News and Analysis
San Rafael R.V. Park moves to evict tenants in wake of Ninth Circuit Court decision
Nearly all residents of the R.V. Park of San Rafael, in California, received eviction notices in early February after the property owner, K&M Family Trust, lost a rent battle in the 9th U.S. Circuit Court of Appeals.
Donna L. Chessen, trustee of the K&M Family Trust, argued that the City of San Rafael misapplied its Mobilehome Rent Stabilization Ordinance (“MRSO”) to her property, the R.V. Park of San Rafael, representing an illegal “taking.” A three-judge panel of the Ninth Circuit disagreed.
The court ruled that San Rafael’s MRSO ordinance had been on the books since 1991—fifteen years prior to Chessen’s purchase of the property.
The ruling is the culmination of legal processes that began when the City of San Rafael sued K&M Family Trust and its property manager, Harmony Communities, in 2021 for imposing rent increases in excess of the MRSO limits. In their affirmative defense, the RV park owner and management firm contended that as an RV park, the facility was not subject to the city’s MRSO; however, the circuit court pointed out that an earlier decision in California state court declared that the R.V. Park of San Rafael is subject to the city’s rent control ordinance. The park hosts a mix of older established mobile- and manufactured homes and recreational vehicles.
Immediately in the wake of the court ruling, residents reported receiving eviction notices that were served on tenants of the park. The eviction notice states that tenants have until Oct. 31, 2023, to vacate and remove their homes from the property (emphasis supplied), or be sued.
Alexander Vernimmen, 70, an 18-year resident of the park, was widely quoted in the local Marin County media. “Where can I go? How can I afford to move?” Vernimmen lives in a mobile home with his 96-year-old mother. The family’s only income is Social Security.
“They are preying on old disabled people and poor families with kids,” Vernimmen said.
The dispute dates back to 2021, when tenants received notice of rent increases that would raise the average monthly rent to $650. Residents complained to the city and officials declared that the increase was in violation of the city’s mobile home rent stabilization ordinance, which was implemented to ensure affordable housing.
The park management group stated that there were only recreational vehicles there and that they were exempt from a city rent control ordinance covering mobile or manufactured homes. The city disagreed, and even a cursory look at the dwellings there is enough to see the mix of mobile homes and RVs.
Under California state code, if an RV is used as a residence for nine or more continuous months at the same site, it is deemed a mobile home.
Harmony communities wrote that “the park has been operating at a loss for several years and has been fighting to keep this park open so no resident will have to move. The reality is the land is worth much more than operating an RV Park for affordable housing.”
According to a Marin County property tax report, the 1.26-acre park was built in 1952. The property is owned by K&M Family 1997 Trust, administered and controlled by Donna L. Chessen. The current assessed value of the property is listed at $2.92 million.
According to Genevieve Coyle, San Rafael’s assistant city attorney, the city agrees with the 9th Circuit Court ruling, and filed its action in Marin County Superior Court to enforce the city’s ordinance.
“We are aware of the eviction notices and are reviewing them,” Coyle said.
Harmony Communities has built a business around buying low-income RV and mobile home parks and raising rents in other California locations like San Leandro, which has no rent control ordinance. The company’s objective in these acquisitions is to bring the rent revenue up to market value. In 2020, residents of the Shady Lakes Mobile Home Park in Fresno filed a lawsuit against Harmony Communities alleging the company unfairly hiked rents and harassed tenants. They are still facing rent hikes amounting to close to 100 percent.
Harmony Communities recently acquired affordable housing communities in low-income areas in California, such as Gilroy, and in 2022, another in Golden, Colorado.
The schism between what may be considered affordable rents in the low-income parks and the rapidly escalating property values in many communities across the nation creates intense pressure and conflict among property owners, local and state governments, and park residents living on low fixed incomes. At the same time, as RVtravel.com has previously reported, eviction of low-income tenants often results in homelessness for those people whose only residential choice may be the RV or mobile home in which they live.
Note: I received a call from Donna Chessen on Friday, March 3, 2023. She stated that she has sold the RV Park of San Rafael to the management company, Harmony Communities, Inc. and that she did not consent to the lawsuit currently bearing her name (Chessen v City of San Rafael) and that she is in receipt of a letter from Harmony agreeing to petition the court to remove Ms. Chessen’s name from the proceedings. RB
##RVT1093b
Who knew there were so many cold hearted people in rving.
crime license to do business in the City. The
City would also threaten to take the property
unless they play nice… In addition if the city
has to go to court the property owners would
be barred from doing business anywhere
in the state.
Capitalism has it’s place, working well most of the time… until it doesn’t. After the Great Depression and despair for the masses, rather than persisting with the hands-off free market approach of Libertarians, the US government realized economic balance required fair social programs.
70 years later with the credit default swap fiasco that lead to the Great Recession, perhaps the government got a bit smarter by shelling out money… even if it did go to the big bank$.
