Mobile Estates Tenants Face Double Digit Rent Increase

Thanks to Assembly Bill 1482 signed by California Governor Gavin Newsom, for almost any rent increased after January 1 on a property owned by a business or corporation, there is a cap of five percent plus the local rate of inflation.

However, in some instances of such sweeping legislation, there are exceptions. If a home is owned by a private person, there is an exception. Also for manufactured or mobile homes, there is an exception.

And that exception is critical to the renters at Belmont Shores Mobile Estates (BSME) on Loynes Drive, just east of Pacific Coast Highway. That’s because the landlord has raised the rent about 35 percent, or $355, effective January 1, 2020.

That’s not going down easy among the tenants. Since the announcement about a month ago, there have been two well-attended meetings of tenants to voice their complaints. Only one of these meetings has been attended by a representative of management, Candace Holcombe, VP of the Irvine management company, Newport Pacific.

“We realize no one likes to receive a rental adjustment and are simply making ourselves available to address our resident’s questions and concerns,” said Holcombe in an email response. “We are unsure of a specific number who may be actively lobbying against a rent increase.”

Several tenants are more direct in their opinion of the most recent meeting held by Holcombe, meant to explain the increase. “There was not much accomplished, but a lot of yelling,” said a 76-year-old tenant retired from the construction business, who asked his name not be used as he was told legal action might be in the offing. Of about 450 tenants at the park of 330 homes, “Over 100 people attended. There were people who think they are going to be homeless. People were crying at the meeting, calling Newport Pacific immoral. They want to put us on a year lease instead of month to month.”

Another tenant, who still operates his own business, said, “a woman named Candy gave us a runaround in the meeting.” He added, “This increase could be considered elder abuse.”

Belmont Shores Mobile Estates opened in 1961, most likely for senior citizens only from the get-go. “We believe it was built and occupied as an adult-only community and in 1988 it was converted to 55 plus in accordance with the Fair Housing Act which was later amended in 1995 under the Housing with Older Persons Act (HOPA),” said Holcombe.

Though managed by Newport Pacific, it is owned by ABP Parcel 6, LLC in Alhambra. About two years ago, the park was undergoing some serious maintenance, with trenches lining the streets for utility work.

In an emailed statement, park management stated, “BSME is nearing completion of its two-year, $28 million major infrastructure construction project which provides the park and its residents new electric, water and sewer lines, storm drains, pump stations, water filtration systems, LED street lighting and beautiful new drought tolerant landscaping.”

The 76-year-old tenant, who has lived at the park for about 15 years, agreed, “They made infrastructure repairs, but they want us to pay for them. They want us to give up rights,” though he did not specify which rights they were. He added, “It’s managed by a professional company in Irvine. They are kind of withdrawn. Our HOA (home owners association) disbanded in the past month. It no longer exists. It used to be a pleasant place to live, but less now, because of the construction.”

In a list of 38 questions and answers distributed to tenants, management stated, “We understand that the past two years of construction may have been challenging for some of our existing homeowners. For this reason, rent increases were not issued during that time.”

“The increase is a flat amount, and the first increase in nearly three years,” said Holcombe. “Over the past five years, rents have been increased a total of $70 per month.”

In their statement, “the park owners have committed to renovating and restoring the mid-century modern clubhouse in 2020, so residents can enjoy top quality amenities and an atmosphere for entertaining. The owners will also be updating the gate-guarded entrance in 2020 to provide enhanced entry for the BSME community. These improvements benefit the community as a whole and will result in a continued increase in home values.”

Finally, the park maintained, “BSME rents are well under local market rates and have been for many years. Residents’ new rent rates will take effect on January 1, 2020.” In a somewhat similar nearby mobile home park, Rancho Del Sol in Westminster, the comparable rent is $800, raised by $150 about two years ago.

The still-employed tenant maintained that the increase actually makes their property less valuable as the rent increase diminishes the pool of prospective buyers of their trailers.

The park statement concluded, “BSME continues to offer a unique ability for 55 plus residents to live a beach city lifestyle at an affordable cost.”

On Tuesday, Oct. 22, the Long Beach City Council voted unanimously for a draft of a mobile home rent stabilization ordinance, likely for its Nov. 19 meeting, time enough for a new law effective on Jan. 1.

steve@beachcomber.news