SR 04-12-2016 8B 407-003-25/901-001-04
City Council
Report
City Council Meeting: April 12, 2016
Agenda Item: 8.B
To: Mayor and City Council
From: Andy Agle, Director, Housing Division, Housing and Economic Development
Subject: Disposition of Mountain View Mobile Home Park
Recommended Action
Staff recommends that the City Council:
1. Approve a one-time, temporary lot-line encroachment exemption for eight
existing households, which impact eleven existing vacant spaces; and
2. Authorize staff to issue a request for proposals from affordable housing
organizations to acquire Mountain View Mobile Home Park and operate the
property as affordable housing.
Executive Summary
Mountain View Mobile Home Park is currently owned by the City, with property
management contracted to a management company. Recognizing that the City as an
owner of residential property is not consistent with the core mission of funding
affordable housing rehabilitation and development, staff recommends solicitation of
proposals from affordable housing organizations to acquire and operate Mountain View
Mobile Home Park as affordable housing. The proposals must preserve affordability,
optimize housing opportunities, and operate the property for the benefit of current and
future low- and moderate-income households.
Mountain View Mobile Home Park has the capacity to house 105 tenant households in
because the lots were established long after the park was created. Staff recommends
approving a one-time, temporary lot-line encroachment exemption for the eight
households to protect and preserve their current homes.
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Background
until purchased by the City in 2000 (Attachment A) to preserve the property as an
affordable mobile home park for low- and moderate-income households. Restricted
housing trust funds were used to acquire the property, requiring the recordation of an
affordability covenant (i.e., deed restriction) establishing income eligibility requirements
for future occupants. The Park is also subject to the Rent Control law, which limits rent
increases and provides eviction protections for the residents. When purchased, the Park
had failing infrastructure, roads not designed for emergency access, inadequate
drainage with seasonal flooding, and homes that did not meet required minimum
separation standards. To address these issues, the City focused attention on
reconfiguring the Park and investing in safety and infrastructure improvements.
In 2002 (Attachment B), the Santa Monica Rent Control
request to remove 36 vacant home sites to accommodate the reconfiguration of
roadways for emergency vehicle access and establish definitive lot lines for individual
home sites to conform to statewide standards. On August 16, 2006 (Attachment C), the
Planning Commission approved the reconfiguration, and lot lines were established for
105 permanent home sites. The reconfiguration required realignment or relocation of
homes throughout the Park. The reconfiguration did not require all residents to relocate
their homes, move ancillary structures, or limit yard areas to align with the established
lot lines, resulting in the current encroachments of eight households.
During 2008 and 2009, the City spent approximately $5 million on infrastructure
improvements, including undergrounding electrical, telephone, and cable TV lines,
installation of new natural gas, potable water, sanitary sewer, and street lighting
systems, and construction of new curbs, gutters, and roadway pavement surfaces
(Attachment D). After completing the improvements, 20 City-owned mobile homes at the
Park were replaced with new manufactured homes in 2011 and 2012 at a cost of
approximately $3 million (Attachment E). Additionally, nine residents participated in the
Council-adopted financing program for Park residents (Attachment F), resulting in new
manufactured homes installed during 2012 and 2013 at a cost of approximately
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$1.5 million. Finally, staff coordinated the relocation of 12 residents displaced from
Village Trailer Park (VTP) into the Park from 2014 to 2015, along with the installation of
new manufactured homes paid for by the VTP developer.
Lot Line Encroachment
The minimum setback required by the State between homes is at least six feet with
each home located at least three feet from the lot line or street. Non-conforming
occupancies encroach into adjacent, vacant home sites, narrowing the usable building
footprint and resulting in unusable home sites. Currently, eight households have
encroachments into 11 adjacent, vacant home sites. Residents of the eight households
own their homes and have lived and remained at the same locations in the Park
for decades. Many of the eight households have expressed concern that the lot lines
established by the City are not consistent with the area they have occupied for decades.
