Mobilehome Parks

Mobilehome park owners naturally want to have their parks fully insured when outside parties are performing services. Many parks also require residents to name the park as an additional named insured in the individual tenant’s homeowner insurance policy.

However, many park owners are under the mistaken belief that simply being provided a certificate of insurance by a contractor or a resident is sufficient. Beware! A certificate of insurance is NOT identical with being provided documentation that the park is, in fact, an additional named insured. Frequently a certificate of insurance is nothing more than confirmation that the contractor or resident has insurance. When asking for proof of insurance, please review the documentation provided carefully to be sure it actually sets forth that the park is an additional named insured.

It is hard to say what is more surprising, that the Yucaipa Rent Review Commission approved a large rent increase for Yucaipa Village – a total increase of about $93.00 per month – or that the residents did not appeal.    The residents of Yucaipa Village were represented by YMRA (the Yucaipa Village Mobilehome Residents Association), which has been led for years by Len Tyler.  Len Tyler actually lives in Yucaipa Village, which makes it even more surprising YMRA did not appeal.   Then again, Mr. Tyler was keenly aware of the results of prior appeals he has pursued on behalf of other parks.  The appeals were denied or, if approved, reversed by the Courts, ultimately resulting in a larger rent increase to compensate the park owners for the cost of the appeal.

YMRA once again hired an attorney and accounting expert to represent the residents at the hearing, no doubt at substantial expense.  It was to no avail.  In fact, we convinced the Rent Review Commission to make rulings excluding from any consideration much of their expert’s opinions, as well as Mr. Tyler’s “expert” testimony.   Some of the residents of Yucaipa may be wondering whether the contribution to YMRA is serving them well.   In difficult economic times, it may be that the citizens of Yucaipa will start to wonder whether rent control serves them well.

The increase of $93.00 for 82 spaces translates to an increased annual net operating income for the Park of about $91,500, which equates to over 1.3 million added park value,  assuming a 7 percent capitalization.  Not a bad cost-benefit decision particularly since the park owner was allowed to recover the costs of the application.  Yucaipa Village was represented throughout the hearing process by Mark Alpert of Hart, King & Coldren.

Hart, King & Coldren is proud to announce they have created a new group on LinkedIn called “California Mobile Home Park Industry Members.” Our group is committed to furthering beneficial discussions for California mobile home park owners, managers and industry members with relevant information regarding legal issues, new laws, rent control, residency documents, subdivisions, failure to maintain and other issues facing the industry.

If you are a current LinkedIn member, please join us and discuss hot topics with fellow industry members.

Thought you may find this article interesting. You should be proud of what you have accomplished. There is a referendum pending in Oceanside that pertains to its new full vacancy decontrol ordinance.

Don’t shoot the messenger!  The Feds are at it again with new requirements for our industry. An operator of a master meter gas or small propane system, such as those used at mobilehome parks, must develop and implement a written plan that addresses the integrity of gas and propane pipeline systems by August 2, 2011. Inspectors from the California Public Utilities Commission (CPUC) will review begin to review said plans during routine inspections of your gas pipeline system.

The plan must include several elements:
A. Knowledge of System Infrastructure
B. Identify Threats to Pipeline
C. Evaluate and Prioritize Risks to Pipelines
D. Identify and Implement Corrective Actions to Minimize Risks
E. Measure Performance, Monitor Results and Evaluate Effectiveness of Plan
F. Periodic Evaluation and Improvement
G. Report of Results

Park owners may want to contact your utility service provider for assistance in developing this written plan. Park owners can also call the CPUC at 213-576-7020 for more information how this program impacts your park or feel free to give Rob Coldren of HKC a call at 714-432-8700.