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CI. f OF SAN BERNARD~"~O - REQU'-$)T FOR COUNCIL A~ -liON
F,om: Kenneth J. Henderson, Director
Subject: RENT ST ABILlZA nON -- COLLECTION
AND ANALYSIS OF DATA
Dept: Community Development
Date: September Z, 1987
Ifl/O
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Synopsis of Previous Council action:
The Mayor and Common Council has previously discussed the issue of rent stabilization,
established a Citizens Mobile Home Park Fact-Finding Committee and adopted Ordinance
Number 3805 establishing a moratorium on rents to be charged to mobile home park
tenants residing in the City.
Recommended motion:
That the Mayor and Common Council authorize and direct staff to prepare and issue a
Request for Proposals (RFP) for the purpose of retaining a consultant to survey the
economic statns of eacq tenant of every mobile home park located within 'the corporate
boundaries of the City. Further, that the Mayor and Common Council authorize and
direct the development of a memorandum of understanding between and among City,
mobile home park tenants, and mobile home park owners, whereby owners agree to
voluntarily maintain rents at rates in effect as of June 30, 1987 until said survey is
completed, properly analyzed and ready to be considered by the Mayor and Common
Council.
Contect penon: Kenneth J. Henderson
Phone:
5065
Supporting dete attached: Staff Report
Ward:
1.3and5
FUNDING REQUIREMENTS:
Amount:
N/A
Source: (ACCT. NO.)
(ACCT. DESCRIPTION)
Finance:
Council Note.:
n.a2l2
Agenda Item No,
,S,7
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CIT\.... OF SAN BERNARDIO - REQUEQ FOR COUNCIL AC1 .DN
STAFF REPORT
On August 25, 1987, the Mobile Home Park Ad Hoc Committee,
comprised of Councilmembers Flores (Chairman), Pope-Ludlam and
Minor, met to discuss issues related to the imposition of a rent
moratorium and/or rent control ordinance for mobile home parks
within the corporate boundaries of the City. Committee members.
staff and a representative from Western Mobile Home Association
also heard a presentation from a County Board of Supervisors
representative that focused on space rental assistance, outreach.
senior shared housing and a communications team.
After discussion. the Committee agreed to recommend to the Mayor
and Common Council that a Request for Proposals (RFP) be
developed and issued by staff for the purpose of determining the
scope of the problem (that is those mobile home park tenants
placed in an economically disadvantageous position by increased
rents). This would be accomplished by retaining a consultant to
survey the economic status, among other things, of each mobile
home park tenant in each mobile home park located within the
corporate boundaries of the city. The Committee further
recommended that as a show of good faith a memorandum of
understanding (MOU) be entered into between the city, tenants and
park owners that would roll back rents to those in effect as of
June 30, 1987 for the time it takes to complete and analyze the
study. The MOU would have to address those parks or spaces
governed by long-term lease agreements with annual (anniversary)
increases included in such agreements. The Committee chairman
stipulated that if a MOU could not be developed and executed in a
timely manner, he would be prepared to recommend to the Mayor and
Common Council that a rent moratorium be implemented immediately.
Traditionally, rent moratorium/control ordinances require im-
plicitly or explicitly mediation and enforcement functions.
Indeed, some draft ordinances identify the Community Development
Department as the administering entity of a rent stabilization
program with responsibility for providing staff support to a Rent
Review Board, including numerous responsibilities relating to the
acceptance and processing of rent increase applications. There
are also enforcement issues which must be addressed in the event
a mobile home park owner does not comply with a provision(s) of
the rent moratorium/control ordinance. Both mediation throuqh a
Rent Review Board and enforcement require staffinq. resources and
a budqet sufficient enouqh to effectivelv carrv out the responsi
bilities the Council is contemplatinq. In other jurisdictions
where rent moratorium/control ordinances are in effect, the
general or CDBG funds are not the sources of revenue identified
to support such an operation.
Additionally, I believe the City must resist the temptation to
use the Building and Safety Department as the enforcement arm of
a rent control program by stepping up health and safety related
inspections. It is important that rent control and health and
safety items be addressed as separate issues and not combined,
resulting in the Building and Safety Department becoming the de
facto enforcement arm of a rent control program.
75.0264
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~efore the Mayor and Comm~ouncil can i~lligently consider
whether a rent moratorium/control ordinance is necessary and
proper. I believe we must first obtain information collected by a
disinterested third party to determine the scope of the problem.
without hard data. the Mayor and Common Council is placed in the
position of determining through public testimony whether hardship
cases presented by tenants and owners supports or obviates the
need for a rent moratorium/rent ordinance, a difficult and
unscientific proposition as best. Enacting such a measure
prematurely could hurt significantly park owners and financially
assist unnecessarily tenants who are able to afford market rents.
It is for the above and other reasons that I recommend adoption
of the form motion.
Development
KJH/lab/0462
9/2/87