Wednesday, February 17, 2016

The Hybrid (Modesto) Model



An option to the conventional RSO was chosen by the City of Modesto in 2006, which is essentially a hybrid between a model Long-Term Lease Agreement and an RSO.  Unwilling to commit itself to full rent control, the City instead passed an ordinance that would only apply to those parks which did not offer a City-approved lease that was negotiated by a team of park owner and homeowner representatives and supervised by the City Attorney.  A Memorandum of Understanding (MOU) was enacted to reflect these terms, and an ongoing rent commission established to field questions and investigate any ongoing enforcement issues.

The reader is encouraged to go to the City of Modesto website to obtain copies of these provisions, which should be at least considered when dealing with a conservative jurisdiction which is hostile to the concept of rent regulation.  Essentially three documents are required:

  1. An Ordinance
  2. An approved Long-Term Lease
  3. A Memorandum of Understanding (MOU) which is signed by each Park Owner who agrees to be bound.

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

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