Resident curated mobile home owners news and information for residents of California Mobile Home Parks managed by Sierra Corporate Management (SCM) and owned by a Kort & Scott Financial Group (KSFG) company. The MHPHOA also provides news coverage for California Mobile Home Parks not owned by KSFG.
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Wed, Aug 31, 2016 –
The California False Claims Act permits the Attorney General to bring a civil law enforcement action to recover treble damages and civil penalties against any person who knowingly makes or uses a false statement or document to either obtain money or property from the State or avoid paying or transmitting money or property to the State. The False Claims Unit of the Corporate Fraud Section investigates alleged violations of the Act based upon referrals from state, federal and local agencies, tips from members of the public and qui tam complaints, otherwise known as whistleblower complaints.
The False Claims Unit coordinates its efforts with other sections of the Attorney General’s Office, including those responsible for Consumer Protection, Antitrust and Business Competition, and the supervision of Charities.
State of California Department of Justice – Office of the Attorney General
Under the False Claims Act, a private citizen may sue an individual or a business that is defrauding the government and recover funds on the government's behalf. The qui tam lawsuit is filed "under seal," meaning that it is kept secret from everyone but the government to give the Justice Department time to investigate the allegations. Even the person or entity being accused of fraud is not told about the qui tam case. The qui tam lawsuit and supporting documents should provide the government with detailed information about the fraud.
Phillips & Cohen – What is a Qui Tam Case?
Reference: Government Code Section 12650-12656
Tue, Aug 30, 2016 –
In recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS® continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others.
They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession.
REALTORS® having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of REALTORS®.
National Association of REALTORS® – The Code of Ethics
Sat, Aug 27, 2016 Updates – SMMRA Press Release Dated Fri, Aug 26, 2016:
Millennium Housing, owners of Rancho Vallecitos Mobile Home Park in San Marcos, California charged their resident, a 55-year-old female of domestic violence victim, with “substantial annoyance”, when she called 911, which ultimately caused an eviction notice for her to vacate the mobilehome she owns.
Though nearly two months prior the Vista Superior Court ruled in favor of the resident, Millennium Housing’s law firm served the victim with their second ‘motion to evict’, which came before Judge Dahlquist yesterday (August 25, 2016).
The victim’s lawyer, Thomas B. Goode, esq., Goode Hemme Peterson, San Diego, recapped to the Judge the cause for the first ruling to dismiss, while Robin G. Eifler esq., Dowdall Law Offices, Orange County, representing Millennium Housing, argued to overturn.
Several times within the hearing Judge Dahlquist admitted his vagueness to mobilehome resident laws verses real real-estate to question Goode for more clarity. Dahlquist had hoped Eifler and Goode could reach a mutual understanding and allow the victim to remain in her home, which is in escrow, until the closing. But Eifler disputed.
Goode further argued how Millennium Housing had mailed their 60 day eviction notice to the victim’s mortgage lender, three months prior to notifying the victim, to cause their loan to go into default and foreclosure of their home. At that, Judge Dahlquist became perturbed and questioned Eifler, “Why would Millennium, a non-profit, contact the mortgage lender and be involved in a personal issue without due process?” Eifler had no response.
Appalled, Judge Dahlquist took the case under review and will render his ruling within 7 days.
Members of the San Marcos Mobile Home Resident Association (SMMRA) believe Millennium’s interpretation of the “substantial annoyance” section of the California Civil Code is alarming and unlawful as it stands. SMMRA believe its members should not live in fear of being evicted for calling 911 and should not be held responsible for the decisions made by law enforcement. Meanwhile, Millennium’s interpretation effectively erases 20 years of legislative progress in protecting the rights of domestic violence victims.
Fri, Aug 19, 2016 – SMMRA Press Release Dated Wed, Aug 17, 2016:
Millennium Housing, owners of Rancho Vallecitos Mobile Home Park in San Marcos, California; have determined female victims of domestic violence no longer have the right to call 911 when they live in the properties they own. Anyone who does call 911 runs the risk of being evicted if the police response annoys any resident.
In cooperation with the Independent Cities Finance Authority (ICFA), Millennium has used $283 million in public bond financing to purchase 16 mobile home parks throughout California. Millennium then manages the ground lease under each home. Most residents in these parks are 55 and older with many living on fixed incomes.
Millennium's chilling interpretation of California Civil Code Section 798.56 (b) leaves elderly female residents in fear of being evicted for creating a "substantial annoyance" when they call the police in an emergency.
