California MHP News

Fri, Apr 21, 2017 – Two limited partnerships linked to Kort & Scott Financial Group, an Anaheim based mobile home developer, acquired a 249 unit apartment complex in Norwalk, California for $69.5 million, according to property records and Real Capital Analytics. The seller, IMT Real Estate, purchased the property, at 11615 Firestone Boulevard for $42.3 million in 2011.

The complex, dubbed the IMT MetroPointe, dates back to 1989 and was most recently renovated in 2007. It spans about 238,500 square feet and has amenities that include a pool, spa, fitness room, basketball court, and common lounges.
The Real Deal – Los Angeles Real Estate News

MetroPointe Apartments
11615 Firestone Boulevard, Norwalk, California 90650

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IMT Capital Continues to Divest Apartments

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

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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.

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

Mon, Apr 17, 2017 Updates – The Wed, Apr 19, 2017 hearing has been postponed to Mon, May 1, 2017 at 10:00 AM at Los Angeles City Hall (200 North Spring Street, 3rd Floor, Los Angeles, California 90012).

Note: Michael H. Scott is the one half of Kort & Scott dba Sierra Corporate Management and 170+ other companies.

Fri, Apr 7, 2017 – Dear Neighbors, Friends and Supporters,

On Mon, May 1, 2017 at 10:00 AM at Los Angeles City Hall, the City Council Meeting will likely be our last chance to stop Michael Scott’s enormous commercial entertainment complex. As we all remember, Michael Scott reneged on his promise to do an EIR (full environmental study) and instead performed an MND (a watered-down study) on his prior party palace, which Councilmember Paul Koretz opposed and our community resoundingly defeated. INEXPLICABLY, the City is not requiring any environmental review on his new 67,000 square foot party palace. This is unacceptable and we have appealed this issue to the Los Angeles City Council.

At the hearing on Mon, May 1, 2017, the City Council will decide whether or not to revoke Michael Scott’s illegitimate permits, require him to do an environmental review and mandate that he abides by the rules, including the current laws regarding excessive and unsafe development in our hillsides. Our community must prevail.

We have reserved thirty (30) parking spaces at the Los Angeles Times parking garage located at 213 South Spring Street and will be on a first-come first-serve basis.

Here are the three things we all need to do to prevail on Mon, May 1, 2017 at 10:00 AM:

1. Attend the City Council Hearing – Mon, May 1, 2017 at 10:00 AM at L.A. City Hall (200 North Spring Street, 3rd Floor, Los Angeles, California 90012) and respond to this email as your RSVP!
2. Email Councilmember Koretz and other members of the City Council and tell them Michael Scott must do an environmental review and that his permits must be revoked. (See The Issues for City Council Below)
3. Call Councilmember Koretz and other members of the City Council and tell them Michael Scott must do environmental review and that his permits must be revoked. (Contact Details)

This could be the last chance we have to stop Michael Scott's commercial entertainment complex that, if built, will destroy our quality of life with non-stop parties, sound echoing throughout the canyon, inebriated drivers in our streets and years of construction.

Join us. Join your neighbors. Stand together to preserve the serenity and safety of our community. Share this email with your friends, family and neighbors and ask them to join us in this vitally important fight.

We have launched a GoFundMe page to help defray legal and technical fees incurred in the course of our continued appeals. Please visit Save Our Hillsides (https://www.gofundme.com/SaveOurHillsides), with thanks for your continued partnership.

The Issues for City Council

• Michael Scott promised, in writing, to do an EIR, but he reneged and submitted a woefully deficient MND. Now he’s doing a new project that has significant impacts but isn’t doing any environmental review. THAT’S WRONG!
• Michael Scott’s previous MND identified impacts not associated with his Haul Route that are still relevant to the current project. He must do environmental review to study those impacts.
• His current, illegitimately granted permits must be revoked and he must do environmental review to reveal the true impacts of his entertainment complex.
• His construction has already begun and he is already destroying our hillsides, and a documented wildlife corridor. He MUST address these impacts in an environmental study!

