APPROVAL OF THE FIVE-YEAR MOBILE HOME PARK ACCORD

There is no direct fiscal impact associated with this action.

In 2007, the City of Ontario and ten mobile home park owners entered into the 2007 Jack Galvin Mobile Home Park Accord (Jack Galvin Accord). The Jack Galvin Accord established a process for addressing annual rent adjustments at participating mobile home parks within the City. Under the Jack Galvin Accord, annual rent adjustments are based on the Consumer Price Index for the previous calendar year. The annual adjustment must be at least 4% and cannot exceed 10%. Since the implementation of the Jack Galvin Accord, City staff have been responsible for calculating the annual rent adjustments and administering it.

The City Council approved the First Amendment to the Jack Galvin Accord on December 2, 2014. On November 19, 2019, the City Council approved the Second Amendment, which extended the Jack Galvin Accord for five years through January 5, 2025. 

On February 4, 2025, the City Council approved a Third Amendment to extend the Jack Galvin Accord for an additional five-year term. The Third Amendment required all participating mobile home park owners to sign the amendment before it could take effect. One participating owner chose not to sign it. As a result, the Third Amendment did not go into effect.

Staff is proposing a new Mobile Home Park Accord (Accord) that preserves the original intent of the Jack Galvin Accord but gives participating mobile home park owners more flexibility. 

The new Accord includes three modifications:

1. The Accord can be approved by a simple majority of the Owners listed in Exhibit A;
2. Other mobile home parks can join the Accord through an executed Agreement approved by the City Council; and
3. Future amendments can be approved with the written consent of those mobile home park owners who continue to participate in the Accord.

Amendments that only extend the term of the Accord can be handled administratively by City Staff. More significant changes, such as adding a new park owner or changing the rent adjustment formula, would still require City Council approval. All other provisions of the Jack Galvin Accord remain unchanged. This includes the formula used to determine the maximum annual rental adjustment based on the Consumer Price Index.

Staff recommends approval of the new Mobile Home Accord, which would be effective through January 5, 2031. The new Mobile Home Accord will provide a reasonable and predictable process for annual rent adjustments while providing greater stability and certainty for participating mobile home park owners and residents.