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Proposed Ordinance Amendment
City of Oceanside
Majority Approval Required
Fail: 10,495 / 35.2% Yes votes ...... 19,337 / 64.8% No votes
Index of all Propositions
|Information shown below: Yes/No Meaning | Impartial Analysis | Arguments | Full Text|
Shall Ordinance No. 11-OR0427-1, adding Section 16B16(e) to the Oceanside City Code for the purpose of implementing vacancy decontrol allowing space rents to increase following the sale or conveyance of a manufactured home, be adopted?
If a park owner believes the annual permissive increase does not provide a just and reasonable return on the owner's investment in the park, the owner may file an application for an alternative adjustment of the space rent ceiling based on the park owner's net operating income ("NOI"), calculated from the park's gross income less operating expenses. The park owner also has the option to file a special adjustment application if the owner believes the annual permissive and/or NOI adjustments do not provide a just and reasonable return. Finally, a park owner may file an application to increase rents to pass through to the residents of the park government assessments related to the operation of the park.
Decisions on applications to increase rents in parks are made by the City's Manufactured Home Fair Practices Commission ("Commission") after a public hearing. The Commission's decisions may be appealed to an independent hearing officer.
THE PROPOSAL: If approved by the electorate, the proposed amendment to the Oceanside City Code will allow a park owner, following a change in ownership of a manufactured home that is on a rented space, to set space rents without regard to the City's rent control ordinance. Following a change in ownership of the manufactured home, the City would have no say in the amount of rent a park owner could charge for that space. However, park owners would not be able to increase rents for the following changes in ownership: (1) a sale or conveyance following a divorce where the purchasing spouse was a lawful tenant at the time of the sale or conveyance; (2) a sale or conveyance to a spouse or child following the death of the owner of the manufactured home if the spouse or child was a lawful tenant at the time of death of the owner; (3) a conveyance of an interest in the manufactured home to provide security for a loan provided there is no change in tenancy in the manufactured home; and (4) a sale or conveyance associated with the replacement of a manufactured home provided there is no change in tenancy in the manufactured home.
North County Times
|Arguments For Proposition E||Arguments Against Proposition E|
|Vacancy Decontrol is a necessary policy that provides fairness for both park residents and owners while benefiting the entire City of Oceanside. Vote Yes on Proposition E.
The Howard Jarvis Taxpayers Association has endorsed Vacancy Decontrol as a policy that protects taxpayers: "Vacancy Decontrol is a good balance. Existing mobile home park residents keep rent control for as long as they live in their homes. Vacancy Decontrol adds stability and prevents park closures by allowing park owners a fair return over time."
Vacancy Decontrol has absolutely no impact on current residents for as long as they continue living in their homes.
Vacancy Decontrol will maintain and protect rent control for all existing tenants. Rents will only increase to market levels when current residents move.
Oceanside's current rent control ordinance is one of the most restrictive in the entire state. Vacancy Decontrol gently and gradually reforms Oceanside's rent control ordinance to bring balance between land owners and residents.
With Vacancy Decontrol in place, park owners will have incentive to maintain and improve existing parks, which will provide long-term stability for mobilehome living.
Vacancy Decontrol will provide security for mobilehome residents, and protect the Oceanside taxpayers from additional frivolous lawsuits. The cost of rent control related litigation and administration are estimated to be between $3M and $5M.
Finally, if Oceanside continues with the status quo policy, the supply of affordable housing for families, seniors, and veterans will continue to deteriorate.
Do not be misled by opponents--Vacancy Decontrol is a policy that has worked well in more than 90% of California's jurisdictions.
Please vote Yes on vacancy decontrol. It's good for the entire City of Oceanside.
Oceanside established rate stabilization to address unfair monopolies of out-of-town corporate park owners:
"This council finds and declares it necessary to facilitate and encourage fair bargaining between manufactured homeowners and park owners ... Absent such agreements, this council further finds and declares it necessary to protect the owners and residents of manufactured homes from unreasonable space rental increases while simultaneously recognizing and providing for the need of park owners to receive a just and reasonable return on their property." City of Oceanside Manufactured Home Fair Practices Ordinance, 1985-present.
With Prop E, over 4,000 homeowners will be left unprotected -- unable to sell their homes because space rents will be raised Without Limit; unable to leave their homes to their heirs because corporations decide who can be a "legal tenant."
Corporate owners admit rents increase as much as 5 times with decontrol.
With over 100 cities providing similar protections, Oceanside's law has served as a model. Cities that adopt decontrol suffer great economic losses, loss of affordable housing, creation of significant vacancies, and increased demands on services.
City staff confirmed the high rate of return to corporations; costs of rate stabilization was Zero from 1985-2005; frivolous lawsuits by the same corporate owners totaled only $167,926.05 (Not $3 million); homeowners pay for park improvements. With homeowners paying higher fees, the costs are again zero.
