Laguna Beach OKs Strict Mobile Home Rent Control : Ordinance: A split City Council limits annual increases to about 7%, rolls rates back to 1989 levels.

Ending nearly two years of emotional debate between mobile home park owners and their tenants, the City Council has approved a strict rent-control ordinance that limits rent increases and rolls rents back to 1989 levels.

After a public hearing attended by about 150 residents of the city’s three mobile home parks, the council approved the rent-control measure on a 3-2 vote. Laguna Beach will be the first Orange County city to enact rent control since San Juan Capistrano passed its law in 1981.

“I’ve never had so much mail on one issue,” said Councilman Robert F. Gentry, before voting to approve the law. “I’ve read some heart-rending and tragic stories. This ordinance strikes at the heart of what a community is all about--taking care of the health and welfare of its residents.”

Tenants were pleased by the council’s vote, but park owners promised that the dispute would continue.

“It’s guaranteed we would take them to court,” said Steve Esslinger, owner of Laguna Terrace Mobile Homes. “This is very frustrating. This will hit me hard because it comes out of my pocket.”

The ordinance limits annual rent increases to 7%, or 75% of the annual consumer price index increase, whichever is less. Mobile home park rates will be rolled back to Jan. 1, 1989, levels, and the council will appoint a hearing officer to decide disputes between landlords and tenants.

But park owners were most upset about the council’s plans for “vacancy control,” which would limit what a landlord could charge a new tenant. The council asked City Manager Kenneth C. Frank to come up with specific guidelines for the vacancy-control portion of the ordinance.

Michelle Brooks, regional director for the Western Mobile Home Assn., a trade organization of mobile home park owners, said that if the council decided to apply rent control to vacant spaces, “this would definitely be one of the more restrictive ordinances we’ve seen.”

Although upheld in California courts, vacancy control has been overturned at the federal level, according to City Atty. Philip Kohn. The council asked its staff to develop a compromise that would let park owners rent at market rates when a tenant moves.

The San Juan Capistrano ordinance has survived several legal challenges--the most recent two years ago--with the 4th District Court of Appeal ruling in favor of the city.

Jubilant mobile home owners, who filled the meeting room with cheers when the vote was announced, said rent control is badly needed. A mix of young and old park residents spoke of frustration over rents increasing beyond their ability to pay.

In an emotional plea, Carolyn Scott of the Laguna Terrace park told the council that the tenants “need your help. We’re not rich. Please, you have to help us.”

But the landlords pointed out that they have limited rent increases to 7% voluntarily over the past four years.

Vicki Talley, director of the Orange County Mobile Home Assn., said that Laguna Beach park residents received $55,000 in rent subsidies from park owners last year.

Councilwoman Lida Lenney called her vote in favor of the ordinance “the toughest decision I’ve had to make in my five years on the council.”

But, she told mobile home owners, “even if you are one-half of 1% (of the city’s population), you are valued. You help to provide very necessary diversity in this community.”

Councilwoman Martha Collison and Mayor Neil G. Fitzpatrick voted against the ordinance, saying they are philosophically opposed to rent control.

The Laguna Beach council’s decision goes against a recent trend opposing mobile home rent control in Orange County. Earlier this year, Anaheim voters rejected a mobile home rent-control measure and Westminster voters turned down a similar law in 1988.

Currently, the Dana Pont City Council is divided on the mobile home rent-control issue. In April, the council voted 3 to 2 to spend $10,000 for a study that will help City Atty. Jerry Patterson write a rent control ordinance.