Fortuna city leaders approved a rent-stabilization ordinance to limit rent increases in mobile home parks, in response to residents' concerns about rising housing costs.
The new ordinance includes a ban on rent increases when a home is sold and an annual 5% cap on rent increases tied to the consumer price index, which tracks inflation.
It also implements a process for park owners to pass on the cost of capital improvements to residents, provided they first receive preliminary approval from a hearing officer, who must be a licensed attorney appointed by the city manager.
Many residents applauded the new ordinance at a recent City Council meeting, but others raised concerns.
A Royal Crest Mobile Estates resident who identified himself as Ricardo said he worries about the cost of capital improvements being passed on to tenants.
“If this ordinance allows broad pass-throughs, then the 5% cap becomes meaningless,” he said. “We need clear definitions, strong limits and resident approval built into this process.”
Residents had asked that tenants approve capital improvements by vote, but the city manager said that would be illegal.
"This [approach] balances operational predictability for park owners with continued oversight," according to meeting documents.
Residents also requested proportional rent reductions when park services are reduced. The ordinance does not include that request.
"The issue has been flagged for further policy discussion, and as administrative capacity increases within the City, as the ordinance’s current provisions do not yet address this request," according to meeting documents.
Councilor Abe Stevens cast the only vote against the ordinance.
"I’m a little skeptical of the rent stabilization just because of the kind of free enterprise and free market considerations balanced against the public benefit of protecting seniors and maintaining some affordable housing," he said. "It’s kind of a tricky situation."
In a letter to city officials, some park owners protested the changes, saying they deserve a fair return on their investments, and increased rents are needed, given skyrocketing expenses.
"Royal Crest cannot recall a single resident being evicted for non-payment during the past five years," the letter states. "Over the past fifty years, management has on many occasions worked with residents who are unable to pay their rent due to reasons beyond their control, so as to enable them to avoid eviction, and the loss of their homes."
City documents show rent at Royal Crest rose 96% from 2013 to 2025, exceeding inflation in most years.
Some residents said they fear becoming homeless if their rents continue to go up.
"Most of us are on fixed incomes and will not be able to stay here if the rents keep going up!" Ruth Burk wrote in an email to the city manager. "Already a lot of people have had to leave!"
These changes come after months of work and public comment. In September, the City Council passed a temporary moratorium on rent increases for mobile homes.
The ordinance takes effect immediately.
