LAKE FOREST : City Backs Rent Dispute Arbitration

Mobile home rent control could be imposed in the city if both landlords and tenants agree to settle their differences under binding arbitration, a proposal backed by the City Council this week.

The council agreed 4 to 1 to offer binding arbitration to both groups. Council members also decided to allow 45 days in arbitration to come up with an agreement and authorized paying up to $10,000 in arbitrator fees.

If either side rejects arbitration, at least one council member has said he wants to look into developing a rent control ordinance.

“We’re dealing with a monopoly situation here and I believe some regulation is required,” Councilman Tim Link said to a council chamber filled with senior citizens who live in the city’s four mobile home parks.

Landlords and the city’s 1,200 mobile home tenants have been locked in a dispute over rent issues for nearly two years.

If there is no arbitration, Link suggested that the city hire consultants to look into adopting a rent control law.

“I feel recent court decisions have upheld rent control” ordinances, the councilman said.

However, Councilman Richard T. Dixon flatly told the audience that he does not support rent control. He told mobile home tenants who threatened him with recall that he has “never been in favor of rent control ordinances. And if that means my job, so be it.”

Two months ago, the council had asked both sides to sit down at the negotiating table. Although several issues were resolved, frustrated tenants said there was no movement on their two main requests: rent rollbacks and rent control.

“If we don’t consider these issues . . . what’s the point” of meeting? asked Ernie Rettino, who represented the tenants. “Unless we get those items discussed, don’t meet. Let the City Council make the decision.”

Ron Hanson, owner of the El Toro Mobile Home Estates, told the council that landlords might be willing to discuss rent rollbacks and rent stabilization separately with the tenants of each park.

“The issues are all resolved except for one point: What’s an appropriate (rent) increase?” Hanson said. “If we can’t work this out (with the negotiators representing all four parks), let us work it out with individual parks.”