For several years, owners of the Paradise Cove Mobilehome Park, its tenants and the City of Malibu have been embroiled in lawsuits over rent control issues.
The Kissel Co., which owns the mobile home park, has challenged the correctness of the city’s application of its park rent stabilization ordinance No. 48U, denying Kissel a rent increase. Other issues involved sewage spills and coach owners’ responsibilities for maintaining the mobile home park.
But on April 25, a settlement agreement between the city and Kissel Co. was approved by a majority of the mobile home owners and by a unanimous vote of the City Council.
In the agreement, Kissel agreed to use some portion of increased rents to upgrade the common area amenities and facilities of the park. These will include a replacement or upgrade of the wastewater collection.
The rent structure for the Paradise Cove Mobilehome Park has recently been appraised and, based on the agreement, each space has a different value. The lowest space rent costs $321 per month and the highest $1,331. Every time a home is sold, the space rental fee will rise 15 percent for the next owner.
The impact of the rent increases on individual homeowners is not yet known, but it is thought that some low-income homeowners could be impacted negatively.
Kissel also agreed to release and discharge the tenants from all claims and causes of action for back rents, with respect to any time before the effective date of the agreement. Tenants agreed they would not hold Kissel responsible for refunds relating to overpaid rents prior to the agreement.
A group of mobile home owners came to hear the council’s decision, voicing their by-and-large favorable opinion of the settlement.
However, a minority of the 271 Paradise Cove HOA members was not quite as thrilled, with 104 voting in favor and 40 against the settlement agreement.
Frans Bigelow, treasurer for the Paradise Cove HOA, said: “My concerns all along have always been that things should not be verbally agreed upon, but stating everything in writing so that the benefits are in fact realistic.”
Although the council and the city attorney have said they would look at the matters in detail, Bigelow, a developer who has lived in Paradise Cove for just over a year, said: “Some items were negotiated last minute and most board members never saw them in writing before the vote occurred.
“My biggest concern is I don’t believe it should take three years to have a plan and permit to run a septic system,” explained Bigelow, who deals with the same agencies in his line of work.
“It’s an urgent health issue that should not be dealt with lightly,” said Bigelow, as he spoke about the raw sewage allegedly running in the streets of his neighborhood.
But, overall, Bigelow said he does not object to the settlement agreement and the possible rent increases if the community receives the services they have been promised.
Bigelow also wants to ensure that back rents would not be charged after the agreement was signed.
At the quarterly meeting, homeowners expressed their feelings about the discontentment that has existed in their neighborhood over the years because of the pending lawsuits, and about hope for change.
“The silent majority finally let their voices be heard and they approved of the agreement,” she one homeowner.
Another resident said: “I would describe my six years of residency as difficult, neighbor pitted against neighbor, and residents pitted against the landowner, an atmosphere that was stirred by a minority of residents who may not even be there any more.”
“Just think how the lawyers are going be so angry that they don’t get all that money,” joked a resident.
“Let’s not go there,” joked Mayor Pro Tem Jeff Jennings, who is an attorney.