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Home My WebLink AboutO-1759 Amending Chapter 5.44 Mobile Home Park Rent Stabilization Ordinance. O 1759 ORDINANCE NO. 1759 (2026 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING CHAPTER 5.44, MOBILE HOME PARK RENT STABILIZATION ORDINANCE, TO APPLY RESTRICTIONS ON SPACE RENT INCREASE UPON TRANSFER (5.44.060(C)) TO CERTAIN EXISTING LONG-TERM LEASES AND TO REQUIRE PARK OWNERS/OPERATORS TO PROVIDE NOTICE TO TENANTS (5.44.143) WHEREAS, the City’s municipal code, Chapter 5.44 (known as the Mobile Home Rent Stabilization Ordinance [MHPRSO]), limits the maximum amount a mobile home park operator may increase space rent within a mobile home park annually and upon transfer of ownership of a mobile home; and WHEREAS, prior to July 2, 2026, long-term leases were excluded from the protections of the MHPRSO pursuant to the City’s ordinance and as previously required by state law (former Civil Code § 798.17); and WHEREAS, a change in law in 2021 (Assembly Bill 2782) allowed local agencies to remove the long-term lease exemption from their mobile home rent stabilization ordinances; and WHEREAS, on June 2, 2026, the City Council voted to adopt Ordinance No. 1757 (2026 Series), removing the long-term lease exemption from the MHPRSO, a change which went into effect on July 2, 2026; and WHEREAS, as adopted, Ordinance No. 1757 only applies to leases executed on or after July 2, 2026; and WHEREAS, residency in mobile home parks provides one of few affordable housing options within the City; and WHEREAS, unlimited space rent increases upon change in ownership of a mobile home make it more difficult for tenants in mobile home parks wishing to sell their mobile home to find buyers and/or may diminish or deprive homeowners of the investment in their mobile homes by suppressing the sales value of mobilehome units sold in place, while effectively transferring value to park owners; and WHEREAS, unlimited space rent increases upon change in ownership of a mobile home erode the supply of affordable housing options for prospective buyers by significantly increasing the overall costs to purchase and occupy a mobile home if the space rent increase upon sale or transfer is unpredictable and/or unlimited; and Docusign Envelope ID: CCC98A70-306A-8BBA-83BB-D8DA39402937 Ordinance No. 1759 (2026 Series) Page 2 O 1759 WHEREAS, the City has a substantial interest in preventing the rapid erosion of affordable housing provided by mobile home parks that results from unlimited increases of space rent upon sale or transfer of a mobilehome in place, and in protecting mobile homeowners wishing to sell their mobile homes from unlimited space rent increases upon sale that diminish or transfer the value of their investments in their units to mobilehome park owners and discourage investments in the maintenance of safe mobilehome units in the City . NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The Council hereby finds and declares the following: 1. The above recitals are true and correct and are incorporated herein by reference as the findings of the City Council. 2. The City reiterates and herein incorporates by reference its findings codified in Section 5.44.010 (Purpose and Intent) of the San Luis Obispo Municipal Code. 3. The City has received complaints from mobile home residents within the City wishing to sell their mobile homes that the park owner/operator intends to increase their space rent by two hundred percent or more and City staff have verified these claims through review of notifications of space rent increase upon sale. 4. Absent regulation by the City, tenancies exempted from the MHPRSO under Section 5.44.030 are not afforded the protection against unlimited space rent upon transfer of ownership under Section 5.44.060(C), which limits such increases to no more than ten percent (10%) of the prior space rent. 5. The City has a substantial interest in protecting and preserving the long-term availability and affordability of tenancies in mobilehome parks, and in protecting mobilehome park tenants who must sell their homes in place against the loss or significant diminution of their investments in their mobilehomes resulting from exorbitant increases in space rent upon sale or transfer of their homes. 6. The allowable increases in space rent upon transfer permitted herein are intended to and do provide landlords with reasonable returns on investment s in local mobilehome parks. 7. The Council has considered various options to advance its interests set forth herein and has determined that the Ordinance herein is narrowly tailored to advance the City’s substantial interests. SECTION 2. Chapter 5.44, Mobile Home Park Rent Stabilization, of the Municipal Code is amended by adding Subsection (F) to Section 5.44.030 as follows: 5.44.030 Exemptions. The provisions of this chapter shall not apply to the following tenancies in mobile home parks: Docusign Envelope ID: CCC98A70-306A-8BBA-83BB-D8DA39402937 Ordinance No. 1759 (2026 Series) Page 3 O 1759 A. Mobile home park spaces rented for nonresidential uses; B. Mobile home parks managed or operated by the United States Government, the state of California, or the county of San Luis Obispo; C. Tenancies which do not exceed an occupancy of twenty days and which do not contemplate an occupancy of more than twenty days; D. Tenancies for which any federal or state law or regulation specifically prohibits rent regulation; E. Spaces in a mobile home park which sells