Wed, Apr 12, 2017 – Molds release tiny spores and even smaller particles that travel through the air. Everyone inhales some mold every day without apparent harm; however, molds can cause allergy, irritation or inflammation, or rarely, infection. Allergic reactions are the most well-recognized responses to inhaling mold spores, and some people are more sensitive to the effects of dampness mold. However, it is becoming increasingly clear that individuals not sensitized to mold may experience health effects.

We know that dampness and mold cause health effects both in allergic and non-allergic people. If you can see mold, water damage, or moisture, or smell mold, there is at least some increased health risk. The more extensive or severe the dampness and mold, the greater the risk of health effects. We do not know whether specific types of mold are responsible, or whether bacteria or chemical emissions related to dampness also cause some of the health problems.
California Department of Public Health (CDPH)

California Mobile Home Owner Tips

Ants Maintenance Mold Mold and Health Rodents Sewage Spill

Tue, Apr 11, 2017 – If you own a mobile home in a Kort & Scott Financial Group (KSFG) dba Sierra Corporate Management (SCM) managed and/or owned mobile home park, you may now find yourself stuck there. Your monthly space rent and utilities have probably risen to the point where you cannot afford to live there anymore but, you cannot afford to move either. Along with rising rents, there is a good chance that the quality of life has diminished in your park and you don’t know what to do – you feel trapped. You’re in what is referred to as a “Catch 22 Situation”.

You are now in a losing proposition. Your rent will continue to increase, probably at a minimum of 6.0% per year. Your water, sewer and trash utilities will continue to increase. The value of your mobile home will continue to decrease. And usually, the value of the land increases during this process. This is a win/lose situation – with YOU, the homeowner, being the loser.

At this stage you have a handful of options available to you. If Kort & Scott recently purchased your park, this writer STRONGLY suggests that you sell your mobile home and GET OUT NOW before you’re trapped in there and cannot sell your home.

Mon, Apr 10, 2017 Updates – Residents of Corona La Linda attended their forty-fourth (44) City Council Meeting on Wed, Apr 5, 2017. The City Council have decided to defend Kort & Scott’s property rights and are suggesting the residents consider the most recent lease offers presented on Thu, Mar 30, 2017.

One of the City Council Members informed the residents that they must sign the lease by Mon, Apr 10, 2017 or the offer is off the table. The residents received their lease offers on Thu, Mar, 30, 2017 and have thirty (30) days to accept or reject the lease offer (Civil Code §798.17(b)(3)). Why would a City Council Member tell the residents that they only have until Mon, Apr 10, 2017? Something is amiss.

During the City Council Meeting, Mr. Eugene Montanez mentioned that he was going to be meeting with the residents of Corona La Linda MHP on Sat, Apr 8, 2017 to discuss the lease terms. The residents held an emergency CLLHOA meeting on Thu, Apr 6, 2017 and took a vote, they do not want to meet with Mr. Montanez after his comments at the recent City Council Meeting and the resident meeting was cancelled. The residents are now preparing to pursue this further with counsel and potentially with state officials.

Proposed Escalated Annual Rent Increases

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, Apr 7, 2017 – The MHPHOA have recently received a number of requests from various residents in mobile home parks owned by Kort & Scott and managed by Sierra Corporate Management inquiring about a $2.00 HCD Fee that appears on their Rent Statement once every year.

According to California Health and Safety Code §18502(c)(2) and §18502(c)(3), this $2.00 charge is one-half of the $4.00 HCD MPM Fee which is an authorized pass-through.

CHAPTER 4. Permits and Fees

• Health and Safety Code – HSC
  • DIVISION 13. HOUSING [17000 - 19997]
    (Division 13 enacted by Stats. 1939, Ch. 60.)
    • PART 2.1. MOBILEHOME PARKS ACT [18200 - 18700]
      (Part 2.1 added by Stats. 1967, Ch. 1056.)
• CHAPTER 4. Permits and Fees [18500 - 18518]
  (Chapter 4 added by Stats. 1967, Ch. 1056.)

