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Mobile Home Park Home Owners Allegiance

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.

Click/tap the story headlines to open a link to the full original story and/or media such as streaming video from City Council Meetings. Story headlines with are inline news stories.

Clicking or tapping links with a caret (kar-it, carrot) will expand/show additional content and change to to collapse/hide content. Content that is collapsed/hidden will not print.


Friendly Village Mobile Home Park – Legal Battle Involving Methane Leaks

Wed, Nov 30, 2016 – Brian Kabateck of Kabateck Brown Kellner LLP, talked with FOX11 about a legal battle involving methane leaks at a mobile home park built on a landfill.

The “mobile home park built on a landfill” is Friendly Village Mobile Home Park in Long Beach, California. The MHPHOA reported on Sun, Apr 3, 2016 about the HCD violating 174 of the 182 lots in the park, see story below. Since then, there have been continual delays by both the HCD and Kort & Scott Financial Group aka Sierra Corporate Management.

The residents of Friendly Village Mobile Home Park recently filed a Temporary Restraining Order (TRO) against Sierra Corporate Management regarding a pending rent increase.

Mobile Home Park Rent Strike

What the residents of Friendly Village Mobile Home Park might consider is organizing a Rent Strike and not paying any space rent to Sierra Corporate Management. Space rents would be deposited in Escrow, on time, each month, until such time that ALL mobile home park violations have been abated.

No more delays, extensions, and/or passed deadlines via HCD, this has been ongoing far too long, since at least Aug 2015. No more opportunistic evictions by Sierra Corporate Management. No more selling mobile homes to unsuspecting buyers. And, no more rent increases while the quality of life continues to decrease.

Breach of Warranty of Habitability
Long Beach Poisonous Secrets
Breach of Implied Warranty of Habitability

HCD Complaints Timeline: MP15-1044, Opened 08-28-15, Closed 10-13-15 / MP15-1163, Opened 09-21-15, Closed 10-13-15 / MP15-1435, Opened 11-25-15, Closed 04-15-16 / MP16-0041, Opened 01-11-16, Closed 08-22-16 / MP16-0061, Opened 01-19-16, Closed 01-22-16 / MP16-0063, Opened 01-14-16, Closed 01-27-16 / MP16-0105, Opened 01-26-16, Closed 02-11-16 / MP16-0000, Opened 08-02-16

Sun, Apr 3, 2016 – This inspection is being conducted under the authority of Health and Safety Code, section 18400 and Title 25, California Code of Regulations, section 1004.5. Re-inspection fees of a minimum $196.00 will be required for any inspections after the first re-inspection. The below noted violations require correction within 30 days at which time the first re-inspection will be conducted. The result of this investigation is as follows:

A subsequent administratively requested meeting was held by our department at Friendly Village Mobile Home Park on March 1, 2016. Mrs. Erin Crum of (Sierra Management) was in attendance as well as Gabriel Contreras, Carlos Udria and I representing HCD. During the meeting Sierra Management advised us that they have not come up with a plan to abate any of the existing violations at the Friendly Village Mobile Home Park. Mrs. Erin Crum stated that Sierra Management would rather have all of the violations in writing. Sierra Management was cognizant of the substandard living conditions of the mobile home park however they have failed to make a plan to abate all violations.

Friendly Village Mobile Home Park Image Library
5450 North Paramount Boulevard, Long Beach, California 90805


Department of Housing and Community Development (HCD) Activity Report
File Type: PDF, Pages: 8, File Size: 451KB

HCD Activity Report Page 1, March 7, 2016
HCD Activity Report Page 2, March 7, 2016
HCD Activity Report Page 3, March 7, 2016

Letter from City Councilmember
File Type: PDF, Pages: 1, File Size: 25KB

Letter from Al Austin - Wednesday, February 24, 2016

Letter from City of Long Beach
File Type: PDF, Pages: 1, File Size: 27KB

Letter from Amy Bodek - Tuesday, March 1, 2016

Welcome to the Lifestyle of Trailer Park Tycoon Michael H. Scott

Tue, Nov 29, 2016 – Here’s a video of me helping Michael Hume Scott Host his 2015 Super Bowl Party. Sorry my voice was annoying I was sick that day. But the video turned out great! I got to interview Mohamed Anwar Hadid and Michael.
Melissa Riso on Facebook

Note: This is a well produced upbeat video showing the lifestyles of the rich and famous filmed at Michael H. Scott’s Mansion in Beverly Hills, CA. There is nothing out of the ordinary in the video, it’s a large group of people enjoying a Super Bowl XLIX party hosted by Michael Hume Scott, the one half of Kort & Scott Financial Group.

We just have to wonder how many mobile home owners surrendered their homes for that party?

Related: Michael H. Scott’s Proposed Giga-Mansion

10101 Angelo View Drive, Los Angeles, California 90210 - Mobile Home Paradise

Mon, Nov 28, 2016 – Did you lose your mobile home in an Unlawful Detainer Eviction Lawsuit filed by Kort & Scott Financial Group (KSFG) dba Sierra Corporate Management (SCM)?

If you feel that your mobile home was taken from you unfairly and you have documentation to support your claims, you may be able to recover up to $75,000 of your losses through the MHRF.

Sat, Nov 26, 2016 – Over 100+ reviews and complaints from Sierra Corporate Management residents, SCM employees, buyers and sellers of mobile homes, City Council Members and other officials. These are mobile home parks in California managed by Sierra Corporate Management (SCM) and owned by a Kort & Scott Financial Group KSFG) company.

