Chapter 4
MOBILE HOME PARK CONVERSIONS OR CLOSURES
Sections:
11-4.110 Findings and purpose.
11-4.130 Application for a conditional special use permit for conversion or closure.
11-4.140 Relocation impact report.
11-4.150 Displaced homeowner housing replacement and relocation plan and counselor.
11-4.170 Required findings for approval.
11-4.180 Conditional approval of a special use permit for conversion or closure.
11-4.190 Exemption from the displaced homeowner housing replacement and relocation plan.
11-4.200 Acceptance and performance of mitigation measures.
11-4.210 Subsequent modification of the mitigation measures.
11-4.220 Expiration, extension, and revocation of special use permit.
11-4.230 Measures to prevent interference with mobile home owners’ access to their rights.
11-4.110 Findings and purpose.
(a) Findings.
(1) Mobile home parks are highly profitable businesses. In 2020, the Wall Street Journal article “Investors Discover There’s Gold in the Mobile Home Park” recounted the extraordinary returns obtained from manufactured mobile home park investments:
“One of the best-performing investments since last decade’s housing crash: trailer parks... It is as if apartment owners didn’t have to maintain or pay taxes on their buildings but still collected rent from those who lived inside... Even if residents can afford to move their homes, there aren’t many places to plop an old double-wide. Plans for new parks usually meet local resistance. The right zoning is hard to find. Meanwhile, demand for manufactured homes has been stoked by retiring baby boomers, millennials with a taste for minimal living and prices for site-built single-family houses that have risen beyond the reach of many Americans... A who’s who of big investors has joined the trailer-park hunt, boosting competition for facilities. Buyers have included pensions, sovereign-wealth funds and private equity firms.” (See Ryan Dezember, Investors Discover There’s Gold in the Mobile-Home Park, WALL ST. J., Feb. 26, 2020, at B1–B2, https://perma.cc/KZ34-L6XV cited in Baar, Protections of (Im)mobile Home Owners from the Consequences of (Im)mobile Home Park Closures 128 Penn State Law Rev. 779 (2024)
(2) Despite their high profitability and the extraordinary returns that they provide to their owners, other market factors have resulted in mobile home park closures and conversions into other uses. When closures occur, the impacts are devastating for mobile home owners:
investments in mobile home parks are highly profitable, in recent decades, as urban areas densify and alternate land uses, such as condominium projects, commercial centers, or high-end subdivisions, become more profitable, mobile home park closures have become widespread and are now becoming a national concern. When a mobile home park closes, it usually wipes out the mobile home owner’s entire investment in their mobile home and displaces the mobile home owner. Park closures are a large problem, as appellate courts have noted for decades, because of the “captive” nature of mobile home park tenancies and the role of public regulations in severely limiting the possible locations of mobile homes. As a practical matter, after they are moved from the factory and installed on a plot of land, “mobile” homes cannot be relocated. Generally, they are only sold in place, an unavailable option when a park closes.
(See Baar, Protections of (Im)mobile Home Owners from the Consequences of (Im)mobile Home Park Closures 128 Penn State Law Rev. 779 (2024))
(3) The protection of the City’s mobile home owners, and their substantial investments in their mobile homes and their spaces, which usually exceed the investments of their park owners in their spaces and, in the aggregate, also exceed their park owners’ investments in their parks, further warrants additional special regulatory safeguards to protect these homeowners, their homes and their substantial and captive investments in their homes, which they would lose in the event the park that they are located in closes or converts to another use.
(4) Prior to approving a mobile home park conversion or closure, Government Code Section 65863.7(e)(1)(B) requires that the City make a finding as to whether the park closure and its conversion to its intended new use will result in or materially contribute to a shortage of housing opportunities and choices for low- and moderate-income households within the City of Watsonville.
(5) Government Code Section 65863.7(k) states that Section 65863.7 establishes a minimum standard for the local regulation of the conversion or closure of mobile home parks, and authorizes local governments to adopt additional rules and regulations. The legislative history of Section 65863.7 explicitly recognizes that Government Code Section 65863.7(k) authorizes local jurisdictions to adopt additional local measures regulating conversions and closures of mobile home parks; Government Code Section 65863.7(e)(1)(B) provides that a local agency’s legislative body must “Make a finding as to whether or not approval of the park closure and the park’s conversion into its intended new use, taking into consideration both the impact report as a whole and the overall housing availability within the local jurisdiction, will result in or materially contribute to a shortage of housing opportunities and choices for low- and moderate-income households within the local jurisdiction.”
(6) Government Code Section 65583(b)(1), a provision of California’s Housing Element Law, requires the City’s Housing Element to contain goals, policies, and objectives to preserve the City’s current low-income and moderate-income affordable housing stock.
(7) To fulfill the above requirements of California’s Housing Element Law, the City’s Housing Element contains:
(i) Goal 1 to “Improve, conserve and preserve affordable housing stock and neighborhoods,”
(ii) Policy 1.5 to “Preserve the existing stock of affordable housing, including mobile homes, through City regulations and land use and development controls, including mobile home park exclusive-use zoning, as well as financial and other forms of assistance,” and
(iii) Five (5) year objective to “Preserve the continued availability and affordability of the current affordable housing stock located in the City’s mobile home parks.”
