photo credit: Noah Abrams/KRCB
Youngstown residents demonstrating in September

The fight over Petaluma's least expensive housing, and if it will remain so, may be decided in federal court. On Friday, Petaluma officials met a deadline, filing documents seeking to have a potentially far-reaching case thrown out of federal court.

Owners of two Petaluma mobile home parks---Youngstown and Little Woods---have filed against the city. Their lawsuit alleges the city's rent control ordinance and other steps it has taken to preserve affordability are unconstitutional.

Deputy City Attorney Dylan Brady, who is on the city's litigation team, told KRCB News Friday the city fully intends to file to have the case dismissed.

Tenant advocates said the issue became heated after Youngstown changed hands and new owners sought hefty rent increases.

"They're just blowing smoke right? because they've got this huge debt that they're paying on it every month, how are they going to pay their debt on the place, it will become worthless. What they'd like to do is build condos or something on it and maybe make a pile of money doing that, but the city says, oh-no, this is a mobile home park only, we're not going to change the zoning," said John Robbins, 81, who has lived at Youngstown for four years.

After the city tightened rent control regulations, park owners sought to open to anyone spaces that have long been age-restricted to those over age 55.

The city thwarted that too by adopting a seniors-only zoning overlay district.

More recently, park owners have threatened to close, including in a newsletter sent to investors by the owners of Youngstown last Wednesday. They say they are being foiled at every turn.

In a 28-page suit in federal district court, park owners challenge the ability of the city to regulate, saying steps taken amount unconstitutionally depriving them of their right to an adequate rate of return.

The suit cites hefty inflation and the city's effort to shield residents from it by reducing the cap on rent increases to below inflation. They argue they're being required to run their business at a loss.

The suit also challenges the constitutionality of requirements that should park owners wish to close a park that they find comparable space in another park for the home or purchase then from tenants at 'in place value.'

Not surprisingly, residents of the parks, and their advocates, have a different perspective.

"They were going to increase the ground rent by $923.41 in addition to what they were already paying," said Jodi Johnson, a tenant and organizer.

She said for many residents, that would amount to a 150 percent increase. She says tragedy was narrowly averted when it was blocked.

But she said, the 'Senior Park' sign at Youngstown's entrance vanished several weeks ago and owners are marketing units to younger people.

She also said tenants last year were required to switch to an auto-pay system to pay their rent, which the day before Thanksgiving billed residents as if a rent increase had already been approved.

"If we had not noticed all of that and demanded that they remove it, the automatic payments would have wiped out these people's bank accounts, you can imagine it ruined holidays," Johnson said.

She said the owners chalked it up to a computer glitch, something Johnson said strains credibility.

Youngstown resident Robbins said the owners haven't given up.

"They've been threatening to make it an all-age park, or they might just have to close the park, shut it down," Robbins said.

Robbins and Johnson argue that opening the parks to younger people with more financial resources will price out seniors.

Last week, KRCB News reached out to Daniel Weisfield of 3 Pillar Communities, the new owners of Youngstown, for insights and comments....so far no reply.

A court hearing in the lawsuit is expected in mid-January.

UPDATE 12/11/23 3 PM

Petaluma officials have filed a 16-page motion to dismiss. It's the latest salvo between the city and owners of mobile home parks...they are challenging the constitutionality of city's mobile home rent control rules in federal court.

Owners of two mobile home parks, Littlewoods and Youngstown, filed a federal lawsuit in October, claiming the city's new regulations amount to the seizure of private property without proper payment.

But in the city's response, a motion to dismiss, officials argue park owners have no grounds to sue, as they have yet to show evidence of financial harm.

"Plaintiffs have not pleaded any facts to show that they have been injured," reads one phrase, with the motion going on to claim that mobile home park owners don't have standing in the case. That's as the city's regulatory process has yet to play out.

Paul Beard, an attorney with Los Angeles-based Fisher Broyles LLP, is representing the plaintiffs. He told KRCB News Monday he is reviewing the city's motion and couldn't comment, though shortly thereafter, KRCB News received an email from Beard stating, "The city of Petaluma’s regulations, are forcing my clients to shut down their parks, because they are simply not able to operate at a loss. We’ve sued to overturn these crippling rent-control and closure regulations in order to give these parks a shot at staying open," Beard wrote.

A hearing in the case is expected next month, a hearing on the motion to dismiss is scheduled for March 22.