Mobile home park residents seek rent relief from Lake Elmo

The residents of a Lake Elmo mobile home park say their lot rents have risen so quickly that members fear they'll be priced out and lose their homes after years, and in some cases decades, of making payments.

The rising rents, along with what they say is a hostile management overseeing the park, were the basis for a new call for relief from the Cimarron Residents Association, a group representing the homeowners at the park on Lake Elmo Avenue N.

"This is my home. I want to stay," said Marge Schmig, who moved into the park two years ago after her husband died.

Cimarron Park and Golf Course has seen rents for the lots — the land that each mobile home sits on — rise by some 30% since 2020, according to Brey Mafi, a park resident and a member of the Residents Association. For residents living on a fixed income, each rent increase has left them with less money for groceries and other essentials. The next price hike of 6% takes effect on Jan. 1, she said.

Resident John Murphy said the increases seem to be excessive when compared with inflation; the residents say services at the park haven't improved significantly to match the price increases, either, citing problems ranging from inadequate lighting to restrictive hours at the park's swimming pool and poor upkeep of the park's golf course.

A spokeswoman for park owner Equity Lifestyle Properties, based in Chicago, said rents have risen 5.6% each year over the past five years. The raises have been commensurate with what's happening with apartment rents across Washington County, said spokesperson Jennifer Ludovice.

The average price for a new home at Cimarron was $76,500, while the median price of a home in Lake Elmo was around $650,000 this year, based on numbers provided by Realtor.com, she added. Equity Lifestyle Properties owns more than 200 manufactured home communities, more than 200 RV resorts and campgrounds, and 23 marinas in 35 states and British Columbia, according to its website.

"We consider the management of the community to be a partnership with residents and look for opportunities to work together on solutions to fit everyone's needs," she said in a statement.

Can the city help?

The park residents brought their complaints to the Lake Elmo City Council, but officials there said they don't have the legal authority to impose rent controls. If the city were organized as a home rule charter city, like St. Paul, the City Council could adopt rent control but Lake Elmo is classified as a statutory city.

"We as a statutory city aren't able to do anything with regards to rent control or anything like that," said Lake Elmo Mayor Charles Cadenhead. The city administrator, Nicole Miller, has been in contact with the park's community board chair, John Murphy, to work on specific issues, including the resident's concerns over the large number of dead trees in the park, Cadenhead added.

The park's residents have also asked the Housing Justice Center, a Minnesota nonprofit, to help organize a response to the rent increases. Housing Justice Center attorney Shana Tomenes said that what's happening at Cimarron "is not an uncommon story." Many mobile home parks once owned by an individual are now more commonly owned by a for-profit company that needs to keep revenues and profits growing, she said.

State law requires that rent increases be "reasonable," without defining what that means in terms of percentages, Tomenes said.

"Is 30% over four years reasonable?" Tomenes asked. "There hasn't been a case in Minnesota law that says what reasonable is or isn't."

Residents question regulations

The park residents are also contending with new rules that make it more difficult to sell their home, Tomenes said. Homeowners must tear down fences before selling, advertise the sale with a small sign in a window and run credit checks on prospective buyers, among other things; taken together the rules make it difficult for people to sell and more likely to walk away from the home.

Moving the home out of the park is usually too expensive, with costs ranging up to $10,000, while some homes have settled and wouldn't be safe to move, she added. "People end up losing their home and that is often people's largest asset."

The residents' demand letter also says park management has been unprofessional and sometimes abusive, with residents feeling like they're under surveillance and being penalized for minor infractions of park rules. Residents who participate in the Residents Association feel they're being retaliated against by the park's management and are more likely to see their property scrutinized for violations, they added. The residents' letter asked for 48 hours notice of interactions with management and the right to have a witness present at all meetings.

Resident Jim Woods, a veteran who suffered a traumatic brain injury while serving, said residents feel like they're being targeted for eviction by the park's management. If the resident lives in one of the park's older homes, often distinguishable by having a flat roof and sitting on the ground, they're more likely to be written up, said Woods. "They want to tear them down and put a more expensive one in," he said.

"It's not fair. We need somebody with money or influence to help us."

The park at Cimarron was part of an effort two years ago to pass state legislation calling for rent stabilization at mobile home parks, but the measure failed. The Cimarron Residents Association plans to try again next session.