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More Background on Clearview Court

The following information was forwarded to me by Anita Webb, Vice President of the Clearview Residents Association. She declined to be interviewed for Free Radio Santa Cruz after the
Council meeting (though their attorney Dwight Herr and a spokesperson for the property owners did).

What's missing from the appeal below is any attempt to retain real rent control
(independent of the lease) as is currently guaranteed by law and should be guaranteed by law. It seems that they are all so exhausted and/or intimidated by the fight that they don't want to make this demand and/or prepare to take it to the voters with an Initiative.

The Council session resumes on Tuesday April 27th at 5 PM--or that was the latest word from Mayor Scott Kennedy so they can meet in closed session over the weekend. In the last week, however Kennedy broke two commitments to put items on the agenda. One was to schedule an endorsement of the Bring America Home law. Another was to discuss a weak resolution from the City Council's Public Safety Committee opposing the Patriot Act. Kennedy's word may not be worth much.

The Clear View residents, through their attorney, asked for more time to consider the latest behind-closed-doors changes made by City Council. Ed Porter, who, sadly, is
apparently their strongest ally on the Council, was telling them they had to make their points in closed door conversations to individual Councilmembers to have any impact.

The destruction of low-income housing is an important issue for my group--Homeless United for Friendship and Freedom--as well as the gutting of rent control. So far Clear View Court residents seem to have resigned themselves to losing rent control, and getting a long-term lease which destroys their ability to sell their coach or transfer it or borrow money on it.

We all need to fight for the retention and extension of rent control (to the mobile homes not covered by it in the court--poor, Latino families mostly, I'm told),

Fair rents city-wide, not just for mobile home owners, is a principle that could unite Clear View Court people with other tenants in the city looking for rent control (those outside trailer parks). As well as with those demanding that City Council keep its promises fully and not sell out tenants at the whim of Barisone and Wilson (City Attorney and City Manager respectively).

Anita Webb <ajwebb (at) sasquatch.com>, Vice President of the Clear View Court Residents Association (or whatever it's called), wrote the following in an e-mail:

"We still need all your support, letters, phonecalls, and your attendance ...if possible. IF we must be without Mobilehome Rent Control, which the City desires, then the City is moving in the right direction by including non-rent controlled residents in their proposal. That's an important step.

"However, we must convince the City to reduce their high SPACE rent amounts they are proposing in this emergency ordinance (from $536 to $1186
depending on what size category you fall into), justify their departure from HUD formulas and skewing their formula to come out at such high rent amounts (which are not far off of park owners pending increases), and provide data with how they arrived at the 4 size categories they did which puts most residents in the higher rent categories. It is critical that the City base their calculations on established federal formulas and objective criteria, not arbitrary figures that force a certain result.

"As it stands, should this ordinance be adopted as is, it WILL impact the 66 low- to moderate-income families, the elderly, and the disabled living at Clearview, causing up to 200% rent increases for some. Even this amount phased in at 18-20% per year as is now proposed for non-rent controlled residents, will cause immediate impact as their take-home pay will not increase at those rates. That will impact their ability to pay these high rents which in turn impacts their ability to stay or pay their mortgages,
and will impact ALL resident's ability to sell their homes as all buyers would be subject to the full high rent amounts (no phase in). Who would take on a mortgage on top of these rents when you can just rent at these rates, or buy real estate with that combined amount - there would be no buyers, except perhaps the park owners snapping up the homes at distressed
prices and renting out the units for the same or similar price as their space rents as is happening in other parks where high rents are suddenly imposed. Residents do not even have the option of relocating their homes as other parks do not accept used homes, only brand new replacements.

And in light of the possibility that Clearview Court may be in the middle of a 3-year heavy construction zone with the dirt, noise, etc that brings, with Park Owners luxury townhouse developement planned for one acre of current Clearview Court mobilehome park land, and the hotel razing and reconstruction at triple capacity across the street, and the 45-ft 5-level
parking structure and conference center to be constructed around the border of MOST of the park resulting in increased traffic, noise & air polution, and solar access to homes, loss of privacy...whose going to BUY in here?

"Who would even rent here? Quality of life living at Clearview will deteriorate, and no one wants to live in the middle of a long-term
construction zone, nor in the shadows of a parking tower. As you can see, serious issues remain to be addressed, and the residents of Clearview would greatly appreciate the public's ongoing support.




In an earlier e-mail, Webb writes:

"As you may be aware, the City of Santa Cruz is moving forward with the elimination of Mobilehome Rent Control as we knew it, with the goal of protecting their General Fund from litigation exposure. By further amending the Mobilehome Rent Control ordinance, they want to implement their version of space rents for among other factors, the low- to moderate-income nature
of Clearview Court Mobilehome tenants in a 34-year (rent control phase-out) Lease.

