California Seniors Face Steep Rent Hikes After Mobile Home Park Sale

Residents of the Crestview Hills Mobile Home Park in Fallbrook, California, are experiencing a significant increase in their rent following the community's recent sale. The 55-and-older community has seen its rent nearly double for some residents, with a second increase announced this year due to a property tax reassessment.

According to a letter shared with residents and reported by KGTV, the new ownership is anticipating a substantial property tax reassessment, including supplemental and higher ongoing annual property taxes. The management company, Cabrillo Management Corporation, stated that the rent increase is necessary to cover the costs of the sewer system replacement and the estimated property tax increases.

"This increase covers the cost of the sewer system and the estimated property tax increase costs moving forward. Please know that this increase is not profitable to ownership this simply covers increased operating cost," a spokesperson for Cabrillo Management Corporation told Realtor.com®.

Rita Burn, a resident who retired and moved into Crestview Hills in 2017, reported her rent has increased from $825 per month to $1,600. She expressed shock at the prospect of a second increase, stating, "I couldn’t believe it. I mean, I had heard rumors that it was gonna happen and then we got the letter."

Cabrillo Management Corporation also informed tenants about a subsidized rent program and has scheduled a meeting for homeowners to discuss the rent increase, the subsidy program, and other concerns. The company emphasized that Crestview Hills is a "five star community" with amenities like a clubhouse, pool, and fitness center, and that ongoing investment is needed to maintain its quality.

Manufactured homes, commonly known as mobile homes, are built off-site and assembled on-site without a permanent foundation. While once built on chassis with wheels, modern manufactured homes are typically placed permanently within parks like Crestview Hills.

Federal efforts are underway to support the manufactured housing industry. Earlier this year, the Housing for the 21st Century Act was passed, removing the requirement for all manufactured housing to be built on a permanent chassis, which can reduce costs. In early October, the U.S. Department of Housing and Urban Development announced plans to upgrade energy efficiency standards and update design and construction codes to encourage the building of manufactured housing.

However, rental practices for manufactured home spaces remain a concern. San Diego County, where Fallbrook is located, does not have specific rental laws for mobile-home parks and adheres to California's statewide Mobilehome Residency Law (MRL). The MRL states that state law does not regulate the amounts of rent charged in mobilehome parks, and these parks are exempt from statewide rent-control laws like AB 1482, which limits annual rent increases for most California rentals.

The MRL requires management to provide at least a 90-day written notice for any rent increase but offers few other restrictions on rent amounts. Residents like Burn are seeking solutions and exploring options, including contacting local officials and seeking legal advice.