(8) Watsonville’s 2023 – 2031 Housing Element shows that the City is currently suffering a severe shortage of low- and moderate-income affordable housing. It indicates that in 2020, ten thousand two hundred (10,200), seventy-one and three-tenths (71.3%) percent, of the City’s fourteen thousand three hundred fifteen (14,315) households were low-income, six thousand eight hundred forty (6,840) of which were very low- and extremely low-income households (forty-seven and eighty-five hundredths (47.85%) percent of Watsonville’s total households). Other findings in the Housing Element were: The median price for a home in Watsonville in 2023 was Eight Hundred Thousand Ninety and no/100ths ($820,090.00) Dollars, but the affordable purchase price for a home for low-income households in Watsonville was Three Hundred Three Thousand Three Hundred and no/100ths ($303,300.00) Dollars for a one (1) person household and Five Hundred Fifty-One Thousand One Hundred and no/100ths ($551,100.00) Dollars for a five (5) person household; that very low-income households could only afford to purchase a home costing One Hundred Seventy-Three Thousand and no/100ths ($173,000.00) Dollars for a one (1) person household and Two Hundred Fifty Thousand Two Hundred and no/100ths ($250,200.00) Dollars for a five (5) person household, and that extremely low-income households could only afford to purchase a home for Eighty-Seven Thousand and no/100ths ($87,000.00) Dollars for a one (1) person household and One Hundred Seventeen Thousand Five Hundred and no/100ths ($117,500.00) Dollars for a five (5) person household.
(9) Watsonville’s 2023 – 2031 Housing Element also indicates that nine thousand four hundred forty (9,440) of Watsonville’s households were experiencing housing “cost burdens,” with six thousand one hundred sixty-five (6,165) households having to pay more than thirty (30%) percent of their income for housing and three thousand two hundred seventy-five (3,275) households having to pay more than fifty (50%) percent of their income for housing. It also shows that four thousand one hundred nineteen (4,119) of Watsonville’s households were living in overcrowded conditions.
(10) The City has nine hundred nineteen (919) mobile homes and their spaces, constituting six (6%) percent of its total of fourteen thousand eight hundred eighty-two (14,882) housing units and a considerably higher portion of the housing units that are affordable to low- and moderate-income households.
(11) The mobile homes in the City’s mobile home parks are predominantly owner-occupied. Mobile home owners make substantial investments in purchasing their homes and improving their homes’ spaces, but they rent those spaces from their park owners. Their mobile homes are difficult to relocate to spaces in other mobile home parks because of the costs of moving to spaces in other mobile home parks. For example, some parks are not willing to accept displaced mobile homes that are more than five (5) or ten (10) years old.
(12) Mobile home owners have substantial investments that will be lost if they cannot continue their tenancies in the mobile home park where their home is located. Courts have recognized that this unique economic relationship creates a heightened need to provide special protections for the investments of mobile home owners.
(13) Courts have acknowledged the special circumstances of mobile home owners, noting that mobile home owners make significant investments in their homes and spaces.
The U.S. Supreme Court stated:
“The term ‘mobile home’ is somewhat misleading. Mobile homes are largely immobile as a practical matter, because the cost of moving one is often a significant fraction of the value of the mobile home itself. They are generally placed permanently in parks; once in place, only about 1 in every 100 mobile homes is ever moved. [Citation.] A mobile home owner typically rents a plot of land, called a ‘pad,’ from the owner of a mobile home park. The park owner provides private roads within the park, common facilities such as washing machines or a swimming pool, and often utilities. The mobile home owner often invests in site-specific improvements such as a driveway, steps, walkways, porches, or landscaping. When the mobile home owner wishes to move, the mobile home is usually sold in place, and the purchaser continues to rent the pad on which the mobile home is located.” (Yee v. Escondido (1992) 503 U.S. 519, 523.)
Subsequently, the California Supreme Court stated:
Thus, unlike the usual tenant, the mobile home owner generally makes a substantial investment in the home and its appurtenances--typically a greater investment in his or her space than the mobile home park owner. The immobility of the mobile home, the investment of the mobile home owner, and restriction on mobile home spaces, has sometimes led to what has been perceived as an economic imbalance of power in favor of mobile home park owners (id. at pp. 170-182) that has in turn led many California cities to adopt mobile home rent control ordinances (see id. at p. 182 [some 70 cities in California had adopted rent control as of 1992]). (Galland v. City of Clovis (2001) 24 Cal.4th 1003, 1009 [emphasis added].])
(14) Government Code Section 65863.7 recognizes that the unique circumstances of mobile home park tenants necessitate the mitigation of adverse effects of relocation upon mobile home park residents who are confronted with a proposed change of use for their mobile home park or portions of the park and so that the owners and occupants of mobile homes and the owners of mobile home parks understand their rights and responsibilities in such situations.
(b) Purposes.
(1) To carry out and supplement the provisions of State law, which require the City to ensure that a proposed mobile home park conversion or closure is consistent with the City’s General Plan, particularly with its Housing Element. It is also the intent of this chapter to ensure compliance with the provisions of Government Code Section 65863.7, which addresses the need for park owners to provide its displaced mobile home owners with adequate mitigation benefits to enable them to obtain adequate housing in other mobile home parks in the event a park owner seeks to convert, close, or cease use of a mobile home park.
(2) To ensure that the closure of a mobile home park and its conversion to another use is consistent with the City’s Housing Element.
(3) To ensure compliance with Government Code Section 65863.7(e)(1)(B)’s requirement that the City must determine whether or not the approval of a conversion or closure of a mobile home park closure will result in or materially contribute to a shortage of housing opportunities and choices for low- and moderate-income households, taking into account both the impact report as a whole and the overall housing availability within the local jurisdiction.
(4) To effectuate Government Code Section 65863.7(k)’s authorization for the City to enact additional regulations.
(5) To provide procedures and standards for assessing the adverse impacts of a mobile home park conversion or closure on the displaced mobile home owners and to determine appropriate mitigation assistance to enable them to find and obtain adequate replacement housing in other mobile home parks pursuant to Government Code Section 65863.7, the City’s police powers, and the provisions of this chapter.
(6) To ensure that the mobile home owners who will be displaced by a conversion or closure of their mobile home park will receive adequate mitigation benefits to offset the impacts of the park owner’s decision to close or convert a mobile home park.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.120 Definitions.
