California MHP News

Fri, Mar 31, 2017 – Platinum Acquisitions, an Orange County based investment firm that specializes in mobile homes, shelled out $20.5 million, or $402 per square foot, for a 58-unit apartment complex just outside Koreatown.

Note: Platinum Acquisitions is a Kort & Scott Financial Group company.

Thu, Mar 30, 2017 – We are currently tracking 1,000+ mobiles homes in the Kort & Scott (KSFG) dba Sierra Corporate Management (SCM) inventory. We continue to acquire 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

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

We’ve recently added real-time statistics for mobile home sales. Click/tap the “Mobile Home Sales Statistics” link below to show/hide statistical data.

Mobile Home Sales Statistics

The flyer also shows 35 mobile home addresses that have sold in Fountain Valley Estates in the last three years. Of those, three are shown as having sold two times during that three-year period. How does that happen? How does a mobile home sell twice in three years? It happens frequently in mobile home parks owned by Kort & Scott dba Sierra Corporate Management. Buyers are paying cash up front to purchase the mobile home and may find themselves facing eviction within a year or two, they lose everything in the process.

Michelle Fairchild and Blue Carpet Manufactured Homes have been an integral part of Kort & Scott's predatory business model. Based on our continued research into the business practices of these mobile home retailers, the MHPHOA have come to the conclusion that morals and/or ethics are not a part of this business model.

Mobile Home Sales – Additional Information

1. Mobile Home Sales by Blue Carpet Manufactured Homes
2. Mobile Homes for Sale by Blue Carpet Manufactured Homes
3. Same Space Turnover Sales by Blue Carpet Manufactured Homes
4. Mobile Homes for Sale in KSFG Mobile Home Parks
5. Mobile Homes for Sale in KSFG Mobile Home Parks (Table All)
6. Occupational Licensing – Mobile Home Sales and Unlawful Practices

Tue, Mar 28, 2017 – In a Sat, Mar 25, 2017 Press Enterprise article titled “Corona Mobile Home Parks Might Get Voluntary Rent Control”, the following information was published regarding an investigation into the overbilling of utilities by Sierra Corporate Management.

Riverside County weights and measures investigators have found that Kort & Scott, doing business as Sierra Corporate Management, overcharged Corona La Linda residents for water but undercharged for electricity, new county Agricultural Commissioner Ruben Arroyo said Wed, Mar 22, 2017.

Officials are now investigating whether the company has been overcharging for gas, said Arroyo, who’ll then decide whether to send the findings to the District Attorney for a possible civil penalty.
The Press Enterprise

Undercharged for Electricity

This may or may not be intentional. Based on our research and documentation, we have seen this scenario play out many times. The final outcome is the residents are 100% responsible for any underbilling mistakes. The MHPHOA have an example of an SCM electrical underbilling that occurred in 2016. The resident was billed four (4) months of electrical adjustments in one month totaling $1,081. Add that to the $1,237 base rent plus $312 in adjusted utilities for that month, the Rent Statement total was $2,630. The resident had to get legal counsel involved to dispute the electrical adjustments.

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SCM Caught Overbilling Utilities – Now Issuing Credits

Thu, Feb 16, 2017 – Residents of Corona La Linda Mobile Home Park have been attending City Council Meetings and informing the Corona City Council that they are being overcharged for utilities (water) since Kort & Scott purchased their park in May 2015. Council Members performed their own review of the utility bills presented and told the residents they were not being overcharged. The residents knew otherwise and took their grievances, and proof, to the Riverside County Weights and Measures (W&M) office.

W&M requested the master water bills from Sierra Corporate Management and after investigation found that Sierra Corporate Management was/is overcharging residents for their water usage. SCM is now issuing credits to residents for the water billing overcharges. In one instance, a resident was credited $280 for a water calculation adjustment for the period 11/2015 thru 12/2016. Another resident was credited $138 and another $110 for the same time period.

Note: If you receive your utility bill(s) directly from the utility company(ies), this article does not apply to you.

Do you think you are being overcharged for utilities? If you live in a mobile home park owned by Kort & Scott and managed by Sierra Corporate Management (A Kort & Scott Company), there is a strong possibility that you are being overcharged for your utilities which are managed by the park owners. Complaints about the overbilling of utilities by Sierra Corporate Management are constant.

You could do what the residents of Corona La Linda Mobile Home Park have done and contact your local Weights and Measures Department. You’ll want to have enough proof available to show W&M that your utility bills are higher than normal and you think there is a problem with your meter or the park owners are overcharging you for utilities. W&M will inspect your meter(s) and perform any necessary adjustments and/or repairs.

If W&M find a discrepancy in the billing amounts, they will request the master bills from Sierra Corporate Management at which time any and all overcharges would be visible. You may end up being credited for the overbilling just like the residents at Corona La Linda Mobile Home Park.

We’ve provided links in the article to the Weights and Measures agencies in each county where Kort & Scott own mobile home parks.

Corona La Linda Mobile Home Park

• Address: 777 South Temescal Street, Corona, California 92879
• County: Riverside
• Phone: 951-734-1094
• Spaces: 132
• Type: Family
• 2017 Space Rent: $950
• Purchased: May 2015, Amount: $16,700,000
  Broker: Robert M. Paez, Martinez and Associates
• Management: Sierra Corporate Management
• DBA: Corona La Linda Associates LP, Corona La Linda GP LLC
• DBA Filing: May 2015

Previous Article

Mon, Mar 27, 2017 – Result of the Case: As a result of the inaction of management, the residents sued Equity Lifestyle Properties, the owner of the park. Initially, Equity was able to convince the Court that the case should go to arbitration, rather than to jury trial. The residents successfully appealed this decision, with the Appellate Court ordering the case back to the lower court to allow the residents to try the case to a jury. The jury awarded the residents $111 million in March 2014. The park owners responded by asking for a new trial, which was granted by the judge on the issue of damages. Again, the residents appealed. During the course of the appeal, the case settled.