Mail Slot with Envelope

Fri, Nov 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.

There have also been recent dropbox thefts (Oct 2016, Nov 2016) that have been reported by residents at multiple Kort & Scott mobile home parks.

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.

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.

Wed, Nov 23, 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…?

Sierra Corporate Management LEASE ADDENDUM

Tue, Nov 22, 2016 – One question that has been continually asked by residents is how can the Real Estate Agents sell mobile homes in Kort & Scott parks knowing what is happening and what the outcome may be? If they were Realtors, they may be in violation of their licensing requirements and Code of Ethics which states this…

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®.

But, these are not Realtors that we are discussing, these are individuals who have an HCD Occupational License which allows them to legally sell mobile homes in the State of California. The Occupational Licensing Program is administered exclusively by the California Department of Housing and Community Development.

The MHPHOA believe that the high volume retailers in Kort & Scott owned mobile home parks have “direct personal knowledge” of the park owner’s predatory business practices. One such retailer is Blue Carpet Manufactured Homes located at 10231 Slater Avenue, Suite 115, Fountain Valley, California 92708-4745, 714-636-6666.

Based on our research of publicly available information, Blue Carpet Manufactured Homes have been responsible for the sale of 200+ mobile homes in a portion of Kort & Scott mobile home parks since Jan 2013. These particular mobile home parks owned by Kort & Scott are experiencing an alarmingly high turnover rate and Blue Carpet Manufactured Homes is where it begins.

Mon, Nov 21, 2016 – What is the Western Manufactured Housing Communities Association (WMA)? What does the WMA do? Who are the WMA Executives? Who are the WMA Members? The WMA website states this...

Western Manufactured Housing Communities Association (WMA) is a nonprofit organization created in 1945 for the exclusive purpose of promoting and protecting the interests of owners, operators and developers of manufactured home communities in California. WMA assists its members in the operations of successful manufactured home communities in today’s complex business and regulatory environment.

The WMA has been in existence since 1945 which makes it 72 years old in 2017. Through the MHPHOA’s continuing research, it is evident that this organization is significantly influenced by industry names that many of us are familiar with e.g. Dan Fischer (Immediate Past President), Robert Coldren (Advisor), Terry Dowdall (Advisor), Hart | King (Advisors), Brad Harward (HCD Programs Manager), among others.

Based on our continuing research of the California Mobilehome Residency Law (MRL), California Assembly Bills (AB), California Senate Bills (SB) and amendments thereto, the MHPHOA have logically concluded that the WMA is being utilized as a tool by a group of predatory property owners, and their advisors, to significantly influence legislation governing California’s mobile home parks.

Collecting Data for CCM and ELS

Sun, Nov 20, 2016 – The MHPHOA are now collecting data for mobile home parks owned and/or managed by Cascade Corporate Management (CCM) and Equity LifeStyle Properties (ELS). Please contact us if you’d like to contribute data (e.g. Space Rents) for these new sections.

Fri, Nov 18, 2016 – Sortable table of current space rents from $398 to $1,947 in 33 mobile home parks in California owned by a Kort & Scott (KSFG) company and managed by Sierra Corporate Management (SCM).

Fountain Valley Estates Space Rent History

Thu, Nov 17, 2016 – Attorney Erin Brockovich will be investigating the allegations of a toxic plume of groundwater in an El Cajon neighborhood, according to a post on her Facebook page.

El Cajon residents say the plume is making the people living in the Starlight Mobile Home Park sick. The mobile home park sits above the plume.

‘We moved in November of last year, but we became so ill, summer gets worse.’ said Stephanie Jordan. ‘The hotter it gets, the more fumes you get.’ Until just a few months ago, Jordan had no idea she was living over a plume of toxic groundwater.

According to the San Diego Regional Water Quality Control Board, the groundwater has been polluted with cancer-causing chemicals for decades and can emit toxins into the air above via toxic vapors.

Two of the toxic chemicals present in the vapors are Trichloroethylene, also known as TCE, and Tetrachloroethlene, known as PCE.

Erin Brockovich Facebook Post

MHPHOA Note: Starlight Mobile Home Park is owned by a Kort & Scott Financial Group (KSFG) company and managed by Sierra Corporate Management (SCM), also a KSFG company.


El Cajon Residents Pack Meeting on Toxic Plume

Thu, Nov 17, 2016 – State officials were just minutes into their presentation about an underground chemical plume in El Cajon when homeowners began raising questions: ‘Have you tested it?’ a voice came from the back. ‘How are we going to sell our homes?’ asked another.

Residents of the Starlight and Greenfield Mobile Homes Estates, along with other neighbors – some 60 in all – nearly filled a Magnolia Elementary School auditorium Wednesday evening.

Starlight Mobile Home Park and Greenfield Mobile Home Estates Home Owners

Mobile Homes in Starlight Mobile Home Park to be Tested

Mon, Oct 31, 2016 – Residents in an El Cajon neighborhood are just finding out their homes have been sitting above a shallow, toxic plume for more than half a century.

Even after all this time, no one knows whether trichloroethylene and other chemical vapors have seeped up from tainted groundwater and entered homes through cracks in concrete. There has been no testing.

Now that is changing. In the last few days some residents of the Starlight Mobile Home Park on East Bradley Avenue have received visits from state officials offering to test the air in their homes. The state will also test the air outside.

For Anne Beams, a former Department of Defense teacher who has lived at Starlight since the 1980s, the developments come as a surprise.