(a) “Affordable housing” and “affordable housing stock” refer to housing, housing stock and mobile homes that are affordable to households in the categories of low, very low, extremely low or moderate income, as defined in Health and Safety Code Sections 50079.5, 50105, 50106 and 50093(b), as measured by the housing affordability limits for those income categories that are published by the California Department of Housing and Community Development in its most recent update required by Health and Safety Code Section 50093(c).
(b) “Low-income households” means persons and households who meet the definition of “lower income households” in Health and Safety Code Section 50079.5.
(c) “Very low-income households” means persons and households who meet the definition for “very low-income households” in Health and Safety Code Section 50105.
(d) “Extremely low-income households” means persons and households who meet the definition for “very low-income households” in Health and Safety Code Section 50106.
(e) “Moderate-income households” means persons and households who meet the definition of “persons and families of moderate income” as defined in Health and Safety Code Section 50093(b).
(f) “Conversion project” (also referred to as the “project”) means the entire administrative review and approval process of a proposed mobile home park conversion or closure, including the administrative review and approval of closing the park and its redevelopment into its intended new use, inclusive of the entire administrative process of obtaining all of the required permits and other local approvals necessary to close the park and convert it to its intended new use, beginning with any preliminary reviews, which may be required to identify the scope of the project and inform the park owner of all of the required permits necessary to complete the project through the approval of its intended new use. Included within a conversion project is the City’s review, evaluation and approval of the project’s special use permit for conversion or closure, relocation impact report, tentative map, development project permit and all other development approvals necessary to complete the project of closing and converting the park to its intended new use, regardless of the time at which any of the required approval applications are filed and inclusive of any required planning approvals that have not been filed at any point in time after the initiation project that must be filed and approved of to complete the project.
(g) “Homeowner” means the owner(s) of a mobile home who is renting a space in a park from the park owner, and a “displaced homeowner” is a homeowner who has been or will be displaced by the conversion or closure of the park in which their home is located.
(h) “Mobile home” means a structure that is designed for human habitation and is transportable in one (1) or more sections on a street or highway, whether commonly referred to as a manufactured home or a mobile home, including both a manufactured home as defined in the California Health and Safety Code Section 18007 and a mobile home as defined in California Health and Safety Code Section 18008. “Mobile home” also includes a residence commonly known as a “travel trailer,” “recreational vehicle,” “camping trailer,” “motor home,” “sliding camper,” “park trailer” or a “park model recreational vehicle” which occupies a space in a park.
(i) “Adequate mobile home” means an available mobile home which meets all of the following criteria:
(aa) Decent, safe, and sanitary and located in a mobile home park that is decent, safe, and sanitary.
(ab) Is comparable in floor area and number of bedrooms, bathrooms, and other rooms to the mobile home to which comparison is being made, which housing meets the minimum standards of the Uniform Housing Code.
(j) “Mobile home park” (also referred to as a “park”) means an area of land where four (4) or more mobile home spaces are rented out, or held out for rent, to accommodate a mobile home, as defined in subsection (h) of this section.
(k) “Comparable mobile home park” means a mobile home park that is substantially similar to the mobile home park proposed to be converted or closed in terms of its rent, amenities, proximity to services, proximity to the homeowner’s place of employment, its overall condition, and quality, including the condition and quality of its infrastructure, and its CalEnviroScreen score, and is located: (1) in Santa Cruz County; (2) in Santa Clara County, or (3) within twenty (20) miles of the mobile home park proposed to be converted or closed.
(l) “Mobile home space” (or “space”) means an area bounded, numbered, and designated as required by 25 California Code of Regulations Section 1104 and occupied by one (1), and only one (1), mobile home, as defined in subsection (h) of this section, or any other area commonly known to be used as a space for a mobile home in a mobile home park.
(m) “Park owner” means the owner or lessor of a park, the designated agent of the park owner or a developer who is in the process of obtaining a park from the park owner in order to close and convert it to a different use, who has filed and is seeking approval of the special use permit for conversion or closure.
(n) “Proof of service” means written evidence that a required recipient has received a notice or other document. Proof of service includes any United States Postal Service delivery confirmations such as certified mail or signature confirmation. If delivered personally, proof of service includes a statement signed by the recipient or attested to, under penalty of perjury, by the person effectuating the personal service.
(o) “Displaced homeowner housing replacement and relocation plan” (also referred to as the “replacement and relocation plan”) means the plan that is required to be filed by the park owner and approved by the City, under Section 11-4.150(a) and by Government Code Section 65863.7(a)(1).
(p) “Community Development Department Director” (also referred to as “Director”) means the Director of the Watsonville Department of Community Development or their designate.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.130 Application for a conditional special use permit for conversion or closure.
(a) Until a special use permit for conversion or closure has been approved by the City Council, pursuant to this chapter, a park owner shall not convert a mobile home park to any other use, close a mobile home park, or cease to use the land as a mobile home park, and no building permit shall be issued and no application for approval of a development agreement, a tentative or parcel subdivision map, conditional special use permit or other development permit shall be approved on a property occupied by a mobile home park for uses other than those associated with the mobile home park use unless a special use permit for conversion or closure has, pursuant to this chapter, been approved by the City Council.
(b) A special use permit for conversion or closure is a required local government permit for a change of use under Civil Code Section 798.56(g)(2).
(c) An application for a special use permit for conversion or closure shall be submitted to the Community Development Department Director with the filing fee prescribed by resolution of the City Council. The Director shall determine what information must be included in the application and prepare an application form.
(d) Upon receipt of an application for special use permit for conversion or closure, the filing fee required by subsection (c) of this section, and all other supporting documents, reports, and applications required by this chapter to be filed concurrently therewith, the Director of the Community Development Department shall determine whether the filing is deemed complete.