After years of intense litigation, the residents of the California Hawaiian Mobile Estates finally settled their lawsuit against the owners of the park for $9,900,000.00.

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California Hawaiian Mobile Estates – Award Reduced: $111MM to $10MM

Mon, Mar 6, 2017 – In 2014, a Santa Clara County jury found the owner of California Hawaiian Mobile Estates negligent and awarded residents a record $111 million in compensatory and punitive damages. At the time, the award represented about 10 percent of the assets of the owner, Equity Lifestyle Properties (ELS), the largest mobile home park owner in the nation.

But the judge in the case overturned the award on the grounds it was excessive, prompting the parties to settle in December 2016 for just under $10 million to avoid a second trial on damages. The plaintiffs agreed to settle partly because a third of them are 65 or older and five already have died since the suit was filed, said Jim Allen, one of the residents’ lawyers.

‘Such awards are “excessive and outrageous,”’ said Sheila Day, executive officer for the Western Mobile Home Owners Association.

‘Cases that grab headlines are outliers and don’t represent the industry’, agreed Terry R. Dowdall, an Orange County lawyer who has represented mobile home park owners for nearly 40 years. ‘We work really hard to professionalize and educate owners, and mobile home parks continue to provide a viable, affordable housing alternative.’

Many residents are leery of suing because they can be held individually liable for the owner’s legal costs, which can total millions. In the California Hawaiian case, more than 150 residents dropped out of the case after receiving letters from Equity reminding them of their potential liability. But a core group of residents stuck together because they said conditions were so intolerable.

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Jury Awards Record $111 Million to Trailer Park Residents

Sun, Apr 20, 2014 – Last week, a San Jose civil jury awarded the residents $111 million, the largest such award for a failure-to-maintain lawsuit against a mobile home park in California. Previous awards in other California cases topped out around $12 million. If the verdict stands, 61 tenants out of 1,500 people who live in the park could reap an average of $100,000 each in compensatory damages, plus punitive damages of $1.57 million apiece.

The unprecedented verdict has sent shock waves through the industry, even as the park’s owner vows to try to get it overturned. Equity Lifestyle Properties, a publicly traded company chaired by billionaire Sam Zell, is the largest mobile home park owner in the nation, with 140,333 home sites in 379 properties in 32 states and Canada. The award represents about 10 percent of its assets.

Mon, Mar 27, 2017 – The MHPHOA are now collecting data for mobile home parks owned and/or managed by Cascade Corporate Management (CCM), Equity LifeStyle Properties (ELS), and Fischer Investment Group. Please contact us if you’d like to contribute data for these sections.

CCM ELS FIG SCM

Sun, Mar 26, 2017 Updates – Daniel C. Fischer, the previous President of the Western Manufactured Housing Communities Association is being sued again by the residents of Reseda Mobile Homes (108 Spaces) located at located at 6545 Wilbur Avenue, Reseda, California 91335.

In Feb 2017, the MHPHOA reported on a recent civil lawsuit for Failure to Maintain (FTM) filed by the residents of Reseda Mobile Homes against their new park owners Kort & Scott Financial Group. It has been confirmed that the residents are suing both business entities that have been, and are involved with the ownership of the park.

According to MHPHOA sources, the Reseda home owners, who had won a civil lawsuit for $1.85MM against the previous owner Daniel Fischer (Reseda Mobile Associates LP), are now suing Kort & Scott through the ASK Law Group. The repairs requested by the previous lawsuit were never made by the previous owner nor by Kort & Scott (Reseda MHP Associates LP) since they purchased the park in Mar 2014.

Related: Lawsuits Against Kort & Scott DBAs – A Tale of Two Mobile Home Parks

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Kort & Scott DBAs Being Sued by Residents of Reseda Mobile Homes

Sat, Feb 25, 2017 – In Mar 2014, Kort & Scott purchased Reseda Mobile Homes (108 Spaces) located at 6545 Wilbur Avenue, Reseda, California 91335, for $13.1MM from Daniel C. Fischer (Reseda Mobile Associates LP).

On Thu, Feb 16, 2017, 90+ residents from Reseda Mobile Homes filed a Civil Lawsuit (Case No: LC105272) against the Kort & Scott companies that own the park including Sierra Corporate Management. James C. Allen of ASK Law Group is the attorney/law firm representing the residents.

This is a new Civil Lawsuit filing and there are no documents available online yet. The MHPHOA will be monitoring the progress of this lawsuit and will post additional information as it becomes available.

Congratulations to the residents of Reseda Mobile Homes and kudos to the boots on the ground group who helped make this happen!

Notice of Intention to Commence Action

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Reseda Mobile Homes

• Address: 6545 Wilbur Avenue, Reseda, California 91335
• County: Los Angeles
• Phone: 818-345-6345
• Spaces: 108
• Type: 55+
• 2017 Space Rent: $1,450
• Purchased: Mar 2014, Amount: $13,100,000
• Refinanced: Jun 2016, Amount: $10,300,000
  Loan Type: Fannie Mae SARM, Chad Thomas Hagwood
• Management: Sierra Corporate Management
• DBA: Reseda GP LLC, Reseda MHP Associates LP
• DBA Filing: Jan 2014

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Civil Lawsuits Against Kort & Scott Companies
Ten (10) Civil Lawsuits – Four (4) Civil Lawsuits in Progress

Corona La Linda – 42 City Council Meetings and 21 Months Later

Sun, Mar 12, 2017 – On Wed, Mar 1, 2017, the residents of CLLHOA attended their forty-second (42) City Council Meeting in twenty-one (21) months seeking help from the Corona City Council.