California Health and Safety Code §18502

Fees as applicable shall be submitted for permits, as follows:

1. Fees for a permit to conduct any construction subject to this part as determined by the schedule of fees adopted by the department.
2. Plan checking fees equal to one-half of the construction, plumbing, mechanical, and electrical permit fees, except that the minimum fee shall be ten dollars ($10).
3. 1. An annual operating permit fee of one hundred forty dollars ($140) and an additional seven dollars ($7) per lot.
   2. An additional annual fee of four dollars ($4) per lot shall be paid to the department or the local enforcement agency, as appropriate, at the time of payment of the annual operating fee. All revenues derived from this fee shall be used exclusively for the inspection of mobilehome parks and mobilehomes to determine compliance with the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200)) and any regulations adopted pursuant to the act.
   3. The Legislature hereby finds and declares that the health and safety of mobilehome park occupants are matters of public interest and concern and that the fee paid pursuant to paragraph (2) shall be used exclusively for the inspection of mobilehome parks and mobilehomes to ensure that the living conditions of mobilehome park occupants meet the health and safety standards of this part and the regulations adopted pursuant thereto. Therefore, notwithstanding any other law or local ordinance, rule, regulation, or initiative measure to the contrary, the holder of the permit to operate the mobilehome park shall be entitled to directly charge one-half of the per lot additional annual fee specified herein to each homeowner, as defined in Section 798.9 of the Civil Code. In that event, the holder of the permit to operate the mobilehome park shall be entitled to directly charge each homeowner for one-half of the per lot additional annual fee at the next billing for the rent and other charges immediately following the payment of the additional fee to the department or local enforcement agency.
4. Change in name fee or transfer of ownership or possession fee of ten dollars ($10).
5. Duplicate permit fee or amended permit fee of ten dollars ($10).
6. This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.

(Amended (as added by Stats. 2009, Ch. 341, Sec. 8) by Stats. 2010, Ch. 314, Sec. 4. Effective January 1, 2011. Repealed as of January 1, 2019, by its own provisions. See later operative version, as amended by Sec. 5 of Ch. 314.)

Thu, Apr 6, 2017 – The MHPHOA are currently developing a database of Resident Owned Communities (ROC) aka Resident Owned Parks (ROP) in the State of California. We welcome input from our audience regarding additions and/or corrections to the data currently available. If you’d like to contribute information to the database, please contact the MHPHOA.

Resident Ownership of Manufactured Home Parks

Resident ownership of MH parks is a very positive goal, for many reasons. Properly done, converting the park where you live to resident ownership:
GSMOL – Buying Your Park

• Stabilizes your monthly housing expenses over the long term.
• Secures the value of your homes.
• Avoids the consequences if local rent control is ever lost or compromised.
• Makes your homes easier to sell.
• Builds your park into a real community and improves its quality of life.
• Protects your park from ever being closed or changed to another use.

What is a Resident Owned Community (ROC)?

About two percent of manufactured home communities in the United States are owned by their homeowners as either a subdivision, condo or co-op.

In subdivisions and condos, homeowners own their individual lot and have common ownership of community facilities. In a co-op, homeowners own a share in the co-op which owns the community for the benefit of its shareholders. Both provide homeowners with control over the land under their homes.
ROC USA

Mobilehome Park Rehabilitation and Resident Ownership Program (MPRROP)

Purpose: Finance the preservation of affordable mobilehome parks by conversion to ownership or control by resident organizations, nonprofit housing sponsors, or local public agencies.

Eligible Activities: Purchase (conversion) of a mobilehome park by a resident organization, nonprofit entity or local public agency; rehabilitation or relocation of a purchased park; purchase by a low income resident of a share or space in a converted park or to pay for the cost to repair low income resident’s mobilehomes.