‘No one at the park ever brought it to our attention,’ she said. Until this week, she was unaware of the plume. It’s a legacy of a 20th century aerospace manufacturing plant that once operated several hundred feet away.

‘Doesn’t it sound as though they were very slow in making those of us in Starlight aware of what could be happening to us all these years?’ she said of state authorities.


New Interactive Map of Toxic TCE Plume

Several residents asked a reporter about the location of the groundwater. But there is no easily accessible map online, let alone one that is interactive. inewsource made one, based on a map provided by the Regional Water Quality Control Board.

Starlight Mobile Home Park inewsource
Starlight Mobile Home Park inewsource

Toxic Plume in El Cajon Reaches Beneath Kort & Scott Mobile Homes

Sun, Oct 23, 2016 – On Thu, Oct 20, 2016, an article was published in inewsource regarding a toxic plume of TCE (Trichloroethylene) reaching beneath mobile homes. The article mentions a mobile home park in El Cajon, California but no specifics are provided.

The MHPHOA investigated further and it appears that two (2) Kort & Scott owned mobile home parks are affected; Starlight Mobile Home Park and Greenfield Mobile Home Estates. Both mobile home parks have mobile homes that are within the 1,000 μg/liter contour. No action and little testing have taken place there – until now. Here are some key snippets from the article…

The California Department of Toxic Substances Control issued a notification Thursday, October 6, 2016 after a contractor tested soil there and found TCE levels that left no doubt further testing should be done.

We collected data near the mobile homes along the property boundary and concentrations were detected at 5 feet below ground surface that are at level that may result in what we consider a significant risk to residents,” said Shahir Haddad, a supervising engineer for DTSC.

Several people at the mobile park said they’ve not been told that the plume runs under their homes. Most did not want to give their names.

Residents at the mobile park will be told of the testing results. The county water board is arranging a location and time, the agency’s Sean McClain said in an email.

Starlight Mobile Home Park inewsource

Wed, Nov 16, 2016 – Very few mobile home PARK OWNERS provide housing – they only provide a “space” or rented bare lot with hookups upon which the mobile home is placed. In the vast majority of cases, the resident obtains financing and BUYS the mobile home from the previous owners and agrees to pay rental for the bare lot underneath. This combination of home ownership and land rental provides unique opportunities for seekers of affordable housing. It also has unique risks that the homeowner often discovers long after they have purchased the home.

Some park owners practice predatory evictions where the park owner can confiscate the home by abrupt increases in demands for rent along with abrupt demands for expensive maintenance, and high utility bill estimates. Park residents suddenly find these combined expenses exceed their capacity to pay. Utilities are legally considered part of rent and cannot be challenged separately – residents are required to pay up or be deemed late on “rent”, leading towards eviction and potential confiscation of the home.

Fountain Valley Estates – 35% Turnover Since Jan 2013

Tue, Nov 15, 2016 – Kort & Scott purchased Fountain Valley Estates, a family park with 192 spaces located at 9320 Talbert Avenue, Fountain Valley, California 92708 in Jun 2011 for $33,375,000.

In Jan 2011, space rents for Fountain Valley Estates were advertised at $1,150 per month. Since then, space rents have aggressively risen to $1,350, $1,600, $1,750 and in Nov 2016, a mobile home listed for sale with a space rent of $1,947, that’s a 69% increase in space rent in less than 6 years.

What happens when space rents are egregiously increased in this manner? Since Jan 2013, 80 mobile homes have listed for sale. It appears that 13 of those 80 mobile homes have sold twice during that time period (Same Space Turnover). 80-13=67 which is 35% of the 192 spaces that have turned over since Jan 2013.

On Thu, Nov 3, 2016, a mobile home listed for sale in Fountain Valley Estates. On Sat Oct 24, 2015, that same mobile home was sold to the current owner. This homeowner purchased a mobile home with a 1 year rent special. The homeowner was shocked when they received their first annual rent increase, it forced them to put the mobile home up for sale 1 year after purchase.

The amount they originally paid for their mobile home is what the MHPHOA refer to as a non-refundable deposit. This homeowner may end up selling their home to a Kort & Scott Affiliate for a fraction of what the home is worth and they will most likely incur a financial loss – this is the Kort & Scott Business Model.

  • Address: 9320 Talbert Avenue, Fountain Valley, California 92708
  • County: Orange
  • Phone: 714-962-2112
  • Spaces: 192
  • Type: Family Park
  • 2016 Space Rent: $1,947
  • Purchased: Jun 2011, Amount: $33,375,000
  • Management: Sierra Corporate Management
  • DBA: Fountain Valley MHP Associates LP, Fountain Valley MHP GP LLC
  • DBA Filing: Apr 2011

Estimated Space Rent Based on 100% CPI Adjustments Since 2011

  • Jan 2011 (1.2) – $1,150
  • Jan 2012 (2.7) – $1,181
  • Jan 2013 (2.0) – $1,205
  • Jan 2014 (1.1) – $1,218
  • Jan 2015 (1.3) – $1,239
  • Jan 2016 (0.9) – $1,250

Mon, Nov 14, 2016 – In 1996 Kort & Scott purchased Emerald Meadows Mobile Home Park located at 3700 Antelope Road, Antelope, California 95843.

On Tue, Nov 1, 2016, the mobile home park was listed for sale on LoopNet for $13,500,000 with a Cap Rate of 5.77% and a Net Operating Income of $778,950. The Listing Broker is Victor Martinez and Associates.