lots for factory-built or manufactured housing, or which provides condominium ownership of such lots, but only when the dwelling unit and the underlying interest in the space it is located upon are in the same ownership. F. Tenancies entered into before July 2, 2026, covered by leases or contracts that provide for a tenancy of more than one year (“long-term tenancy”), except as provided in Section 5.44.060(C). SECTION 3: Chapter 5.44, Mobile Home Park Rent Stabilization, of the Municipal Code is amended by modifying Subsection (C) of Section 5.44.060 as follows: C. The maximum monthly space rent of a tenant may be increased by the owner when there is a change of ownership affecting a mobile home. However, such increase shall not exceed ten percent of the then existing space rent and may not be relied upon any more often than once in any thirty-six-month period as the basis to increase rent. In the event of change of ownership resulting from subletting of the mobile home space as may be allowed by state law, should such become state law, then upon any such subletting the space rent may be increased up to ten percent of the then existing space rent. In the event of removal of the mobilehome from the space and termination/abandonment of the space lease, the space rent may be adjusted to fair market rent in the community. For clarity, replacement of a unit by an existing tenant who is continuing their residency within the park does not constitute removal of a mobile home for the purpose of a rent adjustment contemplated by this paragraph. Nothing in this paragraph shall preclude an adjustment as may otherwise be provided for in this chapter. Notwithstanding the exemption for long-term tenancies that existed prior to July 2, 2026, as set forth in Section 5.44.030(F), such tenancies that are subject to leases or contracts that either: 1) do not expressly address or limit the allowable increase in space rent upon sale, transfer, or any other change of ownership of the mobile home , or 2) that expressly allow increases in space rent upon sale, transfer, or any other change of ownership of the mobile home, at a rate above ten percent (10%), are subject to this Subsection (C.) SECTION 4: Chapter 5.44, Mobile Home Park Rent Stabilization, of the Municipal Code is amended by adding a new section 5.44.143 as follows: 5.44.143 Required notices by park owners Docusign Envelope ID: CCC98A70-306A-8BBA-83BB-D8DA39402937 Ordinance No. 1759 (2026 Series) Page 4 O 1759 A. Initial Notice. Prior to execution of any agreement for a tenancy within a mobile home park, the owner or operator of a mobile home park shall provide each homeowner and tenant with a copy of this Chapter. B. Notice of Amendments. Following notice by the City to a mobile home park owner or operator and within thirty (30) days of adoption of Ordinance No. 1759, or any subsequently noticed amendment to this Chapter, the owner or operator shall provide written notice of the amendment to each homeowner and tenant. Such notice shall be provided within thirty (30) days after any amendment becomes effective. C. Other Notices. Whenever directed in writing by the City, the owner or operator shall provide written notice of any matter affecting mobile home park tenants, including but not limited to a change in law or a new or amended rule, policy, regulation or land use. Such notice shall be provided within thirty (35) days of mailing of such direction by the City. D. Method of Notice. Notice as required by subsection (B) or subsection (C) shall be deemed sufficient if it is: 1. Delivered personally to the homeowner or tenant, with a proof of service; 2. Mailed by first-class mail to the address of the mobile home space, with a proof of service; 3. Electronically transmitted, if the homeowner or tenant has consented to receive notices electronically; and 4. Posted in a conspicuous location accessible to all homeowners and tenants within the mobile home park; posting shall supplement, and not replace, individual notice. E. Violation. Failure to provide any notices required in this Section within the time periods and by the methods set forth herein shall be a violation of this Chapter subject to the provisions set forth in Chapter 1.12 and Chapter 1.24. SECTION 5. Publication. Within fifteen (15) days after its passage, the city clerk shall cause a summary of this ordinance to be published at least once, with the names of those city council members voting for and against the ordinance, in a newspaper of general circulation published and circulated in the city. SECTION 6. Severability. If any provision of this Ordinance is held invalid by a court of competent jurisdiction, such provision shall be considered a separate, distinct, and independent provision and such holding shall not affect the validity and enforceability of the other provisions of this Ordinance. Docusign Envelope ID: CCC98A70-306A-8BBA-83BB-D8DA39402937 Ordinance No. 1759 (2026 Series) Page 5 O 1759 INTRODUCED on the 18th day of August, 2026, and finally ADOPTED on the 1st day of September, 2026, by the Council of the City of San Luis, on the following vote: AYES: Council Member Boswell, Marx, Shoresman, Vice Mayor Francis, and Mayor Stewart NOES: None ABSENT: None _______________________________ Mayor Erica A. Stewart ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ____________________. ______________________________ Teresa Purrington City Clerk Docusign Envelope ID: CCC98A70-306A-8BBA-83BB-D8DA39402937 9/11/2026 | 9:05 AM PDT