NEWPORT BEACH : Park Residents Sue Over Rent Increases

The residents of the Bayside Village mobile home park filed a lawsuit last week against their leaseholder to force a rollback in the hefty rent increases that went into effect last month.

The lawsuit was filed in Orange County Superior Court on Feb. 7 and accuses DeAnza Assets Inc. of Beverly Hills, the park’s leaseholder, of unfair business practices and asks the court for rent relief.

As of Jan. 1, DeAnza Assets began enforcing a park-wide rent increase of about 20%--although some of the 250 residents saw their rents go up 47% and some rents decreased about 6%.

“When we bought the place, we encouraged everybody not to pay the increase,” said Bil Gekas, a resident who has rallied residents of the seniors-only park against the leaseholder. His rent went from $1,087 per month to $1,600 on the first of the year; he is now facing eviction. “The next step is the lawsuit.”

The lawsuit is the latest move in a lengthy fight between residents of Bayside Village and DeAnza.

Last year, DeAnza first announced the rent increases that are now the subject of the lawsuit. On Dec. 28, a coalition of residents then formed a corporation and purchased the park for $11 million from the Irvine Co. right out from under DeAnza, who also wished the purchase the park.

Even though residents now own the park, DeAnza still holds a lease that expires in about 15 years and, with it, the authority to set rental rates.

When some residents refused to pay the rent increase last month, DeAnza sent out notices of intent to evict. A series of meetings ensued where residents and DeAnza came to an agreement whereby residents would pay their full rents but under protest. Despite that, DeAnza has told Gekas that he will be the only rent-striking resident to be evicted, according to Gekas and DeAnza president Barry McCabe.

No court date has been set to hear the residents’ complaints, Gekas said.