The residents of Emerald Meadows Mobile Home Park have sued the Kort & Scott DBAs that own their park 2 times in the past 10 years. The second civil lawsuit is currently in progress with a trial date set for Oct 10, 2017. Notice of trial date was filed on Mon, Oct 31, 2016. On Tue, Nov 1, 2016 just 1 day after notice of trial date, Kort & Scott listed the mobile home park for sale on LoopNet.

2015-04-01 – Civil Lawsuit Filed by Residents

  • Case Number: 34-2015-00177316-CU-PO-GDS
  • Plaintiffs 1-XX vs. Larchmont Associates LLC, Larchmont Associates LP, Sierra Corporate Management Inc
  • Status: Set for Trial 2017-10-10, Mandatory Settlement Conference 2017-08-31

Complaint Summary: Nuisance, Breach of Contract, Negligence, Intentional Interference with Property Rights, Breach of Covenant of Good Faith and Fair Dealing, Breach of Statutes, Breach of Unfair Competition Law, Breach of Warranty of Habitability, Breach of Covenant of Enjoyment, Breach of Translation Act, Intentional Infliction of Emotional Distress, Negligent Infliction of Emotional Distress, Declaratory and Injunctive Relief.

2006-09-22 – Civil Lawsuit Filed by Residents

  • Case Number: 06AS04103
  • Plaintiffs 1-XX vs. Larchmont Associates LP
  • Status: Plaintiffs Won Civil Lawsuit on 2008-06-05
  • Damages Awarded: $3,800,000+

Complaint Summary: Nuisance, Breach of Contract, Negligence, Intentional Interference with Property Rights, Breach of the Covenant of Good Faith and Fair Dealing, Negligence Per Se, Unfair Business Practices, Breach of Warranty of Habitability and Covenant of Quiet Enjoyment, Declaratory and Injunctive Relief.

  • Address: 3700 Antelope Road, Antelope, California 95843
  • County: Sacramento
  • Phone: 916-344-4414
  • Spaces: 154
  • Type: Family
  • 2016 Space Rent: $700
  • Management: Sierra Corporate Management
  • DBA: Larchmont Associates LLC, Larchmont Associates LP
  • DBA Filing: May 1996, Dec 2002

Emerald Meadows Mobile Home Park for Sale

Mon, Nov 14, 2016 – In October 2015, a 1994 Fleetwood mobile home occupying space [000] in Lincoln Center Mobile Home Park (Owned by a KSFG Company) sold for $21,000. According to online documents, the new homeowner(s) signed the standard twenty-one (21) page, twenty-five (25) year long-term lease.

In April 2016, five (5) months later, an Unlawful Detainer (UD) lawsuit was filed against the new homeowners (Defendants) by Lincoln Center GP LLC (Plaintiffs) by Kevin Scott, authorized representative for Lincoln Center Mobile Home Park. The residents were late with their rent one time and served with a combined 3/60 notice (Pay Rent or Quit).

In August 2016, Lincoln Center GP LLC, represented by Hart King Attorneys at Law, won a Stipulated Judgment against the two (2) homeowners listed in the Unlawful Detainer (UD). That judgment appears to entail the surrender of the mobile home in exchange for no claims ($0) against the homeowners. A Writ of Possession (lockout) date of October 11, 2016 was agreed to by all parties.

Lincoln Center GP LLC - Combined 3-Day and 60-Day Notice - Page 1 of 3

Rancho Huntington Mobile Home Park – 20% Turnover in 9 Months

Sun, Nov 13, 2016 – As of Nov 2016, here are the space rents for the Kort & Scott owned mobile home parks in California. The lowest space rent is $398 (Laco Mobile Home Park) and the highest is $1,947 (Fountain Valley Estates). We maintain a Timeline of Space Rents in Kort & Scott owned mobile home parks so that you can see the egregious and predatory rent increases that take place usually on a yearly basis.

One example of predatory rent increases causing economic hardships forcing homeowners to sell or abandon their mobile homes would be Rancho Huntington Mobile Home Park located at 19361 Brookhurst Street, Huntington Beach, California 92646. Kort & Scott Financial Group (KSFG) purchased Rancho Huntington in late 2012 for $25,400,000 (Fannie Mae ARM).

In Jan 2006, space rents in Rancho Huntington were advertised at $500 per month. In Jan 2013, shortly after the Kort & Scott purchase, space rents were advertised at $1,000 per month. As of Nov 2016, mobile home space rents are now advertised at $1,908 per month, that’s a 91% increase in 3 years since purchase. Overall, the Seniors in Rancho Huntington Mobile Home Park have experienced a 282% increase in space rent in 10 years.

Rancho Huntington is classified as a Senior Park (55+). Prospective buyers must prove income at least 3 times the space rent e.g. $1,908 x 3 = $5,724. How many Seniors do you know claim that type of income?

The homeowners are fleeing. Online records indicate that 38 mobiles homes have listed for sale since Jan 29, 2016, that’s 20% of the park and the year is not over with. Our data shows that at least 40% of Rancho Huntington Mobile Home Park’s mobile homes have sold since Jan 2013 with at least 7% of them having sold twice (Same Space Turnover).

This exodus of mobile home owners is happening throughout Kort & Scott mobile home parks in the States of California, Arizona, Colorado and New Mexico.