On January 16, 2016, a female Millennium resident was being attacked by her son. When she called 911 to report the domestic violence incident the police response included a SWAT standoff when the suspect barricaded himself inside the residence.
Without any due process, Millennium terminated the resident's ground lease and notified the resident's lender who foreclosed on the property. Millennium claimed the police response created a "substantial annoyance" as defined by California law. Millennium further claims upon lease termination; the resident has forfeited their rights to sell the home and recover their investment. When the resident stopped her lender from selling her home, Millennium filed an unlawful detainer to remove the resident's mobile home from their property.
Millennium's eviction case will be heard in San Diego Superior Court in Vista on August 25, 2016, Department N-08 at 1:30 PM. If they succeed, Millennium has already informed the resident they will physically remove the mobile home from their park rendering it worthless. Despite receiving cash offers, Millennium refuses to allow the resident to sell her home imposing a significant economic loss onto the victim.
Members of the San Marcos Mobile Home Residents Association (SMMRA) believe Millennium's interpretation of the "substantial annoyance" section of the California Civil Code is alarming and unlawful. SMMRA believes it's members should not live in fear of being evicted for calling 911 and should not be held responsible for the decisions made by law enforcement. Millennium's interpretation effectively erases 20 years of legislative progress in protecting the rights of domestic violence victims.
Fri, Aug 26, 2016 – Huntington Beach, California: Kort & Scott Financial Group (KSFG) purchased Rancho Huntington Mobile Home Park in 2012 for $25,400,000 (Fannie Mae ARM).
In January 2006, space rents were advertised at $500 per month. In January 2013, space rents were advertised at $1,000 per month. As of August 2016, mobile home space rents are now advertised at $1,908 per month, that’s a 91% increase in three (3) years and a 280% increase in ten (10) years.
Rancho Huntington Mobile Home Park was a senior park at the time of the KSFG purchase. Prospective mobile home buyers are expected to prove income of 3x the current space rent which equals $5,724.
Thu, Aug 25, 2016 – Upcoming Free Public Events for 2016
Thu, Aug 25, 2016 – We have received a number of homeowner complaints from multiple Kort & Scott Financial Group owned mobile home parks regarding 3/60 notifications being served for rent payments that were inserted into a Sierra Corporate Management Rent Dropbox and claimed as being late or not received at all.
Avoid using a dropbox if you have the option of giving your rent directly to a person.
Mobile Home Owner Warning: Using the SCM Rent Dropbox can be hazardous to your financial health.
Wed, Aug 24, 2016
Sun, Aug 21, 2016 – 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.
Wed, Aug 17, 2016 – Sierra Corporate Management CANNOT threaten to report you to the Immigration Authorities or other law enforcement, nor make any other threat to intimidate and/or evict you. Civil Code §1940.2 (a) prohibits that, and makes Sierra Corporate Management liable for $2,000 for each such attempt, in addition to your actual losses. (Penal Code 518).
518. Extortion is the obtaining of property from another, with his consent, or the obtaining of an official act of a public officer, induced by a wrongful use of force or fear, or under color of official right.
519 (5). Fear, such as will constitute extortion, may be induced by a threat of any of the following: To report his, her, or their immigration status or suspected immigration status.
520. Every person who extorts any money or other property from another, under circumstances not amounting to robbery or carjacking, by means of force, or any threat, such as is mentioned in Section 519, shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 for two, three or four years.
Penal Code Section 518-527
Tue, Aug 16, 2016 – What is Elder Abuse? In California, elders are defined as persons 65 years and older. Under California law, elder abuse can be both Criminal and Civil. If you are an elder adult (65 years and older) or dependent adult (18-64 who are disabled), you are protected by the California Elder Abuse laws. If you feel that you are the victim of Elder Abuse, please contact the Adult Protective Services (APS) toll free number listed for your county on this page. You can also report Elder Abuse on behalf of someone else and remain anonymous.
Sat, Jul 9, 2016 –
On Wednesday, July 6, 2016, a San Diego civil jury awarded 10 households of the Terrace View Mobile Home Park $58,389,000 in compensatory and punitive damages against the Park owners, Tom Tatum & Jeff Kaplan.
The case involved charging unreasonable rents and other illegal practices causing residents to lose their homes.
At the time of trial, 100 of the 200 spaces at the Terrace View Mobile Home Park were empty or abandoned due to the park owners' practices.
This is the first phase of 49 homes that are part of the lawsuit. The case was tried by James Allen and Jessica Taylor of San Diego based firm Allen, Semelsberger & Kaelin.
