rental Assistance
798.44.1 Any qualified tenant may apply for and if accepted, s~ ' directly ~om
the management of a mobilebome park in which such tenant resi~
subsidy subject to the terms and conditions provided for in this Article.
798.44.2 The provision oft~ )sidy shall be the sole responsibility
and obligation of each management of a mobilehome park and neither the State.of
Calif / g ~ency shall have any responsibility t~
any authority' ~erewith, except as provided in Section 798.44.6 of this
Article.
798.44.3 (a) Each ' ~g to o~ ~sidy shall provide the
management with an application, together with competent evidence of facts, to prove the
tenant is a qualified tenant. This application and evidence may be submitted at any time
during any calendar year up to December 15 for consideration oft~
subsidy for the ensuing calendar ) ' ~ January 1. The evidence
accompanying the application shall consist of ownership and residency in the
]i~,~¥ 1 8 1995
-8-
mobile, home ~nd such income and other inf uily required by the
~ lency ~lministering the housing assisiance ben,ts for V~y Low Income
I Section 8 of the United States Housing Act of 1937 (42 U.S.C. sec. 1437)
and such ot~ [y required.
)bile, home park ~ shall make this application 1:
burdensome to the tanant than would be the ca~ ift~ ~plying for housing
· ssistance benefits for V~y Low Income persons under Section 8 of the United States
Housing Act of 1937 (42 U.S.C. sec. 1437).
B. Each mobilehome park management shall, promptly upon receipt of such
application and evidence specified in paragraph (a), evaluate the same and
reply to such tenant with notice within 10 working days. The reply shall
indicate either (1) acce~ ich case th f'the rental
)sidy and the pre-subsidy monthly reat level shall then be
stated; or (2) rejection, in which case the basis for such rejection shall
also be stated. Once a quali6ed tenant has received
subsidy during any part ora calendar year, t~ ~sidy
shall during any part of a calendar year, the rental
~sidy shall '1 D~raber 31 ofthat year, subject
to early provided in this Article.
798.44.4 Notwithstanding any other provision of this Article to the contrary:
A. (1) In any juri~ i~ich mobilehome park is in
effect, the management ofa mobilehome park shall be ~x~apt from the
~sidy 1~ ' ' ~this A t as long as, more
than 10O/~ of the spaces occupied by mobile~ ~ mobilehome
park are covered by any form of mobilehome park
2. In any jurisdiction in which mobilehome park is in
effect, if at any time fewer than 10% of the spaces occupied by
mobile~ ')ilehome park are covered by any form of
mobilehome park the management ofa mobilehome park
shall be subject to the ~ ' ' ,~this Article and shall be required to
provi~t' )sidy lo a qualified tenant; provided, however,
that the management oftbe mobilehome park sh~li, not be required to
provide such )sidy if granting the subsidy would result
in more than 10°4 of the spaces in the mobilehome park being covered
either by any form of mobi]ehome park or by the rental
1 8 99s ITEU 5
~sidy provided by this Article. The priority for granting
~sidy shall be governed by subdivision (c) of this
section 798.44.4.
B. In any jurisdiction in which there is no form ofmobilehome park rent
control in effect, the management ofa mobilehome park shall be required
to provide the rental ~sidy provided by this Article to
qualified tenants representing not more than 10% of the spaces then
occupied by mobileh ~ mobilehome park. The priority for
granting rental :~sidy shall be governed by subdivision (c) of'
this section 798.44.4.
C. (1) I ~ich subdivision (a)(2) or subdivision (b) of this
section apply, the management ofa mobilehome park shall be required to
grant the rental >sidy provided for in this Article to those
qualified tenants who are iq have been granted a rental
>sidy by the management of the mobilehome park.
(2) In determining the number of qualified rich the
management ofa mobilehome park shall be re required to provide rental
ter subdivision (a)(2), the management of the mobilehome
park shall determine the number of qualified tenants which represent
sp t to the rental subsidy, by subtracting the number of spaces
then subj form ofmobilehome park from the
number representing 10% of the total number of spaces then occupied by
mobilehomes in the mobilehome park.
798.44.5 A. Any qualified g a rental ~sidy shall lose
the right to such rental >sidy upon th ~'any of the following
events:
1. The tenant fails to pay the monthly lance with th :
(as reduced by the rental )sidy) within five days of its due date; or
2. Th longer meets the criteria for a qualified tenant for any
reason.