  • Address: 19361 Brookhurst Street, Huntington Beach, California 92646
  • County: Orange
  • Phone: 714-962-7311
  • Spaces: 194
  • Type: All Ages (Previously 55+ Circa 2015)
  • 2016 Space Rent: $1,908
  • Purchased: 2012, Amount: $25,400,000
    Loan Type: Fannie Mae ARM, Chad Thomas Hagwood
  • Management: Sierra Corporate Management
  • DBA: Rancho Huntington GP LLC, Rancho Huntington Owner LP
  • DBA Filing: Aug 2012

Estimated Space Rent Based on 100% CPI Adjustments Since 2006

  • Jan 2006 (4.5) – $500
  • Jan 2007 (4.3) – $522
  • Jan 2008 (3.3) – $540
  • Jan 2009 (3.5) – $559
  • Jan 2010 (-0.8) – $559
  • Jan 2011 (1.2) – $566
  • Jan 2012 (2.7) – $582
  • Jan 2013 (2.0) – $594
  • Jan 2014 (1.1) – $601
  • Jan 2015 (1.3) – $609
  • Jan 2016 (0.9) – $615
  • Jan 2017 (1.9) – $627

Huntington Beach’s Mobile Home Uprising – Which Side Are YOU On?

Sun, Aug 3, 2014 – When the homeowners are driven out by sudden, exorbitant rent increases – as seems to be the actual goal of owners like Saunders LLC or Kort & Scott – they technically have the option of attempting to sell their homes so they can afford to live somewhere else. BUT, incredibly, the park owner has the right to refuse any buyer who doesn’t pass their absurd and arbitrary approval process. So eventually the homeowner, no longer a homeowner, is forced to abandon their property, which becomes the property of the park owner, and the senior shuffles off in shame and penury, sometimes never to be heard from again.

When I trekked a couple miles northeast to Rancho Huntington near the Fountain Valley border, the park under the occupation of Buena Park tycoons Kort & Scott, the park known as the hotbed of HB mobile home activism, I met or heard tell of: 1. A nearly-senile lady who was so shaken by the new owners’ strong-arm tactics that she panicked and sold her expensive home at a fraction of its worth; 2. More than one chipper lady in their 70’s who are now looking for work so they can pay their new exorbitant rents; 3. TWO MORE World War II Vets not as well off as Pacific’s Alvarez, who are really in danger of going homeless any month.

Hollydale Mobile Home Park – 44% Turnover in 21 Months

Sat, Nov 12, 2016 – The MHPHOA have been reviewing gigabytes of data regarding Kort & Scott including but not limited to; Civil Lawsuits (10+), Small Claims Lawsuits (50+), Unlawful Detainer Lawsuits (600+) and Mobile Home Sales (800+) in the Kort & Scott mobile home inventory.

While reviewing the data en masse, a timeline of events start to appear, stories begin to emerge, a predatory business model begins to take shape and is exposed. All of the Kort & Scott mobile home parks in California are experiencing a wide range of issues. There are a number of mobile home parks that raise red flags when running our reports and one of those is Hollydale Mobile Home Park, 1 of 33 mobile home parks in California owned by a Kort & Scott company and managed by Sierra Corporate Management.

The Hollydale Nightmare

Hollydale Mobile Home Park is a family park with 134 spaces located at 5700 Carbon Canyon Road, Brea, California 92823. The 2016 space rent is currently at $1,650 based on sales listings online. Hollydale Mobile Home Park (Space 53) was the previous corporate headquarters for Sierra Corporate Management.

Online records indicate that the residents of Hollydale Mobile Home Park won a 2009 Civil Lawsuit against the Kort & Scott DBA that owns their mobile home park for: Nuisance, Breach of Contract, Breach of the Covenant of Good Faith and Fair Dealing, Prima Facie Tort of Willful Conduct, Negligence, Negligence Per Se, Unfair Business Practices, Declaratory and Injunctive Relief.

Since the Civil Lawsuit and other ongoing (in progress) litigation activity, there have been a large number of what appear to be Retaliatory Evictions taking place in the mobile home park.

The Statistics – 44% Turnover in 21 Months

During the 2015 year, there were 17 Unlawful Detainer Lawsuits filed against a total of 29 homeowners and residents – that’s 13% of the 134 spaces in 12 months. Hart | King, A Professional Corporation, the law firm representing Kort & Scott DBAs, litigated all 17 eviction proceedings.

From Aug 2015 thru Nov 2016, 42 mobile homes have listed for sale – that’s 31% of the 134 spaces in 15 months with 34 of those mobile homes listed in 2016.

In total, there have been 59 mobile homes involved in a sale and/or eviction proceeding since Feb 2015 – that’s 44% of the 134 spaces in 21 months.

  • Address: 5700 Carbon Canyon Road, Brea, California 92823
  • County: Orange
  • Phone: 714-528-7779
  • Spaces: 134
  • Type: Family
  • 2016 Space Rent: $1,650
  • Refinanced: Jun 2005, Amount: $94,700,000, 3/6 MHP Package
    Loan Type: Fannie Mae FRM, Chad Thomas Hagwood
  • Refinanced: Dec 2013, Amount: $158,000,000, 3/8 MHP Package
    Loan Type: Fannie Mae FRM, Chad Thomas Hagwood
  • Management: Sierra Corporate Management
  • DBA: Hollydale Lowertier/Partner LP, Hollydale Uppertier/Operating LP
  • DBA Filing: Sep 2001

Fri, Nov 11, 2016 – On Fri, Sep 16, 2016 from 1:00 PM to 4:00 PM the MHPHOA watched the Live Stream of the Senate Hearing on “Improving Safety and Reducing Crime in Mobilehome Parks through Education and Licensure of Property Managers”. We wish to thank Senator Connie M. Leyva and staff for holding this hearing and we are especially grateful that this event was broadcast via live stream on YouTube.

