Item 07 - Ordinance Prohibiting Residential Real Property & Mobilehome Rental Rate Increases

Home Browse Search

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