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<br />Mr. Edwards continued that Mayor Gonzales, in turn, wrote a letter to Mr. Lee
<br />at the Lake Cadena Mobile Home Park, and issued a copy of this letter to the
<br />press, indicating that the rent stabilization issue or draft ordinance would
<br />not be on the Agenda for the April 4, 1978, meeting, accommodating Mr. Swanson's
<br />request.
<br />Mr. Edwards advised that Mr. Swanson has not responded in the last week or two,
<br />nor has he requested copies of the draft ordinance,- which had been prepared per
<br />Council direction.
<br />Mr. Edwards concluded he also felt the record should show that both he and the
<br />City Manager have been available, and would have furnished copies of the ordi-
<br />nance upon request, however, such request was never made.
<br />Mr. Swanson then continued with his presentation, speaking about legal issues
<br />that must be dealt with regarding the adoption of an ordinance pertaining to
<br />rent control, and the legislation and State laws involved on this matter.
<br />Mr. Swanson discussed -positions taken on this issue by the Cities of Oxnard and
<br />Berkeley, and the pending law suit against the City of Vacaville relative to
<br />their ordinance on mobile home park rent control, stating that most cities feel
<br />rent control is unwarranted and unnecessary.
<br />Mr. Swanson said he would like to point out that prior to the enactment of any
<br />rent control ordinance, the City must expend a great deal of time and effort in
<br />establishing the actual existence of a housing shortage, and that such a short-
<br />age actually exists in all sectors of the housing market, not only in mobile home
<br />parks. Mr. Swanson stated that any ordinance cannot impede the profits of an
<br />owner or landlord, and they must realize a reasonable return on their invest-
<br />ments; otherwise, any rent control ordinance would be constitutionally invalid.
<br />Mr. Swanson concluded the City Council can consider other alternatives to rent
<br />control, such as Federal and State laws providing cheaper rents to tenants,
<br />likeable to low cost housing, and certain zoning regulations within a city that
<br />can provide a condominium -type arrangement for mobile home parks.
<br />Mr. Swanson again requested postponement of any action on the proposed rent con-
<br />trol ordinance by the City Council.
<br />Mr. Jerry Brown, representing the San Bernardino County Real Estate Board, stated
<br />they have made studies with regard to rent control, specifically concerning mobile
<br />home parks which has become a special problem, and it has been determined that
<br />rent control does not work. Mr. Brown said he feels that AB 450, when passed, will
<br />relieve -this problem throughout the State, however, an -ordinance is a difficult
<br />thing to carry out.
<br />Mr. Roy Humphreys, Vice President of the J. F. Shea Company, Inc., advised that
<br />the Lake Cadena Mobile Home Park has consistently lost money over a yearly basis,
<br />from 1972 to the present, therefore, if they were charging exorbitant rental fees
<br />to the tenants, they would be making a profit and not a loss. Mr. Humphreys said
<br />the base rents are from $110. to $130. per month, which is not out of line with
<br />other parks of a similar calibre.
<br />Mr. Humphreys stated he feels that many statements that have been made are
<br />invalid, -and the tenants that have complained are unwilling to meet with
<br />them or the managers to see what can be worked out. Mr. Humphreys advised
<br />that the tenants have the privilege of signing a lease, and he cannot see
<br />where the proposed ordinance will offer any form of protection to the tenants,
<br />as the company has the right to raise the rents at their own discretion.
<br />City Attorney Edwards stated he would like the record to show that he was
<br />giving a copy of the proposed ordinance to Mr, Humphreys.
<br />Other opponents speaking against the proposed ordinance on rent stabilization
<br />were Mr. Robert Shauer, of the J. F. Shea Company, Inc., and Mr. Frank Toma,
<br />salesman of mobile homes.
<br />Mr. Thomas Lee, resident of the Lake Cadena Mobile Home Park, spoke in favor of
<br />a rent stabilization ordinance to help control the problem that exists at their
<br />park, stating he has never before heard so many erroneous statements and lies
<br />as made by the people representing the J. F. Shea Company. Mr. Lee urged the
<br />City Council to pass the rent stabilization ordinance for the protection and
<br />welfare of the residents at Lake Cadena.
<br />APR 18 197$`
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