The Need

A MONOPOLY

Is there a free market economy in the case of mobilehome park space rents? Yes/No/Maybe

The correct answer is No. A free market economy assumes there is freedom of supply and demand. But within our economy there is widespread government regulation of economic relationships where this assumption does not apply.

In the case of mobilehome park space rentals, a type of monopoly exists due to the high costs of moving mobilehomes and the virtual absence of vacant mobilehome spaces in urban areas. As a result, when a rent increase is noticed a homeowner is faced with the alternative of either (1) paying the increase; (2) incurring a high cost to move the home; or (3) simply selling or abandoning the home. Due to cost and unavailability the homeowner can rarely move the home to another space within the same area. As courts have come to recognize, the term "mobilehome" is really a misnomer, since mobilehomes are not really "mobile" at all.

ECONOMIC SERVITUDE

Do park owners have an overriding economic advantage over tenants? Yes/No/Maybe

The correct answer is Yes. The Florida Supreme Court characterized this relationship as a type of "economic servitude," stating that:

"If mobile home park owners are allowed unregulated and uncontrolled power to evict mobile home tenants, a form of economic servitude ensues rendering tenants subject to oppressive treatment in their relations with park owners and the latters' overriding economic advantage over tenants." (1)

NEED OF UNIQUE PROTECTION

Does California law recognize the unique nature of mobilehome ownership? Yes/No/Maybe

The correct answer is Yes. The California Mobilehome Residency Law contains a specific reference to the unique nature of mobilehome ownership, and the need for extension of unique protection of mobilehome owners:

"Because of the high cost of moving mobilehomes, the potential damage resulting therefrom, the requirements relating to the installation of mobilehomes, and the cost of landscaping or lot preparation, it is necessary that the owners of mobilehomes … be provided with the unique protection from actual or constructive eviction." (2)

REFERENCES
1. Stewart v. Green (Fla. 1974) 300 So.2d 889, 892.
2. California Civil Code sec. 798.55(a).

Source: The GSMOL Mobilehome Rent Stabilization Ordinance Handbook, Second Edition: Guidelines for Drafting and Enacting a Mobilehome Rent Stabilization Ordinance.

Prepared by: Bruce Stanton, Esq., Corporate Counsel
Images courtesy of cooldesign and Stuart Miles at freedigitalphotos.net.