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HomeMy WebLinkAbout09/16/1997, 1 - MOBILEHOME RENT STABILIZATION ORDINANCE council»(� °i°°� acEnda Repo Rt It=Num6.. , CITY OF SAN LUIS OBISPO FROM: Jeffrey G.Jorgensen;City Attorney SUBJECT: Mobilehome Rent Stabilization Ordinance CAO RECOMMENDATION Consider an Amendment to the San Luis Obispo Mobilehome Rent Stabilization Ordinance Deleting a 10% Rent Increase on Change of Ownership DISCUSSION At the August 19, 1997 City Council meeting, the Council directed staff to bring back a draft ordinance which would amend the San Luis Obispo Mobilehome Rent Stabilization Ordinance by eliminating the 10% rent increase on change of ownership, and make other minor technical revisions. The proponents of the amendment argue the 10% rent increase on change of ownership provision makes it difficult to sell a mobilehome, decreases the mobilehome's value when it does sell, results in a wide variation in rents within mobilehome parks depending on the amount of turnover, and is difficult to enforce because there are no reporting requirements to the City. Opponents of the amendment argue there is no evidence to support claims that mobilehomes are difficult to sell or the selling price is substantially affected, and if the 10% increase is deleted, the owners will have no alternative but to apply for a general rent increase under other provisions of the ordinance in order to obtain a fair return on investment. In fact, some park owners have indicated their intention to apply for across-the-board rent increases if the ordinance is amended as requested. As previously discussed in the May 15, 1997 memorandum from the City Attorney, the current vacancy control provision is part of a comprehensive,balanced approach which was negotiated by a blue-ribbon committee appointed by the Council and approved by the voters. The removal of the rent increase on change of ownership provision will change the balance of the ordinance which could force a greater reliance on formal applications for rent increases (pursuant to Section 5.44.070). This would potentially generate greater conflict over rents, and ultimately may result in greater rent increases to existing tenants than might otherwise occur since rent increases would no longer be allowed to be passed on to new tenants. There is a substantial concern that if the amendment is adopted, and the park owners apply for general rent increases, there will be further requests by tenants to amend the ordinance to protect them against such rent increases (i.e., changing the formula by which rent increases are calculated, or establishing a rent review board). To the extent the City attempts to prevent the park owners from obtaining a fair return on investment, the City then becomes potentially liable for a"taking" Council Agenda Report-Mobilehome Rent Stabilization Page 2 of the park owners' property. FISCAL EWPACT There is no immediate,direct fiscal impact resulting from deletion of the rent increase on change of ownership provision. However, if the park owners apply for general rent increases, or the tenants request additional amendments, such as the creation of a rent review board, then the increased administrative and legal burden on the City may be very significant. It should be noted that there has never been an application for rent increase since the ordinance was adopted in 1988. In addition, the City .only has an indirect role in any rent adjustment hearings under the current ordinance. Changes to either of these factors could have serious workload implications. ALTERNATIVES Alternative 1: Should the Council wish to delete the 10%rent increase on change of ownership as directed at the August 19, 1997 City Council meeting, you should introduce to print the ordinance attached as Exhibit A. Alternative 2a: The Council may wish to consider some middle ground concerning the amount of rent increase which would be allowed on change of ownership. There appear to be two primary options in this regard. The first would be to limit the rent increase on change of ownership to the CPI Adjustment as set forth in 5.44.020(n. This would substantially lower the allowed rent increase on change of ownership under current economic conditions, but could result in greater increases if the inflationary pressures experienced in the past return. It would have the advantage of being linked to a standard which is related to the cost of doing business and therefore would have some rationality. A disadvantage may be the perception that it would be difficult or complex to calculate. Alternative 2b: A related alternative would be to assign a lower percentage increase than the current ordinance. This would have the advantage of simplicity. As indicated at the August 19, 1997 meeting, several California cities have a 5% limit on rent increases on change of ownership. This would probably be as good a number as any. If the increase was allowed on each change of ownership (rather than once in any 36 month period as currently provided in the ordinance) the concern about enforcement would be eliminated. While it is possible there could be greater increases than currently allowed if there were multiple turnovers, on balance, it would probably result in lesser increases overall and still allow the park owner to approximate a fair return on investment. Should the Council wish to choose some middle position, this would be staff's recommendation. Alternative 3: The Council could choose to leave the Mobilehome Rent Stabilization Ordinance as currently written. This would preserve the flexibility and balance adopted by the voters in 1988. Attachment: Ordinance ORDINANCE NO. (1997 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING CHAPTER 5.44, THE SAN LUIS OBISPO MOBILE HOME RENT STABILIZATION ORDINANCE, TO DELETE RENT INCREASES ON CHANGE OF OWNERSHIP, AND MAKE MINOR TECHNICAL CORRECTIONS. BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 5.44.010(E) of the San Luis Obispo Municipal Code is hereby amended as follows: "E. Tenants in mobile home parks desiring to sell their mobile homes may have difficulty finding buyers beeause if, upon a change of ownership, the park owner is able to raise the rent ' above the annual rent increases otherwise allowed by the Mobilehome Rent Stabilization Ordinance." SECTION 2. Section 5.44.010(F) of the San Luis Obispo Municipal Code is hereby amended as follows: "F. This council finds that it is in the best interests