Today, on one hand we are living with educational and economic inequities along with class and geo/political divisions that continue to wedge disparities between “free world” citizens. On the other hand, reflecting back on the last 50 years it appears Napoleon Bonaparte’s prophecy “Let China Sleep, for when she wakes, she will shake the world” is becoming fulfilled.
Will free world governments eventually follow benevolent Scandinavians, or prepare for more nationalization like Central/South America?
Capitalism is the only system that has ever worked successfully but it has required a few guardrails to keep the predatory class at bay, or somewhat at bay.
The little frenchman was as prophetic on China as Thatcher was on Socialism. “Solcialism is great until you run out of other people’s money to spend”
Hehe – you are wise beyond your years, all while still maintaining a keen sense of humor… good on ya! And on the odd days I tend to side with you that folks challenged to keep up with the standard of living in one of the wealthiest counties in the USA (Marin, CA) need to realize the world isn’t forever obligated to support their former standard of living. Just don’t tax you and don’t tax me, tax that man behind the tree! (unless it’s moi who is stalking…)
Cheers. Equal opportunity to succeed means an equal opportunity to fail. Without risk of failure, success would be meaningless.
I’m just a little bored of the victim class. I guess it comes through. Even Megan and Harry play the victim, from private jets and a 25 million dollar mansion in Malibu. Again, cheers 🍻.
How are they losing money there’s no maintenance.
I imagine the property tax on 2.9 mil will cost them something. What about sewer , sanitation and water. Most RV parks supply electricity so doubtful there are no expenses.
No winners when the government gets involved in the free market.
It probably should be noted that this is more accurately a mobile home park (subject to rent control) rather than an recreational park (not subject to rent control). There is a long history here and at other mobile home parks that led to rent control. It’s also not a place where homeless camp.
There are signs outside the property that rvs are not allowed — there are rv facilities a short distance away.
I live in the county and have no sympathy for people who write about ******fornia,
SMH. I still go back to “Ready Player One”. If you want more income per square foot, go up. Of course, this is tongue in cheek. There is no easy solution. The forced migration of the unwanted has been happening since the beginning of time. It is both noble and naive to realize that improved individual circumstances would eradicate the problem. In a caste system, the less fortunate are here to stay.
What forced migration are you talking about? I agree that there is no easy solution but so far the solution they are trying is to steal from someone and give to someone else. Soon they will come for private restaurants and force them to feed “the less fortunate” for capped maximum price. Then the transportation industry to drive the “less fortunate” around in an UBER at a capped maximum price. Where will it end?
The” less fortunate”. A solution exists without infringing upon the free market. It is a tough pill for some but it is easy. MOVE SOMEWHERE YOU CAN AFFFORD TO LIVE.
Again, What forced migration are you talking about?
And where would you suggest they move to? What a callus & disgusting view you have.
Ummmm, Alabama, Mississippi, Arkansas, either Panhandle, New Mexico. Just to name a few. All places easily affordable on SS. Sorry you have to leave your beloved California but oh well, if you can’t afford it, Tennessee is beautiful.
Get a grip …. Equity is for losers. Make better choices early so your covered later. Don’t run your car out of gas before finding station.
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Just move to a place you can afford. What a great idea. Thus the forced migration you are questioning?
Pay the rent or move… that’s not forced… make your choice from either if those 2.
I’d like to live in Malibu, and especially if someone else was subsidizing it. I don’t try to tho because I made a different choice.
Not everyone ends up on the bottom made bad choices sometime crap just happens. Illness, natural disasters can wipeout years of frugal living
Just as callous and disgusting as a lion killing it’s prey. Capitalism works because it’s essentially the rule of nature not because it’s altruistic.
Humans are greedy by nature. Capitalism works. If they can’t raise the rent they sell the land. Can’t fight nature.
Exactly my agreed thoughts. Play the game!!!! Clean the land at a cost, then resale. We all are having to rethink our situation without wealth
If the owners are carrying the load of cost, it only makes sense if there are not any profits to be made
Artificial price fixing on private enterprise is not going to work. If San Rafael wants the “RV Park” to stay open to support low income individuals they have two choices…buy it and manage it or provide subsidies to make up the difference to market rates.
Singapore is an interesting comparison. Very high land values like coastal Cali with wages similar to the US. They have invested heavily in subsidized housing. Almost 79% of Singaporeans live in public housing at some level of subsidy. When you drive by it looks no different…clean, no graffiti. I’d walk through at night with no concerns there.
Last counts I could find on homelessness vs population: Singapore pop 5.5M-1000 homeless/in temp shelters. NYC pop 8.5M-80,000 homeless. SF pop 815,000-7800 homeless. LA pop 3.9M-69000 homeless.
Of course Singapore also wages a real war on illegal drugs and it’s a different culture.
Rent control is a sure way to create slums. While the rents are stable, the costs for the owner are not. I’m sure the property taxes alone have risen at a higher percent than the rent control law allows on rents. Once you no longer make a profit there is no money for maintenance, improvements or other amenities.