The MHPHOA’s position on this issue is that before you focus on Licensure of Property Managers, you first need to address the fact that a growing percentage of California mobile home parks are without property managers. This is mostly due to a loophole in the California Health and Safety Code §18603(a) that allows owners of mobile home parks with more than fifty (50) spaces to elect a resident as the management "designee" instead of having a qualified manager on the premises.

KSFG/SCM Inventory Statistics for 811 Mobile Homes

Thu, Nov 10, 2016

  1. Dataset: 811 Mobile Home Sale Listings from 2012-2016
  2. Average Sale Price 1: $40,611 ($150-$236,900)
  3. Average Sale Price 2: $32,970 ($150-$99,800 – Excludes 53 Mobile Homes at $100,000+)
  4. Average Space Rent: $1,322 ($416-$1,947)
  5. Average Mobile Home Year: 1993
  6. Year Range: 1943-2016 – 2010-2016/18, 2000-2009/157, 20**-20**/4, 1990-1999/113, 1980-1989/89, 1970-1979/233, 1960-1969/110, 1950-1959/6, 1940-1949/3, 19**-19**/44, Unknown/34
  7. Tracked Listings by Year: 2016/403, 2015/141, 2014/128, 2013/126, 2012/13

Note: Sales data reflects only those mobile home for sale listings which can be found through publicly available resources. There are a large percentage of mobile home sales that do not make it into the public domain.


2017 MRL FAQ 63.1. Selling Mobilehomes: Realtor’s License and Clean Titles

It is illegal for anyone to sell, rent, or salvage a manufactured home that is not registered in his or her name.


800+ Mobile Homes Being Tracked in KSFG Mobile Home Parks

Tue, Nov 8, 2016 – We are currently tracking 800+ 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.

BHPH 1/3 Evict 2/3 Auction 3/3 Sell Turnover

Note: 3 Step Process – Step 1: Eviction, Step 2: Auction, Step 3: For Sale

Wed, Nov 9, 2016 – The MHPHOA online version of the 2017 California Mobilehome Residency Law in HTML has been updated to reflect all changes. We’ve also updated the MHPHOA online version of the 2017 California MRL FAQs in HTML.

MHPHOA 2017 MRL in HTML
MHPHOA 2017 MRL FAQs in HTML

2017 California Mobilehome Residency Law

Sat, Oct 29, 2016 – 2017 California Mobilehome Residency Law Handbooks are now available.

From the Senate Select Committee on Manufactured Home Communities:

Division 2, Part 2, Chap. 2.5 of the Civil Code. The Mobilehome Residency Law (MRL) is the “landlord-tenant law” for mobilehome parks, which, like landlord-tenant law and other Civil Code provisions, are enforced in a court of law. The Department of Housing and Community Development (HCD) does not have authority to enforce violations of the MRL.
Senate Select Committee on Manufactured Home Communities

From the 2017 MRL Introduction:

For the 2017 edition, there is one new amendment to the Mobilehome Residency Law (see 798.15). The FAQs section has been expanded to include three new questions: the role of county adult protective services (#32.1); an explanation of the difference between trained service dogs and emotional support animals (#35.1); and the legal procedure for sales of abandoned mobilehomes (#63.1). The Index has been expanded, revised and enlarged.

2017 California Mobilehome Residency Law

2017 California MRL

  • File Type: PDF
  • Pages: 132
  • Size: 1.5MB

Wed, Nov 9, 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.

Tue, Nov 8, 2016 – We are currently tracking 800+ 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.

BHPH 1/3 Evict 2/3 Auction 3/3 Sell Turnover

Note: 3 Step Process – Step 1: Eviction, Step 2: Auction, Step 3: For Sale

Mon, Nov 7, 2016 – Are you without the title to your mobile home? Have you made a diligent effort in obtaining your title from the seller? Have you found out that there are property tax liens against the mobile home you paid for and that you cannot obtain your title until those liens are paid for in full?

Assembly Bill 587 which was passed by Governor Brown on Wed, Sep 21, 2016, creates a tax abatement program for mobile home owners who cannot transfer title of ownership into their names, due to tax delinquencies incurred by prior owners.


(1) Existing law subjects manufactured homes or mobilehomes sold as new prior to July 1, 1980, to a vehicle license fee and requires annual payment of the fee. Existing law provides that nonpayment of certain fees and penalties, including the vehicle license fee, constitutes a lien on the manufactured home or mobilehome, and prohibits the Department of Housing and Community Development (department) from, among other things, issuing a duplicate or new certificate of title or registration card or amending the permanent title record of the manufactured home or mobilehome that is the subject of that lien.

This bill, when a person who is not currently the registered owner of a manufactured home or mobilehome applies to the department for registration or transfer of registration of the manufactured home or mobilehome prior to December 31, 2019, and meets other specified requirements, would require the department to waive all outstanding charges assessed by the department prior to the transfer of title of the manufactured home or mobilehome, release any lien imposed with respect to those charges, issue a duplicate or new certificate of title or registration card, and amend the title record of the manufactured home or mobilehome.

(2) Existing law provides that mobilehomes and manufactured homes not subject to the vehicle license fee are subject to local property taxation, and requires the department to withhold the registration or transfer of registration of any manufactured home or mobilehome subject to local property taxation until the applicant for registration presents a tax clearance certificate or conditional tax clearance certificate issued by the tax collector of the county where the manufactured home or mobilehome is located. Existing law requires the county tax collector to issue a tax clearance certificate or conditional tax clearance certificate if specified requirements are met.

