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HomeMy WebLinkAbout6/2/2026 Item 5k, Ubaldi FW: SLO Mobile Home Park RSO From: Nick Ubaldi < Sent: Friday, May 22, 2026 9:27 AM To: Stewart, Erica A <estewart@slocity.org>; McDonald, Whitney <WMcDonal@slocity.org> Subject: SLO Mobile Home Park RSO Dear Mayor and City Manager, I am writing with urgent concern regarding the proposed amendments to the City’s mobile home park rent stabilization ordinance, specifically the elimination of the long-term leasing provision. As a long-standing business owner in both the City and County of San Luis Obispo, I strongly believe this change would be detrimental. City staff appears to be misinterpreting what AB 2782 did . That legislation removed the long-term lease exemption from state law; it did not outlaw it. The state returned full discretion to local jurisdictions. The City is not required to remove long-term leasing; the decision remains yours. Long-term leases are not a loophole, as City staff has characterized them. This is a talking point advanced by resident activists that is misleading the Council. Rather, they serve as an essential safety valve within the ordinance. They function as mutually agreed-upon rent controls that clearly establish future rent terms for both parties, allowing park owners to address rising costs the current rent structure does not fully accommodate, while continuing to protect existing residents. Without this provision, sustainable operation becomes extremely difficult and park closures are likely, further straining the region’s affordable housing supply. The current ordinance has operated successfully for over thirty years exactly as prior City Councils intended. It does not require revision. Removing the long-term leasing provision now would reverse commitments that property owners have relied upon since its adoption. South Peak provides a compelling example of its value. Ten years ago, it was a derelict property where police often refused to respond to calls. Through nearly $10 million in private investment, made possible by long-term leases, South Peak was transformed it into a clean, well-maintained community that preserves affordable housing the City might otherwise have lost. Today, ninety percent of our residents hold long-term leases, many of whom received contractual discounts at purchase of up to $35,000 per home in direct reliance on the ordinance. We do not believe the City has authority to terminate these existing, lawfully executed leases mid-term. While the City could decline new long-term leases going forward (despite the negative impact such a policy would have on the City’s affordable housing stock), canceling existing contracts would raise serious legal issues. Market space rents in San Luis Obispo average approximately $1,500 per month. Our existing tenants pay roughly $600 on average, with turnover increases capped at just $60 under the current 10% limit, while our operating costs continue to outpace CPI. We respectfully urge the City to maintain the existing ordinance, including the long-term leasing framework that has benefited both residents and the broader community for decades. I am happy to provide supporting data and am available to meet in person or via Zoom to discuss this matter further. Would you be willing to take a 30 minute meeting? -Nick 1 6653 Embarcadero Dr. Ste C Stockton, CA 95219 Main: (209) 932-8747 nick@harmonycom.com 2