B. The mobilehome park management may, upon 10 days'
the tenant, ~ )sidy f
specified in paragraphs (1) or (2) of subdivision (a).
z 8 995 ITEM
-10-
C. A terumt wh~ ~sidy has I pur~mnt to
subdivision (b) may not reapply t' )sidy for a period
of 12 months therea~er.
D. For purposes of the 10°/~ 1 forth in ~tion 798.44.4, a renud
)sidy terminated [ xiivision (b) shall be deemed
to have l: on the last day ofthe calendar year.
798.44.6 Any qualified ieved or damaged by any substantial ' ~ ,"this
Article may petition the municipal court of the judicial d ~ich the mobilehome
park is located for judicial d f'his or E ter this Article. An
aggrieved tenant prevailing in such 1all be entitled to (a) actual damages
consisting of rE F )sidy lost due to f2 t (b)
reasonable attorneys fees and costs. A tenant aggrieved by ~this Article
shall also be entitled to seek' ' 'ief, and any other equitab]
under section 526 of the Code of Civil Procedure.
A judgment of the municipal court shall be reviewable by the appellate department of the
~the county in which th
798.44.7. (a) A mobilehome park's management s~ the tenancy of
any tenant, or attempt to do so, or retaliate against any tenant, or attempt to do so, as a
~ .~a request by that tenant t' )sidy or the exercise
of any" g thereto as provided in this Article.
(b) Any demand by a mobilehome park's management f
ofthe subsidized rental charge from any qualified tenant whose application for a rental
~sidy is approved for the calendar year or whose appF denied or
rejected ."this Article shall d ~' ~tion brought by the
mobilehome park = for (l) th the subsid ge
or (2) eviction of the qualified le mobilehome park for non-payment of that
However, this subdivision does not apply ifenF ~the subsidized
rental charge would violate any ?the owner of the mobilehome park
to a fair rate of return.
SECTION 5: Amendment of Article 4.5 of Pan 2 of Division 2 ofthe California Civil
Code
MAY 1 8 1995 ITEM 5
Article 4.5 of Part 2 ofDivision 2 ofthe California Civil Co~ i the
following new Sections 798.46.1,798.46.2, and 798.46.3 as follows:
798.46.1 On or aider the eft' ' ?this M' .~, county, or city and
county, shall, (a) enact any new mobilehome park law or (b) amend or
modify, any existing mobilehome park law to apply'
! s~ '~ilehome park which is not, on t~ '
this Measure, by reason ora long term lease or otherwise, subj
under the mobilehome park law.
798.46.2 Every mobilehome park I' ?tl~
of this Measure shall be subject to the following provisions:
A. On or ~,ffer January 1 of the year following t~ ."this
~ilehome park law may, with respect to the
rent which a mobilehome park management may charge for a sp~ce within
such park, either (l) require that the rent for such space ever be reduced
f~om that lawfully clutrged before th ~thJ
of any subsequent date, or (ii) limit any
which is less than the full , f'living ' by
the cl~nge in such cost of living f~om the 12-month period ending in the
calendar month preceding the date in which a notice of
given by the mobilehome park manag .~ time, and
time, at:ret the effective date of this Measure.
For purposes of this paragraph, the cost of living shitll be detern~ned
using the California Consumer Price Index ("CCPI"), as published by the
Department of Industrial Relations for t ail u
and this index for the 1982-1984 period shall be computed as 100.
R No jurisdiction administering any mobilehome park law shall
require the management ofa mobilehome park to attend any hearing or
submit any ~' ~ j long as n ~ts
for any space affected by such mobilehome park rent
control law to the full annual CCPI' provided in subdivision
of this section.
C. On or meter the effective date of this M' ')ilehome park rent
control law shall impose any 1 ."rent
that the management of a mobilehome park may charge for a mobilehome
1995 ['i"E[~ 5
space within such park upon or after a decontrolling event, as defined in
Section 798.13.(0.
D. On or after the effective date of this M ~ilehome park rent
control law shall impose any t~ ~rent
that the management ofa mobilehome park may charge for a space within
such park which is an exempt space, as defined in Section 798.13 (d). All
exempt spaces shall be, for all purposes on or after the c ' ~'
this Measure, exempt fxom any and all mobilehome park
laws.
