Crestview Hills Rent Increases Put Pressure on Fallbrook’s Manufactured Home Community

Rent affordability has become a flashpoint at Crestview Hills Mobile Home Park in Fallbrook, where a change of ownership and major infrastructure costs are driving a second increase for residents. The dispute highlights a pressure point in manufactured housing: residents may own their homes while remaining exposed to rising costs for the land beneath them.

Residents question a second increase

Rita Burn, who lives at the over-55s community, says her monthly rent has climbed from $825 when she moved in after retiring in 2017 to $1,600 today. Both figures were reported in US dollars, with the source giving Australian-dollar equivalents of $1,182 and $2,292. A further increase could push her costs higher.

Burn is on a fixed income and said she was taken aback when management notified residents of another increase. “I couldn’t believe it. I mean, I had heard rumours that it was gonna happen and then we got the letter,” she told KGTV.

Residents of this over-55s caravan park have hit back at hufe rent increases under the new owners. Picture: Google Earth

The park’s new owner cited a property tax reassessment following the sale. A letter to residents, reported by KGTV, said the transaction would lead to a substantial near-term reassessment, supplemental taxes payable by the owner and higher annual property taxes.

Management points to sewer work and taxes

Cabrillo Management Corporation told Realtor.com that the increase reflects two costs: replacing the park’s sewer system and the anticipated rise in property taxes after the sale. The company said the adjustment covers higher operating expenses and does not generate a profit for ownership.

Management also described Crestview Hills as a “five star community,” citing its clubhouse, pool and jacuzzi, dog park and fitness centre. It said continued spending helps maintain the community. However, the company did not disclose how much either of this year’s increases added to residents’ rents.

Residents have been left stunned by the increases which have more than doubled their rent. Picture: KGTV

Residents have also been given information about a subsidised rent program. Cabrillo told Realtor.com it had scheduled a meeting for homeowners to discuss the increase, the subsidy and other questions or concerns.

Manufactured housing’s affordability trade-off

Manufactured homes are built off-site and assembled at their destination. Although earlier models were commonly mounted on wheeled chassis, modern units are generally placed in a park and aren’t designed for repeated moves. The format can reduce construction costs, but residents who own a home may still face rent increases for their site.

That distinction matters as policymakers and the housing industry look to manufactured homes as a lower-cost way to add supply. The source reports that the bipartisan Housing for the 21st Century Act passed earlier this year and removes the requirement that all manufactured homes sit on a permanent chassis. Building without one can cut the cost of a unit by roughly $10,000, or about AUD $14,328.

In early October, the US Department of Housing and Urban Development also announced plans to update energy efficiency standards and design and construction codes, while supporting industry growth. Those efforts address construction and supply; Crestview Hills shows how site rents and operating costs can shape affordability for people already living in manufactured-home communities.

Residents seek a response

Fallbrook is in San Diego County, where mobile-home park rents are governed by California’s Mobilehome Residency Law. The source says the state law does not set rent amounts for homeowners in parks. While many California rentals fall under AB 1482’s limits on annual increases, mobile-home parks are exempt from rent-control rules. The MRL requires at least 90 days’ written notice of a rent increase but sets few other limits on park rents.

Burn said residents are trying to agree on a response, with some writing to elected officials and seeking legal advice. The upcoming meeting with management gives homeowners a forum to question the increase and subsidy arrangements. For Crestview Hills residents, the immediate issue is how the added costs will be shared—and what that means for households already facing sharply higher site rents.