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CC - Item 5B - Park Monterey - Closure Impact ReportROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER 14 DATE: JULY 14, 2009 SUBJECT: PARK MONTEREY - CLOSURE IMPACT REPORT SUMMARY Big Island Property, LLC (Hawaii Property, Inc.), the owner of the Park Monterey mobile home park located at 7433 Garvey Avenue, submitted a Closure Impact Report (the "Report") to the City of Rosemead on July 21, 2008 to change the use of mobile home spaces (1A, 2A, and 3A) into a parking lot for a future mixed-use development. The Report was presented to the City Council for consideration at its June 23, 2009 meeting. After some deliberation, the City Council directed staff to arrange for an independent appraiser to provide a valuation of Units 1A and 3A (2A is currently owned by the park owner). Once the appraisals were completed, staff was also directed to coordinate a meeting between all affected parties to discuss the results of the appraisals. This information was to be presented to the City Council at its July 14, 2009 meeting. Coordinating the appraisals of Spaces 1A and 3A and the all-hands meeting has been difficult. Staff has dealt with last minute cancellations and failed attempts to reschedule. In fact, the Space 3A was originally scheduled to be appraised by the City on Tuesday, June 30`h, but staff received a last minute request to cancel that appointment late in the evening on Monday, June 29`h The appraisal appointments were rescheduled and completed on July 7th. However, the appraiser was not able to provide the City with copies of the completed appraisals in time to include them in this staff report. In addition, the all-hands meeting was also not able to be held until Monday, July 13`h, once the appraisal information was submitted to the City. Therefore, the appraisals and results of the all-hands meeting will be presented to the City Council verbally on July 14`h Regardless of this information, it remains imperative that the City Council review the Report and either accept it as complete or add additional mitigation measures pursuant to California Government Code Section 65863.7(e) provided those measures do not exceed the reasonable cost of relocation. It is legal counsel and staff's opinion that appropriate mitigation measures have been provided and that no further mitigation measures are recommended given the option of replacement within the same park and payment of moving costs as being reasonable options for relocation, as well as the fact that neither resident requested a hearing on the Report. Staff Recommendation Staff recommends the City Council review, accept and file the "Closure Impact Report". ITEM NO. APPROVED FOR CITY COUNCIL AGENDA: City Council Report July 14, 2009 Paoe 2 of 2 ANALYSIS California Government Code Sections 65863.7 and 65863.8 establish the procedures to close a mobile home park. As part of the closure process, the park owner must create a Report analyzing the potential effects on the tenants of the closure of the mobile home park. The Report must "address the availability of adequate replacement housing in mobile home parks and relocation costs." The park owner must submit the Report to the City. If requested by the owner or by the tenants, the City must have a hearing on the Report. At the hearing the City Council would review the Report and determine whether to require the owner to mitigate the effects on the tenants beyond what is provided in the Report. If the City requires mitigation measures, those measures may not exceed the "reasonable costs of relocation." In addition, the park owner must give at least 12 months notice to the affected residents that the park will be closing. Such notice was provided to the tenants of Spaces 1A and 3A in July 2008 with a notice to vacate by July 31, 2009. No notice was served on Space 2A as it is owned by the park owner. The Report submitted by Big Island Property, LLC has been reviewed by legal counsel and found to be in compliance with the State Government Code regulating mobile home park change of use procedures. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. In addition, staff sent notice to Spaces 1A and 3A, as well as the park owner, informing them that this item would be on tonight's City Council Agenda. Prepared by: W lu b ('j. Michelle G. Ramirez Economic Development Administrator Development Director Attachment A: Closure Impact Report Attachment B: California Statues ATTACHMENT A HK &C HART, KING & COLDREN Jahn H. Pentecost ipentecost@hkdaw.com July 17, 2008 Our File Number. 38010.00114818£201-0114v.1 Brian T. Saeki Redevelopment & Economic Development Manager JUL 2 1 2008 CITY OF ROSEMEAD 8838 E. Valley Blvd. 13Y:.