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disclosure, copying or distribution is prohibited. If you are not the intended recipient, please contact the sender <br />by reply email immediately and destroy copies of the original message. <br /> <br /> <br />On Mon, Oct 18, 2021 at 4:38 PM Jim Joffe <jim@jandhmgt.com> wrote: <br /> <br /> Rent control is a windfall benefit to mobilehome owners in land lease parks. As sought by rent control <br />proponents, initial and ongoing space rents below fair market is the obvious and immediate <br />benefit. Just as impactful is the proven fact that in every locale with rent control the mobilehomes <br />resale prices are higher than before rent control, and those prices accelerate each year, often many times <br />above the true value of the mobilehomes. Eventually, home prices will reach levels that put them out <br />of reach of buyers needing affordable housing. More succinctly stated, there is an inverse <br />relationship between the prices of mobilehomes and the space rent charged. Because home prices <br />greatly increase under Rent control, eventually prices young families and seniors on a budget out of <br />the mobilehome market. Under Rent Control the resale process of 40 and 50 year old homes will <br />often be several times more expensive than new homes form the factory. So Rent Control only acts <br />as a “windfall” benefit to existing homeowner only. Future homebuyers suffer. <br />o Not surprisingly, the current sales prices of mobilehomes in Santa Ana mobilehome parks is <br />currently higher than their true value as mobilehomes indicating the fact that space rents are <br />already under market. <br />o One unfortunate result of rent control causing artificially inflated home prices on older homes is <br />the fact that the oldest of homes which have 50 year old wiring and plumbing and may be <br />unsafe for habitation remain in the park because the artificially buoyed prices of these homes <br />prohibits their replacement by newer, safer, more energy efficient new homes. New homes <br />would be available at affordable prices as the most obsolete of homes are otherwise replaced. <br />o There is no incentive for park owners and operators to improve the communities. At best, rent <br />control attempts to support the status quo in a rapidly changing world. There is no incentive for <br />park ownership to improve or increase utility services or amenities <br /> Many current electrical systems won’t support expanding appliance and computing needs <br />of seniors, stay at home workers, and growing families. <br /> Stagnant facilities and systems prohibit the replacement of obsolete unsafe homes with <br />energy efficient newer home. <br /> But I buried the lead. As demonstrated by the hostilities expressed in your hearings, rent control pulls <br />communities apart. It destroys any incentive landlords and mobilehome owners have to cooperate, <br />dialogue, or work together to maintain and improve mobilehome parks as “communities” and <br />“neighborhoods”. Homeowners have no incentive to dialogue with park ownership. The city will <br />become the “middleman” creating an ever-increasing chasm between landlord and tenant, park owner <br />and homeowner. You wouldn’t pass a law that so constricts other business owners (restaurants, retail <br />stores, repair services, etc.) that they have incentive to care about their customers. If you want to ruin <br />any sense of community, Rent Control is the tool. <br /> <br /> <br /> <br />James Joffe <br />5 <br /> <br />