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SR 12-12-2017 8C City Council Report City Council Meeting: December 12, 2017 Agenda Item: 8.C 1 of 10 To: Mayor and City Council From: Andy Agle, Director, Housing and Economic Development, Housing Division Subject: Proposed Transfer of Mountain View Mobile Home Park Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to execute disposition and loan agreements with the Caritas Corporation, a California-based, 501(c)(3) nonprofit corporation, to become owner and operator of the City-owned Mountain View Mobile Home Park, consistent with the terms provided in Attachment A; and 2. Authorize the City Manager to execute an easement agreement with the Caritas Corporation that allows Mountain View Mobile Home Park to encroach upon Gandara Park for as long as Mountain View Mobile Home Park remains subject to an affordability covenant. Executive Summary The City’s long tradition of supporting a wide variety of affordable housing options led the City to purchase Mountain View Mobile Home Park in 2000. To ensure that housing affordability is sustained into the future, Council authorized transfer of Mountain View Mobile Home Park to an affordable housing organization. The transfer would ensure long-term affordability of a unique housing type while capitalizing on an affordable housing organization’s competencies in owning and operating affordable housing. Pursuant to Council authorization, the Caritas Corporation and staff negotiated the proposed terms of transfer for Mountain View Mobile Home Park. The proposed terms provided in Attachment A reflect Council’s direction to maintain financial viability, leverage City assistance, facilitate home ownership, and provide quality property management and resident engagement. 2 of 10 Background Ownership Transfer The City acquired Mountain View Mobile Home Park (Park) in December 2000, to create opportunities to preserve affordable housing at the Park. As part of the purchase, the Park was deed-restricted for future occupancy by moderate-income households at or below 120 percent of area median income (AMI). On December 11, 2012 (Attachment B), Council directed staff to explore disposition of all City-owned affordable housing properties, including the Park. Council provided the direction to focus on the City’s core competencies of administering rental-assistance programs and creating affordable housing opportunities, and recognizing that affordable housing organizations, rather than the City, possess core competencies in owning and operating affordable housing. On April 12, 2016 (Attachment C), Council authorized staff to issue a request for proposals (RFP) from affordable housing organizations to acquire and operate the Park as affordable housing. Staff engaged the Park residents for comments and feedback at three scheduled community meetings prior to issuing the RFP on September 28, 2016. Staff received proposals from three organizations by the December 1, 2016, deadline. On April 25, 2017 (Attachment D), Council authorized exclusive negotiations with the Caritas Corporation (Caritas) to transfer ownership of the Park pursuant to Council- approved parameters. The negotiation parameters for transfer focused on sustaining affordable rents pursuant to covenants and Rent Control law, maintaining long-term financial viability, minimizing the investment of limited City housing funds, and providing quality property management and resident engagement. Easement The Park is bordered on the north by Gandara Park (Gandara). The two properties are separated by a chain-link fence appearing as the northern boundary of the Park. Field surveys conducted on behalf of the City dating back to 1993, prior to the City’s 3 of 10 acquisition of the Park in 2000, indicate that the 300-linear-foot fence line sits north of the legal property line and encroaches onto approximately 8,300 square feet of Gandara. Attachment E illustrates the triangular encroachment. Discussion Ownership Transfer Caritas has demonstrated its commitment to preserve affordable housing, a collaborative approach to managing a mobile home park with both homeowners and renters, a plan for long-term financial sustainability, and a solid framework for property management. Caritas and staff negotiated and refined the terms of transfer to incorporate Caritas’ expertise as owner and operator of mobile home parks, and reflect both Caritas’ and the City’s goal to provide quality affordable housing. The following summarizes the recommended terms for transfer of the Park: 1. Affordability and Resident Protections Caritas would comply fully with existing restrictions (Rent Control law and Regulatory Agreement), rental agreements, and exemptions provided to residents. Caritas would comply with terms of the Rent Control law and existing Regulatory Agreement, including affordability restrictions at or below 120 percent of AMI and housing preferences for people who live or work in Santa Monica, and would enter into a new regulatory agreement consistent with the proposed transfer terms. Caritas would take ownership of the 29 rental homes owned by the City, in compliance with the one-time, temporary encroachment exemption provided by Council. The exemption protects eight existing households where the home or setback encroaches into one or more adjacent home site(s). In an effort to 4 of 10 provide housing on the home sites that are encroached upon by existing homes or setbacks, Caritas would provide incentives to encroaching households to conform to current lot lines in the form of ownership opportunities for new homes or rehabilitation options for existing ownership. Where a resolution cannot be reached, Caritas would comply with the exemption for existing households while exploring design options for homes sized to fit on the home sites with encroachment challenges. 2. Management Plan Caritas has a history of developing resident-focused communities rather than property-focused communities. Caritas attributes their connection with residents to regular town hall meetings. An initial meeting, to be held within 30 to 45 days of ownership, would introduce the Park residents to Caritas’ philosophy and operating goals to provide and maintain quality affordable housing, and solicit feedback from residents about resident priorities. Caritas recognizes that each community is unique and works with the residents in each community to determine their preferences to establish an environment where residents not only feel safe but that their needs are being met through connective services, activities, and support on a regular basis. In addition to the initial town hall meeting, Caritas anticipates scheduling special topic (i.e., ownership opportunities, community area improvements) meetings to engage and provide residents with opportunities to candidly address concerns and access technical assistance. Annual town hall meetings would be attended by the Caritas executive team to provide residents with direct personal access to Caritas senior management. The Caritas executive team includes the Chief Executive Officer, Chief Operating Officer, and Chief Mission Officer. Caritas retains Birtcher Anderson Realty (BARM) to manage all mobile-home parks owned by Caritas. The structure provides a cohesive relationship between Caritas and BARM. BARM has demonstrated their commitment to communicative and effective property management through a comprehensive management plan and procedural guide developed through 40 years of 5 of 10 experience (Attachment F). The plan clearly identifies standards and procedures for day-to-day operations and resident engagement. 