COUNCIL REGULAR AGENDA
3. MOBILE HOME PARK ISSUES; AGREEMENT WITH VISTA DIABLO MOBILE HOME PARK OR Mobile Home Rent Control Ordinance #802-01
City Attorney Nerland presented the staff report dated December 15, 2006 recommending the City Council provide direction on an agreement regarding Vista Diablo Mobile Home Park and/or provide direction on a Mobile Home Rent Control Ordinance.
Lola Buck, President of the Vista Diablo Estates Homeowners Association, on behalf of Irma Casteen, Archie Gore, Al Ives, Marylon Stockdale, Freda Hargrove, Ann Roberts, Donna Harpfam and Pricilla Harrison, residents of Vista Diablo Mobile Home Park expressed concern regarding the lease agreement policies of Sierra Corporate Management, Inc., who coerce residents on fixed incomes into 20-25 year leases with automatic 6% annual increases, resulting in rents that are unaffordable and homes that are unmarketable. They requested the City Council draft a rent control ordinance and prevent the conversion of the park to an all age development. Additionally, the residents thanked the City Council and staff for their efforts to resolve the issues.
Abe Arrigotti, President of Sierra Corporate Management, stated a concerted effort had been made to prevent tonight’s potential action, however they could not meet the final terms as proposed. He noted rent control would not result in immediate or short-term benefit for the mobile home residents and the new buyer must accept long-term leases. He stated they have adjusted their rents based on market factors, fully disclosed guidelines for living in their community and intend on noticing the tenants of their plans to convert the park to an all age community if rent control is passed. He urged the City Council to consider all options noting government regulation of prices within any business is not a solution.
Antioch City Council
Antioch Development Agency
Adjourned Regular Meeting
December 19, 2006 Page 8 of 11
Mayor Freitas expressed his concern regarding the business practices of Sierra Corporate Management and reported the management company had failed to agree to reasonable requests made by the city.
In response to Mayor Freitas’ questions, the consensus of the Vista Diablo residents in attendance of this meeting indicated they would support rent control.
Councilmember Simonsen agreed with Mayor Freitas and provided the City Council with information from the City of Pittsburg on how they addressed these issues. He suggested the City look at options from other communities to avoid rent control ordinances.
Councilmember Kalinowski reported the Antioch Development Agency was a party to the rent gouging through rent subsidizes. He suggested the City investigate the possibility of elder abuse, determine whether or not there were legal grounds to pursue rent control and consider an investigation into some of the ongoing business practices of Sierra Corporate Management.
Councilmember Moore stated he was committed to protecting the residents.
Councilmember Davis expressed concern the residents had been coerced into signing long-term leases, which he felt was wrong.
Following discussion, it was the consensus of the City Council to move forward with the mobile home rent control ordinance and provided the following direction:
?? City Council’s intent was for this ordinance to apply to senior mobile home parks.
?? Mobile Home Park Rent Review Board – directed staff to return with more information, particularly on the costs and how they operate
?? Annual Increases of rent to be tied to Sacramento/Stockton/Central Valley area C.P.I.
?? Directed staff to return with more information regarding the procedure for petitioning for a special rent increase beyond the allowed automatic increase
?? Directed staff to return with more information regarding the “Administrative Fee”
?? Decisions of the Board could be appealed to the City Council for a decision
?? City Attorney advise and make a recommendation to the City Council on a scope of work related to issues on fair housing laws and financial elder abuse.
Mr. Ives clarified the residents could “get out” of their leases with a 60 day notice accompanied with a new buyer; state law requires they must offer a 12 month or less lease or a lease on agreeable terms of more than one year.
Mayor Freitas declared a recess at 10:20 P.M. The meeting reconvened at 10:34 P.M. with all Councilmembers present with the exception of Councilmember Simonsen who returned at 10:35 P.M.