Wednesday, December 12, 2007

Perris City Council extends rent-increase moratorium at mobile home parks

The Riverside Press Enterprise covered the following story related to the City of Perris and the city councils decision to protect renters from "greedy Landlords" - notice the quote from the councilman at the end of the story - we've attached the link as well as the body of the story http://www.pe.com/localnews/inland/stories/PE_News_Local_S_srent12.33f549e.html

By JULISSA McKINNON
PERRIS - The Perris City Council voted Tuesday to extend a moratorium on rent increases in the city's two mobile home parks for nine months in light of concerns over providing affordable housing for seniors.

The council originally imposed a 45-day moratorium on rent increases in mid-November. On Tuesday the council voted 4-1 to extend the rent moratorium on mobile home lots until Sept. 30.

Peter Herzog of the Manufactured Housing Educational Trust appealed to the council to reject a moratorium.

Herzog said imposing a cap on rents, especially the rent of vacant spaces, would ultimately be counterproductive to accomplishing any capital improvements in the mobile home parks.

Herzog cited a study on mobile home parks done by the city of Yucaipa in San Bernardino County that finds city rent control ordinances often precede the deterioration of mobile home parks.

"The council's action, particularly on the vacant spaces, will limit capital improvements in the park and (permanent) rent controls would be absolutely devastating to that," Herzog said as he left the council chambers. "With that facing you, why would you put out a significant amount of money if you're not going to recover that? Capital improvements are not free."

Nonetheless, the majority of council members supported continuing the moratorium that caps the rent on mobile home spaces at $470.

Councilman John Motte, the lone opposing vote, questioned and criticized any municipal involvement with rent control.

"Let the market rates prevail," Motte said. "It's ridiculous for us to get in a maze of bureaucracy over this."

City attorney Eric Dunn said that state law prohibits rent moratoriums on long-term leases, which applies to about two-thirds of the mobile homes in question.

Councilman Al Landers and others raised concerns about what he sees to be excessive rent increases. Most recently a rent increase in October took rents to $470, and another in October 2006 raised them to $435, according to Herzog.

"We've just got to fend for people in some way, especially the elderly," Landers said, adding that "boarded up buildings, broken windows and trash," in the parks' vacancies are unacceptable.

John Fatone, chairman of Park Place Manufactured Homes Community Group, initiated the call for more capital improvements in the parks that led to the current rent moratorium.

He did not attend Tuesday's meeting because he was ill.

"I'm looking out for the same people I started all of this about -- the people on fixed incomes, to make sure they're protected from greedy landlords," Fatone said by telephone.

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