of the citizens of the City of San Luis Obispo to assist those who are seeking to sell their mobile homes and those who are seeking to buy such homes to have the same fair rental protection as is afforded to those who remain in their mobile homes without sale. This council further finds that provisions allowing annual rent increases together with provision allowing rent increases upon a showing of necessity protect the park owner's right to a fair return on investment, thus eliminating the need for rent increases aheve ten peFee$t upon change of ownership." SECTION 3. Section 5.44.010(G) of the San Luis Obispo Municipal Code is hereby amended as follows: "G. `Change of ownership' means the sale, rental transfer, or exchange of a mobile home subject to the provisions of this chapter, excepting the transfer to tenant's spouse by gift, bequest or devise (which shall not be considered a transfer for purposes of this ordinance)." Exki.b.i t A -3 Ordinance No. (1997 Series) Page Two SECTION 4. Section 5.44.040 of the San Luis Obispo Municipal Code is hereby deleted in its entirety. SECTION 5. Section 5.44.060(C) of the San Luis Obispo Municipal Code is hereby amended as follows: "C. The maximum monthly space rent of a tenant may not be increased by the owner when there is a change of ownership affecting a mobile home. lathe event of ehange-ef _A1 I A-MWe d-by state law, sheiffild F-;]-IP-.h hPAAMP F#R*A ]A , then Upell any sue subletting the spaee rseat may be iner-eased up te ten per-eent of the then A 9-A P-_A*_i-A-;—; ef the spaee, then the spaee rent may be adjusted to fair m—Arket- FP__;_;*_ im the . Nothing in this paragraph shall preclude an adjustment as may otherwise be provided for in this chapter." SECTION 6. The first paragraph of Section 5.44.090 of the San Luis Obispo Municipal code is hereby amended as follows: "5.44.090 In evaluating the application the eeianei I hearing officer may consider, along with all other factors it considered relevant, changes in costs to the owner attributable to increases or decreases in master land and/or facilities lease rent, utility rates, property taxes, insurance, advertising, variable mortgage interest rates, employee costs, normal repair and maintenance, and other considerations, including, but not limited to, rehabilitation work, capital improvements, upgrading and addition of amenities or services, net operating income, and the level of rent necessary to permit a just and reasonable return on the owner's property." SECTION 7. A summary of this ordinance, together with the names of council members voting for and against, shall be published at least five (5) days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. Ordinance No. (1997 Series) Page Three Introduced and passed to print by the Council of the city of San Luis Obispo at its meeting held on the day of September, 1997, on motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: Mayor ATTEST: City Clerk APPROVED: City Attorney ORDINANCE NO. (1997 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING CHAPTER 5.44, THE SAN LUIS OBISPO MOBILE HOME RENT STABILIZATION ORDINANCE, TO DELETE RENT INCREASES ON CHANGE OF OWNERSHIP, AND MAKE MINOR TECHNICAL CORRECTIONS. BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 5.44.010(E) of the San Luis Obispo Municipal Code is hereby amended as follows: "E. Tenants in mobile home parks desiring to sell their mobile homes may have difficulty finding buyers if, upon a change of ownership, the park owner is able to raise the rent above the annual rent increases otherwise allowed by the Mobilehome Rent Stabilization Ordinance." SECTION 2. Section 5.44.010(F) of the San Luis Obispo Municipal Code is hereby amended as follows: "F. This council finds that it is in the best interests of the citizens of the City of San Luis Obispo to assist those who are seeking to sell their mobile homes and those who are seeking to buy such homes to have the same fair rental protection as is afforded to those who remain in their mobile homes without sale. This council further finds that provisions allowing annual rent increases together with provision allowing rent increases upon a showing of necessity protect the park owner's right to a fair return on investment, thus eliminating the need for rent increases upon change of ownership." SECTION 3. Section 5.44.010(G) of the San Luis Obispo Municipal Code is hereby amended as follows: "G. `Change of ownership' means the sale, rental transfer, or exchange of a mobile home subject to the provisions of this chapter, excepting the transfer to tenant's spouse by gift, bequest or devise (which shall not be considered a transfer for purposes of this ordinance)." SECTION 4. Section 5.44.040 of the San Luis Obispo Municipal Code is hereby deleted in its entirety. SECTION 5. Section 5.44.060(C) of the San Luis Obispo Municipal Code is hereby amended as follows: Ordinance No. (1997 Series) Page Two "C. The maximum monthly space rent of a tenant may not be increased by the owner when there is a change of ownership affecting a mobile home. Nothing in this paragraph shall preclude an adjustment as may otherwise be provided for in this chapter." SECTION 6. The first paragraph of Section 5.44.090 of the San Luis Obispo Municipal code is hereby amended as follows: "5.44.090 In evaluating the application the hearing officer may consider, along with all other factors considered relevant, changes in costs to the owner attributable to increases or decreases in master land and/or facilities lease rent, utility rates, property taxes, insurance, advertising, variable mortgage interest rates, employee costs, normal repair and maintenance, and other considerations, including, but not limited to, rehabilitation work, capital improvements, upgrading and addition of amenities or services, net operating income, and the level of rent necessary to permit a just and reasonable return on the owner's property." SECTION 7. A summary of this ordinance, together with the names of council members voting for and against, shall be published at least five (5) days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at its meeting held on the day of September, 1997, on motion of seconded by . and on the following roll call vote: . • 1 \ - Ordinance No: (1997 Series) Page Three . AYES: NOES: - ABSENT .. Mayor ATTEST: City Clerk APPROVED: ' Z/ LJ "�EETIN � 6_9?AGENDA ` _ATE ITEM # ff'>UNCIL O CDD DIR ❑ FIN DIR D'AGAO ❑ FIRE CHIEF GCJ�vt� tYru.;L� r ORP7EY ❑ PW DIR JJJJJ �// A ❑ h GMT TEAM ❑ REIR D RCHF o ❑ RECUTIL DIR ❑ PERS DIR J�rtr oS��'liitlt�t RGUIVED SEP 1 2 1997 t�Icii2o��ccn-LC' ��5�v� SLO CITY COUNCIL �CfJi/� 141rrutcv�z�t�Lai�s+��s-eca.