Petaluma's City Council defended its rent control ordinance against
recent attacks on Monday, deciding not to discuss possible changes to
the law out of fears that opening the issue would harm renters.
The decision came in
response to a letter sent July 7 from a lawyer representing all seven
of the city's mobilehome park owners. In the letter, the owners
requested changes to the ordinance that would allow for “fair market”
rent increases. The letter, from Santa Ana-based lawyer Mark Alpert,
alleges that current residents “enjoy rents below fair market levels”
and says that changes in the law would save both the city and park
owners on litigation costs.
After
the letter was sent, city officials said that a more specific proposal
was needed from park owners on what parts of the ordinance they wanted
to change. On July 13, Councilmembers Teresa Barrett and Tiffany Renée
met with Bill Feeney, the owner of the Sandalwood Estates mobile home
park, who said that he had initiated the letter. In the meeting, he
suggested some form of vacancy decontrol, under which rent increases
would apply to new renters and not existing tenants.
“Although
the park owners are advocating the implementation of vacancy decontrol,
we want to discuss and formulate the details regarding exactly how it
will be implemented with the city manager,” said Feeney in an e-mail
interview. “It is ridiculous for the City Council to reject a meeting
for lack of ‘specific alternatives' when the purpose of the meeting is
to help formulate specific proposals!”
Barrett and Renée reported
the meeting to the City Council on Monday, where council members
decided not to discuss changes to the ordinance. The council's
consensus was that the current ordinance is effective in protecting
residents, and any attempt to change the ordinance may expose
residents, many of whom are modest-income seniors, to unjustified rent
increases.
Feeney's
proposals, if enacted, would “change the whole nature of rent
stabilization,” said Barrett. She said that Feeney knew of the
ordinance when he bought the park, and that he made the choice to make
improvements to the park, which he later cited as reasons for seeking
higher rents.
“I don't think what he is proposing will help the city or mobilehome residents,” she said.
Councilmember
David Glass said that mobilehome park owners “have been treated more
than fair,” and that their lower rates of return should be expected in
this economy.
The rent
control issue has been an ongoing topic in the city's litigation in
recent years. Feeney filed four different lawsuits against the city
starting in 2001, claiming that the ordinance unfairly prevented him
from making “reasonable” rent increases to pay for improvements to the
Sandalwood park, which has 178 rental spaces. City officials say that
Feeney has been aggressive in bringing lawsuits before the city, while
Feeney has said that lawsuits are the only way to voice his concerns,
because the city has refused informal mediation.
In 2009 alone, the city's Sandalwood-related litigation fees came to $80,000.
In
May, Feeney dropped all of his outstanding lawsuits against the city,
saying they were becoming increasingly costly. However, Feeney's letter
said that “continuing disputes and legal expenses” are inevitable
unless changes are made because “the status quo is not acceptable.”
Feeney
could not be reached for comment about the specific proposals he
presented for modifying the ordinance or whether specific litigation is
in the works.
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