Rent stabilization in mobile home parks is an idea that has floated around Galt for at least 18 months.
Park residents have pushed the idea because, while they own their homes, they don't own the land. While rents have remained steady, they are concerned about what could happen if a company bought one of the local parks and rents skyrocketed.
Rent stabilization, or what some call rent control, has been implemented in cities throughout California. It puts a limit on how much mobile home park owners can charge. Usually it is tied to the cost-of-living through the Consumer Price Index.
While he's not sure of the best approach, Councilman Donald Haines wants to see if Galt is in need of a rent stabilization ordinance and what would be effective.
Haines stressed the ordinance would be a proactive approach because current park owners keep rents reasonable.
"Once someone comes in and starts raising up the rates, it's too late," he said.
Proponents of the ordinance say it will protect the vulnerable owners of mobile homes who are on fixed incomes and cannot handle large increases. They also say the parks' owners would still be able to make a profit.
Opponents argue park owners are already aware of how much their tenants can afford, and an ordinance would take away the owners' property rights.
Three Palms Mobile Estates owner Homer Beldt said he already thinks about what his renters can afford and does not believe Galt needs an ordinance.
He said he has no intention of hiking up the rent, because he knows some low-income residents live in his park. He worries about a rent requirement driving down the property value of his park.
"When you are being fair already, there is no reason to say you can't do that anymore," Beldt said.
Haines plans to ask the Galt City Council to consider funding a study to see whether rent stabilization or another form of assistance is needed for mobile home park tenants. He has not yet decided when he will bring the study item before council.
He hopes a study will show what's happened in the past, what's currently going on and if an ordinance is justified.
This all came about when a group of tenants approached Haines 18 months ago with concerns about what would happen if Galt's parks changed ownership.
"They have invested their livelihood in these mobile homes. ... People want peace of mind when their investments change hands," Haines said.
He believes some restrictions or an agreement would protect park residents on fixed incomes.
"We are not depriving park owners from getting a reasonable investment, but we are keeping property owners from gouging these seniors," he said.
Haines has met with both the property owners and tenants to see if they could come to a consensus without an ordinance.
Some of the other possibilities include tenants and property owners agreeing to a contract that rents will never increase more than the Consumer Price Index, but he said it is not likely park owners will sign a contract restricting themselves.
The city could provide redevelopment money in exchange for the property owners limiting increases to the cost-of-living.
He at least hopes that by doing a study, it will bring all the parties back to the table.
Contact reporter Maggie Creamer at maggiec@lodinews.com.
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