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BACKGROUND The Hacienda Mobilehome Park (HMP) is a 149 space mobilehome park located at 3231 Vineyard Avenue. HMP is one of two "senior" mobilehome parks in the City (the other is the 200 space Vineyard Mobile Villa located adjacent to the HMP). Residents own their mobilehomes and rent space from the park owner; in addition, residents typically pay for their own utilities (gas, electricity, water, cable tv, etc.). The park is a senior park in that at least one of the residents must be at least 55, although many of the residents are in fact older than that. The term mobilehome is also somewhat of a misnomer in that the dwelling units that occupy the spaces within the park are far from mobile; the current word in vogue is manufactured housing. HMP was owned and developed in the 1970's by Richard McDonnell; Mr. McDonnell sold the park in 1999 to Phillip Hoon and Ken Waterhouse. Mr. Hoon and Mr. Waterhouse ended their business relationship and now the park is owned solely by Mr. Hoon. Since 1988, space rents in HMP have been subject to a rent stabilization agreement between the various park owners and the City, the most recent of which was entered into in December 2001. Since 2006, City staff has been in discussions with Mr. Hoon and with a resident committee concerning terms and conditions for a new agreement. To date, City staff is not prepared to recommend to the City Council that a new agreement for this park be approved, although discussions are continuing and, in staff's opinion, progressing. If a new agreement is not reached, then the City's Rent Stabilization Ordinance-which largely tracks many of the provisions of the existing agreement-would apply to the rents and other aspects of the park. Currently, the base rents at the HMP range from $583.50 to $856.50, depending on when the resident moved to the park. Household income, while a factor in the owner's decision to rent space, is not a factor for determining the space rent. As mentioned, residents also pay utilities in addition to the base rent. While not an apples to apples comparison, rents at Ridgeview Commons range from $300 to $800 for one bedroom units and from $350 to $950 for two bedroom units based on household income. Also, under the City's below market rent program, the maximum monthly rent for households with 50% of the median income ($29,00 to $33,000 is 50% of the median income) is $830 for a one bedroom unit and $1038 for a two bedroom unit. By way of comparison, market rate one bedroom units at Ponderosa's senior apartment project on Ironwood Drive, which are not subject to household income restrictions, range from $1150 for one bedroom units to $1300 for two bedroom units. At the HMP, maintenance issues are addressed in two ways. The 2001 Agreement between the City and the park owner provides that the then existing amenities and service levels are not to be reduced without first meeting and conferring with the residents. In addition, certain Maintenance Standards were attached as an exhibit to the Agreement. (A copy of those Maintenance Standards are attached to this report as Exhibit 1.) These Standards address more particularly matters concerning maintenance of the Clubhouse and related facilities (there is a community Clubhouse with a meeting Page 2 of 4