3. Home Ownership Model Caritas proposes to systematically shift the focus for new occupancies and existing rentals at the Park from a rental model where residents rent their homes and the home sites, to an ownership model where residents are encouraged to own their homes and rent only the home sites. However, where existing renter households choose to remain renters, Caritas would honor the terms of the existing rental agreements. Caritas has analyzed the economics of manufactured-home ownership for extremely low-, very low-, low-, and moderate-income households. The analysis demonstrates that moderate-income and some low-income households could qualify to financially carry the cost of home ownership, while very low-, extremely low-, and some low-income households could not financially sustain the cost of home ownership or maintenance without assistance. Caritas has experience with counseling renters about home ownership, which includes a simple application program designed to educate and encourage home ownership. Caritas has successfully identified government funding sources that have enabled 36 households to purchase new manufactured homes at mobile home parks owned by Caritas. Three City-owned homes are currently unoccupied. Caritas proposes transitioning live-in management staff into two of the homes at transfer and selling the remaining home to a moderate-income household. Caritas would program all sale proceeds generated directly or indirectly from the sale of existing rental homes to financially assist with new home purchases or rehabilitation of existing ownership homes. 6 of 10 4. Caritas Investment for Common Area Improvements Within five years of ownership, Caritas would complete improvements to the Park’s common areas, estimated at approximately $800,000. Common area improvements include but are not limited to the existing office, community room, laundry facilities, premises lighting, property security, and other common area amenities as warranted. Caritas has committed to investing its own funds, not to exceed $800,000, in the form of a loan from Caritas corporate reserves toward the effort to enhance the living experience of the Park residents. The Caritas loan would be amortized over 30 years at an interest rate not to exceed five percent compounded annually, with debt service paid from net operating income. 5. Financial Sustainability Historically, the Park operates at a loss of approximately $100,000 per annum due primarily to income loss from vacant home sites previously held for residents displaced by the closure of Village Trailer Park (VTP). Twelve households displaced from VTP moved into the Park by 2015, reducing the number of vacant home sites from 36 to 24. Caritas would decrease the number of vacant home sites progressively by an average of at least two home sites per year until 100 percent occupancy is achieved. Increasing revenues from occupied home sites, combined with decreasing property management expenditures through shared economies of scale gained from Caritas’ 20 mobile home parks, would improve the Park’s financial stability. Caritas understands that City ownership has exempted the Park from property taxes and that the exemption would expire upon transfer, potentially increasing operating expenses. However, a property tax exemption may also be available to the Park under Caritas’ ownership for housing primarily occupied by lower- income households. Based on Caritas’ experience with acquisition of 20 mobile 7 of 10 home parks, there is typically a transition period during which residents agree to voluntarily complete income verifications to pursue a property tax exemption for a park. Caritas has demonstrated success in gaining 100 percent cooperation from 3,665 households in its portfolio, and is confident that their approach will garner equal success at the Park. Caritas conservatively projects financial stabilization within five years of ownership, consistent with their acquisition experience at other mobile home parks. 6. Housing Trust Fund Loan Caritas has demonstrated that the economics of the Park at transfer would not sustain a combination of negative operational cash flow and debt service for the $800,000 capital loan without prudent cash reserves. Under the proposed terms, Caritas would receive a one-time, $500,000 operating reserve loan from the City to cover year-by-year operating losses. The City loan would convert to a grant pursuant to satisfaction of performance objectives described below. The proposed loan would cover operating losses as warranted for the first five years to be disbursed on an annual basis, not to exceed $100,000 per annum. Caritas would forfeit any undisbursed portion of the loan at the end of five years. The proposed loan would be secured by a Deed of Trust, Regulatory Agreement, and an Option Agreement enabling the City to take title to the Park for $1 at the expiration of the affordability covenant. The loan would automatically convert into a grant at the end of seven years if total home site occupancy at the Park increases from the existing count of 81 occupied sites to 94 occupied sites within the first seven years of ownership (at an average rate of two additional occupancies per year). Currently, there are 13 vacant home sites readily available for new homes and 11 home sites with encroachment challenges. 7. Priorities for Use of Net Cash Flow 8 of 10 Caritas’ ownership is projected to achieve financial stabilization within five years, with net cash flow prioritized for preserving affordable housing at the Park. The order of priority for net cash flow is as follows: a. Pay 50 percent of annual net cash flow toward repayment of the City loan; b. Assist with new home purchases or rehabilitation of existing ownership homes; then c. Accumulate a minimum of $500,000, above and beyond capital reserves for the benefit of the property. Use of net cash flow after the minimum $500,000 accumulation would require City’s written approval. Housing Commission On November 16, 2017 (Attachment G), staff presented a recommendation to the Housing Commission (Commission) for the City to execute transfer and loan agreements with Caritas. The Commission supported the terms as proposed by staff for Caritas to become owner and operator of the Park. The terms of transfer are also provided in Attachment A. Easement Agreement The origins (age and placement reasons) of the fence line separating the Park and Gandara are unknown. Visually, the fence line parallels natural boundaries as Gandara trees line the fence to the north, and mobile homes line the fence to the south. The encroached area is approximately 8,300 square feet and directly impacts 12 home sites. Ten of the 12 home sites are currently occupied with homes placed over the property line as illustrated in Attachment E. Staff recommends executing an easement agreement honoring existing conditions for both the Park and Gandara. The approach allows the Park to encroach upon Gandara 9 of 10 for as long as it remains a mobile home park subject to an affordability covenant while reserving the encroachment area for possible future Gandara use. Staff explored alternative options summarized below. Alternative 1 – Correct the Encroachment The first alternative would relocate the existing 10 homes in the encroachment area to available home sites within the Park. Costs associated with the alternative include site preparation of new home sites as available, relocation of homes, and housing accommodations during interim displacement for 10 households. The option would eliminate 12 home sites impacted by the encroachment, as the home sites reduced by the legal property line will be too small for home placements. Staff recommends against the alternative because of the disruption to residents, cost, and loss of existing affordable housing opportunities. Alternative 2 - Modify the Legal Description The second alternative would be to modify the legal description of the Park and Gandara to mirror the fence line, thereby permanently reducing Gandara for the benefit of the Park. Given that the Park would be transferred to a third party, staff recommends against losing long-term City ownership of the encroachment area. Next Steps With Council authorization on the negotiated terms discussed above, staff would proceed to execute disposition, loan, and easement agreements, with affordability covenants and funding conditions for execution by Caritas and the City Manager. Financial Impacts and Budget Actions The disposition and loan agreements to be awarded to Caritas