SANTA PAULA : City Studies Loans for Mobile Park Tenants

The Santa Paula City Council has agreed to consider loaning $150,000 in redevelopment funds to lower-income residents of a mobile home park where the tenants plan to purchase the park from its owner.

Acting as the Santa Paula Redevelopment Agency, the council agreed Monday to hold a public hearing Sept. 7 before voting on the low-interest loan.

Under the proposal, the agency would provide housing funds to 49 low- and moderate-income residents of the 150-lot Santa Paula West Mobilehome Park so they could pay either a 5% or 10% down payment.

“This falls right in line” with redevelopment housing goals, said Ken Cott, Santa Paula’s economic development director, after the unanimous vote.

Qualifying tenants would be charged 3% interest on the loans, enough to cover the program’s administrative costs, Cott said. The deferred loans would become due and payable on the sale or transfer of the property.

Residents of Santa Paula West began negotiations two years ago with the park’s owner, James Taylor, who had sued the city over its regulation of mobile home parks. Taylor has since withdrawn his lawsuit after reaching agreement with tenants to buy the property for $9.2 million.

Low-cost loans from the city were always considered an important element of the park purchase, Cott said. “It’s an important component of the overall financial package.”