Trailer Residents’ $6.4-Million Bid for the Park Is Rejected by Owner

Disgruntled residents of the Seal Beach Trailer Park, who want to be in control of their own destiny, were rejected Tuesday in their bid to buy the park for $6.4 million.

Owner Richard Hall and the park’s resident owners association have been battling over proposed rent increases for more than a year, nearly as long as Hall has owned the park, located close to the beach. Association President Frank Boychuck said Hall wants $8 million for the property, which the owner says he bought for $3.5 million in December 1998.

Hall denies Boychuck’s claim that the owner wants to eventually put a hotel and houses on the 7-acre property that currently has 125 trailer home units.

“I am not thinking about some other use at this time,” Hall said. “I would like to see [the trailer home residents] own the property, but at the fair price.”

The 70-year-old park has a city covenant providing that 120 of the spaces be rented at affordable prices for qualified low- to moderate-income residents. The average space rent is $350 per month.

In January, the City Council, which is also part of the city’s Redevelopment Agency, denied Hall’s request to increase rent by 36%. Hall was able to increase rent by 7.8% but then began asking for financial records from residents.

“I have reason to believe that a lot of people make too much money,” Hall said. “All I want to do is check their records and if they do not qualify [for low- to moderate-income rates] I will ask them to leave.”

The City Council has been backing the trailer park residents, voting in March to provide $20,000 to pay for preliminary services toward purchasing the park and forming a subcommittee to direct the residents in the acquisition process. The city has also denied Hall access to its records of the residents’ income. The records had been provided by the residents in order to qualify for the lower rents.

Hall, who owns the real estate investment group named RHC Communities in Newport Beach, said his attorneys will be filing a lawsuit against the city next week. He declined to give specifics, but said the lawsuit will be based on “a number of grounds.”

Boychuck’s group, the Seal Beach Trailer Park Owners Assn., has also teamed up with the nonprofit housing development corporation LINC, in an attempt to take over the property. LINC President Hunter Johnson said his group is helping with negotiations and property management should the two groups acquire the park. Up to now, the plan had called for city bonds and a higher rent to pay the proposed $6.4 million loan to purchase the property.

“We felt the $6.4 million was a fair offer,” Boychuck said. “We were willing to make the sacrifice to gain control of the park and pay a higher rent. But there is a limit as to what we can do and the limit is $6.4 million.”

Boychuck says Hall’s tactics have been a “form of harassment” and he feels there is more trouble to come when a long list of rules for residents comes into play next month. The rules, listed in a 40-page document, include a request for financial records, he said.

Boychuck said Hall’s rejection will not end the association’s efforts.

“We’re back at square one,” he said.

Alex Murashko can be reached at (714) 966-5974.