___________________ Rosemead, CA 91770 Re: Change of Use of Property located at 7433 Garvey Ave.. Rosemead. CA Dear Mr. Saeki: This office represents Big Island Property,. LLC (Hawaii Property, Inc.), the owner of Park Monterey (hereinafter the "Park"), a mobilehome park located at 7433 Garvey Ave. in Rosemead, California. The use of Spaces 1A, 2A, and 3A in the Park will be changed from mobilehome spaces to a parking lot, effective July 31, 2009. We are enclosing herewith the Closure Impact Report ("CIR") and Relocation Plan along with copies of the Notice of Change of Use that are being served upon the residents of Spaces 1A and 3A. No notice is being served on Space 2A for the reason that that space is vacant. If you have any questions regarding this matter, please contact the undersigned. A Professional Law Corporation 200 Sandpointe, Fourth Floor, Santa Ana, Califomia 92707 Ph 714.432.8700 www.hkciaw.com I Fk..714.546.7457 Very truly yours, CLOSURE IMPACT REPORT Park Monterey Trailer Park 7433 Garvey Avenue Rosemead, CA 91770 OVERVIEW According to information provided by the City of Rosemead, Park Monterey Trailer Park ("Park') was completed and opened in 1960. Like most of the trailer parks of the early 1960s, Park Monterey was conceived as an interim use of the land. Today, the owner of Park proposes to close three spaces of the 39 spaces and remove these spaces from residential housing in its present form. The current zoning of the property is C-3. The City of Rosemead does not have an ordinance specifically relating to the closure of trailer parks. The provisions of State law are therefore applicable. Government Code Section 65863.7 requires that prior to the closure of a mobilehome park, the person proposing the closure shall file "a report on the impact of the closure upon the displaced residents of the park to be converted or closed. In determining the impact of the closure on displaced mobilehome park residents, the report shall address the availability of adequate replacement housing in mobilehome parks avid relocation costs." This closure impact report addresses the availability of adequate replacement housing in mobilehome parks and relocation costs, and assesses the impact of closure of the mobilehome park upon the residents who will be displaced. Recommendations to mitigate those impacts are proposed. CLOSURE IMPACT REPORT - PAGE 1 OF 11 CURRENT STATUS OF PARK MONTEREY TRAILER PARK Park Monterey Trailer Park is comprised of 39 spaces on 2.27 acres. The common area facilities consist of a laundry room, drying yard, and restrooms. The owner proposes to close only Spaces 1-A, 2-A and 3-A. On June 17, 2008, those 3 spaces were being used as follows: Use of Spaces 1 Space is Vacant (Space 2-A) 2 Spaces are used by resident-owned and occupied mobilehomes (Spaces1A and 3A. This Closure Impact Report, therefore, addresses the impacts of closure of only the two occupied spaces proposed to be closed, Spaces 1-A and 3-A. CLOSURE IMPACT REPORT - PAGE 2 OF 11 CLOSURE IMPACT REPORT -PAGE 3 OF 11 Space 1A - 1962 Flamingo CLOSURE IMPACT REPORT - PAGE 4 OF 11 Space 3A - 1982 Skyline RELOCATION OF MOBILEHOMES California law requires a permit to be obtained to move any unit that is defined as a "mobilehome." Mobilehomes are units that require permits to be moved on streets or highways. In addition, permits are required for the installation of such units and the installation must be inspected for compliance with state requirements. Consequently, mobilehomes are almost always only moved by licensed transporters with set up and installation usually performed by licensed contractors rather than by individual owners. Mobilehomes are typically described by their width: "10'-wides" and "12'-wides" for the single-width units and "doublewides" for two-section units. The two Resident-owned units on spaces 1A and 3A in Park Monterey Trailer Park are considered to be "mobilehomes" because they require permits to be moved.. Both of the mobilehomes are single section units ("single-wides"). Although additional living space has been added on to the mobilehomes on spaces 1A and 3A, neither is a double-wide unit. Neither of the mobilehomes on spaces 1A and 3A at Park Monterey Trailer Park has a carport awning. Both of the mobilehomes have skirting, although it is damaged at several locations. There is minimal landscaping of spaces. Consequently, the economic value of the subject mobilehomes in Spaces 1-A and 3-A at Park Monterey Trailer Park is the "box value" of the units. That is, there is little value beyond that of the mobilehome itself which can be argued to be attributable to tenant improvements in landscaping or appurtenant structures. If the owners of the mobilehomes on spaces 1A and 3A were able to relocate their mobilehomes to a space in another mobilehome park, they would not experience a loss in the value of their mobilehome; they may see some appreciation in value if they relocate their mobilehomes to a more permanent mobilehome park that is in better condition. There are more than 500 mobilehome parks in Los Angeles County, containing more than 45,000 spaces. Because of the large number of parks, it is not feasible to survey all of the parks to determine how many spaces in the county may be vacant. A survey of mobilehome parks in the immediate Rosemead area in May 2008 did not identify any vacant spaces. While not frequent, there is some removal of older mobilehomes not in good condition and, with only two mobilehomes