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Mobile Home Park Home Owners Allegiance

Kort & Scott Financial Group (KSFG) dba Sierra Corporate Management (SCM) have methodically stripped the City of Carson of rent controlled mobile home spaces one (1) year after purchasing both Carson Gardens Trailer Lodge and Laco Mobile Home Park in Carson, California.

On Saturday, August 20, 2016, the MHPHOA made a presentation to a large number of Carson mobile home residents along with city and state officials regarding KSFG/SCM. During the meeting, it was discovered that KSFG/SCM have had twelve (12) mobile home owners sign long-term leases in Carson Gardens Trailer Lodge which has 97 spaces – that’s 12% of the mobile home park spaces that have been lost to the nefarious business practices of the new owners Kort & Scott Financial Group.

The MHPHOA are currently awaiting statistics for Laco Mobile Home Park. We are going to surmise that a similar routine has occurred and that at least 10% of Laco’s 94 spaces (9) have been converted to long-term leases and no longer under the City of Carson’s Mobilehome Space Rent Control ordinance.

According to the Carson Municipal Code, Section 3, Chapter 7, Mobilehome Space Rent Control §4710

§4710 Lease Regulations.

No Park Owner may require, directly or indirectly, that any Homeowner or prospective Homeowner sign a lease or rental agreement that provides that it shall be exempt from local rent control or provides for space rent in excess of that permitted by this Chapter as a condition of tenancy in the park and no Park Owner may deny a tenancy to a prospective purchaser of a mobilehome in the park on the ground that the prospective purchaser will not sign such a lease or rental agreement. (Ord. 91-941U, §1; Ord. 91-941, §1; Ord. 92-970U, §2; Ord. 92-970, §2; Ord. 98-1130, §19)

Based on the above municipal code (ordinance), the leases being offered by KSFG/SCM, and signed by mobile home owners, appear to be in direct violation of the Carson Mobilehome Space Rent Control §4710. KSFG/SCM may have obtained these long-term leases through the use of cash incentives, coercion, compulsion, and/or duress. The MHPHOA believe the KSFG/SCM long-term leases are Unconscionable and we are suggesting that the City of Carson deem the KSFG/SCM leases as Unlawful Contracts and have them rescinded.

Note: There is a section in the Carson Municipal Code that provides Kort & Scott Financial Group protections under the California Mobilehome Residency Law (MRL §798.17) from the above lease regulations. It is somewhat obscured within §4711(c) and states the below.

§4711 Utility Fees – Registration and Posting.

(c) Within ten (10) days of executing any rental agreement or lease which is exempt from this Chapter pursuant to Civil Code Section 798.17, a Park Owner shall register that lease with the Department on a form provided by the City, which specifies the beginning and ending date of the lease and the rental rate(s) applicable during the duration of the lease, and shall attach thereto a copy of the lease.

MRL §798.17 is a major loophole in the California Civil Code that was enacted to protect mobile home owners from predatory park owners. The MHPHOA and the grass roots movement strongly urge the AMENDMENT of .