��`rs/c�rzicL�a�-z �Jyz�t��j c�Los.�— . 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Guc.e— 49 `�LLCliiiL2�'77i=2/ Cie Q oY MEET AGENDA �ATE IN`s /6 9? f ITEM # / - i rec4ide Mohilehome Community 3960 SOUTH HIGUERA • SAN Luis OBISPO • CALIFORNIA 93401 • PHONE 805/543-7113 Dear Resident, September 8, 1997 Thursday September 11 1997 7:00pm Community meeting with General Manager Paul Dylewski On August 19, 1997 the City council, at the request of less than 2% of the mobilehome residents of San Luis Obispo, considered removing the provision of the Rent Control Ordinance that allows for a 10% rent increase on resale of a mobilehome. Should the City Council proceed with this action it may have a profound impact on mobilehome park communities. Enclosed you will find a letter from an attorney representing several parkowners in own out ining the parkowners' position on the issues involved. You are invited to review this letter as these-latest-even t- atestevents may impact park owners and residents alike. I will be in the Park from 10:00am to 4:00pm on Thursday, September 111h to discuss these and other issues. If you would like to discuss these issues privately please drop by the park office during those hours as I would be happy to meet with you individually. We will convene a park-wide meeting for all residents that evening at 7:00pm. Please plan to attend and have your voice heard. :9CLERKIORIG ❑ CDD DIR Paul J. Dylewski ❑ FIN DIR General Manager AC( ❑ FIRE CHIEF ❑ PW DIR ❑ POLICE CHF❑ REC DIR❑ UTIL DIR ❑ PERS DIR ESEP ED 997UNCIL J ANTHONY C.RODRIGUEZ • - XTTORMEY AT LAW 1700 CLAY STREET $IJITE COO gAl([a�il.CALIFORMA Vy!12 TELEP340-N2(510)4Ga902.2 IIIA FACSIMILE AND FEDERAL EXPRESS (805) 781-7109 Aagust 13, 1997 City Council, City of San Luis Obispo 990 Palm Street pan Luis Obispo, California 93401 Re: Proposed Amendments To Rent Control Ordinance Pear Council Members: I am an attorney specializing in legal issues involving mopileh�xme paFics- One bf my particular areas of expertise is litigation involving mot ilehc,.aac: rent control lordinances. I have been asked to represent several parkowners in;San.Lais Obispo W.1 irespect to the proposed amendments to the San Luis Obispo rent cort�ol oidimAlce. Specifically, I have been asked to advise the Council of the tollow:ng lrcgal issues regarding both the current ordinance and the proposed amendments: 1.) VACANCY CONTROL: There is admittedly a great deal of Si.19�P(aii;td regarding the legality of vacancy control throughout California. For exs;nple, a.Uo'ug'.z the United States Supreme Court has found that vacancy control. does :lot covstkute a "physical taking" of property, the high court has never detern�Ynea `r,?tc:ther: !Tad: irc� ieontrol results in a "regulatory taking". Yee v. City of Escondido (19921) 543 U.S. 519. If the City eliminates the current 10% increases allowable ol1ow;Dg a hirrover u).. tenancy, the parkowners intend to challenge that amendment n the P;.-ound. ..Jiat: it results in a "regulatory" taking. 2.) NO INCREASE IN AFFORDABLE HOUSING: InfVa�l rai.sa Associates v. City of Cotati, 97 Daily Journal A.A.R. 9336, the court fou d a rcgutatcry mkLig would exist if rent control resulted in fewer affordable housing uptts, radler th n. more. Although the evidence has not been fully developed in San Luis Obispo, it s obvious that rent control has not resulted in an increase in mobilehome space: in d olll, city. Again, if the Council adopts the proposed amendments, my clients intend tc cb.ai engpe the very existence of rent control in San Luis Obispo under the V casc. (+ouncil Members August 13, 1997 Wage 2 3.) "PASS THROUGH" OF CAPITAL IMRPOVEMENTS: In Sierra Lake eservc v. City of Rocklin. (1991) 938 F. 2d. 951, the Ninth Cit'cuit Court of Appeal fuled that a rent control ordinaince must not only allow the p4ss-through of capital improvements, it must allow parkowners to. recover a fair retum on their capital expenditures. Because parkowners have a constitutional right to pass through capital expenditures it is obvious that any attempt to allow tenants to veto those pass throughs Violates the Sierra Lake case. If the proposed amendments to the;San Luis Obispo rent t ontrol ordinance are adopted, the parkowners also intend to file; an action against the City under the Sierra Lake case. 4.) FAIR RETURN ON INVESTMENT: Regardless of how the City Council responds to the proposed amendments to the ordinance, it is clear that the City cannot prohibit the parkowners from earning a fair return on their investments. If the City Council elimuiates still another source of income for the parkowners, each and every no of my clients intends to apply for any and all rent increases aecessary to receive a air return on investment. Although some of my clients are still accumulating the nformation necessary to apply for a fair return, a preliminary analysis demonstrates at the following parkowners require at least the following rent increases in order to -eceive a fair return on investment: INCREASES PER PARK SPACES SPACE PER MONTH Laguna Lake 300 $77.48 Silver City 297 $89.78 Creekside 215 $69,62 Willow Creek 82 $74.70 Oceanaire 67 $84.52 In the past, most of the parkowners have been.willing to-accept less than a fair return in order to avoid litigation with the City and the tetiants regarding rents. Although the parkowners must keep all of their options open,! at least some of the 'parkowners remain willing to forgo applying for a fair return at this time if the proposed amendments are rejected. CONCLUSION: By enacting rent control the City of San Luis Obispo has not only lowered the parkowners' profits, it has taken money they could have used to support their own families and loved ones and given it directly to;the tenants, Although there is a growing tide of legal opinion against any law that requires one group of private citizens to subsidize another group of private citizens, in the past the �Iouncil Members Pugust 13, 1997 age 3 arkowners have tried to live with the current ordinance, ratheF than pursuing their tights in court. Unfortunately, the tenants in the San Luis Obispo mobijehome parks are not atisfied with the tens of thousands of dollars in rent subsidies the already receive each 'ear from my clients. Instead, they are now asking