June 14, 2005
SUBJECT: Conversion Impact Report for Oasis Mobile Home Park at 606 Alberta Avenue
REPORT IN BRIEF
Sunnyvale Municipal Code (SMC) Chapter 19.72 “Conversions of Mobile Home Parks to Other Uses” requires the submittal of a Conversion Impact Report (CIR) for review and approval by the City Council when a park is undergoing, or there is a proposal for, a change of use. The CIR is a document that describes the existing state of the mobile home park and provides a detailed tenant relocation plan. SMC Section 19.72.020 has specific requirements for the contents of the CIR, which must be met before approval of the CIR.
In addition to the other code-required information, the Oasis CIR outlines proposed relocation assistance for mobile home owners and tenants which includes:
· Payment of 100% of “in-place” value of existing mobile homes. The report also proposes a minimum “on-site” value of $22,500, substantially exceeding the actual “on-site” value of some of the mobile homes (pg. 26) Mobile Home Owners Only
· Base relocation benefit of $2,765 to cover cost of first and last months’ rent, move-in deposit and moving expenses. (pg. 22). Mobile Home Owners and Tenants
· Incentive bonus of additional monies dependent on an early move-out date from the park. (pg. 23) Mobile Home Owners and Tenants
· Return of deposit (pg. 23) Mobile Home Tenants Only
· Services of housing experts to assist in relocating to available and appropriate housing. (pg. 21) Mobile Home Owners and Tenants
The applicant had a preliminary meeting with the residents of the mobile home park in January 2005. Since that time, Catholic Charities has met with most of the residents individually regarding their housing needs. In addition, Catholic Charities held three informational meetings on May 16 and 17, 2005 with park residents to explain the Conversion Impact Report and answer any questions.
To certify the CIR, City Council needs to make a finding that the report complies with the requirements of SMC Chapter 19.72. Staff finds that the Oasis CIR is in compliance with the Sunnyvale Municipal Code and recommends certification of the CIR.
BACKGROUND
Sunnyvale Municipal Code (“SMC”) Chapter 19.72, “Conversion of Mobile Home Parks to Other Uses,” provides that whenever a mobile home park is undergoing a change of use a Conversion Impact Report (“CIR”) must be prepared to analyze existing conditions at the park and to develop a plan to provide financial and other relocation assistance to current residents of the park. Chapter 19.72 was adopted in 1987 in response to multiple mobile home park closures. It is intended to address the impacts on park residents while balancing the owner’s right to redevelop the property.
Under the ordinance, a mobile home park may undergo a change of use in two ways: the owner may file a development application to change the use or may allow the vacancy rate at the park to fall below a certain level. SMC Section 19.72.030 provides that whenever 25% or more of the total number of mobile home sites are uninhabited, the park owner shall file a written notice of this situation with the City. The existence of this condition is considered a change of use because it indicates the likelihood of impending park closure.
In this instance, both circumstances are present. Pursuant to Section 19.72.030, the applicant and property owner gave the City written notice that 31% of the mobile units at the park are vacant. In addition, on February 15, 2005, at the owner’s request, the City Council initiated consideration of a general plan amendment to change the land use designation of the existing site from Mobile Home Park to some other form of residential use. As of this date, the owner has not yet filed a formal application for future development.
Approval of the CIR is being considered at this time because its preparation was triggered independently from future land use considerations based on the vacancy rate. In addition, some residents at the park have expressed interest in finding a speedy resolution to the matter of relocation assistance. The general plan land use designation and future use of the site is not a part of the action before the council at this time. The matter under consideration is limited to the compliance of the CIR with Sunnyvale Municipal Code requirements.
EXISTING POLICY
Housing and Community Revitalization Sub-element Policy C.9. - Minimize displacement impacts on tenants as a result of rehabilitation programs or land use changes.
Action Statement C.9.a Require as a part of the City’s application approval process that any land use change or rehabilitation program that displaces tenants shall include a plan stating the efforts taken by the property owner to assist relocation of tenants, including payment of relocation costs. The tenant relocation plan could include: (1) favorable rental or purchase arrangements after work is completed, (2) location of vacancies in similar housing, (3) fixed payments of moving costs, (4) no rent increases upon application and until relocation is secured, (5) right of first purchase refusal, (6) reduced purchase price options, and (7) assistance in locating new housing.