Though one or more adjacent sites are effectively unusable, the eight households pay
rent for one home site.
Disposition
At its December 11, 2012 meeting (Attachment G), Council directed staff to explore
disposition of all City-owned properties managed by the Housing Division, including
Mountain View Mobile Home Park. Pursuant to Council direction, the City has disposed
of most properties managed by the Housing Division, with the Park as one of the final
disposition opportunities. Owning and operating the Park requires significant staff
resources, including property management company selection and oversight, preparing
and monitoring property budgets and expenditures, assisting with resolving tenant
issu
matters. Transitioning the Park to non-City ownership would allow staff to focus more
directly on its core mission of increasing affordable housing opportunities, while
preserving the Park as affordable housing.
Discussion
affordable housing and protection of tenant rights. Consistent with those priorities, staff
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recommends that an affordable housing organization be identified to own and operate
the Park. A change in ownership would not affect tenancies, as the Park is subject to
the Rent Control law, which provides eviction protections. Existing affordability
covenants require the Park to be operated as affordable housing for low- and moderate-
income households through 2062. Additional covenants associated with transfer of the
Park could include deeper income targeting, longer deed-restriction terms, and an
option for the City to repurchase the Park for $1 prior to the expiration of affordability
covenants.
Encroachments of homes onto adjacent lots resulted from the establishment of
measurable lot lines in conjunction with achieving safety standards in the Park.
Lot lines in the Park prior to the safety improvements were not documented and
are unavailable. Currently, eight home sites effectively occupy more than one lot.
Given the age of some of the homes, several may not structurally withstand relocation.
Moreover, some homes are too large to fit on one home site. Therefore, staff proposes
a one-time, temporary encroachment exemption that would be voided with major
alterations to the home, or when the existing tenants terminate residency at the Park.
Additionally, staff proposes that the exemption be non-transferable. One consideration
related to the exemption is that affordable housing opportunities on the eleven affected
lots will be delayed, potentially for decades. In addition, the financial feasibility for a
new owner-operator would be impacted by the reduction in potential rental income.
The recommended actions regarding encroachment exemption and Park disposition
were presented to the Housing Commission on March 17, 2016 (Attachment H).
The Commission generally supported the r
specific concerns and recommendations have been incorporated into this report.
Several members of the Park attended the Commission meeting and supported the
recommended encroachment exemption. Park residents in attendance expressed mixed
support for transitioning the Park to a new entity, with some valuing the security they
feel with the City as owner. With Council authorization to seek proposals, staff would
share a draft request for proposals (RFP) at a public Housing Commission meeting, as
well as at a meeting with Park residents, to ensure opportunity for input from all
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stakeholders. Prior to staff preparing a recommendation for Council regarding the
selection of a new owner-operator, staff would solicit feedback from the Housing
Commission.
Request for Proposals
If Council directs staff to proceed with the recommended approaches, staff would issue
an RFP targeted to affordable housing organizations with appropriate experience to own
and operate affordable housing and mobile home parks. The RFP would seek proposals
to acquire the property, install new, sustainable manufactured homes on vacant home
sites (currently vacant and as sites become available), and operate the Park as
affordable housing for the benefit of low- and moderate-income households. The RFP
would be evaluated on:
thoroughness, completeness, and responsiveness;
financial feasibility of the proposal;
approach to managing and operating the properties;
financial capacity of the organization;.
demonstrated experience and capacity in owning and operating affordable
housing and mobile home parks;
approach to customer service in a multi-cultural and multi-lingual community;
demonstrated knowledge and compliance with regulatory safety compliance
requirements; and
commitment to local hiring practices.
Alternatives
An alternative to transferring the Park to non-City ownership would be a ground lease to
an owner-operator rather transferring ownership. A ground lease could achieve City
goals of transferring operations of the Park to a qualified affordable housing provider
while retaining City ownership. However, a ground lease may not provide the same
degree of arms-length independence from property management responsibilities that a
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transfer of ownership would provide. A ground lease could negatively impact the ability
to access traditional financing for the Park should the need arise. Another approach
would be for Council to provide alternate direction relating to the encroachment issue
and the disposition of the Park.
