December 19 City Council Agenda Item #14:

45-Day Moratorium on the Conversion of Senior Mobilehome Parks to All-Age Parks

 There are two 55+ Senior-restricted mobile home parks in Fullerton, Rancho La Paz, and Rancho Fullerton, each with over 300 resident homeowners. Several cities faced with the possible loss of affordable senior housing have put moratoriums in place and then decided to create overlay zone districts to protect senior mobile homeowners living within their cities (see list below). The item required a 4/5 vote to pass, so, according to City Attorney Jones, with Jung absent – the vote had to be unanimous, which didn’t happen at the December 19 council meeting.

The proposed 45-day moratorium would have given staff enough time to look into the issues surrounding Rancho La Paz Mobilehome Park’s notice of conversion from Senior-Only to All-Ages Park. The four councilmembers did agree, after a somewhat confusing discussion (laid out in part below), to direct staff to come back with information on the city’s current Tenant Subsidy program for low-income residents of the park and other options if the conversion causes more seniors to lose their homes.

Item #14 was placed on the agenda by Councilmembers Ahmad Zahra and Shana Charles. The resident homeowners of Rancho La Paz (which spans both Fullerton and Anaheim) were given notice on December 9 of a Zoom meeting set for the morning after Christmas – this is for an elderly population where 80% have no computer, cell phone, or internet.

The park owner, John Saunders, called the meeting to present the new 44-page Park Rules and Regulations. The document’s first sentence describing Park Status came as news to the senior homeowners, announcing that “Rancho La Paz Mobile Home Park is an All-Age Park with no minimum age requirement for Residents.” 

After receiving the notice, La Paz homeowner Lupe Ramirez brought the situation to the attention of Fullerton and Anaheim council members – and a few took action. Fullerton’s City Manager’s office contacted the property owner and received written confirmation that the meeting had been moved to a more reasonable date of January 11 and would take place in person at the park instead of over Zoom.

During the item discussion, public commenter Jane Reifer mentioned what she said was the real health and safety issue. She said she believed that when Senior parks lose that “senior” designation, residents in the park also lose whatever rental assistance programs are in place for a seniors-only park. “Seniors may become homeless.” 

Fullerton’s Director of Community & Economic Development, Sunayana Thomas, confirmed the loss of current city rental assistance.

Reifer, known for her deep study of issues citywide, also predicted that next year, “the council will be asked to approve sweeping changes that will transform the look and feel of Fullerton. If you don’t want overbuilding in Fullerton, you must try to preserve some of our current public housing,” she said. “We need to stop the upward pressure for increased rent at Rancho La Paz.”

Western Manufactured Housing Communities (WMA) and Manufactured Housing Education Trust PAC (have been generous contributors to the campaigns of the majority on both Fullerton and Anaheim councils and were present at the Fullerton meeting to oppose the Moratorium. Both park-owner groups are anti-rent control advocates.

Julie Pauley, representative of WMA, participated over the phone. At the same time, Manufactured Housing Education Trust PAC executive director Vickie Talley sat with Rancho Fullerton park owner Susan James (for the Nicolas Family Trust) and manager Andrea West. James and West were most recently in the news for taking an elderly Korean American couple to eviction court for minor violations after their home remodel completion date was extended due to an injury.

They were present to lobby against placing the Moratorium. Susan James described major improvements at Rancho Fullerton, located on W. Valencia. She claimed the 54-year-old park offers 20-year leases and has no intention of selling or changing it from a senior park. She said she was opposed to a senior overlay zone.

Andrea West – claimed she, as manager, and her team take pride in offering seniors an affordable and healthy community to enjoy. She said that the rent increase for 2024 is $28, and space rent is $1,025 – far below what other parks charge. She said the management hosts events and annual holiday dinners. “We’re proud of our park and diverse community.” She said, “When Rancho La Paz sold in 2019, the fears about rising rents drifted to our park, so we offered long-term leases at 4%.” 

 “If all this was true, mentioned one public commentator, “it is unclear why you are speaking against the moratorium, which wouldn’t seem to affect your business at all.”

 Manufactured Housing Education Trust director Vickie Talley assists mobile home park owners through conversions. She said she “works with cities on mobile home issues.” (Among services her group offers park owners is a “rent subsidy” program that has been found lacking by many homeowners trying to get help. MHET also lobbies against rent control of any kind.) 