Eligible Applicants: Mobilehome park resident organizations, nonprofit entities, and local public agencies. Low income residents of converted parks apply for individual loans to the entity that has purchased the park.
California Department of Housing and Community Development (HCD)

Wed, Apr 5, 2017 – An online contact request was submitted to the MHPHOA for an all inclusive post regarding the Sierra Corporate Management long-term lease agreements. Here is a repository of links to the data we have available which make up the various components of the long-term lease agreements traps being offered to residents by the Kort & Scott companies (DBAs) that own the mobile home parks.

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1. Sierra Corporate Management – Long-Term Lease Agreements

Be very careful when “considering” signing any long-term lease with Sierra Corporate Management (SCM). The standard 15, 20 or 25 year SCM long-term lease agreement may contain a sentence that locks you into a minimum 8.0%, 7.0% or 6.0% yearly space rent increase whether the cost of living (CPI) justifies it or not.

The first paragraph of the Sierra Corporate Management Lease Agreement may read something like this, it is in 12PT ALL CAPS, and should be FAIR WARNING that you are about to give up your homeowners rights if you sign the lease.

This agreement will be exempt from any ordinance, rule, regulation or initiative measure adopted by any Governmental entity which establishes a maximum amount that a landlord may charge a tenant for rent.

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2. Sierra Corporate Management – Long-Term Lease Agreement Sample

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3. SCM Lease Incentives – $1,000.00 Paid to You Directly in a Check!

The question of “How much is a lease worth to KSFG/SCM?” has arisen many times. We’ve crunched the raw data and have added a new column to our SCM Space Rent Calculator showing your "Lease Value" or what you will pay for your Space Rent for the duration of your lease. The Lease Value also gives us an all-in starting point for the total value of the Lease Receivables.

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4. Sierra Corporate Management – Unconscionable MHP Leases

DO NOT SIGN a Kort & Scott Financial Group (KSFG) dba Sierra Corporate Management (SCM) Lease Agreement until you have sought professional and/or legal advice. The MHPHOA believe the long-term lease agreements being offered by Kort & Scott Financial Group (KSFG) dba Sierra Corporate Management (SCM) are Unconscionable Contracts aka Unlawful Contracts. These leases are overly harsh, unduly oppressive, unreasonably favorable and so one-sided as to shock the public conscience.

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5. Sierra Corporate Management – Forbearance Agreements

DO NOT SIGN a Kort & Scott Financial Group (KSFG) dba Sierra Corporate Management (SCM) Forbearance Agreement until you have sought professional and/or legal advice. Signing an SCM Forbearance Agreement waives your homeowner’s rights and releases KSFG/SCM from any and all past, present, and/or future liabilities, claims, disputes, controversies, suits, actions, causes of action, loss, debt, damages or injuries (collectively referred to as “claims”), matured or contingent, liquidated or unliquidated, known and unknown, suspected or unsuspected, which TENANT may have against PARK.

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6. SCM Space Rent Specials and Addendum Clauses

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 a separately attached Lease Addendum?

Tue, Apr 4, 2017 Updates – On Thu, Mar 30, 2017 the residents of Corona La Linda Mobile Home Park received a letter from Sierra Corporate Management proposing the following long-term lease agreements.

I am pleased to announce, after much negotiations the following new lease offer to those who prefer a long-term outlook on their possible future rent increases.

Three long term leases will be offered:

• 15-year Long Term Lease, with a 7% increase annually.
• 20-year Long Term Lease, with a 6% increase annually.
• 25-year Long Term Lease, with an escalated rent increase annually as follows:
  • 2017 – 3.50% or CPI, whichever is greater.
  • 2018 – 4.00% or CPI, whichever is greater.
  • 2019 – 4.25% or CPI, whichever is greater.
  • 2020 – 4.75% or CPI, whichever is greater.
  • 2021 – 5.00% or CPI, whichever is greater.
  • Each year thereafter 5.00% or CPI, whichever is greater.