ASK Law Group
Allen Semelsberger & Kaelin, LLP
San Diego Mobile Home Lawyers
600 B Street, Suite 2400, San Diego, California 92101
619-544-0123, 800-895-5053, https://www.asklawgroup.com/
Terrace View Mobile Home Estates
13162 Highway 8 Business, El Cajon, California 92021
120. Defendants took, appropriated, obtained and/or retained or assisted in taking, appropriating, obtaining and/or retaining Senior Citizens' mobilehomes by refusing to approve prospective purchasers of Plaintiffs' mobilehomes, and by raising rents to unreasonably high levels. As a result Senior Citizen Plaintiffs were harmed and have been deprived of their right to sell their homes in the Park and have had to either walk away from their home or to sell them to Defendants for almost nothing.
121. Defendants' actions and/or conduct alleged herein was done for a wrongful use, with intent to defraud and/or by undue influence by preventing Plaintiffs from selling their mobilehomes in place in the Park, or keeping them there at reasonable rent levels.
122. Defendants knew or should have known that their actions and/or conduct were likely to be harmful to Plaintiffs and would prevent Plaintiffs from being able to sell their mobilehomes in place in the Park and would result in Defendants taking the financial investments Plaintiffs have in their mobilehomes in violation of Elder Abuse and Dependent Adult Civil Protection Act. Defendants' actions and/or conduct was a substantial factor in causing Plaintiffs' harm. Plaintiffs seek all damages allowed under the Elder Abuse and Dependent Adult Civil Protection Act and all other remedies otherwise provided by law (including, but not limited to, rescission) to compensate them for the harm proximately caused by Defendants.
123. Defendants were aware of Plaintiffs' right to sell their homes in place and the effect raising rents to unreasonably high levels would have on Plaintiffs' ability to sell their mobilehomes. Defendants deliberately interfered with the sale of Plaintiffs' homes by the actions alleged herein. Defendants subjected them to cruel and unjust hardship in conscious disregard of Plaintiffs' rights. Defendants consciously inflicted economic and personal hardship upon Plaintiffs by interfering with the sale of their mobilehomes which was despicable and Defendants' conduct constitutes oppression, fraud, and/or malice. Defendants' conduct warrants an award of punitive damages.
Mon, Aug 15, 2016 – From the 2016 California Mobilehome Residency Law Frequently Asked Questions: Rents, Fees and Taxes, 6. Security Deposit
Resident Question:Can the park charge first and last months’ rent plus a 2-month security deposit?
MRL Answer:Normally, when a mobilehome owner is accepted for residency in a mobilehome park and signs a rental agreement, charging first month’s rent and a 2-month security deposit are permitted. (Civil Code §798.39) After one full year of satisfactory residency (meaning all rent and fees have been paid during that time), the resident is entitled to request a refund of the 2-month security deposit, or may request a refund at the time he or she vacates the park and sells the home. (Civil Code §798.39(b))
2016 California MRL FAQs
Submit your request for a security deposit refund in writing to Sierra Corporate Management today! The MRL specifically states that SCM must refund your deposit after one full year of satisfactory residency. Do not wait until you vacate the park and/or sell your mobile home.
Sat, Aug 13, 2016 – According to online documents, KSFG purchased Country Club Village in Mesa, Arizona in 1995. Within two (2) years, the park attained the dubious honor of having more police related calls for service than any other address in the city. The city stepped in and took control of things and restored some order in the park. They even setup a satellite station within the park due to the severity of the situation.
In recent years (1997-1998), a large mobile home park known as Country Club Village, located in Mesa, Arizona, has attained the dubious honor of having more police related calls for service than any other address in the city. The Mesa Police Department's Falcon District Community Action Team collaborated with city entities and community members in an operation known as Project 97. The project's goal was to reduce the amount of police related calls for service and improve the quality of life in the community.
Project 97 was created in an attempt to drastically reduce crime and increase the quality of life within the 496 unit mobile home park which is home to 1600-1800 residents. A history of calls for service beginning January 1, 1998 through June 30, 1998 revealed a diverse array of crime related calls. Specifically, a majority of the calls were residential thefts, subjects disturbing, criminal damage, graffiti, and drug related calls. A majority of the less serious calls for service were 911 hangups, illegal parking, dogs at large, and various city code violations. An initial survey was given to all residents inquiring about the perception of crime and living conditions. The survey revealed that community members had become disillusioned and felt paralyzed by the scope of their situation.
