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The possibility of the park owner's option to close the park,
or sell to a developer, has been brought
up by the applicant and some park residents. As stated by the park owner's
representative in the May 2007 Tenant Impact Report, Section 3, Park Owner's Rights Upon
Conversion, the owner, "has the right
to terminate all existing tenancies and require the Residents to vacate the
property and go out of business, or change the use of the property, providing all
applicable laws are followed."
For this type of conversion, the state law gives our city the
authority to require relocation benefits in the event the park is converted to
another use or closed (see state and city codes below).
Realistically, there are several reasons that the park owner
would probably not do either. First, according to law,
the owner would have significant expense in relocating all residents.
For instance, the $12,000 relocation benefit specified for a
double-wide mobile home when the code was adopted in 1989 has increased today to to nearly $25,000, or
about $4 to $5 million for the owner to relocate all residents. Second,
the park owner would be giving up approximately $1 million guaranteed rental
income per year
with virtually no vacancies and with automatic rent increases each year. And
third, the city would have to cooperate in granting a zone change for another
use.
Thus, it financially would not be in the park owner's best
interest to convert the park to another use. The applicant's motivation
for mentioning this option in the Tenant Impact Report would seem to be
primarily for intimidation purposes, or to try to convince us and the government
agencies the conversion is for our benefit -- a bona fide resident
conversion. The park residents have clearly shown in a number of ways
the conversion is not for them.
The following provisions are taken from state code section
66427.4, which would apply if the park is to be converted to another use. It should be
noted the state code gives our city the authority for relocation benefits.
State Government Code Section
66427.4. (a) At the time of filing a tentative or parcel map for a
subdivision to be created from the conversion of a mobilehome park to
another use, the subdivider shall also file a report on the impact
of the conversion upon the displaced residents of the mobilehome park
to be converted. In determining the impact of the conversion on
displaced mobilehome park residents, the report shall address the
availability of adequate replacement space in mobilehome parks.
(b) The subdivider shall make a copy of the report available to
each resident of the mobilehome park at least 15 days prior to the
hearing on the map by the advisory agency or, if there is no advisory
agency, by the legislative body.
(c) The legislative body, or an advisory agency which is
authorized by local ordinance to approve, conditionally approve, or
disapprove the map, may require the subdivider to take steps to
mitigate any adverse impact of the conversion on the ability of
displaced mobilehome park residents to find adequate space in a
mobilehome park.
(d) This section establishes a minimum standard for local
regulation of conversions of mobilehome parks into other uses and
shall not prevent a local agency from enacting more stringent
measures.
(e)
This section shall not be applicable to a subdivision which is
created from the conversion of a rental mobilehome park to resident
ownership.
The following provisions are taken from the Palm Springs
Municipal Code covering rent control, which would apply if the park is to be
converted to another use:
Palm
Springs Municipal Code
4.08.130 Mobile home park conversions—Relocation benefits.
(a) Any mobile home owner who is a mobile home park tenant shall
be entitled to relocation benefits in the event that said tenant is evicted by
virtue of an owner undertaking a change of use. “Change of use” means a use of a
mobile home park for a purpose other than the rental, or holding out for rent,
of two or more mobile home sites to accommodate mobile homes for human
habitation. “Change of use” includes but is not limited to, a change of the park
or any portion thereof to a condominium, stock cooperative, or any form of
ownership wherein spaces within the park are to be sold, and the cessation of
use of all or a portion of the park, whether immediately or on a gradual basis,
or the closure of the park.
(b) Any eviction pursuant to a plan to terminate a mobile
home space rental shall require:
(1) Eighteen months’ notice of the change of use and notice
to all new potential residents that prior notice has been given;
(2) Payment by the landlord of the following relocation
benefits: mobile home owners who move their mobile homes shall receive six
thousand dollars in relocation benefits for spaces occupied by single-wide
mobile homes, twelve thousand in relocation benefits for spaces occupied by
doublewide mobile homes, and fifteen thousand in relocation benefits for spaces
occupied by triple-wide mobile homes. Said sums shall be adjusted by the
percentage increase in the Consumer Price Index since January, 1989. Mobile home
owners who do not move their mobile home shall be entitled to the “in-place”
value of their mobile homes.
“In-place value” is defined as the value of such mobile home if it
were located in a comparable mobile home park. The landlord and the tenant shall
each select one appraiser who is qualified to appraise the value of mobile
homes, who shall prepare and submit an appraisal of the value of the mobile
home. Each party shall bear the cost and expense of the appraiser he or she
selects. The parties shall exchange appraisals. If the difference between the
two appraisals is equal to or less than fifteen percent of the average of the
two appraisals, the value of the mobile home shall be established as the average
of the two appraisals. If the higher appraisal exceeds the lower appraisal by
more than fifteen percent, the parties shall select a third appraiser. If the
parties are unable to agree on a third appraiser, then said appraiser shall be
selected by the presiding judge of the superior court and the value shall be
determined by that third appraiser, subject to the condition that it shall not
be higher than the value set by the landlord’s appraiser nor lower than the
value set by the tenant’s appraiser.
Nothing herein shall preclude the parties from
entering into a good faith agreement as to the value of the mobile home. For the
purposes of this section a comparable park shall mean a park substantially equal
in terms of park amenities, rent, and desirability of location. A park shall not
be considered comparable if it is not within ten miles of the subject park.
(3) The plan shall adequately ensure that the
timing of the payment of relocation benefits do not cause hardship or obstacles
to the orderly relocation of a tenant. Said plan shall be deemed adequate and
valid only after approval by the rent commission. Any notice of termination of
tenancy which is made pursuant to a planned change in use shall be valid only if
it includes a copy of a valid plan.
(Measure H (part), 1990)
© Copyright © 2005. Revised:
April 08, 2009.
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