(e) The application for a special use permit for conversion or closure is to be considered concurrently with the required development permit(s) or approval(s) for the new intended use of the mobile home park proposed for conversion or closure.
(1) If the eventual new use of the conversion or closure of the mobile home park is a development that requires a tentative tract or parcel map approval, under Government Code Section 66427.5, the application for a special use permit for conversion or closure must be decided upon as part of the development’s tentative map application. This requirement must be complied with even if the park owner is not ready to file an application for tentative map approval under Government Code Section 66427.5. In such instances, the park owner must wait to file the project’s application for a special use permit for conversion or closure until they file their application for tentative map approval for the development that will be replacing the mobile home park. The City Council shall be the final decisionmaker on the special use permit for conversion or closure.
(2) If the park owner will not be required to obtain a tentative tract or parcel map approval for the development that will be replacing the mobile home park, under Government Code Section 66427.5, but will require approval of a development agreement, a development permit, zoning change, or any other planning department application, then the application for a special use permit for conversion or closure, required by this chapter, shall be filed and considered, concurrently with, and decided upon as part of the development’s planning department application approval. The City Council shall be the final decisionmaker on the special use permit for conversion or closure.
(f) Required Notices and Documents to Be Served on Homeowners by the Park Owner and Required Informational Meetings in Conjunction With an Application for Conversion or Closure.
(1) At least thirty (30) days prior to the date of filing an application for a special use permit for conversion or closure under this section, the park owner shall give written notice of its intention to convert or close the mobile home park to all homeowners in their park with proof of service. At the same time, a copy of the notice and proof of service must be provided to the City. The notice shall also be posted on all entrances of the park and on the doors, and bulletin boards in the park’s clubhouse. The same written notice shall be provided to all prospective new homeowners who intend to purchase a mobile home in the park as soon as they contact the park owner about purchasing a mobile home in the park or apply for approval to reside in the park for the rental of a space in the park and at least five (5) days prior to their payment of any space rent or deposit.
(2) Upon receiving, under Section 11-4.140(c), a deemed complete copy of the relocation impact report required by that section from the Director, the park owner shall reproduce and provide free copies of it to each mobile home owner in the affected park at least forty-five (45) days prior to the hearing on the application for special use permit for conversion or closure, the relocation impact report and any associated applications and reports required under this chapter. A certified list of the names and addresses of the residents who received the relocation impact report must be filed with the Director two (2) days prior to the hearing and signed under penalty of perjury.
(3) At least thirty (30) days before the hearing on the application for a special use permit for conversion or closure, the park owner shall conduct an informational meeting with the homeowners regarding the proposed park conversion or closure. The meeting shall be conducted on the premises of the park or other location acceptable to the City. At least seven (7) days before the meeting, written notice of the meeting shall be provided to all homeowners in the park with proof of service. A copy of the notice shall be provided to the City. The notice shall also be posted on all entrances of the park and on the doors, and bulletin boards in the park’s clubhouse. A City representative and the relocation counselor, as described in Section 11-4.150, shall attend the meeting.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.140 Relocation impact report.
(a) The Director shall select a consultant to prepare the relocation impact report required by Government Code Section 65863.7 after the submission of a conversion or closure application has been deemed complete. The applicant shall be notified, in writing, of the estimated cost of the report and shall be required to deposit that sum with the Department prior to the commencement of any work on the report. The City will then contract with a consultant for the preparation of the impact report. If, at any time during the contract period, additional monies are needed to complete the impact report, the applicant will be advised, in writing of the amount that is required. Before any additional work is performed on the report, the applicant shall provide the additional sum to the Department. Any excess funds remaining upon completion of the relocation impact report shall be returned to the park owner.
(1) The relocation impact report shall: (i) describe the impacts of the proposed conversion on the displaced homeowners’ abilities to find and obtain adequate housing in comparable mobile home parks; (ii) analyze any other significant economic and social impacts on the displaced homeowners; (iii) indicate if the park contains any of the City’s low- or moderate-income affordable housing stock; (iv) analyze the proposed closure’s consistency with the City’s Housing Element; (v) whether the proposed conversion will result in or materially contribute to a shortage of low- and moderate-income affordable housing within the City.
(2) Each report shall additionally contain the following information:
(i) A description of the proposed new use of the park property. If the proposed new use includes a housing component, then the description shall disclose the number and types of the housing units being proposed by size and the estimated offering sales prices or monthly rents and other charges for each proposed housing unit.
(ii) A proposed timetable for the closure of the park.
(iii) A legal description of the park.
(iv) The number of spaces in the park.
(v) Information about the mobile home owners and the mobile homes in the park. The consultant shall mail a questionnaire to each mobile home owner in the park seeking the following information and then include the responses in the relocation impact report:
(aa) The size, number of bedrooms and bathrooms, manufacturer and date of manufacture of the mobile home on the space.
(ab) The number of occupants of the mobile home and their length of residency in the park, their ages, and if any are attending school.
(ac) The total monthly space rent currently charged for each space with details showing the space rent, utility charges, and any other costs paid by the homeowner.
(ad) The annual income of each of the households.
(ae) The current homeowner’s mobile home’s purchase price and date of purchase.
(af) The estimated costs of any improvements that the current homeowner has made to the mobile home, including, but not limited to, patios, porches, pop-out rooms, and any recent major improvements to the home, including, but not limited to, a new roof or new siding.
(ag) A description of any handicap, disability, or special need of any of the homeowners or members of their households.
(ah) Other information that the Director deems relevant.
(vi) The “in-place” value that each of the mobile homes in the park would have if the park were not being closed, assuming the park’s continued safe, sanitary, and well-maintained condition. The value shall be determined by appraisals by a qualified appraiser chosen by the Director. The park owner shall pay for the cost of the appraisals.
