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Home My WebLink About0001-1000 Emails From: McClish, Teresa <tmcclish@slocity.org> Sent: Monday, April 14, 2025 4:32 PM To: Tway, Timothea (Timmi) <TTway@slocity.org>; Corey, Tyler <tcorey@slocity.org>; Amini, David <DAmini@slocity.org>; Symens, Sadie <ssymens@slocity.org> Subject: RE: cc Pardo - Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 We will take a look – also I think we can use Sadie weigh-in too. From: Tway, Timothea (Timmi) <TTway@slocity.org> Sent: Monday, April 14, 2025 4:30 PM To: McClish, Teresa <tmcclish@slocity.org>; Corey, Tyler <tcorey@slocity.org>; Amini, David <DAmini@slocity.org> Subject: FW: cc Pardo - Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 Hi all, We will need to provide information to council on this one, can you please take a look? Thanks! From: CityClerk <CityClerk@slocity.org> Sent: Monday, April 14, 2025 4:08 PM To: Nick Pardo < Cc: Tway, Timothea (Timmi) <TTway@slocity.org>; City_Attorney <City_Attorney@slocity.org> Subject: cc Pardo - Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 BCC: Council All Nick Pardo, 2 Thank you for taking the time to contact City Council on this topic. This is a policy related issue for the City Council’s consideration and your message has been provided directly to them. By copy on this email, it is also being shared with staff in our City Attorney’s Office and Community Development Department for their awareness. City Clerk’s Office City Administration City Clerk's Office 990 Palm Street, San Luis Obispo, CA 93401-3218 From: Nick Pardo < Sent: Monday, April 14, 2025 3:17 PM To: E-mail Council Website <emailcouncil@slocity.org> Subject: Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 This message is from an External Source. Use caution when deciding to open attachments, click links, or respond. Dear Mayor Stewart and City Council Members, Please find attached a formal petition to amend San Luis Obispo Municipal Code Title 5 Chapter 5.44, which pertains to rent control within the city, specifically as it relates to mobilehome park tenancies. The attached letter details how the current application of Section 5.44.030(E) creates an inequity for mobilehome owners and conflicts with current California state law, specifically Assembly Bill 2782 (2020), which amended California Civil Code Section 798.17. I urge the City Council to consider this petition and take swift action to amend the ordinance. Thank you for your time and consideration of this important matter. Sincerely, Nick Pardo 5 From:McClish, Teresa Sent:Tuesday, April 15, 2025 4:21 PM To:Erquiaga, Josh; Gautereaux, Gray; Wiberg, Daisy Cc:Amini, David Subject:FW: cc Pardo - Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 Attachments:Petition to revise Municipal Code 5.44.pdf FYI, please see below. From: Tway, Timothea (Timmi) <TTway@slocity.org> Sent: Monday, April 14, 2025 4:30 PM To: McClish, Teresa <tmcclish@slocity.org>; Corey, Tyler <tcorey@slocity.org>; Amini, David <DAmini@slocity.org> Subject: FW: cc Pardo - Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 Hi all, We will need to provide information to council on this one, can you please take a look? Thanks! From: CityClerk <CityClerk@slocity.org> Sent: Monday, April 14, 2025 4:08 PM To: Nick Pardo < Cc: Tway, Timothea (Timmi) <TTway@slocity.org>; City_Attorney <City_Attorney@slocity.org> Subject: cc Pardo - Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 BCC: Council All Nick Pardo, Thank you for taking the time to contact City Council on this topic. This is a policy related issue for the City Council’s consideration and your message has been provided directly to them. By copy on this email, it is also being shared with staff in our City Attorney’s Office and Community Development Department for their awareness. City Clerk’s Office City Administration City Clerk's Office 990 Palm Street, San Luis Obispo, CA 93401-3218 From: Nick Pardo < Sent: Monday, April 14, 2025 3:17 PM 6 To: E-mail Council Website <emailcouncil@slocity.org> Subject: Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 This message is from an External Source. Use caution when deciding to open attachments, click links, or respond. Dear Mayor Stewart and City Council Members, Please find attached a formal petition to amend San Luis Obispo Municipal Code Title 5 Chapter 5.44, which pertains to rent control within the city, specifically as it relates to mobilehome park tenancies. The attached letter details how the current application of Section 5.44.030(E) creates an inequity for mobilehome owners and conflicts with current California state law, specifically Assembly Bill 2782 (2020), which amended California Civil Code Section 798.17. I urge the City Council to consider this petition and take swift action to amend the ordinance. Thank you for your time and consideration of this important matter. Sincerely, Nick Pardo Nick Pardo April 14, 2025 Honorable Mayor Erica A. Stewart and City Council Members City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Subject: Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 Regarding Rent Control in Mobilehome Parks Dear Mayor Stewart and City Council Members, I am writing to petition for an amendment to San Luis Obispo Municipal Code Title 5 Chapter 5.44, which pertains to rent control within the city, speciflcally as it relates to mobilehome park tenancies. The current application of Chapter 5.44.030(E) creates a severe inequity for mobilehome owners in San Luis Obispo and necessitates immediate corrective action. The ordinance's exemption from rent control for 'tenancies covered by leases or contracts which provide for a tenancy of more than a year' confiicts with current California state law, causing signiflcant flnancial hardship and inequity for residents. Assembly Bill 2782 (2020) amended California Civil Code Section 798.17. This amendment removed the automatic exemption from local rent stabilization ordinances for long-term leases signed on or after February 13, 2020 (effective January 1, 2021) and also removed the exemption for leases signed before February 13, 2020 (Effective January 2025). This legislative change