for a further reduction in the arkowners' profits, including full vacancy control. If the proposed amendments are adopted the parkowner� will have no choice bther than to pursue all of the above legal remedies. My cl'ents request the City iCouncil not to view this proposed litigation as a "threat," but a a logical response to khe further erosion of their investments. • In order to avo'd a full scale legal confrontation between the park-owners, the City and the tenants, ty clients respectfully request that the proposed amendments be rejected. Very truly yours, �• i��a.cX�, Anthony C. Rodriguez Icc: David Evans ATTORNEY AT L.IIv 1300 CLAY STRICICT . / SUITE 600 OAKLAND.CALIFORNIA 03014 MEETING AGENDA ... TKT.EI'IIDX6�6101,64.604f! DATE�,'�L/9 7 ITEM # September 15, 1997 Jeffrey G. Jorgensen, Esq. ' I ity Attorney, City of San Luis Obispo 990 Palm Street an Luis Obispo, California 94301-3294 Re: Vacancy Control/Regulatory Taking ear Mr. Jorgensen, This.office represents the owners of several mobilehome packs in San Luis Obispo. My c lents have authorized the filing of a lawsuit challenging the City Concil's decision to implement i 11 vacancy control for all mobilehome spaces within the San Luis,Obispo City limits. Please a vise whether a transcript or a tape recording of the City Council's most recent meeting on this bject is available. In addition, please advise whether you are authorized to accept service of my rc ients' lawsuit on behalf of the City. Thank you for your anticipated cooperation in this regard. Very truly yours, Anthony C. Rodriguez S41 AOUNAIJORGENSN.LTR RECEIVED ❑ LS;: , ❑CDD DIR c °� ❑FIN DIR SEP 1 g 1997 '',1 ❑FIRE C'::- ❑ATfOflNEY ❑PW DIR SLO OI-��, ❑• tRKIORIG ❑POLICE CN.- CLERK 0 MGM TAM ❑REC DIR ply ❑UTIL DIR ❑ ❑PERS DIR ZO .d - POO.2 ANTHONY C.RODRIGUEZ i ATTORNEY AT LAN' 1300 CLAY STREET SUITE 600 OAKLAND.CAI.IFOr2A'IA 9{012 TETAPHONL•t010)40"022 September 15, 1997 ;+ Bonnie Gawf. City Clerk, City of San Lui Obispo 990 Palm Street San Luis Obispo, Californiai94301-3294 ' f Re: Silver City Mobilehome Park Dear Ms. Gawf, This office represent,; the owners of Silver City Mobilehome Park. My clients intend t file for a rent increase of a� least $89.78 per month, pursuant to the City's rent stabilizatio ordinance. Accordingly, please forward this office the following documents: 1.) A certified copy of the rent stabilization ordinance, including any and all an endments to the ordinance; 2.) A certified copy of any regulations that may have been enacted regarding imp ementation of the ordinance; 3.) Any and 11 forms the City has developed either for filing an application or mfor objecting to an application. Thank you for your aiticipated cooperation in this regard. If you have any question 71 regarding this subject please do not hesitate to call. is ;i • .t Very truly yours, Anthony g C. Rodriguez cc: Jeffrey G. Jorgensen, Esq. City Attorney, City o San Luis Obispo 54a AGUNAICLERKILTR • :i P. 03: ANTHONY C.RODRIGUEZ ATTORNEY AT L.A« 1300 CLAY 6TRERT ; ' SUITE 600 .. OAKLAND.CALIFORNIA 949in j TELEPRONE 010i9i-80x7 ' September 15,. 1997 Bonnie Gawf City Clerk, City of San Luis Obispo 990 Palm Street San Luis Obispo, California 4301-3294 Re: Oceanaire Mo ilehome Park j: Dear Ms. Gawf, ' i This office represents a owners of Oceanaire Mobilehome Park. My clients intend to fil for a rent increase of at least 84.52 per space, pursuant to the City's rent stabilization ordinance Accordingly, please forwar this office the following documents: 1.) A certifie copy of the rent stabilization ordinance, including any and all an endments to the ordinance; i . 2.) A certified copy of any regulations that may have been enacted regarding imp ementation of the ordinance; 3.) Any and 11 forms the City has developed either for filing an application orifor objecting to an application. i Thank you for your anticipated cooperation in this regard. If you have any question regarding this subject please do not hesitate to call. Very truly yours, C. " Anthony C. Rodriguez cc: Jeffrey G. Jorgensen,. Esq. City Attorney, City of San Luis Obispo S:A.AGUNAICLEB1C6.LT1 i i ii i• P. 04 ANTHONY C.RODRIGUEZ ATTORNEY AT"W 1300 CLAY BTRZOT ; : su1TE 600 OAXL a.1D.CALIFORNIA 04012 TELSPRON£(370)4134-9002 II September 15, 1997 Bonnie Gawf City Clerk, City of San Lu' Obispo 990 Palm Street San Luis Obispo, Califbmi 94301-3294 Re: Lagmuna Lace Mobilehome Park ' Dear Ms. Gawf, This office represen s the owners of Laguna Lake Mobilehome Park. My clients intend to file for a rent increase of at least $77.48 per space, pursuant to the City's rent stabilizati(n ordinance. Accordingly, pease forward this office the following documents: 1.) A certified copy of the rent stabilization ordinance, including any and all amendments to the ordinance; 2.) A certift d copy of any regulations that may have been enacted regarding im lementation of the ordinance; 3.) Any and all forms the City has developed either for filing an application o for objecting to an application. Thank you for your anticipated cooperation in this regard. If you have any questiox s regarding this subject pleas do not hesitate to call. Very truly yours, Anthony C. Rodriguez cc: Jeffrey G. Jorgense , Esq. + Ciry Attorney, City f San Luis Obispo 541LACUN•ICLER OXM • .I •..r P. 05 . ANTHONY C. RODRIGUEZ ATT0Fa ZY AT LAZY 1800 CLAY BTFEET SUITE 600 OAKLAND.CA1.I70HNIA 04013 TELEPHONE,61a 6G3•9022 September 15, 1997 i Bonnie Gawf City Clerk, City of San Luis Obispo 990 Palm Street San Luis Obispo, California 94301-3294 Re: Willow Creek Mobilehome Park ii Dear Ms. Gawf, This office representS the owners of Willow Creek Mobilehome Park. My clients inten to file for a tent increase of at least $74.70 per space, pursuant to the City's rent stabilizatio ordinance. Accordingly, please forward this office the following documents: 1.) A certified copy of the rent stabilization ordinance, including any and all atndments to the ordinance; is 2.) A certified copy of any regulations that may have been enacted regarding implementation of the ordinance; 3.) Any and �11forms the City has developed either for filing an application or for objecting to an application. Thank you for your ticipated cooperation in this regard. If you have any question regarding this subject please do not hesitate to call. Very truly yours, Anthony C. Rodriguez cc: Jeffrey G. Jorgensen Esq. City Attorney, City f San Luis Obispo SNLACUNAKLEUS.LTR ' 1 Vi P.6 6�, is ANTHONY Q RODRIGUEZ ATTORNEY