Mobilehome Rent Control
Mobilehome Rent Stabilization & Mobilehome Owner Protections Ordinance
About the Ordinance
The City of Pico Rivera (City) adopted Ordinance 1153 (Ordinance) on January 11, 2022, which implemented the City’s Mobilehome Rent Stabilization and Mobilehome Owner Protections. The City desires to prevent and address unreasonable increases in mobile home parks space rents and help preserve affordable mobile home space rents within the City while permitting mobile Home Park owners to receive a fair return.
The Ordinance established the Base Rent as the rent charged on October 13, 2020. The Mobilehome Park Owner has the right to a Consumer Price Index (CPI) increase every twelve (12) month period which is either seventy-five percent (75%) of the published increase in the CPI or three percent (3%); whichever is greater. In no event shall a rent increase exceed 3% per each 12 months. If a Mobilehome Park Owner does not impose an annual rent increase in any twelve (12) month period, then the Mobilehome Park Owner waives the annual Rent increase.
Ordinance No. 1153 – Mobilehome Rent Stabilization and Mobilehome Owner Protections
Mobilehome Park Owner Annual Registration
On or before January 15th of each year, the Mobilehome Park Owner must register each Mobilehome Space that is rented or available for rent in a form provided by the City. Additionally, the City may request a list of Housing Services available to the Mobilehome Owners. An Annual Registration Fee, as determined by the City, will be required. Fifty percent (50%) of the Annual Registration Fee may be passed through to Mobilehome Park Owners.
Fair Return and Capital Improvement Applications
If a Mobilehome Park Owner contends that the maximum rental increase allowed in any given year does not achieve a fair return or they made significant capital improvements to the mobilehome park, then the Mobilehome Park Owners may file one of the following applications that two petitions could potentially result in increased space rent or a pass-through of costs to the Mobilehome Owner:
Fair Return Application
A park owner may apply for a permanent Fair Return rent increase if they demonstrate that their operating costs have increased by a proportion greater than the approved rent increase. This Fair Return Application may be filed once the Mobilehome Park Owner has provided written notice to the Mobilehome Owner of the approved CPI Rent increase for the Mobilehome Space. Note that this application may be subject to a fee at the determination of City staff. Ordinance section 9.48.050 A defines the application process.
Capital Improvement Application
A temporary additional rent increase is possible if a Mobilehome Park Owner submits a Capital Improvement Application to the City for its review and consideration to recover certain cost per Ordinance section 9.48.060. Applications must be received within one hundred twenty (120) days of completion of capital improvement. Capital Improvements must be for primary benefit, use and enjoyment of Mobilehome Owners and amortized over a useful life of at least five (5) years.
No Capital Improvement cost pass-through shall be approved if the allowable pass-through cost, plus any Rent increase for that year, would result in an increase of the Rent from the prior year of an affected Mobilehome Space by more than three percent (3%), unless approved by the City.
Note this application will be subject to a fee at the determination of City staff.
Capital Improvement Definition: means the addition, substantial repair, or replacement of any improvements to a Mobilehome Space within the geographic boundaries of a Mobilehome Park which materially adds to the value of the Mobilehome Park and appreciably prolongs its useful life or adapts it to new uses, and which is of the same type of improvement as those allowed to be amortized over the useful life of the improvement by the Internal Revenue Code and its regulation.
Mobilehome Owner Applications for Adjustment
Mobilehome Owner can file with the City an Application for Adjustment within one hundred eighty (180) days from when the Mobilehome owner knew or reasonably should have known of a Mobilehome Park Owner potential violation (9.48.050 B.) Potential violations include unlawful rent and/or fees charged, Capital Improvement Pass-Throughs or a decrease in Housing Services. The Ordinance details the process for filing an Application for Adjustment 9.48.050. Note that this application may be subject to a fee at the determination of City staff.
Ordinance Exemptions
Mobilehome space may be exempt from the Ordinance if it meets one or more of the following conditions:
- Mobilehome spaces that meet the exemption requirements of the Mobilehome Residency Law or otherwise expressly exempt under state or federal law.
- Newly constructed mobile home spaces which were initially held out for rent on or after January 1, 1990, per California Civil Code section 798.45.
- Mobilehome spaces used or rented for non-residential uses.
- Mobilehome spaces owned managed or operated by a government agency.
Key ordinance Provisions
- Any mobilehome space lease with a term of less than 12 months, regardless of when signed, will be subject to a City’s local rent control ordinance.
- Any long-term lease signed on or after February 13, 2020 is no longer exempt from local rent stabilization, and the City’s local ordinance will take precedence.
- All long-term leases signed prior to February 13, 2020 shall continue to be exempt from local rent stabilization, but only until they expire, or until January 1, 2025, whichever occurs first.
- Newly constructed mobilehome spaces, which were initially held out for rent on or after January 1, 1990, mobilehome spaces used or rented for non-residential uses, and mobilehome spaces owned, managed, or operated by a government agency are all exempt from the ordinance.
- Only one rent increase is allowed in a 12-month period, and it cannot exceed the allowable rent increase in effect for that period.
- The Ordinance regulates the space rent if a mobilehome space becomes vacant, expiration of an exempt lease or an “In-Place” transfer occurs.
- Mobilehome Park Owners shall offer to Mobilehome Owners a Rental Agreement.
- Mobilehome Park Owners may file a Fair Return Application if they contend that the limitations on rent increases prevent them from receiving a fair and reasonable return with respect to the operation of the property, subject to approval by the City.
- Mobilehome Park Owner may file a Capital Improvement Application to pass through a temporary cost to recover capital improvements, subject to City approval.
- Allowable Capital Improvement pass-through cost and space rent increases can not exceed three percent (3%) from prior year Rent unless approved by the City.
- Mobilehome Owners may file an Application for Adjustment if they contend that a proposed or actual rent increase is not in compliance with the Ordinance, subject to City approval.
- The City is responsible for reviewing and evaluating all applications. Any party dissatisfied by the City’s final decision may appeal to an Oversight Party.
- Any party who violates the Ordinance is subject to an administrative fee not to exceed One Thousand dollars ($1,000).
- Any Mobilehome Owner may bring a civil action for violation of this Ordinance.
Please click on the link for copies of the following:
- Ordinance No. 1153 – Mobilehome Rent Stabilization and Mobilehome Owner Protections
- Frequently Asked Questions
Please click on the link for copies of the Mobilehome Park forms:
- Mobilehome Park Ownership Information
- Annual Mobilehome Park Registration (Form 2a)
- Annual Mobilehome Park Registration (Form 2b)
- Annual Mobilehome Park Registration (Form 2c)
Please click on link for the following applications:
If you have any questions, please contact either Tara Matthews at tmatthews@webrsg.com or call (714) 316- 2111 or Alex Lawrence at alawrence@webrsg.com or call (714) 316-2104.