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action involving a Request for Proposals. No budget action is necessary
as a result of the approval of the encroachment exemption for the eight households, as
potential rent revenue.
Prepared By:
Ava Lee, Senior Development Analyst
Approved Forwarded to Council
Attachments:
A. Council Staff Report 11.14.2000
B. Rent Control Board Removal Permit Decision 7.11.2002
C. Planning Commission Staff Report 8.16.2006
D. Council Staff Report 1.22.2008
E. Council Staff Report 9.28.2010
F. Council Staff Report 12.14.2010
G. Council Staff Report 12.11.2012
H. Housing Commission Staff Report 3.17.2016
I. Written comments
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Add to 8-B Add to 8-B
04/12/2016 04/12/2016
Anne Samartha
From:Council Mailbox
Sent:Monday, April 11, 2016 12:47 PM
To:Tony Vazquez; Ted Winterer; Pam OConnor; Sue Himmelrich; Gleam Davis; Terry OÔDay;
Kevin McKeown Fwd
Cc:councilmtgitems
Subject:FW: Mt.View
Follow Up Flag:Follow up
Flag Status:Flagged
Council
Pleaseseethebelowemailre:MountainViewMobileHomePark.
Clerk
Addtofor4/12meeting.
Thanks,
Stephanie
OriginalMessage
From:Drymon,Cheryl\[mailto:cdrymon@smmusd.org\]
Sent:Thursday,April07,20162:21PM
To:CouncilMailbox<Council.Mailbox@SMGOV.NET>
Subject:Mt.View
Iwouldliketoexpressmysupportofourcurrentmanagement.
IhavelivedintheParksince1990andIfeelthatduringallthoseyearsnoonehasdonesuchafinejobofrunningthis
Park.
TheParkiswellmaintainedandthestaffishelpfulandfriendly.
IunderstandyougetmanycomplaintsfromsomeresidentsoftheParkbutIfeelthatthesepeoplewouldnotbe
satisfiedwithanyone.
Iservedonourresident'sboardfor13yearsasmember,President(4times)andsecretary(6times).Whenthepresent
BoardcameonIfeltIcouldnolongerserveontheBoardasmostofthemembersaretoodissatisfiedand
argumentative.Ihaveevenstoppedgoingtothemeetingsalltogetherforthesamereasons.
IfeelthemajorityofresidentsoftheParkarehappywithmanagementbut,asIdid,donotexpresstheir
satisfactionbecausetheyarefeelingwellserved.
nagement.
Pleaseunderstandthat,inmyopinion,mostresidentsarehappywithourcurrentma
Thankyou,
CherylDrymon
1930StewartX1
SentfrommyiPad
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Add to 8-B
04/12/2016
Anne Samartha
From:Maria Loya <mloyadlt@gmail.com>
Sent:Tuesday, April 12, 2016 10:52 AM
To:Tony Vazquez; Ted Winterer; Terry OÔDay; Kevin McKeown Fwd; Pam OConnor; Sue
Himmelrich; Gleam Davis; Rick Cole; David Martin; Clerk Mailbox
Cc:p-n-a-board@yahoogroups.com; Catherine Eldridge; cristopher1@myway.com; Oscar
De La Torre; beredeambo1@yahoo.com; Lorraine Sanchez; Dolores Sloan
Subject:Agenda Item 8-B: Disposition of Mountain View Mobile Home Park
To: Santa Monica City Council
From: Pico Neighborhood Association
Date: April 12, 2016
Re: Agenda Item 8-B: Disposition of Mountain View Mobile Home Park
Dear City Council:
The PNA Board of Directors is writing this letter regarding Agenda Item 8-B: Disposition of Mountain
View Mobil Home Park and the possible unintended consequences of current long term tenants losing their
rights under to proposed temporary lot-line encroachment exemption for eight existing households, which
impact eleven existing vacant spaces. We are equally concerned with the potential impact to the
preservation of Mountain View Mobil Home Park as the City considers options authorize staff to issue a
request for proposals from affordable housing organizations to acquire Mountain View Mobile Home Park
and operate the property as affordable housing.
