Mobile Home Rent Law Hinges on Talks
In an effort to convince the last of three mobile home park operators that rents should rise no more than 7% during the next year, the City Council voted this week to approve a one-year rent-control ordinance limiting increases to that amount.
The action was intended to strengthen the city’s hand as discussions continue with Stephen Esslinger, operator of Laguna Terrace Mobilehome Park, who has refused to agree to the 7% cap accepted by the owners of Treasure Island and Thurston mobile home parks. If Esslinger and the city reach an agreement before the next council meeting July 10, the ordinance will be tabled without receiving final approval.
On June 5, after months of grappling with ways to stabilize rents at mobile home parks, the council lifted a six-month rent freeze and accepted agreements with owners of Treasure Island and Thurston. The Treasure Island agreement allows a 7% rent increase but freezes rents for low-income senior citizens. The Thurston agreement allows a 6% increase but has no special provision for seniors.
Esslinger was willing to agree only to limit rent increases to those imposed last year, which ranged from 7% to 9%. He maintained that most of his 156 tenants have signed long-term leases and would not be affected by an annual increase.
However, about 10 Laguna Terrace residents appeared at Tuesday’s council meeting to complain about rent increases of up to 18% a year.
“Everyone is in a squeeze there,” said Jean Davis, who said her rent has increased up to 17.5% a year. “I will have to move next year when my rent is half of my income.”
George Ballantyne, who has managed the park for 16 years, said some increases were part of 10-year leases intended to reduce the disparity in rents at the park. People with lower rents were given higher percentage increases, Ballantyne said. According to Esslinger, no one has moved from Laguna Terrace because of rent hikes.
“A person in need can come to me any time and express their need, and we’ll work out a deal where they get to stay in the park,” he said.
The council, which considers mobile home parks as important sources of affordable housing in Laguna Beach, has directed the Planning Commission to consider several measures to stabilize mobile home rents. Among the measures are proposals that would allow mobile home owners the first option to buy their parks should they go on the market, and give renters a say in a relocation plan should they have to move after a park is sold.
