Mesa Dunes Mobile Home Estates v. County of San Luis Obispo CA2/6

CourtCalifornia Court of Appeal
DecidedJanuary 25, 2016
DocketB259229
StatusUnpublished

This text of Mesa Dunes Mobile Home Estates v. County of San Luis Obispo CA2/6 (Mesa Dunes Mobile Home Estates v. County of San Luis Obispo CA2/6) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mesa Dunes Mobile Home Estates v. County of San Luis Obispo CA2/6, (Cal. Ct. App. 2016).

Opinion

Filed 1/25/16 Mesa Dunes Mobile Home Estates v. County of San Luis Obispo CA2/6 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

MESA DUNES MOBILE HOME 2d Civil No. B259229 ESTATES, LLC, (Super. Ct. No. 14CV0219) (San Luis Obispo County) Plaintiff and Appellant,

v.

COUNTY OF SAN LUIS OBISPO et al.,

Defendants and Respondents.

Before a mobilehome park owner may subdivide the property to convert it from rental spaces to resident ownership, it must first "obtain a survey of support of residents . . . for the proposed conversion." (Gov. Code, § 66427.5, subd. (d)(1).)1 At issue here, the survey must be "conducted in accordance with an agreement between the subdivider and [the] resident homeowners' association" (HOA). (Id. subd. (d)(2).) Appellant Mesa Dunes Mobile Home Estates, LLC (Mesa Dunes) believed it had reached such an agreement with the HOA of its mobilehome park (Park). Accordingly, it went ahead and conducted the survey. The San Luis Obispo County Department of Planning and Building (Department) deemed the conversion application incomplete due to insufficient evidence that the resident support survey was conducted

1 All further statutory references are to the Government Code unless otherwise stated. pursuant to the required agreement with the HOA. Respondent San Luis Obispo County Board of Supervisors (Board of Supervisors) affirmed the Department's decision. Mesa Dunes then sought a writ of administrative mandate in the trial court. The trial court denied the petition. We affirm. Although the parties dispute whether substantial evidence supports the Board of Supervisors' decision, the dispositive issue is a mixed question of law and fact: what does the statute mean by "agreement"? We conclude that it requires the HOA's informed consent. As we shall explain, the HOA here "agreed" to a survey only in the sense that it did not object to the informal and inconsequential polling of Park residents that it understood Mesa Dunes to be proposing. It did not "agree" to a process it did not understand would have long term, legally binding consequences. Therefore, substantial evidence supports the Board's decision to reject Mesa Dunes' application as incomplete. We reject Mesa Dunes' remaining arguments concerning augmentation of the record and judicial notice. STATUTORY BACKGROUND Mobilehome park residents typically own their mobilehomes and rent the spaces on which the homes are placed. (Hoffman v. Smithwoods RV Park, LLC (2009) 179 Cal.App.4th 390, 398.) Once placed in a park, mobilehomes are difficult to relocate. (Greening v. Johnson (1997) 53 Cal.App.4th 1223, 1226.) Given the unique nature of mobilehome tenancies, "mobilehome park tenants are particularly vulnerable . . . to rent increases." (People v. Beaumont Inv., Ltd. (2003) 111 Cal.App.4th 102, 109.) Many local governments therefore impose rent control measures on mobilehome parks. (Yee v. City of Escondido, Cal. (1992) 503 U.S. 519, 524.) The Legislature added section 66427.5 to the Subdivision Map Act to encourage "the conversion of a mobilehome park from a rental to a resident ownership basis." (Sequoia Park Associates v. County of Sonoma (2009) 176 Cal.App.4th 1270, 1274.) Section 66427.5 "provides a method by which a mobilehome park owner can convert the park from a community occupied by tenants who rent their plots into a

2 community akin to a condominium association, in which residents own their plots." (218 Properties, LLC v. City of Carson (2014) 226 Cal.App.4th 182, 186 (218 Properties).) Conversion, however, affects rent control. San Luis Obispo County generally limits mobilehome rent increases for existing tenants to 60 percent of the cost- of-living increase. (San Luis Obispo Code, § 25.06.010, subd. (b).) As soon as the park owner sells the first plot, "all residents lose the protection of local rent control regardless of whether the owner sells any more plots." (218 Properties, supra, 226 Cal.App.4th at p. 186.) Lower income residents who choose not to purchase their plots are protected from excessive rent increases.2 (§ 66427.5, subd. (f)(2).) For all other residents, rent control ends altogether as market rates are phased in over a four-year period. (§ 66427.5, subd. (f)(1).) Historically, residents initiated the conversion process themselves, often with the help of a nonprofit organization that would buy the entire park and sell lots to individual owners. (Sen. Rules Com., Off. of Sen. Floor Analyses, 3d reading analysis of Sen. Bill No. 510 (2013-2014 Reg. Sess.) as amended Aug. 19, 2013, p. 3.) "Because a mobilehome park owner [could] escape local rent control by selling just one plot," however, "unscrupulous park owner[s] [were able to] abuse the conversion process by pursuing a 'sham' conversion without intending to convert the park into a wholly resident- owned community." (218 Properties, supra, 226 Cal.App.4th at p. 186.) To prevent sham conversions, the Legislature in 2002 added the requirement of a survey of resident support. "It [was] . . . the intent of the Legislature in enacting this act to ensure that conversions pursuant to Section 66427.5 of the Government Code are bona fide resident conversions." (Stats. 2002, ch. 1143, § 2.) It is one of several steps a mobilehome park owner must take to "avoid economic

2 Monthly rents for lower income residents may not increase by more than "the average monthly increase in rent in the four years immediately preceding the conversion" or "the average monthly percentage increase in the Consumer Price Index for the most recently reported period," whichever is lower. (§ 66427.5, subd. (f)(2).)

3 displacement of all nonpurchasing residents" (§ 66427.5) before the appropriate local agency can approve its conversion application. The survey must be conducted by written ballot (§ 66427.5, subd. (d)(3)) pursuant to an agreement with an independent HOA, if any (id. subd. (d)(2)), with each occupied mobilehome space receiving one vote (id. subd. (d)(4)). The park owner submits the survey results with its subdivision application, and the local agency "consider[s]" them at a hearing to determine compliance with section 66427.5. (Id. subds. (d)(5), (e).) A 2014 amendment to the statute clarifies that "the agency may disapprove the [application] if it finds that the results of the survey have not demonstrated the support of at least a majority of the park's homeowners."3 (Id. subd. (d)(5).) In addition, "[l]ocal legislative bodies may, by ordinance or resolution, implement the requirements of [the resident support survey]." (Id. subd. (d)(6).) FACTS AND PROCEDURAL HISTORY The Park is a manufactured housing community located in an unincorporated area of San Luis Obispo County near Arroyo Grande. Most of its 299 occupied spaces are rented through long-term agreements, while 36 are subject to rent controlled month-to-month agreements. Park residents have an HOA governed by a nine-member Board of Directors (HOA Board). Mesa Dunes informed Park residents by letter that it "plan[ed] to subdivide the Park" in order "to convert the park to a resident owned community." It explained that "[t]he process of converting a mobilehome park to resident ownership is controlled by

3 The 2014 amendment "is instructive on what the Legislature may have envisioned all along about the survey's proper use." (218 Properties, supra, 226 Cal.App.4th at p.

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Mesa Dunes Mobile Home Estates v. County of San Luis Obispo CA2/6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mesa-dunes-mobile-home-estates-v-county-of-san-luis-obispo-ca26-calctapp-2016.