AT LAW 1300 CLAY STREET li S WTE 600 ; OAHLA".CALIFORNIA 04OLZ TEL.F.PHONL^+6301 49,6800a September 15, 1997 Bonnie Gawf City Clerk, City of San Lu s Obispo 990 Palm Street San Luis Obispo, Californi 94301-3294 i Re: Creekside obilehome Park Dear Ms. Gawf, Thisoffice representls the owners of Creekside Mobilehome Park. My clients intend to e for a rent increase of at least $69.62 per space, pursuant to the City's rent stabilization ordinan e. Accordingly, please forward this office the following documents: 1.) A certif ed copy of the rent stabilization ordinance, including any and all Imendments to the ordinance; 2.) A certifi d copy of any regulations that may have been enacted regarding nn lementation of the ordinance; 3.) Any an all forms the City has developed either for filing an application or for objecting to an application. Thank you for youl for cooperation in this regard. If you have any questiols regarding this subject please' do not hesitate to call. Very truly yours, Anthony C. Rodriguezt� cc: Ieffrey G. Jorgense , Esq. s City Attorney, City of San Luis Obispo 5+MOUNAICLERK4.LTR i ii MEETIV AGENDA DATE '��-9`7 ITEM # , Gree4ide Mabilehome Community 3960 SOUTH HIGUERA • SAN Luis OBISPO • CALIFORNIA 93401 • PHONE 805/543-7113 Dear Resident, July 25,1997 It has come to our attention that a few resident activists have delivered a communication to residents challenging the fairness of the City Rent Stabilization Ordinance. Obviously, we do not feel the authors are representing your best interest as they pursue agendas that are harmful to the park, the city,and everyone concerned. We do not feel they represent the feelings of Creekside residents as we firmly believe most residents are quite happy with the park. In fact, the only difficulties or disputes we ever see always involve these few people. We must ask, Why does this go on? Why do they continue the harassment? We are sorry for the tone of this letter, however, understand that we have endured vear after year of constant contention, attacks, trips to City Hall, and considerable wasting of time, money, and resources that could definitely have been put to better use. We are at the point where enough is enough,and we must now challenge these recent efforts very aggressively. The authors claim we have a"team' of lawyers-this is entirely false. We have never hired an attorney for any resident matter since the ordinance was adopted and the residents chose to sign the lease. However, due to the constant threat to our business we have hired an attorney as we find it necessary to go to the City rent review process to pursue issues of"air return on investment." This could result in a_n across-the-board increase on all spaces not under lease. Ask yourselves if you want these activist opinions putting you personally at risk?,We will no longer watch passively as a tiny misguided group attempts to destroy the stability of the lyase and III(! partnership between us it represents. The Park office has a full detailed written response to the authors'"Points To Prove the IU o Rent Increase Should Be Banished." We encourage all residents interested in the truth to read the response. We hombv encourage all residents to write to the Mayor and City Council expressing your honest opinions of your expenence at the park. Let the Council know these people do not represent your interests and expose their gross misunderstandings. Save your elected officials the time of dealing with this nonsense. Let them know you believe the ordinance,as originally passed by the voters in 1988, is fair to all concerned parties, has functioned without detriment to anyone, and has kept the city out of harms way. Quite simply,leave it alone! It is time to end this unnecessary negative posturing and utilize the Homeowners Association for positive action for the community instead of the pursuit of a few individuals'agenda and aspirations. Weare convinced you are not aware of your association's actions. We hope to see you,the residents, put an end to this misguided use of this important representative group. We would be happy to meet with interested residents to discuss creating-in alternative resident group-one in which you will actually participate. There are positive thinks that can be dune given a resident association willing to work with management. We simply want to continue to honor the commitments of our lease in fairness to all residents of Creekside. Don't let a few misdirected people place your security in jeopardy. We truly believe a rational thou this issue can and will prevail. Again, please write to the city and put an end to this waste. C�l1NCIL it' Cl :':r? Creekside Mobilehonic Community ' ORNEY f�'i' ';i• CLERKfORIG C1 _ 0 MGMT TEAM ner 1 R CEIVED P J. Dylc-.vski, G� eral Mn aager Edwin J. Eva - SEP 1 2 1997 SLO CIT` COUNCIL Creekside REBUTTAL Discussion of authors' "Points to Prove the 10% Rent Increase Should Be Banished"... Consider this a position paper of sorts with the intention of countering the patently false accusations, the outright lies, the gross misunderstandings and the obvious irrelevance of the 10 items (ideas?)given residents for writing to the city council. We would, frankly, be embarrassed to use these items as intelligent reasons the Council should consider removing the 10%rent increase on resale provisions of the rent control ordinance. As you will see, the substance behind these "points" is dreadfully lacking in merit. Each of the 10 points will be restated with rebuttal comments to follow. Thank you for taking the time to read this. We are convinced a rational, intelligent conclusion will prevail. 1. "Rents NEVER drop in Mobilehome Parks, regardless of a slump in the economy which may cause falling rents in other sectors." The rents in a rent-controlled district are controlled by the CPI index. This is a chosen legal barometer of economic activity and general prices in given geographic markets. The San Luis Obispo(SLO)ordinance uses the CPI Index to control increases in rents as they are indexed for inflation from the base year. The ordinance also only allows for 75%of the increase above 5%, as well as, indexing both up and down. If the CPI Index ever were to go down so would the rents! To assume a"slump"in the economy necessarily translates into lower rents is false logic and poor economics. Do the authors have proof of failing rents in other sectors? Do they have proof of falling rents in SLO? We don't think so. Rent levels in SLO are some of the highest in the st4tte... ex t f mobilehome residents! &Arc. o.