This bill, when a person who is not currently the registered owner of a manufactured home or mobilehome subject to local property taxation applies to the department for registration or transfer of registration of the manufactured home or mobilehome prior to December 31, 2019, and meets other specified requirements, would require the department to issue a conditional transfer of title. The bill would require a county tax collector to issue a tax liability certificate to a person with a conditional transfer of title who applies for the certificate prior to January 1, 2020. Pursuant to the constitutional authorization described above, this bill would require the payment of only a portion of the taxes, as specified, reasonably owed from the date of sale of the manufactured home or mobilehome. By increasing the duties of county tax collectors, this bill would impose a state-mandated local program.


HCD Implementation of Assembly Bill 587

Mon, Nov 7, 2016 – AB 587, sponsored by GSMOL, was signed into law this year. It allows for the transfer of title of a home despite delinquent taxes of a previous owner. GSMOL recently attended a meeting at HCD regarding HCD’s initial plans to implement the legislation. Worth noting:

  • While the bill goes into effect on January 1, HCD is looking to start after July 1 when they anticipate regulations will be in place. HCD stated regulations are needed before issuing forms and charging fees associated with the application process.
  • HCD is also looking to initially outreach to a few counties in Northern and Southern California and are open on how to partner with advocacy groups in outreach, education, and implementation.
  • HCD is working on the assumption that 16,000 homeowners will apply each year for the 3 years the law is in effect. That is approximately 30% of the 160,000 homes in the state that are not properly registered.

California AB 587 – Mobilehomes: Payments: Nonpayment or Late Payments

Wed, Sep 21, 2016 – Governor Signs GSMOL Co-Sponsored Bill Granting Tax Relief to Mobilehome Owners – Today, Governor Brown signed AB 587, authored by Assemblymember Ed Chau (D-Monterey Park), which creates a tax abatement program for mobile-home owners who cannot transfer title of ownership into their names, due to tax delinquencies incurred by prior owners.

Assembly Bill No. 587, Chapter 396 – An act to amend Section 798.15 of the Civil Code, to amend Sections 18092.7, 18116.1, and 18550 of, and to add Section 18550.1 to, the Health and Safety Code, and to amend Section 5832 of the Revenue and Taxation Code, relating to mobilehomes.

Assemblymember Ed Chau District 49 Banner

Fri, Nov 4, 2016 – We are currently tracking 700+ 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.

The MHPHOA are now tracking “Same Space Turnover” for 50+ mobile homes in the KSFG/SCM inventory. In an upcoming release, we will be including and cross referencing eviction data.

BHPH 1/3 Evict 2/3 Auction 3/3 Sell Turnover

Note: 3 Step Process – Step 1: Eviction, Step 2: Auction, Step 3: For Sale

Thu, Nov 3, 2016 – The 2017 California Mobilehome Residency Law is now available for download. The FAQs section has been expanded to include three new questions: the role of county adult protective services (#32.1); an explanation of the difference between trained service dogs and emotional support animals (#35.1); and the legal procedure for sales of abandoned mobilehomes (#63.1).

Question: I own a mobilehome park where there are many abandoned homes. Can I sell them without registering as a real estate agent?

Answer: Generally, the answer is “no”. First, in order to act as an agent between a seller or buyer of a used mobilehome or manufactured home, you either must be registered with HCD as a “manufactured home dealer” or with the Bureau of Real Estate as a licensed real estate agent. Acting as an unlicensed dealer or agent can result in criminal penalties, civil penalties, and citations of up to $2,000 for each illegal sales activity.

The only exception to this is if the prior residents/homeowners have “walked away” from the homes, a park owner may sell them if he/she first obtains the right to ownership through a court action for the judgment of abandonment (Civil Code Section 798.61) or after a warehouse lien sale (Civil Code Section 798.56a). After that, if the park owner intends to rent, sell or salvage the units, the park owner must go to HCD and transfer title to his or her name, which includes paying all property taxes or HCD fees that are owed. HCD also has special procedures for when the prior registered owner cannot be found or when there are unpaid or unsatisfied loans on the home. Only after registering as the new owner may the park owner (who is now the homeowner) rent, sell, or salvage the abandoned homes.

Recap:

  • Only HCD-licensed dealers or BRE-licensed real estate agents may sell used manufactured homes in a park. Exception: When previous owner has “walked away”, park owner must follow legal procedures governing judgment of abandonment or warehouse lien sale.
  • It is illegal for anyone to sell, rent, or salvage a manufactured home that is not registered in his or her name.

Reminder: REALTORS® Code of Ethics

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


No Mobile Home Title? – Who Owns Your Mobile Home?

Wed, Nov 2, 2016 Updates – Sherman Oaks real estate company IMT Capital has sold another apartment complex, its third since August.

IMT sold IMT on the Boulevard at 6940 Sepulveda Blvd. in Van Nuys for $33 million, or $336,734 a unit, a record for the Van Nuys area, according to commercial real estate brokerage Berkadia. The buyer was Kort & Scott Financial Group in Anaheim, according to CoStar Group Inc.
San Fernando Valley Business Journal


Kort & Scott DBAs – Sepulveda Apartments GP LLC, Sepulveda Apts LP

Thu, Oct 29, 2016 – On Tue, Oct 4, 2016, Ricky Flandez, the new Controller for Sierra Corporate Management, registered two (2) new Kort & Scott DBAs; Sepulveda Apartments GP LLC and Sepulveda Apts Limited Partnership. Online records indicate that Sierra Corporate Management is managing the property named “6940 Sepulveda Apartment Homes” located at 6940 Sepulveda Boulevard in Van Nuys, California 91405. This appears to have been an NNN 1031 Exchange.

