Editorial: Novato Needs a Smart Deal for Mobile-Home Residents

A Longstanding Commitment to Affordable Housing

In 1997, Novato made a strategic decision to purchase the Marin Valley Mobile Country Club. The city's primary goal was to safeguard affordable housing, specifically protecting elderly residents living in the mobile home park from rising rents driven by market forces.

Almost three decades later, the need for affordable housing remains just as pressing. Soaring real estate prices have pushed many residents to seek more affordable options elsewhere. This ongoing challenge highlights the importance of maintaining and expanding access to low-cost housing, especially for vulnerable populations like seniors.

The city is currently considering selling the property, which has been under its ownership since the 1990s. However, there is a strong argument for continuing negotiations with the tenants who wish to buy the park. The residents, represented by the Park Acquisition Corp., have proposed an offer that includes conditions ensuring affordability for seniors. This makes them a viable and responsible buyer.

The tenants have offered $23.5 million for the park, while the city countered with $26 million. Although this gap may seem significant, it is not insurmountable. The residents’ offer also includes a $1 million deduction for necessary repairs to the clubhouse and other capital improvements. These details show that the tenants are committed to investing in the park’s future.

The city acquired the 63-acre park, located on a hillside at the south end of Hamilton, using grant funds and a low-interest loan funded by tenants’ rents. Today, the park is home to over 400 seniors, with 91% of them classified as low-income or very-low-income. Without the financial safeguards in place to keep rents below market rates, many of these households would have been forced to move out long ago.

If the city had not maintained affordable rent levels, the park’s value would likely be much higher. This underscores the importance of preserving the current arrangement, which benefits both residents and the broader community.

Despite the city’s stated commitment to negotiating with the residents, there has been some concern due to the city considering a $30 million offer in 2023. While the council ultimately rejected the offer, residents feared that a for-profit company might take over the park, raise rents, and force them out. This fear led to their proposal to purchase the park themselves.

The city and residents do not appear to be far apart in their positions. The city claims its $26 million offer is based on an appraisal, but it has not disclosed the document. Legally, the city is not required to release it, but doing so could help move negotiations forward.

Protecting affordable housing must remain the top priority in this situation. While the city wants to exit the landlord business, it also wants to ensure that it does not give away a valuable public asset. At the same time, the city has expressed a commitment to promoting affordable housing.

Novato’s Housing Element Update, a state-mandated planning document, outlines the city’s plans to increase affordable housing. It suggests that refinancing could be an option to cover the costs of needed capital improvements. However, this approach would not remove the city from being a landlord. Selling the property to an organization that is dedicated to keeping the park affordable would be a more sustainable solution.

Residents have agreed to rent increases that would help cover the cost of their purchase. For those living on fixed incomes, these increases could add another layer of financial strain. Yet, they remain determined to keep their homes.

There are clear reasons to continue negotiations toward a shared goal that benefits the park’s residents, the city, and the community as a whole. By working together, both parties can ensure that affordable housing remains accessible for years to come.