to be relocated, it is possible that a vacant space might become available. CLOSURE IMPACT REPORT - PAGE 5 OF 11 Even with potential vacant spaces, park managements typically will not accept older mobilehomes.. Mobilehome parks with vacant spaces may restrict occupancy only to manufactured homes that are HUD Code homes (that is, manufactured since June 15, 1976), and typically not more than five years old. Years of Manufacture of Mobilehomes 1962 Flamingo (Space 1A) 1982 Skyline (Space 3A) The age and condition of the 1962 Flamingo mobilehome on space 1A makes it unlikely that it can be relocated to another mobilehome park. However, because the 1982 Skyline is a HUD Code home, there is some prospect that another mobilehome park might accept it. Rents for spaces in other mobilehome parks in the Rosemead area are in the $500 to $700, which is comparable to or slightly higher than the rents the occupants of spaces 1A and 3A are currently paying to Park Monterey. ALTERNATIVE HOUSING Those residents who, for various reasons, are unable (or unwilling) to relocate their mobilehomes and themselves to more distant communities (where vacant spaces are more likely to be found), will have to search for other housing alternatives in the Rosemead and Greater Los Angeles area: apartments, duplexes, townhouses, rental or purchase of single-family residences or condominiums, shared housing arrangements, purchase of an existing mobilehome on a rented space in another mobilehome park. Rents for comparable 2 bedroom/1 bath apartments in the Rosemead area are in the range of $1,150 to $1,500 per month. Sometimes small houses can be found for rent in the same dollar range. Residents may also wish to relocate outside Los Angeles, possibly even to another state, to be closer to relatives, for better employment or other opportunities, or to a lower cost of living. In some instances, it may make economic sense to relocate the mobilehome. Individual interviewing and counseling of owners of mobilehomes in Park Monterey Trailer Park will be necessary to determine specific needs, interests, and desires. CLOSURE IMPACT REPORT - PAGE 6 OF 11 RELOCATION COSTS Mobilehomes The term "reasonable costs of relocation" is not defined in Government Code Section 65863.7. It is, however, the costs of moving mobilehomes that set owners of mobilehomes apart from renters of apartments and owners of recreation vehicles. This report, therefore, addresses the cost of moving rriobilehomes as "relocation costs." Companies with experience in the tear-down, transportation, and reinstallation of mobilehomes were contacted for estimates of the costs of relocating mobilehomes. The companies were asked to estimate the cost of relocating a mobilehome based on the following assumptions: • Single section mobilehome; • The owners having kept the wheels, axles, and tires on the units in useable condition; • A local move with easy access; • Re-use of skirting and other materials; • Expandos, screen rooms, porches, decks, and sheds not included. Estimates of the costs to relocate a singlewide mobilehome like those in Park Monterey Trailer Park vary widely because of the difficulty of trying to create a hypothetical situation and the various situations that may be encountered. An estimate of the cost to relocate a singlewide mobilehome is: Estimate of cost to relocate mobilehome Single Prepare mobilehome to be moved $400 Remove carport awning 350 Remove patio awning 281 Furnish/install tires & axles-rental 350 Remove skirting 125 Transport mobilehome 600 Set up mobilehome 1,300 Tie-down system (if required) 880 Reinstall carport awning 555 Reinstall patio awning 350 Furnish & install skirting 1,000 $6,191 CLOSURE IMPACT REPORT - PAGE 7 OF 11 In addition, the person moving from one park to another would likely incur the expenses of staying in a motel and eating meals in a restaurant for a number of nights that an apartment renter would not. The "reasonable cost of relocation" of a singfewide mobilehome is approximately $7,500 to $8,000. INFORMATION ABOUT PARK RESIDENTS An effort was made to interview spokespersons for the residents of the mobilehomes on spaces 1A and 3A. The owner of the mobilehome on space 1A spoke with the consultant. Three attempts - a telephone interview and two letters requesting responses to a brief questionnaire were made to obtain some basic information from the spokesperson for the residents of the mobilehome on space 3A. The spokesperson declined to provide information which could help the consultant to determine the impacts closure of space 3A could have upon its residents. The information provided here attempts to strike a balance between maintaining confidentiality and privacy of residents with the need to provide assessment of the impacts of closure on the residents. Space 1A is occupied by three adult males and two minor children. The men are employed together in a commercial and residential glass installation and repair business. The two children attend local elementary schools. As the customer base of the glass business is Rosemead-area, and it is preferred that the