�e r 7 o(I qr _ Mobilehome park rents in SLO are 20-30%below comparable rents in the statet -SLO is generally expensive place to live. At the same time rents are kept low the goods and services needed to operate the park cost more in SLO than in metro southern California. To assume already lower than average rents can support higher than average expenses is faulty. „!••. y r e Ac. P ,: 2 The ordinance adopted the CPI Index because almost every other ordinance in the state uses it to control ' rent increases. It is the CPI Index that causes rents to go up or down, not the park owners. If the CPI Index declined from one year to the next.the rents would decrease accordingly, tin I if the re is w c too high because they''never drop"wouldn't there be vacancies in mobilehome par'Ks? ouldn't parlac brs °�,i'osmg' rental income because their renis are too high? The home sales data for the park strongly proves the exact opposite of the authors' conclusion-they are quite simply wrong! Why would 45 people buy into Creeksidc over the last couple years if the rents were too high? Surely, there arc other housing options far less expensive. 2. "Stated purpose of the ordinance is protecting mobilehome owners from unreasonable rent increases. The ordinance does not do that. Rents are on an endless upward spiral, accelerating with larger rent increases after each resale, making a home unsaleable. Some homeowners have even abandoned their home from desperation." This effort at logic is frightening. The stated purpose of the ordinance is also to provide a fair return on investment to the owner of the business. The ordinance is designed specifically to take both parties rights into consideration. Do the authors provide evidence that the ordinance is NOT doing its job? And, what kind of evidence would prove this? Or maybe, this is a subjective statement of emotion not based on fact. Rents are on the same upward spiral as the CPI Index-the same economy we all live within. Is there some reason mobilehome owners should receive a special exemption from the American economv? 2 Dear Resident, July 25, 1997 The following are additional comments that were not included in the letter dated July 25, 1997 sent to all residents of the park. These comments are equally important but were left out of the letter you received in an effort to keep the first correspondence to one page. Please consider the following. This small group of activistshave for years misunderstood the purpose, intent and function of the ordinance. They have sustained themselves on gross misunderstandings of established case law and don't hesitate to broadcast this through correspondence such as'their"Points To Prove the 10%Rent Increase Should Be Banished." For example, stating that pass-throughs are illegal is simply incorrect as this is firmly established by existing case law; to suggest a city can not be sued over changes to the ordinance is dangerous and ignorant -cities across the country are being sued over the mere existence of rent control; and stating that rent control is a necessity begs the question of why it isn't law in every city in the nation. The authors pay no mind to the history of the ordinance-that it was negotiated for over one year at great effort by a committee of homeowners and park owners representing nearly every park in SLO, that it was voted into law by the citizens of SLO,that it has functioned without cost or detriment to the city or homeowners for almost 10 years, and that the Creekside lease is guaranteed assurances of future operations and the stability of the community. Since the enactment of the ordinance, certain elements have been on personal crusades to flex political muscle, to ignore the voters of the city and perpetuate their own version of rent controls founded in a gross misunderstanding of economic logic, business realities and existing mobilehome law. The authors of the letter are simply stirring up trouble. To think they are furthering some cause or fighting against gross injustice simply isn't true. We are compelled to respond to the untruths, errors in judgment, and outright lies contained in their correspondence. The basis of the request to remove the 10%increase on resale is completely lacking in logic, has no economic or factual data supporting it(the data in fact, refutes their conclusions,) is based on certain lies and,in many cases the arguments are totally irrelevant to the issue they've raised. Most of the arguments are fraught with emotion and lacking in any facts or figures to support the emotional and subjective conclusions -4 of the 10 points are untrue and 5 of them are completely irrelevant to their topic. Ask yourself,are they proving why the 10% rent increase should be banished? We think not. Let's not be fooled by this veiled attempt at emotional coercion. How many of you non-lease residents who signed the rent reduction application realize your"representatives" have challenged Creekside under the California Civil Code? Do you know the Civil Code provides for.recovery of our legal fees should we prevail? Do you understand their effort hopes to recover approximately 14t of inflation on pass-throughs since 1994 -costs/pass throughs reviewed each year by the city staff and deemed correctly calculated and applied? In so doing they've put each of you at personal risk for attorneys fees incurred in our defense. (The 80+%who are on the lease are in no way affected by this.). The Park office has our response to the city regarding this action and we suggest you read it carefully. We have been informed by the city attorney we are legally correct on each issue. Do you really want these people leading you into a poorly thought-out effort that could leave you liable for thousands of dollars i,nL,legal fees? Next time you are asked to sign your name to something please think twice. (��Y 46c;&1161 f l,1 Q ,r I n y"ti � o y'C f o h o a 4- Please review the Rebuttal document that follows. P 41EETING AGENDA SATE 24-1 ITEM # September 11, 1997 MEMORANDUM LINCIL 13 CDD DIR [13 C 0 ❑ FIN DIR CAO ❑ FIRE CHIEF TO: Council Colleagues yy��ORNEY 13 PW DIR 'LERKIORIG [3 POLICE CHF RIGMT TEAM 13REC DIR FROM: Council Member Dodie Williams ' 13UTIL DIR AdAzLZ ❑ PERS DIR SUBJECT: Council Action re Mobile Home Rent Stabilization Regarding the August 19"'meeting, I am convinced the Council has taken the first step toward setting itself