Gilroy
– Councilmen
”
handcuffed
”
by state law have grudgingly approved the sale of land in a 10th
Street mobile home park.
Gilroy – Councilmen “handcuffed” by state law have grudgingly approved the sale of land in a 10th Street mobile home park.
Numerous residents of Pacific Mobile Estates, at 500 W. 10th St., have complained about the lack of information surrounding efforts to sell them the land under their homes. On Monday, city council learned it is powerless to help residents with their main gripe – the failure of owner Don Jurow to provide land valuations prior to city approval of a so-called tentative map, which legally subdivides the property and allows the sale of individual parcels.
“It turns out that, as strange as it seems, it isn’t really a requirement of the tentative map that they disclose that purchase price,” City Attorney Linda Callon said, warning later in the meeting that the city would be inviting a lawsuit if it rejects the application on such grounds.
A city can only deny mobile home park conversions if the application grossly conflicts with its general plan or if the applicant fails to follow regulatory procedures. A pair of bills winding through the state capital would give cities greater control over mobile-home park conversions, but Callon said Gilroy could only apply the laws – if they are approved – to future applications.
“Right now, the council is pretty much handcuffed to pretty much dotting the I’s and crossing the T’s,” Councilman Russ Valiquette said. “There’s something that’s just not right about that.”
Councilman Dion Bracco shared the frustration.
“I’m all for property rights,” he said. “I just have a sneaky feeling about this. Even if it’s just to send a message, I don’t support it.”
Councilman Craig Gartman joined Bracco and Valiquette in opposing the conversion. Their “symbolic” votes came up short in a 4-3 approval.
“In the final analysis, our hands seem to be tied and I do not feel we should put our city at risk, said Councilman Roland Velasco.
The council decision will increase demand for the homes and give many owners a first shot at the American Dream, said Richard Close, an attorney representing Jurow.
“When people are buying homes, they do want to own the land,” he said. “I think it was a victory last night for the residents and the park owner.”
He said Jurow refused to provide land valuations earlier in the process because the appraisal locks in home prices – an unwise move in the face of fluctuating home prices.
“We weren’t sure until last night,” Close said, “whether the process was going to move forward last night or, as a result of litigation, in a couple of years.”
With the approval in hand, Jurow plans to complete land appraisals within 60 days and shortly thereafter seek final sign-off from the California Department of Real Estate. The agency typically issues a decision within six months of the application. Once DRE approves the conversion, residents will have 90 days to purchase their lots at the forthcoming appraisal price.
A few dozen residents of Pacific Mobile Estates turned out for the final decision Monday, though far fewer than the 100-plus residents who showed up at an April meeting. Council postponed a final vote last month to investigate if Jurow had properly followed state rules governing the conversion process.
“One of the things that got me excited is the opportunity to buy the land,” said Tony Mannino, a resident supporting the conversion who showed up Monday night. “We don’t want to pay rent any more. We want an opportunity to have an asset that will grow.”
The conversion, he added, will give residents greater say in the park’s maintenance through the formation of a homeowners association. Jurow is not forcing residents to buy their land, and those who choose to continue renting will not have to pay homeowner’s fees.
But that is little consolation for residents like Richard Janisch. The 75-year-old retiree is not protected from rent spikes under state law, unlike 80 percent of park residents who are classified as low income. The conversion allows Jurow, in the course of four years, to raise monthly rent to market rate on Janisch and other “moderate” income earners who now benefit from rent control. Janisch worries his $600 monthly rent could double or triple in a handful of years.
“Looks like we’re down to the haves and have-nots,” Janisch told council Monday night. “If anyone thinks (the owner) spent all this time and all this money to make things better for residents, then I have a bridge to sell.”