children remain in their schools, it is impractical for the residents of space 1A to relocate too far from Park Monterey. An unwillingness to return to apartment living, and a preference for at least the partial ownership of mobilehome park living, has also been expressed. It is unlikely that the 1962 Flamingo could be relocated, so alternative housing - an apartment or other rental dwelling, or a mobilehome in another park - would have to be found. Based on information one of the occupants provided to park management, it is believec that four persons reside in the mobilehome on Space 3A: three adults and one child. It is not known whether the adults are employed in the area. It is assumed that the child attends a local school. The 1982 Skyline on space 3A could possibly be relocated to another mobilehome park. Although the chance of finding a vacant space in the Rosemead area is slim, a vacant space could be found in an outlying area such as Hemet. But without the willingness of the residents of space 3A to respond to communications, the practicality of moving outside the Rosemead/Greater Los Angeles area could not be determined at this time. CLOSURE IMPACT REPORT - PAGE 8 OF 11 SUMMARY OF IMPACT OF CLOSURE OF SPACES 1A AND 3A The social and economic impact of relocation will not be felt equally by all tenants. Implementation of the Mitigation recommendations and the establishment of a fair and reasonable Relocation Plan should minimize impacts and smooth relocation. Relocation may offer the opportunity to improve the resident's living conditions by moving to a better maintained mobilehome parks, or they may move into housing that better meets current minimum building code standards or into more secure complexes that provide better living environments. CLOSURE IMPACT REPORT - PAGE 9 OF 11 Mitigation of Closure Impacts Recommendation #1: RELOCATION PLAN In, order to provide for uniform, fair, and equitable treatment of owners of the two mobilehomes, a Relocation Plan should be implemented to provide financial assistance to park residents to smooth their relocation. Recommendation #2: COMPENSATION TO OWNERS WHO WISH TO RELOCATE THEIR MOBILEHOMES TO ANOTHER PARK Owners of the two mobilehomes should be compensated for the actual costs of moving their units to another park, not to exceed the "reasonable cost of relocation" of a trailer. The Relocation Plan should provide for reimbursement of such costs within a radius that will permit residents to consider relocation of their units as broadly as possible. Recommendation #3: COMPENSATION TO MOBILEHOME OWNERS WHO ARE UNABLE TO SELL OR RELOCATE THEIR MOBILEHOMES If the owners of the two mobilehomes are unable to sell their mobilehomes because of deteriorated condition, or who are unable to.move their units to another comparable park within a 50 mile radius, should have the option of selling the unit to the Park. The Relocation Plan should provide for appraisal of the unit to determine its Fair Market Value, excluding any allocation for in-place value. Government Code Section 65863.7(e) limits the amount of compensation to an amount that does not exceed the "reasonable cost of relocation" of the mobilehome. Recommendation #4: OWNERS OF MOBILEHOMES WHO HAVE "SPECIAL NEEDS" Relocation may pose unique problems for some owner-residents. The Relocation Plan should be flexible enough to provide additional assistance to long-term residents of the park who are aged or disabled and receiving SSI or have qualified for similar government assistance programs. Recommendation #5: GOVERNMENT ACTIONS TO MITIGATE THE IMPACT OF CLOSURE OF THE TRAILER PARK At the staff level, the City of Rosemead can provide assistance by helping to achieve the reasonable participation and cooperation of residents in the relocation. In addition, city housing and redevelopment staff can look into ways of assisting eligible residents to achieve any priorities for Section 8 or other government-subsidized housing programs that are local housing alternatives. CLOSURE IMPACT REPORT - PAGE 10 OF 11 Legal Description of the Portion of Subject Property Containing Spaces 1A, 2A, and 3A 7433 Garrey Avenue Rosemead, CA 91770 Real property in the City of Rosemead. County of Los Angeles, described as follows: The West 46 feet of the East 330 feet of the South 296 feet (measured to the center line of Garvey Avenue) of Lot 4 in Block 2 of Subdivision of the Garvey Ranch, in the City of Rosemead, in the County of Los Angeles, State of California, as per Map recorded in Book 52 Pages 43 and 44 of Miscellaneous Records, in the office of the County Recorder of said County. CLOSURE IMPACT REPORT - PAGE 11 OF 11 RELOCATION PLAN PARK MONTEREY TRAILER PARK Rosemead, California 1. PURPOSE The owner of Park Monterey Trailer Park, hereinafter "Park", will cease use of Spaces 1-A, 2-A and 3-A as mobilehome spaces. As a result, Park Monterey Trailer Park is closing those spaces and withdrawing them from residential housing use. This relocation plan has been developed to insure the uniform, fair, and equitable treatment of owners of the two mobilehomes who