DISCUSSION
The Conversion Impact Report is a document that describes the existing state of the mobile home park and provides a detailed tenant relocation plan. SMC Section 19.72.020 has specific requirements for the contents of the CIR, including:
· Names of all persons owning mobile homes within the mobile home park, or renting mobile home sites within such park
· Characteristics of mobile homes
· List of vacant mobile home sites within a 20-mile radius of the park and all mobile home parks within 200 miles of the park.
· List of housing specialists and mobile home movers
· A relocation plan, including timetables
· Specification of relocation assistance
The Oasis CIR includes all of the required information. Some information of interest is outlined and discussed in the following sections.
Summary of Park Characteristics: The 67 space Oasis Mobile Home Park includes:
· 31 spaces occupied by mobile home owners
· 9 spaces occupied by mobile home renters
· 1 space occupied by a recreational vehicle (RV)
· 1 space subleased by a mobile home owner to another renter
· 25 vacant spaces
All of the mobile homes at the Park were manufactured between 1958 and 1973. None of these homes were subject to the 1976 Department of Housing and Urban Development standards for manufactured home construction. The age of these homes and their status as “pre-HUD Code” homes makes it extremely difficult to relocate them to other parks. The CIR made a list of all mobile home parks within a 20-mile and 200-mile radius of Oasis Mobile Home Park. Almost all mobile home parks interviewed would not accept a mobile home of pre-1976 construction.
Relocation Benefits Provided: The following is a summary of the relocation benefits that are required by the City and proposed by the owner. Benefits are available to all mobile home owners and tenants. For the purposes of the report, the consultant concluded that relocation of the mobile homes would not be feasible. Proposed benefits in the CIR assume that owners and residents will need to either buy or rent a different home in another park or another type of residential unit. The person who subleases the mobile home and the owner of the RV are not entitled to relocation assistance under the Sunnyvale Municipal Code. The property owner, however, will be offering the RV owner the same assistance as a mobile home renter. The subleasee will not receive any benefits but the owner of the leased mobile home will receive assistance. A table of the relocation assistance follows:
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Assistance Required by SMC 19.72.060 |
Assistance Proposed in the Oasis CIR |
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Mobile home owners who wish to relocate their mobile home shall be entitled to a housing relocation allowance: |
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“”Housing allowance of $1,300, adjusted for inflation [$3025.97 in today’s dollars], for the rent for a mobile home site for one month, required deposits, temporary lodging, and moving of personal property. In addition, the sum of $3,200 for a single-wide mobile home or $12,650 for a multi-section mobile home, adjusted for inflation (1980) [approx. $7448.54 and $29,445, respectively] shall be provided.” |
This alternative will not be used. Based on the data collected from mobile home parks within a 20-mile and 200-mile radius, there are no vacant sites for relocation of older homes from Oasis. Therefore, all relocation assistance assumes the sale of the mobile home. |
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Mobile home owners who wish to sell their mobile home: |
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“Payment of 85% of “in-place” value or cost of local relocation.” |
Applicant’s proposal exceeds the requirement, with the following proposed benefits:
· Payment of 100% of “in-place” value. The report also proposes a minimum “on-site” value of $22,500, greatly exceeding the actual “on-site” value of some of the mobile homes (pg. 26)
· Base relocation benefit of $2,765 to cover cost of first and last months’ rent, move-in deposit and moving expenses. (pg. 22).
· Incentive bonus of additional monies dependent on an early move-out date from the park. (pg. 23) |
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Benefits for all mobile home owners and tenants, regardless of relocation or sale: |
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“…services of one or more housing experts to assist them in relocating to available and appropriate housing upon their request…Such assistance shall include financial advice, the explanation of the various housing alternatives available, and transportation of residents who are unable to operate motor vehicles to the various housing alternatives.” |
Catholic Charities of Santa Clara County provides the required services. (pg. 21) They have made contact with 37 of 42 mobile home owners and renters. Although Catholic Charities attempted to contact them by phone, mail and in person, three residents have not responded. The fourth resident chose to sell their home early and the fifth resident was a subleasee of a mobile home park owner. |
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“…right of first refusal to purchase housing to be constructed for sale on the site of the mobile home park, or to lease or rent rental housing to be constructed for lease or rental on such site. Such persons shall also be entitled to first priority as to purchase or rental of below market rate units which may be constructed on the site of the mobile home park…” |
This right is provided for. (pg. 23) |
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Mobile home renters only |
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“No benefits shall be provided to any person who is renting a mobile home from the owner of the park where such tenant shall have executed a written agreement with such mobile home park owner waiving his or her rights to any such benefits.” |
· Base relocation benefit of $2,765 to cover cost of first and last months’ rent, move-in deposit and moving expenses. (pg. 22).