In addition to this offer, please note that there are no pass-through costs as part of the 25-year lease. Also on all long-term leases, there is a 60-day option to opt out, if you need to break your lease and relocate your home, or sell your home to another person. Please also note that this offer is based on your current rent. Any increase notifications prior to your acceptance of the long-term lease will result in a higher starting base rent, please consider all options.

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Corona Mobile Home Parks Might Get Voluntary Rent Control

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

Mon, Apr 3, 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.

Sun, Apr 2, 2017 – In Mar 2017, residents of Vista Diablo Mobile Estates located at 2901 Somersville Road, Antioch, California 94509, were given written notification by Sierra Corporate Management (SCM) of an upcoming mobile home park inspection by Contra Costa County which was allegedly triggered by HCD complaints.

The notification from SCM opens with the following…

RE: County Inspections – Very Important!!!
Please Read All!!! Do Not Ignore!!!

Please CLEAN your spaces THOROUGHLY ASAP – OR – YOU WILL
RISK BEING FINED! $$$

Coming Soon: The County of Contra Costa will be conducting site
inspections and any and ALL violations found will be cited and YOU,
the Resident, WILL BE FINED if found in violation.

The residents of Vista Diablo have a growing GSMOL Chapter 1461 and are a sharp group of folks, they immediately questioned the Park Manager about the notification. The GSMOL Chapter President performed due diligence and contacted both the Contra Costa County Housing Department and the HCD. Neither agency had any knowledge of an upcoming inspection of the mobile home park.

The GSMOL Chapter President’s News Bulletin reads…

Date: March 31, 2017

The park manager was instructed by Sierra Corporate Management to send out notices to the homeowners that Contra Costa County would be making an inspection of the homes in Vista Diablo Mobile Estates. The inspection was coached in terms of California Department of Housing and Community Development being given complaints. No date for the inspection was given but did say that fines for non-compliance would be enforced.

I spoke to the park manager about the source of the notice. She explained that she was notified by Sierra Corporate Management by a copy of the relevant HCD law and of the Notice of County Inspection. She did not seem to know of any details but said she was checking.

Most people who are familiar with local governments know that the county and local cities are very separate. The incorporated areas like the City of Antioch provide services to its community members and residents. Contra Costa County provides services to its community members and residents in the unincorporated areas. Only in a few incidents such as public health do they overlap. HOUSING INSPECTION IN OUR AREA IS NOT ONE OF THEM.

I called the Contra Costa County housing inspection department to find out if indeed it was planning to do an inspection of Vista Diablo. I was directed to Mr. Tom Brooks, the housing inspector, I believe, that covers the East county area. He said he had no knowledge of a proposed county inspection of our park. He added that such an inspection would be done by the City of Antioch staff—not the county.

I called and spoke with Mr. Michael Bartlett, Inspector for the California Department of Housing and Community Development. Vista Diablo is in his area of jurisdiction and I had met him before and had an extensive talk about what he and his agency did. When asked about an inspection of our park triggered by the HCD, he said he had no knowledge of such an inspection. Further, he said that Contra Costa County recently gave up jurisdiction over all its mobile home parks to the HCD.

It is very clear that the threat of a County Inspection of Vista Diablo is a scare harassment tactic by Sierra Corporate Management.

NOTE: This does NOT absolve your responsibility for complying with the Park Rules & Regulations.

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Vista Diablo Mobile Estates

• Address: 2901 Somersville Road, Antioch, California 94509
• County: Contra Costa
• Phone: 925-757-9321
• Spaces: 150
• Type: 55+
• 2017 Space Rent: $1,155
• Refinanced: Jun 2016, Amount: $16,000,000
  Loan Type: Fannie Mae SARM, Chad Thomas Hagwood
• Management: Sierra Corporate Management
• DBA: Vista Diablo GP LLC, Vista Diablo Mobile Estates LLC, Vista Diablo Mobile Estates LP
• DBA Filing: Sep 1995, Jan 2005