Capistrano Mobile Terrace Files Chapter 11

The owners of Capistrano Terrace Mobile Home Park are filing for Chapter 11 bankruptcy protection in the midst of efforts to shutter the park entirely.

"The mobile home park, purchased in 2003, has seen mounting liabilities caused by geological issues, deteriorating infrastructure, lawsuits by tenants over park issues, and failure of insurers to handle resolution of those claims," said Capistrano Terrace Ltd. spokesman Ray Poulter.

It is not immediately clear how the filing will affect the closure report. 

"It does affect the implementation of the city ordinance on park closures, but we don't know yet just how much. We are trying to get some response on that matter," said Poulter. "The costs and obligations required by the city’s park closure ordinance also contributed to the unfortunate need to file for bankruptcy protection."

The city's strict rent control laws have kept the owners from collecting the money they need to make major repairs, Poulter said.

The park pool, for example, has been closed for the past three years due to "geological issues." The owners say that because of last winter's heavy rain, they spent more than $150,000 trying to repair electrical and plumbing malfunctions, as well as to clean up mud and debris.

The mobile homes are considered to be some of the most affordable places to live in San Juan.

Poulter said the Capistrano Terrace Mobile Home Park was built as a temporary travel-trailer park in the 1950s. It was never intended to be a full-time mobile-home park, he said, but over the years, it has become just that. 

Additionally, residents were recently awarded a court victory in a recent failure-to-maintain lawsuit. The residents are vehemently opposed to the park's closure.