Screenshot of 6940 Sepulveda Apartment Homes
Screenshot of ApartmentGuide.com
  • Website: 6940 Sepulveda
  • ApartmentGuide: Sierra Corporate Management Apartments for Rent

Wed, Nov 2, 2016 – In the November 2016 edition of PARKWATCH™, there is a section regarding local rent controls. Here is a quote from Terry R. Dowdall, a predatory California Attorney who specializes in providing legal services for the predatory mobile home park owners such as Kort & Scott Financial Group (KSFG).

Terry R. Dowdall (CA Bar 79463) and Robin G. Eifler (CA Bar 139286) of Dowdall Law Offices, A.P.C. have been counsel for hundreds, if not thousands of eviction proceedings against California mobile home residents. Terry R. Dowdall sees us as the enemy and based on this quote, we’re in the rice paddies while the predatory park owners are attempting to board the “last ‘copter out of ‘Nam...”.

Long term leasing exempt from local rent controls will not be with us forever.

Park owners will eventually be threatened and regulated, unless you long-term lease while you can. It is the “last ‘copter out of ‘Nam...” You need to be leased up to protect your investment; you owe it to your fiduciaries and investors to at least try.

The MHPHOA have a message for Mr. Terry R. Dowdall of Dowdall Law Offices, A.P.C. – that “last ‘copter out of ‘Nam...” will soon be decommissioned and we expect to see a number of Dishonorable Discharges after all parties have been debriefed.


Attention Mobile Home Park Residents – Do Not Sign Long-Term Leases

DON'T BE A SIERRA CORPORATE MANAGEMENT CASH COW

Wed, Nov 2, 2016 Updates – The MHPHOA continue to expand the repository for litigation proceedings against Kort & Scott companies and its mobile home park management company Sierra Corporate Management (SCM).

  1. 2016-10-05 – Continental Manufactured Home Community

    Status: In Progress

  2. 2016-03-25 – Royal Oak Manufactured Home Community

    Status: The People of the State of California Won a Final Judgment on 2016-08-02, Injunction Against Davis Group LP and Western Ventures LP

  3. 2015-08-15 – Friendly Village Mobile Home Park

    Status: In Progress

  4. 2015-04-01 – Emerald Meadows Mobile Home Park (2 of 2)

    Status: Set for Trial 2017-10-10, Mandatory Settlement Conference 2017-08-31

  5. 2014-05-29 – Bayshore Villa Mobile Home Park

    Status: A San Mateo Superior Court Judge issued a Preliminary Injunction in Cruz vs. Sierra Corporate Management, Hearing Motion for Class Certification Held on 2016-10-13, Due 2016-12-12

  6. 2012-01-13 – Royal Western Mobile Home Park (2 of 2)

    Status: Plaintiffs Won Civil Lawsuit on 2014-08-28, Damages Awarded: $1,700,000+

  7. 2009-08-26 – Hollydale Mobile Home Park

    Status: Plaintiffs Won Civil Lawsuit (Researching), Damages Awarded: (Researching)

  8. 2009-03-13 – Greenfield Mobile Home Estates

    Status: Defendants Won Civil Lawsuit on 2010-03-02, Damages Awarded: $370,000+

  9. 2006-09-22 – Emerald Meadows Mobile Home Park (1 of 2)

    Status: Plaintiffs Won Civil Lawsuit on 2008-06-05, Damages Awarded: $3,800,000+

  10. 2004-05-28 – Royal Western Mobile Home Park (1 of 2)

    Status: Plaintiffs Won Civil Lawsuit on 2006-12-06, Damages Awarded: $1,300,000+


Kort & Scott Companies – Perpetual Breach of §17200

Legal Definition of Breach: An act of breaking or failing to observe a law, agreement, or code of conduct. Synonyms: Violation, Infringement, Infraction, Neglect

We have studied ten (10) past and current lawsuits filed against multiple Kort & Scott companies operating mobile home parks in California. We have extracted most of the alleged complaints and breaches, including most of the Civil Codes referenced in the lawsuits. We have found the majority of these Civil Codes repeated in the various lawsuits, they are common complaints by the mobile home owners/residents in KSFG owned mobile home parks.

Our goal is to build a “Copy Ctrl+C and Paste Ctrl+V” repository of all the Civil Codes that the KSFG DBAs are breaching. You can use this information to your advantage when working with legal counsel and/or other concerned entities. We will continually update this section as new information becomes available.

Tue, Nov 1, 2016 – No action based upon the management’s alleged failure to maintain the physical improvements in the common facilities in good working order or condition or alleged reduction of service may be commenced by a homeowner unless the management has been given at least 30 days’ prior notice of the intention to commence the action.

NEW MRL Protection Program

Thu, Jul 2, 2020 – The California Department of Housing and Community Development (HCD) is pleased to announce the Mobilehome Assistance Center is now accepting complaints from mobilehome / manufactured homeowners for issues within mobilehome parks related to Mobilehome Residency Law violations.

Who Can Submit a Complaint?

Any mobilehome / manufactured homeowner who lives in a mobilehome park.

What Types of Complaints can be Submitted for Consideration?

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.

How Does a Mobilehome/Manufactured Homeowner Submit their Complaint?

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.

Kort & Scott Pay $57 Million
Largest Mobile Home Park Settlement Ever

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.

KSFG Lawsuits
Civil Lawsuits Against Kort & Scott DBAs