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HCD seeks authority to tie mobile‑home fees to CPI; residents and analysts warn rounding could hit vulnerable homeowners
Summary
Housing and Community Development told the committee it needs authority to adjust statutory and regulatory fees by CPI beginning 07/01/2026 to address a projected codes and standards special‑fund deficit; HCD estimated an average recurring park‑owner increase of about $217.50/year and homeowner impact of roughly $1.50–$2.50/year, but the LAO and many public commenters opposed a rounding provision that could raise small fees by whole‑dollar steps and disproportionately affect low‑income mobile‑home residents.
Housing and Community Development's codes and standards division asked the subcommittee for trailer‑bill authority to increase certain statutory and regulatory fees annually by the Consumer Price Index (CPI), beginning 07/01/2026, to close a projected special‑fund deficit. Kyle Krause, deputy director of the division, said many statutory fees have not been updated for decades and the division enforces health and safety standards for more than 4,300 mobile‑home parks and monitors tens of thousands of manufactured homes.
Matt Schuler (HCD COO) told the committee the division projects an average recurring gap of roughly $6 million per year between revenue and expenditures and that, without changes, reserves would be drawn down and service levels reduced. HCD proposed CPI adjustments for most fees and a rounding provision for very small statutory fees (increase to the next whole dollar) so fractional cents would not be required to be collected.
The LAO and numerous senators raised alarms about the rounding approach. The LAO noted that rounding a $4 park maintenance fee to $5 would be a 25% jump and cautioned the cumulative effect across dozens of fees could be substantial for park owners and, ultimately, mobile‑home residents. Department of Finance concurred that the division provides essential services and said a one‑time catch‑up approach was an alternative but the administration opted for a phased CPI approach to avoid a large single‑year hike.
Mobile‑home residents and advocates gave extended public comment opposing the trailer language, saying seniors and people on fixed incomes cannot absorb automatic, rounded‑up increases. Several residents testified that even a few dollars a month can make the difference for people living on modest incomes. HCD said the estimated first‑year per‑park increase is about $217.50 and homeowner impact would be about $1.50–$2.50 per year for an average‑size park; HCD also said statutory limits restrict passing through no more than half of the park maintenance fee to homeowners, but other pass‑throughs remain legally possible.
The committee asked HCD and DOF for more granular fund‑condition data, a clearer breakdown of recurring versus one‑time fees, an assessment of alternatives (including a one‑time catch‑up), and proposals for guardrails limiting pass‑throughs to residents. The item was held open.