Corporation are for an amount not to exceed $500,000. Funds are available in the FY 2017-18 Capital Improvement Program budget in account H049136.589000. Transfer of Mountain View 10 of 10 Mobilehome Park to the Caritas Corporation will save approximately $100,000 annually in net expenditures (i.e., rent revenue minus operating/capital expenditures). Prepared By: Ava Lee, Senior Development Analyst Approved Forwarded to Council Attachments: A. Term Sheet B. Council Staff Report - December 11, 2012 C. Council Staff Report - April 12, 2016 D. Council Staff Report - April 25, 2017 E. Encroachment Map F. On-site Management Procedural Guide G. Housing Commission Staff Report - November 16, 2017 H. Written Comment ATTACHMENT A MOUNTAIN VIEW MOBILE HOME PARK TERM SHEET updated December 4, 2017 Loan $500,000 Housing Trust Fund Loan; covers up to $100,000 per year in operating losses for the first 5 years and disbursed on an annual basis not to exceed $100,000 per year; undisbursed portion of loan is surrendered at the end of year 5 Interest Equal to Federal Home Loan Mortgage Corp. rate for 30-year fixed-rate mortgage, compounded annually Term 55 years, with 25 year extension if in compliance with the Regulatory Agreement; loan balance and accrued interest are forgiven at the end of 80 years if in compliance with the Regulatory Agreement Repayment Payments of principal and interest shall be made from residual receipts in an amount equal to one-half of residual receipts on an annual basis Prepayment The loan may be prepaid at any time without any penalty; affordability covenant will remain in effect for at least 55 years, regardless of any prepayment, and additional 25 years if applicable Security Deed of Trust, Regulatory Agreement, and Option Agreement Conversion of City Loan to Grant The City loan automatically converts to a City grant at the end of year 7 if total space occupancy increases from 81 to 94 spaces within the first 7 years at an average rate of 2 or more additional occupancies per year; loan conversion to grant after year 7 and before year 10 requires City’s written approval Resident Protections The Park Owner or Owner of existing manufactured homes for rent may not terminate or refuse to renew the rental home or space lease of a renter except in compliance with applicable federal, state, and local law and regulations The Park Owner may not terminate or alter a one-time, non-transferable, temporary encroachment exemption provided to 8 households with existing encroachments into adjacent spaces The Park Owner agrees to comply fully with existing restrictions (Rent Control Law and Regulatory Agreement), existing rental agreements, and exemptions Affordability Consistent with existing Regulatory Agreement - at or below 120% of Area Median Income Leasing Priority Consistent with existing Regulatory Agreement - local preference priorities Allowable Employee Housing Requires City approval for up to 2 spaces Purchase Option At the expiration of the affordability covenant, the City will have the option to take title to the property for $1 Caritas Investment Within 5 years of transfer, Caritas to complete improvements to the common areas (community room, lighting, property security, etc.), estimated at approximately $800,000, with an unsecured Caritas loan not to exceed $800,000, amortized over 30 years at an interest rate not to exceed 5% ATTACHMENT A MOUNTAIN VIEW MOBILE HOME PARK TERM SHEET updated December 4, 2017 Reserves Deposit Years 1-4: $50,000 /year; $35,000 /year thereafter Asset/Management Fees Asset and management fees escalations greater than 2% per year requires City approval Use of Proceeds from Sale of Homes Sale proceeds generated directly or indirectly from the sale of existing rental homes to be programmed for purchase of new homes, or to fund mortgages for homeowners to purchase new homes or rehabilitation of existing ownership homes Priorities for Use of Net Operating Income (Cash Flow) 1. Payment of residual receipts (eliminated at loan conversion to grant) 2. Programmed for purchase of new homes, or to fund mortgages for homeowners to purchase new homes or rehabilitation of existing homes 3. A minimum of $500,000 accumulated in net cash flow to remain with the property for the benefit of the property 4. Net cash flow uses above the accumulated $500,000 minimum requires City’s written approval which will not be unreasonably withheld Reporting Annual audited financial statements; annual income eligibility compliance report; annual affordability sale price compliance report Allowable Debt Requires City’s written approval Subordination Requires City’s written approval 1:1,128 0.00.020.0 0 Miles Disclaimer: This map of the City of Santa Monica has been provided for illustration purposes only. Every reasonable effort has been made to ensure the accuracy of the maps provided, however, someinformation may not be accurate. The City of Santa Monica ("City") provides this map on an "AS IS" basis. The City assumes no liability for damages arising from errors or omissions. THE MAPS AREPROVIDED WITHOUT WARRANTLY OF ANY KIND, either expressed of implied, including but not limited to, the implied warranties of merchantability and fitness for a particular purpose. Do not makeany business decisions based on this map before validating your decision with the appropriate City office. Parcels LARIAC4_Date_Flown 1 | Page                                On Site Management Procedural Guide                   [SIDEBAR TITLE]                        2 | Page    INTRODUCTION    The purpose of this guide is to outline expectations and procedures regarding the management of the operations. This  procedural guide will help in making fair and reasonable decisions.  From time to time, modifications and revisions of  policies and procedures are necessary. The guide will be updated at least annually to include any changes that occur.      Section 1 Customer Service, Resident Satisfaction & Time Management………………………………………………….. Page 3    Section 2 Financial Management……………………………………………………………………………………………………………….Page 4    Section 3  Resident Move‐in & Move Out………………………………………………………………………………………………….Page 11    Section 4 Legal………………………………………………………………………………………………………………………………………….Page 13    Section 5 Safety…………………………………………………………………………………………………………………………………………Page15    Section 6 Reports…………………………………………………………………………………………………………………………………….Page 16     Section  7 Administration………………………………………………………………………………………………………………………….Page 19    Section 8 Resident Relations…………………………………………………………………………………………………………………..Page 23                                3 | Page    Customer Service, Resident Satisfaction & Time Management    Customer Service  The most essential part of your job is customer service.  Our responsibility as Managers, office staff and maintenance team  members is to provide excellent customer service to all of our residents and anyone you come in contact with.      Always remember:   Make customers feel important and appreciated. It is a choice for a person to choose your community. Treat  them as individuals, make them feel important. Use their name in conversation, be sincere. People value sincerity,  it creates good feeling and trust.    Eliminate Distractions. Stop working when a person approaches you, close your email and turn off your cell  phone. If you are busy, schedule an appointment so you can give your undivided attention to the customer.    Be a good listener. Listen with your eyes. Don’t make assumptions that you know what the person wants. Take  the time to identify a person’s needs by asking questions and concentrating on what they are really saying. Listen  to their words, the tone of voice, body language, and most importantly, how they feel.    Body language is key. Watch your body language in conversation, watch their body language. Did you know body  language is a huge component of conversation?    o Body Language accounts for 55% of the overall message.  o Tone of voice accounts for 38% of the overall message.   o Smile when you speak.   Words (the literal meaning) accounts for only 7% of the overall message.   