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The owner of a controversial mobile home park is suing the city of Fresno for $1 million, alleging that rent control has cost the company money and diminished the park’s value.
The lawsuit from La Hacienda Mobile Estates says Fresno’s Mobile Home Park Rent Review and Stabilization Commission’s November 2023 decision to only allow a minimum rent increase has prevented the park from being profitable.
“The Commission approved only the minimum annual Consumer Price Index adjustment allowed under the ordinance of 6.6% — amounting to just $24.92 per month and far short of what would be required for La Hacienda to break even,” the lawsuit...
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Now this is an interesting article. A rent control board member is accused of deliberately keeping the mobile home park rent increase low in order to try to buy the park themselves at a reduced price. I hope the park owner wins and that puts the fear of God into every other rent control board member out there that they may actually have personal liability from their decisions. It reminds me of the zoning case in Dallas in the 1980s in which a real estate speculator went to the Dallas City Council to renovate an abandoned K-Mart into a movie theater. The neighbors hated the idea and got to the board members and convinced them to vote against it. The property owner reminded the board members that the property already had the zoning for a movie theater and they had no option other than to approve the plans. Nevertheless, the board voted it down. So the developer filed a personal lawsuit on each and every member of the board that voted “no” and within two days they had an emergency meeting and approved the theater.
Amazing how a little personal accountability takes the fun out of things, right?