DA settles civil suit with mobile home park operator Harmony Communities, Inc. and a brokerage firm

Author: District Attorney
Date: 8/28/2024 5:03 PM

District Attorney Dan Dow announced today that a civil settlement has been reached with a mobile home park management company that manages San Luis Obispo's South Peak Mobile Park, and with its associated real estate brokerage firm. The settlement requires $61,000 payment for civil penalties and a contribution to a non-profit organization offering free legal assistance to tenants.

The San Luis Obispo County District Attorney's Office Consumer Protection Unit has settled with the property management company, Harmony Communities, Inc., and its associated real estate brokerage company, Partners Real Estate, Inc. Harmony Communities, Inc. Harmony manages South Peak Mobile Home Park located on South Street in San Luis Obispo, along with more than 50 other mobile home parks in California.

The San Luis Obispo County District Attorney's Office investigation was also joined by the District Attorney's Offices in Fresno, San Joaquin and Marin Counties. The civil complaint was filed where the defendant's principal place of business was located--San Joaquin County Superior Court.

The complaint alleged that for several years, Harmony Communities failed to reimburse background fees Harmony charged, which reimbursement is required by California's Mobile Residency Law. The Complaint also alleged that Partner's Real Estate, Inc. made misleading statements about housing units it listed on the multiple listing service (MLS) that were managed by Harmony Communities, Inc.

"Mobile home park residents generally have lower value assets and net worth than those living in traditional homes, often making these residents economically vulnerable," said District Attorney Dan Dow. "We want to ensure that the management teams and operators of mobile home parks comply with California law and maintain business practices that prevent abuses and ensure fair treatment of residents who live in these communities."

The final judgment and order pursuant to stipulation prohibits Partner's Real Estate from making statements on MLS that could lead a buyer to falsely believe they are purchasing a manufactured home regulated by HUD. Additionally, recreational vehicles will need to be clearly identified as recreational vehicles within the advertisements.
In addition, Harmony Communities is ordered to pay $21,000 in civil penalties and Partner's Real Estate is ordered to pay $20,000 in civil penalties. Both defendants are ordered to pay $5,000 in restitution to Central California Legal Services, a non-profit corporation, for the purpose of providing free legal assistance relating to housing issues. Finally, both defendants were ordered to pay $15,000 to the four District Attorney offices for reimbursement of their investigative and prosecution costs.
Here is a copy of the civil complaint and the stipulated final judgment.

Our consumer protection team is committed to protecting the public from unlawful, unfair, and fraudulent or deceptive business practices. Consumer protection cases can be pursued in either criminal or civil court. Examples of such cases include contractor's fraud, false or misleading advertising, and "bait and switch" scams. The unit also aims to increase public awareness of consumer issues through presentations to local groups when called upon.

For more information about the consumer protection laws or to report suspected violations contact the California Department of Consumer Affairs Consumer Assistance Line toll-free at (800) 952-5210 or visit their website at www.dca.ca.gov/. Hearing-impaired persons may call TTY (800) 326-229.

To report a consumer complaint directly to the San Luis Obispo County District Attorney's Office, you may submit a complaint form, found here:
CONSUMER COMPLAINT FORM ENGLISH
CONSUMER COMPLAINT FORM SPANISH

Please contact Assistant District Attorney Eric J. Dobroth at 805.781.5819 with any questions.
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