Talley said that Councilmember Zahra had given her a call because of her 41 years of expertise. “It is required by law to hold a meeting to discuss the rule change,” said Talley. The owner of Rancho La Paz has announced the intention to change to an All-Age Park. “No action by this council will change that; it will happen,” Talley claimed. She put forth the very true idea that families need affordable housing, too. She said that with the change to all-age, the “seniors living at Rancho La Paz now can benefit from a much larger base when putting their homes up for sale when the time comes.”

Julie Pauley with the WMA (Western Manufactured Housing Communities Association, which lobbies for mobile home park owners and is a generous contributor to council campaigns and anti-rent control measures, etc.) said they also oppose the Moratorium and consider it a step toward a hostile senior overlay zone. Like Talley, she claimed the city can do nothing about it. She noted that no Rancho Fullerton residents attended the meeting, claiming their absence proved there were no problems. In addition, she threatened the city with lawsuits if an overlay zoning is placed over Rancho Fullerton. “It’s terrible that residents run to the media, legislatures, and city officials over simple rule changes, claiming their lives are at stake. Just an example of hysteria,” she said. “Parks change from senior to all-age frequently in California with no fanfare.” She called the rental assistance at Rancho La Paz “a model” that they hold up to other cities.

Todd Harrison, who lives at Rancho La Paz, said most of what the three Saunders supporters said is wrong. “At the time of Saunders’s 60% rent increase four years ago, we came to this council for help and were heard by some people. You did what you could with rent relief help, but it still has killed or caused many seniors to move out. Since Saunders started raising the rents on fixed-income seniors, many have been forced out and forced to sell their homes to him at well below what they bought them for. Then he rents or sells to whoever at twice the rate.”

Changing the designation definitely affects the rent and the crime rate. 

His wife Yolanda continued reading advice from Saunders’s lawyer on turning senior parks into all-age park money makers. “It is part of their plan. Raise the rent so seniors have to move out, then change the designation. The rent was $700. Now, it’s $1,800 – just for the land. Many of us live on our Social Security. Twenty seniors moved out. I am begging – please let us keep our homes. It is a safety issue.”

Anjali Tapadia said she was worried about the residents. As a doctor, she treats people on fixed incomes daily and hears about the medications they can’t afford, mortgages they can’t afford, and more. “I worry about their ability to stay in their homes or to find new homes if they lose what they have – especially seniors with health restrictions. I support the moratorium – it would not preclude the changes but would give the city time to see how these changes will impact this community. I do worry that the motivation behind this change is to raise rents, which would drive many out. I would not like to see people in my community being evicted from their homes and would always choose them over the whims of a business person. That’s what a community is,” she said.

Karen Loreda said it was an extremely complicated and controversial issue, with the bottom line being the city’s legal options. “My recommendation is to put the Moratorium in place to study those options. And I add my voice to Councilmembers Zahra and Charles, residents of the mobile home parks, and residents of Fullerton who support affordable housing opportunities in our city for senior citizens.”

Egleth Nuncci pointed out, “We have 145,000 residents in Fullerton and two Senior Mobilehome parks. That is not enough for our senior community. Believe me, I am one who wants affordable housing for everyone, but I think we have to have a heart and compassion for our elderly who need our support.” She said the moratorium would stop some owners who just see dollar signs when they look at people. The Moratorium, she said, will give all of us a chance to learn about options. “I have seen Rancho La Paz residents coming here in distress for years. Some have been sick – and some have had heart attacks – how can we allow that in our city? Please give them the 45-day Moratorium.” 

Curtis Gamble supported the Moratorium and pointed out that Rancho La Paz already sits in the SB 2 Overlay Zone for emergency shelters. He noted the park sold a few years ago for $85 million and suggested the city should partner with Anaheim and buy the park for seniors and low-income. He pointed out that “there are very few places dedicated to seniors, and these seniors worked hard to buy their homes.” 

Zee said he was for a two-year moratorium. Noting that there are only two Senior Parks in town, he suggested Saunders make a real estate trade with an existing all-ages park. He talked about caring for his elderly relatives who live on $1500 a month. 

Diane Vena said, “We have all heard from the residents about the constant stresses they have endured over the last two years, with large rent increases affecting their health and some losing their lives and homes. This is an additional threat to their health, lives, and home security. Please allow this moratorium to learn how to help and protect them – this is what the community is for. It is not just about businesses doing what they want.”