Thu, Aug 11, 2016 – We are currently tracking 600+ mobiles homes in the KSFG/SCM inventory. We have acquired sales information for the KSFG/SCM mobile home parks and will post additional data once vetted.
Note: 3 Step Process – Step 1: Eviction, Step 2: Auction, Step 3: For Sale
Wed, Aug 10, 2016 – Mr. Chad Thomas Hagwood, now with Capital One, previously with Beech Street Capital and GMAC, has provided over $390+ million dollars in MHP financing for Kort & Scott Financial Group (KSFG).
We are currently investigating the relationship between Chad Thomas Hagwood and KSFG. We are also researching Fannie Mae and Freddie Mac mortgages and how they are structured in regards to the MHP financing being provided by Chad Thomas Hagwood. We will post updates as they become available.
Tue, Aug 9, 2016 – When a mobile home is abandoned, Kort & Scott Financial Group (KSFG) dba Sierra Corporate Management (SCM), are required by California Civil Code Section 798.56a and California Commercial Code Section 7210, to follow certain procedures regarding the possession and sale of the abandoned mobile home. These mobile home sales are performed via a NOTICE OF PUBLIC SALE in the local newspapers, see actual recent examples in the article.
Auction Date: Wed, Aug 24, 2016 at 10:00 AM – NOTICE OF PUBLIC SALE
Said sale is to be held without covenant or warranty as to possession, financing, encumbrances, or otherwise on an "as is", "where is" basis. Upon sale, the mobilehome must be removed from the Premises.
The property which will be sold is described as follows: MANUFACTURER: Unknown TRADENAME: Homette YEAR: 1973 H.C.D. DECAL NO.: LBJ1292 SERIAL NO.: G0372S847. The current location of the subject property is: 23701 S. Western Avenue, Space 42, Torrance, CA 90501.
The total amount due on this property, including estimated costs, expenses and advances as of the date of the public sale, is $19,134.56. The auction will be made for the purpose of satisfying the lien on the property, together with the cost of the sale.
Mon, Aug 8, 2016 – DO NOT SIGN a Kort & Scott Financial Group (KSFG) dba Sierra Corporate Management (SCM) Forbearance Agreement until you have sought professional and/or legal advice. Signing an SCM Forbearance Agreement waives your homeowner’s rights and releases KSFG/SCM from any and all past, present, and/or future liabilities, claims, disputes, controversies, suits, actions, causes of action, loss, debt, damages or injuries (collectively referred to as “claims”), matured or contingent, liquidated or unliquidated, known and unknown, suspected or unsuspected, which TENANT may have against PARK.
Sat, Aug 6, 2016 – DO NOT SIGN a Kort & Scott Financial Group (KSFG) dba Sierra Corporate Management (SCM) Lease Agreement until you have sought professional and/or legal advice. The MHPHOA believe the long-term lease agreements being offered by Kort & Scott Financial Group (KSFG) dba Sierra Corporate Management (SCM) are Unconscionable Contracts aka Unlawful Contracts. These leases are overly harsh, unduly oppressive, unreasonably favorable and so one-sided as to shock the public conscience.
The MHPHOA have not been able to locate an example of a Residential Lease Agreement that compares to the KSFG/SCM Mobile Home Park Lease Agreement. In fact, all of our research regarding the KSFG/SCM leases leads to commercial grade contracts referred to as NN (Double Net) or NNN (Triple Net) Leases. The NNN lease, often just called the “Triple Net Lease” is a popular lease structure in commercial real estate.
No rental agreement for a mobilehome shall contain a provision by which the homeowner waives his or her rights under the provisions of Articles 1 to 8, inclusive, of this chapter. Any such waiver shall be deemed contrary to public policy and void.
2016 California MRL
Fri, Aug 5, 2016 – It appears that Abraham Arrigotti is no longer President of Sierra Corporate Management (SCM) as of Friday, July 29, 2016. He has been replaced by Richard K. Pinel who has been with SCM since 2007. We have confirmed this with three (3) unrelated sources.
Mr. Richard K. Pinel, the new President of Sierra Corporate Management, was present and spoke at the Wednesday, August 3, 2016 Corona City Council Meeting regarding Corona La Linda Mobile Home Park. Based on Mr. Pinel's presentation, we can surmise that it's business as usual. The MHPHOA witnessed the usual placating KSFG/SCM commentary from Mr. Pinel. Not a single person in the KSFG/SCM organization is to be trusted.