(vii) The date of purchase and price paid for the park by the current park owner, the date and price of any subsequent capital improvements to the park and the price paid by the prior owner of the park and date of purchase.
(viii) An appraisal of the park, including its (aa) value if it is continued in its use as a rental mobile home park, (ab) value if it is used for the highest and best special use permitted by the current zoning for the site, and (ac) value if the new zoning requested by the park owner is approved. The City shall select the appraiser. The fee for the appraisal shall be paid by the park owner.
(ix) A summary statement containing information on the park owner’s total investment in the park with the homeowners’ total investments in their mobile home and their spaces in the park, presented in real dollars and current dollars adjusted for inflation.
(x) The estimated cost of relocating into an adequate mobile home located in comparable mobile home parks, including the purchase prices of those homes and the costs of moving into them, such as the required first and last month’s rent and security deposits.
(xi) A list of comparable mobile home parks, including their space rents, their residency requirements (e.g., income-to-monthly housing costs residency approval ratio, age restrictions, pet policy), whether the listed parks have any vacant spaces, and any restrictions on the age, size, type and condition of the mobile homes that the parks will accept.
(xii) Estimates from two (2) moving companies selected by the City and qualified to move mobile homes of the cost of moving each mobile home in the park, including the costs of permits and of tearing down and setting up the home at the new location including the cost of any upgrades to comply with applicable building, plumbing, electrical and health and safety codes and the cost of moving any improvements, including, but not limited to, patios, porches and pop-out rooms.
(xiii) The rental rates in the park being proposed for conversion or closure for each of the three (3) years prior to filing the application for a special use permit for conversion.
(xiv) The number, if any, of the mobile homes located in the park that are occupied by, or affordable to, households in each of the housing affordability categories of low-, very low-, extremely low- or moderate-income, as defined in Health and Safety Code Sections 50079.5, 50105, 50106 and 50093(b), that will be eliminated by the park’s conversion or closure. If there are any such households, then the relocation impact report shall analyze whether or not the development replacing the park will contain housing that is affordable to those households in the above income categories.
(xv) Proposed displaced homeowner mitigation benefits, which shall be determined on an application-by-application basis with regard to the facts and circumstances of the application. Mitigation benefits may include, but are not limited to, all of the following benefits that are reasonably necessary to fully mitigate the adverse impacts of the park’s conversion or closure on the ability of the displaced homeowners to obtain and relocate into adequate housing in other mobile home parks; provided, that mitigation benefits shall not exceed the reasonable cost of relocation, as documented in the relocation impact report:
(aa) Payment of the cost of physically moving a displaced mobile home to a new site, including the teardown and setup of the home and any movable improvements such as patios, carports, and porches, and packing, moving and unpacking all personal property.
(ab) Replacement or reconstruction of blocks, skirting, siding, porches, decks, awnings, storage sheds, cabanas, and earthquake bracing as necessitated by the relocation.
(ac) Indemnification for any damage to personal property of the displaced homeowner caused by the relocation.
(ad) Payment of a lump sum to compensate for payment of the first and last month’s rent and any security deposit at the new mobile home home park.
(ae) Reasonable living expenses of the displaced homeowner and the members of their household from the date of actual displacement to the date of occupancy of the new site or home.
(af) For any of the homeowners’ mobile homes that cannot be relocated, the proposed mitigation benefits may include, but are not limited to: (1) payment of the appraised in-place market value of the displaced homeowner’s mobile home pursuant to Government Code Section 65863.7(a)(2)(A); (2) the option of lump sum payments to those homeowners in an amount that will enable them to purchase and relocate into adequate mobile homes that are located in comparable mobile home parks.
(ba) If the appraised value is insufficient to allow a displaced homeowner to purchase an adequate mobile home in a comparable mobile home park, then the proposed mitigation benefits may include payment of the reasonable cost of purchasing an available adequate mobile home located in a comparable mobile home park.
(bb) If there is a legal owner of any displaced homeowner’s current mobile home, then the lump sum payment shall be sufficient to satisfy the remaining obligation owed by the homeowner to the legal owner under the homeowner’s mobile home purchase loan and to reimburse the homeowner for their remaining invested equity in their mobile home as demonstrated in the appraisal required by this section. If the homeowner is required to be paid the reasonable cost of purchasing an available adequate mobile home that exceeds the appraised value of their current mobile home, then the benefits, required to be listed under this subsection for them, shall be the aggregate of their remaining invested equity, after the payoff of their loan to their home’s legal owner, and the difference between the appraised value of their current home and the actual purchase price of an available adequate mobile home.
(xvi) Any other information that the Director determines is relevant to address the specific issues raised by the application, the impact study, and the requirements of State law and Watsonville’s laws.
(b) The displaced homeowner housing replacement and relocation plan required by Government Code Section 65863.7(a)(1) that complies with the requirements of Section 11-4.150 shall be prepared by the consultant as part of the relocation impact report, and it must be evaluated and approved, conditionally approved or disapproved concurrently with the relocation impact report and the application for a special use permit for conversion or closure.
(c) The Director shall review the relocation impact report and determine if it is complete in accordance with this section. Upon determining that the relocation impact report is complete, the Director shall issue a notification of the date of the public hearing on the application for special use permit for conversion or closure will be held. The Director shall also cause notice of the hearing to be sent to each mobile home owner in the affected park at least forty-five (45) days prior to the hearing. At that time, the Director shall also provide a copy of the relocation impact report to the park owner and shall set the hearing date in conjunction with the timing of the park owner’s reproduction and distribution of these documents required by Section 11-4.130(f)(2).
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.150 Displaced homeowner housing replacement and relocation plan and counselor.
