SAN MARCOS —— Paying for attorneys and witnesses to challenge a rent increase in a mobile-home park is not cheap —— just ask the homeowners association of Lakeview Mobile Estates.

Officials with the homeowners association at the 113-lot senior park on Discovery Street said they have spent more than $14,000 this year to challenge a $230 monthly rent increase.

But they said that paying the high costs of challenging the increase will save residents a lot of money in the coming years because the attorneys helped prevent a steep increase in monthly rents.

After hearing extensive testimony from lawyers and expert witnesses representing both the residents and the owner of the park, the San Marcos City Council, acting as the Rent Review Commission, decided last week that a fair increase for both sides would be $40 a month.

Officials with the homeowners association said Wednesday they were pleased with the council's ruling, but that nearly $20,000 in legal costs in the last two years sank them about $4,000 in debt.

"We had an idea the cost would be high, but I don't think we realized how high," said Gerald Clark, president of the association.

The association leaders said they paid $8,800 for two expert witnesses who completed a complex economic analysis of what would be a fair rate of return for the owner of the park and who testified before the council. The association also paid more than $5,000 for San Jose-based attorney Bruce Stanton to file several lengthy legal briefs, organize their defense and find expert witnesses for the hearing before the council —— a hearing that resembled a civil case in a courtroom.

The association paid Stanton $185 an hour for his services, which is a pretty fair and standard price for a mobile-home law attorney, said Sharon McDaniel, who is with the company that manages the Villa Vista Mobile Estates on South Santa Fe Avenue.

Stanton also has helped several other parks in San Marcos challenge rent increases, said Bob Bowen, president of the San Marcos Mobilehome Residents Association.

"You bet it's expensive, but you have got to get a good attorney," Bowen said. "It was definitely worth their money."

As a result of the challenge, the rent increase will be about $190 a month less than had been sought for park residents, who currently pay from $310 to $430 a month for their spots.

The $190 a month reduction equates to $2,280 a year for each individual homeowner, while the homeowners association spent less than $150 per resident to challenge the increase.

Several residents said Wednesday they are very glad the homeowners association challenged the increase.

"If there was a $230 increase, I would be out on the street in six months because I don't have that type of money," said Lakeview resident Alan Helms, who said he relies on Social Security to pay the bills. "They had to fight the increase, there are no two ways about it. They had to get an attorney, that is the good old American way."

San Marcos residents living in mobile-home parks have the power to challenge rent increases because the city has had a law since 1978 giving the council the power to serve as a mediator to settle rent increase disputes.

City officials said the law exists to make sure rates are fair because residents of mobile-home parks are vulnerable to steep price increases when they own the homes, but not the ground their homes sit upon.

But a couple of Lakeview residents asked why the homeowners association had to bring the dispute to the council rather than working with owner Bob Lin, who had not raised the rent since 2001.

"This is ridiculous," said park resident Barbara Christensen. "If they had just tried to work with Mr. Lin, we would not have had to go through all this."

Lin declined to comment this week about how much he has spent on legal fees, and he has yet to accept the City Council's ruling on the rent increase. Lin could still file a lawsuit challenging the council's decision.

The homeowners association doesn't even want to think about the rental dispute continuing, said Dolores Brooks, the group's treasurer.

"We tried to settle (the dispute) with Mr. Lin, but he didn't want to do that," Brooks said. "We on the board feel a great responsibility for all the money we spend."

The association has not yet decided how to pay off the $4,000 it still owes its attorneys, said Clark.

The association members said they hope local businesses or residents outside of the park donate money to help them pay the debt.

Clark said the association may look at asking residents to pay $5 a month in dues, because residents now only contribute to the association voluntarily.

Association officials said they are considering the monthly dues because they are worried about having to fight rent increases in future years.

But the homeowners association and owner should try to reach an agreement about the future that both sides can live with so that neither party has to pay attorneys and bring the disputes to the city, said Councilman Jim Desmond.

"Both sides had expert witnesses we listened to, and if only one side had expert witnesses, it would have been a hard decision," Desmond said. "Unfortunately, it cost that much, but the homeowners association did the right thing to hire experts."

Contact staff writer David Sterrett at (760) 761-4411 or dsterrett@nctimes.com.