County supervisors reject claim by Cambria mobile-home park owner who said his profit is unreasonably low rate of return

Bob Cuddy

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County supervisors on Tuesday rejected a claim by a Cambria mobile-home park owner who said his 6.25 percent profit is an unreasonably low rate of return.

Oak Terrace Mobile Home Park LLC had requested boosts of between $11.87 and $116.84 on top of what the county’s rent control ordinance allows. There are 44 mobile homes in the over-55 park.

Attorney Anthony C. Rodriguez, representing the owners, said the average rent at the park is below $400, while market rates are between $550 and $600.

He said not granting a larger increase constituted a hardship under the county’s rent control

ordinance, which took effect in 1984. He said the formula the county uses to determine increases denies the owners their constitutional right to a fair return on their investment.

The corporation bought the park in 2001, for $1.6 million, Rodriguez said.

Rodriguez had first made its case to the county’s Mobile Home Rent Review Board, which ruled against the larger increase June 19. Tuesday’s hearing was an appeal of that decision.

While Rodriguez argued the case for the park owner’s hardship, residents of Oak Terrace told supervisors that they would not be able to take a jump in rent.

“The value of my (mobile) home has gone down 31 percent,” said John Bailey. “I don’t have discretionary income; I don’t own a mobile home park.”

“We can’t just pick our homes up and move them,” Sharon Bailey added.

Sharon Bailey said mobile homes provide af fordable housing for a county government that is chronically short of it.

Supervisors upheld the rent review board’s decision against the hardship exemption.