March 29, 2004
BOARD MEETING DATE:
April 6, 2004
Honorable Board of Supervisors
(1) Introduction of Ordinance Amending Chapter 1.30 (Mobilehome Rent Control) of Title 1 of the San Mateo County Ordinance Code to Provide for an Exemption for Sales Financed by Revenue Bonds, and (2) Adoption of a Resolution Authorizing the President of the Board to Sign an Agreement to Join the Independent Cities Lease Finance Authority
(1) Introduce an ordinance amending Chapter 1.30 (Mobilehome Rent Control) of Title 1 of the San Mateo County Ordinance Code to provide for an exemption for sales financed by revenue bonds, and waive reading of the ordinance in its entirety, and (2) adopt a resolution authorizing the President of the Board to sign an agreement to join the Independent Cities Lease Finance Authority as an associate member.
On September 23, 2003, the Board adopted an ordinance which established rent control for mobilehome parks in unincorporated San Mateo County. These regulations limit the maximum rent increase which may be imposed during any twelve month period to 75% of the change in the consumer price index. A mobilehome park owner may petition for a greater increase, but the increase may only be granted after a public hearing.
Millenium Housing, a non-profit corporation which is in the business of owning and operating mobilehome parks, has entered into negotiations with the current owner of the El Granada Mobilehome Park to purchase the Park. County staff has been informed by representatives of Park tenants that there is substantial support for the sale among tenants of the Park. Financing for purchase of the Park would be secured through the issuance of mobilehome park revenue bonds, issued under the authority of the California State Health and Safety Code. Millenium Housing has identified the Independent Cities Lease Finance Authority ("ICLFA"), a joint powers authority formed by a number of California cities, as the preferred issuer. The current schedule calls for the issuance and sale of bonds to occur in late April or early May. In order to issue the bonds, the County must join the ICLFA, as an associate member, and conduct a TEFRA hearing to satisfy federal tax requirements and authorize issuance of the bonds. Membership in ICLFA would be solely for the purpose of providing the jurisdictional basis for issuance of the bonds. The County would assume no obligations beyond conducting the TEFRA hearing.
In order to secure financing adequate to purchase the Park, rent would have to be increased to levels beyond that allowed under the County's current rent control regulations. With the necessary increase, rent levels would average approximately $900 per month. Currently, the regulations do not provide a mechanism by which a party other than the Park owner may petition for a rent increase beyond the maximum allowed.
In order to facilitate purchase of the El Granada Mobilehome Park, the following actions would have to be taken:
1. The Board would have to amend County rent control regulations to provide an exemption for a rent increase associated with a purchase of a mobilehome park using mobilehome park revenue bonds.
2. The County would have to join ICLFA, as an associate member, to allow revenue bonds to be issued for the purchase.
3. The County would have to hold a TEFRA hearing to authorize sale of the bonds issued by ICLFA.
The necessary actions would be taken in two steps. On April 6, the Board would be asked to 1) introduce an ordinance providing for a one-time exemption from the County's rent control regulations where the rent increase is sought in connection with a sale authorized by revenue bonds, and the rent increase is supported by at least two-thirds (2/3) of the tenants, and (2) adopt a resolution authorizing the President of the Board to enter into an agreement to become an associate member of ICLFA. On April 20, the Board would be asked to (1) adopt the ordinance, and (2) conduct a TEFRA hearing and adopt a resolution approving the issuance of mobilehome park revenue bonds to finance acquisition of the El Granada Mobilehome Park by Millenium Housing.
There will be no fiscal impact to the County associated with any action the County takes.
The actions proposed fulfill the Shared Vision goal of offering a full range of housing choices to residents of the County and the Shared Vision commitment to ensure that housing exists for people at all income levels and for all generations of families.
THOMAS F. CASEY III, COUNTY COUNSEL
John L. Maltbie, County Manager
Marcia Raines, Director of Environmental Services