reside at Spaces 1-A and 3-A (2-A is vacant) at Park Monterey Trailer Park in order to mitigate the impact of closure and relocation. State law requires the owner to pay only the "reasonable costs of relocation" of the mobilehome. Under this Relocation Plan, the owner proposes to pay significantly more. 2. EFFECTIVE DATE. CLOSURE DATE, AND EXPIRATION The "Effective Date" of this Relocation Plan is July 31, 2008. The Closure Date is July 31, 2009. This Plan expires on the Closure Date. 3. PARTICIPANT A. "Participant" is a person who is eligible to receive relocation assistance under one of the four Programs of this Plan. To be eligible, the person must: (a) at all times be in compliance with all local, State, and federal laws and regulations; and (b) be a registered or legal owner of a mobilehome which lawfully occupies Spaces 1-A and 3-A in the Park on the Effective Date; and, (c) be using that same mobilehome as the person's only residence on the Effective Date and continue to occupy that same mobilehome until the Participant vacates the Park with the mobilehome; and, (d) at all times until the person and the mobilehome vacates the Park, not be in default of his or her rental agreement with the Park; and (e) voluntarily vacate the Park with the mobilehome and any other personal property, by not later than the Closure Date; and (f) execute all documents reasonably required by the Park to confirm Participant's acceptance of relocation assistance; and 38010.00114814-2599-9106v.1 Relocation Plan - Park Monterey Trailer Park - Page 1 of 8 (g) cooperate with the Park in the carrying out of this Relocation Plan including providing documents and other information reasonably required by the Park; and (h) meet any of the additional eligibility requirements of the Program of this Plan under which such person receives relocation assistance from the Park. If more than one person living in the same mobilehome meets the eligibility requirements above, all of the residents of that mobilehome shall collectively be a single Participant under this Plan. Specifically, but not by way of limitation, "Participant" does not include (a) any current or former employee, or their households, of Park Monterey Trailer Park; (b) any person or persons or their households, who rent mobilehomes located in the Park; (c) non- resident owners of mobilehomes in the Park; and (d) any person who does not accept the benefits offered by this Relocation Plan and vacates by the Closure Date. Any rights to participate in this Plan are personal and not assignable. For example, a person who purchases one of the two mobilehomes at Spaces 1-A or 3-A in the Park after the Effective Date is not eligible to be a Participant and will not receive any relocation assistance from the Park. Participants may not be in default of their rental agreement and all monies owed to Park by the resident must have been paid. 4. RELOCATION ASSISTANCE The Park shall provide assistance to each Participant in order to mitigate the impact of closure and relocation. 5. DETERMINATION OF "REASONABLE PARTICIPATION" BY PARTICIPANT Reasonable acceptance of the assistance provided by this Plan is expected from each Participant. Participation in the Plan will terminate if it is determined that Participant is being unreasonable. or that the Park is unable to relocate the Participant due to Participant's inability to make a decision or unwillingness to accept an alternative. In the event that a question develops, "Reasonable Participation" shall be determined by a neutral third party. The Park intends to use Inland Fair Housing and Mediation Board as the neutral third party mediator. 6. GENERAL PAYMENT PROVISIONS All payments of Relocation Assistance Compensation shall be made by check issued by the Park. No checks shall be issued unless all terms of any agreement between the Park and a Participant have been satisfied and all documents required have been executed. 38010.001/4814-2599-9106v.1 Relocation Plan - Park Monterey Trailer Park - Page 2 of 8 PROGRAMI Mobilehome Owners Who Relocate Their Mobilehome to Another Park 7.. PROGRAM ELIGIBILITY Persons eligible for this Program (a "Program I Participant"), must (a) meet the eligibility requirements in Section 3 of this Plan; and, (b) be the owner and resident of a mobilehome on the Effective Date. 8. COMPENSATION A. Park will pay the reasonable cost of moving the mobilehome to another location or park selected by the Program I Participant within one hundred fifty, (150) miles of Park Monterey Trailer Park. The following expenses will be included in the cost reimbursement to the Program I Participant: 1. Tear-down charges; 2. Towing or mileage charges; 3. Set-up charges and inspection fees; 4. Insurance on mobilehome and personal property during the move. 5. Any cost directly related to modifying or replacing personal property (such as existing skirting or awning) to adapt it to the new location. Park is not responsible for the purchase of any new personal property (such as skirting or awning) which may be required at the new location or may be desired by the resident. Payment