?98.46.3 The State of California shall 5, or authorizing
th ~ tl~ ~rent that the management ora mobilehome
park may charge for a s~ ~ilehome park. Any statute having that effect and
enacted before or after the effective date of this Measure shall be void and
unenforceable.
SECTION 6: Amendment or Repeal of Measure
The I: ' ' ?this Measure may be amended or repealed by the procedures set forth
in this section. If any portion of subdivision (a) is declared invalid, then subdivision (b)
shall be t~ ~amending or repealing this title.
A. The 1~ ' ' ~this Measure may be amended to further its purposes
by statute, passed in each house by roll call ~e journal,
two-thirds of the membership concurring and signed by the Governor.
B. The ~ ' ' ~this Measure may be amended or repealed by a statute
that becomes effective only when approved by the electors.
SECTION 7: Effective Date
The effective date of this Measure shall be the day after tE rich it is
approved by the voters.
-IS-
SECTION 8: C ~'Measure
The Measure shall be liberally construed to achieve the purposes of this Measure and to
didity.
SECTION 9: Severability
If any provision of this Measure, or the app]' ~' 1:
held invalid or void, such invalidity or voidness shall not affect other F ' '
applications which can be 8' aout the invalid or void F ' '
application, and to this end, all of the 1: ' ' ?this Measure are declared to be
severable.
SECTION 10: Electors' I ae Event of Passage of Possible Conflicting
Measures
In tl: aer Measure to be voted on by th ~ ~is
Measure, and which ~rehensive regulatory sc~
~ ~an this Measure, tl~ t that any ~ ' ' provisions
of this M direct and apparent conflict with any 1~ ' ' F ' ' ~'
another Measure, shall not be deemed to be in conflict therewith, and shall be severed
from any other 1: ' ' I~ ' ' ?this Measure which are in direct and apparent
conflict with the provision(s) of another Measure. In such event, the p ' ' ~all be
severed according to the F ' ' ? Section 9 of this Measure upon app]
court of competent jurisdiction.
-14-
RENT CONTROL
ISSUES AND IMPACTS
~TAT~ &
,.AND
N~TITUTE
SCHOOl. OF BUSINGS A
CALIFOI~NIA ~'TATE UNIV~,.~, SAC~J~.NTO
7750 Collese Town Drive, Suite 102
Sacramento, CA 95626-2344
916/278-6633
June 7994
1995 ITEM 5
EXECUTIVE SUlVIlViARY
The objective of this project is to review the impact ofreslrictive rent
control pop t housing issues; to compare objectives
The study concentrates on citi, , ~ive rent control,
because it' ' ies that the intent of ly not meet
their intended goals. The 1980 and 1990 C ~ared to
ascertain the percent change between Berkeley and a raf
Al' t Santa Monica, and its ref ,y, Los Angeles. The
results indicate that:
Both Berkeley and Santa Monica lost rental housing units (single-family
detached and single-family attached units) while their ref ies
added to their rental housing stock. Both cities lost stmc!
while their ref ies gained this type of housing
structure.
· Both Berkeley and Santa Monica showed decli~ r-occupied
rooms while their ref ies gained renter-occupied rooms
Both cities and both counties gained ~ied rooms.
· Rent y cause biases against certain age groups. The data
indicate that family composition may be affected ~er of
persons in their early child-bearing years is declining in both cities.
Also, despite the rapidly aging society, the elderly popula6
declining or barely increasing in both of these cities,
counties, the elderly populati ~ rapidly.
· Both declines in the percent of the population that rented.
The greatest decli~ ~ White renters. While the proportion
of Hispanic rem t for the subject and ret' that
proportion did not' fast in the tw ies.
· Overall, { :ers declined in both cities. In Berkeley, the
declines were greater. Although the proportion of]
increased in Santa Monica, ~ did not keep p
county increase.
1995
· The coml= ' ' that rent control benefit to
but it is not clear that the groups for whom thc benefits
ted are the actual recipients.
· Gentrificalion (that is, the disp] Fl t
educational status renters by hi~ t educational status
owners) is the opposite of what the rent control ~ to
achieve, but' ~ in both cities. The two reslrict~ [
cities have b ~ly inhabited by higl~ er=
educated 1~ : control.
The data show that the restrictive rent control .'keley and
Santa Monica do not meet their stated goals. Instead, the groups for whom
.~pear to be the least likely to receive benefits,
and appear to be leaving these two cities to find rental housing elsewhere.