1992 CC MIN JUN 02 - Laserfiche WebLink

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By stipulation of all parties, Mayor Gonzales directed that the matter be returned to Staff for further investigation and report. Mr. Mike Rawls, representing Blue Ribbon, chose not to speak at this time, reserving the right to speak at the next meeting. Amendment to Rent Control After review of pertinent legislation, Community Development Director Aguilera informed that City Attorney Biggs and he authored the proposed Ordinance. He referred to the Yee decision which allows cities to control mobile home space rent by ordinance when a mobile home is sold or moved from its paid, if the space was previously subject to such rent control. Previously, municipalities were allowed to control rents on occupied spaces, but when a unit was sole, or moved off the pad, the rent control provisions of the city's ordinances no longer applied. Deputy City Attorney Biggs has indicated that the City may want to wait for pending legislation which might further clarify the Yee decision; however, she indicated that it is within the City's discretion to adopt the proposed amendment pending further resolution and definition of this area of the law. Staff recommended waiver of full reading and adoption of first reading of the proposed Ordinance. Attorney Terry R. Dowdall, 4 Hutton Centre Dr., Ste. 200, Santa Ana, representing Reche Canyon Mobile Park, stated his clients stand in opposition to vacancy controls as it does not protect the prospective homeowner and harms the park -owner. He cited several sales of moblehomes/spaces and identified it as a resident selling a future right to occupy property while paying rent through higher mortgage - a regulatory taking. It is valid and his clients have one year within which to file suit. It is sales price versus the real price. Mr. Dowdall urged the City Council to defer action on this matter as advised by the City Attorney. Mayor Gonzales related that the City Council was forced to become involved in rent control to protect mobile homeowners as there were particular parks in the City who were abusing and gouging the mobile homeowners. Now, certain park owners have hiked space rents - some at 60% of CPI. The park owner feels he has nothing to lose. Mr. Bill Kalogonis of Park Mediterrania, expressed gratitude for the City Council and its action regarding rent control. He stated he favored rent control as a manner of recovering some of the value lost. Presently, sales are limited to amount of bluebook. Councilmember Cisneros asked Attorney Brown to respond to issues raised. City Attorney Brown responded that the City Council may choose to act or not. There are always issues of liabilities, risk and some expense. This matter is legal in fact. One JUN 2 1992