Some members of the Corona City Council have had a change of heart and are now supporting the resident’s attempts with Sierra Corporate Management to negotiate a 25-year long-term lease agreement with a maximum 3.0% annual increase.

Based on the City Council’s comments during the meeting, it appears that Sierra Corporate Management have misled the Council Members regarding the particulars of the lease – first by Abraham Arrigotti, the previous President of SCM, and now by Richard K. Pinel, the current President.

Sierra Corporate Management – Take It or Leave It

On Thu, Mar 9, 2017, the Corona La Linda Homeowners Association received this email message from Richard K. Pinel, President of Sierra Corporate Management.

Our Long Term Lease has been delivered and as you more than likely recall, stands at 5% or CPI, whichever is greater (for the 25 year lease option).

The MHPHOA are expecting the Corona City Council Members to respond to the above reply from the SCM President during the Council Meeting on Wed, Mar 15, 2017. How much longer will the City Council allow this to continue? When will Council Members seriously consider a Mobile Home Park Rent Stabilization Ordinance for the City of Corona?

Corona La Linda Mobile Home Park

• Address: 777 South Temescal Street, Corona, California 92879
• County: Riverside
• Phone: 951-734-1094
• Spaces: 132
• Type: Family
• 2017 Space Rent: $950
• Purchased: May 2015, Amount: $16,700,000
  Broker: Robert M. Paez, Martinez and Associates
• Management: Sierra Corporate Management
• DBA: Corona La Linda Associates LP, Corona La Linda GP LLC
• DBA Filing: May 2015

Fri, Mar 24, 2017 – Sources have recently informed the MHPHOA that Knolls Lodge Mobile Home Park located at 23701 South Western Avenue, Torrance, California 90501 appears to be transforming into a combination of mobile homes and RVs (Recreational Vehicles). Based on recent images provided in Mar 2017, at least twenty-five (25) of the 257 spaces (10%) are now occupied by RVs scattered throughout the mobile home park.

Resident Question: Can Kort & Scott dba Sierra Corporate Management rent mobile home spaces to RVs?

Answer: California MRL §798.22, FAQ #39 – RVs in Mobilehome Parks

Recap:

• In parks developed before 1982: If there are no local permit or zoning restrictions, then RVs and mobilehomes may occupy mobilehome spaces, but mobilehomes may not occupy RV spaces.
• In parks developed after Jan 1, 1982: No RVs are allowed on mobilehome spaces unless the mobilehome space is in the RV section of the park.

Chapter 7 Mobilehomes, Mobilehome Parks
Local Ordinance Reference – Torrance Municipal Code

Related: In Nov 2015, the MHPHOA published the following review regarding a 20% vacancy rate at Knolls Lodge Mobile Home Park.

We were asked to send you how many mobile homes were for sale in our park. I went out today and counted. We have 19 RV spaces, 8 have RVs for sale, 11 are empty. We have 26 park owned homes and 8 resident owned homes for a total of 34 mobile homes for sale. All together, there are 53 spaces up for grabs in Knolls Lodge Mobile Home Park – that’s 20% of our 257 spaces. I noticed there are still Eviction Notices on some of the park owned homes, I guess they haven’t gotten around to preparing those for new buyers, that’s if they ever sell. Most of these mobile homes have been up for sale for a long time. All but a handful of the original mobile home owners from 2005 remain, they’re stuck here.

Knolls Lodge Mobile Home Park

• Address: 23701 South Western Avenue, Torrance, California 90501
• County: Los Angeles
• Phone: 310-326-1000
• Spaces: 257
• Type: Family
• 2017 Space Rent: $1,450
• Refinanced: Jun 2005, Amount: $94,700,000, 4/6 MHP Package
  Loan Type: Fannie Mae FRM, Chad Thomas Hagwood
• Refinanced: Dec 2013, Amount: $158,000,000, 4/8 MHP Package
  Loan Type: Fannie Mae FRM, Chad Thomas Hagwood
• Management: Sierra Corporate Management
• DBA: Knolls Lodge GP Corp, Knolls Lodge LP
• DBA Filing: Jan 2002, Oct 2002

Wed, Mar 22, 2017 – Sierra Corporate Management Onsite Community Manager Review: 2016 Mar – I am a calm and a peaceful person. I love all my jobs and give 100%. This company wanted to teach me how to do illegal sales. I told them that let's fix the homes and then sell them but this statement offended them and I ended up being the bad employee. Legally we are supposed to have a Property Manager, Assistant Manager and a full time Maintenance person. Instead, I was the only Property Manager there and we had a part time porter (not maintenance). As me being a great employee, I continued working there and doing 3 person's jobs all by myself. I know I was learning and, learning is the key to success. I will find a better job and be successful as I am a hard worker and a leader.
Onsite Community Manager (Former Employee)

Tue, Mar 21, 2017 – Since the MHPHOA.com launched on Thu, Nov 5, 2015, we have been submitting Public Information Requests (PIRs) to the California Department of Housing and Community Development (HCD). We have acquired a multitude of resident complaints in mobile home parks owned by Kort & Scott dba Sierra Corporate Management, and have published portions of that information on the MHPHOA.com website.