For fairness and balance, vote No on Prop E.
|Save the homes of thousands of Oceanside Seniors and Veterans! Vote "no" on Prop E, Vacancy Decontrol!
Prop E will unfairly wipe out the property rights of over 4,000 Oceanside manufactured homeowners - Seniors and Veterans - who own their own homes without any government subsidies, pay property taxes and support Oceanside businesses, contributing to the local economy with their disposable income.
Manufactured homes are not mobile. Once purchased, they must be installed in a mobile home park, owned primarily by out-of-town, multi-million dollar corporations who rent empty space to homeowners.
Corporations decide who can live in the parks and are free to sell their land or business whenever they wish.
When a homeowner wants to sell, with Prop E the corporations can raise the rent without limit-so high that no one will buy their home. A windfall to corporations, Prop E transfers homeowners' hard-earned investments to out-of-town corporations.
There are no limitations under Decontrol.
Oceanside's Manufactured Home Fair Practices stabilizes space rents for thousands of Oceanside Seniors and Veterans, guaranteeing the corporations a fair return on investments of 75% of the CPI -- at least 13% return on investment every year, up to 40%!
From 1985-2005, MHFP was a zero cost to Oceanside taxpayers. In 2005, greedy corporations sued the city to squeeze even more money from Seniors and Veterans. The corporations lost, but there were expenses. Manufactured homeowners now pay a higher fee, avoiding costs to Oceanside taxpayers.
Collectively, manufactured homeowners have a greater investment than the corporations.
Over 15,000 Oceanside voters signed the referendum against decontrol. Instead of repealing this bad law, the council is spending over $120,000 to support out-of-town corporations.
MHFP provides decent, affordable housing to Oceanside Seniors and Veterans and doesn't cost Oceanside Taxpayers a dime. Vote "no" on Prop E.
Fact: Rent control has been a costly burden for Oceanside taxpayers. Independent studies show that from 1999 through 2011, rent control has cost Oceanside taxpayers $7.5 million in expenditures and lost revenue through reduced property tax assessments on parks. Furthermore, it is clear that taxpayers have paid hundreds of thousands of dollars in additional administrative and legal expenses. If rent control is maintained in its current form, Oceanside will spend and lose another $8 million over the next decade.
Fact: Proposition E will adjust Oceanside's restrictive rent control policy to the standard that works in 91% of California jurisdictions. In other cities, Vacancy Decontrol has not resulted in the negative consequences that opponents falsely predict.
Fact: Proposition E will not increase the rent of any current resident. Rents will increase to market value only when residents move.
Fact: Vacancy Decontrol will protect mobilehome living for Oceanside seniors and veterans by giving park owners greater incentive to stabilize the supply of affordable housing,
Proposition E is a Fair and Balanced Policy that will maintain and protect rent control for current residents as long as they remain in their homes, allow park owners to retain their property rights, and save Oceanside taxpayers millions of dollars.
Vote Yes for Fairness.
Vote Yes for Taxpayer Savings.
Vote Yes on Proposition E.
It's good for the entire City of Oceanside.
|Full Text of Proposition E|
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OCEANSIDE
WHEREAS, on May 4, 2011, the City Council of the City of Oceanside conducted a duly noticed council meeting to discuss potential revisions to Chapter 16B of the Oceanside City Code for the purpose of implementing vacancy decontrol; and
WHEREAS, following extensive public testimony, the City Council directed the City Attorney to draft a vacancy decontrol ordinance and return to the City Council on May 18, 2011 to introduce said amendment;
NOW, THEREFORE, the City Council of the City of Oceanside does ordain as follows:
SECTION I. Chapter 16B.16(e) is hereby added to the Oceanside City Code as follows:
(e) Vacancy Decontrol. Notwithstanding the limitations on rent increases otherwise set forth in this chapter, upon a change in the ownership of a manufactured home that is on a space, the rent for the space may be increased without limit and the space shall thereafter not be subject to this chapter. This section shall not be applicable to a change in ownership of a manufactured home caused by any of the following:
SECTION 2. The City Clerk of the City of Oceanside is hereby directed to publish this ordinance, or the title hereof as a summary, pursuant to state statute, once within fifteen (15) days after its passage in the North County Times, a newspaper of general circulation published in the City of Oceanside.
SECTION 3. This ordinance shall take effect and be in force on the thirtieth (30`h) day from and after its final passage.
INTRODUCED at a regular meeting of the City Council of the City of Oceanside, California, held on the 18th day of May, 2011, and, thereafter,
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Oceanside, California, held on the 25th day of May, 2011, by the following vote:
AYES: FELIEN, FELLER, KERN