Mr. Pinel has been working with KSFG/SCM for nine (9) years, he is part of the business model that all of us have been, and continue to be, subjected to. Do not drop your defenses. Do not accept anything verbally. You must get everything Mr. Pinel, and all other KSFG/SCM staff agree to, in writing.
Rich Pinel serves as Vice President of Sierra Corporate Management. He joined the firm in 2007, bringing with him 15 years of Property Management experience complemented by another 10 years in Hotel Management. Mr. Pinel’s unique, customer service-oriented background and orientation are applied to day-to-day operations as he focuses on implementing and enhancing Sierra’s policies and procedures and overall marketing program.
Mr. Pinel came to Sierra from Sunrise Management Company in San Diego, California, where he served as Vice President and Director of Property management for five years. He oversaw the day-to-day operations of this Fee Management Company of nearly 150 mobile home parks and apartment communities located throughout Southern California and into Arizona. Prior to that, Mr. Pinel served as Director of Property Management from the Los Angeles firm of E&S Ring Management Corporation, a private real estate trust. There, Mr. Pinel oversaw a portfolio of nearly 6,000 high-end apartments and associated retail and commercial spaces including boat slips. Prior to his four-year association with E&S Ring, Mr. Pinel managed large residential portfolios with Legacy Partners (Lincoln Property Company) in several Southern California markets and in Las Vegas, Nevada. Mr. Pinel has also worked extensively in the corporate housing environment with R&B Realty Group.
Mr. Pinel attended Rutgers University in New Brunswick, New Jersey where he majored in business. He holds a California Real Estate License and is a candidate for the designation of CERTIFIED PROPERTY MANAGER® (CPM®) from the Institute of Real Estate Management. He also holds IREM’s ACCREDITED RESIDENT MANAGER® (ARM®) designation. Mr. Pinel was awarded the ARM of the Year in 2005 and the CPM Candidate of the Year in 2006 from IREM’s distinguished San Diego Chapter. Mr. Pinel served as an Executive Member and on the Board of Directors for the San Diego Apartment Association. He also served as an Executive Member of the Multi-Housing Council of San Diego. He is always an active participant and continues to serves on several trade association committees.
Sierra Corporate Management 2009 Biography
Wed, Aug 3, 2016 – Based on the Sierra Corporate Management (SCM) Long-Term Lease Agreement legalese, our new and improved SCM Space Rent Calculator will surely raise a few eyebrows – and heart rates – prepare yourself.
In no event shall the CPI rent adjustment under this paragraph be less than six (6) percent per month of the then last charged monthly Base Rent.
Sierra Corporate Management 25 Year Lease Agreement
A rental agreement entered into or renewed on and after January 1, 2006, shall not include a clause, rule, regulation, or any other provision that grants to management the right of first refusal to purchase a homeowner’s mobilehome that is in the park and offered for sale to a third party pursuant to Article 7 (commencing with Section 798.70). This section does not preclude a separate agreement for separate consideration granting the park owner or management a right of first refusal to purchase the homeowner’s mobilehome that is in the park and offered for sale.
Mon, Aug 1, 2016 – Did you purchase a park owned or affiliate owned mobile home in a KSFG/SCM mobile home park? We're you offered a space rent special if you signed a long-term lease agreement? Does your long-term lease agreement contain a lease term section referencing an
*Addendum: Resident shall receive free rent…?
Beginning July 1, 2021, any mobilehome or manufactured homeowner living in a mobilehome park under a rental agreement may submit a complaint for an alleged violation of the Mobilehome Residency Law. Any mobilehome or manufactured homeowner residing in a permitted mobilehome park is eligible to submit a complaint. Complaints must be submitted to HCD. HCD provides assistance to help resolve and coordinate resolution of the most severe alleged violations of the Mobilehome Residency Law.
Any mobilehome / manufactured homeowner who lives in a mobilehome park.
Any complaints for issues within mobilehome parks related to Mobilehome Residency Law violations (California Civil Code).
Common violations include illegal grounds for eviction, failure to provide proper notice of rent increases, or no written rental agreement between the park and mobilehome owner.
Complaints must be submitted to HCD. HCD provides help to resolve and coordinate resolution of the most-severe alleged violations of the Mobilehome Residency Law. Visit the Submit a Complaint webpage for details.
Fri, Nov 22, 2019 –
Kabateck LLP attorneys representing hundreds of low-income mobile home residents in Long Beach, California secured a nearly $57 million settlement, which is the largest settlement ever involving a mobile home park.
Civil Lawsuits Against Kort & Scott DBAs