For this article, we will be focusing on Friendly Village Mobile Home Park located at 5450 North Paramount Boulevard, Long Beach, California 90805. The park was built on top of a landfill and over the years has experienced a host of Health and Safety Code issues/violations.

This park was previously owned by Daniel C. Fischer between Nov 2005 and May 2011. In May 2011 the park was sold to an unknown entity. In Feb 2014, the park was sold again, this time to a Kort & Scott company. This mobile home park has sold three (3) times in eleven (11) years, this is a rare occurrence and the timeline of sales activity leaves a lot to be questioned.

On Mon, Mar 7, 2016, 174 of the 182 lots that make up Friendly Village Mobile Home Park were violated by the HCD for a variety of Health and Safety Code issues. Only eight (8) homes passed inspection. Why did this happen? Because the residents stood up and contacted various state officials who stepped forward and wrote letters to the HCD in Feb/Mar 2016. It took an official request from a state official in a position of authority to have HCD perform their duties.

Since Mar 2016, there have been a number of “informal meetings” between HCD and Sierra Corporate Management. The original HCD violations afforded SCM thirty (30) days to abate them. It is now Mar 2017, one (1) year later, and the major violations have not been abated and HCD continues to allow SCM to execute their predatory business model. The residents have received rent increases of $129 (2014), $129 (2015) and $149 (2016). SCM continue to Breach the Warranty of Habitability and the HCD is allowing it to happen.

The HCD holds the key in helping the residents of Friendly Village Mobile Home Park by suspending the Permit to Operate for the park. This would prevent SCM from collecting any more rent from the residents and put the pressure on them to fix the park now. Based on our research, the HCD appears to have allowed Kort & Scott companies to wreak havoc in just about every park they have purchased in California since 1989.

If the HCD would have performed their duties responsibly, there wouldn’t be four (4) active major civil lawsuits against Kort & Scott companies for Failure to Maintain (FTM) their mobile home parks along with six (6) others that have been settled. This is clear evidence that the HCD has failed these California Mobile Home Owners. These parks should have never been allowed to deteriorate into the conditions they are today.

The MHPHOA have also uncovered what we feel are a group of HCD Inspectors covering up for the Kort & Scott companies and other predatory park owners. Friendly Village Mobile Home Park is a prime example of this happening in the past. There have been complaints marked as "OK to Close" when in fact they were not "OK to Close." Some of those complaints that were closed over a year ago are now open again and being marked as violations by a new HCD Inspector who appears to be performing their duties responsibly.

Why haven’t the HCD suspended the Permit to Operate for Friendly Village Mobile Home Park? The HCD issue letters of Intent to Suspend PTO for the pettiest of reasons but yet they won’t issue one when 174 of 182 lots are in violation of California Health and Safety Codes. Does that make sense to you?

We’ve done some basic research into suspended PTOs. We have not been able to locate any PTO suspensions for a corporate entity such as Kort & Scott within the limited data available to the MHPHOA. The PTOs we have located are petty in nature. We did locate an example of a Notice of Intent to Suspend Permit to Operate that occurred for Lamplighter Mobile Home Park in North Highlands, California on Oct 2, 2013. Read the below and see what little it took for this park to get a Notice of Intent from the HCD. Coincidentally, Kort & Scott purchased Lamplighter MHP in Apr 2014, six (6) months after this letter was sent.

HCD Petty PTO Suspension Letter

Sun, Mar 19, 2017 – Some years ago, an attorney was working with a MHP resident group in Northern California. This group was trying to purchase the park where they lived, to convert it to a resident-owned cooperative.

At the time, the park was owned by an out-of-state partnership made up of several real estate investors. One of these investors was the general partner, who provided some capital plus his investment experience. The limited partners had money to invest, but were not as savvy as the general partner. The general partner ran the show.

When the partnership was formed, the partners had discussed various types of real estate investments. The #1 question: “in what types of properties should we put our money to get the best return?”

The general partner wrote a memo to his new limited partners, explaining to them that, absolutely, the best real estate investment is (you guessed it) mobilehome parks. Amazingly, the general partner also shared this memo with the resident group mentioned above. He told the group, “I want you to know how real estate investors think.”

The group shared the memo with their attorney, who shared it with MHPHOA. Now, we’re sharing it with you. From a park resident’s perspective, this is pretty chilling stuff.

A big take-away from the memo for MHP residents is, “buy the park where you live, if you can, to get it out of the hands of real estate investors.”

Sat, Mar 18, 2017 – On Wed-Thu, Mar 8-9, 2017, Alexander Segal, the Acquisitions Director for Kort & Scott, registered two (2) new DBAs; Lafayette Apt Associates LP and Lafayette GP LLC.

The MHPHOA have not been able to locate any specific information regarding these recent DBA filings. We will continue to monitor online resources and post news updates when they become available.

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

Sat, 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.

• Website: 6940 Sepulveda
• ApartmentGuide: Sierra Corporate Management Apartments for Rent

Thu, Mar 16, 2017 – 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.

Wed, Mar 15, 2017 – The Kort & Scott predatory business model was used as an example in a Thu, Feb 9, 2017 webinar presentation to the Federal Housing Finance Agency (FHFA). Tim Sheahan, President of the NMHOA is informing the FHFA who oversees Fannie Mae and Freddie Mac loans, about the potential misuse of funding by Kort & Scott and other predatory park owners. MHPHOA.com data is being presented to the FHFA as supporting documentation.