up as a rent review board to respond to the wishes of a vocal group of mobile home park residents. During the hearing, a number of residents who were satisfied with current ordinance provisions and objected to the requested change, addressed the Council and expressed their views. But it seemed that one group in particular had the ear of the Council. It's interesting that Creekside, the one park with an excellent lease and where many residents not on the lease are actually paying higher monthly rent, is where the greatest outcry occurs. The compromise ordinance which was passed in 1988 by City residents had several features built in to protect residents. Over the years a very vocal group has worked successfully to remove those features and undermine the ordinance. This latest effort to delete the 10% increase on change of ownership, if we acquiesce, will trigger immediate requests for rent increases from park owners. In my view, it will result in higher rents for the very people who led the charge. Remember that the 10% increase affects only new residents who know the rental amount coming in. As for the charge that it drives home sales down, one only has to look at current sales numbers to see the flaw there. Sales are up in every park. It is my opinion that we could reduce the 10%to a lesser amount, extend the term from 36 to 60 months, or some combination of both. To remove entirely the ability to raise rent on change of ownership is the issue which will trigger new requests for increases. It is also apparent that the activist group will petition the Council to deny any park owner requested increases. This scenario has major implication for both staff and Council in that it will require significant staff time and sets the stage for contentious Council hearings as well as potential litigation.. In closing, it seems a shame to undo the efforts of a large group of citizens who worked for months on an ordinance that didn't satisfy any one faction, but did include something for everyone. It has served us well. °°EETIN AGENDA aATE - 6"97 ITEM # council mcmoRAnbum IR'CA0 1:1 FIN DIR September 8, 1997 mac ao ❑FIRE CHIEF D�TTORNEY O PW DIR HCLERKIORIG ❑POLICE CHF TO: City CouncilPL-M. � O UTIL DIR �� FROM: John Dunn, City AdministratiO O PERS DIR ve Office SUBJECT: Possible Implication to a e Mobile Home Rent Stabilization Ordinance The purpose of this memo is not to deal with the substance or content of the mobile home matter before you as the City Attorney has done that in his memo. Rather, my purpose is to point out some potential ramifications or implications to a change in the present ordinance. As you know, matters relating to mobile home parks are under the control of the State of California, Department of Housing and Community Development. To my knowledge, the only area of potential city regulation,which the City has exercised, is in the area of mobile home rent stabilization. What the city desires in this arena is self-evident, an ordinance that accomplishes its purpose and, to the degree humanly possible, is fair and considerate of both mobile home park tenants and owners. As set forth in the City Attorney's memo, and as some of you will intimately recall, the City went through an extraordinary exercise in 1988, bringing the two parties of interest together, having them work out an agreement, which was then placed on the ballot and overwhelmingly ratified by the City's voters. As a result,we have an ordinance which, perhaps in the minds of most,has worked well in that it has created relative peace, has discouraged overly adversarial stances, and has not unduly strained City resources by having the City act as a mediator, peacemaker, fact-finder, record- keeper, etc. My concern is that changes to the existing ordinance, with the potential reactions and counter- reactions, may destroy the delicate balance which was created by the 1988 process. If this were to happen,whether through intent of the parties or inadvertently, then there is the danger that the Council would be drawn into the fray as the rent review board or the Council would designate a separate rent review board. In either event, either body would be taking on a significant and difficult and often-times contentious role, and would require significant staff assistance to do this job. Wendy, Ken and I have spent some time discussing this matter and have concluded that the CAO's office can not take on this responsibility under present circumstances. To do so would mean that our present overall management-of-the-city responsibilities would have to be changed, either getting rid of or short-changing some functions, or that new staffing, permanent or contractual, would have to be provided. Even with the additional staffing, the workload of the office would be significantly changed, as the need for supervision, policy clarification, dispute resolution, handling "wild fires" etc. would present situations which would have to be dealt with immediately. In fact, staffing a rent review board would pose a workload issue in any department, and added staffing would be needed regardless of organizational location. It is not our present purpose to say that the City Council should not change the existing ordinance. That is your proper role and judgment. It is my role to point out that this is a situation ripe with the potential for "unintended consequences", that these consequences will have to be dealt with and that, for someone (if not many) that process is very time and labor intensive. A new police officer is instructed that one of his most potentially dangerous assignments is getting caught in the middle of a domestic dispute. In a similar fashion, even if the City were to increase its role in this "fairness/peacemaking" function, that in itself presents no guarantee that the situation will either be improved or that the parties to the dispute will be satisfied with the results. A little bit of history may be helpful (there are others who were around at that time and, therefore, could do a better job of describing this). Approximately fifteen to twenty years ago, the City Council created a Mobile Home Rent Control Board. After some years of hard work accompanied by much contentiousness, the Council eventually disbanded the Board. At about that same time, the Human Relations Commission had its own staff, separate from the City. About ten to twelve years ago, the HRC staff had been integrated into City staff, however the CAD's office