(a) Pursuant to Government Code Section 65863.7(a)(1), the park owner shall file a replacement and relocation plan, which shall be prepared by the consultant, and is required to contain all of the following:
(1) The amount and type of the mitigation benefits, which pursuant to Section 11-4.140 are required to be listed in the relocation impact report, that it proposes to be provided by the park owner to all of the homeowners, including whether those benefits are proposed to enable them to relocate into an available space in a comparable mobile home park or to purchase and relocate into an available adequate mobile home that is located in a comparable mobile home park.
(2) In cases in which the report proposes relocating mobile homes into available spaces in other comparable mobile home parks, the plan shall demonstrate that:
(i) The mobile homes are physically capable of being relocated.
(ii) There are a sufficient number of available spaces in comparable mobile home parks to accommodate all of the homeowners whom the relocation plan proposes to relocate in this manner.
(iii) The homeowners will be able to meet the income and other residency requirements of the parks where the spaces are located.
(iv) The mitigation benefits, which the replacement and relocation plan proposes to be paid to the homeowners, will be sufficient to accomplish their proposed relocations.
(3) For the homeowners whom the replacement and relocation plan proposes to relocate by providing benefits to enable them to purchase and relocate into adequate mobile homes, which are located in comparable mobile home parks, the plan shall demonstrate that:
(i) There are a sufficient number of adequate mobile homes for sale in comparable mobile home parks to accommodate all of the homeowners whom the plan proposes to relocate in this manner.
(ii) The homeowners will be able to meet the income and other residency requirements of the parks in which the adequate mobile homes are located.
(iii) The mitigation benefits, which the replacement and relocation plan proposes to be paid to the homeowners, will be sufficient to accomplish their proposed relocations.
(4) If there is a legal owner of a homeowner’s current mobile home and the relocation plan requires the homeowner to surrender it to the park owner in exchange for their proposed mitigation benefit payments, then the replacement and relocation plan shall provide for the appropriate amounts of their mitigation benefit payments to be divided and paid to both the homeowner and to the legal owner, as provided for in Section 11-4.140(a)(2)(xv)(af)(bb).
(b) Relocation Counselor. A relocation counselor, selected by the City and paid for by the park owner, shall provide information about the available housing resources and assist with the selection of suitable relocation alternatives. Acceptable alternatives include available adequate mobile homes and comparable mobile home spaces and, to the extent that they are acceptable to both the homeowner and the park owner, rental apartments and ownership housing units, both affordable and market-rate units. The relocation counselor shall be familiar with the region’s housing market and qualified to assist the homeowners in evaluating, selecting, and securing placement in the replacement housing, and may assist with: arranging for the moving of all of the homeowner household’s personal property and belongings to the replacement housing, providing financial advice on qualifying for various types of housing, explaining the range of housing alternatives available, and gathering and presenting information regarding available housing. The relocation counselor shall assist in preparing and implementing the replacement and relocation plan.
(c) Payment of Mitigation Benefits to the Homeowners. The mitigation benefits listed in an approved replacement and relocation plan shall be required as a condition of approval of a special use permit for conversion or closure, and shall be paid to the displaced homeowners in the following manner:
(1) As soon as the application of the special use permit for conversion or closure, relocation impact report, replacement and relocation plan, and related approvals required by this chapter have been approved by the City Council, the park owner shall promptly pay those benefits to the homeowner, to any former homeowner eligible for such benefits, or to any person, firm or corporation performing relocation-related services for the homeowner, as the homeowner may direct, but not less than ninety (90) days prior to the date that the homeowner is required to vacate the mobile home park.
(2) If the homeowner is required to surrender their mobile home to the park owner in exchange for the lump sum relocation benefit provided in Section 11-4.140(a)(2)(xv)(af), then, in conjunction with receiving payment of their benefits, the homeowner and any legal owner of the mobile home shall be required to submit to the park owner all documents necessary to transfer complete title and ownership of the mobile home to the park owner, free and clear of all security interests, liens, or other encumbrances.
(3) The park owner may not, as a condition of being paid their benefits required by this chapter, require a homeowner to waive rights to appeal or otherwise challenge the adequacy of: the relocation impact report, the displaced homeowner replacement housing and relocation plan, the benefits approved of, the approval of the development replacing the park, or any related approvals or aspects of the conversion project.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.160 Procedures for review of the application for conversion or closure and the relocation impact report.
(a) When the application for a special use permit for conversion or closure and the relocation impact report have both been received from the park owner and the consultant and deemed complete by the Director, the Director shall set a time, date, and place for the hearing of the relocation impact report and related reports or applications required under this chapter by the City Council.
(b) If the mobile home owners in the park proposed to be converted or closed, provide written notification to the Director that they will be jointly represented at the hearing on the application for special use permit for conversion or closure and provide the name, telephone number and address of that representative, then, through that representative, the homeowners will be given equal time with the park owner in presentations in the hearing. If either side relies on the testimony of any expert witness(s), or if the City retains and relies on the testimony of an independent expert witness(s), then each side and the City have the right to cross-examine such witnesses. Each side has the right to be provided with any written materials relied upon by the expert witness(es) in their testimony or conclusions. Written submissions shall be provided to the opposing side and to the City at least fifteen (15) days prior to the scheduled date of the hearing.
(c) The City Council shall, within sixty (60) days after the close of the public hearing, issue a decision on whether the special use permit for conversion or closure should be approved based upon the findings set forth in Section 11-4.170.
(d) The decision of the City Council is final.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.170 Required findings for approval.
(a) Findings Required for Approval of a Special Use Permit for the Conversion or Closure of a Mobile Home Park and of Its Relocation Impact Report. An application for the special use permit for conversion or closure required by this chapter and for the relocation impact report required by Government Code Section 65863.7 and by Section 11-4.140 may be approved only if the following findings are made:
(1) That the displaced homeowner housing replacement and relocation plan meets all of the requirements of Section 11-4.150, including that it will provide all of the park’s displaced homeowners with sufficient mitigation benefits to enable them to obtain and relocate into adequate housing in other mobile home parks or into other housing to the extent that the other housing is agreed upon by the displaced homeowner and the park owner.