Federal law requires the Federal Housing Finance Agency (FHFA) to issue a regulation to implement the Duty to Serve requirements specified in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008. The statute requires Fannie Mae and Freddie Mac (the Enterprises) to provide leadership to facilitate a secondary market for mortgages on housing for very low-, low-, and moderate-income families in three underserved markets specified in the statute:

• Manufactured Housing
• Affordable Housing Preservation
• Rural Housing

FHFA has issued a final rule that takes into consideration underserved markets needs and safety and soundness.

DTS Comments: Tim Sheahan, President of NMHOA

Without proper consumer protection, homeowners have little homeland security of tenure and mom-and-pop operators have sold to Wall Street real estate investment trust and other corporate conglomerates, we see an Enron-ization of the industry where profit sharing corporate operators have pillaged and plundered our manufactured home villages, threatening the future viability of manufactured housing as the largest form of unsubsidized housing in the United States.

One such operator is Kort & Scott Financial Group, according to the website MHPHOA.com. It has received roughly $410 million dollars in GSC backed loans to purchase or refinance manufactured home communities. Chad Thomas Hagwood of Capital One has been the loan originator in these transactions. It’s outrageous that there aren’t adequate restrictions on GSC backed loans to protect vulnerable home owners and lenders. I have a print out from one lender who has gone so far as to blacklist several corporation owners including Kort & Scott Financial Group, Tatum and Kaplan Financial, Killam Properties, Kingsley Properties, MHC/Equity Lifestyle Properties, also because home loans in their communities carry such high risk.
Duty to Serve Public Listening Session Webinar – Thu, Feb 9, 2017

Tue, Mar 14, 2017 Updates – All linked legal references have been updated to the new California Legislative Information website at https://leginfo.legislature.ca.gov/. This new website has been updated to include legislative publications starting with the 2017 session and forward.

Legal Definition of Breach: An act of breaking or failing to observe a law, agreement, or code of conduct. Synonyms include but are not limited to; Violation, Infringement, Infraction and/or Neglect.

We have studied ten (10) past and current Civil 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.

Some members of the Corona City Council have had a change of heart and are now supporting the resident’s attempts with Sierra Corporate Management to negotiate a 25-year long-term lease agreement with a maximum 3.0% annual increase.

Based on the City Council’s comments during the meeting, it appears that Sierra Corporate Management have misled the Council Members regarding the particulars of the lease – first by Abraham Arrigotti, the previous President of SCM, and now by Richard K. Pinel, the current President.

Sierra Corporate Management – Take It or Leave It

On Thu, Mar 9, 2017, the Corona La Linda Homeowners Association received this email message from Richard K. Pinel, President of Sierra Corporate Management.

Our Long Term Lease has been delivered and as you more than likely recall, stands at 5% or CPI, whichever is greater (for the 25 year lease option).

The MHPHOA are expecting the Corona City Council Members to respond to the above reply from the SCM President during the Council Meeting on Wed, Mar 15, 2017. How much longer will the City Council allow this to continue? When will Council Members seriously consider a Mobile Home Park Rent Stabilization Ordinance for the City of Corona?

Corona La Linda Mobile Home Park

• Address: 777 South Temescal Street, Corona, California 92879
• County: Riverside
• Phone: 951-734-1094
• Spaces: 132
• Type: Family
• 2017 Space Rent: $950
• Purchased: May 2015, Amount: $16,700,000
  Broker: Robert M. Paez, Martinez and Associates
• Management: Sierra Corporate Management
• DBA: Corona La Linda Associates LP, Corona La Linda GP LLC
• DBA Filing: May 2015

Fri, Mar 10, 2017 Updates – Note: Michael H. Scott is the one half of Kort & Scott dba 170+ other companies.

Dear Neighbors, Sound the Alarm! The City has issued Michael Scott permits for a revised “house” at 10101 Angelo View Drive. While this commercial entertainment complex has eliminated its haul route, it is still devastatingly large and will have tremendous impacts.

Shockingly, the City is no longer requiring any environmental review, even though Councilman Paul Koretz previously demanded a full EIR. Here are the details on the “new” version of the “house”:

• The “house” is four (4) stories and nearly 67,000 square feet (SF), including 31,000 SF of party decks (the decks alone are bigger than two night clubs).
• Construction requires moving approximately 33,000,000 pounds of dirt, which will decimate the hillside.
• Construction requires at least 10,000 vehicle trips for cement mixers, supplies deliveries and more than a hundred construction workers.
• It still looks like an enormous flying saucer perched on the top of the mountain.
• The parking garage is smaller (it’s still more than 7,000 SF), which means that our streets will be flooded with even more partiers.
• It still requires as many as 50 freeway-size cement pylons.
• It is still a full-service party and commercial entertainment complex that is not allowed in a residential area.

There is a hearing to appeal Michael H. Scott’s Building Permits on Tue, Mar 21, 2017 at 9:30 AM (201 North Figueroa Street, 9th Floor, Los Angeles, California 90012). Please join us and help us get his permits revoked!

The Building and Safety Department extended Scott’s permits longer than they should have, and even worse, after that unnecessary extension expired, they issued construction permits even though the application was expired. At the hearing, we have a chance to get his illegitimate permits revoked, but it will only happen if we stand together, again. We must tell the Building and Safety Commission that Michael Scott cannot use illegitimate permits, he must do an environmental review and he must respect his neighbors. Billionaires should not get special treatment.

Michael Scott continues to ignore the community, refuses to meet with us and he still won’t share any details about his “house”. He has already started to decimate the hillside (see image), despite tremendous opposition. We must rally together and stop this monstrous house from being forced on our neighborhood.

In Solidarity – Save Our Hillsides

P.S. Please email the Los Angeles Building and Safety Commission and tell them how you feel.