Understanding is crucial. Explain to the customer the why, the how and the where.  Simplify the process to help  customers understand. If a customer doesn’t understand the why, the how and the where they can get confused,  impatient and angry. Take the time to explain and make sure there is a mutual understanding.     Hold yourself accountable. Don’t blame others. When something goes wrong, apologize. It's easy and people like  it. Deal with problems immediately and let customers know what you have done to resolve the problem.    Welcome Complaints. Don’t become defensive, rather, make it simple for customers to complain. Value their  complaints. We may dislike criticism, however, it gives us an opportunity to improve. Even if a person is having a  bad day, go out of your way to make them feel comfortable. Encourage and welcome suggestions about how you  could improve.     Resident Service & Satisfaction  Keeping our residents happy with the service we are providing and the homes in which they live in is an excellent way to  sell our communities.  Affordable rents, resident activities, great amenities, beautiful landscaping and a good  neighborhood all come into play when considering resident satisfaction.    Time Management  Each day you are required to address many different tasks. Your ability to accomplish the various tasks entails managing  your time wisely so that all items are completed. A master calendar for the weekly, monthly, quarterly, and yearly  reminders should be created. In addition, work as a TEAM!                              4 | Page    FINANCIAL MANAGEMENT    Rent Collections  It is crucial to accurately collect, process, and record rent payments in a timely manner. Rent is due on the 1st day of each  month and we must plan accordingly to ensure this important task is being completed daily as checks are coming in.   Ensure each resident receives their rent statement prior to the 1st of the month, as it is required by the MRL.  Cash is not acceptable under any condition. For the safety and well‐being of all community associates, our company policy  prohibits acceptance of cash. A professional prepared sign placed conspicuously in the office shall read that “Cash is not  accepted”.   Rent is only accepted in the form of a check or money order and made out to Community only.   Rent is only accepted by the registered resident.   3rd party checks are not accepted.   Rents must be entered daily after the 1st and no later than the 6th.   Rents must be kept secure in a locked drawer, organized and all accounted for.    Checks must have the resident’s name and current address/space on them.   Endorse each check received and write the space number on the check.     Processing Cash Receipts in MRI  When entering batches, note that they must be entered into MRI first before you enter into Partners Bank. This process  is necessary to ensure batches will be put together accurately and will match what you will process with the bank. To get  ready to do a batch following these steps:  5 | Page    6 | Page    Late Fees  A late fee is assessed when a resident pays after the 6th day of the month.   A resident may drop off their payment in your  office drop box any time prior to the 6th day of the month.  Any rents received in the office when you come into the office  on the 7th day is considered late. Always follow the late fee policy and penalties listed on your community’s rental  agreement.    Adjustments  Adjustments are made to anything that a resident pays that may differ from MRI. Any account that has a balance that is  not a delinquency includes:       Rent concession    Employee housing   Utilities concession   Late Fees   Additional charges   Parking   Any other credits     An adjustment report will be completed each month by the Community Manager and submitted to Kristin Hilzinger for  review. She will work closely with the Manager on all adjustments to make sure we have the proper information submitted  to accounting and proper adjustments are posted.    Park Billing  Park billing is the company that generates billing statements for utilities at most of our communities. Meter reads, Meter  re‐reads, Meter changes and closing utilities on a home that is being sold is the only communication that we will do with  Park Billing as all of our changes are now sent through MRI’s data file.    Meter Reads:  Meter reads should be done monthly by a Park Utilities employee (unless reading is performed by the Park’s  Maintenance personnel) on the same day every month.  Per CPUC guidelines variations should be no more than 3 days  prior or after.   7 | Page    Meter Change Form: During your time of meter change outs you need to notify Park Billing when you change a meter so  they can keep track of the new meter reads. Listed below are the steps you take to complete this form.   8 | Page    Petty Cash  Petty cash allows for the purchases of small amounts of supplies, services and incidental one‐time purchases that the  community needs when they are unavailable through the approved vendors.  Petty cash funds must be always accounted  for and secured at all times. Please refer to the Petty Cash Standards and Petty Cash Agreement for additional information  on how to properly maintain petty cash.    Petty Cash Reconciliation:  You must reconcile your petty cash each month and ensure you keep an accurate account for all spending and our petty  cash account balances out.   Keep in mind the following when processing petty cash:  9 | Page    Birtcher Anderson Realty Management handles all operations contracts.  This means that any work or projects from your  current operations budget will need to be filtered through your Asset Manager and contract is signed by Jeff Eales, Sr. Vice  President of Asset Management.   As noted on the previous section, submit a bid comparison with bids to your Asset Manager. Once you have received an  approved Bid Comparison Form from your Asset Manager, you’ll draft a Short Form Contract.  Keep in mind the following:  10 | Page    Quarterly, as part of the inspection, pull a rent roll to ensure charges are correct for each resident who has an occupied  RV space.    Lien Sales / Warehouse Liens  A public sale occurs after we have received judgement on an eviction.  Our legal firm schedules the warehouse lien date  and send you the necessary notices in preparation, which can take approximately 21 days.  A credit bid package will be  sent to you which includes the following:  11 | Page    RESIDENT MOVE‐IN & MOVE‐OUT  New Resident Move‐in  Anyone can apply to live at your community.  When you receive an inquiry, tell them about your community, highlight the  great amenities and encourage them to come and apply.  Describe the application process and when they can expect a  response for approval.  Per Fair Housing Laws, it can take up to 15 business days for a response after a complete application  is received.  Be sure to enter them as a guest in MRI when you first make contact with a prospective resident.    Application Process & Screening Criteria: An application Process and Screening Criteria is available for each community.   This must be provide to your applicants when applying for residency to ensure they are aware of the requirements in  order to move‐in. Communicate to your applicants the process and what they can expect during the process and advise  them that incomplete packets will not be accepted.    Application Process:  In order to properly process a new application, follow these steps:  12 | Page    13 | Page    LEGAL    Legal Notices  A resident’s tenancy may be terminated due to unpaid rent, a breach of the lease agreement or violating the Community  Park Rules and Regulations.  Be sure to familiarize yourself with your community rules and the most current Mobile Home  Residency Laws (MRL) to ensure we properly address non‐compliance issues.  Civil Code section 798.56 requires rent be due for at least five (5) days after the due date.  If rent is due on the first (1st),  then the tenant has up to the sixth of the month to pay rent, utilities and other charges.  