REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Travis K. Hopkins, Assistant City Manager
PREPARED BY: Grace Yoon-Taylor, Principal Management Analyst
Subject:
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Approval of the Mobile Home Advisory Board (MHAB) Annual Report and Request for a Mobile Home Market Space Rent Study by the MHAB
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Statement of Issue:
The Mobile Home Advisory Board (MHAB) is an advisory body to the City Council that works on issues to address the quality of life in Huntington Beach’s 18 mobile home parks. The MHAB addresses these issues by providing a public forum for communication between mobile home residents, park owners, and at-large residents. The MHAB is comprised of nine members who equally represent mobile home park residents, park owners, and the Huntington Beach community at large.
Section 4 of the MHAB Bylaws states that the Board will report its annual activities to the City Council, including the number of meetings held, attendance, issues considered, and budget requests (if any) for the following year’s plans.
On January 23, 2023, the MHAB prepared and voted to submit their 2022 Annual Report to City Council that includes two main project plans and budget requests for Fiscal Year 2023-2024. Included in that meeting, the MHAB also voted to respectfully recommend to the Council that the City conduct a Mobile Home Market Space Rent Study.
Financial Impact:
The Board’s 2022 Annual Report requests two project plans with fiscal impacts to the City:
1. If approved, the MHAB requests $3,000 to be included in the City Manager’s Office Operating Budget in Fiscal Year 2023-24 for the Board’s proactive marketing and outreach activities.
2. If the City Council were to approve the MHAB’s recommendation to conduct a Mobile Home Market Rent Study, staff would conduct the appropriate procurement process for an independent research firm to complete this work. A professional service agreement with a scope of work and final costs would be brought to the City Council for final approval and budget appropriation.
Recommended Action:
recommendation
A) Receive and file the Mobile Home Advisory Board 2022 Annual Report approved by the MHAB; and,
B) Approve the two MHAB recommendations in the Annual Report, including marketing outreach and a Mobile Home Market Space Rent Study.
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Alternative Action(s):
Do not approve one or both of the the MHAB requests for marketing outreach and a Mobile Home Market Space Rent Study.
Analysis:
In the City of Huntington Beach, there are 18 mobile home parks with approximately 2,955 households. One mobile home park is owned by the City of Huntington Beach (Ocean View Estates), one park is owned by the residents (Huntington Harbour Village), and the remaining 16 are owned privately. Mobile home parks are regulated by the State of California Department of Housing and Community Development (HCD), and the City of Huntington Beach provides safety-related services such as fire and police protection.
To create an open forum to discuss mobile home park related issues, the City formed the MHAB in 1996. Per the MHAB Bylaws, on January 23, 2023, the MHAB prepared and voted (noes: Avilla, Chase, Talley) to submit their 2022 Annual Report (Attachment 2) to City Council that includes an overview of their actions and activities and two recommendations to the City Council with budget requests.
The MHAB’s activities are detailed in the Annual Report and included educational presentations on mobile home matters; a one-time informational mailing to residents; support for a City senior resources fair for low-income and/or senior mobile home residents; support for the City’s new Tenant Based Rental Assistance Program for senior mobile home residents; and a request to place a Charter amendment on the November 2022 ballot to exempt mobile home parks from Charter Section 803 (Property Rights Protection Measure).
The Board’s Annual Report recommendations to the City Council include the following:
1. Proactive marketing and outreach initiatives to provide consistent information to the Mobile home community. The MHAB requests at least $3,000 to be included in the City Manager’s Office Operating Budget in Fiscal Year 2023-24.
2. A Mobilehome Market Space Rent Study to be conducted for Huntington Beach by an independent, third party research firm.
MHAB is requesting the City Council to receive and file the Annual Report and approve both MHAB Requests.
Background on Market Space Rents
In 2001, the City commissioned the California State University-Fullerton (CSUF), Center for Demographic Research to conduct a market study of mobile home parks in Huntington Beach focusing on the factors associated with the cost of mobile home housing (primarily rent and utilities) and these costs were compared to mobile home parks located throughout the rest of Orange County. The primary purpose of this study was to inform the Council of whether or not a rent control or rent stabilization ordinance (RSO) was needed at that time. The total cost for the market study was $33,750 funded by General Fund, plus staff time. The 2001/02 Mobile Home Market Study Report is attached (Attachment 1).
The following year, in 2002, a petition-led initiative was placed on the March 2002 Special Election ballot as Measure EE and approved by 69% of voters (27,513 yes; 12,588 no) amending the City Charter (adding Section 803) prohibiting rent control/rent stabilization on privately owned properties, including mobile homes/manufactured homes.
Over the past few decades, residents in privately owned parks have intermittently raised concerns about mobile home space rent affordability, particularly after certain mobile home parks such as Skandia experienced rapidly escalating space rents in the Fall of 2021.
Staff conducts an annual informal phone survey of space rents throughout the City to determine an appropriate rent amount for the City-owned Ocean View Estates, and this information is periodically shared with the MHAB. However, some mobile home residents and MHAB members are requesting a comprehensive Mobile Home Market Study, similar to one conducted for the City in 2001-2002. They contend this study would help the City understand the effect that escalating space rents is having on senior mobile home residents and to help the City Council make informed decisions about mobile home park-related policies moving forward.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Economic Development & Housing
Attachment(s):
1. 2001/2002 Mobile Home Market Study Report by CSUF
2. MHAB 2022 Annual Report
3. PowerPoint Presentation