ANAHEIM : Rent Control Plan Will Test Council

The new City Council majority will have a chance to flex its political muscle Tuesday when it decides whether to approve a mobile home park rent control ordinance or put the issue before voters in a special election.

In its first meeting with newly elected member Bob Simpson, the council will be faced with making a decision about the rent control initiative--a decision that was shelved on election night in order to allow further study.

Because residents collected more than the 14,760 signatures required for an election, officials must either enact the proposed ordinance or put it before voters March 5.

Enacting the plan would demonstrate the clout of the new council coalition that includes Simpson, Mayor Fred Hunter and Councilman William D. Ehrle. Rent control proponents were unable to win majority support from the previous council.

The city attorney’s report to be discussed Tuesday estimates that it would cost the city up to $50,000 to establish a rent control program, and $343,000 annually for attorneys and staff to administer it.

In addition, the report estimates that the city would incur $50,000 to $250,000 in legal expenses from court challenges to such an ordinance.

While some of those costs may be defrayed by an annual registration fee required by the proposed ordinance, it is impossible to determine if those fees would offset potential costs to the city, the attorney stated.

Additionally, a special election will cost the city about $100,000, according to the city clerk.

The initiative would reduce park rents to 1988 levels, and limit annual increases to 8% of the existing rent, or 75% of the yearly percentage increase in the federal consumer price index, whichever is less.

In 1987, many of the same supporters of the current rent control initiative tried to bring a similar plan before voters. That attempt failed when the city declared their petitions invalid.

Mobile home park residents, most of whom support the initiative, want the voters to decide. They say annual rent increases amount to rent gouging, and many, especially seniors on fixed incomes, are unable to keep up with the high space rents, plus pay the mortgage on their homes.

Park owners say rent control would force them to sell the parks to developers, who would build more expensive housing on such choice Orange County land.