The Journal

July 2013

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for Contempt of Court for 6 of the 7 Council Members and the City Attorney. Finally, with the threat of a criminal trial hanging over their head, the City Council abandoned its challenge of the subdivision. If Section 66427.5 is amended, which seems "sticks" in the "bundle of property rights." Of likely given the current political environment, course, the crucial issues become the cost of clothen park owners can count on more local oppo- sure and the viability of alternative uses. Govsition to subdivision. The sad reality is that while ernment Code 65863.7 limits payments to local politicians often talk about how important tenants to the "reasonable cost of relocation." affordable housing is to them, they often really The common sense interpretation of "reasonable do not want to see cost of relocation" limitation means the cost of mobile home park physically moving a mobile home and the tenuses become perma- ant's belongings. Certain local governments According to the Manufactured Housing Industitute (MHI) the National nent, particularly in have adopted requirements that exceed this limModular Housing Council recently reported 2,936 homes shipped in Janucoastal or other "up- itation, but we do not have any appellate deciary through March this year in its Quarterly Modular Housing Report. This is scale" locations. sions directly addressing the question. If an increase of 3.9 percent over the same quarter in 2012. If the door to sub- conversions are made more difficult, it is likely According to an analysis by Fred Hallahan of Hallahan Associates, who divisions is closed, we will get binding authority, hopefully confirmtracks modular home shipments nationwide, modular activity from January the final path of es- ing a "common sense" interpretation of Section through March 2013 continues a pattern of six consecutive quarterly year to year increases in modular activity that have occurred since the third quarcape for park owners 65863.7. We can count on the courts for comter of 2011. trapped in confisca- mon sense, right? Relative to 2013 first quarter total home building activity, the 3.9 pertory rent control is cent increase in total modular activity lags behind strong increases in conclosure. The U.S. T J ventional residential building permit activity as follows: Supreme Court has • Total 2013 first quarter permit activity for conventional residential made clear that govhousing, representing 203,800 homes, increased 22.3 percent over 2012; ernments cannot stop Mark Alpert is a partner with Orange County law • Single family 2013 first quarter permit activity, representing 133,300 closures in Yee v. Es- firm, Hart, King & Coldren. He focuses much of his homes, increased 25.9 percent over 2012; and condido. Yee recog- practice on manufactured housing issues, and has a • Multi-family 2013 first quarter permit activity, representing 70,500 nizes that the right to particular expertise in rent control, subdivision conhomes, increased 16.3 percent over 2012. go out of business is versions and park closures. Mark can be reached at The comparison of modular activity with single and multi-family site built one of the crucial (714) 432-8700 or at malpert@hkclaw.com. housing, indicates that overall modular production will continue to grow but may continue to lose market share within the total home building sector. With the notable exceptions of New York State (the most active modular state) and North Dakota (the fourth or fifth most active modular state), 2013 multi-family modular activity is typically not a significant contributor to current modular activity for most states and for most manufacturers. I have just completed a 16 page booklet on how to Based on current information available relative to economic conditions, hold a profitable yard/garage sale that is a perfect in 48 states, the 2013 annual modular consumption is projected to exceed hand out to any of your prospects needing more down 14,000 homes representing an annual increase of more than 5 percent compared to 2012. money. 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