(2) That the mitigation benefits, which are listed in the replacement and relocation plan to be provided to all of the displaced homeowners, have been listed as a condition of approval in the project’s special use permit for conversion or closure, the relocation impact report, any required tentative map and in any of the project’s other development approvals required for the development intended to replace the mobile home park proposed to be converted or closed.
(3) That an adequate relocation impact report has been submitted to the City and approved that complies with the provisions of Government Code Section 65863.7 and with the requirements of Section 11-4.140.
(4) That the proposed conversion or closure of all or part of the mobile home park is not inconsistent with the City’s Housing Element.
(5) That the proposed conversion will not be detrimental to the public health, safety and general welfare.
(b) Additional Finding Required for the Closure of a Mobile Home Park When Approval of the Park’s Conversion to Another Use Is Not Concurrently Being Requested. When an application for the closure of a mobile home park is not also seeking approval of its conversion to another use, additional findings must be made that the park owner has filed a certificate, signed under penalty of perjury, attesting that the park owner is not seeking an early closure of the park in order to avoid any requirements of this chapter or of controlling State or Federal law that regulate the conversion of mobile home parks to other uses.
(c) The findings required by any subsections of this section may be excused only if the park owner, pursuant to Section 11-4.190, files an application for exemption from the requirements of this subsection and if that exemption is granted pursuant to the provisions of Section 11-4.190.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.180 Conditional approval of a special use permit for conversion or closure.
The City may grant a conditional approval by attaching conditions of approval. The conditions must be sufficient to enable the displaced homeowners to obtain adequate mobile homes or mobile home spaces in other comparable mobile home parks. Alternatively, the conditions may provide other adequate replacement housing that both the homeowners and the park owner have agreed to, which are sufficient to preserve the low- and moderate-income housing stock. Such conditions may include, but are not limited to, the following:
(a) The mitigation benefits listed in the relocation impact report and displaced homeowner housing replacement and relocation plan will be paid to every homeowner in the displaced homeowner replacement housing and relocation plan.
(b) Any other payment, provision or measure that the City finds will mitigate the adverse impacts of a park’s conversion or closure on the ability of the displaced homeowners to obtain adequate housing in other mobile home park.
(c) Any mitigation benefits do not exceed the reasonable cost of relocation.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.190 Exemption from the displaced homeowner housing replacement and relocation plan.
(a) After receiving a relocation impact report, which has been deemed complete, a park owner may file an application for a partial or total exemption from the obligations to provide the displaced homeowner mitigation benefits. Notice of such application, and proof of service thereon, with the information contained therein, shall be made on the mobile home owners of the park proposed to be converted or closed.
(b) Upon receiving an exemption application under this section, the Director shall determine if it is complete. The hearing date shall be held in conjunction with the hearing on the application for a special use permit for conversion or closure under this chapter. The Director shall determine if the employment of experts will be necessary or appropriate for a proper analysis of the exemption application. If the Director so determines, they shall also determine the anticipated cost of employing any such experts. The resulting figure shall be communicated to the park owner. The exemption application and the application for a special use permit for conversion or closure shall not be further processed until the park owner has paid to the City the estimated cost of expert analysis. Any unused portion for payments so collected shall be refunded to the park owner.
(c) An exemption application shall be based on either of the following bases:
(1) The current use of the park is not economically feasible, or that a requirement to provide displaced homeowner mitigation benefits would eliminate substantially all reasonable use or economic value of the property for alternate uses, or would otherwise result in a taking.
(2) A court of competent jurisdiction has determined in connection with a bankruptcy proceeding that the closure or cessation of use of said property as a mobile home park is necessary and that such court has taken further action that would prohibit or preclude payment of relocation assistance benefits, in whole or in part.
(d) Any exemption application made pursuant to subsection (c)(1) of this section shall contain the following information:
(1) Statements of profit and loss from the operation of the mobile home park for the most recent five (5) year period prior to the date of the application or request, as certified by a certified public accountant;
(2) Evidence supporting the park owner’s assertion that the continuing use of the property as a mobile home park is economically infeasible;
(3) The estimated total cost of the displaced homeowner mitigation assistance;
(4) Other information that the Director deems to be relevant in a review of the application.
(e) Any exemption application filed pursuant to subsection (c)(2) of this section shall be accompanied by adequate documentation as to the title, case number, and court in which the bankruptcy proceeding was held, and copies of all pertinent judgments, orders, and decrees of such court.
(f) Where an exemption from having to provide displaced homeowner mitigation assistance has been applied for based upon the impact of providing such assistance, the City Council shall make one (1) of the following findings:
(1) That the park owner shall not be exempt from the homeowner mitigation benefits obligations because substantial evidence has not shown that both of the following are true:
(i) That the continued use of the property as a mobile home park would substantially eliminate all economically viable use of such property; and
(ii) That the cost of the displaced homeowner mitigation assistance benefits would eliminate substantially all economically viable use of the property, or would otherwise result in a taking.
(2) That the park owner shall be exempt from the displaced homeowner mitigation benefits requirement, in whole or in part, because substantial evidence has shown that either or both of the following are true:
(i) That the continued use of the property as a mobile home park would substantially eliminate all reasonable use of such property; and
(ii) That the cost of the homeowner mitigation assistance benefits would eliminate substantially all reasonable use or economic value of the property, or would otherwise result in a taking.
(3) In making findings on an exemption application under this section, the City Council may take into account the financial history of the mobile home park; its condition and the condition of its amenities and improvements thereon; the cost of any necessary repairs, improvements or rehabilitation of such park; the estimated cost of the displaced homeowner mitigation assistance; the fair market value of the property for the proposed alternative use; the fair market value of the property for continued use as a mobile home park; and other relevant evidence.