If the sixth (6th) day falls on a  weekend or holiday, then the tenant gets until the following workday.  3/60 Notice  When a resident fails to submit their rent payment timely, prepare and serve the 3/3/60 day notice for rent, utilities and  other charges. Our goal is to have these prepared, submitted, approved and served by the 10th of the month when  possible.   The sooner the notice is served the greater impact on tenant.   The tenant has three (3) days to pay the amount in full.  If the third (3rd) day falls on a weekend or holiday, the tenant has  through the following workday to cure. The park does not accept partial payments unless a previous written agreement  has been approved and executed.     The 3/60 packet is located in SharePoint.  To complete a 3/60 package, keep in mind the following:  14 | Page    have your Park Rules & Regulations handy before you proceed with completing the 7‐Day so that you can quote the proper  rule.    The 7‐Day Notice is located in SharePoint.  To access the form, Go to your Community > Community Folder > Legal > 7 Day  Notice, click in the circle to the left of the Notice. Then click download.  The pdf will load at the bottom of the page.  Then  click on the form, now you can enter the following data:    15 | Page    SAFETY    Emergencies  An emergency situation which poses an immediate threat to life or personal injury or the likelihood of substantial property  damage is considered an emergency and quick action is required on your part.  Emergencies in all their forms can never  be categorized for the purpose of this manual.  If you are ever in doubt whether a situation should be treated as an  emergency, perform as if it were and contact your immediate supervisor.    Immediately after an emergency situation, complete an Incident Report and submit to your immediate supervisor and  Asset Manager.  The incident report is completed in Happy Inspector.    Safety Handbook  A Safety Handbook is located at each community. It’s imperative that each employee is familiar with the safety manual  and know where it is located.  Each new employee will review the safety procedures to include the Safety Checklist and  Injury & Illness Prevention Program (IIPP).  Additionally, the Driver’s Safety Plan should be reviewed with each employee,  signed and dated and kept in the safety handbook.    Emergency Preparedness Evacuation Procedures  Each community has an emergency preparedness evacuation plan specific to their community.  This plan should be kept  in the community Safety Binder as well as posted in a visible area in your office. Ensure that all staff is familiar with the  plan and should there be an emergency, you and your team are well prepared.  As a reminder, for each new move‐in you  will need to provide your new residents with a copy of the emergency preparedness evacuation plan for their reference.     Automated External Defibrillator (AED)  The AED device is a portable device that can shock the heart back into a normal rhythm.  AEDs are used to treat sudden  cardiac arrest.  This device must be at each community and should be securely places outside your clubhouse or pool area.   The AED must be tested on a monthly basis, on the 1st of each month.  An email will be sent to you to test the machine  and a response is required to document that the AED has been properly tested and working.                          16 | Page    REPORTS    Various reports are due on a monthly basis.  A monthly property management calendar is issued the 1st week of each  month to the communities with reminders of various due dates that occur throughout the month. The monthly property  management calendar will help you stay organized and plan through the month.    Petty Cash  Petty cash allows for the purchases of small amounts of supplies, services and incidental one‐time purchases that the  community needs when they are unavailable through the approved vendors.  Petty cash funds must be always accounted  for and secured at all times. Please refer to the Petty Cash Standards and Petty Cash Agreement for additional information  on how to properly maintain petty cash.    Petty Cash Reconciliation  You must reconcile your petty cash each month and ensure you keep an accurate account for all spending and our petty  cash account balances out.   Keep in mind the following when processing petty cash:  17 | Page      Manager Report: Each Manager is responsible for completing the Managers Report to summarize the day to day  operations activity for the last 30 days.  The summary includes, financials, health and safety, repairs, capital expenditures,  legal activity and resident activities.   Due Date: 20th of each month  Due to: Asset Manager     Light Checks: Light checks in the evening is necessary to locate any dark areas or find if any lights are in need of bulb  replacement or repair. This is a very important task as it prevents any health and safety issues at your community.  Proper  documentation of the light checks is essential and must be documented in your interactive light check map report.   Due Date: 25th of each month  Due to: Asset Manager     Community Evaluation: It is necessary to walk your property on a regular basis assess and document liabilities. This report  is completed on a monthly basis and is completed through Happy Inspector.    Due Date: 25th of each month  Due to: Asset Manager     Tail Gates: Every month you and your staff will receive a safety topic which will be reviewed and discussed as a team.  You’ll need to fill out Tail Gate Meeting form acknowledging that you have reviewed and completed the required  monthly safety trainings. Submitting early and prior to the deadline monthly for 12 consecutive months gives you and  your team the chance to earn a movie day.    Due Date: 25th of each month  Due to: Wendy Anderson     Posted Checks:  Once checks have been properly deposited earlier in the month, all checks must be submitted to Raidis  Smet at the Caritas Corporation office.     Due Date: 28th of each month  Due to: Raidis Smet     Check Requests: Often times we may need to request a check.  A check request form must be completed and submitted  to your Asset Manager for review and approval.  Back up documentation is required to support the request. Below are  some examples of when we may need to request a check:  18 | Page    Timecard Approval: Check your timecard regularly. It’s imperative we review timecards weekly to ensure they are  accurate and any adjustments are properly made prior to payroll processing.  For Managers, any adjustments necessary  must be submitted to your Asset Manager via email to ensure your timecard is completed accurately.  Due date: Weekly on Friday’s  Due to: Asset Manager & in ADP                                                                  19 | Page    ADMINISTRATION  Office Organization  It is critical that the office displays a sense of organization and professionalism. Throughout the day, desk tops, tables  and counters are to be organized and tidy.  The office should smell fresh and clean.  The office should always be inviting  and create a sense of calm and welcome to all that enter.      Maintaining Required Files  You are required to maintain a variety of files and records at your community.  This includes but not limited to: Resident  Files (current & previous), communication logs, vendor files, maintenance files, accounting files, budget files, warranty  files etc.  Each property is to have the following binders at the property, neatly organized and labeled and must be updated  annually:  20 | Page    Forms  Various forms are available for the use of the community. We continue to evaluate our forms and their use and aim for  consistency and standardization.  We ask that you refrain from individual form creation and instead request a form to  your Asset Manager and we will either provide you with an existing form or create one that will be utilize throughout  the portfolio.  Required forms such as the below may be located in SharePoint.   21 | Page    22 | Page    Email Signature: A professional and standard Caritas email signature is required for each employee using a Caritas email.   