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By Emily Rasmussen
At the San Juan Capistrano City Council meeting on Feb. 20, City Council unanimously passed an amendment to a resolution related to the 2016 rent control decision regarding the El Nido Mobile Estates.
Following the denial of a $403 proposed rent increase in October, 2016, and City Council approving a $9.50 per month increase instead—attorneys representing Richard Worley, the owner of the El Nido Mobile Estates, filed a lawsuit in November, 2016 claiming the city incorrectly interpreted and applied its rent control ordinance and refused to grant El Nido “an appropriate rent increase.”
City Attorney Jeffrey Ballinger said that the court determined that only two of the objections had any merit: whether certain routine legal expenses incurred by the park owner could be included in the proposed 2016 rent increase; and issues pertaining to how “extraordinary” legal and accounting expenses of the park owner would be automatically removed from the rent increase after five years.
The resolution to pass the amendment allows a rent increase to not exceed 0.9 percent to each unit’s rent (ranging from $5.09 to $10.14 per month) or a $13.81 per month increase. If El Nido Mobile Estates chooses to implement the $13.81 increase, that amount shall be reduced on Sept. 1, 2021, to an amount no less than $6.98 per month.