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Save Our Hillsides from Michael Scott’s Community Crushing Giga Mansion

Wed, Feb 24, 2016 We have just learned that a hearing has been scheduled for billionaire trailer park slumlord Michael Scott’s proposed 139,000 square foot giga-mansion at 10101 Angelo View Drive. Without giving the community any notice, the City and Michael Scott have scheduled a hearing on March 1st at 9:30 am at the Building and Safety Commission.

It is VITAL that we all attend this hearing to express our opposition to this gargantuan project, which will decimate our community. Never has there been such an enormous project proposed in the hillsides; the construction will turn our neighborhood into a commercial construction site for at least five years. Once this party palace opens for business, we can expect the same type of activity you find on Hollywood Boulevard. We cannot allow this project to go forward.

We have started a petition against 10101 Angelo View Drive. Click below to sign the petition and send a message that you don’t want this disaster in our neighborhood. Please send the petition to everyone you can and ask them to sign as well.

20 Facts About 10101 Angelo View Drive
Michael Hume Scott, DBA: Angelo View Associates LLC

Thu, Mar 9, 2017 – The MHPHOA would like to respectfully remind Hart | King Law, Dowdall Law Offices, and all other “culpable” attorneys representing mobile home park owners and practicing law in the State of California, you do have a Rules of Professional Conduct that you must adhere to. If you violate these Rules of Professional Conduct, you may be subject to disbarment.

California is the only state in the nation with independent professional judges dedicated to ruling on attorney discipline cases. The State Bar of California investigates complaints of attorney misconduct. If the State Bar determines that an attorney’s actions involve probable misconduct, formal charges are filed with the State Bar Court by the bar’s prosecutors (Office of Chief Trial Counsel).

The independent State Bar Court hears the charges and has the power to recommend that the California Supreme Court suspend or disbar attorneys found to have committed acts of professional misconduct or convicted of serious crimes.

Also, it can temporarily remove lawyers from the practice of law when they are deemed to pose a substantial threat of harm to clients or the public.
The State Bar Court of California

What is Moral Turpitude

Moral Turpitude is a phrase used in criminal law to describe conduct that is considered contrary to community standards of justice, honesty, or good morals. Turpitude means a corrupt, depraved, degenerate act or practice. Moral turpitude generally refers to conduct that shocks the public conscience.

Disbarment – California Business and Professions Codes §6106 and §6107

• 6106. The commission of any act involving moral turpitude, dishonesty or corruption, whether the act is committed in the course of his relations as an attorney or otherwise, and whether the act is a felony or misdemeanor or not, constitutes a cause for disbarment or suspension.

  If the act constitutes a felony or misdemeanor, conviction thereof in a criminal proceeding is not a condition precedent to disbarment or suspension from practice therefor.

• 6107. The proceedings to disbar or suspend an attorney, on grounds other than the conviction of a felony or misdemeanor, involving moral turpitude, may be taken by the court for the matters within its knowledge, or may be taken upon the information of another.
  California Business and Professions Code Section 6100-6117

CIMT – Crimes Involving Moral Turpitude

Crimes Against Property: Accessory Before the Fact in Uttering a Forged Instrument, Attempted Fraud, Conspiracy to Commit Forgery, Encumbering Mortgaged Property with Intent to Defraud, Extortion, Forgery, Making False Statements of Financial Condition, Malicious Trespass, Obtaining Money by False Pretenses, Uttering a Forged Instrument

Wed, Mar 8, 2017 – Do you live in a mobile home park with 50 or more spaces? Are you without a trained and qualified Park Manager? Do you know what to do in case of an emergency? Have you tested the mobile home park emergency contact number and/or pager number? Who do you call in case of a utility emergency e.g. electrical, gas, sewage? Who is responsible for executing the Emergency Preparedness Plans for the park e.g. a natural disaster?

If you live in a mobile home park owned by a Kort & Scott company and managed by Sierra Corporate Management, and you are without a Park Manager, you should file an online complaint or a written complaint today with the California Department of Housing and Community Development (HCD). Not having a qualified Park Manager is a risk to the health and safety of the residents.

California Health and Safety Code Section 18603.(a)

In every park there shall be a person available by telephonic or like means, including telephones, cellular phones, telephone answering machines, answering services or pagers, or in person who shall be responsible for, and who shall reasonably respond in a timely manner to emergencies concerning, the operation and maintenance of the park. In every park with 50 or more units, that person or his or her designee shall reside in the park, have knowledge of emergency procedures relative to utility systems and common facilities under the ownership and control of the owner of the park, and shall be familiar with the emergency preparedness plans for the park.
California Health and Safety Code Section 18603

Sierra Mobile Home Park – No Manager Living Within MHP

Note: The below is a timeline of HCD Violations for Sierra Mobile Home Park located at 18204 Soledad Canyon Road, Santa Clarita, California 91387. The park was purchased by a Kort & Scott company in Oct 2015 and is managed by Sierra Corporate Management (a Kort & Scott company).

Fri, Dec 4, 2015 – Inspections Results or Information: Failure to comply with this correction order will be considered willful violation of the Mobilehome Parks Act. Any willful violation is a misdemeanor under Health and Safety Code section 18700.

The complaint states that the 76 space MHP has no available Manager on site to manage, clean and/or maintain grounds.

Upon today’s inspection it was noted that there is no Manager living within the MHP. This is a violation of the Health and Safety Codes section 18603. The Owner/Operator of the MHP is directed to provide a Manager that resides within the MHP as required.

Wed, Feb 3, 2016 – The Attorney’s for the Owner/Operator of the MHP notified the Department on January 29, 2016, that there is now a responsible person [Contact Name] that resides within the MHP in compliance with this violation report. Today’s investigation revealed the following.