The PNA Board of Directors in consultation with Mountain View Mobile Home Park tenants recommend
the following to the Santa Monica City Council.
1.Santa Monica City Council not support the City Staff’s recommendation to impose a temporary lot-
line encroachment exemption for eight existing households.
2.Furthermore, the PNA Board of Directors recommend that the City of Santa Monica consider the
alternative of having Mountain View Mobile Inn Tenants Association assume ownership.
Proposed Temporary Lot-Line Encroachment
On August 16, 2006, the Planning Commission approved the reconfiguration, and lot lines were established for
105 permanent home sites. The reconfiguration required realignment or relocation of homes throughout the
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Add to 8-B
04/12/2016
Park. The reconfiguration process did not adequately engage the Mountain View Mobil Home Park tenants and
many were unaware of the new lot lines. As a result, the new lot lines encroached on the existing lot lines that
had been in place for decades. Furthermore, the reconfiguration did not require all residents to relocate their
homes, move ancillary structures, or limit yard areas to align with the established lot lines, resulting in the
current encroachments of eight households.
Residents of the eight households own their homes and have lived and remained at the same locations in the
Park for decades. Many of the eight households have expressed concern that the lot lines established by the City
are not consistent with the area they have occupied for decades. The Park is also subject to the Rent Control
law, which limits rent increases and provides eviction protections for the residents. The intent of the Rent
Control law is to protect tenants from land lord harassment and forced evictions that result in tenant potential
displacement. Yet, the City staff recommendations only work to position long term tenants of the Mountain
View Mobil Home Park to lose their rights automatically. The State’s Housing Community Development code
and Mobile Home Residency Law and Title 25 protect mobile home owners from Ellis and other resident type
risks. Tenants of mobile home parks have special protections because of OWNERSHIP status. The City is
using is authority as the “land lord” and a government agency to deny residents all the protections the state and
federal government have put in place to protect Mobile Home residents from just such “taking” of their
homes. The idea that the City has control over the space simply because a building permit is required is
outrageous and unlawful. Building permits are needed for many routine, necessary maintenance tasks. Mobile
homes require regular maintenance. If you neglect the maintenance, you will be cited by the park owner for
letting your unit run down. However, with this plan, a tenant can have their lot line/unit deemed in violation
and “taken”. Either way the City staff recommendation to establish a temporary lot-line encroachment
exemption for eight existing households puts long term tenants at risk of losing their tenant rights. It’s important
to note that there were no lot line violations prior to the city’s upgrades.
Mountain View Mobile Home Park Disposition
At its December 11, 2012 meeting, Council directed staff to explore disposition of all City-owned properties
managed by the Housing Division, including Mountain View Mobile Home Park. Although many tenants are
fearful that the disposition proposal will threaten the preservation of Mountain View Mobile Home Park, the
PNA Board of Directors in consultation with tenants from Mountain View Mobile Home Park recommend an
alternative of having Mountain View Mobile Inn Tenants Association assume ownership. The existing
regulatory agreement says that the City of Santa Monica can transfer over to the residents if it’s feasible.
Mountain View Mobile Home tenants must be given the opportunity to be considered in the City’s alternatives.
This alternative would be consistent with those priorities, staff recommends that an affordable housing
organization be identified to own and operate the Park. This particular alternative would not affect tenancies, as
the Park is subject to the Rent Control law, which provides eviction protections. Furthermore, it puts existing
tenants in a position to have a say in the future of their mobile home park allowing the City staff to focus more
directly on its core mission of increasing affordable housing opportunities, while preserving the Park as
affordable housing.
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