had a staff member who worked full time on HRC/mobile home rent control matters. The main thing this brief history teaches me is that"there is no free lunch." If the city, by plan or inadvertently, is drawn more closely into matters of dispute between the mobile home park tenants and owners, there is definitely a consequence to the City Council (how you spend your time) and to the staff(adequacy of staff resources and when they are assigned). In conclusion, and in reiteration, it is not my role to presume the proper course of action on this matter. Like you, I can only guess and speculate as to "what might happen" if you take one course versus another. It is my role to remind you that the City has been down a certain road before, with consequences unrewarding to all parties. Mostly, I wanted to state my concern that there are potential "unanticipated consequences" which we should keep in the backs of our mind as we contemplate changes to the nine-year-old ordinance, and as we potentially create a more activist role for the City in this arena. COUNCIL ❑ CDD DIR 6—�—I ` ^O 13 FIN DIR :EYING _ AGEII �'.:, 11FIRE CHIEF ATEITEM #_,,. "cY 13 PW DIR 13 POLICE CHF 13Mu-*T TEAM ❑ REC DIR Dear Council Memb ,13 _ [3UTIL DIR E3 PERS DIR We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent Control Ordinance that was approved in the General Election of 1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affect everyone who rents or owns a mobile home in this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. Thank you, —2� f� 'G�I e4 Lei'i o co ci RECEIVED 1 6 1997 SLO CITY COUNCIL v n. BERRY C N��sU r�1 r -, J. Ili ✓r C'� v i \-77 1 Dear Council Members, We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent Control Ordinance that was approved in the General Election of 1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affect everyone who rents or owns a mobile home in this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. Thank you, 5-ARAID R o3 1 N �►�,D�R 7 �C M(+(LTHA `, SI EV IVS. t �k Dear Council Members, We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent Control Ordinance that was approved in the General Election of 1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affect everyone who rents or owns a mobile home in this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. Thank you, c .f � iv./ _ /�' , - - : ; _ ._ 4 -_- Dear Council Members, We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent Control Ordinance that was approved in the General Election of 1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affeqeveryone who rents or owns a mobile home in this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. Thank you, c �� ������� v Dear Council Members, We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent Control Ordinance that was approved in the General Election of 1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affect everyone who rents or owns a mobile home in this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. Thank you, F ��4d,i��l '' - Fellow Residents - this is a letter that will be presented to the City Council before Tuesday's Meeting. Please consider signing it . If possible please plan to attend the meeting to show your support & if you wish to, voice your opinion, comments &/or concerns. Dear Council Members, We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent Control Ordinance that was approved in the General Election of 1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affect everyone who rents or owns a mobile home in this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. Thank you, Fellow Residents - this is a letter that will be presented to the City Council before Tuesday's Meeting. Please consider signing it . If possible please plan to attend the meeting to show your support & if you wish to, voice your opinion, comments &/or concerns. Dear Council Members, We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent Control Ordinance that was approved in the General Election of 1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affect everyone who rents or owns a mobile home in this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. Thank you, � � l9 q 7 Dear Council Members, We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent.Control Ordinance that was approved in the General Election of 1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affect everyone who rents or owns a mobile home mi this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. Thank you, N S U 93yo / v Dear Council Members, We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent Control Ordinance that was approved in the General_ Election of 1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affect everyone who rents or owns a mobile home in this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. Thank you, \tO Dear Council Members, We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent Control Ordinance that was approved in the General Election'of-1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affect everyone who rents or owns a mobile home in this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. --�11 - - - 0�-001-a� Fellow Residents - this is a letter that will be presented to the City Council before Tuesday's Meeting. Please consider signing it. If possible please plan to attend the meeting to show your support & if you wish to, voice your opinion, comments &/or concerns. Dear Council Members, We reside in the Creekside Mobile Home Community in San Luis Obispo. It has been brought to our attention that a very small group of residents is attempting to alter the Rent Control Ordinance that was approved in the General Election of 1988 as Measure D. These few people are not a true representation of the majority of residents that will be impacted by the alteration of a Measure already approved by the people of San Luis Obispo... This group previously asked for the removal of the "Safe Harbor" provision which allowed all the residents to be treated equally if a majority have signed a lease agreement within a park. Now they are asking for the removal of the 10% increase in rent upon resale of the mobile home. With these changes to the original Ordinance, it will adversely affect everyone who rents or owns a mobile home in this city & the park owners as well. We ask that you restore the Rent Control Ordinance to the original wording that was voted on & approved in 1988. Thank you,