Arbitrator nixes big rent increases sought by mobile home park

Owners sought to triple the monthly charges for parking mobile homes at a Petaluma mobile home park.

photo credit: Noah Abrams/KRCB
Inside Petaluma's Little Woods Mobile Park

In a resounding defeat for a landlord this week, an arbitrator has rejected any and all rent increases at Petaluma's Little Woods Mobile Home Park.

Park operators had sought to raise the charge for mobile home spaces by more than $1,500 a month. The average ground rent is currently $495.

An appeal is possible, if not likely and park owners can petition for reimbursement of some legal costs.

But Petaluma mobile home tenants rights advocate Jodi Johnson said the arbitrator recognized inconsistencies, contradictions and faulty methodology in the expert testimony and evidence from attorneys representing the owners.

"She saw through that it was nothing but intimidation, threats, and intent to get rid of rent stabilization," Johnson said.

Johnson, who resides at a different Petaluma mobile home park, credits community support and fundraising in helping park residents make their case.

"I leveled the legal playing field, which doesn't always happen in mobile park residents against mobile park owners because there's an imbalance of money, but we did it, and because of that I was, what I would call doing the 'yippie dance' yesterday because we clearly stated the facts, we never wavered from the facts, and that won out. And that is like a beautiful thing, just beautiful," Johnson said.

Johnson described what the owners sought as mind boggling.

"They first submitted six methodologies of how they could come up with, absolutely believing that they deserved $1530 more, in ground rent, on top of what was already being paid per month. It was the largest ask in California history from a mobile home park owner in an application for a fair market increase. It was insanity," Johnson said.

The arbitrator, in her ruling, found the park owners failed to present enough evidence to prove their case. She noted that park owners had initially sought a rate of return of 11 -12 percent,

but also mentioned 11 - 20 percent.

That's while stating the park was delivering only a 2.1 percent rate of return.

In a federal lawsuit park owners filed last year, it was stated the park was delivering a seven percent rate of return. The contradictions were noted.

The discrepancies also raised questions about the sincerity of warnings that without rent increases that park owners would close due to a lack of profitability.

"One of the retaliations was, they sued the City of Petaluma for a state law, in federal court, saying that their civil rights were violated. And in that federal lawsuit, they put that they were making a seven percent increase per year of profitability. the contradicted themselves in almost every paperwork that they ever submitted, or anything that they even communicated."

Johnson said this case could have wide implications.

"The City of Petaluma is going to set precedent because this is happening in every city, in every state in the United States right now. When you stand up, they will not prevail."

Johnson said she is gearing up for a new battle, as Petaluma's Capri Mobile Home Park was recently purchased by the same limited liability company.