Make sure your signature is set up for all outgoing emails, this includes replies.  Phone Call Log Book:  It is good practice to maintain records of all the calls that are filtered through the office.  It’s a  great way to reference back and do follow up calls.   Use a system that works best for your office and make sure  everyone in your office uses it.  For follow up calls, return phone calls within 24 hours during business hours.  Office Hours  Each property has a set office hour schedule.  Make sure the office hours are properly displayed in the office.  When the  office needs to be closed, please makes sure to place a message of office closures in a visible place so that residents are  properly informed.     Uniform/ Dress Code  As BARM & Caritas Corporation representatives, all on‐site associates must wear the allowed uniform. Keep in mind that  a professional image is expected by all to include a clean, neat and professional image.  For more details and additional  information regarding the dress code policy, please refer to the BARM Employee Handbook.    Name Tags  All office staff is given a name tag and it must be worn during business hours. The name tag must be worn over the shirt  and be visible. This promotes great customer service when we let people we are in contact know who they are talking  to.                                  23 | Page    RESIDENT RELATIONS    Rental Assistance Program  This program is designed to help our residents with financial hardship to cover rent and/or utilities for a period of time.   If you find that someone is in need of assistance to pay their rent due to a financial hardship, have the resident complete  a Rental Assistance Application form and submit to your Asset Manager for review and approval.  Include the following  information:    Maintenance Assistance Program   This program is designed to help our residents with assistance to maintenance issues.  If you find that someone is in  need for assistance for maintenance repairs for their home, have the resident complete the Maintenance Assistance  Application and submit to your Asset Manager for review.  The application will be evaluated by a representative at  Caritas and you will be notified of the results.    Resident Events  Various events are planned throughout the year and have been budgeted. Refer to your budget for the already pre‐ approved funds allocated for each events and ensure follow through with your events.      24 | Page    25 | Page    Site Associate Acknowledgement  We are dedicated to each and every individual’s success and will be here to guide you along the way. Please reach out to  your trainer or Asset Manager with any questions you may have or if specific training is needed.      Trainer Name: ______________________________________  Phone #: ___________________  Asset Manager Name: ________________________________  Phone #: ___________________  Follow Up Date: _________________________________________    NOTES  1 of 6 Housing Commission Meeting: November 16, 2017 Agenda Item: 5-B To: Chair and Housing Commission From: Barbara Collins, Housing Manager Subject: Ownership Transfer of Mountain View Mobile Home Park and Housing Trust Fund Loan to the Caritas Corporation Recommendation Staff recommends that the Housing Commission recommend that the City Council authorize the City Manager to execute disposition and loan agreements with the Caritas Corporation, a California-based, 501(c)(3) nonprofit corporation (Caritas), to become owner and operator of the City-owned Mountain View Mobile Home Park (Park), pursuant to the terms identified in this report. Executive Summary Council directed the City Manager to enter into exclusive negotiations with Caritas to transfer ownership of the Park pursuant to Council-approved parameters. Caritas and staff negotiated and refined the terms of transfer to reflect both Caritas’ and the City’s goal to provide and preserve quality affordable housing. Background The City acquired the Park in December 2000, to create opportunities to preserve affordable housing at the Park. As part of the purchase, the Park was deed-restricted for future occupancy by moderate-income households. On December 11, 2012, Council directed staff to explore disposition of all City-owned affordable housing properties including the Park. Council provided the direction to focus on the City’s core-competencies of administering rental-assistance programs and Housing Commission Report 2 of 6 creating affordable housing opportunities, and recognizing that affordable housing organizations, rather than the City, possess core competencies in owning and operating affordable housing. On April 12, 2016, Council authorized staff to issue a request for proposal (RFP) from affordable housing organizations to acquire the Park and operate the property as affordable housing. Staff engaged Park residents for comments and feedback at three scheduled community meetings prior to issuing the RFP on September 28, 2016. Staff received proposals from three organizations by the December 1, 2016, deadline. On April 25, 2017, Council authorized the City Manager to enter into exclusive negotiations with Caritas to transfer ownership of the Park pursuant to Council- approved parameters. The negotiation parameters for transfer focused on sustaining affordable rents pursuant to covenants and Rent Control Law, maintaining long-term financial viability, minimizing the investment of limited City housing funds, and providing quality property management and resident engagement. Discussion Caritas and staff negotiated and refined the terms of transfer to incorporate Caritas’ expertise as owner and operator of mobile home parks, and reflect both Caritas’ and the City’s goal to provide quality affordable housing. The following is a culmination of recommended terms. 1. Caritas to honor existing affordability covenants, Rent Control law, rental agreements, and exemptions. 2. Caritas to incorporate a systematic shift from a rental model to an ownership model for new homes. 3. An infusion of $800,000 from Caritas corporate reserve funds for common area improvements. 4. A $500,000 operating reserve City loan to cover year-by-year operating losses during the first 5 years. 5. A commitment of sale proceeds generated directly or indirectly from the sale of the existing 29 rental homes to be programmed for purchase of new homes, or to fund mortgages for homeowners to purchase new homes or rehabilitation of existing ownership homes. 6. Caritas accepts the City’s option to take title to the Park at the expiration of the affordability covenant for $1. A term sheet is provided in Attachment A. Caritas has demonstrated its commitment to preserve affordable housing, collaborative approach to managing a mobile home park with both homeowners and renters, a plan for long-term financial sustainability, and a solid framework for property management. 3 of 6 1. Resident Protections Caritas pledges to honor existing restrictions (Rules & Regulations, Regulatory Agreement, Rent Control law), rental agreements, and exemptions provided to residents. Caritas accepts terms of the existing Regulatory Agreement, including affordability restrictions at or below 120% of area median income and local preference priorities, and agrees to enter into a new regulatory agreement to lengthen the affordability covenant. Caritas affirmatively agrees to take ownership of the 29 rental homes owned by the City. Of the 29 homes, 26 are currently occupied by long-term renter households. Caritas commits to owning and maintaining the 26 occupied homes as quality, affordable, rental homes for the tenure of the existing households. The three remainder homes were recently vacated. Caritas proposes transitioning a resident manager and a resident maintenance staff into two of the unoccupied homes and/or selling one, two, or three of the homes to moderate-income households with financial capacity to carry the cost of home ownership. Caritas also affirmatively agrees to not terminate or alter the one-time, temporary encroachment exemption provided by Council. The exemption protects 8 existing households where their home and/or setback encroach into one or more adjacent space(s). Caritas offers a strategy to encourage these households to conform to current lot lines with ownership opportunities for new homes or rehabilitation options for existing ownership homes to resolve the 11 spaces encroached upon by the 8 homes. Where a resolution cannot be reached, Caritas commits to uphold the exemption for the 8 existing households and explore design options for homes sized to fit the 11 spaces with encroachment challenges. 