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Yep.
Agree with Orlan..
Honestly, RV parks should not double as homeless camps. There should be separate, preferably government run or at least government monitored, facilities for that. Nobody in their right mind wants real “trailer trash” living in trashy trailers in the same place they and their families go to have a vacation. Too many of them have mental issues and/or substance abuse problems which make having them around potentially dangerous, especially for children.
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I have NO sympathy for anyone living in the state of *****fornia. The best thing you can do is leave.
Agreed. There are plenty of other places in the country to live where your national social security payment can have better value. Unfortunately, IMO, most folks will see themselves in poverty because of local emotional connections, rather than having some normalcy of life elsewhere.
What you are not taking into account is people who have lived in California their whole lives. So at 60, I should leave the state I was born in? Isn’t this about corporations taking over real estate in America?
Mia, no disrespect intended here and not a person that reads RVT is without compassion or empathy. No idea if you are using your circumstance as a hypothetical or if you are actually contemplating moving.
It is a choice and it is your choice. If you can survive where you currently live, great. If not, pick a new place, your choice of new place. If you need to work a 2nd or 3rd or 4th job to live where currently live, your choice. If living where you currently live requires you to work 16 hours per day and it is worth it to you, stay, your choice. If you have to choose between food and medication in order to live where you live, your choice, pick one. Asking others to subsidize another choice is not a choice. It is Welfare through government’s extortion of an industry.
“no disrespect intended here and not a person that reads RVT is without compassion or empathy”
Well, that is obviously a lie.
Maybe your correct. Possibly I was giving RVT readers too much credit, possibly not. Another choice in a lifetime of making choices.
Amen to that.
Speaking of choice, we need to remember that some folks can’t afford to move. Especially if they’re older or not healthy enough to do it themselves. Moving to a more friendly state involves researching the options, securing a vehicle or moving truck or moving company–or if not, being able to walk away and buy new household supplies and furniture at their next location. Travel costs is an issue. There are many obstacles to just moving, at least for a lot of the unfortunate folks we’re talking about here.
Jake, that means they already made the choice and are now running out of gas before getting to the destination.
Yes, you are correct. However, having the government set an acceptable rent is still “taking”, in many situations. Another “however” is, apparently the rent controls were in-place when the current landowner purchased the land. Therefore, no sympathy for the current landowner being saddled with rent controls.
If a governmental entity wants to keep current residents in their homes, then the government should buy the property at current values, and not force landowners who had not previously been subject to rent controls to be saddled with what the governmental entity determines is a “fair” rent. That sentiment, however, does not pertain to the situation in the article, as rent control was a pre-existing condition when the park was purchased. Be very careful when buying property with plans to change the use of the land.
Bingo!!! 💯. Life can be tough whether your the bug or the windshield. Buyer beware. The only predator in the game is the government.
Seems the choice to buy a property that is rent controled and thinking you will just raise the rent anyway is the wrong choice. They had the choice to buy other properties and bought this one. It was thier choice to buy rent controled. Guess they didn’t think it thru
Exactly correct. Thank you for making my point. They made the mistake. Bad choice. Poor execution of due diligence.
So by this logic if I have owned the “park” for decades & I decide its time to sell & retire, the government should be able to downgrade the value of my property, even to the point of making it worthless to a buyer. Now if that was to happen to your home investment would you still think it’s OK? Maybe pass a law that sets the increase in value & caps what you can sell for well under what others have sold for because it helps affordable housing?
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Can’t fix stupid. Equity is for the losers.
Calling people locusts. How very Christian of you.
Another hateful person heard from.
Sneaky, Cancelproof. 😆 Would have noticed sooner but was out talking with my son, who is trying to figure out what’s wrong with my car. 😯 Have a good evening/night. 😀 –Big Sister
I was just dropped off from that alien abduction. What did I miss?
Good luck with the car. 👍🤪
Thanks, Cancelproof. I’m not sure what you missed. But it turns out I need a new radiator, well, my ’97 T-bird does. Plus, my glasses broke today. Oh, joy. Other than those minor issues, all’s well here. Take care. 😀 –Diane
This reminds me of a story in American history about how the settlers came and pushed the native American people out of their lands. Or a more basic story, the haves and have not’s.
Or the Romans the Brits, or the French the Vietnamese, or the British the Zulus or the Spanish the Mayans or what’s your point? The planet evolves and civilizations change. If someone wants the USA, come and get it.
Exactly My point. This is what history has taught us if we don’t like something change it, it doesn’t matter if everyone agrees with the change.
The have’s and have not’s is what threw me off. I subscribe more to ‘the achievers and the non’acheivers’. ‘The doers and the watchers’, ‘the builders and the destroyers’, haves and have nots implies you were either born with it or not. It just landed in some people’s laps and not in others. Most people that have, have through achievements.
Agreed