The URL can be used to link to this page

Home My WebLink About2006/10/24 Item 17 CITY COUNCIL AGENDA STATEMENT ITEM NO.: MEETING DATE: /7 10/24/06 . RESOLUTION OF THE CITY COUNCIL (1) APPROPRIATING FUNDS FOR COMPREHENSIVE MOBILEHOME SERVICES; AND (2) DIRECTING STAFF TO RESEARCH THE FEASIBILITY OF ESTABLISHING A MOBILEHOME PARK REGISTRATION SYSTEM AND FEE TO ASSIST IMPLEMENTATION OF MOBILEHOME PARK REGULATIONS AND SERVICES SUBMITTED BY: ACTING COMMUNITY DEVELOPMENT DIRECTOR ITEM TITLE: REVIEWED BY: INTERIM CITY MANAGER 'If 4/STHS VOTE: YES 0 NO D BACKGROUND The City enforces a variety of regulations for mobilehome parks, and has recently increased services to address the recent challenges experienced by mobilehome residents. Funding for these activities are not eligible under existing grant revenues. General Fund appropriations are necessary to carry out the comprehensive list of services identified in this report for mobilehome residents. ENVIRONMENTAL REVIEW Not applicable. RECOMMENDATION Staff recommends that the City Council adopt the resolution approving the appropriation of $122,000 to the Services and Supplies Category of the Community Development Department's budget for Fiscal Year 2007 from the available balance of the General Fund. Further, staff recommends that the City Council direct staff to research the feasibility of establishing a mobilehome park registration system and fee to assist in the implementation of mobilehome park regulations and services. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. 17-1 PAGE 2, ITEM NO.: MEETING DATE: /1 10/24/06 DISCUSSION Chula Vista has more than 3,600 mobilehome spaces, :.vhi!=h make up approximately 5% of the City's housing stock. Housing costs for mobilehome living are often lower than comparable market rate rental units. As such, it is not uncommon to find that mobilehome parks are home to elderly, disabled or lower income working residents on a fixed income. Mobilehomes provide a unique housing arrangement, as many residents own their own coach, but rent the land space. This distinct situation puts mobilehome owners in a rare position as both homeowner and tenant. To address concerns this relationship presents, there are a number of State and local regulations that govern mobilehome parks, tenancy and closure. The City enforces a variety of regulations for mobilehome parks, and has recently increased services to address the challenges in mobilehome living. Funding for these activities are limited as they are not eligible for most grant revenues. The revenue previously anticipated to offset these costs is not eligible and will not be realized in the current fiscal year. ONE-TIME/PILOT PROGRAM EXPENSES Given recent concerns about potential displacement of mobilehome residents, the City Council has directed Community Development to respond to issues and devote resources to assisting residents. The Community Development Department initiated the following activities, but needs adequate appropriations to cover the one-time unanticipated expenses. Relocation Consultant ($12,000) Community Development staff has contracted with a third party relocation consultant to help provide a more effective safety net specifically for Jade Bay residents. Assistance is needed to determine age, income, family size to assist residents with realistic housing alternatives. Mecky Myers, a highly regarded relocation specialist, will provide these services to Jade Bay residents. Bankruptcy Attorney ($40,000) Per Council Direction, the law firm of Pyle, Sims, Duncan & Stevenson was hired to monitor the Jade Bay Mobile Lodge bankruptcy hearing process, attend hearings, and analyze the proceedings for their potential impact on the City. To date, these legal expenses have exceeded $31,000. In order to provide the same level of expertise and attendance over the upcoming months, it is estimated that the legal costs may reach $40,000. 17-2 T PAGE 3, ITEM NO.: MEETING DATE: 1'1 10/24/06 Mobilehome Ombudsman ($34,000) Community Development staff has interviewed and selected a consultant to act as the Mobilehome Liaison. This function would provide general liaison services between tenants and park owners, and help to mediate disputes rel~ting to rent increases and other issues. The selected firm Center for Social Advocacy (CSA) would also provide community education and awareness seminars on tenant/landlord rights and responsibilities, as well as develop educational literature on local and state mobilehome residency laws and rent review processes. RECURRING EXPENSES Since 1982, the City has enforced a Rent Review Ordinance found in Chula Vista Municipal Code (CYMC) 9.50. The ordinance is in place to protect mobilehome owners' investments in their home while providing a reasonable return to the park owner. The revenue previously anticipated to offset these costs is not eligible and will not be realized in the current fiscal year. Mobilehome Rent Review Third Party Consultant ($36,000) The Mobilehome Rent Review Commission requested Community Development staff hire a third party consultant to conduct a fair return analysis on the Bayscene Mobilehome Park. This analysis was conducted and provided valuable information that assisted the Commission in the August 2006 Bayscene hearing. Recently, the Mobilehome Rent Review Commission requested a third party analysis for the Brentwood Mobilehome Park, where approximately half of the park has received rent increase notices. The current allocation