2. Home Ownership Model Caritas proposes a home ownership model at the Park where residents own their homes and rent only the spaces. Caritas’ proposal analyzes the economics of manufactured home ownership for extremely low-, very low, low-, and moderate-income households. Their analysis concludes that moderate-income and some low-income households could qualify to financially carry the cost of home ownership, while extremely low-, very low-, and some low-income households could not financially sustain the cost of home ownership without assistance. Caritas has experience with counseling renters about home ownership, and a simple application program designed to educate and encourage home ownership. Caritas has successfully demonstrated pairing funding sources with 36 households for the purchase of new manufactured homes at mobile home parks owned by Caritas. Caritas identifies funds from the Cal Home Grant Program, Assembly Bill 136, and California Department 4 of 6 of Housing and Community Development’s Mobilehome Park Rehabilitation and Resident Ownership Program as possible sources. As indicated in an earlier section of this report, three homes in the City’s ownership are currently unoccupied and are available to Caritas for transitioning on-site staff into the Park and/or for sale to moderate-income households. Caritas has committed to programming all sale proceeds generated directly or indirectly from the sale of existing rental homes for purchase of new homes, new homes purchase assistance, or to fund mortgages for homeowners to purchase new homes or rehabilitation of existing ownership homes. 3. Caritas Investment for Common Area Improvements Within 5 years of ownership, Caritas commits to complete improvements to Park common areas. Common area improvements include and are not limited to the existing office, community room, laundry facilities, premises lighting, property security, and other common amenities as warranted. Caritas commits to infusing $800,000 in the form of an unsecured loan from Caritas corporate reserves toward this effort to enhance the quality and living experience of Park residents. This Caritas loan will be amortized over 30 years at an interest rate not to exceed 5% compounded annually, with debt service paid from net operating income. 4. Financial Stability Historically, the Park operates at a loss of approximately $100,000 per annum due primarily to the income loss from 24 vacant spaces. Caritas proposes increasing the number of occupied spaces progressively by a minimum of two spaces per year until maximum occupancy is achieved. Additional occupancies will increase income, while shared economies of scale gained from owning and operating 21 mobile home parks will decrease property management expenditures. Caritas has considered that the City’s ownership as a public entity exempted the Park from property taxes. The exemption will expire upon transfer potentially increasing operating expenses. However, a property tax exemption in whole or in part would be available to the Park under Caritas’ ownership if used for rental housing occupied by lower-income households. It is Caritas’ experience with acquisition of 20 parks that a transition period is expected to gain cooperation from all residents to accept the request to voluntarily complete income verifications that can be utilized to obtain a property tax exemption for the Park. Caritas has demonstrated success in gaining 100 percent cooperation from 3,665 households in its portfolio, and is confident that their approach will garner equal success at the Park. Caritas conservatively projects financial stabilization by year 5 of ownership, consistent with their acquisition experience at other mobile home parks. 5 of 6 5. Housing Trust Fund Loan Caritas determined that the economics of the Park at transfer could not sustain a combination of negative operational cash flow and debt service for the $800,000 Caritas loan without necessary reserves. Caritas requests a $500,000 operating reserve loan from the City to cover year-by-year operating losses and fund a $50,000 per annum reserve for the first 4 years of operation. The City loan would convert to a grant that is tied to performance objectives. The proposed loan would cover up to $100,000 per annum in operating losses as warranted for in the first 5 years to be disbursed on an annual basis not to exceed $100,000 per annum. Undisbursed portion of the loan would be surrendered at the end of year 5. The loan would automatically convert into a grant at the end of year 7 if total space occupancy at the Park increases from the existing occupancy count of 81 to 94 spaces within the first 7 years of ownership at an average rate of two or more additional occupancies per year. There are 13 vacant spaces readily available for new homes and 11 spaces with encroachment challenges. Loan conversion to grant after year 7 and before year 10 would require the City’s written approval. The proposed loan would be secured by a Deed of Trust, Regulatory Agreement, and an Option Agreement enabling the City to take title to the Park for $1 at the expiration of the affordability covenant. 6. Priorities for Use of Cash Flow Caritas’ proposal projects financial stabilization by year 5, and prioritizes cash flow for preserving affordable housing at the Park. The order of priority for cash flow is as follows: 1. Payment of residual receipts  Residual receipts, if any, are projected to be minimal in the first few years of operation  50 percent of residual receipts are paid to the City for the life of the loan  Residual receipts payments would be eliminated at loan conversion to grant 2. Programmed for purchase of new homes, or to fund mortgages for homeowners to purchase new homes or rehabilitation of existing homes 3. A minimum of $500,000 accumulated in net cash flow, above and beyond reserves, to remain with the property for the benefit of the property; then 4 Net cash flow uses after the minimum $500,000 accumulation requires City’s written approval which will not be unreasonably withheld 6 of 6 7. Management Plan Caritas strives to develop resident-focused communities rather than property-focused communities. Caritas attributes their connection with residents to regular town hall meetings. The initial meeting, held within 30 to 45 days of ownership, will introduce residents to Carita’s philosophy and operating goals to provide and maintain quality affordable housing, and solicit feedback from residents about resident priorities. Caritas recognizes that each community is unique and works with the residents in each community to determine their preferences to establish an environment where residents not only feel safe but that their needs are being met through connective services, activities, and support on a regular basis. In addition to the initial town hall meeting, Caritas anticipates scheduling special topic (i.e., ownership opportunities, community area improvements) meetings to engage and provide residents with opportunities to candidly address concerns and access to technical assistance. Annual town hall meetings will be attended by the Caritas executive team and provide residents direct personal access to the Caritas executive team. Caritas has a comprehensive management agreement with Birtcher Anderson Realty Management (BARM) to manage all mobile home parks owned by Caritas. The structure provides a cohesive relationship between Caritas and BARM. BARM has demonstrated their commitment to