Capitola put an end to a rent control ordinance for mobile homes that has been on the books for 32 years. The decision was made in response to a series of costly legal challenges over the past 10 years, particularly from the owner of one mobile home park, Ron Reed. Most other mobile parks are either owned by the city or nonprofits. Reed, however, is a property owner who still has two ongoing lawsuits against the city.
Councilmember Sam Storey admitted that, “The city has been bullied, we’ve been litigated and beaten down,” but he nevertheless voted for the repeal, saying it was in the city’s interest. “When faced with a half-million dollars in legal expenses year after year, you are forced to look for solutions,” he explained.
Under the terms of a settlement reached last spring, low-income residents could sign a 34-year lease at $475 rent per month. Other residents were offered leases that would only reach the market rate in eight years, while residents who owned other residential property or who only lived there part-time would see their rents rise immediately to their market value. This however, could lead to another court case. Residents who did not qualify for the 34-year lease have filed a lawsuit against Reed over how he determines the market rate. They contend that his rate is too high, with rents rising by almost 1,000 percent over the court of a single month. Read more at the Santa Cruz Sentinel.
