LAKE FOREST : Park Tenants Ask City for $97,000 Loan

Surprised City Council members were handed a request this week for a $97,000 loan by mobile home residents wanting to purchase their park.

The council delayed action on the request until city employees have time to study and report on the loan proposal.

Last month, the mobile home tenants asked the council to co-sign a $6-million loan to purchase a 30-year lease on Kimberly Gardens mobile home park. In making their request, they emphasized that no cash would be needed from the city.

“Two weeks ago, you said there would be no cost to the city,” Councilwoman Ann Van Haun said. “Now you’re asking for $97,000. It doesn’t make sense.”

The money would be used to cover processing costs for the park loan, including land assessment, engineering and escrow fees, a representative of the residents said.

“The request you have in front of you has been (successful) in this format for many, many cities,” said Dave Mounier, who added that he has engineered similar partnerships in Vista and Rancho Mirage. “This may be the last opportunity for the residents of Kimberly Gardens to purchase their own park.”

Kimberly Gardens is a 159-space park that is home to about 1,300 residents. The park is one of four in Lake Forest involved in rent disputes with landlords.

Residents are trying to persuade the council to pass a rent control law. The council has asked them to continue negotiating with park landlords.

Council members expressed several reservations about the proposed loan.

If the tenants “are that committed to this project, why don’t they reach into their own pockets” for the $97,000, Councilman Richard Dixon said.

Mounier said that loan requirements forbid applicants from putting up the money for the preliminary costs.

Councilman Tim Link held out some hope for the park residents, saying that the loan would be a cheap way to bring more affordable housing into the city.

“On the other hand, $100,000 doesn’t even buy one unit of affordable housing,” he said.