will be determined by competitive bids received only from licensed mobilehome transport and installation contractors. Park will provide a list of three approved contractors to.provide this service. As quickly as Park can, the Park will tell the Program I Participant the payment amount. The Program I Participant will then make any arrangements necessary for relocation of the mobilehome. If the Program I Participant prefers to move or setup the mobilehome themselves, the Program I Participant will receive the amount which would have been paid to a contractor. Any contract with a transport company or with an installation contractor shall be between the Program I Participant and the company or contractor. B. Park will also pay the sum of $500.00 to offset the costs of temporary housing during the period the mobilehome is being relocated to another site. C. Park'will pay $1,000.00 as the reasonable cost of relocation within 5D miles of Park Monterey Trailer Park of Participant's personal belongings which cannot be transported inside the mobilehome. 38010.001/4814-2599-9106v.1 Relocation Plan - Park Monterey Trailer Park - Page 3 of 8 The Program I Participant will then make any arrangements necessary for moving personal property. Any contract with a moving company shall be between the Program I Participant and the moving company. D. The total sum of Compensation to be paid to any- Program I Participant by the Park pursuant to Paragraphs 8.A. through 8.C. shall not be less than nor greater than $8,000.00. E. Any Program I Participant who relocates from the Park quickly will be paid an incentive bonus. The Incentive Relocation Payment will begin on the Effective Date and the schedule of payments is as follows: Incentive Date Bonus relocate by October 31, 2008 $750.00 relocate by January 31, 2009 $500.00 relocate on or after February 1, 2009 $0 F. Park will make the relocation payments after the Program I Participant has removed themselves and all property (including the mobilehome) from the Park and signed the Release Statement. If expenditures are required to be made by the Program I Participant in order to accomplish the move, Park will advance these costs if proper documentation is made to establish the need for advance payment. PROGRAMII Mobilehome Owners Who Sell Their Units 9. PROGRAM ELIGIBILITY Persons eligible for this Program (a 'Program II Participant"), must (a) meet the eligibility requirements in Section 3 of this Plan; and, (b) be the owner and resident of a mobilehome on the Effective Date. In addition, to be eligible for the assistance provided in Paragraph 11 of this Plan, the conditions in subsections a. or b. of that Section must first be satisfied. 10. VOLUNTARY SALE A "Voluntary Sale" is a sale in which the Participant desires to sell the mobilehome rather than relocate it. If the Program II Participant decides to sell the mobilehome, Park will then work with the Program II Participant to facilitate the sale. If the Program II Participant decides to advertise the mobilehome for sale, the Park will reimburse the Program II Participant up to $400.00 for advertising upon presentation of invoice. The Program II Participant must notify the Park through the Relocation Assistance Director of all offers to purchase 38010.001/4814-2599-91 06v. I Relocation Plan - Park Monterey Trailer Park - Page 4 of 8 which are received, and the Program II Participant must seriously consider all reasonable offers. Participant must inform all prospective purchasers that the mobilehome must be removed from Park Monterey Trailer Park upon sale. 11. FORCED SALE A "Forced Sale" occurs because the mobilehome cannot be relocated for either of the following reasons: a. The Park and an independent third party have determined that the mobilehome cannot be moved because of its deteriorated physical condition; or, b. At the sole discretion of the Park, and after extensive and complete research of all locations, it is determined that there is no comparable space available within Los Angeles County onto which the mobilehome can be moved. 12. COMPENSATION A. The Park agrees to purchase any mobilehome which is subject to a "Forced Sale" at the Appraised Fair Market Value of the mobilehome itself, appliances, accessories, and appurtenant structures. The Fair Market Value shall be determined by an independent third party who is qualified as an appraiser of mobilehomes for the purpose of financing or sale. "Fair Market Value" means the probable price which a mobilehome would bring in a competitive and open market under all conditions requisite to a sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by any undue stimulus. "Fair Market Value" does not include any "in-place" value, or value attributable to its continued sitting on the rented space at Park Monterey Trailer Park. B. In addition, Park will pay the reasonable cost of relocation within 50 miles of Park Monterey Mobilehome Park of Participant's personal belongings to another residence up to $1,000. The Program II Participant will then make any arrangements necessary for moving personal property. Any contract with a moving company shall be between the Program II Participant and the moving company. Compensable moving elements include packing, transportation, un-packing and insurance. Transportation costs beyond 50 miles will not be compensable unless Park determines that relocation beyond 50 miles is justified. In addition to payment for the cost of actual moving of personal property, one-time connection fees related to gas, water, electricity, telephone, intemet and television service, are eligible for reimbursement. Compensation shall be not less than nor more than $8,000.00.. 