(g) Where an exemption from having to provide the displaced homeowner mitigation assistance benefits has been applied for based upon bankruptcy proceedings, pursuant to subsection (a) of this section, the Planning Commission shall make one (1) of the following findings:
(1) That the park owner shall be exempt from the displaced homeowner mitigation benefits requirement in whole or in part, if a court in connection with a proceeding in bankruptcy has determined that both that the closure or cessation of use of said property as a mobile home park is necessary and has taken further action which would prohibit or preclude payment of such benefits, whether in whole or in part. In rendering its decision, the Planning Commission shall have the power to eliminate or waive all or portions of the requirements of this section to the extent necessary to comply with the court’s judgment, order or decree.
(2) That the park owner shall not be exempt from the displaced homeowner mitigation assistance benefits requirement based upon any actions of a court of bankruptcy, because substantial evidence has not shown that any such court has ordered the closure or cessation of use of said property as a mobile home park, or that such court has prohibited or precluded the imposition of such obligations, or both.
(h) The approval of an exemption from the displaced homeowner mitigation assistance benefits requirement shall not have the effect of eliminating the requirements of the applicable portions of the special use permit for conversion or closure, the relocation impact report, the displaced homeowner mitigation requirements required by this chapter, which were not explicitly exempted under this section.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.200 Acceptance and performance of mitigation measures.
(a) The park owner shall execute and record a certificate and file proof thereof with the Director, accepting the mitigation benefits imposed on the approval of a change of use or closure within ninety (90) days of the final action approving the change of use and shall give the homeowners the six (6) or twelve (12) month notice of the termination of tenancy and closure of the park required by Civil Code Section 798.56(g) within one hundred twenty (120) days of that action. An approval of a change of use shall automatically become null and void if the certificate accepting the conditions is not executed and filed within ninety (90) days of the date of the approval of the change of use or the notice of termination of tenancy has not been given within one hundred twenty (120) days of that resolution. All mitigation benefits imposed on the approval of conversion or closure shall be fully performed as to each homeowner prior to that homeowner’s required vacation of the mobile home park unless otherwise provided in the mitigation measure. No eligible homeowner shall be required to vacate a space unless the park owner is in full compliance with all mitigation measures imposed pertaining to such homeowner and has otherwise fulfilled the notice requirements of this chapter and of the California Mobile Home Residency Law relating to termination of tenancy.
(b) No building permit shall be issued for the development of any real property which has been, or is being, converted from a mobile home park or closed pursuant to this chapter unless and until the City has approved the change of use or closure and the park owner has fully complied with the mitigation requirements required.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.210 Subsequent modification of the mitigation measures.
After a special use permit for conversion or closure has been approved and after the park owner has executed and recorded a certificate of acceptance of its conditions, modification of the mitigation conditions imposed, including any additions and deletions, may be considered by the City upon the filing of a written application by the park owner, or the park owner’s authorized representative. Modification may be granted if there has been a change in circumstances or new information has become available that could not reasonably have been known or considered at the time of the hearings on the special use permit for conversion or closure. Examples of such new information or changed circumstances include, but are not limited to, revised plans by the park owner or a change in the availability of relocation spaces or mobile homes. Modification shall not be granted when it would unreasonably prejudice the ability of the homeowners to relocate to adequate mobile homes. All relevant substantive requirements, notice requirements to the homeowners, and the procedural and appeal conditions specified in this chapter shall be followed to obtain Planning Commission approval of such an application to modify mitigation conditions under this section.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.220 Expiration, extension, and revocation of special use permit.
(a) Expiration. An approved special use permit shall become automatically null and void if the park’s conversion has not occurred within twenty-four (24) months of its effective date unless that date has been extended as provided in this section.
(b) Extension. Upon application by the park owner filed with the Director on or before the date of expiration of the special use permit, or other required approval relating to the conversion or closure of the mobile home park or the development replacing it, the approvals may be extended by the City Council, if the City Council finds that their termination would constitute an undue hardship to the park owner and that the continuation of their approval(s) would not be detrimental to or have any further adverse impact on the homeowners in the park. In approving an extension, the City Council may subject the applicable permit approval to any conditions of approval deemed necessary to mitigate any adverse impacts resulting from the extension. Multiple extensions may be granted, but no one (1) extension shall be issued for more than twelve (12) months.
(c) Revocation. The Council or the Planning Director may initiate proceedings to revoke the special use permit. The Planning Director shall give written notice of the hearing to the park owner and the homeowners at least thirty (30) days prior to the hearing. The City Council may, by resolution, revoke the applicable approvals if any of the following findings are made:
(1) Approval was obtained by fraud, deceit or misrepresentation.
(2) The park owner is either not currently or has not been in compliance with its conditions of approval contained or with the provisions of this chapter.
(3) A revocation shall be effective fifteen (15) days after the date of the action by the City Council.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.230 Measures to prevent interference with mobile home owners’ access to their rights.
(a) A park owner shall not require a homeowner to sign a waiver, lease or rental agreement if it includes a waiver of the homeowner’s rights under this chapter, including but not limited to the right to receive the mitigation benefits approved of under this chapter or the right to oppose the special use permit application or to contest the adequacy of the related approvals for the project, including those necessary for the approval of the development that is intended to replace the park under this chapter. Any such waiver of rights shall be deemed to be invalid and void.
(b) If any application for a special use permit for conversion or closure is withdrawn or denied, the park owner shall immediately inform in writing all homeowners who were previously given notices or announcements regarding the proposed conversion or closure.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)
11-4.240 Preemption.
In the event any provisions of this chapter conflict with a provision of State law, this chapter shall be interpreted and applied in conformity with State law.
(§ 2 (Exh. A), Ord. 1467-24 (CM), eff. November 7, 2024)