Bernard thanked Zahra and Charles for bringing this issue to the council and for doing something to help the vulnerable senior community.

 Council Discussion

Several public speakers and Councilmember Charles asked if rents went up after losing the “Senior” designation. And was told generally yes.

Talley said mobile home parks are not low-income. Typically, when mobile homes are sold, rents go up anyway. There may be people who don’t want to sign on to the conversion, but she said it will happen in six months anyway.

According to Director Thomas, the city’s TBR assistance enacted in 2019 is only open to residents of senior-only parks. She said the city’s HUD policy could be amended, but that would take time. The moratorium could give time for the council to decide if the city wants to restrict the park to seniors further only through an overlay zone. 

Mayor Dunlap asked Mr Harris to add a last comment.

Ranch La Paz Home Owners Association Representative Mr Todd Harrison said he was elected to represent all Fullerton residents of Rancho La Paz. “Yes, rents will go up. As a fixed-income person myself – the rent increase is a problem. Even if I sell my home, it does not give me the ability to find a place to live elsewhere. The alternative to losing a home in a senior park is homelessness. You are out in the street. Vickie [Talley] said that a few people may object to the Conversion – that is wrong,” said Harrison. “Every homeowner at our HOA meeting objects. The new rule change document is 44 pages and still going through our lawyer.”

Zahra said the issue was brought up because of Saunders’s notice of the meeting being held over Zoom and the morning after Christmas. I am happy it has changed to an in-person meeting on January 11. He said he was happy that Rancho Fullerton is not changing to all-age or asking for unreasonable rate hikes but didn’t feel a moratorium would hurt the park. ‘Because we now find that residents at Rancho La Paz may lose their rental assistance, I think we need time to discover the impacts of that and what can be done to help mitigate the negative consequences. So I will support the moratorium.”

City Attorney Dick Jones said that the city’s only role is through land use which may be complicated by half the park being in Anaheim, but for the short term, a moratorium was the council’s only tool. Or you could direct staff to find a solution to help the affected population without enacting a moratorium.

Whitaker said he was reluctant to put regulations on businesses and that he believed in property rights. He said, “I am against rent control through an overlay zone. We are trying to provide time to assist the people affected.” 

Charles said she was in favor of buying time to provide rental assistance to the seniors who will be affected by this.

Dunlap said he agreed with points from both sides and thanked everyone for acting in a civil manner, even in disagreement. “The city could be putting itself in the position of being sued, so I can’t support the moratorium, but I can support offering an additional assistance program through the CBG program,” he said.

Zahra asked if Dunlap would agree to adgendize the discussion about the rental assistance options for the next meeting. Dunlap agreed to the first week in February.

Director Thomas said the current Tenant-based Subsidy assistance program info could be brought to the council faster, while long-term analysis would take longer. 

Charles asked if the program could be expanded for those possibly in danger of becoming homeless because the land is becoming too expensive to rent, which could also be included in the information brought back. City Manager Levitt said the HUD low-income guidelines would still have to apply.

NOTE: Fullerton needs to show in its Housing Element that it provides affordable housing to all income levels as required by the Regional Housing Needs Allocation. Fullerton was sued many years ago for failing to provide very low-income category housing, resulting in a settlement construction of the SRO on Commonwealth, and is again at risk in the new lawsuit Californians for Homeownership v. City of Fullerton, Orange County Superior Court Case No. 30-2022-01281840-CU-WM-CJC. Copies of the filings are available at caforhomes.org/housingelements.

Although the residents own their mobile homes and are responsible for utilities, upkeep, property taxes, and insurance, they rent or lease the space their homes sit on. Until recently, those rents were affordable. Currently, and for several years – the skyrocketing profits possible in owning mobile home parks have caught the attention of corporate investor groups. Buying cheap, raising space rents, pushing out senior homeowners on fixed incomes in favor of renting to younger working families at double the per month rent has been the norm.

List of cities that have instituted Moratoriums and/or Senior Overlay Zones and What Fullerton Can Do to Preserve Affordable Housing for Seniors.

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 the creation of 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 Fullerton and Anaheim’s council members. Because the park straddles both cities, both councils regulate and permit 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.