The Continuing Saga of Little Woods MHP

The Continuing Saga of Little Woods MHP

The Story Goes On.

Little Woods (LW) MHP is a 78 site, low-moderate income, family mobile home park in Petaluma, CA.

The community also includes seniors, fixed income, etc. Many residents have been in LW for years. Site rents average about $470/mo. The park has been subject to the Petaluma Rent Stabilization Ordinance (RSO) since the RSO was enacted in the early 1990s.

The current park owner purchased LW in 1998 with $400K in cash and a mortgage for $1.2 million. They subsequently refinanced the park for at least $2.6 million, meaning that they have no cash equity remaining in the park. Prior to 2023, the park owner had no actions with the RSO.

In 2023, the park owner filed a rent increase application under the RSO for an increase of $1,531.22 per site per month, an increase of nearly 400%. The Logic? Somehow the appraiser determined that the park had a ‘current’ market value of $14,200,000. (A ‘back of the envelope’ calculation suggests a value more like $5 million.) The owner’s ‘experts’ determined that a 12% return on the ‘current’ market value was appropriate, so the owner’s accountant worked out that the owner needed $1,500/mo/site to achieve the goal.

The owner also wanted to pass through to the residents HIS legal and expert witness costs, estimated at over $100,000.

So, a multi-day arbitration was held.

Owner was DENIED everything, including recovery of his costs.

So, we’re done, right?

Wrong!

In 2024, the park owned tried again, with a new attorney but with the same accountant and appraiser. Owner now wants a monthly rent of about $1,200/mo/site, an increase of about $700/mo/site.

Owner also wanted his fees and costs passed through to the residents.

Another multi-day arbitration was held with a different arbitrator.

Owner was DENIED everything, including recovery of his costs.

So now we are done, right?

Wrong!

In March 2025, park owner notified everyone in the park that they were being given 12 months notice of Termination of Tenancy. The reason given was that the park owner was permanently closing the park.

So, will the park be closed?

Stay tuned.

Deane