Encinitas imposes emergency mobile home rent caps

Encinitas city council members voted unanimously on Wednesday to impose immediate rent controls on mobile home parks.

The approved urgency measure restricts how much land rental fees can rise annually for residents who own their homes but rent the ground they occupy. This marks the first time the city has applied such limits to this specific housing sector. The ordinance takes effect immediately and requires a supermajority vote to pass.

The decision follows a sharp increase in costs at Riviera Mobile Home Park on Vulcan Avenue. New owners notified residents that land rental rates would jump by as much as 17 percent starting in November. Residents of the park, which is part of a network of 11 parks containing approximately 729 spaces in Encinitas, organized and lobbied council members to intervene. They argued that because it is difficult to relocate mobile homes to other parks, they are locked in place and vulnerable to high charges.

Mayor Bruce Ehlers stated that the city should have addressed this issue long ago, noting that these parks provide essential low-income housing. Councilmember Jim O'Hara, who is not typically a supporter of rent control, voted for the measure due to the unusual ownership dynamic. Heidi Holzworth, a resident and organizer of the SOS Encinitas advocacy group, described the emotional relief of residents when the item appeared on the agenda.

The temporary law allows rent increases only once per year. The cap is set at the lower of 4 percent or 75 percent of the area's annual Consumer Price Index. The federal Bureau of Labor Statistics reports the current annual CPI rate for the San Diego region is 4.7 percent. If park owners believe this limit prevents a fair return, they can petition the city for a higher increase. The council would then hold a hearing on the request.

Council members also gave initial approval to a second temporary ordinance that will replace the urgency measure. This new rule requires a second council vote in November and a 30-day waiting period before it takes effect. It is scheduled to expire on July 30, 2027. City officials aim to have a permanent ordinance in place by that deadline. Details for the permanent law will be developed starting early next year, though the final regulations may differ from the temporary versions.

Councilmember Luke Shaffer described the move as a market correction, cautioning against creating a whiplash effect with too much control. Councilmember Marco San Antonio, a business owner, said the city must treat both residents and landowners fairly. He noted that much learning is needed before a permanent law is enacted.

Industry representatives expressed concern about the new rules. Julie Pauli of the Western Manufactured Housing Communities Association and Ken Johnston, whose family owns Green Valley Mobile Estates, said they are monitoring the city's plans. Johnston, who already ties his rental rates to the CPI, called the ordinances an unnecessary regulatory burden. He argued that the issue is complicated and the city should not rush into a harsh ordinance, pointing out that parks vary in the age of their structures and some contain RVs.