38010.001/4814-2599-9106v.1 Relocation Plan - Park Monterey Trailer Park - Page 5 of 8 As an alternative to a professional move, a Program II Participant may elect to receive a flat sum of $8,000.00 to move themselves, and/or to pay the costs of connection to utilities at their new residence. Should the moving costs for a Program II Participant be less than $8,000.00, the difference between actual moving costs and the total Compensation of $8,000.00 may be applied by the Program II Participant to security deposits or prepaid rent, or as part or all of a down payment on a replacement dwelling, at their new residence. C. Any Program II Participant who relocates from the Park quickly will be paid an incentive bonus. The Incentive Relocation Payment will begin on the Effective Date and the schedule of payments is as follows: Incentive Date Bonus relocate by October 31, 2008 $750.00 relocate by January 31, 2009 $500.00 relocate on or after February 1, 2009 $0 D. Park will make the relocation payments after the Program it Participant has removed themselves and all property (including the mobilehome if a condition of the sale) from the Park and signed the Release Statement. If expenditures are required to be made by the Program II Participant in order to accomplish the move, Park will advance these costs if proper documentation is made to establish the need for advance payment. PROGRAM III Mobilehome Owners Who Have "Special Needs" 13. ELIGIBILITY Participants in Program III shall be limited to persons who meet all of the qualifications to be eligible as Participants in Programs I or II and who, in the sole discretion of Park, after a review and recommendation by the Relocation Assistance Director, are found to have "special needs" beyond those anticipated in Programs I or II. It is the intent of the Park that eligibility for Program III be restricted to persons who are genuinely "aged or disabled" and who, because of long-time residency (at least ten years) in the Park, are most affected by relocation. In addition, Program III is intended to assist those persons who qualify for government assistance or who need assistance for a period of up to twelve months while qualifying for such assistance, or for whom the support of family members, shared housing, or employment are not available. Factors which will influence Park's decision as to eligibility for Program III will include, but not be limited to, prior qualification of the resident for a bona fide government assistance program intended to serve the needs of the aged or disabled (such as SSI or 38010.001/4814-2599-9106v.1 Relocation Plan - Park Monterey Trailer Park - Page 6 of 8 support for the fully disabled). Persons who are eligible for Social Security because of their age are not automatically eligible. 14. COMPENSATION Park will pay to Program III Participants a reasonable amount based upon Park's determination of "special needs" relocation costs. Such compensation shall not exceed $2,000.00. . 38010.001/48142599-9106v.1 Relocation Plan - Park Monterey Trailer Park - Page 7 of 8 HK HART, KING & COLDREN John H. Pentecost jpentecost@hkctaw.com July 17, 2008 Our File Number. 38010.001!4812-0125-3122v.1 NOTICE OF CHANGE OF USE To: All Homeowners and Residents at Space 1A Park Monterey 7433 Garvey Avenue Rosemead, CA 91770 Re: Change of Use of Spaces 1A, 2A, and 3A Dear Homeowners and Residents: PLEASE TAKE NOTICE THAT effective July 31, 2009, Spaces 1A, 2A, and 3A in Park Monterey, 7433 Garvey Avenue, Rosemead, CA 91770, will no longer be used as spaces for the placement of mobilehomes. The use of these spaces will be changed to a parking lot. The property owner reserves the right to amend, supplement or otherwise modify this Notice, and/or to provide additional notices regarding change of use as circumstances warrant. HART, KJNG & PQLDREN Jdhn W. Pentecost Authorized Agent for Big Island Property, LLC (Hawaii Property, Inc) JHP\LJL\klv A Professional Law Corporation 200 Sandpointe, Fourth Floor, Santa Ana, California 92707 Ph 714.432.8700 1 www.hkclaw.com I Fx 714.546.7457 HK&C HART, KING & COLDREN Jahn H. Pentecost jpentecost@hkclaw.com July 17, 2008 Our File Number 38010.00114827-6843-8530v.1 NOTICE OF CHANGE OF USE To: All Homeowners and Residents at Space 3A Park Monterey 7433 Garvey Avenue Rosemead, CA 91770 Re: Change of Use of Spaces 1A. 2A, and 3A Dear Homeowners and Residents: PLEASE TAKE NOTICE THAT effective July 31, 2009, Spaces 1A, 2A, and 3A in Park Monterey, 7433 Garvey Avenue, Rosemead, CA 91770, will