[Contact Name] was contacted at her residence space #** within the MHP, she was questioned about being the onsite attendant in accordance with regulations. [Contact Name] stated that she is not the attendant and/or representative responsible for the operation and maintenance of the MHP, nor does she know of any such individual residing within the MHP as the required attendant.

Tue, Feb 16, 2016 – Inspections Results or Information: Failure to comply with this correction order will be considered willful violation of the Mobilehome Parks Act. Any willful violation is a misdemeanor under Health and Safety Code section 18700.

Upon today’s inspection it was noted that the emergency contact posted on the MHP’s Office [Contact Name] (714) 255-3518, is not a valid phone number. Also, there was no other information listed to contact [Contact Name] within the MHP. The Attorney for the MHP provided information via email that [Contact Name] lived in space #**. An attempt was made to contact [Contact Name] at space #** but there was no answer.

The Owner/Operator of the MHP has failed to comply with this violation report and is directed to provide an individual residing within the MHP as the required attendant.

This complaint shall be forwarded to the State Administrator for further enforcement.

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Sierra Mobile Home Park

• Address: 18204 Soledad Canyon Road, Santa Clarita, California 91387
• County: Los Angeles
• Phone: 661-252-3028
• Spaces: 74
• Type: 55+
• 2017 Space Rent: $650
• Purchased: Oct 2015, Amount: $3,270,000
  Loan Type: Fannie Mae ARM, Chad Thomas Hagwood
• Management: Sierra Corporate Management
• DBA: Sierra GP LLC, Sierra MHP Associates LP
• DBA Filing: Sep 2015

Sun, Mar 5, 2017 – Have you ever wondered how Kort & Scott are able to execute their egregious predatory business model? It all starts with the employees of the companies owned by Kort & Scott. First and foremost are the employees of Sierra Corporate Management (SCM).

We maintain a database of employee names obtained from online documents and other publicly available sources. As we move closer to achieving our objectives, we expect those employees who are culpable of executing the Kort & Scott predatory business model to be held accountable for their actions – past, present, and future.

One particular employee, Sarah Nguyen, who has been with Kort & Scott for seventeen (17) years, appears to be a key player in the day to day operations of Sierra Corporate Management and the Kort & Scott predatory business model. Sarah Nguyen is the Executive Assistant to the President, Administrative Office Coordinator, and main point of contact for the mobile home park managers.

Sarah Nguyen joined SCM in March 2000 and is currently the Executive Assistant to the President, as well as an Administrative Office Coordinator. She also works closely with other departments and with senior staff to ensure that SCM’s mission is carried out effectively.
Sierra Corporate Management – Our Team – Sarah Nguyen

In addition to Sarah Nguyen, there are many others who are culpable in executing the Kort & Scott predatory business model including but not limited to: Richard K. Pinel (President), Abraham (Abe) Arrigotti (Past President), Drita Svetlana Bronkey (Past Sales Manager), Ricky R. Flandez (Controller), Alexander H. Segal (Director of Acquisitions), Jennifer Kay (Human Resources Manager), Shawn Bui (Property Management Accountant), Patricia Magdaleno (Regional Manager), and Trang Nguyen (Accounts Payable Specialist).

Sat, Mar 4, 2017 – On Thu, Mar 2, 2017, residents of Knolls Lodge Mobile Home Park and Knolls Manor, both owned by a Kort & Scott Company, received notification that Visitor Parking Rules were changing. According to the letter, beginning Mon, Mar 6, 2017, Visitor Parking will no longer be available after 5:00 PM.

March 2, 2017

ALL RESIDENTS,

This notice is to inform all residents of VISITOR PARKING RULES. As of March 6, 2017 all visitors using the visitor spaces must come to the office and get a VISITOR PARKING PERMIT and displayed in plain view. If a permit is not displayed in vehicle, vehicle will be towed away at owners expense.

Permits will only be issued during regular business hours, between 8:30am and 5pm, M-F. Permits MUST be returned to office no later than 5pm same day it was issued.

We expect your full cooperation in this matter, and we will follow up intermittently to ensure compliance in the above stated matter.

Please contact our office at 310-326-1000 Monday-Friday 8:30 am-5 pm if you should have any questions or concerns.

Thank you
Knolls Lodge and Manor Management

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Knolls Lodge Mobile Home Park

• Address: 23701 South Western Avenue, Torrance, California 90501
• County: Los Angeles
• Phone: 310-326-1000
• Spaces: 257
• Type: Family
• 2017 Space Rent: $1,450
• Refinanced: Jun 2005, Amount: $94,700,000, 4/6 MHP Package
  Loan Type: Fannie Mae FRM, Chad Thomas Hagwood
• Refinanced: Dec 2013, Amount: $158,000,000, 4/8 MHP Package
  Loan Type: Fannie Mae FRM, Chad Thomas Hagwood
• Management: Sierra Corporate Management
• DBA: Knolls Lodge GP Corp, Knolls Lodge LP
• DBA Filing: Jan 2002, Oct 2002

Knolls Manor

• Address: 24200 Walnut Street, Torrance, California 90501
• County: Los Angeles
• Phone: 310-326-1000
• Spaces: 73
• Type: Family
• 2017 Space Rent: $1,735
• Refinanced: Jun 2005, Amount: $94,700,000, 5/6 MHP Package
  Loan Type: Fannie Mae FRM, Chad Thomas Hagwood
• Refinanced: Dec 2013, Amount: $158,000,000, 5/8 MHP Package
  Loan Type: Fannie Mae FRM, Chad Thomas Hagwood
• Management: Sierra Corporate Management
• DBA: Knolls Lodge GP Corp, Knolls Lodge LP
• DBA Filing: Jan 2002, Oct 2002

Fri, Mar 3, 2017 – The MHPHOA.com website launched on Thu, Nov 5, 2015 and during the time period of Thu, Nov 5, 2015 thru Tue, Feb 28, 2017 the MHPHOA.com website recorded the following analytical information.

