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under rental rate increases, and on page 4 on non-lower income residents and lower-income residents, describing how rents are calculated. Chair Pearce stated that under Environmental Assessment of the staff report, it states that conversion of a rental mobile home park to a residential subdivision, cooperative, or condominium for mobile homes is exempt from CEQA. She inquired if this was still applicable if the property were not zoned residential. Mr. Dolan replied that from a planner’s perspective, CEQA is intended to evaluate the impacts of physical changes on the environment. He noted that because the conversion will not change the environment, that there will be nothing to evaluate on the environment. He added that the limitation that the legislature has imposed on local agencies would suggest that CEQA should not apply in these situations. THE PUBLIC HEARING WAS OPENED. Richard Close, Gilchrist & Rutter, stated that the application is governed by State law, enacted in the 1980’s at the request of residents. He explained that residents would like to own land in the mobile home park, but the legislature realized it was difficult for them to get financing to purchase the entire park. He continued that In the 1980’s, the legislature set up a system to encourage park owners to subdivide their parks and make them available to residents for purchase with pro rata ownership interest in the common areas.He added that the legislature also stated that those residents who do not want to buy can live in the park for as long as they wish. Mr. Close stated that the legislature also set up rules regarding rental rates in the park in that rents cannot go above the CPI for low-income residents. He continued that for non-low-income residents, State law provides that rent would go to market rate over a four-year period. He noted that low income for a family of two is $53,000 annually, and for a family of four, it would be $56,250. Mr. Close stated that the purpose of the conversion is to create affordable for-purchase housing. He noted that the rules are very specific and added that it could be frustrating because this is a subdivision but not a regular one. He indicated that to encourage park owners to convert, the legislature indicated that as long as the rules that have been set forth are complied with, the City must approve the conversion. With respect to whether or not a resident who continues to rent would have to pay homeowner association (HOA) dues, Mr. Close said the answer is no. He explained that if a resident continued to stay in the park as a renter, he or she would pay rent to the owner, who would pay the dues to the HOA, much like in a condominium association. He added that over time, tenants will eventually control the operation of the park. PLANNING COMMISSION MINUTES, February 25, 2009 Page 14 of 29