Mobilehome Rent Stabilization & Mobilehome Owner Protections Ordinance

Proposed Draft Ordinance Changes

On February 25, 2025, the City Council will vote on proposed amendments to the Mobilehome Rent Stabilization and Mobilehome Owner Protections Ordinance. The amendments are meant to streamline and provide clarification to the existing text.

A copy of the draft ordinance may be found here

A summary of the amendments may be found here

When:  Tuesday, February 25, 2025

Where: Council Chambers
              6615 Passons Boulevard
              Pico Rivera, CA 90660

Time:    6 p.m.

About the Ordinance

On January 11, 2022, the City Council adopted Ordinance No. 1153, implementing the City’s Mobilehome Rent Stabilization and Mobilehome Owner Protections regulation, which was subsequently amended on March 11, 2025, by Ordinance No. 1190.  The City seeks to prevent and address unreasonable increases in mobilehome park space rents, preserve the affordability of mobilehome spaces, and allow Mobilehome Park Owners to earn a fair return on their investment. The full Ordinance can be found at the following link:  City of Pico Rivera, CA MOBILEHOME RENT STABILIZATION AND MOBILEHOME OWNER PROTECTIONS

Mobilehome Park Owner Annual CPI Rent Increase Application

Under Ordinance No. 1190, Mobilehome Park Owners are required to submit a Rent Increase Application to the City only when proposing to raise space rent. Applications must be submitted on a form provided by the City and include information such as the proposed increase amount, space numbers affected, and any changes to housing services. A fee will apply to the application, as determined by City staff.

 

The Ordinance established the Base Rent as the rent charged on October 13, 2020. Mobilehome Park Owners are permitted to implement a rent increase once every twelve (12) months, based on either seventy-five percent (75%) of the published increase in the Consumer Price Index (CPI) or three percent (3%), whichever is less. In no event may a rent increase exceed three percent (3%) within any twelve (12) month period. If a Mobilehome Park Owner does not impose an allowable rent increase within a twelve (12) month period, the right to that increase is waived.

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:

  1. 2025 Annual CPI Rent Increase Application
  2. Fair Return Application
  3. Capital Improvement Application


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. Fair Return ApplicationNote that this application may be subject to a fee at the discretion 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 9.48.100-9.48.110. Applications must be received within one (1) year 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.

A Capital Improvement cost pass-through shall not increase monthly Rent by more than ten percent (10%), unless approved by the Board due to extenuating circumstances. Only 50% of the capital improvement cost can be recovered.

Note, this application will be subject to a fee at the determination of City staff –  Capital Improvement Application

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. 

Ordinance Exemptions

 Mobilehome space may be exempt from the Ordinance if it meets one or more of the following conditions:

  1. Mobilehome spaces that meet the exemption requirements of the Mobilehome Residency Law or otherwise expressly exempt under state or federal law.
  2. Newly constructed mobile home spaces, for a period of 15 years from the date upon which 50 percent (50%) of the mobilehome park are initially held for rent measured from the date of issuance of a permit or certificate of occupancy for that space, per California Civil Code section 798.45.
  3. Mobilehome spaces used or rented for non-residential uses.
  4. Mobilehome spaces owned managed or operated by a government agency.

Key Ordinance Provisions

  • 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 rent increases upon vacancy, expiration of previously exempt leases under Civil Code §798.17, and in-place transfers. Rent increases in these cases are also limited to the lesser of 3% or 75% of CPI.
  • Mobilehome Park Owners shall offer to Mobilehome Owners a Rental Agreement and prospective residents may cancel within 72 hours per Section 9.48.060(F)
  • The Mobilehome Park Rental Review Board hears applications. Decisions are final and subject to judicial review per Code of Civil Procedures §1094.6.
  • 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.

For additional information and a list of Frequently Asked Questions (FAQs), please visit :

 

Mobile Residency Law Protection Program


Please click on the link for copies of the Mobilehome Park forms:


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.

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