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Thu, Mar 2, 2017 – From the 2017 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))
2017 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.

Wed, Mar 1, 2017 – Upon further review of the initial documents posted online regarding the new Civil Lawsuit filed by the residents of Reseda Mobile Homes, we have discovered that the previous park owners, Reseda Mobile Associates LP, are also listed as Defendants in the case filing. Reseda Mobile Homes was previously owned by a DBA in the Fischer Investment Group (FIG) portfolio which is owned by Daniel C. Fischer – it was sold to a Kort & Scott Company in Mar 2014.

Online records indicate that Daniel C. Fischer was also the previous owner of Friendly Village Mobile Home Park in Long Beach, California. Both mobile home parks were sold to Kort & Scott companies and have a history of resident complaints and litigation proceedings. Both have active Civil Lawsuits against the Kort & Scott companies that own their parks.

Friendly Village Mobile Home Park
5450 N Paramount Blvd, Long Beach, CA 90805

• 2005 Nov – Sold for $14,400,000
  Buyer: Friendly Village Mobile Associates LP (a Daniel C. Fischer Company)
• 2014 Feb – Sold for $23,000,000
  Buyer: Friendly Village MHP Associates LP (a Kort & Scott Company)
• 2015 Aug – Civil Lawsuit Filed by Residents
  Case Number: BC591412
  Plaintiffs 1-XXX vs. Friendly Village of Long Beach (a Kort & Scott Company)
  Status: In Progress

Reseda Mobile Homes
6545 Wilbur Ave, Reseda, CA 91335

• 2006 Nov – Sold for Unknown Amount
  Buyer: Reseda Mobile Associates LP (a Daniel C. Fischer Company)
• 2007 Jul – Civil Lawsuit Filed by Residents
  Case Number: BC375116
  Plaintiffs 1-75 vs. Reseda Mobile Associates LP (a Daniel C. Fischer Company)
  Status: Researching
• 2014 Mar – Sold for $13,100,000
  Buyer: Reseda MHP Associates LP (a Kort & Scott Company)
• 2017 Feb – Civil Lawsuit Filed by Residents
  Case Number: LC105272
  Plaintiffs 1-92 vs. Reseda MHP Associates LP (a Kort & Scott Company)
  Sierra Corporate Management (a Kort & Scott Company)
  Reseda Mobile Associates LP (a Daniel C. Fischer Company)
  DOES 1 through 50
  Status: Case Management Hearing on Mon, Jul 17, 2017

Research Questions – Coincidence or Complicity?

Are the DBA naming conventions coincidental? Are the major Civil Lawsuits filed by residents not long after a mobile home park sale coincidental? Are these mobile home parks being “flipped” amongst a particular group of corporate predators?

According to online records, Daniel C. Fischer appears to have been the Acquisitions Director for Kort & Scott Financial Group (KSFG). Did you know that Daniel C. Fischer was the President of the WMA during the 2015/2016 years? Are you noticing any patterns? Is it all just a coincidence?

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Kort & Scott DBAs Being Sued by Residents of Reseda Mobile Homes

Sat, Feb 25, 2017 – In Mar 2014, Kort & Scott purchased Reseda Mobile Homes (108 Spaces) located at 6545 Wilbur Avenue, Reseda, California 91335, for $13.1MM from Daniel C. Fischer (Reseda Mobile Associates LP).

On Thu, Feb 16, 2017, 90+ residents from Reseda Mobile Homes filed a Civil Lawsuit (Case No: LC105272) against the Kort & Scott companies that own the park including Sierra Corporate Management. James C. Allen of ASK Law Group is the attorney/law firm representing the residents.

This is a new Civil Lawsuit filing and there are no documents available online yet. The MHPHOA will be monitoring the progress of this lawsuit and will post additional information as it becomes available.

Congratulations to the residents of Reseda Mobile Homes and kudos to the boots on the ground group who helped make this happen!

Notice of Intention to Commence Action

Dear Parkowner(s)/Management:

I write to you on my own behalf and on behalf of other current and former homeowners and residents of Reseda Mobile Homes (hereinafter “the Park”), located at 6545 Wilbur Ave., Reseda, CA 91335. We have retained the law firm of Allen, Semelsberger & Kaelin, LLP (ASK Law Group) to represent us regarding the maintenance of the Park. This letter is written on the firm’s letterhead in order to provide you with our attorneys’ contact information should you have any questions regarding this correspondence. To that end, please direct any questions you may have regarding this notice to our attorneys, who can be reached at the address and telephone number listed above.

California Civil Code section 798.84 requires that at least thirty (30) days prior to taking legal action against you, at least one homeowner on behalf of the residents, must send this notice. This notice lists the problems I and/or other homeowners and residents have had in the Park and the remedies we seek. This notice includes problems that at least one homeowner/resident has suffered in the last four years, and lists the potential legal remedies we may have.

Park maintenance problems, other inadequate Park conditions, management violations, and reduction or failure to provide services include, but are not limited to:

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Civil Lawsuits Against Kort & Scott Companies
Ten (10) Civil Lawsuits – Four (4) Civil Lawsuits in Progress