Stop the presses. San Jose city officials are actually moving to prevent mobile home park conversions to "higher and better use" (aka more attractive) residential development projects.
San Jose real estate, along with every other city in the bay area, is on fire. With tech startup valuations approaching nosebleed territory (once again) "affordable housing" has pretty much become an oxymoron in Silicon Valley.
It's rare a city makes a stand against a mobile home park conversion, but it happens from time to time in sky-high rental markets that can only support a fraction of the overall demand for low-income housing.
The lack of affordable housing is a nationwide problem. However, in the markets we operate in city officials have yet to enact policies to save mobile home parks, such as the MHP conversion moratorium San Jose is seeking to approve. In our experience, most cities break out the red carpet for developers looking to redevelop / up-zone mobile home parks into "higher and better" uses. Alternatively, pitch a city on developing a new mobile home park and out come the pitchforks and torches.
Of course, we're not complaining, as this constrains mobile home park supply and prevents future competition for our properties. However, it's a shame as most cities desperately need additional affordable housing units.
While we are not fans of excessive governmental involvement in sacred property rights, we understand why San Jose is trying to preserve this mobile home park. The underlying trend (widening gap between supply and demand for affordable housing) is a systemic, national problem that needs to be addressed.
To help make a dent in this problem, Park Street Partners looks forward to purchasing additional properties, infilling lots with new mobile homes and increasing the stock of affordable housing in the markets we operate in.