PLEASANTON -- The City Council has approved a new rent stabilization agreement with the owner of an over-55 mobile home park, allowing slight rent increases in a deal that could last seven years.
Three council members voted unanimously Tuesday to OK the deal for Hacienda Mobile Home Park. The deal was hatched after 15 months of negotiations between owner Phillip Hoon and city staff. Councilmembers Jerry Pentin and Karla Brown were absent and did not vote.
The contract allows Hoon to impose yearly rental increases, effective each January, based on Consumer Price Index figures at the time. Annual rent hikes can range from 1.5 percent to a maximum of 5 percent.
This year's hike will be 2 percent, City Attorney Jonathan Lowell said in a presentation to council members. If rent is not increased one year, it cannot be "banked" and applied in future years.
Terms also call for Hoon to spend $65,000 on renovating the park's clubhouse kitchen.
The five-year agreement took effect Tuesday and expires Dec. 31, 2018. Afterward, Hoon can ask the city for two one-year extensions, which could push the life of the deal until the end of 2020, Lowell said.
Hacienda Mobile Home Park, located at 3231 Vineyard Ave., is one of the city's three mobile home parks. It holds 149 spaces, where residents own their homes but rent individual spaces from Hoon.
Hacienda residents voted to ratify the proposed contract in mid-September, when 67 of the 149 households cast a ballot. The deal was approved 60-7.
The park is age-restricted, meaning residents must be at least 55 years old. Most mobile home residents are on fixed incomes or live on lower incomes than most Pleasanton residents, officials said.
That has led officials to continue the city ordinance, first enacted in 1992, that seeks to keep mobile home parks' rents in line with the rate of inflation.
Hoon spoke at the meeting, urging council members to approve the contract, adding that both sides agreed to compromise during negotiations.
"There's a certain point where you have to stop and go forward," Councilwoman Cheryl Cook-Kallio said, noting the lengthy negotiating period. "(If talks continued) I'm not sure that you would get a better deal."
Contact Chris De Benedetti at 510-353-7011. Follow him at Twitter.com/cdebenedetti.