affirms that local rent control ordinances should take precedence over confiicting terms in these leases. There is a signiflcant loophole within the Mobilehome Residency Law (MRL) that allows park owners to exploit the vulnerability of individuals purchasing a home within the park. The MRL deflnes a "homeowner" as "a person who has a tenancy in a mobilehome park under a rental agreement" [§798.9]. This deflnition leaves buyers in a precarious position, as they do not yet qualify as "homeowners" until they sign the park's required lease. Park owners can leverage this gap in protection to force buyers into accepting unfavorable long-term lease agreements as a condition of residency approval, effectively circumventing the intent of the MRL to protect homeowners. Mobilehome owners, often facing limited housing options, are frequently compelled to accept "take it or leave it" long-term leases that impose rent increases far exceeding the protections afforded by Municipal Code Section 5.44. The consequences of these issues can be flnancially crippling. To illustrate the potential for harm, consider the following 20-year rent increase projections, calculated using historical Consumer Price Index (CPI) data from 2004 to 2024, and comparing San Luis Obispo city and county’s rent control scenarios to an actual long-term lease offered by a San Luis Obispo mobilehome park. For these simulations, we will assume a starting monthly space rent of $1000 (typical starting rent in 2025): • Scenario 1: SLO City Rent Control - Section 5.44 (CPI with a 5% annual cap): o Ending Monthly Rent: $1666.91 o Total Rent Paid: $314,378.88 • Scenario 2: SLO County Rent Control - Title 25 (60% of CPI): o Ending Monthly Rent: $1385.01 o Total Rent Paid: $281,702.28 • Scenario 3: Actual Offered 20-Year Lease (CPI + 2% with a 3.9% minimum and 9% annual cap): o Ending Monthly Rent: $2624.52 o Total Rent Paid: $402,801.00 The data clearly demonstrates that even under recent CPI conditions, long-term leases lead to a dramatic escalation of housing costs. Residents who have no viable alternative but to sign these leases face signiflcant long term flnancial impact, jeopardizing their housing stability and overall well-being. The signiflcant difference in both total rent paid and the flnal monthly rent underscores the urgent need for reform. Over 20 years, a typical long -term lease in this scenario would result in residents paying $88,422.12 more than under the cities actual rent control ordinance, with a flnal monthly rent that is 57.4% higher. This is the flrst opportunity under the current ordinance, for residents to gain the beneflt of San Luis Obispo's rent control provisions. By this time, the damage is done. Crucially, the fundamental problem lies in the transfer of authority over rent increases from local government to private corporations. San Luis Obispo's existing rent control ordinance in Chapter 5.44 refiects a balance between ensuring fair returns for property owners and protecting residents from excessive rent hikes. This balance is achieved through local oversight and a structure that is publicly accountable. In contrast, long -term leases empower park owners, whose primary motivation is proflt maximization, to unilaterally determine rent increases, often with formulas that far outpace the ability of residents on flxed incomes to keep pace. Furthermore, these long-term leases frequently include provisions that go beyond traditional rent increases. Park owners may pass through the costs of capital improvements or replacements to residents, often with an added interest factor. This means residents are not only paying for the improvements but also flnancing them at a rate determined by the park owner, further infiating their housing costs. While the scenarios presented illustrate potential flnancial harm, the core issue is about local control. The allowable rent increases and any additional charges should be determined by the City of San Luis Obispo, as it is for those under short-term leases under Chapter 5.44, and not by private entities. It is not necessarily that the flnal rent under Scenario 1 is the only acceptable outcome, but that the mechanism for determining fair and reasonable rent increases and related charges should reside with the city, ensuring a more equitable and sustainable outcome for residents. To align the city ordinance with current state law, I propose the following amendment to San Luis Obispo Municipal Code Title 5, Chapter 5.44.030(E): • Proposed Amendment: removal of Chapter 5.44.030(E). This amendment aligns with Assembly Bill 2782 and Civil Code 798.17, ensuring that all mobilehome park residents are afforded the protections of the city's rent control ordinance, preventing the exploitation of residents through mandatory, long-term leases and addressing the vulnerability of new homeowners during the purchase process. I urge the City Council to take swift action on this critical issue. Thank you for your time and consideration. Sincerely, Nick Pardo 11 From:Shoresman, Michelle Sent:Monday, April 14, 2025 7:39 PM To:Nick Pardo Subject:RE: Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 Thanks for the email Nick. From: Nick Pardo < Sent: Monday, April 14, 2025 3:17 PM To: E-mail Council Website <emailcouncil@slocity.org> Subject: Petition to Amend San Luis Obispo Municipal Code Title 5, Chapter 5.44 This message is from an External Source. Use caution when deciding to open attachments, click links, or respond. Dear Mayor Stewart and City Council Members, Please find attached a formal petition to amend San Luis Obispo Municipal Code Title 5 Chapter 5.44, which pertains to rent control within the city, specifically as it relates to mobilehome park tenancies. The attached letter details how the current application of Section 5.44.030(E) creates an inequity for mobilehome owners and conflicts with current California state law, specifically Assembly Bill 2782 (2020), which amended California Civil Code Section 798.17. I urge the City Council to consider this petition and take swift action to amend the ordinance. Thank you for your time and consideration of this important matter. Sincerely, Nick Pardo