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Mobile Home Parks Council Policy Regarding Change of Use by Private Development Council Briefing - November 9, 2010 Andrew Friedman Dept. of Housing and Neighborhood Preservation Based on work of the Economic Vitality Strategic Issue Team
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Mobile Home Parks Council Policy Regarding Change of Use by Private Development Council Briefing - November 9, 2010 Andrew Friedman Dept. of Housing and Neighborhood Preservation Based on work of the Economic Vitality Strategic Issue Team Key Assistance from Cynthia Whitbred-Spanoulis
Presentation Outline • Information about mobile homes and mobile home parks • Issues to consider • Proposed Policy to address the issues • Council Discussion and Direction
Basics • 1,400 (approximately) households reside in mobile homes located in 10 MH parks in VB • 5 of these are in Strategic Growth Areas, where plans call for an eventual change of use • Residents of these parks rent the mobile home sites; when the land use is changed, they must relocate
Countyview MH Park Euclid Rd.
Colony MH Park – 17th St. Norfolk Ave. South
Change of Use Issues Some mobile homes cannot be moved: • Many existing homes are not in condition to be moved • Others do not meet current standards to be placed in existing parks • Owners lose their entire investment in the mobile home if it cannot be moved.
Change of Use Issues If moving is possible: • The cost of relocating a mobile home may exceed $5,000 – a sum many households may not have • No new mobile home parks are being created in VB • At least three have been eliminated in the last decade • Therefore, relocation may require moving out of Virginia Beach and away from friends, schools and jobs.
Mobile Homes vs. Apartments • Mobile home monthly lot rent costs are generally under $500. • Two-bedroom fair market rent is $965 in Virginia Beach • Apartments often have no outside storage, no-pet policies, totally different living environment • Apartments often require move-in deposit equal to three months rent, or $2,700.
Summary • Some can’t move and will face loss of investment, moving into an apartment and having to pay rent differential, plus the cost of the security deposit • Some can move and may face $5,000 moving costs • Some won’t be able to move or to afford or obtain an apartment and may become homeless
Policy Considerations • Acknowledge potential hardships • Provide a framework to discuss them with owners/developers • Do not establish requirements that would infringe on property rights • Be prepared and organized
Proposed Policy Owners/developers planning a change of use should: • Provide time to people to accumulate funds, develop options, adjust (Virginia Code section 55-248.46. re: termination of tenancy requires 180 day notice if the termination is by reason of change of use) • Provide ongoing information and liaison about what is occurring and avoid rumors, panic, etc. • Consider ways to reduce financial hardship through rent forgiveness, incentives for moving, grants. • Overall – reduce the hardship, address issues in an organized manner
Advantages of a Policy • A policy asks owners to present to Council their plans for addressing these issues • Adoption of policy provides a framework for Council to discuss issues with developer and to respond to affected residents • Without a policy there will be demands and responses and no framework to consider them
Other Places • Several states and some cities have or had laws and/or trust funds in place that require relocation payments • Maryland adopted such legislation in June, 2010 • Chesapeake is developing a proposed policy for Council consideration that is similar to this proposed policy. • Proposed redevelopment of Providence MH park brought these issues to the forefront there. • A similar policy among both cities would avoid creating development advantages…….
Next Steps • Your discussion • Your direction to the City Manager • Policy can be ready for vote on December 7 • Thank you!
