Carson board approves capital-improvement rent increase for Carson Gardens Trailer Lodge

The City of Carson Mobile Home Park Rental Review Board on July 9 approved a capital improvement rent increase for Carson Gardens Trailer Lodge that will recover $240,420 in claimed capital expenses by amortizing the cost over 15 years and offering a one-time principal-only buyout option for residents.

Staff recommended the board grant a capital improvement rent increase that would amount to $23.22 per space per month (a 4.21% to 4.55% increase) amortized over 15 years for all 97 rent-controlled spaces. Staff said the total claimed expenses included $213,760 for street replacement and $12,205 for replacement of two concrete flow lines, and that staff had included the city's $14,455 application fee in its calculations to arrive at a $240,420 total.

Staff adviser Dominique Clark told the board that the applicant's submitted calculation excluded interest and the application fee, and that staff applied the ordinance's required interest rate of 7.67% when preparing the board recommendation. Clark also described the board's standard practice to offer residents a one-time principal-only payment option; staff calculated that option at $2,478.58 per space (total $240,420 divided by 97 spaces), payable prior to the expiration of the 90-day notice period required under California mobile home residency law.

At the hearing, several residents testified about notification and impacts. Resident Francis Sabato said he and other residents were surprised by the work and concerned about affordability, saying, "I oppose it with the increase," and describing delays and disruption when the paving was done. Another resident said he had a contract with a 3% annual increase and questioned whether the capital-improvement charge applied to him, but the board clarified it could not resolve individual lease disputes during the hearing.

Applicant representatives described the bidding process and the work. Regional manager Mike Manderfield said the owner solicited two or three bids and selected Bostick because it submitted the lowest bid and had a long working relationship: "Bostick ... was the best price around. I've done business with them for over 30 years, and that's kinda how we chose them, and they did a magnificent job on the property."

Board members asked about notification to residents, whether driveways were included, and why certain concrete areas had been repaired earlier. The applicant's representative said management and the vendor provided maps and notices to residents and that some work (driveways) is selected year to year based on condition. Staff confirmed the park owner had submitted the capital-improvement application on March 20 and that the application was deemed substantially complete April 29; staff also noted the hearing occurred 71 days after that completeness determination, which exceeds the 60-day limit in the ordinance but explained the statutory remedy (a temporary fair-return increase) did not apply to capital-improvement applications.

After deliberation the board moved to accept staff's recommendation and also added the one-time principal-only payment option. During the motion the one-time amount was stated on the record; staff earlier calculated $2,478.58 per space. The board adopted the motion and also adopted Resolution No. 2025-376 by roll call vote: Board member Valdez voted no; Board members King, Gonzales, Forbath, Zetowski, Clark Harris and Hayes voted yes. The motion passed.

Under state and local rules referenced during the hearing, the approved increase may not be charged or collected until the required 90-day written notice has been given to residents by the park owner or management. Staff noted the park owner did not include interest in its initial calculation and that staff had applied the ordinance's interest rate and included the city application fee in the finalized figures.

The board's approval resolves the capital-improvement application for Carson Gardens Trailer Lodge for the items presented at the hearing (streets and two flow-line repairs) and includes the administrative direction that the onetime payment option be available to residents who choose it. The board did not rule on or resolve any individual lease or contract disputes raised by residents; those were identified as beyond the board's purview in this proceeding.

Board members and staff noted a remaining operational concern: one central concrete drainage area had visible damage and could affect the new asphalt; the board asked that the park owner consider that area in future budgeting to avoid charging residents again in a short period.

The board closed the public hearing and moved to new business. No other applications were pending at the meeting.