Mobilehome parks: rent caps.
The bill impacts mobilehome park governance by redefining the term 'owner' to include mobilehome park owners and their agents regarding tenancy termination and just cause requirements. It applies to rent increases from February 18, 2021, through January 1, 2030. Mobilehome parks defined as 'qualified' — those regulated by two or more cities — will be subject to these caps, which is a significant enhancement of tenant protections compared to previous legislation that excluded these types of dwellings. The legislation takes a firmer stance against rent gouging, demonstrating the state's commitment to addressing the current housing crisis by providing safeguards for vulnerable mobilehome residents.
Assembly Bill 978, known as the Mobilehome Parks: Rent Caps bill, seeks to address the significant housing crisis in California by imposing restrictions on rent increases in mobilehome parks. Specifically, it amends the Civil Code and extends the existing rental rate increase restrictions from the Tenant Protection Act of 2019 to include mobilehome spaces, requiring that rent increases be no more than 3% plus inflation (as defined by the Consumer Price Index) or 5% at most per year, whichever is lower. These measures are designed to protect residents from excessive rent hikes, particularly in areas where they might face financial instability.
The sentiment surrounding AB 978 has been generally positive among tenant advocacy groups, who view it as a necessary step to provide security and affordability to mobilehome residents, many of whom are seniors and low-income families. However, there are concerns among landlords and property managers about the limits on their ability to adjust rents according to market conditions. The debate touches on the balance between providing adequate protection for tenants while ensuring property owners can maintain viability and profitability in a challenging economic environment.
Notable points of contention include arguments from property owners about the purported overreach of the bill, which they claim undermines their rights to adjust rents appropriately amid ongoing inflationary pressures. Additionally, there are discussions about the potential unintended consequences of restricting rents that could lead to disinvestment in mobilehome parks, negatively affecting maintenance and services provided to residents. Supporters of the bill counter that the unique housing challenges posed by the pandemic and broader economic context necessitate these temporary but crucial protections to ensure housing stability for California's most vulnerable populations.