Resident curated mobile home owners news and information for residents of California Mobile Home Parks managed by Sierra Corporate Management (SCM) and owned by a Kort & Scott Financial Group (KSFG) company. The MHPHOA also provides news coverage for California Mobile Home Parks not owned by KSFG.
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Sat, May 6, 2017 –
After fighting rent increases for nearly two years, many residents of a Corona mobile home park gave up and signed new contracts that temporarily lessen the sting of rent hikes planned for the next 25 years. They accepted the new contracts after City Council members decided not to pursue rent control.
Lydia Heusner, president of Corona La Linda Mobile Home Park’s homeowners’ association, said tenants have abandoned efforts to seek a rent control ballot measure and could lose their homes to the park’s new corporate owner, Anaheim-based Kort & Scott Financial Group, when they can no longer afford the rent or are forced to sell homes at steep discounts. She said residents want to move but can’t afford the $15,000 to $35,000 cost.
Last year, Kort & Scott, doing business as Sierra Corporate Management, raised monthly space rentals from $650 to $779, or 20 percent.
Tenants had until Sunday, April 30, to sign long-term contracts with yearly increases, starting July 1, of 3.5 percent ($27.27 a month for most), 4, 4.25, 4.75 and then 5 percent for years five through 25.
We were forced to. We didn’t have any other choice, Heusner said. She said they were told those who didn’t sign would see rents increase by $79, or 10 percent, July 1 – the amount park owners had previously planned to implement this summer, along with yearly 5 percent increases afterward. They weren’t given yearly lease options.
Rich Pinel, Sierra Corporate’s vice president, described the lease as “fair and equitable” for residents and park owners. Long-term leases offer “a type of rent stabilization or budget” letting park owners and residents “anticipate future rent growth and plan accordingly,” he said by email.
However, Bruce Stanton, corporate counsel for Golden State Manufactured- Home Owners’ League, said homeowners were pressured to sign leases with “excessive” rent hikes far exceeding the cost of living and Consumer Price Index, rarely over 2 percent in 10 years. A provision entitles Sierra Corporate to a 25 percent rent increase if any part of the lease is held to be unenforceable or contrary to law, he added.
Tenants also were offered 15 or 20 year leases tied to 6 or 7 percent rent increases, Stanton wrote in an April 18 letter to the council. No business should expect a guaranteed minimum 5% increase for 25 years, he wrote.
Residents believe rising rent will stop anyone from buying, and tenants will have to sell mobile homes at a steep loss to Sierra Corporate or abandon their homes, which Heusner said would then be taken over and resold by the company.
Beginning July 1, 2021, any mobilehome or manufactured homeowner living in a mobilehome park under a rental agreement may submit a complaint for an alleged violation of the Mobilehome Residency Law. Any mobilehome or manufactured homeowner residing in a permitted mobilehome park is eligible to submit a complaint. Complaints must be submitted to HCD. HCD provides assistance to help resolve and coordinate resolution of the most severe alleged violations of the Mobilehome Residency Law.
Any mobilehome / manufactured homeowner who lives in a mobilehome park.
Any complaints for issues within mobilehome parks related to Mobilehome Residency Law violations (California Civil Code).
Common violations include illegal grounds for eviction, failure to provide proper notice of rent increases, or no written rental agreement between the park and mobilehome owner.
Complaints must be submitted to HCD. HCD provides help to resolve and coordinate resolution of the most-severe alleged violations of the Mobilehome Residency Law. Visit the Submit a Complaint webpage for details.
Fri, Nov 22, 2019 –
Kabateck LLP attorneys representing hundreds of low-income mobile home residents in Long Beach, California secured a nearly $57 million settlement, which is the largest settlement ever involving a mobile home park.
Civil Lawsuits Against Kort & Scott DBAs