Option 9—Require expense-based calculations for increases above CPI

This option provides an alternative to options 6, 7 and 8, and would replace all existing site rent increase bases and require park owners to increase rents in proportion to relevant expenses. This option would improve the transparency of site rent increases and align increases with actual operating expenses, but it may result in unintended consequences. For example, some home owners could experience site rent increases where there is a backlog of maintenance in a park which results in higher expenses. Home owners would also be burdened by the need to interrogate the expense-based calculation provided by the park owner. The cost of the safeguards necessary to make this process fair outweighs the benefits. This option scored 5/9 on its contribution to policy objectives and was not selected as a component of the preferred package of reform options.

This is a summary of the impacts of option 9 only. For the full impact analysis, read chapter 7 of the C-RIS (PDF, 3.3 MB).