needed to pay for these analyses is $24,000 ($12,000 per case). Future allocations may be required, but are not known at this time. Therefare a request for appropriations to serve one additional case is recommended. Mobilehome Rent Review Staff ($90,000) Community Development and City Attorney staff enforce the City Rent Review Ordinance (CYMC 9.50) and provide support for the Mobilehome Rent Review Commission. These roles represent a significant amount of staff time. No appropriations are necessary as staff costs are already budgeted. However, the revenue previously anticipated to offset these costs is not eligible for this purpose and will not be realized in the current fiscal year, resulting in an impact to the General Fund. Additional Expenses Several other expenses incurred as a result of Council direction include: 1) developing, producing ond distributing a "Relocation Resources Guide" for residents 17-3 T PAGE 4, ITEM NO.: MEETING DATE: t1 10/24/06 displaced by mobilehome park closures, condominium conversions, etc. ($1,000); and 2) using Spanish interpreters when needed at Mobile Home Rent Review Commission meetings ($1,000). The Community DeveloP'1lent Department was able to absorb these smaller costs in the existing budget. MOBILEHOME PARK REGISTRATION SYSTEM Several jurisdictions throughout the State require mobilehome park owners to register all spaces that are regulated and non-regulated (long-term leases) under the jurisdiction's rent review/control ordinance. This registration process requires park owners to make an initial registration identifying the number of spaces within the park and provide an update annually. In addition, the annual registration would be a requirement for the park owner to be eligible for any rent increase applications. All spaces subject to the rent review process under the jurisdiction's ordinance would be subject to a registration fee payable to the City by the park owner. Exempt spaces (those on long-term leases) would require reporting but not be subject to a fee. Half of such fee (or a maximum as determined by City Council) could be permitted as a pass-through to residents [i.e. if 2,000 regulated spaces were required to pay $50 annually ($25 annually or $2.08 monthly per resident) this would generate $100,000 of funding]. Should the City Council be interested in establishing such a system, staff will research and return to the City Council with details for consideration. DECISION MAKER CONFLICTS Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(0)(1) is not applicable to this decision. FISCAL IMPACT All of the services listed in this report will create an impact to the City's General Fund. The revenue previously anticipated to offset the ongoing costs of enforcing the City's Mobilehome Rent Review Ordinance will not be available, resulting in an impact to the General Fund. In fiscal year 2007, the anticipated net impact to the General Fund is approximately $212,000, with additional appropriations being requested in the amount of $122,000. The remaining $90,000 represents a decrease in anticipated revenue for staff time reimbursements. . In fiscal year 2008, the anticipated ongoing impacts are $131,000. If established in the future, revenues from a mobilehome park registration system could offset some of the General Fund impacts 17-4 T PAGE 5, ITEM NO.: MEETING DATE: 11 10/24/06 FY 2007 FY 2008 One-Time Expenses Relocation Consultant Bankruptcy Attorney Mabilehome Ombudsman $12,000 $40,000 REQUESTED APPROPRIATIONS (A+B) $122,000 Reduced Staff Time Reimbursement Revenue Mobilehome Rent Review Staff NET GENERAL FUND IMPACT (A+B-C) $212,000 $131,000 Prepared by: Amanda Mills, Housing Manager, Community Development Department J,\COMMDEY\STAFF .REP\2006\ 10-24-06 \MOBILEHOME APPROPRIATIONS 10.24.doc 17-5 T RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) APPROPRIATING FUNDS FOR COMPREHENSIVE MOBILE HOME SERVICES; and (2) DIRECTING STAFF TO RESEARCH THE FEASIBILITY OF ESTABLISHING A . MOBILEHOME PARK REGISTRATION SYSTEM AND FEE TO ASSIST IMPLEMENTATION OF MOBILEHOME PARK REGULATIONS AND SERVICES WHEREAS, the City Of Chula Vista enforces a variety of state and local regulations for mobilehome parks; and, WHEREAS, as part of the ongoing support to mobilehome parks, the Community Development Department enforces the Mobile Rent Review Ordinance and provides support to the Mobile Home Rent Review Commission; and, WHEREAS, in response to the increasing mobilehome-living challenges, the Community Development Department has recently increased services to the mobile-home community; and, WHEREAS, the revenue previously anticipated to off-set the costs associated with these new services is not available; and, WHEREAS, the Community Development Department has insufficient funds to cover the new expenses. NOW, THEREFORE, BE IT RESOLVED that the resolution of the City Council of the City of Chula Vista does hereby authorizes the appropriation of $122,000 to the Services and Supplies Category of the 2007 Community Development Departmental Budget from the available General Fund balance to cover new and existing mobile-home services costs. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does hereby direct staff to research the feasibility of establishing a mobilehome park registration system and fee to assist in the implementation of mobilehome park regulations and services. Presented by Approved as to form by Ann Hix Acting Director of Community Development 17-6 T