Galt City Council rejects study on rent stabilization

Wednesday, November 18, 2009
Maggie Creamer
Lodi News-Sentinel

The Galt City Council rejected a proposal Tuesday to conduct a study that would determine whether a rent stabilization ordinance is needed for the city's mobile home parks.

Councilman Donald Haines had asked the council to decide on whether it wanted to allocate $30,000 to do a study that would collect demographic information on the parks' residents and identify how much rents have increased through the years.

Rent stabilization, or what some call rent control, would put a limit on how much mobile home park owners can increase rents. Usually it is tied to the cost of living through the Consumer Price Index.

A market study is required before the council could adopt a mobile home rent control ordinance.

Over the past 18 months, Haines and Councilman Andrew Meredith have met with both the park owners and residents several different times to discuss alternatives to rent stabilization.

Because of the cost of the study, Councilwoman Barbara Payne requested Haines and Meredith try one more time to bring both groups together to see if there is another alternative or if the two groups could provide additional information to the city.

"In my experience, if you can't talk together, passions and feelings are going to overrule common sense," Payne said.

After City Attorney Steve Rudolph brought up examples of cities that have been sued over the ordinance, Councilman Darryl Clare said he did not want to move forward with a study before assessing the legal ramifications of an ordinance.

"Citizens would not want us to spend $30,000 if we are not prepared to take the next step. ... Maybe there is a way we can provide the protections without spending the money in this way, or let alone in litigation," Clare said.

Haines argued it was important for the city to be proactive and move forward with the study.

"I'm not trying to say the park owners are abusing seniors," Haines said. "What I'm saying is that there is a concern out there that mobile home parks are targets for predatory investment."

Marie Hall, a resident of Three Palms Mobile Estates, said while the current owners have kept rents reasonable, she is concerned that a developer could come in and drive up the rents, especially because the parks are located in close proximity to shopping centers and Highway 99.

"They are a prime target for predatory proprietors who purchase these parks and drive up the rents until they are unaffordable for seniors," she said.

While she understands the council might be hesitant to spend money on a study because of the economy, Hall said she believes it is important for the city to protect park residents, the majority of whom are on a fixed income.

"It's a hard time for seniors who have not received a cost-of-living increase but still had the rents increased," Hall said.

The council needs to go through with the study, so it will be able to know whether rent stabilization is necessary, said Ruth DeGroot, a resident of Galt Mobile Estates. She said the study would identify many statistics, including park residents' age, income, rent, purchase price of the home, and how much they pay in utilities and property taxes.

"You will be able to get a much better perspective of mobile home living," DeGroot said. "How can you make a decision without knowing the facts?"

In other action
Parks: The council changed the curfew for Harvey and Lions Oak parks from 10 p.m. to dusk. The change will start Dec. 3 for all park-goers with the exception of youth baseball games and practices at Harvey.

The police and parks and recreation departments changed the ordinance Oct. 20 to allow city staff to close parks before 10 p.m.

Parks and Recreation Director Boyce Jefferies decided to propose the change after Police Chief Loren Cattolico reported problems with loitering. The problems occured during the evening, when no activities were happening.

Jeffries said the ordinance change is similar to when the council in 2006 decided it could ban the consumption of alcohol from certain parks. Right now, alcohol is not permitted in Meadow Views, Harvey, Chabolla and Roundstone parks.

Skate park: The council also changed the hours for the city's skate park. The hours will be reduced to 9 a.m. to dusk everyday. Previously, the hours were 9 a.m. to 9 p.m. Sunday through Thursday and 9 a.m. to 10 p.m. Friday and Saturday.

The park will also no longer be open while Galt schools are in session.

Lloyd Logan, of Golden Estates Manufactured-Home Owners League, said in other communities where there is rent stabilization, it has worked effectively. It protects the homeowner while still allowing the park owners to make money, he said.

"Park owners are entitled to a fair return on their investment and are receiving it," he said.

But Al Baldwin, who lives in Heritage Oaks Senior Mobile Home Park, said while he believes the council should be pro-active, with the economy, it is not the right time to pay for a study.

"Where does the buck stop on the money going out of this town that we don't have?" Baldwin said.

Jim Kuppenbender, an owner for Galt Mobile Estates, said he believes a recent court ruling will change whether cities and counties pass rent control ordinances. He instead recommend the city look at providing rent assistance for those residents in parks who need help.

As the owner of Three Palms and Country Villa Mobile Home Estates, Homer Beldt said he has kept rents lower than the market value, especially when compared with Lodi.

"I really don't see why the city would spend money on a problem they don't have," Beldt said.

Compared with city utility increase, Denise Warmerdam said the rent increases in her park, Heritage Oaks, are minimal. Since 1999, she had increased rent by 11.4 percent. During the same time, city utilities had increased by 200 percent.

While he is disappointed it did not past, Haines said that at the very least, the idea stimulated conversation on the challenges for mobile home parks.

The next step Haines said he might pursue is to regroup with park residents and see if there is an interest in sitting down with the park owners to find another alternative.

"This was something we owe in this community to those who need it," he said.

Contact reporter Maggie Creamer at maggiec@lodinews.com or read her blog at www.lodinews.com/blogs/citybuzz.

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