· Incentive bonus of additional monies dependent on an early move-out date from the park. (pg. 23)
· Return of deposit (pg. 23) |
With the proposed monetary benefits, the maximum assistance a renter will receive is $5,515 + return of deposit. The maximum assistance a mobile home owner will receive is approximately $30,765, assuming an “in-place” value of $22,500. The proposed relocation assistance goes beyond minimum requirements in the Sunnyvale Municipal Code and is consistent with the tenant relocation policy in the Housing and Revitalization Sub-element.
Timeline of the Relocation Plan: If the Conversion Impact Report is approved, each mobile home owner and resident will receive a 6-month Notice of Termination of Tenancy. During that time the applicant and Catholic Charities will work with the residents to determine the appropriate benefit and locate alternative housing.
Confidential Information: The applicant has submitted a list of names, addresses and mobile home site identification numbers of all residents and owners of the park. The list also indicates whether such person is an owner or tenant. This information is maintained in a separate confidential record by the director of community development.
FISCAL IMPACT
No additional fees or taxes are expected as a result of the certification of the Conversion Impact Report.
Conclusion
The Conversion Impact Report is required to provide information on mobile home tenants and owners, characteristics of the property, other sites within specified distances of the park, designation of a housing service to assist residents with relocation, a relocation plan and a description of relocation assistance.
The 67-space park is 31% vacant (25 spaces), greater than the 25% trigger in SMC Chapter 19.72. Mobile home owners comprise 73% of the remaining occupied spaces. The mobile homes are older, ranging in age from 32 to 47 years old. The age of the mobile homes and their non-compliance with current code make them difficult to move to another mobile home park.
The proposed relocation assistance offered to Oasis residents goes beyond minimum code requirements. If the Conversion Impact Report is certified, the mobile home tenants are entitled to a 6-month Notice of Termination of Tenancy.
PUBLIC CONTACT
The applicant had a preliminary meeting with the residents of the mobile home park in January 2005. Since that time Charities Housing has met with almost all of the residents individually regarding their housing needs. In addition, the applicant held three informational meetings on May 16 and 17, 2005 with park residents to explain the Conversion Impact Report and answer any questions.
SMC 19.72.040 requires the applicant to transmit to existing residents copies of the Conversion Impact Report, all of SMC Chapter 19.72, and notices of the dates, times and places of the public hearing on the Conversion Impact Report and informational meetings. Staff has received written verification from the applicant that they have complied with the requirements of this section.
Staff has received a letter from a park resident stating concerns with the CIR (Attachment A). Most of the comments will be addressed by the project applicant. Staff can respond to comment #3, #6, #11 and #14.
· Comment #3 – SMC Section 19.72.020 requires that parks within a 20 and 200 mile radius of the park be surveyed, not driving distance.
· Comment #6 – SMC Section 19.72.020(b) (4) requires the designation of housing specialist subject to approval by the director of community development. Prior to preparation of the CIR, the Housing Officer, Annabel Yurutucu evaluated the qualifications of Catholic Charities and gave approval of the selection.
· Comment #11/14 – Per SMC 19.72.030(a), if a mobile home park is 25% or more vacant the park is “undergoing a change of use”, which requires the preparation of a CIR. The change of use is to a vacant mobile home park. The applicant may apply for a General Plan Amendment in the future to change the use from a mobile home park to another type of use. For the purposes of the CIR, the change of use is the increased vacancy rate.
The staff report is posted on the City of Sunnyvale's Website and provided at the Reference Section of the City of Sunnyvale's Public Library. The City Council Agenda was posted on the City of Sunnyvale's Website and recorded for SunDial.
ALTERNATIVES
Certify that the Conversion Impact Report complies with the requirements of SMC 19.72.
Do not certify the Conversion Impact Report and direct the applicant as to which aspects of the report are deficient.
RECOMMENDATION
Recommend Alternative 1.
Staff finds that the Conversion Impact Report complies with all applicable requirements of SMC 19.72 and the relocation assistance for owners and tenants exceeds the requirements.
Reviewed by:
Trudi Ryan, Planning Officer
Prepared by: Diana O’Dell, Senior Planner
Reviewed by:
Robert Paternoster, Director, CDD
Approved by:
Amy Chan
City Manager
Attachments:
A. May 31, 2005 Letter from Mobile Home Park Resident (.pdf)