"Clearview Court is an all-age Manufactured Home Park, converted 5+ years ago from a travel trailer park, and therefore has very small, substandard size spaces, with the majority of homes ranging from 250 to 600 sq. ft. and no park amenities other than a small laundryroom. The Park owner WCLA (developers Cliff Swenson, Corbett Wright and Steve Carmichael) wants to charge maximum space rents possible as evidenced in their recent pending rent increase notices from the office of Barry Swenson Builders (Park
Manager and pending builder on Clearview property). WCLA's rent increase notices, triggered last year by the City's actions to phase-out rent control, reflected up to 350%+ increases (up to $1600, or possibly more
under their recently proposed methodology).

"Clearview Homeowners want reasonable space rents, that do not rob them of equity or the ability to sell their homes, and one 34-year lease for all residents.

"The City prepared a proposed Emergency Amendment to what remains of the Mobilehome Rent Control Ordinance last week intended to address Clearview Court. The most critical component of the Amendment is to establish Market Space Rents, which is a good step. This Amendment proposal is in light of the opposite positions of Homeowners and Park Owners following two
negotiations meetings of all three parties (including the City).

The Clearview Homeowner Association Board submitted two sources of independent studies that shows market space rents for Clearview Court
should be in the $400-$550 range. The City created a formula starting with Federal Register rents for “dwellings� (not space rents) and plugged in numbers on their own formula that resulted in Space Rents up to $1186. The Homeowner Association Board feels there are inaccuracies in the formula, and the resulting rent amounts unacceptable. The City’s proposed space rents would result in an immediate 200% increase for some residents, and with annual updates and increases would raise the rent figures all residents would eventually be subject to, as well as impact the ability for
all residents to sell their homes. These space rents are IN ADDITION to other payments residents make for home mortgages, all utilities (sewer, trash, water, electricity, gas), homeowners insurance, home repairs and maintenance, and property taxes. Also, the City had quoted in the Sentinel newspaper last week that according to this proposed ordinance, rents would "only" increase up to 30% - a major contradiction to the actual ordinance.

"Further, even if residents could raise the money to move their home, they do not have that option as there are no vacant spaces in other parks, and it was learned that other parks will NOT accept "used" homes onto their lots - only brand new from the manufacturer when an old home is bought-out and removed, further causing the effect of being held "prisoner" and forced to pay high rents, or sell at huge discount or abandon their homes.

"It is also known there is a moratorium on home loans at Clearview Court by a large local lender, AND some local manufactured home dealer/realty companies are advising clients "DO NOT BUY" AT CLEARVIEW COURT OR DeANZA Mobilehome Parks, due to the City eliminating Rent Control! This could be changed if reasonable rents are established and maintained, as they were until last year.

"A City Council meeting will be held on Tuesday, ...when this matter will be heard."
This will possibly be our final meeting on this emergency ordinance, therefore it is CRITICAL that you and everyone you can gather attend this meeting as a show of support, and speak, write letters, make phonecalls, or email to the City
council on this matter...

The goal is to ask the City Council to arrive at REASONABLE space rents for Clearview Court. Reasonable amounts would be current rents (the
majority of which range from $400 to $525) increased annually at % of CPI (inflation) that historically has been done with all residents in this Park. Another approach would be to base amounts on comparable Mobilehome Park space rents and the benchmarks already established in the Federal Register for Manufactured Home Space Rent adjusted annually and increased at a % of CPI. Market Rents up to $1186 (that would be updated and increased annually) the City is currently proposing while a little less than WCLA's rent increases, would still have the impact of displacing residents subject to immediate rent increases of 200%, further cause the inability to sell homes or recover home equity, and cause potential foreclosures and financial ruin of many residents.

"Failure to recognize all these facts and the supporting data submitted to the City in setting REASONABLE rents is unjust, and sells out our most vulnerable citizens - low- to moderate-income workers with families, seniors, and disabled persons that live in this Park.

"Residents would greatly appreciate your support by sending your comments to City Council members ... and attending this important City Council meeting. THANK YOU and blessings to us all.

City Contact Info:

To: Honorable Mayor and City Councilmembers

Email: citycouncil (at) ci.santa-cruz.ca.us
Copy Email to City Clerk to insure your email gets on public record: cityclerk (at) ci.santa-cruz.ca.us Phone: 831-420-5030, FAX: 831-420-5031 Address: 809 Center St, Santa Cruz, CA 95060

NOTE FROM NORSE: The next City Council meeting is Tuesday April 27th with the Clear View Court item added, I understand, to the afternoon agenda. Supposedly at the 5 PM time certain. Call 420-5020 to confirm.
 


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