Mobile Home Parks Council Policy Regarding Change of Use by Private DevelopmentCouncil Briefing - November 9, 2010

Andrew FriedmanDept. of Housing and Neighborhood PreservationBased on work of the Economic Vitality Strategic

Issue TeamKey Assistance from Cynthia Whitbred-Spanoulis

Presentation Outline

• Information about mobile homes and mobile home parks

• Issues to consider• Proposed Policy to address the issues• Council Discussion and Direction

Basics

• 1,400 (approximately) households reside in mobile homes located in 10 MH parks in VB

• 5 of these are in Strategic Growth Areas, where plans call for an eventual change of use

• Residents of these parks rent the mobile home sites; when the land use is changed, they must relocate

Location of Mobile Home Parks in Virginia Beach

MH Parks in Strategic Growth AreasName Zoning

CategoryLocation Acres Est. # of

HomesIn High Noise Zone?

In Accident Potential

Zone?

In StrategicGrowthArea?

Aragona Court

B-3 4873 Cleveland

St.

0.77 9 No No Pembroke

Bonney View

A-12 5000 Bonney Rd.

4.21 28 No No Pembroke

Colonial Run

A-12 1241 Baker Rd

16.59 138 No No BurtonStation

Colony A-12 913 VBBlvd

33.41 266 Yes – mostly 70db+,

some 75+

No Resort Area

Countyview A-12 Euclid @ Southern

Blvd.

59.74 473 No No Pembroke

TOTAL 104.37 914

MH Parks Outside Strategic Growth AreasName Zoning

CategoryLocation Acres Est. # of

HomesIn High Noise Zone?

In Accident Potential

Zone?

In StrategicGrowthArea?

Derby Run A-12 1231 Run 44.93 279 Yes – all 75db+

Yes-small portion in

APZ-1

No

Murphy’s B-2 913 VB Blvd

11.33 99 Yes – all 75db+

Yes - All either APZ-

1 or 2

No

Oconee A-12 340 Tomahawk

Trail

7.75 67 Yes – all 75db+

No No

Providence(a)

A-12 1100 S. Mlitary Hwy

.25(b) 10 No No No

TOTAL 64.51 455

(a) Providence MH park is almost entirely in Chesapeake

Colonial Run/Burton Station SGA

Colonial Run Mobile Home Park

Pembroke SGA

Bonney View and Countyview MH Parks

I-264

Countyview MH Park

Euclid Rd.

Resort Area SGA

Colony MH Park – 17th St.

South

Norfolk Ave.

Estimated Per Capita IncomeBased on .3 mile radius

Colony Countyview Bonney View

Colonial Run

Virginia Beach

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Income

Change of Use Issues

Some mobile homes cannot be moved:• Many existing homes are not in condition to

be moved• Others do not meet current standards to be

placed in existing parks• Owners lose their entire investment in the

mobile home if it cannot be moved.

Change of Use Issues

If moving is possible: • The cost of relocating a mobile home may exceed

$5,000 – a sum many households may not have• No new mobile home parks are being created in VB• At least three have been eliminated in the last

decade • Therefore, relocation may require moving out of

Virginia Beach and away from friends, schools and jobs.

Mobile Homes vs. Apartments

• Mobile home monthly lot rent costs are generally under $500.

• Two-bedroom fair market rent is $965 in Virginia Beach

• Apartments often have no outside storage, no-pet policies, totally different living environment

• Apartments often require move-in deposit equal to three months rent, or $2,700.

Summary

• Some can’t move and will face loss of investment, moving into an apartment and having to pay rent differential, plus the cost of the security deposit

• Some can move and may face $5,000 moving costs

• Some won’t be able to move or to afford or obtain an apartment and may become homeless

Policy Considerations

• Acknowledge potential hardships• Provide a framework to discuss them with

owners/developers• Do not establish requirements that would

infringe on property rights• Be prepared and organized

Proposed Policy

Owners/developers planning a change of use should: • Provide time to people to accumulate funds, develop

options, adjust (Virginia Code section 55-248.46. re: termination of tenancy requires 180 day notice if the termination is by reason of change of use)

• Provide ongoing information and liaison about what is occurring and avoid rumors, panic, etc.

• Consider ways to reduce financial hardship through rent forgiveness, incentives for moving, grants.

• Overall – reduce the hardship, address issues in an organized manner

Advantages of a Policy

• A policy asks owners to present to Council their plans for addressing these issues

• Adoption of policy provides a framework for Council to discuss issues with developer and to respond to affected residents

• Without a policy there will be demands and responses and no framework to consider them

Other Places

• Several states and some cities have or had laws and/or trust funds in place that require relocation payments

• Maryland adopted such legislation in June, 2010• Chesapeake is developing a proposed policy for Council

consideration that is similar to this proposed policy.• Proposed redevelopment of Providence MH park

brought these issues to the forefront there.• A similar policy among both cities would avoid creating

development advantages…….

Next Steps

• Your discussion• Your direction to the City Manager• Policy can be ready for vote on December 7

• Thank you!