The Rancho La Paz Mobile Home Park has residents from both Fullerton and Anaheim.
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Open in new tab Affordable housing is an issue coming up more frequently in the last ten years as predatory “investor” groups purchase apartment complexes, homes in residential neighborhoods, and entire mobile home parks, raising rents, evicting those unable to pay the increase, and here in Fullerton attempting to convert Senior-Only mobile home parks to All Age parks – or evicting residents to sell the land for other purposes.
Some of the 400+ Rancho La Paz homeowners met to discuss the issues.
Fullerton and Anaheim Rancho La Paz Mobilehome Park homeowners received notice on December 9, 2023, of a Zoom meeting called by park owner John Saunders to take place on December 26 at 10 am. Aside from arranging such a meeting on the morning after the Christmas holiday – few residents at the park use Zoom or even have computers or smartphones. However, the result of the Zoom meeting may be sufficient to affect the future in that Saunders could claim he called a meeting and no one came. At stake is the question of whether the park should remain senior-only or go to the All Ages model.
Advice on how to maximize profits when investing in mobile home parks appeared in a LinkedIn article by Saunders’ attorney, Robert Coldren (the article was removed in March 2019).
“If your park is designated as “senior,” consider changing the status to all-age. I know this is sacrilege and counter-intuitive, but consider which tenant profile is more likely to generate income that grows rather than is fixed. Senior or working family? Who is more likely to have time to lobby for rent control? Senior or working family?” – Robert S. Coldren on LinkedIn (Article Removed Mar 2019)
Coldren is a managing partner in Pacific Current Partners, which lists Rancho La Paz as one of its 34 mobile home properties. Saunders, owner of Rancho La Paz, is also a member of the group and involved with Star Management, Star Sales, CORE Properties, and Saunders Property Company.
Star (36 parks) 4,890 spaces; PCP (34 parks) 4,101 spaces).
John Saunders bought the Rancho La Paz Mobilehome Park, which straddles Fullerton and Anaheim, in 2019 and immediately attempted to raise space rents by 40%-60%. The enormity of that increase was brought down by a new state law (AB976 California State Assemblymember Sharon Quirk-Silva), which caps the yearly allowed space rent increase, but Saunders was still able to raise rates high enough that many were forced to sell their homes and leave.
Saunders then turned those properties into rentals – doubling the rent and taking another step toward turning the park into an All-Age by renting to younger people even though the park has been a 55+ Only Senior park since its inception.
At the heart of that action is the fact that an exception in the Fair Housing law allows for parks to be designated “Senior Only” – but that exception only applies if over 80% of the spaces are occupied by at least one person age 55 or older.
An April 2023 Observer update was reported on current conditions at Rancho La Paz.
“Selling of units for residents that choose to go into assisted living or live with children has become more challenging as well; with increases in the space rentals to new buyers, very few seniors meet the criteria for proof of monthly income, which is required to be three times the space rental at (least $5,000. dollars per month). This is not retirement income for any seniors I know. As a result, homeowners lose 10s of thousands of dollars of equity selling under these difficult circumstances. In addition, the park owner will inevitably have a below-market offer to buy the units from owners that can no longer afford to live here and cannot sell due to the lack of park-required income for new residents, thus resulting in more units for the owner to rent out.
We have AB976, a law putting a rent cap on the Mobile home space rent at Rancho La Paz. Out of 398 units here, it covers about a third of the residences. So we have some protection at the same time; we see our safety in this park in Jeopardy.”
What Can Fullerton Do to Preserve Affordable Housing for Seniors?
Discussion of this item will be on the agenda at the Fullerton City Council meeting on Tuesday, December 19, 2023, at 5:30 pm.
Moratorium:
Discussing the same situation as Fullerton’s Rancho La Paz homeowners are faced with now – the Yucca Valley Town Council met in a special urgency session on December 1, 2023. After hearing public comments, the council voted unanimously for a 45-day moratorium preventing the new owner of the 55+ Senior-only mobile home park from converting to an All-Ages designation. The pause allows the council time to study the issues involved, including the city’s responsibility to preserve existing affordable housing and perhaps create a permanent zone ordinance for special needs groups like seniors.