no longer be used as spaces for the placement of mobilehomes. The use of these spaces will be changed to a parking lot. The property owner reserves the right to amend, supplement or otherwise modify this Notice, and/or to provide additional notices regarding change of use as circumstanc,ps warrant. JHPILJLWv Authorized Agent for Big Island Property, LLC (Hawaii Property, Inc) A Professional Law Corporation 200 Sandpointe, Fourth Floor, Santa Ana, California 92707 Ph 714.432.87001 www.hkciaw.com I Fx 714.546.7457 ATTACHMENT B GOVERNMENT CODE SECTION 65863.7 - 65863.8 65863.7. (a) Prior to the conversion of a mobilehome park to another use, except pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410) of Title 7), or prior to closure of a mobilehome park or cessation of use of the land as a mobilehome park, the person or entity proposing the change in use shall file a report on the impact of the conversion, closure, or cessation of use upon the displaced residents of the mobilehome park to be converted or closed. In determining the impact of the conversion, closure,- or cessation of use on displaced mobilehome park residents, the report shall address the availability of adequate replacement housing in mobilehome parks and relocation costs. (b) The person proposing the change in use shall provide a copy of the report to a resident of each mobilehome in the mobilehome park at least 15 days prior to the hearing, if any, on the impact report by the advisory agency, or if there is no advisory agency, by the legislative body. (c) When the impact report is filed prior to the closure or cessation of use, the person or entity proposing the change shall provide a copy of the report to a resident of each mobilehome in the mobilehome park at the same time as the notice of the change is provided to the residents pursuant to paragraph (2) of subdivision (g) of Section 798.56 of the Civil Code. (d) When the impact report is filed prior to the closure or cessation of use, the person or entity filing the report or park resident may request, and shall have a right to, a hearing before the legislative body on the sufficiency of the,report. (e) The legislative body, or its delegated advisory agency, shall review the report, prior to any change of use, and may require, as a condition of the change, the person or entity to take steps to mitigate any adverse impact of the conversion, closure, or cessation of use on the ability of displaced mobilehome park residents to find adequate housing in a mobilehome park. The steps required to be taken to mitigate shall not exceed the reasonable costs of relocation. (f) If the closure or cessation of use of a mobilehome park results from an adjudication of bankruptcy, the provisions of this section shall not be applicable. (g) The legislative body may establish reasonable fees pursuant to Section 66016 to cover any costs incurred by the local agency in implementing. this section and Section 65863.8. Those fees shall be paid by the person or entity proposing the change in use. (h) This section is applicable to charter cities. (i) This section is applicable when the closure, cessation, or change of use is the result of a decision by a local governmental entity or planning agency not to renew a conditional use permit or zoning variance under which the mobilehome park has operated, or as a result of any other zoning or planning decision, action, or inaction. In this case, the local governmental agency is the person . proposing the change in use for the purposes of preparing the impact report required by this section and is required to take steps to mitigate the adverse impact of the change as may be required in subdivision (e). (j) This section is applicable when the closure, cessation, or change of use is the result of a decision by an enforcement agency, as defined in Section 18207 of the Health and Safety Code, to suspend the permit to operate the mobilehome park. In this case, the mobilehome park owner is the person proposing the change in use for purposes of preparing the impact report required by this section and is required to take steps to mitigate the adverse impact of the change as may be required in subdivision (e). 65863. 8. A local agency to which application has been made for the conversion of a mobilehome park to another use shall, at least 30 days prior to a hearing or any other action on the application, inform the applicant in writing of the provisions of Section 798.56 of the Civil Code and all applicable local requirements which impose upon the applicant a duty to notify residents and mobilehome owners of the mobilehome park of the proposed change in use, and shall specify therein the manner in which the applicant shall verify that residents and mobilehome owners of the mobilehome park have been notified of the proposed change in use. Neither a hearing on the application, nor any other action thereon, shall be taken by the local agency before the applicant has satisfactorily verified that the residents and mobilehome owners have been so notified, in the manner prescribed by law or local regulation.