San Diego County Supervisor Dianne Jacob

DATE: May 21, 2003
TO: Board of Supervisors
SUBJECT: PRESERVING AFFORDABLE HOUSING FOR MOBILE HOME OWNERS

SUMMARY:
Overview
San Diego County is currently one of the most expensive places to live in America. The high cost of housing here has created an increasingly difficult and unique situation for mobile home owners. While they already own their home, they often do not own the land on which it sits. They rent the land from the mobile home park owner, who controls the space rent. In some parks, mobile home residents--many of whom are seniors, disabled, or on fixed incomes--are nearing a point where they may be forced out of their homes, not because they cannot pay the mortgage, but because they cannot pay the rent for the land.

Some mobile home residents receive federal funding through the Section 8 rental assistance program. However, no resident can receive Section 8 funding without the permission of the park owner, and ironically, many residents do not qualify for Section 8 because their space rent exceeds the maximum allowable Section 8 Fair Market Rent level. Those who do qualify for the program are placed on a waiting list that is two to six years long. As a result, some mobile home owners find themselves victims of the system, as they are not able to receive federal assistance, not able to afford the high cost of relocating their coach, and no longer able to afford their space rent.

In light of this critical need, today's action will direct the Chief Administrative Officer to work with mobile home park owners and mobile home residents on the Mobile Home Issues Committee and return to the Board with recommendations on ways to preserve and protect affordable housing for mobile home residents in San Diego County.

Recommendation:
VICE CHAIRWOMAN DIANNE JACOB:
Direct the Chief Administrative Officer to work with mobile home park owners and mobile home residents on the Mobile Home Issues Committee and return to the Board with recommendations on ways to preserve and protect affordable housing for mobile home residents.

Fiscal Impact
This action will result in the addition of no staff years and no future costs.

BACKGROUND:
San Diego County is one of the most expensive cities in America. Only 22% of San Diego County households can afford to purchase a median-priced single family home, according to the January 2003 Housing Affordability Index report. While this report defines the housing crisis in terms of the number of people who can afford (or cannot afford, as the case may be) to purchase a home, there is another, equally serious, element to this dilemma: keeping those who own their own homes from being forced out onto the streets.

San Diego's housing crisis is unique for mobile home owners, many of whom are seniors or disabled. While they own their home, they often do not own the land on which it sits, but rent the land from the mobile home park owner, who controls the space rent.

Most mobile home park owners in San Diego County keep their average space rents at or below the federally established HUD Fair Market Value level. Regrettably, however, there are a few park owners whose only concern is their bottom line, and who raise rents well over the fair market rent level, leaving their residents financially crippled. Some San Diego County mobile home residents have seen their space rent increase as much as 25% over the course of six months. Many residents are nearing a point where they may be forced out of their homes, not because they cannot pay the mortgage, but because they cannot pay the rent for a postage sized piece of dirt!

For some low-income residents, federal funding is available through the Section 8 rental assistance program. However, no resident can receive Section 8 funding without the permission of the park owner, and ironically,
many residents do not qualify for Section 8 because their space rent exceeds the maximum allowable Section 8 Fair Market Rent level. Those who do qualify for the program are placed on a waiting list that is two to six years long. As a result, some mobile home owners find themselves victims of the system, as they are not able to receive federal assistance, not able to afford the high cost of relocating their coach, and no longer able to afford their space rent.

San Diego County mobile home owners need options. Certainly, in a time when fewer and fewer people can afford to own their own homes at all, it is imperative that we do everything we can to help existing mobile home owners stay homeowners.

Respectfully submitted,

DIANNE JACOB
Supervisor, Second District