Fullerton City Council could follow Yucca Valley’s example in listening to and acting on the needs of its community. It should be noted that John Saunders and affiliates are generous donors to the campaigns of both Fullerton and Anaheim’s council members. Because the park straddles both cities – both councils are involved in regulating and permitting changes at the park. The only council members not accepting campaign contributions from Saunders or his affiliates are Councilmembers Ahmad Zahra and Shana Charles in Fullerton and Jose Moreno in Anaheim (Moreno no longer sits on the Anaheim council).
Senior Mobilehome Park Overlay District Ordinance:
A number of cities that Fullerton could learn from have successfully put an ordinance in place that preserves the Senior-Only status, including:
•Petaluma voted unanimously to lock in a Senior-Only Overlay Zone for its five mobile home parks in October 2023.
•Thousand Oaks City Council was cheered by residents after voting unanimously in September 2023 – to keep its five mobile home parks designated for seniors.
• Yucaipa successfully prevented the conversion from Senior to All Age by winning in the Ninth Circuit in 2012 when the court ruled that creating an overlay zone restricted to age 55 and above did not discriminate because the senior housing exemption applied. A previous California Attorney General Opinion agreed.
•Huntington Beach added a Senior Residential Overlay District amendment to its zoning ordinance in 2014.
•San Juan Capistrano amended its municipal code by adding a Senior Mobilehome Park Overlay District in September 2017.
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Categories: Local Government, Local News
Crack “reporting” from observer again. Jung didn’t take any money from Saunders. But you don’t like him so you continue your obvious bias. Shame!
Hi Dennis – I think you are absolutely right about Jung not taking money directly from Saunders. Campaign donation records for Fullerton’s candidates show direct contributions from Saunders to Dunlap and Whitaker plus contributions to those two from various mobile home owner political action committees like Manufactured Housing PAC, Western Manufactured Housing Assoc. PAC, Real Estate PAC (CREPAC), CA Apt Assoc PAC, Apt Assoc of OC PAC, various “Investment” and Property Management companies, and others. Observer should correct that.
It’s sad that the Observer continues to show bias without balance. The writers continue to have a fetish for Fred, Nick, and Bruce. The “Observer Mob” went and sat behind Dunlap’s family making obscene remarks. It was an obvious intimidation act. I am embarrassed as a progressive to see the hatred espoused by people I once agreed with.
@Pinky Pi aka Sally – I do not remember anyone that I knew say anything obscene. Did they identify themselves as Observers? I had no idea that his family was there until Dunlap said something. However, I don’t remember, were they there last year?
Regardless if they were there last year, this year or the year before people should have manners and not be saying stuff like that in front of little kids. As Bernard says “SHAME ON YOU”
Who cares if they were there last year, right? Completely irrelevant.
Filed under anonymous biased screeds
The seniors are begging for help again from City Council. I bet the Harrisons will be there to try to appeal to deaf ears.
The whining and crying crowd that uses this paper for news will be emboldened by the 20-40 people who show to meetings because they’ve got nothing better to do. 3 minutes of fame for the shaking guy with the bad attitude, the lady who speaks English but uses an interpreter, and the guy who thinks auto malls are a fix all.
I infer from your open hatred for your neighbors that you consider your position to have little or no chance of public support.
Those that do think they have a chance tend to be tactically nicer. Even if they’re really not nice.
“Those that do think they have a chance tend to be tactically nicer.”
And that’s why Zahra isn’t Mayor. You don’t get votes by calling people offensive in public. But you you knew that, right?
Either you’re right and council majority is petty, reckless and undemocratic in their willingness to shut D5 out of the mayorship to penalize a guy they just personally don’t like.
Or I’m right and the conservative council majority is pulling a power play and shutting a more politically liberal district out of power by choosing a mayor who politically agrees with them, ignoring the rotation system.
Neither is a defensible position.
Mr. Norris, if she can speak English what’s the reason for the interpreter?
…you are clearly: Monolingual.
…you are: clearly a Fullerton City Council troll.
BTW, you were going to stop replying to my comments. That didn’t last long.
She does this for the benefit of those in the audience or watching from home who are Spanish speakers only.
@David: I know it’s difficult for you to understand, but she cares about her neighbors.
Sup Bernard. Mr. Anaheim.