798.17 RENTAL AGREEMENTS EXEMPT FROM RENT CONTROL; RIGHT TO INSPECT

    1. Rental agreements meeting the criteria of subdivision (b) shall be exempt from any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity which establishes a maximum amount that a landlord may charge a tenant for rent. The terms of a rental agreement meeting the criteria of subdivision (b) shall prevail over conflicting provisions of an ordinance, rule, regulation, or initiative measure limiting or restricting rents in mobilehome parks, only during the term of the rental agreement or one or more uninterrupted, continuous extensions thereof. If the rental agreement is not extended and no new rental agreement in excess of 12 months’ duration is entered into, then the last rental rate charged for the space under the previous rental agreement shall be the base rent for purposes of applicable provisions of law concerning rent regulation, if any.
    2. In the first sentence of the first paragraph of a rental agreement entered into on or after January 1, 1993, pursuant to this section, there shall be set forth a provision in at least 12-point boldface type if the rental agreement is printed, or in capital letters if the rental agreement is typed, giving notice to the homeowner that the rental agreement will be exempt from any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity which establishes a maximum amount that a landlord may charge a tenant for rent.
  1. Rental agreements subject to this section shall meet all of the following criteria:
    1. The rental agreement shall be in excess of 12 months’ duration.
    2. The rental agreement shall be entered into between the management and a homeowner for the personal and actual residence of the homeowner.
    3. The homeowner shall have at least 30 days from the date the rental agreement is first offered to the homeowner to accept or reject the rental agreement.
    4. The homeowner who signs a rental agreement pursuant to this section may void the rental agreement by notifying management in writing within 72 hours of returning the signed rental agreement to management.
    5. The homeowner who signs a rental agreement pursuant to this section may void the agreement within 72 hours of receiving an executed copy of the rental agreement pursuant to Section 798.16. This paragraph shall only apply if management does not provide the homeowner with a copy of the signed rental agreement at the time the homeowner returns the signed rental agreement.
  2. If, pursuant to paragraph (3) or (4) of subdivision (b), the homeowner rejects the offered rental agreement or rescinds a signed rental agreement, the homeowner shall be entitled to instead accept, pursuant to Section 798.18, a rental agreement for a term of 12 months or less from the date the offered rental agreement was to have begun. In the event the homeowner elects to have a rental agreement for a term of 12 months or less, including a month-to-month rental agreement, the rental agreement shall contain the same rental charges, terms, and conditions as the rental agreement offered pursuant to subdivision (b), during the first 12 months, except for options, if any, contained in the offered rental agreement to extend or renew the rental agreement.
  3. Nothing in subdivision (c) shall be construed to prohibit the management from offering gifts of value, other than rental rate reductions, to homeowners who execute a rental agreement pursuant to this section.
  4. With respect to any space in a mobilehome park that is exempt under subdivision (a) from any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity that establishes a maximum amount that a landlord may charge a homeowner for rent, and notwithstanding any ordinance, rule, regulation, or initiative measure, a mobilehome park shall not be assessed any fee or other exaction for a park space that is exempt under subdivision (a) imposed pursuant to any ordinance, rule, regulation, or initiative measure. No other fee or other exaction shall be imposed for a park space that is exempt under subdivision (a) for the purpose of defraying the cost of administration thereof.
  5. At the time the rental agreement is first offered to the homeowner, the management shall provide written notice to the homeowner of the homeowner’s right (1) to have at least 30 days to inspect the rental agreement, and (2) to void the rental agreement by notifying management in writing within 72 hours of receipt of an executed copy of the rental agreement. The failure of the management to provide the written notice shall make the rental agreement voidable at the homeowner’s option upon the homeowner’s discovery of the failure. The receipt of any written notice provided pursuant to this subdivision shall be acknowledged in writing by the homeowner.
  6. No rental agreement subject to subdivision (a) that is first entered into on or after January 1, 1993, shall have a provision which authorizes automatic extension or renewal of, or automatically extends or renews, the rental agreement for a period beyond the initial stated term at the sole option of either the management or the homeowner.
  7. This section does not apply to or supersede other provisions of this part or other state law.

(Amended by Stats. 2012, Chap. 477 (AB 1938, Williams), eff. 1/1/2013)


If these unfair business practices are allowed to continue at their current pace, KSFG/SCM will convert both Carson Gardens Trailer Lodge and Laco Mobile Home Park to 80-90% leased spaces, no longer under rent control, within 10 years. KSFG/SCM have performed this routine in Granada Villa Mobile Home Park in Santa Clarita which also has a Rent Control Ordinance. Unfortunately, as of August 2016, through the egregious and predatory business practices of KSFG/SCM, only 11 of the 179 spaces remain under rent control.

According to online records, KSFG purchased Granada Villa in 2002. It has taken them less than fourteen (14) years to convert 94% of the mobile home spaces to long-term leases which waives rent control for those spaces – indefinitely. The City of Santa Clarita, California have lost a valuable plot of affordable housing to the KSFG/SCM unconscionable long-term leases. Average space rents in 2016 for Santa Clarita mobile home parks are $725 – space rents in Granada Villa Mobile Home Park are $1,350.

On Wednesday, December 2, 2015 at 6:00 PM, the City of Carson, California held a Mobilehome Rental Review Board meeting. Mr. Abraham Arrigotti, President of Sierra Corporate Management was present and asked by a board member if it was true that SCM were offering residents at Carson Gardens Trailer Lodge a $450 cash incentive to sign long-term leases? Mr. Abraham Arrigotti responded with a “yes” and counsel (Thomas W. Casparian) for Sierra Corporate Management confirmed that this was legal and it is encouraged.

  1. Carson Gardens Trailer Lodge – Lease Agreement
    File Type: PDF, Pages: 21, Size: 5.5MB
  2. Corona La Linda Mobile Home Park – Lease Agreement
    File Type: PDF, Pages: 21, Size: 617KB

    Note: The Carson Gardens Trailer Lodge lease is identical to the Corona La Linda Mobile Home Park lease with the exception of the base rent and lease terms page(s). There is what appears to be an unintentional paragraph shift between the two 21 page documents that makes them look unalike.

  3. Corona La Linda Mobile Home Park – Rental Agreement
    File Type: PDF, Pages: 22, Size: 587KB

Carson Gardens Trailer Lodge Lease Agreement
Corona La Linda Mobile Home Park Lease Agreement

Carson, California – KSFG Mobile Home Owner Alert

Do not sign any documents from Sierra Corporate Management, seek immediate professional and/or legal advice. You must review all documents from Sierra Corporate Management (SCM) with a knowledgeable representative. All documents to be signed by residents must be reviewed by an experienced SCM forensic document specialist. DO NOT sign a long-term lease! As soon as you sign a lease agreement greater than one (1) year, you have waived your rights to any current and/or future rent control ordinances that may be in force or enacted. You have thirty (30) days to review the lease – and you have options – see the Information panel.