communicative and effective property management through a comprehensive management plan and procedural guide developed through 40 years of experience. The plan clearly identifies standards and procedures for day- to-day operation and resident engagement. Next Steps Staff is seeking comments from the Housing Commission on the negotiated terms presented in this report. Based on the Housing Commission’s recommendations, staff would seek Council authority to execute disposition and loan agreements with Caritas to become owner and operator of the Park. Prepared by: Ava Lee, Senior Development Analyst Attachments: Attachment A –Term Sheet ATTACHMENT A  MOUNTAIN VIEW MOBILE HOME PARK  TERM SHEET – November 3, 2017      Loan $500,000 Housing Trust Fund Loan; covers up to $100,000 per year in operating losses for the first 5 years and disbursed on an annual basis not to exceed $100,000 per year; undisbursed portion of loan is surrendered at the end of year 5 Interest Equal to Federal Home Loan Mortgage Corp. rate for 30-year fixed-rate mortgage, compounded annually Term 55 years, with 25 year extension if in compliance with the Regulatory Agreement; loan balance and accrued interest are forgiven at the end of 80 years if in compliance with the Regulatory Agreement Repayment Payments of principal and interest shall be made from residual receipts in an amount equal to one-half of residual receipts on an annual basis Prepayment The loan may be prepaid at any time without any penalty; affordability covenant will remain in effect for at least 55 years, regardless of any prepayment, and additional 25 years if applicable Security Deed of Trust, Regulatory Agreement, and Option Agreement Conversion of City Loan to Grant The City loan automatically converts to a City grant at the end of year 7 if total space occupancy increases from 81 to 94 spaces within the first 7 years at an average rate of 2 or more additional occupancies per year; loan conversion to grant after year 7 and before year 10 requires City’s written approval Resident Protections The Park Owner or Owner of existing manufactured homes for rent may not terminate or refuse to renew the rental home or space lease of a renter except in compliance with applicable federal, state, and local law and regulations The Park Owner may not terminate or alter a one-time, non-transferable, temporary encroachment exemption provided to 8 households with existing encroachments into adjacent spaces Affordability Consistent with existing Regulatory Agreement - at or below 120% of Area Median Income Leasing Priority Consistent with existing Regulatory Agreement - local preference priorities Allowable Employee Housing Requires City approval for up to 2 spaces Purchase Option At the expiration of the affordability covenant, the City will have the option to take title to the property for $1 Conditions of Loan Within 5 years of transfer, Caritas to complete improvements to the common areas (community room, lighting, property security, etc.) with an unsecured Caritas loan of up to $800,000, amortized over 30 years at an interest rate not to exceed 5% Reserves Deposit Years 1-4: $50,000 /year; $35,000 /year thereafter Asset/Management Fees Asset and management fees escalations greater than 2% per year requires City approval Use of Proceeds from Sale of Homes Sale proceeds generated directly or indirectly from the sale of existing rental homes to be programmed for purchase of new homes, or to fund mortgages for homeowners to purchase new homes or rehabilitation of existing ownership homes Priorities for Use of Net Operating Income (Cash Flow) 1. Payment of residual receipts (eliminated at loan conversion to grant) 2. Programmed for purchase of new homes, or to fund mortgages for homeowners to purchase new homes or rehabilitation of existing homes 3. A minimum of $500,000 accumulated in net cash flow to remain with the property for the benefit of the property 4. Net cash flow uses above the accumulated $500,000 minimum requires City’s written approval which will not be unreasonably withheld Reporting Annual audited financial statements; annual income eligibility compliance report; annual affordability sale price compliance report Allowable Debt Requires City’s written approval Subordination Requires City’s written approval     From:PNA SM To:Clerk Mailbox; councilmtgitems; mvmira_inc@hotmail.com Subject:Agenda Item 8C 12/12/2017 Proposed Transfer of Mountain View Mobile Home Park Date:Monday, December 11, 2017 3:33:51 PM Dear City Council and staff, please approve staffs recommendations for Agenda Item 8 C. This Low Income Project is older than the 17 years City Hall has owned MVMHP, as you know there was 10 years of Landfill Gases and responsibilities and condo conversions andLaw suits of City hall Park by park owners and Residents Law Suits and general mayhem asserting ownership for the park and eventual court settlement of $8 million dollars that stretchthe time line too 27 years of struggle by MVMHP residents to preserve their homes and City to acquire the land. Andy Agle should get the Pulitzer prize for creative writing, his staff report makes it soundlike he has accomplished a job well done, when the park has so many problems that he and his team created/made that did not exist before the project began as a City Owned Multifamilyproperty, that said. Please approve staffs recommendations in Andie's Staff Report. Yours Sincerely: Cris McLeod Mt View Residents Assoc Secretary & Pico Neighborhood Assoc Chair. Item 8C 12/12/2017 Item 8C 12/12/2017 Item 8C 12/12/2017 Item 8C 12/12/2017 From:Michele Cole To:Clerk Mailbox; councilmtgitems Subject:I support Agenda Item 8C for tonight"s meeting of 12/12/2017 Date:Tuesday, December 12, 2017 12:50:22 PM Dear Council Thank you for the opportunity of writing. I support City Council Agenda item 8C staff recommendations - The transfer of ownership of the Mtn. View Mobile Home Park to Caritas non profit housing corporation. Please note that Caritas will be the owner and operator of the Mobile Home Park. I am a resident of Mtn. View Mobile Home Park and I have been a resident since 1984. I totally support housing staff's recommendation to transfer ownership., I hope the transition can happen as soon as possible. The current management company REC&S is obscenely overpaid and ineffective. Despite the fact that REC&S was paid approx. 500K/year for 6 to 7 years, the new owner (Caritas) will have to spend 800K to improve the common areas (as stated in the staff report). Please support Item 8C - the transfer of ownership for Mtn. View Park. Thank you Michele Cole 1930 Stewart St. #A9 Santa Monica, CA 90404 Item 8C 12/12/2017 Item 8C 12/12/2017 From:Michele Cole To:michelecole2@aol.com; Clerk Mailbox; councilmtgitems Subject:Re: I support Agenda Item 8C for tonight"s meeting of 12/12/2017 Date:Tuesday, December 12, 2017 12:55:21 PM -----Original Message----- From: Michele Cole <michelecole2@aol.com> To: : clerk <: clerk@smgov.net>; councilmtgitems <councilmtgitems@smgov.net> Sent: Tue, Dec 12, 2017 12:50 pm Subject: I support Agenda Item 8C for tonight's meeting of 12/12/2017 Dear Council Thank you for the opportunity of writing. I support City Council Agenda item 8C staff recommendations - The transfer of ownership of the Mtn. View Mobile Home Park to Caritas non profit housing corporation. Please note that Caritas will be the owner and operator of the Mobile Home Park. I am a resident of Mtn. View Mobile Home Park and I have been a resident since 1984. I totally support housing staff's recommendation to transfer ownership., I hope the transition can happen as soon as possible. The current management company REC&S is obscenely overpaid and ineffective. Despite the fact that REC&S was paid approx. 500K/year for 6 to 7 years, the new owner (Caritas) will have to spend 800K to improve the common areas (as stated in the staff report). Please support Item 8C - the transfer of ownership for Mtn. View Park. Thank you Michele Cole 1930 Stewart St. #A9 Santa Monica, CA 90404 Item 8C 12/12/2017 Item 8C 12/12/2017 REFERENCE – AGREMENT NO. 10602 and 10603 (CCS)