San Rafael mobile home tenants sue landlord

Tenants of a mobile home park in San Rafael have sued their landlord over allegations of illegal evictions, retaliatory rent hikes and violations of the city’s rent control laws.

Under the name San Rafael Homeowners United, the tenant group seeks injunctive relief and damages in Marin County Superior Court. The plaintiffs are represented by Legal Aid of Marin and California Rural Legal Assistance Inc.

The plaintiffs seek to prevent Harmony Communities Inc. — a Stockton company that has been involved in rent fights and legal disputes across California —  from unlawfully converting the mobile home park at 742 Francisco Blvd. West into a transient recreational vehicle site. RV parks are not subject to the city’s rent control law.

The suit asks the court to reaffirm that the park is by definition a mobile home park and therefore protected by the city ordinance, which establishes a cap on rent increases at 75% of the consumer price index adjustments.

“We’ve seen this particular company go after and target their tenants for years,” said Laura McMahon, executive director of Legal Aid of Marin. “We saw an opportunity to file a lawsuit that could drive accountability, but also set a standard and deter further bad acts.”

Attorneys filed the suit on Oct. 3.

Despite the property’s name, the R.V. Park of San Rafael, a 2004 court ruling found that the 45-space complex is by definition a mobile home park. Under state civil code, if an RV is used as a residence for nine or more continuous months at the same site, it is a mobile home. While the tenants own the homes, they rent the plot of land it sits on from the landlord.

The rent dispute with Harmony Communities began in August 2021, shortly after the company began managing the property. Tenants received notice of rent increases that city officials and residents said violated the city’s mobile home rent stabilization ordinance, designed to protect the affordability of the park.

The city eventually sued the park, and after a 16-month legal battle, reached a settlement with Harmony Communities. Harmony now owns the site.

The 2023 settlement was meant to guarantee that the residents had a minimum of 10 years to live at the park before the owner could seek to close it or convert it into an RV park. Tenants were to have the benefit of controlled rents, as long as they live there, city officials said.

The suit alleges Harmony unlawfully evicted about half of the tenants since the settlement by claiming that their homes violated various building codes. Harmony made the claims despite inspections from the California Department of Housing and Community Development that found otherwise, according to the suit. The state agency provides oversight and enforcement of mobile home park standards.

“These people were supposed to be living here until 2033,” said Herman Privette, who has lived at the park for nearly 50 years. “Now about half of them are gone. It’s unsettling.”

Privette said that since the settlement, he has received more than a dozen eviction notices for alleged infractions. The latest is a 60-day notice that includes a directive to move his trailer away from the fence line. Privette said it would be too costly to comply with the demand.

“It’s been there for 30 years,” he said. “At this point, they’re just harassing me.”

McMahon said Harmony has sent notices to tenants stating it plans to raise rents from about $550 a month to $1,100 starting in January. Nine of the tenants are under 60-day eviction notices for alleged rules violations, McMahon said.

An underlying unlawful detainer lawsuit is in trial now that will affect whether Harmony can evict other tenants, McMahon said.

Matthew Davies, founder of Harmony Communities, denied the allegations.

“We haven’t had any rent increases other than the allowable increase that is only 75% of inflation,” he said in an email. He provided a rent roll record he said was submitted to the city in August, showing a $10 a month increase. He said the city administers the rent control ordinance and the company hasn’t received any notices of violations.

Davies said Harmony has filed an application with the city seeking rent increases above the threshold. The application states that inflation has outpaced the revenue that the park is earning and the company is seeking a fair return. He said it’s a process that complies with the city’s ordinance.

Assistant City Manager John Stefanski confirmed that Harmony has filed the petition and it remains pending. Stefanski said the city’s ordinance allows homeowners and park owners to go to arbitration about rent increases. The arbitrator issues a decision, and if a party is not satisfied with the outcome of arbitration, the party can appeal to the City Council.

“Since at least 2023, there have been no appeals to City Council by Harmony Communities under the City’s Mobile Home Rent Stabilization Ordinance,” Stefanski said in an email.